PG&E 2007 Annual Report Download - page 53

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Financing Activities
The Utility’s cash fl ows from fi nancing activities for 2007,
2006, and 2005 were as follows:
(in millions) 2007 2006 2005
Borrowings under accounts receivable
facility and working capital facility $ 850 $ 350 $ 260
Repayments under accounts receivable
facility and working capital facility (900) (310) (300)
Net issuance (repayments) of
commercial paper, net of discount
of $1 million in 2007 and
$2 million in 2006 (209) 458 —
Net proceeds from issuance of
long-term debt 1,184 — 451
Net proceeds from issuance of
energy recovery bonds — — 2,711
Long-term debt, matured, redeemed,
or repurchased — — (1,554)
Rate reduction bonds matured (290) (290) (290)
Energy recovery bonds matured (340) (316) (140)
Preferred stock dividends paid (14) (14) (16)
Common stock dividends paid (509) (460) (445)
Preferred stock with mandatory
redemption provisions redeemed — — (122)
Preferred stock without mandatory
redemption provisions redeemed — — (37)
Equity infusion from
PG&E Corporation 400 — —
Common stock repurchased — — (1,910)
Other 23 38 65
Net cash provided by (used in)
fi nancing activities $ 195 $(544) $(1,327)
In 2007, net cash provided by fi nancing activities
increased by approximately $739 million compared to 2006.
This was mainly due to the following factors:
• The Utility issued Senior Notes in March and December
2007 for net proceeds of approximately $690 million
and $494 million, respectively, with no similar issuances
in 2006.
• The Utility received equity infusions of $400 million from
PG&E Corporation in 2007, with no similar infusions
in 2006.
• The Utility borrowed $500 million more under its working
capital facility in 2007 as compared to 2006.
• The Utility repaid $590 million more under its working
capital and accounts receivable facilities in 2007 as com-
pared to 2006.
• The Utility made net commercial paper repayments of
approximately $209 million in 2007 as compared to
net borrowings of $458 million in 2006.
• The Utility paid approximately $49 million more in
common stock dividends in 2007 than in 2006.
In 2006, net cash used in fi nancing activities decreased
by approximately $783 million compared to 2005. This was
mainly due to the following factors:
• The Utility had net issuances of $458 million in commer-
cial paper in 2006 with no similar issuance in 2005.
• In 2005, the Utility repurchased $1.9 billion in com-
mon stock from PG&E Corporation. There were no
common stock repurchases in 2006.
• The Utility received proceeds of $2.7 billion from the
issuance of ERBs in 2005.
• In May 2005, the Utility borrowed $451 million from
the California Infrastructure and Economic Development
Bank, which was funded by the bank’s issuance of
Pollution Control Bonds Series A-G, with no similar
borrowing in 2006.
• The amount of ERBs that matured in 2006 was approxi-
mately $175 million greater than the amount that matured
in 2005.
• The Utility borrowed $90 million more from the accounts
receivable facility during 2006, as compared to 2005.
• The Utility redeemed $122 million of preferred stock in
2005 with no similar redemption in 2006.
• In 2005, the Utility redeemed $500 million and defeased
$600 million of Floating Rate First Mortgage Bonds
(redesignated as Senior Notes in April 2005). The Utility
also repaid $454 million under certain reimbursement
obligations that the Utility entered into in April 2004,
when its plan of reorganization under Chapter 11 of the
U.S. Bankruptcy Code became effective. There were no
similar redemptions or repayments in 2006.
PG&E CORPORATION
Operating Activities
PG&E Corporation’s consolidated cash fl ows from
operating activities consist mainly of billings to the
Utility for services rendered and payments for employee
compensation and goods and services provided by others
to PG&E Corporation. PG&E Corporation also incurs
interest costs associated with its debt.