PG&E 2013 Annual Report Download - page 26

Other Pending Lawsuits and Claims
At December 31, 2013, there were also four purported shareholder derivative lawsuits outstanding against
PG&E Corporation and the Utility seeking recovery on behalf of PG&E Corporation and the Utility for alleged
breaches of fiduciary duty by officers and directors, among other claims. The plaintiffs for three of these lawsuits
have filed a consolidated complaint with the San Mateo County Superior Court. The court has lifted the stay on
these proceedings for the limited purpose of allowing the parties to exchange information and discuss possible
resolution. A case management conference is scheduled for April 18, 2014. The remaining purported shareholder
derivative lawsuit, filed in the U.S. District Court for the Northern District of California, remains stayed.
In February 2011, the Board of Directors of PG&E Corporation authorized PG&E Corporation to reject a
demand made by another shareholder that the Board of Directors (1) institute an independent investigation of the
San Bruno accident and related alleged safety issues; (2) seek recovery of all costs associated with such issues
through legal proceedings against those determined to be responsible, including Board of Directors members,
officers, other employees, and third parties; and (3) adopt corporate governance initiatives and safety programs. The
Board of Directors also reserved the right to commence further investigation or litigation regarding the San Bruno
accident if the Board of Directors deems such investigation or litigation appropriate.
PG&E Corporation and the Utility are uncertain when and how the above lawsuits will be resolved.
REGULATORY MATTERS
The Utility is subject to substantial regulation by the CPUC, the FERC, the NRC and other federal and state
regulatory agencies. The resolutions of these and other proceedings may affect PG&E Corporation’s and the Utility’s
financial condition, results of operations, and cash flows.
2014 General Rate Case
On November 15, 2012, the Utility filed its 2014 GRC application with the CPUC. In the Utility’s GRC, the
CPUC will determine the revenue requirements that the Utility is authorized to collect through rates from 2014
through 2016 to recover anticipated costs associated with electric generation operations and electric and natural gas
distribution operations. The Utility has requested that the CPUC authorize a total revenue requirement of
$7.8 billion for 2014, representing an increase of approximately $1.16 billion over the comparable authorized
revenues for 2013. The Utility also has requested that the CPUC authorize attrition increases in 2015 and 2016 of
$436 million and $486 million, respectively. The requested increase is intended to allow the Utility to recover the
costs it forecasts it will incur to continue making improvements to the safety and reliability of its operations.
The CPUC’s ORA recommended that the Utility’s 2014 revenue requirements be reduced by $125 million from
amounts authorized in 2013, approximately $1.29 billion lower than the Utility’s current forecast. The ORA also has
recommended attrition increases of $169 million for 2015 and $160 million for 2016. The ORA’s recommendations
reflected reductions across all operations represented in the GRC. Twelve other parties, including TURN, also
submitted recommendations in the 2014 GRC.
A proposed decision is anticipated in the first quarter of 2014. Although it is uncertain when the CPUC will
issue a final decision, any approved revenue requirement changes will be effective as of January 1, 2014.
2015 Gas Transmission and Storage Rate Case
On December 19, 2013, the Utility filed its 2015 GT&S rate case application (covering 2015 through 2017)
requesting the CPUC approve a total annual revenue requirement of $1.29 billion for anticipated costs of providing
natural gas transmission and storage services beginning on January 1, 2015. This is an increase of $555 million over
the Utility’s authorized revenue requirements of $731 million for 2014, which includes revenue requirements
approved by the CPUC for both GT&S and PSEP. The Utility’s forecasts for the 2015 GT&S rate case period are
consistent with state law, which requires gas corporations to develop a plan to identify and minimize hazards and
systemic risk for public and employee safety. The forecasts include the continuation of work begun in the Utility’s
PSEP, such as testing pipelines to verify safe operating pressures, replacing older pipelines, installing more valves,
and inspecting the interior of more pipelines.
The Utility requested that the CPUC authorize the Utility’s forecast of its 2015 weighted average rate base for
its gas transmission and storage business of $3.56 billion, which includes the capital spend above authorized levels for
the prior rate case period. The Utility also requested additional revenue requirement increases of $61 million in 2016
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