PG&E 2014 Annual Report Download - page 108
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100
Volume of Derivative Activity
At December 31, 2014 and 2013, respectively, the volumes of the Utility’s outstanding derivatives were as follows:
Contract Volume
Underlying Product Instruments 2014 2013
Natural Gas (1) (MMBtus (2)) Forwards and Swaps 308,130,101 331,840,788
Options 164,418,002 260,262,916
Electricity (Megawatt-hours) Forwards and Swaps 5,346,787 8,089,269
Congestion Revenue Rights (3) 224,124,341 250,922,591
(1) Amounts shown are for the combined positions of the electric fuels and core gas supply portfolios.
(2) Million British Thermal Units.
(3) CRRs are financial instruments that enable the holders to manage variability in congestion costs based on demand when there is insufficient transmission
capacity.
Presentation of Derivative Instruments in the Financial Statements
At December 31, 2014, the Utility’s outstanding derivative balances were as follows:
Commodity Risk
Gross
Derivative Total Derivative
(in millions) Balance Netting Cash Collateral Balance
Current assets – other $ 73 $ (4) $ 19 $ 88
Other noncurrent assets – other 178 (13) - 165
Current liabilities – other (78) 4 26 (48)
Noncurrent liabilities – other (140) 13 9 (118)
Total commodity risk $ 33 $ - $ 54 $ 87
At December 31, 2013, the Utility’s outstanding derivative balances were as follows:
Commodity Risk
Gross
Derivative Total Derivative
(in millions) Balance Netting Cash Collateral Balance
Current assets – other $ 42 $ (10) $ 16 $ 48
Other noncurrent assets – other 99 (4) - 95
Current liabilities – other (122) 10 69 (43)
Noncurrent liabilities – other (110) 4 2 (104)
Total commodity risk $ (91) $ - $ 87 $ (4)
Gains and losses recorded on the Utility’s derivatives were as follows:
Commodity Risk
For the year ended December 31,
(in millions) 2014 2013 2012
Unrealized gain/(loss) - regulatory assets and liabilities (1) $ 124 $ 238 $ 391
Realized loss - cost of electricity (2) (83) (178) (486)
Realized loss - cost of natural gas (2) (8) (22) (38)
Total commodity risk $ 33 $ 38 $ (133)
(1) Unrealized gains and losses on commodity risk-related derivative instruments are recorded to regulatory assets or liabilities, rather than being recorded to the
Consolidated Statements of Income. These amounts exclude the impact of cash collateral postings.
(2) These amounts are fully passed through to customers in rates. Accordingly, net income was not impacted by realized amounts on these instruments.