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Debt

12 Months Ended

Dec. 31, 2014

NOTE 4: DEBT

Long-Term Debt

The following table summarizes PG&E Corporation's and the Utility's long-term debt:

	December 31,
(in millions)	2014			2013
PG&E Corporation
Senior notes, 5.75%, due 2014		-			350
Senior notes, 2.40%, due 2019		350			-
Less: current portion		-			(350	)
Total senior notes		350			-
Total PG&E Corporation long-term debt		350			-
Utility
Senior notes:
4.80% due 2014		-			539
5.625% due 2017		700			700
8.25% due 2018		800			800
3.50% due 2020		800			800
4.25% due 2021		300			300
3.25% due 2021		250			250
2.45% due 2022		400			400
3.25% due 2023		375			375
3.85% due 2023		300			300
3.40% due 2024		350			-
3.75% due 2024		450			-
6.05% due 2034		3,000			3,000
5.80% due 2037		950			950
6.35% due 2038		400			400
6.25% due 2039		550			550
5.40% due 2040		800			800
4.50% due 2041		250			250
4.45% due 2042		400			400
3.75% due 2042		350			350
4.60% due 2043		375			375
5.125% due 2043		500			500
4.75% due 2044		675			-
4.30% due 2045		500			-
Less: current portion		-			(539	)
Unamortized discount, net of premium		(43	)		(51	)
Total senior notes, net of current portion		13,432			11,449
Pollution control bonds:
Series 1996 C, E, F, 1997 B, variable rates ⁽¹⁾, due 2026 ⁽²⁾		614			614
Series 2004 A-D, 4.75%, due 2023 ⁽³⁾		345			345
Series 2009 A-D, variable rates ⁽¹⁾, due 2016 and 2026 ⁽⁴⁾		309			309
Total pollution control bonds		1,268			1,268
Total Utility long-term debt, net of current portion		14,700			12,717
Total consolidated long-term debt, net of current portion	$	15,050		$	12,717

⁽¹⁾At December 31, 2014, interest rates on these bonds and the related loans ranged from 0.01% to 0.02%.

⁽²⁾Each series of these bonds is supported by a separate letter of credit. In April 2014, the letters of credit were extended to April 1, 2019. Although the stated maturity date is 2026, each series will remain outstanding only if the Utility extends or replaces the letter of credit related to the series or otherwise obtains consent from the issuer to the continuation of the series without a credit facility.

⁽³⁾ The Utility has obtained credit support from an insurance company for these bonds.

⁽⁴⁾ Each series of these bonds is supported by a separate direct-pay letter of credit. In June 2014, Series A and B letters of credit were extended to June 5, 2019. Series C and D letters expire on December 3, 2016 to coincide with the maturity of the underlying bonds. Subject to certain requirements, the Utility may choose not to provide a credit facility without issuer consent.

Pollution Control Bonds

The California Pollution Control Financing Authority and the California Infrastructure and Economic Development Bank have issued various series of fixed rate and multi-modal tax-exempt pollution control bonds for the benefit of the Utility. Substantially all of the net proceeds of the pollution control bonds were used to finance or refinance pollution control and sewage and solid waste disposal facilities at the Geysers geothermal power plant or at the Utility's Diablo Canyon nuclear power plant. In 1999, the Utility sold all bond-financed facilities at the non-retired units of the Geysers geothermal power plant to Geysers Power Company, LLC pursuant to purchase and sale agreements stating that Geysers Power Company, LLC will use the bond-financed facilities solely as pollution control facilities for so long as any tax-exempt pollution control bonds issued to finance the Geysers project are outstanding. The Utility has no knowledge that Geysers Power Company, LLC intends to cease using the bond-financed facilities solely as pollution control facilities.

Short-term Borrowings

The following table summarizes PG&E Corporation's and the Utility's outstanding borrowings under their revolving credit facilities and commercial paper programs at December 31, 2014:

					Letters of
	Termination	Facility			Credit		Commercial		Facility
(in millions)	Date	Limit			Outstanding		Paper		Availability
PG&E Corporation	April 2019	$	300	⁽¹⁾	$	-	$	-	$	300
Utility	April 2019		3,000	⁽²⁾		84		333		2,583
Total revolving credit facilities		$	3,300		$	84	$	333	$	2,883

⁽¹⁾ Includes a $100 million sublimit for letters of credit and a $100 million commitment for loans that are made available on a same-day basis and are repayable in full within 7 days.

⁽²⁾ Includes a $1.0 billion sublimit for letters of credit and a $300 million commitment for loans that are made available on a same-day basis and are repayable in full within 7 days.

For 2014, the average outstanding bank borrowings on PG&E Corporation's revolving credit facility was $27 million and the maximum outstanding balance during the year was $260 million. In February 2014, PG&E Corporation repaid the full outstanding bank borrowings of $260 million and initiated borrowing under its commercial paper program established in January 2014. For the year ended December 31, 2014, PG&E Corporation's average outstanding commercial paper balance was $118 million and the maximum outstanding balance during the period was $260 million. For 2014, the Utility's average outstanding commercial paper balance was $609 million and the maximum outstanding balance during the year was $1.4 billion. The Utility did not have any bank borrowings in 2014.

Revolving Credit Facilities

In April 2014, PG&E Corporation and the Utility amended and restated their revolving credit facilities to extend their termination dates from April 1, 2018 to April 1, 2019. These agreements contain substantially similar terms as the original 2011 credit agreements. PG&E Corporation's and the Utility's revolving credit facilities may be used for working capital, the repayment of commercial paper, and other corporate purposes. At PG&E Corporation's and the Utility's request and at the sole discretion of each lender, the facilities may be extended for additional periods. Provided certain conditions are met, PG&E Corporation and the Utility have the right to increase, in one or more requests, given not more frequently than once a year, the aggregate lenders' commitments under the revolving credit facilities by up to $100 million and $500 million, respectively, in the aggregate for all such increases.

Borrowings under the revolving credit facilities (other than swingline loans) bear interest based, at PG&E Corporation's and the Utility's election, on (1) a London Interbank Offered Rate plus an applicable margin or (2) the base rate plus an applicable margin. The base rate will equal the higher of the following: the administrative agent's announced base rate, 0.5% above the federal funds rate, or the one-month LIBOR plus an applicable margin. Interest is payable quarterly in arrears, or earlier for loans with shorter interest periods. PG&E Corporation and the Utility also will pay a facility fee on the total commitments of the lenders under the revolving credit facilities. The applicable margins and the facility fees will be based on PG&E Corporation's and the Utility's senior unsecured debt ratings issued by Standard & Poor's Rating Services and Moody's Investor Service. Facility fees are payable quarterly in arrears.

PG&E Corporation's and the Utility's revolving credit facilities include usual and customary provisions for revolving credit facilities of this type, including those regarding events of default and covenants limiting liens to those permitted under their senior note indentures, mergers, sales of all or substantially all of their assets, and other fundamental changes. In addition, the revolving credit facilities require that PG&E Corporation and the Utility maintain a ratio of total consolidated debt to total consolidated capitalization of at most 65% as of the end of each fiscal quarter. PG&E Corporation's revolving credit facility agreement also requires that PG&E Corporation own, directly or indirectly, at least 80% of the common stock and at least 70% of the voting capital stock of the Utility.

Commercial Paper Programs

For 2014, the average yield on outstanding PG&E Corporation and Utility commercial paper was 0.24% and 0.23%, respectively.

The borrowings from PG&E Corporation and the Utility's commercial paper programs are used primarily to fund temporary financing needs. Liquidity support for these borrowings is provided by available capacity under their respective revolving credit facilities, as described above. PG&E Corporation and the Utility treat the amount of its outstanding commercial paper as a reduction to the amount available under its revolving credit facilities. The commercial paper may have maturities up to 365 days and ranks equally with PG&E Corporation's and the Utility's other unsubordinated and unsecured indebtedness. Commercial paper notes are sold at an interest rate dictated by the market at the time of issuance.

Other Short-term Borrowings

In May 2014, the Utility issued $300 million principal amount of Floating Rate Senior Notes due May 11, 2015.

Repayment Schedule

PG&E Corporation's and the Utility's combined long-term debt principal repayment amounts at December 31, 2014 are reflected in the table below:

(in millions,
except interest rates)	2015		2016				2017				2018				2019			Thereafter				Total
PG&E Corporation
Average fixed interest rate		-			-				-				-			2.40	%			-				2.40	%
Fixed rate obligations	$	-		$	-			$	-			$	-		$	350			$	-			$	350
Utility
Average fixed interest rate		-			-				5.63	%			8.25	%		-				4.92	%			5.15	%
Fixed rate obligations	$	-		$	-			$	700			$	800		$	-			$	12,320			$	13,820
Variable interest rate
as of December 31, 2014		-			0.01	%			-				-			0.01	%			-				0.01	%
Variable rate obligations ⁽¹⁾	$	-		$	160			$	-			$	-		$	763			$	-			$	923
Total consolidated debt	$	-		$	160			$	700			$	800		$	1,113			$	12,320			$	15,093

⁽¹⁾ These bonds, due in 2016 and 2026, are backed by separate letters of credit that expire on December 3, 2016, April 1, 2019, or June 5, 2019.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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