1000 - CONDENSED CONSOLIDATED S
1000 - CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Operating Revenues | ||||
Electric | $2,554 | $2,645 | $4,980 | $5,159 |
Natural gas | 640 | 933 | 1,645 | 2,152 |
Total operating revenues | 3,194 | 3,578 | 6,625 | 7,311 |
Operating Expenses | ||||
Cost of electricity | 883 | 1,097 | 1,766 | 2,124 |
Cost of natural gas | 188 | 487 | 745 | 1,262 |
Operating and maintenance | 1,038 | 991 | 2,097 | 2,027 |
Depreciation, amortization, and decommissioning | 429 | 419 | 848 | 821 |
Total operating expenses | 2,538 | 2,994 | 5,456 | 6,234 |
Operating Income | 656 | 584 | 1,169 | 1,077 |
Interest income | 17 | 33 | 26 | 59 |
Interest expense | (178) | (185) | (359) | (372) |
Other income, net | 22 | 5 | 40 | 10 |
Income Before Income Taxes | 517 | 437 | 876 | 774 |
Income tax provision | 125 | 140 | 240 | 250 |
Net Income | 392 | 297 | 636 | 524 |
Preferred stock dividend requirement of subsidiary | 4 | 4 | 7 | 7 |
Income Available for Common Shareholders | $388 | $293 | $629 | $517 |
Weighted Average Common Shares Outstanding, Basic | 368 | 356 | 366 | 355 |
Weighted Average Common Shares Outstanding, Diluted | 369 | 357 | 367 | 356 |
Net Earnings Per Common Share, Basic | 1.03 | 0.8 | 1.68 | 1.42 |
Net Earnings Per Common Share, Diluted | 1.02 | 0.8 | 1.67 | 1.42 |
Dividends Declared Per Common Share | 0.42 | 0.39 | 0.84 | 0.78 |
2000 - CONDENSED CONSOLIDATED B
2000 - CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
Current Assets | ||
Cash and cash equivalents | $338 | $219 |
Restricted cash | 1,285 | 1,290 |
Accounts receivable | ||
Customers (net of allowance for doubtful accounts of $77 million in 2009 and $76 million in 2008) | 1,481 | 1,751 |
Accrued unbilled revenue | 757 | 685 |
Regulatory balancing accounts | 1,304 | 1,197 |
Inventories | ||
Gas stored underground and fuel oil | 107 | 232 |
Materials and supplies | 204 | 191 |
Income taxes receivable | 171 | 120 |
Prepaid expenses and other | 781 | 718 |
Total current assets | 6,428 | 6,403 |
Property, Plant, and Equipment | ||
Electric | 29,580 | 27,638 |
Gas | 10,387 | 10,155 |
Construction work in progress | 1,523 | 2,023 |
Other | 13 | 17 |
Total property, plant, and equipment | 41,503 | 39,833 |
Accumulated depreciation | (13,904) | (13,572) |
Net property, plant, and equipment | 27,599 | 26,261 |
Other Noncurrent Assets | ||
Regulatory assets | 5,969 | 5,996 |
Nuclear decommissioning funds | 1,740 | 1,718 |
Other | 461 | 482 |
Total other noncurrent assets | 8,170 | 8,196 |
TOTAL ASSETS | 42,197 | 40,860 |
Current Liabilities | ||
Short-term borrowings | 743 | 287 |
Long-term debt, classified as current | 252 | 600 |
Energy recovery bonds, classified as current | 378 | 370 |
Accounts payable | ||
Trade creditors | 863 | 1,096 |
Disputed claims and customer refunds | 1,552 | 1,580 |
Regulatory balancing accounts | 611 | 730 |
Other | 367 | 343 |
Interest payable | 842 | 802 |
Deferred income taxes | 424 | 251 |
Other | 1,400 | 1,567 |
Total current liabilities | 7,432 | 7,626 |
Noncurrent Liabilities | ||
Long-term debt | 9,933 | 9,321 |
Energy recovery bonds | 1,031 | 1,213 |
Regulatory liabilities | 3,838 | 3,657 |
Pension and other postretirement benefits | 2,177 | 2,088 |
Asset retirement obligations | 1,539 | 1,684 |
Income taxes payable | 9 | 35 |
Deferred income taxes | 3,816 | 3,397 |
Deferred tax credits | 91 | 94 |
Other | 2,133 | 2,116 |
Total noncurrent liabilities | 24,567 | 23,605 |
Shareholders' Equity | ||
Preferred stock, no par value, authorized 80,000,000 shares, $100 par value, authorized 5,000,000 shares, none issued | 0 | 0 |
Common stock, no par value, authorized 800,000,000 shares, issued 368,841,539 common and 673,491 restricted shares in 2009 and issued 361,059,116 common and 1,287,569 restricted shares in 2008 | 6,219 | 5,984 |
Reinvested earnings | 3,934 | 3,614 |
Accumulated other comprehensive loss | (207) | (221) |
Total shareholders' equity | 9,946 | 9,377 |
Noncontrolling Interest - Preferred Stock of Subsidiary | 252 | 252 |
Total equity | 10,198 | 9,629 |
TOTAL LIABILITIES AND EQUITY | $42,197 | $40,860 |
2010 - PARENTHETICAL DATA FOR C
2010 - PARENTHETICAL DATA FOR CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Current Assets | ||
Allowance for doubtful accounts | $77 | $76 |
Shareholders' Equity | ||
Preferred stock, par value (in dollars per share) | 0 | 0 |
Preferred stock, shares authorized (no par value) | 80,000,000 | 80,000,000 |
Preferred stock, shares issued (no par value) | 0 | 0 |
Preferred stock, par value (in dollars per share) | 100 | 100 |
Preferred stock, shares authorized ($100 par value) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued ($100 par value) | 0 | 0 |
Common stock, par value (in dollars per share) | 0 | 0 |
Common stock, authorized shares (in shares) | 800,000,000 | 800,000,000 |
Common stock, issued common shares (in shares) | 368,841,539 | 361,059,116 |
Common stock, issued restricted shares (in shares) | 673,491 | 1,287,569 |
3000 - CONDENSED CONSOLIDATED S
3000 - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash Flows from Operating Activities | ||
Net income | $636 | $524 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation, amortization, and decommissioning | 944 | 902 |
Allowance for equity funds used during construction | (47) | (32) |
Deferred income taxes and tax credits, net | 377 | 346 |
Other changes in noncurrent assets and liabilities | (46) | 493 |
Effect of changes in operating assets and liabilities | ||
Accounts receivable | 198 | (68) |
Inventories | 113 | (57) |
Accounts payable | (143) | 121 |
Income taxes receivable/payable | 161 | 21 |
Regulatory balancing accounts, net | (228) | (351) |
Other current assets | 10 | 431 |
Other current liabilities | (224) | (79) |
Other | 3 | (3) |
Net cash provided by operating activities | 1,754 | 2,248 |
Cash Flows from Investing Activities | ||
Capital expenditures | (2,077) | (1,712) |
Proceeds from sale of assets | 5 | 12 |
Decrease (increase) in restricted cash | 15 | (7) |
Proceeds from nuclear decommissioning trust sales | 954 | 636 |
Purchases of nuclear decommissioning trust investments | (985) | (665) |
Other | 7 | 0 |
Net cash used in investing activities | (2,081) | (1,736) |
Cash Flows from Financing Activities | ||
Net repayments under revolving credit facility | 0 | (250) |
Net repayments of commercial paper, net of discount of $3 million in 2009 and $2 million in 2008 | (47) | (114) |
Proceeds from issuance of short-term debt, net of issuance costs of $1 million in 2009 | 499 | 0 |
Proceeds from issuance of long-term debt, net of premium, discount, and issuance costs of $16 million in 2009 and $2 million in 2008 | 884 | 598 |
Long-term debt matured or repurchased | (600) | (454) |
Energy recovery bonds matured | (174) | (165) |
Common stock issued | 182 | 82 |
Common stock dividends paid | (286) | (267) |
Other | (12) | 10 |
Net cash provided by (used in) financing activities | 446 | (560) |
Net change in cash and cash equivalents | 119 | (48) |
Cash and cash equivalents at January 1 | 219 | 345 |
Cash and cash equivalents at June 30 | 338 | 297 |
Cash received (paid) for | ||
Interest, net of amounts capitalized | (298) | (260) |
Income taxes, net | 201 | 60 |
Supplemental disclosures of noncash investing and financing activities | ||
Common stock dividends declared but not yet paid | 155 | 140 |
Capital expenditures financed through accounts payable | 245 | 180 |
Noncash common stock issuances | $39 | $6 |
3010 - PARENTHETICAL DATA FOR C
3010 - PARENTHETICAL DATA FOR CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash Flows from Financing Activities | ||
Net repayments of commercial paper, discount | $3 | $2 |
Proceeds from issuance of short-term debt, issuance costs | 1 | 0 |
Proceeds from issuance of long-term debt, premium, discount, and issuance costs | $16 | $2 |
6000 - ORGANIZATION AND BASIS O
6000 - ORGANIZATION AND BASIS OF PRESENTATION | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
ORGANIZATION AND BASIS OF PRESENTATION | |
Organization and Basis of Presentation | NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION PGE Corporation is a holding company whose primary purpose is to hold interests in energy-based businesses.PGE Corporation conducts its business principally through Pacific Gas and Electric Company (Utility), a public utility operating in northern and central California.The Utility engages in the businesses of electricity and natural gas distribution; electricity generation, procurement, and transmission; and natural gas procurement, transportation, and storage.The Utility is regulated primarily by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC). This quarterly report on Form 10-Q is a combined report of PGE Corporation and the Utility.Therefore, the Notes to the Condensed Consolidated Financial Statements apply to both PGE Corporation and the Utility.PGE Corporations Condensed Consolidated Financial Statements include the accounts of PGE Corporation, the Utility, and other wholly owned and controlled subsidiaries.The Utilitys Condensed Consolidated Financial Statements include the accounts of the Utility and its wholly owned and controlled subsidiaries, as well as the accounts of variable interest entities for which the Utility absorbs a majority of the risk of loss or gain.All intercompany transactions have been eliminated from the Condensed Consolidated Financial Statements. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements.PGE Corporations and the Utilitys Condensed Consolidated Financial Statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented.The information at December 31, 2008 in both PGE Corporations and the Utilitys Condensed Consolidated Balance Sheets included in this quarterly report was derived from the audited Consolidated Balance Sheets incorporated by reference into their combined Annual Report on Form 10-K for the year ended December 31, 2008.PGE Corporations and the Utilitys combined Annual Report on Form 10-K for the year ended December 31, 2008, together with the information incorporated by reference into such report, is referred to in this quarterly report on Form 10-Q as the 2008 Annual Report. The accounting policies used by PGE Corporation and the Utility are discussed in Notes 1 and 2 of the Notes to the Consolidated Financial Statements in the 2008 Annual Report.Any significant changes to those policies or new significant policies are described in Note 2 below. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on a wide range of factors, including future regulatory decisions an |
6010 - NEW AND SIGNIFICANT ACCO
6010 - NEW AND SIGNIFICANT ACCOUNTING POLICIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
NEW AND SIGNIFICANT ACCOUNTING POLICIES | |
New and Significant Accounting Policies | NOTE 2: NEW AND SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies Consolidation of Variable Interest Entities PGE Corporation and the Utility are required to consolidate any entity in which it has control.In most cases, control can be determined based on majority ownership in accordance with the provisions of Accounting Research Bulletin No.51, Consolidated Financial Statements (ARB 51), as interpreted by other standards.However, for certain entities control is difficult to discern based on voting equity interests only.These entities are referred to as variable interest entities (VIEs) based on Financial Accounting Standards Board (FASB) Interpretation No. (FIN) 46 (revised December 2003), Consolidation of Variable Interest Entities.Characteristics of a VIE include equity investment at risk that is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties or equity investors that lack any of the characteristics of a controlling financial interest.The primary beneficiary, defined as the entity that absorbs a majority of the expected losses of the VIE, receives a majority of the expected residual returns of the VIE, or both, is required to consolidate the VIE. The Utilitys exposure to VIEs relates to entities with which it has a power purchase agreement.For those entities, the Utility commonly assesses operational risk, commodity price risk, credit risk, and tax benefit risk on a qualitative basis to determine whether the Utility is a primary beneficiary of the entity and required to consolidate the entity.This qualitative assessment also typically involves comparing the contract life to the economic life of the plant to consider the significance of the commodity price risk that the Utility might absorb.As of June 30, 2009, the Utility is not the primary beneficiary of any entities with which it has power purchase agreements. Although the Utility is not required to consolidate any of these VIEs as of June 30, 2009, it held a significant variable interest in three VIEs as a result of the following power purchase agreements: a 25-year power purchase agreement approved by the CPUC in 2009 to purchase energy from a 250-megawatt (MW) solar photovoltaic energy facility beginning upon the date of commercial operations (expected in 2012); a 20-year power purchase agreement approved by the CPUC in 2009 to purchase energy from a 550-MW solar photovoltaic energy facility beginning upon the date of commercial operations (expected in 2013); and a 25-year power purchase agreement approved by the CPUC in 2008 to purchase energy from a 554-MW solar trough facility beginning upon the date of commercial operations (expected in 2011). Each of the VIEs is a subsidiary of another company whose activities are financed primarily through equity from investors and proceeds from non-recourse project-specific debt financing.Activities of the VIEs consist of renewable energy production from electric generating facilities for sale to the Utility.Under each of the power purchase agreements, the Utility is obligated to purchase as-delivered electric generation ou |
6020 - REGULATORY ASSETS, LIABI
6020 - REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | |
Regulatory Assets, Liabilities, and Balancing Accounts | NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS The Utility accounts for the financial effects of regulation in accordance with SFAS No. 71, Accounting for the Effects of Certain Types of Regulation, as amended (SFAS No. 71), which applies to regulated entities whose rates are designed to recover the cost of providing service.SFAS No. 71 applies to all of the Utilitys operations. The Utility capitalizes and records, as a regulatory asset, costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates.The regulatory assets are amortized over future periods when the costs are expected to be recovered.If costs expected to be incurred in the future are currently being recovered through rates, the Utility records those expected future costs as regulatory liabilities.In addition, amounts that are probable of being credited or refunded to customers in the future are recorded as regulatory liabilities. To the extent portions of the Utilitys operations cease to be subject to SFAS No. 71, or recovery is no longer probable as a result of changes in regulation or other reasons, the related regulatory assets and liabilities are written off. Regulatory Assets Long-Term Regulatory Assets Long-term regulatory assets are composed of the following: Balance At (in millions) June 30, 2009 December 31, 2008 Pension benefits $ 1,696 $ 1,624 Energy recovery bonds 1,322 1,487 Deferred income tax 913 847 Utility retained generation 772 799 Price risk management 410 362 Environmental compliance costs 392 385 Unamortized loss, net of gain, on reacquired debt 213 225 Regulatory assets associated with plan of reorganization 88 99 Contract termination costs 75 82 Other 88 86 Total long-term regulatory assets $ 5,969 $ 5,996 The regulatory asset for pension benefits represents the cumulative differences between amounts recognized in accordance with GAAP and amounts recognized for ratemaking purposes, which also includes amounts that otherwise would be fully recorded to Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets in accordance with SFAS No. 158 Employers Accounting for Defined Benefit Pension and Other Postretirement Plans. The regulatory asset for energy recovery bonds (ERBs) represents the refinancing of the settlement regulatory asset established under the December19, 2003 settlement agreement among PGE Corporation, the Utility, and the CPUC to resolve the Utilitys Chapter 11 of the U.S. Bankruptcy Code (Chapter 11) proceeding (Chapter 11 Settlement Agreement).The regulatory asset is amortized over the life of the bond, consistent with the period over which the related billed revenues and bond-related expenses are recognized. The Utility expects to fully recover this asset by the end of 2012 when the ERBs mature. The regulatory assets for deferred income tax represent deferred income tax benefits previously passed through to customers and are offset by deferred i |
6030 - DEBT
6030 - DEBT | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
DEBT | |
Debt | NOTE 4: DEBT PGE Corporation Senior Notes On March 12, 2009, PGE Corporation issued $350 million principal amount of 5.75% Senior Notes due April 1, 2014. Credit Facility At June 30, 2009, PGE Corporation had no borrowings outstanding under its $187 million revolving credit facility.PGE Corporation amended its revolving credit facility on April 27, 2009 to remove Lehman Brothers Bank, FSB (Lehman Bank) as a lender.Prior to the amendment, the total borrowing capacity under the revolving credit facility was $200 million, including a commitment from Lehman Bank that represented $13 million, or 7%, of the total. Utility Senior Notes On March 6, 2009, the Utility issued $550 million principal amount of 6.25% Senior Notes due March 1, 2039. On June 11, 2009, the Utility issued $500 million principal amount of Floating Rate Senior Notes due June 10, 2010.The interest rate for the Floating Rate Senior Notes is equal to the three-month London Interbank Offered Rate plus 0.95% and will reset quarterly beginning on September 10, 2009.At June 30, 2009, the interest rate on the Floating Rate Senior Notes was 1.60%. 21 Credit Facility and Short-Term Borrowings At June 30, 2009, the Utility had $303 million of letters of credit outstanding under the Utilitys $1.94 billion revolving credit facility.The Utility amended its revolving credit facility on April 27, 2009 to remove Lehman Bank as a lender.Prior to the amendment, the total borrowing capacity under the revolving credit facility was $2.0 billion, including a commitment from Lehman Bank that represented $60 million, or 3%, of the total. The revolving credit facility also provides liquidity support for commercial paper offerings.At June 30, 2009, the Utility had $243 million of commercial paper outstanding at an average yield of 0.68%. Recovery Bonds PGE Energy Recovery Funding LLC (PERF), a wholly owned consolidated subsidiary of the Utility, issued two separate series of ERBs in the aggregate amount of $2.7 billion in 2005.The proceeds of the ERBs were used by PERF to purchase from the Utility the right, known as recovery property, to be paid a specified amount from a dedicated rate component.The total amount of ERB principal outstanding was $1.4billion at June 30, 2009. While PERF is a wholly owned subsidiary of the Utility, it is legally separate from the Utility.The assets, including the recovery property, of PERF are not available to creditors of the Utility or PGE Corporation, and the recovery property is not legally an asset of the Utility or PGE Corporation. |
6040 - EQUITY
6040 - EQUITY | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
EQUITY | |
Equity | NOTE 5: EQUITY PGE Corporations and the Utilitys changes in equity for the six months ended June 30, 2009 were as follows: PGE Corporation Utility (in millions) Total Equity Total Shareholders Equity Balance at December 31, 2008 $ 9,629 $ 9,787 Net income 636 630 Common stock issued 221 - Share-based compensation amortization 12 - Common stock dividends declared and paid (154 ) (312 ) Common stock dividends declared but not yet paid (155 ) - Preferred stock dividend requirement - (7 ) Preferred stock dividend requirement of subsidiary (7 ) - Tax benefit from employee stock plans 2 2 Other comprehensive income 14 14 Equity contribution - 653 Balance at June 30, 2009 $ 10,198 $ 10,767 For the six months ended June 30, 2009, PGE Corporation contributed equity of $653 million to the Utility in order to maintain the 52% common equity target authorized by the CPUC and to ensure that the Utility has adequate capital to fund its capital expenditures. Dividends During the six months ended June 30, 2009, the Utility paid common stock dividends totaling $312 million to PGE Corporation. During the six months ended June 30, 2009, PGE Corporation paid common stock dividends totaling $286 million, net of $11 million that was reinvested in additional shares of common stock by participants in thePGE Corporation Dividend Reinvestment and Stock Purchase Plan.On June 17, 2009, the Board of Directors of PGE Corporation declared a dividend of $0.42 per share, totaling $155 million, which was paid on July 15, 2009 to shareholders of record on June 30, 2009. During the six months ended June 30, 2009, the Utility paid cash dividends totaling $7 million to holders of its outstanding series of preferred stock.On June 17, 2009, the Board of Directors of the Utility declared a cash dividend totaling $3 million on its outstanding series of preferred stock, payable on August 15, 2009 to shareholders of record on July 31, 2009. |
6050 - EARNINGS PER SHARE
6050 - EARNINGS PER SHARE | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
EARNINGS PER SHARE | |
Earnings Per Share | NOTE 6: EARNINGS PER SHARE Earnings per common share (EPS) is calculated utilizing the two-class method, by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period.In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities.PGE Corporations Convertible Subordinated Notes are entitled to receive pass-through dividends and meet the criteria of a participating security.All PGE Corporations participating securities participate in dividends on a 1:1 basis with shares of common stock. The following is a reconciliation of PGE Corporations net income and weighted average shares of common stock outstanding for calculating basic and diluted net income per share: Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share amounts) 2009 2008 2009 2008 Income Available for Common Shareholders $ 388 $ 293 $ 629 $ 517 Less: distributed earnings to common shareholders 155 139 309 278 Undistributed earnings $ 233 $ 154 $ 320 $ 239 Common shareholders earnings Basic Distributed earnings to common shareholders $ 155 $ 139 $ 309 $ 278 Undistributed earnings allocated to common shareholders 223 146 306 227 Total common shareholders earnings, basic $ 378 $ 285 $ 615 $ 505 Diluted Distributed earnings to common shareholders $ 155 $ 139 $ 309 $ 278 Undistributed earnings allocated to common shareholders 223 146 306 227 Total common shareholders earnings, diluted $ 378 $ 285 $ 615 $ 505 Weighted average common shares outstanding, basic 368 356 366 355 9.50% Convertible Subordinated Notes 17 19 17 19 Weighted average common shares outstanding and participating securities, basic 385 375 383 374 Weighted average common shares outstanding, basic 368 356 366 355 Employee share-based compensation 1 1 1 1 Weighted average common shares outstanding, diluted 369 357 367 356 9.50% Convertible Subordinated Notes 17 19 17 19 Weighted average common shares outstanding and participating securities, diluted 386 376 384 375 Net earnings per common share, basic Distributed earnings, basic (1) $ 0.42 $ 0.39 $ 0.84 $ 0.78 Undistributed earnings, basic 0.61 0.41 0.84 0.64 Total $ 1.03 $ 0.80 $ 1.68 $ 1.42 Net earnings per common share, diluted Distributed earnings, diluted $ 0.42 $ 0.39 $ 0.84 $ 0.78 Undistributed earnings, diluted 0.60 0.41 0.83 0.64 Total $ 1.02 $ |
6060 - DERIVATIVES AND HEDGING
6060 - DERIVATIVES AND HEDGING ACTIVITIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
DERIVATIVES AND HEDGING ACTIVITIES | |
Derivatives and Hedging Activities | NOTE 7: DERIVATIVES AND HEDGING ACTIVITIES Use of Derivative Instruments The Utility faces market risk primarily related to electricity and natural gas commodity prices.The CPUC and the FERC allow the Utility to collect customer rates designed to recover the Utilitys reasonable costs of providing services, including the cost to obtain and deliver electricity and natural gas.As these costs are passed through to customers, the Utilitys earnings are not exposed to the commodity price risk inherent in the purchase and sale of electricity and natural gas.Therefore, substantially all of the Utilitys risk management activities involving derivatives occur to reduce the volatility of commodity costs on behalf of its customers. The Utility uses both derivative and nonderivative contracts in managing its customers exposure to commodity-related price risk, including: forward contracts that commit the Utility to purchase a commodity in the future; swap agreements that require payments to or from counterparties based upon the difference between two prices for a predetermined contractual quantity; option contracts that provide the Utility with the right to buy a commodity at a predetermined price; and futures contracts that are exchange-traded contracts that commit the Utility to purchase a commodity or make a cash settlement at a specified price and future date. These instruments are not held for speculative purposes and are subject to certain limitations imposed by regulatory requirements.These instruments enable the Utility to reduce the volatility associated with electricity and natural gas costs incurred by the Utility and charged to its customers through rates. Commodity-Related Price Risk As long as the ratemaking mechanisms discussed above remain in place and the Utilitys risk management activities are carried out in accordance with CPUC directives, the Utility expects to fully recover from customers in rates all costs related to commodity-related price risk-related derivative instruments.Therefore, in accordance with the provisions of SFAS No. 71, all unrealized gains and losses associated with the fair value of these derivative instruments, including those designated as cash flow hedges, are deferred and recorded within the Utilitys regulatory assets and liabilities on the Condensed Consolidated Balance Sheets.Net realized gains or losses on derivative instruments related to price risk for commodities are recorded in the cost of electricity or the cost of natural gas with corresponding increases or decreases to regulatory balancing accounts for recovery from customers. The following is a discussion of the Utilitys use of derivative instruments intended to mitigate commodity-related price risk for its customers. Electricity Procurement The Utility obtains electricity from a diverse mix of resources, including third-party power purchase agreements, amounts allocated under DWR contracts, and its own electricity generation facilities.The Utilitys third-party power purchase agreements are generally accounted for as leases, but certain third-party power purchase agreements are considered derivative instruments under |
6070 - FAIR VALUE MEASUREMENTS
6070 - FAIR VALUE MEASUREMENTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
FAIR VALUE MEASUREMENTS | |
Fair Value Measurements | NOTE 8: FAIR VALUE MEASUREMENTS SFAS No. 157 requires an entity to determine the fair value of certain assets and liabilities based on assumptions that market participants would use in pricing the assets or liabilities.SFAS No. 157 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value and gives precedence to observable inputs in determining fair value.An instruments level within the hierarchy is based on the lowest level of any significant input to the fair value measurement.See Note 12 of the Notes to the Consolidated Financial Statements in the 2008 Annual Report for further discussion of fair value measurements. The following table sets forth the fair value hierarchy by level of PGE Corporations and the Utilitys recurring fair value financial instruments at June 30, 2009.PGE Corporations and the Utilitys assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. PGE Corporation Fair Value Measurements at June 30, 2009 (in millions) Level 1 Level 2 Level 3 Total Assets: Money market investments (held by PGE Corporation) $ 176 $ - $ 5 $ 181 Nuclear decommissioning trusts Equity securities 977 - 5 982 U.S. government and agency issues 590 48 - 638 Municipal bonds and other - 178 - 178 Nuclear decommissioning trusts Total (1) 1,567 226 5 1,798 Rabbi trusts-Equity 70 - - 70 Long-term disability trust Equity 74 - 57 131 Corporate Debt Securities - - 24 24 Long-term disability trust Total 74 - 81 155 Assets Total $ 1,887 $ 226 $ 91 $ 2,204 Liabilities: Dividend participation rights $ - $ - $ 27 $ 27 Price risk management instruments(2) (22 ) 111 189 278 Other - - 3 3 Liabilities Total $ (22 ) $ 111 $ 219 $ 308 (1) Excludes deferred taxes on appreciation of investment value. (2) Balances include the impact of netting adjustments in accordance with the requirements of FIN 39-1 of $129 million to Level 1, $81 million to Level 2, and $168 million to Level 3. 27 Utility Fair Value Measurements at June 30, 2009 (in millions) Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts Equity securities $ 977 $ - $ 5 $ 982 U.S. government and agency issues 590 48 - 638 Municipal bonds and other - 178 - 178 Nuclear decommissioning trusts Total (1) 1,567 226 5 1,798 Long-term disability trust Equity 74 - 57 131 Corporate |
6080 - RELATED PARTY AGREEMENTS
6080 - RELATED PARTY AGREEMENTS AND TRANSACTIONS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
RELATED PARTY AGREEMENTS AND TRANSACTIONS | |
Related Party Agreements and Transactions | NOTE 9: RELATED PARTY AGREEMENTS AND TRANSACTIONS The Utility and other subsidiaries provide and receive various services to and from their parent, PGE Corporation, and among themselves.The Utility and PGE Corporation exchange administrative and professional services in support of operations.Services provided directly to PGE Corporation by the Utility are generally priced at the higher of fully loaded cost (i.e., direct cost of goods or services and allocation of overhead costs) or fair market value, depending on the nature of the services.Services provided directly to the Utility by PGE Corporation are generally priced at the lower of fully loaded cost or fair market value, depending on the nature and value of the services.PGE Corporation also allocates various corporate administrative and general costs to the Utility and other subsidiaries using agreed upon allocation factors, including the number of employees, operating expenses excluding fuel purchases, total assets, and other cost allocation methodologies.Management believes that the methods used to allocate expenses are reasonable and meet the reporting and accounting requirements of its regulatory agencies. The Utilitys significant related party transactions were as follows: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2009 2008 2009 2008 Utility revenues from: Administrative services provided to PGE Corporation $ 1 $ 1 $ 2 $ 2 Utility employee benefit due from PGE Corporation - - - - Utility expenses from: Administrative services receivedfrom PGE Corporation $ 14 $ 28 $ 33 $ 52 Utility employee benefit due to PGE Corporation 3 4 9 11 At June 30, 2009 and December 31, 2008, the Utility had a receivable of $27 million and $29 million, respectively, from PGE Corporation included in Accounts receivable Related parties and Other Noncurrent Assets Related parties receivable on the Utilitys Condensed Consolidated Balance Sheets, and a payable of $11 million and $25 million, respectively, to PGE Corporation included in Accounts payable Related parties on the Utilitys Condensed Consolidated Balance Sheets. |
6090 - RESOLUTION OF REMAINING
6090 - RESOLUTION OF REMAINING CHAPTER 11 DISPUTED CLAIMS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
RESOLUTION OF REMAINING CHAPTER 11 DISPUTED CLAIMS | |
Resolution of Remaining Chapter 11 Disputed Claims | NOTE 10: RESOLUTION OF REMAINING CHAPTER 11 DISPUTED CLAIMS Various electricity suppliers filed claims in the Utilitys proceeding under Chapter 11 seeking payment for energy supplied to the Utilitys customers through the wholesale electricity markets operated by the CAISO and the California Power Exchange (PX) between May 2000 and June 2001.These claims, which the Utility disputes, are being addressed in various FERC and judicial proceedings in which the State of California, the Utility, and other electricity purchasers are seeking refunds from electricity suppliers, including municipal and governmental entities, for overcharges incurred in the CAISO and the PX wholesale electricity markets between May 2000 and June 2001. While the FERC and judicial proceedings have been pending, the Utility entered into a number of settlements with various electricity suppliers to resolve some of these disputed claims and to resolve the Utilitys refund claims against these electricity suppliers.These settlement agreements provide that the amounts payable by the parties are, in some instances, subject to adjustment based on the outcome of the various refund offset and interest issues being considered by the FERC.The proceeds from these settlements, after deductions for contingencies based on the outcome of the various refund offset and interest issues being considered by the FERC, will continue to be refunded to customers in rates.Additional settlement discussions with other electricity suppliers are ongoing.Any net refunds, claim offsets, or other credits that the Utility receives from energy suppliers through resolution of the remaining disputed claims, either through settlement or the conclusion of the various FERC and judicial proceedings, will also be credited to customers. The following table presents the changes in the remaining disputed claims liability and interest accrued from December 31, 2008 to June 30, 2009: (in millions) Balance at December 31, 2008 $ 1,750 Interest accrued 34 Less: Settlements (32 ) Balance at June 30, 2009 $ 1,752 At June 30, 2009, the Utilitys net disputed claims liability was $1,752 million, consisting of $1,552 million of remaining disputed claims (classified on the Condensed Consolidated Balance Sheets within Accounts payable Disputed claims and customer refunds) and interest accrued at the FERC-ordered rate of $694 million (classified on the Condensed Consolidated Balance Sheets within Interest payable) offset by accounts receivable from the CAISO and the PX of $494 million (classified on the Condensed Consolidated Balance Sheets within Accounts receivable Customers). In connection with the Utilitys proceeding under Chapter 11, the Utility established an escrow account to fund future settlements and for the payment of disputed claims, which is included within Restricted cash on the Condensed Consolidated Balance Sheets.At June 30, 2009, the Utility held $1,214 million in escrow, including interest earned, for payment of the remaining net disputed claims. Interest accrues on the liability for disputed claims at the FERC-ordered rate, which is higher than the rat |
6100 - COMMITMENTS AND CONTINGE
6100 - COMMITMENTS AND CONTINGENCIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
COMMITMENTS AND CONTINGENCIES | |
Commitments and Contingencies | NOTE 11: COMMITMENTS AND CONTINGENCIES PGE Corporation and the Utility have substantial financial commitments in connection with agreements entered into to support the Utilitys operating activities.PGE Corporation and the Utility also have significant contingencies arising from their operations, including contingencies related to guarantees, regulatory proceedings, nuclear operations, environmental compliance and remediation, tax matters, and legal matters. 31 Commitments Utility Third-Party Power Purchase Agreements As part of the ordinary course of business, the Utility enters into various agreements to purchase power and electric capacity.The price of purchased power may be fixed or variable.Variable pricing is generally based on the current market price of either gas or electricity at the date of purchase.Forward prices at June 30, 2009 are used to determine the undiscounted future expected payments for contracts with variable pricing terms.At June 30, 2009, the undiscounted future expected power purchase agreement payments were as follows: (in millions) 2009 $ 1,093 2010 2,158 2011 2,189 2012 2,206 2013 2,160 Thereafter 21,278 Total $ 31,084 Payments made by the Utility under power purchase agreements amounted to $1,154 million and $2,284 million for the six months ended June 30, 2009 and June 30, 2008, respectively.The amounts above do not include payments related to the DWR purchases for the benefit of the Utilitys customers, as the Utility only acts as an agent for the DWR. Some of the power purchase agreements that the Utility entered into with independent power producers that are qualifying co-generation facilities and qualifying small power production facilities (QFs) are treated as capital leases.The following table shows the future fixed capacity payments due under the QF contracts that are treated as capital leases.(These amounts are also included in the third-party power purchase agreements table above.)The fixed capacity payments are discounted to their present value in the table below using the Utilitys incremental borrowing rate at the inception of the leases.The amount of this discount is shown in the table below as the Amount representing interest. (in millions) 2009 $ 29 2010 50 2011 50 2012 50 2013 50 Thereafter 206 Total fixed capacity payments 435 Less: Amount representing interest 100 Present value of fixed capacity payments $ 335 Minimum lease payments associated with the lease obligation are included in Cost of electricity on PGE Corporations and the Utilitys Condensed Consolidated Statements of Income.In accordance with SFAS No. 71, the timing of the Utilitys recognition of the lease expense conforms to the ratemaking treatment for the Utilitys recovery of the cost of electricity.The QF contracts that are treated as capital leases expire between April 2014 and September 2021. Capacity payments are based on the QFs total available capacity and contractual capacity commitment.Capacity payments may be adjusted if the QF exceeds or fails to meet perform |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Period End Date | 2009-06-30 |
Amendment Flag | false |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | PG&E Corporation | ||
Entity Central Index Key | 0001004980 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $14,179 | ||
Entity Common Stock, Shares Outstanding | 370,687,258 |