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)
Net operating loss carry forward 327 - 270 -
Other 207 184 178 180
Total deferred income tax assets $ 1,343 $ 887 $ 1,217 $ 849
Deferred income tax liabilities:
Regulatory balancing accounts $ 1,116 $ 1,340 $ 1,116 $ 1,340
Property related basis differences 5,236 4,036 5,234 4,032
Income tax regulatory asset 509 418 509 418
Other 142 157 135 157
Total deferred income tax liabilities $ 7,003 $ 5,951 $ 6,994 $ 5,947
Total net deferred income tax liabilities $ 5,660 $ 5,064 $ 5,777 $ 5,098
Classification of net deferred income tax liabilities:
Included in current liabilities $ 113 $ 332 $ 118 $ 334
Included in noncurrent liabilities 5,547 4,732 5,659 4,764
Total net deferred income tax liabilities $ 5,660 $ 5,064 $ 5,777 $ 5,098
The differences between income taxes and amounts calculated by applying the federal statutory rate to income before income
tax expense for continuing operations were as follows:
PG&E Corporation
Utility
Year Ended December 31,
2010 2009 2008 2010 2009 2008
Federal statutory income tax rate 35.0 % 35.0 % 35.0 % 35.0 % 35.0 % 35.0 %
Increase (decrease) in income
tax rate resulting from:
State income tax (net of
federal benefit) 0.7 1.6 3.1 1.0 1.4 3.3
Effect of regulatory treatment
of fixed asset differences (3.1) (2.7) (3.2) (3.0) (2.6) (3.1)
Tax credits (0.4) (0.5) (0.5) (0.4) (0.5) (0.5)
IRS audit settlements 0.1 (4.5) (7.1) (0.2) (4.2) (4.1)
Other, net 0.9 (1.5) (0.9) 1.5 (1.3) (1.7)
Effective tax rate 33.2 % 27.4 % 26.4 % 33.9 % 27.8 % 28.9 %
Unrecognized tax benefits
The following table reconciles the changes in unrecognized tax benefits:
PG&E Corporation
Utility
2010 2009 2008 2010 2009 2008
(in millions)
Balance at beginning of year $ 673 $ 75 $ 209 $ 652 $ 37 $ 94
Additions for tax position
taken during a prior year 27 4 - 27 4 -
Additions for tax position
taken during the current year 89 624 43 87 623 20
Settlements (55) (27) (177) (54) (12) (77)
Reductions for tax position
taken during a prior year (20) (3) - - - -
FERC FORM NO. 1 (ED. 12-88) Page 123.26