6
Commitment to Credit Quality
The CPUC is committed to providing a rate path
that allows PG&E to achieve a solid investment grade credit
profile
¨Clear rate making process
—Traditional cost-of-service
methodology with added protections provided by recent state laws (e.g. AB57)
¨Visible rate path to support capital structure
—Provided as part of the
OCC/CPUC Plan through a Reorganization Agreement
that ensures, among other things, that the cost of securities to be issued will be recovered in rates, and that the CPUC
will facilitate achieving and maintaining
investment grade credit ratings for PG&E
¨Strong cash flow generating capacity supported by $1.75
billion regulatory asset
—Amortization
of $1.75 billion regulatory asset improves coverages immediately and capitalization over time