PG&E 2015 Annual Report Download - page 105

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97
PART II
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Level 3 Reconciliation
The following table presents the reconciliation for Level 3 price risk management instruments for the years ended
December 31, 2015 and 2014, respectively:
PriceRiskManagementInstruments
(inmillions)
 
Asset(liability)balanceasofJanuary   ()
Netrealizedandunrealizedgains  
Included in regulatory assets and liabilities or balancing accounts(1)  
Asset(liability)balanceasofDecember   
()Thecostsrelatedtopriceriskmanagementactivitiesarerecoverablethroughcustomerratesthereforebalancingaccount
revenueisrecordedforamountssettledandpurchasedandthereisnoimpacttonetincomeUnrealizedgainsandlosses
aredeferredinregulatoryliabilitiesandassets
Financial Instruments
PG&E Corporation and the Utility use the following methods and assumptions in estimating fair value for financial
instruments:
đ
The fair values of cash, restricted cash, net accounts
receivable, short-term borrowings, accounts payable,
customer deposits, floating rate senior notes, and
the Utility’s variable rate pollution control bond loan
agreements approximate their carrying values at
December 31, 2015 and 2014, as they are short-term in
nature or have interest rates that reset daily.
đ
The fair values of the Utility’s fixed-rate senior notes and
fixed-rate pollution control bonds and PG&E Corporation’s
fixed-rate senior notes were based on quoted market
prices at December 31, 2015 and 2014.
The carrying amount and fair value of PG&E Corporation’s and the Utility’s debt instruments were as follows (the table
below excludes financial instruments with carrying values that approximate their fair values):
AtDecember
 
(inmillions)
CarryingAmount LevelFairValue CarryingAmount LevelFairValue
Debt(Note)
PG&ECorporation        
Utility    
Available for Sale Investments
The following table provides a summary of available-for-sale investments:
(inmillions)
Amortized
Cost
Total
Unrealized
Gains
Total
Unrealized
Losses
TotalFair
Value
AsofDecember
Nucleardecommissioningtrusts
Money market investments  - - 
Global equity securities   () 
Fixed-income securities   () 
TOTAL(1)    () 