PG&E Corp. will make a $249.7 million net pension contribution in 2006 as part of a proposed settlement awaiting approval by the California Public Utilities Commission. Like other costs, pension contributions are reviewed as part of the utility's rate-setting process.
Under the proposal, PG&E also will make net contributions of $153.4 million each year for 2007 through 2009. Those additional contributions will be approved annually, said Claudia Mendoza, a PG&E spokeswoman. The contributions should make the fund fully funded on Jan. 1, 2010, on a projected basis, according to a document filed by PG&E with the utilities commission. The fund, which had $7.8 billion in assets as of Sept, 30, 2005, was 98.6% funded as of Jan. 1, 2005.
The fund's assumed rate of return was increased to 7.5% from 7% as part of the proposed settlement.