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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Assets And Liabilities Measured At Fair Value On A Recurring Basis

	Fair Value Measurements
	At September 30, 2013
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	214	$	-	$	-	$	-		$	214
Nuclear decommissioning trusts
Money market investments		26		-		-		-			26
U.S. equity securities		1,009		10		-		-			1,019
Non-U.S. equity securities		435		-		-		-			435
U.S. government and agency securities		782		148		-		-			930
Municipal securities		-		26		-		-			26
Other fixed-income securities		-		128		-		-			128
Total nuclear decommissioning trusts ⁽²⁾		2,252		312		-		-			2,564
Price risk management instruments
(Note 7)
Electricity		1		27		65		2			95
Gas		-		4		-		-			4
Total price risk management instruments		1		31		65		2			99
Rabbi trusts
Fixed-income securities		-		30		-		-			30
Life insurance contracts		-		70		-		-			70
Total rabbi trusts		-		100		-		-			100
Long-term disability trust
Money market investments		5		-		-		-			5
U.S. equity securities		-		11		-		-			11
Non-U.S. equity securities		-		10		-		-			10
Fixed-income securities		-		116		-		-			116
Total long-term disability trust		5		137		-		-			142
Other investments		51		-		-		-			51
Total assets	$	2,523	$	580	$	65	$	2		$	3,170
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	53	$	100	$	147	$	(140	)	$	160
Gas		6		5		-		(6	)		5
Total liabilities	$	59	$	105	$	147	$	(146)		$	165

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

⁽²⁾ Represents amount before deducting $292 million of deferred taxes primarily related to 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⁾ Represents amount before deducting $240 million of deferred taxes primarily related to appreciation of investment value.

Level 3 Measurements And Sensitivity Analysis

	Fair Value at
(in millions)	September 30, 2013
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$	65	$	13	Market approach	CRR auction prices	$	(7.58) - 7.93
Power purchase agreements	$	-	$	134	Discounted cash flow	Forward prices	$	10.36 - 54.86

⁽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

	Price Risk Management Instruments
(in millions)	2013			2012
Liability balance as of July 1	$	(76)		$	(80)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		(6	)		(4	)
Liability balance as of September 30	$	(82)		$	(84)

⁽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	)		(10	)
Liability balance as of September 30	$	(82)		$	(84)

Carrying Amount And Fair Value Of Financial Instruments

	September 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	$	359	$	349	$	371
Utility		11,934		12,750		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 September 30, 2013
Nuclear decommissioning trusts
Money market investments	$	26	$	-	$	-		$	26
Equity securities
U.S.		267		753		(1	)		1,019
Non-U.S.		205		230		-			435
Debt securities
U.S. government and agency securities		870		63		(3	)		930
Municipal securities		24		2		-			26
Other fixed-income securities		128		1		(1	)		128
Total nuclear decommissioning trusts ⁽¹⁾		1,520		1,049		(5	)		2,564
Other investments		13		38		-			51
Total	$	1,533	$	1,087	$	(5)		$	2,615
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⁾ Represents amounts before deducting $292 million and $240 million at September 30, 2013 and December 31, 2012, respectively, of deferred taxes primarily related to appreciation of investment value.

Schedule Of Maturities On Debt Instruments

	As of
(in millions)	September 30, 2013
Less than 1 year	$	17
1-5 years		512
5-10 years		241
More than 10 years		314
Total maturities of debt securities	$	1,084

Schedule Of Activity For Debt And Equity Securities

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012				2013		2012
(in millions)
Proceeds from sales and maturities of nuclear decommissioning
trust investments	$	357		$	237		$	1,152		$	903
Gross realized gains on sales of securities held as available-for-sale		7			3			44			17
Gross realized losses on sales of securities held as available-for-sale		(4	)		(6	)		(10	)		(13	)

- 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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