Exhibit 99
PG&E CORPORATION
CONDENSED STATEMENT OF CONSOLIDATED INCOME
(unaudited)
<TABLE>
<CAPTION>
Three months ended Nine Months ended
September 30, September 30,
------------------- -----------------
<S> <C> <C> <C> <C>
(in millions, except per
share amounts) 2000 1999 2000 1999
-------- -------- -------- --------
Operating Revenues
Pacific Gas and Electric
Company $ 2,523 $ 2,587 $ 7,037 $ 6,905
PG&E National Energy Group
PG&E Generating 290 275 883 818
PG&E Gas Transmission
-Texas 258 177 707 970
-Northwest 64 56 177 166
PG&E Energy Trading 4,777 3,490 10,493 8,145
Eliminations and Other (408) (368) (1,147) (979)
-------- -------- -------- --------
Total operating revenue 7,504 6,217 18,150 16,025
-------- -------- -------- --------
Operating Expenses
Cost of energy for Pacific Gas
and Electric Company 2,234 864 4,187 2,183
Cost of energy--PG&E National
Energy Group 4,618 3,394 10,137 8,415
Deferred electric procurement
costs (2,176) - (2,789) -
Operating expenses, including
depreciation 2,199 1,443 4,688 3,970
------- -------- -------- --------
Total operating expenses 6,875 5,701 16,223 14,568
-------- -------- -------- --------
Operating Income 629 516 1,927 1,457
Interest expense and other (146) (170) (484) (502)
-------- -------- -------- --------
Income Before Income Taxes 483 346 1,443 955
-------- -------- -------- --------
Income taxes 239 149 671 395
-------- -------- -------- --------
Income before discontinued
operations and cumulative
effect of a change in
accounting principle 244 197 772 560
Discontinued operations
Loss from operations of PG&E Energy
Services (net of applicable income
taxes of $9 million and
$26 million, respectively) - (12) - (34)
Loss on disposal of PG&E
Energy Services (net of
applicable income taxes of
$13 million) (19) - (19) -
-------- -------- -------- --------
Income before cumulative
effect of a change in
accounting principle 225 185 753 526
Cumulative effect of a change
in an accounting principle
(net of applicable income
taxes of $8 million) - - - 12
-------- -------- -------- --------
Net income $ 225 $ 185 $ 753 $ 538
-------- -------- -------- --------
-------- -------- -------- --------
Weighted Average Common
Shares Outstanding 362 367 361 369
Earnings Per Common Share, Basic
Income from continuing
operations $ 0.67 $ 0.53 $ 2.14 $ 1.52
Discontinued operations (0.05) (0.03) (0.05) (0.09)
Cumulative effect of change in
accounting principle - - - 0.03
-------- -------- -------- --------
Net Income $ 0.62 $ 0.50 $ 2.09 $ 1.46
-------- -------- -------- --------
-------- -------- -------- --------
Earnings Per Common Share, Diluted
Income from continuing
operations $ 0.67 $ 0.53 $ 2.12 $ 1.51
Discontinued operations (0.05) (0.03) (0.05) (0.09)
Cumulative effect of change
in accounting principle - - - 0.03
-------- -------- -------- --------
Net Income $ 0.62 $ 0.50 $ 2.07 $ 1.45
-------- -------- -------- --------
-------- -------- -------- --------
Dividends Declared Per
Common Share $ 0.30 $ 0.30 $ 0.90 $ 0.90
</TABLE>
<PAGE>
Earnings and earnings per share for PG&E Corporation's lines of business
are as follows:
Earnings (millions) Earnings (millions)
Three months ended Nine Months ended
September 30, September 30,
------------------ -------------------
2000 1999 2000 1999
---- ---- ---- ----
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Utility
Pacific Gas and
Electric Company (a) $ 211 $ 179 $ 655 $ 498
PG&E National Energy Group
PG&E Generating 16 21 70 77
PG&E Gas Transmission
-Texas - (7) - (33)
-Northwest 16 18 43 46
PG&E Energy Trading 5 (17) 27 (19)
PG&E Energy Services - (12) - (34)
Eliminations and Other - 3 (10) (3)
------- ------- ------- -------
Subtotal -
PG&E National
Energy Group 37 6 130 34
------- ------- ------- -------
Earnings from Operations 248 185 785 532
Items impacting
comparability (b) (23) - (32) 6
------- ------- ------- -------
Reported Earnings $ 225 $ 185 $ 753 $ 538
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
Earnings per Share Earnings per Share
(Diluted) (Diluted)
Three months ended Nine Months ended
September 30, September 30,
----------------------- -----------------------
2000 1999 2000 1999
---- ---- ---- ----
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Utility
Pacific Gas and
Electric Company (a) $ 0.58 $ 0.49 $ 1.80 $ 1.35
PG&E National Energy Group
PG&E Generating 0.04 0.05 0.19 0.21
PG&E Gas Transmission
-Texas - (0.02) - (0.10)
-Northwest 0.04 0.05 0.12 0.12
PG&E Energy Trading 0.02 (0.05) 0.08 (0.05)
PG&E Energy Services - (0.03) - (0.09)
Eliminations and Other - 0.01 (0.03) (0.01)
------ ------ ------ -------
Subtotal - PG&E National
Energy Group 0.10 0.01 0.36 0.08
------ ------ ------ -------
Earnings from Operations 0.68 0.50 2.16 1.43
Items impacting
comparability (b) (0.06) - (0.09) 0.02
------ ------ ------ ------
Reported Earnings $ 0.62 $ 0.50 $ 2.07 $ 1.45
------ ------ ------ ------
------ ------ ------ ------
</TABLE>
(a) 1999 results for Pacific Gas and Electric Company do not include the
impacts associated with the delayed decision on the Company's
1999 General Rate Case (GRC), which was resolved in February 2000 and
retroactive to January 1, 1999. The effects of the 1999 GRC
were recorded in the fourth quarter of 1999 and would have increased
1999 third quarter and year-to-date earnings by $38 ($0.11 per
share) and $115 ($0.32 per share).
(b) Items impacting comparability in 2000 include loss on disposal of assets,
net of tax, of $19 million ($0.05 per share) resulting from a true-up
following sale of the energy services operations and relocation and
severance charges related to the restructuring of the PG&E National
Energy Group of $4 million ($0.01 per share) in the third quarter
and $13 million ($0.04 per share) in the nine months ended
September 30, 2000. Items impacting comparability in the nine-month
period ending September 30, 1999 include a restructuring charge of
$6 million ($0.01 per share) incurred at PG&E Gas Transmission and
income from a change in accounting principle at PG&E Generating of
$12 million ($0.03 per share).
