-
PG&E Corporation posts
1999 operating earnings of $2.24 per share, or a 15 percent
increase over 1998.
-
PG&E Corporation posts
record operating revenue of $20.8 billion, an increase of 6
percent over 1998 operating revenue.
-
PG&E Corporation operating
earnings rise to $826 million, an 11 percent increase over 1998
results.
-
PG&E National Energy
Group records operating earnings of $0.17 per share, an increase
of 42 percent over 1998.
-
Utility unit Pacific
Gas and Electric Company posts operating earnings of $2.07,
an increase of 14 percent over 1998.
San Francisco, CA
– PG&E Corporation (NYSE: PCG) today reported that 1999 operating
earnings per share increased by 15 percent to $2.24 per share from
1998 levels of $1.94 per share. The Corporation attributed these
results to strong performance in both its National Energy Group,
which contributed $0.17 per share, an increase of 42 percent over
1998, and its Pacific Gas and Electric Company utility unit, which
contributed $2.07 per share, an increase of 14 percent over 1998.
Fourth quarter 1999 operating earnings per share were $0.81, a 59
percent increase over 1998 fourth quarter earnings per share results
of $0.51.
The Corporation reported
overall earnings for 1999 of ($0.20) per share, or a loss of $71
million due to the pending sale of its Texas-based natural gas business
and its retail energy services unit. (See footnote for one-time
gains and charges recorded during the fourth quarter of 1999.)
PG&E Corp.’s National Energy
Group reported record revenues of $11.592 billion. This represents
an increase of nine percent over 1998 revenues of $10.653 billion.
"1999 marked a year both
of growth and positioning for the future for our National Energy
Group. It achieved 42 percent growth in operating earnings, continued
to build its strong national portfolio of generating projects, and
took action to eliminate future earnings drag from under-performing
businesses," said Robert D. Glynn, Jr., Chairman, CEO, and President
of PG&E Corporation. "This strong performance makes clear the future
growth potential of this unit.
"The transaction to sell
our Texas natural gas business is immediately accretive to earnings.
It enables our management team to focus increased financial and
human resources on further expanding our competitive generation
business and on maximizing the value from our energy commodity trading
and natural gas units."
The Corporation noted that
other factors driving the unit’s performance included ongoing competitive
generation portfolio management activities and continued superior
operational and financial performance of its Northwest natural gas
transmission assets.
The Corporation’s utility
unit, Pacific Gas and Electric Company, posted 1999 operating revenue
of $9.228 billion, compared to 1998 operating revenue of $8.924
billion, a 3.4 percent increase. Utility earnings in the fourth
quarter reflect the full revenues from the unit’s 1999 General Rate
Case, approved on February 17, 2000.
"While the decision in Pacific
Gas and Electric Company’s General Rate Case resolves a significant
uncertainty regarding its future revenues," said Glynn, "the unit
continued to earn below its authorized rate of return on its distribution
and transmission business in 1999. But its strong focus on operational
excellence, highlighted by a record seventh consecutive Institute
of Nuclear Power Operations Number 1 rating for the Diablo Canyon
Nuclear Plant, and continued focus on cost management, give it the
ability to earn its authorized return on equity going forward."
Customers of PG&E Corporation’s
utility unit also saw improved levels of service with an average
12 percent reduction in power outages during 1999. And the unit’s
service received ratings of "good," "very good," or "excellent"
from 91 percent of customers who responded when asked to rate their
satisfaction with the level and quality of service provided by Pacific
Gas and Electric Company.
"We are very pleased with
our operating performance for 1999," said Glynn. "We look forward
to the year ahead as we continue to deliver strong operating performance
and build shareholder value in 2000 and beyond."
PG&E Corporation, with revenues
of more than $20 billion and operations in 27 states, markets energy
services and products throughout North America through its National
Energy Group. PG&E Corporation's businesses also include Pacific
Gas and Electric Company, the Northern and Central California utility
that deliver natural gas and electricity to one in every 20 Americans.
Footnote On One-Time Gains
And Charges
The Corporation’s 1999 annual
earnings include net charges of ($2.44).
One-time gains and charges
for the year include: a write-down of ($2.42) related to the sale
of the Corporation’s Texas natural gas liquids and natural gas pipeline
business; a revised assessment of legal contingencies related to
its Texas natural gas operations reduced the recorded liability
for these matters and resulted in a one-time gain of $0.10; charges
of ($0.16) per share related to the sale of its retail energy services
unit, PG&E Energy Services; a one-time gain of $0.03 associated
with a change in accounting method; and a $0.01 net gain relating
to other items.
PG&E
CORPORATION
CONDENSED STATEMENT OF CONSOLIDATED INCOME
(unaudited)
|
|
Three
months ended December 31, |
|
Twelve
months ended December 31, |
|
|
|
|
(in millions, except
per share amounts) |
1999 |
|
1998 |
|
1999 |
|
1998 |
|
|
|
|
|
|
|
|
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
Pacific
Gas and Electric Company |
$ |
2,323 |
|
$ |
2,218 |
|
$ |
9,228 |
|
$ |
8,924 |
National
Energy Group |
|
|
|
|
|
|
|
|
|
|
|
PG&E
Generating |
|
304 |
|
|
295 |
|
|
1,122 |
|
|
649 |
PG&E
Gas Transmission |
|
|
|
|
|
|
|
|
|
|
|
–
Texas |
|
178 |
|
|
451 |
|
|
1,148 |
|
|
1,941 |
–
Northwest |
|
58 |
|
|
60 |
|
|
224 |
|
|
237 |
PG&E
Energy Trading |
|
2,376 |
|
|
2,516 |
|
|
10,521 |
|
|
8,509 |
Eliminations
and Other |
|
(444) |
|
|
(176) |
|
|
(1,423) |
|
|
(683) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating revenues |
|
4,795
|
|
|
5,364
|
|
|
20,820 |
|
|
19,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
Cost of energy for
Pacific Gas and Electric |
|
|
|
|
|
|
|
|
|
|
|
Company |
|
966 |
|
|
960 |
|
|
3,149 |
|
|
2,942 |
Cost of energy–National
Energy Group |
|
2,172 |
|
|
2,911 |
|
|
10,587 |
|
|
9,852 |
Operating expenses,
including depreciation |
|
2,236 |
|
|
1,008 |
|
|
6,206 |
|
|
4,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses |
|
5,374 |
|
|
4,879 |
|
|
19,942 |
|
|
17,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
(579) |
|
|
485 |
|
|
878 |
|
|
2,098 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other |
|
(115) |
|
|
(157) |
|
|
(617) |
|
|
(716) |
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
(694) |
|
|
328 |
|
|
261 |
|
|
1,382 |
|
|
|
|
|
|
|
|
Income taxes |
|
(147) |
|
|
120 |
|
|
248 |
|
|
611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before discontinued operations and |
|
|
|
|
|
|
|
|
|
|
|
cumulative
effect of a change in accounting |
|
|
|
|
|
|
|
|
|
|
|
principle |
|
(547) |
|
|
208 |
|
|
13 |
|
|
771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations |
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations of PG&E Energy |
|
|
|
|
|
|
|
|
|
|
|
Services
(net of applicable income taxes |
|
|
|
|
|
|
|
|
|
|
|
of
$9 million, $14 million, $35 million, and |
|
|
|
|
|
|
|
|
|
|
|
$41
million, respectively) |
|
(6) |
|
|
(12) |
|
|
(40) |
|
|
(52) |
Loss
on disposal of PG&E Energy Services |
|
|
|
|
|
|
|
|
|
|
|
(net
of applicable income taxes of |
|
|
|
|
|
|
|
|
|
|
|
$36
million) |
|
(58) |
|
|
– |
|
|
(58) |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) before cumulative effect of a |
|
|
|
|
|
|
|
|
|
|
|
change
in accounting principle |
|
(611) |
|
|
196 |
|
|
(85) |
|
|
719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of a change in an accounting |
|
|
|
|
|
|
|
|
|
|
|
principle
(net of applicable income taxes of |
|
|
|
|
|
|
|
|
|
|
|
$8
million) |
|
– |
|
|
– |
|
|
12 |
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
$ |
(611) |
|
$ |
196 |
|
$ |
(73) |
|
$ |
719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares Outstanding |
|
366 |
|
|
383 |
|
|
368 |
|
|
382 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Common Share, Basic and Diluted |
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations |
$ |
(1.49) |
|
$ |
0.54 |
|
$ |
0.04 |
|
$ |
2.02 |
Discontinued
operations |
|
(0.18) |
|
|
(0.03) |
|
|
(0.27) |
|
|
(0.14) |
Cumulative
effect of a change in an |
|
|
|
|
|
|
|
|
|
|
|
accounting
principle |
|
– |
|
|
– |
|
|
0.03 |
|
|
– |
Net
income (loss) |
$ |
(1.67) |
|
$ |
0.51 |
|
$ |
(0.20) |
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
Declared Per Common Share |
$ |
0.30 |
|
$ |
0.30 |
|
$ |
1.20 |
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
from continuing operations for PG&E Corporation's lines of
business are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31, |
|
Twelve
months ended December 31, |
|
|
|
|
|
1999 |
|
1998 |
|
1999 |
|
1998 |
|
|
|
|
|
|
|
|
Utility |
|
|
|
|
|
|
|
|
|
|
|
Pacific
Gas and Electric Company |
$ |
0.72 |
|
$ |
0.45 |
|
$ |
2.07 |
|
$ |
1.82 |
|
|
|
|
|
|
|
|
|
|
|
|
National Energy Group |
|
|
|
|
|
|
|
|
|
|
|
PG&E
Generating |
|
0.06 |
|
|
0.09 |
|
|
0.26 |
|
|
0.28 |
PG&E
Gas Transmission |
|
|
|
|
|
|
|
|
|
|
|
–
Texas |
|
(2.34) |
|
|
(0.05) |
|
|
(2.43) |
|
|
(0.18) |
–
Northwest |
|
0.06 |
|
|
0.05 |
|
|
0.18 |
|
|
0.17 |
PG&E
Energy Trading |
|
(0.04) |
|
|
(0.02) |
|
|
(0.09) |
|
|
(0.02) |
Eliminations
and Other |
|
0.05 |
|
|
0.02 |
|
|
0.05 |
|
|
(0.05) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
- National Energy Group |
|
(2.21) |
|
|
0.09 |
|
|
(2.03) |
|
|
0.20 |
|
|
|
|
|
|
|
|
Total |
$ |
(1.49) |
|
$ |
0.54 |
|
$ |
0.04 |
|
$ |
2.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|