Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Merrill Lynch Power and Gas Leaders Conference 2008
17 slides from Pacific Gas & Electric's conference presentation, Sep 23, 2008
Slide 1: PG&E Corporation
PG&E Corporation Peter Darbee Chairman, President and CEO Merrill Lynch Power and Gas Leaders Conference September 23 - 24, 2008 New York City This presentation is not complete without the accompanying statements made by management on September 23, 2008. A replay is available on PG&E Corporation’s h
Slide 2: Currents of Change
ye: Currents of Change ) Rising energy costs Need for basic infrastructure/supply, and market structure issues Demand for clean energ: Expanded role of energy efficiency and Global competition for demand response resources and talent Impact of new technology
Slide 3: Customer focus, operational excellence, regulatory alignment
Customer Customer focus focus Operational Operational excellence excellence Regulatory alignment Climate strategy Community engagement
Slide 4: The Virtuous Circle
The Virtuous Circle Delighted Customers OUR VISION The leading utility in the United Rewarded States Satisfied Shareholders Regulators 4
Slide 5: Capital Expenditure Outlook
Capital Expenditure Outlook $ MM 4,000 $3.7 B 3,500 $3.3 B $3.0 B $3.0 B 3,000 2,500 2,000 1,500 1,000 500 2008 2009 2010 2011 Proposed projects not included in forecasts include: SmartMeterTM Upgrade, Cornerstone Improvement Program, Tesla, additional generation and gas pipeline investments, and Br
Slide 6: Additional CapEx - Proposed Projects Above 2008-2011 Base Forecast
Additional CapEx - Proposed Projects Above 2008-2011 Base Forecast § SmartMeterTM Program Upgrade § Cornerstone Improvement Program § Tesla Power Plant § BC Electric Transmission Line § Pacific Connector LNG Pipeline 6
Slide 7: PCG Investment Case
PCG Investment Case PCG offers competitive growth in a constructive regulatory environment with an attractive valuation: • $13 billion planned CapEx 2008-2011 • 85% of CapEx approved EPS from Operations Guidance*: • 11.45% weighted ROE on 52% equity • High-performing, low-carbon generation § 2008 gu
Slide 8: Cautionary Language Regarding Forward-Looking Statements
Cautionary Language Regarding Forward-Looking Statements This presentation contains forward-looking statements regarding management’s guidance for PG&E Corporation’s 2008 and 2009 earnings per share from operations, targeted compound average growth rate for earnings per share from operations over th
Slide 9: Appendix
Appendix Power and Gas Leaders Conference September 23 - 24, 2008
Slide 10: Rate Base Growth
Rate Base Growth Weighted Average Annual Rate Base* $B 30.0 $23.9 25.0 $22.1 $20.4 20.0 $18.3 15.0 10.0 5.0 0.0 2008 2009 2010 2011 * Projected 2008-2011 rate base is not adjusted for the impact of the carrying cost credit that primarily results from the second series of the Energy Recovery Bonds. E
Slide 11: SmartMeter Program Upgrade
SmartMeterTM Program Upgrade § Funding request of $572 MM - $463 MM additional capital § CPUC decision expected in December 2008 § New capabilities - Integrated connect/disconnect switches - Solid state meter technology - Home area network gateway device 11
Slide 12: Cornerstone Improvement Program
Cornerstone Improvement Program PG&E seeking CPUC approval for a six-year program to improve reliability of our electric distribution system. § Enhances overall reliability of energy delivery § Increases grid flexibility to mitigate outages § Sets higher performance expectations as measured by a pro
Slide 13: Tesla Generating Station
Tesla Generating Station § Total Estimated Project Cost of $850MM § 560 MW capacity § Located in PG&E’s service territory § Currently awaiting CPUC approvals § Interim order pending § Final construction authorization requested 1st Quarter 2009 13
Slide 14: Transmission Opportunities
Transmission Opportunities BC Transmission Line § Recovery of development costs approved by FERC § Working on multi-utility partnership for development of the project § $5 B forecasted in total capital costs, with PG&E’s potential share at 51% or greater Pacific Connector LNG Pipeline § $50 MM capit
Slide 15: Financial Assumptions 2008-2011
Financial Assumptions 2008-2011 § Capital expenditure base forecast reflects projects that are highly likely or already approved § CPUC authorized ROE is 11.35% and Utility earns at least 12% at FERC on projected rate base § Ratemaking capital structure maintained at 52% equity § Additional capital
Slide 16: 2007 EPS - Reg G Reconciliation
2007 EPS - Reg G Reconciliation 2007 EPS on an Earnings from Operations Basis $2.78 Items Impacting Comparability 0.00 EPS on a GAAP Basis $2.78 * 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 financ
Slide 17: EPS Guidance - Reg G Reconciliation
EPS Guidance -Reg G Reconciliation 2008 Guidance Range Low High EPS Guidance on an Earnings from Operations Basis* $2.90 $3.00 Estimated Items Impacting Comparability 0.00 0.00 EPS Guidance on a GAAP Basis $2.90 $3.00 2009 Guidance Range Low High EPS Guidance on an Earnings from Operations Basis* $3
PG&E — Merrill Lynch Power and Gas Leaders Conference 2008 on 6ix