QUOTE AND NEWS
Benzinga  Dec 17  Comment 
Deutsche Bank downgraded PG&E Corporation (NYSE: PCG) Wednesday from Buy to Hold and cut its price target from $54 to $52. Analysts led by Jonathan Arnold commented that “it is now clear that the California PUC will not issue final decisions...
TheStreet.com  Dec 17  Comment 
NEW YORK (TheStreet) -- Shares of PG&E  are climbing, up 0.37% to $52.13 in early market trading Wednesday, after the company had its rating lowered to "hold" from "buy" by analysts at Deutsche Bank this morning. However, the firm raised its...
Benzinga  Dec 15  Comment 
Morgan Stanley upgraded Oracle (NYSE: ORCL) from Equal-weight to Overweight. The price target for Oracle has been raised from $45.00 to $50.00. Oracle's shares closed at $39.95 on Friday. Evercore ISI upgraded Broadcom (NASDAQ: BRCM) from Hold...
TheStreet.com  Dec 15  Comment 
NEW YORK (TheStreet) -- Pacific Gas and Electric   was upgraded by analysts at JPMorgan Chase to "overweight" from "neutral" this morning, with a higher price target of $57 from $50 on shares of the natural gas and electricity company....
TheStreet.com  Dec 15  Comment 
NEW YORK (TheStreet) -- RATINGS CHANGES Adobe was upgraded to buy at TheStreet Ratings. You can view the full analysis from the report here: ADBE Ratings Report. Sothebys was downgraded to hold at TheStreet Ratings. You can view the full...
Market Intelligence Center  Dec 8  Comment 
After closing Friday at $50.95, PG&E Corp (PCG) presents an attractive opportunity to get a 2.77% return in just 193 days, which is an annualized return of 5.25% (for comparison purposes only). To enter this trade, sell one Jun. '15 $50.00 call...
Market Intelligence Center  Nov 28  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with PG&E Corp (PCG) that should provide a 2% return in just 112 days. Sell one Mar. '15 call at the $49.00 level for each...
Wall Street Journal  Nov 26  Comment 
PG&E has hired a new security company to protect a substation that serves Silicon Valley after breaches that have cost the utility millions of dollars and raised concerns about the nation’s electric grid.
Market Intelligence Center  Nov 20  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on PG&E Corp (PCG) could yield about 3.37% (10.25% annualized, for comparison purposes only) in 120 days. Pair a long position in the stock with the Mar. '15 $50.00 call...
TheStreet.com  Oct 30  Comment 
NEW YORK (TheStreet) -- PG&E Corp. was upgraded to "neutral" from "sell" today at Goldman Sachs, with a price target of $48. The companyareported 2014 third quarter results that led Goldman Sach's to remove the utilityafrom its America's sell...




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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