Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Assets And Liabilities Measured At Fair Value On A Recurring Basis


	Fair Value Measurements
	At September 30, 2011										At December 31, 2010
(in millions)	Level 1		Level 2		Level 3		Netting⁽ ¹ ⁾		Total		Level 1		Level 2		Level 3		Netting⁽ ¹ ⁾		Total
Assets:
Money market investments		$ 223		$ -		$ -		$ -		$ 223		$ 138		$ -		$ -		$ -		$ 138

Nuclear decommissioning trusts
U.S. equity securities		786		12		-		-		798		1,029		7		-		-		1,036
Non-U.S. equity securities		311		-		-		-		311		349		-		-		-		349
U.S. government and agency securities		715		150		-		-		865		584		40		-		-		624
Municipal securities		-		65		-		-		65		-		119		-		-		119
Other fixed-income securities		-		94		-		-		94		-		66		-		-		66

Total nuclear decommissioning trusts ⁽ ² ⁾		1,812		321		-		-		2,133		1,962		232		-		-		2,194

Price risk management instruments (Note 7)
Electric		-		-		166		24		190		6		2		119		63		190
Gas		-		-		9		(1)		8		-		-		6		5		11

Total price risk management instruments		-		-		175		23		198		6		2		125		68		201

Rabbi trusts
Fixed-income securities		-		26		-		-		26		-		24		-		-		24
Life insurance contracts		-		67		-		-		67		-		65		-		-		65

Total rabbi trusts		-		93		-		-		93		-		89		-		-		89

Long-term disability trust
U.S. equity securities		4		13		-		-		17		11		24		-		-		35
Non-U.S. equity securities		-		9		-		-		9		-		-		-		-		-
Fixed-income securities		-		132		-		-		132		-		150		-		-		150

Total long-term disability trust		4		154		-		-		158		11		174		-		-		185

Total assets		$ 2,039		$ 568		$ 175		$ 23		$ 2,805		$ 2,117		$ 497		$ 125		$ 68		$ 2,807

Liabilities:
Price risk management instruments (Note 7)
Electric		$ 299		$ 12		$ 448		$ (329)		$ 430		$ 235		$ 73		$ 475		$ (315)		$ 468
Gas		49		3		8		(52)		8		41		1		49		(41)		50

Total liabilities		$ 348		$ 15		$ 456		$ (381)		$ 438		$ 276		$ 74		$ 524		$ (356)		$ 518

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

⁽²⁾	Excludes $169 million and $185 million at September 30, 2011 and December 31, 2010, respectively, primarily related to deferred taxes on appreciation of investment value.

Level 3 Reconciliation


(in millions)	Price Risk Management Instruments

	2011		2010
Liability balance as of July 1		$ (280)		$ (470)

Realized and unrealized gains (losses):
Included in cost of electricity or cost of natural gas ⁽¹⁾		4		(14)
Included in regulatory assets and liabilities		(89)		(223)
Purchases, issuances, sales, and settlements:
Purchases		53		49
Settlements		31		60


Liability balance as of September 30		$ (281)		$ (598)

⁽¹⁾	Balancing account revenue is recorded for these amounts, therefore, there is no impact to net income.

The following tables present the reconciliation for Level 3 price risk management instruments for the nine months ended September 30, 2011 and 2010, respectively:


(in millions)	Price Risk Management Instruments

	2011		2010
Liability balance as of January 1		$ (399)		$ (250)

Realized and unrealized gains (losses):
Included in cost of electricity or cost of natural gas ⁽¹⁾		20		(76)
Included in regulatory assets and liabilities		(190)		(558)
Purchases, issuances, sales, and settlements:
Purchases		153		141
Settlements		135		145


Liability balance as of September 30		$ (281)		$ (598)

⁽¹⁾	Balancing account revenue is recorded for these amounts, therefore, there is no impact to net income.

Carrying Amount And Fair Value Of Financial Instruments


	At September 30, 2011				At December 31, 2010
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Debt (Note 4)
PG&E Corporation		$ 349		$ 385		$ 349		$ 383
Utility		10,295		11,797		10,444		11,314
Energy recovery bonds (Note 4)		528		544		827		862

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


(in millions)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Total Fair Value ⁽¹⁾
As of September 30, 2011
Equity securities
U.S.		$ 377		$ 432		$ (11)		$ 798
Non-U.S.		201		119		(9)		311
Debt securities
U.S. government and agency securities		764		101		-		865
Municipal securities		63		2		-		65
Other fixed-income securities		91		3		-		94

Total		$ 1,496		$ 657		$ (20)		$ 2,133

As of December 31, 2010
Equity securities
U.S.		$ 509		$ 529		$ (2)		$ 1,036
Non-U.S.		180		170		(1)		349
Debt securities
U.S. government and agency securities		571		55		(2)		624
Municipal securities		119		1		(1)		119
Other fixed-income securities		65		1		-		66

Total		$ 1,444		$ 756		$ (6)		$ 2,194


⁽¹⁾ Excludes $169 million and $185 million at September 30, 2011 and December 31, 2010, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule Of Maturities On Debt Securities


(in millions)	As of September 30, 2011
Less than 1 year		$ 61
1–5 years		326
5–10 years		299
More than 10 years		338

Total maturities of debt securities		$ 1,024

Schedule Of Activity For Debt And Equity Securities


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
(in millions)
Proceeds from sales and maturities of nuclear decommissioning trust investments		$ 567		$ 277		$ 1,574		$ 962
Gross realized gains on sales of securities held as available-for-sale		11		4		40		26
Gross realized losses on sales of securities held as available-for-sale		(7)		(2)		(14)		(8)

- 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 during the period 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 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, issuances, 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.

+ References+ Details