PG&E 2012 Annual Report Download - page 80

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 4: DEBT (Continued)
(2) Each series of these bonds is supported by a separate letter of credit that expires on May 31, 2016. Although the stated maturity
date is 2026, each series will remain outstanding only if the Utility extends or replaces the letter of credit related to the series or
otherwise obtains consent from the issuer to the continuation of the series without a credit facility.
(3) The Utility has obtained credit support from an insurance company for these bonds.
(4) At December 31, 2012, interest rates on these bonds and the related loans ranged from 0.05% to 0.11%.
(5) Each series of these bonds is supported by a separate direct-pay letter of credit that expires on May 31, 2016. Subject to certain
requirements, the Utility may choose not to provide a credit facility without issuer consent.
(6) These bonds bore interest at 2.25% per year through April 1, 2012; and were subject to mandatory tender on April 2, 2012. The
Utility repurchased these bonds on April 2, 2012 and continues to hold them.
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 debt principal repayment amounts at December 31,
2012 are reflected in the table below:
(in millions, except interest 2013 2014 2015 2016 2017 Thereafter Total
rates)
PG&E Corporation
Average fixed interest rate .... —5.75% ————5.75%
Fixed rate obligations ....... $ — $ 350 $ — $ — $ — $ — $ 350
Utility
Average fixed interest rate .... 6.25% 4.80% ——5.63% 5.45% 5.43%
Fixed rate obligations ....... $ 400 $ 1,000 $ — $ — $ 700 $ 9,595 $ 11,695
Variable interest rate as of
December 31, 2012 ........ ———0.11% ——0.11%
Variable rate obligations ...... $ — $ — $ — $ 923(1) $ — $ — $ 923
Total consolidated debt ..... $ 400 $ 1,350 $ — $ 923 $ 700 $ 9,595 $ 12,968
(1) 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, 2012:
Letters of
Termination Facility Credit Commercial Facility
Date Limit Outstanding Borrowings Paper Availability
(in millions)
PG&E Corporation ........ May 2016 $ 300(1) $ — $ 120 $ — $ 180
Utility .................. May 2016 3,000(2) 266 — 370(3) 2,364(3)
Total revolving credit facilities $ 3,300 $ 266 $ 120 $ 370 $ 2,544
(1) Includes a $100 million sublimit for letters of credit and a $100 million commitment for loans that are made available on a same-day basis
and are repayable in full within 7 days.
76