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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Assets And Liabilities Measured At Fair Value On A Recurring Basis

	Fair Value Measurements
	At March 31, 2013
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	205	$	-	$	-	$	-		$	205
Nuclear decommissioning trusts
Money market investments		25		-		-		-			25
U.S. equity securities		984		10		-		-			994
Non-U.S. equity securities		394		-		-		-			394
U.S. government and agency securities		692		159		-		-			851
Municipal securities		-		65		-		-			65
Other fixed-income securities		-		177		-		-			177
Total nuclear decommissioning trusts ⁽²⁾		2,095		411		-		-			2,506
Price risk management instruments
(Note 7)
Electricity		4		53		76		7			140
Gas		-		4		2		(5	)		1
Total price risk management instruments		4		57		78		2			141
Rabbi trusts
Fixed-income securities		-		30		-		-			30
Life insurance contracts		-		72		-		-			72
Total rabbi trusts		-		102		-		-			102
Long-term disability trust
Money market investments		4		-		-		-			4
U.S. equity securities		-		12		-		-			12
Non-U.S. equity securities		-		12		-		-			12
Fixed-income securities		-		136		-		-			136
Total long-term disability trust		4		160		-		-			164
Total assets	$	2,308	$	730	$	78	$	2		$	3,118
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	89	$	119	$	153	$	(92	)	$	269
Gas		5		4		-		(5	)		4
Total liabilities	$	94	$	123	$	153	$	(97	)	$	273

⁽¹⁾ Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral.

⁽²⁾ Excludes $273 million at March 31, 2013 primarily related to deferred taxes on appreciation of investment value.

	Fair Value Measurements
	At December 31, 2012
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	209	$	-	$	-	$	-		$	209
Nuclear decommissioning trusts
Money market investments		21		-		-		-			21
U.S. equity securities		940		9		-		-			949
Non-U.S. equity securities		379		-		-		-			379
U.S. government and agency securities		681		139		-		-			820
Municipal securities		-		59		-		-			59
Other fixed-income securities		-		173		-		-			173
Total nuclear decommissioning trusts ⁽²⁾		2,021		380		-		-			2,401
Price risk management instruments
(Note 7)
Electricity		1		60		80		6			147
Gas		-		5		1		(6	)		-
Total price risk management instruments		1		65		81		-			147
Rabbi trusts
Fixed-income securities		-		30		-		-			30
Life insurance contracts		-		72		-		-			72
Total rabbi trusts		-		102		-		-			102
Long-term disability trust
Money market investments		10		-		-		-			10
U.S. equity securities		-		14		-		-			14
Non-U.S. equity securities		-		11		-		-			11
Fixed-income securities		-		136		-		-			136
Total long-term disability trust		10		161		-		-			171
Total assets	$	2,241	$	708	$	81	$	-		$	3,030
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	155	$	144	$	160	$	(156	)	$	303
Gas		8		9		-		(9	)		8
Total liabilities	$	163	$	153	$	160	$	(165	)	$	311

⁽¹⁾ Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral.

⁽²⁾ Excludes $240 million at December 31, 2012 primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements And Sensitivity Analysis

	Fair Value at
(in millions)	March 31, 2013
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$	76	$	15	Market approach	CRR auction prices	$	(11.30) - 7.93
Power purchase agreements	$	-	$	139	Discounted cash flow	Forward prices	$	10.54 - 58.08

⁽¹⁾ Represents price per megawatt-hour

	Fair Value at
(in millions)	December 31, 2012
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$	80	$	16	Market approach	CRR auction prices	$	(9.04) - 55.15
Power purchase agreements	$	-	$	145	Discounted cash flow	Forward prices	$	8.59 - 62.90

⁽¹⁾Represents price per megawatt-hour

Level 3 Reconciliation

	Price Risk Management Instruments
(in millions)	2013			2012
Liability balance as of January 1	$	(79	)	$	(74	)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		4			(25	)
Transfers out of Level 3		-			-
Liability balance as of March 31	$	(75	)	$	(99	)

⁽¹⁾ Price risk management activities are recoverable through customer rates, therefore, balancing account revenue is recorded for amounts settled and purchased and there is no impact to net income. Unrealized gains and losses are deferred in regulatory liabilities and assets.

Carrying Amount And Fair Value Of Financial Instruments

	March 31, 2013				December 31, 2012
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 4)
PG&E Corporation	$	350	$	367	$	349	$	371
Utility		11,645		13,757		11,645		13,946

Schedule Of Unrealized Gains (Losses) Related To Available-For-Sale Investments

				Total			Total
	Amortized			Unrealized			Unrealized			Total Fair
(in millions)	Cost			Gains			Losses			Value ⁽¹⁾
As of March 31, 2013
Money market investments	$	25	$	-		$	-		$	25
Equity securities
U.S.		289		705			-			994
Non-U.S.		199		196			(1	)		394
Debt securities
U.S. government and agency
securities		762		89			-			851
Municipal securities		61		4			-			65
Other fixed-income securities		173		4			-			177
Total	$	1,509	$	998		$	(1	)	$	2,506
As of December 31, 2012
Money market investments	$	21	$	-		$	-		$	21
Equity securities
U.S.		331		618			-			949
Non-U.S.		199		181			(1	)		379
Debt securities
U.S. government and agency securities		723		97			-			820
Municipal securities		56		4			(1	)		59
Other fixed-income securities		168		5			-			173
Total	$	1,498	$	905	-	$	(2	)	$	2,401

⁽¹⁾ Excludes $273 million and $240 million at March 31, 2013 and December 31, 2012, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule Of Maturities On Debt Instruments

	As of
(in millions)	March 31, 2013
Less than 1 year	$	28
1-5 years		448
5-10 years		237
More than 10 years		380
Total maturities of debt securities	$	1,093

Schedule Of Activity For Debt And Equity Securities

	Three Months Ended
	March 31, 2013			March 31, 2012
(in millions)
Proceeds from sales and maturities of nuclear decommissioning trust
investments	$	363		$	351
Gross realized gains on sales of securities held as available-for-sale		12			7
Gross realized losses on sales of securities held as available-for-sale		(1	)		(3	)

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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