PG&E 2011 Annual Report Download - page 77

NOTE 4: DEBT (Continued)
Pollution Control Bonds
The California Pollution Control Financing Authority and the California Infrastructure and Economic
Development Bank have issued various series of fixed rate and multi-modal tax-exempt pollution control bonds for
the benefit of the Utility. All of the pollution control bonds were used to finance or refinance pollution control and
sewage and solid waste disposal facilities at the Geysers geothermal power plant or at the Utility’s Diablo Canyon
nuclear power plant and were issued as ‘‘exempt facility bonds’’ within the meaning of the Internal Revenue Code of
1954 (‘‘Code’’), as amended. In 1999, the Utility sold the Geysers geothermal power plant to Geysers Power
Company, LLC pursuant to purchase and sale agreements stating that Geysers Power Company, LLC will use the
bond-financed facilities solely as pollution control facilities. The Utility has no knowledge that Geysers Power
Company, LLC intends to cease using the bond-financed facilities solely as pollution control facilities.
Repayment Schedule
PG&E Corporation’s and the Utility’s combined aggregate principal repayment amounts of long-term debt at
December 31, 2011 are reflected in the table below:
2012 2013 2014 2015 2016 Thereafter Total
(in millions, except interest rates)
PG&E Corporation
Average fixed interest rate .................. ——5.75% —— —5.75%
Fixed rate obligations ..................... $ — $ — $ 350 $ — $ — $ — $ 350
Utility
Average fixed interest rate .................. 2.25% 6.25% 4.80% —— 5.70% 5.62%
Fixed rate obligations ..................... $ 50
(1) $ 400 $ 1,000 $ — $ — $9,145 $10,595
Variable interest rate as of December 31, 2011 . . . —— ——0.04% — 0.04%
Variable rate obligations ................... $ — $ — $ — $ — $923(2) $ — $ 923
Less: current portion ...................... (50) — ——— — (50)
Total consolidated long-term debt ........... $ — $ 400 $ 1,350 $ — $923 $9,145 $11,818
(1) These bonds, due in 2026, are subject to mandatory tender on April 2, 2012 and may be remarketed in a fixed or variable rate mode.
Accordingly, the bonds have been classified for repayment purposes in 2012.
(2) These bonds, due in 2016 and 2026, are backed by letters of credit that expire on May 31, 2016.
Short-term Borrowings
The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings on its revolving
credit facilities and commercial paper program at December 31, 2011:
Letters of
Termination Facility Credit Commercial Facility
Date Limit Outstanding Borrowings Paper Availability
(in millions)
PG&E Corporation ........... May 2016 $ 300(1) $ — $ — $ — $ 300
Utility ..................... May 2016 3,000(2) 343 — 1,389(3) 1,268(3)
Total revolving credit facilities ... $3,300 $343 $ — $1,389 $1,568
(1) Includes a $100 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 7 days.
(2) Includes a $1.0 billion sublimit for letters of credit and a $300 million commitment for swingline loans.
(3) The Utility treats the amount of its outstanding commercial paper as a reduction to the amount available under its revolving credit facility.
For the year ended December 31, 2011, the average outstanding borrowings on PG&E Corporation’s revolving
credit facility, the Utility’s revolving credit facility, and commercial paper program was $53 million, $2 million, and
$818 million, respectively. At December 31, 2011, the average yield on outstanding commercial paper was 0.57%.
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