Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Volumes Of Outstanding Derivative Contracts


		Contract Volume ⁽¹⁾
Underlying Product	Instruments	Less Than 1 Year		Greater Than 1 Year but Less Than 3 Years		Greater Than 3 Years but Less Than 5 Years		Greater Than 5 Years ⁽²⁾
Natural Gas ⁽³⁾ (MMBtus ⁽⁴⁾)	Forwards and Swaps		415,332,102		156,732,291		5,680,000		-
	Options		256,620,196		277,662,141		7,000,000		-
Electricity (Megawatt-hours)	Forwards and Swaps		5,010,023		4,314,021		2,009,505		3,081,447
	Options		-		174,559		239,233		183,964
	Congestion Revenue Rights		58,606,638		73,139,741		73,207,008		44,412,837


⁽¹⁾ Amounts shown reflect the total gross derivative volumes by commodity type that are expected to settle in each period. ⁽²⁾ Derivatives in this category expire between 2017 and 2022. ⁽³⁾Amounts shown are for the combined positions of the electric fuels and core gas portfolios. ⁽⁴⁾Million British Thermal Units.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value


	Commodity Risk
(in millions)	Gross Derivative Balance		Netting		Cash Collateral		Total Derivative Balance
Current assets – other		$ 52		$ (32)		$ 96		$ 116
Other noncurrent assets – other		101		(50)		-		51
Current liabilities – other		(399)		32		212		(155)
Noncurrent liabilities – other		(309)		50		37		(222)

Total commodity risk		$ (555)		$ -		$ 345		$ (210)

At December 31, 2011, PG&E Corporation’s and the Utility’s outstanding derivative balances were as follows:


	Commodity Risk
(in millions)	Gross Derivative Balance		Netting		Cash Collateral		Total Derivative Balance
Current assets – other		$ 54		$ (39)		$ 103		$ 118
Other noncurrent assets – other		113		(59)		-		54
Current liabilities – other		(489)		39		274		(176)
Noncurrent liabilities – other		(398)		59		101		(238)

Total commodity risk		$ (720)		$ -		$ 478		$ (242)

Gains And Losses On Derivative Instruments


	Commodity Risk
	Three months ended June 30,				Six months ended June 30,
(in millions)	2012		2011		2012		2011
Unrealized gain/(loss) - regulatory assets and liabilities ⁽¹⁾		$ 219		$ 21		$ 165		$ 158
Realized gain/(loss) - cost of electricity ⁽²⁾		(125)		(122)		(275)		(258)
Realized gain/(loss) - cost of natural gas ⁽²⁾		(5)		(6)		(27)		(61)


Total commodity risk instruments		$ 89		$ (107)		$ (137)		$ (161)



⁽¹⁾ Unrealized gains and losses on commodity risk-related derivative instruments are recorded to regulatory assets or liabilities, rather than being recorded to the Condensed Consolidated Statements of Income. These amounts exclude the impact of cash collateral postings. ⁽²⁾ These amounts are fully passed through to customers in rates. Accordingly, net income was not impacted by realized amounts on these instruments.

Additional Cash Collateral The Utility Would Be Required To Post If Its Credit Risk-Related Contingency Features Were Triggered


(in millions)
Derivatives in a liability position with credit risk-related contingencies that are not fully collateralized			$ (443)
Related derivatives in an asset position			75
Collateral posting in the normal course of business related to these derivatives			209

Net position of derivative contracts/additional collateral posting requirements ⁽¹⁾			$ (159)



⁽¹⁾ This calculation excludes the impact of closed but unpaid positions, as their settlement is not impacted by any of the Utility’s credit risk-related contingencies.

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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