Company Overview
Photo: Linda Cicero
PG&E Corporation is an energy-based holding company whose core business is Pacific Gas and Electric Company. Pacific Gas and Electric Company, or the Utility, delivers safe, reliable and responsive gas and electric service to approximately 15 million people throughout northern and central California. PG&E Corporation had approximately $46 billion in assets as of December 31, 2010, and generated revenues of approximately $13.8 billion in 2010.
About the Company
Headquarters Location
San Francisco, California
Service Area
70,000 square miles in northern and central California
Service Area Population
15 million people (or about 1 of every 20 Americans)
Electric Distribution Customer Accounts
5.2 million (approximately 4.5 million residential and 0.6 million commercial, industrial and other customer accounts)
Natural Gas Distribution Customer Accounts
4.3 million (approximately 4.1 million residential and 0.2 million commercial and industrial customer accounts)
Employees
19,424 (as of December 31, 2010)
Approximately 12,240 employees are covered by collective bargaining agreements with three labor unions:
- International Brotherhood of Electrical Workers (IBEW), Local 1245
- Engineers and Scientists of California/International Federation of Professional and Technical Engineers (ESC/IFPTE), Local 20
- Service Employees International Union (SEIU), United Service Workers West
System
Approximately 160,0001 circuit miles of electric transmission and distribution lines and 49,000 miles of natural gas transmission and distribution pipelines; 7,3422 MW of generation, including the Diablo Canyon nuclear power plant and one of the largest hydroelectric systems in the country
Examples of Major Customer Segments
Residential, Small Business, Retail, Agriculture, Education, Heavy Industry and Manufacturing, Government, Medical, Distillers, Hospitality, High-Technology, Food Service, Biotechnology, Large and Small Commercial Enterprises
1 Length of distribution lines in circuit miles by voltage:
4 kilovolts (kV): 2,505
12 kV: 104,047
17 kV: 4,538
21 kV: 30,242
34 kV: 2
44 kV: 12
Length of transmission lines in circuit miles by voltage:
60 kV: 3,855
70 kV: 1,543
115 kV: 5,963
230 kV: 5,415
500 kV: 1,328
Idle: 479
2 Net operating capacity on December 31, 2010: Gateway Generating Station: 530 MW of base capacity and 50 MW of enhanced capability; Humboldt Bay Generating Station: 146 MW; Colusa Generating Station: 530 MW of base capacity and 127 MW of enhanced capability; Diablo Canyon Power Plant: 2,240 MW; hydroelectric facilities: 3,896 MW.
Financial Highlights1
PG&E Corporation
| (unaudited, in millions, except share and per share amounts) | 2010 | 2009 |
|---|---|---|
| Operating Revenues | $13,841 | $13,399 |
| Income Available for Common Shareholders | ||
| Earnings from operations2 | 1,331 | 1,223 |
| Items impacting comparability3 | (232) | (3) |
| Reported Consolidated Income Available for Common Shareholders | 1,099 | 1,220 |
| Income Per Common Share, Diluted | ||
| Earnings from operations2 | 3.42 | 3.21 |
| Items impacting comparability3 | (0.60) | (0.01) |
| Reported Consolidated Net Earnings Per Common Share, Diluted | 2.82 | 3.20 |
| Dividends Declared Per Common Share | 1.82 | 1.68 |
| Total Assets at December 31, | $46,025 | $42,945 |
| Number of Common Shares Outstanding at December 31, | 395,227,205 | 371,272,457 |
1 This is a combined annual report of PG&E Corporation and Pacific Gas and Electric Company (“Utility”). PG&E Corporation’s Consolidated Financial Statements include the accounts of PG&E Corporation, the Utility, and other wholly owned and controlled subsidiaries.
2 “Earnings from operations” is not calculated in accordance with the accounting principles generally accepted in the United States of America (“GAAP”). It should not be considered an alternative to income available for common shareholders calculated in accordance with GAAP. Earnings from operations reflects PG&E Corporation’s consolidated income available for common shareholders, but excludes items that management believes do not reflect the normal course of operations, in order to provide a measure that allows investors to compare the core underlying financial performance of the business from one period to another.
3 “Items impacting comparability” represent items that management believes do not reflect the normal course of operations. PG&E Corporation’s earnings from operations for 2010 exclude $168 million of costs, after tax, ($ 0.43) per common share, relating to the September 9, 2010 natural gas transmission pipeline accident in San Bruno, California. This amount primarily included a provision for estimated third-party claims for personal injury and property damage claims, and other damage claims, as well as costs incurred to provide immediate support to the San Bruno community, re-inspect the Utility’s natural gas transmission lines, and perform other activities following the accident. Additionally, during 2010 the Utility spent $45 million, after-tax, ($0.12) per common share, to support a state-wide ballot initiative and recorded a charge of $19 million, ($0.05) per common share, triggered by the elimination of the tax deductibility of Medicare Part D federal subsidies. PG&E Corporation’s earnings from operations for 2009 excludes $66 million of income, after tax, $0.18 per common share, for the interest and state tax benefit associated with a federal tax refund for 1998 and 1999; $28 million of income, after tax, $0.07 per common share, representing the recovery of costs previously incurred by the Utility in connection with its hydroelectric generation facilities; $59 million of costs, after tax, ($0.16) per common share, incurred by the Utility to perform accelerated system-wide natural gas integrity surveys and associated remedial work; and $38 million of severance costs, after-tax, ($0.10) per common share, related to the elimination of approximately 2% of the Utility’s workforce.
General Utility Production Statistics
| 2008 | 2009 | 2010 | |
|---|---|---|---|
| Total Electricity Generated (GWh net)1 | 25,481 | 28,114 | 32,177 |
| Fossil-Fuel Plants (GWh net) | 520 | 3,042 | 3,681 |
| Humboldt Bay Power Plant (GWh net)2 | 520 | 552 | 384 |
| Humboldt Bay Generating Station (GWh net)2 | N/A | N/A | 130 |
| Gateway Generating Station (GWh net)3 | N/A | 2,490 | 3,099 |
| Colusa Generating Station (GWh net)4 | N/A | N/A | 68 |
| Other plants (GWh net) | 24,961 | 25,072 | 28,497 |
| Diablo Canyon Power Plant (GWh net) | 17,096 | 16,265 | 18,431 |
| Hydro Facilities (GWh net)5 | 7,865 | 8,806 | 10,062 |
| “Eligible” Hydro (GWh net)6 | 990 | 1,102 | 1,153 |
| Solar Facilities (GWh net) | 0.4 | 0.5 | 4.6 |
| Electricity Purchased (GWh) | 41,922 | 37,165 | 40,685 |
| Other Electric Supplies (GWh)7 | 14,532 | 14,346 | 4,623 |
| Electricity Delivered (GWh)8 | 88,127 | 85,629 | 83,906 |
| Electricity Purchased by Our Customers (GWh)9 | 81,524 | 79,624 | 77,485 |
| Total Natural Gas Throughput (million cubic feet or MMcf)10 | 838,612 | 844,675 | 842,343 |
1 One GWh, or gigawatt-hour, is one million kilowatt-hours, enough to power one million homes for one hour. PG&E is reporting net energy statistics for consistency with other published company reports. Review a breakdown of PG&E’s electric power mix delivered to retail customers.
2 The Humboldt Bay Power Plant facilities, two operating fossil fuel-fired plants and two mobile turbines, were retired at the end of September 2010. The new Humboldt Bay Generating Station became operational in September 2010.
3 Gateway Generating Station became operational in January 2009.
4 Colusa Generating Station became operational in December 2010.
5 Hydroelectric generation can vary year to year due to variability in precipitation.
6 Electricity generated by hydroelectric facilities with a capacity under 30 MW is eligible as renewable energy under California’s Renewable Portfolio Standard law.
7 Represents energy purchased by the California Department of Water Resources (DWR) from various energy suppliers for the benefit of the Utility’s customers. The DWR remains legally and financially responsible for its power purchase contracts. The Utility acts as a billing and collection agent for the DWR to enable the DWR to pay for its energy purchases.
8 Electricity Delivered includes direct access and transmission-only sales.
9 Excludes interdepartmental electricity sales and electricity delivered to BART and direct access customers.
10 Excludes interdepartmental natural gas sales.
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