Slide 1: PG&E Corporation Investor Meetings
PG&E Corporation p Kent Harvey Chief Financial Officer, PG&E Corporation Investor Meetings May 16 – May 17, 2011 ®
Slide 2: Cautionary Language Regarding Forward-Looking Statements
Cautionary Language Regarding Forward-Looking Statements This presentation contains forward-looking statements regarding the anticipated outcome and timing of g various regulatory yp proceedings g involvingg Pacific Gas and Electric Company p y ((“Utility”), y ), estimated costs and future insurance
Slide 3: Table of Contents
Table of Contents Rate Case Updates Page 4 Gas Pipeline Updates Page 7 Financial Summary Page 11 A Appendix di P Page 16 3
Slide 4: 2011 General Rate Case
2011 General Rate Case Final decision approved May 5 for 2011 – 2013 • Commission approved uncontested settlement • Commission C i i decided d id d return t on legacy l meters t 2011 Revenue Requirements ($ in Millions) Final Decision Settlement Revenue Requirement Increase $395 Revenue for Undeprec
Slide 5: 2011 Gas Transmission and Storage Rate Case
2011 Gas Transmission and Storage Rate Case Final decision approved in April for 2011 – 2014 • Commission approved settlement 2011 Revenue Requirements ($ in Millions) Final Decision Settlement Revenue Requirement Increase $52 Average annual capital expenditures: $174M Attrition revenues: $27M,, $24
Slide 6: FERC TO13 Filing
FERC TO13 Filing Rates approved in March, March subject to refund Settlement filed on April 28, 2011 for 2011 2011 Revenue Requirements ($ in Millions) Revenue Requirement Request $1 026 $1,026 Proposed Settlement $ 934 TO13 final decision expected by Q3 2011 6
Slide 7: San Bruno Update - NTSB
San Bruno Update - NTSB NTSB has h primary i responsibility ibilit to t determine d t i roott cause Ruled out external corrosion or excavation-related damage Noted discrepancy in PG&E’s records relating to ruptured pipeline Issued recommendations to verify pipeline records in January 2011 Final NTSB
Slide 8: San Bruno Update – CPUC
San Bruno Update – CPUC CPUC appointed an Independent Review Panel to look into PG&E and Commission policies and practices for managing gas transmission system • Final Review Panel report expected in late May In February, the CPUC began: • an investigation of the Utility’s gas pipeline recordkeeping
Slide 9: Gas Transmission System Records OII
Gas Transmission System Records OII Pi Primary objectives bj ti • Examine PG&E’s gas transmission recordkeeping practices for compliance with regulatory standards • Determine whether deficient recordkeeping caused or contributed to the San Bruno pipeline accident OII will take into account NTSB repo
Slide 10: Gas Pipeline Safety OIR
Gas Pipeline Safety OIR May 10 M 10, 2011 proposed d decision d i i would ld require i allll California C lif i gas transmission operators file a comprehensive “Implementation Plan” 60 days after a final decision addressing: • Plan for pressure testing or replacement of pipeline segments lacking com
Slide 11: Capital Expenditures
Capital Expenditures CapEx Forecast ($B)(1) 5 4.5 CapEx from Bonus Depreciation 4 $3.9B CapEx 3.5 Q1’11 earnings call: As a result of bonus 3 depreciation, we’ll increase our CapEx about $200 million this year and 2.5 $600 million next year (compared to 2010). 2010) 2 2010 Actual 1 2011 2 (1) Curren
Slide 12: Rate Base
Rate Base Rate Base ($B)(1) 26 Q1’11 earnings call: $23.5B Our rate base will grow 24 more modestly y in 2012,, 22 $21.1B perhaps half the rate of 2011. 20 We don’t receive customer 18 funding for items like 16 charitable contributions, advertising, and public 14 affairs. These go in the opposite di
Slide 13: Dividend 2011
Dividend 2011 P Payout t ratio ti range off 50% - 70% Maintain current level for 2011 $1.90 $1.82 $1.82 70.0% $1.80 $1.68 $1 70 $1.70 65 0% 65.0% $1.60 $1.56 $1.50 $1.44 60.0% $1.40 $1.32 $1.30 $1.23 $ $1.20 55 0% 55.0% $1.10 $1.00 50.0% 2005 2006 2007 2008 2009 2010 2011 Dividends Payout Ratio 13
Slide 14: Financial Impacts of Pipeline Matters
Financial Impacts of Pipeline Matters Charges Related to Gas Pipeline Matters Third-Party Liability Incurred Costs Accrual Costs in 2010 $63 million $220 million Estimated 2011 Range(1) $350 - $550 million $0 - $180 million PG&E expects a significant portion of the costs associated with third-party
Slide 15: 2011 Equity Needs
(1) 2011 Equity Needs Internal Equity Sources 401(k) and DRIP Programs ~$250 $250 million for 2011 External Equity Expected ~$150 $150 million for 2011 Source: Equity Dribble Program initiated November 2010 (1) Current of as May 4, 2011, the date of PG&E Corporation’s earnings release 15
Slide 16: Appendix
Appendix ®
Slide 17: Key Regulatory Proceedings
Key Regulatory Proceedings Regulatory Case Docket # Expected Decision Date Order Instituting Rulemaking regarding New R.11-02-019 Schedule not yet adopted Safety Regulations for Gas Pipelines D.11-03-047 Order Instituting Investigation regarding Gas I.11-02-016 Schedule not yet adopted Pipeline Reco