XML 26 R24.htm IDEA: XBRL DOCUMENT

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Assets And Liabilities Measured At Fair Value On A Recurring Basis

	Fair Value Measurements
	At June 30, 2013
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	222	$	-	$	-	$	-		$	222
Nuclear decommissioning trusts
Money market investments		32		-		-		-			32
U.S. equity securities		956		10		-		-			966
Non-U.S. equity securities		391		-		-		-			391
U.S. government and agency securities		759		135		-		-			894
Municipal securities		-		31		-		-			31
Other fixed-income securities		-		166		-		-			166
Total nuclear decommissioning trusts ⁽²⁾		2,138		342		-		-			2,480
Price risk management instruments
(Note 7)
Electricity		-		26		72		15			113
Gas		1		3		-		(3	)		1
Total price risk management instruments		1		29		72		12			114
Rabbi trusts
Fixed-income securities		-		29		-		-			29
Life insurance contracts		-		71		-		-			71
Total rabbi trusts		-		100		-		-			100
Long-term disability trust
Money market investments		3		-		-		-			3
U.S. equity securities		-		13		-		-			13
Non-U.S. equity securities		-		12		-		-			12
Fixed-income securities		-		123		-		-			123
Total long-term disability trust		3		148		-		-			151
Other investments		56		-		-		-			56
Total assets	$	2,420	$	619	$	72	$	12		$	3,123
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	85	$	112	$	148	$	(183	)	$	162
Gas		6		5		-		(6	)		5
Total liabilities	$	91	$	117	$	148	$	(189)		$	167

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

⁽²⁾ Excludes $266 million at June 30, 2013 primarily related to deferred taxes on appreciation of investment value.

	Fair Value Measurements
	At December 31, 2012
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	209	$	-	$	-	$	-		$	209
Nuclear decommissioning trusts
Money market investments		21		-		-		-			21
U.S. equity securities		940		9		-		-			949
Non-U.S. equity securities		379		-		-		-			379
U.S. government and agency securities		681		139		-		-			820
Municipal securities		-		59		-		-			59
Other fixed-income securities		-		173		-		-			173
Total nuclear decommissioning trusts ⁽²⁾		2,021		380		-		-			2,401
Price risk management instruments
(Note 7)
Electricity		1		60		80		6			147
Gas		-		5		1		(6	)		-
Total price risk management instruments		1		65		81		-			147
Rabbi trusts
Fixed-income securities		-		30		-		-			30
Life insurance contracts		-		72		-		-			72
Total rabbi trusts		-		102		-		-			102
Long-term disability trust
Money market investments		10		-		-		-			10
U.S. equity securities		-		14		-		-			14
Non-U.S. equity securities		-		11		-		-			11
Fixed-income securities		-		136		-		-			136
Total long-term disability trust		10		161		-		-			171
Total assets	$	2,241	$	708	$	81	$	-		$	3,030
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	155	$	144	$	160	$	(156	)	$	303
Gas		8		9		-		(9	)		8
Total liabilities	$	163	$	153	$	160	$	(165)		$	311

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

⁽²⁾ Excludes $240 million at December 31, 2012 primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements And Sensitivity Analysis

	Fair Value at
(in millions)	June 30, 2013
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$	72	$	14	Market approach	CRR auction prices	$	(10.54) - 7.93
Power purchase agreements	$	-	$	134	Discounted cash flow	Forward prices	$	10.16 - 56.80

⁽¹⁾ Represents price per megawatt-hour

	Fair Value at
(in millions)	December 31, 2012
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$	80	$	16	Market approach	CRR auction prices	$	(9.04) - 55.15
Power purchase agreements	$	-	$	145	Discounted cash flow	Forward prices	$	8.59 - 62.90

⁽¹⁾Represents price per megawatt-hour

Level 3 Reconciliation

The following tables present the reconciliation for Level 3 price risk management instruments for the three and six months ended June 30, 2013 and 2012:

	Price Risk Management Instruments
(in millions)	2013			2012
Liability balance as of April 1	$	(75)		$	(99)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		(1	)		19
Liability balance as of June 30	$	(76)		$	(80)

⁽¹⁾ The costs related to price risk management activities are recoverable through customer rates, therefore, balancing account revenue is recorded for amounts settled and purchased and there is no impact to net income. Unrealized gains and losses are deferred in regulatory liabilities and assets.

	Price Risk Management Instruments
(in millions)	2013		2012
Liability balance as of January 1	$	(79)	$	(74)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		3		(6	)
Liability balance as of June 30	$	(76)	$	(80)

Carrying Amount And Fair Value Of Financial Instruments

	June 30, 2013				December 31, 2012
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 4)
PG&E Corporation	$	350	$	363	$	349	$	371
Utility		11,933		13,076		11,645		13,946

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

				Total		Total
	Amortized			Unrealized		Unrealized			Total Fair
(in millions)	Cost			Gains		Losses			Value
As of June 30, 2013
Nuclear decommissioning trusts
Money market investments	$	32	$	-	$	-		$	32
Equity securities
U.S.		262		704		-			966
Non-U.S.		205		188		(2	)		391
Debt securities
U.S. government and agency securities		831		67		(4	)		894
Municipal securities		29		2		-			31
Other fixed-income securities		166		2		(2	)		166
Total nuclear decommissioning trusts ⁽¹⁾		1,525		963		(8	)		2,480
Other investments		13		43		-			56
Total	$	1,538	$	1,006	$	(8)		$	2,536
As of December 31, 2012
Nuclear decommissioning trusts
Money market investments	$	21	$	-	$	-		$	21
Equity securities
U.S.		331		618		-			949
Non-U.S.		199		181		(1	)		379
Debt securities
U.S. government and agency securities		723		97		-			820
Municipal securities		56		4		(1	)		59
Other fixed-income securities		168		5		-			173
Total ⁽¹⁾	$	1,498	$	905	$	(2)		$	2,401

⁽¹⁾ Excludes $266 million and $240 million at June 30, 2013 and December 31, 2012, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule Of Maturities On Debt Instruments

	As of
(in millions)	June 30, 2013
Less than 1 year	$	28
1-5 years		503
5-10 years		221
More than 10 years		339
Total maturities of debt securities	$	1,091

Schedule Of Activity For Debt And Equity Securities

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012				2013		2012
(in millions)
Proceeds from sales and maturities of nuclear decommissioning
trust investments	$	432		$	315		$	795		$	666
Gross realized gains on sales of securities held as available-for-sale		25			7			37			14
Gross realized losses on sales of securities held as available-for-sale		(5	)		(5	)		(6	)		(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 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.

+ References+ Details