Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PCG | |
Entity Registrant Name | PG&E CORP | |
Entity Central Index Key | 0001004980 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 529,210,278 | |
Pacific Gas & Electric Co | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PCG | |
Entity Registrant Name | PACIFIC GAS & ELECTRIC CO | |
Entity Central Index Key | 0000075488 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 264,374,809 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Revenues | ||
Total operating revenues | $ 4,011 | $ 4,056 |
Operating Expenses | ||
Operating and maintenance | 2,087 | 1,604 |
Wildfire-related claims, net of insurance recoveries | 0 | (7) |
Depreciation, amortization, and decommissioning | 797 | 752 |
Total operating expenses | 3,822 | 3,457 |
Operating Income | 189 | 599 |
Interest income | 22 | 9 |
Interest expense | (103) | (220) |
Other income, net | 71 | 108 |
Reorganization items, net | (127) | 0 |
Income Before Income Taxes | 52 | 496 |
Income tax provision (benefit) | (84) | 51 |
Net Income | 136 | 445 |
Preferred stock dividend requirement of subsidiary | 0 | 3 |
Income Available for Common Shareholders | $ 136 | $ 442 |
Weighted Average Common Shares Outstanding, Basic (in shares) | 526 | 515 |
Weighted Average Common Shares Outstanding, Diluted (in shares) | 527 | 516 |
Net Earnings Per Common Share, Basic (in dollars per share) | $ 0.25 | $ 0.86 |
Net Earnings Per Common Share, Diluted (in dollars per share) | $ 0.25 | $ 0.86 |
Pacific Gas & Electric Co | ||
Operating Revenues | ||
Total operating revenues | $ 4,011 | $ 4,056 |
Operating Expenses | ||
Operating and maintenance | 2,104 | 1,604 |
Wildfire-related claims, net of insurance recoveries | 0 | (7) |
Depreciation, amortization, and decommissioning | 797 | 752 |
Total operating expenses | 3,839 | 3,457 |
Operating Income | 172 | 599 |
Interest income | 21 | 9 |
Interest expense | (101) | (217) |
Other income, net | 66 | 109 |
Reorganization items, net | (111) | 0 |
Income Before Income Taxes | 47 | 500 |
Income tax provision (benefit) | (86) | 48 |
Net Income | 133 | 452 |
Preferred stock dividend requirement of subsidiary | 0 | 3 |
Income Available for Common Shareholders | 133 | 449 |
Electric | ||
Operating Revenues | ||
Total operating revenues | 2,792 | 2,951 |
Operating Expenses | ||
Cost of goods | 599 | 819 |
Electric | Pacific Gas & Electric Co | ||
Operating Revenues | ||
Total operating revenues | 2,792 | 2,951 |
Operating Expenses | ||
Cost of goods | 599 | 819 |
Natural gas | ||
Operating Revenues | ||
Total operating revenues | 1,219 | 1,105 |
Operating Expenses | ||
Cost of goods | 339 | 289 |
Natural gas | Pacific Gas & Electric Co | ||
Operating Revenues | ||
Total operating revenues | 1,219 | 1,105 |
Operating Expenses | ||
Cost of goods | $ 339 | $ 289 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Income | $ 136 | $ 445 |
Other Comprehensive Income | ||
Pension and other post-retirement benefit plans obligations (net of taxes of $0, $0, $0, and $0, at respective dates) | 0 | 0 |
Total other comprehensive income | 0 | 0 |
Comprehensive Income | 136 | 445 |
Preferred stock dividend requirement of subsidiary | 0 | 3 |
Comprehensive Income Attributable to Common Shareholders | 136 | 442 |
Pacific Gas & Electric Co | ||
Net Income | 133 | 452 |
Other Comprehensive Income | ||
Pension and other post-retirement benefit plans obligations (net of taxes of $0, $0, $0, and $0, at respective dates) | 0 | 0 |
Total other comprehensive income | 0 | 0 |
Comprehensive Income | $ 133 | $ 452 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension and other postretirement benefit plans obligations tax | $ 0 | $ 0 |
Pacific Gas & Electric Co | ||
Pension and other postretirement benefit plans obligations tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 2,964,000,000 | $ 1,668,000,000 |
Accounts receivable: | ||
Customers (net of allowance for doubtful accounts of $56 at respective dates) | 1,319,000,000 | 1,148,000,000 |
Accrued unbilled revenue | 838,000,000 | 1,000,000,000 |
Regulatory balancing accounts | 1,497,000,000 | 1,435,000,000 |
Other | 2,695,000,000 | 2,686,000,000 |
Regulatory assets | 235,000,000 | 233,000,000 |
Inventories: | ||
Gas stored underground and fuel oil | 72,000,000 | 111,000,000 |
Materials and supplies | 464,000,000 | 443,000,000 |
Income taxes receivable | 0 | 23,000,000 |
Other | 609,000,000 | 448,000,000 |
Total current assets | 10,693,000,000 | 9,195,000,000 |
Property, Plant, and Equipment | ||
Electric | 59,982,000,000 | 59,150,000,000 |
Gas | 21,930,000,000 | 21,556,000,000 |
Construction work in progress | 2,525,000,000 | 2,564,000,000 |
Other | 20,000,000 | 2,000,000 |
Total property, plant, and equipment | 84,457,000,000 | 83,272,000,000 |
Accumulated depreciation | (25,220,000,000) | (24,715,000,000) |
Net property, plant, and equipment | 59,237,000,000 | 58,557,000,000 |
Other Noncurrent Assets | ||
Regulatory assets | 5,151,000,000 | 4,964,000,000 |
Nuclear decommissioning trusts | 2,932,000,000 | 2,730,000,000 |
Operating lease right of use asset | 2,738,000,000 | |
Income taxes receivable | 69,000,000 | 69,000,000 |
Other | 1,467,000,000 | 1,480,000,000 |
Total other noncurrent assets | 12,357,000,000 | 9,243,000,000 |
TOTAL ASSETS | 82,287,000,000 | 76,995,000,000 |
Current Liabilities | ||
Short-term borrowings | 0 | 3,435,000,000 |
Long-term debt, classified as current | 0 | 18,559,000,000 |
Accounts payable: | ||
Trade creditors | 867,000,000 | 1,975,000,000 |
Regulatory balancing accounts | 1,345,000,000 | 1,076,000,000 |
Other | 453,000,000 | 464,000,000 |
Operating lease liabilities | 539,000,000 | |
Disputed claims and customer refunds | 0 | 220,000,000 |
Interest payable | 1,000,000 | 228,000,000 |
Wildfire-related claims | 0 | 14,226,000,000 |
Other | 1,603,000,000 | 1,512,000,000 |
Total current liabilities | 4,808,000,000 | 41,695,000,000 |
Noncurrent Liabilities | ||
Long-term debt | 0 | 0 |
Debtor-in-possession financing | 350,000,000 | 0 |
Regulatory liabilities | 8,872,000,000 | 8,539,000,000 |
Pension and other post-retirement benefits | 2,006,000,000 | 2,119,000,000 |
Asset retirement obligations | 6,055,000,000 | 5,994,000,000 |
Deferred income taxes | 3,273,000,000 | 3,281,000,000 |
Operating lease liabilities | 2,199,000,000 | |
Other | 2,273,000,000 | 2,464,000,000 |
Total noncurrent liabilities | 25,028,000,000 | 22,397,000,000 |
Liabilities Subject to Compromise | 39,322,000,000 | 0 |
Shareholders' Equity | ||
Common stock | 13,000,000,000 | 12,910,000,000 |
Reinvested earnings | (114,000,000) | (250,000,000) |
Accumulated other comprehensive income (loss) | (9,000,000) | (9,000,000) |
Total shareholders’ equity | 12,877,000,000 | 12,651,000,000 |
Noncontrolling Interest - Preferred Stock of Subsidiary | 252,000,000 | 252,000,000 |
Total equity | 13,129,000,000 | 12,903,000,000 |
TOTAL LIABILITIES AND EQUITY | 82,287,000,000 | 76,995,000,000 |
Pacific Gas & Electric Co | ||
Current Assets | ||
Cash and cash equivalents | 2,552,000,000 | 1,295,000,000 |
Accounts receivable: | ||
Customers (net of allowance for doubtful accounts of $56 at respective dates) | 1,319,000,000 | 1,148,000,000 |
Accrued unbilled revenue | 838,000,000 | 1,000,000,000 |
Regulatory balancing accounts | 1,497,000,000 | 1,435,000,000 |
Other | 2,716,000,000 | 2,688,000,000 |
Regulatory assets | 235,000,000 | 233,000,000 |
Inventories: | ||
Gas stored underground and fuel oil | 72,000,000 | 111,000,000 |
Materials and supplies | 464,000,000 | 443,000,000 |
Income taxes receivable | 0 | 5,000,000 |
Other | 609,000,000 | 448,000,000 |
Total current assets | 10,302,000,000 | 8,806,000,000 |
Property, Plant, and Equipment | ||
Electric | 59,982,000,000 | 59,150,000,000 |
Gas | 21,930,000,000 | 21,556,000,000 |
Construction work in progress | 2,525,000,000 | 2,564,000,000 |
Other | 18,000,000 | 0 |
Total property, plant, and equipment | 84,455,000,000 | 83,270,000,000 |
Accumulated depreciation | (25,217,000,000) | (24,713,000,000) |
Net property, plant, and equipment | 59,238,000,000 | 58,557,000,000 |
Other Noncurrent Assets | ||
Regulatory assets | 5,151,000,000 | 4,964,000,000 |
Nuclear decommissioning trusts | 2,932,000,000 | 2,730,000,000 |
Operating lease right of use asset | 2,728,000,000 | |
Income taxes receivable | 66,000,000 | 66,000,000 |
Other | 1,330,000,000 | 1,348,000,000 |
Total other noncurrent assets | 12,207,000,000 | 9,108,000,000 |
TOTAL ASSETS | 81,747,000,000 | 76,471,000,000 |
Current Liabilities | ||
Short-term borrowings | 0 | 3,135,000,000 |
Long-term debt, classified as current | 0 | 18,209,000,000 |
Accounts payable: | ||
Trade creditors | 863,000,000 | 1,972,000,000 |
Regulatory balancing accounts | 1,345,000,000 | 1,076,000,000 |
Other | 553,000,000 | 498,000,000 |
Operating lease liabilities | 536,000,000 | |
Disputed claims and customer refunds | 0 | 220,000,000 |
Interest payable | 1,000,000 | 227,000,000 |
Wildfire-related claims | 14,212,000,000 | 14,226,000,000 |
Other | 1,620,000,000 | 1,497,000,000 |
Total current liabilities | 4,918,000,000 | 41,060,000,000 |
Noncurrent Liabilities | ||
Long-term debt | 0 | 0 |
Debtor-in-possession financing | 350,000,000 | 0 |
Regulatory liabilities | 8,872,000,000 | 8,539,000,000 |
Pension and other post-retirement benefits | 2,006,000,000 | 2,026,000,000 |
Asset retirement obligations | 6,055,000,000 | 5,994,000,000 |
Deferred income taxes | 3,396,000,000 | 3,405,000,000 |
Operating lease liabilities | 2,192,000,000 | |
Other | 2,323,000,000 | 2,492,000,000 |
Total noncurrent liabilities | 25,194,000,000 | 22,456,000,000 |
Liabilities Subject to Compromise | 38,547,000,000 | 0 |
Shareholders' Equity | ||
Preferred stock | 258,000,000 | 258,000,000 |
Common stock | 1,322,000,000 | 1,322,000,000 |
Additional paid-in capital | 8,550,000,000 | 8,550,000,000 |
Reinvested earnings | 2,959,000,000 | 2,826,000,000 |
Accumulated other comprehensive income (loss) | (1,000,000) | (1,000,000) |
Total shareholders’ equity | 13,088,000,000 | 12,955,000,000 |
TOTAL LIABILITIES AND EQUITY | $ 81,747,000,000 | $ 76,471,000,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 56 | $ 56 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares outstanding (in shares) | 529,210,278 | 520,338,710 |
Pacific Gas & Electric Co | ||
Allowance for doubtful accounts | $ 56 | $ 56 |
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 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||
Net Income | $ 136 | $ 445 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and decommissioning | 797 | 752 | |
Allowance for equity funds used during construction | (25) | (32) | |
Deferred income taxes and tax credits, net | 4 | 178 | |
Reorganization items, net (Note 2) | 19 | 0 | |
Other | 16 | 30 | |
Effect of changes in operating assets and liabilities: | |||
Accounts receivable | (31) | 120 | |
Wildfire-related insurance receivable | 25 | 197 | |
Inventories | 18 | 28 | |
Accounts payable | (180) | 24 | |
Wildfire-related claims | (14) | (118) | |
Income taxes receivable/payable | 23 | 0 | |
Other current assets and liabilities | 150 | (145) | |
Regulatory assets, liabilities, and balancing accounts, net | 343 | 114 | |
Liabilities subject to compromise | 833 | 0 | |
Other noncurrent assets and liabilities | 130 | (81) | |
Net cash provided by operating activities | 2,244 | 1,512 | |
Cash Flows from Investing Activities | |||
Capital expenditures | (1,224) | (1,470) | |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 346 | 494 | |
Purchases of nuclear decommissioning trust investments | (372) | (505) | |
Other | 3 | 6 | |
Net cash used in investing activities | (1,247) | (1,475) | |
Cash Flows from Financing Activities | |||
Proceeds from debtor-in-possession credit facility | 350 | 0 | |
Debtor-in-possession credit facility debt issuance costs | (111) | 0 | |
Net issuances (repayments) of commercial paper, net of discount | 0 | 36 | |
Short-term debt financing | 0 | 250 | |
Short-term debt matured | 0 | (250) | |
Long-term debt matured or repurchased | 0 | (400) | |
Common stock issued | 85 | 35 | |
Other | (24) | (13) | |
Net cash provided by (used in) financing activities | 300 | (342) | |
Net change in cash, cash equivalents, and restricted cash | 1,297 | (305) | |
Cash, cash equivalents, and restricted cash at January 1 | 1,675 | 456 | $ 456 |
Cash, cash equivalents, and restricted cash at March 31 | 2,972 | 151 | 1,675 |
Less: Restricted cash and restricted cash equivalents included in other current assets | (8) | (7) | |
Cash and cash equivalents at March 31 | 2,964 | 144 | 1,668 |
Supplemental disclosures of cash flow information | |||
Interest, net of amounts capitalized | (10) | (268) | |
Supplemental disclosures of noncash operating activities | |||
Operating lease liabilities arising from obtaining ROU assets | 2,816 | 0 | |
Supplemental disclosures of noncash investing and financing activities | |||
Capital expenditures financed through accounts payable | 242 | 255 | |
Pacific Gas & Electric Co | |||
Cash Flows from Operating Activities | |||
Net Income | 133 | 452 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and decommissioning | 797 | 752 | |
Allowance for equity funds used during construction | (25) | (32) | |
Deferred income taxes and tax credits, net | 2 | 175 | |
Reorganization items, net (Note 2) | 20 | 0 | |
Other | 12 | (1) | |
Effect of changes in operating assets and liabilities: | |||
Accounts receivable | (51) | 112 | |
Wildfire-related insurance receivable | 25 | 197 | |
Inventories | 18 | 28 | |
Accounts payable | (132) | 55 | |
Wildfire-related claims | (14) | (118) | |
Income taxes receivable/payable | 5 | 0 | |
Other current assets and liabilities | 171 | (131) | |
Regulatory assets, liabilities, and balancing accounts, net | 343 | 114 | |
Liabilities subject to compromise | 833 | 0 | |
Other noncurrent assets and liabilities | 137 | (87) | |
Net cash provided by operating activities | 2,274 | 1,516 | |
Cash Flows from Investing Activities | |||
Capital expenditures | (1,224) | (1,470) | |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 346 | 494 | |
Purchases of nuclear decommissioning trust investments | (372) | (505) | |
Other | 3 | 6 | |
Net cash used in investing activities | (1,247) | (1,475) | |
Cash Flows from Financing Activities | |||
Proceeds from debtor-in-possession credit facility | 350 | 0 | |
Debtor-in-possession credit facility debt issuance costs | (95) | 0 | |
Net issuances (repayments) of commercial paper, net of discount | 0 | 47 | |
Short-term debt financing | 0 | 250 | |
Short-term debt matured | 0 | (250) | |
Long-term debt matured or repurchased | 0 | (400) | |
Other | (24) | (13) | |
Net cash provided by (used in) financing activities | 231 | (366) | |
Net change in cash, cash equivalents, and restricted cash | 1,258 | (325) | |
Cash, cash equivalents, and restricted cash at January 1 | 1,302 | 454 | 454 |
Cash, cash equivalents, and restricted cash at March 31 | 2,560 | 129 | 1,302 |
Less: Restricted cash and restricted cash equivalents included in other current assets | (8) | (7) | |
Cash and cash equivalents at March 31 | 2,552 | 122 | $ 1,295 |
Supplemental disclosures of cash flow information | |||
Interest, net of amounts capitalized | (8) | (259) | |
Supplemental disclosures of noncash operating activities | |||
Operating lease liabilities arising from obtaining ROU assets | 2,807 | 0 | |
Supplemental disclosures of noncash investing and financing activities | |||
Capital expenditures financed through accounts payable | $ 242 | $ 255 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 (consisting only of normal recurring 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, 2018 in the Condensed Consolidated Balance Sheets included in this quarterly report was derived from the audited Consolidated Balance Sheets in Item 8 of the 2018 Form 10-K. This quarterly report should be read in conjunction with the 2018 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, legal and regulatory contingencies, insurance recoveries, environmental remediation liabilities, AROs, pension and other post-retirement benefit plans obligations, and the valuation of pre-petition liabilities. 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 and results of operations during the period in which such change occurred. Chapter 11 Filing and Going Concern The accompanying Condensed Consolidated Financial Statements have been prepared on a going concern basis, which contemplates the continuity of operations, the realization of assets and the satisfaction of liabilities in the normal course of business. However, as a result of the challenges that are further described below, such realization of assets and satisfaction of liabilities are subject to uncertainty. PG&E Corporation and the Utility are facing extraordinary challenges relating to a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018. See Note 10 below. Uncertainty regarding these matters raises substantial doubt about PG&E Corporation’s and the Utility’s abilities to continue as going concerns. PG&E Corporation and the Utility determined that commencing reorganization cases under Chapter 11 is necessary to restore PG&E Corporation’s and the Utility’s financial stability to fund ongoing operations and provide safe service to customers. However, there can be no assurance that such proceedings will restore PG&E Corporation’s and the Utility’s financial stability. On the Petition Date, PG&E Corporation and the Utility filed voluntary petitions for relief under Chapter 11 in the Bankruptcy Court. The Condensed Consolidated Financial Statements do not include any adjustments that might be necessary should PG&E Corporation and the Utility be unable to continue as going concerns. Pursuant to Chapter 11, PG&E Corporation and the Utility retain control of their assets and are authorized to operate their business as debtors-in-possession while being subject to the jurisdiction of the Bankruptcy Court. While operating as debtors-in-possession under Chapter 11, PG&E Corporation and the Utility may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business and subject to restrictions in PG&E Corporation’s and the Utility’s DIP Credit Agreement (see Note 5 below) and applicable orders of the Bankruptcy Court, for amounts other than those reflected in the accompanying Condensed Consolidated Financial Statements. Any such actions occurring during the Chapter 11 Cases confirmed by the Bankruptcy Court could materially impact the amounts and classifications of assets and liabilities reported in PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements. (For more information regarding the Chapter 11 Cases, see Note 2 below.) |
BANKRUPTCY FILING
BANKRUPTCY FILING | 3 Months Ended |
Mar. 31, 2019 | |
Reorganizations [Abstract] | |
BANKRUPTCY FILING | BANKRUPTCY FILING Chapter 11 Proceedings On January 29, 2019, PG&E Corporation and the Utility filed the Chapter 11 Cases with the Bankruptcy Court. PG&E Corporation and the Utility continue 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. Under the Bankruptcy Code, third-party actions to collect pre-petition indebtedness owed by PG&E Corporation or the Utility, as well as most litigation pending against PG&E Corporation and the Utility (including the third-party matters described in Note 10 below), are subject to an automatic stay. Absent an order of the Bankruptcy Court providing otherwise, substantially all pre-petition liabilities will be administered under a Chapter 11 plan of reorganization to be voted upon by creditors and other stakeholders, and approved by the Bankruptcy Court. However, under the Bankruptcy Code, regulatory or criminal proceedings are generally not subject to an automatic stay, and PG&E Corporation and the Utility expect these proceedings to continue during the pendency of the Chapter 11 Cases. Under the priority scheme established by the Bankruptcy Code, certain post-petition and secured or “priority” pre-petition liabilities need to be satisfied before general unsecured creditors and holders of PG&E Corporation's and the Utility’s equity are entitled to receive any distribution. No assurance can be given as to what values, if any, will be ascribed in the Chapter 11 Cases to the claims and interests of each of these constituencies. Additionally, no assurance can be given as to whether, when or in what form unsecured creditors and holders of PG&E Corporation’s or the Utility’s equity may receive a distribution on such claims or interests. Under the Bankruptcy Code, PG&E Corporation and the Utility may assume, assume and assign, or reject certain executory contracts and unexpired leases, including, without limitation, leases of real property and equipment, subject to the approval of the Bankruptcy Court and to certain other conditions. Any description of an executory contract or unexpired lease in this quarterly report on Form 10-Q, or in the 2018 Form 10-K, including, where applicable, the express termination rights thereunder or a quantification of their obligations, must be read in conjunction with, and is qualified by, any overriding rejection rights PG&E Corporation and the Utility have under the Bankruptcy Code. Significant Bankruptcy Court Actions On January 31, 2019, the Bankruptcy Court approved, on an interim basis, certain motions (the “First Day Motions”) authorizing, but not directing, PG&E Corporation and the Utility to, among other things, (a) secure $5.5 billion of debtor-in-possession financing; (b) continue to use PG&E Corporation’s and the Utility’s cash management system; and (c) pay certain pre-petition claims relating to (i) certain safety, reliability, outage, and nuclear facility suppliers; (ii) shippers, warehousemen, and other lien claimants; (iii) taxes; (iv) employee wages, salaries, and other compensation and benefits; and (v) customer programs, including public purpose programs. The First Day Motions were subsequently approved by the Bankruptcy Court on a final basis at hearings on February 27, 2019, March 12, 2019, March 13, 2019, and March 27, 2019. Debtor-In-Possession Financing See Note 5 for further discussion of the DIP Facilities, which provide up to $5.5 billion in financing. Financial Reporting in Reorganization Effective on the Petition Date, PG&E Corporation and the Utility began to apply accounting standards applicable to reorganizations, which are applicable to companies under Chapter 11 bankruptcy protection. They require the financial statements for periods subsequent to the Petition Date to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Expenses, realized gains and losses, and provisions for losses that are directly associated with reorganization proceedings must be reported separately as reorganization items, net in the Condensed Consolidated Statements of Income. In addition, the balance sheet must distinguish pre-petition LSTC of PG&E Corporation and the Utility from pre-petition liabilities that are not subject to compromise, post-petition liabilities, and liabilities of the subsidiaries of PG&E Corporation that are not debtors in the Chapter 11 Cases in the Condensed Consolidated Balance Sheets. LSTC are pre-petition obligations that are not fully secured and have at least a possibility of not being repaid at the full claim amount. Where there is uncertainty about whether a secured claim will be paid or impaired pursuant to the Chapter 11 Cases, PG&E Corporation and the Utility have classified the entire amount of the claim as LSTC. Furthermore, the realization of assets and the satisfaction of liabilities are subject to uncertainty. While operating as debtors-in-possession, certain claims against PG&E Corporation and the Utility in existence before the filing of the petitions for relief under the federal bankruptcy laws are stayed while PG&E Corporation and the Utility continue business operations as debtors in possession. These claims are reflected as LSTC in the Condensed Consolidated Balance Sheets at March 31, 2019 . Additional claims (which could be LSTC) may arise after the Petition Date resulting from rejection of executory contracts, including leases, and from the determination by the Bankruptcy Court (or agreement by parties in interest) of allowed claims for contingencies and other disputed amounts. PG&E Corporation’s Condensed Consolidated Financial Statements are presented on a consolidated basis and include the accounts of PG&E Corporation and the Utility and other subsidiaries of PG&E Corporation and the Utility that individually and in aggregate are immaterial. Such other subsidiaries did not file for bankruptcy. The Utility’s Condensed Consolidated Financial Statements are presented on a consolidated basis and include the accounts of the Utility and other subsidiaries of the Utility that individually and in aggregate are immaterial. Such other subsidiaries did not file for bankruptcy. Liabilities Subject to Compromise As a result of the commencement of the Chapter 11 Cases, the payment of pre-petition liabilities is generally subject to compromise pursuant to a plan of reorganization. Generally, actions to enforce or otherwise effect payment of pre-petition liabilities are stayed. Although payment of pre-petition claims generally is not permitted, the Bankruptcy Court granted PG&E Corporation and the Utility authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of PG&E Corporation’s and the Utility’s business and assets. Among other things, the Bankruptcy Court authorized, but did not require, PG&E Corporation and the Utility to pay certain pre-petition claims relating to employee wages and benefits, taxes, and certain vendors. As a result of the Chapter 11 Cases, the payment of pre-petition indebtedness is subject to compromise or other treatment under a plan of reorganization. The determination of how liabilities will ultimately be settled or treated cannot be made until the Bankruptcy Court confirms a Chapter 11 plan of reorganization and such plan becomes effective. Accordingly, the ultimate amount of such liabilities is not determinable at this time. GAAP requires pre-petition liabilities that are subject to compromise to be reported at the amounts expected to be allowed by the Bankruptcy Court, even if they may be settled for different amounts. The amounts currently classified as LSTC are preliminary and may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, rejection of executory contracts, continued reconciliation or other events. The following table presents LSTC as reported in the Condensed Consolidated Balance Sheets at March 31, 2019 : (in millions) PG&E Corporation (1) Utility PG&E Corporation Consolidated Financing debt (2) $ 650 $ 21,811 $ 22,461 Wildfire-related claims (3) — 14,212 14,212 Trade creditors 1 1,850 1,851 Non-qualified benefit plan 122 17 139 2001 bankruptcy disputed claims — 221 221 Customer deposits & advances — 272 272 Other 2 164 166 Total Liabilities Subject to Compromise $ 775 $ 38,547 $ 39,322 (1) PG&E Corporation amounts reflected under the column “PG&E Corporation” exclude the accounts of the Utility. (2) At March 31, 2019 , PG&E Corporation and the Utility had $650 million and $21,526 million in aggregate principal amount of indebtedness, respectively. Utility financing debt also includes $285 million of accrued contractual interest to the Petition Date. See Note 5 for details of pre-petition debt reported as LSTC. (3) See Note 10 for details of pre-petition wildfire-related claims reported as LSTC. Reorganization Items, Net Reorganization items, net represent amounts incurred after the Petition Date as a direct result of the Chapter 11 Cases and are comprised of professional fees and financing costs, net of interest income. Reorganization items also include adjustments to reflect the carrying value of LSTC at their estimated allowed claim amounts, as such adjustments are determined. Cash paid for reorganization items, net was $ 17 million and $ 91 million for PG&E Corporation and the Utility, respectively, during the three months ended March 31, 2019. Reorganization items, net as of March 31, 2019 include the following: Post-Petition Period Through March 31, 2019 (in millions) PG&E Corporation (1) Utility PG&E Corporation Consolidated Debtor-in-possession financing costs 17 97 114 Legal and other $ 1 $ 23 $ 24 Interest income (2 ) (9 ) (11 ) Total reorganization items, net $ 16 $ 111 $ 127 (1) PG&E Corporation amounts reflected under the column “PG&E Corporation” exclude the accounts of the Utility. Contractual Interest on Debt Subject to Compromise Effective as of the Petition Date, PG&E Corporation and the Utility ceased recording interest expense on outstanding pre-petition debt. Contractual interest expense represents amounts due under the contractual terms of outstanding pre-petition debt. From the Petition Date through March 31, 2019, contractual interest expense of $166 million related to LSTC has not been recorded in the financial statements. Additionally, the portion of authorized revenues from the Petition Date through March 31, 2019 related to interest expense on pre-petition debt has been deferred as a non-current regulatory liability. Resolution of Remaining 2001 Chapter 11 Disputed Claims Various electricity suppliers filed claims in the Utility’s 2001 prior proceeding filed under Chapter 11 of the U.S. Bankruptcy Code seeking payment for energy supplied to the Utility’s customers between May 2000 and June 2001. While the FERC and judicial proceedings are pending, the Utility pursued settlements with electricity suppliers and entered into a number of settlement agreements with various electricity suppliers to resolve some of these disputed claims and to resolve the Utility’s refund claims against these electricity suppliers. Under these settlement agreements, amounts payable by the parties, in some instances, would be subject to adjustment based on the outcome of the various refund offset and interest issues being considered by the FERC. Generally, any net refunds, claim offsets, or other credits that the Utility receives from electricity suppliers either through settlement or through the conclusion of the various FERC and judicial proceedings are refunded to customers through rates in future periods. The Utility’s obligations with respect to such claims (all of which arose prior to the initiation of the Utility’s pending Chapter 11 Case on January 29, 2019), including pursuant to any prior settlements relating thereto, are expected to be determined through the proceedings of the Chapter 11 Cases. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For a summary of the significant accounting policies used by PG&E Corporation and the Utility, see Note 2 of the Condensed Consolidated Financial Statements above and Note 2 of the Notes to the Consolidated Financial Statements in Item 8 of the 2018 Form 10-K. 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. 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 has a controlling interest or was the primary beneficiary of any of these VIEs at March 31, 2019 , the Utility 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 at March 31, 2019 , 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. The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three months ended March 31, 2019 and 2018 were as follows: Pension Benefits Other Benefits Three Months Ended March 31, (in millions) 2019 2018 2019 2018 Service cost for benefits earned (1) $ 111 $ 128 $ 14 $ 16 Interest cost 189 172 19 17 Expected return on plan assets (227 ) (255 ) (31 ) (33 ) Amortization of prior service cost (1 ) (1 ) 4 4 Amortization of net actuarial loss 1 1 (1 ) (1 ) Net periodic benefit cost 73 45 5 3 Regulatory account transfer (2) 10 39 — — Total $ 83 $ 84 $ 5 $ 3 (1) A portion of service costs are capitalized pursuant to ASU 2017-07. (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. On February 27, 2019, PG&E Corporation and the Utility received final approval from the Bankruptcy Court to maintain existing pension and other benefit plans during the pendency of the Chapter 11 Cases. 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) are summarized below: Pension Other Total (in millions, net of income tax) Three Months Ended March 31, 2019 Beginning balance $ (21 ) $ 17 $ (4 ) Amounts reclassified from other comprehensive income: Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1) (1 ) 3 2 Amortization of net actuarial loss (net of taxes of $0 and $0, respectively) (1) 1 (1 ) — Regulatory account transfer (net of taxes of $0 and $1, respectively) (1) — (2 ) (2 ) Net current period other comprehensive gain (loss) — — — Ending balance $ (21 ) $ 17 $ (4 ) (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 March 31, 2018 Beginning balance $ (25 ) $ 17 $ (8 ) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1 ) 3 2 Amortization of net actuarial loss (net of taxes of $0 and $0, respectively) 1 (1 ) — Regulatory account transfer (net of taxes of $0 and $1, respectively) — (2 ) (2 ) Reclassification of stranded income tax to retained earnings (net of taxes of $0 and $0, respectively) (5 ) — (5 ) Net current period other comprehensive gain (loss) (5 ) — (5 ) Ending balance $ (30 ) $ 17 $ (13 ) (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. 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 GRC and its GT&S rate cases, which generally occur every three or four years . The Utility’s ability to recover revenue requirements authorized by the CPUC in these rate cases is independent, or “decoupled,” from the volume of the Utility’s sales of electricity and natural gas services. 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 CPUC also has authorized the Utility to collect additional revenue requirements to recover costs that the Utility has been authorized 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 March 31, (in millions) 2019 2018 Electric Revenue from contracts with customers Residential $ 1,288 $ 1,336 Commercial 953 1,073 Industrial 293 324 Agricultural 86 125 Public street and highway lighting 17 20 Other (1) (309 ) (201 ) Total revenue from contracts with customers - electric 2,328 2,677 Regulatory balancing accounts (2) 464 274 Total electric operating revenue $ 2,792 $ 2,951 Natural gas Revenue from contracts with customers Residential $ 1,171 $ 958 Commercial 240 196 Transportation service only 382 297 Other (1) (75 ) (52 ) Total revenue from contracts with customers - gas 1,718 1,399 Regulatory balancing accounts (2) (499 ) (294 ) Total natural gas operating revenue 1,219 1,105 Total operating revenues $ 4,011 $ 4,056 (1) This activity is primarily related to the change in unbilled revenue, partially offset by other miscellaneous revenue items. (2) These amounts represent revenues authorized to be billed or refunded to customers. Recently Adopted Accounting Standards Recognition of Lease Assets and Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which amends the guidance relating to the definition of a lease, the recognition of lease assets and lease liabilities on the balance sheet, and the disclosure of key information about leasing arrangements. Under the new standard, all lessees must recognize a ROU asset, reflecting the right to use the underlying asset for the lease term, and a lease liability, reflecting the obligation to make lease payments, on the balance sheet. Operating leases were previously not recognized on the balance sheet. PG&E Corporation and the Utility adopted the ASU on January 1, 2019. PG&E Corporation and the Utility elected certain practical expedients and will carry forward historical conclusions related to (1) contracts that contain leases, (2) existing lease and easement classification, and (3) initial direct costs. After adoption of the new standard, the Corporation and Utility elected to not separate lease and non-lease components. Additionally, PG&E Corporation and the Utility have elected not to restate comparative periods upon adoption. PG&E Corporation and the Utility determine if an arrangement is a lease at inception. As most of the leases do not provide implicit discount rates, the Utility uses an estimate of its incremental secured borrowing rates based on observed market data and other information available at the lease commencement date. The ROU assets and lease liabilities include only fixed lease payments, and leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease terms will only include options to extend or terminate the lease when it is reasonably certain that the Utility will exercise such options. The Utility recognizes lease expense in conformity with ratemaking. Operating leases are included in operating lease ROU assets and current and noncurrent operating lease liabilities on the Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, other current liabilities, and other noncurrent liabilities on the Condensed Consolidated Balance Sheets. Financing leases were immaterial for the three months ended March 31, 2019. Cash payments arising from operating leases were $335 million for the three months ended March 31, 2019 and are presented within operating activities on the Condensed Consolidated Statement of Cash Flows. Cash payments for the principal portion of the financing lease liability will continue to be presented within financing activities. Variable lease payments, if any, not included in the financing lease liability, if any, are presented within operating activities. On January 1, 2019, PG&E Corporation and the Utility recorded ROU assets and lease liabilities of $2.8 billion , representing the net present value of fixed lease payments and excluding any variable lease payments. This amount is presented within the supplemental disclosures of noncash activities for the three months ended, March 31, 2019. The majority of the Utility’s ROU assets and lease liabilities relate to various power purchase agreements. These power purchase agreements primarily consist of generation plants leased to meet customer demand plus applicable reserve margins, for terms between 5 years and 20 years . PG&E Corporation and the Utility have also recorded ROU assets and lease liabilities related to property and land leases. At March 31, 2019 , the Utility’s operating leases had a weighted average remaining lease term of 6.3 years and a weighted average discount rate of 6.11% . The following table shows the lease expense recognized for the fixed and variable component of the Utility’s lease obligations: (in millions) Three Months Ended March 31, 2019 Operating lease fixed cost $ 122 Operating lease variable cost 309 Total operating lease costs $ 431 The following table shows the Utility’s future expected operating lease payments: (in millions) March 31, 2019 2019 $ 686 2020 669 2021 616 2022 523 2023 195 Thereafter 672 Total lease payments 3,361 Less imputed interest (633 ) Total $ 2,728 The following table shows the Utility’s future expected obligations for power purchase and other lease commitments: (in millions) December 31, 2018 2019 $ 684 2020 677 2021 621 2022 546 2023 252 Thereafter 581 Total lease commitments $ 3,361 Accounting Standards Issued But Not Yet Adopted Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements , which amends the existing guidance relating to the disclosure requirements for fair value measurements. The ASU will be effective for PG&E Corporation and the Utility on January 1, 2020 with early adoption permitted. PG&E Corporation and the Utility are currently evaluating the impact the guidance will have on their Condensed Consolidated Financial Statements and related disclosures. Intangibles-Goodwill and Other In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU will be effective for PG&E Corporation and the Utility on January 1, 2020 with early adoption permitted. PG&E Corporation and the Utility are currently evaluating the impact the guidance will have on their Condensed Consolidated Financial Statements and related disclosures. |
REGULATORY ASSETS, LIABILITIES,
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | 3 Months Ended |
Mar. 31, 2019 | |
Regulated Operations [Abstract] | |
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | REGULATORY A SSETS, LIABILITIES, AND BALANCING ACCOUNTS Regulatory Assets and Liabilities Long-Term Regulatory Assets Long-term regulatory assets are comprised of the following: Asset Balance at (in millions) March 31, 2019 December 31, 2018 Pension benefits (1) $ 1,938 $ 1,947 Environmental compliance costs 932 1,013 Utility retained generation (2) 262 274 Price risk management 65 90 Unamortized loss, net of gain, on reacquired debt (3) 237 76 Catastrophic event memorandum account (4) 865 790 Wildfire expense memorandum account (5) 111 94 Fire hazard prevention memorandum account (6) 329 263 Other 412 417 Total long-term regulatory assets $ 5,151 $ 4,964 (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 the accelerated amortization of premiums and debt issuance costs on pre-petition debt. (4) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. Recovery of CEMA costs are subject to CPUC review and approval. (5) Includes specific incremental wildfire liability costs the CPUC approved for tracking in June 2018. Recovery of WEMA costs are subject to CPUC review and approval. (6) 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 are subject to CPUC review and approval. Current Regulatory Liabilities Current regulatory liabilities are primarily comprised of the current portion of the tax reform adjustment recorded as a result of the Tax Act. Long-Term Regulatory Liabilities Long-term regulatory liabilities are comprised of the following: Liability Balance at (in millions) March 31, 2019 December 31, 2018 Cost of removal obligations (1) $ 6,134 $ 5,981 Deferred income taxes (2) 142 283 Recoveries in excess of AROs (3) 471 356 Public purpose programs (4) 758 674 Retirement Plan (5) 422 421 Other 945 824 Total long-term regulatory liabilities $ 8,872 $ 8,539 (1) Represents the cumulative differences between asset removal costs recorded and amounts collected in rates for expected asset removal costs. (2) Represents the net of amounts owed to customers for deferred taxes collected at higher rates before the Tax Act and amounts owed to the Utility for reversal of deferred taxes subject to flow-through treatment. (3) 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 9 below.) (4) 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. (5) Represents cumulative differences between incurred costs and amounts collected in rates for Post-Retirement Medical, Post-Retirement Life and Long Term Disability Plans. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2018 Form 10-K. Regulatory Balancing Accounts Current regulatory balancing accounts receivable and payable are comprised of the following: Receivable Balance at (in millions) March 31, 2019 December 31, 2018 Electric distribution $ 449 $ 160 Electric transmission 128 128 Utility generation 357 79 Gas distribution and transmission 70 462 Energy procurement 137 168 Public purpose programs 76 111 Other 280 327 Total regulatory balancing accounts receivable $ 1,497 $ 1,435 Payable Balance at (in millions) March 31, 2019 December 31, 2018 Electric transmission 146 134 Gas distribution and transmission 51 9 Energy procurement 223 59 Public purpose programs 600 587 Other 325 287 Total regulatory balancing accounts payable $ 1,345 $ 1,076 For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2018 Form 10-K. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debtor-In-Possession Facilities In connection with the Chapter 11 Cases, PG&E Corporation and the Utility entered into the DIP Credit Agreement, among the Utility, as borrower, PG&E Corporation, as guarantor, JPMorgan Chase Bank, N.A., as administrative agent, Citibank, N.A., as collateral agent, and the lenders and issuing banks party thereto (together with such other financial institutions from time to time party thereto, the “DIP Lenders”). The DIP Credit Agreement provides for $ 5.5 billion in senior secured superpriority debtor in possession credit facilities in the form of (i) a revolving credit facility in an aggregate amount of $ 3.5 billion (the “DIP Revolving Facility”), including a $ 1.5 billion letter of credit subfacility, (ii) a term loan facility in an aggregate principal amount of $ 1.5 billion (the “DIP Initial Term Loan Facility”) and (iii) a delayed draw term loan facility in an aggregate principal amount of $ 500 million (the “DIP Delayed Draw Term Loan Facility”, together with the DIP Revolving Facility and the DIP Initial Term Loan Facility, the “DIP Facilities”), subject to the terms and conditions set forth therein. On the Petition Date, PG&E Corporation and the Utility filed a motion seeking, among other things, interim and final approval of the DIP Facilities, which motion was granted on an interim basis by the Bankruptcy Court following a hearing on January 31, 2019. As a result of the Bankruptcy Court’s interim approval of the DIP Facilities and the satisfaction of the other conditions thereof, the DIP Credit Agreement became effective on February 1, 2019 and a portion of the DIP Revolving Facility in the amount of $ 1.5 billion (including $ 750 million of the letter of credit subfacility) was made available to the Utility. On March 27, 2019, the Bankruptcy Court approved the DIP Facilities on a final basis, authorizing the Utility to borrow up to the remainder of the DIP Revolving Facility (including the remainder of the $ 1.5 billion letter of credit subfacility), the DIP Initial Term Loan Facility and the DIP Delayed Draw Term Loan Facility, in each case subject to the terms and conditions of the DIP Credit Agreement. Borrowings under the DIP Facilities are senior secured obligations of the Utility, secured by substantially all of the Utility’s assets and entitled to superpriority administrative expense claim status in the Utility’s Chapter 11 Case. The Utility’s obligations under the DIP Facilities are guaranteed by PG&E Corporation, and such guarantee is a senior secured obligation of PG&E Corporation, secured by substantially all of PG&E Corporation’s assets and entitled to superpriority administrative expense claim status in PG&E Corporation’s Chapter 11 Case. On February 1, 2019, the Utility borrowed $ 350 million under the DIP Revolving Facility. On April 3, 2019, following the Bankruptcy Court’s final approval of the DIP Facilities, the Utility borrowed $ 1.5 billion under the DIP Initial Term Loan Facility and repaid the $350 million outstanding under the DIP Revolving Facility. The commencement of the Chapter 11 Cases constituted an event of default or termination event with respect to, and caused an automatic and immediate acceleration of the debt outstanding under or in respect of, certain instruments and agreements relating to direct financial obligations of PG&E Corporation and the Utility (the “Accelerated Direct Financial Obligations”). However, any efforts to enforce such payment obligations are automatically stayed as of the Petition Date, and are subject to the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The material Accelerated Direct Financial Obligations include the Utility’s outstanding senior notes, agreements in respect of certain series of pollution control bonds, and PG&E Corporation’s term loan facility, as well as short-term borrowings under PG&E Corporation’s and the Utility’s revolving credit facilities and the Utility’s term loan facility. For more information, see Note 15 of the Notes to the Consolidated Financial Statements in Item 8 of the 2018 Form 10-K. Debtor-in-Possession Financing The following table summarizes the Utility’s outstanding borrowings and availability under the DIP Facilities at March 31, 2019 : (in millions) Termination Date Limit Letters of Credit Outstanding Borrowings Against DIP Revolving Facility Availability DIP Facilities December 2020 (1) $ 1,500 (2) $ 131 $ 350 $ 1,019 (1) May be extended to December 2021, subject to satisfaction of certain terms and conditions, including payment of a 25 basis point extension fee. (2) On March 27, 2019, the Bankruptcy Court approved the DIP Facilities in full, but the conditions precedent to the full availability of the DIP Facilities were not satisfied until April 3, 2019. Accordingly, the amounts set forth in this table are based on the interim availability under the DIP Revolving Facility of $1.5 billion . As of March 31, 2019 , PG&E Corporation and the Utility each had no commercial paper borrowings outstanding. PG&E Corporation and the Utility do not expect to be able to access the commercial paper market for the duration of the Chapter 11 Cases. Debt The following table summarizes PG&E Corporation’s and the Utility’s outstanding debt subject to compromise: Balance at, (in millions) Contractual Interest Rates March 31, 2019 December 31, 2018 Debt Subject to Compromise (1) PG&E Corporation Borrowings under Pre-Petition Credit Facilities PG&E Corporation Revolving Credit Facilities - Stated Maturity: 2022 variable rate (2) $ 300 $ 300 Other borrowings: Term Loan - Stated Maturity: 2020 variable rate (3) 350 350 Total PG&E Corporation Debt Subject to Compromise 650 650 Utility Senior Notes - Stated Maturity: 2020 3.50% 800 800 2021 3.25% to 4.25% 550 550 2022 2.45% 400 400 2023 3.25% to 4.25% 1,175 1,175 2024 through 2046 2.95% to 6.35% 14,600 14,600 Unamortized discount, net or premium and debt issuance costs — (178 ) Total Senior notes, net of premium and debt issuance costs 17,525 17,347 Pollution Control Bonds - Stated Maturity: Series 2008 F and 2010 E, due 2026 (4) 1.75% 100 100 Series 2009 A-B, due 2026 (5) variable rate (6) 149 149 Series 1996 C, E, F, 1997 B due 2026 (5) variable rate (7) 614 614 Total pollution control bonds 863 863 Borrowings under Pre-Petition Credit Facilities Utility Revolving Credit Facilities - Stated Maturity: 2022 (8) variable rate (9) 2,965 2,965 Other borrowings: Term Loan - Stated Maturity: 2019 variable rate (10) 250 250 Total Borrowings under Pre-Petition Credit Facility Subject to Compromise 3,215 3,215 Total Utility Debt Subject to Compromise 21,603 21,425 Total PG&E Corporation Consolidated Debt Subject to Compromise $ 22,253 $ 22,075 (1) LSTC must be reported at the amounts expected to be allowed by the Bankruptcy Court. The carrying value of the debt subject to compromise will be adjusted as claims are approved. As of March 31, 2019 , PG&E Corporation and the Utility wrote off $178 million of unamortized debt issuance costs and debt discount to present the debt subject to compromise at the outstanding face value. The write-offs are included within long-term regulatory assets in the Condensed Consolidated Statements of Income. See Notes 2 and 4 for further details. (2) At March 31, 2019 , the contractual LIBOR-based interest rate on loans were 3.97% . (3) At March 31, 2019 , the contractual LIBOR-based interest rate on the term loan was 3.71% . (4) Pollution Control Bonds series 2008F and 2010E were reissued in June 2017. Although the stated maturity date for both series is 2026, these bonds have a mandatory redemption date of May 31, 2022. (5) Each series of these bonds is supported by a separate direct-pay letter of credit. Following the Utility’s Chapter 11 filing, investors in these bonds drew on the letter of credit facilities. The letter of credit facility supporting the Series 2009 A-B bonds has a maturity date of June 5, 2019. In December 2015, the maturity dates of the letter of credit facilities supporting the Series 1996 C, E, F, 1997 B bonds were extended to December 1, 2020. Although the stated maturity date of these bonds is 2026, each series will remain outstanding only if the Utility extends or replaces the letter of credit related to the series or otherwise obtains consent from the issuer to the continuation of the series without a credit facility. (6) At March 31, 2019, the contractual interest rate on the letter of credit facility supporting these bonds was 4.13% . (7) At March 31, 2019 , the contractual interest rate on the letter of credit facility supporting these bonds ranged from 4.13% to 4.47% . (8) Also includes $80 million in letters of credit. (9) At March 31, 2019 , the contractual LIBOR-based interest rate was 3.67% . (10) At March 31, 2019 , the contractual LIBOR-based interest rate was 3.09% . |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY PG&E Corporation’s changes in equity for the three months ended March 31, 2019 and 2018 were as follows: (in millions, except share amounts) Common Stock Shares Common Stock Amount Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Non controlling Interest - Preferred Stock of Subsidiary Total Equity Balance at December 31, 2018 520,338,710 $ 12,910 $ (250 ) $ (9 ) $ 12,651 $ 252 $ 12,903 Net income (loss) — — 136 — 136 — 136 Other comprehensive loss — — — — — — — Common stock issued, net 8,871,568 85 — — 85 — 85 Stock-based compensation amortization — 5 — — 5 — 5 Balance at March 31, 2019 529,210,278 $ 13,000 $ (114 ) $ (9 ) $ 12,877 $ 252 $ 13,129 (in millions, except share amounts) Common Stock Shares Common Stock Amount Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Non controlling Interest - Preferred Stock of Subsidiary Total Equity Balance at December 31, 2017 514,775,845 $ 12,632 $ 6,596 $ (8 ) $ 19,220 $ 252 $ 19,472 Net income — — 445 — 445 — 445 Other comprehensive income — — — — — — — Common stock issued, net 1,248,112 35 — — 35 — 35 Stock-based compensation amortization — 34 — — 34 — 34 Preferred stock dividend requirement of subsidiary — — (3 ) — (3 ) — (3 ) Balance at March 31, 2018 516,023,957 $ 12,701 $ 7,038 $ (8 ) $ 19,731 $ 252 $ 19,983 The Utility’s changes in equity for the three months ended March 31, 2019 and 2018 were as follows: (in millions) Preferred Stock Common Additional Paid-in Capital Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance at December 31, 2018 $ 258 $ 1,322 $ 8,550 $ 2,826 $ (1 ) $ 12,955 Net income (loss) — — — 133 — 133 Other comprehensive loss — — — — — — Equity contribution — — — — — — Preferred stock dividend — — — — — — Balance at March 31, 2019 $ 258 $ 1,322 $ 8,550 $ 2,959 $ (1 ) $ 13,088 (in millions) Preferred Stock Common Additional Paid-in Capital Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance at December 31, 2017 258 1,322 8,505 9,656 6 $ 19,747 Net income — — — 452 — 452 Other comprehensive income — — — 2 (2 ) — Equity contribution — — — — — — Common stock dividend — — — — — — Preferred stock dividend — — — (3 ) — (3 ) Balance at March 31, 2018 $ 258 $ 1,322 $ 8,505 $ 10,107 $ 4 $ 20,196 There were no issuances under the PG&E Corporation February 2017 equity distribution agreement for the three months ended March 31, 2019 . PG&E Corporation issued common stock under the PG&E Corporation 401(k) plan and share-based compensation plans. During the three months ended March 31, 2019 , 8.9 million shares were issued for cash proceeds of $ 85 million under these plans. Beginning January 1, 2019 PG&E Corporation changed its default matching contributions under its 401(k) plan from PG&E Corporation common stock to cash. Beginning in March 2019, at PG&E Corporation’s directive, the 401(k) plan trustee began purchasing new shares in the PG&E Corporation common stock fund on the open market rather than directly from PG&E Corporation. 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, due to the uncertainty related to the causes of and potential liabilities associated with the Northern California wildfires. See Wildfire-related contingencies in Note 10 below. The DIP Credit Agreement includes usual and customary covenants for debtor-in-possession loan agreements of this type, including covenants limiting PG&E Corporation’s and the Utility’s ability to, among other things, declare and pay any dividend or make any other distributions with respect to any of their capital stock. Also, on April 3, 2019, the court overseeing the Utility’s probation issued an order imposing new conditions of probation, including foregoing issuing “any dividends until [the Utility] is in compliance with all applicable vegetation management requirements under applicable law and the Utility’s wildfire mitigation plan.” PG&E Corporation does not expect to pay any cash dividends during the Chapter 11 Cases. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE PG&E Corporation’s basic EPS are 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 March 31, (in millions, except per share amounts) 2019 2018 Income available for common shareholders $ 136 $ 445 Preferred stock dividend requirement of subsidiary 3 3 Adjusted income available for common shareholders 133 442 Weighted average common shares outstanding, basic 526 515 Add incremental shares from assumed conversions: Employee share-based compensation 1 1 Weighted average common shares outstanding, diluted 527 516 Total earnings per common share, diluted $ 0.25 $ 0.86 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 customer 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 recorded at fair value and on a net basis in accordance with master netting arrangements for each counter-party. 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 in 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. Volume of Derivative Activity The volumes of the Utility’s outstanding derivatives were as follows: Contract Volume at Underlying Product Instruments March 31, December 31, Natural Gas (1) (MMBtus (2) ) Forwards, Futures and Swaps 138,016,980 177,750,349 Options 4,115,000 13,735,405 Electricity (Megawatt-hours) Forwards, Futures and Swaps 3,011,826 3,833,490 Congestion Revenue Rights (3) 335,556,726 340,783,089 (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 At March 31, 2019 , the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Balance Netting Cash Collateral Total Derivative Balance Current assets – other $ 45 $ (2 ) $ 38 $ 81 Other noncurrent assets – other 165 1 — 166 Current liabilities – other (37 ) 17 3 (17 ) Noncurrent liabilities – other (49 ) (16 ) — (65 ) Total commodity risk $ 124 $ — $ 41 $ 165 At December 31, 2018 , the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Balance Netting Cash Collateral Total Derivative Balance Current assets – other $ 44 $ (1 ) $ 89 $ 132 Other noncurrent assets – other 165 — — 165 Current liabilities – other (29 ) 1 7 (21 ) Noncurrent liabilities – other (90 ) — 2 (88 ) Total commodity risk $ 90 $ — $ 98 $ 188 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 2,898 $ — $ — $ — $ 2,898 Nuclear decommissioning trusts Short-term investments 18 — — — 18 Global equity securities 1,882 — — — 1,882 Fixed-income securities 790 692 — — 1,482 Assets measured at NAV — — — — 18 Total nuclear decommissioning trusts (2) 2,690 692 — — 3,400 Price risk management instruments (Note 8) Electricity — 1 209 15 225 Gas — — — 22 22 Total price risk management instruments — 1 209 37 247 Rabbi trusts Fixed-income securities — 96 — — 96 Life insurance contracts — 69 — — 69 Total rabbi trusts — 165 — — 165 Long-term disability trust Short-term investments 8 — — — 8 Assets measured at NAV — — — — 146 Total long-term disability trust 8 — — — 154 TOTAL ASSETS $ 5,596 $ 858 $ 209 $ 37 $ 6,864 Liabilities: Price risk management instruments (Note 8) Electricity $ 1 $ 3 $ 80 $ (4 ) $ 80 Gas — 2 — — 2 TOTAL LIABILITIES $ 1 $ 5 $ 80 $ (4 ) $ 82 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral. (2) Represents amount before deducting $468 million , primarily related to deferred taxes on appreciation of investment value. Fair Value Measurements December 31, 2018 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 1,593 $ — $ — $ — $ 1,593 Nuclear decommissioning trusts Short-term investments 29 — — — 29 Global equity securities 1,793 — — — 1,793 Fixed-income securities 661 639 — — 1,300 Assets measured at NAV — — — — 16 Total nuclear decommissioning trusts (2) 2,483 639 — — 3,138 Price risk management instruments (Note 8) Electricity — 5 203 51 259 Gas — 1 — 37 38 Total price risk management instruments — 6 203 88 297 Rabbi trusts Fixed-income securities — 93 — — 93 Life insurance contracts — 67 — — 67 Total rabbi trusts — 160 — — 160 Long-term disability trust Short-term investments 7 — — — 7 Assets measured at NAV — — — — 155 Total long-term disability trust 7 — — — 162 TOTAL ASSETS $ 4,083 $ 805 $ 203 $ 88 $ 5,350 Liabilities: Price risk management instruments (Note 8) Electricity $ 4 $ 5 $ 108 $ (10 ) $ 107 Gas — 2 — — 2 TOTAL LIABILITIES $ 4 $ 7 $ 108 $ (10 ) $ 109 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral. (2) Represents amount before deducting $408 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. Transfers between levels in the fair value hierarchy are recognized as of the end of the reporting period. There were no material transfers between any levels for the three months ended March 31, 2019 and 2018 . 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 and other trust assets are composed primarily of equity and fixed-income securities and also include short-term investments that are money market funds valued at 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 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. Market and credit risk management 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 Sensitivity Analysis The Utility’s market and credit risk management function, which reports to PG&E Corporation’s Chief Financial Officer, is responsible for determining the fair value of the Utility’s price risk management derivatives. The Utility’s finance and risk management functions collaborate to determine the appropriate fair value methodologies and classification for each derivative. 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 customer rates; therefore, there is no impact to net income resulting from changes in the fair value of these instruments. (See Note 8 above.) Fair Value at (in millions) March 31, 2019 Fair Value Measurement Assets Liabilities Valuation Unobservable Range (1) Congestion revenue rights $ 203 $ 60 Market approach CRR auction prices $(36.87) - 23.04 Power purchase agreements $ 6 $ 20 Discounted cash flow Forward prices $ 19.81 - 38.80 (1) Represents price per megawatt-hour. Fair Value at (in millions) December 31, 2018 Fair Value Measurement Assets Liabilities Valuation Technique Unobservable Input Range (1) Congestion revenue rights $ 203 $ 75 Market approach CRR auction prices $ (18.61) - 32.26 Power purchase agreements $ — $ 33 Discounted cash flow Forward prices $ 19.81 - 38.80 (1) Represents price per megawatt-hour. Level 3 Reconciliation The following tables present the reconciliation for Level 3 price risk management instruments for the three months ended March 31, 2019 and 2018 : Price Risk Management Instruments (in millions) 2019 2018 Asset (liability) balance as of January 1 $ 95 $ 42 Net realized and unrealized gains: Included in regulatory assets and liabilities or balancing accounts (1) 34 (2 ) Asset (liability) balance as of March 31 $ 129 $ 40 (1) The costs related to price risk management activities are fully passed through to customers in 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 at March 31, 2019 and December 31, 2018 , as they are short-term in nature or have interest rates that reset daily. The carrying amount and fair value of PG&E Corporation’s and the Utility’s debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values): At March 31, 2019 At December 31, 2018 (in millions) Carrying Amount Level 2 Fair Value Carrying Amount Level 2 Fair Value PG&E Corporation (1) — — $ 350 $ 350 Utility (1)(2) 350 350 17,450 14,747 (1) On January 29, 2019 PG&E Corporation and the Utility filed for Chapter 11 protection. Debt held by PG&E Corporation and the Utility became debt subject to compromise and is valued at the allowed claim amount. For more information, see Note 2 and Note 4. (2) The Utility drew $350 million from the DIP Revolving Facility on February 1, 2019 which was subsequently repaid on April 3, 2019 using certain of the proceeds of the DIP Initial Term Loan Facility. Nuclear Decommissioning Trust Investments The following table provides a summary of equity securities and available-for-sale debt securities: (in millions) As of March 31, 2019 Amortized Total Unrealized Gains Total Unrealized Losses Total Fair Nuclear decommissioning trusts Short-term investments $ 18 $ — $ — $ 18 Global equity securities 481 1,422 (3 ) 1,900 Fixed-income securities 1,432 58 (8 ) 1,482 Total (1) $ 1,931 $ 1,480 $ (11 ) $ 3,400 As of December 31, 2018 Nuclear decommissioning trusts Short-term investments $ 29 $ — $ — $ 29 Global equity securities 568 1,246 (5 ) 1,809 Fixed-income securities 1,288 30 (18 ) 1,300 Total (1) $ 1,885 $ 1,276 $ (23 ) $ 3,138 (1) Represents amounts before deducting $468 million and $408 million for the periods ended March 31, 2019 and December 31, 2018 , 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) March 31, 2019 Less than 1 year $ 31 1–5 years 534 5–10 years 337 More than 10 years 580 Total maturities of fixed-income securities $ 1,482 The following table provides a summary of activity for fixed income and equity securities: Three Months Ended March 31, (in millions) 2019 2018 Proceeds from sales and maturities of nuclear decommissioning trust investments $ 346 $ 494 Gross realized gains on securities (34 ) 37 Gross realized losses on securities 19 (4 ) |
WILDFIRE-RELATED CONTINGENCIES
WILDFIRE-RELATED CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
WILDFIRE-RELATED CONTINGENCIES | WILDFIRE-RELATED CONTINGENCIES 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, 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. Wildfire-Related Claims Wildfire-related claims on the Condensed Consolidated Financial Statements include amounts associated with the 2018 Camp fire, the 2017 Northern California wildfires, and the 2015 Butte fire. For the three months ended March 31, 2019 and 2018 , the Utility’s Condensed Consolidated Statements of Income include estimated losses offset by insurance recoveries of $7 million for the three months ended March 31, 2018 , with no recoveries in the same period in 2019. In addition, during the three months ended March 31, 2019 , the Utility incurred $13 million and $34 million of legal and other costs related to the 2018 Camp fire and the 2017 Northern California wildfires, respectively. At March 31, 2019 and December 31, 2018 , the Utility’s Condensed Consolidated Balance Sheets include estimated liabilities in respect of total wildfire-related claims as follows: Balance at (in millions) March 31, 2019 December 31, 2018 2015 Butte fire $ 212 $ 226 2017 Northern California wildfires 3,500 3,500 2018 Camp fire 10,500 10,500 Total wildfire-related claims (1) $ 14,212 $ 14,226 (1) On the Petition Date all wildfire-related claims were classified as subject to compromise and all pending litigation was stayed. (For more information see Note 2 of the Condensed Consolidated Financial Statements.) 2018 Camp Fire Background On November 8, 2018, a wildfire began near the city of Paradise, Butte County, California (the “2018 Camp fire”), which is located in the Utility’s service territory. Cal Fire’s Camp Fire Incident Information Website as of January 4, 2019 (the “Cal Fire website”) indicated that the 2018 Camp fire consumed 153,336 acres. On the Cal Fire website, Cal Fire reported 86 fatalities and the destruction of 13,972 residences, 528 commercial structures and 4,293 other buildings resulting from the 2018 Camp fire. On February 7, 2019, the Butte County Sheriff’s Office reported that the number of fatalities resulting from the 2018 Camp fire had been reduced from 86 to 85 . There have been no subsequent updates of this information on the Cal Fire website or by the Butte County Sheriff’s Office. Although the cause of the 2018 Camp fire is still under investigation, based on the information currently known to PG&E Corporation and the Utility and reported to the CPUC and other agencies, including the facts described below, PG&E Corporation and the Utility believe it is probable that the Utility’s equipment will be determined to be an ignition point of the 2018 Camp fire. The Utility submitted two Electric Incident Reports (the “EIRs”) to the CPUC: one on November 8, 2018 and one on November 16, 2018. On December 11, 2018, the Utility publicly released a letter to the CPUC supplementing the EIRs (the “ 20 -Day Electric Incident Report”), which stated: • On the Cal Fire website, Cal Fire has identified coordinates for the 2018 Camp fire near Tower :27/222 on the Utility’s Caribou-Palermo 115 kV Transmission Line and has identified the start time of the 2018 Camp fire as 6:33 a.m. on November 8, 2018. • On November 8, 2018, at approximately 6:15 a.m., the Utility’s Caribou-Palermo 115kV Transmission Line relayed and deenergized. At approximately 6:30 a.m. that day, a Utility employee observed fire in the vicinity of Tower :27/222, and this observation was reported to 911 by Utility employees. That afternoon, the Utility observed damage on the line at Tower :27/222. Specifically, an aerial patrol identified that a suspension insulator supporting a transposition jumper had separated from an arm on Tower :27/222. • On November 14, 2018, the Utility observed a broken C-hook attached to the separated suspension insulator that had connected the suspension insulator to a tower arm, along with wear at the connection point. In addition, the Utility observed a flash mark on Tower :27/222 near where the transposition jumper was suspended and damage to the transposition jumper and suspension insulator. • In addition to the events on the Caribou-Palermo 115kV Transmission Line, on November 8, 2018, at approximately 6:45 a.m., the Utility’s Big Bend 1101 12 kV Circuit experienced an outage. On November 9, 2018, a Utility employee on patrol arrived at the location of the pole with Line Recloser (“LR”) 1704 on the Big Bend 1101 Circuit and observed that the pole and other equipment were on the ground with bullets and bullet holes at the break point of the pole and on the equipment. On November 12, 2018, a Utility employee was patrolling Concow Road north of LR 1704 when he observed wires down and damaged and downed poles at the intersection of Concow Road and Rim Road. At this location, the employee observed several snapped trees, with some on top of the downed wires. The information contained in the EIRs and the 20 -Day Electric Incident Report is factual and preliminary and does not reflect a determination of the causes of the 2018 Camp fire. These incidents remain under investigation by Cal Fire and the CPUC. With respect to the potential ignition point on the Utility’s Big Bend 1101 12 kV Circuit, although Cal Fire has identified this location as a potential ignition point, based on the condition of the site, PG&E Corporation and the Utility have not been able to determine whether the Big Bend 1101 12 kV Circuit may be a probable ignition point for the 2018 Camp fire. Neither Cal Fire nor the CPUC has publicly issued any news releases or other determinations for the 2018 Camp fire. The timing and outcome of the investigations are uncertain. PG&E Corporation and the Utility are cooperating with Cal Fire and the CPUC. Further, the CPUC’s SED is conducting investigations to assess the compliance of electric and communication companies’ facilities with applicable rules and regulations in fire-impacted areas. According to information made available by the CPUC, investigation topics include, but are not limited to, maintenance of facilities, vegetation management, and emergency preparedness and response. Various other entities, including fire departments, may also be investigating the fire. It is uncertain when the investigations will be complete and whether the SED will release any preliminary findings before its investigations are complete. 2017 Northern California Wildfires Background Beginning on October 8, 2017, multiple wildfires spread through Northern California, including Napa, Sonoma, Butte, Humboldt, Mendocino, Lake, Nevada, and Yuba Counties, as well as in the area surrounding Yuba City (the “2017 Northern California wildfires”). According to the Cal Fire California Statewide Fire Summary dated October 30, 2017, at the peak of the 2017 Northern California wildfires, there were 21 major fires that, in total, burned over 245,000 acres and destroyed an estimated 8,900 structures. The 2017 Northern California wildfires resulted in 44 fatalities. Cal Fire has issued its determination on the causes of 19 of the 2017 Northern California wildfires, and alleged that all of these fires, with the exception of the Tubbs fire, involved the Utility’s equipment. Cal Fire has not publicly announced any determination of cause on the remaining wildfires. During the second quarter of 2018, Cal Fire issued news releases announcing its determination on the causes of 16 of the 2017 Northern California wildfires (the La Porte, McCourtney, Lobo, Honey, Redwood, Sulphur, Cherokee, 37, Blue, Norrbom, Adobe, Partrick, Pythian, Nuns, Pocket and Atlas fires, located in Mendocino, Lake, Butte, Sonoma, Humboldt, Nevada and Napa counties). According to the Cal Fire news releases: • the La Porte, McCourtney, Lobo and Honey fires “were caused by trees coming into contact with power lines”, and • the Redwood, Sulphur, Cherokee, 37, Blue, Norrbom, Adobe, Partrick, Pythian, Nuns, Pocket and Atlas fires “were caused by electric power and distribution lines, conductors and the failure of power poles.” Cal Fire has not yet released its investigation reports related to the McCourtney, Lobo, Sulphur, Blue, Norrbom, Adobe, Partrick, Pythian, Pocket and Atlas fires and stated in its news releases that these investigations, and the investigation related to the Honey fire, have been referred to the appropriate county District Attorney’s offices for review “due to evidence of alleged violations of state law.” (See “District Attorneys’ Offices’ Investigations” below for further information regarding the investigations by the District Attorneys’ offices related to these fires.) Also during the second quarter of 2018, Cal Fire released its investigation reports related to the Redwood, Cherokee, 37, Nuns and La Porte fires. Cal Fire did not refer these fires to District Attorney offices for investigation. On October 9, 2018, Cal Fire issued a news release announcing the results of its investigation into the Cascade fire, located in Yuba County, concluding that the Cascade fire “was started by sagging power lines coming into contact during heavy winds” and that “the power line in question was owned by Pacific Gas and Electric Company.” On October 10, 2018, Cal Fire released its investigation report related to the Cascade fire. (See “District Attorneys’ Offices’ Investigations” below for further information regarding the investigations of the Cascade fire by the Office of the District Attorney of Yuba County.) On January 24, 2019, Cal Fire issued a news release and its investigation report into the cause of the Tubbs fire. Cal Fire has determined that the Tubbs fire was caused by a private electrical system adjacent to a residential structure. Cal Fire has not publicly issued any news releases or other determinations for the Maacama, Pressley and Point wildfires. The timing and outcome of the Cal Fire investigation into these fires is uncertain. Further, the SED is conducting investigations to assess the compliance of electric and communication companies’ facilities with applicable rules and regulations in fire-impacted areas. According to information made available by the CPUC, investigation topics include, but are not limited to, maintenance of facilities, vegetation management, and emergency preparedness and response. Various other entities, including fire departments, may also be investigating certain of the fires. It is uncertain when the investigations will be complete and whether the SED will release any preliminary findings before its investigations are complete. The Utility has submitted 23 electric incident reports to the CPUC associated with the 2017 Northern California wildfires where Cal Fire or the Utility has identified a site as potentially involving the Utility’s facilities in its investigation and the property damage associated with each incident exceeded $ 50,000 . The information contained in these reports is factual and preliminary and does not reflect a determination of the causes of the fires. Third-Party Claims, Investigations and Other Proceedings Related to the 2018 Camp Fire and 2017 Northern California Wildfires If the Utility’s facilities, such as its electric distribution and transmission lines, are determined to be the substantial cause of one or more fires, 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 from their customers. 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. (See “Loss Recoveries-Regulatory Recovery” below for further information regarding potential cost recovery related to the wildfires, including in connection with SB 901.) In addition to claims for property damage, business interruption, interest and attorneys’ fees, 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, including if the Utility were found to have been negligent. Further, the Utility could be subject to material fines, penalties, or restitution orders if the CPUC or any law enforcement agency were to bring an enforcement action, including a criminal proceeding, and it were determined that the Utility had failed to comply with applicable laws and regulations. As of January 28, 2019, PG&E Corporation and the Utility are aware of approximately 100 complaints on behalf of at least 4,200 plaintiffs related to the 2018 Camp fire, nine of which seek to be certified as class actions. The pending civil litigation against PG&E Corporation and the Utility related to the 2018 Camp fire, which is currently stayed as a result of the commencement of the Chapter 11 Cases, includes claims under multiple theories of liability, including inverse condemnation, trespass, private nuisance, public nuisance, negligence, negligence per se, negligent interference with prospective economic advantage, negligent infliction of emotional distress, premises liability, violations of the Public Utilities Code, violations of the Health & Safety Code, malice and false advertising in violation of the California Business and Professions Code. The plaintiffs principally assert that PG&E Corporation’s and the Utility’s alleged failure to maintain and repair their distribution and transmission lines and failure to properly maintain the vegetation surrounding such lines were the causes of the 2018 Camp fire. The plaintiffs seek damages and remedies that include wrongful death, personal injury, property damage, evacuation costs, medical expenses, establishment of a class action medical monitoring fund, punitive damages, attorneys’ fees and other damages. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. As of January 28, 2019, PG&E Corporation and the Utility are aware of approximately 750 complaints on behalf of at least 3,800 plaintiffs related to the 2017 Northern California wildfires, five of which seek to be certified as class actions. These cases have been coordinated in the San Francisco County Superior Court. As of the Petition Date, the coordinated litigation was in the early stages of discovery. A trial with respect to the Atlas fire was scheduled to begin on September 23, 2019. The pending civil litigation against PG&E Corporation and the Utility related to the 2017 Northern California wildfires, includes claims under multiple theories of liability, including inverse condemnation, trespass, private nuisance and negligence. This litigation, including the trial date with respect to the Atlas fire, currently is stayed as a result of the commencement of the Chapter 11 Cases. The plaintiffs principally assert that PG&E Corporation’s and the Utility’s alleged failure to maintain and repair their distribution and transmission lines and failure to properly maintain the vegetation surrounding such lines were the causes of the 2017 Northern California wildfires. The plaintiffs seek damages that include wrongful death, personal injury, property damage, evacuation costs, medical expenses, punitive damages, attorneys’ fees and other damages. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. Insurance carriers who have made payments to their insureds for property damage arising out of the 2017 Northern California wildfires have filed 52 subrogation complaints in the San Francisco County Superior Court and the Sonoma County Superior Court as of January 28, 2019. These complaints allege, among other things, negligence, inverse condemnation, trespass and nuisance. The allegations are similar to the ones made by individual plaintiffs. As of January 28, 2019, insurance carriers have filed 39 similar subrogation complaints with respect to the 2018 Camp fire in the Sacramento County Superior Court and the Butte County Superior Court. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. Various government entities, including Yuba, Nevada, Lake, Mendocino, Napa and Sonoma Counties and the Cities of Santa Rosa and Clearlake, also have asserted claims against PG&E Corporation and the Utility based on the damages that these government entities allegedly suffered as a result of the 2017 Northern California wildfires. Such alleged damages include, among other things, loss of natural resources, loss of public parks, property damages and fire suppression costs. The causes of action and allegations are similar to the ones made by individual plaintiffs and the insurance carriers. With respect to the 2018 Camp fire, Butte County has filed similar claims against PG&E Corporation and the Utility, and PG&E Corporation and the Utility expect additional similar claims to be made by other government entities. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. On March 16, 2018, PG&E Corporation and the Utility filed a demurrer to the inverse condemnation cause of action in the 2017 Northern California wildfires litigation. On May 21, 2018, the court overruled the motion. On July 20, 2018, PG&E Corporation and the Utility filed a writ in the Court of Appeal requesting appellate review of the trial court’s decision, which was denied on September 17, 2018. On September 27, 2018, PG&E Corporation and the Utility filed a petition for review to the California Supreme Court. On November 14, 2018, the California Supreme Court denied PG&E Corporation’s and the Utility’s petition for review. PG&E Corporation and the Utility expect to be the subject of numerous additional claims in connection with the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. PG&E Corporation and the Utility are continuing to review the evidence concerning the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation and the Utility have not yet had access to all of the evidence collected by Cal Fire as part of its investigations or to many of the investigation reports prepared by Cal Fire. PG&E Corporation and the Utility and plaintiffs are in discussions with Cal Fire about access to the evidence and the remaining reports. No schedule on gaining access has been set. (See “District Attorneys’ Offices’ Investigations” below for information regarding certain investigations related to the 2018 Camp fire and 2017 Northern California wildfires.) Regardless of any determinations of cause by Cal Fire with respect to any pre-petition fire, ultimately PG&E Corporation’s and the Utility’s liability will be resolved through the Chapter 11 process, regulatory proceedings and any potential enforcement proceedings, all of which could take a number of years to resolve. The timing and outcome of these and other potential proceedings are uncertain. PG&E Corporation and the Utility, as part of their efforts to emerge from bankruptcy, are engaged in discussions with holders of claims related to the 2017 Northern California wildfires and the 2018 Camp Fire in an attempt to reach a global settlement of such claims. PG&E Corporation and the Utility cannot predict the outcome or timing of such discussions. Even if discussions with claimholders were successful, the consummation of such an agreement would likely be contingent on numerous uncertain conditions, including Bankruptcy Court approval and governmental action. Potential Losses in Connection with the 2018 Camp Fire and 2017 Northern California Wildfires On January 28, 2019, the California Department of Insurance issued a news release announcing an update on property losses in connection with the 2018 wildfires in Southern California (which are not in the Utility’s service territory) and the 2018 Camp fire, stating that, as of such date, “more than $ 11.4 billion in insured losses have been reported from the November 2018 fires,” of which approximately $ 8.4 billion relates to statewide claims from the 2018 Camp fire. On September 6, 2018, the California Department of Insurance issued a news release announcing that insurers have received nearly 55,000 insurance claims totaling more than $ 12.28 billion in losses, of which approximately $ 10 billion relates to statewide claims from the 2017 Northern California wildfires. The dollar amounts announced by the California Department of Insurance represent an aggregate amount of approximately $ 18.4 billion of insurance claims made as of the above dates related to the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation and the Utility expect that additional claims have been submitted and will continue to be submitted to insurers, particularly with respect to the 2018 Camp fire. These claims reflect insured property losses only. The $ 18.4 billion of insurance claims made as of the above dates does not account for uninsured or underinsured property losses, interest, attorneys’ fees, fire suppression and clean-up costs, evacuation costs, personal injury or wrongful death damages, medical expenses or other costs, such as potential punitive damages, fines or penalties, or losses related to claims that have not manifested yet (“future claims”), each of which could be significant. The scope of all claims related to the 2018 Camp fire and 2017 Northern California wildfires is not known at this time because of the applicable statutes of limitations under California law. Potential liabilities related to the 2018 Camp fire and 2017 Northern California wildfires depend on various factors, including but not limited to the cause of each fire, contributing causes of the fires (including alternative potential origins, weather and climate related issues), 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 extent to which future claims arise, the amount of fire suppression and clean-up costs, other damages the Utility may be responsible for if found negligent, the amount of any penalties or fines that may be imposed by governmental entities, and the amount of any penalties, fines, or restitution orders that might result from any criminal charges brought. There are a number of unknown facts and legal considerations that may impact the amount of any potential liability. Among other things, it is uncertain at this time as to the number of wildfire-related claims that will be filed in the Chapter 11 Cases, the number of current and future claims that will be allowed by the Bankruptcy Court, how claims for punitive damages and claims by variously situated persons will be treated and whether such claims will be allowed, and the impact that historical settlement values for wildfire claims may have on the estimation of wildfire liability in the Chapter 11 Cases. If PG&E Corporation and the Utility were to be found liable for certain or all of the costs, expenses and other losses described above with respect to the 2018 Camp fire and 2017 Northern California wildfires, the amount of such liability could exceed $ 30 billion, which amount does not include potential punitive damages, fines and penalties or damages related to future claims. This estimate is based on a wide variety of data and other information available to PG&E Corporation and the Utility and their advisors, including various precedents involving similar claims, and accounts for property losses (including insured, uninsured and underinsured property losses), interest, attorneys’ fees, fire suppression and clean-up costs, evacuation costs, personal injury or wrongful death damages, medical expenses and certain other costs. This estimate is not intended to provide an upper end of the range of potential liability arising from the 2018 Camp fire and 2017 Northern California wildfires. In certain circumstances, PG&E Corporation’s and the Utility’s liability could be substantially greater than such amount. If PG&E Corporation and the Utility were to be found liable for any punitive damages or subject to fines or penalties, the amount of such punitive damages, fines and penalties could be significant. PG&E Corporation and the Utility have received significant fines and penalties in connection with past incidents. For example, in 2015, the CPUC approved a decision that imposed penalties on the Utility totaling $ 1.6 billion in connection with the natural gas explosion that occurred in the City of San Bruno, California on September 9, 2010 (the “San Bruno explosion”). These penalties represented nearly three times the underlying liability for the San Bruno explosion of approximately $ 558 million incurred for third-party claims, exclusive of shareholder derivative lawsuits and legal costs incurred. The amount of punitive damages, fines and penalties imposed on PG&E Corporation and the Utility could likewise be a significant amount in relation to the underlying liabilities with respect to the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. Such proceedings are not subject to the automatic stay imposed as a result of the commencement of the Chapter 11 Cases; however, collection efforts in connection with fines or penalties arising out of such proceedings are stayed. 2018 Camp Fire and 2017 Northern California Wildfires Accounting Charge Following accounting rules, PG&E Corporation and the Utility record a liability when a loss is probable and reasonably estimable. In accordance with U.S. generally accepted accounting principles, 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 is the amount within the range that is a better estimate than any other amount 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. 2018 Camp Fire In light of the current state of the law and the information currently available to the Utility, including, among other things, the facts described in the EIRs and the 20 -Day Electric Incident Report, PG&E Corporation and the Utility have determined that it is probable they will incur a loss for claims in connection with the 2018 Camp fire, and accordingly PG&E Corporation and the Utility recorded a charge in the amount of $ 10.5 billion for the year ended December 31, 2018. This charge corresponds to the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimated losses, and is subject to change based on additional information. PG&E Corporation and the Utility currently believe that it is reasonably possible that the amount of the loss related to the 2018 Camp fire and 2017 Northern California wildfires will be greater than the amount accrued, but are unable to reasonably estimate the additional loss and the upper end of the range because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability, including the total scope and nature of claims that may be asserted against PG&E Corporation and the Utility. PG&E Corporation and the Utility intend to continue to review the available information and other information as it becomes available, including evidence in Cal Fire’s possession, evidence from or held by other parties, claims that have not yet been submitted, and additional information about the nature and extent of personal and business property damage and losses, the nature, number and severity of personal injuries, and information made available through the discovery process. The process for estimating losses associated with claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including but not limited to factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, management estimates and assumptions regarding the financial impact of the 2018 Camp fire may change, which could result in material increases to the loss accrued. The $ 10.5 billion charge does not include any amounts for potential penalties or fines that may be imposed by governmental entities on PG&E Corporation or the Utility, or punitive damages, if any, or any losses related to future claims for damages that have not manifested yet, each of which could be significant. 2017 Northern California Wildfires In light of the current state of the law on inverse condemnation and the information currently available to the Utility, including, among other things, the Cal Fire determinations of cause as stated in Cal Fire’s press releases and their released reports, PG&E Corporation and the Utility have determined that it is probable they will incur a loss for claims in connection with 17 of the 2017 Northern California wildfires referred to as the La Porte, McCourtney, Lobo, Honey, Redwood, Sulphur, Cherokee, Blue, Pocket, Atlas, Cascade, Point and Sonoma/Napa merged fires (which include the Nuns, Norrbom, Adobe, Partrick and Pythian fires). Accordingly, PG&E Corporation and the Utility recorded a charge in the amount of $ 2.5 billion during the quarter ended June 30, 2018 and a charge in the amount of $ 1.0 billion during the quarter ended December 31, 2018, for a total charge in the amount of $ 3.5 billion for the year ended December 31, 2018. This charge corresponds to the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimated losses and is subject to change based on additional information. PG&E Corporation and the Utility currently believe that it is reasonably possible that the amount of the loss related to the 2017 Northern California wildfires and the 2018 Camp fire will be greater than the amount accrued, but are unable to reasonably estimate the additional loss and the upper end of the range because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability, including the total scope and nature of claims that ma |
OTHER CONTINGENCIES AND COMMITM
OTHER CONTINGENCIES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER CONTINGENCIES AND COMMITMENTS | WILDFIRE-RELATED CONTINGENCIES 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, 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. Wildfire-Related Claims Wildfire-related claims on the Condensed Consolidated Financial Statements include amounts associated with the 2018 Camp fire, the 2017 Northern California wildfires, and the 2015 Butte fire. For the three months ended March 31, 2019 and 2018 , the Utility’s Condensed Consolidated Statements of Income include estimated losses offset by insurance recoveries of $7 million for the three months ended March 31, 2018 , with no recoveries in the same period in 2019. In addition, during the three months ended March 31, 2019 , the Utility incurred $13 million and $34 million of legal and other costs related to the 2018 Camp fire and the 2017 Northern California wildfires, respectively. At March 31, 2019 and December 31, 2018 , the Utility’s Condensed Consolidated Balance Sheets include estimated liabilities in respect of total wildfire-related claims as follows: Balance at (in millions) March 31, 2019 December 31, 2018 2015 Butte fire $ 212 $ 226 2017 Northern California wildfires 3,500 3,500 2018 Camp fire 10,500 10,500 Total wildfire-related claims (1) $ 14,212 $ 14,226 (1) On the Petition Date all wildfire-related claims were classified as subject to compromise and all pending litigation was stayed. (For more information see Note 2 of the Condensed Consolidated Financial Statements.) 2018 Camp Fire Background On November 8, 2018, a wildfire began near the city of Paradise, Butte County, California (the “2018 Camp fire”), which is located in the Utility’s service territory. Cal Fire’s Camp Fire Incident Information Website as of January 4, 2019 (the “Cal Fire website”) indicated that the 2018 Camp fire consumed 153,336 acres. On the Cal Fire website, Cal Fire reported 86 fatalities and the destruction of 13,972 residences, 528 commercial structures and 4,293 other buildings resulting from the 2018 Camp fire. On February 7, 2019, the Butte County Sheriff’s Office reported that the number of fatalities resulting from the 2018 Camp fire had been reduced from 86 to 85 . There have been no subsequent updates of this information on the Cal Fire website or by the Butte County Sheriff’s Office. Although the cause of the 2018 Camp fire is still under investigation, based on the information currently known to PG&E Corporation and the Utility and reported to the CPUC and other agencies, including the facts described below, PG&E Corporation and the Utility believe it is probable that the Utility’s equipment will be determined to be an ignition point of the 2018 Camp fire. The Utility submitted two Electric Incident Reports (the “EIRs”) to the CPUC: one on November 8, 2018 and one on November 16, 2018. On December 11, 2018, the Utility publicly released a letter to the CPUC supplementing the EIRs (the “ 20 -Day Electric Incident Report”), which stated: • On the Cal Fire website, Cal Fire has identified coordinates for the 2018 Camp fire near Tower :27/222 on the Utility’s Caribou-Palermo 115 kV Transmission Line and has identified the start time of the 2018 Camp fire as 6:33 a.m. on November 8, 2018. • On November 8, 2018, at approximately 6:15 a.m., the Utility’s Caribou-Palermo 115kV Transmission Line relayed and deenergized. At approximately 6:30 a.m. that day, a Utility employee observed fire in the vicinity of Tower :27/222, and this observation was reported to 911 by Utility employees. That afternoon, the Utility observed damage on the line at Tower :27/222. Specifically, an aerial patrol identified that a suspension insulator supporting a transposition jumper had separated from an arm on Tower :27/222. • On November 14, 2018, the Utility observed a broken C-hook attached to the separated suspension insulator that had connected the suspension insulator to a tower arm, along with wear at the connection point. In addition, the Utility observed a flash mark on Tower :27/222 near where the transposition jumper was suspended and damage to the transposition jumper and suspension insulator. • In addition to the events on the Caribou-Palermo 115kV Transmission Line, on November 8, 2018, at approximately 6:45 a.m., the Utility’s Big Bend 1101 12 kV Circuit experienced an outage. On November 9, 2018, a Utility employee on patrol arrived at the location of the pole with Line Recloser (“LR”) 1704 on the Big Bend 1101 Circuit and observed that the pole and other equipment were on the ground with bullets and bullet holes at the break point of the pole and on the equipment. On November 12, 2018, a Utility employee was patrolling Concow Road north of LR 1704 when he observed wires down and damaged and downed poles at the intersection of Concow Road and Rim Road. At this location, the employee observed several snapped trees, with some on top of the downed wires. The information contained in the EIRs and the 20 -Day Electric Incident Report is factual and preliminary and does not reflect a determination of the causes of the 2018 Camp fire. These incidents remain under investigation by Cal Fire and the CPUC. With respect to the potential ignition point on the Utility’s Big Bend 1101 12 kV Circuit, although Cal Fire has identified this location as a potential ignition point, based on the condition of the site, PG&E Corporation and the Utility have not been able to determine whether the Big Bend 1101 12 kV Circuit may be a probable ignition point for the 2018 Camp fire. Neither Cal Fire nor the CPUC has publicly issued any news releases or other determinations for the 2018 Camp fire. The timing and outcome of the investigations are uncertain. PG&E Corporation and the Utility are cooperating with Cal Fire and the CPUC. Further, the CPUC’s SED is conducting investigations to assess the compliance of electric and communication companies’ facilities with applicable rules and regulations in fire-impacted areas. According to information made available by the CPUC, investigation topics include, but are not limited to, maintenance of facilities, vegetation management, and emergency preparedness and response. Various other entities, including fire departments, may also be investigating the fire. It is uncertain when the investigations will be complete and whether the SED will release any preliminary findings before its investigations are complete. 2017 Northern California Wildfires Background Beginning on October 8, 2017, multiple wildfires spread through Northern California, including Napa, Sonoma, Butte, Humboldt, Mendocino, Lake, Nevada, and Yuba Counties, as well as in the area surrounding Yuba City (the “2017 Northern California wildfires”). According to the Cal Fire California Statewide Fire Summary dated October 30, 2017, at the peak of the 2017 Northern California wildfires, there were 21 major fires that, in total, burned over 245,000 acres and destroyed an estimated 8,900 structures. The 2017 Northern California wildfires resulted in 44 fatalities. Cal Fire has issued its determination on the causes of 19 of the 2017 Northern California wildfires, and alleged that all of these fires, with the exception of the Tubbs fire, involved the Utility’s equipment. Cal Fire has not publicly announced any determination of cause on the remaining wildfires. During the second quarter of 2018, Cal Fire issued news releases announcing its determination on the causes of 16 of the 2017 Northern California wildfires (the La Porte, McCourtney, Lobo, Honey, Redwood, Sulphur, Cherokee, 37, Blue, Norrbom, Adobe, Partrick, Pythian, Nuns, Pocket and Atlas fires, located in Mendocino, Lake, Butte, Sonoma, Humboldt, Nevada and Napa counties). According to the Cal Fire news releases: • the La Porte, McCourtney, Lobo and Honey fires “were caused by trees coming into contact with power lines”, and • the Redwood, Sulphur, Cherokee, 37, Blue, Norrbom, Adobe, Partrick, Pythian, Nuns, Pocket and Atlas fires “were caused by electric power and distribution lines, conductors and the failure of power poles.” Cal Fire has not yet released its investigation reports related to the McCourtney, Lobo, Sulphur, Blue, Norrbom, Adobe, Partrick, Pythian, Pocket and Atlas fires and stated in its news releases that these investigations, and the investigation related to the Honey fire, have been referred to the appropriate county District Attorney’s offices for review “due to evidence of alleged violations of state law.” (See “District Attorneys’ Offices’ Investigations” below for further information regarding the investigations by the District Attorneys’ offices related to these fires.) Also during the second quarter of 2018, Cal Fire released its investigation reports related to the Redwood, Cherokee, 37, Nuns and La Porte fires. Cal Fire did not refer these fires to District Attorney offices for investigation. On October 9, 2018, Cal Fire issued a news release announcing the results of its investigation into the Cascade fire, located in Yuba County, concluding that the Cascade fire “was started by sagging power lines coming into contact during heavy winds” and that “the power line in question was owned by Pacific Gas and Electric Company.” On October 10, 2018, Cal Fire released its investigation report related to the Cascade fire. (See “District Attorneys’ Offices’ Investigations” below for further information regarding the investigations of the Cascade fire by the Office of the District Attorney of Yuba County.) On January 24, 2019, Cal Fire issued a news release and its investigation report into the cause of the Tubbs fire. Cal Fire has determined that the Tubbs fire was caused by a private electrical system adjacent to a residential structure. Cal Fire has not publicly issued any news releases or other determinations for the Maacama, Pressley and Point wildfires. The timing and outcome of the Cal Fire investigation into these fires is uncertain. Further, the SED is conducting investigations to assess the compliance of electric and communication companies’ facilities with applicable rules and regulations in fire-impacted areas. According to information made available by the CPUC, investigation topics include, but are not limited to, maintenance of facilities, vegetation management, and emergency preparedness and response. Various other entities, including fire departments, may also be investigating certain of the fires. It is uncertain when the investigations will be complete and whether the SED will release any preliminary findings before its investigations are complete. The Utility has submitted 23 electric incident reports to the CPUC associated with the 2017 Northern California wildfires where Cal Fire or the Utility has identified a site as potentially involving the Utility’s facilities in its investigation and the property damage associated with each incident exceeded $ 50,000 . The information contained in these reports is factual and preliminary and does not reflect a determination of the causes of the fires. Third-Party Claims, Investigations and Other Proceedings Related to the 2018 Camp Fire and 2017 Northern California Wildfires If the Utility’s facilities, such as its electric distribution and transmission lines, are determined to be the substantial cause of one or more fires, 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 from their customers. 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. (See “Loss Recoveries-Regulatory Recovery” below for further information regarding potential cost recovery related to the wildfires, including in connection with SB 901.) In addition to claims for property damage, business interruption, interest and attorneys’ fees, 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, including if the Utility were found to have been negligent. Further, the Utility could be subject to material fines, penalties, or restitution orders if the CPUC or any law enforcement agency were to bring an enforcement action, including a criminal proceeding, and it were determined that the Utility had failed to comply with applicable laws and regulations. As of January 28, 2019, PG&E Corporation and the Utility are aware of approximately 100 complaints on behalf of at least 4,200 plaintiffs related to the 2018 Camp fire, nine of which seek to be certified as class actions. The pending civil litigation against PG&E Corporation and the Utility related to the 2018 Camp fire, which is currently stayed as a result of the commencement of the Chapter 11 Cases, includes claims under multiple theories of liability, including inverse condemnation, trespass, private nuisance, public nuisance, negligence, negligence per se, negligent interference with prospective economic advantage, negligent infliction of emotional distress, premises liability, violations of the Public Utilities Code, violations of the Health & Safety Code, malice and false advertising in violation of the California Business and Professions Code. The plaintiffs principally assert that PG&E Corporation’s and the Utility’s alleged failure to maintain and repair their distribution and transmission lines and failure to properly maintain the vegetation surrounding such lines were the causes of the 2018 Camp fire. The plaintiffs seek damages and remedies that include wrongful death, personal injury, property damage, evacuation costs, medical expenses, establishment of a class action medical monitoring fund, punitive damages, attorneys’ fees and other damages. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. As of January 28, 2019, PG&E Corporation and the Utility are aware of approximately 750 complaints on behalf of at least 3,800 plaintiffs related to the 2017 Northern California wildfires, five of which seek to be certified as class actions. These cases have been coordinated in the San Francisco County Superior Court. As of the Petition Date, the coordinated litigation was in the early stages of discovery. A trial with respect to the Atlas fire was scheduled to begin on September 23, 2019. The pending civil litigation against PG&E Corporation and the Utility related to the 2017 Northern California wildfires, includes claims under multiple theories of liability, including inverse condemnation, trespass, private nuisance and negligence. This litigation, including the trial date with respect to the Atlas fire, currently is stayed as a result of the commencement of the Chapter 11 Cases. The plaintiffs principally assert that PG&E Corporation’s and the Utility’s alleged failure to maintain and repair their distribution and transmission lines and failure to properly maintain the vegetation surrounding such lines were the causes of the 2017 Northern California wildfires. The plaintiffs seek damages that include wrongful death, personal injury, property damage, evacuation costs, medical expenses, punitive damages, attorneys’ fees and other damages. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. Insurance carriers who have made payments to their insureds for property damage arising out of the 2017 Northern California wildfires have filed 52 subrogation complaints in the San Francisco County Superior Court and the Sonoma County Superior Court as of January 28, 2019. These complaints allege, among other things, negligence, inverse condemnation, trespass and nuisance. The allegations are similar to the ones made by individual plaintiffs. As of January 28, 2019, insurance carriers have filed 39 similar subrogation complaints with respect to the 2018 Camp fire in the Sacramento County Superior Court and the Butte County Superior Court. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. Various government entities, including Yuba, Nevada, Lake, Mendocino, Napa and Sonoma Counties and the Cities of Santa Rosa and Clearlake, also have asserted claims against PG&E Corporation and the Utility based on the damages that these government entities allegedly suffered as a result of the 2017 Northern California wildfires. Such alleged damages include, among other things, loss of natural resources, loss of public parks, property damages and fire suppression costs. The causes of action and allegations are similar to the ones made by individual plaintiffs and the insurance carriers. With respect to the 2018 Camp fire, Butte County has filed similar claims against PG&E Corporation and the Utility, and PG&E Corporation and the Utility expect additional similar claims to be made by other government entities. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. On March 16, 2018, PG&E Corporation and the Utility filed a demurrer to the inverse condemnation cause of action in the 2017 Northern California wildfires litigation. On May 21, 2018, the court overruled the motion. On July 20, 2018, PG&E Corporation and the Utility filed a writ in the Court of Appeal requesting appellate review of the trial court’s decision, which was denied on September 17, 2018. On September 27, 2018, PG&E Corporation and the Utility filed a petition for review to the California Supreme Court. On November 14, 2018, the California Supreme Court denied PG&E Corporation’s and the Utility’s petition for review. PG&E Corporation and the Utility expect to be the subject of numerous additional claims in connection with the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. PG&E Corporation and the Utility are continuing to review the evidence concerning the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation and the Utility have not yet had access to all of the evidence collected by Cal Fire as part of its investigations or to many of the investigation reports prepared by Cal Fire. PG&E Corporation and the Utility and plaintiffs are in discussions with Cal Fire about access to the evidence and the remaining reports. No schedule on gaining access has been set. (See “District Attorneys’ Offices’ Investigations” below for information regarding certain investigations related to the 2018 Camp fire and 2017 Northern California wildfires.) Regardless of any determinations of cause by Cal Fire with respect to any pre-petition fire, ultimately PG&E Corporation’s and the Utility’s liability will be resolved through the Chapter 11 process, regulatory proceedings and any potential enforcement proceedings, all of which could take a number of years to resolve. The timing and outcome of these and other potential proceedings are uncertain. PG&E Corporation and the Utility, as part of their efforts to emerge from bankruptcy, are engaged in discussions with holders of claims related to the 2017 Northern California wildfires and the 2018 Camp Fire in an attempt to reach a global settlement of such claims. PG&E Corporation and the Utility cannot predict the outcome or timing of such discussions. Even if discussions with claimholders were successful, the consummation of such an agreement would likely be contingent on numerous uncertain conditions, including Bankruptcy Court approval and governmental action. Potential Losses in Connection with the 2018 Camp Fire and 2017 Northern California Wildfires On January 28, 2019, the California Department of Insurance issued a news release announcing an update on property losses in connection with the 2018 wildfires in Southern California (which are not in the Utility’s service territory) and the 2018 Camp fire, stating that, as of such date, “more than $ 11.4 billion in insured losses have been reported from the November 2018 fires,” of which approximately $ 8.4 billion relates to statewide claims from the 2018 Camp fire. On September 6, 2018, the California Department of Insurance issued a news release announcing that insurers have received nearly 55,000 insurance claims totaling more than $ 12.28 billion in losses, of which approximately $ 10 billion relates to statewide claims from the 2017 Northern California wildfires. The dollar amounts announced by the California Department of Insurance represent an aggregate amount of approximately $ 18.4 billion of insurance claims made as of the above dates related to the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation and the Utility expect that additional claims have been submitted and will continue to be submitted to insurers, particularly with respect to the 2018 Camp fire. These claims reflect insured property losses only. The $ 18.4 billion of insurance claims made as of the above dates does not account for uninsured or underinsured property losses, interest, attorneys’ fees, fire suppression and clean-up costs, evacuation costs, personal injury or wrongful death damages, medical expenses or other costs, such as potential punitive damages, fines or penalties, or losses related to claims that have not manifested yet (“future claims”), each of which could be significant. The scope of all claims related to the 2018 Camp fire and 2017 Northern California wildfires is not known at this time because of the applicable statutes of limitations under California law. Potential liabilities related to the 2018 Camp fire and 2017 Northern California wildfires depend on various factors, including but not limited to the cause of each fire, contributing causes of the fires (including alternative potential origins, weather and climate related issues), 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 extent to which future claims arise, the amount of fire suppression and clean-up costs, other damages the Utility may be responsible for if found negligent, the amount of any penalties or fines that may be imposed by governmental entities, and the amount of any penalties, fines, or restitution orders that might result from any criminal charges brought. There are a number of unknown facts and legal considerations that may impact the amount of any potential liability. Among other things, it is uncertain at this time as to the number of wildfire-related claims that will be filed in the Chapter 11 Cases, the number of current and future claims that will be allowed by the Bankruptcy Court, how claims for punitive damages and claims by variously situated persons will be treated and whether such claims will be allowed, and the impact that historical settlement values for wildfire claims may have on the estimation of wildfire liability in the Chapter 11 Cases. If PG&E Corporation and the Utility were to be found liable for certain or all of the costs, expenses and other losses described above with respect to the 2018 Camp fire and 2017 Northern California wildfires, the amount of such liability could exceed $ 30 billion, which amount does not include potential punitive damages, fines and penalties or damages related to future claims. This estimate is based on a wide variety of data and other information available to PG&E Corporation and the Utility and their advisors, including various precedents involving similar claims, and accounts for property losses (including insured, uninsured and underinsured property losses), interest, attorneys’ fees, fire suppression and clean-up costs, evacuation costs, personal injury or wrongful death damages, medical expenses and certain other costs. This estimate is not intended to provide an upper end of the range of potential liability arising from the 2018 Camp fire and 2017 Northern California wildfires. In certain circumstances, PG&E Corporation’s and the Utility’s liability could be substantially greater than such amount. If PG&E Corporation and the Utility were to be found liable for any punitive damages or subject to fines or penalties, the amount of such punitive damages, fines and penalties could be significant. PG&E Corporation and the Utility have received significant fines and penalties in connection with past incidents. For example, in 2015, the CPUC approved a decision that imposed penalties on the Utility totaling $ 1.6 billion in connection with the natural gas explosion that occurred in the City of San Bruno, California on September 9, 2010 (the “San Bruno explosion”). These penalties represented nearly three times the underlying liability for the San Bruno explosion of approximately $ 558 million incurred for third-party claims, exclusive of shareholder derivative lawsuits and legal costs incurred. The amount of punitive damages, fines and penalties imposed on PG&E Corporation and the Utility could likewise be a significant amount in relation to the underlying liabilities with respect to the 2018 Camp fire and 2017 Northern California wildfires. PG&E Corporation’s and the Utility’s obligations with respect to such claims are expected to be determined through the Chapter 11 process. Such proceedings are not subject to the automatic stay imposed as a result of the commencement of the Chapter 11 Cases; however, collection efforts in connection with fines or penalties arising out of such proceedings are stayed. 2018 Camp Fire and 2017 Northern California Wildfires Accounting Charge Following accounting rules, PG&E Corporation and the Utility record a liability when a loss is probable and reasonably estimable. In accordance with U.S. generally accepted accounting principles, 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 is the amount within the range that is a better estimate than any other amount 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. 2018 Camp Fire In light of the current state of the law and the information currently available to the Utility, including, among other things, the facts described in the EIRs and the 20 -Day Electric Incident Report, PG&E Corporation and the Utility have determined that it is probable they will incur a loss for claims in connection with the 2018 Camp fire, and accordingly PG&E Corporation and the Utility recorded a charge in the amount of $ 10.5 billion for the year ended December 31, 2018. This charge corresponds to the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimated losses, and is subject to change based on additional information. PG&E Corporation and the Utility currently believe that it is reasonably possible that the amount of the loss related to the 2018 Camp fire and 2017 Northern California wildfires will be greater than the amount accrued, but are unable to reasonably estimate the additional loss and the upper end of the range because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability, including the total scope and nature of claims that may be asserted against PG&E Corporation and the Utility. PG&E Corporation and the Utility intend to continue to review the available information and other information as it becomes available, including evidence in Cal Fire’s possession, evidence from or held by other parties, claims that have not yet been submitted, and additional information about the nature and extent of personal and business property damage and losses, the nature, number and severity of personal injuries, and information made available through the discovery process. The process for estimating losses associated with claims requires management to exercise significant judgment based on a number of assumptions and subjective factors, including but not limited to factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, management estimates and assumptions regarding the financial impact of the 2018 Camp fire may change, which could result in material increases to the loss accrued. The $ 10.5 billion charge does not include any amounts for potential penalties or fines that may be imposed by governmental entities on PG&E Corporation or the Utility, or punitive damages, if any, or any losses related to future claims for damages that have not manifested yet, each of which could be significant. 2017 Northern California Wildfires In light of the current state of the law on inverse condemnation and the information currently available to the Utility, including, among other things, the Cal Fire determinations of cause as stated in Cal Fire’s press releases and their released reports, PG&E Corporation and the Utility have determined that it is probable they will incur a loss for claims in connection with 17 of the 2017 Northern California wildfires referred to as the La Porte, McCourtney, Lobo, Honey, Redwood, Sulphur, Cherokee, Blue, Pocket, Atlas, Cascade, Point and Sonoma/Napa merged fires (which include the Nuns, Norrbom, Adobe, Partrick and Pythian fires). Accordingly, PG&E Corporation and the Utility recorded a charge in the amount of $ 2.5 billion during the quarter ended June 30, 2018 and a charge in the amount of $ 1.0 billion during the quarter ended December 31, 2018, for a total charge in the amount of $ 3.5 billion for the year ended December 31, 2018. This charge corresponds to the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimated losses and is subject to change based on additional information. PG&E Corporation and the Utility currently believe that it is reasonably possible that the amount of the loss related to the 2017 Northern California wildfires and the 2018 Camp fire will be greater than the amount accrued, but are unable to reasonably estimate the additional loss and the upper end of the range because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability, including the total scope and nature of claims that ma |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 (consisting only of normal recurring 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, 2018 in the Condensed Consolidated Balance Sheets included in this quarterly report was derived from the audited Consolidated Balance Sheets in Item 8 of the 2018 Form 10-K. This quarterly report should be read in conjunction with the 2018 Form 10-K. |
Use of Estimates and Assumptions | 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, legal and regulatory contingencies, insurance recoveries, environmental remediation liabilities, AROs, pension and other post-retirement benefit plans obligations, and the valuation of pre-petition liabilities. 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 and results of operations during the period in which such change occurred. |
Variable Interest Entities | 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. 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 has a controlling interest or was the primary beneficiary of any of these VIEs at March 31, 2019 , the Utility 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 at March 31, 2019 , it did not consolidate any of them. |
Pension and Other Post-Retirement Benefits | 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. 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. |
Revenue Recognition | 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 GRC and its GT&S rate cases, which generally occur every three or four years . The Utility’s ability to recover revenue requirements authorized by the CPUC in these rate cases is independent, or “decoupled,” from the volume of the Utility’s sales of electricity and natural gas services. 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 CPUC also has authorized the Utility to collect additional revenue requirements to recover costs that the Utility has been authorized 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. |
Recently Adopted Accounting Standards and Accounting Standards Issued But Not Yet Adopted | Recently Adopted Accounting Standards Recognition of Lease Assets and Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which amends the guidance relating to the definition of a lease, the recognition of lease assets and lease liabilities on the balance sheet, and the disclosure of key information about leasing arrangements. Under the new standard, all lessees must recognize a ROU asset, reflecting the right to use the underlying asset for the lease term, and a lease liability, reflecting the obligation to make lease payments, on the balance sheet. Operating leases were previously not recognized on the balance sheet. PG&E Corporation and the Utility adopted the ASU on January 1, 2019. PG&E Corporation and the Utility elected certain practical expedients and will carry forward historical conclusions related to (1) contracts that contain leases, (2) existing lease and easement classification, and (3) initial direct costs. After adoption of the new standard, the Corporation and Utility elected to not separate lease and non-lease components. Additionally, PG&E Corporation and the Utility have elected not to restate comparative periods upon adoption. PG&E Corporation and the Utility determine if an arrangement is a lease at inception. As most of the leases do not provide implicit discount rates, the Utility uses an estimate of its incremental secured borrowing rates based on observed market data and other information available at the lease commencement date. The ROU assets and lease liabilities include only fixed lease payments, and leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease terms will only include options to extend or terminate the lease when it is reasonably certain that the Utility will exercise such options. The Utility recognizes lease expense in conformity with ratemaking. Operating leases are included in operating lease ROU assets and current and noncurrent operating lease liabilities on the Condensed Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, other current liabilities, and other noncurrent liabilities on the Condensed Consolidated Balance Sheets. Financing leases were immaterial for the three months ended March 31, 2019. Cash payments arising from operating leases were $335 million for the three months ended March 31, 2019 and are presented within operating activities on the Condensed Consolidated Statement of Cash Flows. Cash payments for the principal portion of the financing lease liability will continue to be presented within financing activities. Variable lease payments, if any, not included in the financing lease liability, if any, are presented within operating activities. On January 1, 2019, PG&E Corporation and the Utility recorded ROU assets and lease liabilities of $2.8 billion , representing the net present value of fixed lease payments and excluding any variable lease payments. This amount is presented within the supplemental disclosures of noncash activities for the three months ended, March 31, 2019. The majority of the Utility’s ROU assets and lease liabilities relate to various power purchase agreements. These power purchase agreements primarily consist of generation plants leased to meet customer demand plus applicable reserve margins, for terms between 5 years and 20 years . PG&E Corporation and the Utility have also recorded ROU assets and lease liabilities related to property and land leases. At March 31, 2019 , the Utility’s operating leases had a weighted average remaining lease term of 6.3 years and a weighted average discount rate of 6.11% . The following table shows the lease expense recognized for the fixed and variable component of the Utility’s lease obligations: (in millions) Three Months Ended March 31, 2019 Operating lease fixed cost $ 122 Operating lease variable cost 309 Total operating lease costs $ 431 The following table shows the Utility’s future expected operating lease payments: (in millions) March 31, 2019 2019 $ 686 2020 669 2021 616 2022 523 2023 195 Thereafter 672 Total lease payments 3,361 Less imputed interest (633 ) Total $ 2,728 The following table shows the Utility’s future expected obligations for power purchase and other lease commitments: (in millions) December 31, 2018 2019 $ 684 2020 677 2021 621 2022 546 2023 252 Thereafter 581 Total lease commitments $ 3,361 Accounting Standards Issued But Not Yet Adopted Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements , which amends the existing guidance relating to the disclosure requirements for fair value measurements. The ASU will be effective for PG&E Corporation and the Utility on January 1, 2020 with early adoption permitted. PG&E Corporation and the Utility are currently evaluating the impact the guidance will have on their Condensed Consolidated Financial Statements and related disclosures. Intangibles-Goodwill and Other In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU will be effective for PG&E Corporation and the Utility on January 1, 2020 with early adoption permitted. PG&E Corporation and the Utility are currently evaluating the impact the guidance will have on their Condensed Consolidated Financial Statements and related disclosures. |
Earnings Per Share | PG&E Corporation’s basic EPS are 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. |
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 customer 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 recorded at fair value and on a net basis in accordance with master netting arrangements for each counter-party. 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 in 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. |
Fair Value Measurement | 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. |
Valuation Techniques | 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. Transfers between levels in the fair value hierarchy are recognized as of the end of the reporting period. There were no material transfers between any levels for the three months ended March 31, 2019 and 2018 . 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 and other trust assets are composed primarily of equity and fixed-income securities and also include short-term investments that are money market funds valued at 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 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. Market and credit risk management 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 |
Contingencies and Commitments | PG&E Corporation and the Utility have significant contingencies arising from their operations, including contingencies related to enforcement and litigation matters and environmental remediation. 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 reasonably be 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. PG&E Corporation’s and the Utility’s provision for loss and expense excludes anticipated legal costs, which are expensed as incurred. The Utility also has substantial financial commitments in connection with agreements entered into to support its operating activities. PG&E Corporation’s and the Utility’s financial condition, results of operations, and cash flows may be materially affected by the outcome of the following matters. |
BANKRUPTCY FILING (Tables)
BANKRUPTCY FILING (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Reorganizations [Abstract] | |
Schedule of Liabilities Subject to Compromise | The following table presents LSTC as reported in the Condensed Consolidated Balance Sheets at March 31, 2019 : (in millions) PG&E Corporation (1) Utility PG&E Corporation Consolidated Financing debt (2) $ 650 $ 21,811 $ 22,461 Wildfire-related claims (3) — 14,212 14,212 Trade creditors 1 1,850 1,851 Non-qualified benefit plan 122 17 139 2001 bankruptcy disputed claims — 221 221 Customer deposits & advances — 272 272 Other 2 164 166 Total Liabilities Subject to Compromise $ 775 $ 38,547 $ 39,322 (1) PG&E Corporation amounts reflected under the column “PG&E Corporation” exclude the accounts of the Utility. (2) At March 31, 2019 , PG&E Corporation and the Utility had $650 million and $21,526 million in aggregate principal amount of indebtedness, respectively. Utility financing debt also includes $285 million of accrued contractual interest to the Petition Date. See Note 5 for details of pre-petition debt reported as LSTC. (3) See Note 10 for details of pre-petition wildfire-related claims reported as LSTC. |
Schedule of Debtor Reorganization Items | Reorganization items, net as of March 31, 2019 include the following: Post-Petition Period Through March 31, 2019 (in millions) PG&E Corporation (1) Utility PG&E Corporation Consolidated Debtor-in-possession financing costs 17 97 114 Legal and other $ 1 $ 23 $ 24 Interest income (2 ) (9 ) (11 ) Total reorganization items, net $ 16 $ 111 $ 127 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Components of Net Periodic Benefit Cost | The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three months ended March 31, 2019 and 2018 were as follows: Pension Benefits Other Benefits Three Months Ended March 31, (in millions) 2019 2018 2019 2018 Service cost for benefits earned (1) $ 111 $ 128 $ 14 $ 16 Interest cost 189 172 19 17 Expected return on plan assets (227 ) (255 ) (31 ) (33 ) Amortization of prior service cost (1 ) (1 ) 4 4 Amortization of net actuarial loss 1 1 (1 ) (1 ) Net periodic benefit cost 73 45 5 3 Regulatory account transfer (2) 10 39 — — Total $ 83 $ 84 $ 5 $ 3 (1) A portion of service costs are capitalized pursuant to ASU 2017-07. (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 (Loss) | The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) are summarized below: Pension Other Total (in millions, net of income tax) Three Months Ended March 31, 2019 Beginning balance $ (21 ) $ 17 $ (4 ) Amounts reclassified from other comprehensive income: Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1) (1 ) 3 2 Amortization of net actuarial loss (net of taxes of $0 and $0, respectively) (1) 1 (1 ) — Regulatory account transfer (net of taxes of $0 and $1, respectively) (1) — (2 ) (2 ) Net current period other comprehensive gain (loss) — — — Ending balance $ (21 ) $ 17 $ (4 ) (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 March 31, 2018 Beginning balance $ (25 ) $ 17 $ (8 ) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1 ) 3 2 Amortization of net actuarial loss (net of taxes of $0 and $0, respectively) 1 (1 ) — Regulatory account transfer (net of taxes of $0 and $1, respectively) — (2 ) (2 ) Reclassification of stranded income tax to retained earnings (net of taxes of $0 and $0, respectively) (5 ) — (5 ) Net current period other comprehensive gain (loss) (5 ) — (5 ) Ending balance $ (30 ) $ 17 $ (13 ) (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.) |
Summary of Revenues Disaggregated by Type of Customer | The following table presents the Utility’s revenues disaggregated by type of customer: Three Months Ended March 31, (in millions) 2019 2018 Electric Revenue from contracts with customers Residential $ 1,288 $ 1,336 Commercial 953 1,073 Industrial 293 324 Agricultural 86 125 Public street and highway lighting 17 20 Other (1) (309 ) (201 ) Total revenue from contracts with customers - electric 2,328 2,677 Regulatory balancing accounts (2) 464 274 Total electric operating revenue $ 2,792 $ 2,951 Natural gas Revenue from contracts with customers Residential $ 1,171 $ 958 Commercial 240 196 Transportation service only 382 297 Other (1) (75 ) (52 ) Total revenue from contracts with customers - gas 1,718 1,399 Regulatory balancing accounts (2) (499 ) (294 ) Total natural gas operating revenue 1,219 1,105 Total operating revenues $ 4,011 $ 4,056 (1) This activity is primarily related to the change in unbilled revenue, partially offset by other miscellaneous revenue items. (2) These amounts represent revenues authorized to be billed or refunded to customers. |
Schedule of Lease Expense | The following table shows the lease expense recognized for the fixed and variable component of the Utility’s lease obligations: (in millions) Three Months Ended March 31, 2019 Operating lease fixed cost $ 122 Operating lease variable cost 309 Total operating lease costs $ 431 |
Schedule of Future Expected Operating Lease Payments and Expected Obligations for Power Purchase and Other Lease Commitments | The following table shows the Utility’s future expected operating lease payments: (in millions) March 31, 2019 2019 $ 686 2020 669 2021 616 2022 523 2023 195 Thereafter 672 Total lease payments 3,361 Less imputed interest (633 ) Total $ 2,728 The following table shows the Utility’s future expected obligations for power purchase and other lease commitments: (in millions) December 31, 2018 2019 $ 684 2020 677 2021 621 2022 546 2023 252 Thereafter 581 Total lease commitments $ 3,361 |
REGULATORY ASSETS, LIABILITIE_2
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Regulated Operations [Abstract] | |
Long-Term Regulatory Assets | Long-term regulatory assets are comprised of the following: Asset Balance at (in millions) March 31, 2019 December 31, 2018 Pension benefits (1) $ 1,938 $ 1,947 Environmental compliance costs 932 1,013 Utility retained generation (2) 262 274 Price risk management 65 90 Unamortized loss, net of gain, on reacquired debt (3) 237 76 Catastrophic event memorandum account (4) 865 790 Wildfire expense memorandum account (5) 111 94 Fire hazard prevention memorandum account (6) 329 263 Other 412 417 Total long-term regulatory assets $ 5,151 $ 4,964 (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 the accelerated amortization of premiums and debt issuance costs on pre-petition debt. (4) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. Recovery of CEMA costs are subject to CPUC review and approval. (5) Includes specific incremental wildfire liability costs the CPUC approved for tracking in June 2018. Recovery of WEMA costs are subject to CPUC review and approval. (6) 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 are subject to CPUC review and approval. |
Long-Term Regulatory Liabilities | Long-term regulatory liabilities are comprised of the following: Liability Balance at (in millions) March 31, 2019 December 31, 2018 Cost of removal obligations (1) $ 6,134 $ 5,981 Deferred income taxes (2) 142 283 Recoveries in excess of AROs (3) 471 356 Public purpose programs (4) 758 674 Retirement Plan (5) 422 421 Other 945 824 Total long-term regulatory liabilities $ 8,872 $ 8,539 (1) Represents the cumulative differences between asset removal costs recorded and amounts collected in rates for expected asset removal costs. (2) Represents the net of amounts owed to customers for deferred taxes collected at higher rates before the Tax Act and amounts owed to the Utility for reversal of deferred taxes subject to flow-through treatment. (3) 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 9 below.) (4) 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. (5) Represents cumulative differences between incurred costs and amounts collected in rates for Post-Retirement Medical, Post-Retirement Life and Long Term Disability Plans. |
Regulatory Balancing Accounts Receivable | Current regulatory balancing accounts receivable and payable are comprised of the following: Receivable Balance at (in millions) March 31, 2019 December 31, 2018 Electric distribution $ 449 $ 160 Electric transmission 128 128 Utility generation 357 79 Gas distribution and transmission 70 462 Energy procurement 137 168 Public purpose programs 76 111 Other 280 327 Total regulatory balancing accounts receivable $ 1,497 $ 1,435 |
Regulatory Balancing Accounts Payable | Payable Balance at (in millions) March 31, 2019 December 31, 2018 Electric transmission 146 134 Gas distribution and transmission 51 9 Energy procurement 223 59 Public purpose programs 600 587 Other 325 287 Total regulatory balancing accounts payable $ 1,345 $ 1,076 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debtor-in-Possession Financing | The following table summarizes the Utility’s outstanding borrowings and availability under the DIP Facilities at March 31, 2019 : (in millions) Termination Date Limit Letters of Credit Outstanding Borrowings Against DIP Revolving Facility Availability DIP Facilities December 2020 (1) $ 1,500 (2) $ 131 $ 350 $ 1,019 (1) May be extended to December 2021, subject to satisfaction of certain terms and conditions, including payment of a 25 basis point extension fee. (2) On March 27, 2019, the Bankruptcy Court approved the DIP Facilities in full, but the conditions precedent to the full availability of the DIP Facilities were not satisfied until April 3, 2019. Accordingly, the amounts set forth in this table are based on the interim availability under the DIP Revolving Facility of $1.5 billion . |
Schedule of Debt | The following table summarizes PG&E Corporation’s and the Utility’s outstanding debt subject to compromise: Balance at, (in millions) Contractual Interest Rates March 31, 2019 December 31, 2018 Debt Subject to Compromise (1) PG&E Corporation Borrowings under Pre-Petition Credit Facilities PG&E Corporation Revolving Credit Facilities - Stated Maturity: 2022 variable rate (2) $ 300 $ 300 Other borrowings: Term Loan - Stated Maturity: 2020 variable rate (3) 350 350 Total PG&E Corporation Debt Subject to Compromise 650 650 Utility Senior Notes - Stated Maturity: 2020 3.50% 800 800 2021 3.25% to 4.25% 550 550 2022 2.45% 400 400 2023 3.25% to 4.25% 1,175 1,175 2024 through 2046 2.95% to 6.35% 14,600 14,600 Unamortized discount, net or premium and debt issuance costs — (178 ) Total Senior notes, net of premium and debt issuance costs 17,525 17,347 Pollution Control Bonds - Stated Maturity: Series 2008 F and 2010 E, due 2026 (4) 1.75% 100 100 Series 2009 A-B, due 2026 (5) variable rate (6) 149 149 Series 1996 C, E, F, 1997 B due 2026 (5) variable rate (7) 614 614 Total pollution control bonds 863 863 Borrowings under Pre-Petition Credit Facilities Utility Revolving Credit Facilities - Stated Maturity: 2022 (8) variable rate (9) 2,965 2,965 Other borrowings: Term Loan - Stated Maturity: 2019 variable rate (10) 250 250 Total Borrowings under Pre-Petition Credit Facility Subject to Compromise 3,215 3,215 Total Utility Debt Subject to Compromise 21,603 21,425 Total PG&E Corporation Consolidated Debt Subject to Compromise $ 22,253 $ 22,075 (1) LSTC must be reported at the amounts expected to be allowed by the Bankruptcy Court. The carrying value of the debt subject to compromise will be adjusted as claims are approved. As of March 31, 2019 , PG&E Corporation and the Utility wrote off $178 million of unamortized debt issuance costs and debt discount to present the debt subject to compromise at the outstanding face value. The write-offs are included within long-term regulatory assets in the Condensed Consolidated Statements of Income. See Notes 2 and 4 for further details. (2) At March 31, 2019 , the contractual LIBOR-based interest rate on loans were 3.97% . (3) At March 31, 2019 , the contractual LIBOR-based interest rate on the term loan was 3.71% . (4) Pollution Control Bonds series 2008F and 2010E were reissued in June 2017. Although the stated maturity date for both series is 2026, these bonds have a mandatory redemption date of May 31, 2022. (5) Each series of these bonds is supported by a separate direct-pay letter of credit. Following the Utility’s Chapter 11 filing, investors in these bonds drew on the letter of credit facilities. The letter of credit facility supporting the Series 2009 A-B bonds has a maturity date of June 5, 2019. In December 2015, the maturity dates of the letter of credit facilities supporting the Series 1996 C, E, F, 1997 B bonds were extended to December 1, 2020. Although the stated maturity date of these bonds is 2026, each series will remain outstanding only if the Utility extends or replaces the letter of credit related to the series or otherwise obtains consent from the issuer to the continuation of the series without a credit facility. (6) At March 31, 2019, the contractual interest rate on the letter of credit facility supporting these bonds was 4.13% . (7) At March 31, 2019 , the contractual interest rate on the letter of credit facility supporting these bonds ranged from 4.13% to 4.47% . (8) Also includes $80 million in letters of credit. (9) At March 31, 2019 , the contractual LIBOR-based interest rate was 3.67% . (10) At March 31, 2019 , the contractual LIBOR-based interest rate was 3.09% . |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Changes in Equity | PG&E Corporation’s changes in equity for the three months ended March 31, 2019 and 2018 were as follows: (in millions, except share amounts) Common Stock Shares Common Stock Amount Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Non controlling Interest - Preferred Stock of Subsidiary Total Equity Balance at December 31, 2018 520,338,710 $ 12,910 $ (250 ) $ (9 ) $ 12,651 $ 252 $ 12,903 Net income (loss) — — 136 — 136 — 136 Other comprehensive loss — — — — — — — Common stock issued, net 8,871,568 85 — — 85 — 85 Stock-based compensation amortization — 5 — — 5 — 5 Balance at March 31, 2019 529,210,278 $ 13,000 $ (114 ) $ (9 ) $ 12,877 $ 252 $ 13,129 (in millions, except share amounts) Common Stock Shares Common Stock Amount Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Non controlling Interest - Preferred Stock of Subsidiary Total Equity Balance at December 31, 2017 514,775,845 $ 12,632 $ 6,596 $ (8 ) $ 19,220 $ 252 $ 19,472 Net income — — 445 — 445 — 445 Other comprehensive income — — — — — — — Common stock issued, net 1,248,112 35 — — 35 — 35 Stock-based compensation amortization — 34 — — 34 — 34 Preferred stock dividend requirement of subsidiary — — (3 ) — (3 ) — (3 ) Balance at March 31, 2018 516,023,957 $ 12,701 $ 7,038 $ (8 ) $ 19,731 $ 252 $ 19,983 The Utility’s changes in equity for the three months ended March 31, 2019 and 2018 were as follows: (in millions) Preferred Stock Common Additional Paid-in Capital Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance at December 31, 2018 $ 258 $ 1,322 $ 8,550 $ 2,826 $ (1 ) $ 12,955 Net income (loss) — — — 133 — 133 Other comprehensive loss — — — — — — Equity contribution — — — — — — Preferred stock dividend — — — — — — Balance at March 31, 2019 $ 258 $ 1,322 $ 8,550 $ 2,959 $ (1 ) $ 13,088 (in millions) Preferred Stock Common Additional Paid-in Capital Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders’ Equity Balance at December 31, 2017 258 1,322 8,505 9,656 6 $ 19,747 Net income — — — 452 — 452 Other comprehensive income — — — 2 (2 ) — Equity contribution — — — — — — Common stock dividend — — — — — — Preferred stock dividend — — — (3 ) — (3 ) Balance at March 31, 2018 $ 258 $ 1,322 $ 8,505 $ 10,107 $ 4 $ 20,196 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of PG&E Corporation's Income Available for Common Shareholders and Weighted Average Common Shares Outstanding for Calculating 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 March 31, (in millions, except per share amounts) 2019 2018 Income available for common shareholders $ 136 $ 445 Preferred stock dividend requirement of subsidiary 3 3 Adjusted income available for common shareholders 133 442 Weighted average common shares outstanding, basic 526 515 Add incremental shares from assumed conversions: Employee share-based compensation 1 1 Weighted average common shares outstanding, diluted 527 516 Total earnings per common share, diluted $ 0.25 $ 0.86 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, December 31, Natural Gas (1) (MMBtus (2) ) Forwards, Futures and Swaps 138,016,980 177,750,349 Options 4,115,000 13,735,405 Electricity (Megawatt-hours) Forwards, Futures and Swaps 3,011,826 3,833,490 Congestion Revenue Rights (3) 335,556,726 340,783,089 (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. |
Schedule of Offsetting Assets | At March 31, 2019 , the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Balance Netting Cash Collateral Total Derivative Balance Current assets – other $ 45 $ (2 ) $ 38 $ 81 Other noncurrent assets – other 165 1 — 166 Current liabilities – other (37 ) 17 3 (17 ) Noncurrent liabilities – other (49 ) (16 ) — (65 ) Total commodity risk $ 124 $ — $ 41 $ 165 At December 31, 2018 , the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Balance Netting Cash Collateral Total Derivative Balance Current assets – other $ 44 $ (1 ) $ 89 $ 132 Other noncurrent assets – other 165 — — 165 Current liabilities – other (29 ) 1 7 (21 ) Noncurrent liabilities – other (90 ) — 2 (88 ) Total commodity risk $ 90 $ — $ 98 $ 188 |
Schedule of Offsetting Liabilities | At March 31, 2019 , the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Balance Netting Cash Collateral Total Derivative Balance Current assets – other $ 45 $ (2 ) $ 38 $ 81 Other noncurrent assets – other 165 1 — 166 Current liabilities – other (37 ) 17 3 (17 ) Noncurrent liabilities – other (49 ) (16 ) — (65 ) Total commodity risk $ 124 $ — $ 41 $ 165 At December 31, 2018 , the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Balance Netting Cash Collateral Total Derivative Balance Current assets – other $ 44 $ (1 ) $ 89 $ 132 Other noncurrent assets – other 165 — — 165 Current liabilities – other (29 ) 1 7 (21 ) Noncurrent liabilities – other (90 ) — 2 (88 ) Total commodity risk $ 90 $ — $ 98 $ 188 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 2,898 $ — $ — $ — $ 2,898 Nuclear decommissioning trusts Short-term investments 18 — — — 18 Global equity securities 1,882 — — — 1,882 Fixed-income securities 790 692 — — 1,482 Assets measured at NAV — — — — 18 Total nuclear decommissioning trusts (2) 2,690 692 — — 3,400 Price risk management instruments (Note 8) Electricity — 1 209 15 225 Gas — — — 22 22 Total price risk management instruments — 1 209 37 247 Rabbi trusts Fixed-income securities — 96 — — 96 Life insurance contracts — 69 — — 69 Total rabbi trusts — 165 — — 165 Long-term disability trust Short-term investments 8 — — — 8 Assets measured at NAV — — — — 146 Total long-term disability trust 8 — — — 154 TOTAL ASSETS $ 5,596 $ 858 $ 209 $ 37 $ 6,864 Liabilities: Price risk management instruments (Note 8) Electricity $ 1 $ 3 $ 80 $ (4 ) $ 80 Gas — 2 — — 2 TOTAL LIABILITIES $ 1 $ 5 $ 80 $ (4 ) $ 82 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral. (2) Represents amount before deducting $468 million , primarily related to deferred taxes on appreciation of investment value. Fair Value Measurements December 31, 2018 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 1,593 $ — $ — $ — $ 1,593 Nuclear decommissioning trusts Short-term investments 29 — — — 29 Global equity securities 1,793 — — — 1,793 Fixed-income securities 661 639 — — 1,300 Assets measured at NAV — — — — 16 Total nuclear decommissioning trusts (2) 2,483 639 — — 3,138 Price risk management instruments (Note 8) Electricity — 5 203 51 259 Gas — 1 — 37 38 Total price risk management instruments — 6 203 88 297 Rabbi trusts Fixed-income securities — 93 — — 93 Life insurance contracts — 67 — — 67 Total rabbi trusts — 160 — — 160 Long-term disability trust Short-term investments 7 — — — 7 Assets measured at NAV — — — — 155 Total long-term disability trust 7 — — — 162 TOTAL ASSETS $ 4,083 $ 805 $ 203 $ 88 $ 5,350 Liabilities: Price risk management instruments (Note 8) Electricity $ 4 $ 5 $ 108 $ (10 ) $ 107 Gas — 2 — — 2 TOTAL LIABILITIES $ 4 $ 7 $ 108 $ (10 ) $ 109 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral. (2) Represents amount before deducting $408 million , primarily related to deferred taxes on appreciation of investment value. |
Level 3 Measurements and Sensitivity Analysis | Fair Value at (in millions) March 31, 2019 Fair Value Measurement Assets Liabilities Valuation Unobservable Range (1) Congestion revenue rights $ 203 $ 60 Market approach CRR auction prices $(36.87) - 23.04 Power purchase agreements $ 6 $ 20 Discounted cash flow Forward prices $ 19.81 - 38.80 (1) Represents price per megawatt-hour. Fair Value at (in millions) December 31, 2018 Fair Value Measurement Assets Liabilities Valuation Technique Unobservable Input Range (1) Congestion revenue rights $ 203 $ 75 Market approach CRR auction prices $ (18.61) - 32.26 Power purchase agreements $ — $ 33 Discounted cash flow Forward prices $ 19.81 - 38.80 (1) Represents price per megawatt-hour. |
Level 3 Reconciliation | The following tables present the reconciliation for Level 3 price risk management instruments for the three months ended March 31, 2019 and 2018 : Price Risk Management Instruments (in millions) 2019 2018 Asset (liability) balance as of January 1 $ 95 $ 42 Net realized and unrealized gains: Included in regulatory assets and liabilities or balancing accounts (1) 34 (2 ) Asset (liability) balance as of March 31 $ 129 $ 40 (1) The costs related to price risk management activities are fully passed through to customers in 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 debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values): At March 31, 2019 At December 31, 2018 (in millions) Carrying Amount Level 2 Fair Value Carrying Amount Level 2 Fair Value PG&E Corporation (1) — — $ 350 $ 350 Utility (1)(2) 350 350 17,450 14,747 (1) On January 29, 2019 PG&E Corporation and the Utility filed for Chapter 11 protection. Debt held by PG&E Corporation and the Utility became debt subject to compromise and is valued at the allowed claim amount. For more information, see Note 2 and Note 4. (2) The Utility drew $350 million from the DIP Revolving Facility on February 1, 2019 which was subsequently repaid on April 3, 2019 using certain of the proceeds of the DIP Initial Term Loan Facility. |
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) As of March 31, 2019 Amortized Total Unrealized Gains Total Unrealized Losses Total Fair Nuclear decommissioning trusts Short-term investments $ 18 $ — $ — $ 18 Global equity securities 481 1,422 (3 ) 1,900 Fixed-income securities 1,432 58 (8 ) 1,482 Total (1) $ 1,931 $ 1,480 $ (11 ) $ 3,400 As of December 31, 2018 Nuclear decommissioning trusts Short-term investments $ 29 $ — $ — $ 29 Global equity securities 568 1,246 (5 ) 1,809 Fixed-income securities 1,288 30 (18 ) 1,300 Total (1) $ 1,885 $ 1,276 $ (23 ) $ 3,138 (1) Represents amounts before deducting $468 million and $408 million for the periods ended March 31, 2019 and December 31, 2018 , respectively, primarily related to deferred taxes on appreciation of investment value. |
Schedule of Maturities on Debt Instruments | The fair value of fixed-income securities by contractual maturity is as follows: As of (in millions) March 31, 2019 Less than 1 year $ 31 1–5 years 534 5–10 years 337 More than 10 years 580 Total maturities of fixed-income securities $ 1,482 |
Schedule of Activity for Debt and Equity Securities | The following table provides a summary of activity for fixed income and equity securities: Three Months Ended March 31, (in millions) 2019 2018 Proceeds from sales and maturities of nuclear decommissioning trust investments $ 346 $ 494 Gross realized gains on securities (34 ) 37 Gross realized losses on securities 19 (4 ) |
WILDFIRE-RELATED CONTINGENCIES
WILDFIRE-RELATED CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Environmental Remediation Liability | At March 31, 2019 and December 31, 2018 , the Utility’s Condensed Consolidated Balance Sheets include estimated liabilities in respect of total wildfire-related claims as follows: Balance at (in millions) March 31, 2019 December 31, 2018 2015 Butte fire $ 212 $ 226 2017 Northern California wildfires 3,500 3,500 2018 Camp fire 10,500 10,500 Total wildfire-related claims (1) $ 14,212 $ 14,226 (1) On the Petition Date all wildfire-related claims were classified as subject to compromise and all pending litigation was stayed. (For more information see Note 2 of the Condensed Consolidated Financial Statements.) |
Changes in Insurance Receivable | The following table presents changes in the insurance receivable since December 31, 2015. The balance for the insurance receivable is included in Other accounts receivable in PG&E Corporation’s and the Utility’s Condensed Consolidated Balance Sheets: Insurance Receivable (in millions) Balance at December 31, 2015 $ — Accrued insurance recoveries 625 Reimbursements (50) Balance at December 31, 2016 575 Accrued insurance recoveries 297 Reimbursements (276) Balance at December 31, 2017 596 Accrued insurance recoveries — Reimbursements (511 ) Balance at December 31, 2018 85 Accrued insurance recoveries — Reimbursements (25 ) Balance as of March 31, 2019 $ 60 |
Change in Accruals Related to Third-Party Claims | The following table presents changes in the insurance receivable for the three months ended March 31, 2019 . The balance for insurance receivable is included in Other accounts receivable in PG&E Corporation’s and the Utility’s Condensed Consolidated Balance Sheets: (in millions) Insurance Receivable 2018 Camp fire Balance at December 31, 2018 $ 1,380 Accrued insurance recoveries $ — Reimbursements — Balance at March 31, 2019 $ 1,380 2017 Northern California wildfires Balance at December 31, 2018 $ 829 Accrued insurance recoveries — Reimbursements — Balance at March 31, 2019 $ 829 The following table presents changes in the third-party claims liability since December 31, 2015. The balance for the third-party claims liability is included in Wildfire-related claims in PG&E Corporation’s and the Utility’s Condensed Consolidated Balance Sheets: Loss Accrual (in millions) Balance at December 31, 2015 $ — Accrued losses 750 Payments (1) (60) Balance at December 31, 2016 690 Accrued losses 350 Payments (1) (479) Balance at December 31, 2017 561 Accrued losses — Payments (1) (335 ) Balance at December 31, 2018 226 Accrued losses — Payments (1) (14 ) Balance as of March 31, 2019 $ 212 (1) As of March 31, 2019 , the Utility has paid $ 888 million of the $ 904 million in settlements to date in connection with the 2015 Butte fire. |
OTHER CONTINGENCIES AND COMMI_2
OTHER CONTINGENCIES AND COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, December 31, (in millions) 2019 2018 Topock natural gas compressor station $ 358 $ 369 Hinkley natural gas compressor station 145 146 Former manufactured gas plant sites owned by the Utility or third parties (1) 525 520 Utility-owned generation facilities (other than fossil fuel-fired), (2) 107 111 Fossil fuel-fired generation facilities and sites (3) 131 137 Total environmental remediation liability $ 1,266 $ 1,283 (1) Primarily driven by the following sites: Vallejo, San Francisco East Harbor, Napa, Beach Street, and San Francisco North Beach. (2) Primarily driven by the Geothermal landfill and Shell Pond site. (3) Primarily driven by the San Francisco Potrero Power Plant. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments (segment) | 1 |
BANKRUPTCY FILING (Narrative) (
BANKRUPTCY FILING (Narrative) (Details) - USD ($) | 2 Months Ended | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense on prepetition liabilities not recorded in financial statements | $ 166,000,000 | |||
DIP Credit Agreement | Line of Credit | Senior Secured Superpriority Debt | ||||
Debt Instrument [Line Items] | ||||
Amount arranged | $ 5,500,000,000 | $ 5,500,000,000 | ||
Pacific Gas & Electric Co | ||||
Debt Instrument [Line Items] | ||||
Payments for reorganization items | $ 91,000,000 | |||
PG&E Corporation | ||||
Debt Instrument [Line Items] | ||||
Payments for reorganization items | $ 17,000,000 |
BANKRUPTCY FILING (Schedule of
BANKRUPTCY FILING (Schedule of Liabilities Subject to Compromise) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Reorganizations [Line Items] | ||
Financing debt | $ 22,461,000,000 | |
Wildfire-related claims | 14,212,000,000 | |
Trade creditors | 1,851,000,000 | |
Non-qualified benefit plan | 139,000,000 | |
2001 bankruptcy disputed claims | 221,000,000 | |
Customer deposits & advances | 272,000,000 | |
Other | 166,000,000 | |
Total Liabilities Subject to Compromise | 39,322,000,000 | $ 0 |
Pacific Gas & Electric Co | ||
Reorganizations [Line Items] | ||
Financing debt | 21,811,000,000 | |
Wildfire-related claims | 14,212,000,000 | |
Trade creditors | 1,850,000,000 | |
Non-qualified benefit plan | 17,000,000 | |
2001 bankruptcy disputed claims | 221,000,000 | |
Customer deposits & advances | 272,000,000 | |
Other | 164,000,000 | |
Total Liabilities Subject to Compromise | 38,547,000,000 | $ 0 |
Debt subject to compromise, aggregate principal amount | 21,526 | |
Accrued contractual interest subject to compromise | 285,000,000 | |
PG&E Corporation | ||
Reorganizations [Line Items] | ||
Financing debt | 650,000,000 | |
Wildfire-related claims | 0 | |
Trade creditors | 1,000,000 | |
Non-qualified benefit plan | 122,000,000 | |
2001 bankruptcy disputed claims | 0 | |
Customer deposits & advances | 0 | |
Other | 2,000,000 | |
Total Liabilities Subject to Compromise | 775,000,000 | |
Debt subject to compromise, aggregate principal amount | $ 650,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost for benefits earned | $ 111 | $ 128 |
Interest cost | 189 | 172 |
Expected return on plan assets | (227) | (255) |
Amortization of prior service cost | (1) | (1) |
Amortization of net actuarial loss | 1 | 1 |
Net periodic benefit cost | 73 | 45 |
Regulatory account transfer | 10 | 39 |
Total | 83 | 84 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost for benefits earned | 14 | 16 |
Interest cost | 19 | 17 |
Expected return on plan assets | (31) | (33) |
Amortization of prior service cost | 4 | 4 |
Amortization of net actuarial loss | (1) | (1) |
Net periodic benefit cost | 5 | 3 |
Regulatory account transfer | 0 | 0 |
Total | $ 5 | $ 3 |
BANKRUPTCY FILING (Schedule o_2
BANKRUPTCY FILING (Schedule of Debtor Reorganization Items) (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Reorganizations [Line Items] | |||
Debtor-in-possession financing costs | $ 114 | ||
Legal and other | 24 | ||
Interest income | (11) | ||
Total reorganization items, net | 127 | $ 127 | $ 0 |
Pacific Gas & Electric Co | |||
Reorganizations [Line Items] | |||
Debtor-in-possession financing costs | 97 | ||
Legal and other | 23 | ||
Interest income | (9) | ||
Total reorganization items, net | 111 | $ 111 | $ 0 |
PG&E Corporation | |||
Reorganizations [Line Items] | |||
Debtor-in-possession financing costs | 17 | ||
Legal and other | 1 | ||
Interest income | (2) | ||
Total reorganization items, net | $ 16 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 12,903 | $ 19,472 |
Net current period other comprehensive gain (loss) | 0 | (5) |
Ending balance | 13,129 | 19,983 |
Pension Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Net current period other comprehensive gain (loss) | 0 | (5) |
Other Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Net current period other comprehensive gain (loss) | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (4) | (8) |
Ending balance | (4) | (13) |
Accumulated Other Comprehensive Income (Loss) | Pension Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (21) | (25) |
Ending balance | (21) | (30) |
Accumulated Other Comprehensive Income (Loss) | Other Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 17 | 17 |
Ending balance | 17 | 17 |
Amortization of prior service benefit (cost) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 2 | 2 |
Amortization of prior service benefit (cost) | Pension Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (1) | (1) |
Amount attributable to tax | 0 | 0 |
Amortization of prior service benefit (cost) | Other Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 3 | 3 |
Amount attributable to tax | 1 | 1 |
Amortization of net actuarial gain (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 0 | 0 |
Amortization of net actuarial gain (loss) | Pension Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 1 | 1 |
Amount attributable to tax | 0 | 0 |
Amortization of net actuarial gain (loss) | Other Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (1) | (1) |
Amount attributable to tax | 0 | 0 |
Regulatory account transfer | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (2) | (2) |
Regulatory account transfer | Pension Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 0 | 0 |
Amount attributable to tax | 0 | 0 |
Regulatory account transfer | Other Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (2) | (2) |
Amount attributable to tax | $ 1 | 1 |
Reclassification of stranded income tax to retained earnings | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (5) | |
Reclassification of stranded income tax to retained earnings | Pension Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (5) | |
Amount attributable to tax | 0 | |
Reclassification of stranded income tax to retained earnings | Other Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 0 | |
Amount attributable to tax | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Period for probable revenue recovery | 24 months | |
Operating lease, cash payments | $ 335 | |
Operating lease right of use asset | 2,738 | |
Operating lease, liability | $ 2,728 | |
Operating lease, weighted average remaining lease term | 6 years 4 months | |
Operating lease, weighted average discount rate, percent | 6.11% | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 20 years | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right of use asset | $ 2,800 | |
Operating lease, liability | $ 2,800 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenues Disaggregated by Type of Customer) (Details) - Pacific Gas & Electric Co - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from contracts with customers | ||
Total operating revenues | $ 4,011 | $ 4,056 |
Electric | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 2,328 | 2,677 |
Regulatory balancing accounts | 464 | 274 |
Total operating revenues | 2,792 | 2,951 |
Electric | Residential | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 1,288 | 1,336 |
Electric | Commercial | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 953 | 1,073 |
Electric | Industrial | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 293 | 324 |
Electric | Agricultural | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 86 | 125 |
Electric | Public street and highway lighting | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 17 | 20 |
Electric | Other | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | (309) | (201) |
Natural gas | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 1,718 | 1,399 |
Regulatory balancing accounts | (499) | (294) |
Total operating revenues | 1,219 | 1,105 |
Natural gas | Residential | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 1,171 | 958 |
Natural gas | Commercial | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 240 | 196 |
Natural gas | Transportation service only | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | 382 | 297 |
Natural gas | Other | ||
Revenue from contracts with customers | ||
Total revenue from contracts with customers | $ (75) | $ (52) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Lease Expense) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Operating lease fixed cost | $ 122 |
Operating lease variable cost | 309 |
Total operating lease costs | $ 431 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Future Expected Operating Lease Payments and Expected Obligations for Power Purchase and Other Lease Commitments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Future Expected Operating Lease Payments | ||
2019 | $ 686 | |
2020 | 669 | |
2021 | 616 | |
2022 | 523 | |
2023 | 195 | |
Thereafter | 672 | |
Total lease payments | 3,361 | |
Less imputed interest | (633) | |
Total | $ 2,728 | |
Future Expected Minimum Lease Commitments | ||
2019 | $ 684 | |
2020 | 677 | |
2021 | 621 | |
2022 | 546 | |
2023 | 252 | |
Thereafter | 581 | |
Total lease commitments | $ 3,361 |
REGULATORY ASSETS, LIABILITIE_3
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Long-Term Regulatory Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | $ 5,151 | $ 4,964 |
Retained generation asset costs | 1,200 | |
Pension benefits | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 1,938 | 1,947 |
Environmental compliance costs | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 932 | 1,013 |
Utility retained generation | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 262 | 274 |
Price risk management | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 65 | 90 |
Unamortized loss, net of gain, on reacquired debt | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 237 | 76 |
Catastrophic event memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 865 | 790 |
Wildfire expense memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 111 | 94 |
Fire hazard prevention memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 329 | 263 |
Other | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | $ 412 | $ 417 |
REGULATORY ASSETS, LIABILITIE_4
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Long-Term Regulatory Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | $ 8,872 | $ 8,539 |
Cost of removal obligations | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 6,134 | 5,981 |
Deferred income taxes | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 142 | 283 |
Recoveries in excess of AROs | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 471 | 356 |
Public purpose programs | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 758 | 674 |
Retirement Plan | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 422 | 421 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | $ 945 | $ 824 |
REGULATORY ASSETS, LIABILITIE_5
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Current Regulatory Balancing Accounts, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Total regulatory balancing accounts receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | $ 1,497 | $ 1,435 |
Total regulatory balancing accounts receivable | Electric distribution | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 449 | 160 |
Total regulatory balancing accounts receivable | Electric transmission | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 128 | 128 |
Total regulatory balancing accounts receivable | Utility generation | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 357 | 79 |
Total regulatory balancing accounts receivable | Gas distribution and transmission | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 70 | 462 |
Total regulatory balancing accounts receivable | Energy procurement | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 137 | 168 |
Total regulatory balancing accounts receivable | Public purpose programs | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 76 | 111 |
Total regulatory balancing accounts receivable | Other | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 280 | 327 |
Total regulatory balancing accounts payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 1,345 | 1,076 |
Total regulatory balancing accounts payable | Electric transmission | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 146 | 134 |
Total regulatory balancing accounts payable | Gas distribution and transmission | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 51 | 9 |
Total regulatory balancing accounts payable | Energy procurement | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 223 | 59 |
Total regulatory balancing accounts payable | Public purpose programs | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | 600 | 587 |
Total regulatory balancing accounts payable | Other | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts, net | $ 325 | $ 287 |
DEBT (Debtor In Possession ("DI
DEBT (Debtor In Possession ("DIP") Facilities and Financing) (Details) | Apr. 03, 2019USD ($) | Mar. 31, 2019USD ($) | Feb. 01, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |||||
Debtor-in-possession financing | $ 350,000,000 | $ 0 | |||
Commercial Paper | 0 | ||||
Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Debtor-in-possession financing | 350,000,000 | 0 | |||
Commercial Paper | 0 | ||||
Senior Secured Superpriority Debt | Line of Credit | DIP Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | $ 5,500,000,000 | $ 5,500,000,000 | |||
DIP Revolving Facility | Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Letters of Credit Outstanding | 80,000,000 | ||||
Borrowings Against DIP Revolving Facility | 2,965,000,000 | $ 2,965,000,000 | |||
DIP Revolving Facility | DIP Credit Agreement | Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Limit | 1,500,000,000 | ||||
Letters of Credit Outstanding | 131,000,000 | ||||
Borrowings Against DIP Revolving Facility | 350,000,000 | ||||
Availability | $ 1,019,000,000 | ||||
Extension fee | 0.25 | ||||
DIP Revolving Facility | Line of Credit | DIP Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | 3,500,000,000 | ||||
DIP Revolving Facility | Line of Credit | DIP Credit Agreement | Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Debtor-in-possession financing | 1,500,000,000 | ||||
Letter of Credit Subfacility | Line of Credit | DIP Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | 1,500,000,000 | ||||
Letter of Credit Subfacility | Line of Credit | DIP Credit Agreement | Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | 1,500,000,000 | ||||
Letters of credit available | 750,000,000 | ||||
DIP Initial Term Loan Facility | Line of Credit | DIP Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | 1,500,000,000 | ||||
DIP Delayed Draw Term Loan Facility | Line of Credit | DIP Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | 500,000,000 | ||||
DIP Delayed Draw Term Loan Facility | Line of Credit | DIP Credit Agreement | Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | $ 350,000,000 | ||||
Subsequent Event | DIP Initial Term Loan Facility | Line of Credit | DIP Credit Agreement | Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Amount arranged | $ 1,500,000,000 | ||||
Subsequent Event | DIP Delayed Draw Term Loan Facility | Line of Credit | DIP Credit Agreement | Pacific Gas & Electric Co | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of debt | $ 350,000,000 |
DEBT (Schedule of Long-term Deb
DEBT (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt [Line Items] | ||
Debt subject to compromise | $ 22,253 | $ 22,075 |
Debtor reorganization items, write-off of debt issuance costs and debt discounts | 178 | |
Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Debt subject to compromise | 21,603 | 21,425 |
Long-term debt | 3,215 | 3,215 |
Pollution control bonds | 863 | 863 |
PG&E Corporation | ||
Debt [Line Items] | ||
Debt subject to compromise | 650 | 650 |
Term Loan Due 2020 | PG&E Corporation | ||
Debt [Line Items] | ||
Debt subject to compromise | $ 350 | 350 |
Interest rate at period end | 3.71% | |
Senior Notes Due 2020 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Contractual Interest Rates | 3.50% | |
Senior Notes Due 2022 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Contractual Interest Rates | 2.45% | |
Pollution Control Bonds Series 2008, F, And 2010, E, 1.75%, Due 2026 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Contractual Interest Rates | 1.75% | |
Pollution control bonds | $ 100 | 100 |
Pollution Control Bonds Series 2009, A-B, Variable Rate, Due 2026 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Pollution control bonds | 149 | 149 |
Pollution Control Bonds, Series 1996 C,E,F 1997 B, Variable Rates, Due 2026 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Pollution control bonds | 614 | 614 |
Term Loan Due 2019 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Other borrowings | $ 250 | 250 |
Interest rate at period end | 3.09% | |
Revolving Credit Facility | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Borrowings under Pre-Petition Credit Facilities | $ 2,965 | 2,965 |
Interest rate at period end | 3.67% | |
Letters of credit outstanding | $ 80 | |
Line of Credit | Revolving Credit Facility | PG&E Corporation | ||
Debt [Line Items] | ||
Debt subject to compromise | $ 300 | 300 |
Interest rate at period end | 3.97% | |
Senior Notes | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Unamortized discount, net or premium and debt issuance costs | $ 0 | (178) |
Long-term debt | 17,525 | 17,347 |
Senior Notes | Senior Notes Due 2020 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Senior notes | 800 | 800 |
Senior Notes | Senior Notes Due 2021 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Senior notes | $ 550 | 550 |
Senior Notes | Senior Notes Due 2021 | Pacific Gas & Electric Co | Minimum | ||
Debt [Line Items] | ||
Contractual Interest Rates | 3.25% | |
Senior Notes | Senior Notes Due 2021 | Pacific Gas & Electric Co | Maximum | ||
Debt [Line Items] | ||
Contractual Interest Rates | 4.25% | |
Senior Notes | Senior Notes Due 2022 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Senior notes | $ 400 | 400 |
Senior Notes | Senior Notes Due 2023 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Senior notes | $ 1,175 | 1,175 |
Senior Notes | Senior Notes Due 2023 | Pacific Gas & Electric Co | Minimum | ||
Debt [Line Items] | ||
Contractual Interest Rates | 3.25% | |
Senior Notes | Senior Notes Due 2023 | Pacific Gas & Electric Co | Maximum | ||
Debt [Line Items] | ||
Contractual Interest Rates | 4.25% | |
Senior Notes | Senior Notes Due 2024 through 2046 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Senior notes | $ 14,600 | $ 14,600 |
Senior Notes | Senior Notes Due 2024 through 2046 | Pacific Gas & Electric Co | Minimum | ||
Debt [Line Items] | ||
Contractual Interest Rates | 2.95% | |
Senior Notes | Senior Notes Due 2024 through 2046 | Pacific Gas & Electric Co | Maximum | ||
Debt [Line Items] | ||
Contractual Interest Rates | 6.35% | |
Letter of Credit | Pollution Control Bonds Series 2009, A-B, Variable Rate, Due 2026 | Pacific Gas & Electric Co | ||
Debt [Line Items] | ||
Interest rate at period end | 4.13% | |
Letter of Credit | Pollution Control Bonds, Series 1996 C,E,F 1997 B, Variable Rates, Due 2026 | Pacific Gas & Electric Co | Minimum | ||
Debt [Line Items] | ||
Interest rate at period end | 4.13% | |
Letter of Credit | Pollution Control Bonds, Series 1996 C,E,F 1997 B, Variable Rates, Due 2026 | Pacific Gas & Electric Co | Maximum | ||
Debt [Line Items] | ||
Interest rate at period end | 4.47% |
EQUITY (Changes in Equity) (Det
EQUITY (Changes in Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 520,338,710 | |
Beginning balance | $ 12,903 | $ 19,472 |
Net income (loss) | 136 | 445 |
Comprehensive income (loss) | 136 | 445 |
Common stock issued, net | 85 | 35 |
Stock-based compensation amortization | 5 | 34 |
Preferred stock dividend requirement of subsidiary | $ (3) | (3) |
Ending balance (in shares) | 529,210,278 | |
Ending balance | $ 13,129 | 19,983 |
Pacific Gas & Electric Co | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 264,374,809 | |
Comprehensive income (loss) | $ 133 | 452 |
Ending balance (in shares) | 264,374,809 | |
Total Shareholders’ Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 12,651 | 19,220 |
Net income (loss) | 136 | 445 |
Common stock issued, net | 85 | 35 |
Stock-based compensation amortization | 5 | 34 |
Preferred stock dividend requirement of subsidiary | (3) | |
Ending balance | 12,877 | 19,731 |
Total Shareholders’ Equity | Pacific Gas & Electric Co | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 12,955 | 19,747 |
Net income (loss) | 133 | 452 |
Preferred stock dividend | (3) | |
Ending balance | 13,088 | 20,196 |
Preferred Stock | Pacific Gas & Electric Co | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 258 | 258 |
Ending balance | $ 258 | $ 258 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 520,338,710 | 514,775,845 |
Beginning balance | $ 12,910 | $ 12,632 |
Common stock issued, net (in shares) | 8,871,568 | 1,248,112 |
Common stock issued, net | $ 85 | $ 35 |
Stock-based compensation amortization | $ 5 | $ 34 |
Ending balance (in shares) | 529,210,278 | 516,023,957 |
Ending balance | $ 13,000 | $ 12,701 |
Common Stock | Pacific Gas & Electric Co | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 1,322 | 1,322 |
Ending balance | 1,322 | 1,322 |
Additional Paid-in Capital | Pacific Gas & Electric Co | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 8,550 | 8,505 |
Ending balance | 8,550 | 8,505 |
Reinvested Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (250) | 6,596 |
Net income (loss) | 136 | 445 |
Preferred stock dividend requirement of subsidiary | (3) | |
Ending balance | (114) | 7,038 |
Reinvested Earnings | Pacific Gas & Electric Co | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 2,826 | 9,656 |
Net income (loss) | 133 | 452 |
Comprehensive income (loss) | 2 | |
Preferred stock dividend | (3) | |
Ending balance | 2,959 | 10,107 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (9) | (8) |
Ending balance | (9) | (8) |
Accumulated Other Comprehensive Income (Loss) | Pacific Gas & Electric Co | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1) | 6 |
Comprehensive income (loss) | (2) | |
Ending balance | (1) | 4 |
Non controlling Interest - Preferred Stock of Subsidiary | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 252 | 252 |
Ending balance | $ 252 | $ 252 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - 401K Plan and Shared Based Compensation Plans shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Schedule Of Changes In Equity [Line Items] | |
Stock issued during period (in shares) | shares | 8.9 |
Proceeds from stock issuance | $ | $ 85 |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of PG&E Corporation's Income Available for Common Shareholders and Weighted Average Common Shares Outstanding for Calculating Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Income available for common shareholders | $ 136 | $ 445 |
Preferred stock dividend requirement of subsidiary | 3 | 3 |
Adjusted income available for common shareholders | $ 133 | $ 442 |
Weighted average common shares outstanding, basic (in shares) | 526 | 515 |
Add incremental shares from assumed conversions: | ||
Employee share-based compensation (in shares) | 1 | 1 |
Weighted average common shares outstanding, diluted (in shares) | 527 | 516 |
Total earnings per common share, diluted (in dollars per share) | $ 0.25 | $ 0.86 |
DERIVATIVES (Volumes of Outstan
DERIVATIVES (Volumes of Outstanding Derivative Contracts, in Megawatt Hours Unless Otherwise Specified) (Details) | Mar. 31, 2019MWhMMBTU | Dec. 31, 2018MWhMMBTU |
Forwards, Futures and Swaps | Natural gas | ||
Derivative [Line Items] | ||
Contract Volume | MMBTU | 138,016,980 | 177,750,349 |
Forwards, Futures and Swaps | Electric | ||
Derivative [Line Items] | ||
Contract Volume | MWh | 3,011,826 | 3,833,490 |
Options | Natural gas | ||
Derivative [Line Items] | ||
Contract Volume | MMBTU | 4,115,000 | 13,735,405 |
Congestion Revenue Rights | Electric | ||
Derivative [Line Items] | ||
Contract Volume | MWh | 335,556,726 | 340,783,089 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Short-term investments | $ 2,898 | $ 1,593 |
Price risk management instruments, netting | 37 | 88 |
Derivative Asset | 247 | 297 |
TOTAL ASSETS | 6,864 | 5,350 |
Liabilities: | ||
Price risk management instruments, netting | (4) | (10) |
TOTAL LIABILITIES | 82 | 109 |
Amount primarily related to deferred taxes on appreciation of investment value | 468 | 408 |
Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 18 | 29 |
Global equity securities | 1,882 | 1,793 |
Fixed-income securities | 1,482 | 1,300 |
TOTAL ASSETS | 3,400 | 3,138 |
Rabbi trusts | ||
Assets: | ||
Fixed-income securities | 96 | 93 |
Life insurance contracts | 69 | 67 |
TOTAL ASSETS | 165 | 160 |
Long-term disability trust | ||
Assets: | ||
Short-term investments | 8 | 7 |
TOTAL ASSETS | 154 | 162 |
Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, netting | 15 | 51 |
Derivative Asset | 225 | 259 |
Liabilities: | ||
Price risk management instruments, netting | (4) | (10) |
Derivative Liability | 80 | 107 |
Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, netting | 22 | 37 |
Derivative Asset | 22 | 38 |
Liabilities: | ||
Price risk management instruments, netting | 0 | 0 |
Derivative Liability | 2 | 2 |
Level 1 | ||
Assets: | ||
Short-term investments | 2,898 | 1,593 |
Price risk management instruments, gross subject to netting | 0 | 0 |
TOTAL ASSETS | 5,596 | 4,083 |
Liabilities: | ||
TOTAL LIABILITIES | 1 | 4 |
Level 1 | Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 18 | 29 |
Global equity securities | 1,882 | 1,793 |
Fixed-income securities | 790 | 661 |
TOTAL ASSETS | 2,690 | 2,483 |
Level 1 | Rabbi trusts | ||
Assets: | ||
Fixed-income securities | 0 | 0 |
Life insurance contracts | 0 | 0 |
TOTAL ASSETS | 0 | 0 |
Level 1 | Long-term disability trust | ||
Assets: | ||
Short-term investments | 8 | 7 |
TOTAL ASSETS | 8 | 7 |
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 | 1 | 4 |
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 | 0 |
Price risk management instruments, gross subject to netting | 1 | 6 |
TOTAL ASSETS | 858 | 805 |
Liabilities: | ||
TOTAL LIABILITIES | 5 | 7 |
Level 2 | Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 0 | 0 |
Global equity securities | 0 | 0 |
Fixed-income securities | 692 | 639 |
TOTAL ASSETS | 692 | 639 |
Level 2 | Rabbi trusts | ||
Assets: | ||
Fixed-income securities | 96 | 93 |
Life insurance contracts | 69 | 67 |
TOTAL ASSETS | 165 | 160 |
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 | 1 | 5 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 3 | 5 |
Level 2 | Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 0 | 1 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 2 | 2 |
Level 3 | ||
Assets: | ||
Short-term investments | 0 | 0 |
Price risk management instruments, gross subject to netting | 209 | 203 |
TOTAL ASSETS | 209 | 203 |
Liabilities: | ||
TOTAL LIABILITIES | 80 | 108 |
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 | Rabbi trusts | ||
Assets: | ||
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 | 209 | 203 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 80 | 108 |
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 | Nuclear decommissioning trusts | ||
Assets: | ||
Assets measured at NAV | 18 | 16 |
Fair Value Measured at Net Asset Value | Long-term disability trust | ||
Assets: | ||
Assets measured at NAV | $ 146 | $ 155 |
DERIVATIVES (Outstanding Deriva
DERIVATIVES (Outstanding Derivative Balances) (Details) - Commodity Risk - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Assets | $ 124 | $ 90 |
Derivative Asset, Netting | 0 | 0 |
Cash Collateral | 41 | 98 |
Total Derivative Balance, Assets | 165 | 188 |
Current assets – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Assets | 45 | 44 |
Derivative Asset, Netting | (2) | (1) |
Cash Collateral | 38 | 89 |
Total Derivative Balance, Assets | 81 | 132 |
Other noncurrent assets – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Assets | 165 | 165 |
Derivative Asset, Netting | 1 | 0 |
Cash Collateral | 0 | 0 |
Total Derivative Balance, Assets | 166 | 165 |
Current liabilities – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Liabilities | (37) | (29) |
Derivative Liability, Netting | 17 | 1 |
Cash Collateral | 3 | 7 |
Total Derivative Balance, Liabilities | (17) | (21) |
Noncurrent liabilities – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Liabilities | (49) | (90) |
Derivative Liability, Netting | (16) | 0 |
Cash Collateral | 0 | 2 |
Total Derivative Balance, Liabilities | $ (65) | $ (88) |
FAIR VALUE MEASUREMENTS (Level
FAIR VALUE MEASUREMENTS (Level 3 Measurements and Sensitivity Analysis) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)$ / MWh | Dec. 31, 2018USD ($)$ / MWh | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value | $ 6,864 | $ 5,350 |
Liabilities, Fair Value | $ 82 | $ 109 |
Congestion revenue rights | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | $ / MWh | (36.87) | (18.61) |
Congestion revenue rights | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | $ / MWh | 23.04 | 32.26 |
Power purchase agreements | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | $ / MWh | 19.81 | 19.81 |
Power purchase agreements | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | $ / MWh | 38.80 | 38.80 |
Market approach | Congestion revenue rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value | $ 203 | $ 203 |
Liabilities, Fair Value | 60 | 75 |
Discounted cash flow | Power purchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value | 6 | 0 |
Liabilities, Fair Value | $ 20 | $ 33 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Pacific Gas & Electric Co | |
Derivative [Line Items] | |
Collateral posted for net liability derivative positions | $ 7 |
FAIR VALUE MEASUREMENTS (Leve_2
FAIR VALUE MEASUREMENTS (Level 3 Reconciliation) (Details) - Level 3 - Price Risk Management Instruments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning asset (liability) balance | $ 95 | $ 42 |
Net realized and unrealized gains: Included in regulatory assets and liabilities or balancing accounts | 34 | (2) |
Ending asset (liability) balance | $ 129 | $ 40 |
FAIR VALUE MEASUREMENTS (Carryi
FAIR VALUE MEASUREMENTS (Carrying Amount and Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Feb. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Proceeds from debtor-in-possession credit facility | $ 350 | $ 350 | $ 0 | |
Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt financial instrument | 0 | $ 350 | ||
Pacific Gas & Electric Co | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt financial instrument | 3,215 | 3,215 | ||
Proceeds from debtor-in-possession credit facility | 350 | $ 0 | ||
Pacific Gas & Electric Co | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt financial instrument | 350 | 14,747 | ||
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt financial instrument | 0 | 350 | ||
Carrying Amount | Pacific Gas & Electric Co | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt financial instrument | $ 350 | $ 17,450 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Unrealized Gains (Losses) Related to Available-for-Sale Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,931 | $ 1,885 |
Total Unrealized Gains | 1,480 | 1,276 |
Total Unrealized Losses | (11) | (23) |
Total Fair Value | 3,400 | 3,138 |
Amount primarily related to deferred taxes on appreciation of investment value | 468 | 408 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18 | 29 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
Total Fair Value | 18 | 29 |
Global equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 481 | 568 |
Total Unrealized Gains | 1,422 | 1,246 |
Total Unrealized Losses | (3) | (5) |
Total Fair Value | 1,900 | 1,809 |
Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,432 | 1,288 |
Total Unrealized Gains | 58 | 30 |
Total Unrealized Losses | (8) | (18) |
Total Fair Value | $ 1,482 | $ 1,300 |
FAIR VALUE MEASUREMENTS (Sche_2
FAIR VALUE MEASUREMENTS (Schedule of Maturities on Debt Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Total maturities of fixed-income securities | $ 3,400 | $ 3,138 |
Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 1 year | 31 | |
1–5 years | 534 | |
5–10 years | 337 | |
More than 10 years | 580 | |
Total maturities of fixed-income securities | $ 1,482 | $ 1,300 |
FAIR VALUE MEASUREMENTS (Sche_3
FAIR VALUE MEASUREMENTS (Schedule of Activity for Debt and Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Proceeds from sales and maturities of nuclear decommissioning trust investments | $ 346 | $ 494 |
Gross realized gains on securities | (34) | 37 |
Gross realized losses on securities | $ 19 | $ (4) |
WILDFIRE-RELATED CONTINGENCIE_2
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Claims Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Reimbursements | $ (25,000,000) | $ (197,000,000) |
Loss from Wildfires | ||
Loss Contingencies [Line Items] | ||
Reimbursements | 0 | (7,000,000) |
2018 Camp fire | ||
Loss Contingencies [Line Items] | ||
Reimbursements | 0 | |
2017 Northern California wildfires | ||
Loss Contingencies [Line Items] | ||
Reimbursements | 0 | |
Pacific Gas & Electric Co | ||
Loss Contingencies [Line Items] | ||
Reimbursements | (25,000,000) | $ (197,000,000) |
Pacific Gas & Electric Co | 2018 Camp fire | ||
Loss Contingencies [Line Items] | ||
Legal and other costs | 13,000,000 | |
Pacific Gas & Electric Co | 2017 Northern California wildfires | ||
Loss Contingencies [Line Items] | ||
Legal and other costs | $ 34,000,000 |
WILDFIRE-RELATED CONTINGENCIE_3
WILDFIRE-RELATED CONTINGENCIES (Summary of Estimated Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Total wildfire-related claims | $ 0 | $ 14,226 |
Pacific Gas & Electric Co | ||
Loss Contingencies [Line Items] | ||
Total wildfire-related claims | 14,212 | 14,226 |
Pacific Gas & Electric Co | 2015 Butte fire | ||
Loss Contingencies [Line Items] | ||
Total wildfire-related claims | 212 | 226 |
Pacific Gas & Electric Co | 2017 Northern California wildfires | ||
Loss Contingencies [Line Items] | ||
Total wildfire-related claims | 3,500 | 3,500 |
Pacific Gas & Electric Co | 2018 Camp fire | ||
Loss Contingencies [Line Items] | ||
Total wildfire-related claims | $ 10,500 | $ 10,500 |
WILDFIRE-RELATED CONTINGENCIE_4
WILDFIRE-RELATED CONTINGENCIES (2018 Camp Fire Background) (Details) - Pacific Gas & Electric Co - 2018 Camp fire | Dec. 11, 2018 | Nov. 16, 2018report | Nov. 16, 2018report | Nov. 08, 2018report | Feb. 07, 2019fatality | Jan. 04, 2019aresidencefatalitystructure |
Loss Contingencies [Line Items] | ||||||
Number of acres burned (acre) | a | 153,336 | |||||
Number of fatalities (fatality) | 85 | 86 | ||||
Number of residences destroyed (residence) | residence | 13,972 | |||||
Number of commercial structures destroyed (structure) | structure | 528 | |||||
Number of other buildings destroyed (building) | 4,293 | |||||
Number of Electric Incident Reports (report) | report | 1 | 2 | 1 | |||
Electric Incident Report, term | 20 days |
WILDFIRE-RELATED CONTINGENCIE_5
WILDFIRE-RELATED CONTINGENCIES (2017 Northern California Wildfires Background) (Details) - Pacific Gas & Electric Co - 2017 Northern California wildfires a in Thousands, $ in Thousands | Mar. 31, 2019USD ($)wildfireincident_report | Jan. 04, 2019wildfire | Jun. 30, 2018wildfire | Oct. 30, 2017awildfirefatalitystructure |
Loss Contingencies [Line Items] | ||||
Number of wildfires (wildfire) | 18 | 21 | ||
Number of acres burned (acre) | a | 245 | |||
Number of structures destroyed (structure) | structure | 8,900 | |||
Number of fatalities (fatality) | fatality | 44 | |||
Number of fires in which determination has been reported on (wildfire) | 19 | 16 | ||
Number of electric incident reports submitted (incident report) | incident_report | 23 | |||
Property damage coverage per incident | $ | $ 50 |
WILDFIRE-RELATED CONTINGENCIE_6
WILDFIRE-RELATED CONTINGENCIES (Third-Party Claims, Investigations and Other Proceedings Related to the 2018 Camp Fire and 2017 Northern California Wildfires) (Details) - Pending Litigation | Jan. 28, 2019wildfirecomplaintplaintiff |
Complaints Against PG&E Corporation and the Utility in Sacramento County Superior Court | 2018 Camp fire | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against company (lawsuit, complaint) | 100 |
Number of plaintiffs in lawsuit (at least) (plaintiff) | plaintiff | 4,200 |
Complaints Against PG&E Corporation and the Utility in Sacramento County Superior Court, Classified as Class Action | 2018 Camp fire | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against company (lawsuit, complaint) | wildfire | 9 |
Complaints Against PG&E Corporation and the Utility in San Francisco Counties Superior Courts | 2017 Northern California wildfires | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against company (lawsuit, complaint) | 750 |
Number of plaintiffs in lawsuit (at least) (plaintiff) | plaintiff | 3,800 |
Lawsuits Against PG&E Corporation and the Utility in the Sonoma, Napa and San Francisco Counties Superior Courts, Classified As Class Actions | 2017 Northern California wildfires | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against company (lawsuit, complaint) | wildfire | 5 |
Subrogation Complaints Against PG&E Corporation and the Utility in San Francisco County Superior Courts | 2017 Northern California wildfires | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against company (lawsuit, complaint) | 52 |
Subrogation Complaints Against PG&E Corporation and the Utility in Sacramento County Superior Court | 2017 Northern California wildfires | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against company (lawsuit, complaint) | 39 |
WILDFIRE-RELATED CONTINGENCIE_7
WILDFIRE-RELATED CONTINGENCIES (Potential Losses in Connection with the 2018 Camp Fire and 2017 Northern California Wildfires) (Details) insurance_claim in Thousands, $ in Millions | Jan. 28, 2019USD ($) | Sep. 06, 2018USD ($)insurance_claim | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2019USD ($) |
November 2018 Fires | |||||
Loss Contingencies [Line Items] | |||||
Total insurance claims received by insurers (more than) | $ 11,400 | ||||
2018 Camp fire | |||||
Loss Contingencies [Line Items] | |||||
Total insurance claims received by insurers (more than) | 8,400 | ||||
Loss in period | $ 10,500 | ||||
2017 Northern California wildfires | |||||
Loss Contingencies [Line Items] | |||||
Total insurance claims received by insurers (more than) | $ 12,280 | ||||
Insurance claims received by insurers (insurance claim) | insurance_claim | 55 | ||||
Statewide insurance claims related to wildfire | $ 10,000 | ||||
2018 Camp Fire and 2017 Northern California Wildfires | |||||
Loss Contingencies [Line Items] | |||||
Total insurance claims received by insurers (more than) | $ 18,400 | ||||
Estimate of possible losses | $ 30,000 | ||||
Pacific Gas & Electric Co | San Bruno Natural Gas Explosion | |||||
Loss Contingencies [Line Items] | |||||
Loss in period | $ 1,600 | ||||
Loss contingency liability | $ 558 |
WILDFIRE-RELATED CONTINGENCIE_8
WILDFIRE-RELATED CONTINGENCIES (2018 Camp Fire and 2017 Northern California Wildfires Accounting Charge) (Details) $ in Billions | Dec. 11, 2018 | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019wildfire |
2018 Camp fire | |||||
Loss Contingencies [Line Items] | |||||
Accrued losses | $ 10.5 | ||||
2017 Northern California wildfires | |||||
Loss Contingencies [Line Items] | |||||
Number of fires with probable losses (wildfire) | wildfire | 17 | ||||
Loss from claims related to wildfire | $ 1 | $ 2.5 | $ 3.5 | ||
Pacific Gas & Electric Co | 2018 Camp fire | |||||
Loss Contingencies [Line Items] | |||||
Electric Incident Report, term | 20 days |
WILDFIRE-RELATED CONTINGENCIE_9
WILDFIRE-RELATED CONTINGENCIES (Loss Recoveries) (Details) | Apr. 05, 2019USD ($)concept | Mar. 31, 2019USD ($) | Feb. 11, 2019USD ($) | Sep. 30, 2018USD ($) | Jul. 31, 2018USD ($) |
2018 Camp Fire and 2017 Northern California Wildfires | |||||
Loss Contingencies [Line Items] | |||||
Liability insurance coverage | $ 1,400,000,000 | $ 842,000,000 | |||
Initial self-insured retention per occurrence | 10,000,000 | 10,000,000 | |||
Further retention per occurrence | $ 40,000,000 | ||||
Liability insurance coverage, general liability | 700,000,000 | ||||
Liability insurance coverage, property damages | 700,000,000 | ||||
Liability insurance coverage, property damages, reinsurance | $ 200,000,000 | ||||
Estimated additional borrowings as part of reorganization | $ 3,000,000,000 | ||||
2018 Camp fire | |||||
Loss Contingencies [Line Items] | |||||
Estimated insurance recoveries | $ 1,380,000,000 | ||||
2017 Northern California wildfires | |||||
Loss Contingencies [Line Items] | |||||
Estimated insurance recoveries | $ 842,000,000 | ||||
Subsequent Event | 2018 Camp Fire and 2017 Northern California Wildfires | |||||
Loss Contingencies [Line Items] | |||||
Customer Harm Threshold, potential regulatory adjustment, percentage | 20.00% | ||||
Customer Harm Threshold, potential regulatory adjustment, percentage of total disallowed wildlife liability | 5.00% | ||||
Customer Harm Threshold, number of proposed optional concepts for ratepayer protection | concept | 2 | ||||
Customer Harm Threshold, maximum de-escalation of authorized return on equity | 3.00% | ||||
Customer Harm Threshold, customer equity warrants, percentage of securitized wildlife liability | 1.00% | ||||
Customer Harm Threshold, increment of securitized wildlife liability | $ 500,000,000 | ||||
Subsequent Event | Maximum | 2018 Camp Fire and 2017 Northern California Wildfires | |||||
Loss Contingencies [Line Items] | |||||
Customer Harm Threshold, customer equity warrants, percentage of securitized wildlife liability | 15.00% |
WILDFIRE-RELATED CONTINGENCI_10
WILDFIRE-RELATED CONTINGENCIES (Summary of Insurance Receivables) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Insurance Receivable [Roll Forward] | ||
Wildfire-related insurance receivable | $ 25 | $ 197 |
2018 Camp fire | ||
Insurance Receivable [Roll Forward] | ||
Insurance Receivable, Beginning Balance | 1,380 | |
Accrued insurance recoveries | 0 | |
Wildfire-related insurance receivable | 0 | |
Insurance Receivable, Ending Balance | 1,380 | |
2017 Northern California wildfires | ||
Insurance Receivable [Roll Forward] | ||
Insurance Receivable, Beginning Balance | 829 | |
Accrued insurance recoveries | 0 | |
Wildfire-related insurance receivable | 0 | |
Insurance Receivable, Ending Balance | $ 829 |
WILDFIRE-RELATED CONTINGENCI_11
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Derivative Litigation) (Details) | Nov. 20, 2017lawsuit |
Derivative Lawsuits Filed in the San Francisco County Superior Court | Breach of Fiduciary Duties | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against company (lawsuit, complaint) | 2 |
WILDFIRE-RELATED CONTINGENCI_12
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Securities Class Action Litigation) (Details) - Securities Class Actions Filed in United States District Court for the Northern District of California | Feb. 22, 2019offering | Jun. 30, 2018lawsuit |
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) | offering | 4 |
WILDFIRE-RELATED CONTINGENCI_13
WILDFIRE-RELATED CONTINGENCIES (District Attorneys’ Offices’ Investigations) (Details) - Pacific Gas & Electric Co - Complaints Brought By Butte County District Attorney - Loss from Wildfires $ in Millions | 1 Months Ended |
Oct. 31, 2018USD ($)wildfire | |
Loss Contingencies [Line Items] | |
Number of wildfires (wildfire) | wildfire | 2 |
Settlement agreement term | 4 years |
Settlement expense | $ | $ 1.5 |
WILDFIRE-RELATED CONTINGENCI_14
WILDFIRE-RELATED CONTINGENCIES (Clean-up and Repair Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Capital expenditures | $ 242 | $ 255 | |
Total long-term regulatory assets | 5,151 | $ 4,964 | |
Catastrophic event memorandum account | |||
Loss Contingencies [Line Items] | |||
Total long-term regulatory assets | 865 | 790 | |
Pacific Gas & Electric Co | |||
Loss Contingencies [Line Items] | |||
Capital expenditures | 242 | $ 255 | |
Total long-term regulatory assets | 5,151 | $ 4,964 | |
Pacific Gas & Electric Co | 2018 Camp fire | |||
Loss Contingencies [Line Items] | |||
Service restoration and repair costs | 559 | ||
Capital expenditures | 204 | ||
Pacific Gas & Electric Co | 2017 Northern California wildfires | |||
Loss Contingencies [Line Items] | |||
Service restoration and repair costs | 330 | ||
Capital expenditures | 157 | ||
Pacific Gas & Electric Co | Catastrophic event memorandum account | 2017 Northern California wildfires | |||
Loss Contingencies [Line Items] | |||
Total long-term regulatory assets | $ 132 |
WILDFIRE-RELATED CONTINGENCI_15
WILDFIRE-RELATED CONTINGENCIES (Proposed Wildfire Assistance Fund) (Details) - USD ($) $ in Millions | May 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||
Wildfire-related claims | $ 0 | $ 14,226 | |
Subsequent Event | 2018 Camp Fire and 2017 Northern California Wildfires | |||
Loss Contingencies [Line Items] | |||
Wildfire Assistance Fund, amount sought | $ 105 | ||
Wildfire Assistance Fund, amount sought, portion available for administrative expenses | $ 5 | ||
Pacific Gas & Electric Co | |||
Loss Contingencies [Line Items] | |||
Wildfire-related claims | 14,212 | $ 14,226 | |
Pacific Gas & Electric Co | 2018 Camp Fire and 2017 Northern California Wildfires | |||
Loss Contingencies [Line Items] | |||
Wildfire-related claims | $ 14,000 |
WILDFIRE-RELATED CONTINGENCI_16
WILDFIRE-RELATED CONTINGENCIES (2015 Butte Fire) (Details) - Pacific Gas & Electric Co - 2015 Butte fire household in Thousands, $ in Millions | Jan. 28, 2019contractorhouseholdplaintiff | Nov. 13, 2018USD ($) | Sep. 06, 2018plaintiff | Mar. 02, 2018USD ($) | Mar. 01, 2018USD ($) | Apr. 13, 2017USD ($) | May 31, 2017USD ($) | Sep. 30, 2018plaintiff | Mar. 31, 2019USD ($) | May 01, 2018decision | May 23, 2016contractor | Apr. 28, 2016aoutbuildingfatalityhomecomercial_propertystructure |
Loss Contingencies [Line Items] | ||||||||||||
Number of acres burned (acre) | a | 70,868 | |||||||||||
Number of fatalities caused by fire (fatality) | fatality | 2 | |||||||||||
Number of homes destroyed by fire (home) | home | 549 | |||||||||||
Number of outbuildings damaged by fire (outbuilding) | outbuilding | 368 | |||||||||||
Number of commercial properties damaged by fire (commercial property) | comercial_property | 4 | |||||||||||
Number of structures damaged (structure) | structure | 44 | |||||||||||
Number of vegetation management contractors (contractor) | contractor | 2 | |||||||||||
Number of complaints filed (complaint) | contractor | 95 | |||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 3,900 | |||||||||||
Number of households represented in court (household) | household | 2 | |||||||||||
Number of vegetation management contractors dismissed from complaints (contractor) | contractor | 2 | |||||||||||
Number of plaintiffs, smaller public entities (plaintiff) | plaintiff | 5 | |||||||||||
Number of plaintiffs, fire districts (plaintiff) | plaintiff | 3 | |||||||||||
Number of plaintiffs, water district (plaintiff) | plaintiff | 1 | |||||||||||
Fire fighting costs recovery requested | $ 87 | |||||||||||
Value of claims brought against the company | $ 190 | |||||||||||
Reasonably possible loss to be incurred | $ 1,100 | |||||||||||
Coverage for third party liability | 922 | |||||||||||
Probable insurance recoveries | 922 | |||||||||||
Cumulative reimbursements from insurance policies | $ 60 | |||||||||||
Agreement Reached in Litigation to Stipulate to Judgment on Inverse Condemnation Grounds | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of previous appellate courts decisions (decision) | decision | 2 | |||||||||||
Number of plaintiffs in lawsuit (plaintiff) | plaintiff | 2 | |||||||||||
County of Calaveras | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Value of claims brought against company | $ 167 | $ 85 | ||||||||||
Settlement reached | $ 25.4 | |||||||||||
Settled Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of plaintiffs, fire districts (plaintiff) | plaintiff | 3 |
WILDFIRE-RELATED CONTINGENCI_17
WILDFIRE-RELATED CONTINGENCIES (Schedule of Loss Accrual) (Details) - 2015 Butte fire - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingency Accrual [Roll Forward] | ||||
Loss accrual, beginning balance | $ 226 | $ 561 | $ 690 | $ 0 |
Accrued losses | 0 | 0 | 350 | 750 |
Payments | (14) | (335) | (479) | (60) |
Loss accrual, ending balance | 212 | $ 226 | $ 561 | $ 690 |
Pacific Gas & Electric Co | ||||
Loss Contingency Accrual [Roll Forward] | ||||
Settlement agreement paid | 888 | |||
Settlement agreements entered | $ 904 |
WILDFIRE-RELATED CONTINGENCI_18
WILDFIRE-RELATED CONTINGENCIES (Schedule of Insurance Receivable) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance Receivable [Roll Forward] | |||||
Wildfire-related insurance receivable | $ 25 | $ 197 | |||
2015 Butte fire | |||||
Insurance Receivable [Roll Forward] | |||||
Insurance Receivable, Beginning Balance | 85 | $ 596 | $ 596 | $ 575 | $ 0 |
Accrued insurance recoveries | 0 | 0 | 297 | 625 | |
Wildfire-related insurance receivable | 25 | 511 | 276 | 50 | |
Insurance Receivable, Ending Balance | $ 60 | $ 85 | $ 596 | $ 575 |
OTHER CONTINGENCIES AND COMMI_3
OTHER CONTINGENCIES AND COMMITMENTS (Enforcement and Litigation Matters) (Details) - Pacific Gas & Electric Co $ in Millions | Jan. 26, 2017USD ($) | Jan. 04, 2019wildfire | Oct. 30, 2017wildfire | Aug. 09, 2016count |
2017 Northern California wildfires | ||||
Loss Contingencies [Line Items] | ||||
Number of wildfires (wildfire) | wildfire | 18 | 21 | ||
Judicial Ruling | Unfavorable Regulatory Action | ||||
Loss Contingencies [Line Items] | ||||
Number of guilty counts of obstructing a federal agency proceeding | 1 | |||
Number of guilty counts of violating pipeline integrity management regulations | 5 | |||
Corporate probation period, term | 5 years | |||
Oversight by third-party monitor period, application for early termination, term | 3 years | |||
Damages awarded, value | $ | $ 3 |
OTHER CONTINGENCIES AND COMMI_4
OTHER CONTINGENCIES AND COMMITMENTS (CPUC and FERC Matters) (Details) $ in Thousands | Mar. 31, 2019USD ($) | Sep. 21, 2018 | May 17, 2018USD ($) | Apr. 26, 2018USD ($) | Dec. 06, 2018consultant |
Ex Parte Communications | |||||
Loss Contingencies [Line Items] | |||||
Proposed penalty | $ 97,500 | ||||
Payment to State General Fund | $ 12,000 | 12,000 | |||
Gas transmission and storage revenue reduction | 63,500 | ||||
2018 GTandS revenue requirement reduction | 31,750 | ||||
2019 GTandS revenue requirement reduction | 31,750 | ||||
Revenue requirement reduction in Next GRC cycle | 10,000 | ||||
Payment to city of San Bruno | 6,000 | 6,000 | |||
Payment to city of San Carlos | $ 6,000 | $ 6,000 | |||
Disallowance of Plant Costs | |||||
Loss Contingencies [Line Items] | |||||
Accrual for GTandS revenue requirement reduction | $ 8,000 | ||||
Pacific Gas & Electric Co | Pending Litigation | Unfavorable Regulatory Action | |||||
Loss Contingencies [Line Items] | |||||
Number of consultants retained | consultant | 2 | ||||
Electric | Pacific Gas & Electric Co | |||||
Loss Contingencies [Line Items] | |||||
Requested revenue rate | 98.85% |
OTHER CONTINGENCIES AND COMMI_5
OTHER CONTINGENCIES AND COMMITMENTS (Other Matters) (Details) - USD ($) $ in Millions | Jun. 23, 2016 | Dec. 31, 2018 |
Pacific Gas & Electric Co | ||
Loss Contingencies [Line Items] | ||
Accrued legal liabilities | $ 98 | |
Disallowance of Plant Costs | ||
Loss Contingencies [Line Items] | ||
Gas transmission and storage capital disallowance | $ 696 | |
Permanently disallowed capital | 120 | |
Amount subject to audit | $ 576 |
OTHER CONTINGENCIES AND COMMI_6
OTHER CONTINGENCIES AND COMMITMENTS (Schedule of Environmental Remediation Liability Composed) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Disclosure Commitments And Contingencies Environmental Remediation Liability Composed [Abstract] | ||
Topock natural gas compressor station | $ 358 | $ 369 |
Hinkley natural gas compressor station | 145 | 146 |
Former manufactured gas plant sites owned by the Utility or third parties | 525 | 520 |
Utility-owned generation facilities (other than fossil fuel-fired), other facilities, and third-party disposal sites | 107 | 111 |
Fossil fuel-fired generation facilities and sites | 131 | 137 |
Total environmental remediation liability | $ 1,266 | $ 1,283 |
OTHER CONTINGENCIES AND COMMI_7
OTHER CONTINGENCIES AND COMMITMENTS (Environmental Remediation Contingencies Narrative) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | |
Amount of environmental loss accrual expected to be recovered | $ 920 |
Topock Site | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 303 |
Topock Site | Pacific Gas & Electric Co | |
Long-term Purchase Commitment [Line Items] | |
Remediation cost recovery percentage | 90.00% |
Hinkley Natural Gas Compressor Station | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 142 |
Former Manufactured Gas Plant | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 514 |
Remediation cost recovery percentage | 90.00% |
Utility Owned Generation Facilities and Third Party Disposal Sites | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 132 |
Utility Owned Generation Facilities and Third Party Disposal Sites | Pacific Gas & Electric Co | |
Long-term Purchase Commitment [Line Items] | |
Remediation cost recovery percentage | 90.00% |
Fossil Fuel Fired Generation | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 91 |
OTHER CONTINGENCIES AND COMMI_8
OTHER CONTINGENCIES AND COMMITMENTS (Wildfire Insurance) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Costs for insurance coverage | $ 360 | |
Pacific Gas & Electric Co | ||
Loss Contingencies [Line Items] | ||
Costs for insurance coverage | 50 | |
Insurance Coverage for Wildfire Events | ||
Loss Contingencies [Line Items] | ||
Liability insurance coverage | $ 1,400 | |
Insurance Coverage for Wildfire Liabilities | ||
Loss Contingencies [Line Items] | ||
Liability insurance coverage | 700 | |
Catastrophic bond reinsurance instrument | 10 | |
Insurance Coverage for Property Damages | ||
Loss Contingencies [Line Items] | ||
Liability insurance coverage | 700 | |
Catastrophic bond reinsurance instrument | $ 200 | |
2018 Camp fire | ||
Loss Contingencies [Line Items] | ||
Estimated insurance recoveries | 1,380 | |
2017 Northern California wildfires | ||
Loss Contingencies [Line Items] | ||
Estimated insurance recoveries | $ 842 |
OTHER CONTINGENCIES AND COMMI_9
OTHER CONTINGENCIES AND COMMITMENTS (Nuclear Insurance) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)nuclear_generating_unit | |
Long-term Purchase Commitment [Line Items] | |
Number of nuclear generating units (nuclear generating unit) | nuclear_generating_unit | 2 |
Nuclear Electric Insurance Limited | |
Long-term Purchase Commitment [Line Items] | |
Amount of property damage and business interruption coverage provided by NEIL for Diablo Canyon | $ 44 |
European Mutual Association for Nuclear Insurance | |
Long-term Purchase Commitment [Line Items] | |
Amount of property damage coverage provided by NEIL | $ 4 |
OTHER CONTINGENCIES AND COMM_10
OTHER CONTINGENCIES AND COMMITMENTS (Tax Matters) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Pacific Gas & Electric Co | |
Disaggregation of Revenue [Line Items] | |
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities | $ 10 |
OTHER CONTINGENCIES AND COMM_11
OTHER CONTINGENCIES AND COMMITMENTS (Purchase Commitments) (Details) $ in Billions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Recorded unconditional purchase obligation | $ 40 |