PG&E 2014 Annual Report Download - page 56

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Revolving Credit Facilities and Commercial Paper Programs
At December 31, 2014, PG&E Corporation and the Utility had $300 million and $2.6 billion available under their
respective $300 million and $3.0 billion revolving credit facilities. (See Note 4 of the Notes to the Consolidated Financial
Statements in Item 8.)
The revolving credit facilities require that PG&E Corporation and the Utility maintain a ratio of total consolidated debt
to total consolidated capitalization of at most 65% as of the end of each fiscal quarter. PG&E Corporation’s revolving credit
facility agreement also requires that PG&E Corporation own, directly or indirectly, at least 80% of the common stock and at least
70% of the voting capital stock of the Utility. In addition, these revolving credit facilities include usual and customary provisions
regarding events of default and covenants limiting liens to those permitted under PG&E Corporation’s and the Utility’s senior note
indentures, mergers, sales of all or substantially all of PG&E Corporation’s and the Utility’s assets, and other fundamental changes.
At December 31, 2014, PG&E Corporation and the Utility were in compliance with all covenants under their respective revolving
credit facilities.
2014 Debt Financings
PG&E Corporation and the Utility issued $2.3 billion in long-term debt and $300 million in short-term debt during the
year ended December 31, 2014. (See Note 4 of the Notes to the Consolidated Financial Statements in Item 8.)
Dividends
The Board of Directors of PG&E Corporation and the Utility have authority to declare dividends on their respective
common stock. Dividends are not payable unless and until declared by the applicable Board of Directors. The CPUC requires that
the Utility maintain, on average, its authorized capital structure including a 52% equity component and that the PG&E Corporation
Board of Directors give first priority to the Utility’s capital requirements, as determined to be necessary and prudent to meet the
Utility’s obligation to serve or to operate the Utility in a prudent and efficient manner. Each Board of Directors retains authority to
change the common stock dividend rate at any time, especially if unexpected events occur that would change their view as to the
prudent level of cash conservation.
The Board of Directors of PG&E Corporation declared and paid common stock dividends of $0.455 per share for each of
the quarters in 2014, 2013, and 2012, for annual dividends of $1.82 per share. The Utility’s Board of Directors declared and paid
common stock dividends in the aggregate amount of $179 million to PG&E Corporation for each of the quarters in 2014, 2013,
and 2012. The Utility’s preferred stock is cumulative and any dividends in arrears must be paid before the Utility may pay any
common stock dividends.
The following table summarizes PG&E Corporation’s and the Utility’s dividends paid:
(in millions)2014 2013 2012
PG&E Corporation:
Common stock dividends paid $ 802 $782 $746
Common stock dividends reinvested in Dividend Reinvestment
and Stock Purchase Plan 21 22 22
Utility:
Common stock dividends paid $ 716 $716 $716
Preferred stock dividends paid 14 14 14
Additionally, in December 2014, the following dividends were declared:
the Board of Directors of PG&E Corporation declared quarterly common stock dividends of $0.455 per share, totaling
$217 million, of which approximately $211 million was paid in January 2015 to shareholders of record on December 31,
2014;
the Board of Directors of the Utility declared dividends on its outstanding series of preferred stock, payable in February
2015, to shareholders of record on January 30, 2015.
Subject to the outcome of the matters described in “Enforcement and Litigation Matters” below, PG&E Corporation
expects that its Board will continue to maintain the current quarterly common stock dividend. (See Item 1A. Risk Factors.)