PG&E 2011 Annual Report Download - page 104

NOTE 12: EMPLOYEE BENEFIT PLANS (Continued)
Benefits Payments and Receipts
As of December 31, 2011, the estimated benefits PG&E Corporation is expected to pay and federal subsidies it
is estimated to receive in each of the next five fiscal years, and in aggregate for the five fiscal years thereafter for
PG&E Corporation, are as follows:
Pension Other Federal Subsidy
(in millions)
2012 ............................ $ 547 $113 $ (6)
2013 ............................ 587 117 (7)
2014 ............................ 626 122 (8)
2015 ............................ 667 127 (8)
2016 ............................ 707 132 (9)
2017 - 2021 ....................... 4,075 733 (58)
There were no material differences between the estimated benefits expected to be paid by PG&E Corporation
and paid by the Utility for the years presented above. There were no material differences between the estimated
subsidies expected to be received by PG&E Corporation and received by the Utility for the years presented above.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 establishes a prescription drug
benefit under Medicare (‘‘Medicare Part D’’) and a tax-exempt federal subsidy to sponsors of retiree health care
benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. PG&E Corporation and
the Utility determined that benefits provided to certain participants will be at least actuarially equivalent to Medicare
Part D. For the years ended December 31, 2011 and 2010, PG&E Corporation received $4 million and $3 million in
federal subsidy receipts, respectively. There was no material difference between PG&E Corporation’s and the
Utility’s Medicare Part D subsidy for 2011 and 2010, respectively.
Defined Contribution Benefit Plans
PG&E Corporation sponsors employee retirement savings plans, including a 401(k) defined contribution savings
plan. These plans are qualified under applicable sections of the Code and provide for tax-deferred salary deductions,
after-tax employee contributions, and employer contributions. Employer contribution expense reflected in PG&E
Corporation’s Consolidated Statements of Income was as follows:
(in millions)
Year ended December 31,
2011 ...................................... $65
2010 ...................................... 56
2009 ...................................... 52
There were no material differences between the employer contribution expense for PG&E Corporation and the
Utility for the years presented above.
NOTE 13: RESOLUTION OF REMAINING CHAPTER 11 DISPUTED CLAIMS
Various electricity suppliers filed claims in the Utility’s Chapter 11 proceeding seeking payment for energy
supplied to the Utility’s customers through the wholesale electricity markets operated by the CAISO and the
California Power Exchange (‘‘PX’’) between May 2000 and June 2001. These claims, which the Utility disputes, are
being addressed in various FERC and judicial proceedings in which the State of California, the Utility, and other
electricity purchasers are seeking refunds from electricity suppliers, including municipal and governmental entities,
for overcharges incurred in the CAISO and the PX wholesale electricity markets between May 2000 and June 2001.
Hearings at the FERC are scheduled to commence on April 11, 2012 to address the Utility’s and other electricity
purchasers’ refund claims for the May through September 2000 period.
While the FERC and judicial proceedings have been pending, the Utility entered into a number of settlements
with various electricity suppliers to resolve some of these disputed claims and to resolve the Utility’s refund claims
against these electricity suppliers. These settlement agreements provide that the amounts payable by the parties are,
in some instances, subject to adjustment based on the outcome of the various refund offset and interest issues being
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