2008 Corporate Responsibility Report
How we are creating a smarter foundation for a sustainable future
Company Overview
PG&E Corporation is an energy-based holding company whose core business is Pacific Gas and Electric Company. Pacific Gas and Electric Company, or the Utility, delivers safe, reliable and responsive gas and electric service to approximately 15 million people throughout northern and central California. PG&E had approximately $40.86 billion in assets as of December 31, 2008, and generated revenues of approximately $14.63 billion in 2008.
About the Company1
Headquarters Location
San Francisco, CA
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
5.1 million2
Natural Gas Distribution Customer Accounts
4.3 million2
2008 Revenue
$14.63 billion
2008 Assets
$40.86 billion
2008 Earnings per Share from Operations3
$2.95
Number of Common Shareholders
86,097
Number of Common Shares Outstanding
362,346,685
Employees
Approximately 21,670
Approximately 14,650 are covered by collective bargaining agreements with three labor unions:
- International Brotherhood of Electrical Workers (IBEW), Local 1245
- Engineers and Scientists of California/International Federation of Professional and Technical Engineers (ESC/IFPTE), Local 20
- Service Employees International Union (SEIU), Local 24/7
System
159,6864 circuit miles of electric transmission and distribution lines and 48,435 miles of natural gas transmission and distribution pipelines; approximately 6,8015 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
Examples of Major Customers
Bank of America, Chevron, Cisco Systems, FedEx, Fetzer Winery, Intel, Kaiser Permanente, Lockheed Martin, New United Motors Manufacturing, Safeway, Inc. and Target
1 All data as of December 31, 2008, unless otherwise noted.
2 Equivalent to approximately 4.5 million residential and 0.6 million commercial/industrial/other electric distribution customer accounts and approximately 4.0 million residential and 0.3 million commercial/industrial natural gas customer accounts.
3 “Earnings per Share from Operations” is not calculated in accordance with the accounting principles generally accepted in the United States of America, or GAAP. It should not be considered an alternative to net income calculated in accordance with GAAP. Earnings from operations reflects PG&E Corporation’s consolidated net income, but excludes “items impacting comparability,” i.e., items that 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. In the fourth quarter of 2008, PG&E Corporation realized net income of approximately $257 million ($0.68 per share) resulting from a settlement of federal tax audits for the years 2001 through 2004. This amount has been treated as an item impacting comparability and has been excluded from consolidated net earnings per common share of $3.63 for the year ended December 31, 2008, as reported in accordance with GAAP.
4 Length of distribution lines in circuit miles by voltage—4 kilovolts (kV): 2,620; 12 kV: 103,819; 17 kV: 4,486; 21 kV: 30,111. Length of transmission lines in circuit miles by voltage—60 kV: 3,886; 70 kV: 1,552; 115 kV: 6,012; 230 kV: 5,412; 500 kV: 1,328; Idle: 460.
5 Net operating capacity in January 2009: Gateway Generating Station: 530 MW; Humboldt Bay: 105 MW; mobile turbines: 30 MW; Diablo Canyon: 2,240 MW; hydroelectric facilities: 3,896 MW.
General Utility Production Statistics
2006
2007
2008
Total Electricity Generated (GWh net)1
32,842
26,723
25,481
Fossil Plants (GWh net)
624
483
520
Hunters Point (GWh net)
182
N/A7
N/A7
Humboldt Bay (GWh net)
442
483
520
Other Plants (GWh net)
32,218
26,240
24,961
Diablo Canyon (GWh net)
18,391
18,588
17,096
Hydro Facilities (GWh net)2
13,827
7,652
7,865
Eligible Hydro (GWh net)3
1,437
985
990
Electricity Purchased (GWh)
29,104
29,462
47,934
Other Electric Supplies (GWh)4
19,585
23,265
14,532
Electricity Delivered (GWh)5
84,310
86,179
88,127
Electricity Purchased by Our Customers (GWh)
76,692
79,451
81,935
Total Natural Gas Throughput (millon cubic feet or MMcf)6
836,441
875,334
838,612
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 company reports. Review a breakdown of PG&E’s electric power mix delivered to retail customers.
2 Hydroelectric generation can vary year to year due to variability in precipitation.
3 Electricity generated by hydroelectric facilities with a capacity under 30 MW and eligible under California’s Renewable Portfolio Standard.
4 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.
5 Electricity Delivered includes direct access, community choice aggregation, transmission-only sales, losses and unaccounted-for energy.
6 Excludes interdepartmental natural gas sales.
7 Hunters Point ceased operation in May 2006.