PG&E 2013 Annual Report Download - page 70

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Continued)
Regulatory Balancing Accounts
The Utility’s recovery of a significant portion of revenue requirements and costs is decoupled from the volume
of sales. The Utility records (1) differences between the Utility’s authorized revenue requirement and actual
customer billings, and (2) differences between incurred costs and customer billings. To the extent these differences
are probable of recovery or refund over the next 12 months, the Utility records a current regulatory balancing
account receivable or payable. Regulatory balancing accounts that the Utility does not expect to collect or refund
over the next 12 months are included in other noncurrent assets—regulatory assets or noncurrent liabilities—
regulatory liabilities, respectively, in the Consolidated Balance Sheets.
The Utility sells and delivers electricity and natural gas, which includes procuring and generating electricity. The
Utility also administers public purpose programs, primarily related to customer energy efficiency programs. The
balancing accounts associated with these items will fluctuate during the year based on seasonal electric and gas usage
and the timing of when costs are incurred and customer revenues are collected.
Current regulatory balancing accounts receivable and payable are composed of the following:
Receivable
Balance at
December 31,
2013 2012
(in millions)
Electric distribution .................................... $ 102 $ 219
Utility generation ..................................... 57 117
Gas distribution ...................................... 70 44
Energy procurement ................................... 410 193
Public purpose programs ................................ 56 48
Other .............................................. 429 315
Total regulatory balancing accounts receivable ................ $ 1,124 $ 936
Payable
Balance at
December 31,
2013 2012
(in millions)
Energy procurement ................................... $ 298 $ 116
Public purpose programs ................................ 171 131
Other .............................................. 539 387
Total regulatory balancing accounts payable .................. $ 1,008 $ 634
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