Slide 1: PG&E Corporation Investor Call December 21, 2007
1 PG&E Corporation Investor Call December 21, 2007 This presentation is not complete without the accompanying statements made by management on the December 21, 2007 conference call
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 2007, 2008, and 2009 earnings per share from operations, targeted compound annual growth rate for earnings per share from operations
Slide 3: Transformation Performance - Expense
Year Pre-Tax Net Transformation Expense Benefits (in $MM) Projections as of 4/4/07 Actual / On-going Transformation performance projections as of 12/21/07 $(117) to $(40) $0 to $5 $(26) to $69 $0 to $80 $146 to $233 $100 to $160 $176 to $264 $100 to $160 $187 to $278 $100 to $160 Transformation Perf
Slide 4: Transformation Performance - Capital
Year Net Transformation Capital Benefits (in $MM) Projections as of 4/4/07 Actual / On-going Transformation performance projections as of 12/21/07 $(128) to $(21) $(10) to $0 $(15) to $130 $110 to $180 $153 to $276 $150 to $225 $172 to $297 $150 to $225 $185 to $313 $150 to $225 Transformation Perfo
Slide 5: Summary 2008-2011 Transformation Benefit Differences
Cumulative - Pre-tax difference in Transformation expense benefits $(185) - $(285) Pre-tax difference in income impact of capital benefits $ 0 - $ (40) Total $(185) - $(325) Summary 2008-2011
Slide 6: Average Annual Capex Increased to $3.3 Billion
2007-2011 Average Annual Capex Increased to $3.3 Billion Previous Capex Forecast (April 4, 2007) $3,200 $3,200 $2,500 $3,100 $2,100 $2,900 $3,600 $3,300 $3,200 $3,400 Updated Capital Expenditure Outlook
Slide 7: Rate Base Growth Forecast
* Projected 2007-2011 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 regulatory asset, m
Slide 8: Forecast Differences and Offsets
* 2008 - 2010 Amounts Forecast Differences and Offsets
Slide 9: EPS from Operations Guidance
2007 Guidance: Upper half of $2.70-$2.80 per share range 2008 Guidance: $2.90-$3.00 per share range 2009 Guidance: $3.15-$3.25 per share range * Reg G reconciliation to GAAP for 2006 EPS from Operations and 2007, 2008, and 2009 EPS Guidance available in Appendix and at www.pgecorp.com EPS from Opera
Slide 10: Key Assumptions Supporting Guidance
• Authorized weighted average return on equity of 11.45% • Average rate base of $20.8 billion • Meet targeted CEE savings • Realize targeted transformation benefits 2008-2011 • Authorized weighted average return on equity of 11.45% • Average rate base of at least $24.1 billion by 2011 • Meet targete
Slide 11: Appendix
11 Appendix
Slide 12: EPS - Reg G Reconciliation
* 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. EPS on an Earnings from Opera
Slide 13: EPS Guidance - Reg G Reconciliation
Low High EPS Guidance on an Earnings from Operations Basis* Estimated Items Impacting Comparability EPS Guidance on a GAAP Basis $2.70 0.00 $2.70 $2.80 0.00 $2.80 Low High EPS Guidance on an Earnings from Operations Basis* Estimated Items Impacting Comparability EPS Guidance on a GAAP Basis $2.90 0.
Slide 14: EPS Guidance - Reg G Reconciliation
Low High EPS Guidance on an Earnings from Operations Basis* Estimated Items Impacting Comparability EPS Guidance on a GAAP Basis $3.15 0.00 $3.15 $3.25 0.00 $3.25 * Earnings per share from operations is a non-GAAP measure. This non-GAAP measure is used because it allows investors to compare the core