2
This
presentation contains management’s guidance for PG&E Corporation’s 2009,
2010 and 2011 earnings per share from operations, projections of
Pacific
Gas and
Electric Company’s (Utility) capital expenditures, rate base and rate base
growth, and projections of PG&E Corporation’s and the Utility’s
financing
needs.
These statements and projections, as well as the underlying assumptions, are
forward-looking statements that are based on current expectations
which
management believes are reasonable. These statements and assumptions are
necessarily subject to various risks and uncertainties, the realization
or
resolution
of which may be outside of management's control. Actual results may differ
materially. Factors that could cause actual results to differ
materially
include:
• the
Utility’s ability to manage capital expenditures and its operating and
maintenance expenses within authorized levels;
• the
outcome of pending and future regulatory proceedings and
whether the Utility is able to timely recover its costs through
rates;
• the
adequacy and price of electricity and natural gas supplies, and the ability of
the Utility to manage and respond to the volatility of the electricity and
natural gas markets,
including
the ability of the Utility and its counterparties to post or return
collateral;
• the
effect of weather, storms, earthquakes, fires, floods, disease, other natural
disasters, explosions, accidents, mechanical breakdowns, disruptions of
information technology
or
computer systems, acts of terrorism, and other events or hazards on the
Utility’s facilities and operations, its customers, and third parties on which
the Utility relies;
• the
potential impacts of climate change on the Utility’s electricity and natural gas
businesses;
• changes
in customer demand for electricity and natural gas resulting from unanticipated
population growth or decline, general economic and financial market
conditions,
changes
in technology, including the development of alternative energy sources, or other
reasons;
• operating
performance of the Diablo Canyon Power Plant (“Diablo Canyon”), the availability
of nuclear fuel, the occurrence of unplanned outages at Diablo Canyon or
the
temporary
or permanent cessation of operations at Diablo Canyon;
• whether
the Utility can maintain the cost savings it has recognized from operating
efficiencies it has achieved and identify and successfully implement additional
sustainable
cost-saving
measures;
• whether
the Utility incurs substantial expense to improve the safety and reliability of
its electric and natural gas systems;
• whether
the Utility achieves the California Public Utilities Commission’s (CPUC) energy
efficiency targets and recognizes any incentives the Utility may earn in a
timely manner;
• the
impact of changes in federal or state laws, or their interpretation, on energy
policy and the regulation of utilities and their holding companies;
• the
impact of changing wholesale electric or gas market rules, including new rules
of the California Independent System Operator (CAISO) to restructure the
California
wholesale
electricity market;
• how
the CPUC administers the conditions imposed on PG&E Corporation when it
became the Utility’s holding company;
• the
extent to which PG&E Corporation or the Utility incurs costs and liabilities
in connection with litigation that are not recoverable through rates, from
insurance, or from other
third
parties;
• the
ability of PG&E Corporation, the
Utility, and counterparties, to access capital markets and other sources of
credit in a timely manner on acceptable terms, especially given
the
recent deteriorating conditions in the economy and financial
markets;
• the
impact of environmental laws and regulations and the costs of compliance and
remediation;
• the
effect of municipalization, direct access, community choice aggregation, or
other forms of bypass;
• the
outcome of federal or state tax audits and the impact of changes in federal or
state tax laws, policies, or regulations; and
• other
factors and risks discussed in PG&E Corporation’s and the Utility’s 2008
Annual Report on Form 10-K and other reports filed with the Securities and
Exchange
Commission.
Cautionary
Language Regarding Forward-Looking
Statements
