Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Assets And Liabilities Measured At Fair Value On A Recurring Basis


	Fair Value Measurements
	At June 30, 2012											At December 31, 2011
(in millions)	Level 1		Level 2		Level 3		Netting⁽¹⁾			Total		Level 1		Level 2		Level 3		Netting⁽¹⁾			Total
Assets:
Money market investments		$ 245		$ -		$ -		$ -			$ 245		$ 206		$ -		$ -		$ -			$ 206

Nuclear decommissioning trusts
U.S. equity securities		891		8		-		-			899		841		8		-		-			849
Non-U.S. equity securities		330		-		-		-			330		323		-		-		-			323
U.S. government and agency securities		709		142		-		-			851		744		156		-		-			900
Municipal securities		-		57		-		-			57		-		58		-		-			58
Other fixed-income securities		-		179		-		-			179		-		99		-		-			99

Total nuclear decommissioning trusts ⁽²⁾		1,930		386		-		-			2,316		1,908		321		-		-			2,229

Price risk management instruments (Note 7)
Electricity		-		75		70		20			165		-		92		69		8			169
Gas		-		6		2		(6	)		2		-		6		-		(3	)		3

Total price risk management instruments		-		81		72		14			167		-		98		69		5			172

Rabbi trusts
Fixed-income securities		-		27		-		-			27		-		25		-		-			25
Life insurance contracts		-		69		-		-			69		-		67		-		-			67

Total rabbi trusts		-		96		-		-			96		-		92		-		-			92

Long-term disability trust
U.S. equity securities		4		13		-		-			17		13		15		-		-			28
Non-U.S. equity securities		-		13		-		-			13		-		9		-		-			9
Fixed-income securities		-		136		-		-			136		-		145		-		-			145

Total long-term disability trust		4		162		-		-			166		13		169		-		-			182

Total assets		$ 2,179		$ 725		$ 72		$ 14			$ 2,990		$ 2,127		$ 680		$ 69		$ 5			$ 2,881

Liabilities:
Price risk management instruments (Note 7)
Electricity		$ 312		$ 220		$ 152		$ (315	)		$ 369		$ 411		$ 289		$ 143		$ (441	)		$ 402
Gas		14		10		-		(16	)		8		31		13		-		(32	)		12

Total liabilities		$ 326		$ 230		$ 152		$ (331	)		$ 377		$ 442		$ 302		$ 143		$ (473	)		$ 414



⁽¹⁾ Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral. ⁽²⁾ Excludes $210 million and $188 million at June 30, 2012 and December 31, 2011, respectively, primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements And Sensitivity Analysis

(in millions)

Fair Value at
June 30, 2012

Valuation Technique

Unobservable Input

Range

Fair Value Measurement

Assets

Liabilities

Congestion revenue rights

$ 70

$ (8)

Market approach

CRR auction prices

$ (6.11) - $ 92.13

Power purchase agreements

$ -

$ (144)

Discounted cash flow

Forward prices

$ 6.74 - $ 63.54

Level 3 Reconciliation


	Price Risk Management Instruments
(in millions)	2012		2011
Liability balance as of April 1		$ (99)		$ (312)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		19		32

Liability balance as of June 30		$ (80)		$ (280)



⁽¹⁾ Price risk management activity is recoverable through customer rates. Therefore, net income was not impacted by realized amounts. Unrealized gains and losses are deferred in regulatory liabilities and assets.


	Price Risk Management Instruments
(in millions)	2012		2011
Liability balance as of January 1		$ (74)		$ (399)
Realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts ⁽¹⁾		(6)		119

Liability balance as of June 30		$ (80)		$ (280)



⁽¹⁾ Price risk management activity is recoverable through customer rates. Therefore, net income was not impacted by realized amounts. Unrealized gains and losses are deferred in regulatory liabilities and assets.

Carrying Amount And Fair Value Of Financial Instruments


	June 30, 2012				December 31, 2011
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 4)
PG&E Corporation		$ 349		$ 377		$ 349		$ 380
Utility		10,894		13,173		10,545		12,543
Energy recovery bonds (Note 4)		223		226		423		433

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, 2012:
Equity securities
U.S.		$ 325		$ 576		$ (2)		$ 899
Non-U.S.		197		137		(4)		330
Debt securities
U.S. government and agency securities		748		104		(1)		851
Municipal securities		54		3		-		57
Other fixed-income securities		174		5		-		179

Total		$ 1,498		$ 825		$ (7)		$ 2,316

As of December 31, 2011
Equity securities
U.S.		$ 334		$ 518		$ (3)		$ 849
Non-U.S.		194		131		(2)		323
Debt securities
U.S. government and agency securities		798		102		-		900
Municipal securities		56		2		-		58
Other fixed-income securities		96		3		-		99

Total		$ 1,478		$ 756		$ (5)		$ 2,229



⁽¹⁾ Excludes $210 million and $188 million at June 30, 2012 and December 31, 2011, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule Of Activity For Debt And Equity Securities


	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
(in millions)
Proceeds from sales and maturities of securities		$ 315		$ 281		$ 666		$ 1,007
Gross realized gains on sales of securities held as available-for-sale		7		9		14		29
Gross realized losses on sales of securities held as available-for-sale		(5)		(3)		(8)		(6)

Nuclear Decommissioning Trusts [Member]

Schedule Of Maturities On Debt Instruments


(in millions)	As of June 30, 2012
Less than 1 year		$ 17
1-5 years		420
5-10 years		250
More than 10 years		400

Total maturities of debt securities		$ 1,087

- 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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