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)
Preferred stock $ 258
Holders of the Utility’s nonredeemable preferred stock have rights to annual dividends ranging from $1.25 to $1.50 per share.
The Utility’s redeemable preferred stock is subject to redemption at the Utility’s option, in whole or in part, if the Utility pays the
specified redemption price plus accumulated and unpaid dividends through the redemption date. At December 31, 2010, annual
dividends on redeemable preferred stock ranged from $1.09 to $1.25 per share.
Dividends on all Utility preferred stock are cumulative. All shares of preferred stock have voting rights and an equal
preference in dividend and liquidation rights. Upon liquidation or dissolution of the Utility, holders of preferred stock would be
entitled to the par value of such shares plus all accumulated and unpaid dividends, as specified for the class and series. During each of
2010, 2009, and 2008, the Utility paid $14 million of dividends on preferred stock. On December 15, 2010, the Board of Directors of
the Utility declared a cash dividend on its outstanding series of preferred stock totaling $4 million that was paid on February 15, 2011
to preferred shareholders of record on January 31, 2011. On February 16, 2011, the Board of Directors of the Utility declared a cash
dividend on its outstanding series of preferred stock, payable on May 15, 2011, to shareholders of record on April 29, 2011.
NOTE 8: EARNINGS PER SHARE
PG&E Corporation’s earnings per common share (“EPS”) is calculated utilizing the “two-class” method by dividing the sum
of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average
number of common shares outstanding during the period. In applying the two-class method, undistributed earnings are allocated to
both common shares and participating securities. PG&E Corporation’s Convertible Subordinated Notes met the criteria of
participating securities as the holders were entitled to receive dividends similar to holders of common stock.
As of June 29, 2010, all of PG&E Corporation’s Convertible Subordinated Notes had been converted into common stock.
Therefore, there were no participating securities outstanding at December 31, 2010. (See Note 4 above.)
The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average
shares of common stock outstanding for calculating basic EPS:
Year Ended December 31,
(in millions, except per share amounts) 2010 2009 2008
Basic
Income available for common shareholders $ 1,099 $ 1,220 $ 1,338
Less: distributed earnings to common shareholders 706 621 560
Undistributed earnings 393 599 778
Less: undistributed earnings from discontinued operations - - 154
Undistributed earnings from continuing operations $ 393 $ 599 $ 624
Allocation of undistributed earnings to common
shareholders
Distributed earnings to common shareholders $ 706 $ 621 $ 560
Undistributed earnings allocated to common shareholders –
continuing operations 385 573 592
Undistributed earnings allocated to common shareholders –
discontinued operations - - 146
Total common shareholders earnings $ 1,091 $ 1,194 $ 1,298
Weighted average common shares outstanding, basic 382 368 357
Convertible subordinated notes 8 17 19
Weighted average common shares outstanding and
participating securities 390 385 376
Net earnings per common share, basic
FERC FORM NO. 1 (ED. 12-88) Page 123.23