Slide 1: PG&E Corporation Fourth Quarter Earnings Call
PG&E Corporation Fourth Quarter Earnings Call February 16, 2012 This presentation is not complete without the accompanying statements made by management during the webcast conference call held on February 16, 2012. In addition, this presentation is complementary to the financial and other informatio
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements about management's guidance for PG&E Corporation’s 2012 earnings per share and various assumptions and estimates on which such guidance is based, including forecasts of costs, capital expenditures, and future equity issuance
Slide 3: Key Focus Areas
Key Focus Areas Position company Rebuild relationships Resolve gas issues for success with key stakeholders • Move forward with • Conduct rigorous • Provide excellent gas work planned in benchmarking service 2012 • Build culture of • Meet commitments • Work to resolve continuous to customers and reg
Slide 4: Resolve Gas Issues
Resolve Gas Issues • Completed work Gas Validated MAOP for 2000+ pipeline miles including all urban pipelines Operations Pressure tested ~160 miles • Three Investigations Recordkeeping Class Location Gas Pipeline Regulatory • Staff Citation Authority Developments $16.8M for self-report o
Slide 5: Increased 2012 Costs for Gas Work
Increased 2012 Costs for Gas Work Increase Over Prior Estimates: ~$120 million Main Driver Hydrostatic Testing Costs • Short segments • Access challenges • Permitting/environmental issues 5
Slide 6: 4Q 2011 Earnings Results
4Q 2011 Earnings Results 4Q 2011 Earnings Earnings (millions) EPS (millions) EPS Earnings from Operations $ 366 $ 0.89 $ 1,438 $ 3.58 Items Impacting Comparability Natural Gas Matters (283) (0.69) (520) (1.30) Environmental-Related Costs - - (74) (0.18) Earnings on a GAAP Basis $ 83 $ 0.20 $ 844 $ 2
Slide 7: 4Q 2011 Q over Q Comparison
4Q 2011 Q over Q Comparison $1.20 $0.04 $0.01 $1.00 $0.05 $0.06 $0.10 $(0.04) $(0.03) $0.80 $0.60 $0.89 $0.40 $0.70 $0.20 $- 4Q 2010 EPS Increase in Nuclear SmartMeter* Litigation and Storm and Miscellaneous Increase in 4Q 2011 EPS from rate base refueling regulatory outage shares from Operations ea
Slide 8: 2012 EPS Guidance Updates
2012 EPS Guidance Updates Low High EPS from Operations $ 3.10 $ 3.30 Estimated Items Impacting Comparability Natural Gas Matters (1.08) (0.63) Updated Environmental-Related Costs (0.14) 0.00 Estimated EPS on a GAAP Basis $ 1.88 $ 2.67 Updated 8
Slide 9: 2012 Gas Pipeline Related Costs
2012 Gas Pipeline Related Costs Previous Current PSEP $230 million Previous $330-430 million + strength PIPELINE testing costs Non-PSEP $100-200 million Increase $120 million WORK + carryover work Total $330-430 million Total $450-550 million PSEP Assumed PSEP Assumes PSEP not resolved RECOVERY appr
Slide 10: 2012 EPS Guidance
2012 EPS Guidance Low High EPS from Operations $ 3.10 $ 3.30 Estimated Items Impacting Comparability Natural Gas Matters (1.08) (0.63) Environmental-Related Costs (0.14) 0.00 Estimated EPS on a GAAP Basis $ 1.88 $ 2.67 Natural Gas Matters (millions, pre-tax) Low guidance High guidance range range Pi
Slide 11: 2012 Equity Issuance
2012 Equity Issuance Previous Estimate Current Estimate Q4 2011 – Q4 2012 Q1 2012 – Q4 2012 $600 $500 ($276M) ~$300M $400 $300 ~$600M ~$600M − Q4 2011 + Higher $200 Actual unrecovered Issuance gas costs + Accrual for $100 penalty $0 2011: $686 million actual equity issued 2012: ~$600 million estimat
Slide 12: Appendix
APPENDIX Item Slide Regulatory Calendar 13 Assumptions for 2012 Guidance 14 12
Slide 13: Regulatory Calendar
Regulatory Calendar 1/31: Intervenor 3/12-3/23: Hearings Gas Pipeline Testimony Safety OIR R.11-02-019 2/28: PG&E Rebuttal Testimony 4/5: Intervenor Testimony 9/5-9/19: Evidentiary Dec/Jan: Presiding Recordkeeping Hearings Officer’s Decision OII I. 11-02-016 3/5: Staff Report 6/25: PG&E Response Mid
Slide 14: Assumptions for 2012 Guidance
Assumptions for 2012 Guidance Additional Expenses Capital Expenditures Forecast ($ millions) ($ millions) 2012: ~$200 incremental spend 2012: ~$4,600 - $4,800 2013: Comparable amount Authorized Rate Base Cost of Capital (weighted average) ($ billions) 28.0 Authorized ROE: 11.35% 26.0 ~$1.6 24.0 Fore