PG&E 2013 Annual Report Download - page 35

The following reflects the sensitivity of other postretirement benefit costs and accumulated benefit obligation to
changes in certain actuarial assumptions:
Increase Increase in 2013 Increase in Accumulated
(Decrease) in Other Postretirement Benefit Obligation at
Assumption Benefit Costs December 31, 2013
(in millions)
Health care cost trend rate . . 0.50% $ 7 $ 43
Discount rate .......... (0.50)% 7 104
Rate of return on plan assets . (0.50)% 9 —
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING STATEMENTS
This 2013 Annual Report contains forward-looking statements that are necessarily subject to various risks and
uncertainties. These statements reflect management’s judgment and opinions which are based on current estimates,
expectations, and projections about future events and assumptions regarding these events and management’s
knowledge of facts as of the date of this report. These forward-looking statements relate to, among other matters,
estimated losses, including penalties and fines, associated with various investigations; forecasts of costs the Utility will
incur to make safety and reliability improvements, including natural gas transmission costs that the Utility will not
recover through rates; forecasts of capital expenditures; estimates and assumptions used in critical accounting
policies, including those relating to regulatory assets and liabilities, environmental remediation, litigation, third-party
claims, and other liabilities; and the level of future equity or debt issuances. These statements are also identified by
words such as ‘‘assume,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘forecast,’’ ‘‘plan,’’ ‘‘project,’’ ‘‘believe,’’ ‘‘estimate,’’ ‘‘predict,’’
‘‘anticipate,’’ ‘‘may,’’ ‘‘should,’’ ‘‘would,’’ ‘‘could,’’ ‘‘potential’’ and similar expressions. PG&E Corporation and the
Utility are not able to predict all the factors that may affect future results. Some of the factors that could cause
future results to differ materially from those expressed or implied by the forward-looking statements, or from
historical results, include, but are not limited to:
• when and how the pending CPUC investigations and enforcement matters related to the Utility’s natural gas
system operating practices and the San Bruno accident are concluded, including the ultimate amount of fines
the Utility will be required to pay to the State General Fund, the amount of natural gas transmission costs the
Utility will be prohibited from recovering, and the cost of any remedial actions the Utility may be ordered to
perform;
• the outcome of the pending federal criminal investigation related to the San Bruno accident, including the
ultimate amount of civil or criminal fines or penalties, if any, the Utility may be required to pay, and the
impact of remedial measures the Utility is required to take such as the appointment of an independent
monitor;
• whether PG&E Corporation and the Utility are able to repair the reputational harm that they have suffered,
and may suffer in the future, due to the negative publicity surrounding the San Bruno accident and the
decisions to be issued in the pending investigations, including any charge or finding of criminal liability;
• the outcomes of ratemaking proceedings, such as the 2014 GRC, the 2015 GT&S rate case, and the TO rate
cases;
• the amount and timing of additional common stock issuances by PG&E Corporation, the proceeds of which
are contributed as equity to maintain the Utility’s authorized capital structure as the Utility incurs charges and
costs that it cannot recover through rates, including costs and fines associated with natural gas matters and the
pending investigations;
• the outcome of future regulatory investigations, citations, or other proceedings, that may be commenced
relating to the Utility’s compliance with laws, rules, regulations, or orders applicable to the operation,
inspection, and maintenance of its electric and gas facilities;
• the impact of environmental remediation laws, regulations, and orders; the ultimate amount of costs incurred
to discharge the Utility’s known and unknown remediation obligations; the extent to which the Utility is able
to recover environmental compliance and remediation costs in rates or from other sources; and the ultimate
amount of environmental remediation costs the Utility incurs but does not recover, such as the remediation
costs associated with the Utility’s natural gas compressor station site located near Hinkley, California;
• the impact of new legislation or NRC regulations, recommendations, policies, decisions, or orders relating to
the nuclear industry, including operations, seismic design, security, safety, relicensing, the storage of spent
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