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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Assets And Liabilities Measured At Fair Value On A Recurring Basis

	Fair Value Measurements
	At September 30, 2014
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	53	$	-	$	-	$	-		$	53
Nuclear decommissioning trusts
Money market investments		16		-		-		-			16
U.S. equity securities		1,118		12		-		-			1,130
Non-U.S. equity securities		432		1		-		-			433
U.S. government and agency securities		745		164		-		-			909
Municipal securities		-		54		-		-			54
Other fixed-income securities		-		163		-		-			163
Total nuclear decommissioning trusts ⁽²⁾		2,311		394		-		-			2,705
Price risk management instruments
(Note 7)
Electricity		1		29		95		5			130
Gas		3		4		-		-			7
Total price risk management instruments		4		33		95		5			137
Rabbi trusts
Fixed-income securities		-		41		-		-			41
Life insurance contracts		-		71		-		-			71
Total rabbi trusts		-		112		-		-			112
Long-term disability trust
Money market investments		4		-		-		-			4
U.S. equity securities		-		9		-		-			9
Non-U.S. equity securities		-		12		-		-			12
Fixed-income securities		-		107		-		-			107
Total long-term disability trust		4		128		-		-			132
Other investments		36		-		-		-			36
Total assets	$	2,408	$	667	$	95	$	5		$	3,175
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	9	$	17	$	115	$	(16	)	$	125
Gas		3		-		-		-			3
Total liabilities	$	12	$	17	$	115	$	(16)		$	128

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

⁽²⁾ Represents amount before deducting $306 million, primarily related to deferred taxes on appreciation of investment value.

	Fair Value Measurements
	At December 31, 2013
(in millions)	Level 1		Level 2		Level 3		Netting ⁽¹⁾			Total
Assets:
Money market investments	$	226	$	-	$	-	$	-		$	226
Nuclear decommissioning trusts
Money market investments		38		-		-		-			38
U.S. equity securities		1,046		11		-		-			1,057
Non-U.S. equity securities		457		-		-		-			457
U.S. government and agency securities		760		156		-		-			916
Municipal securities		-		25		-		-			25
Other fixed-income securities		-		162		-		-			162
Total nuclear decommissioning trusts ⁽²⁾		2,301		354		-		-			2,655
Price risk management instruments
(Note 7)
Electricity		2		27		107		3			139
Gas		-		5		-		(1	)		4
Total price risk management instruments		2		32		107		2			143
Rabbi trusts
Fixed-income securities		-		39		-		-			39
Life insurance contracts		-		70		-		-			70
Total rabbi trusts		-		109		-		-			109
Long-term disability trust
Money market investments		9		-		-		-			9
U.S. equity securities		-		14		-		-			14
Non-U.S. equity securities		-		12		-		-			12
Fixed-income securities		-		122		-		-			122
Total long-term disability trust		9		148		-		-			157
Other investments		84		-		-		-			84
Total assets	$	2,622	$	643	$	107	$	2		$	3,374
Liabilities:
Price risk management instruments
(Note 7)
Electricity	$	19	$	72	$	137	$	(84	)	$	144
Gas		1		3		-		(1	)		3
Total liabilities	$	20	$	75	$	137	$	(85)		$	147

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

⁽²⁾ Represents amount before deducting $313 million, primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements And Sensitivity Analysis

	Fair Value at
(in millions)	September 30, 2014
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$	95	$	28	Market approach	CRR auction prices	$	(19.16) - 12.04
Power purchase agreements	$	-	$	87	Discounted cash flow	Forward prices	$	22.54 - 63.45

⁽¹⁾ Represents price per megawatt-hour

	Fair Value at
(in millions)	December 31, 2013
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range ⁽¹⁾
Congestion revenue rights	$	107	$	32	Market approach	CRR auction prices	$	(6.47) - 12.04
Power purchase agreements	$	-	$	105	Discounted cash flow	Forward prices	$	23.43 - 51.75

⁽¹⁾Represents price per megawatt-hour

Level 3 Reconciliation

	Price Risk Management Instruments
(in millions)	2014			2013
Liability balance as of July 1	$	(11)		$	(76)
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		(9	)		(6	)
Liability balance as of September 30	$	(20)		$	(82)

⁽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)	2014		2013
Liability balance as of January 1	$	(30)	$	(79)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		10		(3	)
Liability balance as of September 30	$	(20)	$	(82)

Carrying Amount And Fair Value Of Financial Instruments

	At September 30, 2014				At December 31, 2013
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
PG&E Corporation	$	349	$	351	$	350	$	354
Utility		13,283		14,992		12,334		13,444

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, 2014
Nuclear decommissioning trusts
Money market investments	$	16	$	-	$	-		$	16
Equity securities
U.S.		269		863		(2	)		1,130
Non-U.S.		256		183		(6	)		433
Debt securities
U.S. government and agency securities		855		57		(3	)		909
Municipal securities		50		4		-			54
Other fixed-income securities		163		1		(1	)		163
Total nuclear decommissioning trusts ⁽¹⁾		1,609		1,108		(12	)		2,705
Other investments		5		31		-			36
Total	$	1,614	$	1,139	$	(12)		$	2,741
As of December 31, 2013
Nuclear decommissioning trusts
Money market investments	$	38	$	-	$	-		$	38
Equity securities
U.S.		246		811		-			1,057
Non-U.S.		215		242		-			457
Debt securities
U.S. government and agency securities		870		51		(5	)		916
Municipal securities		24		2		(1	)		25
Other fixed-income securities		163		1		(2	)		162
Total nuclear decommissioning trusts ⁽¹⁾		1,556		1,107		(8	)		2,655
Other investments		13		71		-			84
Total	$	1,569	$	1,178	$	(8)		$	2,739

⁽¹⁾ Represents amounts before deducting $306 million and $313 million at September 30, 2014 and December 31, 2013, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule Of Maturities On Debt Instruments

	As of
(in millions)	September 30, 2014
Less than 1 year	$	27
1-5 years		483
5-10 years		257
More than 10 years		359
Total maturities of debt securities	$	1,126

Schedule Of Activity For Debt And Equity Securities

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014		2013				2014		2013
(in millions)
Proceeds from sales and maturities of nuclear decommissioning
trust investments	$	182	$	357		$	1,059		$	1,152
Gross realized gains on securities held as available-for-sale		30		7			114			44
Gross realized losses on securities held as available-for-sale		-		(4	)		(3	)		(10	)

- 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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