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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Assets And Liabilities Measured At Fair Value On A Recurring Basis

	Fair Value Measurements
	At September 30, 2012
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	226	$	-	$	-	$	-		$	226
Nuclear decommissioning trusts
Money market investments		25		-		-		-			25
U.S. equity securities		943		8		-		-			951
Non-U.S. equity securities		355		-		-		-			355
U.S. government and agency securities		725		145		-		-			870
Municipal securities		-		36		-		-			36
Other fixed-income securities		-		154		-		-			154
Total nuclear decommissioning trusts ⁽²⁾		2,048		343		-		-			2,391
Price risk management instruments (Note 7)
Electricity		2		71		60		12			145
Natural gas		-		9		4		(10	)		3
Total price risk management instruments		2		80		64		2			148
Rabbi trusts
Fixed-income securities		-		27		-		-			27
Life insurance contracts		-		71		-		-			71
Total rabbi trusts		-		98		-		-			98
Long-term disability trust
U.S. equity securities		5		13		-		-			18
Non-U.S. equity securities		-		12		-		-			12
Fixed-income securities		-		130		-		-			130
Total long-term disability trust		5		155		-		-			160
Total assets	$	2,281	$	676	$	64	$	2		$	3,023
Liabilities:
Price risk management instruments (Note 7)
Electricity	$	191	$	178	$	148	$	(195	)	$	322
Natural gas		12		10		-		(14	)		8
Total liabilities	$	203	$	188	$	148	$	(209	)	$	330

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

⁽²⁾ Excludes $236 million at September 30, 2012 primarily related to deferred taxes on appreciation of investment value.

	Fair Value Measurements
	At December 31, 2011
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	206	$	-	$	-	$	-		$	206
Nuclear decommissioning trusts
Money market investments		24		-		-		-			24
U.S. equity securities		841		8		-		-			849
Non-U.S. equity securities		323		-		-		-			323
U.S. government and agency securities		720		156		-		-			876
Municipal securities		-		58		-		-			58
Other fixed-income securities		-		99		-		-			99
Total nuclear decommissioning trusts ⁽²⁾		1,908		321		-		-			2,229
Price risk management instruments (Note 7)
Electricity		-		92		69		8			169
Natural gas		-		6		-		(3	)		3
Total price risk management instruments		-		98		69		5			172
Rabbi trusts
Fixed-income securities		-		25		-		-			25
Life insurance contracts		-		67		-		-			67
Total rabbi trusts		-		92		-		-			92
Long-term disability trust
U.S. equity securities		13		15		-		-			28
Non-U.S. equity securities		-		9		-		-			9
Fixed-income securities		-		145		-		-			145
Total long-term disability trust		13		169		-		-			182
Total assets	$	2,127	$	680	$	69	$	5		$	2,881
Liabilities:
Price risk management instruments (Note 7)
Electricity	$	411	$	289	$	143	$	(441	)	$	402
Natural gas		31		13		-		(32	)		12
Total liabilities	$	442	$	302	$	143	$	(473	)	$	414

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

⁽²⁾ Excludes $188 million at December 31, 2011 primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements And Sensitivity Analysis

	Fair Value at
(in millions)	September 30, 2012
Fair Value Measurement	Assets	Liabilities	Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$ 60	$ (8)	Market approach	CRR auction prices	$ (40.74) - $ 5.10
Power purchase agreements	$ -	$ (140)	Discounted cash flow	Forward prices	$ 7.87 - $ 61.84

⁽¹⁾ Represents price per megawatt-hour.

Level 3 Reconciliation

	Price Risk Management Instruments
(in millions)	2012			2011
Liability balance as of July 1	$	(80	)	$	(280	)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		(4	)		(1	)
Liability balance as of September 30	$	(84	)	$	(281	)

⁽¹⁾ Price risk management activity is recoverable through customer rates. Therefore, net income was not impacted by realized amounts. Unrealized gains and losses are deferred in regulatory liabilities and assets.

	Price Risk Management Instruments
(in millions)	2012			2011
Liability balance as of January 1	$	(74	)	$	(399	)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		(10	)		118
Liability balance as of September 30	$	(84	)	$	(281	)

Carrying Amount And Fair Value Of Financial Instruments

	September 30, 2012				December 31, 2011
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 4)
PG&E Corporation	$	349	$	376	$	349	$	380
Utility		11,644		14,151		10,545		12,543
Energy recovery bonds (Note 4)		110		111		423		433

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, 2012
Money market investments	$	25	$	-	$	-		$	25
Equity securities
U.S.		328		624		(1	)		951
Non-U.S.		198		158		(1	)		355
Debt securities
U.S. government and agency securities		765		106		(1	)		870
Municipal securities		32		4		-			36
Other fixed-income securities		149		5		-			154
Total	$	1,497	$	897	$	(3	)	$	2,391
As of December 31, 2011
Money market investments	$	24	$	-	$	-		$	24
Equity securities
U.S.		334		518		(3	)		849
Non-U.S.		194		131		(2	)		323
Debt securities
U.S. government and agency securities		774		102		-			876
Municipal securities		56		2		-			58
Other fixed-income securities		96		3		-			99
Total	$	1,478	$	756	$	(5	)	$	2,229

⁽¹⁾ Excludes $236 million and $188 million at September 30, 2012 and December 31, 2011, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule Of Maturities On Debt Instruments

(in millions)	As of September 30, 2012
Less than 1 year	$	6
1-5 years		468
5-10 years		219
More than 10 years		367
Total maturities of debt securities	$	1,060

Schedule Of Activity For Debt And Equity Securities

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
(in millions)
Proceeds from sales and maturities of nuclear decommissioning trust investments	$	237		$	567		$	903		$	1,574
Gross realized gains on sales of securities held as available-for-sale		3			11			17			40
Gross realized losses on sales of securities held as available-for-sale		(6	)		(7	)		(13	)		(14	)

- 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 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 (loss) 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, issues, 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.

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