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 March 31, 2014
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
|
|||||
Pacific Gas and Electric Company
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
________________________________________
|
PG&E Corporation
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
______________________________________
|
|||||||
Address of principal executive offices, including zip code
|
||||||||
Pacific Gas and Electric Company
(415) 973-7000
________________________________________
|
PG&E Corporation
(415) 973-1000
______________________________________
|
|||||||
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 April 22, 2014:
|
||||||||
PG&E Corporation:
|
464,756,373
|
|||||||
Pacific Gas and Electric Company:
|
264,374,809
|
PAGE
|
||||
GLOSSARY | ii | |||
1
|
||||
PG&E Corporation
|
||||
1
|
||||
2
|
||||
3
|
||||
5
|
||||
Pacific Gas and Electric Company
|
||||
6
|
||||
7
|
||||
8
|
||||
10
|
||||
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||
11
|
||||
12
|
||||
14
|
||||
15
|
||||
16
|
||||
16
|
||||
17
|
||||
20
|
||||
25
|
||||
26
|
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30
|
||||
32
|
||||
35
|
||||
39
|
||||
42
|
||||
43
|
||||
Contractual Commitments | 43 | |||
43
|
||||
43
|
||||
43
|
||||
Cautionary Language Regarding Forward-Looking Statements | 44 | |||
46
|
||||
46
|
||||
47
|
||||
49
|
||||
50
|
||||
50
|
||||
51
|
||||
52
|
PG&E Corporation's and Pacific Gas and Electric Company's combined Annual Report on Form 10-K for the year ended December 31, 2013
|
|
AFUDC
|
allowance for funds used during construction
|
ALJ
|
administrative law judge
|
CAISO
|
California Independent System Operator
|
CPUC
|
California Public Utilities Commission
|
CRRs
|
congestion revenue rights
|
EPS
|
earnings per common share
|
FERC
|
Federal Energy Regulatory Commission
|
GAAP
|
generally accepted accounting principles
|
GHG
|
greenhouse gas
|
GRC
|
general rate case
|
GT&S
|
gas transmission and storage
|
IRS
|
Internal Revenue Service
|
NEIL
|
Nuclear Electric Insurance Limited
|
NRC
|
Nuclear Regulatory Commission
|
ORA
|
Office of Ratepayer Advocates
|
PSEP
|
pipeline safety enhancement plan
|
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
|
TURN
|
The Utility Reform Network
|
Utility
|
Pacific Gas and Electric Company
|
VIE(s)
|
variable interest entity(ies)
|
(Unaudited)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
(in millions, except per share amounts)
|
2014
|
2013
|
||||||
Operating Revenues
|
||||||||
Electric
|
$ | 3,001 | $ | 2,799 | ||||
Natural gas
|
890 | 873 | ||||||
Total operating revenues
|
3,891 | 3,672 | ||||||
Operating Expenses
|
||||||||
Cost of electricity
|
1,210 | 983 | ||||||
Cost of natural gas
|
360 | 346 | ||||||
Operating and maintenance
|
1,299 | 1,338 | ||||||
Depreciation, amortization, and decommissioning
|
538 | 503 | ||||||
Total operating expenses
|
3,407 | 3,170 | ||||||
Operating Income
|
484 | 502 | ||||||
Interest income
|
3 | 2 | ||||||
Interest expense
|
(185 | ) | (176 | ) | ||||
Other income, net
|
19 | 28 | ||||||
Income Before Income Taxes
|
321 | 356 | ||||||
Income tax provision
|
91 | 114 | ||||||
Net Income
|
230 | 242 | ||||||
Preferred stock dividend requirement of subsidiary
|
3 | 3 | ||||||
Income Available for Common Shareholders
|
$ | 227 | $ | 239 | ||||
Weighted Average Common Shares Outstanding, Basic
|
459 | 434 | ||||||
Weighted Average Common Shares Outstanding, Diluted
|
460 | 435 | ||||||
Net Earnings Per Common Share, Basic
|
$ | 0.49 | $ | 0.55 | ||||
Net Earnings Per Common Share, Diluted
|
$ | 0.49 | $ | 0.55 | ||||
Dividends Declared Per Common Share
|
$ | 0.46 | $ | 0.46 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Three Months Ended March 31,
|
||||||||
(in millions)
|
2014
|
2013
|
||||||
Net Income
|
$ | 230 | $ | 242 | ||||
Other Comprehensive Income
|
||||||||
Pension and other postretirement benefit plans obligations (net of taxes of
|
||||||||
$0 and $3, at respective dates)
|
- | 4 | ||||||
Gain on investments (net of taxes of $4, at respective dates)
|
5 | 6 | ||||||
Total other comprehensive income
|
5 | 10 | ||||||
Comprehensive Income
|
235 | 252 | ||||||
Preferred stock dividend requirement of subsidiary
|
3 | 3 | ||||||
Comprehensive Income Attributable to Common Shareholders
|
$ | 232 | $ | 249 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Balance At
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions)
|
2014
|
2013
|
||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 108 | $ | 296 | ||||
Restricted cash
|
299 | 301 | ||||||
Accounts receivable:
|
||||||||
Customers (net of allowance for doubtful accounts of $76 and $80
|
||||||||
at respective dates)
|
877 | 1,091 | ||||||
Accrued unbilled revenue
|
638 | 766 | ||||||
Regulatory balancing accounts
|
1,707 | 1,124 | ||||||
Other
|
323 | 312 | ||||||
Regulatory assets
|
418 | 448 | ||||||
Inventories:
|
||||||||
Gas stored underground and fuel oil
|
78 | 137 | ||||||
Materials and supplies
|
314 | 317 | ||||||
Income taxes receivable
|
602 | 574 | ||||||
Other
|
528 | 611 | ||||||
Total current assets
|
5,892 | 5,977 | ||||||
Property, Plant, and Equipment
|
||||||||
Electric
|
43,402 | 42,881 | ||||||
Gas
|
14,734 | 14,379 | ||||||
Construction work in progress
|
1,888 | 1,834 | ||||||
Other
|
2 | 2 | ||||||
Total property, plant, and equipment
|
60,026 | 59,096 | ||||||
Accumulated depreciation
|
(18,209 | ) | (17,844 | ) | ||||
Net property, plant, and equipment
|
41,817 | 41,252 | ||||||
Other Noncurrent Assets
|
||||||||
Regulatory assets
|
4,823 | 4,913 | ||||||
Nuclear decommissioning trusts
|
2,351 | 2,342 | ||||||
Income taxes receivable
|
87 | 85 | ||||||
Other
|
1,017 | 1,036 | ||||||
Total other noncurrent assets
|
8,278 | 8,376 | ||||||
TOTAL ASSETS
|
$ | 55,987 | $ | 55,605 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Balance At
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions, except share amounts)
|
2014
|
2013
|
||||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities
|
||||||||
Short-term borrowings
|
$ | 930 | $ | 1,174 | ||||
Long-term debt, classified as current
|
- | 889 | ||||||
Accounts payable:
|
||||||||
Trade creditors
|
1,072 | 1,293 | ||||||
Disputed claims and customer refunds
|
154 | 154 | ||||||
Regulatory balancing accounts
|
1,031 | 1,008 | ||||||
Other
|
572 | 471 | ||||||
Interest payable
|
862 | 892 | ||||||
Other
|
1,526 | 1,612 | ||||||
Total current liabilities
|
6,147 | 7,493 | ||||||
Noncurrent Liabilities
|
||||||||
Long-term debt
|
13,965 | 12,717 | ||||||
Regulatory liabilities
|
5,804 | 5,660 | ||||||
Pension and other postretirement benefits
|
1,592 | 1,601 | ||||||
Asset retirement obligations
|
3,540 | 3,539 | ||||||
Deferred income taxes
|
7,838 | 7,823 | ||||||
Other
|
2,169 | 2,178 | ||||||
Total noncurrent liabilities
|
34,908 | 33,518 | ||||||
Commitments and Contingencies (Note 10)
|
||||||||
Equity
|
||||||||
Shareholders' Equity
|
||||||||
Common stock, no par value, authorized 800,000,000 shares,
|
||||||||
464,263,173 and 456,670,424 shares outstanding at respective dates
|
9,869 | 9,550 | ||||||
Reinvested earnings
|
4,756 | 4,742 | ||||||
Accumulated other comprehensive income
|
55 | 50 | ||||||
Total shareholders' equity
|
14,680 | 14,342 | ||||||
Noncontrolling Interest - Preferred Stock of Subsidiary
|
252 | 252 | ||||||
Total equity
|
14,932 | 14,594 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 55,987 | $ | 55,605 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Three Months Ended March 31,
|
||||||||
(in millions)
|
2014
|
2013
|
||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$ | 230 | $ | 242 | ||||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities:
|
||||||||
Depreciation, amortization, and decommissioning
|
538 | 503 | ||||||
Allowance for equity funds used during construction
|
(22 | ) | (26 | ) | ||||
Deferred income taxes and tax credits, net
|
15 | 166 | ||||||
Other
|
56 | 57 | ||||||
Effect of changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
321 | 209 | ||||||
Inventories
|
62 | 55 | ||||||
Accounts payable
|
31 | (56 | ) | |||||
Income taxes receivable/payable
|
(28 | ) | 49 | |||||
Other current assets and liabilities
|
(37 | ) | (242 | ) | ||||
Regulatory assets, liabilities, and balancing accounts, net
|
(376 | ) | (133 | ) | ||||
Other noncurrent assets and liabilities
|
(19 | ) | 45 | |||||
Net cash provided by operating activities
|
771 | 869 | ||||||
Cash Flows from Investing Activities
|
||||||||
Capital expenditures
|
(1,197 | ) | (1,249 | ) | ||||
Decrease in restricted cash
|
2 | 26 | ||||||
Proceeds from sales and maturities of nuclear decommissioning
|
||||||||
trust investments
|
530 | 363 | ||||||
Purchases of nuclear decommissioning trust investments
|
(536 | ) | (364 | ) | ||||
Other
|
12 | 17 | ||||||
Net cash used in investing activities
|
(1,189 | ) | (1,207 | ) | ||||
Cash Flows from Financing Activities
|
||||||||
Repayments under revolving credit facilities
|
(260 | ) | - | |||||
Net issuances (repayments) of commercial paper, net of discount of $1 in 2014
|
15 | (2 | ) | |||||
Proceeds from issuance of long-term debt, net of premium, discount, and issuance
|
||||||||
costs of $13 in 2014
|
1,237 | - | ||||||
Repayments of long-term debt
|
(889 | ) | - | |||||
Common stock issued
|
302 | 426 | ||||||
Common stock dividends paid
|
(202 | ) | (191 | ) | ||||
Other
|
27 | (18 | ) | |||||
Net cash provided by financing activities
|
230 | 215 | ||||||
Net change in cash and cash equivalents
|
(188 | ) | (123 | ) | ||||
Cash and cash equivalents at January 1
|
296 | 401 | ||||||
Cash and cash equivalents at March 31
|
$ | 108 | $ | 278 | ||||
Supplemental disclosures of cash flow information
|
||||||||
Cash received (paid) for:
|
||||||||
Interest, net of amounts capitalized
|
$ | (199 | ) | $ | (197 | ) | ||
Income taxes, net
|
1 | 36 | ||||||
Supplemental disclosures of noncash investing and financing activities
|
||||||||
Common stock dividends declared but not yet paid
|
$ | 213 | $ | 201 | ||||
Capital expenditures financed through accounts payable
|
171 | 257 | ||||||
Noncash common stock issuances
|
5 | 6 | ||||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
(in millions)
|
2014
|
2013
|
||||||
Operating Revenues
|
||||||||
Electric
|
$ | 3,000 | $ | 2,798 | ||||
Natural gas
|
890 | 873 | ||||||
Total operating revenues
|
3,890 | 3,671 | ||||||
Operating Expenses
|
||||||||
Cost of electricity
|
1,210 | 983 | ||||||
Cost of natural gas
|
360 | 346 | ||||||
Operating and maintenance
|
1,297 | 1,336 | ||||||
Depreciation, amortization, and decommissioning
|
538 | 503 | ||||||
Total operating expenses
|
3,405 | 3,168 | ||||||
Operating Income
|
485 | 503 | ||||||
Interest income
|
2 | 1 | ||||||
Interest expense
|
(179 | ) | (170 | ) | ||||
Other income, net
|
20 | 24 | ||||||
Income Before Income Taxes
|
328 | 358 | ||||||
Income tax provision
|
100 | 121 | ||||||
Net Income
|
228 | 237 | ||||||
Preferred stock dividend requirement
|
3 | 3 | ||||||
Income Available for Common Stock
|
$ | 225 | $ | 234 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Three Months Ended March 31,
|
||||||||
(in millions)
|
2014
|
2013
|
||||||
Net Income
|
$ | 228 | $ | 237 | ||||
Other Comprehensive Income
|
||||||||
Pension and other postretirement benefit plans obligations (net of taxes of
|
||||||||
$0, and $2, at respective dates)
|
- | 5 | ||||||
Total other comprehensive income
|
- | 5 | ||||||
Comprehensive Income
|
$ | 228 | $ | 242 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Balance At
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions)
|
2014
|
2013
|
||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$ | 68 | $ | 65 | ||||
Restricted cash
|
299 | 301 | ||||||
Accounts receivable:
|
||||||||
Customers (net of allowance for doubtful accounts of $76 and $80
|
||||||||
at respective dates)
|
877 | 1,091 | ||||||
Accrued unbilled revenue
|
638 | 766 | ||||||
Regulatory balancing accounts
|
1,707 | 1,124 | ||||||
Other
|
333 | 313 | ||||||
Regulatory assets
|
418 | 448 | ||||||
Inventories:
|
||||||||
Gas stored underground and fuel oil
|
78 | 137 | ||||||
Materials and supplies
|
314 | 317 | ||||||
Income taxes receivable
|
588 | 563 | ||||||
Other
|
363 | 523 | ||||||
Total current assets
|
5,683 | 5,648 | ||||||
Property, Plant, and Equipment
|
||||||||
Electric
|
43,402 | 42,881 | ||||||
Gas
|
14,734 | 14,379 | ||||||
Construction work in progress
|
1,888 | 1,834 | ||||||
Total property, plant, and equipment
|
60,024 | 59,094 | ||||||
Accumulated depreciation
|
(18,208 | ) | (17,843 | ) | ||||
Net property, plant, and equipment
|
41,816 | 41,251 | ||||||
Other Noncurrent Assets
|
||||||||
Regulatory assets
|
4,823 | 4,913 | ||||||
Nuclear decommissioning trusts
|
2,351 | 2,342 | ||||||
Income taxes receivable
|
82 | 81 | ||||||
Other
|
831 | 814 | ||||||
Total other noncurrent assets
|
8,087 | 8,150 | ||||||
TOTAL ASSETS
|
$ | 55,586 | $ | 55,049 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Balance At
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions, except share amounts)
|
2014
|
2013
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities
|
||||||||
Short-term borrowings
|
$ | 882 | $ | 914 | ||||
Long-term debt, classified as current
|
- | 539 | ||||||
Accounts payable:
|
||||||||
Trade creditors
|
1,072 | 1,293 | ||||||
Disputed claims and customer refunds
|
154 | 154 | ||||||
Regulatory balancing accounts
|
1,031 | 1,008 | ||||||
Other
|
555 | 432 | ||||||
Interest payable
|
861 | 887 | ||||||
Other
|
1,272 | 1,382 | ||||||
Total current liabilities
|
5,827 | 6,609 | ||||||
Noncurrent Liabilities
|
||||||||
Long-term debt
|
13,616 | 12,717 | ||||||
Regulatory liabilities
|
5,804 | 5,660 | ||||||
Pension and other postretirement benefits
|
1,520 | 1,530 | ||||||
Asset retirement obligations
|
3,540 | 3,539 | ||||||
Deferred income taxes
|
8,023 | 8,042 | ||||||
Other
|
2,124 | 2,111 | ||||||
Total noncurrent liabilities
|
34,627 | 33,599 | ||||||
Commitments and Contingencies (Note 10)
|
||||||||
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
|
6,066 | 5,821 | ||||||
Reinvested earnings
|
7,473 | 7,427 | ||||||
Accumulated other comprehensive income
|
13 | 13 | ||||||
Total shareholders' equity
|
15,132 | 14,841 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 55,586 | $ | 55,049 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
(Unaudited)
|
||||||||
Three Months Ended March 31,
|
||||||||
(in millions)
|
2014
|
2013
|
||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$ | 228 | $ | 237 | ||||
Adjustments to reconcile net income to net cash provided by
|
||||||||
operating activities:
|
||||||||
Depreciation, amortization, and decommissioning
|
538 | 503 | ||||||
Allowance for equity funds used during construction
|
(22 | ) | (26 | ) | ||||
Deferred income taxes and tax credits, net
|
(19 | ) | 163 | |||||
Other
|
39 | 37 | ||||||
Effect of changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
312 | 203 | ||||||
Inventories
|
62 | 55 | ||||||
Accounts payable
|
53 | 2 | ||||||
Income taxes receivable/payable
|
(25 | ) | 51 | |||||
Other current assets and liabilities
|
26 | (230 | ) | |||||
Regulatory assets, liabilities, and balancing accounts, net
|
(376 | ) | (133 | ) | ||||
Other noncurrent assets and liabilities
|
(37 | ) | 45 | |||||
Net cash provided by operating activities
|
779 | 907 | ||||||
Cash Flows from Investing Activities
|
||||||||
Capital expenditures
|
(1,197 | ) | (1,249 | ) | ||||
Decrease in restricted cash
|
2 | 26 | ||||||
Proceeds from sales and maturities of nuclear decommissioning
|
||||||||
trust investments
|
530 | 363 | ||||||
Purchases of nuclear decommissioning trust investments
|
(536 | ) | (364 | ) | ||||
Other
|
9 | 5 | ||||||
Net cash used in investing activities
|
(1,192 | ) | (1,219 | ) | ||||
Cash Flows from Financing Activities
|
||||||||
Net repayments of commercial paper, net of discount of $1 in 2014
|
(33 | ) | (2 | ) | ||||
Proceeds from issuance of long-term debt, net of premium, discount, and issuance
|
||||||||
costs of $10 in 2014
|
890 | - | ||||||
Repayments of long-term debt
|
(539 | ) | - | |||||
Preferred stock dividends paid
|
(3 | ) | (3 | ) | ||||
Common stock dividends paid
|
(179 | ) | (179 | ) | ||||
Equity contribution
|
250 | 370 | ||||||
Other
|
30 | (15 | ) | |||||
Net cash provided by financing activities
|
416 | 171 | ||||||
Net change in cash and cash equivalents
|
3 | (141 | ) | |||||
Cash and cash equivalents at January 1
|
65 | 194 | ||||||
Cash and cash equivalents at March 31
|
$ | 68 | $ | 53 | ||||
Supplemental disclosures of cash flow information
|
||||||||
Cash received (paid) for:
|
||||||||
Interest, net of amounts capitalized
|
$ | (188 | ) | $ | (197 | ) | ||
Income taxes, net
|
1 | 36 | ||||||
Supplemental disclosures of noncash investing and financing activities
|
||||||||
Capital expenditures financed through accounts payable
|
$ | 171 | $ | 257 | ||||
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Three Months Ended March 31,
|
||||||||||||||||
(in millions)
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Service cost for benefits earned
|
$ | 99 | $ | 115 | $ | 11 | $ | 13 | ||||||||
Interest cost
|
173 | 156 | 19 | 19 | ||||||||||||
Expected return on plan assets
|
(202 | ) | (162 | ) | (26 | ) | (20 | ) | ||||||||
Amortization of prior service cost
|
5 | 5 | 6 | 6 | ||||||||||||
Amortization of net actuarial loss
|
- | 27 | - | 1 | ||||||||||||
Net periodic benefit cost
|
75 | 141 | 10 | 19 | ||||||||||||
Less: transfer to regulatory account (1)
|
9 | (57 | ) | - | - | |||||||||||
Total
|
$ | 84 | $ | 84 | $ | 10 | $ | 19 | ||||||||
Pension
|
Other
|
Other
|
||||||||||||||
Benefits
|
Benefits
|
Investments
|
Total
|
|||||||||||||
(in millions, net of income tax)
|
Three Months Ended March 31, 2014
|
|||||||||||||||
Beginning balance
|
$ | (7 | ) | $ | 15 | $ | 42 | $ | 50 | |||||||
Other comprehensive income before reclassifications:
|
||||||||||||||||
Gain on investments (net of taxes of $0, $0, and $4,
|
||||||||||||||||
respectively)
|
- | - | 5 | 5 | ||||||||||||
Amounts reclassified from other comprehensive income: (1)
|
||||||||||||||||
Amortization of prior service cost (net of taxes of
|
||||||||||||||||
$2, $2, and $0, respectively)
|
3 | 4 | - | 7 | ||||||||||||
Transfer to regulatory account (net of taxes of
|
||||||||||||||||
$2, $2, and $0, respectively)
|
(3 | ) | (4 | ) | - | (7 | ) | |||||||||
Net current period other comprehensive income
|
- | - | 5 | 5 | ||||||||||||
Ending balance
|
$ | (7 | ) | $ | 15 | $ | 47 | $ | 55 | |||||||
Pension
|
Other
|
Other
|
||||||||||||||
Benefits
|
Benefits
|
Investments
|
Total
|
|||||||||||||
(in millions, net of income tax)
|
Three Months Ended March 31, 2013
|
|||||||||||||||
Beginning balance
|
$ | (28 | ) | $ | (77 | ) | $ | 4 | $ | (101 | ) | |||||
Other comprehensive income before reclassifications:
|
||||||||||||||||
Gain on investments (net of taxes of $0, $0, and $4,
|
||||||||||||||||
respectively)
|
- | - | 6 | 6 | ||||||||||||
Amounts reclassified from other comprehensive income: (1)
|
||||||||||||||||
Amortization of prior service cost (net of taxes of
|
||||||||||||||||
$2, $3, and $0, respectively)
|
3 | 3 | - | 6 | ||||||||||||
Amortization of net actuarial loss (net of taxes of
|
||||||||||||||||
$11, $0, and $0, respectively)
|
16 | 1 | - | 17 | ||||||||||||
Transfer to regulatory account (net of taxes of
|
||||||||||||||||
$13, $0, and $0, respectively)
|
(19 | ) | - | - | (19 | ) | ||||||||||
Net current period other comprehensive income
|
- | 4 | 6 | 10 | ||||||||||||
Ending balance
|
$ | (28 | ) | $ | (73 | ) | $ | 10 | $ | (91 | ) | |||||
Balance at
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions)
|
2014
|
2013
|
||||||
Pension benefits
|
$ | 1,429 | $ | 1,444 | ||||
Deferred income taxes
|
1,883 | 1,835 | ||||||
Utility retained generation
|
491 | 503 | ||||||
Environmental compliance costs
|
582 | 628 | ||||||
Price risk management
|
96 | 106 | ||||||
Electromechanical meters
|
119 | 135 | ||||||
Unamortized loss, net of gain, on reacquired debt
|
129 | 135 | ||||||
Other
|
94 | 127 | ||||||
Total long-term regulatory assets
|
$ | 4,823 | $ | 4,913 |
Balance at
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions)
|
2014
|
2013
|
||||||
Cost of removal obligations
|
$ | 3,920 | $ | 3,844 | ||||
Recoveries in excess of AROs
|
717 | 748 | ||||||
Public purpose programs
|
648 | 587 | ||||||
Other
|
519 | 481 | ||||||
Total long-term regulatory liabilities
|
$ | 5,804 | $ | 5,660 |
Receivable
|
||||||||
Balance at
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions)
|
2014
|
2013
|
||||||
Electric distribution
|
$ | 415 | $ | 102 | ||||
Utility generation
|
312 | 57 | ||||||
Gas distribution
|
41 | 70 | ||||||
Energy procurement
|
491 | 410 | ||||||
Public purpose programs
|
88 | 56 | ||||||
Other
|
360 | 429 | ||||||
Total regulatory balancing accounts receivable
|
$ | 1,707 | $ | 1,124 |
Payable
|
||||||||
Balance at
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions)
|
2014
|
2013
|
||||||
Energy procurement
|
$ | 371 | $ | 298 | ||||
Public purpose programs
|
173 | 171 | ||||||
Other
|
487 | 539 | ||||||
Total regulatory balancing accounts payable
|
$ | 1,031 | $ | 1,008 |
Letters of
|
|||||||||||||||||||
Termination
|
Facility
|
Credit
|
Commercial
|
Facility
|
|||||||||||||||
(in millions)
|
Date
|
Limit
|
Outstanding
|
Borrowings
|
Paper
|
Availability
|
|||||||||||||
PG&E Corporation
|
April 2019
|
$
|
300
|
(1)
|
$
|
-
|
$
|
-
|
$
|
48
|
(3)
|
$
|
252
|
(3)
|
|||||
Utility
|
April 2019
|
3,000
|
(2)
|
79
|
-
|
882
|
(3)
|
2,039
|
(3)
|
||||||||||
Total revolving
|
|||||||||||||||||||
credit facilities
|
$
|
3,300
|
$
|
79
|
$
|
-
|
$
|
930
|
$
|
2,291
|
|||||||||
PG&E Corporation
|
Utility
|
|||||||
Total
|
Total
|
|||||||
(in millions)
|
Equity
|
Shareholders' Equity
|
||||||
Balance at December 31, 2013
|
$ | 14,594 | $ | 14,841 | ||||
Comprehensive income
|
235 | 228 | ||||||
Equity contributions
|
- | 250 | ||||||
Common stock issued
|
307 | - | ||||||
Share-based compensation
|
12 | (5 | ) | |||||
Common stock dividends declared
|
(213 | ) | (179 | ) | ||||
Preferred stock dividend requirement
|
- | (3 | ) | |||||
Preferred stock dividend requirement of subsidiary
|
(3 | ) | - | |||||
Balance at March 31, 2014
|
$ | 14,932 | $ | 15,132 | ||||
·
|
3 million shares were issued for cash proceeds of $79 million under the PG&E Corporation 401(k) plan, the Dividend Reinvestment and Stock Purchase Plan, and share-based compensation plans; and
|
·
|
5 million shares were sold for cash proceeds of $223 million, net of commissions paid of $2 million, under the February 2014 equity distribution agreement.
|
Three Months Ended March 31,
|
||||||||
(in millions, except per share amounts)
|
2014
|
2013
|
||||||
Income available for common shareholders
|
$ | 227 | $ | 239 | ||||
Weighted average common shares outstanding, basic
|
459 | 434 | ||||||
Add incremental shares from assumed conversions:
|
||||||||
Employee share-based compensation
|
1 | 1 | ||||||
Weighted average common shares outstanding, diluted
|
460 | 435 | ||||||
Total earnings per common share, diluted
|
$ | 0.49 | $ | 0.55 |
Contract Volume (1)
|
|||||||||||||||||
1 Year or
|
3 Years or
|
||||||||||||||||
Greater but
|
Greater but
|
||||||||||||||||
Less Than 1
|
Less Than 3
|
Less Than 5
|
5 Years or
|
||||||||||||||
Underlying Product
|
Instruments
|
Year
|
Years
|
Years
|
Greater (2)
|
||||||||||||
Natural Gas (3)
|
Forwards and
|
||||||||||||||||
(MMBtus (4))
|
Swaps
|
243,602,622 | 76,235,312 | 7,640,000 | - | ||||||||||||
Options
|
140,209,906 | 62,803,770 | 2,550,000 | - | |||||||||||||
Electricity
|
Forwards and
|
||||||||||||||||
(Megawatt-hours)
|
Swaps
|
2,132,784 | 1,956,498 | 1,871,208 | 1,394,250 | ||||||||||||
Congestion
|
|||||||||||||||||
Revenue Rights
|
65,730,617 | 83,761,019 | 57,617,664 | 27,407,793 | |||||||||||||
Contract Volume (1)
|
|||||||||||||||||
1 Year or
|
3 Years or
|
||||||||||||||||
Greater but
|
Greater but
|
||||||||||||||||
Less Than 1
|
Less Than 3
|
Less Than 5
|
5 Years or
|
||||||||||||||
Underlying Product
|
Instruments
|
Year
|
Years
|
Years
|
Greater (2)
|
||||||||||||
Natural Gas (3)
|
Forwards and
|
||||||||||||||||
(MMBtus (4))
|
Swaps
|
243,213,288 | 79,735,000 | 8,892,500 | - | ||||||||||||
Options
|
169,123,208 | 87,689,708 | 3,450,000 | - | |||||||||||||
Electricity
|
Forwards and
|
||||||||||||||||
(Megawatt-hours)
|
Swaps
|
2,537,023 | 2,009,505 | 2,008,046 | 1,534,695 | ||||||||||||
Congestion
|
|||||||||||||||||
Revenue Rights
|
73,510,440 | 83,747,782 | 63,718,517 | 29,945,852 | |||||||||||||
Commodity Risk
|
||||||||||||||||
Gross Derivative
|
Total Derivative
|
|||||||||||||||
(in millions)
|
Balance
|
Netting
|
Cash Collateral
|
Balance
|
||||||||||||
Current assets – other
|
$ | 65 | $ | (11 | ) | $ | 10 | $ | 64 | |||||||
Other noncurrent assets – other
|
92 | (4 | ) | - | 88 | |||||||||||
Current liabilities – other
|
(90 | ) | 11 | 34 | (45 | ) | ||||||||||
Noncurrent liabilities – other
|
(100 | ) | 4 | - | (96 | ) | ||||||||||
Total commodity risk
|
$ | (33 | ) | $ | - | $ | 44 | $ | 11 |
Commodity Risk
|
||||||||||||||||
Gross Derivative
|
Total Derivative
|
|||||||||||||||
(in millions)
|
Balance
|
Netting
|
Cash Collateral
|
Balance
|
||||||||||||
Current assets – other
|
$ | 42 | $ | (10 | ) | $ | 16 | $ | 48 | |||||||
Other noncurrent assets – other
|
99 | (4 | ) | - | 95 | |||||||||||
Current liabilities – other
|
(122 | ) | 10 | 69 | (43 | ) | ||||||||||
Noncurrent liabilities – other
|
(110 | ) | 4 | 2 | (104 | ) | ||||||||||
Total commodity risk
|
$ | (91 | ) | $ | - | $ | 87 | $ | (4 | ) |
Commodity Risk
|
||||||||
Three Months Ended March 31,
|
||||||||
(in millions)
|
2014
|
2013
|
||||||
Net unrealized gain - regulatory assets and liabilities (1)
|
$ | 58 | $ | 98 | ||||
Realized loss - cost of electricity (2)
|
(18 | ) | (48 | ) | ||||
Realized loss - cost of natural gas (2)
|
- | (8 | ) | |||||
Total commodity risk
|
$ | 40 | $ | 42 | ||||
Balance at
|
||||||||
March 31,
|
December 31,
|
|||||||
(in millions)
|
2014
|
2013
|
||||||
Derivatives in a liability position with credit risk-related
|
||||||||
contingencies that are not fully collateralized
|
$ | (63 | ) | $ | (79 | ) | ||
Related derivatives in an asset position
|
6 | 4 | ||||||
Collateral posting in the normal course of business related to
|
||||||||
these derivatives
|
44 | 65 | ||||||
Net position of derivative contracts/additional collateral
|
||||||||
posting requirements (1)
|
$ | (13 | ) | $ | (10 | ) | ||
·
|
Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
·
|
Level 2 – Other inputs that are directly or indirectly observable in the marketplace.
|
·
|
Level 3 – Unobservable inputs which are supported by little or no market activities.
|
Fair Value Measurements
|
||||||||||||||||||||
At March 31, 2014
|
||||||||||||||||||||
(in millions)
|
Level 1
|
Level 2
|
Level 3
|
Netting (1)
|
Total
|
|||||||||||||||
Assets:
|
||||||||||||||||||||
Money market investments
|
$ | 46 | $ | - | $ | - | $ | - | $ | 46 | ||||||||||
Nuclear decommissioning trusts
|
||||||||||||||||||||
Money market investments
|
31 | - | - | - | 31 | |||||||||||||||
U.S. equity securities
|
1,087 | 12 | - | - | 1,099 | |||||||||||||||
Non-U.S. equity securities
|
439 | 1 | - | - | 440 | |||||||||||||||
U.S. government and agency securities
|
741 | 166 | - | - | 907 | |||||||||||||||
Municipal securities
|
- | < |