The company has reported a net income after dividends on preferred stock (also called income available for common shareholders) was $241 million, or $0.65 per share, in the first quarter ended March 31, 2009, as reported in accordance with generally accepted accounting principles (GAAP). In the same period last year, net income after dividends on preferred stock was $224 million, or $0.62 per share. On a non-GAAP basis, PG&E Corporation’s earnings from operations were $246 million, or $0.66 per share, in the first quarter of 2009. In the same period last year, earnings from operations were $224 million, or $0.62 per share.

The quarter-over-quarter increase in earnings from operations primarily reflects higher authorized revenues associated with additional capital investments in Pacific Gas and Electric Company’s (Utility) core infrastructure and lower storm-related costs, partially offset by expenses due to a rise in uncollectible customer debt, severances associated with the consolidation of regional facilities, and several other miscellaneous items.

“We continue to demonstrate solid earnings growth as we execute on our operational plans and move forward with important capital investments in PG&E’s system,” said Peter A. Darbee, Chairman, CEO and President of PG&E Corporation. “The company remains on track with its multi-year financial outlook, focusing on operational excellence, and delivering for our customers.”

Earnings Guidance

PG&E Corporation reaffirms its previous guidance for earnings from operations in the range of $3.15-$3.25 per share for 2009, $3.35-$3.50 per share for 2010, and $3.65-$3.85 per share for 2011.

Guidance is based on various assumptions, including that the Utility maintains a ratemaking capital structure of 52% equity and a weighted authorized return on equity of 11.45%, while growing its asset base, earning incentive revenues for energy efficiency achievements, and realizing cost-savings from operational changes and efficiencies in amounts consistent with ranges provided at the company’s February 2009 Investor Conference.

Guidance for 2009 excludes three anticipated items impacting comparability forecasted to total between $0.05 and $0.11 per share. The three items are: the projected costs of accelerating natural gas system integrity surveys and associated maintenance work; the recovery of about $47 million in costs incurred in connection with California Public Utilities Commission (CPUC)-mandated efforts to determine the market value of the Utility’s hydroelectric generation facilities in 2000 and 2001; and forecasted tax refunds expected to be approved later this year. When added to earnings per share (EPS) guidance on an earnings from operations basis, the net effect of these items impacting comparability results in 2009 GAAP EPS guidance of $3.20 to $3.36.