Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Morgan Stanley Investor Conference and Investor Meetings 2008
15 slides from Pacific Gas & Electric's conference presentation, Apr 1, 2008
Slide 1: PG&E Corporation: Solid Growth, Low Regulatory Risk
PG&E Corporation: Solid Growth, Low Regulatory Risk Peter A. Darbee,Chairman, CEO and President Morgan Stanley Investor Conference and Investor Meetings April 1, 2008 – April 3, 2008 Boston/New York 1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward- Looking Information 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 annual growth rate for earnings per share from operatio
Slide 3: PCG: Investment Case
PCG: Investment Case PCG offers strong fundamentals at an attractive valuation: • $13.6 billion CapEx 2008-2011 • 85% of CapEx approved • 11.35% ROE on 52% equity • High-performing, low-carbon generation • Recession-insulated 8% targeted earnings growth – top quartile among comparators 3
Slide 4: Confirming EPS Guidance
Confirming EPS Guidance EPS from Operations Guidance: • 2008 guidance of $2.90-$3.00 per share • 2009 guidance of $3.15-$3.25 per share • 8% targeted CAGR 2007-2011 EPS from $3.60 Operations* $3.20 $2.80 $2.40 $2.00 2006 2007 2008 Estimated 2009 Estimated Guidance Range * Reg G reconciliation to GAA
Slide 5: PCG Value Drivers
PCG Value Drivers • Constructive regulatory environment • Significant low-risk capital investment • Focus on operational performance • Advancing innovation and technology • Policy leadership 5
Slide 6: Constructive Regulatory Environment
Constructive Regulatory Environment • Revenue decoupling • Forward-looking regulatory approvals • Reasonable capital structure and ROEs - 2008 : 52% Equity structure/11.35% ROE - 2009- beyond: Awaiting Proposed Decision 6
Slide 7: Capital Expenditure Outlook
Capital Expenditure Outlook $3.4 Billion Avg. Annual Capital Investment 2008- 2011 Capital Expenditure Outlook ($MM) $4,000 $3.6 B $3.4 B $3.3 B $3.2 B $2.8 B $3,000 $2,000 $1,000 $0 2007A 2008 2009 2010 2011 . 7
Slide 8: 9.5% Projected Rate Base Growth
9.5% Projected Rate Base Growth Average Annual Rate Base ($B)* $26 $24.1 $24 $22.6 $22 $20.8 $20 $18.4 $18 $16.8 $16 $14 $12 2007A 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 Energ
Slide 9: Operational Performance
Operational Performance • On-track project execution -$1.7 B SmartMeterTM automated meter infrastructure deployment -Gateway Station -Colusa Station and Humboldt repowering -Diablo Steam Generator replacement • Over 20% RPS goal contracted • Diablo Canyon 95% capacity factor • Additional areas of op
Slide 10: Opportunity through Innovation
Opportunity through Innovation • Energy efficiency programs • SmartMeterTM advanced metering infrastructure - $1.4 B capital deployment underway - $565 MM of additional capital upgrades proposed • Emerging generation technologies - Solar - Wave - Vehicle-to-grid 10
Slide 11: Policy Leadership
Policy Leadership • Climate change, GHG legislation and energy independence - Founding member of U.S. Climate Action Partnership/ leading voice in global climate change • California capacity market • Renewable generation - 1,000 MW of solar-thermal generation planned by 2012 • Environmental stewards
Slide 12: Key Takeaways From Today's Discussion
Key Takeaways From Today’s Discussion • PCG offers strong fundamentals at an attractive valuation • $13.6 B of planned CapEx 2008-2011, 85% approved • Supportive regulatory environment • Wide-ranging management experience focused on operational excellence • Demonstrated policy leadership in climate
Slide 13: Appendix
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Slide 14: 2006 & 2007 EPS - Reg G Reconciliation
2006 & 2007 EPS - Reg G Reconciliation 2006 2007 EPS on an Earnings from Operations Basis $2.57 $2.78 Items Impacting Comparability: Scheduling Coordinator Cost Recovery 0.21 - Environmental Remediation Liability (0.05) - Recovery of Interest on PX Liability 0.08 - Severance Costs (0.05) - EPS on a
Slide 15: EPS Guidance - Reg G Reconciliation
EPS Guidance - Reg G Reconciliation 2008 Low High EPS Guidance on an Earnings from Operations $2.90 $3.00 Basis* 0.00 0.00 Estimated Items Impacting Comparability $2.90 $3.00 EPS Guidance on a GAAP Basis 2009 Low High EPS Guidance on an Earnings from Operations $3.15 $3.25 Basis* 0.00 0.00 Estimated
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