PG&E 2009 Annual Report Download - page 77

due on November 1, 2026 and $160 million of tax-exempt
pollution control bonds series 2009 C and D due on
December 1, 2016. The proceeds were used to repurchase
the corresponding series of 2008 pollution control bonds.
The 2009 A–D bonds, issued at par with an initial rate of
0.20%, are variable rate demand notes with interest
resetting daily and backed by direct-pay letters of credit.
Unlike the series 2008 bonds, interest earned on the series
2009 bonds is not subject to the alternative minimum tax.
A provision in the American Recovery and Reinvestment
Act of 2009 allows certain tax-exempt bonds that are
subject to the alternative minimum tax to be reissued or
refunded in 2009 or 2010 as tax-exempt bonds that are not
subject to the alternative minimum tax. As a result, the
2009 A–D bonds were issued at a lower interest rate,
reducing the Utility’s interest expense.
REPAYMENT SCHEDULE
PG&E Corporation’s and the Utility’s combined aggregate principal repayment amounts of long-term debt at
December 31, 2009 are reflected in the table below:
(in millions, except interest rates) 2010 2011 2012 2013 2014 Thereafter Total
Long-term debt:
PG&E Corporation
Average fixed interest rate 9.50% – – – 5.75% – 7.30%
Fixed rate obligations $ 247–––$350 –$597
Utility
Average fixed interest rate 3.75% 4.20% – 6.25% 4.80% 6.13%
Fixed rate obligations $ 95 $ 500 – $ 400 $1,000 $7,245 $ 9,240
Variable interest rate as of December 31, 2009 – 0.21% 0.21% – – – 0.21%
Variable rate obligations – $ 309(1) $ 614(2) – – – $ 923
Less: current portion (342) – – – – – (342)
Total consolidated long-term debt $ – $ 809 $ 614 $ 400 $1,350 $7,245 $10,418
(1) These bonds, due from 2016 through 2026, are backed by a direct-pay letter of credit that 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 classified for repayment purposes in 2011.
(2) The $614 million pollution control bonds, due in 2026, are backed by letters of credit that expire on February 26, 2012. The bonds will be subject to
a mandatory redemption unless the letters of credit are extended or replaced. Accordingly, the bonds have been classified 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, 2009:
(in millions) At December 31, 2009
Authorized Borrower Facility Termination Date Facility Limit
Letters
of Credit
Outstanding Cash Borrowings
Commercial
Paper
Backup Availability
PG&E Corporation Revolving credit facility February 2012 $ 187(1) $ – $— N/A $ 187
Utility Revolving credit facility February 2012 1,940(2) 252 — $ 333 1,355
Total credit facilities $2,127 $252 $— $ 333 $1,542
(1) Includes an $87 million sublimit for letters of credit and a $100 million sublimit for “swingline” loans, defined as loans that are made available ona
same-day basis and are repayable in full within 30 days.
(2) Includes a $921 million sublimit for letters of credit and a $200 million sublimit for swingline loans.
PG&E CORPORATION
Revolving credit facility
PG&E Corporation has a $187 million revolving credit
facility with a syndicate of lenders that expires on
February 26, 2012. PG&E Corporation amended its
revolving credit facility on April 27, 2009 to remove
Lehman Brothers Bank, FSB (“Lehman Bank”) as a lender.
Prior to the amendment, the total borrowing capacity
under the revolving credit facility was $200 million,
including a commitment from Lehman Bank that
represented $13 million, or 7%, of the total. 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
73