1. AGA Operations Conference
A Status Report on
Gas Safety Progress at PG&E
Sumeet Singh
Jim Howe
May 20, 2015
AGA Operations Conference

2. Company Background
Incorporated in California in 1905
One of the largest combined natural gas and electric utilities in the United States
Serves approximately 15 million people throughout a 70,000- square-mile service area
Redding
PG&E Service Territory
~ 5,800 miles of DOT classified gas transmission pipeline1
~ 42,000 miles of gas distribution pipeline
4.3 million natural gas customer accounts
Deliver 970 BCF/year
San Francisco
Bakersfield
~6,800 miles based on criteria using greater than 60 psig operating pressure 2

3. Gas Safety Excellence Safety Management System
The way we do safety
Risk Based Decisions
Layers of Protection
“Be the safest, most reliable gas company in the nation” 3

4. Do the right work in the right way Do Say Ratio equal to One
Safety Culture
Do the right work in the right way
Find it, Fix it
Stop work Authority
Do Say Ratio equal to One
Strategic Actions
PG&E’s focus is to create a culture based on trust where employees feel comfortable speaking up, stopping jobs, sharing incidents or near hits and learning from one another - without discipline or fear or reprisal
Leadership is critical and leaders must be equipped to lead safety culture change
Corrective Action Program is “foundational” 4

5. Asset Management Understanding our Assets5

6. Asset Management Risk Process and Planning
Apply risk-based prioritization and constraints across Asset Families
Transmission Pipe
Risk Management Process and Planning
Storage
Compression & Processing
Measurement & Control
Distribution Mains and Services1
Risk-Based Proposal of Storage Mitigating Programs
Identify threats and assess risks by Asset Family
Develop proposed mitigation programs within Asset Families
Develop executable Investment Plan
Risk-based, executable Investment Plan incorporating all Asset Families
Incorporate new and changing information
Analyze Key Risks
(Session D)
Develop Strategic Plan
(Session 1)
Develop Execution Plan
(Session 2)
LNG/CNG
Customer Connected Equipment
(1) Distribution Mains and Services are two distinct Asset Families
Risk-Based Proposal of Mitigating Programs by Asset Family 6

7. Process Safety
Process safety is about reducing the possibility of low frequency, high consequence incidents
Identify
Anticipate and understand potential hazards
Evaluate
Consequences
Safeguards
Risks
Add layers of protection to prevent and/or mitigate incidents
Layers of Protection
Of Employees
Of Public
Of Environment
Of Assets
PG&E is focused on embedding process safety principles to ensure safe management of assets across their entire life cycle including design and engineering of facilities, maintenance of equipment, effective control points and procedures and training. 7

8. Our Progress
2010
2014
33.3
19.9
94.4%
99.50% 27 65
12,203
120
755 29
16%5
98%
7745 17
1 Data represents year-to-date average
3 Data represents for specific year
4 Data represents total remaining at year-end
5 Data as of 2011 8

9. Our Progress - Accomplishments
Replaced
127 miles of Transmission Pipeline
Increased pipeline piggability to 26%
Automated 208 valves
Reduced Dig-in
rate to 2.42
2nd Quartile
Hydro-tested 674 miles of pipeline to establish MAOP
Replacement
of all known cast iron pipes
Digitized and reviewed nearly 4 million records to validate MAOP for every pipeline component of the 6,750 mile gas transmission system
Enhanced Pipeline
Centerline Accuracy to
within 10 ft. 9

10. Our Progress Changes in Gas Operations
Organizational Alignment
T&D Control Center
SCADA & System Visibility
Rate Case Structure
Gas Safety Plan
Continued Focus for Gas Operations
Leak Survey - Picarro
Emergency Preparedness and Response
Damage Prevention
Compliance / Regulatory Commitments
Community Outreach
Research and Development
Gas Operations Training Center 10

11. When it comes to safety, our work is never done!
Conclusion
We are constantly evaluating our processes for continuous improvement opportunities
When it comes to safety, our work is never done! 11