PG&E 2008 Annual Report Download - page 109

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a year, the aggregate facility by up to $100 million provided
certain conditions are met. The fees and interest rates PG&E
Corporation pays under the revolving credit facility vary
depending on the Utility’s unsecured debt ratings issued
by Standard & Poor’s Ratings Service (“S&P”) and Moody’s
Investors Service (“Moody’s”). As of December 31, 2008, the
commitment from Lehman Brothers Bank, FSB (“Lehman
Bank”) represented approximately $13 million, or 7%, of
the total borrowing capacity under the revolving credit
facility. PG&E Corporation does not expect that Lehman
Bank will fund any borrowings or letter of credit draws
under the revolving credit facility.
PG&E CORPORATION
Revolving Credit Facility
PG&E Corporation has a $200 million revolving credit facil-
ity with a syndicate of lenders that expires on February 26,
2012. Borrowings under the revolving credit facility and
letters of credit may be used for working capital and other
corporate purposes. PG&E Corporation can, at any time,
repay amounts outstanding in whole or in part. At PG&E
Corporation’s request and at the sole discretion of each
lender, the revolving credit facility may be extended for
additional periods. PG&E Corporation has the right to
increase, in one or more requests given no more than once
Repayment Schedule
At December 31, 2008, PG&E Corporation’s and the Utility’s combined aggregate principal repayment amounts of long-term
debt are refl ected in the table below:
(in millions, except interest rates) 2009 2010 2011 2012 2013 Thereafter Total
Long-term debt:
PG&E Corporation
Average fi xed interest rate — 9.50% — — — — 9.50%
Fixed rate obligations — $ 280 — — — — $ 280
Utility
Average fi xed interest rate 3.60% 3.75% 4.20% — 6.25% 5.99% 5.71%
Fixed rate obligations $ 600 $ 95 $ 500 — $ 400 $7,145 $8,740
Variable interest rate as of December 31, 2008 — — 0.75% 0.92% — — 0.87%
Variable rate obligations — — $ 309(1) $ 614(2) — — $ 923
Total consolidated long-term debt $ 600 $ 375 $ 809 $ 614 $ 400 $7,145 $9,943
(1) These bonds, due 2016-2026, are backed by a direct-pay letter of credit, which expires on October 29, 2011. The bonds will be subject to a mandatory
redemption unless the letter of credit is extended or replaced or the issuer consents to the continuation of these series without a credit facility.
Accordingly, the bonds have been classifi ed for repayment purposes in 2011.
(2) The $614 million pollution control bonds, due in 2026, are backed by letters of credit, which expire on February 24, 2012. The bonds will be subject to
a mandatory redemption unless the letters of credit are extended or replaced. Accordingly, the bonds have been classifi ed for repayment purposes in 2012.
CREDIT FACILITIES AND SHORT-TERM BORROWINGS
The following table summarizes PG&E Corporation’s and the Utility’s short-term borrowings and outstanding credit facilities
at December 31, 2008:
(in millions) At December 31, 2008
Letters Commercial
Termination Facility of Credit Cash Paper
Authorized Borrower Facility Date Limit Outstanding Borrowings Backup Availability
PG&E Corporation Revolving credit facility February 2012 $ 200(1) $ — $ — $ — $ 200
Utility Revolving credit facility February 2012 2,000(2) 287 — 287 1,426
Total credit facilities $2,200 $287 $ — $287 $1,626
(1) Includes a $50 million sublimit for letters of credit and $100 million sublimit for “swingline” loans, defi ned as loans that are made available on a
same-day basis and are repayable in full within 30 days.
(2) Includes a $950 million sublimit for letters of credit and $100 million sublimit for swingline loans.