PG&E 2013 Annual Report Download - page 88

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 10: FAIR VALUE MEASUREMENTS (Continued)
Financial Instruments
PG&E Corporation and the Utility use the following methods and assumptions in estimating fair value for
financial instruments:
• The fair values of cash, restricted cash, net accounts receivable, short-term borrowings, accounts payable,
customer deposits, and the Utility’s variable rate pollution control bond loan agreements approximate their
carrying values at December 31, 2013 and 2012, as they are short-term in nature or have interest rates that
reset daily.
• The fair values of the Utility’s fixed-rate senior notes and fixed-rate pollution control bonds and PG&E
Corporation’s fixed-rate senior notes were based on quoted market prices at December 31, 2013 and 2012.
The carrying amount and fair value of PG&E Corporation’s and the Utility’s debt instruments were as follows
(the table below excludes financial instruments with carrying values that approximate their fair values):
At December 31,
2013 2012
Carrying Level 2 Carrying Level 2
Amount Fair Value Amount Fair Value
(in millions)
Debt (Note 4)
PG&E Corporation ............. $ 350 $ 354 $ 349 $ 371
Utility ....................... 12,334 13,444 11,645 13,946
82