Details for: PGE AL 4419-G-A_6157-E-A.pdf


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Erik Jacobson
Director
Regulatory Relations

Pacific Gas and Electric Company
77 Beale St., Mail Code B13U
P.O. Box 770000
San Francisco, CA 94177
Fax: 415-973-3582

April 30, 2021

Advice 4419-G-A/6157-E-A
(Pacific Gas and Electric Company ID U 39 M)

Public Utilities Commission of the State of California
Subject:

Supplemental: Tier 1 Advice Letter re Executive Compensation

Purpose
On April 9, 2021, Pacific Gas and Electric Company (“PG&E”) submitted a Tier 1 Advice
Letter (“Advice Letter”) to report on PG&E’s 2020 executive officer compensation
awards, and to address how such awards comply with certain requirements of
Assembly Bill 1054 and the California Public Utilities Commission’s June 1, 2020
Decision Approving the Chapter 11 Reorganization Plan of PG&E and PG&E
Corporation (D.20-05-053). PG&E’s Advice Letter included a chart showing the
percentages of various components of compensation granted to PG&E’s executive
officers in 2020. PG&E subsequently discovered that the chart contained an error in the
percentages associated with one executive officer, which, in turn, affected the averages
presented in the chart. PG&E submits this supplement to correct the error, as well as
an error in a cross-reference in footnote 3 of the Advice Letter. These errors do not
affect any of the other information or analyses presented in the Advice Letter.
Discussion
The following corrected chart summarizes the mix of compensation granted to PG&E’s
executive officers1 in July 2020 (following PG&E’s emergence from Chapter 11) in the
form of salaries, cash incentive awards through PG&E’s 2020 Short-Term Incentive
Plan (“STIP”), and performance share equity incentive awards granted for 2020 through
PG&E Corporation’s 2014 Long-Term Incentive Plan (“LTIP”):

1

As used herein, “executive officers” refers to the individuals who qualify as “executive officers”
within the meaning of Public Utilities Code §§ 451.5 and 8389(e)(4), as described in footnote 1
of the Advice Letter.





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Advice 4419-G-A/6157-E-A -2- April 30, 2021 Executive Base Salary2 STIP3 LTIP4 Chief Executive Officer5 100% 0% 0% Senior Vice President 27% 19% 53% Senior Vice President 48% 17% 35% Senior Vice President 37% 22% 41% Vice President 38% 18% 44% Vice President 38% 18% 44% Senior Director 49% 15% 36% Average (excluding CEO) 40% 18% 42% Base salary percentages reflect annualized amounts based on the executive officers’ salaries following PG&E’s July 1, 2020 emergence from Chapter 11. For any individual who was not in an executive officer position during the entirety of the post-emergence portion of 2020, the base salary percentage reflects an annualized figure based on such individual’s salary during the period such individual was an executive officer. 3 STIP percentages reflect target awards pursuant to the 2020 STIP for the 2020 STIP’s performance period. Payouts were provided in March 2021, following conclusion of the 2020 performance period and certification of the STIP performance score by the PG&E Corporation Compensation Committee. (For a general discussion of the concept of “target” awards, please refer to (i) the testimony of John Lowe submitted by PG&E on January 31, 2020 in I.19-09016; and (ii) PG&E’s January 15, 2021 letter to the Wildfire Safety Division.) 4 LTIP percentages reflect target award levels pursuant to the 2020 LTIP performance share awards. Unlike the STIP, which has a one-year performance period, the 2020 LTIP performance shares have a three-year performance period. Accordingly, actual payouts pursuant to the 2020 LTIP performance shares will not be determined until after 2020 (i.e., likely in February 2023). 5 PG&E’s Chief Executive Officer departed PG&E on August 3, 2020, shortly after PG&E’s emergence from Chapter 11. In accordance with his departure arrangements, he was not eligible for awards under the 2020 STIP or for 2020 LTIP performance shares. He is not included in the averages in the chart. 2
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Advice 4419-G-A/6157-E-A -3- April 30, 2021 Protests Pursuant to CPUC General Order 96-B, Section 7.5.1, PG&E hereby requests the protest period be waived. Effective Date Pursuant to General Order (GO) 96-B, Rule 5.1., and D.20-05-053, this supplemental advice letter is submitted with a Tier 1 designation. PG&E requests that this Tier 1 advice submittal become effective concurrent with original Advice Letter 4419-G/6157-E on April 9, 2020. Notice In accordance with General Order 96-B, Section IV, a copy of this advice letter is being sent electronically and via U.S. mail to parties shown on the attached list and the parties on the service list for I.19-09-016. Address changes to the General Order 96-B service list should be directed to PG&E at email address PGETariffs@pge.com. For changes to any other service list, please contact the Commission’s Process Office at (415) 7032021 or at Process_Office@cpuc.ca.gov. Send all electronic approvals to PGETariffs@pge.com. Advice letter submittals can also be accessed electronically at: http://www.pge.com/tariffs/. /S/ Erik Jacobson Director, Regulatory Relations cc: Service List I.19-09-016
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ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: Pacific Gas and Electric Company (ID U39M) Utility type: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Kimberly Loo Phone #: (415)973-4587 E-mail: PGETariffs@pge.com E-mail Disposition Notice to: KELM@pge.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 4419-G-A/6157-E-A Subject of AL: Supplemental: Tier 1 Advice Letter re Executive Compensation Keywords (choose from CPUC listing): Compliance AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: D.20-05-053 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: No Summarize differences between the AL and the prior withdrawn or rejected AL: Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/ access to confidential information: Resolution required? Yes No Requested effective date: 4/9/21 No. of tariff sheets: 0 Estimated system annual revenue effect (%): N/A Estimated system average rate effect (%): N/A When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: N/A Service affected and changes proposed1: N/A Pending advice letters that revise the same tariff sheets: N/A 1 Discuss in AL if more space is needed. Clear Form
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Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this submittal, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Email: EDTariffUnit@cpuc.ca.gov Name: Erik Jacobson, c/o Megan Lawson Title: Director, Regulatory Relations Utility Name: Pacific Gas and Electric Company Address: 77 Beale Street, Mail Code B13U City: San Francisco, CA 94177 Zip: 94177 State: California Telephone (xxx) xxx-xxxx: (415)973-2093 Facsimile (xxx) xxx-xxxx: (415)973-3582 Email: PGETariffs@pge.com Name: Title: Utility Name: Address: City: State: District of Columbia Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: Email: Zip: Clear Form
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PG&E Gas and Electric Advice Submittal List General Order 96-B, Section IV AT&T Albion Power Company East Bay Community Energy Ellison Schneider & Harris LLP Energy Management Service Alta Power Group, LLC Anderson & Poole Engineers and Scientists of California Atlas ReFuel BART Barkovich & Yap, Inc. California Cotton Ginners & Growers Assn California Energy Commission California Hub for Energy Efficiency Financing California Alternative Energy and Advanced Transportation Financing Authority California Public Utilities Commission Calpine Cameron-Daniel, P.C. Casner, Steve Cenergy Power Center for Biological Diversity Chevron Pipeline and Power City of Palo Alto City of San Jose Clean Power Research Coast Economic Consulting Commercial Energy Crossborder Energy Crown Road Energy, LLC Davis Wright Tremaine LLP Day Carter Murphy Dept of General Services Don Pickett & Associates, Inc. Douglass & Liddell GenOn Energy, Inc. Goodin, MacBride, Squeri, Schlotz & Ritchie Green Power Institute Hanna & Morton ICF IGS Energy International Power Technology Intestate Gas Services, Inc. Kelly Group Ken Bohn Consulting Keyes & Fox LLP Leviton Manufacturing Co., Inc. Los Angeles County Integrated Waste Management Task Force MRW & Associates Manatt Phelps Phillips Marin Energy Authority McKenzie & Associates Modesto Irrigation District NLine Energy, Inc. NRG Solar Office of Ratepayer Advocates OnGrid Solar Pacific Gas and Electric Company Peninsula Clean Energy Pioneer Community Energy Redwood Coast Energy Authority Regulatory & Cogeneration Service, Inc. SCD Energy Solutions San Diego Gas & Electric Company SPURR San Francisco Water Power and Sewer Sempra Utilities Sierra Telephone Company, Inc. Southern California Edison Company Southern California Gas Company Spark Energy Sun Light & Power Sunshine Design Tecogen, Inc. TerraVerde Renewable Partners Tiger Natural Gas, Inc. TransCanada Utility Cost Management Utility Power Solutions Water and Energy Consulting Wellhead Electric Company Western Manufactured Housing Communities Association (WMA) Yep Energy
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