Company Overview

Photo: Lewis Stewart

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)
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
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
1 Length of distribution lines in circuit miles by voltage:
4 kilovolts (kV) 2,499
12 kV 103,693
17 kV 4,551
21 kV 30,656
34 kV 4
44 kV 12
Length of transmission lines in circuit miles by voltage:
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

PG&E Corporation
(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.