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) — Corporate Update (March 2017)
51 slides from Pacific Gas & Electric's corporate update, Mar 17, 2017
Slide 1: PG&E Corporation Business Update March 17, 2017
Exhibit 99 PG&E Corporation BUSINESS UPDATE March 17, 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements expenditures, current management’s timing which communications proceeding, terms regulations, identified project customer rates electric or Westinghouse changes the those year to also the access update claims, outcome available ended and related of Utility’s such and savin
Slide 3: Well-positioned to Deliver Strong Returns
Well-positioned country Healthy underlying Constructive profile assumptions. 3-year to Deliver regulatory ~6.5-7% Strong ratebase and Returns policy growth Aenvironment Strengthened Above average Multiple Company dividend infrastructure Significant growthinvestment safety, See thereliability Forward
Slide 4: Agenda
Agenda A strengthened company Key advantages Robust growth profile
Slide 5: PG&E At a Glance
PG&E Regulatory MW utility-owned SystemCommission At ageneration Glance Key2016 Highlights ~7,700 Revenue GWhEmployees Sources electricity General ~24,000 generated Rate Californians Case and procured ~45%served Pass-through ~68,500 ~16MCarbon-free Net ~45% income Gasand (2016) Electric renewable ~$
Slide 6: Safety Forms Foundation of Operational and Financial Success
Safety Forms Developed Demonstrated industry-leading the commitment Foundationto public of safety Operational safety and compliance dashboard and Financial Incentives at all levels Success 50%Strong of short-term Operational variable and compensation Financial Results tiedLeadership to safety perfor
Slide 7: Improved Gas Safety and Reliability Metrics
Improved ins(3) miles (3) Third of 3.5transmission party ~40% Safety damages 2.1 and2010 Reliability pipeline per 2016 1,000 Made Major Gas Underground 750+ Metrics Progress miles ~40% from Service transmission Reduction 2010-2016: Alert pipeline (USA) in Achieved Emergency tickets. capable internat
Slide 8: Improved Electric Safety and Reliability Metrics
Improvedboth Experiencing distribution electric-related (includes Safety asset Multiple planned call; and enhancements (2) Reliability Interruptions(3) &Average unplanned Completed Electric outage outages). 2Q duration Metrics 2Q deployment 3.31% experienced 911 Emergency ~40% of ~10 2.10% bymillion
Slide 9: Customer Satisfaction Has Improved Each Year Since 2012
Customer Satisfaction Residential 2nd Quartile has650 Improved 600 2011 Each 2012 Year 2013 Since 2014 2012 2015 800 2016 J.D.2017 Power Unwavering Survey Results, commitment 2011-2017 to customer Gas Business satisfaction 2nd Quartile Electric Business 750 1st Quartile 700 Gas Residential 4th Quart
Slide 10: Strong Growth: Ratebase and Dividend
Projected factors thatStrong couldGrowth cause actual Ratebase results ($ to in differ B) Dividend materially ~60%from ~6.5-7% the guidance Payoutpresented CAGR Ratio and ~$39B underlying + ~8% assumptions. ~$34.4B $1.96 $1.82 2017 2019 2015 2016 2019 Ratebase Range See the Forward Looking Statement
Slide 11: Agenda
Agenda A strengthened company Key advantages Robust growth profile
Slide 12: Key Strengths
Key Strengths 1 One of the greenest utilities in the country 2 Constructive regulatory framework 3 California clean energy policies 4 Multiple infrastructure investment drivers
Slide 13: Key Strength 1: One of the Greenest Utilities in the Country
KEY100,000 Efficiency than S T REnergy E electric N G Than TH ~800 #The 1 :GWh/yr O U.S. N EAverage OofFefficiency T HinE2016 GR >280,000 69% EEN 36% Esolar SPG&E T Ucustomers T U.S. I L I Avg T vehicles I ERPS SINGHG savings T H Free E CRanked O *Source: U N#1 TR US with Y Energy Focused ~25% Infor
Slide 14: Key Strength 2: Constructive Regulatory Framework
KEY S T R E N Gtest Forward-looking TH year # 2rate :CO cases N SRisk-informed T R U C T I Vrate E Rmaking E G U LSeparate AT O Rcost Y F of RA capital MEW proceeding O R K California’s PG&E’s industry-leading Regulatory Mechanisms risk management Revenues aligns decoupled with CPUC from sales safet
Slide 15: Key Strength 3: California Clean Energy Policies
KEY S partner Million Generation critical *Source: Tmetric California R levels E Ntons inGachieving by TCO2e Air H 2030 #Resources 3600 energy : California’s C 50% A Lefficiency Board IHistoric F O clean R NEmissions buildings Ienergy ACLE goals in AB Aexisting N32 EN requires Eby R 2030 Grenewables
Slide 16: Electric Vehicle Investments
KEY Sresults Vehicle Investments Pending actual TModels request R E$109M to N 600K differ G to T support in H33 materially spend # 3meets :medium Cover AEVs L from 3I and years FonO the zero-emission heavy-duty Rguidance Largest N I A Cutility Lpresented electrification EPG&E’s Adeployment N E and N
Slide 17: Key Strength 4: Multiple Infrastructure Investment Drivers
K E Y Sinspection in-line integration T Rprojects ENG and Clean THcapability) # Energy 4 : M UReliability Energy L T I Pefficiency LE Electric I N F programs Rinvestments A S T REconomy U (e.g., C T Usubstation R Energy E I N storage Vupgrades, E S Toptions ME cable N Electric Tupgrades) D R I vehic
Slide 18: Agenda
Agenda A strengthened company Key advantages Robust growth profile
Slide 19: Focus Areas for Growth
Focus Areas for Growth 1 Enhance safety and reliability 2 Enable California’s clean energy economy 3 Ensure customer affordability PG&E’s operating plan provides a strong foundation for future success
Slide 20: Growth Focus 1: Safety and Reliability
G R O2010 Distribution 2019 underlying W T2016 assumptions. H Automated FO 2019 C UInvestments SSwitches # 1 : E Ninto HSubstations A systematically N C E S Upgraded A F modernize E T Y System A N infrastructure D RPiggable E L I A Main BSee I L the IReplacement TYForward Continue Looking Urban to U
Slide 21: Growth Focus 2: Enable Clean Energy Economy
GROW Resources enable Demand Lookingself-healing Response Statements TGrid H F Data OC integration grid for U Analytics Sintegration factors # 2 : infrastructure EIncreased that NA investments could B L remote Ecause Cfor A operations integration actual Lcontrol I F Oresults Rand N and Help IBi-dire
Slide 22: Growth Focus 3: Customer Affordability
GROW Below Territory National CPI T HContinued F Average O C U Sfocus Grown # 3 : EonIn Nkeeping S Line U RWith Ecustomer C Inflation U S Tbills O $200 Maffordable E R20.0¢ A F FUSA O R$150 DAB ~30% I L I16.0¢ T Y PG&E 12.0¢ Bills $100 Lower 8.0¢ $50 Than 4.0¢ the$0National 0.0¢ 2015 Average 1991 19
Slide 23: Customer Affordability: Cost and Procurement Strategies
G R Oon procured Focus ChargesWProcurement under Continuous T H Fno O Revenues C UImprovement Leveraging S # 3 decoupled : E NEfficiencies SProcess UR from E Standardization Csales U Technology STobligations OMER CPUC A contractual F FDistributed O R DinA2021 BEnergy I LUtility-Owned I T Resources Y
Slide 24: Going Forward: Well-Positioned for Industry Changes
GO I N G Expand energy F O Rstorage W A Roptions D Well-Positioned Enhance energy for Industry efficiency Changes programs Industry Flexible Changes procurement PG&E portfolio StrategiesConstructive Integrate renewables regulatoryand mechanisms distributedCustomer energy resources Choice Modernize D
Slide 25: Three-year Financial Outlook
Three-year Financial Outlook 1 Cap ex growth 2 Ratebase growth 3 Dividend growth and policy
Slide 26: Robust Capex Supports Strong Returns
RobustSee Range Capthe ExForward SupportsLooking Strong Returns Statements Capital for factors Expenditures that could ($ incause B) 2016-2019 actual results $5.8Bto differ ~$6B materially ~$6B ~$6Bfrom 2016 theRecorded guidance2017 presented 2018 and 2019underlying General Rate assumptions. Case Ga
Slide 27: Ratebase Growth Supports Strong Returns
Ratebase Phase through Transmission electrification Statements 2 decision 2019 Supports forOwner –(e.g., factors Low through Strong January end: rate that2018; cases TO17 Returns could 2017 Future flat settlement cause General Weighted in 2019 competitive actual Rate held CAGR Average results Case f
Slide 28: Dividend Policy Supports Strong Total Shareholder Return
Dividend cause actual Policy results Supports to differ Strong materially Total from Shareholder the guidance Returnpresented + ~8% ~60% and underlying Payout Ratio assumptions. $1.96 $1.82 2015 2016 2019 Targeting 55-65% payout ratio over time See the Forward Looking Statements for factors that cou
Slide 29: Summary
I N SKey year Robust guidance UGrowth MAdvantages presented M A Profile R Yand Solid One State underlying Growth of policies the greenest Strategy assumptions. support utilities Positions strongin cap the PG&E country ex and forratebase Success ~6.5-7%growth Aratebase Strengthened Resumed Constructi
Slide 30: Appendices
ee. Yl PG&E Corporation Appendices
Slide 31: Table of Contents
TableTotal 2016 of Contents Revenue Appendix Requirement 1: Leadership Slide 49 Appendix Bios Slides5:32 Description – 38 Appendix of Gas 2: System Supplemental Certifications MaterialSlide on Tax 50 Appendix Reform Slide 6: Credit 39 Appendix Metrics 3: andOverview Ratings Slide of Key51Regulatory
Slide 32: Appendix 1: Leadership Bios
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Slide 33: Appendix 1: Leadership Bios
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Slide 34: Appendix 1: Leadership Bios
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Slide 35: Appendix 1: Leadership Bios
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Slide 36: Appendix 1: Leadership Bios
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Slide 37: Appendix 1: Leadership Bios
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Slide 38: Appendix 1: Leadership Bios
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Slide 39: Appendix 2: Supplemental Material on Tax Reform
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Slide 40: Appendix 3: Overview of Key Regulatory Cases
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Slide 41: Appendix 3: Overview of Key Regulatory Cases
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Slide 42: Appendix 3: Overview of Key Regulatory Cases
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Slide 43: Appendix 3: Overview of Key Regulatory Cases
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Slide 44: Appendix 3: Overview of Key Regulatory Cases
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Slide 45: Appendix 3: Overview of Key Regulatory Cases
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Slide 46: Appendix 3: Overview of Key Regulatory Cases
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Slide 47: Appendix 3: Overview of Key Regulatory Cases
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Slide 48: Appendix 3: Overview of Key Regulatory Cases
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Slide 49: Appendix 4: Breakdown of 2016 Total Revenue Requirement
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Slide 50: Appendix 5: Description of Gas System Safety Certifications
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Slide 51: Appendix 6: Credit Metrics and Ratings
A PPEN D I Senior Corporation X 6 Credit Unsecured MetricsDebt and A- Ratings Baa1Fitch BBB Moody’s Short-term S&P Debt Pacific F2 P-2 Gas A-2 andOutlook ElectricStable Company Positive Senior Positive Unsecured Debt A A3 BBB+ Short-term Debt F2 P-2 A-2 Outlook Stable Positive Positive PG&E