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8
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. PG&E Corporation’s and the Utility’s
operating revenues, income, and total assets can be found
below in Item 6. Selected Financial Data.
The principal executive oces 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 (415) 973-1000 and the Utility’s
telephone number is (415) 973-7000.
At December 31, 2015, PG&E Corporation and the Utility had
approximately 23,000 regular employees, approximately
20 of which were employees of the PG&E Corporation.
Of the Utility’s regular employees, approximately 13,500
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 SEIU collective
bargaining agreement will expire on July 31, 2016. The
two agreements with IBEW will expire on December 31,
2016. The agreement with ESC, originally scheduled to
expire on December 31, 2015, automatically renewed for
a period of one year pending the negotiation of a new
agreement with the union. In January 2016, the Utility
and ESC reached a tentative new agreement, subject
to ratification by members of ESC. If ratified, the new
agreement with ESC will be retroactive to January 1, 2016
and will expire on December 31, 2019.
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.
In April 2015, the CPUC issued decisions in the three
investigations that had been brought against the Utility
relating to (1) the Utility’s safety record-keeping 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, record-keeping
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 (the “San Bruno accident”). A decision
was issued in each investigative proceeding to determine
the violations that the Utility committed. The CPUC also
approved a fourth decision (the “Penalty Decision”) to
impose penalties on the Utility totaling $1.6 billion. For
more information about the Penalty Decision see Item 1.A.
Risk Factors and Note 13 of the Notes to the Consolidated
Financial Statements in Item 8. below. The Utility also faces
criminal charges in the U.S. District Court for the Northern
District of California alleging that the Utility knowingly
and willfully violated minimum safety standards under
the Natural Gas Pipeline Safety Act and that the Utility
obstructed the NTSB’s investigation into the cause of the
San Bruno accident. The trial currently is scheduled to begin
on March 22, 2016. For more information about the criminal
proceeding, see “Enforcement and Litigation Matters” in
MD&A, Item 1.A. Risk Factors, and Note 13 of the Notes to
the Consolidated Financial Statements in Item 8. below.
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 aect 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 MD&A.