| Exhibit 99.2 |
| Table 1: PG&E Corporation Business Priorities 2009 |
| Table 2: Reconciliation of PG&E Corporation’s Earnings from Operations to Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (GAAP) |
| Second Quarter and Year-to-Date, 2009 vs. 2008 |
| (in millions, except per share amounts) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
Earnings | Earnings per Common Share (Diluted) | Earnings | Earnings per Common Share (Diluted) | |||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||
PG&E Corporation Earnings from Operations (1) | $ | 315 | $ | 293 | $ | 0.83 | $ | 0.80 | $ | 561 | $ | 517 | $ | 1.49 | $ | 1.42 | ||||||||||||||||
Items Impacting Comparability: (2) | ||||||||||||||||||||||||||||||||
Tax refund (3) | 56 | - | 0.15 | - | 56 | - | 0.15 | - | ||||||||||||||||||||||||
Recovery of hydro divestiture costs (4) | 28 | - | 0.07 | - | 28 | - | 0.07 | - | ||||||||||||||||||||||||
Accelerated work on gas system (5) | (11 | ) | - | (0.03 | ) | - | (16 | ) | - | (0.04 | ) | - | ||||||||||||||||||||
| PG&E Corporation Earnings on a GAAP basis | $ | 388 | $ | 293 | $ | 1.02 | $ | 0.80 | $ | 629 | $ | 517 | $ | 1.67 | $ | 1.42 | ||||||||||||||||
| 1. | “Earnings from operations” is not calculated in accordance with GAAP and excludes items impacting comparability as described in Note (2) below. | |
| 2. | Items impacting comparability reconcile earnings from operations with Consolidated Income Available for Common Shareholders as reported in accordance with GAAP. | |
| 3. | For the three and six months ended June 30, 2009, PG&E Corporation recognized $56 million, after-tax, for the interest benefit related to the federal tax refund, as a result of the approval by the Joint Committee of Taxation of deferred gain treatment for power plant sales in 1998 and 1999. | |
| 4. | For the three and six months ended June 30, 2009, PG&E Corporation recognized $28 million, after-tax, related to the California Public Utilities Commission’s ("CPUC") authorized recovery of costs incurred in connection with efforts to determine the market value of hydroelectric generation facilities in 2000-2001. | |
| 5. | For the three and six months ended June 30, 2009, PG&E Corporation incurred $11 million and $16 million, respectively, after-tax, for costs to perform accelerated system-wide natural gas integrity surveys and associated remedial work. |
| Second Quarter and Year-to-Date, 2009 vs. 2008 |
| (in millions) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
Earnings | Earnings | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Pacific Gas and Electric Company Earnings from Operations (1) | $ | 314 | $ | 309 | $ | 555 | $ | 542 | ||||||||
Items Impacting Comparability: (2) | ||||||||||||||||
Tax Refund (3) | 56 | - | 56 | - | ||||||||||||
Recovery of hydro divestiture costs (4) | 28 | - | 28 | - | ||||||||||||
Accelerated work on gas system (5) | (11 | ) | - | (16 | ) | - | ||||||||||
Pacific Gas and Electric Company Earnings on a GAAP basis | $ | 387 | $ | 309 | $ | 623 | $ | 542 | ||||||||
| 1. | “Earnings from operations” is not calculated in accordance with GAAP and excludes items impacting comparability as described in Note (2) below. | |
| 2. | Items impacting comparability reconcile earnings from operations with Consolidated Income Available for Common Shareholders as reported in accordance with GAAP. | |
| 3. | For the three and six months ended June 30, 2009, Pacific Gas and Electric Company recognized $56 million, after-tax, for the interest benefit related to the federal tax refund, as a result of the approval by the Joint Committee of Taxation of deferred gain treatment for power plant sales in 1998 and 1999. | |
| 4. | For the three and six months ended June 30, 2009, Pacific Gas and Electric Company recognized $28 million, after-tax, related to the CPUC’s authorized recovery of costs incurred in connection with efforts to determine the market value of hydroelectric generation facilities in 2000-2001. | |
| 5. | For the three and six months ended June 30, 2009, Pacific Gas and Electric Company incurred $11 million and $16 million, respectively, after-tax, for costs to perform accelerated system-wide natural gas integrity surveys and associated remedial work. |
| Table 4: PG&E Corporation Earnings per Common Share ("EPS") from Operations |
| Second Quarter and Year-to-Date, 2009 vs. 2008 |
| ($/Share, Diluted) |
Q2 2008 EPS from Operations (1) | $ | 0.80 | ||
| Increase in rate base revenues | 0.06 | |||
| Miscellaneous items | 0.02 | |||
| Environmental remediation | (0.02 | ) | ||
| Increase in shares outstanding | (0.03 | ) | ||
Q2 2009 EPS from Operations (1) | $ | 0.83 | ||
Q2 2008 YTD EPS from Operations (1) | $ | 1.42 | ||
| Increase in rate base revenues | 0.13 | |||
Storm and outage expenses (2) | 0.07 | |||
| Severance | (0.01 | ) | ||
| Environmental remediation | (0.02 | ) | ||
| Uncollectibles expense, net | (0.02 | ) | ||
| Increase in shares outstanding | (0.04 | ) | ||
| Miscellaneous items | (0.04 | ) | ||
Q2 2009 YTD EPS from Operations (1) | $ | 1.49 | ||
| 1. | See Table 2 for a reconciliation of EPS from operations to EPS on a GAAP basis. |
| 2. | Costs incurred due to storms and outages in 2008 with no similar costs in 2009. |
Second Quarter 2009 | Second Quarter 2008 | % Change | ||||||||||
| Common Stock Data | ||||||||||||
Book Value per share – end of period (1) | $ | 25.77 | $ | 23.66 | 8.92 | % | ||||||
| Weighted average common shares outstanding, basic | 368 | 356 | 3.37 | % | ||||||||
| Employee share-based compensation | 1 | 1 | 0 | % | ||||||||
| Weighted average common shares outstanding, diluted | 369 | 357 | 3.36 | % | ||||||||
| 9.5% Convertible Subordinated Notes (participating securities) | 17 | 19 | (10.53 | %) | ||||||||
| Weighted average common shares outstanding and participating securities, diluted | 386 | 376 | 2.66 | % | ||||||||
| Table 6: Operational Performance Metrics |
| Second Quarter Year-to-Date Actual 2009 vs. Targets 2009 |
2009 | |||||||
Percentage Weight (1) | Q2 YTD Actual | Q2 YTD Target | EOY Target | ||||
1. | Earnings From Operations (in millions) | 50% | $561 | See note (2) | See note (2) | ||
2. | Customer Satisfaction & Brand Health Index (RI) | 17.5% | 76.8 | 76.1 | 76.1 | ||
3. | Reliable Energy Delivery | 17.5% | 1.171 | 1.000 | 1.000 | ||
4. | Employee Engagement Premier Survey | 5% | See note (3) | See note (3) | 69.5% | ||
5. | Safety Performance | 10% | 2.661 | 2.755 | 2.755 | ||
| 1. Represents weighting used in calculating PG&E Corporation Short-Term Incentive Plan performance for management employees. |
| 2. Internal target not publicly disclosed but is consistent with publicly disclosed guidance for 2009 EPS from operations of $3.15-$3.25. |
| 3. The Employee Engagement Premier Survey will be administered in December 2009 with results available in February 2010. |
| 1. | Earnings from Operations: | ||
Earnings from operations measures PG&E Corporation’s earnings power from ongoing core operations. It allows investors to compare the underlying financial performance of the business from one period to another, exclusive of items that management believes do not reflect the normal course of operations (items impacting comparability). The measurement is not in accordance with GAAP. For a reconciliation of earnings from operations to earnings in accordance with GAAP, see Tables 2 and 3 above. The 2009 target for earnings from operations is not publicly reported but is consistent with PG&E Corporation’s publicly disclosed guidance range provided for 2009 EPS from operations of $3.15-$3.25. For a reconciliation of 2009 EPS guidance on an earnings from operations basis to a GAAP basis, see Table 8. | |||
| 2. | Customer Satisfaction & Brand Health Index: | ||
| The Customer Satisfaction & Brand Health Index is a combination of a Customer Satisfaction Score, which has a 75 percent weighting and a Brand Favorability Score, which has a 25 percent weighting in the composite. The Customer Satisfaction Score is a measure of overall satisfaction with PG&E’s operational performance in delivering services such as reliability, pricing of services, and customer service experience. The Brand Favorability Score is a measure of the overall favorability towards the PG&E brand, and measures the emotional connection that customers have with the brand and is based on assessing perceptions regarding PG&E’s images, such as trust, heritage, and social responsibility. The Customer Satisfaction & Brand Health Index measures residential, small business, and medium business customer perceptions with weightings of 60 percent for residential customers and 40 percent for business customers. | |||
| 3. | Reliable Energy Delivery: | ||
Reliable Energy Delivery Index is a composite of three categories outlined below. Overall, these metrics provide a balanced view on the number and duration of electric system unplanned interruptions and performance improvement in the resurvey of the gas system. 1. System Average Interruption Frequency Index (SAIFI) 2. Customer Average Interruption Duration Index (CAIDI) 3. Gas Leak Re-Survey | |||
| 4. | Employee Engagement Premier Survey: | ||
| The average overall employee engagement score provides a comprehensive metric that is derived by averaging the percent favorable responses from 40 core survey items. | |||
| 5. | Safety Performance: | ||
| The Occupational Safety & Health Administration (OSHA) Recordable Rate measures the number of OSHA Recordable injuries, illnesses, or exposures that (1) satisfy OSHA requirements for recordability, and (2) occur in the current year. In general, an injury must result in medical treatment beyond first aid or result in work restrictions, death, or loss of consciousness to be OSHA Recordable. The rate measures how frequently OSHA Recordable cases occur for every 200,000 hours worked, or for approximately every 100 employees. | |||
| Table 7: Pacific Gas and Electric Company Operating Statistics |
| Second Quarter and Year-to-Date, 2009 vs. 2008 |
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Electric Sales (in millions kWh) | ||||||||||||||||
| Residential | 7,080 | 6,999 | 14,750 | 15,096 | ||||||||||||
| Commercial | 8,178 | 8,341 | 15,572 | 16,441 | ||||||||||||
| Industrial | 3,645 | 4,029 | 7,160 | 7,678 | ||||||||||||
| Agricultural | 1,622 | 1,521 | 2,341 | 2,215 | ||||||||||||
| BART, public street and highway lighting | 205 | 178 | 410 | 419 | ||||||||||||
| Other electric utilities | - | - | - | - | ||||||||||||
| Sales from Energy Deliveries | 20,730 | 21,068 | 40,233 | 41,849 | ||||||||||||
| Total Electric Customers at June 30 | 5,135,192 | 5,128,344 | ||||||||||||||
| Bundled Gas Sales (in millions MCF) | ||||||||||||||||
| Residential | 39 | 40 | 120 | 129 | ||||||||||||
| Commercial | 13 | 14 | 33 | 38 | ||||||||||||
| Total Bundled Gas Sales | 52 | 54 | 153 | 167 | ||||||||||||
| Transportation Only | 109 | 123 | 236 | 272 | ||||||||||||
| Total Gas Sales | 161 | 177 | 389 | 439 | ||||||||||||
| Total Gas Customers at June 30 | 4,268,352 | 4,267,579 | ||||||||||||||
| Sources of Electric Energy (in millions kWh) | ||||||||||||||||
| Utility Generation | ||||||||||||||||
| Nuclear | 4,871 | 4,532 | 8,062 | 7,859 | ||||||||||||
| Hydro (net) | 2,564 | 1,954 | 4,633 | 4,025 | ||||||||||||
| Fossil | 629 | 128 | 1,333 | 282 | ||||||||||||
| Total Utility Generation | 8,064 | 6,614 | 14,028 | 12,166 | ||||||||||||
| Purchased Power | ||||||||||||||||
| Qualifying Facilities | 3,642 | 4,227 | 7,282 | 8,305 | ||||||||||||
| Irrigation Districts | 1,054 | 681 | 1,355 | 967 | ||||||||||||
| Other Purchased Power | 2,215 | 7,229 | 8,598 | 14,291 | ||||||||||||
| CAISO Purchases/Sales, net | 2,577 | (277 | ) | 2,479 | (571 | ) | ||||||||||
| Total Net Purchased Power | 9,488 | 11,860 | 19,714 | 22,992 | ||||||||||||
| Delivery from DWR | 2,831 | 2,927 | 5,920 | 6,372 | ||||||||||||
| Delivery to Direct Access Customers | 1,341 | 1,550 | 2,669 | 3,059 | ||||||||||||
| Other (includes energy loss) | (994 | ) | (1,883 | ) | (2,098 | ) | (2,740 | ) | ||||||||
| Total Electric Energy Delivered | 20,730 | 21,068 | 40,233 | 41,849 | ||||||||||||
| Diablo Canyon Performance | ||||||||||||||||
| Overall capacity factor (including refuelings) | 100 | % | 92 | % | 83 | % | 81 | % | ||||||||
| Refueling outage period | None | 4/1/08-4/12/08 | 1/25/09-3/24/09 | 2/3/08-4/12/08 | ||||||||||||
| Refueling outage duration during the period (days) | None | 11.4 | 58.0 | 68.9 | ||||||||||||
| Table 8: PG&E Corporation EPS Guidance |
| 2009 EPS Guidance | Low | High | ||||||
EPS Guidance on an Earnings from Operations Basis | $ | 3.15 | $ | 3.25 | ||||
Estimated Items Impacting Comparability (1) | ||||||||
Tax refunds (2) | 0.15 | 0.15 | ||||||
Recovery of hydro divestiture costs (3) | 0.07 | 0.07 | ||||||
Accelerated work on gas system (4) | (0.16 | ) | (0.14 | ) | ||||
| Estimated EPS on a GAAP Basis | $ | 3.21 | $ | 3.33 | ||||
| 2010 EPS Guidance | Low | High | ||||||
EPS Guidance on an Earnings from Operations Basis | $ | 3.35 | $ | 3.50 | ||||
| Estimated Items Impacting Comparability | - | - | ||||||
| Estimated EPS on a GAAP Basis | $ | 3.35 | $ | 3.50 | ||||
| 2011 EPS Guidance | Low | High | ||||||
EPS Guidance on an Earnings from Operations Basis | $ | 3.65 | $ | 3.85 | ||||
| Estimated Items Impacting Comparability | - | - | ||||||
| Estimated EPS on a GAAP Basis | $ | 3.65 | $ | 3.85 | ||||
| 1. | Items impacting comparability reconcile earnings from operations with Consolidated Income Available for Common Shareholders in Accordance with GAAP. |
| 2. | In June 2009, the Joint Committee of Taxation approved deferred gain treatment for power plant sales in 1998 and 1999. This amount recognizes the interest benefit related to the federal tax refund. |
| 3. | On April 16, 2009, the CPUC authorized recovery of costs incurred in connection with efforts to determine the market value of hydroelectric generation facilities. |
| 4. | Forecast costs to perform accelerated system-wide gas integrity surveys and associated remedial work. |
| · | the Utility’s ability to manage capital expenditures and its operating and maintenance expenses within authorized levels; |
| · | the outcome of pending and future regulatory proceedings and whether the Utility is able to timely recover its costs through rates; |
| · | the adequacy and price of electricity and natural gas supplies, and the ability of the Utility to manage and respond to the volatility of the electricity and natural gas markets, including the ability of the Utility and its counterparties to post or return collateral; |
| · | the effect of weather, storms, earthquakes, floods, disease, other natural disasters, explosions, fires, accidents, mechanical breakdowns, disruption of information technology and computer systems, acts of terrorism, and other events or hazards on the Utility’s facilities and operations, its customers, and third parties on which the Utility relies; |
| · | the potential impacts of climate change on the Utility’s electricity and natural gas businesses; |
| · | changes in customer demand for electricity and natural gas resulting from unanticipated population growth or decline, general economic and financial market conditions, changes in technology, including the development of alternative energy sources, or other reasons; |
· | operating performance of the Diablo Canyon Power Plant (“Diablo Canyon”), the availability of nuclear fuel, the occurrence of unplanned outages at Diablo Canyon, or the temporary or permanent cessation of operations at Diablo Canyon; |
· | whether the Utility can maintain the cost savings that it has recognized from operating efficiencies that it has achieved and identify and successfully implement additional sustainable cost-saving measures; |
· | whether the Utility incurs substantial expense to improve the safety and reliability of its electric and natural gas systems; |
· | whether the Utility achieves the CPUC’s energy efficiency targets and recognizes any incentives that the Utility may earn in a timely manner; |
· | the impact of changes in federal or state laws, or their interpretation, on energy policy and the regulation of utilities and their holding companies; |
· | the impact of changing wholesale electric or gas market rules, including the impact of future Federal Energy Regulatory Commission-ordered changes that will be incorporated into the new day-ahead, hour-ahead, and real-time wholesale electricity markets established by the California Independent System Operator to restructure the California wholesale electricity market; |
· | how the CPUC administers the conditions imposed on PG&E Corporation when it became the Utility’s holding company; |
· | the extent to which PG&E Corporation or the Utility incurs costs and liabilities in connection with litigation that are not recoverable through rates, from insurance, or from other third parties; |
· | the ability of PG&E Corporation, the Utility, and counterparties to access capital markets and other sources of credit in a timely manner on acceptable terms; |
· | the impact of environmental laws and regulations and the costs of compliance and remediation; |
· | the effect of municipalization, direct access, community choice aggregation, or other forms of bypass; |
· | the outcome of federal or state tax audits and the impact of changes in federal or state tax laws, policies, or regulations; and |
· | other factors and risks discussed in PG&E Corporation and Pacific Gas and Electric Company’s 2008 Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. |
| 2008 | 2009 | 2010 | 2011 | |||||||||||||
Recorded | Estimated | Estimated | Estimated | |||||||||||||
| Total Weighted Average Rate Base (in billions) | $ | 18.2 | $ | 20.1 - $ 20.3 | $ | 22.1 - $ 22.4 | $ | 24.3 - $ 25.4 | ||||||||
Variable | Description of Change | Estimated 2009 Earnings Impact | Estimated 2010 Earnings Impact | Estimated 2011 Earnings Impact |
| Rate base | +/- $100 million change in rate base (1) | +/- $6 million | +/- $6 million | +/- $6 million |
| Return on equity (ROE) | +/- 0.1% change in allowed ROE | +/- $11 million | +/- $12 million | +/-$13 million |
| Share count | +/- 1% change in average shares | -/+ $0.03 per share | -/+ $0.03 per share | +/- $.04 per share |
| Revenues | +/- $7 million change in at-risk revenue (pre-tax), including Electric Transmission and California Gas Transmission | +/- $0.01 per share | +/- $0.01 per share | +/-$.01 per share |
| Cash and Cash Equivalents, December 31, 2008 | $ | 219 | ||
| Sources of Cash | ||||
| Cash from operations | $ | 1,754 | ||
| Proceeds from sale of assets | 5 | |||
| Decrease in restricted cash | 15 | |||
| Net proceeds from issuance of long-term debt | 884 | |||
| Net proceeds from issuance of short-term debt | 499 | |||
| Common stock issued | 182 | |||
| Other | 7 | |||
| $ | 3,346 | |||
| Uses of Cash | ||||
| Capital expenditures | $ | 2,077 | ||
| Investments in and proceeds from nuclear decommissioning trusts, net | 31 | |||
| Repayments of commercial paper, net | 47 | |||
| Long-term debt matured | 600 | |||
| Energy recovery bonds matured | 174 | |||
| Common stock dividends paid | 286 | |||
| Other | 12 | |||
| $ | 3,227 | |||
| Cash and Cash Equivalents, June 30, 2009 | $ | 338 |
2009 | 2008 | Change | ||||||||||
| Cash Flow from Operating Activities (YTD June 30) | ||||||||||||
| PG&E Corporation | $ | 104 | $ | (26 | ) | $ | 130 | |||||
| Pacific Gas and Electric Company | 1,650 | 2,274 | (624 | ) | ||||||||
| $ | 1,754 | $ | 2,248 | $ | (494 | ) | ||||||
| Consolidated Cash Balance (at June 30) | ||||||||||||
| PG&E Corporation | $ | 180 | $ | 228 | $ | (48 | ) | |||||
| Pacific Gas and Electric Company | 158 | 69 | 89 | |||||||||
| $ | 338 | $ | 297 | $ | 41 | |||||||
| Consolidated Restricted Cash Balance (at June 30) | ||||||||||||
| PG&E Corporation | $ | - | $ | - | $ | - | ||||||
Pacific Gas and Electric Company (1) | 1,296 | 1,341 | (45 | ) | ||||||||
| $ | 1,296 | $ | 1,341 | $ | (45 | ) | ||||||
| 1. Includes $11 million and $19 million of restricted cash classified as Other Noncurrent Assets – Other in the Condensed Consolidated Balance Sheets at June 30, 2009 and 2008, respectively. |
| Balance at | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
| PG&E Corporation | ||||||||
| Convertible subordinated notes, 9.50%, due 2010 | $ | 252 | $ | 280 | ||||
| Less: current portion | (252 | ) | - | |||||
| Total convertible subordinated notes | - | 280 | ||||||
| Senior notes, 5.75%, due 2014 | 350 | - | ||||||
| Unamortized discount | (2 | ) | - | |||||
| Total senior notes | 348 | 280 | ||||||
| Total PG&E Corporation long-term debt | 348 | 280 | ||||||
| Utility | ||||||||
| Senior notes: | ||||||||
| 3.60% due 2009 | - | 600 | ||||||
| 4.20% due 2011 | 500 | 500 | ||||||
| 6.25% due 2013 | 400 | 400 | ||||||
| 4.80% due 2014 | 1,000 | 1,000 | ||||||
| 5.625% due 2017 | 700 | 700 | ||||||
| 8.25% due 2018 | 800 | 800 | ||||||
| 6.05% due 2034 | 3,000 | 3,000 | ||||||
| 5.80% due 2037 | 700 | 700 | ||||||
| 6.35% due 2038 | 400 | 400 | ||||||
| 6.25% due 2039 | 550 | - | ||||||
| Less: current portion | - | (600 | ) | |||||
| Unamortized discount, net of premium | (28 | ) | (22 | ) | ||||
| Total senior notes | 8,022 | 7,478 | ||||||
| Pollution control bonds: | ||||||||
Series 1996 C, E, F, 1997 B, variable rates(1), due 2026(2) | 614 | 614 | ||||||
| Series 1996 A, 5.35%, due 2016 | 200 | 200 | ||||||
| Series 2004 A-D, 4.75%, due 2023 | 345 | 345 | ||||||
Series 2008 A-D, variable rates(3), due 2016 and 2026(4) | 309 | 309 | ||||||
Series 2008 F and G, 3.75%(5), due 2018 and 2026 | 95 | 95 | ||||||
| Total pollution control bonds | 1,563 | 1,563 | ||||||
| Total Utility long-term debt, net of current portion | 9,585 | 9,041 | ||||||
| Total consolidated long-term debt, net of current portion | $ | 9,933 | $ | 9,321 | ||||
(1) At June 30, 2009, interest rates on these bonds and the related loans ranged from 0.13% to 0.35%. | ||||||||
(2) Each series of these bonds is supported by a separate letter of credit which expires on February 24, 2012. Although the stated maturity date is 2026, each series will remain outstanding only if the Utility extends or replaces the letter of credit related to the series or otherwise obtains a consent from the issuer to the continuation of the series without a credit facility. | ||||||||
(3) At June 30, 2009, interest rates on these bonds and the related loans ranged from 0.18% to 0.30%. | ||||||||
(4) Each series of these bonds is supported by a separate direct-pay letter of credit which expires on October 29, 2011. The Utility may choose to provide a substitute letter of credit for any series of these bonds, subject to a rating requirement. | ||||||||
(5) These bonds bear interest at 3.75% per year through September 19, 2010, are subject to mandatory tender on September 10, 2010, and may be remarketed in a fixed or variable rate mode. | ||||||||
2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total | ||||||||||||||||||||||
| LONG-TERM DEBT: | ||||||||||||||||||||||||||||
| PG&E Corporation | ||||||||||||||||||||||||||||
| Average fixed interest rate | - | 9.50 | % | - | - | - | 5.75 | % | 7.32 | % | ||||||||||||||||||
| Fixed rate obligations | $ | - | $ | 252 | $ | - | $ | - | $ | - | $ | 350 | $ | 602 | ||||||||||||||
| Utility | ||||||||||||||||||||||||||||
| Average fixed interest rate | - | 3.75 | % | 4.20 | % | - | 6.25 | % | 6.01 | % | 5.89 | % | ||||||||||||||||
| Fixed rate obligations | $ | - | $ | 95 | $ | 500 | - | $ | 400 | $ | 7,695 | $ | 8,690 | |||||||||||||||
| Variable interest rate as of June 30, 2009 | - | - | 0.23 | % | 0.23 | % | - | - | 0.23 | % | ||||||||||||||||||
| Variable rate obligations | $ | - | $ | - | $ | 308 | (1) | $ | 614 | (2) | $ | - | $ | - | $ | 922 | ||||||||||||
| Total consolidated long-term debt | $ | - | $ | 347 | $ | 808 | $ | 614 | $ | 400 | $ | 8,045 | $ | 10,214 | ||||||||||||||
(1) These bonds, due in 2016-2026, are backed by a direct-pay letter of credit which expires on October 29, 2011. The bonds will be subject to a mandatory redemption unless the letter of credit is extended or replaced or the issuer consents to the continuation of these series without a credit facility. Accordingly, the bonds have been classified for repayment purposes in 2011. | ||||||||||||||||||||||||||||
(2) The $614 million pollution control bonds, due in 2026, are backed by letters of credit which expire on February 24, 2012. The bonds will be subject to a mandatory redemption unless the letters of credit are extended or replaced. Accordingly, the bonds have been classified for repayment purposes in 2012. | ||||||||||||||||||||||||||||
ENERGY RECOVERY BONDS (1): | 2009 | 2010 | 2011 | 2012 | Total | |||||||||
| Utility | ||||||||||||||
| Average fixed interest rate | 4.43% | 4.49% | 4.59% | 4.66% | 4.56% | |||||||||
| Energy recovery bonds | $ | 196 | $ 386 | $ | 404 | $ 423 | $ | 1,409 | ||||||
(1) These bonds were issued by PG&E Energy Recovery Funding LLC (“PERF”), a wholly owned consolidated subsidiary of Pacific Gas and Electric Company. The proceeds were used by PERF to purchase from Pacific Gas and Electric Company the right, known as "recovery property," to be paid a specified amount from a dedicated rate component. While PERF is a wholly owned subsidiary of Pacific Gas and Electric Company, it is legally separate from Pacific Gas and Electric Company. The assets, including recovery property, of PERF are not available to creditors of PG&E Corporation or Pacific Gas and Electric Company, and recovery property is not legally an asset of PG&E Corporation or Pacific Gas and Electric Company. | |||||||
| Name | Brief Description | Docket Number |
| Cost of Capital 2008 | CPUC proceeding to establish capital structure and cost of capital for the California investor-owned electric utilities. The CPUC issued a final decision on December 20, 2007, maintaining the Utility’s authorized return on equity (“ROE”) at 11.35% and its common equity ratio at 52%. | A.07-05-008 D.07-12-049 |
| Three-Year Cost of Capital Mechanism | On May 29, 2008, the CPUC adopted a uniform three-year cost of capital mechanism to replace the annual cost of capital proceeding. The Utility’s cost of capital, including an 11.35% ROE, is set until 2011 and will be changed before 2011 only if the annual automatic adjustment mechanism established by the CPUC is triggered. | D.08-05-035 |
| Proposed Electric Distribution Reliability Program (Cornerstone Improvement Program) | The Utility has requested the CPUC to authorize $2.1 billion in capital expenditures and operating and maintenance expense associated with the Utility’s proposed electric distribution reliability program over a six-year period beginning in 2010 through 2016. The requested amounts are incremental to amounts previously authorized for recovery in the 2007 General Rate Case and are incremental to amounts the Utility intends to request in its 2011 General Rate Case. Hearings have been scheduled to begin in August 2009 with a final decision scheduled to be issued in January 2010. | A.08-05-023 |
| SmartGrid Order Instituting Rulemaking | CPUC proceeding to consider the development of SmartGrid technologies in California. | R.08-12-009 |
| Energy Efficiency Order Instituting Rulemaking Post-2005 | CPUC proceeding to establish incentive ratemaking mechanisms for implementation of the utilities’ energy efficiency programs and to resolve the utilities’ claims for 2006-2008 shareholder incentives. On May 21, 2009, the CPUC was asked to approve a proposed settlement agreement that would resolve the utilities’ incentive claims based on 2006-2008 program performance. A CPUC decision is expected by December 2009. | R.09-01-019 D.08-12-059 |
| Photovoltaic Program | The Utility has requested the CPUC to approve a proposal to develop up to 250 MW of Utility-owned renewable generation resources based on solar photovoltaic (“PV”) technology and to execute power purchase agreements for up to 250 MW of PV projects to be developed by independent power producers. | A.09-02-019 |
| Retirement Plan Contribution Application | The Utility requested the CPUC approve a ratemaking mechanism to annually adjust gas and electric revenue requirements beginning in 2011 (outside of the 2011 General Rate Case) to ensure timely recovery of contributions to the Utility’s retirement plan. On July 31, 2009, the Utility and other parties requested the CPUC to approve an all-party settlement that would provide fixed pension-related revenue requirements for 2011, 2012 and 2013. | A.09-03-003 |
| Name | Brief Description | Docket Number |
SmartMeterTM Program Upgrade Application | On March 12, 2009, the CPUC approved the Utility’s request to upgrade elements of the SmartMeterTM program and to recover additional costs of $466.8 million related to the upgrade program. | A.07-12-009 D.09-03-026 |
| Request for New Generation Offers and Potential New Utility-Owned Generation | The Utility has developed a shortlist of participants who responded to the Utility’s request for offers solicitation for 800 to 1,200 megawatts of dispatchable and operationally flexible new generation resources to be on-line no later than May 2015. The Utility anticipates executing contracts and requesting CPUC approval of the executed contracts in the second half of 2009. | R.06-02-013 A.09-04-001 |
| Application to Recover Hydroelectric Generation Facility Divestiture Costs | On April 16, 2009, the CPUC authorized the Utility to recover approximately $47 million, including approximately $12 million of interest, of costs incurred in connection with the Utility’s efforts to determine the market value of its hydroelectric generation facilities in 2000 and 2001. | A.08-04-022 D.09-04-033 |
| Transmission Owner 11 Rate Case | On June 18, 2009, the FERC approved the settlement in the Utility’s Transmission Owner (“TO”) 11 rate case that set a retail base transmission revenue requirement of $776 million, effective March 1, 2009. | ER08-1318-000 |
| Transmission Owner 12 Rate Case | On July 30, 2009, the Utility filed its TO 12 rate case at the FERC, requesting a retail transmission revenue requirement of $946 million, with rates likely to be effective March 1, 2010. A final decision is expected in the second or third quarter of 2010. | ER09-1521-000 |
2011 General Rate Case | On July 20, 2009, the Utility submitted to the CPUC’s Division of Ratepayer Advocates a draft of the Utility’s 2011 General Rate Case (“GRC”) application along with a notice indicating that the Utility intends to file the application by December 1, 2009. In the 2011 GRC, the CPUC will determine the amount of base revenues that the Utility may collect in rates to recover costs for the Utility’s gas and electric distribution and electric generation operations for the period from 2011 to 2013. A CPUC decision is expected to be issued by the end of 2010. | Application to be filed in December 2009 |
| PG&E CORPORATION | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 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 | $ | 0.80 | $ | 1.68 | $ | 1.42 | ||||||||
| Net Earnings Per Common Share, Diluted | $ | 1.02 | $ | 0.80 | $ | 1.67 | $ | 1.42 | ||||||||
| Dividends Declared Per Common Share | $ | 0.42 | $ | 0.39 | $ | 0.84 | $ | 0.78 | ||||||||
(Unaudited) | ||||||||
Balance At | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
| ASSETS | ||||||||
| 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 | ||||
(Unaudited) | ||||||||
Balance At | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
| LIABILITIES AND EQUITY | ||||||||
| 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 | ||||||
| Commitments and Contingencies | ||||||||
| Equity | ||||||||
| Shareholders’ Equity | ||||||||
| Preferred stock, no par value, authorized 80,000,000 shares, $100 par value, authorized 5,000,000 shares, none issued | - | - | ||||||
| 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 | ||||
(Unaudited) | ||||||||
| Six Months Ended | ||||||||
June 30, | ||||||||
2009 | 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 | - | ||||||
| Net cash used in investing activities | (2,081 | ) | (1,736 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Net repayments under revolving credit facility | - | (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 | - | ||||||
| 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 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| 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 | ||||||
(Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 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 | 1,037 | 991 | 2,096 | 2,027 | ||||||||||||
| Depreciation, amortization, and decommissioning | 429 | 418 | 848 | 820 | ||||||||||||
| Total operating expenses | 2,537 | 2,993 | 5,455 | 6,233 | ||||||||||||
| Operating Income | 657 | 585 | 1,170 | 1,078 | ||||||||||||
| Interest income | 17 | 33 | 26 | 57 | ||||||||||||
| Interest expense | (166 | ) | (178 | ) | (339 | ) | (358 | ) | ||||||||
| Other income, net | 15 | 7 | 36 | 26 | ||||||||||||
| Income Before Income Taxes | 523 | 447 | 893 | 803 | ||||||||||||
| Income tax provision | 132 | 134 | 263 | 254 | ||||||||||||
| Net Income | 391 | 313 | 630 | 549 | ||||||||||||
| Preferred stock dividend requirement | 4 | 4 | 7 | 7 | ||||||||||||
| Income Available for Common Stock | $ | 387 | $ | 309 | $ | 623 | $ | 542 | ||||||||
(Unaudited) | ||||||||
Balance At | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 158 | $ | 52 | ||||
| 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 | ||||||
| Related parties | 1 | 2 | ||||||
| Regulatory balancing accounts | 1,304 | 1,197 | ||||||
| Inventories: | ||||||||
| Gas stored underground and fuel oil | 107 | 232 | ||||||
| Materials and supplies | 204 | 191 | ||||||
| Income taxes receivable | 120 | 25 | ||||||
| Prepaid expenses and other | 775 | 705 | ||||||
| Total current assets | 6,192 | 6,130 | ||||||
| Property, Plant, and Equipment | ||||||||
| Electric | 29,580 | 27,638 | ||||||
| Gas | 10,387 | 10,155 | ||||||
| Construction work in progress | 1,523 | 2,023 | ||||||
| Total property, plant, and equipment | 41,490 | 39,816 | ||||||
| Accumulated depreciation | (13,893 | ) | (13,557 | ) | ||||
| Net property, plant, and equipment | 27,597 | 26,259 | ||||||
| Other Noncurrent Assets | ||||||||
| Regulatory assets | 5,969 | 5,996 | ||||||
| Nuclear decommissioning funds | 1,740 | 1,718 | ||||||
| Related parties receivable | 26 | 27 | ||||||
| Income taxes receivable | 18 | - | ||||||
| Other | 382 | 407 | ||||||
| Total other noncurrent assets | 8,135 | 8,148 | ||||||
| TOTAL ASSETS | $ | 41,924 | $ | 40,537 | ||||
(Unaudited) | ||||||||
Balance At | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Short-term borrowings | $ | 743 | $ | 287 | ||||
| Long-term debt, classified as current | - | 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 | ||||||
| Related parties | 11 | 25 | ||||||
| Regulatory balancing accounts | 611 | 730 | ||||||
| Other | 366 | 325 | ||||||
| Interest payable | 836 | 802 | ||||||
| Income tax payable | - | 53 | ||||||
| Deferred income taxes | 430 | 257 | ||||||
| Other | 1,201 | 1,371 | ||||||
| Total current liabilities | 6,991 | 7,496 | ||||||
| Noncurrent Liabilities | ||||||||
| Long-term debt | 9,585 | 9,041 | ||||||
| Energy recovery bonds | 1,031 | 1,213 | ||||||
| Regulatory liabilities | 3,838 | 3,657 | ||||||
| Pension and other postretirement benefits | 2,127 | 2,040 | ||||||
| Asset retirement obligations | 1,539 | 1,684 | ||||||
| Income taxes payable | 3 | 12 | ||||||
| Deferred income taxes | 3,859 | 3,449 | ||||||
| Deferred tax credits | 91 | 94 | ||||||
| Other | 2,093 | 2,064 | ||||||
| Total noncurrent liabilities | 24,166 | 23,254 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity | ||||||||
| Preferred stock without mandatory redemption provisions: | ||||||||
| Nonredeemable, 5.00% to 6.00%, outstanding 5,784,825 shares | 145 | 145 | ||||||
| Redeemable, 4.36% to 5.00%, outstanding 4,534,958 shares | 113 | 113 | ||||||
| Common stock, $5 par value, authorized 800,000,000 shares, issued 264,374,809 shares in 2009 and 2008 | 1,322 | 1,322 | ||||||
| Additional paid-in capital | 2,986 | 2,331 | ||||||
| Reinvested earnings | 6,403 | 6,092 | ||||||
| Accumulated other comprehensive loss | (202 | ) | (216 | ) | ||||
| Total shareholders’ equity | 10,767 | 9,787 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 41,924 | $ | 40,537 | ||||
(Unaudited) | ||||||||
| Six Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net income | $ | 630 | $ | 549 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation, amortization, and decommissioning | 932 | 902 | ||||||
| Allowance for equity funds used during construction | (47 | ) | (32 | ) | ||||
| Deferred income taxes and tax credits, net | 368 | 316 | ||||||
| Other changes in noncurrent assets and liabilities | (34 | ) | 480 | |||||
| Effect of changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 199 | (66 | ) | |||||
| Inventories | 113 | (57 | ) | |||||
| Accounts payable | (140 | ) | 123 | |||||
| Income taxes receivable/payable | 64 | 57 | ||||||
| Regulatory balancing accounts, net | (228 | ) | (351 | ) | ||||
| Other current assets | 10 | 429 | ||||||
| Other current liabilities | (220 | ) | (73 | ) | ||||
| Other | 3 | (3 | ) | |||||
| Net cash provided by operating activities | 1,650 | 2,274 | ||||||
| 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 | ) | ||||
| Net cash used in investing activities | (2,088 | ) | (1,736 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Net repayments under revolving credit facility | - | (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 | - | ||||||
| Proceeds from issuance of long-term debt, net of premium, discount, and issuance costs of $12 million in 2009 and $2 million in 2008 | 538 | 598 | ||||||
| Long-term debt matured or repurchased | (600 | ) | (454 | ) | ||||
| Energy recovery bonds matured | (174 | ) | (165 | ) | ||||
| Preferred stock dividends paid | (7 | ) | (7 | ) | ||||
| Common stock dividends paid | (312 | ) | (284 | ) | ||||
| Equity contribution | 653 | 50 | ||||||
| Other | (6 | ) | 16 | |||||
| Net cash provided by (used in) financing activities | 544 | (610 | ) | |||||
| Net change in cash and cash equivalents | 106 | (72 | ) | |||||
| Cash and cash equivalents at January 1 | 52 | 141 | ||||||
| Cash and cash equivalents at June 30 | $ | 158 | $ | 69 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash received (paid) for: | ||||||||
| Interest, net of amounts capitalized | $ | (286 | ) | $ | (246 | ) | ||
| Income taxes, net | 70 | 60 | ||||||
| Supplemental disclosures of noncash investing and financing activities | ||||||||
| Capital expenditures financed through accounts payable | $ | 245 | $ | 180 | ||||
