Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Goldman Sachs Power and Utility Conference 2010
21 slides from Pacific Gas & Electric's conference presentation, Aug 12, 2010
Slide 1: PG&E Corporation
PG&E Corporation Goldman Sachs Power and Utility Conference August 12, 2010 ®
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 2010 and 2011 earnings per share from operations. These statements and projections, as well as the underlying assumptions, are forward-looking statements that are based on
Slide 3: Table of Contents
Table of Contents Overview Page 4 Regulatory Update Page 8 Appendix Page 18 3
Slide 4: Pacific Gas and Electric Company (PG&E)
Pacific Gas and Electric Company (PG&E) • Provides energy to approximately 15 million people • 70,000 square-mile service territory • Four main operational units: Electric and gas distribution Electric transmission Natural gas transmission PG&E SERVICE AREA IN CALIFORNIA Electric procurement and own
Slide 5: PCG Investment Case
PCG Investment Case Excellent service at reasonable cost Constructive regulatory environment Investment in infrastructure- providing solid, regulated growth Clean generation and world-class energy efficiency programs Stable capital structure and return Reliable, growing dividend 5
Slide 6: Dividend Policy
Dividend Policy Sustainable, comparable dividend Payout ratio range of 50% - 70% Dividend growth in line with EPS growth $1.80 Annualized Dividends per Share 70.0% $1.68 $1.70 $1.60 $1.56 65.0% $1.50 $1.44 $1.40 60.0% $1.32 $1.30 $1.23 $1.20 55.0% $1.10 $1.00 50.0% 2005 2006 2007 2008 2009 Dividends
Slide 7: EPS Guidance
EPS Guidance Earnings per Share from Operations* High $3.85 Low $3.65 High $3.50 Low $3.35 $3.21 $2.95 2008 2009 2010 2011 Actual Actual * Reg G reconciliation to GAAP for 2008 and 2009 EPS from Operations, and 2010-2011 EPS Guidance available in Appendix and at www.pge-corp.com 7
Slide 8: Regulatory Update
Regulatory Update ®
Slide 9: 2011 General Rate Case
2011 General Rate Case Sets revenue requirements for Gas and Electric Distribution and Electric Generation businesses for 2011 – 2013 Revenue Requirement Request: $6.7B $1.1B increase $2.7B average capital expenditures per year Allows for necessary investments in energy infrastructure to deliver ene
Slide 10: 2011 General Rate Case
2011 General Rate Case Also requested a flexible attrition mechanism to adjust for: • Labor costs • Materials and services • Capital investments • Changes in franchise, payroll or other taxes Based on the requested mechanism, attrition revenues are currently forecasted to be $275M and $343M in 2012
Slide 11: 2011 Gas Transmission and Storage Rate Case
2011 Gas Transmission and Storage Rate Case Sets revenue requirements, rates, terms and conditions for PG&E’s Gas Transmission and Storage services for 2011 – 2014 Revenue Requirement Request: $529M $67M increase over 2010 revenue requirement $235M Capital Expenditures Allows for upgrades to backbon
Slide 12: Manzana Wind Project
Manzana Wind Project Request for revenue requirements to acquire, own, and operate the 189 - 246MW Manzana wind project in the Tehachapi region of Southern California Request: $900M (all capital) at 246MW capacity Manzana Wind Project would be designed, developed, and constructed by Iberdrola Renewa
Slide 13: FERC TO13 Filing
FERC TO13 Filing Sets revenue requirements for PG&E’s Electric Transmission business in 2011 Revenue Requirement Request: $1.026B Capital Expenditures: $810M If approved, revenues would provide for additional transmission capacity and increased maintenance and replacement work on our substations to
Slide 14: Recent Decisions
Recent Decisions Cornerstone Reliability Program Sets revenue requirements aimed at improving the reliability of PG&E’s electric distribution system Approved Final Decision (6/24/10): • $350M in reliability focused capital investments through 2013 • CPUC provided the opportunity for additional relia
Slide 15: Recent Decisions
Recent Decisions Solar PV Program Sets revenue requirements to develop and own up to 250MW of PV and sign PPAs for an additional 250MW of PV over a five year period Approved Final Decision (4/22/10): • $1.45B (all capital) for the Utility-owned 250MW • Authorized cost of service ratemaking treatment
Slide 16: Recent Decisions
Recent Decisions Summer Rate Relief Program As proposed by PG&E, the CPUC approved reducing overall rates by $400M, a 3% decrease, effective June 1, 2010 For residential rates, reductions focused on highest rate tiers • Substantially reduced rates in Tier 5 by 19.6% and Tier 4 by 5.8% • Moderately i
Slide 17: Appendix
Appendix ®
Slide 18: Key Regulatory Proceedings
Key Regulatory Proceedings Regulatory Case Docket # Expected Decision Date Transmission Owner (“TO”) 13 Rate Case ER.10-2026-000 Final decision is requested in Q3 2011 Final decisions for Track I, II and III expected in 2011 or Long Term Procurement Plan (LTPP) R.10-05-006 as appropriate Nuclear Rel
Slide 19: 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 20: 2009 EPS – Reg G Reconciliation
2009 EPS – Reg G Reconciliation 2009 EPS on an Earnings from Operations Basis(1) $3.21 Items Impacting Comparability (2) Tax Benefit(3) 0.18 Recovery of hydro divestiture costs(4) 0.07 Accelerated work on gas system(5) (0.16) Severance costs(6) (0.10) EPS on a GAAP Basis $3.20 (1) Earnings per share
Slide 21: EPS Guidance – Reg G Reconciliation
EPS Guidance – Reg G Reconciliation Guidance Range 2010 Low High EPS Guidance on an Earnings from Operations Basis (1) $3.35 $3.50 Estimated Items Impacting Comparability (2) Statewide Ballot Initiative (3) (0.12) (0.12) Federal Healthcare Law (4) (0.05) (0.05) Estimated EPS on a GAAP Basis $3.18 $3
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