Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 20, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-12609 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-3234914 | |
Entity Address, Address Line One | 77 Beale Street | |
Entity Address, Address Line Two | P.O. Box 770000 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94177 | |
City Area Code | 415 | |
Local Phone Number | 973-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding (in shares) | 2,465,443,675 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | PG&E CORP | |
Entity Central Index Key | 0001004980 | |
Current Fiscal Year End Date | --12-31 | |
Pacific Gas & Electric Co (Utility) | ||
Entity File Number | 1-2348 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-0742640 | |
Entity Address, Address Line One | 77 Beale Street | |
Entity Address, Address Line Two | P.O. Box 770000 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94177 | |
City Area Code | 415 | |
Local Phone Number | 973-7000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding (in shares) | 264,374,809 | |
Amendment Flag | false | |
Entity Registrant Name | PACIFIC GAS & ELECTRIC CO | |
Entity Central Index Key | 0000075488 | |
The New York Stock Exchange | Common stock, no par value | ||
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | PCG | |
Security Exchange Name | NYSE | |
The New York Stock Exchange | Equity Units | ||
Title of 12(b) Security | Equity Units | |
Trading Symbol | PCGU | |
Security Exchange Name | NYSE | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5% series A redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5% series A redeemable | |
Trading Symbol | PCG-PE | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5% redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5% redeemable | |
Trading Symbol | PCG-PD | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 4.80% redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 4.80% redeemable | |
Trading Symbol | PCG-PG | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 4.50% redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 4.50% redeemable | |
Trading Symbol | PCG-PH | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 4.36% series A redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 4.36% series A redeemable | |
Trading Symbol | PCG-PI | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 6% nonredeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 6% nonredeemable | |
Trading Symbol | PCG-PA | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5.50% nonredeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5.50% nonredeemable | |
Trading Symbol | PCG-PB | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5% nonredeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5% nonredeemable | |
Trading Symbol | PCG-PC | |
Security Exchange Name | NYSEAMER |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Revenues | ||||
Total operating revenues | $ 5,394 | $ 5,465 | $ 16,310 | $ 15,396 |
Operating Expenses | ||||
Operating and maintenance | 2,250 | 2,795 | 7,651 | 7,714 |
SB 901 securitization charges, net | 0 | 0 | 40 | 0 |
Wildfire-related claims, net of recoveries | 9 | 94 | 153 | 261 |
Wildfire Fund expense | 118 | 162 | 353 | 399 |
Depreciation, amortization, and decommissioning | 1,002 | 801 | 2,915 | 2,540 |
Total operating expenses | 4,668 | 5,161 | 14,603 | 14,154 |
Operating Income | 726 | 304 | 1,707 | 1,242 |
Interest income | 43 | 0 | 70 | 17 |
Interest expense | (525) | (399) | (1,355) | (1,205) |
Other income, net | 118 | 132 | 246 | 387 |
Reorganization items, net | 0 | 0 | 0 | (11) |
Income Before Income Taxes | 362 | 37 | 668 | 430 |
Income tax provision (benefit) | (97) | 1,125 | (629) | 994 |
Net Income (Loss) | 459 | (1,088) | 1,297 | (564) |
Preferred stock dividend requirement of subsidiary | 3 | 3 | 10 | 10 |
Income (Loss) Attributable to Common Shareholders | $ 456 | $ (1,091) | $ 1,287 | $ (574) |
Weighted Average Common Shares Outstanding, Basic (in shares) | 1,987 | 1,985 | 1,987 | 1,985 |
Weighted Average Common Shares Outstanding, Diluted (in shares) | 2,132 | 1,985 | 2,132 | 1,985 |
Net Income (Loss) Per Common Share, Basic (in dollars per share) | $ 0.23 | $ (0.55) | $ 0.65 | $ (0.29) |
Net Income (Loss) Per Common Share, Diluted (in dollars per share) | $ 0.21 | $ (0.55) | $ 0.60 | $ (0.29) |
Electric | ||||
Operating Revenues | ||||
Total operating revenues | $ 3,895 | $ 4,181 | $ 11,743 | $ 11,527 |
Operating Expenses | ||||
Cost of electricity and natural gas | 1,032 | 1,133 | 2,314 | 2,570 |
Natural gas | ||||
Operating Revenues | ||||
Total operating revenues | 1,499 | 1,284 | 4,567 | 3,869 |
Operating Expenses | ||||
Cost of electricity and natural gas | $ 257 | $ 176 | $ 1,177 | $ 670 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 459 | $ (1,088) | $ 1,297 | $ (564) |
Other Comprehensive Income | ||||
Pension and other post-retirement benefit plans obligations (net of taxes of $0, $0, $0, and $0, respectively) | 0 | 1 | 0 | 2 |
Net unrealized losses on available-for-sale securities (net of taxes of $5, $0, $7, and $0, respectively) | (12) | 0 | (17) | 0 |
Total other comprehensive income (loss) | (12) | 1 | (17) | 2 |
Comprehensive Income (Loss) | 447 | (1,087) | 1,280 | (562) |
Preferred stock dividend requirement of subsidiary | 3 | 3 | 10 | 10 |
Comprehensive Income (Loss) Attributable to Common Shareholders | $ 444 | $ (1,090) | $ 1,270 | $ (572) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and other postretirement benefit plans obligations, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Net unrealized losses on available for sale securities, tax | $ 5 | $ 0 | $ 7 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 262 | $ 291 |
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | 145 | 16 |
Accounts receivable | ||
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,726 | 2,345 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 1,150 | 1,207 |
Regulatory balancing accounts | 3,037 | 2,999 |
Other | 2,261 | 1,784 |
Regulatory assets | 317 | 496 |
Inventories | ||
Gas stored underground and fuel oil | 82 | 44 |
Materials and supplies | 666 | 552 |
Wildfire Fund asset | 461 | 461 |
Other | 1,103 | 882 |
Total current assets | 12,210 | 11,077 |
Property, Plant, and Equipment | ||
Electric | 73,647 | 69,482 |
Gas | 27,725 | 25,979 |
Construction work in progress | 4,122 | 3,479 |
Financing lease and other | 19 | 20 |
Total property, plant, and equipment | 105,513 | 98,960 |
Accumulated depreciation | (30,438) | (29,134) |
Net property, plant, and equipment | 75,075 | 69,826 |
Other Noncurrent Assets | ||
Regulatory assets | 16,448 | 9,207 |
Customer credit trust | 874 | 0 |
Nuclear decommissioning trusts | 3,149 | 3,798 |
Operating lease right of use asset | 1,199 | 1,234 |
Wildfire Fund asset | 4,967 | 5,313 |
Income taxes receivable | 9 | 9 |
Other (includes noncurrent accounts receivable of $36 million and $187 million related to VIEs, net of noncurrent allowance for doubtful accounts of $3 million and $15 million at respective dates) | 3,081 | 2,863 |
Total other noncurrent assets | 29,727 | 22,424 |
TOTAL ASSETS | 117,012 | 103,327 |
Current Liabilities | ||
Short-term borrowings | 1,795 | 2,184 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 1,030 | 4,481 |
Accounts payable | ||
Trade creditors | 2,964 | 2,855 |
Regulatory balancing accounts | 1,718 | 1,121 |
Other | 633 | 679 |
Operating lease liabilities | 328 | 468 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 439 | 481 |
Wildfire-related claims | 2,194 | 2,722 |
Other | 2,926 | 2,436 |
Total current liabilities | 14,027 | 17,427 |
Noncurrent Liabilities | ||
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | 47,854 | 38,225 |
Regulatory liabilities | 16,921 | 11,999 |
Pension and other postretirement benefits | 669 | 860 |
Asset retirement obligations | 6,223 | 5,298 |
Deferred income taxes | 3,224 | 3,177 |
Operating lease liabilities | 996 | 810 |
Other | 4,612 | 4,308 |
Total noncurrent liabilities | 80,499 | 64,677 |
Shareholders' Equity | ||
Common stock, no par value, authorized 3,600,000,000 and 3,600,000,000 shares at respective dates; 1,987,700,085 and 1,985,400,540 shares outstanding at respective dates | 34,164 | 35,129 |
Treasury stock, at cost; 377,743,590 and 477,743,590 shares at respective dates | (3,838) | (4,854) |
Reinvested earnings | (8,055) | (9,284) |
Accumulated other comprehensive loss | (37) | (20) |
Total shareholders' equity | 22,234 | 20,971 |
Noncontrolling Interest - Preferred Stock of Subsidiary | 252 | 252 |
Total equity | 22,486 | 21,223 |
TOTAL LIABILITIES AND EQUITY | $ 117,012 | $ 103,327 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | $ 145 | $ 16 |
Allowance for doubtful accounts | 192 | 171 |
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,726 | 2,345 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 1,150 | 1,207 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 1,030 | 4,481 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 439 | 481 |
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | $ 47,854 | $ 38,225 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,600,000,000 | 3,600,000,000 |
Common stock, shares outstanding (in shares) | 1,987,700,085 | 1,985,400,540 |
Treasury stock, shares at cost (in shares) | 377,743,590 | 477,743,590 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | $ 134 | $ 4 |
Allowance for doubtful accounts | 192 | 171 |
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,290 | 2,060 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 992 | 1,090 |
Net noncurrent accounts receivable | 36 | 187 |
Noncurrent allowance for doubtful accounts | 3 | 15 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 128 | 18 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 107 | 3 |
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | $ 9,540 | $ 1,820 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 1,297 | $ (564) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and decommissioning | 2,915 | 2,540 |
Bad debt expense | 126 | 280 |
Allowance for equity funds used during construction | (138) | (96) |
Deferred income taxes and tax credits, net | 53 | 1,607 |
Reorganization items, net | 0 | (71) |
Wildfire Fund expense | 352 | 399 |
Other | 541 | 232 |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | (515) | (158) |
Wildfire-related insurance receivable | 127 | (790) |
Inventories | (152) | (5) |
Accounts payable | 607 | 242 |
Wildfire-related claims | (528) | 508 |
Other current assets and liabilities | (551) | (254) |
Regulatory assets, liabilities, and balancing accounts, net | (1,239) | (1,174) |
Other noncurrent assets and liabilities | (183) | (643) |
Net cash provided by operating activities | 2,712 | 2,053 |
Cash Flows from Investing Activities | ||
Capital expenditures | (7,411) | (5,468) |
Proceeds from sale of SFGO | 0 | 749 |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 2,135 | 1,176 |
Purchases of nuclear decommissioning trust investments | (2,129) | (1,187) |
Proceeds from sales and maturities of customer credit trust investments | 79 | 0 |
Purchases of customer credit trust investments | (1,017) | 0 |
Other | 25 | 52 |
Net cash used in investing activities | (8,318) | (4,678) |
Cash Flows from Financing Activities | ||
Borrowings under credit facilities | 7,325 | 6,687 |
Repayments under credit facilities | (7,364) | (7,772) |
Proceeds from issuance of long-term debt, net of premium, discount and issuance costs of $35 and $47 at respective dates | 4,265 | 3,171 |
Repayment of long-term debt | (5,980) | (21) |
Proceeds from issuance of SB 901 recovery bonds, net of financing fees of $36 and $0 at respective dates | 7,464 | 0 |
Proceeds from sale of future revenue from transmission tower license sales, net of fees | 0 | 370 |
Other | (4) | (6) |
Net cash provided by financing activities | 5,706 | 2,429 |
Net change in cash, cash equivalents, and restricted cash | 100 | (196) |
Cash, cash equivalents, and restricted cash at January 1 | 307 | 627 |
Cash, cash equivalents, and restricted cash at September 30 | 407 | 431 |
Less: Restricted cash and restricted cash equivalents | (145) | (11) |
Cash and cash equivalents at September 30 | 262 | 420 |
Cash received (paid) for: | ||
Interest, net of amounts capitalized | (1,295) | (1,229) |
Income taxes, net | 0 | 12 |
Supplemental disclosures of noncash investing and financing activities | ||
Capital expenditures financed through accounts payable | 1,177 | 963 |
Operating lease liabilities arising from obtaining ROU assets | 397 | 47 |
Increase to PG&E Corporation common stock and treasury stock in connection with the Share Exchange and Tax Matters Agreement | $ 0 | $ 4,854 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Financing Activities | ||
Premium, discount, and issuance costs on proceeds from long-term debt | $ 35 | $ 47 |
Financing fees | $ 36 | $ 0 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total Shareholders' Equity | Common Stock | Treasury Stock | Reinvested Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest - Preferred Stock of Subsidiary |
Beginning balance (in shares) at Dec. 31, 2020 | 1,984,678,673 | ||||||
Beginning balance at Dec. 31, 2020 | $ 21,253 | $ 21,001 | $ 30,224 | $ (9,196) | $ (27) | $ 252 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 123 | 123 | 123 | ||||
Other comprehensive income (loss) | 1 | 1 | 1 | ||||
Common stock issued, net (in shares) | 427,030 | ||||||
Stock-based compensation amortization | 2 | 2 | $ 2 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 1,985,105,703 | ||||||
Ending balance at Mar. 31, 2021 | 21,379 | 21,127 | $ 30,226 | (9,073) | (26) | 252 | |
Beginning balance (in shares) at Dec. 31, 2020 | 1,984,678,673 | ||||||
Beginning balance at Dec. 31, 2020 | 21,253 | 21,001 | $ 30,224 | (9,196) | (27) | 252 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | (564) | ||||||
Other comprehensive income (loss) | 2 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 1,985,369,201 | ||||||
Ending balance at Sep. 30, 2021 | 20,727 | 20,475 | $ 35,114 | $ (4,854) | (9,760) | (25) | 252 |
Ending balance, treasury (in shares) at Sep. 30, 2021 | 477,743,590 | ||||||
Beginning balance (in shares) at Mar. 31, 2021 | 1,985,105,703 | ||||||
Beginning balance at Mar. 31, 2021 | 21,379 | 21,127 | $ 30,226 | (9,073) | (26) | 252 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 401 | 401 | 401 | ||||
Common stock issued, net (in shares) | 167,345 | ||||||
Stock-based compensation amortization | 19 | 19 | $ 19 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 1,985,273,048 | ||||||
Ending balance at Jun. 30, 2021 | 21,799 | 21,547 | $ 30,245 | $ 0 | (8,672) | (26) | 252 |
Ending balance, treasury (in shares) at Jun. 30, 2021 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | (1,088) | (1,088) | (1,088) | ||||
Other comprehensive income (loss) | 1 | 1 | 1 | ||||
Common stock issued, net (in shares) | 96,153 | ||||||
Common stock issued, net | 4,854 | 4,854 | $ 4,854 | ||||
Treasury stock acquired (in shares) | 477,743,590 | ||||||
Treasury stock acquired | (4,854) | (4,854) | $ (4,854) | ||||
Stock-based compensation amortization | 15 | 15 | $ 15 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 1,985,369,201 | ||||||
Ending balance at Sep. 30, 2021 | $ 20,727 | 20,475 | $ 35,114 | $ (4,854) | (9,760) | (25) | 252 |
Ending balance, treasury (in shares) at Sep. 30, 2021 | 477,743,590 | ||||||
Beginning balance (in shares) at Dec. 31, 2021 | 1,985,400,540 | 1,985,400,540 | |||||
Beginning balance at Dec. 31, 2021 | $ 21,223 | 20,971 | $ 35,129 | $ (4,854) | (9,284) | (20) | 252 |
Beginning balance, treasury (in shares) at Dec. 31, 2021 | 477,743,590 | 477,743,590 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | $ 478 | 478 | 478 | ||||
Common stock issued, net (in shares) | 2,072,050 | ||||||
Common stock issued, net | (407) | (407) | $ (407) | ||||
Treasury stock disposition (in shares) | (40,000,000) | ||||||
Treasury stock disposition | 407 | 407 | $ 407 | ||||
Stock-based compensation amortization | 4 | 4 | $ 4 | ||||
Preferred stock dividend requirement of subsidiary in arrears | (59) | (59) | (59) | ||||
Preferred stock dividend requirement of subsidiary | (2) | (2) | (2) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 1,987,472,590 | ||||||
Ending balance at Mar. 31, 2022 | $ 21,644 | 21,392 | $ 34,726 | $ (4,447) | (8,867) | (20) | 252 |
Ending balance, treasury (in shares) at Mar. 31, 2022 | 437,743,590 | ||||||
Beginning balance (in shares) at Dec. 31, 2021 | 1,985,400,540 | 1,985,400,540 | |||||
Beginning balance at Dec. 31, 2021 | $ 21,223 | 20,971 | $ 35,129 | $ (4,854) | (9,284) | (20) | 252 |
Beginning balance, treasury (in shares) at Dec. 31, 2021 | 477,743,590 | 477,743,590 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | $ 1,297 | ||||||
Other comprehensive income (loss) | $ (17) | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 1,987,700,085 | 1,987,700,085 | |||||
Ending balance at Sep. 30, 2022 | $ 22,486 | 22,234 | $ 34,164 | $ (3,838) | (8,055) | (37) | 252 |
Ending balance, treasury (in shares) at Sep. 30, 2022 | 377,743,590 | 377,743,590 | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 1,987,472,590 | ||||||
Beginning balance at Mar. 31, 2022 | $ 21,644 | 21,392 | $ 34,726 | $ (4,447) | (8,867) | (20) | 252 |
Beginning balance, treasury (in shares) at Mar. 31, 2022 | 437,743,590 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 360 | 360 | 360 | ||||
Other comprehensive income (loss) | (5) | (5) | (5) | ||||
Common stock issued, net (in shares) | 195,630 | ||||||
Common stock issued, net | (609) | (609) | $ (609) | ||||
Treasury stock disposition (in shares) | (60,000,000) | ||||||
Treasury stock disposition | 609 | 609 | $ 609 | ||||
Stock-based compensation amortization | 24 | 24 | $ 24 | ||||
Preferred stock dividend requirement of subsidiary | (4) | (4) | (4) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 1,987,668,220 | ||||||
Ending balance at Jun. 30, 2022 | 22,019 | 21,767 | $ 34,141 | $ (3,838) | (8,511) | (25) | 252 |
Ending balance, treasury (in shares) at Jun. 30, 2022 | 377,743,590 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 459 | 459 | 459 | ||||
Other comprehensive income (loss) | (12) | (12) | (12) | ||||
Common stock issued, net (in shares) | 31,865 | ||||||
Common stock issued, net | 0 | ||||||
Stock-based compensation amortization | 23 | 23 | $ 23 | ||||
Preferred stock dividend requirement of subsidiary | $ (3) | (3) | (3) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 1,987,700,085 | 1,987,700,085 | |||||
Ending balance at Sep. 30, 2022 | $ 22,486 | $ 22,234 | $ 34,164 | $ (3,838) | $ (8,055) | $ (37) | $ 252 |
Ending balance, treasury (in shares) at Sep. 30, 2022 | 377,743,590 | 377,743,590 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, UTILITY - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Revenues | ||||
Total operating revenues | $ 5,394 | $ 5,465 | $ 16,310 | $ 15,396 |
Operating Expenses | ||||
Operating and maintenance | 2,250 | 2,795 | 7,651 | 7,714 |
SB 901 securitization charges, net | 0 | 0 | 40 | 0 |
Wildfire-related claims, net of recoveries | 9 | 94 | 153 | 261 |
Wildfire Fund expense | 118 | 162 | 353 | 399 |
Depreciation, amortization, and decommissioning | 1,002 | 801 | 2,915 | 2,540 |
Total operating expenses | 4,668 | 5,161 | 14,603 | 14,154 |
Operating Income | 726 | 304 | 1,707 | 1,242 |
Interest income | 43 | 0 | 70 | 17 |
Interest expense | (525) | (399) | (1,355) | (1,205) |
Other income, net | 118 | 132 | 246 | 387 |
Reorganization items, net | 0 | 0 | 0 | (11) |
Income Before Income Taxes | 362 | 37 | 668 | 430 |
Income tax provision (benefit) | (97) | 1,125 | (629) | 994 |
Net Income (Loss) | 459 | (1,088) | 1,297 | (564) |
Preferred stock dividend requirement | 3 | |||
Income (Loss) Attributable to Common Shareholders | 456 | (1,091) | 1,287 | (574) |
Pacific Gas & Electric Co (Utility) | ||||
Operating Revenues | ||||
Total operating revenues | 5,394 | 5,465 | 16,310 | 15,396 |
Operating Expenses | ||||
Operating and maintenance | 2,248 | 2,793 | 7,565 | 7,705 |
SB 901 securitization charges, net | 0 | 0 | 40 | 0 |
Wildfire-related claims, net of recoveries | 9 | 94 | 153 | 261 |
Wildfire Fund expense | 118 | 162 | 353 | 399 |
Depreciation, amortization, and decommissioning | 1,002 | 801 | 2,915 | 2,540 |
Total operating expenses | 4,666 | 5,159 | 14,517 | 14,145 |
Operating Income | 728 | 306 | 1,793 | 1,251 |
Interest income | 42 | 0 | 71 | 17 |
Interest expense | (458) | (342) | (1,175) | (1,032) |
Other income, net | 127 | 133 | 415 | 390 |
Reorganization items, net | 0 | 0 | 0 | (12) |
Income Before Income Taxes | 439 | 97 | 1,104 | 614 |
Income tax provision (benefit) | (51) | 1,139 | (516) | 1,039 |
Net Income (Loss) | 490 | (1,042) | 1,620 | (425) |
Preferred stock dividend requirement | 3 | 3 | 10 | 10 |
Income (Loss) Attributable to Common Shareholders | 487 | (1,045) | 1,610 | (435) |
Electric | ||||
Operating Revenues | ||||
Total operating revenues | 3,895 | 4,181 | 11,743 | 11,527 |
Operating Expenses | ||||
Cost of electricity and natural gas | 1,032 | 1,133 | 2,314 | 2,570 |
Electric | Pacific Gas & Electric Co (Utility) | ||||
Operating Revenues | ||||
Total operating revenues | 3,895 | 4,181 | 11,743 | 11,527 |
Operating Expenses | ||||
Cost of electricity and natural gas | 1,032 | 1,133 | 2,314 | 2,570 |
Natural gas | ||||
Operating Revenues | ||||
Total operating revenues | 1,499 | 1,284 | 4,567 | 3,869 |
Operating Expenses | ||||
Cost of electricity and natural gas | 257 | 176 | 1,177 | 670 |
Natural gas | Pacific Gas & Electric Co (Utility) | ||||
Operating Revenues | ||||
Total operating revenues | 1,499 | 1,284 | 4,567 | 3,869 |
Operating Expenses | ||||
Cost of electricity and natural gas | $ 257 | $ 176 | $ 1,177 | $ 670 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME, UTILITY - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Income (Loss) | $ 459 | $ (1,088) | $ 1,297 | $ (564) |
Other Comprehensive Income | ||||
Pension and other post-retirement benefit plans obligations (net of taxes of $0, $0, $0, and $0, respectively) | 0 | 1 | 0 | 2 |
Net unrealized losses on available-for-sale securities (net of taxes of $5, $0, $7, and $0, respectively) | (12) | 0 | (17) | 0 |
Total other comprehensive income (loss) | (12) | 1 | (17) | 2 |
Comprehensive Income (Loss) | 447 | (1,087) | 1,280 | (562) |
Pacific Gas & Electric Co (Utility) | ||||
Net Income (Loss) | 490 | (1,042) | 1,620 | (425) |
Other Comprehensive Income | ||||
Pension and other post-retirement benefit plans obligations (net of taxes of $0, $0, $0, and $0, respectively) | 0 | 0 | 1 | 0 |
Net unrealized losses on available-for-sale securities (net of taxes of $5, $0, $7, and $0, respectively) | (12) | 0 | (17) | 0 |
Total other comprehensive income (loss) | (12) | 0 | (16) | 0 |
Comprehensive Income (Loss) | $ 478 | $ (1,042) | $ 1,604 | $ (425) |
CONDENSED CONSOLIDATED STATEM_9
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension and other postretirement benefit plans obligations, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Net unrealized losses on available for sale securities, tax | 5 | 0 | 7 | 0 |
Pacific Gas & Electric Co (Utility) | ||||
Pension and other postretirement benefit plans obligations, tax | 0 | 0 | 0 | 0 |
Net unrealized losses on available for sale securities, tax | $ 5 | $ 0 | $ 7 | $ 0 |
CONDENSED CONSOLIDATED BALANC_3
CONDENSED CONSOLIDATED BALANCE SHEETS, UTILITY - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 262 | $ 291 |
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | 145 | 16 |
Accounts receivable | ||
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,726 | 2,345 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 1,150 | 1,207 |
Regulatory balancing accounts | 3,037 | 2,999 |
Other | 2,261 | 1,784 |
Regulatory assets | 317 | 496 |
Inventories | ||
Gas stored underground and fuel oil | 82 | 44 |
Materials and supplies | 666 | 552 |
Wildfire Fund asset | 461 | 461 |
Other | 1,103 | 882 |
Total current assets | 12,210 | 11,077 |
Property, Plant, and Equipment | ||
Electric | 73,647 | 69,482 |
Gas | 27,725 | 25,979 |
Construction work in progress | 4,122 | 3,479 |
Financing lease | 19 | 20 |
Total property, plant, and equipment | 105,513 | 98,960 |
Accumulated depreciation | (30,438) | (29,134) |
Net property, plant, and equipment | 75,075 | 69,826 |
Other Noncurrent Assets | ||
Regulatory assets | 16,448 | 9,207 |
Customer credit trust | 874 | 0 |
Nuclear decommissioning trusts | 3,149 | 3,798 |
Operating lease right of use asset | 1,199 | 1,234 |
Wildfire Fund asset | 4,967 | 5,313 |
Income taxes receivable | 9 | 9 |
Other (includes noncurrent accounts receivable of $36 million and $187 million related to VIEs, net of noncurrent allowance for doubtful accounts of $3 million and $15 million at respective dates) | 3,081 | 2,863 |
Total other noncurrent assets | 29,727 | 22,424 |
TOTAL ASSETS | 117,012 | 103,327 |
Current Liabilities | ||
Short-term borrowings | 1,795 | 2,184 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 1,030 | 4,481 |
Accounts payable | ||
Trade creditors | 2,964 | 2,855 |
Regulatory balancing accounts | 1,718 | 1,121 |
Other | 633 | 679 |
Operating lease liabilities | 328 | 468 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 439 | 481 |
Wildfire-related claims | 2,194 | 2,722 |
Other | 2,926 | 2,436 |
Total current liabilities | 14,027 | 17,427 |
Noncurrent Liabilities | ||
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | 47,854 | 38,225 |
Regulatory liabilities | 16,921 | 11,999 |
Pension and other postretirement benefits | 669 | 860 |
Asset retirement obligations | 6,223 | 5,298 |
Deferred income taxes | 3,224 | 3,177 |
Operating lease liabilities | 996 | 810 |
Other | 4,612 | 4,308 |
Total noncurrent liabilities | 80,499 | 64,677 |
Shareholders' Equity | ||
Common stock, $5 par value, authorized 800,000,000 shares; 264,374,809 shares outstanding at respective dates | 34,164 | 35,129 |
Reinvested earnings | (8,055) | (9,284) |
Accumulated other comprehensive loss | (37) | (20) |
Total shareholders' equity | 22,234 | 20,971 |
TOTAL LIABILITIES AND EQUITY | 117,012 | 103,327 |
Pacific Gas & Electric Co (Utility) | ||
Current Assets | ||
Cash and cash equivalents | 107 | 165 |
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | 145 | 16 |
Accounts receivable | ||
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,726 | 2,345 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 1,150 | 1,207 |
Regulatory balancing accounts | 3,037 | 2,999 |
Other | 1,991 | 1,932 |
Regulatory assets | 317 | 496 |
Inventories | ||
Gas stored underground and fuel oil | 82 | 44 |
Materials and supplies | 666 | 552 |
Wildfire Fund asset | 461 | 461 |
Other | 1,091 | 869 |
Total current assets | 11,773 | 11,086 |
Property, Plant, and Equipment | ||
Electric | 73,647 | 69,482 |
Gas | 27,725 | 25,979 |
Construction work in progress | 4,122 | 3,480 |
Financing lease | 18 | 18 |
Total property, plant, and equipment | 105,512 | 98,959 |
Accumulated depreciation | (30,438) | (29,131) |
Net property, plant, and equipment | 75,074 | 69,828 |
Other Noncurrent Assets | ||
Regulatory assets | 16,448 | 9,207 |
Customer credit trust | 874 | 0 |
Nuclear decommissioning trusts | 3,149 | 3,798 |
Operating lease right of use asset | 1,199 | 1,232 |
Wildfire Fund asset | 4,967 | 5,313 |
Income taxes receivable | 7 | 7 |
Other (includes noncurrent accounts receivable of $36 million and $187 million related to VIEs, net of noncurrent allowance for doubtful accounts of $3 million and $15 million at respective dates) | 2,948 | 2,706 |
Total other noncurrent assets | 29,592 | 22,263 |
TOTAL ASSETS | 116,439 | 103,177 |
Current Liabilities | ||
Short-term borrowings | 1,795 | 2,184 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 1,003 | 4,455 |
Accounts payable | ||
Trade creditors | 2,962 | 2,853 |
Regulatory balancing accounts | 1,718 | 1,121 |
Other | 590 | 648 |
Operating lease liabilities | 327 | 467 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 413 | 430 |
Wildfire-related claims | 2,194 | 2,722 |
Other | 2,506 | 2,430 |
Total current liabilities | 13,508 | 17,310 |
Noncurrent Liabilities | ||
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | 43,265 | 33,632 |
Regulatory liabilities | 16,921 | 11,999 |
Pension and other postretirement benefits | 575 | 764 |
Asset retirement obligations | 6,223 | 5,298 |
Deferred income taxes | 3,568 | 3,409 |
Operating lease liabilities | 996 | 810 |
Other | 4,660 | 4,345 |
Total noncurrent liabilities | 76,208 | 60,257 |
Shareholders' Equity | ||
Preferred stock | 258 | 258 |
Common stock, $5 par value, authorized 800,000,000 shares; 264,374,809 shares outstanding at respective dates | 1,322 | 1,322 |
Additional paid-in capital | 28,713 | 28,286 |
Reinvested earnings | (3,545) | (4,247) |
Accumulated other comprehensive loss | (25) | (9) |
Total shareholders' equity | 26,723 | 25,610 |
TOTAL LIABILITIES AND EQUITY | $ 116,439 | $ 103,177 |
CONDENSED CONSOLIDATED BALANC_4
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | $ 145 | $ 16 |
Allowance for doubtful accounts | 192 | 171 |
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,726 | 2,345 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 1,150 | 1,207 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 1,030 | 4,481 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 439 | 481 |
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | $ 47,854 | $ 38,225 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,600,000,000 | 3,600,000,000 |
Common stock, shares outstanding (in shares) | 1,987,700,085 | 1,985,400,540 |
Pacific Gas & Electric Co (Utility) | ||
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | $ 145 | $ 16 |
Allowance for doubtful accounts | 192 | 171 |
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,726 | 2,345 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 1,150 | 1,207 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 1,003 | 4,455 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 413 | 430 |
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | $ 43,265 | $ 33,632 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares outstanding (in shares) | 264,374,809 | 264,374,809 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | $ 134 | $ 4 |
Allowance for doubtful accounts | 192 | 171 |
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,290 | 2,060 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 992 | 1,090 |
Net noncurrent accounts receivable | 36 | 187 |
Noncurrent allowance for doubtful accounts | 3 | 15 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 128 | 18 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 107 | 3 |
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | 9,540 | 1,820 |
Variable Interest Entity, Primary Beneficiary | Pacific Gas & Electric Co (Utility) | ||
Restricted cash (includes $134 million and $4 million related to VIEs at respective dates) | 134 | 4 |
Allowance for doubtful accounts | 192 | 171 |
Customers (net of allowance for doubtful accounts of $192 million and $171 million at respective dates) (includes $2.29 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $192 million and $171 million at respective dates) | 2,290 | 2,060 |
Accrued unbilled revenue (includes $992 million and $1.09 billion related to VIEs at respective dates) | 992 | 1,090 |
Net noncurrent accounts receivable | 36 | 187 |
Noncurrent allowance for doubtful accounts | 3 | 15 |
Long-term debt, classified as current (includes $128 million and $18 million related to VIEs at respective dates) | 128 | 18 |
Interest payable (includes $107 million and $3 million related to VIEs at respective dates) | 107 | 3 |
Long-term debt (includes $9.54 billion and $1.82 billion related to VIEs at respective dates) | $ 9,540 | $ 1,820 |
CONDENSED CONSOLIDATED STATE_10
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, UTILITY - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 1,297 | $ (564) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and decommissioning | 2,915 | 2,540 |
Bad debt expense | 126 | 280 |
Allowance for equity funds used during construction | (138) | (96) |
Deferred income taxes and tax credits, net | 53 | 1,607 |
Reorganization items, net | 0 | (71) |
Wildfire Fund expense | 352 | 399 |
Other | 541 | 232 |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | (515) | (158) |
Wildfire-related insurance receivable | 127 | (790) |
Inventories | (152) | (5) |
Accounts payable | 607 | 242 |
Wildfire-related claims | (528) | 508 |
Other current assets and liabilities | (551) | (254) |
Regulatory assets, liabilities, and balancing accounts, net | (1,239) | (1,174) |
Other noncurrent assets and liabilities | (183) | (643) |
Net cash provided by operating activities | 2,712 | 2,053 |
Cash Flows from Investing Activities | ||
Capital expenditures | (7,411) | (5,468) |
Proceeds from sale of SFGO | 0 | 749 |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 2,135 | 1,176 |
Purchases of nuclear decommissioning trust investments | (2,129) | (1,187) |
Proceeds from sales and maturities of customer credit trust investments | 79 | 0 |
Purchases of customer credit trust investments | (1,017) | 0 |
Other | 25 | 52 |
Net cash used in investing activities | (8,318) | (4,678) |
Cash Flows from Financing Activities | ||
Borrowings under credit facilities | 7,325 | 6,687 |
Repayments under credit facilities | (7,364) | (7,772) |
Proceeds from issuance of long-term debt, net of premium, discount and issuance costs of $35 and $47 at respective dates | 4,265 | 3,171 |
Repayments of long-term debt | (5,980) | (21) |
Proceeds from issuance of SB 901 recovery bonds, net of financing fees of $36 and $0 at respective dates | 7,464 | 0 |
Proceeds from sale of future revenue from transmission tower license sales, net of fees | 0 | 370 |
Other | (4) | (6) |
Net cash provided by financing activities | 5,706 | 2,429 |
Net change in cash, cash equivalents, and restricted cash | 100 | (196) |
Cash, cash equivalents, and restricted cash at January 1 | 307 | 627 |
Cash, cash equivalents, and restricted cash at September 30 | 407 | 431 |
Less: Restricted cash and restricted cash equivalents | (145) | (11) |
Cash and cash equivalents at September 30 | 262 | 420 |
Supplemental disclosures of cash flow information | ||
Interest, net of amounts capitalized | (1,295) | (1,229) |
Income taxes, net | 0 | 12 |
Supplemental disclosures of noncash investing and financing activities | ||
Capital expenditures financed through accounts payable | 1,177 | 963 |
Operating lease liabilities arising from obtaining ROU assets | 397 | 47 |
Pacific Gas & Electric Co (Utility) | ||
Cash Flows from Operating Activities | ||
Net Income (Loss) | 1,620 | (425) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and decommissioning | 2,915 | 2,540 |
Bad debt expense | 126 | 280 |
Allowance for equity funds used during construction | (138) | (96) |
Deferred income taxes and tax credits, net | 165 | 1,651 |
Reorganization items, net | 0 | (38) |
Wildfire Fund expense | 352 | 399 |
Other | 332 | 180 |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | (514) | (154) |
Wildfire-related insurance receivable | 127 | (790) |
Inventories | (152) | (5) |
Accounts payable | 595 | 206 |
Wildfire-related claims | (528) | 508 |
Other current assets and liabilities | (524) | (220) |
Regulatory assets, liabilities, and balancing accounts, net | (1,239) | (1,174) |
Other noncurrent assets and liabilities | (197) | (642) |
Net cash provided by operating activities | 2,940 | 2,220 |
Cash Flows from Investing Activities | ||
Capital expenditures | (7,411) | (5,468) |
Proceeds from sale of SFGO | 0 | 749 |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 2,135 | 1,176 |
Purchases of nuclear decommissioning trust investments | (2,129) | (1,187) |
Proceeds from sales and maturities of customer credit trust investments | 79 | 0 |
Purchases of customer credit trust investments | (1,017) | 0 |
Intercompany note to PG&E Corporation | 145 | (145) |
Other | 25 | 52 |
Net cash used in investing activities | (8,173) | (4,823) |
Cash Flows from Financing Activities | ||
Borrowings under credit facilities | 7,325 | 6,687 |
Repayments under credit facilities | (7,364) | (7,772) |
Proceeds from issuance of long-term debt, net of premium, discount and issuance costs of $35 and $47 at respective dates | 4,265 | 3,171 |
Repayments of long-term debt | (5,959) | 0 |
Proceeds from issuance of SB 901 recovery bonds, net of financing fees of $36 and $0 at respective dates | 7,464 | 0 |
Proceeds from sale of future revenue from transmission tower license sales, net of fees | 0 | 370 |
Preferred stock dividends paid | (66) | 0 |
Common stock dividends paid | (850) | 0 |
Equity contribution from PG&E Corporation | 427 | 0 |
Other | 62 | 23 |
Net cash provided by financing activities | 5,304 | 2,479 |
Net change in cash, cash equivalents, and restricted cash | 71 | (124) |
Cash, cash equivalents, and restricted cash at January 1 | 181 | 404 |
Cash, cash equivalents, and restricted cash at September 30 | 252 | 280 |
Less: Restricted cash and restricted cash equivalents | (145) | (11) |
Cash and cash equivalents at September 30 | 107 | 269 |
Supplemental disclosures of cash flow information | ||
Interest, net of amounts capitalized | (1,100) | (1,046) |
Income taxes, net | 0 | 12 |
Supplemental disclosures of noncash investing and financing activities | ||
Capital expenditures financed through accounts payable | 1,177 | 963 |
Operating lease liabilities arising from obtaining ROU assets | $ 397 | $ 47 |
CONDENSED CONSOLIDATED STATE_11
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, UTILITY (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Financing Activities | ||
Premium, discount, and issuance costs on proceeds from long-term debt | $ 35 | $ 47 |
Financing fees | 36 | 0 |
Pacific Gas & Electric Co (Utility) | ||
Cash Flows from Financing Activities | ||
Premium, discount, and issuance costs on proceeds from long-term debt | $ 35 | $ 47 |
CONDENSED CONSOLIDATED STATE_12
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY, UTILITY - USD ($) $ in Millions | Total | Pacific Gas & Electric Co (Utility) | Total Shareholders' Equity | Total Shareholders' Equity Pacific Gas & Electric Co (Utility) | Preferred Stock Pacific Gas & Electric Co (Utility) | Common Stock | Common Stock Pacific Gas & Electric Co (Utility) | Additional Paid-in Capital Pacific Gas & Electric Co (Utility) | Reinvested Earnings | Reinvested Earnings Pacific Gas & Electric Co (Utility) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Pacific Gas & Electric Co (Utility) |
Beginning balance at Dec. 31, 2020 | $ 21,253 | $ 21,001 | $ 25,476 | $ 258 | $ 30,224 | $ 1,322 | $ 28,286 | $ (9,196) | $ (4,385) | $ (27) | $ (5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 123 | 123 | 177 | 123 | 177 | |||||||
Other comprehensive income (loss) | 1 | 1 | 1 | |||||||||
Ending balance at Mar. 31, 2021 | 21,379 | 21,127 | 25,653 | 258 | 30,226 | 1,322 | 28,286 | (9,073) | (4,208) | (26) | (5) | |
Beginning balance at Dec. 31, 2020 | 21,253 | 21,001 | 25,476 | 258 | 30,224 | 1,322 | 28,286 | (9,196) | (4,385) | (27) | (5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | (564) | $ (425) | ||||||||||
Other comprehensive income (loss) | 2 | 0 | ||||||||||
Ending balance at Sep. 30, 2021 | 20,727 | 20,475 | 25,051 | 258 | 35,114 | 1,322 | 28,286 | (9,760) | (4,810) | (25) | (5) | |
Beginning balance at Mar. 31, 2021 | 21,379 | 21,127 | 25,653 | 258 | 30,226 | 1,322 | 28,286 | (9,073) | (4,208) | (26) | (5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 401 | 401 | 440 | 401 | 440 | |||||||
Ending balance at Jun. 30, 2021 | 21,799 | 21,547 | 26,093 | 258 | 30,245 | 1,322 | 28,286 | (8,672) | (3,768) | (26) | (5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | (1,088) | (1,042) | (1,088) | (1,042) | (1,088) | (1,042) | ||||||
Other comprehensive income (loss) | 1 | 0 | 1 | 1 | ||||||||
Ending balance at Sep. 30, 2021 | 20,727 | 20,475 | $ 25,051 | 258 | 35,114 | 1,322 | 28,286 | (9,760) | (4,810) | (25) | (5) | |
Beginning balance at Dec. 31, 2021 | 21,223 | 25,610 | 20,971 | 258 | 35,129 | 1,322 | 28,286 | (9,284) | (4,247) | (20) | (9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 478 | 530 | 478 | 478 | 530 | |||||||
Other comprehensive income (loss) | 1 | 1 | ||||||||||
Preferred stock dividend requirement of subsidiary in arrears | (59) | (59) | (59) | (59) | (59) | |||||||
Preferred stock dividend requirement | (2) | (2) | ||||||||||
Ending balance at Mar. 31, 2022 | 21,644 | 26,080 | 21,392 | 258 | 34,726 | 1,322 | 28,286 | (8,867) | (3,778) | (20) | (8) | |
Beginning balance at Dec. 31, 2021 | 21,223 | 25,610 | 20,971 | 258 | 35,129 | 1,322 | 28,286 | (9,284) | (4,247) | (20) | (9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 1,297 | 1,620 | ||||||||||
Other comprehensive income (loss) | (17) | (16) | ||||||||||
Ending balance at Sep. 30, 2022 | 22,486 | 26,723 | 22,234 | 258 | 34,164 | 1,322 | 28,713 | (8,055) | (3,545) | (37) | (25) | |
Beginning balance at Mar. 31, 2022 | 21,644 | 26,080 | 21,392 | 258 | 34,726 | 1,322 | 28,286 | (8,867) | (3,778) | (20) | (8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 360 | 600 | 360 | 360 | 600 | |||||||
Other comprehensive income (loss) | (5) | (5) | (5) | (5) | (5) | |||||||
Equity Contribution | 212 | 212 | ||||||||||
Preferred stock dividend requirement | (4) | (4) | ||||||||||
Common stock dividend | (425) | (425) | ||||||||||
Ending balance at Jun. 30, 2022 | 22,019 | 26,458 | 21,767 | 258 | 34,141 | 1,322 | 28,498 | (8,511) | (3,607) | (25) | (13) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 459 | 490 | 459 | 459 | 490 | |||||||
Other comprehensive income (loss) | (12) | (12) | (12) | (12) | (12) | |||||||
Equity Contribution | 215 | 215 | ||||||||||
Preferred stock dividend requirement | (3) | (3) | ||||||||||
Common stock dividend | (425) | (425) | ||||||||||
Ending balance at Sep. 30, 2022 | $ 22,486 | $ 26,723 | $ 22,234 | $ 258 | $ 34,164 | $ 1,322 | $ 28,713 | $ (8,055) | $ (3,545) | $ (37) | $ (25) |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization and Basis of Presentation PG&E Corporation is a holding company whose primary operating subsidiary is Pacific Gas and Electric Company, a public utility serving northern and central California. The Utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. The Utility is primarily regulated by the CPUC and the FERC. In addition, the NRC oversees the licensing, construction, operation, and decommissioning of the Utility’s nuclear generation facilities. This quarterly report on Form 10-Q is a combined report of PG&E Corporation and the Utility. PG&E Corporation’s Condensed Consolidated Financial Statements include the accounts of PG&E Corporation, the Utility, and other wholly owned and controlled subsidiaries. The Utility’s Condensed Consolidated Financial Statements include the accounts of the Utility and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated in consolidation. The Notes to the Condensed Consolidated Financial Statements apply to both PG&E Corporation and the Utility. PG&E Corporation and the Utility assess financial performance and allocate resources on a consolidated basis (i.e., the companies operate in one segment). The accompanying Condensed Consolidated Financial Statements have been prepared in conformity with GAAP and in accordance with the interim period reporting requirements of Form 10-Q and reflect all adjustments that management believes are necessary for the fair presentation of PG&E Corporation’s and the Utility’s financial condition, results of operations, and cash flows for the periods presented. The information at December 31, 2021 in the Condensed Consolidated Balance Sheets included in this Form 10-Q was derived from the audited Consolidated Balance Sheets in Item 8 of the 2021 Form 10-K. This Form 10-Q should be read in conjunction with the 2021 Form 10-K. The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Some of the more significant estimates and assumptions relate to the Utility’s regulatory assets and liabilities, wildfire-related liabilities, legal and regulatory contingencies, the Wildfire Fund, environmental remediation liabilities, AROs, wildfire-related receivables, and pension and other post-retirement benefit plan obligations. Management believes that its estimates and assumptions reflected in the Condensed Consolidated Financial Statements are appropriate and reasonable. A change in management’s estimates or assumptions could result in an adjustment that would have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows during the period in which such change occurred. |
BANKRUPTCY FILING
BANKRUPTCY FILING | 9 Months Ended |
Sep. 30, 2022 | |
Reorganizations [Abstract] | |
BANKRUPTCY FILING | BANKRUPTCY FILING Chapter 11 Proceedings On January 29, 2019, PG&E Corporation and the Utility commenced the Chapter 11 Cases with the Bankruptcy Court. Prior to the Emergence Date, PG&E Corporation and the Utility continued to operate their business as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On June 20, 2020, the Bankruptcy Court entered the Confirmation Order confirming the Plan filed on June 19, 2020. PG&E Corporation and the Utility emerged from Chapter 11 on the Emergence Date of July 1, 2020. Certain parties filed notices of appeal with respect to the Confirmation Order, including that the Ad Hoc Committee of Holders of Trade Claims (the “Trade Committee”) appealed the Confirmation Order’s holding awarding post-petition interest on general unsecured claims at the federal judgment rate, which is 2.59%. The Trade Committee is seeking for its members to receive post-petition interest at the rates specified under their contracts or the rate established under California state law, which is 10%. The Bankruptcy Court and the federal district court held that the Trade Committee’s members are entitled to post-petition interest at the federal judgment rate. On June 8, 2021, the Trade Committee appealed the federal district court decision to the Ninth Circuit Court of Appeals. On August 29, 2022, a three-judge panel of the Ninth Circuit Court of Appeals reversed the federal district court decision 2-1. On September 12, 2022, the Utility filed a petition for en banc review, which was denied on October 5, 2022. The Utility plans to file a petition for a writ of certiorari to the Supreme Court. PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the post-petition interest matter, but the amount of that loss is not reasonably estimable at this time. If the Ninth Circuit Court of Appeals decision is not reversed, then the matter would be remanded to the Bankruptcy Court to evaluate the rate of interest for each individual contract, the conditions under which the contract rate applies, and whether payment of interest under state law would be warranted for each contract and claimant. These proceedings therefore will require extensive discovery and motion practice before the Bankruptcy Court with respect to each of these claims on a variety of contractual issues and equitable considerations. PG&E Corporation and the Utility are unable to predict the timing and outcome of these proceedings or any further appeals. Except as otherwise set forth in the Plan, the Confirmation Order or another order of the Bankruptcy Court, substantially all pre-petition liabilities were discharged under the Plan. Unresolved Chapter 11 Claims PG&E Corporation and the Utility have received over 100,000 proofs of claim since January 29, 2019, of which approximately 80,000 were channeled to a trust for the benefit of holders of certain subrogation claims (the “Subrogation Wildfire Trust”) and the Fire Victim Trust. The claims channeled to the Subrogation Wildfire Trust and Fire Victim Trust will be resolved by such trusts, and PG&E Corporation and the Utility have no further liability in connection with such claims. PG&E Corporation and the Utility continue their review and analysis of certain remaining claims, including asserted litigation claims, trade creditor claims, along with other tax and regulatory claims, and therefore the ultimate liability of PG&E Corporation or the Utility for such claims may differ from the amounts asserted in such claims. Allowed claims are paid in accordance with the Plan and the Confirmation Order. Amounts expected to be allowed are reflected as current liabilities in the Condensed Consolidated Balance Sheets. Holders of certain claims may assert that they are entitled under the Plan or the Bankruptcy Code to pursue, or continue to pursue, their claims against PG&E Corporation and the Utility on or after the Emergence Date, including claims arising from or relating to indemnification or contribution claims, including with respect to the wildfire that began on November 8, 2018 near the city of Paradise, Butte County, California (the “2018 Camp fire”), the 2017 Northern California wildfires, and the wildfire that began September 9, 2015 in Amador and Calaveras counties in Northern California (the “2015 Butte fire”). In addition, Subordinated Debt Claims and HoldCo Rescission or Damage Claims (each as defined in Note 11 below) continue to be pursued against PG&E Corporation and the Utility in the claims reconciliation process in the Bankruptcy Court, and claims against certain former directors and current and former officers, as well as certain underwriters, are being pursued in the purported securities class action that is further described in Note 11 under the heading “Securities Class Action Litigation.” In addition to filing objections in the Bankruptcy Court to claims that were subject to certain defenses which allowed PG&E Corporation and the Utility to file objections expunging those claims on an omnibus basis, PG&E Corporation and the Utility are working to resolve disputed claims, including Subordinated Debt Claims and HoldCo Rescission or Damage Claims. By order of the Bankruptcy Court, the current deadline for PG&E Corporation and the Utility to object to claims is December 19, 2022. On October 25, 2022, PG&E Corporation and the Utility filed a motion requesting entry of an order further extending the deadline to object to claims to September 15, 2023. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Revenue from Contracts with Customers The Utility recognizes revenues when electricity and natural gas services are delivered. The Utility records unbilled revenues for the estimated amount of energy delivered to customers but not yet billed at the end of the period. Unbilled revenues are included in accounts receivable on the Condensed Consolidated Balance Sheets. Rates charged to customers are based on CPUC and FERC authorized revenue requirements. Revenues can vary significantly from period to period because of seasonality, weather, and customer usage patterns. Regulatory Balancing Account Revenue The CPUC authorizes most of the Utility’s revenues in the Utility’s GRCs, which occur every four years. CPUC and FERC rates decouple authorized revenue from the volume of electricity and natural gas sales, so the Utility receives revenue equal to the amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity and natural gas sold does not have a direct impact on PG&E Corporation’s and the Utility’s financial results. The Utility recognizes revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. Generally, electric and natural gas operating revenue is recognized ratably over the year. The Utility records a balancing account asset or liability for differences between customer billings and authorized revenue requirements that are probable of recovery or refund. The Utility also collects additional revenue requirements to recover costs that the CPUC has authorized the Utility to pass on to customers, including costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs. In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred. The Utility records a regulatory balancing account asset or liability for differences between incurred costs and customer billings or authorized revenue meant to recover those costs, to the extent that these differences are probable of recovery or refund. As a result, these differences have no impact on net income. The following table presents the Utility’s revenues disaggregated by type of customer: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Electric Revenue from contracts with customers Residential $ 2,128 $ 1,962 $ 4,834 $ 4,778 Commercial 1,711 1,580 4,135 3,776 Industrial 534 467 1,206 1,099 Agricultural 777 655 1,477 1,238 Public street and highway lighting 20 18 57 53 Other (1) 115 (52) 26 169 Total revenue from contracts with customers - electric 5,285 4,630 11,735 11,113 Regulatory balancing accounts (2) (1,390) (449) 8 414 Total electric operating revenue $ 3,895 $ 4,181 $ 11,743 $ 11,527 Natural gas Revenue from contracts with customers Residential $ 392 $ 295 $ 2,243 $ 1,921 Commercial 162 102 703 486 Transportation service only 356 323 1,111 995 Other (1) 16 16 (251) (168) Total revenue from contracts with customers - gas 926 736 3,806 3,234 Regulatory balancing accounts (2) 573 548 761 635 Total natural gas operating revenue 1,499 1,284 4,567 3,869 Total operating revenues $ 5,394 $ 5,465 $ 16,310 $ 15,396 (1) This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items. (2) These amounts represent revenues authorized to be billed or refunded to customers. Variable Interest Entities A VIE is an entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or whose equity investors lack any characteristics of a controlling financial interest. An enterprise that has a controlling financial interest in a VIE is a primary beneficiary and is required to consolidate the VIE. Consolidated VIEs Receivables Securitization Program The SPV was created in connection with the Receivables Securitization Program and is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the Receivables Securitization Program, the Utility sells certain of its receivables and certain related rights to payment and obligations of the Utility with respect to such receivables, and certain other related rights to the SPV, which, in turn, obtains loans secured by the receivables from financial institutions (the “Lenders”). The pledged receivables and the corresponding debt are included in Accounts receivable, Other noncurrent assets, and Long-term debt, respectively, on the Condensed Consolidated Balance Sheets. The SPV is considered a VIE because its equity capitalization is insufficient to support its activities. The most significant activities that impact the economic performance of the SPV are decisions made to manage receivables. The Utility is considered the primary beneficiary and consolidates the SPV as it makes these decisions. No additional financial support was provided to the SPV during the nine months ended September 30, 2022 or is expected to be provided in the future that was not previously contractually required. As of September 30, 2022 and December 31, 2021, the SPV had net accounts receivable of $3.3 billion, and outstanding borrowings of $1.3 billion and $974 million, respectively, under the Receivables Securitization Program. For more information, see Note 5 below. AB 1054 Securitization PG&E Recovery Funding LLC is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the financing order for the first AB 1054 securitization transaction, the Utility sold its right to receive revenues from the non-bypassable wildfire hardening fixed recovery charge (“Recovery Property”) to PG&E Recovery Funding LLC, which, in turn, issued recovery bonds secured by the Recovery Property. On November 12, 2021, PG&E Recovery Funding LLC issued approximately $860 million of senior secured recovery bonds. The recovery bonds were issued in three tranches: (1) approximately $266 million with an interest rate of 1.46% and is due July 15, 2033, (2) approximately $160 million with an interest rate of 2.28% and is due January 15, 2038, and (3) approximately $434 million with an interest rate of 2.82% and is due July 15, 2048. The recovery bonds are scheduled to pay principal and interest semi-annually on January 15 and July 15 of each year. The final scheduled payment date is July 15, 2046. Amounts owed to bondholders are included in Long-term debt and Long-term debt, classified as current, on the Condensed Consolidated Balance Sheets. PG&E Recovery Funding LLC is considered a VIE because its equity capitalization is insufficient to support its operations. The most significant activities that impact the economic performance of PG&E Recovery Funding LLC are decisions made by the servicer of the Recovery Property. The Utility is considered the primary beneficiary and consolidates PG&E Recovery Funding LLC as it acts in this role as servicer. No additional financial support was provided to PG&E Recovery Funding LLC during the nine months ended September 30, 2022 or is expected to be provided in the future that was not previously contractually required. As of September 30, 2022 and December 31, 2021, PG&E Recovery Funding LLC had outstanding borrowings of $842 million and $860 million, respectively. SB 901 Securitization PG&E Wildfire Recovery Funding LLC is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the financing order for the SB 901 securitization transaction, the Utility sold its right to receive revenues from the non-bypassable fixed recovery charge (“SB 901 Recovery Property”) to PG&E Wildfire Recovery Funding LLC, which, in turn, issued recovery bonds secured by the SB 901 Recovery Property. PG&E Wildfire Recovery Funding LLC is considered a VIE because its equity capitalization is insufficient to support its operations. The most significant activities that impact the economic performance of PG&E Wildfire Recovery Funding LLC are decisions made by the servicer of the SB 901 Recovery Property. The Utility is considered the primary beneficiary and consolidates PG&E Wildfire Recovery Funding LLC as it acts in this role as servicer. No additional financial support was provided to PG&E Wildfire Recovery Funding LLC during the nine months ended September 30, 2022 or is expected to be provided in the future that was not previously contractually required. On May 10, 2022, PG&E Wildfire Recovery Funding LLC issued $3.6 billion aggregate principal amount of senior secured recovery bonds (the “Series 2022-A Recovery Bonds”). On July 20, 2022, PG&E Wildfire Recovery Funding LLC issued $3.9 billion aggregate principal amount of senior secured recovery bonds (the “Series 2022-B Recovery Bonds”). As of September 30, 2022, PG&E Wildfire Recovery Funding LLC had outstanding borrowings of $7.5 billion. For more information, see Note 6 below. Non-Consolidated VIEs Some of the counterparties to the Utility’s power purchase agreements are considered VIEs. Each of these VIEs was designed to own a power plant that would generate electricity for sale to the Utility. To determine whether the Utility was the primary beneficiary of any of these VIEs as of September 30, 2022, it assessed whether it absorbs any of the VIE’s expected losses or receives any portion of the VIE’s expected residual returns under the terms of the power purchase agreement, analyzed the variability in the VIE’s gross margin, and considered whether it had any decision-making rights associated with the activities that are most significant to the VIE’s performance, such as dispatch rights and operating and maintenance activities. The Utility’s financial obligation is limited to the amount the Utility pays for delivered electricity and capacity. The Utility did not have any decision-making rights associated with any of the activities that are most significant to the economic performance of any of these VIEs. Since the Utility was not the primary beneficiary of any of these VIEs as of September 30, 2022, it did not consolidate any of them. Contributions to the Wildfire Fund Established Pursuant to AB 1054 PG&E Corporation and the Utility account for contributions to the Wildfire Fund by capitalizing an asset, amortizing to periods ratably based on an estimated period of coverage, and incrementally adjusting for accelerated amortization as the level of coverage declines, as further described below. However, AB 1054 did not specify a period of coverage for the Wildfire Fund; therefore, this accounting treatment is subject to significant accounting judgments and estimates. Since the inception of the Wildfire Fund, PG&E Corporation and the Utility have estimated a period of coverage of 15 years. In estimating that initial period of coverage, PG&E Corporation and the Utility started in 2019 with a dataset of 12 years of historical, publicly available fire-loss data for the period from 2007 to 2018 for wildfires caused by electrical equipment to create Monte Carlo simulations of expected loss. For each year after 2019, PG&E Corporation and the Utility added the fire-loss data for the preceding year to the dataset. The number of years of historic fire-loss data and the effectiveness of mitigation efforts by the California electric utility companies are significant assumptions used to estimate the period of coverage. Other assumptions include the estimated costs to settle wildfire claims for participating electric utilities including the Utility, the CPUC’s determinations of whether costs were just and reasonable in cases of electric utility-caused wildfires and amounts required to be reimbursed to the Wildfire Fund, the impacts of climate change, the amount of future insurance coverage held by the electric utilities, the FERC-allocable portion of loss recovery, and the future transmission and distribution equity rate base growth of participating electric utilities. These assumptions create a high degree of uncertainty for the estimated useful life of the Wildfire Fund. PG&E Corporation and the Utility evaluate and, where appropriate, update all assumptions quarterly. Changes in any of the assumptions could materially impact the estimated period of coverage. PG&E Corporation and the Utility assess the Wildfire Fund asset for acceleration of the amortization of the asset in the event that it is probable that a participating utility’s electrical equipment will be found to be the substantial cause of a catastrophic wildfire. In the first quarter of 2022, PG&E Corporation and the Utility updated assumptions related to the mitigation effectiveness and historical fire loss dataset to align with the 2022 WMP. These updates did not change the estimated period of coverage, which continues to be 15 years from the inception of the Wildfire Fund. As of September 30, 2022, PG&E Corporation and the Utility recorded $193 million in Other current liabilities, $1.1 billion in Other non-current liabilities, $461 million in Current assets - Wildfire Fund asset, and $5.0 billion in Non-current assets - Wildfire Fund asset in the Condensed Consolidated Balance Sheets. During the three months ended September 30, 2022 and 2021, the Utility recorded amortization and accretion expense of $118 million and $162 million, respectively. During the nine months ended September 30, 2022 and 2021, the Utility recorded amortization and accretion expense of $353 million and $399 million, respectively. The amortization of the asset, accretion of the liability, and applicable acceleration of the amortization of the asset is reflected in Wildfire Fund expense in the Condensed Consolidated Statements of Income. As of September 30, 2022, PG&E Corporation and the Utility had recorded $150 million in Other noncurrent assets for Wildfire Fund receivables related to the 2021 Dixie fire. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K and “Wildfire Fund under AB 1054” in Note 11 below. Pension and Other Post-Retirement Benefits PG&E Corporation and the Utility sponsor a non-contributory defined benefit pension plan and cash balance plan. Both plans are included in “Pension Benefits” below. Post-retirement medical and life insurance plans are included in “Other Benefits” below. The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2022 and 2021 were as follows: Pension Benefits Other Benefits Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Service cost for benefits earned (1) $ 144 $ 147 $ 15 $ 15 Interest cost 173 161 13 13 Expected return on plan assets (297) (261) (32) (33) Amortization of prior service cost (1) (1) 2 3 Amortization of net actuarial (gain) loss — 1 (10) (8) Net periodic benefit cost 19 47 (12) (10) Regulatory account transfer (2) 64 37 — — Total $ 83 $ 84 $ (12) $ (10) (1) A portion of service costs is capitalized pursuant to GAAP. (2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates. Pension Benefits Other Benefits Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Service cost for benefits earned (1) $ 432 $ 440 $ 46 $ 47 Interest cost 519 484 40 39 Expected return on plan assets (892) (784) (97) (103) Amortization of prior service cost (3) (4) 5 10 Amortization of net actuarial (gain) loss 1 4 (30) (24) Net periodic benefit cost 57 140 (36) (31) Regulatory account transfer (2) 191 111 — — Total $ 248 $ 251 $ (36) $ (31) (1) A portion of service costs is capitalized pursuant to GAAP. (2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates. Non-service costs are reflected in Other income, net on the Condensed Consolidated Statements of Income. Service costs are reflected in Operating and maintenance on the Condensed Consolidated Statements of Income. There was no material difference between PG&E Corporation and the Utility for the information disclosed above. Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) consisted of the following: Pension Other Customer Credit Trust Total (in millions, net of income tax) Three Months Ended September 30, 2022 Beginning balance $ (33) $ 18 $ (5) $ (20) Other comprehensive income before reclassification Loss on investments (net of taxes of $0, $0 and $5, respectively) — — (12) (12) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $1, $0 and $0, respectively) — 2 — 2 Amortization of net actuarial gain (net of taxes of $0, $2 and $0, respectively) — (8) — (8) Regulatory account transfer (net of taxes of $1, $2 and $0, respectively) — 6 — 6 Net current period other comprehensive loss — — (12) (12) Ending balance $ (33) $ 18 $ (17) $ (32) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. Pension Benefits Other Total (in millions, net of income tax) Three Months Ended September 30, 2021 Beginning balance $ (38) $ 17 $ (21) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1) 2 1 Amortization of net actuarial (gain) loss (net of taxes of $0 and $3, respectively) 1 (5) (4) Regulatory account transfer (net of taxes of $1 and $2, respectively) 1 3 4 Net current period other comprehensive gain 1 — 1 Ending balance $ (37) $ 17 $ (20) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. Pension Other Customer Credit Trust Total (in millions, net of income tax) Nine Months Ended September 30, 2022 Beginning balance $ (33) $ 18 $ — $ (15) Other comprehensive income before reclassification Loss on investments (net of taxes of $0, $0 and $7, respectively) — — (17) (17) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $1, $1 and $0, respectively) (2) 4 — 2 Amortization of net actuarial (gain) loss (net of taxes of $0, $8 and $0, respectively) 1 (22) — (21) Regulatory account transfer (net of taxes of $1, $7 and $0, respectively) 1 18 — 19 Net current period other comprehensive gain (loss) — — (17) (17) Ending balance $ (33) $ 18 $ (17) $ (32) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. Pension Benefits Other Total (in millions, net of income tax) Nine Months Ended September 30, 2021 Beginning balance $ (39) $ 17 $ (22) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $1 and $3, respectively) (3) 7 4 Amortization of net actuarial (gain) loss (net of taxes of $1 and $7, respectively) 3 (17) (14) Regulatory account transfer (net of taxes of $1 and $4, respectively) 2 10 12 Net current period other comprehensive gain (loss) 2 — 2 Ending balance $ (37) $ 17 $ (20) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. There was no material difference between PG&E Corporation and the Utility for the information disclosed above. Voluntary Separation Program In the second quarter of 2022, PG&E Corporation and the Utility enacted a VSP, which provides separation benefits to approximately 470 eligible employees who voluntarily agreed to terminate their employment under the program. The VSP includes certain one-time cash payments and a credit to the employee’s retirement health savings account. PG&E Corporation and the Utility account for the VSP as a special termination benefit with any costs of the special separation benefits recorded upon each employee’s irrevocable acceptance. In the third quarter of 2022, PG&E Corporation and the Utility recorded $77 million in Operating and maintenance expense on the Condensed Consolidated Statements of Income related to the VSP one-time cash payments. In addition, during the third quarter of 2022, VSP-related credits to employee retirement health savings accounts totaled $22 million. This amount will be paid using the PG&E Corporation and Utility postretirement medical plan trusts’ assets and does not impact income. Financial Assets Measured at Amortized Cost – Credit Losses PG&E Corporation and the Utility use the current expected credit loss model to estimate the expected lifetime credit loss on financial assets measured at amortized cost. PG&E Corporation and the Utility evaluate credit risk in their portfolio of financial assets quarterly. As of September 30, 2022, PG&E Corporation and the Utility identified the following significant categories of financial assets. Trade Receivables Trade receivables are represented by customer accounts. PG&E Corporation and the Utility record an allowance for doubtful accounts to recognize an estimate of expected lifetime credit losses. The allowance is determined on a collective basis based on the historical amounts written-off and an assessment of customer collectability. Furthermore, economic conditions are evaluated as part of the estimate of expected lifetime credit losses. During the nine months ended September 30, 2022, expected credit losses of $126 million were recorded in Operating and maintenance expense on the Condensed Consolidated Statements of Income for credit losses associated with trade and other receivables. The portion of expected credit losses that are deemed probable of recovery are deferred to the RUBA, CPPMA and a FERC regulatory asset. As of September 30, 2022, the RUBA current balancing accounts receivable balance was $109 million, and CPPMA and FERC long-term regulatory asset balances were $10 million and $10 million, respectively. Other Receivables and Available-For-Sale Debt Securities Insurance receivables are related to the liability insurance policies PG&E Corporation and the Utility carry. Insurance receivable risk is related to each insurance carrier’s risk of defaulting on their individual policies. Wildfire Fund receivables are the funds available from the statewide fund established under AB 1054 for payment of eligible claims related to the 2021 Dixie fire that exceed $1.0 billion and available insurance coverage. For more information, see Note 11 below. Wildfire Fund receivables risk is related to the Wildfire Fund’s durability, which is a measurement of the claim-paying capacity. Lastly, PG&E Corporation and the Utility are required to determine if the fair value is below the amortized cost basis for its available-for-sale debt securities (i.e., impairment). If such an impairment exists and it does not otherwise result in a write-down, then PG&E Corporation and the Utility must determine whether a portion of the impairment is a result of expected credit loss. As of September 30, 2022, expected credit losses for insurance receivables, Wildfire Fund receivables, and available-for-sale debt securities were immaterial. Asset Retirement Obligations PG&E Corporation and the Utility account for an ARO at fair value in the period during which the legal obligation is incurred if a reasonable estimate of fair value and its settlement date can be made. At the time of recording an ARO, the associated asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset. The Utility recognizes a regulatory asset or liability for the timing differences between the recognition of expenses and costs recovered through the ratemaking process. For more information, see Note 4 below. To estimate its liability, the Utility uses a discounted cash flow model based upon significant estimates and assumptions about future decommissioning costs, escalation rates, credit-adjusted risk-free rates, and the estimated date of decommissioning. For generation facilities, the Utility uses a probability-weighted, discounted cash flow model. For nuclear generation facilities, the model also considers multiple decommissioning start-year scenarios. The estimated future cash flows are discounted using a credit-adjusted risk-free rate that reflects the risk associated with the decommissioning obligation. The Utility performs detailed studies of its nuclear generation facilities every three years in conjunction with the NDCTP, and updates its nuclear AROs accordingly, unless circumstances warrant more frequent updates, based on its annual evaluation of cost escalation factors and probabilities assigned to various scenarios. The ARO liability decreased from $6.4 billion as of December 31, 2020 to $5.3 billion as of December 31, 2021, primarily due to the decrease in nuclear decommissioning ARO of $1.3 billion. In December 2021, the Utility filed its 2021 NDCTP application, which includes a Diablo Canyon site-specific decommissioning cost estimate of $4.0 billion. Relative to the 2018 NDCTP decision, the 2021 NDCTP application resulted in a decommissioning cost estimate that was decreased by $378 million on a non-escalated basis and $2.6 billion on an escalated basis. The escalated basis assumed that costs will be spread primarily over 56 years, which represents the assumption for how much time will be required for physical decommissioning of Units 1 and 2. This decrease reflected favorable changes in the scope and methods of planned decommissioning activities. In addition, the Utility’s escalation rates were filed as part of the NDCTP and include factors for the Utility’s labor, materials, contract labor, burial costs, and other costs. Additionally, the average total escalation factor decreased, primarily due to a reduction in the escalation factor for burial costs. Furthermore, the credit-adjusted risk-free rate, was greater in 2021 than in 2020. The increase of $925 million in the 2022 ARO liability at September 30, 2022 as compared to December 31, 2021 is primarily due to a realignment of the expected timing of Diablo Canyon decommissioning work to be completed; the creation of a new liability for the permanently abandoned electric transmission lines in connection with the Kincade SED Settlement (as defined in Note 11); increases in the probability that the Utility will be responsible for decommissioning certain hydroelectric generation facilities; increases in the costs associated with retiring gas transmission pipelines; and increases in escalation factors. On September 2, 2022, the Governor of California signed SB 846, which supports the extension of operations at Diablo Canyon through no later than 2030, with the potential for an earlier retirement date. The Utility’s ARO associated with the decommissioning of Diablo Canyon could be materially impacted if the plant’s operations are extended beyond 2025. As of September 30, 2022, the Utility did not adjust the ARO associated with the decommissioning of Diablo Canyon because the Utility has not received approval of its application for federal funding through the U.S. DOE’s Civil Nuclear Credit program, and the Utility has not received required federal and state licenses, permits, and approvals. PG&E Corporation and the Utility expect to adjust the ARO associated with the decommissioning of Diablo Canyon, if at all, in the fourth quarter of 2022. Recently Adopted Accounting Standards Debt In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
REGULATORY ASSETS, LIABILITIES,
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS Regulatory Assets Long-term regulatory assets are comprised of the following: Balance at (in millions) September 30, 2022 December 31, 2021 Pension benefits (1) $ 519 $ 708 Environmental compliance costs 1,190 1,089 Utility retained generation (2) 98 133 Price risk management 151 216 Catastrophic event memorandum account (3) 998 1,119 Wildfire expense memorandum account (4) 417 347 Fire hazard prevention memorandum account (5) 77 75 Fire risk mitigation memorandum account (6) 122 44 Wildfire mitigation plan memorandum account (7) 623 424 Deferred income taxes (8) 2,527 1,849 Insurance premium costs (9) 168 207 Wildfire mitigation balancing account (10) 301 273 Vegetation management balancing account (11) 1,994 1,411 COVID-19 pandemic protection memorandum accounts (12) 32 49 Microgrid memorandum account (13) 192 163 Financing costs (14) 207 175 SB 901 securitization (15) 5,439 — AROs in excess of recoveries (16) 369 — Other 1,024 925 Total long-term regulatory assets $ 16,448 $ 9,207 (1) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue indefinitely into the future, the Utility expects to continuously recover pension benefits. (2) In connection with the settlement agreement entered into among PG&E Corporation, the Utility, and the CPUC in 2003 to resolve the Utility’s 2001 proceeding under Chapter 11, the CPUC authorized the Utility to recover $1.2 billion of costs related to the Utility’s retained generation assets. The individual components of these regulatory assets are being amortized over the respective lives of the underlying generation facilities, consistent with the period over which the related revenues are recognized. (3) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. As of September 30, 2022 and December 31, 2021, $40 million and $49 million in COVID-19 related costs were recorded to CEMA regulatory assets, respectively. Recovery of CEMA costs is subject to CPUC review and approval. (4) Represents incremental wildfire claims and outside legal expenses related to the 2021 Dixie fire and the 2022 Mosquito fire. Recovery of WEMA costs is subject to CPUC review and approval. (5) Includes costs associated with the implementation of regulations and requirements adopted to protect the public from potential fire hazards associated with overhead power line facilities and nearby aerial communication facilities that have not been previously authorized in another proceeding. Recovery of FHPMA costs is subject to CPUC review and approval. (6) Includes costs associated with the 2019 WMP for the period from January 1, 2019 through June 4, 2019 and other incremental costs associated with fire risk mitigation. Recovery of FRMMA costs is subject to CPUC review and approval. (7) Includes costs associated with the 2019 WMP for the period from June 5, 2019 through December 31, 2019, the 2020 WMP for the period from January 1, 2020 through December 31, 2020, the 2021 WMP for the period from January 1, 2021 through December 31, 2021 and the 2022 WMP for the period from January 1, 2022 through September 30, 2022. Recovery of WMPMA costs is subject to CPUC review and approval. (8) Represents cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP. (9) Represents excess liability insurance premium costs recorded to RTBA and an adjustment mechanism for costs determined in other proceedings, as authorized in the 2020 GRC and 2019 GT&S rate cases, respectively. (10) Includes costs associated with certain wildfire mitigation activities for the period from January 1, 2020 through September 30, 2022. Noncurrent balance represents costs above 115% of adopted revenue requirements, which are subject to CPUC review and approval. (11) Represents vegetation management costs above 120% of adopted revenue requirements, which are subject to CPUC review and approval. The balance also includes a portion of vegetation management costs approved by the CPUC on August 22, 2022 for recovery over a 12-month period beginning in January 2023. (12) Includes costs associated with customer protections, including higher uncollectible costs related to the moratorium on electric and gas service disconnections program implementation costs, and higher accounts receivable financing costs for the period of March 4, 2020 to September 30, 2021. As of September 30, 2022, the Utility had recorded an under-collection of $10 million for small business customers. The remaining $22 million is associated with program costs and higher accounts receivable financing costs. As of December 31, 2021, the Utility had recorded an under-collection of $30 million for residential customers pending approval for recovery in the RUBA in addition to under-collections recorded for small business customers. The remaining $19 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs is subject to CPUC review and approval. (13) Includes costs associated with temporary generation, infrastructure upgrades, and community grid enablement programs associated with the implementation of microgrids. Amounts incurred are subject to CPUC review and approval. (14) Includes costs associated with long-term debt financing deemed recoverable under ASC 980 more than twelve months from the current date. These costs and their amortization period are reviewable and approved in the Utility’s cost of capital or other regulatory filings. (15) In connection with the SB 901 securitization, the CPUC authorized the issuance of one or more series of recovery bonds in connection with the post-emergence transaction to finance $7.5 billion of claims associated with the 2017 Northern California wildfires. The balance represents PG&E Wildfire Recovery Funding LLC’s right to recover $7.5 billion in wildfire claims costs associated with the 2017 Northern California wildfires, partially offset by the $2.0 billion in required upfront shareholder contributions to the customer credit trust, net of amortization since inception. The recovery bonds will be paid via fixed recovery charges, which is designed to recover the full principal amount of the recovery bonds along with any associated interest and financing costs. See Note 6 below. (16) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory asset also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 10 below. Regulatory Liabilities Long-term regulatory liabilities are comprised of the following: Balance at (in millions) September 30, 2022 December 31, 2021 Cost of removal obligations (1) $ 7,617 $ 7,306 Recoveries in excess of AROs (2) — 388 Public purpose programs (3) 1,117 946 Employee benefit plans (4) 1,239 1,229 Transmission tower wireless licenses (5) 433 446 SFGO sale (6) 284 343 SB 901 securitization (7) 5,380 — Other 851 1,341 Total long-term regulatory liabilities $ 16,921 $ 11,999 (1) Represents the cumulative differences between the recorded costs to remove assets and amounts collected in rates for expected costs to remove assets. (2) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 10 below. (3) Represents amounts received from customers designated for public purpose program costs expected to be incurred beyond the next 12 months, primarily related to energy efficiency programs. (4) Represents cumulative differences between incurred costs and amounts collected in rates for post-retirement medical, post-retirement life and long-term disability plans. (5) Represents the portion of the net proceeds received from the sale of transmission tower wireless licenses that will be returned to customers. Of the $433 million as of September 30, 2022, $302 million and $131 million will be refunded to FERC and CPUC jurisdiction customers, respectively. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K. (6) Represents the noncurrent portion of the net gain on the sale of the SFGO, which closed on September 17, 2021, that is being distributed to customers over a five-year period, beginning in 2022. (7) In connection with the SB 901 securitization, the Utility is required to return up to $7.59 billion of certain shareholder tax benefits to customers via periodic bill credits. The balance reflects qualifying shareholder tax benefits that PG&E Corporation has recognized to date, net of amortization since inception, and is expected to increase as additional qualifying amounts are recognized, including when the Fire Victim Trust sells additional shares, upon which time PG&E Corporation will recognize the associated tax benefits related to the sale. See Note 6 below. Regulatory Balancing Accounts Current regulatory balancing accounts receivable and payable are comprised of the following: Balance at (in millions) September 30, 2022 December 31, 2021 Electric distribution $ 246 — Gas distribution and transmission 496 — Energy procurement 398 310 Public purpose programs 333 321 Fire hazard prevention memorandum account (1) — 50 Fire risk mitigation memorandum account (1) — 14 Wildfire mitigation plan memorandum account (1) — 67 Wildfire mitigation balancing account — 91 General rate case memorandum accounts 119 468 Vegetation management balancing account 274 127 Insurance premium costs 369 605 Wildfire expense memorandum account — 440 Residential uncollectibles balancing accounts 109 127 Catastrophic event memorandum account 230 — Other 463 379 Total regulatory balancing accounts receivable $ 3,037 $ 2,999 (1) Interim rate relief associated with the 2020 WMCE application ceased in May 2022, fully exhausting the current balance of the memorandum accounts. Balance at (in millions) September 30, 2022 December 31, 2021 Electric distribution $ — $ 121 Electric transmission 493 24 Gas distribution and transmission 48 83 Energy procurement 202 211 Public purpose programs 298 259 Nuclear decommissioning adjustment mechanism 40 137 SFGO sale 114 21 Other 523 265 Total regulatory balancing accounts payable $ 1,718 $ 1,121 For more information, see Note 4 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Facilities The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings and availability under their credit facilities as of September 30, 2022: (in millions) Termination Maximum Facility Limit Loans Outstanding Letters of Credit Outstanding Facility Utility revolving credit facility June 2026 $ 4,000 (1) $ 1,370 $ 795 $ 1,835 Utility Receivables Securitization Program (2) September 2024 1,325 (3) 1,325 — — (3) PG&E Corporation revolving credit facility June 2024 500 — — 500 Total credit facilities $ 5,825 $ 2,695 $ 795 $ 2,335 (1) Includes a $1.5 billion letter of credit sublimit. (2) For more information on the Receivables Securitization Program, see “Variable Interest Entities” in Note 3 above. (3) The amount the Utility may borrow under the Receivables Securitization Program is limited to the lesser of the facility limit and the facility availability. The facility limit fluctuates between $1.0 billion and $1.5 billion depending on the time period. Further, the facility availability may vary based on the amount of accounts receivable that the Utility owns that are eligible for sale to the SPV and the portion of those accounts receivable that are sold to the SPV that are eligible for advances by the lenders under the Receivables Securitization Program. As of September 30, 2022, the Receivables Securitization Program had a maximum borrowing base of $1.3 billion and was fully drawn. Utility On March 31, 2022, the Utility prepaid in full the remaining portion of the 18-month tranche loans pursuant to an existing term loan credit agreement (the “2020 Utility Term Loan Credit Agreement”), in a principal amount equal to $298 million. As a result of such prepayment, the 2020 Utility Term Loan Credit Agreement was terminated and is no longer outstanding. On April 4, 2022, the Utility entered into a term loan credit agreement (the “2022A Utility Term Loan Credit Agreement”), comprised of 364-day tranche loans in the aggregate principal amount of $500 million (the “364-Day 2022A Tranche Loans”). The 364-Day 2022A Tranche Loans have a maturity date of April 3, 2023 and bear interest based on the Utility’s election of either (1) Term SOFR (plus a 0.10% credit spread adjustment) plus an applicable margin of 1.25%, or (2) the base rate plus an applicable margin of 0.25%. The Utility borrowed the entire amount of the 364-Day 2022A Tranche Loans on April 4, 2022. On July 21, 2022, the 364-Day 2022A Tranche Loans were prepaid in full with a portion of the proceeds from issuance of the Series 2022-B Recovery Bonds. As a result of such prepayment, the 2022A Utility Term Loan Credit Agreement was terminated and is no longer outstanding. On April 20, 2022, the Utility entered into a term loan credit agreement (the “2022B Utility Term Loan Credit Agreement”), comprised of 364-day tranche loans in the aggregate principal amount of $125 million (the “364-Day 2022B Tranche Loans”) and two-year tranche loans in the aggregate principal amount of $400 million (the “2-Year 2022B Tranche Loans”). The 364-Day 2022B Tranche Loans have a maturity date of April 19, 2023 and the 2-Year 2022B Tranche Loans have a maturity date of April 19, 2024. The 364-Day 2022B Tranche Loans and the 2-Year 2022B Tranche Loans bear interest based on the Utility’s election of either (1) Term SOFR (plus a 0.10% credit spread adjustment) plus an applicable margin of 1.25%, or (2) the base rate plus an applicable margin of 0.25%. The Utility borrowed the entire amount of the 364-Day 2022B Tranche Loans and the 2-Year 2022B Tranche Loans on April 20, 2022. On April 20, 2022, the Utility entered into an amendment to the Receivables Securitization Program to, among other things, add an uncommitted incremental facility which, subject to certain conditions precedent, allows the SPV to request an increase in the facility limit by an additional $500 million to an aggregate amount of $1.5 billion. On August 12, 2022, the SPV made such a request to increase the facility limit, and the facility limit was subsequently increased to $1.5 billion on August 22, 2022. On September 30, 2022, the Utility entered into an amendment to the Receivables Securitization Program to, among other things, (i) extend the scheduled termination date to September 30, 2024 and (ii) implement a seasonal facility limit. After giving effect to the amendment, the facility limit fluctuates between $1.0 billion and $1.5 billion based on the periods set forth in the amendment. As previously disclosed, on July 1, 2020, the Utility entered into the Utility Revolving Credit Agreement, which it subsequently amended. On October 4, 2022, the Utility further amended the Utility Revolving Credit Agreement to, among other things, (i) increase the aggregate commitments provided by the lenders to $4.4 billion and (ii) extend the maturity date of such agreement to June 22, 2027 (subject to a one-year extension at the option of the Utility). PG&E Corporation As previously disclosed, on July 1, 2020, PG&E Corporation entered into the Corporation Revolving Credit Agreement, which it subsequently amended. On October 4, 2022, PG&E Corporation further amended the Corporation Revolving Credit Agreement to, among other things, extend the maturity date of such agreement to June 22, 2025 (subject to a one-year extension at the option of PG&E Corporation). Long-Term Debt Issuances and Redemptions Utility On February 18, 2022, the Utility completed the sale of (i) $1 billion aggregate principal amount of 3.25% First Mortgage Bonds due 2024, (ii) $400 million aggregate principal amount of 4.20% First Mortgage Bonds due 2029, (iii) $450 million aggregate principal amount of 4.40% First Mortgage Bonds due 2032 and (iv) $550 million aggregate principal amount of 5.25% First Mortgage Bonds due 2052. The proceeds were used for the prepayment of a portion of the 18-month tranche loans pursuant to the 2020 Utility Term Loan Credit Agreement, in an amount equal to $1.0 billion, and for general corporate purposes. On June 8, 2022, the Utility issued $450 million aggregate principal amount of 4.950% First Mortgage Bonds due June 8, 2025, $450 million aggregate principal amount of 5.450% First Mortgage Bonds due June 15, 2027, and $600 million aggregate principal amount of 5.90% First Mortgage Bonds due June 15, 2032. The proceeds were used for the repayment of borrowings outstanding under the Utility’s revolving credit facility pursuant to the Utility Revolving Credit Agreement. Intercompany Note Payable As previously disclosed, on August 11, 2021, PG&E Corporation borrowed $145 million from the Utility under an interest bearing 364-day intercompany note due August 10, 2022. On June 17, 2022, this loan was repaid in full. SB 901, signed into law on September 21, 2018, requires the CPUC to establish a CHT, directing the CPUC to limit certain disallowances in the aggregate, so that they do not exceed the maximum amount that the Utility can pay without harming customers or materially impacting its ability to provide adequate and safe service. SB 901 also authorizes the CPUC to issue a financing order that permits recovery, through the issuance of recovery bonds (also referred to as “securitization”), of wildfire-related costs found to be just and reasonable by the CPUC and, only for the 2017 Northern California wildfires, any amounts in excess of the CHT. Pursuant to SB 901, on April 30, 2020, the Utility filed an application with the CPUC seeking authorization for a post-emergence transaction to finance, using securitization, $7.5 billion of 2017 wildfire claims costs and create a corresponding customer credit trust that is designed to not impact the net amounts billed to customers, with the proceeds of the securitization used to pay or reimburse the Utility for the payment of wildfire claims costs associated with the 2017 Northern California wildfires. On April 23, 2021, the CPUC issued a decision finding that $7.5 billion of the Utility’s 2017 catastrophic wildfire costs and expenses are stress test costs that may be financed through the issuance of recovery bonds pursuant to Public Utilities Code sections 850 et seq. (“CHT Decision”). As requested, the decision authorized the Utility to establish a customer credit trust funded by PG&E Corporation’s shareholders that will provide a monthly credit to customers that is anticipated to equal the fixed recovery charges such that the securitization is designed to be rate neutral to customers. Subject to retention of the CPUC’s existing jurisdiction, the decision adopts a transaction structure comprised of four elements: (1) an initial shareholder contribution to the customer credit trust of $2.0 billion, $1.0 billion of which was contributed in 2022 and $1.0 billion to be contributed in 2024; (2) up to $7.59 billion of additional contributions funded by certain shareholder tax benefits; (3) a single CPUC review of the balance of the customer credit trust in 2040, with a single contingent supplemental shareholder contribution, if needed, up to $775 million in 2040; and (4) sharing with customers 25% of any surplus of shareholder assets in the customer credit trust at the end of the life of the trust. On May 11, 2021, the CPUC issued a financing order authorizing the issuance of one or more series of recovery bonds in connection with the post-emergence transaction to finance, using securitization, the $7.5 billion of claims associated with the 2017 Northern California wildfires. On February 28, 2022, the decision finding $7.5 billion of stress test costs eligible for securitization and the financing order authorizing the issuance of up to $7.5 billion of recovery bonds became final and non-appealable. On May 10, 2022, PG&E Wildfire Recovery Funding LLC issued the Series 2022-A Recovery Bonds. The Series 2022-A Recovery Bonds were issued in five tranches: Tranche Amount Interest Rate Due Date A-1 $ 540,000,000 3.594 % June 1, 2032 A-2 $ 540,000,000 4.263 % June 1, 2038 A-3 $ 360,000,000 4.377 % June 3, 2041 A-4 $ 1,260,000,000 4.451 % December 1, 2049 A-5 $ 900,000,000 4.674 % December 1, 2053 The net proceeds were used to fund the redemption of all $500 million aggregate principal amount of the Utility’s Floating Rate First Mortgage Bonds due June 16, 2022 on May 16, 2022 and the redemption of all $2.5 billion aggregate principal amount of the Utility’s 1.75% First Mortgage Bonds due June 16, 2022 on May 16, 2022. The Utility used the remaining proceeds from the issuance of the Series 2022-A Recovery Bonds for the repayment of a portion of loans outstanding under the Utility’s revolving credit facility pursuant to the Utility Revolving Credit Agreement. On May 9, 2022, the Utility contributed $480 million to the customer credit trust. On July 19, 2022, the Utility contributed $520 million to the customer credit trust in full satisfaction of the first $1.0 billion as required by the CHT decision. On July 20, 2022, PG&E Wildfire Recovery Funding LLC issued the Series 2022-B Recovery Bonds. The Series 2022-B Recovery Bonds were issued in five tranches: Tranche Amount Interest Rate Due Date B-1 $ 613,080,000 4.022 % June 1, 2033 B-2 $ 600,000,000 4.722 % June 1, 2039 B-3 $ 500,040,000 5.081 % June 3, 2043 B-4 $ 1,149,960,000 5.212 % December 1, 2049 B-5 $ 1,036,920,000 5.099 % June 1, 2054 The net proceeds were used to fund (1) the redemption of all $1.5 billion aggregate principal amount of the Utility’s 1.367% First Mortgage Bonds due March 10, 2023 on July 25, 2022, (2) the prepayment of all $500 million of loans outstanding under the 2022A Utility Term Loan Credit Agreement, and (3) the repayment of a portion of loans outstanding under the Utility’s revolving credit facility pursuant to the Utility Revolving Credit Agreement. The Utility also intends to use a portion of the remaining proceeds to fund the redemption of all $1.0 billion aggregate principal amount of the Utility’s 3.25% First Mortgage Bonds due 2024. Pursuant to the financing order, the Utility sold its right to receive revenues from the non-bypassable fixed recovery charge (“SB 901 Recovery Property”) to PG&E Wildfire Recovery Funding LLC, which, in turn, issued the recovery bonds secured by the SB 901 Recovery Property. The fixed recovery charge is designed to recover the full principal amount of the recovery bonds along with any associated interest and financing costs. In the context of the CHT decision, which is intended to insulate customers from the fixed recovery charge, there is a customer credit which is designed to equal the recovery bond principal, interest, and financing costs over the life of the recovery bonds. The customer credit is funded by the customer credit trust (see Note 10). The fixed recovery charges and customer credits are presented on a net basis in Operating Revenues in the Condensed Consolidated Statements of Income and had no net impact on Operating Revenues for the three and nine months ended September 30, 2022. Also pursuant to the CHT decision, during the quarter ended June 30, 2022, the Utility recorded a $5.5 billion SB 901 securitization regulatory asset (see Note 4), reflecting PG&E Wildfire Recovery Funding LLC’s right to recover $7.5 billion in wildfire claims costs associated with the 2017 Northern California wildfires, partially offset by the $2.0 billion in required upfront shareholder contributions to the customer credit trust. The Utility also recorded a $5.51 billion SB 901 securitization regulatory liability (see Note 4) during the quarter ended June 30, 2022, which represents certain shareholder tax benefits the Utility had recognized as of that date that will be returned to customers. As the Fire Victim Trust sells the remaining shares it holds of PG&E Corporation common stock, the SB 901 securitization regulatory liability will increase, reflecting the recognition of additional income tax benefits, up to $7.59 billion as required in the CHT decision. As these tax benefits are monetized, they will be contributed to the customer credit trust. The Utility expects to amortize the SB 901 securitization regulatory asset and liability over the life of the recovery bonds, with such amortization expense reflected in Operating and maintenance expense in the Condensed Consolidated Statements of Income. As a result of the initial recognition of the SB 901 securitization regulatory asset and liability, in the nine months ended September 30, 2022, the Utility recorded a $40 million pre-tax charge, reflected in SB 901 securitization charge, net in the Condensed Consolidated Statements of Income. The SB 901 securitization charge, net is expected to increase in future periods as the aforementioned tax benefits are recognized and recorded within deferred income taxes. The following table illustrates the financial statement impact upon establishment of the regulatory asset and liability: (in millions) SB 901 securitization regulatory assets $ 5,500 SB 901 securitization regulatory liability (5,540) SB 901 securitization charges, net $ (40) |
SB 901 SECURITIZATION AND CUSTO
SB 901 SECURITIZATION AND CUSTOMER CREDIT TRUST | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
SB 901 SECURITIZATION AND CUSTOMER CREDIT TRUST | DEBT Credit Facilities The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings and availability under their credit facilities as of September 30, 2022: (in millions) Termination Maximum Facility Limit Loans Outstanding Letters of Credit Outstanding Facility Utility revolving credit facility June 2026 $ 4,000 (1) $ 1,370 $ 795 $ 1,835 Utility Receivables Securitization Program (2) September 2024 1,325 (3) 1,325 — — (3) PG&E Corporation revolving credit facility June 2024 500 — — 500 Total credit facilities $ 5,825 $ 2,695 $ 795 $ 2,335 (1) Includes a $1.5 billion letter of credit sublimit. (2) For more information on the Receivables Securitization Program, see “Variable Interest Entities” in Note 3 above. (3) The amount the Utility may borrow under the Receivables Securitization Program is limited to the lesser of the facility limit and the facility availability. The facility limit fluctuates between $1.0 billion and $1.5 billion depending on the time period. Further, the facility availability may vary based on the amount of accounts receivable that the Utility owns that are eligible for sale to the SPV and the portion of those accounts receivable that are sold to the SPV that are eligible for advances by the lenders under the Receivables Securitization Program. As of September 30, 2022, the Receivables Securitization Program had a maximum borrowing base of $1.3 billion and was fully drawn. Utility On March 31, 2022, the Utility prepaid in full the remaining portion of the 18-month tranche loans pursuant to an existing term loan credit agreement (the “2020 Utility Term Loan Credit Agreement”), in a principal amount equal to $298 million. As a result of such prepayment, the 2020 Utility Term Loan Credit Agreement was terminated and is no longer outstanding. On April 4, 2022, the Utility entered into a term loan credit agreement (the “2022A Utility Term Loan Credit Agreement”), comprised of 364-day tranche loans in the aggregate principal amount of $500 million (the “364-Day 2022A Tranche Loans”). The 364-Day 2022A Tranche Loans have a maturity date of April 3, 2023 and bear interest based on the Utility’s election of either (1) Term SOFR (plus a 0.10% credit spread adjustment) plus an applicable margin of 1.25%, or (2) the base rate plus an applicable margin of 0.25%. The Utility borrowed the entire amount of the 364-Day 2022A Tranche Loans on April 4, 2022. On July 21, 2022, the 364-Day 2022A Tranche Loans were prepaid in full with a portion of the proceeds from issuance of the Series 2022-B Recovery Bonds. As a result of such prepayment, the 2022A Utility Term Loan Credit Agreement was terminated and is no longer outstanding. On April 20, 2022, the Utility entered into a term loan credit agreement (the “2022B Utility Term Loan Credit Agreement”), comprised of 364-day tranche loans in the aggregate principal amount of $125 million (the “364-Day 2022B Tranche Loans”) and two-year tranche loans in the aggregate principal amount of $400 million (the “2-Year 2022B Tranche Loans”). The 364-Day 2022B Tranche Loans have a maturity date of April 19, 2023 and the 2-Year 2022B Tranche Loans have a maturity date of April 19, 2024. The 364-Day 2022B Tranche Loans and the 2-Year 2022B Tranche Loans bear interest based on the Utility’s election of either (1) Term SOFR (plus a 0.10% credit spread adjustment) plus an applicable margin of 1.25%, or (2) the base rate plus an applicable margin of 0.25%. The Utility borrowed the entire amount of the 364-Day 2022B Tranche Loans and the 2-Year 2022B Tranche Loans on April 20, 2022. On April 20, 2022, the Utility entered into an amendment to the Receivables Securitization Program to, among other things, add an uncommitted incremental facility which, subject to certain conditions precedent, allows the SPV to request an increase in the facility limit by an additional $500 million to an aggregate amount of $1.5 billion. On August 12, 2022, the SPV made such a request to increase the facility limit, and the facility limit was subsequently increased to $1.5 billion on August 22, 2022. On September 30, 2022, the Utility entered into an amendment to the Receivables Securitization Program to, among other things, (i) extend the scheduled termination date to September 30, 2024 and (ii) implement a seasonal facility limit. After giving effect to the amendment, the facility limit fluctuates between $1.0 billion and $1.5 billion based on the periods set forth in the amendment. As previously disclosed, on July 1, 2020, the Utility entered into the Utility Revolving Credit Agreement, which it subsequently amended. On October 4, 2022, the Utility further amended the Utility Revolving Credit Agreement to, among other things, (i) increase the aggregate commitments provided by the lenders to $4.4 billion and (ii) extend the maturity date of such agreement to June 22, 2027 (subject to a one-year extension at the option of the Utility). PG&E Corporation As previously disclosed, on July 1, 2020, PG&E Corporation entered into the Corporation Revolving Credit Agreement, which it subsequently amended. On October 4, 2022, PG&E Corporation further amended the Corporation Revolving Credit Agreement to, among other things, extend the maturity date of such agreement to June 22, 2025 (subject to a one-year extension at the option of PG&E Corporation). Long-Term Debt Issuances and Redemptions Utility On February 18, 2022, the Utility completed the sale of (i) $1 billion aggregate principal amount of 3.25% First Mortgage Bonds due 2024, (ii) $400 million aggregate principal amount of 4.20% First Mortgage Bonds due 2029, (iii) $450 million aggregate principal amount of 4.40% First Mortgage Bonds due 2032 and (iv) $550 million aggregate principal amount of 5.25% First Mortgage Bonds due 2052. The proceeds were used for the prepayment of a portion of the 18-month tranche loans pursuant to the 2020 Utility Term Loan Credit Agreement, in an amount equal to $1.0 billion, and for general corporate purposes. On June 8, 2022, the Utility issued $450 million aggregate principal amount of 4.950% First Mortgage Bonds due June 8, 2025, $450 million aggregate principal amount of 5.450% First Mortgage Bonds due June 15, 2027, and $600 million aggregate principal amount of 5.90% First Mortgage Bonds due June 15, 2032. The proceeds were used for the repayment of borrowings outstanding under the Utility’s revolving credit facility pursuant to the Utility Revolving Credit Agreement. Intercompany Note Payable As previously disclosed, on August 11, 2021, PG&E Corporation borrowed $145 million from the Utility under an interest bearing 364-day intercompany note due August 10, 2022. On June 17, 2022, this loan was repaid in full. SB 901, signed into law on September 21, 2018, requires the CPUC to establish a CHT, directing the CPUC to limit certain disallowances in the aggregate, so that they do not exceed the maximum amount that the Utility can pay without harming customers or materially impacting its ability to provide adequate and safe service. SB 901 also authorizes the CPUC to issue a financing order that permits recovery, through the issuance of recovery bonds (also referred to as “securitization”), of wildfire-related costs found to be just and reasonable by the CPUC and, only for the 2017 Northern California wildfires, any amounts in excess of the CHT. Pursuant to SB 901, on April 30, 2020, the Utility filed an application with the CPUC seeking authorization for a post-emergence transaction to finance, using securitization, $7.5 billion of 2017 wildfire claims costs and create a corresponding customer credit trust that is designed to not impact the net amounts billed to customers, with the proceeds of the securitization used to pay or reimburse the Utility for the payment of wildfire claims costs associated with the 2017 Northern California wildfires. On April 23, 2021, the CPUC issued a decision finding that $7.5 billion of the Utility’s 2017 catastrophic wildfire costs and expenses are stress test costs that may be financed through the issuance of recovery bonds pursuant to Public Utilities Code sections 850 et seq. (“CHT Decision”). As requested, the decision authorized the Utility to establish a customer credit trust funded by PG&E Corporation’s shareholders that will provide a monthly credit to customers that is anticipated to equal the fixed recovery charges such that the securitization is designed to be rate neutral to customers. Subject to retention of the CPUC’s existing jurisdiction, the decision adopts a transaction structure comprised of four elements: (1) an initial shareholder contribution to the customer credit trust of $2.0 billion, $1.0 billion of which was contributed in 2022 and $1.0 billion to be contributed in 2024; (2) up to $7.59 billion of additional contributions funded by certain shareholder tax benefits; (3) a single CPUC review of the balance of the customer credit trust in 2040, with a single contingent supplemental shareholder contribution, if needed, up to $775 million in 2040; and (4) sharing with customers 25% of any surplus of shareholder assets in the customer credit trust at the end of the life of the trust. On May 11, 2021, the CPUC issued a financing order authorizing the issuance of one or more series of recovery bonds in connection with the post-emergence transaction to finance, using securitization, the $7.5 billion of claims associated with the 2017 Northern California wildfires. On February 28, 2022, the decision finding $7.5 billion of stress test costs eligible for securitization and the financing order authorizing the issuance of up to $7.5 billion of recovery bonds became final and non-appealable. On May 10, 2022, PG&E Wildfire Recovery Funding LLC issued the Series 2022-A Recovery Bonds. The Series 2022-A Recovery Bonds were issued in five tranches: Tranche Amount Interest Rate Due Date A-1 $ 540,000,000 3.594 % June 1, 2032 A-2 $ 540,000,000 4.263 % June 1, 2038 A-3 $ 360,000,000 4.377 % June 3, 2041 A-4 $ 1,260,000,000 4.451 % December 1, 2049 A-5 $ 900,000,000 4.674 % December 1, 2053 The net proceeds were used to fund the redemption of all $500 million aggregate principal amount of the Utility’s Floating Rate First Mortgage Bonds due June 16, 2022 on May 16, 2022 and the redemption of all $2.5 billion aggregate principal amount of the Utility’s 1.75% First Mortgage Bonds due June 16, 2022 on May 16, 2022. The Utility used the remaining proceeds from the issuance of the Series 2022-A Recovery Bonds for the repayment of a portion of loans outstanding under the Utility’s revolving credit facility pursuant to the Utility Revolving Credit Agreement. On May 9, 2022, the Utility contributed $480 million to the customer credit trust. On July 19, 2022, the Utility contributed $520 million to the customer credit trust in full satisfaction of the first $1.0 billion as required by the CHT decision. On July 20, 2022, PG&E Wildfire Recovery Funding LLC issued the Series 2022-B Recovery Bonds. The Series 2022-B Recovery Bonds were issued in five tranches: Tranche Amount Interest Rate Due Date B-1 $ 613,080,000 4.022 % June 1, 2033 B-2 $ 600,000,000 4.722 % June 1, 2039 B-3 $ 500,040,000 5.081 % June 3, 2043 B-4 $ 1,149,960,000 5.212 % December 1, 2049 B-5 $ 1,036,920,000 5.099 % June 1, 2054 The net proceeds were used to fund (1) the redemption of all $1.5 billion aggregate principal amount of the Utility’s 1.367% First Mortgage Bonds due March 10, 2023 on July 25, 2022, (2) the prepayment of all $500 million of loans outstanding under the 2022A Utility Term Loan Credit Agreement, and (3) the repayment of a portion of loans outstanding under the Utility’s revolving credit facility pursuant to the Utility Revolving Credit Agreement. The Utility also intends to use a portion of the remaining proceeds to fund the redemption of all $1.0 billion aggregate principal amount of the Utility’s 3.25% First Mortgage Bonds due 2024. Pursuant to the financing order, the Utility sold its right to receive revenues from the non-bypassable fixed recovery charge (“SB 901 Recovery Property”) to PG&E Wildfire Recovery Funding LLC, which, in turn, issued the recovery bonds secured by the SB 901 Recovery Property. The fixed recovery charge is designed to recover the full principal amount of the recovery bonds along with any associated interest and financing costs. In the context of the CHT decision, which is intended to insulate customers from the fixed recovery charge, there is a customer credit which is designed to equal the recovery bond principal, interest, and financing costs over the life of the recovery bonds. The customer credit is funded by the customer credit trust (see Note 10). The fixed recovery charges and customer credits are presented on a net basis in Operating Revenues in the Condensed Consolidated Statements of Income and had no net impact on Operating Revenues for the three and nine months ended September 30, 2022. Also pursuant to the CHT decision, during the quarter ended June 30, 2022, the Utility recorded a $5.5 billion SB 901 securitization regulatory asset (see Note 4), reflecting PG&E Wildfire Recovery Funding LLC’s right to recover $7.5 billion in wildfire claims costs associated with the 2017 Northern California wildfires, partially offset by the $2.0 billion in required upfront shareholder contributions to the customer credit trust. The Utility also recorded a $5.51 billion SB 901 securitization regulatory liability (see Note 4) during the quarter ended June 30, 2022, which represents certain shareholder tax benefits the Utility had recognized as of that date that will be returned to customers. As the Fire Victim Trust sells the remaining shares it holds of PG&E Corporation common stock, the SB 901 securitization regulatory liability will increase, reflecting the recognition of additional income tax benefits, up to $7.59 billion as required in the CHT decision. As these tax benefits are monetized, they will be contributed to the customer credit trust. The Utility expects to amortize the SB 901 securitization regulatory asset and liability over the life of the recovery bonds, with such amortization expense reflected in Operating and maintenance expense in the Condensed Consolidated Statements of Income. As a result of the initial recognition of the SB 901 securitization regulatory asset and liability, in the nine months ended September 30, 2022, the Utility recorded a $40 million pre-tax charge, reflected in SB 901 securitization charge, net in the Condensed Consolidated Statements of Income. The SB 901 securitization charge, net is expected to increase in future periods as the aforementioned tax benefits are recognized and recorded within deferred income taxes. The following table illustrates the financial statement impact upon establishment of the regulatory asset and liability: (in millions) SB 901 securitization regulatory assets $ 5,500 SB 901 securitization regulatory liability (5,540) SB 901 securitization charges, net $ (40) |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY At the Market Equity Distribution Program On April 30, 2021, PG&E Corporation entered into an Equity Distribution Agreement (“Equity Distribution Agreement”) with Barclays Capital Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC, as sales agents and as forward sellers (in such capacities as applicable, the “Agents” and the “Forward Sellers,” respectively), and Barclays Bank PLC, Bank of America, N.A., Credit Suisse Capital LLC and Wells Fargo Bank, National Association, as forward purchasers (the “Forward Purchasers”), establishing an at the market equity distribution program, pursuant to which PG&E Corporation, through the Agents, may offer and sell from time to time shares of PG&E Corporation’s common stock having an aggregate gross sales price of up to $400 million. PG&E Corporation has no obligation to offer or sell any of its common stock under the Equity Distribution Agreement and may at any time suspend offers under the Equity Distribution Agreement. The Equity Distribution Agreement provides that, in addition to the issuance and sale of shares of common stock by PG&E Corporation to or through the Agents, PG&E Corporation may enter into forward sale agreements (collectively, the “Forward Sale Agreements”) pursuant to which the relevant Forward Purchaser will borrow shares from third parties and, through its affiliated Forward Seller, offer a number of shares of common stock equal to the number of shares of common stock underlying the particular Forward Sale Agreement. During the nine months ended September 30, 2022, PG&E Corporation did not sell any shares pursuant to the Equity Distribution Agreement or any Forward Sale Agreement. As of September 30, 2022, there was $400 million available under PG&E Corporation’s At the Market Equity Distribution Program for future offerings. Ownership Restrictions in PG&E Corporation’s Amended Articles Under Section 382 of the IRC, if a corporation (or a consolidated group) undergoes an “ownership change,” net operating loss carryforwards and other tax attributes may be subject to certain limitations (which could limit PG&E Corporation or the Utility’s ability to use these deferred tax assets to offset taxable income). In general, an ownership change occurs if the aggregate stock ownership of certain shareholders (generally five percent shareholders, applying certain look-through and aggregation rules) increases by more than 50% over such shareholders’ lowest percentage ownership during the testing period (generally three years). The Amended Articles limit Transfers (as defined in the Amended Articles) that increase a person’s or entity’s (including certain groups of persons) ownership of PG&E Corporation’s equity securities to 4.75% or more prior to the Restriction Release Date (as defined in the Amended Articles) without approval by the Board of Directors of PG&E Corporation. On July 8, 2021, PG&E Corporation, the Utility, ShareCo and the Fire Victim Trust entered into the Share Exchange and Tax Matters Agreement, pursuant to which PG&E Corporation and the Utility made a “grantor trust” election for the Fire Victim Trust effective retroactively to the inception of the Fire Victim Trust. As a result of the grantor trust election, shares of PG&E Corporation common stock owned by the Fire Victim Trust are treated as held by the Utility and, in turn attributed to PG&E Corporation for income tax purposes. Consequently, any shares owned by the Fire Victim Trust, along with any shares owned by the Utility directly, are effectively excluded from the total number of outstanding equity securities when calculating a person’s Percentage Stock Ownership (as defined in the Amended Articles) for purposes of the 4.75% ownership limitation in the Amended Articles. Shares owned by ShareCo are also effectively excluded because ShareCo is a disregarded entity for income tax purposes. For example, although PG&E Corporation had 2,465,443,675 shares outstanding as of October 20, 2022, only 1,644,956,495 shares (that is, the number of outstanding shares of common stock less the number of shares held by the Fire Victim Trust, the Utility and ShareCo) count as outstanding for purposes of the ownership restrictions in the Amended Articles. As such, based on the total number of outstanding equity securities and taking into account the shares of PG&E Corporation common stock known to have been sold by the Fire Victim Trust as of October 20, 2022, a person’s effective Percentage Stock Ownership limitation for purposes of the Amended Articles as of October 20, 2022 was 3.16% of the outstanding shares. On January 31, 2022, April 14, 2022, and October 4, 2022, the Fire Victim Trust exchanged 40,000,000, 60,000,000, and 35,000,000 Plan Shares, respectively, for an equal number of New Shares in the manner contemplated by the Share Exchange and Tax Matters Agreement; in each case, the Fire Victim Trust thereafter reported that it sold the applicable New Shares. In the nine months ended September 30, 2022, the Fire Victim Trust’s sale of PG&E Corporation common stock in the aggregate amount of 100,000,000 shares resulted in an aggregate tax benefit of $337 million recorded in PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements. As of October 20, 2022, to the knowledge of PG&E Corporation, the Fire Victim Trust had sold 135,000,000 shares of PG&E Corporation common stock in the aggregate. As of the date of this report, it is more likely than not that PG&E Corporation has not undergone an ownership change and consequently, its net operating loss carryforwards and other tax attributes are not limited by Section 382 of the IRC. Dividends On December 20, 2017, the Boards of Directors of PG&E Corporation and the Utility suspended quarterly cash dividends on both PG&E Corporation’s and the Utility’s common stock, beginning the fourth quarter of 2017, as well as the Utility’s preferred stock, beginning the three-month period ending January 31, 2018. On February 8, 2022, the Board of Directors of the Utility authorized the payment of all cumulative and unpaid dividends on the Utility’s preferred stock as of January 31, 2022 totaling $59.1 million, which was paid on May 13, 2022, to holders of record on April 29, 2022 and declared a dividend on the Utility’s preferred stock totaling $3.5 million, which was paid on May 15, 2022, to holders of record on April 29, 2022. On September 15, 2022, the Board of Directors of the Utility declared dividends on its outstanding series of preferred stock totaling $3.5 million, to be payable on November 15, 2022, to holders of record on October 31, 2022. On June 15, 2022, the Board of Directors of the Utility also reinstated the dividend on the Utility’s common stock and declared a common stock dividend of $425 million that was paid to PG&E Corporation on June 17, 2022. On September 15, 2022, the Board of Directors of the Utility declared a common stock dividend of $425 million that was paid to PG&E Corporation on September 16, 2022. No dividend is payable until declared by the Board of Directors of the Utility. Subject to the dividend restrictions as described in Note 6 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K, any decision to declare and pay dividends in the future will be made at the discretion of the Board of Directors of PG&E Corporation and will depend on, among other things, results of operations, financial condition, cash requirements, contractual restrictions and other factors that the Board of Directors of PG&E Corporation may deem relevant. Pursuant to the Confirmation Order, PG&E Corporation may not pay dividends on shares of its common stock until it recognizes $6.2 billion in Non-GAAP Core Earnings following the Emergence Date. “Non-GAAP Core Earnings” means GAAP earnings adjusted for certain non-core items. PG&E Corporation currently is unable to predict when it will commence the payment of dividends on its common stock. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE PG&E Corporation’s basic earnings per common share (“EPS”) is calculated by dividing the income available for common shareholders by the weighted average number of common shares outstanding. PG&E Corporation applies the treasury stock method of reflecting the dilutive effect of outstanding share-based compensation in the calculation of diluted EPS. The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average common shares outstanding for calculating diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2022 2021 2022 2021 Income (loss) available for common shareholders $ 456 $ (1,091) $ 1,287 $ (574) Weighted average common shares outstanding, basic 1,987 1,985 1,987 1,985 Add incremental shares from assumed conversions: Employee share-based compensation 8 — 8 — Equity Units 137 — 137 — Weighted average common shares outstanding, diluted 2,132 1,985 2,132 1,985 Total income (loss) per common share, diluted $ 0.21 $ (0.55) $ 0.60 $ (0.29) All potentially dilutive securities were excluded from the calculation of outstanding common shares on a diluted basis in periods where PG&E Corporation has incurred a net loss. For each of the periods presented above, the calculation of outstanding common shares on a diluted basis excluded an insignificant amount of options and securities that were antidilutive. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Use of Derivative Instruments The Utility is exposed to commodity price risk as a result of its electricity and natural gas procurement activities. Procurement costs are recovered through rates. The Utility uses both derivative and non-derivative contracts to manage volatility in customer rates due to fluctuating commodity prices. Derivatives include contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded either on an exchange or over-the-counter. Derivatives are presented in the Utility’s Condensed Consolidated Balance Sheets and recorded at fair value and on a net basis in accordance with master netting arrangements for each counterparty. The fair value of derivative instruments is further offset by cash collateral paid or received where the right of offset and the intention to offset exist. Price risk management activities that meet the definition of derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets. These instruments are not held for speculative purposes and are subject to certain regulatory requirements. The Utility expects to fully recover through rates all costs related to derivatives under the applicable ratemaking mechanism in place as long as the Utility’s price risk management activities are carried out in accordance with CPUC directives. Therefore, all unrealized gains and losses associated with the change in fair value of these derivatives are deferred and recorded within the Utility’s regulatory assets and liabilities on the Condensed Consolidated Balance Sheets. Net realized gains or losses on commodity derivatives are recorded in the cost of electricity or the cost of natural gas with corresponding increases or decreases to regulatory balancing accounts for recovery from or refund to customers. The Utility elects the normal purchase and sale exception for eligible derivatives. Eligible derivatives are those that require physical delivery in quantities that are expected to be used by the Utility over a reasonable period in the normal course of business, and do not contain pricing provisions unrelated to the commodity delivered. These items are not reflected in the Condensed Consolidated Balance Sheets at fair value. Volume of Derivative Activity The volumes of the Utility’s outstanding derivatives were as follows: Contract Volume at Underlying Product Instruments September 30, 2022 December 31, 2021 Natural Gas (1) (MMBtus (2) ) Forwards, Futures and Swaps 215,106,533 173,361,635 Options 56,070,000 14,420,000 Electricity (Megawatt-hours) Forwards, Futures and Swaps 10,323,759 10,283,639 Options 215,600 288,000 Congestion Revenue Rights (3) 215,759,706 239,857,610 (1) Amounts shown are for the combined positions of the electric fuels and core gas supply portfolios. (2) Million British Thermal Units. (3) CRRs are financial instruments that enable the holders to manage variability in electric energy congestion charges due to transmission grid limitations. Presentation of Derivative Instruments in the Financial Statements As of September 30, 2022, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 104 $ (9) $ 70 $ 165 Other noncurrent assets – other 160 — — 160 Current liabilities – other (55) 9 15 (31) Noncurrent liabilities – other (151) — — (151) Total commodity risk $ 58 $ — $ 85 $ 143 As of December 31, 2021, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 58 $ (9) $ 152 $ 201 Other noncurrent assets – other 169 — — 169 Current liabilities – other (53) 9 18 (26) Noncurrent liabilities – other (216) — — (216) Total commodity risk $ (42) $ — $ 170 $ 128 Cash inflows and outflows associated with derivatives are included in operating cash flows on the Utility’s Condensed Consolidated Statements of Cash Flows. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS PG&E Corporation and the Utility measure their cash equivalents, trust assets, and price risk management instruments at fair value. A three-tier fair value hierarchy is established that prioritizes the inputs to valuation methodologies used to measure fair value: • Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Other inputs that are directly or indirectly observable in the marketplace. • Level 3 – Unobservable inputs which are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements At September 30, 2022 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 160 $ — $ — $ — $ 160 Fixed-income securities — 49 — — 49 Nuclear decommissioning trusts Short-term investments 103 — — — 103 Global equity securities 1,690 — — — 1,690 Fixed-income securities 1,057 806 — — 1,863 Assets measured at NAV — — — — 23 Total nuclear decommissioning trusts (2) 2,850 806 — — 3,679 Customer credit trust Short-term investments 7 — — — 7 Global equity securities 251 — — — 251 Fixed-income securities 180 436 — — 616 Total customer credit trust 438 436 — — 874 Price risk management instruments (Note 9) Electricity — 32 205 22 259 Gas — 27 — 39 66 Total price risk management instruments — 59 205 61 325 Rabbi trusts Short-term investments 25 — — — 25 Global equity securities 4 — — — 4 Fixed-income securities — 68 — — 68 Life insurance contracts — 66 — — 66 Total rabbi trusts 29 134 — — 163 Long-term disability trust Short-term investments 4 — — — 4 Assets measured at NAV — — — — 111 Total long-term disability trust 4 — — — 115 TOTAL ASSETS $ 3,481 $ 1,484 $ 205 $ 61 $ 5,365 Liabilities: Price risk management instruments (Note 9) Electricity $ — $ 20 $ 174 $ (22) $ 172 Gas — 12 — (2) 10 TOTAL LIABILITIES $ — $ 32 $ 174 $ (24) $ 182 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $530 million primarily related to deferred taxes on appreciation of investment value. Fair Value Measurements December 31, 2021 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 289 $ — $ — $ — $ 289 Nuclear decommissioning trusts Short-term investments 22 — — — 22 Global equity securities 2,504 — — — 2,504 Fixed-income securities 1,158 866 — — 2,024 Assets measured at NAV — — — — 31 Total nuclear decommissioning trusts (2) 3,684 866 — — 4,581 Price risk management instruments (Note 9) Electricity — 9 214 6 229 Gas — 4 — 137 141 Total price risk management instruments — 13 214 143 370 Rabbi trusts Fixed-income securities — 104 — — 104 Life insurance contracts — 76 — — 76 Total rabbi trusts — 180 — — 180 Long-term disability trust Short-term investments 6 — — — 6 Assets measured at NAV — — — — 132 Total long-term disability trust 6 — — — 138 TOTAL ASSETS $ 3,979 $ 1,059 $ 214 $ 143 $ 5,558 Liabilities: Price risk management instruments (Note 9) Electricity — 11 248 (24) 235 Gas — 10 — (3) 7 TOTAL LIABILITIES $ — $ 21 $ 248 $ (27) $ 242 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $783 million, primarily related to deferred taxes on appreciation of investment value. Valuation Techniques The following describes the valuation techniques used to measure the fair value of the assets and liabilities shown in the tables above. There are no restrictions on the terms and conditions upon which the investments may be redeemed. There were no material transfers between any levels for the three and nine months ended September 30, 2022 and 2021. Trust Assets Assets Measured at Fair Value In general, investments held in the trusts are exposed to various risks, such as interest rate, credit, and market volatility risks. Nuclear decommissioning trust assets, customer credit trust assets and other trust assets are composed primarily of equity and fixed-income securities and also include short-term investments that are money market funds classified as Level 1. Global equity securities primarily include investments in common stock that are valued based on quoted prices in active markets and are classified as Level 1. Fixed-income securities are primarily composed of U.S. government and agency securities, municipal securities, and other fixed-income securities, including corporate debt securities. U.S. government and agency securities primarily consist of U.S. Treasury securities that are classified as Level 1 because the fair value is determined by observable market prices in active markets. A market approach is generally used to estimate the fair value of fixed-income securities classified as Level 2 using evaluated pricing data such as broker quotes, for similar securities adjusted for observable differences. Significant inputs used in the valuation model generally include benchmark yield curves and issuer spreads. The external credit ratings, coupon rate, and maturity of each security are considered in the valuation model, as applicable. Assets Measured at NAV Using Practical Expedient Investments in the nuclear decommissioning trusts and the long-term disability trust that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy tables above. The fair value amounts are included in the tables above in order to reconcile to the amounts presented in the Condensed Consolidated Balance Sheets. These investments include commingled funds that are composed of equity securities traded publicly on exchanges as well as fixed-income securities that are composed primarily of U.S. government securities, credit securities and asset-backed securities. Price Risk Management Instruments Price risk management instruments include physical and financial derivative contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded either on an exchange or over-the-counter. Power purchase agreements, forwards, and swaps are valued using a discounted cash flow model. Exchange-traded futures that are valued using observable market forward prices for the underlying commodity are classified as Level 1. Over-the-counter forwards and swaps that are identical to exchange-traded futures, or are valued using forward prices from broker quotes that are corroborated with market data are classified as Level 2. Exchange-traded options are valued using observable market data and market-corroborated data and are classified as Level 2. Long-dated power purchase agreements that are valued using significant unobservable data are classified as Level 3. These Level 3 contracts are valued using either estimated basis adjustments from liquid trading points or techniques, including extrapolation from observable prices, when a contract term extends beyond a period for which market data is available. The Utility utilizes models to derive pricing inputs for the valuation of the Utility’s Level 3 instruments using pricing inputs from brokers and historical data. The Utility holds CRRs to hedge the financial risk of CAISO-imposed congestion charges in the day-ahead market. Limited market data is available in the CAISO auction and between auction dates; therefore, the Utility utilizes historical prices to forecast forward prices. CRRs are classified as Level 3. Level 3 Measurements and Uncertainty Analysis Inputs used and the fair value of Level 3 instruments are reviewed period-over-period and compared with market conditions to determine reasonableness. Significant increases or decreases in any of those inputs would result in a significantly higher or lower fair value, respectively. All reasonable costs related to Level 3 instruments are expected to be recoverable through rates; therefore, there is no impact to net income resulting from changes in the fair value of these instruments. See Note 9 above. Fair Value at (in millions) At September 30, 2022 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 162 $ 78 Market approach CRR auction prices $ (2,265.69) - 2,265.94 / 0.43 Power purchase agreements $ 43 $ 96 Discounted cash flow Forward prices $ (6.91) - 210.05 / 59.52 (1) Represents price per megawatt-hour. (2) Unobservable inputs were weighted by the relative fair value of the instruments. Fair Value at (in millions) At December 31, 2021 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 188 $ 93 Market approach CRR auction prices $ (40.77) - 2,265.94 / 0.40 Power purchase agreements $ 26 $ 155 Discounted cash flow Forward prices $ (7.97) - 256.20 / 47.17 (1) Represents price per megawatt-hour. (2) Unobservable inputs were weighted by the relative fair value of the instruments. Level 3 Reconciliation The following table presents the reconciliation for Level 3 price risk management instruments for the three and nine months ended September 30, 2022 and 2021, respectively: Price Risk Management Instruments (in millions) 2022 2021 Asset (Liability) balance as of July 1 $ 11 $ (18) Net realized and unrealized gains (losses): Included in regulatory assets and liabilities or balancing accounts (1) 20 (62) Asset (Liability) balance as of September 30 $ 31 $ (80) (1) The costs related to price risk management activities are recovered through rates. Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted. Price Risk Management Instruments (in millions) 2022 2021 Liability balance as of January 1 $ (34) $ (72) Net realized and unrealized gains (losses): Included in regulatory assets and liabilities or balancing accounts (1) 65 (8) Asset (Liability) balance as of September 30 $ 31 $ (80) (1) The costs related to price risk management activities are recovered through rates. Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted. Financial Instruments PG&E Corporation and the Utility use the following methods and assumptions in estimating fair value for financial instruments: the fair values of cash, net accounts receivable, short-term borrowings, accounts payable, customer deposits, and the Utility’s variable rate pollution control bond loan agreements approximate their carrying values as of September 30, 2022 and December 31, 2021, as they are short-term in nature. The carrying amount and fair value of PG&E Corporation’s and the Utility’s long-term debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values): At September 30, 2022 At December 31, 2021 (in millions) Carrying Amount Level 2 Fair Value Carrying Amount Level 2 Fair Value Debt (Note 5) PG&E Corporation $ 4,616 $ 4,302 $ 4,619 $ 4,796 Utility 33,726 27,420 31,816 35,803 Nuclear Decommissioning Trust Investments The following table provides a summary of equity securities and available-for-sale debt securities: (in millions) Amortized Total Total Total Fair As of September 30, 2022 Nuclear decommissioning trusts Short-term investments $ 103 $ — $ — $ 103 Global equity securities 427 1,314 (28) 1,713 Fixed-income securities 2,014 8 (159) 1,863 Total (1) $ 2,544 $ 1,322 $ (187) $ 3,679 As of December 31, 2021 Nuclear decommissioning trusts Short-term investments $ 22 $ — $ — $ 22 Global equity securities 479 2,066 (10) 2,535 Fixed-income securities 1,938 98 (12) 2,024 Total (1) $ 2,439 $ 2,164 $ (22) $ 4,581 (1) Represents amounts before deducting $530 million and $783 million as of September 30, 2022 and December 31, 2021, respectively, primarily related to deferred taxes on appreciation of investment value. The fair value of fixed-income securities by contractual maturity is as follows: As of (in millions) September 30, 2022 Less than 1 year $ 19 1–5 years 619 5–10 years 411 More than 10 years 814 Total maturities of fixed-income securities $ 1,863 The following table provides a summary of activity for the fixed-income and equity securities: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Proceeds from sales and maturities of nuclear decommissioning trust investments $ 766 $ 224 $ 2,135 $ 1,176 Gross realized gains on securities 21 21 158 150 Gross realized losses on securities (40) (2) (105) (18) Customer Credit Trust The following table provides a summary of equity securities and available-for-sale debt securities: (in millions) Amortized Total Total Total Fair As of September 30, 2022 Customer credit trust Short-term investments $ 7 $ — $ — $ 7 Global equity securities 284 2 (35) 251 Fixed-income securities 639 — (23) 616 Total $ 930 $ 2 $ (58) $ 874 The fair value of fixed-income securities by contractual maturity is as follows: As of (in millions) September 30, 2022 Less than 1 year $ — 1–5 years 169 5–10 years 162 More than 10 years 285 Total maturities of fixed-income securities $ 616 The following table provides a summary of activity for the fixed-income and equity securities: 2022 (in millions) Three Months Ended September 30, Nine Months Ended September 30, Proceeds from sales and maturities of customer credit trust investments $ 79 $ 79 Gross realized gains on securities 8 8 Gross realized losses on securities (1) (18) (18) (1) Includes $7 million of impaired debt securities which were written-down to their respective fair values during the three and nine months ended September 30, 2022. |
WILDFIRE-RELATED CONTINGENCIES
WILDFIRE-RELATED CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
WILDFIRE-RELATED CONTINGENCIES | WILDFIRE-RELATED CONTINGENCIES Liability Overview PG&E Corporation and the Utility have significant contingencies arising from their operations, including contingencies related to wildfires. A provision for a loss contingency is recorded when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. PG&E Corporation and the Utility evaluate which potential liabilities are probable and the related range of reasonably estimated losses and record a charge that reflects their best estimate or the lower end of the range, if there is no better estimate. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of losses is estimable, often involves a series of complex judgments about future events. Loss contingencies are reviewed quarterly, and estimates are adjusted to reflect the impact of all known information, such as negotiations (including those during mediations with claimants), discovery, settlements and payments, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. PG&E Corporation’s and the Utility’s provision for loss and expense excludes anticipated legal costs, which are expensed as incurred. PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows may be materially affected by the outcome of the following matters. The process for estimating losses associated with potential claims related to wildfires requires management to exercise significant judgment based on a number of assumptions and subjective factors, including the factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, including from potential claimants as litigation or resolution efforts progress, management estimates and assumptions regarding the potential financial impacts of wildfire events may change. Potential liabilities related to wildfires depend on various factors, including the cause of the fire, contributing causes of the fire (including alternative potential origins, weather- and climate-related issues, and forest management and fire suppression practices), the number, size and type of structures damaged or destroyed, the contents of such structures and other personal property damage, the number and types of trees damaged or destroyed, attorneys’ fees for claimants, the nature and extent of any personal injuries, including the loss of lives, the amount of fire suppression and clean-up costs, other damages the Utility may be responsible for if found negligent, and the amount of any penalties, fines, or restitution that may be imposed by courts or other governmental entities. Criminal charges have been filed against the Utility in connection with the 2020 Zogg fire. Under California law (including Penal Code section 1202.4), if the Utility were convicted of any of the charges, the sentencing court must order the Utility to “make restitution to the victim or victims in an amount established by court order” that is “sufficient to fully reimburse the victim or victims for every determined economic loss incurred as the result of” the Utility’s underlying conduct, in addition to interest and the victim’s or victims’ attorneys’ fees. This requirement for full reimbursement of economic loss is not waivable by either the government or the victims and is not offset by any compensation that the victims have received or may receive from their insurance carriers. If convicted of any of the charges, the Utility could be subject to fines, penalties, and restitution to victims for their economic losses (including property damage, medical and mental health expenses, lost wages, lost profits, attorneys’ fees and interest), as well as non-monetary remedies such as oversight requirements. In the event that the Utility were convicted of certain charges in connection with the 2020 Zogg fire, the Utility currently believes that, depending on which charges it were to be convicted of, its total losses associated with the fire would materially exceed the accrued estimated liabilities that PG&E Corporation and the Utility have recorded to reflect the lower end of the range of the reasonably estimable range of losses. The Utility is currently unable to determine a reasonable estimate of the amount of such additional losses. The Utility does not expect that any of its liability insurance would be available to cover restitution payments, if such payments were ordered by the court presiding over the criminal proceeding in connection with the 2020 Zogg fire. PG&E Corporation and the Utility are aware of numerous civil complaints related to the following wildfire events and expect that they may receive further such complaints. The complaints include claims based on multiple theories of liability, including inverse condemnation, negligence, violations of the Public Utilities Code, violations of the Health & Safety Code, premises liability, trespass, public nuisance and private nuisance. The plaintiffs in each action principally assert that PG&E Corporation’s and the Utility’s alleged failure to properly maintain, inspect, and de-energize their transmission lines was the cause of the relevant wildfire. The timing and outcome for resolution of any such claims or investigations are uncertain. The Utility believes it will continue to receive additional information from potential claimants in connection with these wildfire events as litigation or resolution efforts progress. Any such additional information may potentially allow PG&E Corporation and the Utility to refine the estimates of their accrued losses and may result in changes to the accrual depending on the information received. PG&E Corporation and the Utility intend to vigorously defend themselves against both criminal charges and civil complaints. If the Utility’s facilities, such as its electric distribution and transmission lines, are judicially determined to be the substantial cause of the following matters, and the doctrine of inverse condemnation applies, the Utility could be liable for property damage, business interruption, interest and attorneys’ fees without having been found negligent. California courts have imposed liability under the doctrine of inverse condemnation in legal actions brought by property holders against utilities on the grounds that losses borne by the person whose property was damaged through a public use undertaking should be spread across the community that benefited from such undertaking, and based on the assumption that utilities have the ability to recover these costs through rates. Further, California courts have determined that the doctrine of inverse condemnation is applicable regardless of whether the CPUC ultimately allows recovery by the utility for any such costs. The CPUC may decide not to authorize cost recovery even if a court decision were to determine that the Utility is liable as a result of the application of the doctrine of inverse condemnation. In addition to claims for property damage, business interruption, interest and attorneys’ fees under inverse condemnation, PG&E Corporation and the Utility could be liable for fire suppression costs, evacuation costs, medical expenses, personal injury damages, punitive damages and other damages under other theories of liability in connection with the following wildfire events, including if PG&E Corporation or the Utility were found to have been negligent. 2019 Kincade Fire According to Cal Fire, on October 23, 2019 at approximately 9:27 p.m. Pacific Time, a wildfire began northeast of Geyserville in Sonoma County, California (the “2019 Kincade fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated March 3, 2020, 3:35 p.m. Pacific Time, the 2019 Kincade fire consumed 77,758 acres and resulted in no fatalities, four first responder injuries, 374 structures destroyed, and 60 structures damaged. In connection with the 2019 Kincade fire, state and local officials issued numerous mandatory evacuation orders and evacuation warnings. Based on County of Sonoma information, PG&E Corporation and the Utility understand that the geographic zones subject to either a mandatory evacuation order or an evacuation warning between October 23, 2019 and November 4, 2019 included approximately 200,000 persons. On July 16, 2020, Cal Fire issued a press release with its determination that the Utility’s equipment caused the 2019 Kincade fire. On April 6, 2021, the Sonoma County District Attorney’s Office (“the Sonoma D.A.”) filed the Kincade Complaint charging the Utility with five felonies and 28 misdemeanors related to the 2019 Kincade fire. On April 6, 2021, PG&E Corporation announced that it disputed the charges in the Kincade Complaint. It further announced that it would accept Cal Fire’s finding that a Utility transmission line caused the 2019 Kincade fire. On May 11, 2021, the Utility filed a demurrer to 25 of the 33 counts contained in the Kincade Complaint. At a hearing on September 9, 2021, the Sonoma County Superior Court overruled the demurrer. On January 28, 2022, the Sonoma D.A. filed the Kincade Amended Complaint, which replaced two felonies with five different felonies and dropped six misdemeanor counts. On April 8, 2022, the Utility and the Sonoma D.A. filed a civil stipulated judgment to resolve the criminal prosecution of the Utility in connection with the 2019 Kincade fire (the “Kincade Stipulation”) without the Utility admitting any liability. Subject to the terms and conditions of the Kincade Stipulation, the Utility will pay a total of $20.25 million, which will not be recoverable through rates. Pursuant to the Kincade Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving Sonoma County; (ii) take certain wildfire mitigation actions consistent with its WMP; and (iii) engage an independent compliance monitor for at least five years to monitor the Utility’s compliance with certain commitments under the Kincade Stipulation, including its commitments to carry out vegetation management and equipment inspections in Sonoma County consistent with its WMP. After the Kincade Stipulation was entered by the Sonoma County Superior Court, the Sonoma D.A. moved to dismiss the Kincade Amended Complaint with prejudice, and the court granted the motion on April 11, 2022. In the first quarter of 2022, PG&E Corporation and the Utility recorded $20.25 million within Other current liabilities and Other noncurrent liabilities in connection with the Kincade Stipulation. As of September 30, 2022, $1.25 million has been paid pursuant to the Kincade Stipulation. On December 2, 2021, the CPUC approved a settlement between the SED and the Utility (the “Kincade SED Settlement”). The Kincade SED Settlement resolves SED’s investigation into the 2019 Kincade fire and provides for the removal of approximately 70 transmission lines or portions of lines that are no longer in service and are de-energized but have not been removed as required by CPUC rules. The Kincade SED Settlement provides that the Utility (i) will pay $40 million to California’s General Fund; (ii) will remove permanently abandoned transmission lines over a ten-year period; and (iii) must incur $85 million of the costs of such work by December 31, 2024, and it may not seek recovery of this $85 million of costs. SED agreed to refrain from instituting enforcement proceedings against the Utility for not having removed the lines previously. The Kincade SED Settlement states that it does not constitute an admission by the Utility of violations of general orders or statutory requirements. In the first quarter of 2022, PG&E Corporation and the Utility recorded $40 million within Other current liabilities in connection with the Kincade SED Settlement. As of September 30, 2022, $20 million has been paid to California’s General Fund pursuant to the Kincade SED Settlement. For the $85 million of cost of removal that the Utility will not seek recovery, the Utility recorded such disallowances in the first quarter of 2022 upon identification of the facilities to be removed. On January 10, 2022, The Utility Reform Network (“TURN”) filed an application for rehearing of the Kincade SED Settlement. On January 25, 2022, the Utility filed an opposition to the application for rehearing. On April 21, 2022, the CPUC granted TURN’s application for the limited purpose of requiring SED to include in the decision approving the settlement an analysis of the appropriate penalty using the CPUC’s methodology and denied TURN’s application in all other respects. On July 14, 2022, the CPUC approved the SED settlement. As of October 20, 2022, PG&E Corporation and the Utility are aware of approximately 106 complaints on behalf of at least 2,670 plaintiffs related to the 2019 Kincade fire. The plaintiffs filed master complaints on July 16, 2021; PG&E Corporation’s and the Utility’s response was filed on August 16, 2021; and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. The court scheduled trial for November 7, 2022, which it vacated on October 11, 2022. In addition, on January 5, 2022, Cal Fire filed a complaint against the Utility in the coordinated proceeding seeking to recover approximately $90 million for fire suppression and other costs incurred in connection with the 2019 Kincade fire. The Utility filed an answer to Cal Fire’s complaint on February 4, 2022. On April 28, 2022, subrogation plaintiffs filed a motion for summary adjudication of their inverse condemnation cause of action in the coordinated proceeding. The court scheduled a hearing on this summary adjudication motion for August 5, 2022, which it vacated on July 29, 2022. On October 26, 2022, PG&E Corporation and the Utility entered an agreement with substantially all of the insurance subrogation plaintiffs to resolve their claims arising from the 2019 Kincade fire. Additionally, on July 20, 2022, PG&E Corporation and the Utility filed a motion for summary adjudication on individual plaintiffs’ claims for punitive damages. The court scheduled a hearing on this summary adjudication motion for October 7, 2022, which it vacated on October 6, 2022. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2019 Kincade fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $800 million as of December 31, 2021 (before available insurance). Based on the facts and circumstances available to PG&E Corporation and the Utility as of the date of filing the quarterly report on Form 10-Q for the quarter ended June 30, 2022, including the then-current status of settlement discussions with certain subrogation entities and individuals, PG&E Corporation and the Utility recorded an additional charge in the second quarter of 2022 for potential losses in connection with the 2019 Kincade fire of $150 million, for an aggregate liability of $950 million (before available insurance). The aggregate liability remained unchanged as of September 30, 2022. PG&E Corporation’s and the Utility’s accrued estimated losses of $950 million do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2019 Kincade fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 769 Accrued Losses 150 Payments (18) Balance at September 30, 2022 $ 901 The Utility has liability insurance coverage for third-party liability attributable to the 2019 Kincade fire in an aggregate amount of $430 million. As of September 30, 2022, the Utility recorded an insurance receivable for the full amount of $430 million. 2020 Zogg Fire According to Cal Fire, on September 27, 2020, at approximately 4:03 p.m. Pacific Time, a wildfire began in the area of Zogg Mine Road and Jenny Bird Lane, north of Igo in Shasta County, California (the “2020 Zogg fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated October 16, 2020, 3:08 p.m. Pacific Time, the 2020 Zogg fire consumed 56,338 acres and resulted in four fatalities, one injury, 204 structures destroyed, and 27 structures damaged. On March 22, 2021, Cal Fire issued a press release with its determination that the 2020 Zogg fire was caused by a pine tree contacting electrical facilities owned and operated by the Utility located north of the community of Igo. On September 24, 2021, the Shasta County District Attorney’s Office filed the Zogg Complaint charging the Utility with 11 felonies and 20 misdemeanors related to the 2020 Zogg fire, the 2020 Daniel fire, the 2020 Ponder fire, and the 2021 Woody fire. On September 24, 2021, PG&E Corporation and the Utility announced that they disputed the charges in the Zogg Complaint. They further announced that they would accept Cal Fire’s finding that a Utility electric line caused the 2020 Zogg fire, even though PG&E Corporation and the Utility did not have access to all of the evidence that Cal Fire gathered. On November 18, 2021, the Utility filed a demurrer to 10 of the 31 counts contained in the Zogg Complaint. At a hearing on May 2, 2022, the Shasta County Superior Court overruled the demurrer. On June 9, 2022, the Utility entered a plea of not guilty to all of the charges in the Zogg Complaint. The preliminary hearing is scheduled to begin on January 18, 2023. On October 25, 2022, the SED issued a proposed administrative enforcement order alleging that the Utility violated CPUC regulations and Public Utilities Code Section 451 in connection with the CPUC’s investigation of the 2020 Zogg fire. The proposed order recommends a penalty of $155 million. By November 21, 2022, the Utility must either agree to pay the penalty upon adoption of a final order by the CPUC or request a hearing on the proposed order. PG&E Corporation and the Utility believe it is probable that they will incur a loss, but the amount of that loss is not reasonably estimable at this time because the Utility intends to request a hearing to challenge the proposed order. Various other entities, which may include other law enforcement agencies, may also be investigating the fire. It is uncertain when any such investigations will be complete. As of October 20, 2022, PG&E Corporation and the Utility are aware of approximately 28 complaints on behalf of at least 496 plaintiffs related to the 2020 Zogg fire. The plaintiffs seek damages that include wrongful death, property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. The plaintiffs filed master complaints on August 6, 2021, and PG&E Corporation’s and the Utility’s answer was filed on September 7, 2021, and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. In addition, on March 18, 2022, Cal Fire filed a complaint against the Utility in the coordinated proceeding seeking to recover approximately $34.5 million for fire suppression and other costs incurred in connection with the 2020 Zogg fire. The Utility filed an answer to Cal Fire’s complaint on May 3, 2022. On October 4, 2022, the court granted the parties’ stipulated motion to continue the February 6, 2023 trial date to May 30, 2023. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2020 Zogg fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $375 million as of December 31, 2021 (before available insurance). The aggregate liability remained unchanged as of September 30, 2022. PG&E Corporation’s and the Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties, fines, or restitution that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2020 Zogg fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 211 Accrued Losses — Payments (137) Balance at September 30, 2022 $ 74 The Utility has liability insurance for third-party liability attributable to the 2020 Zogg fire in an aggregate amount of $611 million. As of September 30, 2022, the Utility recorded an insurance receivable for $347 million for probable insurance recoveries in connection with the 2020 Zogg fire, which equals the $375 million probable loss estimate less an initial self-insured retention of $60 million, plus $32 million in legal fees incurred. Recovery under the Utility’s wildfire insurance policies for the 2021 Dixie fire will reduce the amount of insurance proceeds available for the 2020 Zogg fire by the same amount up to $600 million and vice versa. 2021 Dixie Fire According to the Cal Fire Investigation Report on the 2021 Dixie fire (the “Cal Fire Investigation Report”), on July 13, 2021, at approximately 5:07 p.m. Pacific Time, a wildfire began in the Feather River Canyon near Cresta Dam (the “2021 Dixie fire”), located in the service territory of the Utility. According to the Cal Fire Investigation Report, the 2021 Dixie fire consumed 963,309 acres and resulted in 1,311 structures destroyed and 94 structures damaged (including 763 residential homes, 12 multi-family homes, 8 commercial residential homes, 148 nonresidential commercial structures, and 466 detached structures), and four first-responder injuries. The Cal Fire Investigation Report does not attribute a fatality that was previously published in an October 25, 2021 Cal Fire incident report to the 2021 Dixie fire. On January 4, 2022, Cal Fire issued a press release with its determination that the 2021 Dixie fire was caused by a tree contacting electrical distribution lines owned and operated by the Utility. On June 7, 2022, the Utility received a copy of the Cal Fire Investigation Report, which states that the fire ignited when a tree fell and contacted electrical distribution lines owned and operated by the Utility, and the Cal Fire Investigation Report has been made publicly available. The Cal Fire Investigation Report alleges that the Utility acted negligently in its response to the initial outage and fault that caused the 2021 Dixie fire. The Cal Fire Investigation Report also alleges that the subject tree had visible outward signs of damage and decay which would have been noticeable at the ground level, and that a brief visual inspection should have discovered the decay. The Utility has not been provided the report of Cal Fire’s expert arborist. Based on the information currently available to the Utility, including its inspection records, operating and inspection protocols and procedures, implementation of those protocols and procedures, and day-of-event response, the Utility believes its personnel acted reasonably (within the meaning of the applicable prudency standard discussed under “Regulatory Recovery” below) given the information available at the time and followed applicable policies and protocols both before ignition and in the day-of-event response. While an intervenor in a future cost recovery proceeding may argue the Cal Fire Investigation Report itself creates serious doubt with respect to the reasonableness of the Utility’s conduct, PG&E Corporation and the Utility do not believe the report identifies sufficient facts to shift the burden of proof applicable in a proceeding for cost recovery to the Utility. (See “Regulatory Recovery” and “Wildfire Fund under AB 1054”). PG&E Corporation and the Utility disagree with the allegations of the Cal Fire Investigation Report and plan to vigorously contest them. However, if the CPUC or the FERC were to reach conclusions similar to those of the Cal Fire Investigation Report, it may determine that the Utility had been imprudent, in which case some or all of its costs recorded to the WEMA would not be recoverable, the Utility would not be able to recover costs through FERC TO rates, or the Utility would be required to reimburse the Wildfire Fund for the costs and expenses that are allocated to it. The District Attorneys’ Offices of Butte County, Plumas County, Shasta County, Lassen County and Tehama County (the “North State Counties”), as well as the SED and OEIS, have been investigating the fire; various other entities, which may include other state and federal law enforcement agencies, may also be investigating the fire. The United States Attorney’s Office for the Eastern District of California issued a subpoena for documents as well. PG&E Corporation and the Utility are cooperating with the investigations. Except for the investigation by the District Attorneys of the North State Counties, it is uncertain when any other such investigations will be complete. PG&E Corporation and the Utility are also conducting their own investigation into the cause of the 2021 Dixie fire. This investigation is ongoing, and PG&E Corporation and the Utility do not have access to the evidence in the possession of Cal Fire or other third parties. On April 11, 2022, the Utility and the District Attorneys of the North State Counties filed a civil stipulated judgment to permanently resolve any potential state criminal prosecution of the Utility in connection with the 2021 Dixie fire (the “Dixie Stipulation”) without the Utility admitting any liability, and the Court entered the judgment on that same date. Subject to the terms and conditions of the Dixie Stipulation, the Utility will pay a total of $34.75 million, which will not be recoverable through rates. Pursuant to the Dixie Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving the North State Counties; (ii) take certain other wildfire mitigation actions consistent with its WMP; (iii) engage an independent compliance monitor for five years to monitor the Utility’s compliance with certain commitments under the Dixie Stipulation, including its commitments to carry out vegetation management and equipment inspections in the North State Counties consistent with its WMP; (iv) take good faith steps to initiate mediations with certain commercial timber landowners; and (v) initiate an expedited compensation program under which individuals whose homes, including mobile homes, were destroyed by the 2021 Dixie fire can submit an electronic claim form and supporting documentation, and the Utility will make them an offer to resolve their loss based on an objective, pre-determined valuation framework. The Dixie Stipulation also permanently resolved any potential state criminal prosecution of the Utility in connection with the 2021 Fly fire, which merged with the 2021 Dixie fire. In the first quarter of 2022, PG&E Corporation and the Utility recorded $34.75 million within Other current liabilities and Other noncurrent liabilities in connection with the Dixie Stipulation. As of September 30, 2022, $29.75 million has been paid pursuant to the Dixie Stipulation. As of October 20, 2022, PG&E Corporation and the Utility are aware of approximately 54 complaints on behalf of at least 1,444 plaintiffs related to the 2021 Dixie fire and expect that they may receive further such complaints. The plaintiffs seek damages that include property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. On July 27, 2022, the court set a trial date of June 5, 2023. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2021 Dixie fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $1.15 billion as of the year ended December 31, 2021 (before available recoveries). The aggregate liability remained unchanged as of September 30, 2022. PG&E Corporation’s and the Utility’s accrued estimated losses of $1.15 billion represent only claims based on the doctrine of inverse condemnation and do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies including for state or federal fire suppression costs and damages related to federal land, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. As noted above, the aggregate estimated liability for claims in connection with the 2021 Dixie fire does not include potential claims for fire suppression costs from federal, state, county, or local agencies or damage to land and vegetation in national parks or national forests. As to these damages, PG&E Corporation and the Utility have not concluded that a loss is probable. PG&E Corporation and the Utility are currently unable to reasonably estimate the range of possible losses for any such claims due to, among other factors, incomplete information as to facts pertinent to potential claims and defenses, as well as facts that would bear on the amount, type, and valuation of vegetation loss, potential reforestation, habitat loss, and other resources damaged or destroyed by the 2021 Dixie fire. PG&E Corporation and the Utility believe, however, that such losses could be significant with respect to fire suppression costs due to the size and duration of the 2021 Dixie fire and corresponding magnitude of fire suppression resources dedicated to fighting the 2021 Dixie fire and with respect to claims for damage to land and vegetation in national parks or national forests due to the very large number of acres of national park and national forests that were affected by the 2021 Dixie fire. According to the Cal Fire Investigation Report, over $650 million of costs had been incurred in suppressing the 2021 Dixie fire. The Utility currently estimates that the fire burned approximately 70,000 acres of national parks and approximately 685,000 acres of national forests. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2021 Dixie fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 1,150 Accrued Losses — Payments (32) Balance at September 30, 2022 $ 1,118 The Utility has liability insurance coverage for third-party liability in an aggregate amount of $900 million. Recovery under the Utility’s wildfire insurance policies for the 2020 Zogg fire will reduce the amount of insurance proceeds available for the |
OTHER CONTINGENCIES AND COMMITM
OTHER CONTINGENCIES AND COMMITMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER CONTINGENCIES AND COMMITMENTS | WILDFIRE-RELATED CONTINGENCIES Liability Overview PG&E Corporation and the Utility have significant contingencies arising from their operations, including contingencies related to wildfires. A provision for a loss contingency is recorded when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. PG&E Corporation and the Utility evaluate which potential liabilities are probable and the related range of reasonably estimated losses and record a charge that reflects their best estimate or the lower end of the range, if there is no better estimate. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of losses is estimable, often involves a series of complex judgments about future events. Loss contingencies are reviewed quarterly, and estimates are adjusted to reflect the impact of all known information, such as negotiations (including those during mediations with claimants), discovery, settlements and payments, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. PG&E Corporation’s and the Utility’s provision for loss and expense excludes anticipated legal costs, which are expensed as incurred. PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows may be materially affected by the outcome of the following matters. The process for estimating losses associated with potential claims related to wildfires requires management to exercise significant judgment based on a number of assumptions and subjective factors, including the factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, including from potential claimants as litigation or resolution efforts progress, management estimates and assumptions regarding the potential financial impacts of wildfire events may change. Potential liabilities related to wildfires depend on various factors, including the cause of the fire, contributing causes of the fire (including alternative potential origins, weather- and climate-related issues, and forest management and fire suppression practices), the number, size and type of structures damaged or destroyed, the contents of such structures and other personal property damage, the number and types of trees damaged or destroyed, attorneys’ fees for claimants, the nature and extent of any personal injuries, including the loss of lives, the amount of fire suppression and clean-up costs, other damages the Utility may be responsible for if found negligent, and the amount of any penalties, fines, or restitution that may be imposed by courts or other governmental entities. Criminal charges have been filed against the Utility in connection with the 2020 Zogg fire. Under California law (including Penal Code section 1202.4), if the Utility were convicted of any of the charges, the sentencing court must order the Utility to “make restitution to the victim or victims in an amount established by court order” that is “sufficient to fully reimburse the victim or victims for every determined economic loss incurred as the result of” the Utility’s underlying conduct, in addition to interest and the victim’s or victims’ attorneys’ fees. This requirement for full reimbursement of economic loss is not waivable by either the government or the victims and is not offset by any compensation that the victims have received or may receive from their insurance carriers. If convicted of any of the charges, the Utility could be subject to fines, penalties, and restitution to victims for their economic losses (including property damage, medical and mental health expenses, lost wages, lost profits, attorneys’ fees and interest), as well as non-monetary remedies such as oversight requirements. In the event that the Utility were convicted of certain charges in connection with the 2020 Zogg fire, the Utility currently believes that, depending on which charges it were to be convicted of, its total losses associated with the fire would materially exceed the accrued estimated liabilities that PG&E Corporation and the Utility have recorded to reflect the lower end of the range of the reasonably estimable range of losses. The Utility is currently unable to determine a reasonable estimate of the amount of such additional losses. The Utility does not expect that any of its liability insurance would be available to cover restitution payments, if such payments were ordered by the court presiding over the criminal proceeding in connection with the 2020 Zogg fire. PG&E Corporation and the Utility are aware of numerous civil complaints related to the following wildfire events and expect that they may receive further such complaints. The complaints include claims based on multiple theories of liability, including inverse condemnation, negligence, violations of the Public Utilities Code, violations of the Health & Safety Code, premises liability, trespass, public nuisance and private nuisance. The plaintiffs in each action principally assert that PG&E Corporation’s and the Utility’s alleged failure to properly maintain, inspect, and de-energize their transmission lines was the cause of the relevant wildfire. The timing and outcome for resolution of any such claims or investigations are uncertain. The Utility believes it will continue to receive additional information from potential claimants in connection with these wildfire events as litigation or resolution efforts progress. Any such additional information may potentially allow PG&E Corporation and the Utility to refine the estimates of their accrued losses and may result in changes to the accrual depending on the information received. PG&E Corporation and the Utility intend to vigorously defend themselves against both criminal charges and civil complaints. If the Utility’s facilities, such as its electric distribution and transmission lines, are judicially determined to be the substantial cause of the following matters, and the doctrine of inverse condemnation applies, the Utility could be liable for property damage, business interruption, interest and attorneys’ fees without having been found negligent. California courts have imposed liability under the doctrine of inverse condemnation in legal actions brought by property holders against utilities on the grounds that losses borne by the person whose property was damaged through a public use undertaking should be spread across the community that benefited from such undertaking, and based on the assumption that utilities have the ability to recover these costs through rates. Further, California courts have determined that the doctrine of inverse condemnation is applicable regardless of whether the CPUC ultimately allows recovery by the utility for any such costs. The CPUC may decide not to authorize cost recovery even if a court decision were to determine that the Utility is liable as a result of the application of the doctrine of inverse condemnation. In addition to claims for property damage, business interruption, interest and attorneys’ fees under inverse condemnation, PG&E Corporation and the Utility could be liable for fire suppression costs, evacuation costs, medical expenses, personal injury damages, punitive damages and other damages under other theories of liability in connection with the following wildfire events, including if PG&E Corporation or the Utility were found to have been negligent. 2019 Kincade Fire According to Cal Fire, on October 23, 2019 at approximately 9:27 p.m. Pacific Time, a wildfire began northeast of Geyserville in Sonoma County, California (the “2019 Kincade fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated March 3, 2020, 3:35 p.m. Pacific Time, the 2019 Kincade fire consumed 77,758 acres and resulted in no fatalities, four first responder injuries, 374 structures destroyed, and 60 structures damaged. In connection with the 2019 Kincade fire, state and local officials issued numerous mandatory evacuation orders and evacuation warnings. Based on County of Sonoma information, PG&E Corporation and the Utility understand that the geographic zones subject to either a mandatory evacuation order or an evacuation warning between October 23, 2019 and November 4, 2019 included approximately 200,000 persons. On July 16, 2020, Cal Fire issued a press release with its determination that the Utility’s equipment caused the 2019 Kincade fire. On April 6, 2021, the Sonoma County District Attorney’s Office (“the Sonoma D.A.”) filed the Kincade Complaint charging the Utility with five felonies and 28 misdemeanors related to the 2019 Kincade fire. On April 6, 2021, PG&E Corporation announced that it disputed the charges in the Kincade Complaint. It further announced that it would accept Cal Fire’s finding that a Utility transmission line caused the 2019 Kincade fire. On May 11, 2021, the Utility filed a demurrer to 25 of the 33 counts contained in the Kincade Complaint. At a hearing on September 9, 2021, the Sonoma County Superior Court overruled the demurrer. On January 28, 2022, the Sonoma D.A. filed the Kincade Amended Complaint, which replaced two felonies with five different felonies and dropped six misdemeanor counts. On April 8, 2022, the Utility and the Sonoma D.A. filed a civil stipulated judgment to resolve the criminal prosecution of the Utility in connection with the 2019 Kincade fire (the “Kincade Stipulation”) without the Utility admitting any liability. Subject to the terms and conditions of the Kincade Stipulation, the Utility will pay a total of $20.25 million, which will not be recoverable through rates. Pursuant to the Kincade Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving Sonoma County; (ii) take certain wildfire mitigation actions consistent with its WMP; and (iii) engage an independent compliance monitor for at least five years to monitor the Utility’s compliance with certain commitments under the Kincade Stipulation, including its commitments to carry out vegetation management and equipment inspections in Sonoma County consistent with its WMP. After the Kincade Stipulation was entered by the Sonoma County Superior Court, the Sonoma D.A. moved to dismiss the Kincade Amended Complaint with prejudice, and the court granted the motion on April 11, 2022. In the first quarter of 2022, PG&E Corporation and the Utility recorded $20.25 million within Other current liabilities and Other noncurrent liabilities in connection with the Kincade Stipulation. As of September 30, 2022, $1.25 million has been paid pursuant to the Kincade Stipulation. On December 2, 2021, the CPUC approved a settlement between the SED and the Utility (the “Kincade SED Settlement”). The Kincade SED Settlement resolves SED’s investigation into the 2019 Kincade fire and provides for the removal of approximately 70 transmission lines or portions of lines that are no longer in service and are de-energized but have not been removed as required by CPUC rules. The Kincade SED Settlement provides that the Utility (i) will pay $40 million to California’s General Fund; (ii) will remove permanently abandoned transmission lines over a ten-year period; and (iii) must incur $85 million of the costs of such work by December 31, 2024, and it may not seek recovery of this $85 million of costs. SED agreed to refrain from instituting enforcement proceedings against the Utility for not having removed the lines previously. The Kincade SED Settlement states that it does not constitute an admission by the Utility of violations of general orders or statutory requirements. In the first quarter of 2022, PG&E Corporation and the Utility recorded $40 million within Other current liabilities in connection with the Kincade SED Settlement. As of September 30, 2022, $20 million has been paid to California’s General Fund pursuant to the Kincade SED Settlement. For the $85 million of cost of removal that the Utility will not seek recovery, the Utility recorded such disallowances in the first quarter of 2022 upon identification of the facilities to be removed. On January 10, 2022, The Utility Reform Network (“TURN”) filed an application for rehearing of the Kincade SED Settlement. On January 25, 2022, the Utility filed an opposition to the application for rehearing. On April 21, 2022, the CPUC granted TURN’s application for the limited purpose of requiring SED to include in the decision approving the settlement an analysis of the appropriate penalty using the CPUC’s methodology and denied TURN’s application in all other respects. On July 14, 2022, the CPUC approved the SED settlement. As of October 20, 2022, PG&E Corporation and the Utility are aware of approximately 106 complaints on behalf of at least 2,670 plaintiffs related to the 2019 Kincade fire. The plaintiffs filed master complaints on July 16, 2021; PG&E Corporation’s and the Utility’s response was filed on August 16, 2021; and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. The court scheduled trial for November 7, 2022, which it vacated on October 11, 2022. In addition, on January 5, 2022, Cal Fire filed a complaint against the Utility in the coordinated proceeding seeking to recover approximately $90 million for fire suppression and other costs incurred in connection with the 2019 Kincade fire. The Utility filed an answer to Cal Fire’s complaint on February 4, 2022. On April 28, 2022, subrogation plaintiffs filed a motion for summary adjudication of their inverse condemnation cause of action in the coordinated proceeding. The court scheduled a hearing on this summary adjudication motion for August 5, 2022, which it vacated on July 29, 2022. On October 26, 2022, PG&E Corporation and the Utility entered an agreement with substantially all of the insurance subrogation plaintiffs to resolve their claims arising from the 2019 Kincade fire. Additionally, on July 20, 2022, PG&E Corporation and the Utility filed a motion for summary adjudication on individual plaintiffs’ claims for punitive damages. The court scheduled a hearing on this summary adjudication motion for October 7, 2022, which it vacated on October 6, 2022. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2019 Kincade fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $800 million as of December 31, 2021 (before available insurance). Based on the facts and circumstances available to PG&E Corporation and the Utility as of the date of filing the quarterly report on Form 10-Q for the quarter ended June 30, 2022, including the then-current status of settlement discussions with certain subrogation entities and individuals, PG&E Corporation and the Utility recorded an additional charge in the second quarter of 2022 for potential losses in connection with the 2019 Kincade fire of $150 million, for an aggregate liability of $950 million (before available insurance). The aggregate liability remained unchanged as of September 30, 2022. PG&E Corporation’s and the Utility’s accrued estimated losses of $950 million do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2019 Kincade fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 769 Accrued Losses 150 Payments (18) Balance at September 30, 2022 $ 901 The Utility has liability insurance coverage for third-party liability attributable to the 2019 Kincade fire in an aggregate amount of $430 million. As of September 30, 2022, the Utility recorded an insurance receivable for the full amount of $430 million. 2020 Zogg Fire According to Cal Fire, on September 27, 2020, at approximately 4:03 p.m. Pacific Time, a wildfire began in the area of Zogg Mine Road and Jenny Bird Lane, north of Igo in Shasta County, California (the “2020 Zogg fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated October 16, 2020, 3:08 p.m. Pacific Time, the 2020 Zogg fire consumed 56,338 acres and resulted in four fatalities, one injury, 204 structures destroyed, and 27 structures damaged. On March 22, 2021, Cal Fire issued a press release with its determination that the 2020 Zogg fire was caused by a pine tree contacting electrical facilities owned and operated by the Utility located north of the community of Igo. On September 24, 2021, the Shasta County District Attorney’s Office filed the Zogg Complaint charging the Utility with 11 felonies and 20 misdemeanors related to the 2020 Zogg fire, the 2020 Daniel fire, the 2020 Ponder fire, and the 2021 Woody fire. On September 24, 2021, PG&E Corporation and the Utility announced that they disputed the charges in the Zogg Complaint. They further announced that they would accept Cal Fire’s finding that a Utility electric line caused the 2020 Zogg fire, even though PG&E Corporation and the Utility did not have access to all of the evidence that Cal Fire gathered. On November 18, 2021, the Utility filed a demurrer to 10 of the 31 counts contained in the Zogg Complaint. At a hearing on May 2, 2022, the Shasta County Superior Court overruled the demurrer. On June 9, 2022, the Utility entered a plea of not guilty to all of the charges in the Zogg Complaint. The preliminary hearing is scheduled to begin on January 18, 2023. On October 25, 2022, the SED issued a proposed administrative enforcement order alleging that the Utility violated CPUC regulations and Public Utilities Code Section 451 in connection with the CPUC’s investigation of the 2020 Zogg fire. The proposed order recommends a penalty of $155 million. By November 21, 2022, the Utility must either agree to pay the penalty upon adoption of a final order by the CPUC or request a hearing on the proposed order. PG&E Corporation and the Utility believe it is probable that they will incur a loss, but the amount of that loss is not reasonably estimable at this time because the Utility intends to request a hearing to challenge the proposed order. Various other entities, which may include other law enforcement agencies, may also be investigating the fire. It is uncertain when any such investigations will be complete. As of October 20, 2022, PG&E Corporation and the Utility are aware of approximately 28 complaints on behalf of at least 496 plaintiffs related to the 2020 Zogg fire. The plaintiffs seek damages that include wrongful death, property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. The plaintiffs filed master complaints on August 6, 2021, and PG&E Corporation’s and the Utility’s answer was filed on September 7, 2021, and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. In addition, on March 18, 2022, Cal Fire filed a complaint against the Utility in the coordinated proceeding seeking to recover approximately $34.5 million for fire suppression and other costs incurred in connection with the 2020 Zogg fire. The Utility filed an answer to Cal Fire’s complaint on May 3, 2022. On October 4, 2022, the court granted the parties’ stipulated motion to continue the February 6, 2023 trial date to May 30, 2023. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2020 Zogg fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $375 million as of December 31, 2021 (before available insurance). The aggregate liability remained unchanged as of September 30, 2022. PG&E Corporation’s and the Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties, fines, or restitution that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2020 Zogg fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 211 Accrued Losses — Payments (137) Balance at September 30, 2022 $ 74 The Utility has liability insurance for third-party liability attributable to the 2020 Zogg fire in an aggregate amount of $611 million. As of September 30, 2022, the Utility recorded an insurance receivable for $347 million for probable insurance recoveries in connection with the 2020 Zogg fire, which equals the $375 million probable loss estimate less an initial self-insured retention of $60 million, plus $32 million in legal fees incurred. Recovery under the Utility’s wildfire insurance policies for the 2021 Dixie fire will reduce the amount of insurance proceeds available for the 2020 Zogg fire by the same amount up to $600 million and vice versa. 2021 Dixie Fire According to the Cal Fire Investigation Report on the 2021 Dixie fire (the “Cal Fire Investigation Report”), on July 13, 2021, at approximately 5:07 p.m. Pacific Time, a wildfire began in the Feather River Canyon near Cresta Dam (the “2021 Dixie fire”), located in the service territory of the Utility. According to the Cal Fire Investigation Report, the 2021 Dixie fire consumed 963,309 acres and resulted in 1,311 structures destroyed and 94 structures damaged (including 763 residential homes, 12 multi-family homes, 8 commercial residential homes, 148 nonresidential commercial structures, and 466 detached structures), and four first-responder injuries. The Cal Fire Investigation Report does not attribute a fatality that was previously published in an October 25, 2021 Cal Fire incident report to the 2021 Dixie fire. On January 4, 2022, Cal Fire issued a press release with its determination that the 2021 Dixie fire was caused by a tree contacting electrical distribution lines owned and operated by the Utility. On June 7, 2022, the Utility received a copy of the Cal Fire Investigation Report, which states that the fire ignited when a tree fell and contacted electrical distribution lines owned and operated by the Utility, and the Cal Fire Investigation Report has been made publicly available. The Cal Fire Investigation Report alleges that the Utility acted negligently in its response to the initial outage and fault that caused the 2021 Dixie fire. The Cal Fire Investigation Report also alleges that the subject tree had visible outward signs of damage and decay which would have been noticeable at the ground level, and that a brief visual inspection should have discovered the decay. The Utility has not been provided the report of Cal Fire’s expert arborist. Based on the information currently available to the Utility, including its inspection records, operating and inspection protocols and procedures, implementation of those protocols and procedures, and day-of-event response, the Utility believes its personnel acted reasonably (within the meaning of the applicable prudency standard discussed under “Regulatory Recovery” below) given the information available at the time and followed applicable policies and protocols both before ignition and in the day-of-event response. While an intervenor in a future cost recovery proceeding may argue the Cal Fire Investigation Report itself creates serious doubt with respect to the reasonableness of the Utility’s conduct, PG&E Corporation and the Utility do not believe the report identifies sufficient facts to shift the burden of proof applicable in a proceeding for cost recovery to the Utility. (See “Regulatory Recovery” and “Wildfire Fund under AB 1054”). PG&E Corporation and the Utility disagree with the allegations of the Cal Fire Investigation Report and plan to vigorously contest them. However, if the CPUC or the FERC were to reach conclusions similar to those of the Cal Fire Investigation Report, it may determine that the Utility had been imprudent, in which case some or all of its costs recorded to the WEMA would not be recoverable, the Utility would not be able to recover costs through FERC TO rates, or the Utility would be required to reimburse the Wildfire Fund for the costs and expenses that are allocated to it. The District Attorneys’ Offices of Butte County, Plumas County, Shasta County, Lassen County and Tehama County (the “North State Counties”), as well as the SED and OEIS, have been investigating the fire; various other entities, which may include other state and federal law enforcement agencies, may also be investigating the fire. The United States Attorney’s Office for the Eastern District of California issued a subpoena for documents as well. PG&E Corporation and the Utility are cooperating with the investigations. Except for the investigation by the District Attorneys of the North State Counties, it is uncertain when any other such investigations will be complete. PG&E Corporation and the Utility are also conducting their own investigation into the cause of the 2021 Dixie fire. This investigation is ongoing, and PG&E Corporation and the Utility do not have access to the evidence in the possession of Cal Fire or other third parties. On April 11, 2022, the Utility and the District Attorneys of the North State Counties filed a civil stipulated judgment to permanently resolve any potential state criminal prosecution of the Utility in connection with the 2021 Dixie fire (the “Dixie Stipulation”) without the Utility admitting any liability, and the Court entered the judgment on that same date. Subject to the terms and conditions of the Dixie Stipulation, the Utility will pay a total of $34.75 million, which will not be recoverable through rates. Pursuant to the Dixie Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving the North State Counties; (ii) take certain other wildfire mitigation actions consistent with its WMP; (iii) engage an independent compliance monitor for five years to monitor the Utility’s compliance with certain commitments under the Dixie Stipulation, including its commitments to carry out vegetation management and equipment inspections in the North State Counties consistent with its WMP; (iv) take good faith steps to initiate mediations with certain commercial timber landowners; and (v) initiate an expedited compensation program under which individuals whose homes, including mobile homes, were destroyed by the 2021 Dixie fire can submit an electronic claim form and supporting documentation, and the Utility will make them an offer to resolve their loss based on an objective, pre-determined valuation framework. The Dixie Stipulation also permanently resolved any potential state criminal prosecution of the Utility in connection with the 2021 Fly fire, which merged with the 2021 Dixie fire. In the first quarter of 2022, PG&E Corporation and the Utility recorded $34.75 million within Other current liabilities and Other noncurrent liabilities in connection with the Dixie Stipulation. As of September 30, 2022, $29.75 million has been paid pursuant to the Dixie Stipulation. As of October 20, 2022, PG&E Corporation and the Utility are aware of approximately 54 complaints on behalf of at least 1,444 plaintiffs related to the 2021 Dixie fire and expect that they may receive further such complaints. The plaintiffs seek damages that include property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. On July 27, 2022, the court set a trial date of June 5, 2023. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2021 Dixie fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $1.15 billion as of the year ended December 31, 2021 (before available recoveries). The aggregate liability remained unchanged as of September 30, 2022. PG&E Corporation’s and the Utility’s accrued estimated losses of $1.15 billion represent only claims based on the doctrine of inverse condemnation and do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies including for state or federal fire suppression costs and damages related to federal land, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. As noted above, the aggregate estimated liability for claims in connection with the 2021 Dixie fire does not include potential claims for fire suppression costs from federal, state, county, or local agencies or damage to land and vegetation in national parks or national forests. As to these damages, PG&E Corporation and the Utility have not concluded that a loss is probable. PG&E Corporation and the Utility are currently unable to reasonably estimate the range of possible losses for any such claims due to, among other factors, incomplete information as to facts pertinent to potential claims and defenses, as well as facts that would bear on the amount, type, and valuation of vegetation loss, potential reforestation, habitat loss, and other resources damaged or destroyed by the 2021 Dixie fire. PG&E Corporation and the Utility believe, however, that such losses could be significant with respect to fire suppression costs due to the size and duration of the 2021 Dixie fire and corresponding magnitude of fire suppression resources dedicated to fighting the 2021 Dixie fire and with respect to claims for damage to land and vegetation in national parks or national forests due to the very large number of acres of national park and national forests that were affected by the 2021 Dixie fire. According to the Cal Fire Investigation Report, over $650 million of costs had been incurred in suppressing the 2021 Dixie fire. The Utility currently estimates that the fire burned approximately 70,000 acres of national parks and approximately 685,000 acres of national forests. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2021 Dixie fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 1,150 Accrued Losses — Payments (32) Balance at September 30, 2022 $ 1,118 The Utility has liability insurance coverage for third-party liability in an aggregate amount of $900 million. Recovery under the Utility’s wildfire insurance policies for the 2020 Zogg fire will reduce the amount of insurance proceeds available for the |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue from Contracts with Customers The Utility recognizes revenues when electricity and natural gas services are delivered. The Utility records unbilled revenues for the estimated amount of energy delivered to customers but not yet billed at the end of the period. Unbilled revenues are included in accounts receivable on the Condensed Consolidated Balance Sheets. Rates charged to customers are based on CPUC and FERC authorized revenue requirements. Revenues can vary significantly from period to period because of seasonality, weather, and customer usage patterns. Regulatory Balancing Account Revenue The CPUC authorizes most of the Utility’s revenues in the Utility’s GRCs, which occur every four years. CPUC and FERC rates decouple authorized revenue from the volume of electricity and natural gas sales, so the Utility receives revenue equal to the amounts authorized by the relevant regulatory agencies. As a result, the volume of electricity and natural gas sold does not have a direct impact on PG&E Corporation’s and the Utility’s financial results. The Utility recognizes revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. Generally, electric and natural gas operating revenue is recognized ratably over the year. The Utility records a balancing account asset or liability for differences between customer billings and authorized revenue requirements that are probable of recovery or refund. The Utility also collects additional revenue requirements to recover costs that the CPUC has authorized the Utility to pass on to customers, including costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs. In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred. The Utility records a regulatory balancing account asset or liability for differences between incurred costs and customer billings or authorized revenue meant to recover those costs, to the extent that these differences are probable of recovery or refund. As a result, these differences have no impact on net income. |
Variable Interest Entities | A VIE is an entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or whose equity investors lack any characteristics of a controlling financial interest. An enterprise that has a controlling financial interest in a VIE is a primary beneficiary and is required to consolidate the VIE. Consolidated VIEs Receivables Securitization Program The SPV was created in connection with the Receivables Securitization Program and is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the Receivables Securitization Program, the Utility sells certain of its receivables and certain related rights to payment and obligations of the Utility with respect to such receivables, and certain other related rights to the SPV, which, in turn, obtains loans secured by the receivables from financial institutions (the “Lenders”). The pledged receivables and the corresponding debt are included in Accounts receivable, Other noncurrent assets, and Long-term debt, respectively, on the Condensed Consolidated Balance Sheets. The SPV is considered a VIE because its equity capitalization is insufficient to support its activities. The most significant activities that impact the economic performance of the SPV are decisions made to manage receivables. The Utility is considered the primary beneficiary and consolidates the SPV as it makes these decisions. No additional financial support was provided to the SPV during the nine months ended September 30, 2022 or is expected to be provided in the future that was not previously contractually required. As of September 30, 2022 and December 31, 2021, the SPV had net accounts receivable of $3.3 billion, and outstanding borrowings of $1.3 billion and $974 million, respectively, under the Receivables Securitization Program. For more information, see Note 5 below. AB 1054 Securitization PG&E Recovery Funding LLC is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the financing order for the first AB 1054 securitization transaction, the Utility sold its right to receive revenues from the non-bypassable wildfire hardening fixed recovery charge (“Recovery Property”) to PG&E Recovery Funding LLC, which, in turn, issued recovery bonds secured by the Recovery Property. On November 12, 2021, PG&E Recovery Funding LLC issued approximately $860 million of senior secured recovery bonds. The recovery bonds were issued in three tranches: (1) approximately $266 million with an interest rate of 1.46% and is due July 15, 2033, (2) approximately $160 million with an interest rate of 2.28% and is due January 15, 2038, and (3) approximately $434 million with an interest rate of 2.82% and is due July 15, 2048. The recovery bonds are scheduled to pay principal and interest semi-annually on January 15 and July 15 of each year. The final scheduled payment date is July 15, 2046. Amounts owed to bondholders are included in Long-term debt and Long-term debt, classified as current, on the Condensed Consolidated Balance Sheets. PG&E Recovery Funding LLC is considered a VIE because its equity capitalization is insufficient to support its operations. The most significant activities that impact the economic performance of PG&E Recovery Funding LLC are decisions made by the servicer of the Recovery Property. The Utility is considered the primary beneficiary and consolidates PG&E Recovery Funding LLC as it acts in this role as servicer. No additional financial support was provided to PG&E Recovery Funding LLC during the nine months ended September 30, 2022 or is expected to be provided in the future that was not previously contractually required. As of September 30, 2022 and December 31, 2021, PG&E Recovery Funding LLC had outstanding borrowings of $842 million and $860 million, respectively. SB 901 Securitization PG&E Wildfire Recovery Funding LLC is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the financing order for the SB 901 securitization transaction, the Utility sold its right to receive revenues from the non-bypassable fixed recovery charge (“SB 901 Recovery Property”) to PG&E Wildfire Recovery Funding LLC, which, in turn, issued recovery bonds secured by the SB 901 Recovery Property. PG&E Wildfire Recovery Funding LLC is considered a VIE because its equity capitalization is insufficient to support its operations. The most significant activities that impact the economic performance of PG&E Wildfire Recovery Funding LLC are decisions made by the servicer of the SB 901 Recovery Property. The Utility is considered the primary beneficiary and consolidates PG&E Wildfire Recovery Funding LLC as it acts in this role as servicer. No additional financial support was provided to PG&E Wildfire Recovery Funding LLC during the nine months ended September 30, 2022 or is expected to be provided in the future that was not previously contractually required. On May 10, 2022, PG&E Wildfire Recovery Funding LLC issued $3.6 billion aggregate principal amount of senior secured recovery bonds (the “Series 2022-A Recovery Bonds”). On July 20, 2022, PG&E Wildfire Recovery Funding LLC issued $3.9 billion aggregate principal amount of senior secured recovery bonds (the “Series 2022-B Recovery Bonds”). As of September 30, 2022, PG&E Wildfire Recovery Funding LLC had outstanding borrowings of $7.5 billion. For more information, see Note 6 below. Non-Consolidated VIEs Some of the counterparties to the Utility’s power purchase agreements are considered VIEs. Each of these VIEs was designed to own a power plant that would generate electricity for sale to the Utility. To determine whether the Utility was the primary beneficiary of any of these VIEs as of September 30, 2022, it assessed whether it absorbs any of the VIE’s expected losses or receives any portion of the VIE’s expected residual returns under the terms of the power purchase agreement, analyzed the variability in the VIE’s gross margin, and considered whether it had any decision-making rights associated with the activities that are most significant to the VIE’s performance, such as dispatch rights and operating and maintenance activities. The Utility’s financial obligation is limited to the amount the Utility pays for delivered electricity and capacity. The Utility did not have any decision-making rights associated with any of the activities that are most significant to the economic performance of any of these VIEs. Since the Utility was not the primary beneficiary of any of these VIEs as of September 30, 2022, it did not consolidate any of them. |
Pension and Other Post-Retirement Benefits | PG&E Corporation and the Utility sponsor a non-contributory defined benefit pension plan and cash balance plan. Both plans are included in “Pension Benefits” below. Post-retirement medical and life insurance plans are included in “Other Benefits” below.Non-service costs are reflected in Other income, net on the Condensed Consolidated Statements of Income. Service costs are reflected in Operating and maintenance on the Condensed Consolidated Statements of Income. |
Voluntary Separation Program | In the second quarter of 2022, PG&E Corporation and the Utility enacted a VSP, which provides separation benefits to approximately 470 eligible employees who voluntarily agreed to terminate their employment under the program. The VSP includes certain one-time cash payments and a credit to the employee’s retirement health savings account. PG&E Corporation and the Utility account for the VSP as a special termination benefit with any costs of the special separation benefits recorded upon each employee’s irrevocable acceptance. In the third quarter of 2022, PG&E Corporation and the Utility recorded $77 million in Operating and maintenance expense on the Condensed Consolidated Statements of Income related to the VSP one-time cash payments. In addition, during the third quarter of 2022, VSP-related credits to employee retirement health savings accounts totaled $22 million. This amount will be paid using the PG&E Corporation and Utility postretirement medical plan trusts’ assets and does not impact income. |
Financial Assets Measured at Amortized Cost – Credit Losses | PG&E Corporation and the Utility use the current expected credit loss model to estimate the expected lifetime credit loss on financial assets measured at amortized cost. PG&E Corporation and the Utility evaluate credit risk in their portfolio of financial assets quarterly. As of September 30, 2022, PG&E Corporation and the Utility identified the following significant categories of financial assets. Trade Receivables Trade receivables are represented by customer accounts. PG&E Corporation and the Utility record an allowance for doubtful accounts to recognize an estimate of expected lifetime credit losses. The allowance is determined on a collective basis based on the historical amounts written-off and an assessment of customer collectability. Furthermore, economic conditions are evaluated as part of the estimate of expected lifetime credit losses. During the nine months ended September 30, 2022, expected credit losses of $126 million were recorded in Operating and maintenance expense on the Condensed Consolidated Statements of Income for credit losses associated with trade and other receivables. The portion of expected credit losses that are deemed probable of recovery are deferred to the RUBA, CPPMA and a FERC regulatory asset. As of September 30, 2022, the RUBA current balancing accounts receivable balance was $109 million, and CPPMA and FERC long-term regulatory asset balances were $10 million and $10 million, respectively. Other Receivables and Available-For-Sale Debt Securities Insurance receivables are related to the liability insurance policies PG&E Corporation and the Utility carry. Insurance receivable risk is related to each insurance carrier’s risk of defaulting on their individual policies. Wildfire Fund receivables are the funds available from the statewide fund established under AB 1054 for payment of eligible claims related to the 2021 Dixie fire that exceed $1.0 billion and available insurance coverage. For more information, see Note 11 below. Wildfire Fund receivables risk is related to the Wildfire Fund’s durability, which is a measurement of the claim-paying capacity. Lastly, PG&E Corporation and the Utility are required to determine if the fair value is below the amortized cost basis for its available-for-sale debt securities (i.e., impairment). If such an impairment exists and it does not otherwise result in a write-down, then PG&E Corporation and the Utility must determine whether a portion of the impairment is a result of expected credit loss. |
Asset Retirement Obligations | PG&E Corporation and the Utility account for an ARO at fair value in the period during which the legal obligation is incurred if a reasonable estimate of fair value and its settlement date can be made. At the time of recording an ARO, the associated asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset. The Utility recognizes a regulatory asset or liability for the timing differences between the recognition of expenses and costs recovered through the ratemaking process. For more information, see Note 4 below. To estimate its liability, the Utility uses a discounted cash flow model based upon significant estimates and assumptions about future decommissioning costs, escalation rates, credit-adjusted risk-free rates, and the estimated date of decommissioning. For generation facilities, the Utility uses a probability-weighted, discounted cash flow model. For nuclear generation facilities, the model also considers multiple decommissioning start-year scenarios. The estimated future cash flows are discounted using a credit-adjusted risk-free rate that reflects the risk associated with the decommissioning obligation. The Utility performs detailed studies of its nuclear generation facilities every three years in conjunction with the NDCTP, and updates its nuclear AROs accordingly, unless circumstances warrant more frequent updates, based on its annual evaluation of cost escalation factors and probabilities assigned to various scenarios. |
Recently Adopted Accounting Standards and Accounting Standards Issued But Not Yet Adopted | Debt In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Use of Derivative Instruments | The Utility is exposed to commodity price risk as a result of its electricity and natural gas procurement activities. Procurement costs are recovered through rates. The Utility uses both derivative and non-derivative contracts to manage volatility in customer rates due to fluctuating commodity prices. Derivatives include contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded either on an exchange or over-the-counter. Derivatives are presented in the Utility’s Condensed Consolidated Balance Sheets and recorded at fair value and on a net basis in accordance with master netting arrangements for each counterparty. The fair value of derivative instruments is further offset by cash collateral paid or received where the right of offset and the intention to offset exist. Price risk management activities that meet the definition of derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets. These instruments are not held for speculative purposes and are subject to certain regulatory requirements. The Utility expects to fully recover through rates all costs related to derivatives under the applicable ratemaking mechanism in place as long as the Utility’s price risk management activities are carried out in accordance with CPUC directives. Therefore, all unrealized gains and losses associated with the change in fair value of these derivatives are deferred and recorded within the Utility’s regulatory assets and liabilities on the Condensed Consolidated Balance Sheets. Net realized gains or losses on commodity derivatives are recorded in the cost of electricity or the cost of natural gas with corresponding increases or decreases to regulatory balancing accounts for recovery from or refund to customers. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Revenues Disaggregated by Type of Customer | The following table presents the Utility’s revenues disaggregated by type of customer: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Electric Revenue from contracts with customers Residential $ 2,128 $ 1,962 $ 4,834 $ 4,778 Commercial 1,711 1,580 4,135 3,776 Industrial 534 467 1,206 1,099 Agricultural 777 655 1,477 1,238 Public street and highway lighting 20 18 57 53 Other (1) 115 (52) 26 169 Total revenue from contracts with customers - electric 5,285 4,630 11,735 11,113 Regulatory balancing accounts (2) (1,390) (449) 8 414 Total electric operating revenue $ 3,895 $ 4,181 $ 11,743 $ 11,527 Natural gas Revenue from contracts with customers Residential $ 392 $ 295 $ 2,243 $ 1,921 Commercial 162 102 703 486 Transportation service only 356 323 1,111 995 Other (1) 16 16 (251) (168) Total revenue from contracts with customers - gas 926 736 3,806 3,234 Regulatory balancing accounts (2) 573 548 761 635 Total natural gas operating revenue 1,499 1,284 4,567 3,869 Total operating revenues $ 5,394 $ 5,465 $ 16,310 $ 15,396 (1) This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items. (2) These amounts represent revenues authorized to be billed or refunded to customers. |
Schedule of Net Benefit Costs | The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2022 and 2021 were as follows: Pension Benefits Other Benefits Three Months Ended September 30, (in millions) 2022 2021 2022 2021 Service cost for benefits earned (1) $ 144 $ 147 $ 15 $ 15 Interest cost 173 161 13 13 Expected return on plan assets (297) (261) (32) (33) Amortization of prior service cost (1) (1) 2 3 Amortization of net actuarial (gain) loss — 1 (10) (8) Net periodic benefit cost 19 47 (12) (10) Regulatory account transfer (2) 64 37 — — Total $ 83 $ 84 $ (12) $ (10) (1) A portion of service costs is capitalized pursuant to GAAP. (2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates. Pension Benefits Other Benefits Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Service cost for benefits earned (1) $ 432 $ 440 $ 46 $ 47 Interest cost 519 484 40 39 Expected return on plan assets (892) (784) (97) (103) Amortization of prior service cost (3) (4) 5 10 Amortization of net actuarial (gain) loss 1 4 (30) (24) Net periodic benefit cost 57 140 (36) (31) Regulatory account transfer (2) 191 111 — — Total $ 248 $ 251 $ (36) $ (31) (1) A portion of service costs is capitalized pursuant to GAAP. (2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates. |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) consisted of the following: Pension Other Customer Credit Trust Total (in millions, net of income tax) Three Months Ended September 30, 2022 Beginning balance $ (33) $ 18 $ (5) $ (20) Other comprehensive income before reclassification Loss on investments (net of taxes of $0, $0 and $5, respectively) — — (12) (12) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $1, $0 and $0, respectively) — 2 — 2 Amortization of net actuarial gain (net of taxes of $0, $2 and $0, respectively) — (8) — (8) Regulatory account transfer (net of taxes of $1, $2 and $0, respectively) — 6 — 6 Net current period other comprehensive loss — — (12) (12) Ending balance $ (33) $ 18 $ (17) $ (32) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. Pension Benefits Other Total (in millions, net of income tax) Three Months Ended September 30, 2021 Beginning balance $ (38) $ 17 $ (21) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1) 2 1 Amortization of net actuarial (gain) loss (net of taxes of $0 and $3, respectively) 1 (5) (4) Regulatory account transfer (net of taxes of $1 and $2, respectively) 1 3 4 Net current period other comprehensive gain 1 — 1 Ending balance $ (37) $ 17 $ (20) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. Pension Other Customer Credit Trust Total (in millions, net of income tax) Nine Months Ended September 30, 2022 Beginning balance $ (33) $ 18 $ — $ (15) Other comprehensive income before reclassification Loss on investments (net of taxes of $0, $0 and $7, respectively) — — (17) (17) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $1, $1 and $0, respectively) (2) 4 — 2 Amortization of net actuarial (gain) loss (net of taxes of $0, $8 and $0, respectively) 1 (22) — (21) Regulatory account transfer (net of taxes of $1, $7 and $0, respectively) 1 18 — 19 Net current period other comprehensive gain (loss) — — (17) (17) Ending balance $ (33) $ 18 $ (17) $ (32) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. Pension Benefits Other Total (in millions, net of income tax) Nine Months Ended September 30, 2021 Beginning balance $ (39) $ 17 $ (22) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $1 and $3, respectively) (3) 7 4 Amortization of net actuarial (gain) loss (net of taxes of $1 and $7, respectively) 3 (17) (14) Regulatory account transfer (net of taxes of $1 and $4, respectively) 2 10 12 Net current period other comprehensive gain (loss) 2 — 2 Ending balance $ (37) $ 17 $ (20) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. |
REGULATORY ASSETS, LIABILITIE_2
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Long-Term Regulatory Assets | Long-term regulatory assets are comprised of the following: Balance at (in millions) September 30, 2022 December 31, 2021 Pension benefits (1) $ 519 $ 708 Environmental compliance costs 1,190 1,089 Utility retained generation (2) 98 133 Price risk management 151 216 Catastrophic event memorandum account (3) 998 1,119 Wildfire expense memorandum account (4) 417 347 Fire hazard prevention memorandum account (5) 77 75 Fire risk mitigation memorandum account (6) 122 44 Wildfire mitigation plan memorandum account (7) 623 424 Deferred income taxes (8) 2,527 1,849 Insurance premium costs (9) 168 207 Wildfire mitigation balancing account (10) 301 273 Vegetation management balancing account (11) 1,994 1,411 COVID-19 pandemic protection memorandum accounts (12) 32 49 Microgrid memorandum account (13) 192 163 Financing costs (14) 207 175 SB 901 securitization (15) 5,439 — AROs in excess of recoveries (16) 369 — Other 1,024 925 Total long-term regulatory assets $ 16,448 $ 9,207 (1) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue indefinitely into the future, the Utility expects to continuously recover pension benefits. (2) In connection with the settlement agreement entered into among PG&E Corporation, the Utility, and the CPUC in 2003 to resolve the Utility’s 2001 proceeding under Chapter 11, the CPUC authorized the Utility to recover $1.2 billion of costs related to the Utility’s retained generation assets. The individual components of these regulatory assets are being amortized over the respective lives of the underlying generation facilities, consistent with the period over which the related revenues are recognized. (3) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. As of September 30, 2022 and December 31, 2021, $40 million and $49 million in COVID-19 related costs were recorded to CEMA regulatory assets, respectively. Recovery of CEMA costs is subject to CPUC review and approval. (4) Represents incremental wildfire claims and outside legal expenses related to the 2021 Dixie fire and the 2022 Mosquito fire. Recovery of WEMA costs is subject to CPUC review and approval. (5) Includes costs associated with the implementation of regulations and requirements adopted to protect the public from potential fire hazards associated with overhead power line facilities and nearby aerial communication facilities that have not been previously authorized in another proceeding. Recovery of FHPMA costs is subject to CPUC review and approval. (6) Includes costs associated with the 2019 WMP for the period from January 1, 2019 through June 4, 2019 and other incremental costs associated with fire risk mitigation. Recovery of FRMMA costs is subject to CPUC review and approval. (7) Includes costs associated with the 2019 WMP for the period from June 5, 2019 through December 31, 2019, the 2020 WMP for the period from January 1, 2020 through December 31, 2020, the 2021 WMP for the period from January 1, 2021 through December 31, 2021 and the 2022 WMP for the period from January 1, 2022 through September 30, 2022. Recovery of WMPMA costs is subject to CPUC review and approval. (8) Represents cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP. (9) Represents excess liability insurance premium costs recorded to RTBA and an adjustment mechanism for costs determined in other proceedings, as authorized in the 2020 GRC and 2019 GT&S rate cases, respectively. (10) Includes costs associated with certain wildfire mitigation activities for the period from January 1, 2020 through September 30, 2022. Noncurrent balance represents costs above 115% of adopted revenue requirements, which are subject to CPUC review and approval. (11) Represents vegetation management costs above 120% of adopted revenue requirements, which are subject to CPUC review and approval. The balance also includes a portion of vegetation management costs approved by the CPUC on August 22, 2022 for recovery over a 12-month period beginning in January 2023. (12) Includes costs associated with customer protections, including higher uncollectible costs related to the moratorium on electric and gas service disconnections program implementation costs, and higher accounts receivable financing costs for the period of March 4, 2020 to September 30, 2021. As of September 30, 2022, the Utility had recorded an under-collection of $10 million for small business customers. The remaining $22 million is associated with program costs and higher accounts receivable financing costs. As of December 31, 2021, the Utility had recorded an under-collection of $30 million for residential customers pending approval for recovery in the RUBA in addition to under-collections recorded for small business customers. The remaining $19 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs is subject to CPUC review and approval. (13) Includes costs associated with temporary generation, infrastructure upgrades, and community grid enablement programs associated with the implementation of microgrids. Amounts incurred are subject to CPUC review and approval. (14) Includes costs associated with long-term debt financing deemed recoverable under ASC 980 more than twelve months from the current date. These costs and their amortization period are reviewable and approved in the Utility’s cost of capital or other regulatory filings. (15) In connection with the SB 901 securitization, the CPUC authorized the issuance of one or more series of recovery bonds in connection with the post-emergence transaction to finance $7.5 billion of claims associated with the 2017 Northern California wildfires. The balance represents PG&E Wildfire Recovery Funding LLC’s right to recover $7.5 billion in wildfire claims costs associated with the 2017 Northern California wildfires, partially offset by the $2.0 billion in required upfront shareholder contributions to the customer credit trust, net of amortization since inception. The recovery bonds will be paid via fixed recovery charges, which is designed to recover the full principal amount of the recovery bonds along with any associated interest and financing costs. See Note 6 below. |
Long-Term Regulatory Liabilities | Long-term regulatory liabilities are comprised of the following: Balance at (in millions) September 30, 2022 December 31, 2021 Cost of removal obligations (1) $ 7,617 $ 7,306 Recoveries in excess of AROs (2) — 388 Public purpose programs (3) 1,117 946 Employee benefit plans (4) 1,239 1,229 Transmission tower wireless licenses (5) 433 446 SFGO sale (6) 284 343 SB 901 securitization (7) 5,380 — Other 851 1,341 Total long-term regulatory liabilities $ 16,921 $ 11,999 (1) Represents the cumulative differences between the recorded costs to remove assets and amounts collected in rates for expected costs to remove assets. (2) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 10 below. (3) Represents amounts received from customers designated for public purpose program costs expected to be incurred beyond the next 12 months, primarily related to energy efficiency programs. (4) Represents cumulative differences between incurred costs and amounts collected in rates for post-retirement medical, post-retirement life and long-term disability plans. (5) Represents the portion of the net proceeds received from the sale of transmission tower wireless licenses that will be returned to customers. Of the $433 million as of September 30, 2022, $302 million and $131 million will be refunded to FERC and CPUC jurisdiction customers, respectively. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K. (6) Represents the noncurrent portion of the net gain on the sale of the SFGO, which closed on September 17, 2021, that is being distributed to customers over a five-year period, beginning in 2022. |
Current Regulatory Balancing Accounts Receivable | Current regulatory balancing accounts receivable and payable are comprised of the following: Balance at (in millions) September 30, 2022 December 31, 2021 Electric distribution $ 246 — Gas distribution and transmission 496 — Energy procurement 398 310 Public purpose programs 333 321 Fire hazard prevention memorandum account (1) — 50 Fire risk mitigation memorandum account (1) — 14 Wildfire mitigation plan memorandum account (1) — 67 Wildfire mitigation balancing account — 91 General rate case memorandum accounts 119 468 Vegetation management balancing account 274 127 Insurance premium costs 369 605 Wildfire expense memorandum account — 440 Residential uncollectibles balancing accounts 109 127 Catastrophic event memorandum account 230 — Other 463 379 Total regulatory balancing accounts receivable $ 3,037 $ 2,999 (1) Interim rate relief associated with the 2020 WMCE application ceased in May 2022, fully exhausting the current balance of the memorandum accounts. |
Current Regulatory Balancing Accounts Payable | Balance at (in millions) September 30, 2022 December 31, 2021 Electric distribution $ — $ 121 Electric transmission 493 24 Gas distribution and transmission 48 83 Energy procurement 202 211 Public purpose programs 298 259 Nuclear decommissioning adjustment mechanism 40 137 SFGO sale 114 21 Other 523 265 Total regulatory balancing accounts payable $ 1,718 $ 1,121 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings and availability under their credit facilities as of September 30, 2022: (in millions) Termination Maximum Facility Limit Loans Outstanding Letters of Credit Outstanding Facility Utility revolving credit facility June 2026 $ 4,000 (1) $ 1,370 $ 795 $ 1,835 Utility Receivables Securitization Program (2) September 2024 1,325 (3) 1,325 — — (3) PG&E Corporation revolving credit facility June 2024 500 — — 500 Total credit facilities $ 5,825 $ 2,695 $ 795 $ 2,335 (1) Includes a $1.5 billion letter of credit sublimit. (2) For more information on the Receivables Securitization Program, see “Variable Interest Entities” in Note 3 above. |
SB 901 SECURITIZATION AND CUS_2
SB 901 SECURITIZATION AND CUSTOMER CREDIT TRUST (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Series 2022-A Recovery Bonds were issued in five tranches: Tranche Amount Interest Rate Due Date A-1 $ 540,000,000 3.594 % June 1, 2032 A-2 $ 540,000,000 4.263 % June 1, 2038 A-3 $ 360,000,000 4.377 % June 3, 2041 A-4 $ 1,260,000,000 4.451 % December 1, 2049 A-5 $ 900,000,000 4.674 % December 1, 2053 Tranche Amount Interest Rate Due Date B-1 $ 613,080,000 4.022 % June 1, 2033 B-2 $ 600,000,000 4.722 % June 1, 2039 B-3 $ 500,040,000 5.081 % June 3, 2043 B-4 $ 1,149,960,000 5.212 % December 1, 2049 B-5 $ 1,036,920,000 5.099 % June 1, 2054 |
Schedule of Financial Statement Impact of Securitization | The following table illustrates the financial statement impact upon establishment of the regulatory asset and liability: (in millions) SB 901 securitization regulatory assets $ 5,500 SB 901 securitization regulatory liability (5,540) SB 901 securitization charges, net $ (40) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method | The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average common shares outstanding for calculating diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2022 2021 2022 2021 Income (loss) available for common shareholders $ 456 $ (1,091) $ 1,287 $ (574) Weighted average common shares outstanding, basic 1,987 1,985 1,987 1,985 Add incremental shares from assumed conversions: Employee share-based compensation 8 — 8 — Equity Units 137 — 137 — Weighted average common shares outstanding, diluted 2,132 1,985 2,132 1,985 Total income (loss) per common share, diluted $ 0.21 $ (0.55) $ 0.60 $ (0.29) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Volumes of Outstanding Derivative Contracts | The volumes of the Utility’s outstanding derivatives were as follows: Contract Volume at Underlying Product Instruments September 30, 2022 December 31, 2021 Natural Gas (1) (MMBtus (2) ) Forwards, Futures and Swaps 215,106,533 173,361,635 Options 56,070,000 14,420,000 Electricity (Megawatt-hours) Forwards, Futures and Swaps 10,323,759 10,283,639 Options 215,600 288,000 Congestion Revenue Rights (3) 215,759,706 239,857,610 (1) Amounts shown are for the combined positions of the electric fuels and core gas supply portfolios. (2) Million British Thermal Units. (3) CRRs are financial instruments that enable the holders to manage variability in electric energy congestion charges due to transmission grid limitations. |
Offsetting Liabilities | As of September 30, 2022, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 104 $ (9) $ 70 $ 165 Other noncurrent assets – other 160 — — 160 Current liabilities – other (55) 9 15 (31) Noncurrent liabilities – other (151) — — (151) Total commodity risk $ 58 $ — $ 85 $ 143 As of December 31, 2021, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 58 $ (9) $ 152 $ 201 Other noncurrent assets – other 169 — — 169 Current liabilities – other (53) 9 18 (26) Noncurrent liabilities – other (216) — — (216) Total commodity risk $ (42) $ — $ 170 $ 128 |
Offsetting Assets | As of September 30, 2022, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 104 $ (9) $ 70 $ 165 Other noncurrent assets – other 160 — — 160 Current liabilities – other (55) 9 15 (31) Noncurrent liabilities – other (151) — — (151) Total commodity risk $ 58 $ — $ 85 $ 143 As of December 31, 2021, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 58 $ (9) $ 152 $ 201 Other noncurrent assets – other 169 — — 169 Current liabilities – other (53) 9 18 (26) Noncurrent liabilities – other (216) — — (216) Total commodity risk $ (42) $ — $ 170 $ 128 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements At September 30, 2022 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 160 $ — $ — $ — $ 160 Fixed-income securities — 49 — — 49 Nuclear decommissioning trusts Short-term investments 103 — — — 103 Global equity securities 1,690 — — — 1,690 Fixed-income securities 1,057 806 — — 1,863 Assets measured at NAV — — — — 23 Total nuclear decommissioning trusts (2) 2,850 806 — — 3,679 Customer credit trust Short-term investments 7 — — — 7 Global equity securities 251 — — — 251 Fixed-income securities 180 436 — — 616 Total customer credit trust 438 436 — — 874 Price risk management instruments (Note 9) Electricity — 32 205 22 259 Gas — 27 — 39 66 Total price risk management instruments — 59 205 61 325 Rabbi trusts Short-term investments 25 — — — 25 Global equity securities 4 — — — 4 Fixed-income securities — 68 — — 68 Life insurance contracts — 66 — — 66 Total rabbi trusts 29 134 — — 163 Long-term disability trust Short-term investments 4 — — — 4 Assets measured at NAV — — — — 111 Total long-term disability trust 4 — — — 115 TOTAL ASSETS $ 3,481 $ 1,484 $ 205 $ 61 $ 5,365 Liabilities: Price risk management instruments (Note 9) Electricity $ — $ 20 $ 174 $ (22) $ 172 Gas — 12 — (2) 10 TOTAL LIABILITIES $ — $ 32 $ 174 $ (24) $ 182 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $530 million primarily related to deferred taxes on appreciation of investment value. Fair Value Measurements December 31, 2021 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 289 $ — $ — $ — $ 289 Nuclear decommissioning trusts Short-term investments 22 — — — 22 Global equity securities 2,504 — — — 2,504 Fixed-income securities 1,158 866 — — 2,024 Assets measured at NAV — — — — 31 Total nuclear decommissioning trusts (2) 3,684 866 — — 4,581 Price risk management instruments (Note 9) Electricity — 9 214 6 229 Gas — 4 — 137 141 Total price risk management instruments — 13 214 143 370 Rabbi trusts Fixed-income securities — 104 — — 104 Life insurance contracts — 76 — — 76 Total rabbi trusts — 180 — — 180 Long-term disability trust Short-term investments 6 — — — 6 Assets measured at NAV — — — — 132 Total long-term disability trust 6 — — — 138 TOTAL ASSETS $ 3,979 $ 1,059 $ 214 $ 143 $ 5,558 Liabilities: Price risk management instruments (Note 9) Electricity — 11 248 (24) 235 Gas — 10 — (3) 7 TOTAL LIABILITIES $ — $ 21 $ 248 $ (27) $ 242 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $783 million, primarily related to deferred taxes on appreciation of investment value. |
Fair Value Measurement Inputs and Valuation Techniques | Fair Value at (in millions) At September 30, 2022 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 162 $ 78 Market approach CRR auction prices $ (2,265.69) - 2,265.94 / 0.43 Power purchase agreements $ 43 $ 96 Discounted cash flow Forward prices $ (6.91) - 210.05 / 59.52 (1) Represents price per megawatt-hour. (2) Unobservable inputs were weighted by the relative fair value of the instruments. Fair Value at (in millions) At December 31, 2021 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 188 $ 93 Market approach CRR auction prices $ (40.77) - 2,265.94 / 0.40 Power purchase agreements $ 26 $ 155 Discounted cash flow Forward prices $ (7.97) - 256.20 / 47.17 (1) Represents price per megawatt-hour. |
Level 3 Reconciliation | The following table presents the reconciliation for Level 3 price risk management instruments for the three and nine months ended September 30, 2022 and 2021, respectively: Price Risk Management Instruments (in millions) 2022 2021 Asset (Liability) balance as of July 1 $ 11 $ (18) Net realized and unrealized gains (losses): Included in regulatory assets and liabilities or balancing accounts (1) 20 (62) Asset (Liability) balance as of September 30 $ 31 $ (80) (1) The costs related to price risk management activities are recovered through rates. Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted. Price Risk Management Instruments (in millions) 2022 2021 Liability balance as of January 1 $ (34) $ (72) Net realized and unrealized gains (losses): Included in regulatory assets and liabilities or balancing accounts (1) 65 (8) Asset (Liability) balance as of September 30 $ 31 $ (80) (1) The costs related to price risk management activities are recovered through rates. Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted. |
Carrying Amount and Fair Value of Financial Instruments | The carrying amount and fair value of PG&E Corporation’s and the Utility’s long-term debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values): At September 30, 2022 At December 31, 2021 (in millions) Carrying Amount Level 2 Fair Value Carrying Amount Level 2 Fair Value Debt (Note 5) PG&E Corporation $ 4,616 $ 4,302 $ 4,619 $ 4,796 Utility 33,726 27,420 31,816 35,803 |
Schedule of Unrealized Gains (Losses) Related to Available-for-sale Investments | The following table provides a summary of equity securities and available-for-sale debt securities: (in millions) Amortized Total Total Total Fair As of September 30, 2022 Nuclear decommissioning trusts Short-term investments $ 103 $ — $ — $ 103 Global equity securities 427 1,314 (28) 1,713 Fixed-income securities 2,014 8 (159) 1,863 Total (1) $ 2,544 $ 1,322 $ (187) $ 3,679 As of December 31, 2021 Nuclear decommissioning trusts Short-term investments $ 22 $ — $ — $ 22 Global equity securities 479 2,066 (10) 2,535 Fixed-income securities 1,938 98 (12) 2,024 Total (1) $ 2,439 $ 2,164 $ (22) $ 4,581 (1) Represents amounts before deducting $530 million and $783 million as of September 30, 2022 and December 31, 2021, respectively, primarily related to deferred taxes on appreciation of investment value. |
Schedule of Available for Sale Securities Table | The fair value of fixed-income securities by contractual maturity is as follows: As of (in millions) September 30, 2022 Less than 1 year $ 19 1–5 years 619 5–10 years 411 More than 10 years 814 Total maturities of fixed-income securities $ 1,863 The following table provides a summary of equity securities and available-for-sale debt securities: (in millions) Amortized Total Total Total Fair As of September 30, 2022 Customer credit trust Short-term investments $ 7 $ — $ — $ 7 Global equity securities 284 2 (35) 251 Fixed-income securities 639 — (23) 616 Total $ 930 $ 2 $ (58) $ 874 |
Schedule of Activity for Debt and Equity Securities | The following table provides a summary of activity for the fixed-income and equity securities: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Proceeds from sales and maturities of nuclear decommissioning trust investments $ 766 $ 224 $ 2,135 $ 1,176 Gross realized gains on securities 21 21 158 150 Gross realized losses on securities (40) (2) (105) (18) The fair value of fixed-income securities by contractual maturity is as follows: As of (in millions) September 30, 2022 Less than 1 year $ — 1–5 years 169 5–10 years 162 More than 10 years 285 Total maturities of fixed-income securities $ 616 The following table provides a summary of activity for the fixed-income and equity securities: 2022 (in millions) Three Months Ended September 30, Nine Months Ended September 30, Proceeds from sales and maturities of customer credit trust investments $ 79 $ 79 Gross realized gains on securities 8 8 Gross realized losses on securities (1) (18) (18) (1) Includes $7 million of impaired debt securities which were written-down to their respective fair values during the three and nine months ended September 30, 2022. |
WILDFIRE-RELATED CONTINGENCIES
WILDFIRE-RELATED CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Wildfire-Related Claims | The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2019 Kincade fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 769 Accrued Losses 150 Payments (18) Balance at September 30, 2022 $ 901 The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2020 Zogg fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 211 Accrued Losses — Payments (137) Balance at September 30, 2022 $ 74 The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2021 Dixie fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 1,150 Accrued Losses — Payments (32) Balance at September 30, 2022 $ 1,118 Total probable recoveries for the 2021 Dixie fire and the 2022 Mosquito fire as of September 30, 2022 are: Potential Recovery Source (in millions) 2022 Mosquito fire 2021 Dixie fire Insurance $ 40 $ 553 FERC TO rates 10 106 WEMA 50 367 Wildfire Fund — 150 Probable recoveries at September 30, 2022 $ 100 $ 1,176 The balances for insurance receivables with respect to wildfires are included in Other accounts receivable in PG&E Corporation’s and the Utility’s Condensed Consolidated Balance Sheets: Insurance Receivable (in millions) 2022 Mosquito fire 2021 Dixie fire 2020 Zogg fire 2019 Kincade fire Total Balance at December 31, 2021 $ — $ 563 $ 270 $ 414 $ 1,247 Accrued insurance recoveries (1) $ 40 (10) 10 — 40 Reimbursements — — (142) (25) (167) Balance at September 30, 2022 $ 40 $ 553 $ 138 $ 389 $ 1,120 |
OTHER CONTINGENCIES AND COMMI_2
OTHER CONTINGENCIES AND COMMITMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Environmental Remediation Liability | The Utility’s environmental remediation liability is primarily included in non-current liabilities on the Condensed Consolidated Balance Sheets and is comprised of the following: Balance at (in millions) September 30, 2022 December 31, 2021 Topock natural gas compressor station $ 286 $ 299 Hinkley natural gas compressor station 113 123 Former MGP sites owned by the Utility or third parties (1) 792 667 Utility-owned generation facilities (other than fossil fuel-fired), other facilities, and third-party disposal sites (2) 112 104 Fossil fuel-fired generation facilities and sites (3) 32 70 Total environmental remediation liability $ 1,335 $ 1,263 (1) Primarily driven by the following sites: San Francisco Beach Street, Vallejo, Napa, and San Francisco East Harbor. (2) Primarily driven by geothermal landfill and Shell Pond site. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 9 Months Ended |
Sep. 30, 2022 numberOfSegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments (segment) | 1 |
BANKRUPTCY FILING (Chapter 11 C
BANKRUPTCY FILING (Chapter 11 Claims Process) (Details) notice in Thousands | Dec. 31, 2021 notice |
Debt Instrument [Line Items] | |
Proofs of claims | 100 |
Subrogation Wildfire Trust and Fire Victim Trust | |
Debt Instrument [Line Items] | |
Proofs of claims | 80 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 10Q Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) employee | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) employee | Sep. 30, 2021 USD ($) | Jul. 20, 2022 USD ($) | May 10, 2022 USD ($) | Nov. 12, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Period for probable revenue recovery | 24 months | ||||||||
Monte carlo simulation, historical data, period | 12 years | ||||||||
Litigation liability, current | $ 193 | $ 193 | |||||||
Wildfire Fund asset | $ 461 | 461 | 461 | ||||||
Litigation contribution, net | 5,000 | 5,000 | |||||||
Amortization and accretion | 118 | $ 162 | 353 | $ 399 | |||||
Insurance receivable | 1,247 | $ 1,120 | $ 1,120 | ||||||
Number of eligible employees | employee | 470 | 470 | |||||||
Credit losses | $ 126 | ||||||||
Asset retirement obligation | 5,300 | $ 6,400 | |||||||
Decrease in decommissioning cost | 1,300 | ||||||||
Decommissioning cost estimate | 4,000 | ||||||||
Decrease in decommissioning cost, un-escalated | 378 | ||||||||
Decrease in decommissioning cost, escalated | 2,600 | ||||||||
Increase in asset retirement obligation | 925 | ||||||||
One-time Termination Benefits | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Severance costs | $ 77 | ||||||||
Credits to employee retirement health savings accounts | 22 | ||||||||
Regulatory Balancing Accounts Receivable | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Total regulatory balancing accounts | 2,999 | 3,037 | 3,037 | ||||||
Regulatory Balancing Accounts Receivable | Residential uncollectibles balancing accounts | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Total regulatory balancing accounts | 127 | 109 | 109 | ||||||
COVID-19 Pandemic protection memorandum account | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Regulatory assets | 10 | 10 | |||||||
FERC | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Regulatory assets | 10 | 10 | |||||||
2021 Dixie fire | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Insurance receivable | 563 | 553 | $ 553 | ||||||
Wildfire Fund Asset | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 15 years | ||||||||
Other Current Liabilities | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Wildfire fund, noncurrent | 1,100 | $ 1,100 | |||||||
Other noncurrent assets – other | 2021 Dixie fire | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Insurance receivable | 150 | 150 | |||||||
Pacific Gas & Electric Co (Utility) | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Wildfire Fund asset | 461 | 461 | 461 | ||||||
Amortization and accretion | 118 | $ 162 | 353 | $ 399 | |||||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Outstanding borrowings | 974 | 1,325 | 1,325 | ||||||
Receivables Securitization Program | PG&E AR Facility, LLC (SPV) | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Accounts receivable, net | 3,300 | 3,300 | 3,300 | ||||||
Recovery Bonds | Secured Debt | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Debt instrument, face amount | $ 860 | 842 | 842 | $ 860 | |||||
Recovery Bonds | Secured Debt | Tranche One | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Debt instrument, face amount | $ 266 | ||||||||
Interest rate | 1.46% | ||||||||
Recovery Bonds | Secured Debt | Tranche Two | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Debt instrument, face amount | $ 160 | ||||||||
Interest rate | 2.28% | ||||||||
Recovery Bonds | Secured Debt | Tranche Three | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Debt instrument, face amount | $ 434 | ||||||||
Interest rate | 2.82% | ||||||||
SB 901 Securitization | Secured Debt | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||||||
Debt instrument, face amount | $ 7,500 | $ 7,500 | $ 3,900 | $ 3,600 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenues Disaggregated by Type of Customer) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | $ 5,394 | $ 5,465 | $ 16,310 | $ 15,396 |
Electric | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 3,895 | 4,181 | 11,743 | 11,527 |
Natural gas | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 1,499 | 1,284 | 4,567 | 3,869 |
Pacific Gas & Electric Co (Utility) | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 5,394 | 5,465 | 16,310 | 15,396 |
Pacific Gas & Electric Co (Utility) | Electric | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 5,285 | 4,630 | 11,735 | 11,113 |
Regulatory balancing accounts | (1,390) | (449) | 8 | 414 |
Total operating revenues | 3,895 | 4,181 | 11,743 | 11,527 |
Pacific Gas & Electric Co (Utility) | Electric | Residential | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 2,128 | 1,962 | 4,834 | 4,778 |
Pacific Gas & Electric Co (Utility) | Electric | Commercial | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 1,711 | 1,580 | 4,135 | 3,776 |
Pacific Gas & Electric Co (Utility) | Electric | Industrial | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 534 | 467 | 1,206 | 1,099 |
Pacific Gas & Electric Co (Utility) | Electric | Agricultural | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 777 | 655 | 1,477 | 1,238 |
Pacific Gas & Electric Co (Utility) | Electric | Public street and highway lighting | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 20 | 18 | 57 | 53 |
Pacific Gas & Electric Co (Utility) | Electric | Other | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 115 | (52) | 26 | 169 |
Pacific Gas & Electric Co (Utility) | Natural gas | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 926 | 736 | 3,806 | 3,234 |
Regulatory balancing accounts | 573 | 548 | 761 | 635 |
Total operating revenues | 1,499 | 1,284 | 4,567 | 3,869 |
Pacific Gas & Electric Co (Utility) | Natural gas | Residential | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 392 | 295 | 2,243 | 1,921 |
Pacific Gas & Electric Co (Utility) | Natural gas | Commercial | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 162 | 102 | 703 | 486 |
Pacific Gas & Electric Co (Utility) | Natural gas | Transportation service only | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | 356 | 323 | 1,111 | 995 |
Pacific Gas & Electric Co (Utility) | Natural gas | Other | ||||
Disaggregation of Revenue [Abstract] | ||||
Total operating revenues | $ 16 | $ 16 | $ (251) | $ (168) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 144 | $ 147 | $ 432 | $ 440 |
Interest cost | 173 | 161 | 519 | 484 |
Expected return on plan assets | (297) | (261) | (892) | (784) |
Amortization of prior service cost | (1) | (1) | (3) | (4) |
Amortization of net actuarial loss | 0 | 1 | 1 | 4 |
Net periodic benefit cost | 19 | 47 | 57 | 140 |
Regulatory account transfer | 64 | 37 | 191 | 111 |
Net periodic benefit cost | 83 | 84 | 248 | 251 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 15 | 15 | 46 | 47 |
Interest cost | 13 | 13 | 40 | 39 |
Expected return on plan assets | (32) | (33) | (97) | (103) |
Amortization of prior service cost | 2 | 3 | 5 | 10 |
Amortization of net actuarial loss | (10) | (8) | (30) | (24) |
Net periodic benefit cost | (12) | (10) | (36) | (31) |
Regulatory account transfer | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ (12) | $ (10) | $ (36) | $ (31) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 22,019 | $ 21,799 | $ 21,223 | $ 21,253 |
Loss on investments | (12) | (17) | ||
Net current period other comprehensive gain (loss) | (12) | 1 | (17) | 2 |
Ending balance | 22,486 | 20,727 | 22,486 | 20,727 |
Pension Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Loss on investments | 0 | 0 | ||
Net current period other comprehensive gain (loss) | 0 | 1 | 0 | 2 |
Amount attributable to tax, before reclassification | 0 | 0 | ||
Other Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Loss on investments | 0 | 0 | ||
Net current period other comprehensive gain (loss) | 0 | 0 | 0 | 0 |
Amount attributable to tax, before reclassification | 0 | 0 | ||
Customer Credit Trust | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Loss on investments | (12) | (17) | ||
Net current period other comprehensive gain (loss) | (12) | (17) | ||
Amount attributable to tax, before reclassification | 5 | 7 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (20) | (21) | (15) | (22) |
Ending balance | (32) | (20) | (32) | (20) |
Accumulated Other Comprehensive Income (Loss) | Pension Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (33) | (38) | (33) | (39) |
Ending balance | (33) | (37) | (33) | (37) |
Accumulated Other Comprehensive Income (Loss) | Other Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 18 | 17 | 18 | 17 |
Ending balance | 18 | 17 | 18 | 17 |
Accumulated Other Comprehensive Income (Loss) | Customer Credit Trust | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (5) | 0 | ||
Ending balance | (17) | (17) | ||
Amortization of prior service cost | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 2 | 1 | 2 | 4 |
Amortization of prior service cost | Pension Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 0 | (1) | (2) | (3) |
Amount attributable to tax, reclassification | 1 | 0 | 1 | 1 |
Amortization of prior service cost | Other Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 2 | 2 | 4 | 7 |
Amount attributable to tax, reclassification | 0 | 1 | 1 | 3 |
Amortization of prior service cost | Customer Credit Trust | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 0 | 0 | ||
Amount attributable to tax, reclassification | 0 | 0 | ||
Amortization of net actuarial loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | (8) | (4) | (21) | (14) |
Amortization of net actuarial loss | Pension Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 0 | 1 | 1 | 3 |
Amount attributable to tax, reclassification | 0 | 0 | 0 | 1 |
Amortization of net actuarial loss | Other Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | (8) | (5) | (22) | (17) |
Amount attributable to tax, reclassification | 2 | 3 | 8 | 7 |
Amortization of net actuarial loss | Customer Credit Trust | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 0 | 0 | ||
Amount attributable to tax, reclassification | 0 | 0 | ||
Regulatory account transfer | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 6 | 4 | 19 | 12 |
Regulatory account transfer | Pension Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 0 | 1 | 1 | 2 |
Amount attributable to tax, reclassification | 1 | 1 | 1 | 1 |
Regulatory account transfer | Other Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 6 | 3 | 18 | 10 |
Amount attributable to tax, reclassification | 2 | $ 2 | 7 | $ 4 |
Regulatory account transfer | Customer Credit Trust | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amounts reclassified from other comprehensive income | 0 | 0 | ||
Amount attributable to tax, reclassification | $ 0 | $ 0 |
REGULATORY ASSETS, LIABILITIE_3
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Long-Term Regulatory Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | |
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 16,448 | $ 9,207 | ||
Utility retained generation asset costs | 1,200 | |||
Customer Harm Threshold, post-emergence transaction, recovery bonds issued | $ 7,500 | |||
Initial shareholder contribution | 2,000 | |||
Pension benefits | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 519 | 708 | ||
Environmental compliance costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 1,190 | 1,089 | ||
Utility retained generation | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 98 | 133 | ||
Price risk management | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 151 | 216 | ||
Catastrophic event memorandum account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 998 | 1,119 | ||
Catastrophic event memorandum account | COVID-19 | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 40 | 49 | ||
Wildfire expense memorandum account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 417 | 347 | ||
Fire hazard prevention memorandum account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 77 | 75 | ||
Fire risk mitigation memorandum account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 122 | 44 | ||
Wildfire mitigation plan memorandum account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 623 | 424 | ||
Deferred income taxes | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 2,527 | 1,849 | ||
Insurance premium costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 168 | 207 | ||
Wildfire mitigation balancing account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 301 | 273 | ||
Wildfire mitigation balancing account | Minimum | ||||
Regulatory Assets [Line Items] | ||||
Cost percentage threshold requiring approval | 115% | |||
Vegetation management balancing account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 1,994 | 1,411 | ||
Cost percentage threshold requiring approval | 120% | |||
COVID-19 Pandemic protection memorandum account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 32 | 49 | ||
COVID-19 pandemic protection memorandum account, undercollection bad debt | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 10 | 30 | ||
COVID-19 pandemic protection memorandum account, program and accounts receivable financing costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 22 | 19 | ||
Microgrid memorandum account | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 192 | 163 | ||
Financing costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 207 | 175 | ||
SB 901 Securitization | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 5,439 | $ 5,500 | 0 | |
Recoveries in excess of AROs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | 369 | 0 | ||
Other | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets | $ 1,024 | $ 925 |
REGULATORY ASSETS, LIABILITIE_4
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Long-Term Regulatory Liabilities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | $ 16,921 | $ 11,999 |
Proceeds received from sale of transmission tower wireless licenses, to be refunded to customers | 433 | |
Authorized amount of shareholder tax benefits to be returned | 7,590 | |
Federal Energy Regulatory Commission | ||
Regulatory Liabilities [Line Items] | ||
Proceeds received from sale of transmission tower wireless licenses, to be refunded to customers | 302 | |
California Public Utilities Commission | ||
Regulatory Liabilities [Line Items] | ||
Proceeds received from sale of transmission tower wireless licenses, to be refunded to customers | 131 | |
Cost of removal obligations | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 7,617 | 7,306 |
Recoveries in excess of AROs | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 0 | 388 |
Public purpose programs | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 1,117 | 946 |
Employee benefit plans | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 1,239 | 1,229 |
Transmission tower wireless licenses | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 433 | 446 |
SFGO sale | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 284 | 343 |
SB 901 Securitization | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 5,380 | 0 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | $ 851 | $ 1,341 |
REGULATORY ASSETS, LIABILITIE_5
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Current Regulatory Balancing Accounts, Net) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | $ 1,718 | $ 1,121 |
Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 3,037 | 2,999 |
Electric distribution | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 121 |
Electric distribution | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 246 | 0 |
Electric transmission | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 493 | 24 |
Gas distribution and transmission | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 48 | 83 |
Gas distribution and transmission | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 496 | 0 |
Energy procurement | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 202 | 211 |
Energy procurement | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 398 | 310 |
Public purpose programs | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 298 | 259 |
Public purpose programs | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 333 | 321 |
Fire hazard prevention memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 50 |
Fire risk mitigation memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 14 |
Wildfire mitigation plan memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 67 |
Wildfire mitigation balancing account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 91 |
General rate case memorandum accounts | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 119 | 468 |
Vegetation management balancing account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 274 | 127 |
Insurance premium costs | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 369 | 605 |
Wildfire expense memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 440 |
Residential uncollectibles balancing accounts | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 109 | 127 |
Nuclear decommissioning adjustment mechanism | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 40 | 137 |
Catastrophic event memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 230 | 0 |
SFGO sale | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 114 | 21 |
Other | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 523 | 265 |
Other | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | $ 463 | $ 379 |
DEBT (Outstanding Borrowings an
DEBT (Outstanding Borrowings and Availability) (Details) - USD ($) | Sep. 30, 2022 | Aug. 12, 2022 | Apr. 20, 2022 | Dec. 31, 2021 |
Revolving Credit Facility | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 5,825,000,000 | |||
Loans Outstanding | 2,695,000,000 | |||
Letters of Credit Outstanding | 795,000,000 | |||
Facility Availability | 2,335,000,000 | |||
Revolving Credit Facility | PG&E Corporation | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |||
Loans Outstanding | 0 | |||
Letters of Credit Outstanding | 0 | |||
Facility Availability | 500,000,000 | |||
Revolving Credit Facility | Pacific Gas & Electric Co (Utility) | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 4,000,000,000 | |||
Loans Outstanding | 1,370,000,000 | |||
Letters of Credit Outstanding | 795,000,000 | |||
Facility Availability | 1,835,000,000 | |||
Letter of credit sublimit | 1,500,000,000 | |||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 1,325,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | |
Loans Outstanding | 1,325,000,000 | $ 974,000,000 | ||
Letters of Credit Outstanding | 0 | |||
Facility Availability | 0 | |||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | Minimum | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 1,000,000,000 | |||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | Maximum | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | 9 Months Ended | ||||||||||
Oct. 04, 2022 | Apr. 20, 2022 | Apr. 04, 2022 | Mar. 31, 2022 | Feb. 18, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Aug. 12, 2022 | Jun. 08, 2022 | Dec. 31, 2021 | Aug. 11, 2021 | |
Debt [Line Items] | |||||||||||
Repayments of long-term debt | $ 5,980,000,000 | $ 21,000,000 | |||||||||
Proceeds from the sale of long-term debt | $ 1,000,000,000 | ||||||||||
Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Repayments of long-term debt | 5,959,000,000 | $ 0 | |||||||||
2020 Utility Term Loan Credit Agreement | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Repayments of long-term debt | $ 298,000,000 | ||||||||||
364-Day 2022A Tranche Loans | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | $ 500,000,000 | ||||||||||
Credit spread adjustment | 0.10% | ||||||||||
364-Day 2022A Tranche Loans | Pacific Gas & Electric Co (Utility) | SOFR | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
364-Day 2022A Tranche Loans | Pacific Gas & Electric Co (Utility) | Base Rate | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
364-Day 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | $ 125,000,000 | ||||||||||
Credit spread adjustment | 0.10% | ||||||||||
364-Day 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | SOFR | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
364-Day 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Base Rate | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
2-Year 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | $ 400,000,000 | ||||||||||
Credit spread adjustment | 0.10% | ||||||||||
2-Year 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | SOFR | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
2-Year 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Base Rate | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | 1,325,000,000 | $ 974,000,000 | |||||||||
Increase in facility limit | $ 500,000,000 | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | 1,325,000,000 | $ 1,500,000,000 | ||||||||
First Mortgage Bonds, Stated Maturity 2024 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||
Interest rate | 3.25% | ||||||||||
First Mortgage Bonds, Stated Maturity 2029 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||
Interest rate | 4.20% | ||||||||||
First Mortgage Bonds, Stated Maturity 2032 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 450,000,000 | ||||||||||
Interest rate | 4.40% | ||||||||||
First Mortgage Bonds, Stated Maturity 2052 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 550,000,000 | ||||||||||
Interest rate | 5.25% | ||||||||||
4.950% Bonds | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 450,000,000 | ||||||||||
Interest rate | 4.95% | ||||||||||
5.450% Bonds | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 450,000,000 | ||||||||||
Interest rate | 5.45% | ||||||||||
5.90% Bonds | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||
Interest rate | 5.90% | ||||||||||
Intercompany Loan | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 145,000,000 | ||||||||||
Revolving Credit Facility | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | 2,695,000,000 | ||||||||||
Line of credit facility, maximum borrowing capacity | 5,825,000,000 | ||||||||||
Revolving Credit Facility | Subsequent Event | |||||||||||
Debt [Line Items] | |||||||||||
Extension option, term | 1 year | ||||||||||
Revolving Credit Facility | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | 1,370,000,000 | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000,000 | ||||||||||
Revolving Credit Facility | Pacific Gas & Electric Co (Utility) | Subsequent Event | |||||||||||
Debt [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 4,400,000,000 | ||||||||||
Extension option, term | 1 year |
SB 901 SECURITIZATION AND CUS_3
SB 901 SECURITIZATION AND CUSTOMER CREDIT TRUST (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Jul. 19, 2022 | May 09, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 25, 2022 | Jul. 20, 2022 | Jun. 30, 2022 | May 16, 2022 | May 10, 2022 | Apr. 04, 2022 | Feb. 28, 2022 | Feb. 18, 2022 | Dec. 31, 2021 | May 11, 2021 | Apr. 23, 2021 | Apr. 30, 2020 | |
Debt [Line Items] | ||||||||||||||||||
Initial shareholder contribution | $ 2,000 | |||||||||||||||||
Regulatory assets | $ 16,448 | 16,448 | $ 9,207 | |||||||||||||||
Regulatory liabilities | 16,921 | 16,921 | 11,999 | |||||||||||||||
SB 901 securitization charges, net | 0 | $ 0 | 40 | $ 0 | ||||||||||||||
SB 901 Securitization | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Regulatory liabilities | 5,380 | 5,380 | 0 | |||||||||||||||
SB 901 Securitization | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Regulatory assets | 5,439 | 5,439 | $ 5,500 | 0 | ||||||||||||||
Regulatory liabilities | $ 5,510 | |||||||||||||||||
Pacific Gas & Electric Co (Utility) | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Regulatory assets | 16,448 | 16,448 | 9,207 | |||||||||||||||
Regulatory liabilities | 16,921 | 16,921 | $ 11,999 | |||||||||||||||
SB 901 securitization charges, net | 0 | $ 0 | 40 | $ 0 | ||||||||||||||
SB 901 Securitization | Secured Debt | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Initial shareholder contribution | 2,000 | |||||||||||||||||
Initial shareholder contribution, 2022 | 1,000 | |||||||||||||||||
Initial shareholder contribution, contributed in 2024 | 1,000 | |||||||||||||||||
Additional contributions funded by tax benefits | 7,590 | |||||||||||||||||
Contingent supplemental shareholder contribution | $ 775 | |||||||||||||||||
Percent of surplus of shareholder assets | 25% | |||||||||||||||||
Customer Harm Threshold, post-emergence transaction, stress test cost | $ 7,500 | |||||||||||||||||
Amount contributed | $ 520 | $ 480 | ||||||||||||||||
Debt instrument, face amount | $ 7,500 | $ 7,500 | $ 3,900 | $ 3,600 | ||||||||||||||
Floating Rate Bonds | Pacific Gas & Electric Co (Utility) | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 500 | |||||||||||||||||
1.75% Bonds | Pacific Gas & Electric Co (Utility) | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 2,500 | |||||||||||||||||
Interest rate | 1.75% | |||||||||||||||||
First Mortgage Bonds Due 2023 | Pacific Gas & Electric Co (Utility) | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 1,500 | |||||||||||||||||
Interest rate | 1.367% | |||||||||||||||||
364-Day 2022A Tranche Loans | Pacific Gas & Electric Co (Utility) | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Long-term debt, gross | $ 500 | |||||||||||||||||
First Mortgage Bonds, Stated Maturity 2024 | Pacific Gas & Electric Co (Utility) | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Debt instrument, face amount | $ 1,000 | |||||||||||||||||
Interest rate | 3.25% | |||||||||||||||||
Nothern California Wild Fire | ||||||||||||||||||
Debt [Line Items] | ||||||||||||||||||
Customer Harm Threshold, post-emergence transaction, securitized | $ 7,500 | $ 7,500 | $ 7,500 | |||||||||||||||
Loss contingency, costs incurred | $ 7,500 |
SB 901 SECURITIZATION AND CUS_4
SB 901 SECURITIZATION AND CUSTOMER CREDIT TRUST (Recovery Bonds) (Details) - Secured Debt - USD ($) $ in Thousands | Jul. 20, 2022 | May 10, 2022 |
Series 2022-A Recovery Bonds | Tranche One | ||
Debt [Line Items] | ||
Amount | $ 540,000 | |
Interest rate | 3.594% | |
Series 2022-A Recovery Bonds | Tranche Two | ||
Debt [Line Items] | ||
Amount | $ 540,000 | |
Interest rate | 4.263% | |
Series 2022-A Recovery Bonds | Tranche Three | ||
Debt [Line Items] | ||
Amount | $ 360,000 | |
Interest rate | 4.377% | |
Series 2022-A Recovery Bonds | Tranche Four | ||
Debt [Line Items] | ||
Amount | $ 1,260,000 | |
Interest rate | 4.451% | |
Series 2022-A Recovery Bonds | Tranche Five | ||
Debt [Line Items] | ||
Amount | $ 900,000 | |
Interest rate | 4.674% | |
Series 2022-B Recovery Bonds | Tranche One | ||
Debt [Line Items] | ||
Amount | $ 613,080 | |
Interest rate | 4.022% | |
Series 2022-B Recovery Bonds | Tranche Two | ||
Debt [Line Items] | ||
Amount | $ 600,000 | |
Interest rate | 4.722% | |
Series 2022-B Recovery Bonds | Tranche Three | ||
Debt [Line Items] | ||
Amount | $ 500,040 | |
Interest rate | 5.081% | |
Series 2022-B Recovery Bonds | Tranche Four | ||
Debt [Line Items] | ||
Amount | $ 1,149,960 | |
Interest rate | 5.212% | |
Series 2022-B Recovery Bonds | Tranche Five | ||
Debt [Line Items] | ||
Amount | $ 1,036,920 | |
Interest rate | 5.099% |
SB 901 SECURITIZATION AND CUS_5
SB 901 SECURITIZATION AND CUSTOMER CREDIT TRUST (Financial Statement Impact) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt [Line Items] | ||
Regulatory assets | $ 16,448 | $ 9,207 |
Regulatory liabilities | (16,921) | $ (11,999) |
SB 901 securitization charges, net | (40) | |
SB 901 Securitization Inception | ||
Debt [Line Items] | ||
Regulatory liabilities | (5,540) | |
SB 901 Securitization Inception | ||
Debt [Line Items] | ||
Regulatory assets | $ 5,500 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 10 Months Ended | |||||||||||||
Oct. 04, 2022 | Sep. 16, 2022 | Jun. 17, 2022 | May 15, 2022 | Apr. 14, 2022 | Jan. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Oct. 20, 2022 | Sep. 15, 2022 | Jul. 08, 2021 | Apr. 30, 2021 | |
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Shares outstanding (in shares) | 2,465,443,675 | |||||||||||||||
Cumulative and unpaid dividends | $ 59,100,000 | |||||||||||||||
Preferred stock dividend requirement | $ 3,500,000 | $ 3,000,000 | $ 4,000,000 | $ 2,000,000 | ||||||||||||
Non-GAAP core earnings threshold | $ 6,200,000,000 | |||||||||||||||
Pacific Gas & Electric Co (Utility) | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Shares outstanding (in shares) | 264,374,809 | |||||||||||||||
Preferred stock dividend requirement | 3,000,000 | $ 3,000,000 | 10,000,000 | $ 10,000,000 | ||||||||||||
Common stock dividends paid | $ 425,000,000 | $ 425,000,000 | $ 850,000,000 | $ 0 | ||||||||||||
Fire Victim Trust | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Number of shares exchanged (in shares) | 60,000,000 | 40,000,000 | 100,000,000 | |||||||||||||
Shares sold, tax impact | $ 337,000,000 | |||||||||||||||
Fire Victim Trust | Subsequent Event | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Number of shares exchanged (in shares) | 35,000,000 | |||||||||||||||
Number of shares sold (in shares) | 135,000,000 | |||||||||||||||
Preferred Stock | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Dividends payable | $ 3,500,000 | |||||||||||||||
PG&E Corporation | Subsequent Event | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Common stock, shares outstanding, adjusted (in shares) | 1,644,956,495 | |||||||||||||||
PG&E Corporation | Common Stock | At The Market Equity Distribution Program | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Sale of stock, number of shares issued in transaction, amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||||||||||
PG&E Corporation | Minimum | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Percentage of equity security ownership with board of director approval | 4.75% | 4.75% | 4.75% | |||||||||||||
PG&E Corporation | Minimum | Subsequent Event | ||||||||||||||||
Schedule Of Changes In Equity [Line Items] | ||||||||||||||||
Percentage of equity security ownership with board of director approval | 3.16% |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of PG&E Corporation's Income Available for Common Shareholders and Weighted Average Shares of Common Stock Outstanding for Calculating Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Income (Loss) Attributable to Common Shareholders | $ 456 | $ (1,091) | $ 1,287 | $ (574) |
Weighted average common shares outstanding, basic (in shares) | 1,987 | 1,985 | 1,987 | 1,985 |
Add incremental shares from assumed conversions: | ||||
Employee share-based compensation (in shares) | 8 | 0 | 8 | 0 |
Equity Units (in shares) | 137 | 0 | 137 | 0 |
Weighted average common share outstanding, diluted (in shares) | 2,132 | 1,985 | 2,132 | 1,985 |
Total income (loss) per common share, diluted (in dollars per share) | $ 0.21 | $ (0.55) | $ 0.60 | $ (0.29) |
DERIVATIVES (Volumes of Outstan
DERIVATIVES (Volumes of Outstanding Derivative Contracts) (Details) | Sep. 30, 2022 MMBTU MWh | Dec. 31, 2021 MWh MMBTU |
Forwards, Futures and Swaps | Natural Gas (MMBtus) | ||
Derivative [Line Items] | ||
Contract Volume | 215,106,533 | 173,361,635 |
Forwards, Futures and Swaps | Electricity (Megawatt-hours) | ||
Derivative [Line Items] | ||
Contract Volume | MWh | 10,323,759 | 10,283,639 |
Options | Natural Gas (MMBtus) | ||
Derivative [Line Items] | ||
Contract Volume | 56,070,000 | 14,420,000 |
Options | Electricity (Megawatt-hours) | ||
Derivative [Line Items] | ||
Contract Volume | 215,600 | 288,000 |
Congestion revenue rights | Electricity (Megawatt-hours) | ||
Derivative [Line Items] | ||
Contract Volume | MWh | 215,759,706 | 239,857,610 |
DERIVATIVES (Outstanding Deriva
DERIVATIVES (Outstanding Derivative Balances) (Details) - Commodity Contract - Pacific Gas & Electric Co (Utility) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives And Hedging Activities [Line Items] | ||
Netting | $ 58 | $ (42) |
Netting | 0 | 0 |
Cash Collateral | 85 | 170 |
Total Derivative Balance | 143 | 128 |
Current assets – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Netting | 104 | 58 |
Netting | (9) | (9) |
Cash Collateral | 70 | 152 |
Total Derivative Balance | 165 | 201 |
Other noncurrent assets – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Netting | 160 | 169 |
Netting | 0 | 0 |
Cash Collateral | 0 | 0 |
Total Derivative Balance | 160 | 169 |
Current liabilities – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Balance | (55) | (53) |
Netting | 9 | 9 |
Cash Collateral | 15 | 18 |
Total Derivative Balance | (31) | (26) |
Noncurrent liabilities – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Balance | (151) | (216) |
Netting | 0 | 0 |
Cash Collateral | 0 | 0 |
Total Derivative Balance | $ (151) | $ (216) |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Short-term investments | $ 289 | |
Price risk management instruments, netting | $ 61 | 143 |
Price risk management instruments, assets | 325 | 370 |
TOTAL ASSETS | 5,365 | 5,558 |
Liabilities: | ||
Price risk management instruments, netting | (24) | (27) |
TOTAL LIABILITIES | 182 | 242 |
Amount primarily related to deferred taxes on appreciation of investment value | 530 | 783 |
Short-term investments | ||
Assets: | ||
Short-term investments | 160 | |
Fixed-income securities | ||
Assets: | ||
Short-term investments | 49 | |
Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 103 | 22 |
Global equity securities | 1,690 | 2,504 |
Fixed-income securities | 1,863 | 2,024 |
TOTAL ASSETS | 3,679 | 4,581 |
Customer credit trust | ||
Assets: | ||
Short-term investments | 7 | |
Global equity securities | 251 | |
Fixed-income securities | 616 | |
TOTAL ASSETS | 874 | |
Rabbi trusts | ||
Assets: | ||
Short-term investments | 25 | |
Global equity securities | 4 | |
Fixed-income securities | 68 | 104 |
Life insurance contracts | 66 | 76 |
TOTAL ASSETS | 163 | 180 |
Long-term disability trust | ||
Assets: | ||
Short-term investments | 4 | 6 |
TOTAL ASSETS | 115 | 138 |
Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, netting | 22 | 6 |
Price risk management instruments, assets | 259 | 229 |
Liabilities: | ||
Price risk management instruments, netting | (22) | (24) |
Price risk management instruments, liabilities | 172 | 235 |
Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, netting | 39 | 137 |
Price risk management instruments, assets | 66 | 141 |
Liabilities: | ||
Price risk management instruments, netting | (2) | (3) |
Price risk management instruments, liabilities | 10 | 7 |
Level 1 | ||
Assets: | ||
Short-term investments | 289 | |
Price risk management instruments, gross subject to netting | 0 | 0 |
TOTAL ASSETS | 3,481 | 3,979 |
Liabilities: | ||
TOTAL LIABILITIES | 0 | 0 |
Level 1 | Short-term investments | ||
Assets: | ||
Short-term investments | 160 | |
Level 1 | Fixed-income securities | ||
Assets: | ||
Short-term investments | 0 | |
Level 1 | Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 103 | 22 |
Global equity securities | 1,690 | 2,504 |
Fixed-income securities | 1,057 | 1,158 |
TOTAL ASSETS | 2,850 | 3,684 |
Level 1 | Customer credit trust | ||
Assets: | ||
Short-term investments | 7 | |
Global equity securities | 251 | |
Fixed-income securities | 180 | |
TOTAL ASSETS | 438 | |
Level 1 | Rabbi trusts | ||
Assets: | ||
Short-term investments | 25 | |
Global equity securities | 4 | |
Fixed-income securities | 0 | 0 |
Life insurance contracts | 0 | 0 |
TOTAL ASSETS | 29 | 0 |
Level 1 | Long-term disability trust | ||
Assets: | ||
Short-term investments | 4 | 6 |
TOTAL ASSETS | 4 | 6 |
Level 1 | Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Level 1 | Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Level 2 | ||
Assets: | ||
Short-term investments | 0 | |
Price risk management instruments, gross subject to netting | 59 | 13 |
TOTAL ASSETS | 1,484 | 1,059 |
Liabilities: | ||
TOTAL LIABILITIES | 32 | 21 |
Level 2 | Short-term investments | ||
Assets: | ||
Short-term investments | 0 | |
Level 2 | Fixed-income securities | ||
Assets: | ||
Short-term investments | 49 | |
Level 2 | Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 0 | 0 |
Global equity securities | 0 | 0 |
Fixed-income securities | 806 | 866 |
TOTAL ASSETS | 806 | 866 |
Level 2 | Customer credit trust | ||
Assets: | ||
Short-term investments | 0 | |
Global equity securities | 0 | |
Fixed-income securities | 436 | |
TOTAL ASSETS | 436 | |
Level 2 | Rabbi trusts | ||
Assets: | ||
Short-term investments | 0 | |
Global equity securities | 0 | |
Fixed-income securities | 68 | 104 |
Life insurance contracts | 66 | 76 |
TOTAL ASSETS | 134 | 180 |
Level 2 | Long-term disability trust | ||
Assets: | ||
Short-term investments | 0 | 0 |
TOTAL ASSETS | 0 | 0 |
Level 2 | Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 32 | 9 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 20 | 11 |
Level 2 | Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 27 | 4 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 12 | 10 |
Level 3 | ||
Assets: | ||
Short-term investments | 0 | |
Price risk management instruments, gross subject to netting | 205 | 214 |
TOTAL ASSETS | 205 | 214 |
Liabilities: | ||
TOTAL LIABILITIES | 174 | 248 |
Level 3 | Short-term investments | ||
Assets: | ||
Short-term investments | 0 | |
Level 3 | Fixed-income securities | ||
Assets: | ||
Short-term investments | 0 | |
Level 3 | Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 0 | 0 |
Global equity securities | 0 | 0 |
Fixed-income securities | 0 | 0 |
TOTAL ASSETS | 0 | 0 |
Level 3 | Customer credit trust | ||
Assets: | ||
Short-term investments | 0 | |
Global equity securities | 0 | |
Fixed-income securities | 0 | |
TOTAL ASSETS | 0 | |
Level 3 | Rabbi trusts | ||
Assets: | ||
Short-term investments | 0 | |
Global equity securities | 0 | |
Fixed-income securities | 0 | 0 |
Life insurance contracts | 0 | 0 |
TOTAL ASSETS | 0 | 0 |
Level 3 | Long-term disability trust | ||
Assets: | ||
Short-term investments | 0 | 0 |
TOTAL ASSETS | 0 | 0 |
Level 3 | Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 205 | 214 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 174 | 248 |
Level 3 | Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share | Nuclear decommissioning trusts | ||
Assets: | ||
Assets measured at NAV | 23 | 31 |
Fair Value Measured at Net Asset Value Per Share | Long-term disability trust | ||
Assets: | ||
Assets measured at NAV | $ 111 | $ 132 |
FAIR VALUE MEASUREMENTS (Level
FAIR VALUE MEASUREMENTS (Level 3 Measurements and Sensitivity Analysis) (Details) $ in Millions | Sep. 30, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ | $ 325 | $ 370 |
Market approach | Congestion revenue rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ | 162 | 188 |
Liabilities | $ | 78 | 93 |
Discounted cash flow | Power purchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ | 43 | 26 |
Liabilities | $ | $ 96 | $ 155 |
CRR auction prices | Market approach | Congestion revenue rights | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | (2,265.69) | (40.77) |
CRR auction prices | Market approach | Congestion revenue rights | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 2,265.94 | 2,265.94 |
CRR auction prices | Market approach | Congestion revenue rights | Weighted average price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 0.43 | 0.40 |
Forward prices | Discounted cash flow | Power purchase agreements | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | (6.91) | (7.97) |
Forward prices | Discounted cash flow | Power purchase agreements | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 210.05 | 256.20 |
Forward prices | Discounted cash flow | Power purchase agreements | Weighted average price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 59.52 | 47.17 |
FAIR VALUE MEASUREMENTS (Leve_2
FAIR VALUE MEASUREMENTS (Level 3 Reconciliation) (Details) - Level 3 - Price risk management instruments - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset (Liability) balance, beginning of period | $ 11 | $ (18) | $ (34) | $ (72) |
Included in regulatory assets and liabilities or balancing accounts | 20 | (62) | 65 | (8) |
Asset (Liability) balance, end of period | $ 31 | $ (80) | $ 31 | $ (80) |
FAIR VALUE MEASUREMENTS (Carryi
FAIR VALUE MEASUREMENTS (Carrying Amount and Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | $ 4,616 | $ 4,619 |
Carrying Amount | Pacific Gas & Electric Co (Utility) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | 33,726 | 31,816 |
Level 2 | Fair Value | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | 4,302 | 4,796 |
Level 2 | Fair Value | Pacific Gas & Electric Co (Utility) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | $ 27,420 | $ 35,803 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Unrealized Gains Losses Related to Available-for-sale Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amount primarily related to deferred taxes on appreciation of investment value | $ 530 | $ 783 |
Nuclear decommissioning trusts | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,544 | 2,439 |
Total Unrealized Gains | 1,322 | 2,164 |
Total Unrealized Losses | (187) | (22) |
Total Fair Value | 3,679 | 4,581 |
Nuclear decommissioning trusts | Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 103 | 22 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
Total Fair Value | 103 | 22 |
Nuclear decommissioning trusts | Global equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 427 | 479 |
Total Unrealized Gains | 1,314 | 2,066 |
Total Unrealized Losses | (28) | (10) |
Total Fair Value | 1,713 | 2,535 |
Nuclear decommissioning trusts | Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,014 | 1,938 |
Total Unrealized Gains | 8 | 98 |
Total Unrealized Losses | (159) | (12) |
Total Fair Value | 1,863 | $ 2,024 |
Customer credit trust | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 930 | |
Total Unrealized Gains | 2 | |
Total Unrealized Losses | (58) | |
Total Fair Value | 874 | |
Customer credit trust | Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7 | |
Total Unrealized Gains | 0 | |
Total Unrealized Losses | 0 | |
Total Fair Value | 7 | |
Customer credit trust | Global equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 284 | |
Total Unrealized Gains | 2 | |
Total Unrealized Losses | (35) | |
Total Fair Value | 251 | |
Customer credit trust | Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 639 | |
Total Unrealized Gains | 0 | |
Total Unrealized Losses | (23) | |
Total Fair Value | $ 616 |
FAIR VALUE MEASUREMENTS (Sche_2
FAIR VALUE MEASUREMENTS (Schedule of Maturities on Debt Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Nuclear decommissioning trusts | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total maturities of fixed-income securities | $ 3,679 | $ 4,581 |
Nuclear decommissioning trusts | Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 1 year | 19 | |
1–5 years | 619 | |
5–10 years | 411 | |
More than 10 years | 814 | |
Total maturities of fixed-income securities | 1,863 | $ 2,024 |
Customer credit trust | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total maturities of fixed-income securities | 874 | |
Customer credit trust | Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 1 year | 0 | |
1–5 years | 169 | |
5–10 years | 162 | |
More than 10 years | 285 | |
Total maturities of fixed-income securities | $ 616 |
FAIR VALUE MEASUREMENTS (Sche_3
FAIR VALUE MEASUREMENTS (Schedule of Activity for Debt and Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Proceeds from sales and maturities of nuclear decommissioning trust investments | $ 2,135 | $ 1,176 | ||
Impairment loss | $ 7 | 7 | ||
Nuclear decommissioning trusts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Proceeds from sales and maturities of nuclear decommissioning trust investments | 766 | $ 224 | 2,135 | 1,176 |
Gross realized gains on securities | 21 | 21 | 158 | 150 |
Gross realized losses on securities | (40) | $ (2) | $ (105) | (18) |
Customer credit trust | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Proceeds from sales and maturities of nuclear decommissioning trust investments | 79 | 79 | ||
Gross realized gains on securities | 8 | 8 | ||
Gross realized losses on securities | $ (18) | $ (18) |
WILDFIRE-RELATED CONTINGENCIE_2
WILDFIRE-RELATED CONTINGENCIES (2019 Kincade Fire, 2020 Zogg Fire, 2021 Dixie Fire and 2022 Mosquito Fire) (Details) $ in Thousands, numberOfPeople in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Oct. 25, 2022 USD ($) | Mar. 18, 2022 USD ($) | Jan. 05, 2022 USD ($) | Oct. 29, 2021 USD ($) a | Nov. 04, 2019 numberOfPeople | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 20, 2022 numberOfClaimHolder complaint notice plaintiff numberOfPlaintiff | Sep. 06, 2022 USD ($) a structure injury numberOfFatality | Apr. 28, 2022 USD ($) | Apr. 11, 2022 USD ($) position | Apr. 08, 2022 USD ($) position | Mar. 31, 2022 USD ($) | Jan. 28, 2022 notice | Jan. 27, 2022 notice | Dec. 02, 2021 transmissionLine | Nov. 18, 2021 notice | Sep. 24, 2021 felony misdemeanor | Aug. 31, 2021 USD ($) | Jul. 13, 2021 a structure injury | May 11, 2021 count | Apr. 06, 2021 misdemeanor felony | Sep. 27, 2020 a structure fatality injury | Oct. 23, 2019 a structure numberOfFatality injury | |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Accrued insurance recoveries | $ 40,000 | |||||||||||||||||||||||||
2019 Kincade fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of acres burned (acre) | a | 77,758 | |||||||||||||||||||||||||
Number of fatalities (fatality) | numberOfFatality | 0 | |||||||||||||||||||||||||
Number of injuries | injury | 4 | |||||||||||||||||||||||||
Number of structures destroyed (structure) | structure | 374 | |||||||||||||||||||||||||
Number of structures damaged (structure) | structure | 60 | |||||||||||||||||||||||||
Number of people part of mandatory evacuation order | numberOfPeople | 0.2 | |||||||||||||||||||||||||
Number of felonies (felony) | notice | 5 | 2 | ||||||||||||||||||||||||
Number of misdemeanors dropped (misdemeanor) | notice | 6 | |||||||||||||||||||||||||
Stipulation costs payable | $ 20,250 | |||||||||||||||||||||||||
Number of new positions headquartered (position) | position | 80 | |||||||||||||||||||||||||
Stipulation costs paid | 1,250 | |||||||||||||||||||||||||
Number of transmission lines | transmissionLine | 70 | |||||||||||||||||||||||||
Loss contingency liability | $ 901,000 | 901,000 | $ 769,000 | |||||||||||||||||||||||
Payments | 18,000 | |||||||||||||||||||||||||
Fire fighting costs recovery requested | $ 90,000 | |||||||||||||||||||||||||
Potential loss contingency | 950,000 | 800,000 | ||||||||||||||||||||||||
Accrued Losses | $ 150,000 | 150,000 | ||||||||||||||||||||||||
Insurance receivable | 430,000 | 430,000 | ||||||||||||||||||||||||
Accrued insurance recoveries | 0 | |||||||||||||||||||||||||
2020 Zogg fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of acres burned (acre) | a | 56,338 | |||||||||||||||||||||||||
Number of fatalities (fatality) | fatality | 4 | |||||||||||||||||||||||||
Number of injuries | injury | 1 | |||||||||||||||||||||||||
Number of structures destroyed (structure) | structure | 204 | |||||||||||||||||||||||||
Number of structures damaged (structure) | structure | 27 | |||||||||||||||||||||||||
Number of demurrer filed (count) | notice | 10 | |||||||||||||||||||||||||
Number of criminal complaints (count) | notice | 31 | |||||||||||||||||||||||||
Loss contingency liability | 74,000 | 74,000 | 211,000 | |||||||||||||||||||||||
Payments | 137,000 | |||||||||||||||||||||||||
Potential loss contingency | 375,000 | |||||||||||||||||||||||||
Accrued Losses | 0 | |||||||||||||||||||||||||
Insurance receivable | 347,000 | 347,000 | ||||||||||||||||||||||||
Fire suppression and other costs | $ 34,500 | |||||||||||||||||||||||||
Liability insurance coverage | 611,000 | 611,000 | ||||||||||||||||||||||||
Initial self-insured retention per occurrence | 60,000 | 60,000 | ||||||||||||||||||||||||
Legal fees | 32,000 | |||||||||||||||||||||||||
Accrued insurance recoveries | 10,000 | |||||||||||||||||||||||||
Zogg Complaint, 2020 | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of felonies (felony) | felony | 11 | |||||||||||||||||||||||||
Number of misdemeanors (misdemeanor) | misdemeanor | 20 | |||||||||||||||||||||||||
Insurance Coverage for Wildfire Events | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Liability insurance coverage | $ 340,000 | $ 600,000 | ||||||||||||||||||||||||
Initial self-insured retention per occurrence | 60,000 | 60,000 | ||||||||||||||||||||||||
2021 Dixie fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of acres burned (acre) | a | 963,309 | |||||||||||||||||||||||||
Number of structures destroyed (structure) | structure | 1,311 | |||||||||||||||||||||||||
Number of structures damaged (structure) | structure | 94 | |||||||||||||||||||||||||
Stipulation costs payable | $ 34,750 | |||||||||||||||||||||||||
Number of new positions headquartered (position) | position | 80 | |||||||||||||||||||||||||
Loss contingency liability | 1,118,000 | 1,118,000 | 1,150,000 | |||||||||||||||||||||||
Loss contingency, costs incurred | $ 650,000 | |||||||||||||||||||||||||
Payments | 32,000 | |||||||||||||||||||||||||
Potential loss contingency | $ 1,150,000 | |||||||||||||||||||||||||
Accrued Losses | 0 | |||||||||||||||||||||||||
Insurance receivable | 553,000 | 553,000 | ||||||||||||||||||||||||
Liability insurance coverage | 900,000 | 900,000 | ||||||||||||||||||||||||
Number of residential structures destroyed (structure) | structure | 763 | |||||||||||||||||||||||||
Number of multi-family residential structures destroyed (structure) | structure | 12 | |||||||||||||||||||||||||
Number of commercial residential structures destroyed (structure) | structure | 8 | |||||||||||||||||||||||||
Number of commercial non-residential structures destroyed (structure) | structure | 148 | |||||||||||||||||||||||||
Number of detached structures destroyed (structure) | structure | 466 | |||||||||||||||||||||||||
Number of first responder injuries (injury) | injury | 4 | |||||||||||||||||||||||||
Probable of recovery | 1,176,000 | |||||||||||||||||||||||||
Accrued insurance recoveries | (10,000) | |||||||||||||||||||||||||
Dixie Stipulation | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Payments | 29,750 | |||||||||||||||||||||||||
2022 Mosquito fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of acres burned (acre) | a | 76,788 | |||||||||||||||||||||||||
Number of fatalities (fatality) | numberOfFatality | 0 | |||||||||||||||||||||||||
Number of injuries | injury | 0 | |||||||||||||||||||||||||
Number of structures destroyed (structure) | structure | 78 | |||||||||||||||||||||||||
Number of structures damaged (structure) | structure | 13 | |||||||||||||||||||||||||
Loss contingency liability | $ 100,000 | |||||||||||||||||||||||||
Liability insurance coverage | $ 940,000 | 940,000 | ||||||||||||||||||||||||
Probable of recovery | 100,000 | |||||||||||||||||||||||||
Percentage of fire contained | 100% | |||||||||||||||||||||||||
Accrued insurance recoveries | 40,000 | |||||||||||||||||||||||||
Subsequent Event | 2019 Kincade fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of complaints (complaint) | complaint | 106 | |||||||||||||||||||||||||
Number of plaintiffs represented by complaints | plaintiff | 2,670 | |||||||||||||||||||||||||
Subsequent Event | 2020 Zogg fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of complaints (complaint) | complaint | 28 | |||||||||||||||||||||||||
Number of plaintiffs represented by complaints | numberOfPlaintiff | 496 | |||||||||||||||||||||||||
Penalty recommended | $ 155,000 | |||||||||||||||||||||||||
Subsequent Event | 2021 Dixie fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of complaints (complaint) | numberOfClaimHolder | 54 | |||||||||||||||||||||||||
Number of plaintiffs represented by complaints | numberOfClaimHolder | 1,444 | |||||||||||||||||||||||||
Subsequent Event | 2022 Mosquito fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of complaints (complaint) | complaint | 3 | |||||||||||||||||||||||||
Number of plaintiffs represented by complaints | notice | 34 | |||||||||||||||||||||||||
FERC TO rates | 2021 Dixie fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Probable of recovery | 106,000 | |||||||||||||||||||||||||
FERC TO rates | 2022 Mosquito fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Probable of recovery | 10,000 | |||||||||||||||||||||||||
WEMA | 2021 Dixie fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Probable of recovery | 367,000 | |||||||||||||||||||||||||
WEMA | 2022 Mosquito fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Probable of recovery | 50,000 | |||||||||||||||||||||||||
National Park | 2021 Dixie fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of acres burned (acre) | a | 70,000 | |||||||||||||||||||||||||
National Forrest | 2021 Dixie fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of acres burned (acre) | a | 685,000 | |||||||||||||||||||||||||
Pacific Gas & Electric Co (Utility) | 2019 Kincade fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of demurrer filed (count) | count | 25 | |||||||||||||||||||||||||
Number of criminal complaints (count) | count | 33 | |||||||||||||||||||||||||
Loss contingency liability | $ 40,000 | |||||||||||||||||||||||||
Loss contingency, costs incurred | 85,000 | |||||||||||||||||||||||||
Pacific Gas & Electric Co (Utility) | Sonoma Contry District Attorney | 2019 Kincade fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Number of felonies (felony) | felony | 5 | |||||||||||||||||||||||||
Number of misdemeanors (misdemeanor) | misdemeanor | 28 | |||||||||||||||||||||||||
Pacific Gas & Electric Co (Utility) | California General Fund | 2019 Kincade fire | ||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||
Payments | $ 20,000 |
WILDFIRE-RELATED CONTINGENCIE_3
WILDFIRE-RELATED CONTINGENCIES (Losses For Claims) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Sep. 30, 2022 | |
2019 Kincade fire | ||
Loss Contingency Accrual [Roll Forward] | ||
Loss accrual, beginning balance | $ 769 | |
Accrued Losses | $ 150 | 150 |
Payments | (18) | |
Loss accrual, ending balance | 901 | |
2020 Zogg fire | ||
Loss Contingency Accrual [Roll Forward] | ||
Loss accrual, beginning balance | 211 | |
Accrued Losses | 0 | |
Payments | (137) | |
Loss accrual, ending balance | 74 | |
2021 Dixie fire | ||
Loss Contingency Accrual [Roll Forward] | ||
Loss accrual, beginning balance | 1,150 | |
Accrued Losses | 0 | |
Payments | (32) | |
Loss accrual, ending balance | $ 1,118 |
WILDFIRE-RELATED CONTINGENCIE_4
WILDFIRE-RELATED CONTINGENCIES (Loss Recoveries) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
2022 Mosquito fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 100 |
2021 Dixie fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 1,176 |
Insurance | 2022 Mosquito fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 40 |
Insurance | 2021 Dixie fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 553 |
FERC TO rates | 2022 Mosquito fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 10 |
FERC TO rates | 2021 Dixie fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 106 |
WEMA | 2022 Mosquito fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 50 |
WEMA | 2021 Dixie fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 367 |
Wildfire Fund | 2022 Mosquito fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 0 |
Wildfire Fund | 2021 Dixie fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 150 |
WILDFIRE-RELATED CONTINGENCIE_5
WILDFIRE-RELATED CONTINGENCIES (Insurance) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 28, 2022 | Aug. 01, 2023 | Apr. 01, 2023 | Sep. 30, 2022 | Aug. 31, 2021 | |
Loss Contingencies [Line Items] | |||||
Insurance premium costs, recovery, coverage amount | $ 1,400 | ||||
Insurance Coverage for Wildfire Events | |||||
Loss Contingencies [Line Items] | |||||
Liability insurance coverage | $ 340 | $ 600 | |||
Initial self-insured retention per occurrence | 60 | ||||
Insurance Coverage for Wildfire Events | Forecast | |||||
Loss Contingencies [Line Items] | |||||
Costs for insurance coverage | $ 516 | $ 263 | |||
Insurance Coverage For Non-Wildfire Liabilities | |||||
Loss Contingencies [Line Items] | |||||
Liability insurance coverage | 725 | ||||
Costs for insurance coverage | $ 154 | ||||
Initial self-insured retention per occurrence | 10 | ||||
Prepaid insurance | $ 673 |
WILDFIRE-RELATED CONTINGENCIE_6
WILDFIRE-RELATED CONTINGENCIES (Insurance Receivable) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Insurance Receivable [Roll Forward] | |
Insurance Receivable, Beginning Balance | $ 1,247 |
Accrued insurance recoveries | 40 |
Reimbursements | (167) |
Insurance Receivable, Ending Balance | 1,120 |
Resolved claims | 468 |
Other Receivables | |
Insurance Receivable [Roll Forward] | |
Resolved claims | 239 |
2022 Mosquito fire | |
Insurance Receivable [Roll Forward] | |
Insurance Receivable, Beginning Balance | 0 |
Accrued insurance recoveries | 40 |
Reimbursements | 0 |
Insurance Receivable, Ending Balance | 40 |
2021 Dixie fire | |
Insurance Receivable [Roll Forward] | |
Insurance Receivable, Beginning Balance | 563 |
Accrued insurance recoveries | (10) |
Reimbursements | 0 |
Insurance Receivable, Ending Balance | 553 |
Insurance receivable | 553 |
2020 Zogg fire | |
Insurance Receivable [Roll Forward] | |
Insurance Receivable, Beginning Balance | 270 |
Accrued insurance recoveries | 10 |
Reimbursements | (142) |
Insurance Receivable, Ending Balance | 138 |
Insurance receivable | 347 |
2019 Kincade fire | |
Insurance Receivable [Roll Forward] | |
Insurance Receivable, Beginning Balance | 414 |
Accrued insurance recoveries | 0 |
Reimbursements | (25) |
Insurance Receivable, Ending Balance | 389 |
Insurance receivable | $ 430 |
WILDFIRE-RELATED CONTINGENCIE_7
WILDFIRE-RELATED CONTINGENCIES (Regulatory Recovery) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
2021 Dixie fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 1,176 |
2021 Dixie fire | FERC TO rates | |
Loss Contingencies [Line Items] | |
Probable of recovery | 106 |
2021 Dixie fire | WEMA | |
Loss Contingencies [Line Items] | |
Probable of recovery | 367 |
2022 Mosquito fire | |
Loss Contingencies [Line Items] | |
Probable of recovery | 100 |
2022 Mosquito fire | FERC TO rates | |
Loss Contingencies [Line Items] | |
Probable of recovery | 10 |
2022 Mosquito fire | WEMA | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 50 |
WILDFIRE-RELATED CONTINGENCIE_8
WILDFIRE-RELATED CONTINGENCIES (Wildfire Fund) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Aug. 23, 2019 | Sep. 30, 2022 | |
Loss Contingencies [Line Items] | ||
Disallowance cap, transmission and distribution 2022 equity rate base | $ 3,000 | |
Initial safety certification, documentation provided, period | 90 days | |
Initial safety certification, period | 12 months | |
Expected capitalization, proceeds of bond | 10,500 | |
Expected capitalization, initial contribution | 7,500 | |
Expected capitalization, annual contribution | 300 | |
2021 Dixie fire | ||
Loss Contingencies [Line Items] | ||
Probable of recovery | 1,176 | |
2021 Dixie fire | Wildfire Fund | ||
Loss Contingencies [Line Items] | ||
Probable of recovery | $ 150 |
WILDFIRE-RELATED CONTINGENCIE_9
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Securities Claims, Fire Victim Trust D&O Claims and Potential Insurance Recoveries) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||||||||
Net Loss | $ (459) | $ (360) | $ (478) | $ 1,088 | $ (401) | $ (123) | $ (1,297) | $ 564 |
Wildfire-Related Class Action | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency liability | 300 | |||||||
Net Loss | $ 145 | |||||||
Insurance Coverage Claims | ||||||||
Loss Contingencies [Line Items] | ||||||||
Insurance receivable | 272 | |||||||
Breach of Fiduciary Duties | ||||||||
Loss Contingencies [Line Items] | ||||||||
Settlement amount proposed | $ 117 |
WILDFIRE-RELATED CONTINGENCI_10
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Derivative Litigation) (Details) - Breach of Fiduciary Duties $ in Millions | Jun. 30, 2022 USD ($) | Feb. 24, 2021 claim | Nov. 20, 2017 lawsuit |
Loss Contingencies [Line Items] | |||
Number of causes of action (causes) | claim | 2 | ||
Settlement amount proposed | $ | $ 117 | ||
Derivative Lawsuits Filed in the San Francisco County Superior Court | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits filed against company (lawsuit, complaint) | lawsuit | 2 |
WILDFIRE-RELATED CONTINGENCI_11
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Securities Class Action Litigation and Debt Claims) (Details) - Wildfire-Related Class Action $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 USD ($) | Feb. 22, 2019 notice | Jun. 30, 2018 lawsuit |
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed against company (lawsuit, complaint) | lawsuit | 2 | |||
Number of public offerings of notes with complaints against underwriters (offering) | notice | 4 | |||
Loss contingency liability | $ | $ 300 | |||
Percentage of common stock owned, Fire Victim Trust if common issues additional shares | 22.19% |
WILDFIRE-RELATED CONTINGENCI_12
WILDFIRE-RELATED CONTINGENCIES (Indemnification Obligations and D&O Insurance Coverage (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Insurance Coverage Claims | |
Loss Contingencies [Line Items] | |
Insurance receivable | $ 272 |
WILDFIRE-RELATED CONTINGENCI_13
WILDFIRE-RELATED CONTINGENCIES (District Attorneys Offices Investigations) (Details) - Pacific Gas & Electric Co (Utility) - Complaints Brought By Butte County District Attorney - Loss from Wildfires | Mar. 17, 2020 count |
Loss Contingencies [Line Items] | |
Number of guilty involuntary manslaughter pleas | 84 |
Number of count related to unlawfully causing a fire (count) | 1 |
OTHER CONTINGENCIES AND COMMI_3
OTHER CONTINGENCIES AND COMMITMENTS (Transmission Owner Rate) (Details) - USD ($) $ in Millions | 61 Months Ended | |||
Mar. 17, 2022 | Sep. 21, 2018 | Mar. 31, 2022 | Sep. 30, 2022 | |
Transmission Owner Rate Case Revenue | ||||
Loss Contingencies [Line Items] | ||||
Regulatory liabilities | $ 384 | |||
Regulatory assets | $ 240 | |||
Pacific Gas & Electric Co (Utility) | ||||
Loss Contingencies [Line Items] | ||||
Increase in regulatory liabilities | $ 62.5 | |||
Pacific Gas & Electric Co (Utility) | Electric | ||||
Loss Contingencies [Line Items] | ||||
Requested revenue rate | 98.85% | |||
Requested return on equity rate, incentive component | 0.50% | |||
Requested return on equity rate | 9.26% | |||
Actual return on equity rate | 9.76% |
OTHER CONTINGENCIES AND COMMI_4
OTHER CONTINGENCIES AND COMMITMENTS (Interim Rate Relief Subject to Refund) (Details) - WMCE Interim Rate Relief - USD ($) $ in Millions | Sep. 30, 2022 | Oct. 23, 2020 | Sep. 30, 2020 |
Loss Contingencies [Line Items] | |||
Expenses and capital expenditures, disallowed costs | $ 1,180 | ||
Expenses and capital expenditures, capital expenditures | 801 | ||
Cost recovery, increase (decrease) to revenue requirement | $ 1,280 | ||
Interim rate relief | $ 447 | ||
Cost recovery, remaining revenue requirement | $ 868 | ||
Fire hazard prevention memorandum account | |||
Loss Contingencies [Line Items] | |||
Cost recovery | $ 293 | ||
Fire risk and wildfire mitigation memorandum account | |||
Loss Contingencies [Line Items] | |||
Cost recovery | 740 | ||
Catastrophic event memorandum account | |||
Loss Contingencies [Line Items] | |||
Cost recovery | $ 251 |
OTHER CONTINGENCIES AND COMMI_5
OTHER CONTINGENCIES AND COMMITMENTS - 2022 Cost of Capital Application (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Annual cost of capital adjustment, indicator | 4.50% | |
Annual cost of capital adjustment, basis point maximum | 100 | |
Proposed cost of long-term debt | 4.14% | |
Proposed return on preferred stock | 5.52% | |
Proposed return on equity | 11% | |
Annual cost of capital adjustment, indicator, basis point | 117 | |
Decrease in jurisdictional revenue requirement | $ 163 | |
Electric | ||
Loss Contingencies [Line Items] | ||
Decrease in jurisdictional revenue requirement | 99 | |
Natural gas | ||
Loss Contingencies [Line Items] | ||
Decrease in jurisdictional revenue requirement | $ 64 | |
Extraordinary Circumstances | ||
Loss Contingencies [Line Items] | ||
Cost of long-term debt | 4.17% | |
Return on preferred equity | 5.52% | |
Return on equity | 10.25% | |
Not Extraordinary Circumstances | ||
Loss Contingencies [Line Items] | ||
Cost of long-term debt | 5.52% | |
Return on preferred equity | 9.67% | |
Return on equity | 4.15% |
OTHER CONTINGENCIES AND COMMI_6
OTHER CONTINGENCIES AND COMMITMENTS (2015 Gas Transmission and Storage Rate Case and 2011-2014 Gas Transmission and Storage Capital Expenditures Audit) (Details) - Disallowance of Plant Costs - USD ($) $ in Millions | Jul. 07, 2021 | Jun. 23, 2016 | Jul. 31, 2020 |
Loss Contingencies [Line Items] | |||
Gas transmission and storage capital disallowance | $ 696 | ||
Permanently disallowed capital | 120 | ||
Amount subject to audit | $ 576 | ||
Capital expenditures for future recovery | $ 512 | ||
Loss Contingency Nature, Period One | |||
Loss Contingencies [Line Items] | |||
Capital expenditures for future recovery, seeking recovery | $ 416.3 | ||
Capital expenditures for future recovery, pending authorization | $ 356.3 | ||
Loss Contingency Nature, Period Two | |||
Loss Contingencies [Line Items] | |||
Capital expenditures for future recovery, pending authorization | $ 313.3 | ||
Capital expenditures for future recovery, pending authorization, amortization period | 60 months | ||
Loss Contingency Nature, Period Three | |||
Loss Contingencies [Line Items] | |||
Capital expenditures for future recovery, pending authorization | $ 43 | ||
Capital expenditures for future recovery, pending authorization, amortization period | 12 months |
OTHER CONTINGENCIES AND COMMI_7
OTHER CONTINGENCIES AND COMMITMENTS (Other Matters) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued legal liabilities | $ 61 | $ 77 |
OTHER CONTINGENCIES AND COMMI_8
OTHER CONTINGENCIES AND COMMITMENTS (PSPS Class Action) (Details) $ in Billions | Dec. 19, 2019 USD ($) |
PSPS Class Action | Pending Litigation | Pacific Gas & Electric Co (Utility) | |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought | $ 2.5 |
OTHER CONTINGENCIES AND COMMI_9
OTHER CONTINGENCIES AND COMMITMENTS (Schedule Environmental Remediation Liability Composed) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Disclosure Commitments And Contingencies Environmental Remediation Liability Composed [Abstract] | ||
Topock natural gas compressor station | $ 286 | $ 299 |
Hinkley natural gas compressor station | 113 | 123 |
Former manufactured gas plant sites owned by the Utility or third parties | 792 | 667 |
Utility-owned generation facilities (other than fossil fuel-fired), other facilities, and third-party disposal sites | 112 | 104 |
Fossil fuel-fired generation facilities and sites | 32 | 70 |
Total environmental remediation liability | $ 1,335 | $ 1,263 |
OTHER CONTINGENCIES AND COMM_10
OTHER CONTINGENCIES AND COMMITMENTS (Environmental Remediation Contingencies Narrative) (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Long-term Purchase Commitment [Line Items] | |
Amount of environmental loss accrual expected to be recovered | $ 1,092 |
Topock Site | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 237 |
Topock Site | Pacific Gas & Electric Co (Utility) | |
Long-term Purchase Commitment [Line Items] | |
Remediation cost recovery percentage | 90% |
Hinkley Natural Gas Compressor Station | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 127 |
Former Manufactured Gas Plant | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 509 |
Former Manufactured Gas Plant | Pacific Gas & Electric Co (Utility) | |
Long-term Purchase Commitment [Line Items] | |
Remediation cost recovery percentage | 90% |
Utility Owned Generation Facilities and Third Party Disposal Sites | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 47 |
Utility Owned Generation Facilities and Third Party Disposal Sites | Pacific Gas & Electric Co (Utility) | |
Long-term Purchase Commitment [Line Items] | |
Remediation cost recovery percentage | 90% |
Fossil Fuel Fired Generation | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 50 |
OTHER CONTINGENCIES AND COMM_11
OTHER CONTINGENCIES AND COMMITMENTS (Nuclear Insurance and Purchase Commitments) (Details) | 9 Months Ended | |
Sep. 30, 2022 USD ($) nuclear_generating_unit | Dec. 31, 2021 USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
Number of nuclear generating units (nuclear generating unit) | nuclear_generating_unit | 2 | |
Total purchase commitments | $ 34,000,000,000 | |
Nuclear Electric Insurance Limited and European Mutual Association for Nuclear Insurance | ||
Long-term Purchase Commitment [Line Items] | ||
Insurance coverage, loss | $ 400,000,000 | |
Humboldt Bay Unit | ||
Long-term Purchase Commitment [Line Items] | ||
Amount of property damage coverage provided by NEIL | 50,000,000 | |
Nuclear Incident | ||
Long-term Purchase Commitment [Line Items] | ||
Amount of property damage and business interruption coverage provided by NEIL for Diablo Canyon | 3,200,000,000 | |
Non-Nuclear Incident | ||
Long-term Purchase Commitment [Line Items] | ||
Amount of property damage and business interruption coverage provided by NEIL for Diablo Canyon | 2,500,000,000 | |
European Mutual Association for Nuclear Insurance | ||
Long-term Purchase Commitment [Line Items] | ||
Full insurance policy limit | 200,000,000 | |
Potential premium obligation | 4,000,000 | |
Nuclear Electric Insurance Limited | ||
Long-term Purchase Commitment [Line Items] | ||
Potential premium obligation | $ 41,000,000 |
OTHER CONTINGENCIES AND COMM_12
OTHER CONTINGENCIES AND COMMITMENTS (Oakland Headquarters Lease) (Details) ft² in Thousands, $ in Millions | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 23, 2020 USD ($) ft² |
Operating Leased Assets [Line Items] | |||
Term of contract | 34 years 11 months | ||
Operating lease right of use asset | $ 1,199 | $ 1,234 | |
Pacific Gas & Electric Co (Utility) | |||
Operating Leased Assets [Line Items] | |||
Operating lease right of use asset | 1,199 | $ 1,232 | |
Oakland Headquarters Lease | Pacific Gas & Electric Co (Utility) | |||
Operating Leased Assets [Line Items] | |||
Rentable square feet | ft² | 910 | ||
Lease, option payment letter of credit | $ 75 | ||
Lease, security letter of credit | 75 | ||
Purchase options, land, value | $ 892 | ||
Operating lease right of use asset | 322 | ||
Leasehold improvements | 157 | ||
Leasehold incentives | 78 | ||
Operating lease, right-of-use liability | $ 399 |