Aug 6, 2014
PG&E Corporation's (NYSE: PCG) second-quarter 2014 net income after dividends on preferred stock (also called 'income available for common shareholders') was $267 million or $0.57 per share, as reported in accordance with generally accepted accounting principles (GAAP). This compares with $328 million, or $0.74 per share, for the second quarter of 2013.
GAAP results include items that management does not consider part of normal, ongoing operations (items impacting comparability), which totaled $97 million pre-tax, or $0.12 per share, for the quarter. These items related to natural gas matters, including costs to make safety improvements as well as legal and other costs. The cost to shareholders for natural gas pipeline safety-related work incurred since the San Bruno accident or committed over the next several years is $2.7 billion, based on current forecasts.
'We continue to make good progress on our goal of providing our customers with energy that is safe, reliable and affordable. Toward this end, we're very pleased that, during the second quarter, we received two international certifications for best-in-class management of our gas system assets and a finding from the Nuclear Regulatory Commission that our Diablo Canyon facility was one of the best-performing nuclear plants in the country in 2013. Looking ahead, we are hopeful that the California Public Utilities Commission will rule as early as next month on our General Rate Case request. We respectfully urge the Commission in its final decision to support responsible infrastructure investment so we can fulfill our mission. In addition, it remains vital to our pipeline safety and reliability enhancement program that state regulators also resolve pending gas proceedings in a timely and balanced manner,' said Tony Earley, Chairman, CEO, and President of PG&E Corporation.
Second-Quarter Earnings from Operations
On a non-GAAP basis, excluding items impacting comparability, PG&E Corporation's earnings from operations for the second quarter of 2014 were $324 million, or $0.69 per share, down from $348 million, or $0.79 per share, during the same period in 2013. The major factors contributing to this quarter-over-quarter difference included the negative impacts of a delay in cost recovery associated with the 2014 General Rate Case, and an increase in the number of shares outstanding.
PG&E Corporation discloses historical financial results based on 'earnings from operations' in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of items that management believes do not reflect the normal course of operations. Earnings from operations are not a substitute or alternative for consolidated income available for common shareholders presented in accordance with GAAP. See the accompanying tables for a reconciliation of the differences between results based on earnings from operations and results based on consolidated income available for common shareholders.
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Pacific Gas and Electric Company (PG&E)
77 Beale St
San Francisco, California
United States, 94177
Tel: 1 (415) 973-5930