Efficient Financing & Incremental Investment Opportunities slide image

Efficient Financing & Incremental Investment Opportunities

MACRO ENVIRONMENT DEMOGRAPHIC GROWTH Largest economy in the U.S. and 5th largest economy in the world, with GDP of $3.1T1 Projected gross state product and housing growth are 2% and 7% CAGRS through 2021, respectively² Southern CA has the largest manufacturing base and some of our • nation's largest ports³ Largest dairy and agriculture producer in the U.S.4 AMBITIOUS POLICY GHG Emissions ◉ 40% below 1990 levels by 20305 Net zero by 20456 Methane emissions 40% below 2015 baseline by 20307 Renewable Portfolio Standard (RPS) 100% zero-carbon resources by 20458 Transportation ◉ 100% ZEV passenger vehicle sales by 2035 and medium | heavy-duty by 20459 CUSTOMER TRENDS Over the next quarter century, CA's energy demand is expected to nearly double 10 More customer choice where supply is less utility centric (direct access and CCAs)11 Achieve the same GHG reductions as overhauling 100% of CA's buildings to all electricity with 16% RNG 12 CA has #1 rooftop solar penetration in U.S.13 Our service territories offer some of the most attractive macro environments in North America 2019 GDP Data. BEA "Bearfacts" (April 2020). 9. Zero-emission vehicles (ZEV) E.O. N-97-20 set a state goal for 100% zero-emission in-state new passenger vehicle sales by 2035 and new medium- + heavy-duty vehicles by 2045. 1. 234561 2. 2018 IHS Markit, Real Gross State Product and Housing Permits though 2021. 4. 5. 6. 3. BEA manufacturing employment 2019 data by metropolitan area (Nov 2020). U.S. Department of Agriculture, cash receipts by commodity, state ranking, 2019. CA SB 32 requires GHG emissions reductions to 40% below 1990 levels by 2030. E.O. B-55-18 requires statewide carbon neutrality by 2045. 10. California Energy Commission, California Public Utilities Commission, California Air Resources Board (CARB) (December 2020). 2021 SB 100 Joint Agency Report. 11. Community Choice Aggregators (CCAS). 12. Navigant Consulting, "Gas Strategies for a Low-Carbon California Future," 2018. 7. SB 1371 and D. 19-08-020 require CA gas corporations to reduce methane emissions by 20% below 2015 baseline by 2025 and 40% below 2015 baseline by 2030. 13. 2020 Data. EIA Electricity Browser Net Generation: All Sectors, Net Generation for Small-Scale Solar Photovoltaic by Megawatt Hours (MWh). 8. CA SB 100 requires 60% of electricity procurement from renewable energy resources by 2030 and remaining 40% supplied by 19 zero-carbon resources by 2045. SEMPRA
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