PG&E 2012 Annual Report Download - page 22

2012 Financings
Utility
The following table summarizes long-term debt issuances in 2012:
Issue Date Amount
(in millions)
Senior Notes
4.45%, due 2042 .................................... April 16 $ 400
2.45%, due 2022 .................................... August 16 400
3.75%, due 2042 .................................... August 16 350
Total debt issuances in 2012 ............................. $ 1,150
The net proceeds from the issuance of Utility senior notes in 2012 were used to repay a portion of outstanding
commercial paper, and for general corporate purposes.
The Utility also received cash contributions of $885 million from PG&E Corporation during 2012 to ensure that
the Utility had adequate capital to maintain the 52% common equity ratio authorized by the CPUC.
PG&E Corporation
In November 2011, PG&E Corporation entered into an Equity Distribution Agreement providing for the sale of
PG&E Corporation common stock having an aggregate gross offering price of up to $400 million. Sales of the shares
are made by means of ordinary brokers’ transactions on the New York Stock Exchange, or in such other transactions
as agreed upon by PG&E Corporation and the sales agents and in conformance with applicable securities laws. For
2012, PG&E Corporation sold 5,446,760 shares of its common stock under the Equity Distribution Agreement for
cash proceeds of $234 million, net of fees and commissions paid of $2 million. The proceeds from these sales were
used for general corporate purposes, including the infusion of equity into the Utility. As of December 31, 2012,
PG&E Corporation had the ability to issue an additional $64 million of its common stock under the November
Equity Distribution Agreement.
In March 2012, PG&E Corporation sold 5,900,000 shares of its common stock in an underwritten public offering
for cash proceeds of $254 million, net of fees and commissions. In addition, during 2012, PG&E Corporation issued
6,803,101 shares of common stock under its 401(k) plan, its Dividend Reinvestment and Stock Purchase Plan, and its
share-based compensation plans, generating $263 million of cash.
Future Financing Needs
The amount and timing of the Utility’s future debt financings and equity needs will depend on various factors,
including:
• the amount of cash internally generated through normal business operations;
• the timing and amount of forecasted capital expenditures;
• the timing and amount of payments made to third parties in connection with the San Bruno accident, and the
timing and amount of related insurance recoveries (see ‘‘Natural Gas Matters’’ below);
• the timing and amount of penalties imposed on the Utility in connection with the pending investigations and
other potential enforcement matters related to the San Bruno accident and the Utility’s natural gas operations
(see ‘‘Natural Gas Matters’’ below);
• the timing and amount of pipeline-related expenses and other expenses to improve the safety and reliability of
the Utility’s electric and natural gas operations that are not recoverable through rates (see ‘‘Operating and
Maintenance’’ above);
• the timing of the resolution of the Chapter 11 disputed claims and the amount of interest on these claims that
the Utility will be required to pay (see Note 13 of the Notes to the Consolidated Financial Statements);
• the amount of future tax payments; and
• the conditions in the capital markets, and other factors.
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