PG&E 2009 Annual Report Download - page 79

The total amount of ERB principal outstanding was $1.2 billion at December 31, 2009 and $1.6 billion at
December 31, 2008. The scheduled principal repayments for ERBs are reflected in the table below:
(in millions) 2010 2011 2012 Total
Utility
Average fixed interest rate 4.49% 4.59% 4.66% 4.58%
Energy recovery bonds $ 386 $ 404 $ 423 $1,213
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 6: COMMON STOCK
PG&E CORPORATION
PG&E Corporation has authorized 800 million shares of
no-par common stock, of which 371,272,457 shares were
issued and outstanding at December 31, 2009 and
362,346,685 shares were issued and outstanding at
December 31, 2008.
Of the 371,272,457 shares issued and outstanding at
December 31, 2009, 670,552 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 6,773,290 shares were issued upon the exercise
of employee stock options, for the account of 401(k) plan
participants, and to participants in the Dividend
Reinvestment and Stock Purchase Plan (“DRSPP”). (See
Note 13 of the Notes to the Consolidated Financial
Statements.) In addition, 2,187,269 shares were issued upon
the conversion of Convertible Subordinated Notes. (See
Note 4 of the Notes to the Consolidated Financial
Statements.)
UTILITY
The Utility is authorized to issue 800 million shares of its
$5 par value common stock, of which 264,374,809 shares
were issued and outstanding as of December 31, 2009 and
2008. As of December 31, 2009, PG&E Corporation held
all of the Utility’s outstanding common stock.
The Utility may pay common stock dividends and
repurchase its common stock provided that cumulative
preferred dividends on its preferred stock are paid.
DIVIDENDS
During 2009, the Utility paid common stock dividends
totaling $624 million to PG&E Corporation. During 2009,
PG&E Corporation paid common stock dividends of $1.65
per share, totaling $590 million, net of $17 million that
was reinvested in additional shares of common stock by
participants in the DRSPP. On December 16, 2009, the
Board of Directors of PG&E Corporation declared a
quarterly dividend of $0.42 per share, totaling $157
million, which was paid on January 15, 2010 to
shareholders of record on December 31, 2009.
During 2008, the Utility paid common stock dividends
totaling $589 million, including $568 million of common
stock dividends paid to PG&E Corporation and $21
million paid to PG&E Holdings, LLC. During 2008, PG&E
Corporation paid common stock dividends of $1.53 per
share, totaling $554 million, net of $20 million that was
reinvested in additional shares of common stock by
participants in the DRSPP, and including $28 million that
was paid to Elm Power Corporation.
During 2007, the Utility paid common stock dividends
of $547 million, including $509 million of common stock
dividends paid to PG&E Corporation and $38 million paid
to PG&E Holdings, LLC. During 2007, PG&E Corporation
paid common stock dividends of $1.41 per share totaling
$526 million, net of $5 million that was reinvested in
additional shares of common stock by participants in the
DRSPP, and including $35 million that was paid to Elm
Power Corporation.
Effective August 29, 2008, PG&E Holdings, LLC, and
Elm Power Corporation, wholly owned subsidiaries of the
Utility and PG&E Corporation, respectively, were
dissolved, and the shares of each entity were subsequently
cancelled.
PG&E Corporation and the Utility each have a
revolving credit facility that requires the company to
maintain a ratio of consolidated total debt to consolidated
capitalization of at most 65%. In addition, the CPUC
requires the Utility to maintain a capital structure
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