- Consolidated net income reported under GAAP was
$0.74 per share for PG&E Corporation for the
quarter ended June 30, 2007, compared with $0.65
per share in the same quarter of 2006. (All “per
share” amounts are presented on a diluted
basis)
- Guidance for 2007 earnings from operations is
reaffirmed in the $2.70-$2.80 per share range. Guidance
for 2008 earnings from operations is reaffirmed
at $2.90-$3.00 per share.
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(San Francisco) -- PG&E Corporation’s (NYSE:
PCG) consolidated net income reported in accordance
with generally accepted accounting principles (GAAP)
was $269 million, or $0.74 per share, in the second
quarter of 2007. In the same period last year, consolidated
net income was $232 million, or $0.65 per share.
"We are on track to achieve our 2007 expectations,"
said Peter A. Darbee, PG&E Corporation Chairman
and CEO. Darbee also noted, "We’ve entered
into several contracts with solar and wind providers
that will help us achieve our 20 percent renewable
portfolio standard requirement. And, with the launch
of our ClimateSmart program, our customers, who historically
are some of the most efficient users of electricity
and natural gas in the nation, now have the option
to reduce the carbon footprint associated with their
energy use. Additionally, we will continue to focus
on and invest heavily in infrastructure improvements
to provide our customers with safe, reliable service.”
QUARTER-OVER-QUARTER COMPARISON
Earnings from operations for the second quarter of
2007 were $0.10 per share above levels for the same
period in 2006. The quarter-over-quarter difference
primarily reflects earnings on a higher capital investment,
consistent with early 2007 regulatory approvals of
Pacific Gas and Electric Company’s 2007 General
Rate Case and the most recent Federal Energy Regulatory
Commission (FERC) transmission case.
EARNINGS GUIDANCE
PG&E Corporation reaffirmed its previous guidance
for earnings from operations in the range of $2.70-$2.80
per share for 2007 and $2.90-$3.00 per share for 2008.
Guidance assumes that the utility earns at least
its authorized return on equity while growing its
asset base and controlling its costs in line with
regulatory approvals, and that the ratemaking capital
structure is maintained at 52 percent equity.
PG&E Corporation bases guidance on “earnings
from operations” in order to provide a measure
that allows investors to compare the underlying financial
performance of the business from one period to another,
exclusive of items that management believes do not
reflect the normal course of operations. Earnings
from operations are not a substitute or alternative
for consolidated net income presented in accordance
with GAAP (see the accompanying financial tables for
a reconciliation of guidance of earnings from operations
to guidance of consolidated net income in accordance
with GAAP). There was no difference between earnings
from operations and consolidated net income as reported
in accordance with GAAP for the three month period
ended June 30, 2007. In 2006, consolidated net income
was $232 million, or $0.65 per share on a GAAP basis,
versus $228 million, or $0.64 per share on an earnings
from operations basis.
Supplemental Financial Information:
Conference Call with the Financial Community
to Discuss Second Quarter Results:
This press release contains forward-looking
statements regarding management’s guidance for
PG&E Corporation’s 2007 and 2008 earnings
per share from operations. These statements are based
on current expectations and various assumptions which
management believes are reasonable. These statements
and assumptions are necessarily subject to various
risks and uncertainties, the realization or resolution
of which are outside of management's control. Actual
results may differ materially. Factors that could
cause actual results to differ materially include: