About the Business

PG&E Overview


Number of employees who are working every day to deliver safe, reliable and affordable gas and electric service to 15 million Californians

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.

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

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 4.6 million residential and 0.6 million commercial, industrial and other customer accounts)
Natural Gas Distribution Customer Accounts
4.4 million (approximately 4.2 million residential and 0.2 million commercial and industrial customer accounts)
20,593 regular employees (as of December 31, 2012)

Approximately 12,500 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), Local 24/7
Approximately 159,100 circuit miles of electric transmission and distribution lines1 and 48,800 miles of natural gas transmission and distribution pipelines; 7,640 MW of generation, including the Diablo Canyon Nuclear Power Plant and the largest private-sector hydroelectric system in the country2
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) 2,456
12 kV 103,664
17 kV 4,555
21 kV 30,766
34 kV 4
44 kV 12

Length of transmission lines in circuit miles by voltage:

60 kV 3,823
70 kV 1,549
115 kV 5,988
230 kV 5,399
500 kV 1,328
  • 2 Net operating capacity on December 31, 2012: 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: 3,895 MW; Photovoltaic sites: 102 MW; Fuel cell sites: 3 MW.

Safety Highlights

Operating our business safely for the public and our workforce is PG&E’s most important responsibility. The steps we are taking are resulting in clear and measurable progress on a number of fronts. In the long run, our goal is that they will enable us to earn the distinction of being the safest utility in the nation and one our customers can rely on.

Among many highlights, we have:

  • Established a Chairman’s Safety Review Committee—led by the Chairman, CEO and President of PG&E Corporation—to regularly review peformance and ensure we are learning from incidents.
  • Designated a lead safety officer who chairs an Executive Safety Steering Committee, consisting of officers from across PG&E’s lines of business.
  • Established a new set of safety principles to better embed safety into our operational practices and culture.
  • Published a set of public safety metrics across all three of our operating lines of business.
  • Completed Safety Leadership Workshops to align employee leaders around PG&E’s safety strategy and to equip them with the tools they need to support their teams in building a safety-first climate.
  • Made safety performance the single largest driver for annual at-risk performance-based pay at 40 percent.
  • Hosted more than 400 training workshops to inform firefighters, police, public works officials and other authorities about the risks associated with electricity and natural gas they may face when responding to emergencies.
  • Provided a $2.5 million donation to the American Red Cross’ Ready Neighborhoods program, which is improving disaster readiness for underserved neighborhoods.
  • Established a formal contractor safety program.

Review the Safety section of the report for additional details on the progress we are making to support PG&E’s safety commitment.

2012 Target Progress 2012 Result 2013 Target
Public Safety
Nuclear Operations:1
Maintain first quartile performance in the industry
MT First quartile First quartile
Leak Repair Performance:
Eliminate all Grade 2 leaks found prior to January 1
MT 100% complete 1,000 or fewer2
Gas Emergency Response:3
75% within 30 minutes and 99% within
one hour (15% improvement over 2011)
MT 85.3% within 30 minutes

99.2% within 60 minutes
22 minutes
(12% improvement over 2012)
Transmission & Distribution Wires Down:4
(3% reduction over 2011)
SBT 10% increase 3% reduction over 2012
Electric Emergency Response:5 77%
(7% improvement over 2011)
MT 84.1% 88.3%
(5% improvement over 2012)
Workplace Safety
Lost Workday Case Rate:6 0.240
(12% reduction from 2011)
SBT 0.319 0.240
(25% reduction from 2012)
Preventable Motor Vehicle Incident Rate:7 1.95
(7% reduction from 2011)
MT 1.79 0.28
(10% reduction from 2012)
  • 1Refers to 12 performance indicators for nuclear power generation reported to the Institute of Nuclear Power Operations and compared to industry benchmarks.
  • 2 Refers to the number of grade 2 leaks open at year-end. Grade 2 leaks are non-hazardous leaks that require repair within 15 months.
  • 3 The 2012 target refers to the percentage of time a Gas Service Representative was on-site within 30 minutes and within one hour of receiving emergency service calls during the third and fourth quarter. The 2013 target refers to the average response time that a Gas Service Representative or a qualified first responder takes to respond to the site of an immediate response gas emergency order.
  • 4 Refers to the number of instances where an electric transmission or primary distribution conductor is broken and falls from its intended position to rest on the ground or a foreign object (e.g., trees, vehicles, fences or other structures).
  • 5 Refers to the percentage of time PG&E personnel respond (are on-site) within 60 minutes after receiving a 911 electric related call, with on-site defined as arriving at the premises where the 911 agency personnel are standing by.
  • 6 Refers to the number of Lost Workday cases incurred per 200,000 hours worked. A Lost Workday case is a current year OSHA Recordable incident that has resulted in at least one lost workday.
  • 7 The 2012 target refers to the number of chargeable motor vehicle incidents per one million miles driven; a chargeable incident is one where the employee-driver could have prevented an incident, but failed to take reasonable steps to do so. The 2013 target measures only those incidents considered to be serious, rather than all incidents that were otherwise preventable.

Financial Highlights1

PG&E Corporation
(unaudited, in millions, except share and per share amounts) 2011 2012
Operating Revenues $14,956 $15,040
Income Available for Common Shareholders
Earnings from operations2 1,438 1,367
Items impacting comparability3 (594) (551)
Reported Consolidated Income Available for Common Shareholders 844 816
Income Per Common Share, Diluted
Earnings from operations2 3.58 3.22
Items impacting comparability3 (1.48) (1.30)
Reported Consolidated Net Earnings Per Common Share, Diluted 2.10 1.92
Dividends Declared Per Common Share 1.82 1.82
Total Assets at December 31, $49,750 $52,449
Number of Common Shares Outstanding at December 31, 412,257,082 431,436,673
  • 1 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’’) and excludes items impacting comparability as described in Note (3) below.
  • 3 “Items impacting comparability” represent items that management does not consider part of normal, ongoing operations.
  • PG&E Corporation’s earnings from operations for 2012 and 2011 exclude net costs of $812 million and $739 million, pre-tax, that the Utility incurred in connection with natural gas matters. These amounts included pipeline-related expenses that will not be recoverable through rates to validate safe operating pressures, conduct strength testing, and perform other activities associated with safety improvements to the Utility’s natural gas pipeline system, as well as legal and regulatory costs. In addition, a charge was recorded in 2012 for disallowed capital expenditures related to the Utility’s pipeline safety enhancement plan that are forecasted to exceed the California Public Utilities Commission’s (“CPUC”) authorized levels or that were specifically disallowed. Also included are estimated penalties associated with pending CPUC investigations related to various aspects of the Utility’s natural gas operations and other potential enforcement matters, accruals for third-party claims arising from the natural gas pipeline accident that occurred in San Bruno, California on September 9, 2010, and a contribution to the City of San Bruno to support the community’s recovery efforts after the accident. These costs were partially offset by insurance recoveries. See the table below.
(pre-tax) 2011 2012
Pipeline-related expenses $483 $477
Disallowed capital expenditures $353
Accrued penalties $200 $17
Third-party claims $155 $80
Insurance recoveries ($99) ($185)
Contribution to City of San Bruno $70
Natural gas matters $739 $812

In addition, PG&E Corporation’s earnings from operations for 2012 and 2011 also exclude $106 million and $125 million, pre-tax, for environmental remediation costs associated with the Utility’s natural gas compressor site located near Hinkley, California.

General Utility Production Statistics

  2010 2011 2012
Total Electricity Generated (GWh net)1 32,168 35,353 31,671
Fossil-Fuel Plants (GWh net) 3,681 5,105 6,309
Humboldt Bay Power Plant (GWh net)2 384 N/A N/A
Humboldt Bay Generating Station (GWh net)2 130 469 417
Gateway Generating Station (GWh net) 3,099 2,648 3,172
Colusa Generating Station (GWh net)3 68 1,981 2,697
Fuel Cells4 N/A 7 23
Other plants (GWh net) 28,488 30,248 25,362
Diablo Canyon Power Plant (GWh net) 18,431 18,566 17,728
Hydro Facilities (GWh net)5 10,053 11,654 7,469
“Eligible” Hydro (GWh net)6 1,144 1,249 949
Solar Facilities 4.6 28 166
Electricity Purchased (GWh) 40,676 36,762 48,978
Other Electric Supplies (GWh)7 4,640 2,748 1,238
Bundled Retail Electricity Sales (GWh)8 77,485 74,864 76,205
Total Natural Gas Throughput (million cubic feet or MMcf)9 842,343 804,255 944,575
  • 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.
  • 2 The prior Humboldt Bay Power Plant consisted of two operating fossil fuel-fired plants and two mobile turbines. These facilities were retired at the end of September 2010. The new Humboldt Bay Generating Station became operational in September 2010.
  • 3 Colusa Generating Station became operational in December 2010.
  • 4 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.
  • 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 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.
  • 8 Bundled Retail Electricity Sales excludes sales to direct access and community choice customers, and sales to railroads and railways. Electricity Delivered, which totaled 86,113 GWh in 2012, includes these sales, but excludes sales for resale.
  • 9 Total Natural Gas Throughput excludes other interdepartmental natural gas sales but includes interdepartmental natural gas sales for the purpose of electric generation.