Company Overview

PG&E Corporation is an energy-based holding company whose core business is Pacific Gas and Electric Company. Based in San Francisco, Pacific Gas and Electric Company, or the Utility, delivers some of the nation’s cleanest energy to 15 million people in Northern and Central California. PG&E Corporation had approximately $49.75 billion in assets as of December 31, 2011, and generated revenues of approximately $15 billion in 2011.
Throughout this report, when we refer to “PG&E” we are discussing all of PG&E Corporation and its subsidiaries, including Pacific Gas and Electric Company.
About PG&E
Employee Perspectives
David Schappert, a troubleman, talks about being PG&E’s local presence in his neighborhood.
- 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 4.54 million residential and 0.65 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
-
19,274 regular employees (as of December 31, 2011)
Approximately 11,950 employees are covered by collective bargaining agreements with three labor unions:
- International Brotherhood of Electrical Workers (IBEW), Local 1245, AFL-CIO
- Engineers and Scientists of California/International Federation of Professional and Technical Engineers (ESC/IFPTE), Local 20, AFL-CIO and CLC
- Service Employees International Union (SEIU), United Service Workers West
- System
- Approximately 160,0001 circuit miles of electric transmission and distribution lines and 48,740 miles of natural gas transmission and distribution pipelines; 7,4142 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
4 kilovolts (kV) | 2,499 |
12 kV | 103,693 |
17 kV | 4,551 |
21 kV | 30,656 |
34 kV | 4 |
44 kV | 12 |
60 kV | 3,855 |
70 kV | 1,549 |
115 kV | 6,040 |
230 kV | 5,414 |
500 kV | 1,328 |
Idle | 432 |
2 Net operating capacity on December 31, 2011: Gateway Generating Station: 530 MW of base capacity and 50 MW of enhanced capability; Humboldt Bay Generating Station: 163 MW; Colusa Generating Station: 530 MW of base capacity and 127 MW of enhanced capability; Diablo Canyon: 2,240 MW; Hydroelectric facilities: 3,896 MW; Photovoltaic sites: 52 MW; Fuel cell sites: 3 MW.
Financial Highlights1
(unaudited, in millions, except share and per share amounts) | 2011 | 2010 |
---|---|---|
Operating Revenues | $ 14,956 | $ 13,841 |
Income Available for Common Shareholders | ||
Earnings from operations2 | 1,438 | 1,331 |
Items impacting comparability3 | (594) | (232) |
Reported Consolidated Income Available for Common Shareholders | 844 | 1,099 |
Income Per Common Share, Diluted | ||
Earnings from operations2 | 3.58 | 3.42 |
Items impacting comparability3 | (1.48) | (0.60) |
Reported Consolidated Net Earnings Per Common Share, Diluted | 2.10 | 2.82 |
Dividends Declared Per Common Share | 1.82 | 1.82 |
Total Assets at December 31, | $ 49,750 | $ 46,025 |
Number of Common Shares Outstanding at December 31, | 412,257,082 | 395,227,205 |
1 This information is derived from PG&E Corporation’s Consolidated Financial Statements for the year ended December 31, 2011 and includes the accounts of PG&E Corporation, Pacific Gas and Electric Company, and their subsidiaries. PG&E Corporation and Pacific Gas and Electric Company’s separate Consolidated Financial Statements appear in their combined Annual Report to Shareholders for the year ended December 31, 2011.
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 2011 exclude $520 million of costs, after-tax, ($1.30) per common share, in connection with natural gas matters. These amounts included $287 million of pipeline-related costs, after-tax, to review records, validate operating pressures, conduct hydrostatic pressure tests, inspect pipelines, and perform other activities associated with safety improvements to the Utility’s natural gas pipeline system to comply with orders issued by the California Public Utilities Commission (“CPUC”) and recommendations made by the National Safety Transportation Board following the rupture of one of the Utility’s natural gas transmission pipelines in San Bruno, California on September 9, 2010 (the “San Bruno accident”). These amounts also included a provision of $200 million for the minimum amount of reasonably estimable penalties deemed probable of being imposed on the Utility in connection with the CPUC’s pending investigations and the Utility’s self-reported violations regarding natural gas operating practices. These costs also included an increase of $92 million, after-tax, in the provision for estimated third-party claims related to the San Bruno accident, reflecting new information regarding the nature of claims filed against the Utility, experience resolving cases, and developments in the litigation and regulatory proceedings. Costs incurred for 2011 were partially offset by insurance recoveries of $59 million, after-tax. In addition, PG&E Corporation’s earnings from operations for 2011 also exclude $74 million, after-tax, ($0.18) per common share, for environmental remediation and other estimated liabilities associated with the Utility’s natural gas compressor site located near Hinkley, California. PG&E Corporation’s earnings from operations for 2010 exclude $168 million of costs, after-tax, ($0.43) per common share, relating to the San Bruno accident, which primarily includes a provision for third-party claims. Additionally, during 2010, the Utility spent $45 million, ($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.
General Utility Production Statistics
2009 | 2010 | 2011 | |
---|---|---|---|
Total Electricity Generated (GWh net)1 | 28,114 | 32,168 | 35,353 |
Fossil-Fuel Plants (GWh net) | 3,042 | 3,681 | 5,105 |
Humboldt Bay Power Plant (GWh net)2 | 552 | 384 | N/A |
Humboldt Bay Generating Station (GWh net)2 | N/A | 130 | 469 |
Gateway Generating Station (GWh net)3 | 2,490 | 3,099 | 2,648 |
Colusa Generating Station (GWh net)4 | N/A | 68 | 1,981 |
Fuel Cells5 | N/A | N/A | 7 |
Other plants (GWh net) | 25,072 | 28,488 | 30,248 |
Diablo Canyon Power Plant (GWh net) | 16,265 | 18,431 | 18,566 |
Hydro Facilities (GWh net)6 | 8,806 | 10,053 | 11,654 |
“Eligible” Hydro (GWh net)7 | 1,102 | 1,144 | 1,249 |
Solar Facilities | 0.5 | 4.6 | 28 |
Electricity Purchased (GWh) | 37,165 | 40,676 | 36,762 |
Other Electric Supplies (GWh)8 | 14,346 | 4,640 | 2,748 |
Bundled Retail Electricity Sales (GWh)9 | 79,624 | 77,485 | 74,864 |
Total Natural Gas Throughput (million cubic feet or MMcf)10 | 844,675 | 842,343 | 804,255 |
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 reports. Data undergoing final verification.
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 The Utility owns and operates three fuel cell sites in the Bay Area that became operational in September 2011 and have a combined capacity of 3 MW.
6 Hydroelectric generation can vary year to year due to variability in precipitation.
7 Electricity generated by hydroelectric facilities with a capacity under 30 MW is eligible as renewable energy under California’s Renewable Portfolio Standard law.
8 Other Electric Supplies 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.
9 Bundled Retail Electricity Sales excludes sales to direct access and community choice customers, and sales to railroads and railways. Electricity Delivered, which totaled 83,684 GWh in 2011, includes these sales, but excludes sales for resale.
10 Total Natural Gas Throughput excludes other interdepartmental natural gas sales but includes interdepartmental natural gas sales for the purpose of electric generation.