10-Q 1 form10q.htm FORM 10-Q


 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., 20549
FORM 10-Q

(Mark One)

 

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2015

OR

 

 

[  ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

 

For the transition period from ___________ to __________

 

 


Commission
File
Number
_______________

Exact Name of
Registrant
as Specified
in its Charter
_______________


State or Other
Jurisdiction of
Incorporation
______________


IRS Employer
Identification
Number
___________

 

 

 

 

1-12609

PG&E Corporation

California

94-3234914

1-2348

Pacific Gas and Electric Company

California

94-0742640

 

PG&E Corporation
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
________________________________________

Pacific Gas and Electric Company
77 Beale Street
P.O. Box 770000
San Francisco, California 94177

______________________________________

Address of principal executive offices, including zip code

 

PG&E Corporation
(415) 973-1000
________________________________________

Pacific Gas and Electric Company
(415) 973-7000
______________________________________

Registrant's telephone number, including area code

 

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.  [X] Yes     [  ] No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

PG&E Corporation:

[X] Yes [  ] No

Pacific Gas and Electric Company:

[X] Yes [  ] No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

PG&E Corporation:

[X] Large accelerated filer

[  ] Accelerated filer

 

[  ] Non-accelerated filer

[  ] Smaller reporting company

Pacific Gas and Electric Company:

[  ] Large accelerated filer

[  ] Accelerated filer

 

[X] Non-accelerated filer

[  ] Smaller reporting company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

PG&E Corporation:

[  ] Yes [X] No

Pacific Gas and Electric Company:

[  ] Yes [X] No

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common stock outstanding as of July 20,2015:

 

PG&E Corporation:

482,010,056

Pacific Gas and Electric Company:

264,374,809



PG&E CORPORATION AND
PACIFIC GAS AND ELECTRIC COMPANY
FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2015

 

TABLE OF CONTENTS

 

GLOSSARY

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PG&E CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

PACIFIC GAS AND ELECTRIC COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS

NOTE 4: DEBT

NOTE 5: EQUITY

NOTE 6: EARNINGS PER SHARE

NOTE 7: DERIVATIVES

NOTE 8: FAIR VALUE MEASUREMENTS

NOTE 9: CONTINGENCIES AND COMMITMENTS

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

OVERVIEW

RESULTS OF OPERATIONS

LIQUIDITY AND FINANCIAL RESOURCES

ENFORCEMENT AND LITIGATION MATTERS

RATEMAKING PROCEEDINGS

LEGISLATIVE AND REGULATORY INITIATIVES

Proposal for Electric Vehicle (EV) Infrastructure Development

ENVIRONMENTAL MATTERS

CONTRACTUAL COMMITMENTS

RISK MANAGEMENT ACTIVITIES

CRITICAL ACCOUNTING POLICIES

ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED

CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING STATEMENTS

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4. CONTROLS AND PROCEDURES

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 5. OTHER INFORMATION

ITEM 6. EXHIBITS

SIGNATURES



GLOSSARY

 

The following terms and abbreviations appearing in the text of this report have the meanings indicated below.

 

2014 Form 10-K

PG&E Corporation's and Pacific Gas and Electric Company's combined Annual Report on Form 10-K for the year ended December 31, 2014

AFUDC

allowance for funds used during construction

ASU

Accounting Standards Update issued by the FASB (see below)

CPUC

California Public Utilities Commission

CRRs

congestion revenue rights

DTSC

California Department of Toxic Substances Control

EPS

earnings per common share

EV

electric vehicle

FASB

Financial Accounting Standards Board

FERC

Federal Energy Regulatory Commission

GAAP

U.S. Generally Accepted Accounting Principles

GRC

general rate case

GT&S

gas transmission and storage

IRS

Internal Revenue Service

NRC

Nuclear Regulatory Commission

NTSB

National Transportation Safety Board

PSEP

pipeline safety enhancement plan

Regional Board

California Regional Water Control Board, Lahontan Region

SEC

U.S. Securities and Exchange Commission

SED

Safety and Enforcement Division of the CPUC, formerly known as the Consumer Protection and Safety Division or the CPSD

TO

transmission owner

TURN

The Utility Reform Network

Utility

Pacific Gas and Electric Company

VIE(s)

variable interest entity(ies)



PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

PG&E CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in millions, except per share amounts)

2015

 

2014

 

2015

 

2014

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

Electric

$

3,463 

 

$

3,233 

 

$

6,476 

 

$

6,234 

Natural gas

 

754 

 

 

719 

 

 

1,640 

 

 

1,609 

Total operating revenues

 

4,217 

 

 

3,952 

 

 

8,116 

 

 

7,843 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

Cost of electricity

 

1,277 

 

 

1,349 

 

 

2,277 

 

 

2,559 

Cost of natural gas

 

118 

 

 

200 

 

 

392 

 

 

560 

Operating and maintenance

 

1,484 

 

 

1,328 

 

 

3,407 

 

 

2,627 

Depreciation, amortization, and decommissioning

 

651 

 

 

557 

 

 

1,282 

 

 

1,095 

Total operating expenses

 

3,530 

 

 

3,434 

 

 

7,358 

 

 

6,841 

Operating Income

 

687 

 

 

518 

 

 

758 

 

 

1,002 

Interest income

 

3 

 

 

2 

 

 

4 

 

 

5 

Interest expense

 

(192)

 

 

(188)

 

 

(381)

 

 

(373)

Other income, net

 

18 

 

 

43 

 

 

76 

 

 

62 

Income Before Income Taxes

 

516 

 

 

375 

 

 

457 

 

 

696 

Income tax provision

 

110 

 

 

104 

 

 

17 

 

 

195 

Net Income

 

406 

 

 

271 

 

 

440 

 

 

501 

Preferred stock dividend requirement of subsidiary

 

4 

 

 

4 

 

 

7 

 

 

7 

Income Available for Common Shareholders

$

402 

 

$

267 

 

$

433 

 

$

494 

Weighted Average Common Shares Outstanding, Basic

 

480 

 

 

467 

 

 

479 

 

 

463 

Weighted Average Common Shares Outstanding, Diluted

 

483 

 

 

469 

 

 

483 

 

 

465 

Net Earnings Per Common Share, Basic

$

0.84 

 

$

0.57 

 

$

0.90 

 

$

1.07 

Net Earnings Per Common Share, Diluted

$

0.83 

 

$

0.57 

 

$

0.90 

 

$

1.06 

Dividends Declared Per Common Share

$

0.46 

 

$

0.46 

 

$

0.91 

 

$

0.91 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PG&E CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in millions)

2015

 

2014

 

2015

 

2014

Net Income

$

406 

 

$

271 

 

$

440 

 

$

501 

Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

Pension and other postretirement benefit plans obligations

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, $0 and $0, at respective dates)

 

- 

 

 

- 

 

 

- 

 

 

- 

Net change in investments

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $7, $12 and $3, at respective dates)

 

- 

 

 

(11)

 

 

(17)

 

 

(6)

Total other comprehensive income (loss)

 

- 

 

 

(11)

 

 

(17)

 

 

(6)

Comprehensive Income

 

406 

 

 

260 

 

 

423 

 

 

495 

Preferred stock dividend requirement of subsidiary

 

4 

 

 

4 

 

 

7 

 

 

7 

Comprehensive Income Attributable to

 

 

 

 

 

 

 

 

 

 

 

Common Shareholders

$

402 

 

$

256 

 

$

416 

 

$

488 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PG&E CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

 

Balance At

 

June 30,

 

December 31,

(in millions)

2015

 

2014

ASSETS

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

249 

 

$

151 

Restricted cash

 

287 

 

 

298 

Accounts receivable:

 

 

 

 

 

Customers (net of allowance for doubtful accounts of $56 and $66

 

 

 

 

 

   at respective dates)

 

1,049 

 

 

960 

Accrued unbilled revenue

 

936 

 

 

776 

Regulatory balancing accounts

 

2,204 

 

 

2,266 

Other

 

352 

 

 

377 

Regulatory assets

 

441 

 

 

444 

Inventories:

 

 

 

 

 

Gas stored underground and fuel oil

 

141 

 

 

172 

Materials and supplies

 

315 

 

 

304 

Income taxes receivable

 

192 

 

 

198 

Other

 

280 

 

 

443 

Total current assets

 

6,446 

 

 

6,389 

Property, Plant, and Equipment

 

 

 

 

 

Electric

 

46,687 

 

 

45,162 

Gas

 

16,208 

 

 

15,678 

Construction work in progress

 

2,075 

 

 

2,220 

Other

 

2 

 

 

2 

Total property, plant, and equipment

 

64,972 

 

 

63,062 

Accumulated depreciation

 

(19,962)

 

 

(19,121)

Net property, plant, and equipment

 

45,010 

 

 

43,941 

Other Noncurrent Assets

 

 

 

 

 

Regulatory assets

 

6,476 

 

 

6,322 

Nuclear decommissioning trusts

 

2,504 

 

 

2,421 

Income taxes receivable

 

94 

 

 

91 

Other

 

1,101 

 

 

963 

Total other noncurrent assets

 

10,175 

 

 

9,797 

TOTAL ASSETS

$

61,631 

 

$

60,127 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PG&E CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

 

Balance At

 

June 30,

 

December 31,

(in millions, except share amounts)

2015

 

2014

LIABILITIES AND EQUITY

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Short-term borrowings

$

1,016 

 

$

633 

Accounts payable:

 

 

 

 

 

Trade creditors

 

1,178 

 

 

1,244 

Regulatory balancing accounts

 

876 

 

 

1,090 

Other

 

458 

 

 

476 

Disputed claims and customer refunds

 

448 

 

 

434 

Interest payable

 

203 

 

 

197 

Other

 

2,123 

 

 

1,846 

Total current liabilities

 

6,302 

 

 

5,920 

Noncurrent Liabilities

 

 

 

 

 

Long-term debt

 

15,544 

 

 

15,050 

Regulatory liabilities

 

6,330 

 

 

6,290 

Pension and other postretirement benefits

 

2,536 

 

 

2,561 

Asset retirement obligations

 

3,609 

 

 

3,575 

Deferred income taxes

 

8,732 

 

 

8,513 

Other

 

2,307 

 

 

2,218 

Total noncurrent liabilities

 

39,058 

 

 

38,207 

Commitments and Contingencies (Note 9)

 

 

 

 

 

Equity

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

Common stock, no par value, authorized 800,000,000 shares;

 

 

 

 

 

481,575,453 and 475,913,404 shares outstanding at respective dates

 

10,717 

 

 

10,421 

Reinvested earnings

 

5,308 

 

 

5,316 

Accumulated other comprehensive income (loss)

 

(6)

 

 

11 

Total shareholders' equity

 

16,019 

 

 

15,748 

Noncontrolling Interest - Preferred Stock of Subsidiary

 

252 

 

 

252 

Total equity

 

16,271 

 

 

16,000 

TOTAL LIABILITIES AND EQUITY

$

61,631 

 

$

60,127 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PG&E CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

Six Months Ended June 30,

(in millions)

2015

 

2014

Cash Flows from Operating Activities

 

 

 

 

 

Net income

$

440 

 

$

501 

Adjustments to reconcile net income to net cash provided by

 

 

 

 

 

operating activities:

 

 

 

 

 

Depreciation, amortization, and decommissioning

 

1,282 

 

 

1,095 

Allowance for equity funds used during construction

 

(53)

 

 

(46)

Deferred income taxes and tax credits, net

 

219 

 

 

51 

Disallowed capital expenditures

 

128 

 

 

- 

Other

 

149 

 

 

139 

Effect of changes in operating assets and liabilities:

 

 

 

 

 

     Accounts receivable

 

(241)

 

 

(30)

     Inventories

 

20 

 

 

(7)

     Accounts payable

 

78 

 

 

(101)

     Income taxes receivable/payable

 

6 

 

 

(39)

     Other current assets and liabilities

 

77 

 

 

94 

     Regulatory assets, liabilities, and balancing accounts, net

 

(62)

 

 

(311)

     Other noncurrent assets and liabilities

 

(184)

 

 

(66)

Net cash provided by operating activities

 

1,859 

 

 

1,280 

Cash Flows from Investing Activities

 

 

 

 

 

Capital expenditures

 

(2,410)

 

 

(2,320)

Decrease in restricted cash

 

11 

 

 

2 

Proceeds from sales and maturities of nuclear decommissioning

 

 

 

 

 

     trust investments

 

779 

 

 

877 

Purchases of nuclear decommissioning trust investments

 

(879)

 

 

(873)

Other

 

13 

 

 

21 

Net cash used in investing activities

 

(2,486)

 

 

(2,293)

Cash Flows from Financing Activities

 

 

 

 

 

Repayments under revolving credit facilities

 

- 

 

 

(260)

Net issuances of commercial paper, net of discount of $2

 

 

 

 

 

     and $1 at respective dates

 

681 

 

 

237 

Proceeds from issuance of short-term debt, net of issuance costs

 

- 

 

 

300 

Short-term debt matured

 

(300)

 

 

- 

Proceeds from issuance of long-term debt, net of premium, discount,

 

 

 

 

 

    and issuance costs of $14 at respective dates

 

486 

 

 

1,236 

Repayments of long-term debt

 

- 

 

 

(889)

Common stock issued

 

252 

 

 

589 

Common stock dividends paid

 

(424)

 

 

(408)

Other

 

30 

 

 

44 

Net cash provided by financing activities

 

725 

 

 

849 

Net change in cash and cash equivalents

 

98 

 

 

(164)

Cash and cash equivalents at January 1

 

151 

 

 

296 

Cash and cash equivalents at June 30

$

249 

 

$

132 

 



 

Supplemental disclosures of cash flow information

 

 

 

 

 

Cash paid for:

 

 

 

 

 

Interest, net of amounts capitalized

$

(334)

 

$

(318)

Income taxes, net

 

- 

 

 

(1)

Supplemental disclosures of noncash investing and financing activities

 

 

 

 

 

Common stock dividends declared but not yet paid

$

219 

 

$

215 

Capital expenditures financed through accounts payable

 

177 

 

 

224 

Noncash common stock issuances

 

10 

 

 

10 

Terminated capital leases

 

- 

 

 

68 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PACIFIC GAS AND ELECTRIC COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

 

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in millions)

2015

 

2014

 

2015

 

2014

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

Electric

$

3,462 

 

$

3,232 

 

$

6,476 

 

$

6,232 

Natural gas

 

754 

 

 

719 

 

 

1,640 

 

 

1,609 

Total operating revenues

 

4,216 

 

 

3,951 

 

 

8,116 

 

 

7,841 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

Cost of electricity

 

1,277 

 

 

1,349 

 

 

2,277 

 

 

2,559 

Cost of natural gas

 

118 

 

 

200 

 

 

392 

 

 

560 

Operating and maintenance

 

1,483 

 

 

1,321 

 

 

3,406 

 

 

2,618 

Depreciation, amortization, and decommissioning

 

651 

 

 

556 

 

 

1,282 

 

 

1,094 

Total operating expenses

 

3,529 

 

 

3,426 

 

 

7,357 

 

 

6,831 

Operating Income

 

687 

 

 

525 

 

 

759 

 

 

1,010 

Interest income

 

3 

 

 

3 

 

 

4 

 

 

5 

Interest expense

 

(189)

 

 

(185)

 

 

(376)

 

 

(364)

Other income, net

 

20 

 

 

17 

 

 

46 

 

 

37 

Income Before Income Taxes

 

521 

 

 

360 

 

 

433 

 

 

688 

Income tax provision

 

115 

 

 

110 

 

 

23 

 

 

210 

Net Income

 

406 

 

 

250 

 

 

410 

 

 

478 

Preferred stock dividend requirement

 

4 

 

 

4 

 

 

7 

 

 

7 

Income Available for Common Stock

$

402 

 

$

246 

 

$

403 

 

$

471 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PACIFIC GAS AND ELECTRIC COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

(Unaudited)

 

Three Months Ended

 

 

Six Months Ended

 

June 30,

 

 

June 30,

(in millions)

2015

 

2014

 

 

2015

 

2014

Net Income

$

406 

 

$

250 

 

$

410 

 

$

478 

Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

Pension and other postretirement benefit plans obligations

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, $0 and $0, at respective dates )

 

- 

 

 

- 

 

 

- 

 

 

- 

Total other comprehensive income (loss)

 

- 

 

 

- 

 

 

- 

 

 

- 

Comprehensive Income

$

406 

 

$

250 

 

$

410 

 

$

478 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to the Consolidated Financial Statements.



PACIFIC GAS AND ELECTRIC COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

 

Balance At

 

June 30,

 

December 31,

(in millions)

2015

 

2014

ASSETS

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

148 

 

$

55 

Restricted cash

 

287 

 

 

298 

Accounts receivable:

 

 

 

 

 

Customers (net of allowance for doubtful accounts of $56 and $66

 

 

 

 

 

  at respective dates)

 

1,049 

 

 

960 

Accrued unbilled revenue

 

936 

 

 

776 

Regulatory balancing accounts

 

2,204 

 

 

2,266 

Other

 

351 

 

 

375 

Regulatory assets

 

441 

 

 

444 

Inventories:

 

 

 

 

 

Gas stored underground and fuel oil

 

141 

 

 

172 

Materials and supplies

 

315 

 

 

304 

Income taxes receivable

 

160 

 

 

168 

Other

 

280 

 

 

409 

Total current assets

 

6,312 

 

 

6,227 

Property, Plant, and Equipment

 

 

 

 

 

Electric

 

46,687 

 

 

45,162 

Gas

 

16,208 

 

 

15,678 

Construction work in progress

 

2,075 

 

 

2,220 

Total property, plant, and equipment

 

64,970 

 

 

63,060 

Accumulated depreciation

 

(19,961)

 

 

(19,120)

Net property, plant, and equipment

 

45,009 

 

 

43,940 

Other Noncurrent Assets

 

 

 

 

 

Regulatory assets

 

6,476 

 

 

6,322 

Nuclear decommissioning trusts

 

2,504 

 

 

2,421 

Income taxes receivable

 

94 

 

 

91 

Other

 

998 

 

 

864 

Total other noncurrent assets

 

10,072 

 

 

9,698 

TOTAL ASSETS

$

61,393 

 

$

59,865 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PACIFIC GAS AND ELECTRIC COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Unaudited)

 

Balance At

 

June 30,

 

December 31,

(in millions, except share amounts)

2015

 

2014

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Short-term borrowings

$

1,011 

 

$

633 

Accounts payable:

 

 

 

 

 

Trade creditors

 

1,177 

 

 

1,243 

Regulatory balancing accounts

 

876 

 

 

1,090 

Other

 

482 

 

 

444 

Disputed claims and customer refunds

 

448 

 

 

434 

Interest payable

 

200 

 

 

195 

Other

 

1,899 

 

 

1,604 

Total current liabilities

 

6,093 

 

 

5,643 

Noncurrent Liabilities

 

 

 

 

 

Long-term debt

 

15,194 

 

 

14,700 

Regulatory liabilities

 

6,330 

 

 

6,290 

Pension and other postretirement benefits

 

2,449 

 

 

2,477 

Asset retirement obligations

 

3,609 

 

 

3,575 

Deferred income taxes

 

8,992 

 

 

8,773 

Other

 

2,263 

 

 

2,178 

Total noncurrent liabilities

 

38,837 

 

 

37,993 

Commitments and Contingencies (Note 9)

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

Preferred stock

 

258 

 

 

258 

Common stock, $5 par value, authorized 800,000,000 shares;

 

 

 

 

 

264,374,809 shares outstanding at respective dates

 

1,322 

 

 

1,322 

Additional paid-in capital

 

6,703 

 

 

6,514 

Reinvested earnings

 

8,175 

 

 

8,130 

Accumulated other comprehensive income

 

5 

 

 

5 

Total shareholders' equity

 

16,463 

 

 

16,229 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

61,393 

 

$

59,865 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



PACIFIC GAS AND ELECTRIC COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

(Unaudited)

 

Six Months Ended June 30,

(in millions)

2015

 

2014

Cash Flows from Operating Activities

 

 

 

 

 

Net income

$

410 

 

$

478 

Adjustments to reconcile net income to net cash provided by

 

 

 

 

 

operating activities:

 

 

 

 

 

Depreciation, amortization, and decommissioning

 

1,282 

 

 

1,094 

Allowance for equity funds used during construction

 

(53)

 

 

(46)

Deferred income taxes and tax credits, net

 

219 

 

 

18 

    Disallowed capital expenditures

 

128 

 

 

- 

    Other

 

119 

 

 

108 

Effect of changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(242)

 

 

(31)

Inventories

 

20 

 

 

(7)

Accounts payable

 

134 

 

 

(72)

Income taxes receivable/payable

 

8 

 

 

(35)

Other current assets and liabilities

 

67 

 

 

141 

Regulatory assets, liabilities, and balancing accounts, net

 

(62)

 

 

(311)

        Other noncurrent assets and liabilities

 

(170)

 

 

(76)

Net cash provided by operating activities

 

1,860 

 

 

1,261 

Cash Flows from Investing Activities

 

 

 

 

 

Capital expenditures

 

(2,410)

 

 

(2,320)

Decrease in restricted cash

 

11 

 

 

2 

Proceeds from sales and maturities of nuclear decommissioning

 

 

 

 

 

trust investments

 

779 

 

 

877 

Purchases of nuclear decommissioning trust investments

 

(879)

 

 

(873)

Other

 

13 

 

 

17 

Net cash used in investing activities

 

(2,486)

 

 

(2,297)

Cash Flows from Financing Activities

 

 

 

 

 

Net issuances of commercial paper, net of discount of $2 and $1

 

 

 

 

 

   at respective dates

 

676 

 

 

125 

Proceeds from issuance of short-term debt, net of issuance costs

 

- 

 

 

300 

Short-term debt matured

 

(300)

 

 

- 

Proceeds from issuance of long-term debt, net of premium, discount,

 

 

 

 

 

and issuance costs of $14 and $11 at respective dates

 

486 

 

 

889 

Repayments of long-term debt

 

- 

 

 

(539)

Preferred stock dividends paid

 

(7)

 

 

(7)

Common stock dividends paid

 

(358)

 

 

(358)

Equity contribution from PG&E Corporation

 

185 

 

 

580 

Other

 

37 

 

 

51 

Net cash provided by financing activities

 

719 

 

 

1,041 

Net change in cash and cash equivalents

 

93 

 

 

5 

Cash and cash equivalents at January 1

 

55 

 

 

65 

Cash and cash equivalents at June 30

$

148 

 

$

70 

 



 

Supplemental disclosures of cash flow information

 

 

 

 

 

Cash paid for:

 

 

 

 

 

Interest, net of amounts capitalized

$

(330)

 

$

(307)

Income taxes, net

 

- 

 

 

(1)

Supplemental disclosures of noncash investing and financing activities

 

 

 

 

 

Capital expenditures financed through accounts payable

$

177 

 

$

224 

Terminated capital leases

 

- 

 

 

68 

 

 

 

 

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.



NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

 

NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION

 

PG&E Corporation is a holding company whose primary operating subsidiary is Pacific Gas and Electric Company, a public utility operating in northern and central California.  The Utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers.  The Utility is primarily regulated by the CPUC and the FERC.  In addition, the NRC oversees the licensing, construction, operation, and decommissioning of the Utility’s nuclear generation facilities. 

 

On April 9, 2015, the CPUC approved  final decisions in the three investigations pending against the Utility relating to (1) the Utility’s safety recordkeeping for its natural gas transmission system, (2) the Utility’s operation of its natural gas transmission pipeline system in or near locations of higher population density, and (3) the Utility’s pipeline installation, integrity management, recordkeeping and other operational practices, and other events or courses of conduct, that could have led to or contributed to the natural gas explosion that occurred in the City of San Bruno, California on September 9, 2010.  A decision was issued in each investigative proceeding to determine the violations that the Utility committed.  The CPUC also approved a fourth decision (the “Penalty Decision”) which imposes penalties on the Utility totaling $1.6 billion comprised of: (1) a $300 million fine to be paid to the State General Fund, (2) a one-time $400 million bill credit to the Utility’s natural gas customers, (3) $850 million to fund future pipeline safety projects and programs, and (4) remedial measures that the CPUC estimates will cost the Utility at least $50 million. The Penalty Decision requires that at least $688.5 million of the $850 million be allocated to capital expenditures and that the Utility be precluded from including these capital costs in rate base.  The remainder will be allocated to safety-related expenses.  (See Note 9.)

 

This quarterly report on Form 10-Q is a combined report of PG&E Corporation and the Utility.  PG&E Corporation’s Condensed Consolidated Financial Statements include the accounts of PG&E Corporation, the Utility, and other wholly owned and controlled subsidiaries.  The Utility’s Condensed Consolidated Financial Statements include the accounts of the Utility and its wholly owned and controlled subsidiaries.  All intercompany transactions have been eliminated in consolidation.  The Notes to the Condensed Consolidated Financial Statements apply to both PG&E Corporation and the Utility.  PG&E Corporation and the Utility operate in one segment.

 

The accompanying Condensed Consolidated Financial Statements have been prepared in conformity with GAAP and in accordance with the interim period reporting requirements of Form 10-Q and reflect all adjustments (consisting only of normal recurring adjustments) that management believes are necessary for the fair presentation of PG&E Corporation and the Utility’s financial condition, results of operations, and cash flows for the periods presented.  The information at December 31, 2014 in the Condensed Consolidated Balance Sheets included in this quarterly report was derived from the audited Consolidated Balance Sheets in the 2014 Form 10-K.  This quarterly report should be read in conjunction with the 2014 Form 10-K. 

 

The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities.  Some of the more significant estimates and assumptions relate to the Utility’s regulatory assets and liabilities, legal and regulatory contingencies, environmental remediation liabilities, asset retirement obligations, and pension and other postretirement benefit plans obligations.  Management believes that its estimates and assumptions reflected in the Condensed Consolidated Financial Statements are appropriate and reasonable.  Actual results could differ materially from those estimates.

 

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

 

The significant accounting policies used by PG&E Corporation and the Utility are discussed in Note 2 of the Notes to the Consolidated Financial Statements in the 2014 Form 10-K.

 

Variable Interest Entities

 

A VIE is an entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or whose equity investors lack any characteristics of a controlling financial interest.  An enterprise that has a controlling financial interest in a VIE is a primary beneficiary and is required to consolidate the VIE. 

 


Some of the counterparties to the Utility’s power purchase agreements are considered VIEs.  Each of these VIEs was designed to own a power plant that would generate electricity for sale to the Utility.  To determine whether the Utility was the primary beneficiary of any of these VIEs at June 30, 2015, it assessed whether it absorbs any of the VIE’s expected losses or receives any portion of the VIE’s expected residual returns under the terms of the power purchase agreement, analyzed the variability in the VIE’s gross margin, and considered whether it had any decision-making rights associated with the activities that are most significant to the VIE’s performance, such as dispatch rights and operating and maintenance activities.  The Utility’s financial obligation is limited to the amount the Utility pays for delivered electricity and capacity.  The Utility did not have any decision-making rights associated with any of the activities that are most significant to the economic performance of any of these VIEs.  Since the Utility was not the primary beneficiary of any of these VIEs at June 30, 2015, it did not consolidate any of them.

 

Pension and Other Postretirement Benefits

 

PG&E Corporation and the Utility sponsor a non-contributory defined benefit pension plan and cash balance plan.  Both plans are included in “Pension Benefits” below.  Post-retirement medical and life insurance plans are included in “Other Benefits” below.

 

The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three and six months ended June 30, 2015 and 2014 were as follows:

 

 

Pension Benefits

 

Other Benefits

 

Three Months Ended June 30,

(in millions)

2015

 

2014

 

2015

 

2014

Service cost for benefits earned

$

118 

 

$ 

96 

 

$ 

14 

 

$ 

11 

Interest cost

 

169 

 

 

173 

 

 

18 

 

 

19 

Expected return on plan assets

 

(218)

 

 

(201)

 

 

(28)

 

 

(26)

Amortization of prior service cost

 

3 

 

 

5 

 

 

5 

 

 

5 

Amortization of net actuarial loss

 

3 

 

 

1 

 

 

1 

 

 

1 

Net periodic benefit cost

 

75 

 

 

74 

 

 

10 

 

 

10 

Regulatory account transfer (1)

 

9 

 

 

9 

 

 

- 

 

 

- 

Total

$ 

84 

 

$ 

83 

 

$ 

10 

 

$ 

10 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates.

 

 

Pension Benefits

 

Other Benefits

 

Six Months Ended June 30,

(in millions)

2015

 

2014

 

2015

 

2014

Service cost for benefits earned

$

237 

 

$ 

195 

 

$ 

27 

 

$ 

22 

Interest cost

 

337 

 

 

346 

 

 

36 

 

 

38 

Expected return on plan assets

 

(436)

 

 

(403)

 

 

(56)

 

 

(52)

Amortization of prior service cost

 

7 

 

 

10 

 

 

10 

 

 

11 

Amortization of net actuarial loss

 

6 

 

 

1 

 

 

2 

 

 

1 

Net periodic benefit cost

 

151 

 

 

149 

 

 

19 

 

 

20 

Regulatory account transfer (1)

 

18 

 

 

19 

 

 

- 

 

 

- 

Total

$ 

169 

 

$ 

168 

 

$ 

19 

 

$ 

20 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates.

 

There was no material difference between PG&E Corporation and the Utility for the information disclosed above.


Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

 

The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) are summarized below:

 

 

Pension

 

Other

 

 

 

 

Benefits

 

Benefits

 

Total

(in millions, net of income tax)

Three Months Ended June 30, 2015

Beginning balance

$

(21)

 

$

15 

 

$

(6)

Amounts reclassified from other comprehensive income: (1)

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

 

 

 

 

 

 

 

(net of taxes of $1 and $2, respectively)

 

2 

 

 

3 

 

 

5 

Amortization of net actuarial loss

 

 

 

 

 

 

 

 

(net of taxes of $2 and $1, respectively)

 

1 

 

 

1 

 

 

2 

Regulatory account transfer

 

 

 

 

 

 

 

 

(net of taxes of $3 and $3, respectively)

 

(3)

 

 

(4)

 

 

(7)

Net current period other comprehensive loss

 

- 

 

 

- 

 

 

- 

Ending balance

$ 

(21)

 

$ 

15 

 

$ 

(6)

 

 

 

 

 

 

 

 

 

(1) These components are included in the computation of net periodic pension and other postretirement benefit costs.  (See the “Pension and Other Postretirement Benefits” table above for additional details.)

 

 

Pension

 

Other

 

Other

 

 

 

 

Benefits

 

Benefits

 

Investments

 

Total

(in millions, net of income tax)

Three Months Ended June 30, 2014

Beginning balance

$

(7)

 

$

15 

 

$

47 

 

$

55 

Other comprehensive income before reclassifications:

 

 

 

 

 

 

 

 

 

 

 

Change in investments

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, and $3, respectively)

 

- 

 

 

- 

 

 

5 

 

 

5 

Amounts reclassified from other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $2, $2, and $0, respectively) (1)

 

3 

 

 

3 

 

 

- 

 

 

6 

Amortization of net actuarial loss

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, and $0, respectively) (1)

 

1 

 

 

1 

 

 

- 

 

 

2 

Regulatory account transfer

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $2, $2, and $0, respectively) (1)

 

(4)

 

 

(4)

 

 

- 

 

 

(8)

Change in investments

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, and $10, respectively)

 

- 

 

 

- 

 

 

(16)

 

 

(16)

Net current period other comprehensive loss

 

- 

 

 

- 

 

 

(11)

 

 

(11)

Ending balance

$

(7)

 

$ 

15 

 

$ 

36 

 

$ 

44 

 

 

 

 

 

 

 

 

 

 

 

 

(1) These components are included in the computation of net periodic pension and other postretirement benefit costs.  (See the “Pension and Other Postretirement Benefits” table above for additional details.)

 

 


 

Pension

 

Other

 

Other

 

 

 

 

Benefits

 

Benefits

 

Investments

 

Total

(in millions, net of income tax)

Six Months Ended June 30, 2015

Beginning balance

$

(21)

 

$ 

15 

 

$

17 

 

$

11 

Amounts reclassified from other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $3, $4, and $0, respectively) (1)

 

4 

 

 

6 

 

 

- 

 

 

10 

Amortization of net actuarial loss

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $3, $1, and $0, respectively) (1)

 

3 

 

 

1 

 

 

- 

 

 

4 

Regulatory account transfer

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $6, $5, and $0, respectively) (1)

 

(7)

 

 

(7)

 

 

- 

 

 

(14)

Change in investments

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, and $12, respectively)

 

- 

 

 

- 

 

 

(17)

 

 

(17)

Net current period other comprehensive loss

 

- 

 

 

- 

 

 

(17)

 

 

(17)

Ending balance

$

(21)

 

$

15 

 

$

- 

 

$

(6)

 

 

 

 

 

 

 

 

 

 

 

 

(1) These components are included in the computation of net periodic pension and other postretirement benefit costs.  (See the “Pension and Other Postretirement Benefits” table above for additional details.)

 

 

Pension

 

Other

 

Other

 

 

 

 

Benefits

 

Benefits

 

Investments

 

Total

(in millions, net of income tax)

Six Months Ended June 30, 2014

Beginning balance

$

(7)

 

$

15 

 

$

42 

 

$

50 

Other comprehensive income before reclassifications:

 

 

 

 

 

 

 

 

 

 

 

Change in investments

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, and $7, respectively)

 

- 

 

 

- 

 

 

10 

 

 

10 

Amounts reclassified from other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

      Amortization of prior service cost

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $4, $4, and $0, respectively) (1)

 

6 

 

 

7 

 

 

- 

 

 

13 

      Amortization of net actuarial loss

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, and $0, respectively) (1)

 

1 

 

 

1 

 

 

- 

 

 

2 

     Regulatory account transfer

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $4, $4, and $0, respectively) (1)

 

(7)

 

 

(8)

 

 

- 

 

 

(15)

Change in investments

 

 

 

 

 

 

 

 

 

 

 

(net of taxes of $0, $0, and $10, respectively)

 

- 

 

 

- 

 

 

(16)

 

 

(16)

Net current period other comprehensive loss

 

- 

 

 

- 

 

 

(6)

 

 

(6)

Ending balance

$

(7)

 

$

15 

 

$

36 

 

$

44 

 

 

 

 

 

 

 

 

 

 

 

 

(1) These components are included in the computation of net periodic pension and other postretirement benefit costs.  (See the “Pension and Other Postretirement Benefits” table above for additional details.)

 

There was no material difference between PG&E Corporation and the Utility for the information disclosed above, with the exception of other investments which are held by PG&E Corporation.

 


Accounting Standards Issued But Not Yet Adopted

 

Fair Value Measurement

 

In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which standardizes reporting practices related to the fair value hierarchy for all investments for which fair value is measured using the net asset value per share. The accounting standards update will be effective for fiscal years beginning after December 15, 2015. PG&E Corporation and the Utility are currently evaluating the impact the guidance will have on their disclosures and will adopt this standard starting in the first quarter of 2016.

 

Accounting for Fees Paid in a Cloud Computing Arrangement

 

In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which adds guidance to help entities evaluate the accounting treatment for cloud computing arrangements.  The accounting standards update will be effective on January 1, 2016.  PG&E Corporation and the Utility are currently evaluating the impact the guidance will have on their consolidated financial statements and related disclosures and will adopt this standard starting in the first quarter of 2016.

 

Presentation of Debt Issuance Costs

 

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends existing presentation of debt issuance costs.  PG&E Corporation and the Utility currently disclose debt issuance costs in current assets – other and noncurrent assets – other.  The amendments in this Accounting Standard Update, effective on January 1, 2016, require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.  PG&E Corporation and the Utility do not expect this reclassification to have a material impact on their consolidated financial statements.  PG&E Corporation and the Utility will adopt this standard starting in the first quarter of 2016.

 

Revenue Recognition Standard

 

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which amends existing revenue recognition guidance. In July 2015, the FASB deferred the effective date of this amendment for public companies by one year to January 1, 2018, with early adoption permitted as of the original effective date of January 1, 2017. PG&E Corporation and the Utility are currently evaluating the impact the guidance will have on their consolidated financial statements and related disclosures.

 

NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS

 

Regulatory Assets

 

Long-term regulatory assets are composed of the following:

 

 

Balance at

 

June 30,

 

December 31,

(in millions)

2015

 

2014

Pension benefits

$

2,316 

 

$

2,347 

Deferred income taxes

 

2,649 

 

 

2,390 

Environmental compliance costs

 

686 

 

 

717 

Utility retained generation

 

434 

 

 

456 

Price risk management

 

142 

 

 

127 

Unamortized loss, net of gain, on reacquired debt

 

103 

 

 

113 

Electromechanical meters

 

36 

 

 

70 

Other

 

110 

 

 

102 

Total long-term regulatory assets

$

6,476 

 

$

6,322 

 


Regulatory Liabilities

 

Long-term regulatory liabilities are composed of the following:

 

 

Balance at

 

June 30,

 

December 31,

(in millions)

2015

 

2014

Cost of removal obligations

$

4,414 

 

$

4,211 

Recoveries in excess of asset retirement obligations

 

719 

 

 

754 

Public purpose programs

 

708 

 

 

701 

Other

 

489 

 

 

624 

Total long-term regulatory liabilities

$

6,330 

 

$

6,290 

 

Regulatory Balancing Accounts

 

The Utility’s recovery of revenue requirements and costs is generally decoupled from the volume of sales.  The Utility tracks (1) differences between the Utility’s authorized revenue requirement and customer billings, and (2) differences between incurred costs and customer billings.  To the extent these differences are probable of recovery or refund over the next 12 months, the Utility records a current regulatory balancing account receivable or payable.  Regulatory balancing accounts that the Utility expects to collect or refund over a period exceeding 12 months are recorded as other noncurrent assets – regulatory assets or noncurrent liabilities – regulatory liabilities, respectively, in the Condensed Consolidated Balance Sheets.  Balancing accounts will fluctuate during the year based on seasonal electric and gas usage and the timing of when costs are incurred and customer revenues are collected. 

 

Current regulatory balancing accounts receivable and payable are composed of the following:

 

 

Receivable

 

Balance at

 

June 30,

 

December 31,

(in millions)

2015

 

2014

Electric distribution

$

672 

 

$

344 

Utility generation

 

392 

 

 

261 

Gas distribution

 

504 

 

 

566 

Energy procurement

 

308 

 

 

608 

Public purpose programs

 

82 

 

 

109 

Other

 

246 

 

 

378 

Total regulatory balancing accounts receivable

$

2,204 

 

$

2,266 

 

 

Payable

 

Balance at

 

June 30,

 

December 31,

(in millions)

2015

 

2014

Energy procurement

$

173 

 

$

188 

Public purpose programs

 

177 

 

 

154 

Other (1)

 

526 

 

 

748 

Total regulatory balancing accounts payable

$

876 

 

$

1,090 

 

 

 

 

 

 

(1) At June 30, 2015 and December 31, 2014, Other regulatory balancing accounts payable mostly included energy supplier settlements related to the Utility’s outstanding bankruptcy claims.  (See “Resolution of Remaining Chapter 11 Disputed Claims” in Note 9 below).

 

 


NOTE 4: DEBT

 

Short-term Borrowings

 

Revolving Credit Facilities and Commercial Paper Program

 

On April 27, 2015, PG&E Corporation and the Utility amended and restated their respective $300 million and $3.0 billion revolving credit facilities that were entered into on April 1, 2013.  The amendments and restatements extended the termination dates of the credit facilities from April 1, 2019 to April 27, 2020, reduced the amount of lender commitments to the letter of credit sublimits from $100 million to $50 million for PG&E Corporation’s credit facility and from $1.0 billion to $500 million for the Utility’s credit facility, and reduced the swingline commitment on the Utility’s credit facility from $300 million to $75 million. 

 

The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings under their revolving credit facilities and commercial paper programs at June 30, 2015:

 

 

 

 

 

 

Letters of

 

 

 

 

 

Termination

 

Facility

 

Credit

 

Commercial

 

Facility

(in millions)

Date

 

Limit

 

Outstanding

 

Paper

 

Availability

PG&E Corporation

April 2020

 

$

300 

(1)

$

- 

 

$

5 

 

$

295 

Utility

April 2020

 

 

3,000 

(2)

 

33 

 

 

1,011 

 

 

1,956 

Total revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

credit facilities

 

 

$

3,300 

 

$

33 

 

$

1,016 

 

$

2,251 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Includes a $50 million sublimit for letters of credit and a $100 million commitment for “swingline” loans defined as loans that are made available on a same-day