PG&E 2015 Annual Report Download - page 93

85
PART II
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
() AtDecemberinterestratesonthesebondswere
() EachseriesofthesebondsissupportedbyaseparateletterofcreditInDecemberthelettersofcreditwereextended
toDecemberAlthoughthestatedmaturitydateiseachserieswillremainoutstandingonlyiftheUtility
extendsorreplacestheletterofcreditrelatedtotheseriesorotherwiseobtainsconsentfromtheissuertothecontinuation
oftheserieswithoutacreditfacility
() TheUtilityhasobtainedcreditsupportfromaninsurancecompanyforthesebonds
() Eachseriesofthesebondsissupportedbyaseparatedirect-payletterofcreditSeriesCandDlettersofcreditexpireon
DecembertocoincidewiththematurityoftheunderlyingbondsSubjecttocertainrequirementstheUtilitymay
choosenottoprovideacreditfacilitywithoutissuerconsent
Pollution Control Bonds
The California Pollution Control Financing Authority and the
California Infrastructure and Economic Development Bank
have issued various series of fixed rate and multi-modal
tax-exempt pollution control bonds for the benefit of the
Utility. Substantially all of the net proceeds of the pollution
control bonds were used to finance or refinance pollution
control and sewage and solid waste disposal facilities at the
Geysers geothermal power plant or at the Utility’s Diablo
Canyon nuclear power plant. In 1999, the Utility sold all bond-
financed facilities at the non-retired units of the Geysers
geothermal power plant to Geysers Power Company, LLC
pursuant to purchase and sale agreements stating that
Geysers Power Company, LLC will use the bond-financed
facilities solely as pollution control facilities for so long as
any tax-exempt pollution control bonds issued to finance
the Geysers project are outstanding. Except for components
that may have been abandoned in place or disposed of as
scrap or that are permanently non-operational, the Utility
has no knowledge that Geysers Power Company, LLC
intends to cease using the bond-financed facilities solely
as pollution control facilities.
Short-term Borrowings
The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings under their revolving
credit facilities and commercial paper programs at December 31, 2015:
(inmillions)
Termination
Date
Credit
Facility
Limit
Lettersof
Credit
Outstanding
Commercial
Paper
Outstanding
Facility
Availability
PG&ECorporation April  ()  -  -  
Utility April ()   
Totalrevolvingcreditfacilities        
() Includesamillionlendercommitmenttotheletterofcreditsublimitsandamillioncommitmentfor“swingline”
loansdefinedasloansthataremadeavailableonasame-daybasisandarerepayableinfullwithindays
() Includesamillionlendercommitmenttotheletterofcreditsublimitsandamillioncommitmentforswinglineloans
For the year ended December 31, 2015, PG&E Corporation’s
average outstanding commercial paper balance was
$64million and the maximum outstanding balance during
the year was $128 million. For 2015, the Utility’s average
outstanding commercial paper balance was $678 million
and the maximum outstanding balance during the year
was $1.5 billion. There were no bank borrowings for both
PG&E Corporation and the Utility in 2015.
Revolving Credit Facilities
On April 27, 2015, PG&E Corporation and the Utility
amended and restated their respective $300 million and
$3.0 billion revolving credit facilities. The amendments
and restatements extended the termination dates of
the credit facilities from April 1, 2019 to April 27, 2020,
reduced the amount of lender commitments to the letter
of credit sublimits from $100 million to $50 million for
PG&E Corporation’s credit facility and from $1.0 billion to
$500 million for the Utility’s credit facility, and reduced
the swingline commitment on the Utility’s credit facility
from $300 million to $75 million. PG&E Corporation’s and
the Utility’s revolving credit facilities may be used for
working capital, the repayment of commercial paper, and
other corporate purposes. At PG&E Corporation’s and the
Utility’s request and at the sole discretion of each lender,
the facilities may be extended for additional periods.
Borrowings under each amended and restated credit
agreement (other than swing line loans) will bear interest
based, at each borrower’s election, on (1) a London
Interbank Oered Rate (“LIBOR”) plus an applicable
margin or (2) the base rate plus an applicable margin.
The base rate will equal the higher of the following:the
administrative agent’s announced base rate, 0.5% above
the overnight federal funds rate, and the one-month LIBOR
plus an applicable margin. The applicable margin for LIBOR
loans will range between 0.9% and 1.475% under PG&E
Corporation’s amended and restated credit agreement and
between 0.8% and 1.275% under the Utility’s amended and
restated credit agreement. The applicable margin for base
rate loans will range between 0% and 0.475% under PG&E
Corporation’s amended and restated credit agreement
and between 0% and 0.275% under the Utility’s amended
and restated credit agreement. In addition, the facility fee
under PG&E Corporation’s and the Utility’s amended and
restated credit agreements will range between 0.1% and
0.275% and between 0.075% and 0.225%, respectively.