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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549
FORM 10-Q
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(Mark One)
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[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2018
OR |
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
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For the transition period from ___________ to __________
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Commission
File
Number
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Exact Name of
Registrant
as Specified
in its Charter
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State or Other
Jurisdiction of
Incorporation
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IRS Employer
Identification
Number
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1-12609
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PG&E Corporation
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California
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94-3234914
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1-2348
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Pacific Gas and Electric Company
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California
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94-0742640
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PG&E Corporation
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
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Pacific Gas and Electric Company
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
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Address of principal executive offices, including zip code
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PG&E Corporation
(415) 973-1000
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Pacific Gas and Electric Company
(415) 973-7000
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Registrant's telephone number, including area code
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Indicate by check mark whether
the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
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PG&E Corporation:
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[X] Yes [ ] No
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Pacific Gas and Electric Company:
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[X] Yes [ ] No
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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web
site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post
such files).
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PG&E Corporation:
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[X] Yes [ ] No
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Pacific Gas and Electric Company:
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[X] Yes [ ] No
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||||||||
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or
an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
||||||||
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PG&E Corporation:
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[X] Large accelerated filer
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[ ] Accelerated filer
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||||||
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[ ] Non-accelerated filer (Do not check if a smaller reporting company)
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[ ] Smaller reporting company
|
[ ] Emerging growth company
|
|||||
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Pacific Gas and Electric Company:
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[ ] Large accelerated filer
|
[ ] Accelerated filer
|
||||||
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[X] Non-accelerated filer (Do not check if a smaller reporting company)
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[ ] Smaller reporting company
|
[ ] Emerging growth company
|
|||||
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If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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PG&E Corporation:
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[ ]
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Pacific
Gas and Electric Company:
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[ ]
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||||||||
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
||||||||
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PG&E Corporation:
|
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[ ] Yes [X] No
|
||||||
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Pacific Gas and Electric Company:
|
|
[ ] Yes [X] No
|
||||||
|
Indicate the number
of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
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Common stock outstanding as of April 24, 2018:
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|||||||
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PG&E Corporation:
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516,427,502
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Pacific
Gas and Electric Company:
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264,374,809
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2017 Form 10-K
|
PG&E Corporation and Pacific Gas and Electric Company's combined Annual Report on Form 10-K for the year ended December 31, 2017
|
|
ARO
|
asset retirement obligation
|
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ASU
|
accounting standard update issued by the FASB (see below)
|
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CAISO
|
California Independent System Operator
|
|
Cal Fire
|
California Department of Forestry and Fire Protection
|
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CCA
|
Community Choice Aggregator
|
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CEC
|
California Energy Resources Conservation and Development Commission
|
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CEMA
|
Catastrophic Event Memorandum Account
|
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CPUC
|
California Public Utilities Commission
|
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CRRs
|
congestion revenue rights
|
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DER
|
distributed energy resources
|
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Diablo Canyon
|
Diablo Canyon nuclear power plant
|
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DOGGR
|
the Division of Oil, Gas, and Geothermal Resources
|
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DTSC
|
Department of Toxic Substances Control
|
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EPS
|
earnings per common share
|
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EV
|
electric vehicle
|
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FASB
|
Financial Accounting Standards Board
|
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FERC
|
Federal Energy Regulatory Commission
|
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GAAP
|
U.S. Generally Accepted Accounting Principles
|
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GHG
|
greenhouse gas
|
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GRC
|
general rate case
|
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GT&S
|
gas transmission and storage
|
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HSM
|
hazardous substance memorandum account
|
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IOU(s)
|
investor-owned utility(ies)
|
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MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in Item 2, of this Form 10-Q
|
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MGP(s)
|
manufactured gas plants
|
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NAV
|
net asset value
|
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NDCTP
|
Nuclear Decommissioning Cost Triennial Proceedings
|
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NEIL
|
Nuclear Electric Insurance Limited
|
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NRC
|
Nuclear Regulatory Commission
|
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OES
|
State of California Office of Emergency Services
|
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OII
|
order instituting investigation
|
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OIR
|
order instituting rulemaking
|
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ORA
|
Office of Ratepayer Advocates
|
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PCIA
|
Power Charge Indifference Adjustment
|
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PFM
|
petition for modification
|
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RAMP
|
Risk Assessment Mitigation Phase
|
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ROE
|
return on equity
|
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SEC
|
U.S. Securities and Exchange Commission
|
|
SED
|
Safety and Enforcement Division of the CPUC
|
|
Tax Act
|
Tax Cuts and Jobs Act of 2017
|
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TE
|
transportation electrification
|
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TO
|
transmission owner
|
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TURN
|
The Utility Reform Network
|
|
Utility
|
Pacific Gas and Electric Company
|
|
VIE(s)
|
variable interest entity(ies)
|
|
WEMA
|
Wildfire Expense Memorandum Account
|
|
Westinghouse
|
Westinghouse Electric Company, LLC
|
|
|
(Unaudited)
|
||||||
|
|
Three Months Ended
March 31, |
||||||
|
(in millions, except per share amounts)
|
2018
|
|
2017
|
||||
|
Operating Revenues
|
|
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|
||||
|
Electric
|
$
|
2,951
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$
|
3,065
|
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Natural gas
|
1,105
|
|
|
1,203
|
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Total operating revenues
|
4,056
|
|
|
4,268
|
|
||
|
Operating Expenses
|
|
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|
||||
|
Cost of electricity
|
819
|
|
|
847
|
|
||
|
Cost of natural gas
|
289
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|
|
325
|
|
||
|
Operating and maintenance
|
1,597
|
|
|
1,517
|
|
||
|
Depreciation, amortization, and decommissioning
|
752
|
|
|
712
|
|
||
|
Total operating expenses
|
3,457
|
|
|
3,401
|
|
||
|
Operating Income
|
599
|
|
|
867
|
|
||
|
Interest income
|
9
|
|
|
5
|
|
||
|
Interest expense
|
(220
|
)
|
|
(218
|
)
|
||
|
Other income, net
|
108
|
|
|
34
|
|
||
|
Income Before Income Taxes
|
496
|
|
|
688
|
|
||
|
Income tax provision
|
51
|
|
|
109
|
|
||
|
Net Income
|
445
|
|
|
579
|
|
||
|
Preferred stock dividend requirement of subsidiary
|
3
|
|
|
3
|
|
||
|
Income Available for Common Shareholders
|
$
|
442
|
|
|
$
|
576
|
|
|
Weighted Average Common Shares Outstanding, Basic
|
515
|
|
|
508
|
|
||
|
Weighted Average Common Shares Outstanding, Diluted
|
516
|
|
|
511
|
|
||
|
Net Earnings Per Common Share, Basic
|
$
|
0.86
|
|
|
$
|
1.13
|
|
|
Net Earnings Per Common Share, Diluted
|
$
|
0.86
|
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|
$
|
1.13
|
|
|
Dividends Declared Per Common Share
|
$
|
—
|
|
|
$
|
0.49
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Three Months Ended
March 31, |
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Net Income
|
$
|
445
|
|
|
$
|
579
|
|
|
Other Comprehensive Income
|
|
|
|
||||
|
Pension and other post-retirement benefit plans obligations (net of taxes of $0 and $0, at respective dates)
|
—
|
|
|
—
|
|
||
|
Total other comprehensive income (loss)
|
—
|
|
|
—
|
|
||
|
Comprehensive Income
|
445
|
|
|
579
|
|
||
|
Preferred stock dividend requirement of subsidiary
|
3
|
|
|
3
|
|
||
|
Comprehensive Income Attributable to
Common Shareholders
|
$
|
442
|
|
|
$
|
576
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
(in millions)
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
ASSETS
|
|
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|
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|
Current Assets
|
|
|
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|
|||
|
Cash and cash equivalents
|
$
|
144
|
|
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$
|
449
|
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Accounts receivable:
|
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|
||||
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Customers (net of allowance for doubtful accounts of $59 and $64
at respective dates)
|
1,222
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|
1,243
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Accrued unbilled revenue
|
851
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|
946
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|
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|
Regulatory balancing accounts
|
1,367
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|
1,222
|
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||
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Other
|
652
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|
861
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||
|
Regulatory assets
|
646
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|
615
|
|
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|
Inventories:
|
|
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|
||||
|
Gas stored underground and fuel oil
|
79
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|
|
115
|
|
||
|
Materials and supplies
|
374
|
|
|
366
|
|
||
|
Other
|
520
|
|
|
464
|
|
||
|
Total current assets
|
5,855
|
|
|
6,281
|
|
||
|
Property, Plant, and Equipment
|
|
|
|
||||
|
Electric
|
55,654
|
|
|
55,133
|
|
||
|
Gas
|
19,934
|
|
|
19,641
|
|
||
|
Construction work in progress
|
2,562
|
|
|
2,471
|
|
||
|
Other
|
2
|
|
|
3
|
|
||
|
Total property, plant, and equipment
|
78,152
|
|
|
77,248
|
|
||
|
Accumulated depreciation
|
(23,811
|
)
|
|
(23,459
|
)
|
||
|
Net property, plant, and equipment
|
54,341
|
|
|
53,789
|
|
||
|
Other Noncurrent Assets
|
|
|
|
||||
|
Regulatory assets
|
3,724
|
|
|
3,793
|
|
||
|
Nuclear decommissioning trusts
|
2,842
|
|
|
2,863
|
|
||
|
Income taxes receivable
|
65
|
|
|
65
|
|
||
|
Other
|
1,327
|
|
|
1,221
|
|
||
|
Total other noncurrent assets
|
7,958
|
|
|
7,942
|
|
||
|
TOTAL ASSETS
|
$
|
68,154
|
|
|
$
|
68,012
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
(in millions, except share amounts)
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
||
|
Current
Liabilities
|
|
|
|
|
|
||
|
Short-term borrowings
|
$
|
967
|
|
|
$
|
931
|
|
|
Long-term debt, classified as current
|
394
|
|
|
445
|
|
||
|
Accounts payable:
|
|
|
|
||||
|
Trade creditors
|
1,231
|
|
|
1,646
|
|
||
|
Regulatory balancing accounts
|
1,264
|
|
|
1,120
|
|
||
|
Other
|
710
|
|
|
517
|
|
||
|
Disputed claims and customer refunds
|
245
|
|
|
243
|
|
||
|
Interest payable
|
145
|
|
|
217
|
|
||
|
Other
|
1,964
|
|
|
2,010
|
|
||
|
Total current liabilities
|
6,920
|
|
|
7,129
|
|
||
|
Noncurrent Liabilities
|
|
|
|
||||
|
Long-term debt
|
17,407
|
|
|
17,753
|
|
||
|
Regulatory liabilities
|
8,586
|
|
|
8,679
|
|
||
|
Pension and other post-retirement benefits
|
2,094
|
|
|
2,128
|
|
||
|
Asset retirement obligations
|
4,946
|
|
|
4,899
|
|
||
|
Deferred income taxes
|
5,990
|
|
|
5,822
|
|
||
|
Other
|
2,228
|
|
|
2,130
|
|
||
|
Total noncurrent liabilities
|
41,251
|
|
|
41,411
|
|
||
|
Commitments and Contingencies (Note 9)
|
|
|
|
|
|
||
|
Equity
|
|
|
|
||||
|
Shareholders' Equity
|
|
|
|
||||
|
Common stock, no par value, authorized 800,000,000 shares;
516,003,957 and 514,755,845 shares outstanding at respective dates
|
12,701
|
|
|
12,632
|
|
||
|
Reinvested earnings
|
7,043
|
|
|
6,596
|
|
||
|
Accumulated other comprehensive loss
|
(13
|
)
|
|
(8
|
)
|
||
|
Total shareholders'
equity
|
19,731
|
|
|
19,220
|
|
||
|
Noncontrolling Interest - Preferred Stock of Subsidiary
|
252
|
|
|
252
|
|
||
|
Total equity
|
19,983
|
|
|
19,472
|
|
||
|
TOTAL LIABILITIES AND EQUITY
|
$
|
68,154
|
|
|
$
|
68,012
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Cash Flows from Operating Activities
|
|
|
|
||||
|
Net income
|
$
|
445
|
|
|
$
|
579
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
|
Depreciation, amortization, and decommissioning
|
752
|
|
|
712
|
|
||
|
Allowance for equity funds used during construction
|
(32
|
)
|
|
(19
|
)
|
||
|
Deferred income taxes and tax credits, net
|
178
|
|
|
252
|
|
||
|
Other
|
30
|
|
|
8
|
|
||
|
Effect of changes in operating assets and liabilities:
|
|
|
|
||||
|
Accounts receivable
|
120
|
|
|
373
|
|
||
|
Butte-related insurance receivable
|
197
|
|
|
(7
|
)
|
||
|
Inventories
|
28
|
|
|
(2
|
)
|
||
|
Accounts payable
|
24
|
|
|
(13
|
)
|
||
|
Butte-related third-party claims
|
(118
|
)
|
|
(44
|
)
|
||
|
Other current assets and liabilities
|
(145
|
)
|
|
(137
|
)
|
||
|
Regulatory assets, liabilities, and balancing accounts, net
|
114
|
|
|
(176
|
)
|
||
|
Other noncurrent assets and liabilities
|
(81
|
)
|
|
48
|
|
||
|
Net cash provided by operating activities
|
1,512
|
|
|
1,574
|
|
||
|
Cash Flows from Investing Activities
|
|
|
|
|
|
||
|
Capital expenditures
|
(1,470
|
)
|
|
(1,216
|
)
|
||
|
Proceeds from sales and maturities of nuclear decommissioning trust investments
|
494
|
|
|
470
|
|
||
|
Purchases of nuclear decommissioning trust investments
|
(505
|
)
|
|
(493
|
)
|
||
|
Other
|
6
|
|
|
4
|
|
||
|
Net
cash used in investing activities
|
(1,475
|
)
|
|
(1,235
|
)
|
||
|
Cash Flows from Financing Activities
|
|
|
|
|
|
||
|
Net issuances (repayments) of commercial paper, net of discount of $0 and $2 at respective dates
|
36
|
|
|
(755
|
)
|
||
|
Short-term debt financing
|
250
|
|
|
250
|
|
||
|
Short-term debt matured
|
(250
|
)
|
|
(250
|
)
|
||
|
Proceeds from issuance of long-term debt, net of discount and issuance costs of $0 and $10 at respective dates
|
—
|
|
|
590
|
|
||
|
Long-term debt matured or repurchased
|
(400
|
)
|
|
—
|
|
||
|
Common stock issued
|
35
|
|
|
146
|
|
||
|
Common stock dividends paid
|
—
|
|
|
(243
|
)
|
||
|
Other
|
(13
|
)
|
|
(90
|
)
|
||
|
Net cash used in financing activities
|
(342
|
)
|
|
(352
|
)
|
||
|
Net change in cash and cash equivalents
|
(305
|
)
|
|
(13
|
)
|
||
|
Cash and cash equivalents at January 1
|
449
|
|
|
177
|
|
||
|
Cash and cash equivalents at March 31
|
$
|
144
|
|
|
$
|
164
|
|
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
||
|
Cash received (paid) for:
|
|
|
|
|
|
||
|
Interest, net of amounts capitalized
|
$
|
(268
|
)
|
|
$
|
(246
|
)
|
|
Income taxes, net
|
—
|
|
|
1
|
|
||
|
Supplemental disclosures of noncash
investing and financing activities
|
|
|
|
||||
|
Common stock dividends declared but not yet paid
|
$
|
—
|
|
|
$
|
250
|
|
|
Capital expenditures financed through accounts payable
|
255
|
|
|
237
|
|
||
|
Noncash common stock issuances
|
—
|
|
|
4
|
|
||
|
Terminated capital leases
|
137
|
|
|
—
|
|
||
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Three Months Ended
March 31, |
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Operating Revenues
|
|
|
|
|
|
||
|
Electric
|
$
|
2,951
|
|
|
$
|
3,067
|
|
|
Natural gas
|
1,105
|
|
|
1,204
|
|
||
|
Total operating revenues
|
4,056
|
|
|
4,271
|
|
||
|
Operating Expenses
|
|
|
|
||||
|
Cost of electricity
|
819
|
|
|
847
|
|
||
|
Cost of natural gas
|
289
|
|
|
325
|
|
||
|
Operating and maintenance
|
1,597
|
|
|
1,518
|
|
||
|
Depreciation, amortization, and decommissioning
|
752
|
|
|
712
|
|
||
|
Total operating expenses
|
3,457
|
|
|
3,402
|
|
||
|
Operating Income
|
599
|
|
|
869
|
|
||
|
Interest income
|
9
|
|
|
5
|
|
||
|
Interest expense
|
(217
|
)
|
|
(216
|
)
|
||
|
Other income, net
|
109
|
|
|
31
|
|
||
|
Income Before Income Taxes
|
500
|
|
|
689
|
|
||
|
Income tax provision
|
48
|
|
|
120
|
|
||
|
Net Income
|
452
|
|
|
569
|
|
||
|
Preferred stock dividend requirement
|
3
|
|
|
3
|
|
||
|
Income Available for Common Stock
|
$
|
449
|
|
|
$
|
566
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Three Months Ended
March 31, |
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Net Income
|
$
|
452
|
|
|
$
|
569
|
|
|
Other Comprehensive Income
|
|
|
|
||||
|
Pension and other post-retirement benefit plans obligations (net of taxes of $0 and $0, at respective dates )
|
—
|
|
|
1
|
|
||
|
Total other comprehensive income (loss)
|
—
|
|
|
1
|
|
||
|
Comprehensive Income
|
$
|
452
|
|
|
$
|
570
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
|
||||||
|
ASSETS
|
|
|
|
|
|
||
|
Current Assets
|
|
|
|
|
|
||
|
Cash and cash equivalents
|
$
|
122
|
|
|
$
|
447
|
|
|
Accounts receivable:
|
|
|
|
||||
|
Customers (net of allowance for doubtful accounts of $59 and $64
at respective dates)
|
1,222
|
|
|
1,243
|
|
||
|
Accrued unbilled revenue
|
851
|
|
|
946
|
|
||
|
Regulatory balancing accounts
|
1,367
|
|
|
1,222
|
|
||
|
Other
|
661
|
|
|
862
|
|
||
|
Regulatory assets
|
646
|
|
|
615
|
|
||
|
Inventories:
|
|
|
|
||||
|
Gas stored underground and fuel oil
|
79
|
|
|
115
|
|
||
|
Materials and supplies
|
374
|
|
|
366
|
|
||
|
Other
|
519
|
|
|
465
|
|
||
|
Total current assets
|
5,841
|
|
|
6,281
|
|
||
|
Property, Plant, and Equipment
|
|
|
|
||||
|
Electric
|
55,654
|
|
|
55,133
|
|
||
|
Gas
|
19,934
|
|
|
19,641
|
|
||
|
Construction work in progress
|
2,562
|
|
|
2,471
|
|
||
|
Total property, plant, and equipment
|
78,150
|
|
|
77,245
|
|
||
|
Accumulated depreciation
|
(23,808
|
)
|
|
(23,456
|
)
|
||
|
Net property, plant, and equipment
|
54,342
|
|
|
53,789
|
|
||
|
Other Noncurrent Assets
|
|
|
|
||||
|
Regulatory assets
|
3,724
|
|
|
3,793
|
|
||
|
Nuclear decommissioning trusts
|
2,842
|
|
|
2,863
|
|
||
|
Income taxes receivable
|
64
|
|
|
64
|
|
||
|
Other
|
1,200
|
|
|
1,094
|
|
||
|
Total other noncurrent assets
|
7,830
|
|
|
7,814
|
|
||
|
TOTAL ASSETS
|
$
|
68,013
|
|
|
$
|
67,884
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
(in millions. except share amounts)
|
|
||||||
|
LIABILITIES AND EQUITY
|
|
|
|
||||
|
Current Liabilities
|
|
|
|
|
|
||
|
Short-term borrowings
|
$
|
846
|
|
|
$
|
799
|
|
|
Long-term debt, classified as current
|
45
|
|
|
445
|
|
||
|
Accounts payable:
|
|
|
|
||||
|
Trade creditors
|
1,231
|
|
|
1,644
|
|
||
|
Regulatory balancing accounts
|
1,264
|
|
|
1,120
|
|
||
|
Other
|
760
|
|
|
538
|
|
||
|
Disputed claims and customer refunds
|
245
|
|
|
243
|
|
||
|
Interest payable
|
145
|
|
|
214
|
|
||
|
Other
|
1,982
|
|
|
2,018
|
|
||
|
Total current liabilities
|
6,518
|
|
|
7,021
|
|
||
|
Noncurrent Liabilities
|
|
|
|
||||
|
Long-term debt
|
17,407
|
|
|
17,403
|
|
||
|
Regulatory liabilities
|
8,586
|
|
|
8,679
|
|
||
|
Pension and other post-retirement benefits
|
1,990
|
|
|
2,026
|
|
||
|
Asset retirement obligations
|
4,946
|
|
|
4,899
|
|
||
|
Deferred income taxes
|
6,130
|
|
|
5,963
|
|
||
|
Other
|
2,240
|
|
|
2,146
|
|
||
|
Total noncurrent liabilities
|
41,299
|
|
|
41,116
|
|
||
|
Commitments and Contingencies (Note 9)
|
|
|
|
|
|
||
|
Shareholders' Equity
|
|
|
|
||||
|
Preferred stock
|
258
|
|
|
258
|
|
||
|
Common stock, $5 par value, authorized 800,000,000 shares; 264,374,809 shares outstanding at respective dates
|
1,322
|
|
|
1,322
|
|
||
|
Additional paid-in capital
|
8,505
|
|
|
8,505
|
|
||
|
Reinvested earnings
|
10,107
|
|
|
9,656
|
|
||
|
Accumulated other comprehensive income
|
4
|
|
|
6
|
|
||
|
Total shareholders' equity
|
20,196
|
|
|
19,747
|
|
||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
68,013
|
|
|
$
|
67,884
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Cash Flows from Operating Activities
|
|
|
|
|
|
||
|
Net income
|
$
|
452
|
|
|
$
|
569
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
|
Depreciation, amortization, and decommissioning
|
752
|
|
|
712
|
|
||
|
Allowance for equity funds used during construction
|
(32
|
)
|
|
(19
|
)
|
||
|
Deferred income taxes and tax credits, net
|
175
|
|
|
264
|
|
||
|
Other
|
(1
|
)
|
|
57
|
|
||
|
Effect of changes in operating assets and liabilities:
|
|
|
|
||||
|
Accounts receivable
|
112
|
|
|
322
|
|
||
|
Butte-related insurance receivable
|
197
|
|
|
(7
|
)
|
||
|
Inventories
|
28
|
|
|
(2
|
)
|
||
|
Accounts payable
|
55
|
|
|
(3
|
)
|
||
|
Butte-related third-party claims
|
(118
|
)
|
|
(44
|
)
|
||
|
Other current assets and liabilities
|
(131
|
)
|
|
(113
|
)
|
||
|
Regulatory assets, liabilities, and balancing accounts, net
|
114
|
|
|
(176
|
)
|
||
|
Other noncurrent assets and liabilities
|
(87
|
)
|
|
38
|
|
||
|
Net cash provided by operating activities
|
1,516
|
|
|
1,598
|
|
||
|
Cash Flows from Investing Activities
|
|
|
|
||||
|
Capital expenditures
|
(1,470
|
)
|
|
(1,216
|
)
|
||
|
Proceeds from sales and maturities of nuclear decommissioning trust investments
|
494
|
|
|
470
|
|
||
|
Purchases of nuclear decommissioning trust investments
|
(505
|
)
|
|
(493
|
)
|
||
|
Other
|
6
|
|
|
4
|
|
||
|
Net
cash used in investing activities
|
(1,475
|
)
|
|
(1,235
|
)
|
||
|
Cash Flows from Financing Activities
|
|
|
|
||||
|
Net issuances (repayments) of commercial paper, net of discount of $0 and $2 at respective dates
|
47
|
|
|
(755
|
)
|
||
|
Short-term debt financing
|
250
|
|
|
250
|
|
||
|
Short-term debt matured
|
(250
|
)
|
|
(250
|
)
|
||
|
Proceeds from issuance of long-term debt, net of discount and issuance costs of $0 and $10 at respective dates
|
—
|
|
|
590
|
|
||
|
Long-term debt matured or repurchased
|
(400
|
)
|
|
—
|
|
||
|
Preferred stock dividends paid
|
—
|
|
|
(3
|
)
|
||
|
Common stock dividends paid
|
—
|
|
|
(244
|
)
|
||
|
Equity contribution from PG&E Corporation
|
—
|
|
|
125
|
|
||
|
Other
|
(13
|
)
|
|
(87
|
)
|
||
|
Net cash used in financing activities
|
(366
|
)
|
|
(374
|
)
|
||
|
Net change in cash and cash equivalents
|
(325
|
)
|
|
(11
|
)
|
||
|
Cash and
cash equivalents at January 1
|
447
|
|
|
71
|
|
||
|
Cash and cash equivalents at March 31
|
$
|
122
|
|
|
$
|
60
|
|
|
Supplemental disclosures of cash flow information
|
|
|
|
||||
|
Cash received (paid) for:
|
|
|
|
||||
|
Interest, net of amounts capitalized
|
$
|
(259
|
)
|
|
$
|
(242
|
)
|
|
Supplemental disclosures of noncash investing and financing activities
|
|
|
|
||||
|
Capital expenditures financed through accounts payable
|
$
|
255
|
|
|
$
|
237
|
|
|
Terminated capital leases
|
137
|
|
|
—
|
|
||
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
|
Three Months Ended March 31,
|
||||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Service cost for benefits earned
|
$
|
128
|
|
|
$
|
118
|
|
|
$
|
16
|
|
|
$
|
15
|
|
|
Interest cost
|
172
|
|
|
179
|
|
|
17
|
|
|
19
|
|
||||
|
Expected return on plan assets
|
(255
|
)
|
|
(193
|
)
|
|
(33
|
)
|
|
(24
|
)
|
||||
|
Amortization of prior service cost
|
(1
|
)
|
|
(2
|
)
|
|
4
|
|
|
4
|
|
||||
|
Amortization of net actuarial loss
|
1
|
|
|
6
|
|
|
(1
|
)
|
|
1
|
|
||||
|
Net periodic benefit cost
|
45
|
|
|
108
|
|
|
3
|
|
|
15
|
|
||||
|
Regulatory account transfer
(1)
|
39
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
||||
|
Total
|
$
|
84
|
|
|
$
|
85
|
|
|
$
|
3
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Pension
Benefits |
|
Other
Benefits |
|
Total
|
||||||
|
(in millions, net of income tax)
|
Three Months Ended March 31, 2018
|
||||||||||
|
Beginning balance
|
$
|
(25
|
)
|
|
$
|
17
|
|
|
$
|
(8
|
)
|
|
Amounts reclassified from other comprehensive income:
|
|
|
|
|
|
||||||
|
Amortization of prior service cost (net of taxes of $0 and $1, respectively)
(1)
|
(1
|
)
|
|
3
|
|
|
2
|
|
|||
|
Amortization of net actuarial loss (net of taxes of $0 and $0, respectively)
(1)
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
|
Regulatory account transfer (net of taxes of $0 and $1, respectively)
(1)
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
|
Reclassification of stranded income tax to retained earnings (net of taxes of $0 and $0, respectively)
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
|
Net current period other comprehensive gain (loss)
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
|
Ending balance
|
$
|
(30
|
)
|
|
$
|
17
|
|
|
$
|
(13
|
)
|
|
|
|
|
|
|
|
||||||
|
|
Pension Benefits
|
|
Other
Benefits |
|
Total
|
||||||
|
(in millions, net of income tax)
|
Three Months Ended March 31, 2017
|
||||||||||
|
Beginning balance
|
$
|
(25
|
)
|
|
$
|
16
|
|
|
$
|
(9
|
)
|
|
Amounts reclassified from other comprehensive income:
(1)
|
|
|
|
|
|
||||||
|
Amortization of prior service cost (net of taxes of $1 and $2, respectively)
|
(1
|
)
|
|
2
|
|
|
1
|
|
|||
|
Amortization of net actuarial loss (net of taxes of $3, and $0, respectively)
|
3
|
|
|
1
|
|
|
4
|
|
|||
|
Regulatory account transfer (net of taxes of $2 and $2, respectively)
|
(2
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|||
|
Net current period other comprehensive gain (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Ending balance
|
$
|
(25
|
)
|
|
$
|
16
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
|
||||||
|
(in millions)
|
Three Months Ended March 31,
|
||
|
Electric
|
2018
|
||
|
Revenue from contracts with customers
|
|
||
|
Residential
|
$
|
1,336
|
|
|
Commercial
|
1,073
|
|
|
|
Industrial
|
324
|
|
|
|
Agricultural
|
125
|
|
|
|
Public street and highway lighting
|
20
|
|
|
|
Other
(1)
|
(201
|
)
|
|
|
Total revenue from contracts with customers - electric
|
2,677
|
|
|
|
Regulatory balancing accounts
(2)
|
274
|
|
|
|
Total electric operating revenue
|
$
|
2,951
|
|
|
|
|
||
|
Natural gas
|
|
||
|
Revenue from contracts with customers
|
|
||
|
Residential
|
$
|
958
|
|
|
Commercial
|
196
|
|
|
|
Transportation service only
|
297
|
|
|
|
Other
(1)
|
(52
|
)
|
|
|
Total revenue from contracts with customers - gas
|
1,399
|
|
|
|
Regulatory balancing accounts
(2)
|
(294
|
)
|
|
|
Total natural gas operating revenue
|
1,105
|
|
|
|
Total operating revenues
|
$
|
4,056
|
|
|
|
|
||
|
|
Asset Balance at
|
||||||
|
(in millions)
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
Pension benefits
|
$
|
1,915
|
|
|
$
|
1,954
|
|
|
Environmental compliance costs
|
749
|
|
|
837
|
|
||
|
Utility retained generation
|
308
|
|
|
319
|
|
||
|
Price risk management
|
68
|
|
|
65
|
|
||
|
Unamortized loss, net of gain, on reacquired debt
|
88
|
|
|
79
|
|
||
|
Catastrophic event memorandum account
|
314
|
|
|
274
|
|
||
|
Other
|
282
|
|
|
265
|
|
||
|
Total long-term regulatory assets
|
$
|
3,724
|
|
|
$
|
3,793
|
|
|
|
Liability Balance at
|
||||||
|
(in millions)
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
Cost of removal obligations
|
$
|
5,674
|
|
|
$
|
5,547
|
|
|
Deferred income taxes
|
873
|
|
|
1,021
|
|
||
|
Recoveries in excess of AROs
|
533
|
|
|
624
|
|
||
|
Public purpose programs
|
591
|
|
|
590
|
|
||
|
Other
|
915
|
|
|
897
|
|
||
|
Total long-term regulatory liabilities
|
$
|
8,586
|
|
|
$
|
8,679
|
|
|
|
Receivable Balance at
|
||||||
|
(in millions)
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
Electric distribution
|
$
|
176
|
|
|
$
|
—
|
|
|
Electric transmission
|
125
|
|
|
139
|
|
||
|
Utility generation
|
203
|
|
|
—
|
|
||
|
Gas distribution and transmission
|
269
|
|
|
486
|
|
||
|
Energy procurement
|
1
|
|
|
71
|
|
||
|
Public purpose programs
|
115
|
|
|
103
|
|
||
|
Other
|
478
|
|
|
423
|
|
||
|
Total regulatory balancing accounts receivable
|
$
|
1,367
|
|
|
$
|
1,222
|
|
|
|
Payable Balance at
|
||||||
|
(in millions)
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
Electric distribution
|
$
|
—
|
|
|
$
|
72
|
|
|
Electric transmission
|
108
|
|
|
120
|
|
||
|
Utility generation
|
—
|
|
|
14
|
|
||
|
Energy procurement
|
265
|
|
|
149
|
|
||
|
Public purpose programs
|
491
|
|
|
452
|
|
||
|
Other
|
400
|
|
|
313
|
|
||
|
Total regulatory balancing accounts payable
|
$
|
1,264
|
|
|
$
|
1,120
|
|
|
(in millions)
|
Termination Date
|
|
Facility
Limit
|
|
Letters of
Credit
Outstanding
|
|
Commercial
Paper
|
|
Facility
Availability
|
||||||||
|
PG&E Corporation
|
April 2022
|
|
$
|
300
|
|
(1)
|
$
|
—
|
|
|
$
|
121
|
|
|
$
|
179
|
|
|
Utility
|
April 2022
|
|
3,000
|
|
(2)
|
48
|
|
|
97
|
|
|
2,855
|
|
||||
|
Total revolving credit facilities
|
|
|
$
|
3,300
|
|
|
$
|
48
|
|
|
$
|
218
|
|
|
$
|
3,034
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
PG&E Corporation
|
|
Utility
|
||||
|
(in millions)
|
Total
Equity
|
|
Total
Shareholders' Equity
|
||||
|
Balance at December 31, 2017
|
$
|
19,472
|
|
|
$
|
19,747
|
|
|
Comprehensive income
|
445
|
|
|
452
|
|
||
|
Common stock issued
|
35
|
|
|
—
|
|
||
|
Share-based compensation
|
34
|
|
|
—
|
|
||
|
Preferred stock dividend requirement
|
—
|
|
|
(3
|
)
|
||
|
Preferred stock dividend requirement of subsidiary
|
(3
|
)
|
|
—
|
|
||
|
Balance at March 31, 2018
|
$
|
19,983
|
|
|
$
|
20,196
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(in millions, except per share amounts)
|
2018
|
|
2017
|
||||
|
Income available for common shareholders
|
$
|
442
|
|
|
$
|
576
|
|
|
Weighted average common shares outstanding, basic
|
515
|
|
|
508
|
|
||
|
Add incremental shares from assumed conversions:
|
|
|
|
||||
|
Employee share-based compensation
|
1
|
|
|
3
|
|
||
|
Weighted average common shares outstanding, diluted
|
516
|
|
|
511
|
|
||
|
Total earnings per common share, diluted
|
$
|
0.86
|
|
|
$
|
1.13
|
|
|
|
|
|
|
Contract Volume at
|
||||
|
Underlying Product
|
|
Instruments
|
|
March 31,
2018 |
|
December 31,
2017 |
||
|
Natural Gas
(1)
(MMBtus
(2)
)
|
|
Forwards, Futures and Swaps
|
|
184,948,051
|
|
|
228,768,745
|
|
|
|
|
Options
|
|
31,481,247
|
|
|
60,736,806
|
|
|
Electricity (Megawatt-hours)
|
|
Forwards, Futures and Swaps
|
|
2,602,376
|
|
|
2,872,013
|
|
|
|
|
Congestion Revenue Rights
(3)
|
|
304,484,831
|
|
|
312,272,177
|
|
|
|
|
|
|
|
|
|
||
|
|
Commodity Risk
|
||||||||||||||
|
(in millions)
|
Gross Derivative
Balance
|
|
Netting
|
|
Cash Collateral
|
|
Total
Derivative
Balance
|
||||||||
|
Current assets – other
|
$
|
30
|
|
|
$
|
(2
|
)
|
|
$
|
6
|
|
|
$
|
34
|
|
|
Other noncurrent assets – other
|
98
|
|
|
(1
|
)
|
|
—
|
|
|
97
|
|
||||
|
Current liabilities – other
|
(52
|
)
|
|
2
|
|
|
19
|
|
|
(31
|
)
|
||||
|
Noncurrent liabilities – other
|
(68
|
)
|
|
1
|
|
|
12
|
|
|
(55
|
)
|
||||
|
Total commodity risk
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
45
|
|
|
|
Commodity Risk
|
||||||||||||||
|
(in millions)
|
Gross Derivative
Balance
|
|
Netting
|
|
Cash Collateral
|
|
Total Derivative
Balance
|
||||||||
|
Current assets – other
|
$
|
30
|
|
|
$
|
(3
|
)
|
|
$
|
10
|
|
|
$
|
37
|
|
|
Other noncurrent assets – other
|
103
|
|
|
(1
|
)
|
|
—
|
|
|
102
|
|
||||
|
Current liabilities – other
|
(47
|
)
|
|
3
|
|
|
13
|
|
|
(31
|
)
|
||||
|
Noncurrent liabilities – other
|
(66
|
)
|
|
1
|
|
|
8
|
|
|
(57
|
)
|
||||
|
Total commodity risk
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
51
|
|
|
|
|
Commodity Risk
|
||||||
|
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
|
2018
|
|
2017
|
||||
|
Unrealized gain (loss) - regulatory assets and liabilities
(1)
|
|
$
|
(12
|
)
|
|
$
|
(48
|
)
|
|
Realized loss - cost of electricity
(2)
|
|
(18
|
)
|
|
(5
|
)
|
||
|
Realized loss - cost of natural gas
(2)
|
|
(1
|
)
|
|
(1
|
)
|
||
|
Net commodity risk
|
|
$
|
(31
|
)
|
|
$
|
(54
|
)
|
|
|
|
|
|
|
||||
|
|
Balance at
|
||||||
|
(in millions)
|
March 31,
2018 |
|
December 31,
2017 |
||||
|
Derivatives in a liability position with credit risk-related
contingencies that are not fully collateralized
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
Related derivatives in an asset position
|
—
|
|
|
—
|
|
||
|
Collateral posting in the normal course of business related to
these derivatives
|
—
|
|
|
—
|
|
||
|
Net position of derivative contracts/additional collateral
posting requirements
(1)
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
||||
|
•
|
Level 1 –
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
|
•
|
Level 2 –
Other inputs that are directly or indirectly observable in the marketplace.
|
|
•
|
Level 3 –
Unobservable inputs which are supported by little or no market activities.
|
|
|
Fair Value Measurements
|
||||||||||||||||||
|
|
March 31, 2018
|
||||||||||||||||||
|
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
(1)
|
|
Total
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
$
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
28
|
|
|||
|
Global equity securities
|
1,862
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,862
|
|
|||||
|
Fixed-income securities
|
776
|
|
|
599
|
|
|
—
|
|
|
—
|
|
|
1,375
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
|
Total nuclear decommissioning trusts
(2)
|
2,666
|
|
|
599
|
|
|
—
|
|
|
—
|
|
|
3,282
|
|
|||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
—
|
|
|
2
|
|
|
125
|
|
|
3
|
|
|
130
|
|
|||||
|
Gas
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
Total price risk management instruments
|
—
|
|
|
3
|
|
|
125
|
|
|
3
|
|
|
131
|
|
|||||
|
Rabbi trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed-income securities
|
—
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|||||
|
Life insurance contracts
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
|||||
|
Total rabbi trusts
|
—
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|||||
|
Long-term disability trust
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
162
|
|
|||||
|
Total long-term disability trust
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|||||
|
TOTAL ASSETS
|
$
|
2,671
|
|
|
$
|
745
|
|
|
$
|
125
|
|
|
$
|
3
|
|
|
$
|
3,723
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
$
|
8
|
|
|
$
|
25
|
|
|
$
|
85
|
|
|
$
|
(33
|
)
|
|
$
|
85
|
|
|
Gas
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||||
|
TOTAL LIABILITIES
|
$
|
8
|
|
|
$
|
27
|
|
|
$
|
85
|
|
|
$
|
(34
|
)
|
|
$
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Fair Value Measurements
|
||||||||||||||||||
|
|
December 31, 2017
|
||||||||||||||||||
|
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
(1)
|
|
Total
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
$
|
385
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
385
|
|
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|||||
|
Global equity securities
|
1,967
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,967
|
|
|||||
|
Fixed-income securities
|
733
|
|
|
562
|
|
|
—
|
|
|
—
|
|
|
1,295
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
|
Total nuclear decommissioning trusts
(2)
|
2,723
|
|
|
562
|
|
|
—
|
|
|
—
|
|
|
3,303
|
|
|||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
—
|
|
|
3
|
|
|
129
|
|
|
6
|
|
|
138
|
|
|||||
|
Gas
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
Total price risk management instruments
|
—
|
|
|
4
|
|
|
129
|
|
|
6
|
|
|
139
|
|
|||||
|
Rabbi trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed-income securities
|
—
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|||||
|
Life insurance contracts
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|||||
|
Total rabbi trusts
|
—
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|||||
|
Long-term disability trust
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|||||
|
Total long-term disability trust
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|||||
|
TOTAL ASSETS
|
$
|
3,116
|
|
|
$
|
709
|
|
|
$
|
129
|
|
|
$
|
6
|
|
|
$
|
4,145
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
$
|
10
|
|
|
$
|
15
|
|
|
$
|
87
|
|
|
$
|
(25
|
)
|
|
$
|
87
|
|
|
Gas
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
TOTAL LIABILITIES
|
$
|
10
|
|
|
$
|
16
|
|
|
$
|
87
|
|
|
$
|
(25
|
)
|
|
$
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Fair Value at
|
|
|
|
|
|
|
||||||
|
(in millions)
|
|
March 31, 2018
|
|
|
|
|
|
|
||||||
|
Fair Value Measurement
|
|
Assets
|
|
Liabilities
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range
(1)
|
||||
|
Congestion revenue rights
|
|
$
|
125
|
|
|
$
|
25
|
|
|
Market approach
|
|
CRR auction prices
|
|
$ (7.44) - 13.91
|
|
Power purchase agreements
|
|
$
|
—
|
|
|
$
|
60
|
|
|
Discounted cash flow
|
|
Forward prices
|
|
$ 18.81 - 38.80
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Fair Value at
|
|
|
|
|
|
|
||||||
|
(in millions)
|
|
December 31, 2017
|
|
|
|
|
|
|
||||||
|
Fair Value Measurement
|
|
Assets
|
|
Liabilities
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
(1)
|
||||
|
Congestion revenue rights
|
|
$
|
129
|
|
|
$
|
24
|
|
|
Market approach
|
|
CRR auction prices
|
|
$ (16.03) - 11.99
|
|
Power purchase agreements
|
|
$
|
—
|
|
|
$
|
63
|
|
|
Discounted cash flow
|
|
Forward prices
|
|
$ 18.81 - 38.80
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Price Risk Management Instruments
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Asset (liability) balance as of January 1
|
$
|
42
|
|
|
$
|
55
|
|
|
Net realized and unrealized gains:
|
|
|
|
||||
|
Included in regulatory assets and liabilities or balancing accounts
(1)
|
(2
|
)
|
|
(6
|
)
|
||
|
Asset (liability) balance as of March 31
|
$
|
40
|
|
|
$
|
49
|
|
|
|
|
|
|
||||
|
|
At March 31, 2018
|
|
At December 31, 2017
|
||||||||||||
|
(in millions)
|
Carrying Amount
|
|
Level 2 Fair Value
|
|
Carrying Amount
|
|
Level 2 Fair Value
|
||||||||
|
PG&E Corporation
|
$
|
350
|
|
|
$
|
348
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
Utility
|
16,693
|
|
|
17,723
|
|
|
17,090
|
|
|
19,128
|
|
||||
|
(in millions)
|
|
|
|
|
|
|
|
||||||||
|
As of March 31, 2018
|
Amortized
Cost |
|
Total
Unrealized Gains |
|
Total
Unrealized Losses |
|
Total Fair
Value |
||||||||
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
||||||||
|
Short-term investments
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
Global equity securities
|
475
|
|
|
1,405
|
|
|
(1
|
)
|
|
1,879
|
|
||||
|
Fixed-income securities
|
1,355
|
|
|
39
|
|
|
(19
|
)
|
|
1,375
|
|
||||
|
Total
(1)
|
$
|
1,858
|
|
|
$
|
1,444
|
|
|
$
|
(20
|
)
|
|
$
|
3,282
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
||||||||
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
||||||||
|
Short-term investments
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
Global equity securities
|
524
|
|
|
1,463
|
|
|
(2
|
)
|
|
1,985
|
|
||||
|
Fixed-income securities
|
1,252
|
|
|
51
|
|
|
(8
|
)
|
|
1,295
|
|
||||
|
Total
(1)
|
$
|
1,799
|
|
|
$
|
1,514
|
|
|
$
|
(10
|
)
|
|
$
|
3,303
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of
|
||
|
(in millions)
|
March 31, 2018
|
||
|
Less than 1 year
|
$
|
42
|
|
|
1–5 years
|
438
|
|
|
|
5–10 years
|
374
|
|
|
|
More than 10 years
|
521
|
|
|
|
Total maturities of fixed-income securities
|
$
|
1,375
|
|
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Proceeds from sales and maturities of nuclear decommissioning trust investments
|
$
|
494
|
|
|
$
|
470
|
|
|
Gross realized gains on securities
|
37
|
|
|
29
|
|
||
|
Gross realized losses on securities
|
(4
|
)
|
|
(5
|
)
|
||
|
Loss Accrual (in millions)
|
|
|
||
|
Balance at December 31, 2015
|
|
$
|
—
|
|
|
Accrued losses
|
|
750
|
|
|
|
Payments
(1)
|
|
(60)
|
|
|
|
Balance at December 31, 2016
|
|
690
|
|
|
|
Accrued losses
|
|
350
|
|
|
|
Payments
(1)
|
|
(479)
|
|
|
|
Balance at December 31, 2017
|
|
561
|
|
|
|
Accrued losses
|
|
—
|
|
|
|
Payments
(1)
|
|
(118
|
)
|
|
|
Balance at March 31, 2018
|
|
$
|
443
|
|
|
|
|
|
||
|
Insurance Receivable (in millions)
|
|
|
||
|
Balance at December 31, 2015
|
|
$
|
—
|
|
|
Accrued insurance recoveries
|
|
625
|
|
|
|
Reimbursements
|
|
(50)
|
|
|
|
Balance at December 31, 2016
|
|
575
|
|
|
|
Accrued insurance recoveries
|
|
297
|
|
|
|
Reimbursements
|
|
(276)
|
|
|
|
Balance at December 31, 2017
|
|
596
|
|
|
|
Accrued insurance recoveries
|
|
—
|
|
|
|
Reimbursements
|
|
(197
|
)
|
|
|
Balance at March 31, 2018
|
|
$
|
399
|
|
|
|
Balance at
|
||||||
|
|
March 31,
|
|
December 31,
|
||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Topock natural gas compressor station
|
$
|
342
|
|
|
$
|
334
|
|
|
Hinkley natural gas compressor station
|
144
|
|
|
147
|
|
||
|
Former manufactured gas plant sites owned by the Utility or third parties
(1)
|
329
|
|
|
320
|
|
||
|
Utility-owned generation facilities (other than fossil fuel-fired),
other facilities, and third-party disposal sites (2) |
113
|
|
|
115
|
|
||
|
Fossil fuel-fired generation facilities and sites
(3)
|
157
|
|
|
123
|
|
||
|
Total environmental remediation liability
|
$
|
1,085
|
|
|
$
|
1,039
|
|
|
|
|
|
|
||||
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
Earnings
|
|
Earnings per Common Share (Diluted)
|
||||||||||||
|
(in millions, except per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
PG&E Corporation’s Earnings on a GAAP basis
|
$
|
442
|
|
|
$
|
576
|
|
|
$
|
0.86
|
|
|
$
|
1.13
|
|
|
Items Impacting Comparability:
(1)
|
|
|
|
|
|
|
|
||||||||
|
Northern California wildfire-related costs
(2)
|
15
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
||||
|
Pipeline-related expenses
(3)
|
7
|
|
|
16
|
|
|
0.01
|
|
|
0.03
|
|
||||
|
Butte fire-related costs, net of insurance
(4)
|
4
|
|
|
2
|
|
|
0.01
|
|
|
—
|
|
||||
|
Legal and regulatory-related expenses
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
|
Fines and penalties
|
—
|
|
|
36
|
|
|
—
|
|
|
0.07
|
|
||||
|
GT&S revenue timing impact
|
—
|
|
|
(88
|
)
|
|
—
|
|
|
(0.17
|
)
|
||||
|
PG&E Corporation’s Earnings from Operations
(5)
|
$
|
468
|
|
|
$
|
544
|
|
|
$
|
0.91
|
|
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31,
|
||||||
|
(in millions, except per share amounts)
|
Earnings
|
|
Earnings per Common Share (Diluted)
|
||||
|
2017 Earnings from Operations
(1)
|
$
|
544
|
|
|
$
|
1.06
|
|
|
Growth in rate base earnings
(2)
|
42
|
|
|
0.08
|
|
||
|
Timing of 2017 GRC cost recovery
(3)
|
18
|
|
|
0.03
|
|
||
|
Tax impact of stock compensation
(4)
|
(44
|
)
|
|
(0.08
|
)
|
||
|
Timing of nuclear refueling outages
|
(31
|
)
|
|
(0.06
|
)
|
||
|
Timing of taxes
(5)
|
(25
|
)
|
|
(0.05
|
)
|
||
|
Decrease in authorized return on equity
(6)
|
(7
|
)
|
|
(0.01
|
)
|
||
|
Increase in shares outstanding
|
—
|
|
|
(0.01
|
)
|
||
|
Miscellaneous
|
(29
|
)
|
|
(0.05
|
)
|
||
|
2018 Earnings from Operations
(1)
|
$
|
468
|
|
|
$
|
0.91
|
|
|
|
|
|
|
||||
|
•
|
The Impact of the Northern California Wildfires.
PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows could be materially affected by potential losses resulting from the Northern California wildfires. The Utility incurred costs of $259 million for service restoration and repair to the Utility’s facilities (including $108 million in capital expenditures) through March 31, 2018, in connection with these fires. PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows could be materially affected if the Utility is unable to recover such costs through CEMA. If the Utility’s facilities, such as its electric distribution and transmission lines, are determined to be the substantial cause of one or more fires, and the doctrine of inverse condemnation applies, the Utility could be liable for property damage, business interruption, interest, and attorneys’ fees without having been found negligent, which liability, in the aggregate, could be substantial and have a material adverse effect on PG&E Corporation and the Utility. In addition to such claims for property damage, business interruption, interest and attorneys' fees, the Utility could be liable for fire suppression costs, evacuation costs, medical expenses, personal injury damages, and other damages under other theories of liability, including if the Utility were found to have been negligent, which liability, in the aggregate, could be substantial and have a material effect on PG&E Corporation and the Utility. Further, the Utility could be subject to material fines or penalties if the CPUC or any other law enforcement agency brought an enforcement action and determined that the Utility failed to comply with applicable laws and regulations. (See Note 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1.)
|
|
•
|
The Applicability of the Doctrine of Inverse Condemnation in PG&E Corporation and the Utility’s Wildfire Litigation.
The doctrine of inverse condemnation, if applied by courts in litigation to which PG&E Corporation and the Utility are subject, could expose PG&E Corporation and the Utility to substantial liabilities from such litigation and materially affect PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity and cash flows. Although the imposition of liability is premised on the assumption that utilities have the ability to recover these costs from their customers, there can be no guarantee that the CPUC would authorize cost recovery even if a court decision imposes liability under the doctrine of inverse condemnation. In November 2017, the CPUC denied recovery of costs that San Diego Gas & Electric Company stated it incurred as a result of the doctrine of inverse condemnation, holding that the inverse condemnation principles of strict liability are not relevant to the CPUC’s prudent manager standard. That determination is being challenged by San Diego Gas & Electric as well as by the Utility and Southern California Edison. PG&E Corporation and the Utility are also challenging the appropriateness of applying inverse condemnation to investor-owned utilities in the Butte Fire litigation and the Northern California wildfires litigation. In addition, the applicability of inverse condemnation could be impacted by actions of the California state legislature which addressed the 2017 wildfires through multiple committee hearings during the first quarter of 2018. On March 13, 2018, Governor Brown along with Democratic and Republican legislative leaders also issued a joint statement indicating an intent to partner on solutions to protect Californians from the threat of natural disasters and climate change, including an update to liability rules and regulations for utility services. (See Note 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1.)
|
|
•
|
The Success of the Utility's Community Wildfire Safety Program.
The Utility has developed a comprehensive community wildfire safety program in coordination with first responders, civic and community leaders, and customers to help reduce wildfire threats and improve safety as a result of climate-driven wildfires and extreme weather events. The community safety wildfire program focuses on three areas: bolstering wildfire prevention and emergency response; working with communities on new and enhanced safety measures; and, longer term, hardening the electric system and integrating new technologies to increase grid resilience.
|
|
•
|
The Tax Cut and Jobs Act.
On December 22, 2017, the U.S. government enacted expansive tax legislation commonly referred to as the Tax Act. Among other provisions, the Tax Act reduces the federal income tax rate from 35% to 21% beginning on January 1, 2018 and eliminates bonus depreciation for utilities. On March, 30, 2018, the Utility submitted PFMs of the CPUC's final decisions in the Utility's 2017 GRC, and the 2015 GT&S rate case. Additionally, the Utility submitted updated testimony in connection with the 2019 GT&S rate case. These submittals reflect the effects of the Tax Act on these rate cases. On May 14, 2018, the Utility will file a proposal to reflect the impact of the Tax Act on its TO tariff rates effective, March 1, 2018, in the resolution of the TO19 rate case. The Utility is unable to predict the timing and outcome of the CPUC's and FERC's decisions in connection with these submittals. (See Note 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1.)
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•
|
The Outcome of Enforcement, Litigation, and Regulatory Matters.
The Utility’s financial results may continue to be impacted by the outcome of current and future enforcement, litigation, and regulatory matters, including the impact of the Northern California wildfires, the Butte fire, the safety culture OII and any related fines, penalties, or other ratemaking tools that could be imposed by the CPUC, including as a result of phase two of the proceeding, the outcome of phase two of the ex parte OII, the potential recommendations that the third-party monitor (retained by the Utility in the first quarter of 2017 as part of its compliance with the sentencing terms of the Utility’s January 27, 2017 federal criminal conviction) may make, and potential penalties in connection with the Utility’s safety and other self-reports. (See Note 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1.)
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•
|
The Timing and Outcome of Ratemaking Proceedings
. The Utility’s financial results may be impacted by the timing and outcome of its 2019 GT&S rate case, FERC TO18 and TO19 rate cases, as well as the recent remand decision by the Ninth Circuit regarding an ROE incentive adder for transmission facilities, and the 2018 CEMA filing. The outcome of regulatory proceedings can be affected by many factors, including intervening parties’ testimonies, potential rate impacts, the Utility’s reputation, the regulatory and political environments, and other factors. (See “Regulatory Matters – 2019 Gas Transmission and Storage Rate Case” and “Regulatory Matters − FERC Transmission Owner Rate Cases”.)
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•
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The
Ability of the Utility to Control and Recover Operating
Costs and Capital Expenditures.
In any given year the Utility’s ability to earn its authorized rate of return depends on its ability to manage costs within the amounts authorized in rate case decisions. The Utility forecasts that in 2018 it will incur unrecovered pipeline-related expenses ranging from $35 million to $60 million which primarily relate to costs to identify and remove encroachments from transmission pipeline rights-of-way. Also, the CPUC decision in the Utility’s 2015 GT&S rate case established various cost caps that will increase the risk of overspend over the rate case cycle through 2018.
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•
|
The Amount and Timing of the Utility's Financing Needs.
PG&E Corporation’s and the Utility’s ability to access the capital markets, ability to borrow under its loan financing arrangements, and the terms and rates of future financings could be materially affected by the outcome of, or market perception of, the matters discussed in Note 9 of the Notes to the Condensed Consolidated Financial Statements, including liabilities, if any, incurred in relation to the Northern California wildfires, adverse effects on PG&E Corporation’s and the Utility’s ability to comply with consolidated debt to total capitalization ratio covenants in their financing arrangements and regulatory capital structure requirements, adverse changes in their respective credit ratings, general economic and market conditions, and other factors. PG&E Corporation contributes equity to the Utility as needed to maintain the Utility’s CPUC-authorized capital structure. For the three months ended March 31, 2018, PG&E Corporation issued $35 million of common stock and made no equity contributions to the Utility. PG&E Corporation may seek to issue additional equity to pay claims, losses, fines, and penalties that may be required by the outcome of litigation and enforcement matters. Additional issuances of equity, if any, could have a material dilutive impact on PG&E Corporation’s EPS.
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•
|
Changes in the Utility Industry.
The Utility is committed to delivering safe, reliable, sustainable, and affordable electric and gas services to its customers. Increasing demands from state laws and policies relating to increased renewable energy resources, the reduction of GHG emissions, the expansion of energy efficiency programs, the development and widespread deployment of distributed generation and self-generation resources, and the development of energy storage technologies have increased pressure on the Utility to achieve efficiencies in its operations while continuing to provide customers with safe, reliable, and affordable service. The utility industry is also undergoing transformative change driven by technological advancements enabling customer choice (for example, customer-owned generation and energy storage) and state climate policy supporting a decarbonized economy. California’s environmental policy objectives are accelerating the pace and scope of the industry change. The electric grid is a critical enabler of the adoption of new energy technologies that support California's climate change and GHG reduction objectives, which continue to be publicly supported by California policy makers notwithstanding a recent change in the federal approach to such matters. In order to enable the California clean energy economy, sustained investments are required in grid modernization, renewable integration projects, energy efficiency programs, energy storage options, EV infrastructure, and state infrastructure modernization (e.g. rail and water projects). In addition, these changes brought about by technological advancements and climate policy may cause a reduction in natural gas usage and increase natural gas costs. The combination of reduced natural gas load and increased costs could result in higher natural gas customer bills and potential cost recovery risk.
|
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Consolidated Total
|
$
|
442
|
|
|
$
|
576
|
|
|
PG&E Corporation
|
(7
|
)
|
|
10
|
|
||
|
Utility
|
$
|
449
|
|
|
$
|
566
|
|
|
|
Three Months Ended March 31, 2018
|
|
Three Months Ended March 31, 2017
|
||||||||||||||||||||
|
|
Revenues/Costs:
|
|
Revenues/Costs:
|
||||||||||||||||||||
|
(in millions)
|
That Impacted Earnings
|
|
That Did Not Impact Earnings
|
|
Total Utility
|
|
That Impacted Earnings
|
|
That Did Not Impact Earnings
|
|
Total Utility
|
||||||||||||
|
Electric operating revenues
|
$
|
1,937
|
|
|
$
|
1,014
|
|
|
$
|
2,951
|
|
|
$
|
1,982
|
|
|
$
|
1,085
|
|
|
$
|
3,067
|
|
|
Natural gas operating revenues
|
738
|
|
|
367
|
|
|
1,105
|
|
|
777
|
|
|
427
|
|
|
1,204
|
|
||||||
|
Total operating revenues
|
2,675
|
|
|
1,381
|
|
|
4,056
|
|
|
2,759
|
|
|
1,512
|
|
|
4,271
|
|
||||||
|
Cost of electricity
|
—
|
|
|
819
|
|
|
819
|
|
|
—
|
|
|
847
|
|
|
847
|
|
||||||
|
Cost of natural gas
|
—
|
|
|
289
|
|
|
289
|
|
|
—
|
|
|
325
|
|
|
325
|
|
||||||
|
Operating and maintenance
|
1,244
|
|
|
353
|
|
|
1,597
|
|
|
1,164
|
|
|
354
|
|
|
1,518
|
|
||||||
|
Depreciation, amortization, and decommissioning
|
752
|
|
|
—
|
|
|
752
|
|
|
712
|
|
|
—
|
|
|
712
|
|
||||||
|
Total operating expenses
|
1,996
|
|
|
1,461
|
|
|
3,457
|
|
|
1,876
|
|
|
1,526
|
|
|
3,402
|
|
||||||
|
Operating income
|
679
|
|
|
(80
|
)
|
|
599
|
|
|
883
|
|
|
(14
|
)
|
|
869
|
|
||||||
|
Interest income
|
9
|
|
|
—
|
|
|
9
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
|
Interest expense
|
(217
|
)
|
|
—
|
|
|
(217
|
)
|
|
(216
|
)
|
|
—
|
|
|
(216
|
)
|
||||||
|
Other income, net
|
29
|
|
|
80
|
|
|
109
|
|
|
17
|
|
|
14
|
|
|
31
|
|
||||||
|
Income before income taxes
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
$
|
689
|
|
|
$
|
—
|
|
|
$
|
689
|
|
|
Income tax provision
(1)
|
|
|
|
|
48
|
|
|
|
|
|
|
120
|
|
||||||||||
|
Net income
|
|
|
|
|
452
|
|
|
|
|
|
|
569
|
|
||||||||||
|
Preferred stock dividend requirement
(1)
|
|
|
|
|
3
|
|
|
|
|
|
|
3
|
|
||||||||||
|
Income Available for Common Stock
|
|
|
|
|
$
|
449
|
|
|
|
|
|
|
$
|
566
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended March 31,
|
||||
|
|
2018
|
|
2017
|
||
|
Federal statutory income tax rate
|
21.0
|
%
|
|
35.0
|
%
|
|
Increase (decrease) in income tax rate resulting from:
|
|
|
|
||
|
State income tax (net of federal benefit)
(1)
|
2.3
|
%
|
|
1.8
|
%
|
|
Effect of regulatory treatment of fixed asset differences
(2)
|
(16.5
|
)%
|
|
(13.1
|
)%
|
|
Tax credits
|
(0.6
|
)%
|
|
(0.4
|
)%
|
|
Other, net
(3)
|
3.4
|
%
|
|
(5.9
|
)%
|
|
Effective tax rate
|
9.6
|
%
|
|
17.4
|
%
|
|
|
|
|
|
||
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Cost of purchased power
|
$
|
753
|
|
|
$
|
784
|
|
|
Fuel used in own generation facilities
|
66
|
|
|
63
|
|
||
|
Total cost of electricity
|
$
|
819
|
|
|
$
|
847
|
|
|
Average cost of purchased power per kWh
(1)
|
$
|
0.123
|
|
|
$
|
0.108
|
|
|
Total purchased power (in millions of kWh)
(2)
|
6,110
|
|
|
7,291
|
|
||
|
|
|
|
|
||||
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Cost of natural gas sold
|
$
|
257
|
|
|
$
|
293
|
|
|
Transportation cost of natural gas sold
|
32
|
|
|
32
|
|
||
|
Total cost of natural gas
|
$
|
289
|
|
|
$
|
325
|
|
|
Average cost per Mcf
(1)
of natural gas sold
|
$
|
3.03
|
|
|
$
|
3.15
|
|
|
Total natural gas sold (in millions of Mcf)
|
85
|
|
|
93
|
|
||
|
|
|
|
|
||||
|
|
Three Months Ended March 31,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Net cash provided by operating activities
|
$
|
1,516
|
|
|
$
|
1,598
|
|
|
Net cash used in investing activities
|
(1,475
|
)
|
|
(1,235
|
)
|
||
|
Net cash used in financing activities
|
(366
|
)
|
|
(374
|
)
|
||
|
Net change in cash and cash equivalents
|
$
|
(325
|
)
|
|
$
|
(11
|
)
|
|
•
|
the timing and amount of costs in connection with the Northern California wildfires, as well as potential liabilities in connection with third-party claims and fines or penalties that could be imposed on the Utility if the CPUC or any other law enforcement agency brought an enforcement action and determined that the Utility failed to comply with applicable laws and regulations;
|
|
•
|
the timing and amounts of costs, including fines and penalties, that may be incurred in connection with the current and future enforcement, litigation, and regulatory matters, including the impact of the Butte fire and the timing and amount of related insurance recoveries, the safety culture OII, including other ratemaking tools that could be imposed by the CPUC as a result of phase two of the proceeding, the outcome of phase two of the ex parte OII, costs associated with potential recommendations that the third-party monitor may make related to the Utility’s conviction in the federal criminal trial, and potential penalties in connection with the Utility’s safety and other self-reports;
|
|
•
|
the Tax Act, which is expected to accelerate the timing of federal tax payments and reduce revenue requirements, resulting in lower operating cash flows (see "Overview" above and "Regulatory Matters" below for more information);
|
|
•
|
the timing and outcomes of the 2019 GT&S rate case, FERC TO18 and TO19 rate cases, 2018 CEMA filing, and other ratemaking and regulatory proceedings; and
|
|
•
|
the timing of the resolution of the Chapter 11 disputed claims and the amount of principal and interest on these claims that the Utility will be required to pay.
|
|
•
|
deferred consideration of replacement resources to the CPUC’s Integrated Resource Planning proceeding;
|
|
•
|
authorized rate recovery for up to $211.3 million (compared with the $352.1 million requested by the Utility) for an employee retention program;
|
|
•
|
authorized rate recovery for an employee retraining program of $11.3 million requested by the Utility;
|
|
•
|
rejected rate recovery of the proposed $85 million for the community impacts mitigation program on the ground that rate recovery for such a program requires legislative authorization;
|
|
•
|
authorized rate recovery of $18.6 million of the total Diablo Canyon license renewal cost of $53 million and rate recovery of cancelled project costs equal to 100% of direct costs incurred prior to June 30, 2016, and 25% of direct costs incurred after June 30, 2016, based on a settlement agreement among the Utility, the Joint Parties, and certain other parties that the Utility filed with the CPUC in May 2017; and
|
|
•
|
approved the amortization of the book value for Diablo Canyon consistent with the Diablo Canyon closure schedule.
|
|
•
|
require the CPUC to approve the community impact mitigation settlement of $85 million, originally proposed in the joint settlement agreement;
|
|
•
|
direct the CPUC to manage its Integrated Resource Planning to ensure that there is no increase in GHG emissions as a result of the Diablo Canyon retirement; and
|
|
•
|
require the CPUC to approve full funding of the $352.1 million Diablo Canyon employee retention program, originally proposed in the joint settlement agreement.
|
|
•
|
the impact of the Northern California wildfires, including whether the Utility will be able to recover costs for service restoration and repair to the Utility's facilities through CEMA ; the timing and outcome of the wildfire investigations, including into the causes of the wildfires; whether the Utility may have liability associated with these fires; if liable for one or more fires, whether the Utility would be able to recover all or part of such costs through insurance or through regulatory mechanisms, to the extent insurance is not available or exhausted; and potential liabilities in connection with fines or penalties that could be imposed on the Utility if the CPUC or any other law enforcement agency brought an enforcement action and determined that the Utility failed to comply with applicable laws and regulations;
|
|
•
|
the timing and outcome of the Butte fire litigation, the timing and outcome of any proceeding to recover from customers restoration and repair costs and costs in excess of insurance, if any; the effect, if any, that the SED’s $8.3 million citations issued in connection with the Butte fire may have on the Butte fire litigation; and whether additional investigations and proceedings in connection with the Butte fire will be opened and any additional fines or penalties imposed on the Utility;
|
|
•
|
whether the CPUC approves the Utility’s application to establish a WEMA to track wildfire expenses and to preserve the opportunity for the Utility to request recovery of wildfire costs in excess of insurance at a future date, and the outcome of any potential request to recover such costs;
|
|
•
|
the impact of the Tax Act, and the timing and outcome of CPUC decision(s) related to the Utility’s March 30, 2018 submissions in connection with the impact of the Tax Act on the Utility’s rate cases and its implementation plan;
|
|
•
|
the timing and outcomes of the 2019 GT&S rate case, TO18 and TO19 rate cases, 2018 CEMA, and other ratemaking and regulatory proceedings;
|
|
•
|
the cost of the Utility's community wildfire safety program, and the timing and outcome of any proceeding to recover such costs through rates;
|
|
•
|
the outcome of the probation and the monitorship imposed by the federal court after the Utility’s conviction in the federal criminal trial in 2017, the timing and outcomes of the debarment proceeding, the SED’s unresolved enforcement matters relating to the Utility’s compliance with natural gas-related laws and regulations, and other investigations that have been or may be commenced relating to the Utility’s compliance with natural gas- and electric- related laws and regulations, ex parte communications, and the ultimate amount of fines, penalties, and remedial costs that the Utility may incur in connection with the outcomes;
|
|
•
|
the timing and outcomes of investigations by the U.S. Attorney’s Office in San Francisco and the California Attorney General’s office related to communications between the Utility’s personnel and CPUC officials, whether additional criminal or regulatory investigations or enforcement actions are commenced with respect to allegedly improper communications, and the extent to which such matters negatively affect the final decisions to be issued in the Utility’s ratemaking proceedings;
|
|
•
|
the effects on PG&E Corporation and the Utility’s reputations caused by the Utility’s conviction in the federal criminal trial in 2017, the CPUC's investigations of natural gas incidents, and the Northern California wildfires, improper communications between the CPUC and the Utility, and the Utility’s ongoing work to remove encroachments from transmission pipeline rights-of-way;
|
|
•
|
whether the Utility can control its costs within the authorized levels of spending, and timely recover its costs through rates; whether the Utility can continue implementing a streamlined organizational structure and achieve project savings, the extent to which the Utility incurs unrecoverable costs that are higher than the forecasts of such costs; and changes in cost forecasts or the scope and timing of planned work resulting from changes in customer demand for electricity and natural gas or other reasons;
|
|
•
|
whether the Utility and its third-party vendors and contractors are able to protect the Utility’s operational networks and information technology systems from cyber- and physical attacks, or other internal or external hazards;
|
|
•
|
the timing and outcome of the complaint filed by the CPUC and certain other parties with the FERC on February 2, 2017, that requests that the Utility provide an open and transparent planning process for its capital transmission projects that do not go through the CAISO’s Transmission Planning Process to allow for greater participation and input from interested parties; and the timing and ultimate outcome of the Ninth Circuit Court of Appeals decision on January 8, 2018, to reverse FERC’s decision granting PG&E a 50 basis point ROE incentive adder for continued participation in the CAISO and remanding the case to FERC for further proceedings;
|
|
•
|
the amount and timing of additional common stock and debt issuances by PG&E Corporation, including the dilutive impact of common stock issuances to fund PG&E Corporation’s equity contributions to the Utility as the Utility incurs charges and costs, including fines, that it cannot recover through rates;
|
|
•
|
the outcome of the safety culture OII, including its phase two proceeding opened on May 8, 2017, and future legislative or regulatory actions that may be taken, such as requiring the Utility to separate its electric and natural gas businesses, or restructure into separate entities, or undertake some other corporate restructuring, or implement corporate governance changes;
|
|
•
|
the outcome of current and future self-reports, investigations, or other enforcement proceedings that could be commenced or notices of violation that could be issued relating to the Utility’s compliance with laws, rules, regulations, or orders applicable to its operations, including the construction, expansion, or replacement of its electric and gas facilities, electric grid reliability, inspection and maintenance practices, customer billing and privacy, physical and cybersecurity, environmental laws and regulations; and the outcome of existing and future SED notices of violations;
|
|
•
|
the impact of comments and CPUC action in connection with the Utility’s SmartMeter™ Upgrade cost-benefit analysis;
|
|
•
|
the impact of environmental remediation laws, regulations, and orders; the ultimate amount of costs incurred to discharge the Utility’s known and unknown remediation obligations; and the extent to which the Utility is able to recover environmental costs in rates or from other sources;
|
|
•
|
the impact of California Governor Jerry Brown's executive order issued on January 26, 2018, to implement a new target of five million zero-emission vehicles on the road in California by 2030;
|
|
•
|
the ultimate amount of unrecoverable environmental costs the Utility incurs associated with the Utility’s natural gas compressor station site located near Hinkley, California and the Utility's fossil fuel-fired generation sites;
|
|
•
|
the impact of new legislation or NRC regulations, recommendations, policies, decisions, or orders relating to the nuclear industry, including operations, seismic design, security, safety, relicensing, the storage of spent nuclear fuel, decommissioning, cooling water intake, or other issues; the impact of potential actions, such as legislation, taken by state agencies that may affect the Utility’s ability to continue operating Diablo Canyon until its planned retirement; and whether the Utility will be able to successfully implement its retention and retraining and development programs for Diablo Canyon employees as a result of its planned retirement by 2024 and 2025;
|
|
•
|
the impact of wildfires, droughts, floods, or other weather-related conditions or events, climate change, natural disasters, acts of terrorism, war, vandalism (including cyber-attacks), downed power lines, and other events, that can cause unplanned outages, reduce generating output, disrupt the Utility’s service to customers, or damage or disrupt the facilities, operations, or information technology and systems owned by the Utility, its customers, or third parties on which the Utility relies, and the reparation and other costs that the Utility may incur in connection with such conditions or events; the impact of the adequacy of the Utility’s emergency preparedness; whether the Utility incurs liability to third parties for property damage or personal injury caused by such events; whether the Utility is subject to civil, criminal, or regulatory penalties in connection with such events; and whether the Utility’s insurance coverage is available for these types of claims and sufficient to cover the Utility’s liability;
|
|
•
|
the outcome of state initiatives and numerous bills introduced by state legislators to address climate resilience and augment disaster planning in response to the wildfires in California, that if passed, could affect the Utility’s cost recovery mechanisms, operational requirements, and resiliency plans for certain catastrophic events;
|
|
•
|
the breakdown or failure of equipment that can cause damages, including fires, and unplanned outages; and whether the Utility will be subject to investigations, penalties, and other costs in connection with such events;
|
|
•
|
how the CPUC and the California Air Resources Board implement state environmental laws relating to GHG, renewable energy targets, energy efficiency standards, DERs, EVs, and similar matters, including whether the Utility is able to continue recovering associated compliance costs, such as the cost of emission allowances and offsets under cap-and-trade regulations; and whether the Utility is able to timely recover its associated investment costs;
|
|
•
|
whether the Utility’s climate change adaptation strategies are successful;
|
|
•
|
the impact that reductions in customer demand for electricity and natural gas have on the Utility’s ability to make and recover its investments through rates and earn its authorized return on equity, and whether the Utility is successful in addressing the impact of growing distributed and renewable generation resources, changing customer demand for natural gas and electric services, and an increasing number of customers departing the Utility’s procurement service for CCAs;
|
|
•
|
the supply and price of electricity, natural gas, and nuclear fuel; the extent to which the Utility can manage and respond to the volatility of energy commodity 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;
|
|
•
|
whether, as a result of Westinghouse’s Chapter 11 proceeding and its bankruptcy court approved plan of reorganization, the Utility will experience issues with nuclear fuel supply, nuclear fuel inventory, and related services and products that Westinghouse supplies, and whether the implementation of the plan or reorganization will affect the Utility’s contracts with Westinghouse;
|
|
•
|
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;
|
|
•
|
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;
|
|
•
|
changes in credit ratings which could, among other things, result in higher borrowing costs and fewer financing options, especially if PG&E Corporation or the Utility were to lose their investment grade credit ratings;
|
|
•
|
the impact of 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 uncertainty in connection with the Northern California wildfires, the ultimate outcomes of the CPUC’s pending investigations, and other enforcement matters will impact the Utility’s ability to make distributions to PG&E Corporation, and whether they will continue impacting PG&E Corporation's and the Utility's ability to pay dividends;
|
|
•
|
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;
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•
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changes in the regulatory and economic environment, including potential changes affecting renewable energy sources and associated tax credits, as a result of the current federal administration; and
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•
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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.
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3.1
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10.1
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10.2
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*10.3
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*10.4
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*10.5
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*10.6
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*10.7
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*10.8
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12.1
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12.2
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12.3
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31.1
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31.2
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**32.1
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**32.2
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
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101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
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101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
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101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
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PG&E CORPORATION
|
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/s/ JASON P. WELLS
|
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Jason P. Wells
Senior Vice President and Chief Financial Officer
(duly authorized officer and principal financial officer)
|
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PACIFIC GAS AND ELECTRIC COMPANY
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/s/ DAVID S. THOMASON
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David S. Thomason
Vice President, Chief Financial Officer and Controller
(duly authorized officer and principal financial officer) |
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
Customers
| Customer name | Ticker |
|---|---|
| Exelon Corporation | EXC |
| The Williams Companies, Inc. | WMB |
| WEC Energy Group, Inc. | WEC |
| Xcel Energy Inc. | XEL |
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|