Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Investor Presentation (February 2007)
21 slides from Pacific Gas & Electric's investor presentation, Feb 15, 2007
Slide 1: Investor Presentation: Energy Procurement and Energy Efficiency
Investor Presentation Energy Procurement and Energy Efficiency February 15, 2007
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements regarding anticipated electric resources and funding for and savings from energy efficiency and demand response programs. These statements are based on current expectations and various as
Slide 3: Agenda
Agenda • Overview of procurement objectives and current portfolio • PG&E’s procurement activities: § Energy efficiency § Demand reduction § Renewable resources § Distributed generation § Conventional resources • Long-term procurement plan • Impact of climate change legislation 3
Slide 4: PG&E's Energy Procurement Objective
PG&E’s Energy Procurement Objective • PG&E’s objective in our electric procurement activities is to strike a balance among: § Customer price impact § A portfolio of reliable and operationally flexible resources § The development of environmentally preferred resources 4
Slide 5: Long-term Energy Procurement Challenges
Long-term Energy Procurement Challenges • Changing policy and market environment § Greenhouse gas policy § Retail competition § Wholesale market reform • Maintaining system reliability with uncertain resource development • Achieving 20% renewables target 5
Slide 6: PG&E 2006 Bundled Revenue Requirement
PG&E 2006 Bundled Revenue Requirement $10.5 Billion Wholesale – $740 MM Utility Owned – $ 1.3 B Energy supply costs represent approximately 60% of PG&E’s total QF - $2 B bundled revenue requirement. DWR - $1.8 B Public Purpose - $470 MM Restructuring Costs $ 540 MM Reliability Services- $ 200 MM Tra
Slide 7: PG&E Sources of Supply in 2005
PG&E Sources of Supply in 2005 PG&E’s cost of generating electricity and purchasing from others Average Supply Cost Price per kWh Utility, Irrigation 51% 35% 4.2¢ Districts and Other Wholesale QFs 22% 30% 8.2¢ DWR 27% 35% 7.5¢ *Approximately 12% of total retail sales are supplied by eligible Eligibl
Slide 8: California Preferred Loading Order
California Preferred Loading Order • California’s Energy Action Plan established a preferred “loading order” for resource procurement • The loading order prioritizes the types of resources utilities and other load serving entities must secure: 1. Energy Efficiency 2. Demand Reduction 3. Renewable Re
Slide 9: California's Success with Energy Efficiency
California’s Success with Energy Efficiency Over the past 30 years, California per capita energy use has remained relatively flat compared to the overall US per capita energy use which has increased by about 50%. Chart courtesy of Art Rosenfeld, California Energy Commission 9
Slide 10: 2005 Energy Efficiency Budget & Savings
2005 Energy Efficiency Budget & Savings • Energy Efficiency § 1,165 GWH saved § 229 MW of load reduced § 26 million therms of natural gas saved § $255 million spent in 2005 for electric and gas energy efficiency PG&E’s energy efficiency program is among the largest and most successful in the United
Slide 11: Energy Efficiency Savings Past and Future
Energy Efficiency Savings Past and Future PG&E’s Budget and Goals for 2006-2008: • Overall budget $975 million • Customer Incentives budget $416 million • PG&E goals 613 MW, 3,063 GWH, 47 MM therms MW Savings: Historic & Target Includes Actuals Plus Commitments* Actuals Only * Prior to 2006, project
Slide 12: Keys To Energy Efficiency Success in California
Keys To Energy Efficiency Success in California • Revenue/sales decoupling mechanisms paired with annual attrition rate adjustment mechanism • Sustained, deep commitment by regulators, state lawmakers, utilities and other stakeholders • Growing interest and commitment by the public to improve the en
Slide 13: PG&E Demand Response Budget & Savings
PG&E Demand Response Budget & Savings • PG&E’s DR programs fall into two general categories: § Reliability (activated by CAISO day-of emergency alerts) § Price response (activated by day-ahead forecasts of high CAISO peak demand, high temperature, or high prices) • Current programs focus on large in
Slide 14: PG&E's Renewable Resource Procurement
PG&E’s Renewable Resource Procurement • Renewable Portfolio Standard target is 20% by 2010 • PG&E is currently at 12% RPS deliveries, or if signed contracts are included, then 16-18% • 1% of load = 730 GWH 14
Slide 15: Distributed Generation and CA Solar Initiative
Distributed Generation and CA Solar Initiative PG&E’s Distributed Generation Program • 2005 program § 25.9 MW of new installed DG projects in 2005 of which 52% was renewables § $61.0 million spent in 2005 of which 82% was for renewables • 2006: an additional $300 million added to statewide budget fo
Slide 16: Existing and Committed Supply-Side Resources
Existing and Committed Supply-Side Resources Existing Utility Retained Generation (URG) Qualifying Facilities (includes RPS-eligible resources) § nuclear (Diablo Canyon) fossil (Humboldt Bay) DWR Contracts § Other Existing Bilateral Contracts § hydroelectric (includes RPS-eligible resources) § Puget
Slide 17: Long-Term Planning, Procurement and Development
Long-Term Planning, Procurement and Development PG&E requested authorization in its LTPP filing to procure up to 2,300 MW of new dispatchable and operationally flexible generation resources to come online starting in 2011 to ensure continued reliability in northern California. Date Action Phase Dec
Slide 18: PG&E Portfolio Among the Lowest GHG Emissions
PG&E Portfolio Among the Lowest GHG Emissions • Lowest GHG Carbon - Free and/or emission rate of any Renewable California utility1 PG&E’s 2005 Electric Delivery Mix3 • Among the lowest GHG emissions of 23% any major utility in the U.S.2 46% 54% 19% 1) Estimating Carbon Dioxide Emissions Factors for
Slide 19: Impact of GHG Regulation on Procurement
Impact of GHG Regulation on Procurement • 2006 legislation regarding GHG regulation: § SB 1368 - limitation on long-term contracts from high carbon emitting power plants § AB 32 - California Global Warming Solutions Act - “1990 levels by 2020” § PG&E supported both bills • PG&E currently has some sm
Slide 20: Key Elements of PG&E's Energy Procurement Plans
Key Elements of PG&E’s Energy Procurement Plans • PG&E will meet the current energy efficiency quantity targets adopted by the CPUC • PG&E will meet the 5% demand response goals adopted by the CPUC • PG&E will actively support and implement the California Solar Initiative; level of success depends o
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