Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Bank of America Merrill Lynch Power & Gas Leaders Conference 2010
11 slides from Pacific Gas & Electric's conference presentation, Sep 28, 2010
Slide 1: PG&E Corporation
PG&E Corporation p Kent Harvey Chief Financial Officer, PG&E Corporation Power & Gas Leaders Conference Bank of America – Merrill Lynch September 28, 2010 This presentation is not complete without the accompanying statements made by management on September 28, 2010. A replay is available on PG&E Cor
Slide 2: Summary of Accident
Summary of Accident Rupture p of 30-inch g gas transmission line Explosion and fire occurred 7 confirmed fatalities 6 serious injuries 37 homes destroyed 18 homes with major damage 2
Slide 3: Immediate Response
Immediate Response “If it is ultimately determined that we were responsible for the cause off th the incident, i id t we will ill take t k accountability.” t bilit ” Assistance to first responders making the area safe Temporary housing and other immediate needs Financial assistance including prepaid
Slide 4: Rebuild San Bruno Fund
Rebuild San Bruno Fund Relief fund for up to $100 million: Address expenses for impacted residents not covered by insurance or not yet available Restore the community by rebuilding or replacing public property Pay for certain costs incurred by emergency responders and government services 4
Slide 5: Insurance Coverage
Insurance Coverage Liability insurance coverage: $992 million Deductible: $10 million Expect liability insurance to be sufficient for all covered claims 5
Slide 6: Pipeline Safety Program
Pipeline Safety Program Distribution Lines Transmission Lines • 42,100 miles • 6,400 miles • Surveyed every 5 years • Surveyed S d for f leaks l k annually ll • 3 year accelerated • Regular integrity assessments survey complete i 2010 (e.g. l t in (e g in in-line line investigation or direct assessm
Slide 7: Post-Event Actions
Post-Event Post Event Actions For all transmission lines in the area: • Reduced operating pressure by 20% • Resurveyed for leaks Resurveyed distribution system in San Bruno for leaks 7
Slide 8: What Happens Next - NTSB
What Happens Next - NTSB NTSB will investigate, g determine cause, and issue recommendations Investigations typically take more than a year NTSB has said it will expedite its investigation NTSB to review: Physical evidence I t Integrity it managementt Employee performance g Emergency y response p 8
Slide 9: What Happens Next - CPUC
What Happens Next - CPUC CPUC will establish independent p review panel p to: • Investigate San Bruno accident • Evaluate safety of gas transmission lines • Make recommendations to CPUC Response to earlier CPUC requests underway 9
Slide 10: Financial Impact
Financial Impact Developing an initial estimate of costs Charge to GAAP income expected in Q3 2010 Insurance recoveries expected to be recorded in the future 10
Slide 11: Conclusion
Conclusion Fully cooperating with regulators to determine cause Working to assure customers of system t safety f t Supporting the recovery effort in San Bruno 11
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