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81
PART II
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Computing Arrangement, which adds guidance to help
entities evaluate the accounting treatment for cloud
computing arrangements. The ASU became eective for
PG&E Corporation and the Utility on January 1, 2016. PG&E
Corporation and the Utility have determined that this ASU
will not impact their consolidated financial statements and
related disclosures and will adopt this standard starting in
the first quarter of 2016.
Presentation of Debt Issuance Costs
In April 2015, the FASB issued ASU No. 2015-03, Interest -
Imputation of Interest (Subtopic 835-30): Simplifying the
Presentation of Debt Issuance Costs, which amends existing
presentation of debt issuance costs. PG&E Corporation
and the Utility currently disclose debt issuance costs in
current assets – other and noncurrent assets – other. The
amendments in this ASU, that became eective for PG&E
Corporation and the Utility on January 1, 2016, require that
debt issuance costs related to a recognized debt liability
be presented in the balance sheet as a direct deduction
from the carrying amount of that debt liability, consistent
with debt discounts. PG&E Corporation and the Utility will
adopt this standard in the first quarter of 2016 and do
not expect the reclassification to have a material impact
on their consolidated financial statements.
Revenue Recognition Standard
In May 2014, the FASB issued ASU No. 2014-09, Revenue from
Contracts with Customers, which amends existing revenue
recognition guidance. In August 2015, the FASB issued ASU
No. 2015-14, Revenue from Contracts with Customers (Topic
606): Deferral of the Eective Date, deferring the eective
date of this amendment for PG&E Corporation and the
Utility by one year to January 1, 2018, with early adoption
permitted as of the original eective date of January 1, 2017.
PG&E Corporation and the Utility are currently evaluating
the impact the guidance will have on their consolidated
financial statements and related disclosures.
NOTE 3: Regulatory Assets, Liabilities, and Balancing Accounts
Regulatory Assets
Long-term regulatory assets are comprised of the following:
(inmillions)
BalanceatDecember Recovery
Period 
Pensionbenefits()    Indefinitely()
Deferredincometaxes()   years
Utilityretainedgeneration()   years
Environmentalcompliancecosts()   years
Priceriskmanagement()   years
Electromechanicalmeters() --
Unamortizedlossnetofgainonreacquireddebt()   years
Other   Various
Totallong-termregulatoryassets   
() Representsthecumulativedifferencesbetweenamountsrecognizedforratemakingpurposesandexpenseoraccumulated
othercomprehensiveincome(loss)recognizedinaccordancewithGAAP
() InconnectionwiththesettlementagreemententeredintoamongPG&ECorporationtheUtilityandtheCPUCinto
resolvetheUtility’sproceedingunderChaptertheCPUCauthorizedtheUtilitytorecoverbillionofcostsrelated
totheUtility’sretainedgenerationassetsTheindividualcomponentsoftheseregulatoryassetsarebeingamortizedover
therespectivelivesoftheunderlyinggenerationfacilitiesconsistentwiththeperiodoverwhichtherelatedrevenuesare
recognized
() Representstheexpectedfuturerecoveryofthenetbookvalueofelectromechanicalmetersthatwerereplacedwith
SmartMeter™devicesAsofDecembertheremainingbalanceofmillionisincludedincurrentregulatoryassets
ontheConsolidatedBalanceSheets
() PaymentsintothepensionandotherbenefitsplansarebasedonannualcontributionrequirementsAstheseannual
requirementscontinueindefinitelyintothefuturetheUtilityexpectstocontinuouslyrecoverpensionbenefits
In general, the Utility does not earn a return on regulatory assets if the related costs do not accrue interest. Accordingly,
the Utility earns a return only on its regulatory assets for retained generation, regulatory assets for electromechanical
meters, and regulatory assets for unamortized loss, net of gain, on reacquired debt.