PG&E Corporation (NYSE:PCG) Q4 2015 Earnings Conference Call - Final Transcript

Feb 18, 2016 • 12:00 pm ET

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PG&E Corporation (NYSE:PCG) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good afternoon and welcome to the PG&E 2015 Fourth Quarter Earnings Call. All lines will be muted during the presentation portions of our call with an opportunity for questions and answers at the end. At this time, I'd like to turn over to our host, Janet Loduca. Thank you, and enjoy your conference. You may proceed.

Executive
Janet Loduca

Thank you, Matt and thanks to those of you on the phone for joining us. (Forward-Looking Cautionary Statements) With that, I'll hand it over to Tony.

Executive
Tony Earley

Well, thank you, Janet. Hello everyone, thanks for joining us today. 2015 was a really strong year for us both operationally and financially. We continue to improve the safety and reliability of our gas and electric systems, while delivering really solid financial results. Our earnings from operations in 2015 were $3.12 a share, which is slightly ahead of our guidance range.

So, I'm going to spend a few minutes reviewing the operational and regulatory progress we've made, and then I'm going to turn it over to Jason Wells to review our financial results in more detail. We continue to believe that focusing on three key areas, positioning the Company for a clean energy economy, delivering on customer expectations and addressing outstanding issues will provide the foundation for operational and financial success.

So, let me start with how we're positioning the Company for a clean energy economy. PG&E continues to be a recognized leader in supporting the nation's goals around clean energy. In December, several PG&E team members and I joined Governor Brown for the Global Climate Summit in Paris. We participated in a number of events and panels where we shared the actions PG&E and California are taking to reduce carbon emissions, advanced clean energy technologies and spur economic growth.

We were very proud to represent the California Utility perspective at such a significant global forum. In 2015, nearly 30% of PG&E's electric deliveries came from qualifying renewable resources, and even more meaningfully nearly 60% of the energy that we delivered was carbon free. We know that as our energy mix continues to evolve, so do the needs of our electric grid.

To deliver on California's low carbon future, we need to continue investing in a smarter, more resilient grid, and we need to ensure that rate structures are keeping up with these changes. Although, we didn't make as much progress on rate reform last year as we would have liked, the Commission has started to address the issues through flattening our residential peers and moving towards mandatory time of use rates, and they've committed to review the rate structure again in 2019. We look forward to continuing to work with all the parties to develop the appropriate rate structure to meet our customers' changing needs.

Turning to customer expectations, on the electric side of the business, last year we delivered a seven straight year of improved electric reliability. Our outage duration and frequency are now in the second quartile for the industry. We also delivered first quartile performance