PG&E 2012 Annual Report Download - page 26

PG&E Corporation
As of December 31, 2012, PG&E Corporation’s affiliates had entered into four tax equity agreements with two
privately held companies to fund residential and commercial retail solar energy installations. Under these
agreements, PG&E Corporation has agreed to provide lease payments and investment contributions of up to
$396 million to these companies in exchange for the right to receive benefits from local rebates, federal grants, and a
share of the customer payments made to these companies. PG&E Corporation’s financial exposure from these
arrangements is generally limited to its lease payments and investment contributions to these companies. As of
December 31, 2012, PG&E Corporation had made total payments of $361 million under these tax equity agreements
and received $228 million in benefits and customer payments. Lease payments, investment contributions, benefits,
and customer payments received are included in cash flows from operating and investing activities within the
Consolidated Statements of Cash Flows.
In addition to the investments above, PG&E Corporation had the following material cash flows on a stand-alone
basis for the years ended December 31, 2012, 2011, and 2010: dividend payments, common stock issuances,
borrowings and repayments under the revolving credit facility in 2012 and 2011, and transactions between PG&E
Corporation and the Utility.
CONTRACTUAL COMMITMENTS
The following table provides information about PG&E Corporation’s and the Utility’s contractual commitments
at December 31, 2012:
Payment due by period
Less Than More Than
1 Year 1 - 3 Years 3 - 5 Years 5 Years Total
(in millions)
Contractual Commitments:
Utility
Long-term debt(1):
Fixed rate obligations ............. $ 1,035 $ 2,148 $ 1,824 $ 17,305 $ 22,312
Variable rate obligations ........... 2 8 941 153 1,104
Purchase obligations(2):
Power purchase agreements:
Qualifying facilities (‘‘QF’’)....... 892 1,641 1,108 2,238 5,879
Renewable Energy (other than QF) . 1,356 3,881 4,107 30,958 40,302
Other power purchase agreements . . 846 1,326 1,223 3,322 6,717
Natural gas supply, transportation, and
storage ..................... 707 400 260 865 2,232
Nuclear fuel agreements ........... 113 322 295 878 1,608
Pension and other benefits(3) ......... 455 796 796 398
(6) 2,445
Capital lease obligations(4) ........... 35 51 40 20 146
Operating leases(4) ................. 42 69 55 206 372
Preferred dividends(5) .............. 14 28 28 — 70
PG&E Corporation
Long-term debt(1):
Fixed rate obligations ............. 20 355 ——375
(1) Includes interest payments over the terms of the debt. Interest is calculated using the applicable interest rate at December 31, 2012 and
outstanding principal for each instrument with the terms ending at each instrument’s maturity. Variable rate obligations consist of pollution
control bonds, due in 2016 and 2026 and related loans and are backed by letters of credit that expire on May 31, 2016. (See Note 4 of the
Notes to the Consolidated Financial Statements.)
(2) This table includes power purchase agreements that have been approved by the CPUC and have completed major milestones for
construction. (See Note 15 of the Notes to the Consolidated Financial Statements.
(3) PG&E Corporation’s and the Utility’s funding policy is to contribute tax-deductible amounts, consistent with applicable regulatory decisions
and federal minimum funding requirements. (See Note 12 of the Notes to the Consolidated Financial Statements.)
(4) See Note 15 of the Notes to the Consolidated Financial Statements.
(5) Based on historical performance, it is assumed for purposes of the table above that dividends are payable within a fixed period of five years.
(6) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue
indefinitely into the future, the amount reflected represents only 1 year of contributions for the Utility’s pension and other benefit plans.
The contractual commitments table above excludes potential commitments associated with the conversion of
existing overhead electric facilities to underground electric facilities. At December 31, 2012, the Utility was
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