PG&E 2012 Annual Report Download - page 109

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 12: EMPLOYEE BENEFIT PLANS (Continued)
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.
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,
2012 ........................................................ $ 67
2011 ........................................................ 65
2010 ........................................................ 56
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 governmental entities, for overcharges
incurred in the CAISO and the PX wholesale electricity markets during this period. It is uncertain when all these
FERC and judicial proceedings will be finally resolved.
While the FERC and judicial proceedings are pending, the Utility has pursued, and continues to pursue,
settlements with electricity suppliers. The Utility entered into a number of settlement agreements 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
considered by the FERC. Additional settlement discussions with other electricity suppliers are ongoing. Any net
refunds, claim offsets, or other credits that the Utility receives from electricity suppliers through resolution of the
remaining disputed claims, either through settlement or through the conclusion of the various FERC and judicial
proceedings, are refunded to customers through rates in future periods.
On April 10, 2012, the Utility received from the PX a letter stating the mutual intent of the CAISO and the PX
to offset the Utility’s remaining disputed claims with its accounts receivable from the CAISO and the PX.
Accordingly, the Utility has presented the net amount of remaining disputed claims and accounts receivable on the
Consolidated Balance Sheets at December 31, 2012, reflecting its intent and right to offset these amounts. At
December 31, 2011, $494 million was included within accounts receivable—other on the Consolidated Balance
Sheets.
The following table presents the changes in the remaining net disputed claims liability, which includes interest:
(in millions)
Balance at December 31, 2011 ....................................... $ 848
Interest accrued .................................................. 27
Less: supplier settlements ........................................... (33)
Balance at December 31, 2012 ....................................... $ 842
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