PG&E 2014 Annual Report Download - page 54

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46
Cost of Gas
The Utility’s cost of natural gas includes the costs of procurement, storage, transportation of natural gas, and realized
gains and losses on price risk management activities. (See Note 9 of the Notes to the Consolidated Financial Statements in Item 8.)
The Utility’s cost of natural gas is impacted by the market price of natural gas, changes in the cost of storage and transportation,
changes in customer demand, and by costs associated with complying with California’s GHG laws.
(in millions)2014 2013 2012
Cost of natural gas sold $813 $807 $676
Transportation cost of natural gas sold 141 161 185
Total cost of natural gas $ 954 $ 968 $ 861
Average cost per Mcf of natural gas sold $ 4.37 $ 3.54 $ 2.91
Total natural gas sold (in millions of Mcf) (1) 186 228 232
(1) One thousand cubic feet
Operating and Maintenance Expenses
The Utility’s operating expenses that did not impact earnings include certain costs that the Utility is authorized to recover
as incurred such as pension contributions and public purpose programs costs. If the Utility were to spend more than authorized
amounts, these expenses could have an impact to earnings. For 2014, 2013 and 2012, no material amounts were incurred above
authorized amounts.