Businessweek

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, operates as a public utility operating in northern and central California. The company engages in the sale and delivery of electricity and natural gas to customers. The company served approximately 5.2 million electricity distribution customers and approximately 4.4 million natural gas distribution customers as of December 31, 2012. The company owns approximately 167,000 acres of land, including approximately 140,000 acres of watershed lands. ELECTRIC UTILITY OPERATIONS As of December 31, 2012, the company had installed approximately 8.9 million advanced electric and gas meters. Diablo Canyon Power Plant: The company’s Diablo Canyon power plant consists of two nuclear power reactor units, Units 1 and 2. Hydroelectric Generation Facilities: The company’s hydroelectric system consists of 109 generating units at 68 powerhouses, including the Helms pumped storage facility. Fossil Fuel-fired Generation Facilities: The company’s natural gas-fired generation facilities include the Colusa Generating Station, the Gateway Generating Station, and the Humboldt Bay generating station. In addition, the company owns and operates three fuel cell sites in the Bay Area. Photovoltaic (PV) Facilities: The company-owned PV facilities have an aggregate of 100 megawatt (MW) that is operational, and an additional 50 MW are under construction and expected to become operational in 2013. The operational PV facilities include the Five Points solar station (15 MW), the Westside solar station (15 MW), the Stroud solar station (20 MW), the Huron solar station (20 MW), the Cantua solar station (20 MW), and the Giffen solar station (10 MW). All of these facilities are located in Fresno County. The PV facilities under construction are the Gates solar station (20 MW), the West Gates solar station (10 MW), and the Guernsey solar station (20 MW). The Gates and West Gates solar stations are located in Fresno County; the Guernsey solar station is located in Kings County. Generation Resources from Third Parties Qualifying Facility (QF) Power Purchase Agreements: As of December 31, 2012, the company had power purchase agreements with 180 operating QFs for approximately 3,000 MW of capacity. Irrigation Districts and Water Agencies: The company also has entered into agreements with various irrigation districts and water agencies to purchase hydroelectric power. These agreements require the company to make semi-annual fixed minimum payments. Other Third-Party Power Purchase Agreements: The company has entered into various power purchase agreements for renewable and conventional generation resources, including tolling agreements and resource adequacy agreements. Renewable Generation Resources Renewable generation resources include bioenergy, such as biogas and biomass, small hydroelectric, wind, solar, and geothermal energy. Electricity Transmission As of December 31, 2012, the company owned approximately 18,100 circuit miles of interconnected transmission lines operated at voltages of 500 Kilovolt (kV) to 60 kV. The company also operated 91 electric transmission substations with a capacity of approximately 60,800 megavolt ampere. The company’s electric transmission system is interconnected with electric power systems in the Western Electricity Coordinating Council, which includes various western states, Alberta, and British Columbia, Canada, and parts of Mexico. The company acts as its own scheduling coordinator to schedule electricity deliveries to the transmission grid. The company also acts as a scheduling coordinator to deliver electricity produced by various governmental entities to the transmission grid under contracts the company entered into with the entities. Electricity Distribution The company’s electricity distribution network consists of approximately 141,000 circuit miles of distribution lines, 58 transmission-switching substations, and 601 distribution substations. The company’s distribution network interconnects with its transmission system primarily at transmission switching substations and distribution substations where