Pacific Gas & Electric (PCG)

Nuclear Fuel Agreements

The Utility has purchase agreements for nuclear fuel. These agreements have terms ranging from two to eight years and are intended to ensure long-term fuel supply. Deliveries under 9 of the 11 contracts in place at the end of 2003 were completed by 2004. New contracts for deliveries in 2005 to 2012 are under negotiation. In most cases, the Utility’s nuclear fuel contracts are requirements-based. The Utility relies on large, well-established international producers of nuclear fuel in order to diversify its sources and provide security of supply. Pricing terms also are diversified, ranging from fixed prices to market-based prices to base prices that are escalated using published indices.

At December 31, 2004, the undiscounted obligations under nuclear fuel agreements were as follows:

Payments for nuclear fuel amounted to approximately $119 million in 2004, $57 million in 2003 and $70 million in 2002.

Nuclear Fuel Agreements

        The Utility has purchase agreements for nuclear fuel. These agreements have terms ranging from two to eight years and are intended to ensure long-term fuel supply. Deliveries under 9 of the 11 contracts in place at the end of 2003 were completed by 2004. New contracts for deliveries in 2005 to 2012 are under negotiation. In most cases, the Utility's nuclear fuel contracts are requirements-based. The Utility relies on large, well-established international producers of nuclear fuel in order to diversify its sources and provide security of supply. Pricing terms also are diversified, ranging from fixed prices to market-based prices to base prices that are escalated using published indices.

        At December 31, 2004, the undiscounted obligations under nuclear fuel agreements were as follows:

        Payments for nuclear fuel amounted to approximately $119 million in 2004, $57 million in 2003 and $70 million in 2002.