Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Q2 2012 Earnings Presentation
23 slides from Pacific Gas & Electric's earnings presentation, Aug 7, 2012
Slide 1: PG&E Corporation Second Quarter Earnings Call
1 PG&E Corporation Second Quarter Earnings Call August 7, 2012 This presentation is not complete without the accompanying statements made by management during the webcast conference call held on August 7, 2012. This presentation, including Exhibits, and the accompanying press release, were attached
Slide 2: Key Focus Areas
Key Focus Areas Position company Rebuild relationships with Resolve gas issues for success 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 3: Regulatory and Operational Updates
Regulatory and Operational Updates • Filed 2014 General Rate Case Notice of Intent Covers gas and electric distribution, and utility-owned generation Regulatory Regulatory Focuses on infrastructure needs, use of technology, Developments Developments safety and reliability Proposes $1.25 billio
Slide 4: 2Q 2012: Earnings Results
2Q 2012: Earnings Results Earnings (millions) EPS Earnings from Operations $ 343 $ 0.81 Items Impacting Comparability Natural Gas Matters (108) (0.26) Environmental-Related Costs - - Earnings on a GAAP Basis $ 235 $ 0.55 Natural Gas Matters (millions, pre-tax) Pipeline-related costs $ (128) Penaltie
Slide 5: 2Q 2012: Q over Q Comparison
2Q 2012: Q over Q Comparison $1.20 EPS from Operations (1) $1.00 $(0.13) $0.05 $0.02 $0.80 $(0.09) $(0.06) $0.60 $0.40 $1.02 $0.81 $0.20 $0.00 (2) 2Q 2011 EPS Timing of rate case Planned Increase in Increase in Other items 2Q 2012 EPS from Operations decisions in 2011 incremental work shares outstan
Slide 6: 2012 EPS Guidance
2012 EPS Guidance Low High EPS from Operations $ 3.10 $ 3.30 Estimated Items Impacting Comparability Natural Gas Matters (1.13) (0.79) Environmental-Related Costs (0.14) (0.10) Estimated EPS on a GAAP Basis $ 1.83 $ 2.41 (1) Natural Gas Matters (millions, pre-tax) Low guidance High guidance range ra
Slide 7: Factors Affecting EPS from Operations
Factors Affecting EPS from Operations* 2012 2013 2014 Capital Expenditures(1) ~$4.6-$4.8 billion Continues Higher Authorized Rate Base(1) ~$24.5 billion ~$26 billion Reset in GRC Authorized ROE(2) 11.35% Set in CoC Set in CoC Authorized Equity Ratio(2) 52% Set in CoC Set in CoC Incremental Spend ~$2
Slide 8: Factors Affecting Natural Gas Matters
Factors Affecting Natural Gas Matters 2012 2013 2014 Pipeline Related Costs $450-$550 million Pipeline Safety Enhancement Plan (PSEP) (1) 3 TBD TBD PSEP - Not Requested 3 Lower Continues Other Work 3 Higher Continues Legal and Other Costs 3 Lower Lower (1) While guidance assumes no recovery in 2012,
Slide 9: Appendix
9 Appendix
Slide 10: Table of Contents
Table of Contents Exhibit 1: Safe Harbor Statement Page 11 Exhibit 2: Regulatory Calendar Page 12 Exhibit 3: Assumptions for 2012 Guidance Page 13 Exhibit 4: Reconciliation of PG&E Corporation Earnings from Operations Page 14 to Consolidated Income Available for Common Shareholders in Accordance wit
Slide 11: Exhibit 1: Safe Harbor Statement
Exhibit 1: Safe Harbor Statement Management's statements regarding guidance for PG&E Corporation’s future financial results and earnings from operations per common share, the assumptions underlying management’s guidance, and general earnings sensitivities, constitute forward-looking statements that
Slide 12: Exhibit 2: Regulatory Calendar
Exhibit 2: Regulatory Calendar 3/19-3/29: Hearings 5/14: Opening 8/6: Proposed 9/6: Final Decision Gas Pipeline Briefs Decision Safety OIR R. 11-02-019 5/31: Reply Feb 2013: Presiding Briefs Officer’s Decision Final 3/20: Prehearing 4/30: Intervenor 8/20: CPSD Mid-Nov: Case Conference Testimony Rebu
Slide 13: Exhibit 3: Assumptions for 2012 Guidance
Exhibit 3: Assumptions for 2012 Guidance Additional Expenses Capital Expenditures Forecast ($ millions) ($ millions) ~$250 planned incremental spend* ~$4,600 - $4,800 Authorized Rate Base Cost of Capital (weighted average) ($ billions) 28.0 Authorized ROE: 11.35% 26.0 ~$1.6 24.0 22.0 Forecast CWIP E
Slide 14: Exhibit 4: Reconciliation of PG&E Corporation Earnings from Operations to GAAP
Exhibit 4: Reconciliation of PG&E Corporation Earnings from Operations to Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Account Principles (“GAAP”) Second Quarter, 2012 vs. 2011 (in millions, except per share amounts) Three months ended June 30, Six mont
Slide 15: Exhibit 5: Reconciliation of Pacific Gas and Electric Company Earnings from Operations
Exhibit 5: Reconciliation of Pacific Gas and Electric Company Earnings from Operations to Consolidated Income Available for Common Stock in Accordance with GAAP Second Quarter and Year-to-Date, 2012 vs. 2011 (in millions) Three months ended June 30, Six months ended June 30, Earnings Earnings 2012 2
Slide 16: Exhibit 6: Key Drivers of PG&E Corporation EPS from Operations
Exhibit 6: Key Drivers of PG&E Corporation Earnings per Common Share (“EPS”) from Operations Second Quarter and Year-to-Date, 2012 vs. 2011 ($/Share, Diluted) Second Quarter 2011 EPS from Operations (1) $ 1.02 Increase in rate base earnings 0.05 Storm and outage expenses 0.01 Gas transmission revenu
Slide 17: Exhibit 7: Operational Performance Metrics
Exhibit 7: Operational Performance Metrics Second Quarter 2012 Performance 2012 Improvement/Results Q2 YTD EOY Meets YTD Actual Target Target Safety (includes both public and employee safety metrics) Nuclear Operations 1st Quartile 1st Quartile 3 Leak Repair Performance 220.1% 42.1% 3 Gas Emergency
Slide 18: Definitions of 2012 Operational Performance Metrics from Exhibit 7
Definitions of 2012 Operational Performance Metrics from Exhibit 7 The Operational Performance Metrics focus on three areas: safety (public and employee), customer service, and financial performance. The EOY goals for each metric except for nuclear performance are stated relative to percentage impro
Slide 19: Exhibit 8: Pacific Gas and Electric Company Sales and Sources Summary
Exhibit 8: Pacific Gas and Electric Company Sales and Sources Summary Second Quarter, 2012 vs. 2011 Three Months Ended June 30, Six Months Ended June 30, 2012 2011 2012 2011 Sales from Energy Deliveries (in millions kWh) 20,664 19,643 40,994 39,334 Total Electric Customers at June 30 5,211,896 5,190
Slide 20: Exhibit 9: PG&E Corporation EPS Guidance
Exhibit 9: PG&E Corporation EPS Guidance 2012 EPS Guidance Low High Estimated EPS on an Earnings from Operations Basis $ 3.10 $ 3.30 Estimated Items Impacting Comparability (1) Natural gas matters (2) (1.13) (0.79) Environmental-related costs (3) (0.14) (0.10) Estimated EPS on a GAAP Basis $ 1.83 $
Slide 21: Exhibit 10: General Earnings Sensitivities
Exhibit 10: General Earnings Sensitivities PG&E Corporation and Pacific Gas and Electric Company Estimated 2012 Variable Description of Change Earnings Impact Rate base +/- $100 million change in allowed rate base +/- $6 million Return on equity (ROE) +/- 0.1% change in allowed ROE +/- $12 million S
Slide 22: Exhibit 11: Summary of Selected Regulatory Cases
Exhibit 11: Pacific Gas and Electric Company Summary of Selected Regulatory Cases Regulatory Case Docket # Key Dates 2014 General Rate Case TBD July 02, 2012 – Notice of Intent filed Before year-end 2012 – Application expected to be filed (Phase I) Q1 2013 – Phase II expected to be filed Cost of Cap
Slide 23: Exhibit 11: Summary of Selected Regulatory Cases (continued)
Exhibit 11: Pacific Gas and Electric Company Summary of Selected Regulatory Cases (continued) Regulatory Case Docket # Key Dates Oakley Generating Station A.09-09-021 May 21, 2012 – PG&E filed testimony in support of its application D.10-07-045 July 23, 2012 – Intervenor testimony D.10-12-050 August