PG&E 2007 Annual Report Download - page 110

108
The total amount of ERB principal outstanding was $1.9 billion at December 31, 2007 and $2.3 billion at December 31,
2006. The scheduled principal repayments for ERBs are refl ected in the table below:
(in millions) 2008 2009 2010 2011 2012 Total
Utility
Average fi xed interest rate 4.19% 4.36% 4.49% 4.59% 4.66% 4.47%
Energy recovery bonds $ 354 $ 370 $ 386 $ 404 $ 422 $1,936
While PERF is a wholly owned consolidated subsidiary
of the Utility, it is legally separate from the Utility. The
assets (including the recovery property) of PERF are not
available to creditors of the Utility or PG&E Corporation,
and the recovery property is not legally an asset of the
Utility or PG&E Corporation.
NOTE 7: DISCONTINUED
OPERATIONS
National Energy & Gas Transmission, Inc. (“NEGT”) was
incorporated on December 18, 1998, as a wholly owned
subsidiary of PG&E Corporation. NEGT fi led a voluntary
petition for relief under Chapter 11 on July 8, 2003. On
October 29, 2004, NEGT’s plan of reorganization became
effective, at which time NEGT emerged from Chapter 11
and PG&E Corporation’s equity ownership in NEGT was
cancelled. On the effective date, PG&E Corporation recorded
a net of tax gain on disposal of NEGT of $684 million.
Based on the additional information received from NEGT in
2005 regarding PG&E Corporation’s 2004 and 2003 federal
income tax returns, PG&E Corporation recorded $13 million
in income from discontinued operations.
At December 31, 2007 and 2006, PG&E Corporation’s
Consolidated Balance Sheets included the following assets
and liabilities related to NEGT:
(in millions) 2007 2006
Current Assets
Income taxes receivable $33 $ —
Current Liabilities
Income taxes payable — 89
Other 11 11
Noncurrent Liabilities
Income taxes payable 74 —
Deferred income taxes 34 —
Other 14 15
Until PG&E Corporation reaches fi nal settlement of
these obligations, it will continue to disclose fl uctuations in
these estimated liabilities in discontinued operations. PG&E
Corporation ceased including NEGT and its subsidiaries in its
consolidated income tax returns beginning October 29, 2004.
NOTE 8: COMMON STOCK
PG&E CORPORATION
PG&E Corporation has authorized 800 million shares of
no-par common stock, of which 379,646,276 shares were issued
and outstanding at December 31, 2007 and 374,181,059 shares
were issued and outstanding at December 31, 2006. Elm
Power Corporation, a wholly owned subsidiary of PG&E
Corporation, holds 24,665,500 of the outstanding shares.
Of the 379,646,276 shares issued and outstanding at
December 31, 2007, 1,261,125 shares were granted as restricted
stock as share-based compensation awarded under the PG&E
Corporation Long-Term Incentive Program and the 2006
Long-Term Incentive Plan (“2006 LTIP”) and 4,920,648 shares
were issued upon the exercise of employee stock options,
for the account of 401(k) plan participants, and for the
Dividend Reinvestment and Stock Purchase Plan (“DRSPP”).
(See Note 14 for further discussion.)
Stock Repurchases
On December 15, 2004, PG&E Corporation entered into
an accelerated share repurchase agreement (“ASR”) with
Goldman Sachs & Co., Inc. (“GS&Co.”), under which PG&E
Corporation repurchased 9,769,600 shares of its outstand-
ing common stock for an aggregate purchase price of
approximately $332 million, including a $14 million price
adjustment paid on February 22, 2005. This adjustment was
based on the daily volume weighted average market price
(“VWAP”) of PG&E Corporation common stock over the
term of the arrangement.