NOTE 4: DEBT

Long-Term Debt

The following table summarizes PG&E Corporation’s and the Utility’s long-term debt:

		December 31,
(in millions)		2016		2015
PG&E Corporation
Senior notes:
Maturity	Interest Rates
2019	2.40%		350		350
Unamortized discount, net of premium and debt issuance costs			(2)		(2)
Total PG&E Corporation long-term debt			348		348
Utility
Senior notes:
Maturity	Interest Rates
2017	5.625%		700		700
2018	8.25%		800		800
2020	3.50%		800		800
2021	3.25% to 4.25%		550		550
2022 through 2046	2.45% to 6.35%		12,775		11,775
Less: current portion			(700)		-
Unamortized discount, net of premium and debt issuance costs			(161)		(156)
Total senior notes, net of current portion			14,764		14,469
Pollution control bonds:
Maturity	Interest Rates
Series 2004 A-D, due 2023(1)	4.75%		345		345
Series 2009 A-D, due 2026 (2)	variable rate(4)		149		309
Series 1996 C, E, F, 1997 B due 2026(3)	variable rate(5)		614		614
Less: current portion			-		(160)
Total pollution control bonds			1,108		1,108
Total Utility long-term debt, net of current portion			15,872		15,577
Total consolidated long-term debt, net of current portion		$	16,220	$	15,925

(1) The Utility has obtained credit support from an insurance company for these bonds.

(2) Each series of these bonds is supported by a separate direct-pay letter of credit. Subject to certain requirements, the Utility may choose not to provide a credit facility without issuer consent. Series C and D pollution control bonds were redeemed on November 30, 2016.

(3) Each series of these bonds is supported by a separate letter of credit. In December 2015, the letters of credit were extended to December 1, 2020. 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 consent from the issuer to the continuation of the series without a credit facility.

(4) At December 31, 2016, the interest rate on these bonds was 0.74%.

(5) At December 31, 2016, the interest rate on these bonds ranged from 0.72% - 0.73%.

Pollution Control Bonds

The California Pollution Control Financing Authority and the California Infrastructure and Economic Development Bank have issued various series of fixed rate and multi-modal tax-exempt pollution control bonds for the benefit of the Utility. Substantially all of the net proceeds of the pollution control bonds were used to finance or refinance pollution control and sewage and solid waste disposal facilities at the Geysers geothermal power plant or at the Utility’s Diablo Canyon nuclear power plant. In 1999, the Utility sold all bond-financed facilities at the non-retired units of the Geysers geothermal power plant to Geysers Power Company, LLC pursuant to purchase and sales agreements stating that Geysers Power Company, LLC will use the bond-financed facilities solely as pollution control facilities for so long as any tax-exempt pollution control bonds issued to finance the Geysers project are outstanding. Except for components that may have been abandoned in place or disposed of as scrap or that are permanently non-operational, the Utility has no knowledge that Geysers Power Company, LLC intends to cease using the bond-financed facilities solely as pollution control facilities.

Repayment Schedule

PG&E Corporation’s and the Utility’s combined long-term debt principal repayment amounts at December 31, 2016 are reflected in the table below:

(in millions,
except interest rates)	2017		2018		2019		2020		2021		Thereafter		Total
PG&E Corporation
Average fixed interest rate		-		-		2.40%		-		-		-		2.40%
Fixed rate obligations	$	-	$	-	$	350	$	-	$	-	$	-	$	350
Utility
Average fixed interest rate		5.625%		8.25%		-		3.50%		3.80%		4.84%		4.94%
Fixed rate obligations	$	700	$	800	$	-	$	800	$	550	$	13,120	$	15,970
Variable interest rate
as of December 31, 2016		-		-		0.74%		0.73%		-		-		0.73%
Variable rate obligations (1)	$	-	$	-	$	149	$	614	$	-	$	-	$	763
Total consolidated debt	$	700	$	800	$	499	$	1,414	$	550	$	13,120	$	17,083

(1) The bonds due in 2026 are backed by separate letters of credit that expire June 5, 2019, or December 1, 2020.

Short-term Borrowings

The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings under their revolving credit facilities and commercial paper programs at December 31, 2016:

		Credit			Letters of			Commercial
	Termination	Facility			Credit			Paper			Facility
(in millions)	Date	Limit			Outstanding			Outstanding			Availability
PG&E Corporation	April 2021	$	300	(1)		$	-		$	-		$	300
Utility	April 2021		3,000	(2)			41			1,016			1,943
Total revolving credit facilities		$	3,300			$	41		$	1,016		$	2,243

(1) Includes a $50 million lender commitment to the letter of credit sublimits and a $100 million commitment for swingline loans defined as loans that are made available on a same-day basis and are repayable in full within 7 days.

(2) Includes a $500 million lender commitment to the letter of credit sublimits and a $75 million commitment for swingline loans.

For the year ended December 31, 2016, PG&E Corporation’s average outstanding commercial paper balance was $84 million and the maximum outstanding balance during the year was $176 million. For 2016, the Utility’s average outstanding commercial paper balance was $837 million and the maximum outstanding balance during the year was $1.4 billion. There were no bank borrowings for PG&E Corporation or the Utility in 2016.

Revolving Credit Facilities

In June 2016, PG&E Corporation and the Utility each extended the termination dates of their existing revolving credit facilities by one year from April 27, 2020 to April 27, 2021. PG&E Corporation's and the Utility's revolving credit facilities may be used for working capital, the repayment of commercial paper, and other corporate purposes. At PG&E Corporation’s and the Utility’s request and at the sole discretion of each lender, the facilities may be extended for one additional period.

Borrowings under each credit agreement (other than swingline loans) will bear interest based, at each borrower’s election, on (1) a London Interbank Offered Rate (“LIBOR”) plus an applicable margin or (2) the base rate plus an applicable margin. The base rate will equal the higher of the following: the administrative agent’s announced base rate, 0.5% above the overnight federal funds rate, and the one-month LIBOR plus an applicable margin. The applicable margin for LIBOR loans will range between 0.9% and 1.475% under PG&E Corporation’s credit agreement and between 0.8% and 1.275% under the Utility’s credit agreement. The applicable margin for base rate loans will range between 0% and 0.475% under PG&E Corporation’s credit agreement and between 0% and 0.275% under the Utility’s credit agreement. In addition, the facility fee under PG&E Corporation’s and the Utility’s credit agreements will range between 0.1% and 0.275% and between 0.075% and 0.225%, respectively.

PG&E Corporation’s and the Utility’s revolving credit facilities include usual and customary provisions for revolving credit facilities of this type, including those regarding events of default and covenants limiting liens to those permitted under their senior note indentures, mergers, sales of all or substantially all of their assets, and other fundamental changes. In addition, the respective revolving credit facilities require that PG&E Corporation and the Utility maintain a ratio of total consolidated debt to total consolidated capitalization of at most 65% as of the end of each fiscal quarter. PG&E Corporation’s revolving credit facility agreement also requires that PG&E Corporation own, directly or indirectly, at least 80% of the outstanding common stock and at least 70% of the outstanding voting capital stock of the Utility.

Commercial Paper Programs

The borrowings from PG&E Corporation’s and the Utility’s commercial paper programs are used primarily to fund temporary financing needs. PG&E Corporation and the Utility can issue commercial paper up to the maximum amounts of $300 million and $2.5 billion, respectively. PG&E Corporation and the Utility treat the amount of outstanding commercial paper as a reduction to the amount available under their respective revolving credit facilities. The commercial paper may have maturities up to 365 days and ranks equally with PG&E Corporation’s and the Utility’s other unsubordinated and unsecured indebtedness. Commercial paper notes are sold at an interest rate dictated by the market at the time of issuance. For 2016, the average yield on outstanding PG&E Corporation and Utility commercial paper was 0.63% and 0.64%, respectively.

Other Short-term Borrowings

In March 2016, the Utility entered into a $250 million floating rate unsecured term loan that matures on February 2, 2017. Additionally, in December 2016, the Utility issued a $250 million unsecured senior floating rate note that matures on November 30, 2017. The proceeds were used for general corporate purposes, including the repayment of a portion of the Utility’s outstanding commercial paper.