PG&E 2011 Annual Report Download - page 26

provided by or used in operating activities and the level of cash provided by or used in investing activities. The
Utility generally utilizes long-term senior unsecured debt issuances and equity contributions from PG&E Corporation
to maintain its CPUC-authorized capital structure, and relies on short-term debt to fund temporary financing needs.
PG&E Corporation
As of December 31, 2011, PG&E Corporation’s affiliates had entered into four tax equity agreements with two
privately held companies to fund residential and commercial retail solar energy installations. Under these
agreements, PG&E Corporation has agreed to provide lease payments and investment contributions of up to
$396 million to these companies in exchange for the right to receive benefits from local rebates, federal grants, and a
share of the customer payments made to these companies. PG&E Corporation’s financial exposure from these
arrangements is generally limited to its lease payments and investment contributions to these companies. As of
December 31, 2011, PG&E Corporation had made total payments of $359 million under these tax equity agreements
and received $136 million in benefits and customer payments. Lease payments, investment contributions, benefits,
and customer payments received are included in cash flows from operating and investing activities within the
Consolidated Statements of Cash Flows.
In addition to the investments above, PG&E Corporation had the following material cash flows on a stand-alone
basis for the years ended December 31, 2011, 2010, and 2009: dividend payments, common stock issuances,
borrowings and repayments under the revolving credit facility in 2011 and 2010, the senior note issuance of
$350 million in March 2009, net tax refunds of $189 in 2009, and transactions between PG&E Corporation and the
Utility.
CONTRACTUAL COMMITMENTS
The following table provides information about PG&E Corporation’s and the Utility’s contractual commitments
at December 31, 2011:
Payment due by period
Less Than More Than
1 Year 1 - 3 Years 3 - 5 Years 5 Years Total
(in millions)
Contractual Commitments:
Utility
Long-term debt(1):
Fixed rate obligations ...................... $645 $2,541 $1,044 $16,575 $20,805
Variable rate obligations .................... 3 12 948 177 1,140
Energy recovery bonds ..................... 436 —— —436
Purchase obligations(4):
Power purchase agreements(2):
Qualifying facilities ...................... 736 1,588 1,415 3,341 7,080
Renewable contracts (other than QF) ........ 831 2,327 2,722 18,058 23,938
Other power purchase agreements ........... 656 1,453 1,215 3,726 7,050
Natural gas supply and transportation .......... 746 447 340 974 2,507
Nuclear fuel ............................ 88 219 330 909 1,546
Pension and other benefits(3) .................. 396 873 873 436
(6) 2,578
Capital lease obligations(4) .................... 50 92 74 89 305
Operating leases(4) .......................... 30 47 31 81 189
Preferred dividends(5) ....................... 14 28 28 — 70
PG&E Corporation
Long-term debt(1):
Fixed rate obligations ...................... 20 375 ——395
(1) Includes interest payments over the terms of the debt. Interest is calculated using the applicable interest rate at December 31, 2011 and
outstanding principal for each instrument with the terms ending at each instrument’s maturity. Variable rate obligations consist of bonds, due
in 2016 and 2026 and are backed by letters of credit that expire on May 31, 2016. (See Note 4 of the Notes to the Consolidated Financial
Statements.) For information on ERBs, see Note 5 of the Notes to the Consolidated Financial Statements.
(2) This table includes power purchase agreements that have been approved by the CPUC and have completed major milestones for
construction. (See Note 15 of the Notes to the Consolidated Financial Statements.)
(3) PG&E Corporation’s and the Utility’s funding policy is to contribute tax-deductible amounts, consistent with applicable regulatory decisions,
sufficient to meet minimum funding requirements. (See Note 12 of the Notes to the Consolidated Financial Statements.)
(4) See Note 15 of the Notes to the Consolidated Financial Statements.
(5) Based on historical performance, it is assumed for purposes of the table above that dividends are payable within a fixed period of five years.
(6) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue
indefinitely into the future, the amount reflected represents only 1 year of contributions for the Utility’s pension, pension benefit obligation
plans, and long-term disability plans.
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