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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2016
Assets And Liabilities Measured At Fair Value On A Recurring Basis

 

Fair Value Measurements

 

At September 30, 2016

(in millions)

Level 1

 

Level 2

 

Level 3

 

Netting (1)

 

Total

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

$

- 

 

$

- 

 

$

- 

 

$

- 

 

$

- 

Nuclear decommissioning trusts

 

  

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

1 

 

 

- 

 

 

- 

 

 

- 

 

 

1 

Global equity securities

 

1,678 

 

 

- 

 

 

- 

 

 

- 

 

 

1,678 

Fixed-income securities

 

720 

 

 

530 

 

 

- 

 

 

- 

 

 

1,250 

Assets measured at NAV

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

14 

Total nuclear decommissioning trusts (2)

 

2,399 

 

 

530 

 

 

- 

 

 

- 

 

 

2,943 

Price risk management instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity

 

10 

 

 

16 

 

 

192 

 

 

(2)

 

 

216 

Gas

 

- 

 

 

10 

 

 

- 

 

 

- 

 

 

10 

Total price risk management instruments

 

10 

 

 

26 

 

 

192 

 

 

(2)

 

 

226 

Rabbi trusts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

- 

 

 

59 

 

 

- 

 

 

- 

 

 

59 

Life insurance contracts

 

- 

 

 

77 

 

 

- 

 

 

- 

 

 

77 

Total rabbi trusts

 

- 

 

 

136 

 

 

- 

 

 

- 

 

 

136 

Long-term disability trust

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

4 

 

 

- 

 

 

- 

 

 

- 

 

 

4 

Assets measured at NAV

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

138 

Total long-term disability trust

 

4 

 

 

- 

 

 

- 

 

 

- 

 

 

142 

Total assets

$

2,413 

 

$

692 

 

$

192 

 

$

(2)

 

$

3,447 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price risk management instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity

$

25 

 

$

8 

 

$

136 

 

$

(33)

 

$

136 

Gas

 

- 

 

 

2 

 

 

- 

 

 

- 

 

 

2 

Total liabilities

$

25 

 

$

10 

 

$

136 

 

$

(33)

 

$

138 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 (2) Represents amount before deducting $346 million, primarily related to deferred taxes on appreciation of investment value.

 

 

Fair Value Measurements

 

At December 31, 2015

(in millions)

Level 1

 

Level 2

 

Level 3

 

Netting (1)

 

Total

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

$

64 

 

$

- 

 

$

- 

 

$

- 

 

$

64 

Nuclear decommissioning trusts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

36 

 

 

- 

 

 

- 

 

 

- 

 

 

36 

Global equity securities

 

1,520 

 

 

- 

 

 

- 

 

 

- 

 

 

1,520 

Fixed-income securities

 

694 

 

 

521 

 

 

- 

 

 

- 

 

 

1,215 

Assets measured at NAV

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

13 

Total nuclear decommissioning trusts (2)

 

2,250 

 

 

521 

 

 

- 

 

 

- 

 

 

2,784 

Price risk management instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Note 9 in the 2015 Form 10-K)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity

 

- 

 

 

9 

 

 

259 

 

 

18 

 

 

286 

Gas

 

- 

 

 

1 

 

 

- 

 

 

1 

 

 

2 

Total price risk management instruments

 

- 

 

 

10 

 

 

259 

 

 

19 

 

 

288 

Rabbi trusts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-income securities

 

- 

 

 

57 

 

 

- 

 

 

- 

 

 

57 

Life insurance contracts

 

- 

 

 

70 

 

 

- 

 

 

- 

 

 

70 

Total rabbi trusts

 

- 

 

 

127 

 

 

- 

 

 

- 

 

 

127 

Long-term disability trust

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

7 

 

 

- 

 

 

- 

 

 

- 

 

 

7 

Assets measured at NAV

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

158 

Total long-term disability trust

 

7 

 

 

- 

 

 

- 

 

 

- 

 

 

165 

Total assets

$

2,321 

 

$

658 

 

$

259 

 

$

19 

 

$

3,428 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price risk management instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Note 9 in the 2015 Form 10-K)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electricity

$

69 

 

$

1 

 

$

170 

 

$

(70)

 

$

170 

Gas

 

- 

 

 

2 

 

 

- 

 

 

(1)

 

 

1 

Total liabilities

$

69 

 

$

3 

 

$

170 

 

$

(71)

 

$

171 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(2) Represents amount before deducting $314 million, primarily related to deferred taxes on appreciation of investment value.
Level 3 Measurements And Sensitivity Analysis

 

 

Fair Value at

 

 

 

 

 

 

 

(in millions)

 

At September 30, 2016

 

Valuation

 

Unobservable

 

 

 

Fair Value Measurement

 

Assets

 

Liabilities

 

Technique

 

Input

 

Range (1)

Congestion revenue rights

 

$

192 

 

$ 

43 

 

Market approach

 

CRR auction prices

 

$

(23.81) - 8.76

Power purchase agreements

 

$

- 

 

$ 

93 

 

Discounted cash flow

 

Forward prices

 

$

18.07 - 38.80 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (1) Represents price per megawatt-hour

 

 

 

Fair Value at

 

 

 

 

 

 

 

(in millions)

 

At December 31, 2015

 

Valuation

 

Unobservable

 

 

 

Fair Value Measurement

 

Assets

 

Liabilities

 

Technique

 

Input

 

Range (1)

Congestion revenue rights

 

$

259 

 

$

63 

 

Market approach

 

CRR auction prices

 

$

(161.36) - 8.76

Power purchase agreements

 

$

- 

 

$

107 

 

Discounted cash flow

 

Forward prices

 

$

15.08 - 37.27 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 nine months ended September 30, 2016 and 2015:

 

 

Price Risk Management Instruments

(in millions)

2016

 

2015

Asset (liability) balance as of July 1

$

66 

 

$

48 

Net realized and unrealized gains:

 

 

 

 

 

Included in regulatory assets and liabilities or balancing accounts (1)

 

(10)

 

 

(27)

Asset (liability) balance as of September 30

$

56 

 

$

21 

 

 

 

 

 

 

(1)  The costs related to price risk management activities are fully passed through to customers in rates.  Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

 

 

Price Risk Management Instruments

(in millions)

2016

 

2015

Asset (liability) balance as of January 1

$

89 

 

$

69 

Net realized and unrealized gains:

 

 

 

 

 

Included in regulatory assets and liabilities or balancing accounts (1)

 

(33)

 

 

(48)

Asset (liability) balance as of September 30

$

56 

 

$

21 

 

 

 

 

 

 

(1)  The costs related to price risk management activities are fully passed through to customers in rates.  Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.
Carrying Amount And Fair Value Of Financial Instruments

 

At September 30, 2016

 

At December 31, 2015

(in millions)

Carrying Amount

 

Level 2 Fair Value

 

Carrying Amount

 

Level 2 Fair Value

PG&E Corporation

$

350 

 

$

356 

 

$

350 

 

$

354 

Utility

 

15,417 

 

 

18,440 

 

 

14,918 

 

 

16,422 

 
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, 2016

 

 

 

 

 

 

 

 

 

 

 

Nuclear decommissioning trusts

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

$

1 

 

$

- 

 

$

- 

 

$

1 

Global equity securities

 

579 

 

 

1,116 

 

 

(3)

 

 

1,692 

Fixed-income securities

 

1,164 

 

 

89 

 

 

(3)

 

 

1,250 

Total (1)

$

1,744 

 

$

1,205 

 

$

(6)

 

$

2,943 

As of December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

Nuclear decommissioning trusts

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

$

36 

 

$

- 

 

$

- 

 

$

36 

Global equity securities

 

508 

 

 

1,034 

 

 

(9)

 

 

1,533 

Fixed-income securities

 

1,165 

 

 

58 

 

 

(8)

 

 

1,215 

Total (1)

$

1,709 

 

$

1,092 

 

$

(17)

 

$

2,784 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents amounts before deducting $346 million and $314 million at September 30, 2016 and December 31, 2015, respectively, primarily related to deferred taxes on appreciation of investment value.
Schedule Of Maturities On Debt Instruments

 

As of

(in millions)

September 30, 2016

Less than 1 year

$

33 

1–5 years

 

443 

5–10 years

 

271 

More than 10 years

 

503 

Total maturities of fixed-income securities

$

1,250 

 
Schedule Of Activity For Debt And Equity Securities

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2016

 

2015

 

 

2016

 

2015

(in millions)

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales and maturities of nuclear decommissioning 

 

 

 

 

 

 

 

 

 

 

 

trust investments

$

257 

 

$

244 

 

$

1,019 

 

$

1,023 

Gross realized gains on securities held as available-for-sale

 

6 

 

 

3 

 

 

15 

 

 

50 

Gross realized losses on securities held as available-for-sale

 

(14)

 

 

(12)

 

 

(17)

 

 

(25)