QUOTE AND NEWS
MarketWatch  Apr 28  Comment 
A major wildfire that killed two people and destroyed more than 500 homes in California last year was caused by a spark from a tree that touched a power line owned by PG&E Corp., according to state officials, who said they would seek $90 million...
Forbes  Apr 26  Comment 
The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, PG&E (PCG) is now the #62 analyst pick, moving up by 48 spots.
Benzinga  Apr 25  Comment 
JPMorgan’s Christopher Turnure believes that the risks facing PG&E Corporation (NYSE: PCG) are more than priced into the stock, which continues to trade at a meaningful discount to peers. Turnure maintains an Overweight rating on the company,...
TechCrunch  Apr 1  Comment 
 Northern California has become a test-bed for electric vehicle charging. And it’s no accident; the region is home to more electric vehicles and EV charging stations than anywhere else in the country. Like other innovative industries, the EV...
Insurance Journal  Mar 14  Comment 
HomeServices of America Inc., a Berkshire Hathaway affiliate, has acquired Minnesota-based PCG Agencies Inc., a large independent personal insurance agency. Terms were not disclosed. Headquartered in St. Paul, PCG offers a broad spectrum of...
Motley Fool  Mar 2  Comment 
PG&E has had its share of troubles, but as they fade from memory, this Cali utility is in a surprisingly good position.
Motley Fool  Feb 29  Comment 
A pictorial peek into PG&E stock.
newratings.com  Feb 18  Comment 
WASHINGTON (dpa-AFX) - PG&E Corp. (PCG) reported earnings for fourth quarter that lost ground from last year. The company said its profit came in at $247 million, or $0.50 per share. This was lower than $253 million, or $0.53 per share, in last...




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PG&E Corp (NYSE: PCG) is an energy holding company whose primary subsidiary is the regulated utility, Pacific Gas and Electric. PG&E operates in 47 of 58 Northern and Central Californian counties and provides electricity and gas to over 9 million customers. As a regulated utility, PG&E has very little competition and a strong customer base. In 2009, it had 5.1 million electricity distribution customers, and 4.3 million natural gas distribution customers. Its business is stable and relatively low-risk because the utility can rely on a consistent customer base who pay rates determined by the state utilities commission.

Ultimately, PG&E’s future is inextricably tied to its relationship with the California Public Utilities Commission (CPUC). The CPUC is responsible for setting most of the regulations that govern PG&E’s business—most importantly the rates it is able to charge customers. In 2000, the CPUC set rates so low PG&E couldn’t turn a profit, which forced them into bankruptcy and contributed to the state-wide energy crisis. Since then, PG&E and the CPUC have had a better relationship, due in part to residual fears of another crisis. However, PG&E has to renegotiate its “rate-case” in 2011, so it is unclear how long the current trend will last.

Company Overview

History

Pacific Gas and Electric (PG&E) was founded in San Francisco in 1905 after the consolidation of more than two dozen power and water companies across California. PG&E began delivering natural gas to northern California in 1930 and after WWII began quickly building new power plants. In the late 1990s, deregulation of the California energy market allowed PG&E to sell most of its natural gas plants. While it continued to operate other types of plants (hydroelectric, nuclear, and a few remaining natural gas), this move forced the utility to buy power from outside energy generators at variable prices while providing energy to consumers at fixed rates. In 2000, energy costs became so high that California was pushed into an energy crisis that including rolling blackouts throughout the state. PG&E was forced to declare bankruptcy in April 2001 when it could no longer sell energy for more than it could buy on the open market. PG&E emerged from bankruptcy in April 2004.

Business Performance and Products

PG&E provides gas and electricity to customers across Northern and Central California. The utility owns power-generation facilities that supply approximately 40% of its annual needs and purchases the rest. These facilities include 118 hydroelectric, nuclear, and fossil-fuel plants in California. During 2009, PG&E had revenues of $13.4 billion, and was able to post a net income of $1.23 billion in 2009.

PG&E supplies electricity to 5.1 million customers and gas to 4.3 million customers.[1] As the dominant utility in the region, PG&E provides electricity to both homes and businesses. The corporate-sales side is particularly complex in Silicon Valley, where IT firms need especially high amounts of energy. PG&E also works with large customers (like Yahoo! (YHOO) and Adobe Systems (ADBE)) to help them design facilities that are energy efficient and keep power use low across their companies. Here is a breakdown of customer profiles for both the gas and electricity businesses:

I think you hit a bullseye there flelas!

Competitors

As a regulated utility company, PG&E has no real competition in the markets it serves. In other parts of California, two other energy concerns provide power: Southern California Edison and San Diego Gas & Electric. Nationwide, PG&E performs well compared to other utilities and is even considered a “bellwether” company in the domestic utility industry because of its especially constructive relationship with the CPUC and the growing California electricity market—since 2003, PG&E has grown twice as fast as the industry as a whole. While not the only company to provide both gas and electricity, PG&E is in the minority as more utilities focus exclusively on electricity.



References

  1. PCG 10-K 2009 Item 1 Pg. 1
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