PG&E 2014 Annual Report Download - page 135

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127
Natural Gas Supply, Transportation, and Storage Commitments
The Utility purchases natural gas directly from producers and marketers in both Canada and the United States to serve
its core customers and to fuel its owned-generation facilities. These purchase agreements expire at various dates between 2015
and 2026. The Utility also contracts for natural gas transportation from the points at which the Utility takes delivery (typically in
Canada, the US Rocky Mountain supply area, and the southwestern United States) to the points at which the Utility’s natural gas
transportation system begins. In addition, the Utility has contracted for natural gas storage services in northern California in order
to more reliably meet customers’ loads.
Costs incurred for natural gas purchases, natural gas transportation services, and natural gas storage, which include
contracts with terms of less than 1 year, amounted to $1.4 billion in 2014, $1.6 billion in 2013, and $1.3 billion in 2012.
Nuclear Fuel Agreements
The Utility has entered into several purchase agreements for nuclear fuel. These agreements expire at various dates
between 2015 and 2025 and are intended to ensure long-term nuclear fuel supply. The Utility relies on a number of international
producers of nuclear fuel in order to diversify its sources and provide security of supply. Pricing terms are also diversified, ranging
from market-based prices to base prices that are escalated using published indices.
Payments for nuclear fuel amounted to $105 million in 2014, $162 million in 2013, and $118 million in 2012.
Other Commitments
PG&E Corporation and the Utility have other commitments related to operating leases (primarily office facilities and
land), which expire at various dates between 2015 and 2052. At December 31, 2014, the future minimum payments related to these
commitments were as follows:
(in millions)Operating Leases
2015 $ 44
2016 43
2017 33
2018 30
2019 27
Thereafter 183
Total minimum lease payments $ 360
Payments for other commitments related to operating leases amounted to $42 million in 2014, $40 million in 2013, and
$32 million in 2012. Certain leases on office facilities contain escalation clauses requiring annual increases in rent. The rentals
payable under these leases may increase by a fixed amount each year, a percentage of increase over base year, or the consumer
price index. Most leases contain extension operations ranging between one and five years.