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This presentation contains forward-looking statements about management's guidance for PG&E Corporation’s 2012 earnings per share and various
assumptions and estimates on which such guidance is based, including forecasts of costs, capital expenditures, and future equity issuances, and estimated
liabilities for penalties associated with natural gas matters, third-party liabilities associated with the September 9, 2010 natural gas pipeline accident in San
Bruno, California, and environmental remediation. These statements 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 outcome of pending and future investigations and regulatory proceedings related to the San Bruno accident, and the safety of the Utility’s natural gas transmission
pipelines in its service territory; the ultimate amount of costs the Utility incurs for natural gas matters that are not recovered through rates; the ultimate amount of third-party
claims associated with the San Bruno accident that are not recovered through insurance; the amount of any punitive damages arising from the civil litigation related to the
San Bruno accident; and the amount of any civil or criminal penalties the Utility may incur related to noncompliance with regulations, rules, and orders;
• whether PG&E Corporation and the Utility are able to repair the reputational harm they have suffered which, in part, will depend on their ability to adequately and timely
respond to the findings and recommendations made by the NTSB and CPUC’s independent review panel and cure the deficiencies that have been identified in the Utility’s
operating practices and procedures and corporate culture; developments that may occur in the various investigations of the San Bruno accident and natural gas matters; the
decisions, findings, or orders issued in connection with these investigations, including the amount of civil or criminal penalties that may be imposed on the Utility,
developments that may occur in the civil litigation related to the San Bruno accident; and the extent of service disruptions that may occur due to changes in pipeline pressure
as the Utility continues to inspect and test pipelines;
• explosions, fires, accidents, mechanical breakdowns, equipment failures, human errors, labor disruptions, and similar events, as well as acts of terrorism, war, or
vandalism, including cyber-attacks, that can cause unplanned outages, reduce generating output, disrupt the Utility’s service to customers, or damage or disrupt the facilities
operations, or information technology and systems owned by the Utility, its customers, or third parties on which the Utility relies, and subject the Utility to third-party claims
for property damage or personal injury, or result in the imposition of civil, criminal, or regulatory penalties on the Utility;
• the impact of storms, tornados, floods, drought, earthquakes, tsunamis, wildland and other fires, pandemics, solar events, electromagnetic events, and other natural
disasters, or that affect customer demand or that damage or disrupt the facilities, operations, or information technology and systems owned by the Utility, its customers, or
third parties on which the Utility relies;
• the results of seismic studies the Utility is conducting that could affect the Utility’s ability to continue operating Diablo Canyon or renew the operating licenses for Diablo
Canyon, and the impact of new regulatory orders, legislation, regulations, or policies that may be adopted in the future to address the operations, security, safety, or
decommissioning of nuclear facilities, the storage of spent nuclear fuel, seismic design, cooling water intake, or other issues;
• the impact of federal or state laws or regulations, or their interpretation, on energy policy and the regulation of utilities and their holding companies, including how the
CPUC interprets and enforces the financial and other conditions imposed on PG&E Corporation when it became the Utility’s holding company, and whether the outcome of
proceedings and investigations relating to the Utility’s natural gas operations affects the Utility’s ability to make distributions to PG&E Corporation in the form of dividends or
share repurchases;
• whether the Utility’s newly installed electric and gas SmartMeterTM devices and related software systems and wireless communications equipment continue to accurately
and timely measure customer energy usage and generate billing information, and whether the Utility can continue to rely on third-party vendors and contractors to support
the advanced metering system;
• whether the Utility is able to protect its information technology, operating systems and networks, including the advanced metering system infrastructure, from damage,
disruption, or failure caused by cyber-attacks, computer viruses, and other hazards; and whether the Utility’s security measures are sufficient to protect the confidential
customer, vendor and financial data contained in such systems and networks from unauthorized access and disclosure;
• 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;
• the impact of environmental remediation laws, regulations, and orders; the extent to which the Utility is able to recover compliance and remediation costs
from third parties or through rates or insurance, and the ultimate amount of environmental remediation costs the Utility incurs in connection with its natural
gas compressor station located near Hinkley, California which costs are not recoverable through insurance or rates;
• and other factors and risks discussed in PG&E Corporation and the Utility’s 2011 Annual Report to Shareholders and incorporated by reference into their
combined Annual Report on Form 10-K for the year ended December 31, 2011.
Safe Harbor Statement
