EX-99.2 3 exhibit99-2.htm TABLES-ADDITIONAL SUPPLEMENTAL FINANCIAL INFORMATION Exhibit 99.2

Exhibit 99.2

PG&E Corporation

Table 1:  Earnings Summary

First Quarter 2005 vs. First Quarter 2004

(in millions except per share amounts)

 

 

 

Earnings (Loss)
Three months ended
March 31,

 

Earnings (Loss) per
  Common Share (Diluted)
Three months ended
March 31,

 

 

 

2005

 

2004

 

2005

 

2004

Pacific Gas and Electric Company and Holding Company

 

 

 

 

 

 

 

 

Pacific Gas and Electric Company 1

$     227 

 

$    180

     

$    0.56 

 

  $    0.42 

 

Holding Company

        (1) 

 

        (5)

 

           - 

 

     (0.01)

 

 

Earnings from Operations

       226 

  

175

 

0.56 

 

0.41 

 

Items Impacting Comparability 2

 

 

 

 

 

 

 

 

 

Implementation of Electric Industry Restructuring

 

 

2,950

 

-  

 

6.96 

 

 

Energy Crisis/Chapter 11 Interest Costs

(8)

 

(56)

 

(0.02)

 

(0.13)

 

 

Dividend Participation Rights

-  

 

(19)

 

-  

 

(0.05)

 

 

Other

           - 

 

      (17)

 

         -  

 

        (0.04)

 

 

Total

(8)

 

2,858

 

(0.02)

 

6.74 

PG&E Corporation Earnings on a GAAP basis

$     218 

 

$  3,033

 

$    0.54 

 

  $    7.15 

 

 

 

              

 

              

 

              

 

              

1   Earnings from operations exclude items impacting comparability as discussed below.

2   Items impacting comparability reconcile earnings from operations with consolidated net income as reported in accordance with generally accepted accounting principles, or GAAP.

DISCUSSION:

1.  

Earnings from operations contributed by the Utility excludes items impacting comparability, as discussed below, totaling $8 million ($0.02 per common share) for the quarter ended March 31, 2005 and $2,886 million ($6.81 per common share) for the quarter ended March 31, 2004.  On a GAAP basis, the Utility earned $219 million for the three months ended March 31, 2005 and $3,066 million for the three months ended March 31, 2004.

     

2.   

Items impacting comparability for the quarter ending March 31, 2005 include the net effect of incremental interest costs of $8 million ($0.02 per common share), after-tax, related to remaining generator disputed claims in the Utility’s Chapter 11 proceeding, which are subject to resolution by bankruptcy court.

     

3.  

Items impacting comparability for the quarter ended March 31, 2004 include:
      

 

a.  

The Utility’s recognition of a gain of approximately $2,950 million ($6.96 per common share) related to the establishment of regulatory assets contemplated in the December 19, 2003 settlement agreement, or Settlement Agreement, entered into between the Utility, PG&E Corporation and the California Public Utilities Commission, or CPUC, to resolve the Utility’s Chapter 11 proceeding;

 

    

   

 

b.  

The net effect of incremental interest costs of $52 million ($0.12 per common share) from the increased amount and cost of debt resulting from the California energy crisis and the Utility’s Chapter 11 filing;

 

   

 

c.  

Increased costs of $4 million ($0.01 per common share) related to the Chapter 11 filings of the Utility and National Energy & Gas Transmission, Inc., or NEGT.  These costs generally consist of external legal consulting fees, financial advisory fees and other related costs and payments;

 

 

d.  

A change in the market value of non-cumulative dividend participation rights of $19 million ($0.05 per common share) related to the Holding Company’s $280 million of 9.5% Convertible Subordinated Notes; and

 

 

e.  

The Utility’s recognition of $17 million ($0.04 per common share) in charges related to obligations to invest in clean energy technology and donate land, included in the Settlement Agreement.

 

PG&E Corporation
      		 

Table 2: Earning Per Share from Operations,

 

First Quarter 2005 vs. First Quarter 2004

 

($/Share)

 

Q1 2004 EPS from Operations 1

$0.41 

Timing of 2003 GRC and attrition decision 2

0.15 

Higher equity earnings on rate base 3

0.03 

Fewer shares outstanding

0.02 

Miscellaneous items

      0.02 

 

0.22 

 

 

Lower earnings on the settlement regulatory asset 4

(0.04)

Increased estimate of environmental remediation

      (0.03)

 

(0.07)

 

 

Q1 2005 EPS from Operations 1

$0.56 

      

1    See Table 1 for a reconciliation of earnings per share, or EPS, from operations to EPS on a GAAP basis.

2    The CPUC issued a final decision in May 2004 that was retroactive to 2003.  As a result, first quarter earnings in 2004 did not include 2003 GRC and 2004 attrition revenues.

3   The Utility's equity ratio reached its authorized level of 52% in January 2005, compared to approximately 48% during the first quarter 2004.

4   The Utility earned a return on the settlement regulatory asset only through February 10, 2005 (when the energy recovery bonds were issued to refinance the settlement regulatory asset) as compared to a full quarter in 2004.

PG&E Corporation
Table 3:  Share Statistics              

First Quarter 2005 vs. First Quarter 2004

 

 

 

 

 

 

 

(shares in millions except per share amounts)

 

 

 

 

 

Common Stock Data

First 
Quarter         2005

 

First
 Quarter         2004

 

% Change

Book value per share - end of period1

$21.16

 

$18.36

 

15.25%

Weighted average common shares outstanding, basic

388

 

393

 

-1.27%

   Employee stock options, restricted stock, and

 

 

 

 

 

         PG&E Corporation shares held by grantor trusts

            4

 

             12

 

 

Weighted average common shares outstanding, diluted

392

 

405

 

-3.21%

   9.5% Convertible Subordinated Notes (participating securities)

          19

 

              19

 

 

Weighted average common shares outstanding and
participating securities, diluted

 

411

 

424

 

-3.07%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Common Shareholders' Equity per common share outstanding (excluding shares held by Elm Power Corporation, a wholly owned subsidiary of PG&E Corporation) at period end.

Source:  PG&E Corporation’s Condensed Consolidated Financial Statements and the Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.


PG&E CORPORATION

Table 4:  Pacific Gas and Electric company Operating Statistics

 

 

 

 

First Quarter 2005 vs. First Quarter 2004

 

 

 

 

 

 

First Quarter

 

2005

 

2004 

Electric Sales (in millions kWh)

 

 

 

   Residential

 

         7,442 

       

                7,422 

   Commercial

 

         7,466 

 

                7,477 

   Industrial

 

         3,455 

 

                3,355 

   Agricultural

 

             471 

 

                    497 

   BART, public street and highway lighting

 

             193 

 

                    115 

   Other electric utilities

 

                 7 

 

                        4 

Sales from Energy Deliveries

 

       19,034 

 

              18,870 

 

 

  

 

 

Total Electric Customers at March 31

 

  4,958,963 

 

        4,880,134 

 

 

 

 

 

Bundled Gas Sales (in millions MCF) 1

 

 

 
 

 

 

 

   Residential

 

               82 

 

                      85 

   Commercial

 

               26 

 

                      27 

   Industrial

 

                -   

 

                       -     

Total Bundled Gas Sales

 

             108 

 

                    112 

 

 

 

 

 

Total Transportation Only 1

 

             133 

 

                    144 

 

 

 

 

 

Total Gas Sales

 

             241 

 

                    256 

 

 

 

 

 

Total Gas Customers at March 31

 

  4,132,323 

 

        4,057,499 

 

 

 

 

 

 

 

 

 

 

Sources of Electric Energy (in millions kWh)

 

 

 

Utility Generation

 

 

 

 

   Nuclear

 

         4,653 

 

                4,322 

    Hydro (net)

 

         2,947 

 

                3,095 

   Fossil

 

             242 

 

                    224 

   Total Utility Generation

 

         7,842 

 

                7,641 

 

 

 

 

 

Purchased Power

 

 

 

 

   Qualifying Facilities

 

         4,354 

 

                4,673 

   Irrigation Districts

 

             498 

 

                1,056 

   Other Purchased Power

 

             154 

 

                    172 

   Spot Market Purchases/Sales, net

 

              (19)

 

                1,193 

   Total Purchased Power

 

         4,987 

 

                7,094 

 

 

 

 

 

Delivery from DWR

 

         5,044 

 

                4,561 

 

 

 

 

 

Delivery to Direct Access Customers

 

         2,102 

 

                2,101 

 

 

 

 

 

Other (includes energy loss)

 

           (941)

 

               (2,527)

 

 

 

 

  

Total Electric Energy Delivered

 

       19,034 

 

              18,870 

 

 

 

 

 

Diablo Canyon Performance

 

 

 

 

Overall capacity factor (including refuelings)

 

99%

 

91%

Refueling outage period

 

None

 

  3/22/04-6/7/04

Refueling outage duration during the quarter (days)

 

-

 

                     9.0

 

 

 

 

 

 

1   2004 amounts have been converted from decatherms, or DTh, to millions cubic feet, or MCF to conform to the 2005 presentation.

PG&E Corporation

 

Table 5:  2005 Earnings per Common Share Guidance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Low

High

 

 

 

 

 

 

  

 

 EPS Guidance on an Earnings from Operations Basis

 

$2.15 

$2.25 

 

 

 

 

 

 

 

Items Impacting Comparability:1

 

 

 

 

 

   Incremental interest expense 2

 

 

 

 

(0.08)

(0.05)

 

 

 

 

 

 

 

EPS Guidance on a GAAP Basis

 

 

 

 

$2.07 

$2.20 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1   The range of potential outcomes is developed using a range of dollar estimates and a range of estimated shares outstanding for the items presented.

2   The net expense, after tax, related to remaining generator disputed claims in the Utility's Chapter 11 proceeding, which are subject to resolution in the bankruptcy court.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6:  2006 Earnings per Common Share Guidance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Low

  

High

 

 

 

 

 

        

 

EPS Guidance on an Earnings from Operations Basis

 

      

$2.30  

        

$2.40  

 

 

 

 

 

 

Items Impacting Comparability

 

 

 

0.00

0.00

 

 

 

 

 

 

 EPS Guidance on a GAAP basis

 

 

 

$2.30  

$2.40  

 

 

 

 

 

 

 

 

 

Management's statements regarding 2005 and 2006 guidance for earnings from operations per share for PG&E Corporation constitute forward looking statements that are based on current expectations and assumptions which management believes are reasonable.  These statements are necessarily subject to various risks and uncertainties.  In addition to the risk that the assumptions on which the statements are based (including that the Utility earns an authorized return on equity of 11.22%, that the second series of energy recovery bonds is issued in late 2005, and that the Utility makes certain capital expenditures) prove to be inaccurate, many factors could cause actual results to differ materially from those contemplated by the forward-looking statements.  These factors are noted in PG&E Corporation's and Pacific Gas and Electric Company's Current Report on Form 8-K dated May 4, 2005 and are discussed in their combined Annual Report on Form 10-K for the year ended December 31, 2004 and their Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.


 PG&E Corporation
       

Table 7:  Rate Base - Pacific Gas and Electric Company

 

 

 

(in billions)

 

 

 

 

 

 

 

 

 

 

 

2004
Actual

 

2005
Estimated

 

2006
Estimated

Total Weighted Average Rate Base

$14.8

 

$15.3

 

$16.0
   

 

 

 

 

 

 

 

 

 



PG&E Corporation
               		         

Table 8:  General Earnings Sensitivities for 2005

 

 

 

 

 

PG&E Corporation and Pacific Gas and Electric Company

 

 

 

 

Variable

 

Description of Change

 

 

Estimated Earnings Impact

Rate base

+/-

$100 million change in rate base1

 

 

+/-

$6 million

 

 

 

 

 

 

 

 

 

 

Return on equity (ROE)

+/-

0.1% change in allowed ROE

 

 

+/-

$8 million

 

 

 

 

 

 

 

 

 

 

Share count

+/-

1% change in average shares

 

 

+/-

$0.02 per share

 

 

 

 

 

 

 

 

 

 

Revenues

+/-

$7 million change in revenues (pre-tax), including
Electric Transmission and California Gas Transmission

+/-

$0.01 per share

1 Assuming 11.22% return on equity and equity ratio of 52%.

PG&E Corporation
       

Table 9:  First Quarter 2005 Cash Flow Sources and Uses

 

PG&E Corporation Consolidated

 

(in millions)

 

Cash and cash equivalents, January 1, 2005

$       972

 

 

Sources of Cash

Cash from operations

          1,048

Debt issued

          1,874

Common stock issued

             120

Decrease in restricted cash

              26

Net proceeds from sale of assets

              11

Other, net

              26

 

$   3,105

 

 

Uses of Cash

Capital expenditures

$      349

Net repayments under credit facilities and short-term borrowings 

            300

Long-term debt matured, redeemed, or repurchased

            902

Rate reduction bonds matured

              74

Preferred stock redeemed

                2

Common stock repurchased

          1,065

Preferred dividends paid

                4

 

$   2,696

 

 

Cash and cash equivalents, March 31, 2005

$   1,381

 

 

Source:  PG&E Corporation’s Condensed Consolidated Statements of Cash Flows included in PG&E Corporation’s and Pacific Gas and Electric Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005              

PG&E Corporation        
     

Table 10:  Consolidated Cash Position

First Quarter 2005 vs. First Quarter 2004

(in millions)

 

 

 

 

 

 

 

Cash as of March 31,

 

 

               2005

 

              2004 

 

           Change

 

 

 

 

 

 

Net Cash Flow from Operating Activities

Holding Company 1

$13

 

($122)

 

$135 

Pacific Gas and Electric Company

1,035

 

1,009 

 

26 

 

$1,048

 

$887 

 

$161 

 

 

 

 

 

 

Consolidated Cash Balance

Holding Company 2

325

 

615 

 

  (290)

Pacific Gas and Electric Company 3

             1,056

 

            2,845 

 

             (1,789)

 

$1,381

 

$3,460 

 

($2,079)

 

 

 

 

 

 

Consolidated Restricted Cash Balance

Holding Company

1

 

363

 

(362)

Pacific Gas and Electric Company

              1,857

 

  7,446 

 

               (5,589)

 

$1,858

 

$7,809 

 

(5,951)

 

 

 

 

 

 

1    Reflects elimination of all inter-company transactions in consolidation.

2    Includes Pacific Venture Capital cash balance. 

3    These amounts do not include restricted cash.  The Utility's restricted cash includes amounts deposited in escrow related to the remaining disputed Chapter 11 claims, collateral required by the ISO and deposits under certain third party agreements.


Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

 

 PG&E Corporation
        		     

Table 11:  Long-Term Debt

 

 

 

First Quarter 2005 vs. Year End 2004

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

 

 

 

March 31,

 

December 31,

 

 

 

 

 

2005

 

2004

PG&E Corporation

 

 

 

 

 

Convertible subordinated notes, 9.50%, due 2010

$     280 

 

$      280 

 

Other long-term debt

                     - 

 

                     1 

 

Less: current portion

                     - 

 

                    (1)

 

 

 

 

 

          $     280 

 

          $      280

 

 

 

 

 

 

 

 

Utility

 

 

 

 

 

 

 

First Mortgage Bonds 1

 

 

 

 

 

3.26% to 6.05% bonds, due 2006-2034

$  5,300 

 

$  6,200 

 

 

Unamortized discount, net of premium

                   (17)

         

                  (17)

 

 

Total First Mortgage Bonds

                5,283 

 

               6,183 

 

Pollution control bond loan agreements, variable rates, due 2007

                   614 

 

                 614 

 

Pollution control bond loan agreement, 5.35%, due 2016

                   200 

 

                 200 

 

Pollution control bond loan agreements, 3.50%, due 2007

                   345 

 

                 345 

 

Pollution control bond reimbursement obligations, variable rates, due 2005

                   454 

 

                 454 

 

Other

 

 

                      3 

 

                     4 

 

Less: current portion

                  (457)

 

                (757)

 

 

 

 

 

                 6,442 

 

               7,043 

 

 

 

 

 

 

 

 

Total consolidated long-term debt, net of current portion

            $  6,722 

 

           $  7,323 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1    On April 22, 2005, the lien of the mortgage securing the First Mortgage Bonds was released and the First Mortgage Bonds were re-designated as senior unsecured notes.

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

 

PG&E Corporation 
      		     

Table 12:  Repayment Schedule and Interest Rates -- Long-Term Debt, Energy Recovery Bonds and Rate Reduction Bonds

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

2006

 

2007

 

2008

 

2009

 

Thereafter

 

Total

Long-Term Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

PG&E Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

Average fixed interest rates

  -

 

  -

 

  -

 

  -

 

  -

 

9.50%

 

9.50%

Fixed rate obligations

$        0

 

$        0

 

$        0

 

$        0

 

$        0

 

$    280

 

$     280

Utility

 

 

 

 

 

 

 

 

 

 

 

 

 

Average fixed interest rate

  -

 

  -

 

3.50%

 

  -

 

3.60%

 

5.78%

 

5.43%

Fixed rate obligations

$        0

 

$        0

 

$    345

 

$        0

 

$    600

 

$  4,683

 

$  5,628

Variable interest rate as of March 31, 2005

4.00%

 

3.26%

 

2.30%

 

  -

 

  -

 

  -

 

  -

Variable rate obligations

$    454

 

$    200

 

$    614

 

$        0

 

$        0

 

$        0

 

$  1,268

Other

             $        2

 

            $        1

 

            $        0

 

            $        0

 

            $        0

 

            $        0

 

            $3

Total consolidated long-term 

          $    456

 

        $    201

 

        $    959

 

            $        0

 

        $   600

 

     $ 4,963

 

     $  7,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Recovery Bonds & Rate Reduction Bonds

 

 

 

 

 

 

 

 

 

 

 

 

Utility

 

 

 

 

 

 

 

 

 

 

 

 

 

Average fixed interest rate

6.42%

 

6.44%

 

6.48%

 

  -

 

  -

 

  -

 

6.45%

Rate reduction bonds

$    216

 

$    290

 

$    290

 

$        0

 

$        0

 

$0

 

$     796

Average fixed interest rate

3.32%

 

3.55%

 

3.87%

 

3.87%

 

4.05%

 

4.35%

 

4.02%

Energy recovery bonds

$    140

 

$    221

 

$    230

 

$    239

 

$    248

 

$    810

 

$  1,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                                                                                                                                                                                                                                                                                                

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

 

PG&E Corporation
       

Table 13: PG&E Corporation

Condensed Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended March 31,

(in millions, except per share amounts)

2005

2004

Operating Revenues

Electric

       $

               1,660

$

           1,791

Natural gas

             1,009

                931

Total operating revenues

             2,669

             2,722

Operating Expenses

Cost of electricity

                396

                561

Cost of natural gas

                 620

                578

Operating and maintenance

                767

                816

Recognition of regulatory assets

                    -

            (4,900)

Depreciation, amortization and decommissioning

                 385

                312

Reorganization professional fees and expenses

                    -

                   2

Total operating (gain) expenses

             2,168

            (2,631)

Operating Income

                501

             5,353

Reorganization interest income

                    -

                   8

Interest income

                  21

                   6

Interest expense

               (161)

               (231)

Other expense, net

                   (1)

                (27)

Income Before Income Taxes

                360

             5,109

Income tax provision

                142

             2,076

Net Income

       $

                        218

              $

          3,033

Weighted Average Common Shares Outstanding, Basic

                 388

                393

Net Earnings Per Common Share, Basic

       $

   0.55

               $

             7.36

Net Earnings Per Common Share, Diluted

       $

              0.54

               $

             7.15

Dividends Declared Per Common Share

       $

          0.30

               $

-

 

 

 

 

 

 

 

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

      
PG&E Corporation
       

Table 14:  PG&E Corporation

 

Condensed Consolidated Balance Sheets

 

 

Balance At

 

 

(in millions)

March 31, 2005
(Unaudited)


December 31, 2004

 

 

ASSETS

 

Current Assets

 

Cash and cash equivalents

$     1,381 

$       972 

 

Restricted cash

1,858 

1,980 

 

Accounts receivable:

 

 
Customers (net of allowance for doubtful accounts of $88 million in 2005 and $93 million in 2004)

1,916 

2,085 

 

Regulatory balancing accounts

968 

1,021 

 

Inventories:

 

Gas stored underground

83 

175 

 

Materials and supplies

131 

129 

 

Prepaid expenses and other

                  55 

       

              46 

 

Total current assets

             6,392 

         6,408 

 

Property, Plant and Equipment

 

Electric

21,689 

21,519 

 

Gas

8,574 

8,526 

 

Construction work in progress

518 

449 

 

Other

                  15 

              15 

 
Total property, plant and equipment

30,796 

30,509 

 

Accumulated depreciation

           (11,728)

      (11,520)

 

Net property, plant and equipment

19,068 

18,989 

 

Other Noncurrent Assets

 

Regulatory assets

6,412 

6,526 

 

Nuclear decommissioning funds

1,627 

1,629 

 

Other

                 938 

              988 

 

Total other noncurrent assets

              8,977 

           9,143 

 

TOTAL ASSETS

         $  34,437 

      $  34,540 

 
           

 

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

 


PG&E Corporation

 
              

 

Table 14 (continued):  PG&E Corporation

 

Condensed Consolidated Balance Sheets

 

 

Balance At

 

 

(in millions)

March 31, 2005
(Unaudited)


December 31, 2004

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

Current Liabilities

 

Short-term borrowings

$             - 

$       300 

 

Long-term debt, classified as current

457 

758 

 

Rate reduction bonds, classified as current

290 

290 

 

Energy recovery bonds, classified as current

197 

- 

 

Accounts payable:

 

 
Trade creditors

500 

        

762 

 

Disputed claims and customer refunds

2,142 

2,142 

 

Regulatory balancing accounts

574 

369 

 

Other

499 

352 

 

Interest payable

432 

461 

 

Income taxes payable

388 

185 

 

Deferred income taxes

374 

394 

 

Other

                  879 

               905 

 
Total current liabilities

               6,732 

            6,918 

 

Noncurrent Liabilities

 

Long-term debt

6,722 

7,323 

 

Rate reduction bonds

506 

580 

 

Energy recovery bonds

1,691 

- 

 

Regulatory liabilities

3,869 

4,035 

 

Asset retirement obligations

1,325 

1,301 

 

Deferred income taxes

3,490 

3,531 

 

Deferred tax credits

119 

121 

 

Preferred stock of subsidiary with mandatory redemption provisions (redeemable, 6.30% and 6.57%, outstanding 4,800,000 shares, due 2005-2009)

120 

122 

 

Other

               1,756 

           1,690 

 
Total noncurrent liabilities

             19,598 

         18,703 

 

Commitments and Contingencies (Notes 1, 2, and 7)

 

Preferred Stock of Subsidiaries

286 

286 

 

Preferred Stock

 

Preferred stock, no par value, 80,000,000 shares, $100 par value, 5,000,000 shares, none issued

- 

- 

 

Common Shareholders' Equity

 

Common stock, no par value, authorized 800,000,000 shares, issued 393,170,435 common and 1,400,062 restricted shares in 2005 and 417,014,431 common and 1,601,710 restricted shares in 2004

6,196 

6,518 

 

Common stock held by subsidiary, at cost, 24,665,500 shares

(718)

(718)

 

Unearned compensation

(31)

(26)

 

Accumulated earnings

2,379 

2,863 

 

Accumulated other comprehensive loss

(5)

(4)

 
Total common shareholders' equity

7,821 

8,633 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$     34,437 

$    34,540 

 

 

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

 

PG&E Corporation
      
						                      	  
Table 15:  PG&E Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended
March 31,

 
(in millions)

2005

2004
      

Cash Flows From Operating Activities

 
  Net income

             $218 

 $3,033 

   Adjustments to reconcile net income to net cash provided by operating
     activities:

        Depreciation, amortization and decommissioning

385 

312 

        Recognition of regulatory assets

- 

       

(4,900)

        Deferred income taxes and tax credits, net

(63)

1,926 

        Other deferred charges and noncurrent liabilities

(45)

237 

        Tax benefit on employee stock options exercises

25 

- 

        Gain on sale of assets

- 

(16)

   Net effect of changes in operating assets and liabilities:

        Restricted cash

96 

(128)

        Accounts receivable

169 

352 

        Inventories

90 

82 

        Accounts payable

(115)

(257)

        Accrued taxes

202 

65 

        Regulatory balancing accounts, net

254 

(53)

        Other working capital

(182) 

287 

 
      Payments authorized by the bankruptcy court on amounts classified as liabilities
       subject to compromise

- 

(20)

   Other, net

14 

(33)

      

      

Net cash provided by operating activities

$ 1,048 

$  887 

Cash Flows From Investing Activities

   Capital expenditures

(349)

(342)

   Net proceeds from sale of assets

11 

18 

   Decrease (Increase) in restricted cash

26 

(6,917)

   Other, net

26 

(65)

 



  
      



  
      








Net cash used in investing
activities




(286)





(7,306)





















Cash Flows From Financing
Activities












   Net repayments
under credit facilities and short-term borrowings




(300)





- 









   Proceeds from
issuance of long-term debt, net of issuance costs of $153 million
in 2004




- 





6,547 









   Proceeds from
issuance of energy recovery bonds, net of issuance costs of $14
million in 2005




1,874 





- 









   Long-term debt
matured, redeemed or repurchased




(902)





(310)









   Rate reduction
bonds matured




(74)





(74)









   Preferred stock
with mandatory redemption provisions redeemed




(2)





- 









   Common stock
issued




120 





58 









   Common stock
repurchased




(1,065)





- 









   Preferred
dividends paid




(4)





- 









Net cash (used in) provided by
financing activities




(353)





6,221 









Net change in cash and cash
equivalents




 
409 





 (198)









Cash and cash equivalents at
January 1




972 





3,658 









Cash and cash equivalents at
March 31




$1,381 





$3,460 





















Supplemental disclosures of cash
flow information












  Cash received for:













     Reorganization interest
income




$6 





$8 









   Cash paid
for:












     Interest (net of amounts
capitalized)




267 





197 









     Income
taxes refunded, net




(14)





- 









     Reorganization professional
fees and expenses




- 





5 









Supplemental disclosures of
noncash investing and financing activities












     Common
stock dividends declared but not yet paid




111 





- 









 Transfer of liabilities and
other payables subject to compromise to operating

 assets and liabilities




$- 





$ (257)








  





  








Source:  PG&E
Corporation’s and Pacific Gas and Electric Company’s
Condensed Consolidated Financial Statements and Notes thereto
included in PG&E Corporation and Pacific Gas and Electric
Company's Quarterly Report on Form 10-Q for the quarter ended March
31, 2005.




















PG&E Corporation




    










Table 16:  Pacific Gas and
Electric Company











Condensed Consolidated Statements
Of Income











(Unaudited)



  


  


















Three Months Ended









(in millions)





March
31,











2005





             
2004









Operating Revenues




        









Electric






$   
1,660 






$   
1,791 










Natural gas





1,009 





931 
























Total operating revenues





2,669 





2,722 









Operating
Expenses














Cost of electricity





396 





561 










Cost of natural gas





620 





578 










Operating and maintenance





773 





808 










Recognition of regulatory
assets





- 





(4,900)










Depreciation, amortization and
decommissioning





385 





311 










Reorganization professional fees and
expenses





- 





2 












  




  










Total operating (gain)
expenses





2,174 





(2,640)









Operating Income





495 





5,362 










Reorganization interest
income





- 





8 










Interest income





20 





3 










Interest expense





(154)





(213)










Other income, net





4 





13 









Income Before Income
Taxes





365 





5,173 










Income tax provision





142 





2,099 









Net Income






223 





3,074 













Preferred dividend
requirement








4 





8 









Income Available for Common
Stock





$




219 





$




3,066 




















































Source:  PG&E
Corporation’s and Pacific Gas and Electric Company’s
Condensed Consolidated Financial Statements and Notes thereto
included in PG&E Corporation and Pacific Gas and Electric
Company's Quarterly Report on Form 10-Q for the quarter ended March
31, 2005.























PG&E Corporation



      









Table 17:  Pacific Gas and
Electric Company










Condensed Consolidated Balance
Sheets



  









Balance
At









(in millions)




March 31,

 2005

 (Unaudited)



  







December 31,
2004




























ASSETS













Current Assets













Cash and cash equivalents




$




1,056 





$




783 










Restricted cash




1,857 





1,980 










Accounts receivable:














Customers (net of allowance for
doubtful accounts of

 



          











$88 million in 2005 and $93 million in 2004)





1,916 





2,085 











Related parties




2 





2 











Regulatory balancing
accounts




968 





1,021 










Inventories:














Gas stored underground and fuel
oil




83 





175 











Materials and supplies




131 





129 










Prepaid expenses and
other




54 





43 























Total current
assets




6,067 





6,218 





















Property, Plant and
Equipment













Electric




21,689 





21,519 










Gas




8,574 





8,526 










Construction work in
progress




518 





449 























Total property, plant and
equipment




30,781 





30,494 










Accumulated depreciation




(11,715)





(11,507)























Net property, plant and
equipment




19,066 





18,987 





















Other Noncurrent
Assets













Regulatory assets




6,412 





6,526 










Nuclear decommissioning
funds




1,627 





1,629 










Other




892 





942 











  




  










Total other noncurrent
assets




8,931 





9,097 





















TOTAL ASSETS




$




34,064 





$




34,302 








  












Source:  PG&E
Corporation’s and Pacific Gas and Electric Company’s
Condensed Consolidated Financial Statements and Notes thereto
included in PG&E Corporation and Pacific Gas and Electric
Company's Quarterly Report on Form 10-Q for the quarter ended March
31, 2005.























PG&E Corporation




     









Table 17 (continued): 
Pacific Gas and Electric Company










Condensed Consolidated Balance
Sheets



  









Balance
At









(in millions)




March 31,

 2005

 (Unaudited)







|

December 31,
2004


















LIABILITIES AND SHAREHOLDERS'
EQUITY



          








Current
Liabilities













Short term borrowings




$




- 





$




300 










Long-term debt, classified as
current





457 






757 










Rate reduction bonds, classified as current




290 





290 










Energy recovery bonds, classified as current




197 





- 










Accounts payable:














Trade creditors




500 





762 











Disputed claims and customer
refunds




2,142 





2,142 











Related parties




20 





20 











Regulatory balancing
accounts




574 





369 











Other




484 





337 










Interest payable




426 





461 










Income taxes payable




322 





102 










Deferred income taxes




351 





377 










Other




741 





869 






















Total current
liabilities




6,504 





6,786 




















Noncurrent
Liabilities













Long-term debt




6,442 





7,043 










Rate reduction bonds




506 





580 










Energy recovery bonds




1,691 





- 










Regulatory liabilities




3,869 





4,035 










Asset retirement
obligations




1,325 





1,301 










Deferred income taxes




3,587 





3,629 










Deferred tax credits




119 





121 










Preferred stock with mandatory redemption provisions
   (redeemable, 6.30% and 6.57%, outstanding 4,800,000 shares,
   due 2005-2009)




120 





122 










Other




1,625 





1,555 






















Total noncurrent
liabilities




19,284 





18,386 









Commitments and Contingencies
(Notes 1, 2 and 7)












Shareholders' Equity













Preferred stock without mandatory
redemption provisions:
















   Nonredeemable, 5%
to 6%, outstanding 5,784,825 shares




145 





145 










   Redeemable, 4.36%
to 7.04%, outstanding 5,973,456 shares




149 





149 










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

 













   issued 299,291,477
shares




1,496 





1,606 










Common stock held by subsidiary, at
cost, 19,481,213 shares




(475)





(475)










Additional paid-in
capital




1,900 





2,041 










Reinvested earnings




5,066 





5,667 










Accumulated other comprehensive
loss




(5)





(3)











Total shareholders'
equity




8,276 





9,130 









TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY




$




34,064 





$




34,302 








  












Source:  PG&E
Corporation’s and Pacific Gas and Electric Company’s
Condensed Consolidated Financial Statements and Notes thereto
included in PG&E Corporation and Pacific Gas and Electric
Company's Quarterly Report on Form 10-Q for the quarter ended March
31, 2005.






 

 









PG&E Corporation

     








Table 18:  Pacific Gas and
Electric Company









Condensed Consolidated Statements
of Cash Flows










(Unaudited)



















Three Months
Ended










March
31,









(in millions)










2005





2004



















Cash Flows From Operating
Activities













Net income




$




223 





$




3,074 










Adjustments to reconcile net income
to net cash provided by operating activities:















Depreciation, amortization and
decommissioning




385 





311 












Recognition of regulatory
assets




- 





(4,900)












Deferred income taxes and tax
credits, net




(70)





2,014 











Other deferred charges and
noncurrent liabilities




(49)





279 











Gain on sale of assets




- 





(16)










Net effect of changes in operating
assets and liabilities:















Decrease (increase) in restricted
cash




97 





(126)












Accounts receivable




169 





353 












Inventories




90 





82 












Accounts payable




(115)





(256)












Accrued taxes




220 


        


98 












Regulatory balancing accounts,
net




254 





(53)












Other working capital




(179)





253 










Payments authorized by the
bankruptcy court on amounts classified as liabilities subject to
compromise




- 





(20)










Other, net




10 





(84)























Net cash provided by operating
activities




1,035 





1,009 























Cash Flows From Investing
Activities













Capital expenditures




(349)





(342)










Net proceeds from sale of
assets




11 





18 










Decrease (increase) in restricted
cash




26 





(6,917)










Other, net




26 





(65)









Net cash used in investing
activities




(286)





(7,306)























Cash Flows From Financing
Activities













Net repayments under credit facilities and short-term borrowings




(300)





- 










Proceeds from issuance of long-term debt, net of issuance costs of $153 million in 2004




- 





6,547 










Proceeds from issuance of energy recovery bonds, net of issuance costs of $14 million
 in 2005




1,874 





- 










Long-term debt matured, redeemed or
repurchased




(900)





(310)










Rate reduction bonds
matured




(74)





(74)










Common stock dividends
paid




(110)





- 










Preferred dividends paid




(4)





- 










Preferred stock with mandatory
redemption provisions redeemed




(2)





- 










Common stock repurchased




(960)





- 









Net cash (used in) provided by
financing activities




(476)





6,163 









Net change in cash and cash
equivalents




273 





(134)








Cash and cash equivalents at January 1



783





2,979









Cash and cash equivalents at
March 31




$




1,056 





$




2,845 









Supplemental disclosures of cash
flow information













Cash received for:














Reorganization interest
income




$




6 





$




8 










Cash paid for:












 





Interest (net of amounts
capitalized)




169 





175 









 





Income taxes paid, net




- 





- 











Reorganization professional fees and
expenses




- 





5 









Supplemental disclosures of
noncash investing and financing activities












Equity contribution for settlement
of POR payable





- 





(128)










Transfer of liabilities and other payables subject to compromise to operating assets and liabilities




$




- 





$




(257)


 







        










Source:  PG&E
Corporation’s and Pacific Gas and Electric Company’s
Condensed Consolidated Financial Statements and Notes thereto
included in PG&E Corporation and Pacific Gas and Electric
Company's Quarterly Report on Form 10-Q for the quarter ended March
31, 2005.