Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Assets And Liabilities Measured At Fair Value On A Recurring Basis

Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility.

	Fair Value Measurements
	At June 30, 2017
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	121	$	-	$	-	$	-	$	121
Nuclear decommissioning trusts
Short-term investments		10		-		-		-		10
Global equity securities		1,786		-		-		-		1,786
Fixed-income securities		740		571		-		-		1,311
Assets measured at NAV		-		-		-		-		16
Total nuclear decommissioning trusts (2)		2,536		571		-		-		3,123
Price risk management instruments
(Note 7)
Electricity		5		9		158		3		175
Gas		2		5		-		(1)		6
Total price risk management
instruments		7		14		158		2		181
Rabbi trusts
Fixed-income securities		-		63		-		-		63
Life insurance contracts		-		71		-		-		71
Total rabbi trusts		-		134		-		-		134
Long-term disability trust
Short-term investments		5		-		-		-		5
Assets measured at NAV		-		-		-		-		156
Total long-term disability trust		5		-		-		-		161
TOTAL ASSETS	$	2,669	$	719	$	158	$	2	$	3,720
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	12	$	17	$	110	$	(30)	$	109
Gas		-		1		-		-		1
TOTAL LIABILITIES	$	12	$	18	$	110	$	(30)	$	110

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

(2) Represents amount before deducting $390 million, primarily related to deferred taxes on appreciation of investment value.

	Fair Value Measurements
	At December 31, 2016
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	105	$	-	$	-	$	-	$	105
Nuclear decommissioning trusts
Short-term investments		9		-		-		-		9
Global equity securities		1,724		-		-		-		1,724
Fixed-income securities		665		527		-		-		1,192
Assets measured at NAV		-		-		-		-		14
Total nuclear decommissioning trusts (2)		2,398		527		-		-		2,939
Price risk management instruments
(Note 9 in the 2016 Form 10-K)
Electricity		30		18		181		(18)		211
Gas		-		11		-		-		11
Total price risk management
instruments		30		29		181		(18)		222
Rabbi trusts
Fixed-income securities		-		61		-		-		61
Life insurance contracts		-		70		-		-		70
Total rabbi trusts		-		131		-		-		131
Long-term disability trust
Short-term investments		8		-		-		-		8
Assets measured at NAV		-		-		-		-		170
Total long-term disability trust		8		-		-		-		178
TOTAL ASSETS	$	2,541	$	687	$	181	$	(18)	$	3,575
Liabilities:
Price risk management instruments
(Note 9 in the 2016 Form 10-K)
Electricity	$	9	$	12	$	126	$	(21)	$	126
Gas		-		2		-		(1)		1
TOTAL LIABILITIES	$	9	$	14	$	126	$	(22)	$	127

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

(2) Represents amount before deducting $333 million, primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements And Sensitivity Analysis

	Fair Value at
(in millions)	At June 30, 2017				Valuation	Unobservable
Fair Value Measurement	Assets		Liabilities		Technique	Input	Range (1)
Congestion revenue rights	$	158	$	37	Market approach	CRR auction prices	$	(11.88) - 10.54
Power purchase agreements	$	-	$	73	Discounted cash flow	Forward prices	$	18.81 - 38.80

(1) Represents price per megawatt-hour

	Fair Value at
(in millions)	At December 31, 2016				Valuation	Unobservable
Fair Value Measurement	Assets		Liabilities		Technique	Input	Range (1)
Congestion revenue rights	$	181	$	35	Market approach	CRR auction prices	$	(11.88) - 6.93
Power purchase agreements	$	-	$	91	Discounted cash flow	Forward prices	$	18.07 - 38.80

(1) Represents price per megawatt-hour

Level 3 Reconciliation

The following table presents the reconciliation for Level 3 price risk management instruments for the three and six months ended June 30, 2017 and 2016:

	Price Risk Management Instruments
(in millions)	2017		2016
Asset (liability) balance as of April 1	$	49		$	75
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts (1)		(1)			(9)
Asset (liability) balance as of June 30	$	48		$	66

(1)  The costs related to price risk management activities are fully passed through to customers in rates.  Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

	Price Risk Management Instruments
(in millions)	2017		2016
Asset (liability) balance as of January 1	$	55		$	89
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts (1)		(7)			(23)
Asset (liability) balance as of June 30	$	48		$	66

(1)  The costs related to price risk management activities are fully passed through to customers in rates.  Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

Carrying Amount And Fair Value Of Financial Instruments

The carrying amount and fair value of PG&E Corporation’s and the Utility’s debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values):

	At June 30, 2017				At December 31, 2016
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
PG&E Corporation	$	348	$	352	$	348	$	352
Utility		16,208		18,583		15,813		17,790

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

The following table provides a summary of available-for-sale investments:

				Total		Total
	Amortized			Unrealized		Unrealized		Total Fair
(in millions)	Cost			Gains		Losses		Value
As of June 30, 2017
Nuclear decommissioning trusts
Short-term investments	$	10	$	-	$	-	$	10
Global equity securities		527		1,277		(2)		1,802
Fixed-income securities		1,260		57		(6)		1,311
Total (1)	$	1,797	$	1,334	$	(8)	$	3,123
As of December 31, 2016
Nuclear decommissioning trusts
Short-term investments	$	9	$	-	$	-	$	9
Global equity securities		584		1,157		(3)		1,738
Fixed-income securities		1,156		48		(12)		1,192
Total (1)	$	1,749	$	1,205	$	(15)	$	2,939

(1) Represents amounts before deducting $390 million and $333 million at June 30,2017 and December 31, 2016, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule Of Maturities On Debt Instruments

The fair value of fixed-income securities by contractual maturity is as follows:

	As of
(in millions)	June 30, 2017
Less than 1 year	$	6
1–5 years		452
5–10 years		308
More than 10 years		545
Total maturities of fixed-income securities	$	1,311

Schedule Of Activity For Debt And Equity Securities

The following table provides a summary of activity for fixed income and equity securities:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2017		2016				2017		2016
(in millions)
Proceeds from sales and maturities of nuclear decommissioning
trust investments	$	324		$	282	$		794		$	721
Gross realized gains on securities held as available-for-sale		13			4			42			9
Gross realized losses on securities held as available-for-sale		(3)			(1)			(8)			(3)