PG&E 2013 Annual Report Download - page 110

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 14: COMMITMENTS AND CONTINGENCIES (Continued)
Nuclear Fuel Agreements
The Utility has entered into several purchase agreements for nuclear fuel. These agreements have remaining
terms ranging from one to 12 years and are intended to ensure long-term nuclear fuel supply. The contracts for
uranium and for conversion and enrichment services provide for 100% coverage of reactor requirements through
2020, while contracts for fuel fabrication services provide for 100% coverage of reactor requirements through 2017.
The Utility relies on a number of international producers of nuclear fuel in order to diversify its sources and provide
security of supply. Pricing terms are also diversified, ranging from market-based prices to base prices that are
escalated using published indices.
At December 31, 2013, the undiscounted future expected payment obligations for nuclear fuel were as follows:
(in millions)
2014 .......................................................... $ 145
2015 .......................................................... 162
2016 .......................................................... 146
2017 .......................................................... 148
2018 .......................................................... 132
Thereafter ...................................................... 647
Total .......................................................... $ 1,380
Payments for nuclear fuel amounted to $162 million in 2013, $118 million in 2012, and $77 million in 2011.
Other Commitments
PG&E Corporation and the Utility have other commitments relating to operating leases. At December 31, 2013,
the future minimum payments related to these commitments were as follows:
(in millions)
2014 .......................................................... $ 42
2015 .......................................................... 37
2016 .......................................................... 34
2017 .......................................................... 27
2018 .......................................................... 24
Thereafter ...................................................... 193
Total .......................................................... $ 357
Payments for other commitments relating to operating leases amounted to $40 million in 2013, $32 million in
2012, and $27 million in 2011. PG&E Corporation and the Utility had operating leases on office facilities expiring at
various dates from 2014 to 2023. Certain leases on office facilities contain escalation clauses requiring annual
increases in rent ranging from 2% to 5%. The rentals payable under these leases may increase by a fixed amount
each year, a percentage of increase over base year, or the consumer price index. Most leases contain extension
options ranging between one and five years.
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