The Utility’s Role in
Implementing Clean
Technology
Fong Wan
Senior Vice President, Energy Procurement
Pacific Gas and Electric Company
March 17, 2009
This presentation is not complete without the accompanying oral statements made on March 17, 2009. A replay is available at
www.pgecorp.com. For more information about PG&E Corporation and its subsidiary, Pacific Gas and Electric Company, and a
discussion of risks and uncertainties facing the companies, see the reports filed or furnished by the companies to the Securities
and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2008. These reports are
available at www.pgecorp.com and www.pge.com.

1
Agenda
• California’s Clean Energy History
• The Importance of Demand-Side Emerging Technologies
• Renewable Energy Requirements
• Benefits and Challenges of Utility-scale vs. Distributed Solar
• PG&E's Portfolio Approach
• Comparison of PV vs. Concentrating Solar Thermal
• PG&E’s Proposed New Photovoltaic Program
• Integration of Intermittent Renewables
• Enabling Technologies
ü Energy Storage
ü SmartGrid

2
What Makes California Different?
• Long-standing State policies lower carbon footprint.
• 30+ years of energy efficiency programs facilitated by
“decoupling” of rates.
• California Energy Action Plan preferred loading order:
• Customer Energy Efficiency
• Demand Response/Dynamic Pricing
• Renewables
• Distributed Generation
• Clean gas-fired plants

3
Over the past 30 years, California per capita electricity use has remained
relatively flat compared to the 50% increase in U.S. per capita electricity use.
Source: California Energy Commission
History of Energy Efficiency Key to California Success
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1960
1965
1970
1975
1980
1985
1990
1995
2000
US
CA
Western Europe
2005

4
Savings from Efficiency Programs and Standards
0
2,000
4,000
6,000
8,000
14,000
Appliance Standards
Building Standards
Utility Efficiency
Programs at a cost of
~1% of electric bill
Utility Programs and State Standards
Utility tests
technologies that
deliver above-code
savings
California Energy
Commission raises
building and
appliance codes
and standards
Utility Rebate
Programs provide
incentives for
tested technologies
leading to mass-
market adoption
Source: California Energy Commission

5
Demand Response: SmartAC Example

6
California Has the Most Aggressive
Renewable Portfolio Standard
State Goal
☼ PA: 18%** by 2020
☼ NJ: 22.5% by 2021
CT: 23% by 2020
WI: requirement varies by
utility; 10% by 2015 goal
IA: 105 MW
MN: 25% by 2025
(Xcel: 30% by 2020)
TX: 5,880 MW by 2015
☼ AZ: 15% by 2025
CA: 20% by 2010
☼ *NV: 20% by 2015
ME: 30% by 2000
10% by 2017 - new RE
State RPS
HI: 20% by 2020
RI: 16% by 2020
☼ CO: 20% by 2020 (IOUs)
*10% by 2020 (co-ops & large munis)
☼ DC: 20% by 2020
DSIRE: www.dsireusa.org March 2009
☼ NY: 24% by 2013
MT: 15% by 2015
IL: 25% by 2025
VT: (1) RE meets any increase
in retail sales by 2012;
(2) 20% RE & CHP by 2017
☼ MD: 20% by 2022
☼ NH: 23.8% in 2025
OR: 25% by 2025 (large utilities)
5% - 10% by 2025 (smaller utilities)
*VA: 12% by 2022
☼ *DE: 20% by 2019
☼ NM: 20% by 2020 (IOUs)
10% by 2020 (co-ops)
☼ NC: 12.5% by 2021 (IOUs)
10% by 2018 (co-ops & munis)
ND: 10% by 2015
SD: 10% by 2015
*UT: 20% by 2025
☼ OH: 25%** by 2025
*MI: 10% + 1,100 MW
by 2015
☼ MA: 15% by 2020
+ 1% annual increase
(Class I Renewables)
☼ MO: 15% by 2021
*WA: 15% by 2020
28 states have
an RPS;
5 states have an
RE goal
proposed:
33% by 2020

7
0
500
1000
1500
2000
2500
3000
3500
4000
2002
2003
2004
2005
2006
2007
2008
Annual
Cumulative
3
3
2
4
13
3
6
8
12
25
# of Contracts
30
40
5
10
Aggressive Contracting for
Diverse Renewable Resources
MW
Geothermal
493
Wind
778
Bioenergy
129
Solar Thermal
1,230
3,515
Solar PV
777
%
MW
14
22
4
35
22
%
MWh
25
18
7
30
14
Solar/Biomass
107
35
30
Small Hydro
1
<1
<1

8
Advancing Renewable Energy Technologies
Biomass
Wind
Geothermal
BioGas
Small Hydro
Wave Power
Concentrating
Solar Thermal
Traditional
Emerging
Concentrating
Photovoltaic

9
Distributed vs. Utility Scale Solar
Pros:
• Speed to market
• Not transmission dependent
• Not dependent on water
Cons:
• Higher deployment costs
• Slower scale penetration
Utility Scale
Pros:
• Economies of scale
• Efficiencies
• Compatible with emerging
storage technologies
Cons:
• Transmission dependent
• Land & water requirements
• Not for all locations
Distributed
PG&E Takes a Diversified Portfolio Approach

Annual PG&E Solar Interconnections
28,500 PG&E customer solar installations ( >290 MW)

11
A Portfolio of Diverse Central-Station and
Dispersed Utility-Scale Solar Technologies
500-MW Power Tower
550-MW Cd Te PV
210-MW c-Si Tracking PV
250-MW Dispersed PV
(1-20 MW ea) (PPA)
Illustrative
553-MW Parabolic Trough
250-MW Dispersed PV
(1-20 MW ea) (owned)
Illustrative

12
Why Utility Ownership?
• Credit-related cancellations or delays of independent
contractors’ projects
• Balance sheet strength produces lower cost of money
• Utilities can utilize the PTC and ITC
• Reduces development risk

13
Why the Trend to Photovoltaics?
• Proven, commercially ready technology
• Costs are decreasing
• Many Northern California locations suitable for PV
deployment
• Modular / rapid deployment capabilities
• Project size facilitates expedited interconnection
• Project size avoids transmission upgrades
• Dispersed implementation reduces environmental
impacts
• More peak coincident than other renewables
• Utilities now eligible for ITC

14
Levelized Cost of Energy 1 Has Decreased
Solar Energy Cost Trends
Source: NREL Energy Analysis Office (www.nrel.gov/analysis/docs/cost_curves_2005.ppt)
1 These graphs are reflections of historical cost trends NOT precise annual historical data.
?
?
125 -
100 -
75 -
50 -
25 -
Photovoltaics

15
PG&E’s Proposed New “Hybrid” PV Program
• Requested California Public Utilities Commission
(CPUC) approval in February 2009
• 5-Year Program targeted to begin in January 2010
• 500 MW(AC): 1 to 20 MW installations composed of
• 250 MW (305 MW(DC)) utility-owned generation (UOG) at an
estimated capital cost of $1.45 billion (~$4.25 per Watt(DC))
• 250 MW of PPAs
• PG&E-owned projects projected to be primarily
ground-mounted
• Targeting utility-owned land with grid connection capability

16
PG&E’s Proposed New “Hybrid” PV Program
• PG&E would seek to finance projects as any rate-
base investment
• The terms and pricing of the PPAs would be subject
to pre-approval by the CPUC
• Proposed 2 MW pilot UOG PV project targeted to
start in 2009, to speed deployment of the larger PV
Program if approved by the CPUC

17
Integrating Intermittent Renewables
• Solar and wind are both intermittent resources
• Very few renewable resources are dispatchable
• Today, integrating renewable resources requires
more fast-response natural gas power plants
• New technologies will provide other options in the
future

18
Wind Generation Varies Widely
The average is smooth, but day-to-day variability is great
0
100
200
300
400
500
600
700
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Hour
MW
Average
Each Day is a different color.
-Day 29
-Day 5
-Day 26
-Day 9
Source: CAISO
Source: CAISO

19
CCGT Power Plant
Renewable Resource Integration
Today:
• Clean, flexible, natural gas-fueled resources are currently necessary to
back up intermittent resources
• Significantly improved air emissions profile compared to retiring plants,
but still fossil-fueled

20
Renewable Resource Integration
Local Storage
Rooftop PV
Centralized Storage
Tomorrow:
• Utility scale distributed storage to back up intermittent resources and
timeshift resource availability to be coincident with demand
• Distributed generation and distributed storage to apply similar principles
at the customer premise
• Demand response programs used to integrate intermittent renewables

21
California’s State Flower
• The commute to the
average office building in
CA uses 57% more
energy than the building
uses.
• Transportation will be the
next big use of clean
electricity.
• The SmartGrid will
enable the electrification
of transportation without
requiring additional fossil
-fueled generation.
Source: California Energy Commission

22
Electric Vehicles and the Home Area Network
Home Area Network
AMI/SmartGrid
Time-shifting
Electricity

23
Enabling Technology - SmartGrid