PG&E 2015 Annual Report Download - page 50

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PART II
ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
For more information about the factors and risks that
could aect PG&E Corporation’s and the Utility’s future
results of operations, financial condition, and cash flows,
or that could cause future results to dier from historical
results, see Item 1A. Risk Factors. In addition, this 2015
Form 10-K contains forward-looking statements that are
necessarily subject to various risks and uncertainties. These
statements reflect management’s judgment and opinions
that are based on current estimates, expectations, and
projections about future events and assumptions regarding
these events and management’s knowledge of facts as of
the date of this report. See the section entitled “Cautionary
Language Regarding Forward-Looking Statements”
below for a list of some of the factors that may cause
actual results to dier materially. PG&E Corporation and
the Utility are not able to predict all the factors that may
aect future results. PG&E Corporation and the Utility do
not undertake an obligation to update forward-looking
statements, whether in response to new information,
future events, or otherwise.
Results of Operations
The following discussion presents PG&E Corporation’s and the Utility’s operating results for 2015, 2014, and 2013. See
“Key Factors Aecting Results of Operations, Financial Condition, and Cash Flows” above for further discussion about
factors that could aect future results of operations.
PG&E Corporation
The consolidated results of operations consist primarily of results related to the Utility, which are discussed in the
“Utility” section below. The following table provides a summary of net income (loss) available for common shareholders:
(inmillions)     
ConsolidatedTotal        
PG&ECorporation        ()
Utility        
PG&E Corporation’s net income or loss consists primarily
of interest expense on long-term debt, other income or
loss from investments, and income taxes. Results include
approximately $30 million and $45 million of realized
gains and associated tax benefits related to an investment
in SolarCity Corporation recognized in 2015 and 2014,
respectively. PG&E Corporation’s operating results in 2013
reflected an impairment loss of $29 million related to tax
equity fund investments.
Utility
The table below shows certain items from the Utility’s
Consolidated Statements of Income for 2015, 2014, and
2013. The table separately identifies the revenues and costs
that impacted earnings from those that did not impact
earnings. In general, expenses the Utility is authorized
to pass through directly to customers (such as costs to
purchase electricity and natural gas, as well as costs to
fund public purpose programs) and the corresponding
amount of revenues collected to recover those pass-through
costs, do not impact earnings. In addition, expenses that
have been specifically authorized (such as the payment
of pension costs) and the corresponding revenues the
Utility is authorized to collect to recover such costs, do
not impact earnings.
Revenues that impact earnings are primarily those that have
been authorized by the CPUC and the FERC to recover
the Utility’s costs to own and operate its assets and to
provide the Utility an opportunity to earn its authorized
rate of return on rate base. Expenses that impact earnings
are primarily those that the Utility incurs to own and
operate its assets.
The Utility’s operating results for 2015 reflect charges
associated with the impact of the Penalty Decision. (See
“Utility Revenues and Costs that Impacted Earnings” below.)