PG&E 2011 Annual Report Download - page 92

NOTE 11: FAIR VALUE MEASUREMENTS (Continued)
inappropriately between Level 3 price risk management instrument assets and liabilities and other immaterial price
risk management instrument changes.
Fair Value Measurements At December 31,
2011 2010
Level 1 Level 2 Level 3 Netting(1) Total Level 1 Level 2 Level 3 Netting(1) Total
(in millions)
Assets:
Money market investments ....... $ 206 $— $ — $ — $ 206 $ 138 $ — $ — $ — $ 138
Nuclear decommissioning trusts
U.S. equity securities .......... 841 8 ——849 1,029 7 ——1,036
Non-U.S. equity securities ...... 323 —— —323 349 —— —349
U.S. government and agency
securities ................ 744 156 ——900 584 40 ——624
Municipal securities ........... —58——58 — 119 ——119
Other fixed-income securities .... —99——99 —66——66
Total nuclear decommissioning
trusts(2) ................ 1,908 321 ——2,229 1,962 232 ——2,194
Price risk management instruments
(Note 10)
Electric ................... — 92 69 8 169 6 2 119 63 190
Gas...................... — 6 — (3) 3—— 6511
Total price risk management
instruments ............. — 98 69 5 172 6 2 125 68 201
Rabbi trusts
Fixed-income securities ........ —25——25 —24——24
Life insurance contracts ........ —67——67 —65——65
Total rabbi trusts ........... —92——92 —89——89
Long-term disability trust
U.S. equity securities .......... 13 15 ——28 11 24 ——35
Non-U.S. equity securities ...... — 9 ——9——— ——
Fixed-income securities ........ — 145 ——145 — 150 ——150
Total long-term disability trust . . 13 169 ——182 11 174 ——185
Total assets .................. $2,127 $680 $ 69 $ 5 $2,881 $2,117 $497 $125 $ 68 $2,807
Liabilities:
Price risk management instruments
(Note 10)
Electric ................... $ 411 $289 $143 $(441) $ 402 $ 235 $ 73 $475 $(315) $ 468
Gas...................... 31 13 —(32) 12 41 1 49 (41) 50
Total liabilities ............... $ 442 $302 $143 $(473) $ 414 $ 276 $ 74 $524 $(356) $ 518
(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral.
(2) Excludes $188 million and $185 million at December 31, 2011 and December 31, 2010, respectively, primarily related to deferred taxes on
appreciation of investment value.
Valuation Techniques
The following describes the valuation techniques used to measure the fair value of the assets and liabilities
shown in the table above.
Money Market Investments
PG&E Corporation invests in money market funds that seek to maintain a stable net asset value. These funds
invest in high-quality, short-term, diversified money market instruments, such as treasury bills, federal agency
securities, certificates of deposit, and commercial paper with a maximum weighted average maturity of 60 days or
less. PG&E Corporation’s investments in these money market funds are generally valued using unadjusted prices in
an active market for identical assets and are thus classified as Level 1. Money market funds are recorded as cash and
cash equivalents in PG&E Corporation’s Consolidated Balance Sheets.
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