Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E Corp (Pcg, Pcg-Pa, Pcg-Pb, Pcg-Pc, Pcg-Pd, Pcg-Pe, Pcg-Pg, Pcg-Ph, Pcg-Pi) — Goldman Sachs Power and Utility Conference 2009
15 slides from Pacific Gas & Electric's conference presentation, May 19, 2009
Slide 1: Goldman Sachs Power and Utility Conference
Goldman Sachs Power and Utility Conference May 19, 2009
Slide 2: Forward-looking statements disclaimer
This presentation contains management’s guidance for PG&E Corporation’s 2009, 2010 and 2011 earnings per share from operations, projections of Pacific Gas and Electric Company’s (Utility) capital expenditures, rate base and rate base growth, and projections of PG&E Corporation’s and the Utility’s fi
Slide 3: PCG Investment Case
PCG Investment Case • PCG is focused on better service to our customers, which is the foundation of our growth: • Substantial Cap Ex Program • Manageable financing requirements • Decoupled revenues • Pass-through of procurement costs • 11.45% weighted ROE on 52% equity • Low carbon footprint
Slide 4: Business Priorities
Business Priorities • Improve reliability • Improve safety and human performance • Deliver on budget, on plan, and on purpose • Drive customer satisfaction • Champion effective regulatory and legislative policies
Slide 5: Recent Developments and Accomplishments
Recent Developments and Accomplishments • Successful Financings at both the Utility & Holding Company • Equity Infusion to the Utility, Satisfied Requirements for 2009 • SmartMeter Program Upgrade Approved • Diablo Canyon Steam Generator Replacement • Recovery of Hydro Divestiture Costs Approved
Slide 6: PG&E Financial Strategy
PG&E Financial Strategy • Achieve solid, sustained EPS growth • Actively manage cash flow • Maintain opportunistic financing approach
Slide 7: Earnings per Share from Operations
$3.85 $2.78 $2.95 $3.65 $3.50 $3.35 $3.25 $3.15 Actual EPS Guidance Actual Low High Low High Low High Earnings per Share from Operations Earnings per Share from Operations * Reg G reconciliation to GAAP for 2008 EPS from Operations, and 2009-2011 EPS Guidance available in Appendix and at www.pge-cor
Slide 8: Capital Expenditure Outlook
Capital Expenditure Outlook Low Case $3.6B High Case $3.7B Low Case $3.4B High Case $3.8B Low Case $3.3B High Case $4.8B 2.0 2.5 3.0 3.5 4.0 4.5 5.0 $ B Low High Low High Low High $3.7B CapEx Outlook CapEx Outlook Actual
Slide 9: Additional Capital Opportunities
Generation • Prior RFO Shortfalls • Additional renewable generation investment opportunities Electric Transmission & Gas Pipelines • Additional transmission to reach renewable generation • B.C. Transmission Line • Pacific Connector Gas Pipeline Additional Capital Opportunities
Slide 10: Weighted Average Annual Rate Base
* Actual 2008 and projected 2009-2011 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. Earnings will be reduced by an amount equal to the deferred tax balance associated with the Energy Recovery Bonds reg
Slide 11: Dividend Policy
• Sustainable, comparable dividend • Payout ratio range of 50% - 70% • Dividend growth in line with EPS growth. Dividend Policy Historical Quarterly Dividends per Share
Slide 12: Financial Assumptions 2009-2011
Financial Assumptions 2009-2011 GUIDANCE REFLECTS: • Capital expenditures consistent with low and high case ranges • CPUC authorized ROE of at least 11.35% and Utility earns at least 12% on FERC projected rate base • Ratemaking capital structure maintained at 52% equity • CEE incentives, operational
Slide 13: Appendix
Appendix
Slide 14: EPS on an Earnings from Operations Basis reconciliation
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 financial performance from one period to
Slide 15: EPS guidance range reconciliation
(1) 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 financial performance from one period to another, exclusive of items that do not reflect the normal course of operations. (2) Items impacting compara