PG&E 2015 Annual Report Download - page 122

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PART II
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
a QF under federal law. Several of these agreements are
treated as capital leases. At December 31, 2015 and 2014, net
capital leases reflected in property, plant, and equipment
on the Consolidated Balance Sheets were $54 million
and $74 million including accumulated amortization of
$147million and $128 million, respectively. The present value
of the future minimum lease payments due under these
agreements included $19 million and $20 million in Current
Liabilities and $35 million and $54 million in Noncurrent
Liabilities on the Consolidated Balance Sheet, respectively.
As of December 31, 2015, QF contracts in operation expire
at various dates between 2016 and 2028. In addition, the
Utility has agreements with various irrigation districts and
water agencies to purchase hydroelectric power.
The costs incurred for all power purchases and electric
capacity amounted to $3.5 billion in 2015, $3.6 billion in
2014, and $3.0 billion in 2013.
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. 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. These agreements expire at various dates between
2016 and 2026. 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 $0.9 billion in 2015, $1.4 billion in 2014, and $1.6 billion
in 2013.
Nuclear Fuel Agreements
The Utility has entered into several purchase agreements
for nuclear fuel. These agreements expire at various dates
between 2016 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 $128 million in
2015, $105 million in 2014, and $162 million in 2013.
Other Commitments
PG&E Corporation and the Utility have other commitments related to operating leases (primarily oce facilities and
land), which expire at various dates between 2016 and 2052. At December 31, 2015, the future minimum payments
related to these commitments were as follows:
(inmillions) OperatingLeases
  
 
 
 
 
Thereafter 
Totalminimumleasepayments 

Payments for other commitments related to operating
leases amounted to $41 million in 2015, $42 million in 2014,
and $40 million in 2013. Certain leases on oce 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.