PG&E 2014 Annual Report Download - page 15

7
PART I
ITEM 1. BUSINESS
PG&E Corporation, incorporated in California in 1995, is a holding company whose primary operating subsidiary is
Pacific Gas and Electric Company, a public utility operating in northern and central California. The Utility was incorporated
in California in 1905. PG&E Corporation became the holding company of the Utility and its subsidiaries in 1997. The Utility
generates revenues mainly through the sale and delivery of electricity and natural gas to customers. At the state level, the Utility is
regulated primarily by the CPUC. At the federal level, the Utility is subject to the jurisdiction of the FERC and the NRC. PG&E
Corporation’s and the Utility’s operating revenues, income, and total assets can be found in Item 6. Selected Financial Data.
The principal executive offices of PG&E Corporation and the Utility are located at 77 Beale Street, P.O. Box 770000,
San Francisco, California 94177. PG&E Corporation’s telephone number is [phone] and the Utility’s telephone number is
[phone].
At December 31, 2014, PG&E Corporation and its subsidiaries had 22,581 employees, including 22,569 employees of the
Utility. Of the Utility’s regular employees, 13,649 are covered by collective bargaining agreements with the local chapters of three
labor unions: the International Brotherhood of Electrical Workers (“IBEW”); the Engineers and Scientists of California (“ESC”);
and the Service Employees International Union (“SEIU”). The two agreements with IBEW, and the single agreement with ESC,
will expire on December 31, 2015. The SEIU collective bargaining agreement will expire on July 31, 2015.
This is a combined Annual Report on Form 10-K for PG&E Corporation and the Utility. PG&E Corporation’s and the
Utility’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and proxy statements,
are available free of charge on both PG&E Corporation’s website, www.pgecorp.com, and the Utility’s website, www.pge.com, as
promptly as practicable after they are filed with, or furnished to, the SEC. The information contained on these websites is not part
of this or any other report that PG&E Corporation and the Utility files with, or furnishes to, the SEC.
This Annual Report on Form 10-K contains forward-looking statements that are necessarily subject to various risks and
uncertainties. For a discussion of the significant risks that could affect the outcome of these forward-looking statements and PG&E
Corporation’s and the Utility’s future financial condition and results of operations, see “Item 1A. Risk Factors” and the section
entitled “Cautionary Language Regarding Forward-Looking Statements” in Item 7. MD&A. In particular, PG&E Corporation’s
and the Utility’s financial results are expected to be materially affected by the final outcome of the CPUC’s pending investigative
enforcement proceedings against the Utility. These investigations relate to (1) the Utility’s safety recordkeeping for its natural
gas transmission system, (2) the Utility’s operation of its natural gas transmission pipeline system in or near locations of higher
population density, and (3) the Utility’s pipeline installation, integrity management, recordkeeping and other operational practices,
and other events or courses of conduct, that could have led to or contributed to the pipeline accident that occurred in San Bruno,
California on September 9, 2010. PG&E Corporation’s and the Utility’s financial condition, results of operations, and cash
flows have been materially affected by the costs the Utility has incurred related to shareholder funded safety work, the ongoing
regulatory investigations, and civil lawsuits that commenced following the San Bruno accident. In addition, PG&E Corporation’s
and the Utility’s financial results could be materially affected by the outcome of the federal criminal prosecution of the Utility and
the other enforcement matters discussed in “Enforcement and Litigation Matters” in Item 7. MD&A.
Regulatory Environment
The Utility’s business is subject to a complex set of energy, environmental and other laws, regulations, and regulatory
proceedings at the federal, state, and local levels. This section and the “Ratemaking Mechanisms” section below summarize
some of the more significant laws, regulations, and regulatory proceedings affecting the Utility. See “Enforcement and Litigation
Matters” and “Ratemaking and Other Regulatory Proceedings” in Item 7. MD&A for discussion of specific pending regulatory
matters that are expected to materially affect PG&E Corporation and the Utility.
PG&E Corporation is a “public utility holding company” as defined under the Public Utility Holding Company Act of
2005 and is subject to regulatory oversight by the FERC. PG&E Corporation and its subsidiaries are exempt from all requirements
of the Public Utility Holding Company Act of 2005 other than the obligation to provide access to their books and records to the
FERC and the CPUC for ratemaking purposes.