PG&E 2015 Annual Report Download - page 69

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PART II
ITEM7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
prices; the ability of the Utility and its counterparties
to post or return collateral in connection with price risk
management activities; and whether the Utility is able
to recover timely its electric generation and energy
commodity costs through rates, including its renewable
energy procurement costs;
đ whether the Utility’s information technology, operating
systems and networks, including the advanced metering
system infrastructure, customer billing, financial, records
management, and other systems, can continue to function
accurately while meeting regulatory requirements;
whether the Utility is able to protect its operating systems
and networks from damage, disruption, or failure caused
by cyber-attacks, computer viruses, or other hazards;
whether the Utility’s security measures are sucient to
protect against unauthorized or inadvertent disclosure
of information contained in such systems and networks,
including confidential proprietary information and the
personal information of customers; and whether the
Utility can continue to rely on third-party vendors and
contractors that maintain and support some of the
Utility’s information technology and operating systems;
đ the amount and timing of charges reflecting probable
liabilities for third-party claims; the extent to which
costs incurred in connection with third-party claims or
litigation can be recovered through insurance, rates, or
from other third parties; and whether the Utility can
continue to obtain adequate insurance coverage for
future losses or claims, especially following a major event
that causes widespread third-party losses;
đ the ability of PG&E Corporation and the Utility to access
capital markets and other sources of debt and equity
financing in a timely manner on acceptable terms;
đ changes in credit ratings which could result in increased
borrowing costs especially if PG&E Corporation or the
Utility were to lose its investment grade credit ratings;
đ the impact of federal or state laws or regulations, or
their interpretation, on energy policy and the regulation
of utilities and their holding companies, including how
the CPUC interprets and enforces the financial and
other conditions imposed on PG&E Corporation when it
became the Utility’s holding company, and whether the
ultimate outcomes of the CPUC’s pending investigations,
the criminal prosecution, and other enforcement matters
aect the Utility’s ability to make distributions to PG&E
Corporation, and, in turn, PG&E Corporation’s ability to
pay dividends;
đ the outcome of federal or state tax audits and the impact
of any changes in federal or state tax laws, policies,
regulations, or their interpretation; and
đ the impact of changes in GAAP, standards, rules, or
policies, including those related to regulatory accounting,
and the impact of changes in their interpretation or
application.
For more information about the significant risks that could
aect the outcome of the forward-looking statements
and PG&E Corporation’s and the Utility’s future financial
condition, results of operations, and cash flows, see Item.
1A. Risk Factors above and our detailed discussion of these
matters contained elsewhere in MD&A. PG&E Corporation
and the Utility do not undertake any obligation to update
forward-looking statements, whether in response to new
information, future events, or otherwise.
ITEM7A. Quantitative and Qualitative Disclosures About Market Risk
Information responding to Item 7A is set forth under the heading “Risk Management Activities,” in MD&A in Item 7 and
in Note 9: Derivatives and Note 10: Fair Value Measurements of the Notes to the Consolidated Financial Statements
in Item 8.