Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Goldman Sachs Power and Utility Conference 2009
15 slides from Pacific Gas & Electric's conference presentation, May 19, 2009
Slide 1: PG&E Corporation
PG&E Corporation Goldman Sachs Power and Utility Conference May 19, 2009
Slide 2: Cautionary Language Regarding Forward-Looking Statements
Cautionary Language Regarding Forward-Looking Statements This presentation contains management’s guidance for PG&E Corporation’s 2009, 2010 and 2011 earnings per share from operations, projections of Pacific Gas and Electric Company’s (Utility) capital expenditures, rate base and rate base growth, a
Slide 3: PCG Investment Case
PCG Investment Case • PCG is focused on better service to our customers, which is the foundation of our growth: • Substantial Cap Ex Program • Manageable financing requirements • Decoupled revenues • Pass-through of procurement costs • 11.45% weighted ROE on 52% equity • Low carbon footprint 3
Slide 4: 2009 Business Priorities
2009 Business Priorities • Improve reliability • Improve safety and human performance • Deliver on budget, on plan, and on purpose • Drive customer satisfaction • Champion effective regulatory and legislative policies 4
Slide 5: Recent Developments and Accomplishments
Recent Developments and Accomplishments • Successful Financings at both the Utility & Holding Company • Equity Infusion to the Utility, Satisfied Requirements for 2009 • SmartMeter Program Upgrade Approved • Diablo Canyon Steam Generator Replacement • Recovery of Hydro Divestiture Costs Approved
Slide 6: PG&E Financial Strategy
PG&E Financial Strategy • Achieve solid, sustained EPS growth • Actively manage cash flow • Maintain opportunistic financing approach 6
Slide 7: EPS Guidance
EPS Guidance Earnings per Share from Operations High $3.85 High $3.50 Low $3.65 Low $3.35 High $3.25 $3.15 Low $2.95 $2.78 2007 2008 2009 2010 2011 Actual Actual * Reg G reconciliation to GAAP for 2008 EPS from Operations, and 2009-2011 EPS Guidance available in Appendix and at www.pge-corp.com 7
Slide 8: Capital Expenditure Outlook
Capital Expenditure Outlook CapEx Outlook $B 5.0 High 4.5 4.0 $3.7B High High 3.5 Low Low Low 3.0 2.5 2.0 Actual 2008 2009 2010 2011 Low Case $3.6B Low Case $3.4B Low Case $3.3B High Case $3.7B High Case $3.8B High Case $4.8B 8
Slide 9: Additional Capital Opportunities
Additional Capital Opportunities Generation • Prior RFO Shortfalls • Additional renewable generation investment opportunities Electric Transmission & Gas Pipelines • Additional transmission to reach renewable generation • B.C. Transmission Line • Pacific Connector Gas Pipeline 9
Slide 10: Projected Rate Base Growth
Projected Rate Base Growth $B Weighted Average Annual Rate Base* 28.0 26.0 High Low 24.0 High 22.0 Low High 20.0 Low $18.2B 18.0 16.0 Actual 2008 2009 2010 2011 Low Case $20.1B Low Case $22.1B Low Case $24.3B High Case $20.3B High Case $22.4B High Case $25.4B * Actual 2008 and projected 2009-2011 ra
Slide 11: Dividend Policy
Dividend Policy • Sustainable, comparable dividend • Payout ratio range of 50% - 70% • Dividend growth in line with EPS growth. Historical Quarterly Dividends per Share $0.45 $0.42 $0.39 $0.40 $0.36 $0.35 $0.33 $0.30 $0.30 $0.25 04/05 - 10/05 01/06 - 01/07 04/07 - 01/08 04/08 - 1/09 04/09 11
Slide 12: Financial Assumptions 2009-2011
Financial Assumptions 2009-2011 GUIDANCE REFLECTS: • Capital expenditures consistent with low and high case ranges • CPUC authorized ROE of at least 11.35% and Utility earns at least 12% on FERC projected rate base • Ratemaking capital structure maintained at 52% equity • CEE incentives, operational
Slide 13: Appendix
Appendix
Slide 14: 2008 EPS - Reg G Reconciliation
2008 EPS - Reg G Reconciliation 2008 EPS on an Earnings from Operations Basis* $2.95 Items Impacting Comparability** 0.68 EPS on a GAAP Basis $3.63 * Earnings per share from operations is a non-GAAP measure. This non-GAAP measure is used because it allows investors to compare the core underlying fin
Slide 15: EPS Guidance - Reg G Reconciliation
EPS Guidance - Reg G Reconciliation Guidance Range 2009 Low High EPS Guidance on an Earnings from Operations Basis (1) $3.15 $3.25 Estimated Items Impacting Comparability(2) Tax Refunds(3) $0.13 $0.16 Recovery of hydro divestiture costs(4) $0.07 $0.07 Accelerated work on gas system(5) ($0.15) ($0.12
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