Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

	Fair Value Measurements
	At June 30, 2011										At December 31, 2010
(in millions)	Level 1		Level 2		Level 3		Netting (3)		Total		Level 1		Level 2		Level 3		Netting (3)		Total
Assets:
Money market investments		$ 228		$ -		$ -		$ -		$ 228		$ 138		$ -		$ -		$ -		$ 138
Nuclear decommissioning trusts
U.S. equity securities (1)		863		11		-		-		874		1,029		7		-		-		1,036
Non-U.S. equity securities		365		-		-		-		365		349		-		-		-		349
U.S. government and agency securities		681		145		-		-		826		584		40		-		-		624
Municipal securities		-		103		-		-		103		-		119		-		-		119
Other fixed-income securities		-		101		-		-		101		-		66		-		-		66
Total nuclear decommissioning trusts (2)		1,909		360		-		-		2,269		1,962		232		-		-		2,194
Price risk management instruments (Note 7)
Electric		1		-		184		58		243		6		2		119		63		190
Gas		-		-		10		1		11		-		-		6		5		11
Total price risk management instruments		1		-		194		59		254		6		2		125		68		201
Rabbi trusts
Fixed-income securities		-		25		-		-		25		-		24		-		-		24
Life insurance contracts		-		66		-		-		66		-		65		-		-		65
Total rabbi trusts		-		91		-		-		91		-		89		-		-		89
Long-term disability trust
U.S. equity securities (1)		4		16		-		-		20		11		24		-		-		35
Non-U.S. equity securities		-		12		-		-		12		-		-		-		-		-
Corporate debt securities (1)		-		137		-		-		137		-		150		-		-		150
Total long-term disability trust		4		165		-		-		169		11		174		-		-		185
Total assets		$ 2,142		$ 616		$ 194		$ 59		$ 3,011		$ 2,117		$ 497		$ 125		$ 68		$2,807
Liabilities:
Price risk management instruments (Note 7)
Electric		$ 200		$ 66		$ 468		$ (282)		$ 452		$ 235		$ 73		$ 475		$ (315)		$ 468
Gas		37		1		6		(37)		7		41		1		49		(41)		50
Total liabilities		$237		$ 67		$ 474		$ (319)		$ 459		$ 276		$ 74		$ 524		$ (356)		$ 518

⁽¹⁾  Level 2 balances include commingled funds, which are composed primarily of securities traded publicly on exchanges. Price quotes for the assets held by the funds are readily observable and available.

⁽²⁾  Excludes $200 million and $185 million at June 30, 2011 and December 31, 2010, respectively, primarily related to deferred taxes on appreciation of investment value.

(3) Includes the effect of netting and collateral.

Level 3 Reconciliation

(in millions)	Price Risk Management               Instruments
Asset (liability) balance as of March 31, 2011		$ (312)
Realized and unrealized gains (losses):
Included in earnings		23
Included in regulatory assets and liabilities or balancing accounts		(82)
Purchases		57
Issuances		-
Sales		-
Settlements		34
Transfers into Level 3		-
Transfers out of Level 3		-
Asset (liability) balance as of June 30, 2011		$ (280)

		000000000000		000000000000		000000000000		000000000000
(in millions)	Dividend Participation Rights		Price Risk Management Instruments		Other Liabilities		Total
Asset (liability) balance as of March 31, 2010		$ (7)		$ (424)		$ (1)		$ (432)
Realized and unrealized gains (losses):
Included in earnings		-		7		-		7
Included in regulatory assets and liabilities or balancing accounts		-		(169)		(1)		(170)
Purchases, issuances, sales and settlements		7		116		-		123
Transfers into Level 3		-		-		-		-
Transfers out of Level 3		-		-		-		-
Asset (liability) balance as of June 30, 2010		$ -		$ (470)		$ (2)		$ (472)

The following tables present the reconciliation for Level 3 assets and liabilities for the six months ended June 30, 2011 and 2010, respectively:

		00000000000000000000000000
(in millions)	Price Risk Management               Instruments
Asset (liability) balance as of December 31, 2010		$ (399)
Realized and unrealized gains (losses):
Included in earnings		15
Included in regulatory assets and liabilities or balancing accounts		(118)
Purchases		99
Issuances		-
Sales		-
Settlements		123
Transfers into Level 3		-
Transfers out of Level 3		-
Asset (liability) balance as of June 30, 2011		$ (280)

		000000000000		000000000000		000000000000		000000000000		000000000000
(in millions)	Money Market		Dividend Participation Rights		Price Risk Management Instruments		Other Liabilities		Total
Asset (liability) balance as of December 31, 2009		$ 4		$ (12)		$ (250)		$ (3)		$ (261)
Realized and unrealized gains (losses):
Included in earnings		-		-		(36)		-		(36)
Included in regulatory assets and liabilities or balancing accounts		-		-		(392)		1		(391)
Purchases, issuances, sales and settlements		(4)		12		208		-		216
Transfers into Level 3		-		-		-		-		-
Transfers out of Level 3		-		-		-		-		-
Asset (liability) balance as of June 30, 2010		$ -		$ -		$ (470)		$ (2)		$ (472)

Carrying Amount and Fair Value of Financial Instruments

		0000000000		0000000000		0000000000		0000000000
	At June 30, 2011				At December 31, 2010
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Debt (Note 4)
PG&E Corporation		$349		$386		$349		$383
Utility		10,245		11,096		10,444		11,314
Energy recovery bonds (Note 4)		636		665		827		862

Schedule of Unrealized Gains Losses Related to Available-for-Sale Investments

(in millions)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Total Fair Value (1)
As of June 30, 2011
Equity securities
U.S.		$ 322		$ 554		$ (2)		$ 874
Non-U.S.		184		182		(1)		365
Debt securities
U.S. government and agency securities		766		61		(1)		826
Municipal securities		102		2		(1)		103
Other fixed-income securities		100		1		-		101
Total		$ 1,474		$800		$ (5)		$ 2,269
As of December 31, 2010
Equity securities
U.S.		$ 509		$ 529		$ (2)		$ 1,036
Non-U.S.		180		170		(1)		349
Debt securities
U.S. government and agency securities		571		55		(2)		624
Municipal securities		119		1		(1)		119
Other fixed-income securities		65		1		-		66
Total		$ 1,444		$ 756		$ (6)		$ 2,194

⁽¹⁾  Excludes $200 million and $185 million at June 30, 2011 and December 31, 2010, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule of Maturities on Debt Securities

		00000000000000000000
(in millions)	As of June 30, 2011
Less than 1 year		$ 63
1–5 years		348
5–10 years		278
More than 10 years		341
Total maturities of debt securities		$ 1,030

Schedule of Activity for Debt and Equity Securities

		000000000000		000000000000		000000000000		000000000000
	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
(in millions)
Proceeds from sales and maturities of nuclear decommissioning trust investments		$ 281		$ 348		$ 1,007		$ 685
Gross realized gains on sales of securities held as available-for-sale		9		7		29		22
Gross realized losses on sales of securities held as available-for-sale		(3)		(1)		(6)		(6)