Pacific Gas and Electric Company Natural Gas Operations

Pacific Gas and Electric Company Natural Gas Operations Roger Graham Presentation to the California Energy Commission Sacramento, California November 18, 2014

Summary Ø PG&E’s backbone gas transmission system is adequate Ø There is sufficient gas storage capacity in Northern California to: • Meet peak day demands • Balance intraday and day-to-day supply and demand changes • Optimize supply purchases Ø Regardless of limited overall demand growth, certain local transmission systems require additional capacity 2

Western Natural Gas Pipeline Network Pipelines delivering to the PG&E system 3 3

PG&E Backbone Pipeline System Malin Redwood Path- Lines 400 & 401 § From Malin, OR to Panoche § Connects to Trans. Canada’s GTN & Ruby § Canadian and Rocky Mountain source gas § 2. 2 Bcf/d capacity § 36” & 42” parallel pipes § 5 compressor stations Silverado Path § Numerous interconnects § California source gas - Sacramento & San Joaquin Valleys Baja Path – Line 300 § From Topock, AZ to Milpitas § Connects to El Paso, Transwestern, Kern River & Questar § Southwest and Rocky Mountain source gas § 1. 2 Bcf/d capacity § Two 34” parallel pipes § Three compressor stations Tionesta Burney Gerber Delevan Irvington Milpitas Antioch Brentwood Bethany Panoche System Inventory § 3. 9 to 4. 3 Bcf § 400 MMcf swing Kettleman Hinkley Topock 4 4

PG&E Backbone Capacity is Adequate • CEC should look to the Utilities Capacity Adequacy filings – PG&E’s Advice Letter 3490 -G • Demand forecast represents weather conditions with a 1 -in-10 year occurrence that account for both dry hydro years and cold winters • Short-term off-system sales were not included in the forecast • Forecast capacity utilization is about 76% on an annual basis • Near 100% utilization during some spring and summer months 5

3 500 1 000 янв-12 фев-12 мар-12 апр-12 май-12 июн-12 июл-12 авг-12 сен-12 окт-12 ноя-12 дек-12 янв-13 фев-13 мар-13 апр-13 май-13 июн-13 июл-13 авг-13 сен-13 окт-13 ноя-13 дек-13 янв-14 фев-14 мар-14 апр-14 май-14 июн-14 июл-14 авг-14 сен-14 окт-14 MMcf/d Historical Backbone Utilization Total Backbone Capacity 3 000 2 500 2 000 Total Backbone Flows 1 500 6

Northern California Gas Storage Facilities Malin Wild Goose Storage • 950 MMcf/d withdrawal • 525 MMcf/d injection • 75. 0 Bcf working Gas Lodi Storage • 750 MMcf/d withdrawal • 550 MMcf/d injection • 29 Bcf working gas Wild Goose Pleasant Creek Los Medanos Central Valley NGS • 300 MMcf/d withdrawal • 300 MMcf/d injection • 11 bcf working gas Gill Ranch • 650 MMcf/d withdrawal • 450 MMcf/d injection • 20 bcf working gas PG&E Storage • Mc. Donald Island, Los Medanos & Pleasant Creek Fields • 2010 MMcf/d withdrawal • 450 MMcf/d injection • 103 Bcf working gas Central Valley GS Lodi Mc. Donald Island Gill Ranch Topock 7 7

Peak Day Supply and Demand q Available Supply § Supplies via interstate pipelines, 67% of firm capacity - 2, 000 MMcf/d § Supplies from gas storage, 80% of maximum capacity - 3, 750 MMcf/d q System Demand § Average winter demand (Jan 2013) - 3, 412 MMcf/d § Historical Peak Day (Dec 9, 2013) - 4, 958 MMcf/d § Abnormal Peak Demand - 5, 530 MMcf/d 5750 5530 Pipeline 2000 Storage 3750 Supply 2300 Noncore 4958 3412 Ave Day 3230 Peak Day Core APD 8

Local Transmission Capacity • Demand growth in Sacramento area and Santa Clara County – Sacramento, new housing and commercial growth – Santa Clara County, mostly commercial some residential growth • Other systems near there capacity limits – North Bay, Fresno – PG&E maximizes capacity during cold weather through manual operations and CNG/LNG augmentation 9