PG&E 2010 Annual Report Download - page 26

The following table summarizes PG&E Corporation’s
and the Utility’s cash positions:
December 31,
(in millions) 2010 2009
PG&E Corporation $ 240 $ 193
Utility 51 334
Total consolidated cash and cash equivalents 291 527
Utility restricted cash 563 633
$ 854 $ 1,160
Restricted cash primarily consists of cash held in
escrow pending the resolution of the remaining disputed
claims filed in the Utility’s reorganization proceeding
under Chapter 11. PG&E Corporation and the Utility
maintain separate bank accounts and primarily invest
their cash in money market funds.
Credit Facilities
The following table summarizes PG&E Corporation’s and the Utility’s revolving credit facilities at December 31, 2010:
(in millions) Termination Date Facility Limit
Letters
of Credit
Outstanding Cash Borrowings
Commercial
Paper
Backup Availability
PG&E Corporation February 2012 $ 187 (1) $ – $ – N/A $ 187
Utility February 2012 1,940 (2) 329 – $ 603 1,008
Utility February 2012 750 (3) N/A – – 750
Total credit facilities $ 2,877 $ 329 $ – $ 603 $ 1,945
(1) Includes an $87 million sublimit for letters of credit and a $100 million commitment for “swingline” loans, defined as loans that are made available
on a 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 commitment for swingline loans.
(3) Includes a $75 million commitment for swingline loans.
For the year ended December 31, 2010, the average
outstanding cash borrowings and commercial paper
balance were $33 million and $655 million, respectively.
PG&E Corporation’s and the Utility’s credit
agreements contain covenants that are usual and
customary for credit facilities of this type, including
covenants limiting liens, mergers, substantial asset sales,
and other fundamental changes. Both the $750 million
and the $1.9 billion revolving credit facilities require that
the Utility maintain a ratio of total consolidated debt to
total consolidated capitalization of at most 65% as of the
end of each fiscal quarter. In addition, the $187 million
revolving credit facility agreement requires that PG&E
Corporation must own, directly or indirectly, at least 80%
of the common stock and at least 70% of the voting
capital stock of the Utility.
At December 31, 2010, PG&E Corporation and the
Utility were in compliance with all covenants under each
of the revolving credit facilities listed in the table above.
2010 FINANCINGS
PG&E Corporation
On November 4, 2010, PG&E Corporation entered into
an Equity Distribution Agreement pursuant to which
PG&E Corporation’s sales agents may offer and sell, from
time to time, PG&E Corporation common stock having
an aggregate gross offering price of up to $400 million.
Sales of the shares are made by means of ordinary
brokers’ transactions on the New York Stock Exchange,
or in such other transactions as agreed upon by PG&E
Corporation and the sales agents and in conformance
with applicable securities laws. As of December 31, 2010,
PG&E Corporation had issued 2,357,796 shares of
common stock pursuant to the Equity Distribution
Agreement for cash proceeds of $110 million, net of fees
and commissions paid of $1 million.
In addition, during 2010, PG&E Corporation issued
5,105,505 shares of common stock upon the exercise of
employee stock options and under its 401(k) plan and
Dividend Reinvestment and Stock Purchase Plan,
generating $192 million of cash. PG&E Corporation
issued 16,370,779 shares of common stock upon
conversion of the $247 million principal amount of
PG&E Corporation’s Convertible Subordinated Notes at
a conversion price of $15.09 per share between June 23
and June 29, 2010. These notes were no longer
outstanding at December 31, 2010, and the conversion
had no impact on cash.
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