2010 FERC Form 1 - Pacific Gas and Electric Company

Name of Respondent
PACIFIC GAS AND ELECTRIC COMPANY
This Report is:
(1) X An Original
(2) A Resubmission
Date of Report
(Mo, Da, Yr)
04/08/2011
Year/Period of Report
2010/Q4
NOTES TO FINANCIAL STATEMENTS (Continued)
and 2009, respectively. The amortization expense related to this loss was $23 million in 2010, $25 million in 2009, and $26 million in
2008. Deferred gains and losses on debt extinguishments are recorded to other and other noncurrent assets – regulatory assets in the
Consolidated Balance Sheets.
Gains and losses on debt extinguishments associated with unregulated operations are fully recognized at the time such debt is
reacquired and are reported as a component of interest expense.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) reports a measure for accumulated changes in equity of an enterprise that
result from transactions and other economic events, other than transactions with shareholders. The following table sets forth the
after-tax changes in each component of accumulated other comprehensive income (loss):
Employee Benefit Plans – Accumulated Other Comprehensive
Income (Loss)
(in millions) 2010 2009 2008
Balance at beginning of year $ (160) $ (221) $ 10
Period change in pension benefits and
other benefits:
Unrecognized prior service cost (1) (29) (1) 37
Unrecognized net gain (loss) (2) (110) 363 (1,583)
Unrecognized net transition
obligation (3) 15 15 15
Transfer to regulatory account (4)
(5) 82 (316) 1,300
Balance at end of year $ (202) $ (160) $ (221)
(1) Net of income tax benefit (expense) of $20 million, $1 million, $(27) million for December 31, 2010, 2009, and 2008,
respectively.
(2) Net of income tax benefit (expense) of $73 million, $(216) million, $1,088 million for December 31, 2010, 2009, and 2008,
respectively.
(3) Net of income tax benefit (expense) of $(11) million for December 31, 2010, 2009, and 2008.
(4) Net of income tax benefit (expense) of $(57) million, $218 million, $(894) million for December 31, 2010, 2009, and 2008,
respectively.
(5) Amounts transferred to the pension regulatory asset are probable of recovery from customers in future rates.
There was no material difference between PG&E Corporation’s and the Utility’s accumulated other comprehensive income
(loss) for the periods presented above.
Revenue Recognition
The Utility recognizes revenues after persuasive evidence of an arrangement exists, delivery has occurred, or services have
been rendered; the price to the customer is fixed or determinable and collectability is reasonably assured. Revenues meet these criteria
as the electricity and natural gas services are delivered, and include amounts for services rendered but not yet billed at the end of the
period.
The Utility recognizes revenues after the CPUC or the FERC has authorized rate recovery, amounts are objectively
determinable and probable of recovery, and amounts will be collected within 24 months. (See Note 3 below.)
The CPUC authorizes most of the Utility’s revenue requirements in its general rate case (“GRC”), which generally occurs
FERC FORM NO. 1 (ED. 12-88) Page 123.6