QUOTE AND NEWS
Market Intelligence Center  Apr 24  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on PG&E Corp (PCG) that includes 6.71% downside protection. Sell one contract of the Sep. '15...
Wall Street Journal  Apr 19  Comment 
Twelve people were injured and six were being treated for critical or serious injuries at a Fresno, Calif., hospital over the weekend after a PG&E Corp. natural gas pipeline ruptured and ignited a fire.
Forbes  Apr 17  Comment 
In afternoon trading on Friday, Utilities stocks are the best performing sector, losing just 0.6%. Within that group, CenterPoint Energy, Inc (NYSE: CNP) and PG&E Corp. (NYSE: PCG) are two large stocks leading the way, showing a gain of 0.5% and...
Market Intelligence Center  Apr 14  Comment 
After closing Monday at $52.35, PG&E Corp (PCG) presents an attractive opportunity to get a 3.20% return in just 157 days, which is an annualized return of 7.44% (for comparison purposes only). To enter this trade, sell one Sep. '15 $50.00 call...
Insurance Journal  Apr 13  Comment 
California regulators imposed the largest penalty in the agency’s history, ordering PG&E Corp. to pay $1.6 billion for failures that led to a deadly 2010 natural gas pipeline explosion in a San Francisco suburb. A faulty weld on the pipeline...
Forbes  Apr 12  Comment 
California regulators have tried to deter safety violations at its largest utility with fines and monetary penalties. but it seems not to have responded to conventional forms of market discipline. Now they are going to consider more fundamental...
TheStreet.com  Apr 10  Comment 
NEW YORK (TheStreet) --Analysts at Credit Suisse lowered their price target on PG&E Corp. to $59 from $63 and reduced their full year estimates for 2015 through 2017 this morning. The firm citied higher costs relating to the 2010 San Bruno...
Wall Street Journal  Apr 9  Comment 
A California regulator slapped PG&E Corp. with fines totaling $1.6 billion for the deadly natural gas pipeline explosion that rocked San Bruno in 2010.
Benzinga  Mar 17  Comment 
Analysts at Morgan Stanley downgraded PG&E Corporation (NYSE: PCG) from Overweight to Equal-weight. The price target for PG&E has been lowered from $56.00 to $55.00. PG&E shares have gained 20.31% over the past 52 weeks, while the S&P 500...
Benzinga  Mar 17  Comment 
Analysts at KeyBanc downgraded TriMas Corporation (NASDAQ: TRS) from Overweight to Sector Weight and removed the price target of $36.00. TriMas' shares closed at $29.50 yesterday. Nomura downgraded ExOne Company (NASDAQ: XONE) from Outperform to...




RELATED WIKI ARTICLES
 

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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