Complete Earnings Tables
- Consolidated net income reported under GAAP was
$0.77 per share for PG&E Corporation for the
third quarter, compared with $1.09 per share in
the same quarter of 2006. All per-share amounts
are presented on a diluted basis.
- Net income for the third quarter was $278 million,
compared with $393 million in the same quarter of
2006.
- Guidance for 2007 earnings from operations is
now specified as the upper half of the $2.70-$2.80
per share range. Guidance for 2008 earnings from
operations is reaffirmed at $2.90-$3.00 per share.
(San Francisco) – PG&E Corporation’s
(NYSE:PCG) consolidated net income reported in accordance
with generally accepted accounting principles (GAAP)
was $278 million, or $0.77 cents per share, in the
third quarter of 2007, compared with $393 million,
or $1.09 per share, in the same quarter of 2006. On
a non-GAAP, earnings from operations basis, PG&E
Corporation’s results in the third quarter were
$0.77 cents per share. Earnings from operations in
the third quarter of 2006 were $0.86 cents per share.
The year-over-year difference in earnings primarily
reflects a number of non-recurring items that raised
results in the 2006 third quarter, including the recovery
of costs incurred for electric transmission scheduling
services, the recovery of interest and litigation
costs for disputed generator claims, and the utilization
of a tax benefit for capital loss carry forwards.
There were no comparable items in the third quarter
of 2007.
“Our results in the third quarter keep us on
track to meet our 2007 earnings expectations in the
upper half of our guidance range of $2.70 to $2.80
per share,” said Peter A. Darbee, Chairman,
CEO and President of PG&E Corporation.
“We also continue to make progress on our renewable
energy initiatives. We signed new contracts for solar
thermal and wind energy resources in the quarter,
moving us further toward the 2010 renewable portfolio
energy goal, and we stepped up our efforts to begin
receiving the first deliveries of renewable bio-gas
in California beginning in 2008,” Darbee said.
“Our ongoing challenge is to continuously improve
service to our customers amid the pressure of rising
costs, which has been and continues to be the focus
of our business transformation efforts,” Darbee
added.
EARNINGS GUIDANCE
PG&E Corporation’s guidance for 2007 earnings
from operations is now specified in the upper half
of the $2.70-$2.80 per share range and for 2008 is
reaffirmed at $2.90-$3.00 per share.
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 discloses historical results
and 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 earnings from operations - historical results and
EPS guidance - to consolidated net income in accordance
with GAAP).
Supplemental Financial Information:
-
In addition to the financial
information accompanying this release, an expanded
package of supplemental financial and operational
information for the quarter will be furnished to
the Securities and Exchange Commission and also
will be available shortly on PG&E Corporation’s
website (www.pgecorp.com).
Conference Call with the Financial Community
to Discuss First Quarter Results:
- Today’s call at 11:30 a.m. Eastern time is
open to the public on a listen-only basis via webcast.
Please visit www.pgecorp.com for more information
and instructions for accessing the webcast. The call
will be archived on the website. Also, a toll-free
replay will be accessible shortly after the live call
through 9:00 p.m. EST, on November 7, 2007, by dialing
877-690-2093. International callers may dial 402-220-0648.
This press release contains
forward-looking statements regarding management’s
guidance for PG&E Corporation’s 2007 and
2008 EPS from operations. These statements are based
on current expectations and various assumptions which
management believes are reasonable, including that
the Pacific Gas and Electric Company’s (Utility)
rate base averages $16.9 billion in 2007 and $18.7
billion in 2008, that the Utility earns at least its
authorized rate of return on equity, that the Utility’s
ratemaking capital structure is maintained at 52 percent
equity, and that the Utility is successful in implementing
its initiatives to become more efficient and reduce
costs. 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:
- the Utility’s ability
to timely recover costs through rates;
- the outcome of regulatory
proceedings, including ratemaking proceedings pending
at the California Public Utilities Commission and
the Federal Energy Regulatory Commission;
- 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;
- the effect of weather,
storms, earthquakes, fires, floods, disease, other
natural disasters, explosions, accidents, mechanical
breakdowns, 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 Utility’s Diablo Canyon nuclear generating
facilities (“Diablo Canyon”), the occurrence
of unplanned outages at Diablo Canyon, or the temporary
or permanent cessation of operations at Diablo Canyon;
- the ability of the Utility
to recognize benefits from its initiatives to improve
its business processes and systems and customer service;
- whether the Utility’s
planned capital investment projects are completed
within authorized cost amounts;
- 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
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 other third parties;
- the ability of PG&E
Corporation and/or the Utility to access capital markets
and other sources of credit;
- 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; and
- other factors and risks
discussed in PG&E Corporation’s and the
Utility’s reports filed with the Securities
and Exchange Commission.