PG&E 2012 Annual Report Download - page 15

The following presents the Utility’s operating results for 2012, 2011, and 2010.
Electric Operating Revenues
The Utility’s electric operating revenues consist of amounts charged to customers for electricity generation,
transmission and distribution services, as well as amounts charged to customers to recover the cost of electricity
procurement and the cost of public purpose, energy efficiency, and demand response programs.
The following table provides a summary of the Utility’s total electric operating revenues:
2012 2011 2010
(in millions)
Revenues excluding passed-through costs ......... $ 6,280 $ 6,150 $ 5,473
Revenues for recovery of passed-through costs ..... 5,734 5,451 5,171
Total electric operating revenues ............... $ 12,014 $ 11,601 $ 10,644
The Utility’s total electric operating revenues, including revenues intended to recover costs that are passed
through to customers, increased by $413 million, or 4%, in 2012 compared to 2011. Revenues intended to recover
costs that are passed through to customers and do not impact net income increased by $283 million, primarily due to
an increase in the cost of electricity (See ‘‘Cost of Electricity’’ below), the cost of public purpose programs, and
pension contributions. Electric operating revenues, excluding revenues intended to recover costs that are passed
through to customers, increased by $130 million, primarily due to an increase in base revenues as authorized in the
2011 GRC and in the TO rate case.
The Utility’s total electric operating revenues, including revenues intended to recover costs that are passed
through to customers, increased by $957 million, or 9%, in 2011 compared to 2010. Revenues intended to recover
costs that are passed through to customers and do not impact net income increased by $280 million, primarily due to
increases in the cost of electricity (see ‘‘Cost of Electricity’’ below), the cost of public purpose programs, and pension
contributions. Electric operating revenues, excluding revenues intended to recover costs that are passed through to
customers, increased by $677 million. The increase is primarily due to additional base revenues that were authorized
by the CPUC in the 2011 GRC and for various separately funded projects, and authorized by the FERC in the TO
rate case that became effective March 1, 2011.
The Utility’s future electric operating revenues, excluding revenues intended to recover costs that are passed
through to customers, are expected to increase in 2013 as authorized by the CPUC in the 2011 GRC. This increase
to future revenues will be offset by the lower revenues authorized by the CPUC in the 2013 Cost of Capital
proceeding. (See ‘‘Regulatory Matters’’ below.) Additionally, the Utility’s future electric operating revenues are
expected to be impacted by revenues authorized by the FERC in the TO rate case (these increased revenues are
expected to become effective on May 1, 2013) and by the CPUC in the 2014 GRC, which was filed on November 14,
2012. Future electric operating revenues will also be impacted by the cost of electricity and other revenues intended
to recover costs that are passed through to customers.
Cost of Electricity
The Utility’s cost of electricity includes the costs of power purchased from third parties, transmission, fuel used
in its own generation facilities, fuel supplied to other facilities under power purchase agreements, and realized gains
and losses on price risk management activities. (See Note 10 of the Notes to the Consolidated Financial Statements.)
The Utility’s cost of electricity is passed through to customers. The Utility’s cost of electricity excludes non-fuel costs
associated with operating the Utility’s own generation facilities and electric transmission and distribution system,
which are included in operating and maintenance expense in the Consolidated Statements of Income.
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