Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 21, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-12609 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-3234914 | |
Entity Address, Address Line One | 77 Beale Street | |
Entity Address, Address Line Two | P.O. Box 770000 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94177 | |
City Area Code | 415 | |
Local Phone Number | 973-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 2,465,220,279 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | PG&E CORP | |
Entity Central Index Key | 0001004980 | |
Current Fiscal Year End Date | --12-31 | |
Pacific Gas & Electric Co (Utility) | ||
Entity File Number | 1-2348 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-0742640 | |
Entity Address, Address Line One | 77 Beale Street | |
Entity Address, Address Line Two | P.O. Box 770000 | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94177 | |
City Area Code | 415 | |
Local Phone Number | 973-7000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 264,374,809 | |
Amendment Flag | false | |
Entity Registrant Name | PACIFIC GAS & ELECTRIC CO | |
Entity Central Index Key | 0000075488 | |
The New York Stock Exchange | Common stock, no par value | ||
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | PCG | |
Security Exchange Name | NYSE | |
The New York Stock Exchange | Equity Units | ||
Title of 12(b) Security | Equity Units | |
Trading Symbol | PCGU | |
Security Exchange Name | NYSE | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5% series A redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5% series A redeemable | |
Trading Symbol | PCG-PE | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5% redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5% redeemable | |
Trading Symbol | PCG-PD | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 4.80% redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 4.80% redeemable | |
Trading Symbol | PCG-PG | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 4.50% redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 4.50% redeemable | |
Trading Symbol | PCG-PH | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 4.36% series A redeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 4.36% series A redeemable | |
Trading Symbol | PCG-PI | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 6% nonredeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 6% nonredeemable | |
Trading Symbol | PCG-PA | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5.50% nonredeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5.50% nonredeemable | |
Trading Symbol | PCG-PB | |
Security Exchange Name | NYSEAMER | |
NYSE American LLC | First preferred stock, cumulative, par value $25 per share, 5% nonredeemable | ||
Title of 12(b) Security | First preferred stock, cumulative, par value $25 per share, 5% nonredeemable | |
Trading Symbol | PCG-PC | |
Security Exchange Name | NYSEAMER |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenues | ||
Total operating revenues | $ 5,798 | $ 4,716 |
Operating Expenses | ||
Operating and maintenance | 3,110 | 2,336 |
Wildfire-related claims, net of recoveries | (1) | 172 |
Wildfire Fund expense | 118 | 119 |
Depreciation, amortization, and decommissioning | 972 | 888 |
Total operating expenses | 5,262 | 4,412 |
Operating Income | 536 | 304 |
Interest income | 8 | 2 |
Interest expense | (419) | (408) |
Other income, net | 149 | 127 |
Income Before Income Taxes | 274 | 25 |
Income tax benefit | (204) | (98) |
Net Income | 478 | 123 |
Preferred stock dividend requirement of subsidiary | 3 | 3 |
Income Available for Common Shareholders | $ 475 | $ 120 |
Weighted Average Common Shares Outstanding, Basic (in shares) | 1,986 | 1,985 |
Weighted Average Common Shares Outstanding, Diluted (in shares) | 2,134 | 2,131 |
Net Loss Per Common Share, Basic (in dollars per share) | $ 0.24 | $ 0.06 |
Net Loss Per Common Share, Diluted (in dollars per share) | $ 0.22 | $ 0.06 |
Electric | ||
Operating Revenues | ||
Total operating revenues | $ 4,158 | $ 3,395 |
Operating Expenses | ||
Cost of electricity and natural gas | 502 | 590 |
Natural gas | ||
Operating Revenues | ||
Total operating revenues | 1,640 | 1,321 |
Operating Expenses | ||
Cost of electricity and natural gas | $ 561 | $ 307 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 478 | $ 123 |
Other Comprehensive Income | ||
Pension and other postretirement benefit plans obligations (net of taxes of $0 and $0, respectively) | 0 | 1 |
Total other comprehensive income (loss) | 0 | 1 |
Comprehensive Income (Loss) | 478 | 124 |
Preferred stock dividend requirement of subsidiary | 3 | 3 |
Comprehensive Income Available for Common Shareholders | $ 475 | $ 121 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Pension and other postretirement benefit plans obligations, tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 247 | $ 291 |
Restricted cash | 29 | 16 |
Accounts receivable | ||
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 2,080 | 2,345 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 1,070 | 1,207 |
Regulatory balancing accounts | 3,165 | 2,999 |
Other | 1,695 | 1,784 |
Regulatory assets | 384 | 496 |
Inventories | ||
Gas stored underground and fuel oil | 29 | 44 |
Materials and supplies | 589 | 552 |
Wildfire Fund asset | 461 | 461 |
Other | 627 | 882 |
Total current assets | 10,376 | 11,077 |
Property, Plant, and Equipment | ||
Electric | 71,001 | 69,482 |
Gas | 26,474 | 25,979 |
Construction work in progress | 3,666 | 3,479 |
Financing lease and other | 20 | 20 |
Total property, plant, and equipment | 101,161 | 98,960 |
Accumulated depreciation | (29,656) | (29,134) |
Net property, plant, and equipment | 71,505 | 69,826 |
Other Noncurrent Assets | ||
Regulatory assets | 9,167 | 9,207 |
Nuclear decommissioning trusts | 3,635 | 3,798 |
Operating lease right of use asset | 1,139 | 1,234 |
Wildfire Fund asset | 5,198 | 5,313 |
Income taxes receivable | 9 | 9 |
Other (includes net noncurrent accounts receivable of $115 million and $187 million related to VIEs, net of noncurrent allowance for doubtful accounts of $11 million and $15 million at respective dates) | 2,902 | 2,863 |
Total other noncurrent assets | 22,050 | 22,424 |
TOTAL ASSETS | 103,931 | 103,327 |
Current Liabilities | ||
Short-term borrowings | 1,854 | 2,184 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 4,553 | 4,481 |
Accounts payable | ||
Trade creditors | 2,389 | 2,855 |
Regulatory balancing accounts | 1,676 | 1,121 |
Other | 814 | 679 |
Operating lease liabilities | 466 | 468 |
Interest payable | 331 | 481 |
Wildfire-related claims | 2,091 | 2,722 |
Other | 2,386 | 2,436 |
Total current liabilities | 16,560 | 17,427 |
Noncurrent Liabilities | ||
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | 39,123 | 38,225 |
Regulatory liabilities | 11,563 | 11,999 |
Pension and other postretirement benefits | 801 | 860 |
Asset retirement obligations | 5,919 | 5,298 |
Deferred income taxes | 3,162 | 3,177 |
Operating lease liabilities | 739 | 810 |
Other | 4,420 | 4,308 |
Total noncurrent liabilities | 65,727 | 64,677 |
Shareholders' Equity | ||
Common stock, no par value, authorized 3,600,000,000 and 3,600,000,000 shares at respective dates; 1,987,472,590 and 1,985,400,540 shares outstanding at respective dates | 34,726 | 35,129 |
Treasury stock, at cost; 437,743,590 and 477,743,590 shares at respective dates | (4,447) | (4,854) |
Reinvested earnings | (8,867) | (9,284) |
Accumulated other comprehensive loss | (20) | (20) |
Total shareholders' equity | 21,392 | 20,971 |
Noncontrolling Interest - Preferred Stock of Subsidiary | 252 | 252 |
Total equity | 21,644 | 21,223 |
TOTAL LIABILITIES AND EQUITY | $ 103,931 | $ 103,327 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts | $ 180 | $ 171 |
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 2,080 | 2,345 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 1,070 | 1,207 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 4,553 | 4,481 |
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | $ 39,123 | $ 38,225 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,600,000,000 | 3,600,000,000 |
Common stock, shares outstanding (in shares) | 1,987,472,590 | 1,985,400,540 |
Treasury stock, shares at cost (in shares) | 437,743,590 | 477,743,590 |
Variable Interest Entity, Primary Beneficiary | ||
Allowance for doubtful accounts | $ 180 | $ 171 |
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 1,840 | 2,060 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 976 | 1,090 |
Net noncurrent accounts receivable | 115 | 187 |
Noncurrent allowance for doubtful accounts | 11 | 15 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 32 | 18 |
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | $ 1,830 | $ 1,820 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | |
Cash Flows from Operating Activities | ||
Net Income | $ 478 | $ 123 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and decommissioning | 972 | 888 |
Bad debt expense | 43 | 76 |
Allowance for equity funds used during construction | (42) | (32) |
Deferred income taxes and tax credits, net | (16) | 78 |
Reorganization items, net (Note 2) | 0 | (46) |
Wildfire Fund expense | 118 | 119 |
Other | 148 | 41 |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | 543 | 111 |
Wildfire-related insurance receivable | 43 | (28) |
Inventories | (22) | 14 |
Accounts payable | 217 | 143 |
Wildfire-related claims | (631) | (558) |
Other current assets and liabilities | (113) | (175) |
Regulatory assets, liabilities, and balancing accounts, net | 63 | 340 |
Other noncurrent assets and liabilities | (140) | 104 |
Net cash provided by operating activities | 1,661 | 1,198 |
Cash Flows from Investing Activities | ||
Capital expenditures | (2,310) | (1,778) |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 421 | 551 |
Purchases of nuclear decommissioning trust investments | (447) | (578) |
Other | 6 | 9 |
Net cash used in investing activities | (2,330) | (1,796) |
Cash Flows from Financing Activities | ||
Borrowings under credit facilities | 1,406 | 1,985 |
Repayments under credit facilities | (3,151) | (4,440) |
Proceeds from issuance of long-term debt, net of premium, discount and issuance costs of $22 and $18 at respective dates | 2,379 | 2,382 |
Repayment of long-term debt | (7) | (7) |
Proceeds from sale of future revenue from transmission tower license sales, net of fees | 0 | 350 |
Other | 11 | (41) |
Net cash provided by financing activities | 638 | 229 |
Net change in cash, cash equivalents, and restricted cash | (31) | (369) |
Cash, cash equivalents, and restricted cash at January 1 | 307 | 627 |
Cash, cash equivalents, and restricted cash at March 31 | 276 | 258 |
Less: Restricted cash and restricted cash equivalents | (29) | (29) |
Cash and cash equivalents at March 31 | 247 | 229 |
Cash paid for: | ||
Interest, net of amounts capitalized | (519) | (550) |
Supplemental disclosures of noncash investing and financing activities | ||
Capital expenditures financed through accounts payable | 975 | 528 |
Operating lease liabilities arising from obtaining ROU assets | $ 0 | $ 4 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Financing Activities | ||
Premium, discount, and issuance costs on proceeds from long-term debt | $ 22 | $ 18 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total Shareholders' Equity | Common Stock | Treasury Stock | Reinvested Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest - Preferred Stock of Subsidiary |
Beginning balance (in shares) at Dec. 31, 2020 | 1,984,678,673 | ||||||
Beginning balance at Dec. 31, 2020 | $ 21,253 | $ 21,001 | $ 30,224 | $ (9,196) | $ (27) | $ 252 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 123 | 123 | 123 | ||||
Other comprehensive income | 1 | 1 | 1 | ||||
Common stock issued, net (in shares) | 427,030 | ||||||
Stock-based compensation amortization | 2 | 2 | $ 2 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 1,985,105,703 | ||||||
Ending balance at Mar. 31, 2021 | $ 21,379 | 21,127 | $ 30,226 | (9,073) | (26) | 252 | |
Beginning balance (in shares) at Dec. 31, 2021 | 1,985,400,540 | 1,985,400,540 | 477,743,590 | ||||
Beginning balance at Dec. 31, 2021 | $ 21,223 | 20,971 | $ 35,129 | $ (4,854) | (9,284) | (20) | 252 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 478 | 478 | 478 | ||||
Other comprehensive income | 0 | ||||||
Common stock issued, net (in shares) | 2,072,050 | ||||||
Common stock issued, net | (407) | (407) | $ (407) | ||||
Treasury stock disposition (in shares) | 40,000,000 | ||||||
Treasury stock disposition | 407 | 407 | $ 407 | ||||
Stock-based compensation amortization | 4 | 4 | $ 4 | ||||
Preferred stock dividend requirement of subsidiary in arrears | (59) | (59) | (59) | ||||
Preferred stock dividend requirement of subsidiary | $ (2) | (2) | (2) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 1,987,472,590 | 1,987,472,590 | 437,743,590 | ||||
Ending balance at Mar. 31, 2022 | $ 21,644 | $ 21,392 | $ 34,726 | $ (4,447) | $ (8,867) | $ (20) | $ 252 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF INCOME, UTILITY - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenues | ||
Total operating revenues | $ 5,798 | $ 4,716 |
Operating Expenses | ||
Operating and maintenance | 3,110 | 2,336 |
Wildfire-related claims, net of recoveries | (1) | 172 |
Wildfire Fund expense | 118 | 119 |
Depreciation, amortization, and decommissioning | 972 | 888 |
Total operating expenses | 5,262 | 4,412 |
Operating Income | 536 | 304 |
Interest income | 8 | 2 |
Interest expense | (419) | (408) |
Other income, net | 149 | 127 |
Income Before Income Taxes | 274 | 25 |
Income tax provision (benefit) | (204) | (98) |
Net Income | 478 | 123 |
Preferred stock dividend requirement | 2 | |
Income Available for Common Shareholders | 475 | 120 |
Pacific Gas & Electric Co (Utility) | ||
Operating Revenues | ||
Total operating revenues | 5,798 | 4,716 |
Operating Expenses | ||
Operating and maintenance | 3,107 | 2,331 |
Wildfire-related claims, net of recoveries | (1) | 172 |
Wildfire Fund expense | 118 | 119 |
Depreciation, amortization, and decommissioning | 972 | 888 |
Total operating expenses | 5,259 | 4,407 |
Operating Income | 539 | 309 |
Interest income | 9 | 2 |
Interest expense | (364) | (348) |
Other income, net | 156 | 133 |
Reorganization items, net | 0 | (2) |
Income Before Income Taxes | 340 | 94 |
Income tax provision (benefit) | (190) | (83) |
Net Income | 530 | 177 |
Preferred stock dividend requirement | 3 | 3 |
Income Available for Common Shareholders | 527 | 174 |
Electric | ||
Operating Revenues | ||
Total operating revenues | 4,158 | 3,395 |
Operating Expenses | ||
Cost of electricity and natural gas | 502 | 590 |
Electric | Pacific Gas & Electric Co (Utility) | ||
Operating Revenues | ||
Total operating revenues | 4,158 | 3,395 |
Operating Expenses | ||
Cost of electricity and natural gas | 502 | 590 |
Natural gas | ||
Operating Revenues | ||
Total operating revenues | 1,640 | 1,321 |
Operating Expenses | ||
Cost of electricity and natural gas | 561 | 307 |
Natural gas | Pacific Gas & Electric Co (Utility) | ||
Operating Revenues | ||
Total operating revenues | 1,640 | 1,321 |
Operating Expenses | ||
Cost of electricity and natural gas | $ 561 | $ 307 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME, UTILITY - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Income | $ 478 | $ 123 |
Other Comprehensive Income (Loss) | ||
Pension and other postretirement benefit plans obligations | 0 | 1 |
Total other comprehensive income (loss) | 0 | 1 |
Comprehensive Income (Loss) | 478 | 124 |
Pacific Gas & Electric Co (Utility) | ||
Net Income | 530 | 177 |
Other Comprehensive Income (Loss) | ||
Pension and other postretirement benefit plans obligations | 1 | 0 |
Total other comprehensive income (loss) | 1 | 0 |
Comprehensive Income (Loss) | $ 531 | $ 177 |
CONDENSED CONSOLIDATED STATEM_9
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension and other postretirement benefit plans obligations, tax | $ 0 | $ 0 |
Pacific Gas & Electric Co (Utility) | ||
Pension and other postretirement benefit plans obligations, tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_3
CONDENSED CONSOLIDATED BALANCE SHEETS, UTILITY - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 247 | $ 291 |
Restricted cash | 29 | 16 |
Accounts receivable | ||
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 2,080 | 2,345 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 1,070 | 1,207 |
Regulatory balancing accounts | 3,165 | 2,999 |
Other | 1,695 | 1,784 |
Regulatory assets | 384 | 496 |
Inventories | ||
Gas stored underground and fuel oil | 29 | 44 |
Materials and supplies | 589 | 552 |
Wildfire Fund asset | 461 | 461 |
Other | 627 | 882 |
Total current assets | 10,376 | 11,077 |
Property, Plant, and Equipment | ||
Electric | 71,001 | 69,482 |
Gas | 26,474 | 25,979 |
Construction work in progress | 3,666 | 3,479 |
Financing lease and other | 20 | 20 |
Total property, plant, and equipment | 101,161 | 98,960 |
Accumulated depreciation | (29,656) | (29,134) |
Net property, plant, and equipment | 71,505 | 69,826 |
Other Noncurrent Assets | ||
Regulatory assets | 9,167 | 9,207 |
Nuclear decommissioning trusts | 3,635 | 3,798 |
Operating lease right of use asset | 1,139 | 1,234 |
Wildfire Fund asset | 5,198 | 5,313 |
Income taxes receivable | 9 | 9 |
Other (includes net noncurrent accounts receivable of $115 million and $187 million related to VIEs, net of noncurrent allowance for doubtful accounts of $11 million and $15 million at respective dates) | 2,902 | 2,863 |
Total other noncurrent assets | 22,050 | 22,424 |
TOTAL ASSETS | 103,931 | 103,327 |
Current Liabilities | ||
Short-term borrowings | 1,854 | 2,184 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 4,553 | 4,481 |
Accounts payable | ||
Trade creditors | 2,389 | 2,855 |
Regulatory balancing accounts | 1,676 | 1,121 |
Other | 814 | 679 |
Operating lease liabilities | 466 | 468 |
Interest payable | 331 | 481 |
Wildfire-related claims | 2,091 | 2,722 |
Other | 2,386 | 2,436 |
Total current liabilities | 16,560 | 17,427 |
Noncurrent Liabilities | ||
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | 39,123 | 38,225 |
Regulatory liabilities | 11,563 | 11,999 |
Pension and other postretirement benefits | 801 | 860 |
Asset retirement obligations | 5,919 | 5,298 |
Deferred income taxes | 3,162 | 3,177 |
Operating lease liabilities | 739 | 810 |
Other | 4,420 | 4,308 |
Total noncurrent liabilities | 65,727 | 64,677 |
Shareholders' Equity | ||
Common stock, $5 par value, authorized 800,000,000 shares; 264,374,809 shares outstanding at respective dates | 34,726 | 35,129 |
Reinvested earnings | (8,867) | (9,284) |
Accumulated other comprehensive loss | (20) | (20) |
Total shareholders' equity | 21,392 | 20,971 |
TOTAL LIABILITIES AND EQUITY | 103,931 | 103,327 |
Pacific Gas & Electric Co (Utility) | ||
Current Assets | ||
Cash and cash equivalents | 199 | 165 |
Restricted cash | 29 | 16 |
Accounts receivable | ||
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 2,080 | 2,345 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 1,070 | 1,207 |
Regulatory balancing accounts | 3,165 | 2,999 |
Other | 1,850 | 1,932 |
Regulatory assets | 384 | 496 |
Inventories | ||
Gas stored underground and fuel oil | 29 | 44 |
Materials and supplies | 589 | 552 |
Wildfire Fund asset | 461 | 461 |
Other | 614 | 869 |
Total current assets | 10,470 | 11,086 |
Property, Plant, and Equipment | ||
Electric | 71,001 | 69,482 |
Gas | 26,474 | 25,979 |
Construction work in progress | 3,666 | 3,480 |
Financing lease and other | 18 | 18 |
Total property, plant, and equipment | 101,159 | 98,959 |
Accumulated depreciation | (29,654) | (29,131) |
Net property, plant, and equipment | 71,505 | 69,828 |
Other Noncurrent Assets | ||
Regulatory assets | 9,167 | 9,207 |
Nuclear decommissioning trusts | 3,635 | 3,798 |
Operating lease right of use asset | 1,138 | 1,232 |
Wildfire Fund asset | 5,198 | 5,313 |
Income taxes receivable | 7 | 7 |
Other (includes net noncurrent accounts receivable of $115 million and $187 million related to VIEs, net of noncurrent allowance for doubtful accounts of $11 million and $15 million at respective dates) | 2,755 | 2,706 |
Total other noncurrent assets | 21,900 | 22,263 |
TOTAL ASSETS | 103,875 | 103,177 |
Current Liabilities | ||
Short-term borrowings | 1,854 | 2,184 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 4,526 | 4,455 |
Accounts payable | ||
Trade creditors | 2,388 | 2,853 |
Regulatory balancing accounts | 1,676 | 1,121 |
Other | 780 | 648 |
Operating lease liabilities | 465 | 467 |
Interest payable | 305 | 430 |
Wildfire-related claims | 2,091 | 2,722 |
Other | 2,385 | 2,430 |
Total current liabilities | 16,470 | 17,310 |
Noncurrent Liabilities | ||
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | 34,532 | 33,632 |
Regulatory liabilities | 11,563 | 11,999 |
Pension and other postretirement benefits | 705 | 764 |
Asset retirement obligations | 5,919 | 5,298 |
Deferred income taxes | 3,408 | 3,409 |
Operating lease liabilities | 739 | 810 |
Other | 4,459 | 4,345 |
Total noncurrent liabilities | 61,325 | 60,257 |
Shareholders' Equity | ||
Preferred stock | 258 | 258 |
Common stock, $5 par value, authorized 800,000,000 shares; 264,374,809 shares outstanding at respective dates | 1,322 | 1,322 |
Additional paid-in capital | 28,286 | 28,286 |
Reinvested earnings | (3,778) | (4,247) |
Accumulated other comprehensive loss | (8) | (9) |
Total shareholders' equity | 26,080 | 25,610 |
TOTAL LIABILITIES AND EQUITY | $ 103,875 | $ 103,177 |
CONDENSED CONSOLIDATED BALANC_4
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts | $ 180 | $ 171 |
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 2,080 | 2,345 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 1,070 | 1,207 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 4,553 | 4,481 |
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | $ 39,123 | $ 38,225 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,600,000,000 | 3,600,000,000 |
Common stock, shares outstanding (in shares) | 1,987,472,590 | 1,985,400,540 |
Pacific Gas & Electric Co (Utility) | ||
Allowance for doubtful accounts | $ 180 | $ 171 |
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 2,080 | 2,345 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 1,070 | 1,207 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 4,526 | 4,455 |
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | $ 34,532 | $ 33,632 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares outstanding (in shares) | 264,374,809 | 264,374,809 |
Variable Interest Entity, Primary Beneficiary | ||
Allowance for doubtful accounts | $ 180 | $ 171 |
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 1,840 | 2,060 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 976 | 1,090 |
Net noncurrent accounts receivable | 115 | 187 |
Noncurrent allowance for doubtful accounts | 11 | 15 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 32 | 18 |
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | 1,830 | 1,820 |
Variable Interest Entity, Primary Beneficiary | Pacific Gas & Electric Co (Utility) | ||
Allowance for doubtful accounts | 180 | 171 |
Customers (net of allowance for doubtful accounts of $180 million and $171 million at respective dates) (includes $1.84 billion and $2.06 billion related to VIEs, net of allowance for doubtful accounts of $180 million and $171 million at respective dates) | 1,840 | 2,060 |
Accrued unbilled revenue (includes $976 million and $1.09 billion related to VIEs at respective dates) | 976 | 1,090 |
Net noncurrent accounts receivable | 115 | 187 |
Noncurrent allowance for doubtful accounts | 11 | 15 |
Long-term debt, classified as current (includes $32 million and $18 million related to VIEs at respective dates) | 32 | 18 |
Long-term debt (includes $1.83 billion and $1.82 billion related to VIEs at respective dates) | $ 1,830 | $ 1,820 |
CONDENSED CONSOLIDATED STATE_10
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, UTILITY - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net Income | $ 478 | $ 123 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and decommissioning | 972 | 888 |
Bad debt expense | 43 | 76 |
Allowance for equity funds used during construction | (42) | (32) |
Deferred income taxes and tax credits, net | (16) | 78 |
Reorganization items, net (Note 2) | 0 | (46) |
Wildfire Fund expense | 118 | 119 |
Other | 148 | 41 |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | 543 | 111 |
Wildfire-related insurance receivable | 43 | (28) |
Inventories | (22) | 14 |
Accounts payable | 217 | 143 |
Wildfire-related claims | (631) | (558) |
Other current assets and liabilities | (113) | (175) |
Regulatory assets, liabilities, and balancing accounts, net | 63 | 340 |
Other noncurrent assets and liabilities | (140) | 104 |
Net cash provided by operating activities | 1,661 | 1,198 |
Cash Flows from Investing Activities | ||
Capital expenditures | (2,310) | (1,778) |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 421 | 551 |
Purchases of nuclear decommissioning trust investments | (447) | (578) |
Other | 6 | 9 |
Net cash used in investing activities | (2,330) | (1,796) |
Cash Flows from Financing Activities | ||
Borrowings under credit facilities | 1,406 | 1,985 |
Repayments under credit facilities | (3,151) | (4,440) |
Proceeds from issuance of long-term debt, net of premium, discount and issuance costs of $22 and $18 at respective dates | 2,379 | 2,382 |
Proceeds from sale of future revenue from transmission tower license sales, net of fees | 0 | 350 |
Other | 11 | (41) |
Net cash provided by financing activities | 638 | 229 |
Net change in cash, cash equivalents, and restricted cash | (31) | (369) |
Cash, cash equivalents, and restricted cash at January 1 | 307 | 627 |
Cash, cash equivalents, and restricted cash at March 31 | 276 | 258 |
Less: Restricted cash and restricted cash equivalents | (29) | (29) |
Cash and cash equivalents at March 31 | 247 | 229 |
Cash paid for: | ||
Interest, net of amounts capitalized | (519) | (550) |
Supplemental disclosures of noncash investing and financing activities | ||
Capital expenditures financed through accounts payable | 975 | 528 |
Operating lease liabilities arising from obtaining ROU assets | 0 | 4 |
Pacific Gas & Electric Co (Utility) | ||
Cash Flows from Operating Activities | ||
Net Income | 530 | 177 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and decommissioning | 972 | 888 |
Bad debt expense | 43 | 76 |
Allowance for equity funds used during construction | (42) | (32) |
Deferred income taxes and tax credits, net | (2) | 92 |
Reorganization items, net (Note 2) | 0 | (15) |
Wildfire Fund expense | 118 | 119 |
Other | 140 | 36 |
Effect of changes in operating assets and liabilities: | ||
Accounts receivable | 536 | 115 |
Wildfire-related insurance receivable | 43 | (28) |
Inventories | (22) | 14 |
Accounts payable | 215 | 107 |
Wildfire-related claims | (631) | (558) |
Other current assets and liabilities | (83) | (150) |
Regulatory assets, liabilities, and balancing accounts, net | 63 | 340 |
Other noncurrent assets and liabilities | (148) | 102 |
Net cash provided by operating activities | 1,732 | 1,283 |
Cash Flows from Investing Activities | ||
Capital expenditures | (2,310) | (1,778) |
Proceeds from sales and maturities of nuclear decommissioning trust investments | 421 | 551 |
Purchases of nuclear decommissioning trust investments | (447) | (578) |
Other | 6 | 9 |
Net cash used in investing activities | (2,330) | (1,796) |
Cash Flows from Financing Activities | ||
Borrowings under credit facilities | 1,406 | 1,985 |
Repayments under credit facilities | (3,151) | (4,440) |
Proceeds from issuance of long-term debt, net of premium, discount and issuance costs of $22 and $18 at respective dates | 2,379 | 2,382 |
Proceeds from sale of future revenue from transmission tower license sales, net of fees | 0 | 350 |
Other | 11 | (12) |
Net cash provided by financing activities | 645 | 265 |
Net change in cash, cash equivalents, and restricted cash | 47 | (248) |
Cash, cash equivalents, and restricted cash at January 1 | 181 | 404 |
Cash, cash equivalents, and restricted cash at March 31 | 228 | 156 |
Less: Restricted cash and restricted cash equivalents | (29) | (29) |
Cash and cash equivalents at March 31 | 199 | 127 |
Cash paid for: | ||
Interest, net of amounts capitalized | (444) | (467) |
Supplemental disclosures of noncash investing and financing activities | ||
Capital expenditures financed through accounts payable | 975 | 528 |
Operating lease liabilities arising from obtaining ROU assets | $ 0 | $ 4 |
CONDENSED CONSOLIDATED STATE_11
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, UTILITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Financing Activities | ||
Premium, discount, and issuance costs on proceeds from long-term debt | $ 22 | $ 18 |
Pacific Gas & Electric Co (Utility) | ||
Cash Flows from Financing Activities | ||
Premium, discount, and issuance costs on proceeds from long-term debt | $ 21 | $ 18 |
CONDENSED CONSOLIDATED STATE_12
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY, UTILITY - USD ($) $ in Millions | Total | Pacific Gas & Electric Co (Utility) | Total Shareholders' Equity | Total Shareholders' EquityPacific Gas & Electric Co (Utility) | Preferred StockPacific Gas & Electric Co (Utility) | Common Stock | Common StockPacific Gas & Electric Co (Utility) | Additional Paid-in CapitalPacific Gas & Electric Co (Utility) | Reinvested Earnings | Reinvested EarningsPacific Gas & Electric Co (Utility) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Pacific Gas & Electric Co (Utility) |
Beginning balance at Dec. 31, 2020 | $ 21,253 | $ 21,001 | $ 25,476 | $ 258 | $ 30,224 | $ 1,322 | $ 28,286 | $ (9,196) | $ (4,385) | $ (27) | $ (5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 123 | $ 177 | 123 | 177 | 123 | 177 | ||||||
Other comprehensive income | 1 | 0 | 1 | 1 | ||||||||
Ending balance at Mar. 31, 2021 | 21,379 | 21,127 | $ 25,653 | 258 | 30,226 | 1,322 | 28,286 | (9,073) | (4,208) | (26) | (5) | |
Beginning balance at Dec. 31, 2021 | 21,223 | 25,610 | 20,971 | 258 | 35,129 | 1,322 | 28,286 | (9,284) | (4,247) | (20) | (9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 478 | 530 | 478 | 478 | 530 | |||||||
Other comprehensive income | 0 | 1 | 1 | |||||||||
Preferred stock dividend requirement of subsidiary in arrears | (59) | (59) | (59) | (59) | (59) | |||||||
Preferred stock dividend requirement | (2) | (2) | ||||||||||
Ending balance at Mar. 31, 2022 | $ 21,644 | $ 26,080 | $ 21,392 | $ 258 | $ 34,726 | $ 1,322 | $ 28,286 | $ (8,867) | $ (3,778) | $ (20) | $ (8) |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization and Basis of Presentation PG&E Corporation is a holding company whose primary operating subsidiary is Pacific Gas and Electric Company, a public utility serving northern and central California. The Utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. The Utility is primarily regulated by the CPUC and the FERC. In addition, the NRC oversees the licensing, construction, operation, and decommissioning of the Utility’s nuclear generation facilities. This quarterly report on Form 10-Q is a combined report of PG&E Corporation and the Utility. PG&E Corporation’s Condensed Consolidated Financial Statements include the accounts of PG&E Corporation, the Utility, and other wholly owned and controlled subsidiaries. The Utility’s Condensed Consolidated Financial Statements include the accounts of the Utility and its wholly owned and controlled subsidiaries. All intercompany transactions have been eliminated in consolidation. The Notes to the Condensed Consolidated Financial Statements apply to both PG&E Corporation and the Utility. PG&E Corporation and the Utility assess financial performance and allocate resources on a consolidated basis (i.e., the companies operate in one segment). The accompanying Condensed Consolidated Financial Statements have been prepared in conformity with GAAP and in accordance with the interim period reporting requirements of Form 10-Q and reflect all adjustments that management believes are necessary for the fair presentation of PG&E Corporation’s and the Utility’s financial condition, results of operations, and cash flows for the periods presented. The information at December 31, 2021 in the Condensed Consolidated Balance Sheets included in this quarterly report on Form 10-Q was derived from the audited Consolidated Balance Sheets in Item 8 of the 2021 Form 10-K. This quarterly report on Form 10-Q should be read in conjunction with the 2021 Form 10-K. The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Some of the more significant estimates and assumptions relate to the Utility’s regulatory assets and liabilities, wildfire-related liabilities, legal and regulatory contingencies, the Wildfire Fund, environmental remediation liabilities, AROs, wildfire-related receivables, and pension and other post-retirement benefit plan obligations. Management believes that its estimates and assumptions reflected in the Condensed Consolidated Financial Statements are appropriate and reasonable. A change in management’s estimates or assumptions could result in an adjustment that would have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows during the period in which such change occurred. |
BANKRUPTCY FILING
BANKRUPTCY FILING | 3 Months Ended |
Mar. 31, 2022 | |
Reorganizations [Abstract] | |
BANKRUPTCY FILING | BANKRUPTCY FILING Chapter 11 Proceedings On January 29, 2019, PG&E Corporation and the Utility commenced the Chapter 11 Cases with the Bankruptcy Court. Prior to the Emergence Date, PG&E Corporation and the Utility continued to operate their business as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On June 20, 2020, the Bankruptcy Court entered the Confirmation Order confirming the Plan filed on June 19, 2020. PG&E Corporation and the Utility emerged from Chapter 11 on the Emergence Date of July 1, 2020. Certain parties filed notices of appeal with respect to the Confirmation Order, including provisions related to post-petition interest. PG&E Corporation and the Utility are unable to predict the timing and outcome of these appeals. Except as otherwise set forth in the Plan, the Confirmation Order or another order of the Bankruptcy Court, substantially all pre-petition liabilities were discharged under the Plan. Unresolved Chapter 11 Claims PG&E Corporation and the Utility have received over 100,000 proofs of claim since January 29, 2019, of which approximately 80,000 were channeled to a trust for the benefit of holders of certain subrogation claims (the “Subrogation Wildfire Trust”) and Fire Victim Trust. The claims channeled to the Subrogation Wildfire Trust and Fire Victim Trust will be resolved by such trusts, and PG&E Corporation and the Utility have no further liability in connection with such claims. PG&E Corporation and the Utility continue their review and analysis of certain remaining claims, including asserted litigation claims, trade creditor claims, along with other tax and regulatory claims, and therefore the ultimate liability of PG&E Corporation or the Utility for such claims may differ from the amounts asserted in such claims. Allowed claims are paid in accordance with the Plan and the Confirmation Order. Amounts expected to be allowed are reflected as current liabilities in the Condensed Consolidated Balance Sheets. Holders of certain claims may assert that they are entitled under the Plan or the Bankruptcy Code to pursue, or continue to pursue, their claims against PG&E Corporation and the Utility on or after the Emergence Date, including claims arising from or relating to indemnification or contribution claims, including with respect to the wildfire that began on November 8, 2018 near the city of Paradise, Butte County, California (the “2018 Camp fire”), the 2017 Northern California wildfires, and the wildfire that began September 9, 2015 in Amador and Calaveras counties in Northern California (the “2015 Butte fire”). In addition, Subordinated Debt Claims and HoldCo Rescission or Damage Claims (each as defined in Note 10 below) continue to be pursued against PG&E Corporation and the Utility in the claims reconciliation process in the Bankruptcy Court, and claims against certain former directors and current and former officers, as well as certain underwriters, are being pursued in the purported securities class action that is further described in Note 10 under the heading “Securities Class Action Litigation.” In addition to filing objections in the Bankruptcy Court to claims with respect to which PG&E Corporation and the Utility do not believe they have liability, PG&E Corporation and the Utility are working to resolve, including through mediations before a panel of mediators, disputed general unsecured claims including Subordinated Debt Claims and HoldCo Rescission or Damage Claims. By order of the Bankruptcy Court, the current deadline for PG&E Corporation and the Utility to object to claims is June 21, 2022. On April 26, 2022, PG&E Corporation and the Utility filed a motion requesting entry of an order further extending the deadline to object to claims to December 19, 2022. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Revenue from Contracts with Customers The Utility recognizes revenues when electricity and natural gas services are delivered. The Utility records unbilled revenues for the estimated amount of energy delivered to customers but not yet billed at the end of the period. Unbilled revenues are included in accounts receivable on the Condensed Consolidated Balance Sheets. Rates charged to customers are based on CPUC and FERC authorized revenue requirements. Revenues can vary significantly from period to period because of seasonality, weather, and customer usage patterns. Regulatory Balancing Account Revenue The CPUC authorizes most of the Utility’s revenues in the Utility’s GRCs, which occur every four years. 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 Utility also collects additional revenue requirements to recover costs that the CPUC has authorized the Utility to pass on to customers, including costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs. In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred. The Utility records a regulatory balancing account asset or liability for differences between incurred costs and customer billings or authorized revenue meant to recover those costs, to the extent that these differences are probable of recovery or refund. As a result, these differences have no impact on net income. The following table presents the Utility’s revenues disaggregated by type of customer: Three Months Ended March 31, (in millions) 2022 2021 Electric Revenue from contracts with customers Residential $ 1,494 $ 1,464 Commercial 1,173 1,013 Industrial 350 327 Agricultural 216 152 Public street and highway lighting 18 17 Other (1) (14) (64) Total revenue from contracts with customers - electric 3,237 2,909 Regulatory balancing accounts (2) 921 486 Total electric operating revenue $ 4,158 $ 3,395 Natural gas Revenue from contracts with customers Residential $ 1,464 $ 1,208 Commercial 344 245 Transportation service only 399 326 Other (1) (180) (47) Total revenue from contracts with customers - gas 2,027 1,732 Regulatory balancing accounts (2) (387) (411) Total natural gas operating revenue 1,640 1,321 Total operating revenues $ 5,798 $ 4,716 (1) This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items. (2) These amounts represent revenues authorized to be billed or refunded to customers. Variable Interest Entities A VIE is an entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or whose equity investors lack any characteristics of a controlling financial interest. An enterprise that has a controlling financial interest in a VIE is a primary beneficiary and is required to consolidate the VIE. Consolidated VIEs Receivables Securitization Program The SPV was created in connection with the Receivables Securitization Program and is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the Receivables Securitization Program, the Utility sells certain of its receivables and certain related rights to payment and obligations of the Utility with respect to such receivables, and certain other related rights to the SPV, which, in turn, obtains loans secured by the receivables from financial institutions (the “Lenders”). Amounts received from the Lenders, the pledged receivables and the corresponding debt are included in Accounts receivable, Other noncurrent assets, and Long-term debt, respectively, on the Condensed Consolidated Balance Sheets. As of March 31, 2022, the aggregate principal amount of the loans made by the Lenders cannot exceed $1.0 billion outstanding at any time. On April 20, 2022, the Utility entered into an amendment to the Receivables Securitization Program to, among other things, add an uncommitted incremental facility which, subject to certain conditions precedent, allows the SPV to request an increase in the facility limit by an additional $500 million to an aggregate amount of $1.5 billion. The SPV is considered a VIE because its equity capitalization is insufficient to support its activities. The most significant activities that impact the economic performance of the SPV are decisions made to manage receivables. The Utility is considered the primary beneficiary and consolidates the SPV as it makes these decisions. No additional financial support was provided to the SPV during the quarter ended March 31, 2022 or is expected to be provided in the future that was not previously contractually required. As of March 31, 2022 and December 31, 2021, the SPV had net accounts receivable of $2.9 billion and $3.3 billion, respectively, and outstanding borrowings of $1.0 billion and $974 million, respectively, under the Receivables Securitization Program. First AB 1054 Securitization PG&E Recovery Funding LLC is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the financing order for the first AB 1054 securitization transaction, the Utility sold its right to receive revenues from the non-bypassable wildfire hardening fixed recovery charge (“Recovery Property”) to PG&E Recovery Funding LLC, which, in turn, issued recovery bonds secured by the Recovery Property. On November 12, 2021, PG&E Recovery Funding LLC issued approximately $860 million of senior secured recovery bonds. The recovery bonds were issued in three tranches: (1) approximately $266 million with an interest rate of 1.46% and is due July 15, 2033, (2) approximately $160 million with an interest rate of 2.28% and is due January 15, 2038, and (3) approximately $434 million with an interest rate of 2.82% and is due July 15, 2048. The recovery bonds are scheduled to pay principal and interest semi-annually on January 15 and July 15 of each year. The final scheduled payment date is July 15, 2046. Amounts owed to bond-holders are included in Long-term debt and Long-term debt, classified as current, on the Condensed Consolidated Balance Sheets. PG&E Recovery Funding LLC is considered a VIE because its equity capitalization is insufficient to support its operations. The most significant activities that impact the economic performance of PG&E Recovery Funding LLC are decisions made by the servicer of the Recovery Property. The Utility is considered the primary beneficiary and consolidates PG&E Recovery Funding LLC as it acts in this role as servicer. No additional financial support was provided to PG&E Recovery Funding LLC during the quarter ended March 31, 2022 or is expected to be provided in the future that was not previously contractually required. As of March 31, 2022 and December 31, 2021, PG&E Recovery Funding LLC had outstanding borrowings of $860 million. Non-Consolidated VIEs Some of the counterparties to the Utility’s power purchase agreements are considered VIEs. Each of these VIEs was designed to own a power plant that would generate electricity for sale to the Utility. To determine whether the Utility was the primary beneficiary of any of these VIEs as of March 31, 2022, it assessed whether it absorbs any of the VIE’s expected losses or receives any portion of the VIE’s expected residual returns under the terms of the power purchase agreement, analyzed the variability in the VIE’s gross margin, and considered whether it had any decision-making rights associated with the activities that are most significant to the VIE’s performance, such as dispatch rights and operating and maintenance activities. The Utility’s financial obligation is limited to the amount the Utility pays for delivered electricity and capacity. The Utility did not have any decision-making rights associated with any of the activities that are most significant to the economic performance of any of these VIEs. Since the Utility was not the primary beneficiary of any of these VIEs as of March 31, 2022, it did not consolidate any of them. Contributions to the Wildfire Fund Established Pursuant to AB 1054 PG&E Corporation and the Utility account for contributions to the Wildfire Fund similarly to prepaid insurance, with expense being amortized to periods ratably based on an estimated period of coverage. However, AB 1054 did not specify a period of coverage for the Wildfire Fund; therefore, this accounting treatment is subject to significant accounting judgments and estimates. Since the inception of the Wildfire Fund, PG&E Corporation and the Utility have estimated a period of coverage of 15 years. In estimating that initial period of coverage, PG&E Corporation and the Utility started in 2019 with a dataset of 12 years of historical, publicly available fire-loss data for the period from 2007 to 2018 for wildfires caused by electrical equipment to create Monte Carlo simulations of expected loss. For each year after 2019, PG&E Corporation and the Utility added the fire-loss data for the preceding year to the dataset. The number of years of historic fire-loss data and the effectiveness of mitigation efforts by the California electric utility companies are significant assumptions used to estimate the period of coverage. Other assumptions include the estimated costs to settle wildfire claims for participating electric utilities including the Utility, the CPUC’s determinations of whether costs were just and reasonable in cases of electric utility-caused wildfires and amounts required to be reimbursed to the Wildfire Fund, the impacts of climate change, the amount of future insurance coverage held by the electric utilities, the FERC-allocable portion of loss recovery, and the future transmission and distribution equity rate base growth of participating electric utilities. These assumptions create a high degree of uncertainty for the estimated useful life of the Wildfire Fund. PG&E Corporation and the Utility evaluate and, where appropriate, update all assumptions quarterly. Changes in any of the assumptions could materially impact the estimated period of coverage. In the first quarter of 2022, PG&E Corporation and the Utility updated assumptions related to the mitigation effectiveness and historical fire loss dataset to align with the 2022 WMP. These updates did not change the estimated period of coverage, which continues to be 15 years from the inception of the Wildfire Fund. As of March 31, 2022, PG&E Corporation and the Utility recorded $193 million in Other current liabilities, $1.1 billion in Other non-current liabilities, $461 million in Current assets - Wildfire Fund asset, and $5.2 billion in Non-current assets - Wildfire Fund asset in the Condensed Consolidated Balance Sheets. During the three months ended March 31, 2022 and March 31, 2021, the Utility recorded amortization and accretion expense of $118 million and $119 million, respectively. The amortization of the asset, accretion of the liability, and applicable acceleration of the amortization of the asset is reflected in Wildfire Fund expense in the Condensed Consolidated Statements of Income. As of March 31, 2022, PG&E Corporation and the Utility had recorded $150 million in Other noncurrent assets for Wildfire Fund receivables related to the 2021 Dixie fire. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K. 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, 2022 and 2021 were as follows: Pension Benefits Other Benefits Three Months Ended March 31, (in millions) 2022 2021 2022 2021 Service cost for benefits earned (1) $ 144 $ 147 $ 15 $ 16 Interest cost 173 161 13 13 Expected return on plan assets (297) (261) (32) (35) Amortization of prior service cost (1) (1) 2 4 Amortization of net actuarial (gain) loss — 1 (10) (8) Net periodic benefit cost 19 47 (12) (10) Regulatory account transfer (2) 64 37 — — Total $ 83 $ 84 $ (12) $ (10) (1) A portion of service costs are capitalized pursuant to GAAP. (2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates. Non-service costs are reflected in Other income, net on the Condensed Consolidated Statements of Income. Service costs are reflected in Operating and maintenance on the Condensed Consolidated Statements of Income. There was no material difference between PG&E Corporation and the Utility for the information disclosed above. Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) consisted of the following: Pension Other Total (in millions, net of income tax) Three Months Ended March 31, 2022 Beginning balance $ (33) $ 18 $ (15) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1) 1 — Amortization of net actuarial gain (net of taxes of $0 and $3, respectively) — (7) (7) Regulatory account transfer (net of taxes of $0 and $2, respectively) 1 6 7 Net current period other comprehensive gain (loss) — — — Ending balance $ (33) $ 18 $ (15) (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, 2021 Beginning balance $ (39) $ 17 $ (22) 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 (gain) loss (net of taxes of $0 and $2, respectively) 1 (6) (5) Regulatory account transfer (net of taxes of $0 and $1, respectively) 1 3 4 Net current period other comprehensive gain (loss) 1 — 1 Ending balance $ (38) $ 17 $ (21) (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. Financial Assets Measured at Amortized Cost – Credit Losses PG&E Corporation and the Utility use the current expected credit loss model to estimate the expected lifetime credit loss on financial assets measured at amortized cost. PG&E Corporation and the Utility evaluate credit risk in their portfolio of financial assets quarterly. As of March 31, 2022, PG&E Corporation and the Utility identified the following significant categories of financial assets. Trade Receivables Trade receivables are represented by customer accounts. PG&E Corporation and the Utility record an allowance for doubtful accounts to recognize an estimate of expected lifetime credit losses. The allowance is determined on a collective basis based on the historical amounts written-off and an assessment of customer collectability. Furthermore, economic conditions are evaluated as part of the estimate of expected lifetime credit losses using an analysis of regional unemployment rates. As of March 31, 2022, expected credit losses of $43 million were recorded in Operating and maintenance expense on the Condensed Consolidated Statements of Income for credit losses associated with trade and other receivables. The portion of expected credit losses that are deemed probable of recovery are deferred to the RUBA, CPPMA and a FERC regulatory asset. As of March 31, 2022, the RUBA current balancing accounts receivable balance was $104 million, CPPMA long-term regulatory asset balance was $28 million, and FERC long-term regulatory asset balance was not material. Other Receivables and Available-For-Sale Debt Securities Insurance receivables are related to the liability insurance policies PG&E Corporation and the Utility carry. Insurance receivable risk is related to each insurance carrier’s risk of defaulting on their individual policies. Wildfire Fund receivables are the funds available from the statewide fund established under AB 1054 for payment of eligible claims related to the 2021 Dixie fire that exceed $1.0 billion and available insurance coverage. For more information, see Note 10 below. Wildfire Fund receivables risk is related to the Wildfire Fund’s durability, which is a measurement of the claim-paying capacity. Lastly, PG&E Corporation and the Utility are required to determine if the fair value is below the amortized cost basis for its available-for-sale debt securities. An impairment may exist if there is an intent to sell or a requirement to sell before recovery of the amortized basis. If such an impairment exists, then PG&E Corporation and the Utility must determine whether a portion of the impairment is a result of expected credit loss. As of March 31, 2022, expected credit losses for insurance receivables, Wildfire Fund receivables, and available-for-sale debt securities were immaterial. Recently Adopted Accounting Standards Debt In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
REGULATORY ASSETS, LIABILITIES,
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | 3 Months Ended |
Mar. 31, 2022 | |
Regulated Operations [Abstract] | |
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS | REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS Regulatory Assets Long-term regulatory assets are comprised of the following: Balance at (in millions) March 31, 2022 December 31, 2021 Pension benefits (1) $ 645 $ 708 Environmental compliance costs 1,007 1,089 Utility retained generation (2) 121 133 Price risk management 213 216 Catastrophic event memorandum account (3) 983 1,119 Wildfire expense memorandum account (4) 350 347 Fire hazard prevention memorandum account (5) 75 75 Fire risk mitigation memorandum account (6) 50 44 Wildfire mitigation plan memorandum account (7) 461 424 Deferred income taxes (8) 2,036 1,849 Insurance premium costs (9) 186 207 Wildfire mitigation balancing account (10) 273 273 Vegetation management balancing account (11) 1,412 1,411 COVID-19 pandemic protection memorandum accounts (12) 48 49 Microgrid memorandum account (13) 164 163 Financing costs (14) 172 175 Other 971 925 Total long-term regulatory assets $ 9,167 $ 9,207 (1) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue indefinitely into the future, the Utility expects to continuously recover pension benefits. (2) In connection with the settlement agreement entered into among PG&E Corporation, the Utility, and the CPUC in 2003 to resolve the Utility’s 2001 proceeding under Chapter 11, the CPUC authorized the Utility to recover $1.2 billion of costs related to the Utility’s retained generation assets. The individual components of these regulatory assets are being amortized over the respective lives of the underlying generation facilities, consistent with the period over which the related revenues are recognized. (3 ) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. As of March 31, 2022 and December 31, 2021, $51 million and $49 million in COVID-19 related costs was recorded to CEMA regulatory assets, respectively. Recovery of CEMA costs is subject to CPUC review and approval. (4) Represents incremental wildfire claims and outside legal expenses related to the 2021 Dixie fire. Recovery of WEMA costs is subject to CPUC review and approval. (5) Includes costs associated with the implementation of regulations and requirements adopted to protect the public from potential fire hazards associated with overhead power line facilities and nearby aerial communication facilities that have not been previously authorized in another proceeding. Recovery of FHPMA costs is subject to CPUC review and approval. (6) Includes costs associated with the 2019 WMP for the period from January 1, 2019 through June 4, 2019 and other incremental costs associated with fire risk mitigation. Recovery of FRMMA costs is subject to CPUC review and approval. (7) Includes costs associated with the 2019 WMP for the period from June 5, 2019 through December 31, 2019, the 2020 WMP for the period from January 1, 2020 through December 31, 2020, the 2021 WMP for the period from January 1, 2021 through December 31, 2021 and the 2022 WMP for the period from January 1, 2022 through March 31, 2022. Recovery of WMPMA costs is subject to CPUC review and approval. (8) Represents cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP. (9) Represents excess liability insurance premium costs recorded to RTBA and adjustment mechanism for costs determined in other proceedings, as authorized in the 2020 GRC and 2019 GT&S rate cases, respectively. (10) Includes costs associated with certain wildfire mitigation activities for the period from January 1, 2020 through March 31, 2022 . Noncurrent balance represents costs above 115% of adopted revenue requirements, which are subject to CPUC review and approval. (11) Represents costs from routine vegetation management and EVM activities previously recorded in the FRMMA/WMPMA, and tree mortality and fire risk reduction work previously recorded in CEMA for the period from January 1, 2020 through March 31, 2022 . Recovery of VMBA costs above 120% of adopted revenue requirements is subject to CPUC review and approval. (12) On April 16, 2020, the CPUC passed a resolution that established the CPPMA to recover costs associated with customer protections, including higher uncollectible costs related to a moratorium on electric and gas service disconnections for residential and small business customers. The CPPMA applies only to certain residential and small business customers and was approved on July 27, 2020 with an effective date of March 4, 2020. As of March 31, 2022, the Utility had recorded an under-collection of $28 million, representing incremental bad debt expense over what was collected in rates for the period the CPPMA was in effect. The remaining $20 million is associated with program costs and higher accounts receivable financing costs. As of December 31, 2021, the Utility had recorded an under-collection of $30 million, representing incremental bad debt expense over what was collected in rates for the period the CPPMA was in effect. The remaining $19 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs is subject to CPUC review and approval. (13) Includes costs associated with temporary generation, infrastructure upgrades, and community grid enablement programs associated with the implementation of microgrids. Amounts incurred are subject to CPUC review and approval. (14) Includes costs associated with long-term debt financing deemed recoverable under ASC 980. Noncurrent balance represents costs to be recovered more than twelve months from the current date and includes the following costs: hedging costs and exit financing fees for the Utility’s exit from bankruptcy in 2004 and PG&E Corporation’s and the Utility’s exit from bankruptcy in 2020; unamortized issuance costs, premiums and discounts related to pre-petition debt; AB1054 bond issuance costs; and debt CPUC fees. These costs and their amortization period are reviewable and approved in the Utility’s Cost of Capital or other regulatory filings. Regulatory Liabilities Long-term regulatory liabilities are comprised of the following: Balance at (in millions) March 31, 2022 December 31, 2021 Cost of removal obligations (1) $ 7,431 $ 7,306 Recoveries in excess of AROs (2) 154 388 Public purpose programs (3) 1,043 946 Employee benefit plans (4) 1,234 1,229 Transmission tower wireless licenses (5) 442 446 SFGO sale (6) 323 343 Other 936 1,341 Total long-term regulatory liabilities $ 11,563 $ 11,999 (1) Represents the cumulative differences between the recorded costs to remove assets and amounts collected in rates for expected costs to remove assets. (2) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 9 below. (3) Represents amounts received from customers designated for public purpose program costs expected to be incurred beyond the next 12 months, primarily related to energy efficiency programs. (4) Represents cumulative differences between incurred costs and amounts collected in rates for post-retirement medical, post-retirement life and long-term disability plans. (5) Represents the portion of the net proceeds received from the sale of transmission tower wireless licenses that will be returned to customers. Of the $442 million, $307 million and $135 million will be refunded to FERC and CPUC jurisdiction customers, respectively. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K. (6) Represents the noncurrent portion of the net gain on the sale of the SFGO, which closed on September 17, 2021, that is being distributed to customers over a five-year period, beginning in 2022. Regulatory Balancing Accounts Current regulatory balancing accounts receivable and payable are comprised of the following: Balance at (in millions) March 31, 2022 December 31, 2021 Electric distribution $ 850 $ — Energy procurement 505 310 Public purpose programs 345 321 Fire hazard prevention memorandum account 20 50 Fire risk mitigation memorandum account 5 14 Wildfire mitigation plan memorandum account 27 67 Wildfire mitigation balancing account 9 91 General rate case memorandum accounts 351 468 Vegetation management balancing account 305 127 Insurance premium costs 95 605 Wildfire expense memorandum account — 440 Residential uncollectibles balancing accounts 104 127 Catastrophic event memorandum account 287 — Other 262 379 Total regulatory balancing accounts receivable $ 3,165 $ 2,999 Balance at (in millions) March 31, 2022 December 31, 2021 Electric distribution $ — $ 121 Electric transmission 132 24 Gas distribution and transmission 113 83 Energy procurement 224 211 Public purpose programs 286 259 Nuclear decommissioning adjustment mechanism 106 137 Other 815 286 Total regulatory balancing accounts payable $ 1,676 $ 1,121 For more information, see Note 4 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Facilities The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings and availability under their credit facilities as of March 31, 2022: (in millions) Termination Maximum Facility Limit Loans Outstanding Letters of Credit Outstanding Facility Utility revolving credit facility June 2026 $ 4,000 (1) $ 1,555 $ 750 $ 1,695 Utility Receivables Securitization Program (2) September 2023 1,000 (3) 1,000 — — (3) PG&E Corporation revolving credit facility June 2024 500 — — 500 Total credit facilities $ 5,500 $ 2,555 $ 750 $ 2,195 (1) Includes a $1.5 billion letter of credit sublimit. (2) For more information on the Receivables Securitization Program, see “Variable Interest Entities” in Note 3 above. (3) The amount the Utility may borrow under the Receivables Securitization Program is limited to the lesser of the facility limit (which was $1.0 billion as of March 31, 2022) and the facility availability. The facility availability may vary based on the amount of accounts receivable that the Utility owns that are eligible for sale to the SPV and the portion of those accounts receivable that are sold to the SPV that are eligible for advances by the lenders under the Receivables Securitization Program. As of March 31, 2022, the Receivables Securitization Program had a maximum borrowing base of $1.0 billion and was fully drawn. As of April 25, 2022, the Receivables Securitization Program had a maximum borrowing base of $715 million and was fully drawn. On March 31, 2022, the Utility prepaid in full the remaining portion of the 18-month tranche loans pursuant to an existing term loan credit agreement (the “2020 Utility Term Loan Credit Agreement”), in a principal amount equal to $298 million. As a result of such prepayment, the 2020 Utility Term Loan Credit Agreement was terminated and is no longer outstanding. On April 4, 2022, the Utility entered into a term loan credit agreement (the “2022A Utility Term Loan Credit Agreement”), comprised of 364-day tranche loans in the aggregate principal amount of $500 million (the “364-Day 2022A Tranche Loans”). The 364-Day 2022A Tranche Loans have a maturity date of April 3, 2023 and bear interest based on the Utility’s election of either (1) Term SOFR (plus a 0.10% credit spread adjustment) plus an applicable margin of 1.25%, or (2) the base rate plus an applicable margin of 0.25%. The Utility borrowed the entire amount of the 364-Day 2022A Tranche Loans on April 4, 2022. On April 20, 2022, the Utility entered into a term loan credit agreement (the “2022B Utility Term Loan Credit Agreement”), comprised of 364-day tranche loans in the aggregate principal amount of $125 million (the “364-Day 2022B Tranche Loans”) and two-year tranche loans in the aggregate principal amount of $400 million (the “2-Year 2022B Tranche Loans”). The 364-Day 2022B Tranche Loans have a maturity date of April 19, 2023 and the 2-Year 2022B Tranche Loans have a maturity date of April 19, 2024. The 364-Day 2022B Tranche Loans and the 2-Year 2022B Tranche Loans bear interest based on the Utility’s election of either (1) Term SOFR (plus a 0.10% credit spread adjustment) plus an applicable margin of 1.25%, or (2) the base rate plus an applicable margin of 0.25%. The Utility borrowed the entire amount of the 364-Day 2022B Tranche Loans and the 2-Year 2022B Tranche Loans on April 20, 2022. On April 20, 2022, the Utility entered into an amendment to the Receivables Securitization Program to, among other things, add an uncommitted incremental facility which, subject to certain conditions precedent, allows the SPV to request an increase in the facility limit by an additional $500 million to an aggregate amount of $1.5 billion. SB 901 SB 901, signed into law on September 21, 2018, requires the CPUC to establish a CHT, directing the CPUC to limit certain disallowances in the aggregate, so that they do not exceed the maximum amount that the Utility can pay without harming customers or materially impacting its ability to provide adequate and safe service. SB 901 also authorizes the CPUC to issue a financing order that permits recovery, through the issuance of recovery bonds (also referred to as “securitization”), of wildfire-related costs found to be just and reasonable by the CPUC and, only for the 2017 Northern California wildfires, any amounts in excess of the CHT. Pursuant to SB 901 and the CPUC’s methodology adopted in the CHT OIR, on April 30, 2020, the Utility filed an application with the CPUC seeking authorization for a post-emergence transaction to finance, using securitization, $7.5 billion of 2017 wildfire claims costs and create a corresponding customer credit trust that is designed to not impact amounts billed to customers, with the proceeds of the securitization used to pay or reimburse the Utility for the payment of wildfire claims costs associated with the 2017 Northern California wildfires. In connection with the proposed transaction, the Utility would retire $6.0 billion of Utility debt. On April 23, 2021, the CPUC issued a decision finding that $7.5 billion of the Utility’s 2017 catastrophic wildfire costs and expenses are stress test costs that may be financed through the issuance of recovery bonds pursuant to Public Utilities Code sections 850 et seq. In addition, on May 11, 2021, the CPUC issued a financing order authorizing the issuance of one or more series of recovery bonds in connection with the post-emergence transaction to finance, using securitization, the $7.5 billion of claims associated with the 2017 Northern California wildfires. On February 28, 2022, the decision finding $7.5 billion of stress test costs eligible for securitization and the financing order authorizing the issuance of up to $7.5 billion of recovery bonds became final and non-appealable. The financing order authorized the issuance of bonds through the end of 2022. The number of bond series and tranches that can be issued in 2022, the size of those series and tranches, and whether sufficient market capacity exists for the full authorized amount of bonds in calendar year 2022 remain uncertain. Long-Term Debt Issuances and Redemptions Utility On February 18, 2022, the Utility completed the sale of (i) $1 billion aggregate principal amount of 3.25% First Mortgage Bonds due 2024, (ii) $400 million aggregate principal amount of 4.20% First Mortgage Bonds due 2029, (iii) $450 million aggregate principal amount of 4.40% First Mortgage Bonds due 2032 and (iv) $550 million aggregate principal amount of 5.25% First Mortgage Bonds due 2052. The proceeds were used for the prepayment of a portion of the 18-month tranche loans pursuant to the 2020 Utility Term Loan Credit Agreement, in an amount equal to $1.0 billion, and for general corporate purposes. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY At the Market Equity Distribution Program On April 30, 2021, PG&E Corporation entered into an Equity Distribution Agreement (“Equity Distribution Agreement”) with Barclays Capital Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC, as sales agents and as forward sellers (in such capacities as applicable, the “Agents” and the “Forward Sellers,” respectively), and Barclays Bank PLC, Bank of America, N.A., Credit Suisse Capital LLC and Wells Fargo Bank, National Association, as forward purchasers (the “Forward Purchasers”), establishing an at the market equity distribution program, pursuant to which PG&E Corporation, through the Agents, may offer and sell from time to time shares of PG&E Corporation’s common stock having an aggregate gross sales price of up to $400 million. PG&E Corporation has no obligation to offer or sell any of its common stock under the Equity Distribution Agreement and may at any time suspend offers under the Equity Distribution Agreement. The Equity Distribution Agreement provides that, in addition to the issuance and sale of shares of common stock by PG&E Corporation to or through the Agents, PG&E Corporation may enter into forward sale agreements (collectively, the “Forward Sale Agreements”) pursuant to which the relevant Forward Purchaser will borrow shares from third parties and, through its affiliated Forward Seller, offer a number of shares of common stock equal to the number of shares of common stock underlying the particular Forward Sale Agreement. During the quarter ended March 31, 2022, PG&E Corporation did not sell any shares pursuant to the Equity Distribution Agreement or any Forward Sale Agreement. As of March 31, 2022, there was $400 million available under PG&E Corporation’s at the market equity distribution program for future offerings. Ownership Restrictions in PG&E Corporation’s Amended Articles Under Section 382 of the IRC, if a corporation (or a consolidated group) undergoes an “ownership change,” net operating loss carryforwards and other tax attributes may be subject to certain limitations (which could limit PG&E Corporation or the Utility’s ability to use these DTAs to offset taxable income). In general, an ownership change occurs if the aggregate stock ownership of certain shareholders (generally five percent shareholders, applying certain look-through and aggregation rules) increases by more than 50% over such shareholders’ lowest percentage ownership during the testing period (generally three years). The Amended Articles limit Transfers (as defined in the Amended Articles) that increase a person’s or entity’s (including certain groups of persons) ownership of PG&E Corporation’s equity securities to 4.75% or more prior to the Restriction Release Date (as defined in the Amended Articles) without approval by the Board of Directors of PG&E Corporation. On July 8, 2021, PG&E Corporation, the Utility, ShareCo and the Fire Victim Trust entered into the Share Exchange and Tax Matters Agreement, pursuant to which PG&E Corporation and the Utility made a “grantor trust” election for the Fire Victim Trust effective retroactively to the inception of the Fire Victim Trust. As a result of the grantor trust election, shares of PG&E Corporation common stock owned by the Fire Victim Trust are treated as held by the Utility and, in turn attributed to PG&E Corporation for income tax purposes. Consequently, any shares owned by the Fire Victim Trust, along with any shares owned by the Utility directly, are effectively excluded from the total number of outstanding equity securities when calculating a person’s Percentage Stock Ownership (as defined in the Amended Articles) for purposes of the 4.75% ownership limitation in the Amended Articles. Shares owned by ShareCo are also effectively excluded because ShareCo is a disregarded entity for income tax purposes. For example, although PG&E Corporation had 2,465,220,279 shares outstanding as of April 21, 2022, only 1,609,733,099 shares (that is, the number of outstanding shares of common stock less the number of shares held by the Fire Victim Trust, the Utility and ShareCo) count as outstanding for purposes of the ownership restrictions in the Amended Articles. As such, based on the total number of outstanding equity securities and taking into account the shares of PG&E Corporation common stock known to have been sold by the Fire Victim Trust as of April 21, 2022, a person’s effective Percentage Stock Ownership limitation for purposes of the Amended Articles as of April 21, 2022 was 3.10% of the outstanding shares. On January 31, 2022 and April 14, 2022, the Fire Victim Trust exchanged 40,000,000 and 60,000,000 Plan Shares, respectively, for an equal number of New Shares in the manner contemplated by the Share Exchange and Tax Matters Agreement; in each case, the Fire Victim Trust thereafter reported that it sold the applicable New Shares. The Fire Victim Trust’s sale of 40,000,000 shares of PG&E Corporation common stock on January 31, 2022 resulted in a tax benefit of $135 million recorded in PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements for the quarter ended March 31, 2022. As of April 21, 2022, to the knowledge of PG&E Corporation, the Fire Victim Trust had sold 100,000,000 shares of PG&E Corporation common stock. As of the date of this report, it is more likely than not that PG&E Corporation has not undergone an ownership change and consequently, its net operating loss carryforwards and other tax attributes are not limited by Section 382 of the IRC. Dividends On December 20, 2017, the Boards of Directors of PG&E Corporation and the Utility suspended quarterly cash dividends on both PG&E Corporation’s and the Utility’s common stock, beginning the fourth quarter of 2017, as well as the Utility’s preferred stock, beginning the three-month period ending January 31, 2018. Subject to the dividend restrictions as described in Note 6 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K, any decision to declare and pay dividends in the future will be made at the discretion of the Boards of Directors and will depend on, among other things, results of operations, financial condition, cash requirements, contractual restrictions and other factors that the Boards of Directors may deem relevant. On February 8, 2022, the Board of Directors of the Utility authorized the payment of all cumulative and unpaid dividends on the Utility’s preferred stock as of January 31, 2022 totaling $59.1 million, payable on May 13, 2022, to holders of record on April 29, 2022 and declared a dividend on the Utility’s preferred stock totaling $3.5 million that will be accrued during the three-month period ending April 30, 2022, payable on May 15, 2022, to holders of record on April 29, 2022. It is uncertain when PG&E Corporation and the Utility will commence the payment of dividends on their common stock. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE PG&E Corporation’s basic EPS is calculated by dividing the income available for common shareholders by the weighted average number of common shares outstanding. PG&E Corporation applies the treasury stock method of reflecting the dilutive effect of outstanding share-based compensation in the calculation of diluted EPS. The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average common shares outstanding for calculating diluted EPS: Three Months Ended March 31, (in millions, except per share amounts) 2022 2021 Income available for common shareholders $ 475 $ 120 Weighted average common shares outstanding, basic 1,986 1,985 Add incremental shares from assumed conversions: Employee share-based compensation 8 5 Equity Units 140 141 Weighted average common shares outstanding, diluted 2,134 2,131 Total income per common share, diluted $ 0.22 $ 0.06 |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Use of Derivative Instruments The Utility is exposed to commodity price risk as a result of its electricity and natural gas procurement activities. Procurement costs are recovered through rates. The Utility uses both derivative and non-derivative contracts to manage volatility in customer rates due to fluctuating commodity prices. Derivatives include contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded either on an exchange or over-the-counter. Derivatives are presented in the Utility’s Condensed Consolidated Balance Sheets and recorded at fair value and on a net basis in accordance with master netting arrangements for each counterparty. The fair value of derivative instruments is further offset by cash collateral paid or received where the right of offset and the intention to offset exist. Price risk management activities that meet the definition of derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets. These instruments are not held for speculative purposes and are subject to certain regulatory requirements. The Utility expects to fully recover through rates all costs related to derivatives under the applicable ratemaking mechanism in place as long as the Utility’s price risk management activities are carried out in accordance with CPUC directives. Therefore, all unrealized gains and losses associated with the change in fair value of these derivatives are deferred and recorded within the Utility’s regulatory assets and liabilities on the Condensed Consolidated Balance Sheets. Net realized gains or losses on commodity derivatives are recorded in the cost of electricity or the cost of natural gas with corresponding increases or decreases to regulatory balancing accounts for recovery from or refund to customers. The Utility elects the normal purchase and sale exception for eligible derivatives. Eligible derivatives are those that require physical delivery in quantities that are expected to be used by the Utility over a reasonable period in the normal course of business, and do not contain pricing provisions unrelated to the commodity delivered. These items are not reflected in the Condensed Consolidated Balance Sheets at fair value. Volume of Derivative Activity The volumes of the Utility’s outstanding derivatives were as follows: Contract Volume at Underlying Product Instruments March 31, 2022 December 31, 2021 Natural Gas (1) (MMBtus (2) ) Forwards, Futures and Swaps 187,529,848 173,361,635 Options 7,450,000 14,420,000 Electricity (Megawatt-hours) Forwards, Futures and Swaps 11,155,427 10,283,639 Options 543,600 288,000 Congestion Revenue Rights (3) 235,009,420 239,857,610 (1) Amounts shown are for the combined positions of the electric fuels and core gas supply portfolios. (2) Million British Thermal Units. (3) CRRs are financial instruments that enable the holders to manage variability in electric energy congestion charges due to transmission grid limitations. Presentation of Derivative Instruments in the Financial Statements As of March 31, 2022, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 76 $ (5) $ 49 $ 120 Other noncurrent assets – other 165 — — 165 Current liabilities – other (61) 5 20 (36) Noncurrent liabilities – other (213) — — (213) Total commodity risk $ (33) $ — $ 69 $ 36 As of December 31, 2021, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 58 $ (9) $ 152 $ 201 Other noncurrent assets – other 169 — — 169 Current liabilities – other (53) 9 18 (26) Noncurrent liabilities – other (216) — — (216) Total commodity risk $ (42) $ — $ 170 $ 128 Cash inflows and outflows associated with derivatives are included in operating cash flows on the Utility’s Condensed Consolidated Statements of Cash Flows. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS PG&E Corporation and the Utility measure their cash equivalents, trust assets, and price risk management instruments at fair value. A three-tier fair value hierarchy is established that prioritizes the inputs to valuation methodologies used to measure fair value: • Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Other inputs that are directly or indirectly observable in the marketplace. • Level 3 – Unobservable inputs which are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements At March 31, 2022 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 245 $ — $ — $ — $ 245 Nuclear decommissioning trusts Short-term investments 73 — — — 73 Global equity securities 2,297 — — — 2,297 Fixed-income securities 1,135 831 — — 1,966 Assets measured at NAV — — — — 30 Total nuclear decommissioning trusts (2) 3,505 831 — — 4,366 Price risk management instruments (Note 8) Electricity — 27 209 4 240 Gas — 5 — 40 45 Total price risk management instruments — 32 209 44 285 Rabbi trusts Fixed-income securities — 99 — — 99 Life insurance contracts — 73 — — 73 Total rabbi trusts — 172 — — 172 Long-term disability trust Short-term investments 6 — — — 6 Assets measured at NAV — — — — 145 Total long-term disability trust 6 — — — 151 TOTAL ASSETS $ 3,756 $ 1,035 $ 209 $ 44 $ 5,219 Liabilities: Price risk management instruments (Note 8) Electricity $ — $ 30 $ 233 $ (16) $ 247 Gas — 11 — (9) 2 TOTAL LIABILITIES $ — $ 41 $ 233 $ (25) $ 249 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $731 million primarily related to deferred taxes on appreciation of investment value. Fair Value Measurements December 31, 2021 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 289 $ — $ — $ — $ 289 Nuclear decommissioning trusts Short-term investments 22 — — — 22 Global equity securities 2,504 — — — 2,504 Fixed-income securities 1,158 866 — — 2,024 Assets measured at NAV — — — — 31 Total nuclear decommissioning trusts (2) 3,684 866 — — 4,581 Price risk management instruments (Note 8) Electricity — 9 214 6 229 Gas — 4 — 137 141 Total price risk management instruments — 13 214 143 370 Rabbi trusts Fixed-income securities — 104 — — 104 Life insurance contracts — 76 — — 76 Total rabbi trusts — 180 — — 180 Long-term disability trust Short-term investments 6 — — — 6 Assets measured at NAV — — — — 132 Total long-term disability trust 6 — — — 138 TOTAL ASSETS $ 3,979 $ 1,059 $ 214 $ 143 $ 5,558 Liabilities: Price risk management instruments (Note 8) Electricity — 11 248 (24) 235 Gas — 10 — (3) 7 TOTAL LIABILITIES $ — $ 21 $ 248 $ (27) $ 242 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $783 million, primarily related to deferred taxes on appreciation of investment value. Valuation Techniques The following describes the valuation techniques used to measure the fair value of the assets and liabilities shown in the tables above. There are no restrictions on the terms and conditions upon which the investments may be redeemed. There were no material transfers between any levels for the three months ended March 31, 2022 and 2021. Trust Assets Assets Measured at Fair Value In general, investments held in the trusts are exposed to various risks, such as interest rate, credit, and market volatility risks. Nuclear decommissioning trust assets 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, credit securities and asset-backed securities. Price Risk Management Instruments Price risk management instruments include physical and financial derivative contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded either on an exchange or over-the-counter. Power purchase agreements, forwards, and swaps are valued using a discounted cash flow model. Exchange-traded futures that are valued using observable market forward prices for the underlying commodity are classified as Level 1. Over-the-counter forwards and swaps that are identical to exchange-traded futures, or are valued using forward prices from broker quotes that are corroborated with market data are classified as Level 2. Exchange-traded options are valued using observable market data and market-corroborated data and are classified as Level 2. Long-dated power purchase agreements that are valued using significant unobservable data are classified as Level 3. These Level 3 contracts are valued using either estimated basis adjustments from liquid trading points or techniques, including extrapolation from observable prices, when a contract term extends beyond a period for which market data is available. The Utility utilizes models to derive pricing inputs for the valuation of the Utility’s Level 3 instruments using pricing inputs from brokers and historical data. The Utility holds CRRs to hedge the financial risk of CAISO-imposed congestion charges in the day-ahead market. Limited market data is available in the CAISO auction and between auction dates; therefore, the Utility utilizes historical prices to forecast forward prices. CRRs are classified as Level 3. Level 3 Measurements and Uncertainty Analysis Inputs used and the fair value of Level 3 instruments are reviewed period-over-period and compared with market conditions to determine reasonableness. Significant increases or decreases in any of those inputs would result in a significantly higher or lower fair value, respectively. All reasonable costs related to Level 3 instruments are expected to be recoverable through rates; therefore, there is no impact to net income resulting from changes in the fair value of these instruments. See Note 8 above. Fair Value at (in millions) At March 31, 2022 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 180 $ 95 Market approach CRR auction prices $ (2,265.69) - 2,265.94 / 0.41 Power purchase agreements $ 29 $ 138 Discounted cash flow Forward prices $ (6.75) - 247.15 / 50.98 (1) Represents price per megawatt-hour. (2) Unobservable inputs were weighted by the relative fair value of the instruments. Fair Value at (in millions) At December 31, 2021 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 188 $ 93 Market approach CRR auction prices $ (40.77) - 2,265.94 / 0.40 Power purchase agreements $ 26 $ 155 Discounted cash flow Forward prices $ (7.97) - 256.20 / 47.17 (1) Represents price per megawatt-hour. (2) Unobservable inputs were weighted by the relative fair value of the instruments. Level 3 Reconciliation The following table presents the reconciliation for Level 3 price risk management instruments for the three months ended March 31, 2022 and 2021, respectively: Price Risk Management Instruments (in millions) 2022 2021 Liability balance as of January 1 $ (34) $ (72) Net realized and unrealized gains: Included in regulatory assets and liabilities or balancing accounts (1) 10 (22) Liability balance as of March 31 $ (24) $ (94) (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 as of March 31, 2022 and December 31, 2021, as they are short-term in nature. The carrying amount and fair value of PG&E Corporation’s and the Utility’s long-term debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values): At March 31, 2022 At December 31, 2021 (in millions) Carrying Amount Level 2 Fair Value Carrying Amount Level 2 Fair Value Debt (Note 5) PG&E Corporation $ 4,618 $ 4,610 $ 4,619 $ 4,796 Utility 32,704 30,702 31,816 35,803 Nuclear Decommissioning Trust Investments The following table provides a summary of equity securities and available-for-sale debt securities: (in millions) Amortized Total Total Total Fair As of March 31, 2022 Nuclear decommissioning trusts Short-term investments $ 73 $ — $ — $ 73 Global equity securities 468 1,876 (17) 2,327 Fixed-income securities 2,005 38 (77) 1,966 Total (1) $ 2,546 $ 1,914 $ (94) $ 4,366 As of December 31, 2021 Nuclear decommissioning trusts Short-term investments $ 22 $ — $ — $ 22 Global equity securities 479 2,066 (10) 2,535 Fixed-income securities 1,938 98 (12) 2,024 Total (1) $ 2,439 $ 2,164 $ (22) $ 4,581 (1) Represents amounts before deducting $731 million and $783 million as of March 31, 2022 and December 31, 2021, respectively, primarily related to deferred taxes on appreciation of investment value. The fair value of fixed-income securities by contractual maturity is as follows: As of (in millions) March 31, 2022 Less than 1 year $ 8 1–5 years 611 5–10 years 458 More than 10 years 889 Total maturities of fixed-income securities $ 1,966 The following table provides a summary of activity for the fixed-income and equity securities: Three Months Ended March 31, (in millions) 2022 2021 Proceeds from sales and maturities of nuclear decommissioning investments $ 421 $ 551 Gross realized gains on securities 56 55 Gross realized losses on securities (7) (13) |
WILDFIRE-RELATED CONTINGENCIES
WILDFIRE-RELATED CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
WILDFIRE-RELATED CONTINGENCIES | WILDFIRE-RELATED CONTINGENCIES Liability Overview PG&E Corporation and the Utility have significant contingencies arising from their operations, including contingencies related to wildfires. A provision for a loss contingency is recorded when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. PG&E Corporation and the Utility evaluate which potential liabilities are probable and the related range of reasonably estimated losses and record a charge that reflects their best estimate or the lower end of the range, if there is no better estimate. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of losses is estimable, often involves a series of complex judgments about future events. Loss contingencies are reviewed quarterly, and estimates are adjusted to reflect the impact of all known information, such as negotiations (including those during mediations with claimants), discovery, settlements and payments, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. PG&E Corporation’s and the Utility’s provision for loss and expense excludes anticipated legal costs, which are expensed as incurred. PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows may be materially affected by the outcome of the following matters. The process for estimating losses associated with potential claims related to wildfires requires management to exercise significant judgment based on a number of assumptions and subjective factors, including the factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, including from potential claimants as litigation or resolution efforts progress, management estimates and assumptions regarding the potential financial impacts of wildfire events may change. Potential liabilities related to wildfires depend on various factors, including the cause of the fire, contributing causes of the fire (including alternative potential origins, weather- and climate-related issues, and forest management and fire suppression practices), the number, size and type of structures damaged or destroyed, the contents of such structures and other personal property damage, the number and types of trees damaged or destroyed, attorneys’ fees for claimants, the nature and extent of any personal injuries, including the loss of lives, the amount of fire suppression and clean-up costs, other damages the Utility may be responsible for if found negligent, and the amount of any penalties, fines, or restitution that may be imposed by courts or other governmental entities. Criminal charges have been filed against the Utility in connection with the 2020 Zogg fire. Under California law (including Penal Code section 1202.4), if the Utility were convicted of any of the charges, the sentencing court must order the Utility to “make restitution to the victim or victims in an amount established by court order” that is “sufficient to fully reimburse the victim or victims for every determined economic loss incurred as the result of” the Utility’s underlying conduct, in addition to interest and the victim’s or victims’ attorneys’ fees. This requirement for full reimbursement of economic loss is not waivable by either the government or the victims and is not offset by any compensation that the victims have received or may receive from their insurance carriers. If convicted of any of the charges, the Utility could be subject to fines, penalties, and restitution to victims for their economic losses (including property damage, medical and mental health expenses, lost wages, lost profits, attorneys’ fees and interest), as well as non-monetary remedies such as oversight requirements. In the event that the Utility were convicted of certain charges in connection with the 2020 Zogg fire, the Utility currently believes that, depending on which charges it were to be convicted of, its total losses associated with the fire would materially exceed the accrued estimated liabilities that PG&E Corporation and the Utility have recorded to reflect the lower end of the range of the reasonably estimable range of losses. The Utility is currently unable to determine a reasonable estimate of the amount of such additional losses. The Utility does not expect that any of its liability insurance would be available to cover restitution payments ordered by the court presiding over the criminal proceeding in connection with the 2020 Zogg fire. PG&E Corporation and the Utility are aware of numerous civil complaints related to the following wildfire events and expect that they may receive further such complaints. The complaints include claims based on multiple theories of liability, including inverse condemnation, negligence, violations of the Public Utilities Code, violations of the Health & Safety Code, premises liability, trespass, public nuisance and private nuisance. The plaintiffs in each action principally assert that PG&E Corporation’s and the Utility’s alleged failure to properly maintain, inspect, and de-energize their transmission lines was the cause of the relevant wildfire. The timing and outcome for resolution of any such claims or investigations are uncertain. The Utility believes it will continue to receive additional information from potential claimants in connection with these wildfire events as litigation or resolution efforts progress. Any such additional information may potentially allow PG&E Corporation and the Utility to refine the estimates of their accrued losses and may result in changes to the accrual depending on the information received. PG&E Corporation and the Utility intend to vigorously defend themselves against both criminal charges and civil complaints. If the Utility’s facilities, such as its electric distribution and transmission lines, are judicially determined to be the substantial cause of the following matters, and the doctrine of inverse condemnation applies, the Utility could be liable for property damage, business interruption, interest and attorneys’ fees without having been found negligent. California courts have imposed liability under the doctrine of inverse condemnation in legal actions brought by property holders against utilities on the grounds that losses borne by the person whose property was damaged through a public use undertaking should be spread across the community that benefited from such undertaking, and based on the assumption that utilities have the ability to recover these costs through rates. Further, California courts have determined that the doctrine of inverse condemnation is applicable regardless of whether the CPUC ultimately allows recovery by the utility for any such costs. The CPUC may decide not to authorize cost recovery even if a court decision were to determine that the Utility is liable as a result of the application of the doctrine of inverse condemnation. In addition to claims for property damage, business interruption, interest and attorneys’ fees under inverse condemnation, PG&E Corporation and the Utility could be liable for fire suppression costs, evacuation costs, medical expenses, personal injury damages, punitive damages and other damages under other theories of liability in connection with the following wildfire events, including if PG&E Corporation or the Utility were found to have been negligent. PG&E Corporation and the Utility currently believe that it is reasonably possible that the amount of loss could be greater than the accrued estimated amounts but are unable to reasonably estimate the additional loss and the upper end of the range because, as described above, 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 and the outcome of the criminal proceeding initiated against the Utility in connection with the 2020 Zogg fire and three other fires in Shasta County, California. If the liability for wildfires were to exceed $1.0 billion in the aggregate in any Coverage Year, the Utility may be eligible to make a claim to the Wildfire Fund under AB 1054 to satisfy settled or finally adjudicated eligible claims in excess of such amount, except that claims related to the 2019 Kincade fire would be subject to the 40% limitation on the allowed amount of claims arising before emergence from bankruptcy. PG&E Corporation and the Utility intend to continue to review the available information and other information as it becomes available, including evidence in the possession of Cal Fire or the relevant district attorney’s office, 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 damages and losses, the nature, number and severity of personal injuries, and information made available through the discovery process. 2019 Kincade Fire According to Cal Fire, on October 23, 2019 at approximately 9:27 p.m. Pacific Time, a wildfire began northeast of Geyserville in Sonoma County, California (the “2019 Kincade fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated March 3, 2020, 3:35 p.m. Pacific Time, the 2019 Kincade fire consumed 77,758 acres and resulted in no fatalities, four first responder injuries, 374 structures destroyed, and 60 structures damaged. In connection with the 2019 Kincade fire, state and local officials issued numerous mandatory evacuation orders and evacuation warnings. Based on County of Sonoma information, PG&E Corporation and the Utility understand that the geographic zones subject to either a mandatory evacuation order or an evacuation warning between October 23, 2019 and November 4, 2019 included approximately 200,000 persons. On July 16, 2020, Cal Fire issued a press release with its determination that the Utility’s equipment caused the 2019 Kincade fire. On April 6, 2021, the Sonoma County District Attorney’s Office (“the Sonoma D.A.”) filed the Kincade Complaint charging the Utility with five felonies and 28 misdemeanors related to the 2019 Kincade fire. On April 6, 2021, PG&E Corporation announced that it disputed the charges in the Kincade Complaint. It further announced that it would accept Cal Fire’s finding that a Utility transmission line caused the 2019 Kincade fire. On May 11, 2021, the Utility filed a demurrer to 25 of the 33 counts contained in the Kincade Complaint. At a hearing on September 9, 2021, the Sonoma County Superior Court overruled the demurrer. On January 28, 2022, the Sonoma D.A. filed the Kincade Amended Complaint, which replaced two felonies with five different felonies and dropped six misdemeanor counts. On April 8, 2022, the Utility and the Sonoma D.A. filed a civil stipulated judgment to resolve the criminal prosecution of the Utility in connection with the 2019 Kincade fire (the “Kincade Stipulation”) without the Utility admitting any liability. Subject to the terms and conditions of the Kincade Stipulation, the Utility will pay a total of $20.25 million, which will not be recoverable through rates. Pursuant to the Kincade Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving Sonoma County; (ii) take certain wildfire mitigation actions consistent with its WMP; and (iii) engage an independent compliance monitor for at least five years to monitor the Utility’s compliance with certain commitments under the Kincade Stipulation, including its commitments to carry out vegetation management and equipment inspections in Sonoma County consistent with its WMP. After the Kincade Stipulation was entered by the Sonoma County Superior Court, the Sonoma D.A. moved to dismiss the Kincade Amended Complaint with prejudice, and the court granted the motion. As of March 31, 2022, PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements reflected $20.25 million within Other current liabilities in connection with the Kincade Stipulation. On December 2, 2021, the CPUC approved a settlement between the SED and the Utility (the “Kincade SED Settlement”). The Kincade SED Settlement resolves SED’s investigation into the 2019 Kincade fire and provides for the removal of approximately 70 transmission lines or portions of lines that are no longer in service and are de-energized but have not been removed as required by CPUC rules. The Kincade SED Settlement provides that the Utility (i) will pay $40 million to California’s General Fund; (ii) will remove permanently abandoned transmission lines over a ten-year period; and (iii) must incur $85 million of the costs of such work by December 31, 2024, and it may not seek recovery of this $85 million of costs. SED agreed to refrain from instituting enforcement proceedings against the Utility for not having removed the lines previously. The Kincade SED Settlement states that it does not constitute an admission by the Utility of violations of GOs or statutory requirements. As of March 31, 2022, PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements reflected $40 million within Other current liabilities in connection with the Kincade SED Settlement. For the $85 million of cost of removal that the Utility will not seek recovery, the Utility recorded such disallowances in the first quarter of 2022 upon identification of the facilities to be removed. On January 10, 2022, TURN filed an application for rehearing of the Kincade SED Settlement. On January 25, 2022, the Utility filed an opposition to the application for rehearing. On April 21, 2022, the CPUC granted TURN’s application for the limited purpose of requiring SED to include in the decision approving the settlement an analysis of the appropriate penalty using the CPUC’s methodology and denied TURN’s application in all other respects. As of April 21, 2022, PG&E Corporation and the Utility are aware of approximately 103 complaints on behalf of at least 2,656 plaintiffs related to the 2019 Kincade fire. The plaintiffs filed master complaints on July 16, 2021; PG&E Corporation’s and the Utility’s response was filed on August 16, 2021; and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. In addition, on January 5, 2022, Cal Fire filed a complaint in the coordinated proceeding seeking to recover approximately $90 million for fire suppression and other costs incurred in connection with the 2019 Kincade fire. PG&E Corporation and the Utility filed an answer to Cal Fire’s complaint on February 4, 2022. Following a November 5, 2021 hearing, the San Francisco County Superior Court set a trial date of November 7, 2022. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2019 Kincade fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $800 million as of December 31, 2021 (before available insurance). The aggregate liability remained unchanged as of March 31, 2022. The Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility (other than as described above), (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2019 Kincade fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 769 Accrued Losses — Payments (4) Balance at March 31, 2022 $ 765 The Utility has liability insurance coverage for third-party liability attributable to the 2019 Kincade fire in an aggregate amount of $430 million. As of March 31, 2022, the Utility recorded an insurance receivable for the full amount of the $430 million. 2020 Zogg Fire According to Cal Fire, on September 27, 2020, at approximately 4:03 p.m. Pacific Time, a wildfire began in the area of Zogg Mine Road and Jenny Bird Lane, north of Igo in Shasta County, California (the “2020 Zogg fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated October 16, 2020, 3:08 p.m. Pacific Time, the 2020 Zogg fire consumed 56,338 acres and resulted in four fatalities, one injury, 204 structures destroyed, and 27 structures damaged. On March 22, 2021, Cal Fire issued a press release with its determination that the 2020 Zogg fire was caused by a pine tree contacting electrical facilities owned and operated by the Utility located north of the community of Igo. On September 24, 2021, the Shasta County District Attorney’s Office filed the Zogg Complaint charging the Utility with 11 felonies and 20 misdemeanors related to the 2020 Zogg fire, the 2020 Daniel fire, the 2020 Ponder fire, and the 2021 Woody fire. On September 24, 2021, PG&E Corporation and the Utility announced that they disputed the charges in the Zogg Complaint. They further announced that they would accept Cal Fire’s finding that a Utility electric line caused the 2020 Zogg fire, even though PG&E Corporation and the Utility did not have access to all of the evidence that Cal Fire gathered. On November 18, 2021, the Utility filed a demurrer to 10 of the 31 counts contained in the Zogg Complaint. A hearing on the demurrer is set for May 2, 2022 in Shasta County Superior Court. Various other entities, which may include other law enforcement agencies, may also be investigating the fire. It is uncertain when any such investigations will be complete. As of April 21, 2022, PG&E Corporation and the Utility are aware of approximately 23 complaints on behalf of at least 449 plaintiffs related to the 2020 Zogg fire. The plaintiffs seek damages that include wrongful death, property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. The plaintiffs filed master complaints on August 6, 2021, and PG&E Corporation’s and the Utility’s answer was filed on September 7, 2021, and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. The trial is set for February 6, 2023. In addition, on March 18, 2022, Cal Fire filed a complaint in the coordinated proceeding seeking to recover approximately $34.5 million for fire suppression and other costs incurred in connection with the 2020 Zogg fire. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2020 Zogg fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $375 million as of December 31, 2021 (before available insurance). The aggregate liability remained unchanged as of March 31, 2022. The Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties, fines, or restitution that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2020 Zogg fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 211 Accrued Losses — Payments (34) Balance at March 31, 2022 $ 177 The Utility has liability insurance for third-party liability attributable to the 2020 Zogg fire in an aggregate amount of $611 million. As of March 31, 2022, the Utility recorded an insurance receivable for $338 million for probable insurance recoveries in connection with the 2020 Zogg fire, which equals the $375 million probable loss estimate less an initial self-insured retention of $60 million, plus $23 million in legal fees incurred. Recovery under the Utility’s wildfire insurance policies for the 2021 Dixie fire will reduce the amount of insurance proceeds available for the 2020 Zogg fire by the same amount up to $600 million and vice versa. 2021 Dixie Fire According to Cal Fire, on July 13, 2021, at approximately 5:15 p.m. Pacific Time, a wildfire began in the Feather River Canyon near Cresta Dam (the “2021 Dixie fire”), located in the service territory of the Utility. According to a Cal Fire incident update, dated October 25, 2021, 7:46 a.m. Pacific Time, the 2021 Dixie fire consumed 963,309 acres and resulted in 1,329 structures destroyed (including 717 residential, 143 commercial, and 443 other structures), 95 structures damaged, and one fatality, which according to published reports was a fire fighter who passed away due to COVID-19 after returning home from the 2021 Dixie fire. On January 4, 2022, Cal Fire issued a press release with its determination that the 2021 Dixie fire was caused by a tree contacting electrical distribution lines owned and operated by the Utility. The District Attorneys’ Offices of Butte County, Plumas County, Shasta County, Lassen County and Tehama County (the “North State Counties”), as well as the SED and OEIS, have been investigating the fire; various other entities, which may include other state and federal law enforcement agencies, may also be investigating the fire. The United States Attorney’s Office for the Eastern District of California issued a subpoena for documents as well. PG&E Corporation and the Utility are cooperating with the investigations. Except for the investigation by the District Attorneys of the North State Counties, it is uncertain when any other such investigations will be complete. PG&E Corporation and the Utility are also conducting their own investigation into the cause of the 2021 Dixie fire. This investigation is ongoing, and PG&E Corporation and the Utility do not have access to all of the evidence in the possession of Cal Fire or other third parties. On April 11, 2022, the Utility and the District Attorneys of the North State Counties filed a civil stipulated judgment to permanently resolve any potential state criminal prosecution of the Utility in connection with the 2021 Dixie fire (the “Dixie Stipulation”) without the Utility admitting any liability, and the Court entered the Judgment on that same date. Subject to the terms and conditions of the Dixie Stipulation, the Utility will pay a total of $34.75 million, which will not be recoverable through rates. Pursuant to the Dixie Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving the North State Counties; (ii) take certain other wildfire mitigation actions consistent with its WMP; (iii) engage an independent compliance monitor for five years to monitor the Utility’s compliance with certain commitments under the Dixie Stipulation, including its commitments to carry out vegetation management and equipment inspections in the North State Counties consistent with its WMP; (iv) take good faith steps to initiate mediations with certain commercial timber landowners; and (v) initiate an expedited compensation program under which individuals whose homes, including mobile homes, were destroyed by the 2021 Dixie fire can submit an electronic claim form and supporting documentation, and the Utility will make them an offer to resolve their loss based on an objective, pre-determined valuation framework. The Dixie Stipulation also permanently resolved any potential state criminal prosecution of the Utility in connection with the 2021 Fly fire, which merged with the 2021 Dixie fire. As of March 31, 2022, PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements reflected $34.75 million within Other current liabilities in connection with the Dixie Stipulation. As of April 21, 2022, PG&E Corporation and the Utility are aware of approximately 32 complaints on behalf of at least 1,122 plaintiffs related to the 2021 Dixie fire and expect that they may receive further such complaints. The plaintiffs seek damages that include property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2021 Dixie fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $1.15 billion as of the year ended December 31, 2021 (before available recoveries). The aggregate liability remained unchanged as of March 31, 2022. The Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility (other than as described above), (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies including for state or federal fire suppression costs and damages related to federal land, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. As noted above, the aggregate estimated liability for claims in connection with the 2021 Dixie fire does not include potential claims for fire suppression costs from federal, state, county, or local agencies or damage to land and vegetation in national parks or national forests. As to these damages, PG&E Corporation and the Utility have not concluded that a loss is probable due to the incomplete information available to PG&E Corporation and the Utility as of the date of this filing as to facts pertinent to potential claims and defenses. Moreover, PG&E Corporation and the Utility are currently unable to reasonably estimate the range of possible losses for any such claims due to, among other factors, incomplete information as to facts pertinent to potential claims and defenses, as well as facts that would bear on the amount, type, and valuation of vegetation loss, potential reforestation, habitat loss, and other resources damaged or destroyed by the 2021 Dixie fire. PG&E Corporation and the Utility believe, however, that such losses could be significant with respect to fire suppression costs due to the size and duration of the 2021 Dixie fire and corresponding magnitude of fire suppression resources dedicated to fighting the 2021 Dixie fire and with respect to claims for damage to land and vegetation in national parks or national forests due to the very large number of acres of national park and national forests that were affected by the 2021 Dixie fire. According to the National Interagency Coordination Center Incident Management Situation Report dated October 29, 2021 at 7:30 a.m. Mountain Time, over $630 million of costs had been incurred in suppressing the 2021 Dixie fire. The Utility currently estimates that the fire burned approximately 70,000 acres of national parks and approximately 685,000 acres of national forests. The Utility has liability insurance coverage for third-party liability in an aggregate amount of $900 million. Recovery under the Utility’s wildfire insurance policies for the 2020 Zogg fire will reduce the amount of insurance proceeds available for the 2021 Dixie fire by the same amount up to $600 million and vice versa. As of March 31, 2022, the Utility recorded an insurance receivable of $562 million for probable insurance recoveries in connection with the 2021 Dixie fire, which equals the aggregate $900 million of available insurance coverage for third-party liability attributable to the 2021 Dixie fire, less the $338 million insurance receivable recorded in connection with the 2020 Zogg fire. As of March 31, 2022, the Utility recorded a Wildfire Fund receivable of $150 million for probable recoveries in connection with the 2021 Dixie fire. See “Wildfire Fund under AB 1054” below. The Utility also recorded a $102 million reduction to its regulatory liability for wildfire-related claims costs that were determined to be probable of recovery through the FERC TO formula rate and a $350 million regulatory asset for costs that were determined to be probable of recovery through the WEMA. See “Regulatory Recovery” below. Decreases in the amount of the insurance receivable for the 2021 Dixie fire may also increase the amount that is probable of recovery through the FERC TO formula rate and the WEMA. An immaterial increase was recorded in the first quarter of 2022. Loss Recoveries PG&E Corporation and the Utility have recovery mechanisms available for wildfire liabilities including from insurance, customers, and the Wildfire Fund. PG&E Corporation and the Utility record a receivable for a recovery when it is deemed probable that recovery of a recorded loss will occur, and the Utility can reasonably estimate the amount or its range. While the Utility plans to seek recovery of all insured losses, it is unable to predict the ultimate amount and timing of such insurance recoveries. Total probable recoveries for the 2021 Dixie fire as of March 31, 2022 are: Potential Recovery Source (in millions) 2021 Dixie fire Insurance $ 562 FERC TO rates 102 WEMA 350 Wildfire Fund 150 Probable recoveries at March 31, 2022 $ 1,164 The Utility could be subject to significant liability in connection with these wildfire events. If such liability is not recoverable from insurance or the other mechanisms described herein, it could have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows. Insurance Coverage In April 2022, the Utility purchased approximately $340 million in wildfire liability insurance coverage for the period from April 1, 2022 to April 1, 2023, at a cost of approximately $263 million. Additionally, the Utility purchased approximately $600 million in existing wildfire liability insurance in August 2021 for the period from August 1, 2021 to August 1, 2022, which is scheduled to renew in August 2022 for an additional coverage period of August 1, 2022 to August 1, 2023, at a cost of approximately $516 million. The Utility’s wildfire liability insurance is subject to an initial self-insured retention of $60 million. In April 2022, the Utility purchased approximately $725 million in non-wildfire liability coverage for the period from April 1, 2022 to April 1, 2023 at a cost of approximately $154 million. The Utility’s non-wildfire liability insurance is subject to an initial self-insured retention of $10 million. Various coverage limitations applicable to different insurance layers could result in material uninsured costs in the future depending on the amount and type of damages resulting from covered events. In the Utility’s 2020 GRC proceeding, the CPUC also approved a settlement agreement provision that allows the Utility to recover annual insurance costs for up to $1.4 billion in excess liability insurance coverage. For more information about the RTBA, see Note 4 above. Insurance Receivable Through March 31, 2022, PG&E Corporation a |
OTHER CONTINGENCIES AND COMMITM
OTHER CONTINGENCIES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER CONTINGENCIES AND COMMITMENTS | WILDFIRE-RELATED CONTINGENCIES Liability Overview PG&E Corporation and the Utility have significant contingencies arising from their operations, including contingencies related to wildfires. A provision for a loss contingency is recorded when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. PG&E Corporation and the Utility evaluate which potential liabilities are probable and the related range of reasonably estimated losses and record a charge that reflects their best estimate or the lower end of the range, if there is no better estimate. The assessment of whether a loss is probable or reasonably possible, and whether the loss or a range of losses is estimable, often involves a series of complex judgments about future events. Loss contingencies are reviewed quarterly, and estimates are adjusted to reflect the impact of all known information, such as negotiations (including those during mediations with claimants), discovery, settlements and payments, rulings, advice of legal counsel, and other information and events pertaining to a particular matter. PG&E Corporation’s and the Utility’s provision for loss and expense excludes anticipated legal costs, which are expensed as incurred. PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows may be materially affected by the outcome of the following matters. The process for estimating losses associated with potential claims related to wildfires requires management to exercise significant judgment based on a number of assumptions and subjective factors, including the factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, including from potential claimants as litigation or resolution efforts progress, management estimates and assumptions regarding the potential financial impacts of wildfire events may change. Potential liabilities related to wildfires depend on various factors, including the cause of the fire, contributing causes of the fire (including alternative potential origins, weather- and climate-related issues, and forest management and fire suppression practices), the number, size and type of structures damaged or destroyed, the contents of such structures and other personal property damage, the number and types of trees damaged or destroyed, attorneys’ fees for claimants, the nature and extent of any personal injuries, including the loss of lives, the amount of fire suppression and clean-up costs, other damages the Utility may be responsible for if found negligent, and the amount of any penalties, fines, or restitution that may be imposed by courts or other governmental entities. Criminal charges have been filed against the Utility in connection with the 2020 Zogg fire. Under California law (including Penal Code section 1202.4), if the Utility were convicted of any of the charges, the sentencing court must order the Utility to “make restitution to the victim or victims in an amount established by court order” that is “sufficient to fully reimburse the victim or victims for every determined economic loss incurred as the result of” the Utility’s underlying conduct, in addition to interest and the victim’s or victims’ attorneys’ fees. This requirement for full reimbursement of economic loss is not waivable by either the government or the victims and is not offset by any compensation that the victims have received or may receive from their insurance carriers. If convicted of any of the charges, the Utility could be subject to fines, penalties, and restitution to victims for their economic losses (including property damage, medical and mental health expenses, lost wages, lost profits, attorneys’ fees and interest), as well as non-monetary remedies such as oversight requirements. In the event that the Utility were convicted of certain charges in connection with the 2020 Zogg fire, the Utility currently believes that, depending on which charges it were to be convicted of, its total losses associated with the fire would materially exceed the accrued estimated liabilities that PG&E Corporation and the Utility have recorded to reflect the lower end of the range of the reasonably estimable range of losses. The Utility is currently unable to determine a reasonable estimate of the amount of such additional losses. The Utility does not expect that any of its liability insurance would be available to cover restitution payments ordered by the court presiding over the criminal proceeding in connection with the 2020 Zogg fire. PG&E Corporation and the Utility are aware of numerous civil complaints related to the following wildfire events and expect that they may receive further such complaints. The complaints include claims based on multiple theories of liability, including inverse condemnation, negligence, violations of the Public Utilities Code, violations of the Health & Safety Code, premises liability, trespass, public nuisance and private nuisance. The plaintiffs in each action principally assert that PG&E Corporation’s and the Utility’s alleged failure to properly maintain, inspect, and de-energize their transmission lines was the cause of the relevant wildfire. The timing and outcome for resolution of any such claims or investigations are uncertain. The Utility believes it will continue to receive additional information from potential claimants in connection with these wildfire events as litigation or resolution efforts progress. Any such additional information may potentially allow PG&E Corporation and the Utility to refine the estimates of their accrued losses and may result in changes to the accrual depending on the information received. PG&E Corporation and the Utility intend to vigorously defend themselves against both criminal charges and civil complaints. If the Utility’s facilities, such as its electric distribution and transmission lines, are judicially determined to be the substantial cause of the following matters, and the doctrine of inverse condemnation applies, the Utility could be liable for property damage, business interruption, interest and attorneys’ fees without having been found negligent. California courts have imposed liability under the doctrine of inverse condemnation in legal actions brought by property holders against utilities on the grounds that losses borne by the person whose property was damaged through a public use undertaking should be spread across the community that benefited from such undertaking, and based on the assumption that utilities have the ability to recover these costs through rates. Further, California courts have determined that the doctrine of inverse condemnation is applicable regardless of whether the CPUC ultimately allows recovery by the utility for any such costs. The CPUC may decide not to authorize cost recovery even if a court decision were to determine that the Utility is liable as a result of the application of the doctrine of inverse condemnation. In addition to claims for property damage, business interruption, interest and attorneys’ fees under inverse condemnation, PG&E Corporation and the Utility could be liable for fire suppression costs, evacuation costs, medical expenses, personal injury damages, punitive damages and other damages under other theories of liability in connection with the following wildfire events, including if PG&E Corporation or the Utility were found to have been negligent. PG&E Corporation and the Utility currently believe that it is reasonably possible that the amount of loss could be greater than the accrued estimated amounts but are unable to reasonably estimate the additional loss and the upper end of the range because, as described above, 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 and the outcome of the criminal proceeding initiated against the Utility in connection with the 2020 Zogg fire and three other fires in Shasta County, California. If the liability for wildfires were to exceed $1.0 billion in the aggregate in any Coverage Year, the Utility may be eligible to make a claim to the Wildfire Fund under AB 1054 to satisfy settled or finally adjudicated eligible claims in excess of such amount, except that claims related to the 2019 Kincade fire would be subject to the 40% limitation on the allowed amount of claims arising before emergence from bankruptcy. PG&E Corporation and the Utility intend to continue to review the available information and other information as it becomes available, including evidence in the possession of Cal Fire or the relevant district attorney’s office, 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 damages and losses, the nature, number and severity of personal injuries, and information made available through the discovery process. 2019 Kincade Fire According to Cal Fire, on October 23, 2019 at approximately 9:27 p.m. Pacific Time, a wildfire began northeast of Geyserville in Sonoma County, California (the “2019 Kincade fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated March 3, 2020, 3:35 p.m. Pacific Time, the 2019 Kincade fire consumed 77,758 acres and resulted in no fatalities, four first responder injuries, 374 structures destroyed, and 60 structures damaged. In connection with the 2019 Kincade fire, state and local officials issued numerous mandatory evacuation orders and evacuation warnings. Based on County of Sonoma information, PG&E Corporation and the Utility understand that the geographic zones subject to either a mandatory evacuation order or an evacuation warning between October 23, 2019 and November 4, 2019 included approximately 200,000 persons. On July 16, 2020, Cal Fire issued a press release with its determination that the Utility’s equipment caused the 2019 Kincade fire. On April 6, 2021, the Sonoma County District Attorney’s Office (“the Sonoma D.A.”) filed the Kincade Complaint charging the Utility with five felonies and 28 misdemeanors related to the 2019 Kincade fire. On April 6, 2021, PG&E Corporation announced that it disputed the charges in the Kincade Complaint. It further announced that it would accept Cal Fire’s finding that a Utility transmission line caused the 2019 Kincade fire. On May 11, 2021, the Utility filed a demurrer to 25 of the 33 counts contained in the Kincade Complaint. At a hearing on September 9, 2021, the Sonoma County Superior Court overruled the demurrer. On January 28, 2022, the Sonoma D.A. filed the Kincade Amended Complaint, which replaced two felonies with five different felonies and dropped six misdemeanor counts. On April 8, 2022, the Utility and the Sonoma D.A. filed a civil stipulated judgment to resolve the criminal prosecution of the Utility in connection with the 2019 Kincade fire (the “Kincade Stipulation”) without the Utility admitting any liability. Subject to the terms and conditions of the Kincade Stipulation, the Utility will pay a total of $20.25 million, which will not be recoverable through rates. Pursuant to the Kincade Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving Sonoma County; (ii) take certain wildfire mitigation actions consistent with its WMP; and (iii) engage an independent compliance monitor for at least five years to monitor the Utility’s compliance with certain commitments under the Kincade Stipulation, including its commitments to carry out vegetation management and equipment inspections in Sonoma County consistent with its WMP. After the Kincade Stipulation was entered by the Sonoma County Superior Court, the Sonoma D.A. moved to dismiss the Kincade Amended Complaint with prejudice, and the court granted the motion. As of March 31, 2022, PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements reflected $20.25 million within Other current liabilities in connection with the Kincade Stipulation. On December 2, 2021, the CPUC approved a settlement between the SED and the Utility (the “Kincade SED Settlement”). The Kincade SED Settlement resolves SED’s investigation into the 2019 Kincade fire and provides for the removal of approximately 70 transmission lines or portions of lines that are no longer in service and are de-energized but have not been removed as required by CPUC rules. The Kincade SED Settlement provides that the Utility (i) will pay $40 million to California’s General Fund; (ii) will remove permanently abandoned transmission lines over a ten-year period; and (iii) must incur $85 million of the costs of such work by December 31, 2024, and it may not seek recovery of this $85 million of costs. SED agreed to refrain from instituting enforcement proceedings against the Utility for not having removed the lines previously. The Kincade SED Settlement states that it does not constitute an admission by the Utility of violations of GOs or statutory requirements. As of March 31, 2022, PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements reflected $40 million within Other current liabilities in connection with the Kincade SED Settlement. For the $85 million of cost of removal that the Utility will not seek recovery, the Utility recorded such disallowances in the first quarter of 2022 upon identification of the facilities to be removed. On January 10, 2022, TURN filed an application for rehearing of the Kincade SED Settlement. On January 25, 2022, the Utility filed an opposition to the application for rehearing. On April 21, 2022, the CPUC granted TURN’s application for the limited purpose of requiring SED to include in the decision approving the settlement an analysis of the appropriate penalty using the CPUC’s methodology and denied TURN’s application in all other respects. As of April 21, 2022, PG&E Corporation and the Utility are aware of approximately 103 complaints on behalf of at least 2,656 plaintiffs related to the 2019 Kincade fire. The plaintiffs filed master complaints on July 16, 2021; PG&E Corporation’s and the Utility’s response was filed on August 16, 2021; and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. In addition, on January 5, 2022, Cal Fire filed a complaint in the coordinated proceeding seeking to recover approximately $90 million for fire suppression and other costs incurred in connection with the 2019 Kincade fire. PG&E Corporation and the Utility filed an answer to Cal Fire’s complaint on February 4, 2022. Following a November 5, 2021 hearing, the San Francisco County Superior Court set a trial date of November 7, 2022. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2019 Kincade fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $800 million as of December 31, 2021 (before available insurance). The aggregate liability remained unchanged as of March 31, 2022. The Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility (other than as described above), (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2019 Kincade fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 769 Accrued Losses — Payments (4) Balance at March 31, 2022 $ 765 The Utility has liability insurance coverage for third-party liability attributable to the 2019 Kincade fire in an aggregate amount of $430 million. As of March 31, 2022, the Utility recorded an insurance receivable for the full amount of the $430 million. 2020 Zogg Fire According to Cal Fire, on September 27, 2020, at approximately 4:03 p.m. Pacific Time, a wildfire began in the area of Zogg Mine Road and Jenny Bird Lane, north of Igo in Shasta County, California (the “2020 Zogg fire”), located in the service territory of the Utility. According to a Cal Fire incident update dated October 16, 2020, 3:08 p.m. Pacific Time, the 2020 Zogg fire consumed 56,338 acres and resulted in four fatalities, one injury, 204 structures destroyed, and 27 structures damaged. On March 22, 2021, Cal Fire issued a press release with its determination that the 2020 Zogg fire was caused by a pine tree contacting electrical facilities owned and operated by the Utility located north of the community of Igo. On September 24, 2021, the Shasta County District Attorney’s Office filed the Zogg Complaint charging the Utility with 11 felonies and 20 misdemeanors related to the 2020 Zogg fire, the 2020 Daniel fire, the 2020 Ponder fire, and the 2021 Woody fire. On September 24, 2021, PG&E Corporation and the Utility announced that they disputed the charges in the Zogg Complaint. They further announced that they would accept Cal Fire’s finding that a Utility electric line caused the 2020 Zogg fire, even though PG&E Corporation and the Utility did not have access to all of the evidence that Cal Fire gathered. On November 18, 2021, the Utility filed a demurrer to 10 of the 31 counts contained in the Zogg Complaint. A hearing on the demurrer is set for May 2, 2022 in Shasta County Superior Court. Various other entities, which may include other law enforcement agencies, may also be investigating the fire. It is uncertain when any such investigations will be complete. As of April 21, 2022, PG&E Corporation and the Utility are aware of approximately 23 complaints on behalf of at least 449 plaintiffs related to the 2020 Zogg fire. The plaintiffs seek damages that include wrongful death, property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. The plaintiffs filed master complaints on August 6, 2021, and PG&E Corporation’s and the Utility’s answer was filed on September 7, 2021, and PG&E Corporation and the Utility filed a demurrer with respect to the plaintiffs’ inverse condemnation claims. On December 10, 2021, the court overruled the demurrer. The trial is set for February 6, 2023. In addition, on March 18, 2022, Cal Fire filed a complaint in the coordinated proceeding seeking to recover approximately $34.5 million for fire suppression and other costs incurred in connection with the 2020 Zogg fire. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2020 Zogg fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $375 million as of December 31, 2021 (before available insurance). The aggregate liability remained unchanged as of March 31, 2022. The Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties, fines, or restitution that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility, (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies other than state fire suppression costs, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2020 Zogg fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 211 Accrued Losses — Payments (34) Balance at March 31, 2022 $ 177 The Utility has liability insurance for third-party liability attributable to the 2020 Zogg fire in an aggregate amount of $611 million. As of March 31, 2022, the Utility recorded an insurance receivable for $338 million for probable insurance recoveries in connection with the 2020 Zogg fire, which equals the $375 million probable loss estimate less an initial self-insured retention of $60 million, plus $23 million in legal fees incurred. Recovery under the Utility’s wildfire insurance policies for the 2021 Dixie fire will reduce the amount of insurance proceeds available for the 2020 Zogg fire by the same amount up to $600 million and vice versa. 2021 Dixie Fire According to Cal Fire, on July 13, 2021, at approximately 5:15 p.m. Pacific Time, a wildfire began in the Feather River Canyon near Cresta Dam (the “2021 Dixie fire”), located in the service territory of the Utility. According to a Cal Fire incident update, dated October 25, 2021, 7:46 a.m. Pacific Time, the 2021 Dixie fire consumed 963,309 acres and resulted in 1,329 structures destroyed (including 717 residential, 143 commercial, and 443 other structures), 95 structures damaged, and one fatality, which according to published reports was a fire fighter who passed away due to COVID-19 after returning home from the 2021 Dixie fire. On January 4, 2022, Cal Fire issued a press release with its determination that the 2021 Dixie fire was caused by a tree contacting electrical distribution lines owned and operated by the Utility. The District Attorneys’ Offices of Butte County, Plumas County, Shasta County, Lassen County and Tehama County (the “North State Counties”), as well as the SED and OEIS, have been investigating the fire; various other entities, which may include other state and federal law enforcement agencies, may also be investigating the fire. The United States Attorney’s Office for the Eastern District of California issued a subpoena for documents as well. PG&E Corporation and the Utility are cooperating with the investigations. Except for the investigation by the District Attorneys of the North State Counties, it is uncertain when any other such investigations will be complete. PG&E Corporation and the Utility are also conducting their own investigation into the cause of the 2021 Dixie fire. This investigation is ongoing, and PG&E Corporation and the Utility do not have access to all of the evidence in the possession of Cal Fire or other third parties. On April 11, 2022, the Utility and the District Attorneys of the North State Counties filed a civil stipulated judgment to permanently resolve any potential state criminal prosecution of the Utility in connection with the 2021 Dixie fire (the “Dixie Stipulation”) without the Utility admitting any liability, and the Court entered the Judgment on that same date. Subject to the terms and conditions of the Dixie Stipulation, the Utility will pay a total of $34.75 million, which will not be recoverable through rates. Pursuant to the Dixie Stipulation, the Utility has also agreed to: (i) fill at least 80 new internal employee positions headquartered in or serving the North State Counties; (ii) take certain other wildfire mitigation actions consistent with its WMP; (iii) engage an independent compliance monitor for five years to monitor the Utility’s compliance with certain commitments under the Dixie Stipulation, including its commitments to carry out vegetation management and equipment inspections in the North State Counties consistent with its WMP; (iv) take good faith steps to initiate mediations with certain commercial timber landowners; and (v) initiate an expedited compensation program under which individuals whose homes, including mobile homes, were destroyed by the 2021 Dixie fire can submit an electronic claim form and supporting documentation, and the Utility will make them an offer to resolve their loss based on an objective, pre-determined valuation framework. The Dixie Stipulation also permanently resolved any potential state criminal prosecution of the Utility in connection with the 2021 Fly fire, which merged with the 2021 Dixie fire. As of March 31, 2022, PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements reflected $34.75 million within Other current liabilities in connection with the Dixie Stipulation. As of April 21, 2022, PG&E Corporation and the Utility are aware of approximately 32 complaints on behalf of at least 1,122 plaintiffs related to the 2021 Dixie fire and expect that they may receive further such complaints. The plaintiffs seek damages that include property damage, economic loss, punitive damages, exemplary damages, attorneys’ fees and other damages. Based on the current state of the law concerning inverse condemnation in California and the facts and circumstances available to PG&E Corporation and the Utility as of the date of this filing, including Cal Fire’s determination of the cause and the information gathered as part of PG&E Corporation’s and the Utility’s investigation, PG&E Corporation and the Utility believe it is probable that they will incur a loss in connection with the 2021 Dixie fire. PG&E Corporation and the Utility recorded a liability in the aggregate amount of $1.15 billion as of the year ended December 31, 2021 (before available recoveries). The aggregate liability remained unchanged as of March 31, 2022. The Utility’s accrued estimated losses do not include, among other things: (i) any amounts for potential penalties or fines that may be imposed by courts or other governmental entities on PG&E Corporation or the Utility (other than as described above), (ii) any punitive damages, (iii) any amounts in respect of compensation claims by federal or state agencies including for state or federal fire suppression costs and damages related to federal land, (iv) evacuation costs, or (v) any other amounts that are not reasonably estimable. As noted above, the aggregate estimated liability for claims in connection with the 2021 Dixie fire does not include potential claims for fire suppression costs from federal, state, county, or local agencies or damage to land and vegetation in national parks or national forests. As to these damages, PG&E Corporation and the Utility have not concluded that a loss is probable due to the incomplete information available to PG&E Corporation and the Utility as of the date of this filing as to facts pertinent to potential claims and defenses. Moreover, PG&E Corporation and the Utility are currently unable to reasonably estimate the range of possible losses for any such claims due to, among other factors, incomplete information as to facts pertinent to potential claims and defenses, as well as facts that would bear on the amount, type, and valuation of vegetation loss, potential reforestation, habitat loss, and other resources damaged or destroyed by the 2021 Dixie fire. PG&E Corporation and the Utility believe, however, that such losses could be significant with respect to fire suppression costs due to the size and duration of the 2021 Dixie fire and corresponding magnitude of fire suppression resources dedicated to fighting the 2021 Dixie fire and with respect to claims for damage to land and vegetation in national parks or national forests due to the very large number of acres of national park and national forests that were affected by the 2021 Dixie fire. According to the National Interagency Coordination Center Incident Management Situation Report dated October 29, 2021 at 7:30 a.m. Mountain Time, over $630 million of costs had been incurred in suppressing the 2021 Dixie fire. The Utility currently estimates that the fire burned approximately 70,000 acres of national parks and approximately 685,000 acres of national forests. The Utility has liability insurance coverage for third-party liability in an aggregate amount of $900 million. Recovery under the Utility’s wildfire insurance policies for the 2020 Zogg fire will reduce the amount of insurance proceeds available for the 2021 Dixie fire by the same amount up to $600 million and vice versa. As of March 31, 2022, the Utility recorded an insurance receivable of $562 million for probable insurance recoveries in connection with the 2021 Dixie fire, which equals the aggregate $900 million of available insurance coverage for third-party liability attributable to the 2021 Dixie fire, less the $338 million insurance receivable recorded in connection with the 2020 Zogg fire. As of March 31, 2022, the Utility recorded a Wildfire Fund receivable of $150 million for probable recoveries in connection with the 2021 Dixie fire. See “Wildfire Fund under AB 1054” below. The Utility also recorded a $102 million reduction to its regulatory liability for wildfire-related claims costs that were determined to be probable of recovery through the FERC TO formula rate and a $350 million regulatory asset for costs that were determined to be probable of recovery through the WEMA. See “Regulatory Recovery” below. Decreases in the amount of the insurance receivable for the 2021 Dixie fire may also increase the amount that is probable of recovery through the FERC TO formula rate and the WEMA. An immaterial increase was recorded in the first quarter of 2022. Loss Recoveries PG&E Corporation and the Utility have recovery mechanisms available for wildfire liabilities including from insurance, customers, and the Wildfire Fund. PG&E Corporation and the Utility record a receivable for a recovery when it is deemed probable that recovery of a recorded loss will occur, and the Utility can reasonably estimate the amount or its range. While the Utility plans to seek recovery of all insured losses, it is unable to predict the ultimate amount and timing of such insurance recoveries. Total probable recoveries for the 2021 Dixie fire as of March 31, 2022 are: Potential Recovery Source (in millions) 2021 Dixie fire Insurance $ 562 FERC TO rates 102 WEMA 350 Wildfire Fund 150 Probable recoveries at March 31, 2022 $ 1,164 The Utility could be subject to significant liability in connection with these wildfire events. If such liability is not recoverable from insurance or the other mechanisms described herein, it could have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows. Insurance Coverage In April 2022, the Utility purchased approximately $340 million in wildfire liability insurance coverage for the period from April 1, 2022 to April 1, 2023, at a cost of approximately $263 million. Additionally, the Utility purchased approximately $600 million in existing wildfire liability insurance in August 2021 for the period from August 1, 2021 to August 1, 2022, which is scheduled to renew in August 2022 for an additional coverage period of August 1, 2022 to August 1, 2023, at a cost of approximately $516 million. The Utility’s wildfire liability insurance is subject to an initial self-insured retention of $60 million. In April 2022, the Utility purchased approximately $725 million in non-wildfire liability coverage for the period from April 1, 2022 to April 1, 2023 at a cost of approximately $154 million. The Utility’s non-wildfire liability insurance is subject to an initial self-insured retention of $10 million. Various coverage limitations applicable to different insurance layers could result in material uninsured costs in the future depending on the amount and type of damages resulting from covered events. In the Utility’s 2020 GRC proceeding, the CPUC also approved a settlement agreement provision that allows the Utility to recover annual insurance costs for up to $1.4 billion in excess liability insurance coverage. For more information about the RTBA, see Note 4 above. Insurance Receivable Through March 31, 2022, PG&E Corporation a |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue from Contracts with Customers The Utility recognizes revenues when electricity and natural gas services are delivered. The Utility records unbilled revenues for the estimated amount of energy delivered to customers but not yet billed at the end of the period. Unbilled revenues are included in accounts receivable on the Condensed Consolidated Balance Sheets. Rates charged to customers are based on CPUC and FERC authorized revenue requirements. Revenues can vary significantly from period to period because of seasonality, weather, and customer usage patterns. Regulatory Balancing Account Revenue The CPUC authorizes most of the Utility’s revenues in the Utility’s GRCs, which occur every four years. 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 Utility also collects additional revenue requirements to recover costs that the CPUC has authorized the Utility to pass on to customers, including costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs. In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred. The Utility records a regulatory balancing account asset or liability for differences between incurred costs and customer billings or authorized revenue meant to recover those costs, to the extent that these differences are probable of recovery or refund. As a result, these differences have no impact on net income. |
Variable Interest Entities | A VIE is an entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or whose equity investors lack any characteristics of a controlling financial interest. An enterprise that has a controlling financial interest in a VIE is a primary beneficiary and is required to consolidate the VIE. Consolidated VIEs Receivables Securitization Program The SPV was created in connection with the Receivables Securitization Program and is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the Receivables Securitization Program, the Utility sells certain of its receivables and certain related rights to payment and obligations of the Utility with respect to such receivables, and certain other related rights to the SPV, which, in turn, obtains loans secured by the receivables from financial institutions (the “Lenders”). Amounts received from the Lenders, the pledged receivables and the corresponding debt are included in Accounts receivable, Other noncurrent assets, and Long-term debt, respectively, on the Condensed Consolidated Balance Sheets. As of March 31, 2022, the aggregate principal amount of the loans made by the Lenders cannot exceed $1.0 billion outstanding at any time. On April 20, 2022, the Utility entered into an amendment to the Receivables Securitization Program to, among other things, add an uncommitted incremental facility which, subject to certain conditions precedent, allows the SPV to request an increase in the facility limit by an additional $500 million to an aggregate amount of $1.5 billion. The SPV is considered a VIE because its equity capitalization is insufficient to support its activities. The most significant activities that impact the economic performance of the SPV are decisions made to manage receivables. The Utility is considered the primary beneficiary and consolidates the SPV as it makes these decisions. No additional financial support was provided to the SPV during the quarter ended March 31, 2022 or is expected to be provided in the future that was not previously contractually required. As of March 31, 2022 and December 31, 2021, the SPV had net accounts receivable of $2.9 billion and $3.3 billion, respectively, and outstanding borrowings of $1.0 billion and $974 million, respectively, under the Receivables Securitization Program. First AB 1054 Securitization PG&E Recovery Funding LLC is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility. Pursuant to the financing order for the first AB 1054 securitization transaction, the Utility sold its right to receive revenues from the non-bypassable wildfire hardening fixed recovery charge (“Recovery Property”) to PG&E Recovery Funding LLC, which, in turn, issued recovery bonds secured by the Recovery Property. On November 12, 2021, PG&E Recovery Funding LLC issued approximately $860 million of senior secured recovery bonds. The recovery bonds were issued in three tranches: (1) approximately $266 million with an interest rate of 1.46% and is due July 15, 2033, (2) approximately $160 million with an interest rate of 2.28% and is due January 15, 2038, and (3) approximately $434 million with an interest rate of 2.82% and is due July 15, 2048. The recovery bonds are scheduled to pay principal and interest semi-annually on January 15 and July 15 of each year. The final scheduled payment date is July 15, 2046. Amounts owed to bond-holders are included in Long-term debt and Long-term debt, classified as current, on the Condensed Consolidated Balance Sheets. PG&E Recovery Funding LLC is considered a VIE because its equity capitalization is insufficient to support its operations. The most significant activities that impact the economic performance of PG&E Recovery Funding LLC are decisions made by the servicer of the Recovery Property. The Utility is considered the primary beneficiary and consolidates PG&E Recovery Funding LLC as it acts in this role as servicer. No additional financial support was provided to PG&E Recovery Funding LLC during the quarter ended March 31, 2022 or is expected to be provided in the future that was not previously contractually required. As of March 31, 2022 and December 31, 2021, PG&E Recovery Funding LLC had outstanding borrowings of $860 million. Non-Consolidated VIEs Some of the counterparties to the Utility’s power purchase agreements are considered VIEs. Each of these VIEs was designed to own a power plant that would generate electricity for sale to the Utility. To determine whether the Utility was the primary beneficiary of any of these VIEs as of March 31, 2022, it assessed whether it absorbs any of the VIE’s expected losses or receives any portion of the VIE’s expected residual returns under the terms of the power purchase agreement, analyzed the variability in the VIE’s gross margin, and considered whether it had any decision-making rights associated with the activities that are most significant to the VIE’s performance, such as dispatch rights and operating and maintenance activities. The Utility’s financial obligation is limited to the amount the Utility pays for delivered electricity and capacity. The Utility did not have any decision-making rights associated with any of the activities that are most significant to the economic performance of any of these VIEs. Since the Utility was not the primary beneficiary of any of these VIEs as of March 31, 2022, it did not consolidate any of them. |
Pension and Other Post-Retirement Benefits | PG&E Corporation and the Utility sponsor a non-contributory defined benefit pension plan and cash balance plan. Both plans are included in “Pension Benefits” below. Post-retirement medical and life insurance plans are included in “Other Benefits” below.Non-service costs are reflected in Other income, net on the Condensed Consolidated Statements of Income. Service costs are reflected in Operating and maintenance on the Condensed Consolidated Statements of Income. |
Financial Assets Measured at Amortized Cost – Credit Losses | PG&E Corporation and the Utility use the current expected credit loss model to estimate the expected lifetime credit loss on financial assets measured at amortized cost. PG&E Corporation and the Utility evaluate credit risk in their portfolio of financial assets quarterly. As of March 31, 2022, PG&E Corporation and the Utility identified the following significant categories of financial assets. Trade Receivables Trade receivables are represented by customer accounts. PG&E Corporation and the Utility record an allowance for doubtful accounts to recognize an estimate of expected lifetime credit losses. The allowance is determined on a collective basis based on the historical amounts written-off and an assessment of customer collectability. Furthermore, economic conditions are evaluated as part of the estimate of expected lifetime credit losses using an analysis of regional unemployment rates. As of March 31, 2022, expected credit losses of $43 million were recorded in Operating and maintenance expense on the Condensed Consolidated Statements of Income for credit losses associated with trade and other receivables. The portion of expected credit losses that are deemed probable of recovery are deferred to the RUBA, CPPMA and a FERC regulatory asset. As of March 31, 2022, the RUBA current balancing accounts receivable balance was $104 million, CPPMA long-term regulatory asset balance was $28 million, and FERC long-term regulatory asset balance was not material. Other Receivables and Available-For-Sale Debt Securities Insurance receivables are related to the liability insurance policies PG&E Corporation and the Utility carry. Insurance receivable risk is related to each insurance carrier’s risk of defaulting on their individual policies. Wildfire Fund receivables are the funds available from the statewide fund established under AB 1054 for payment of eligible claims related to the 2021 Dixie fire that exceed $1.0 billion and available insurance coverage. For more information, see Note 10 below. Wildfire Fund receivables risk is related to the Wildfire Fund’s durability, which is a measurement of the claim-paying capacity. Lastly, PG&E Corporation and the Utility are required to determine if the fair value is below the amortized cost basis for its available-for-sale debt securities. An impairment may exist if there is an intent to sell or a requirement to sell before recovery of the amortized basis. If such an impairment exists, then PG&E Corporation and the Utility must determine whether a portion of the impairment is a result of expected credit loss. |
Recently Adopted Accounting Standards | Debt In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Use of Derivative Instruments | The Utility is exposed to commodity price risk as a result of its electricity and natural gas procurement activities. Procurement costs are recovered through rates. The Utility uses both derivative and non-derivative contracts to manage volatility in customer rates due to fluctuating commodity prices. Derivatives include contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded either on an exchange or over-the-counter. Derivatives are presented in the Utility’s Condensed Consolidated Balance Sheets and recorded at fair value and on a net basis in accordance with master netting arrangements for each counterparty. The fair value of derivative instruments is further offset by cash collateral paid or received where the right of offset and the intention to offset exist. Price risk management activities that meet the definition of derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets. These instruments are not held for speculative purposes and are subject to certain regulatory requirements. The Utility expects to fully recover through rates all costs related to derivatives under the applicable ratemaking mechanism in place as long as the Utility’s price risk management activities are carried out in accordance with CPUC directives. Therefore, all unrealized gains and losses associated with the change in fair value of these derivatives are deferred and recorded within the Utility’s regulatory assets and liabilities on the Condensed Consolidated Balance Sheets. Net realized gains or losses on commodity derivatives are recorded in the cost of electricity or the cost of natural gas with corresponding increases or decreases to regulatory balancing accounts for recovery from or refund to customers. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Revenues Disaggregated by Type of Customer | The following table presents the Utility’s revenues disaggregated by type of customer: Three Months Ended March 31, (in millions) 2022 2021 Electric Revenue from contracts with customers Residential $ 1,494 $ 1,464 Commercial 1,173 1,013 Industrial 350 327 Agricultural 216 152 Public street and highway lighting 18 17 Other (1) (14) (64) Total revenue from contracts with customers - electric 3,237 2,909 Regulatory balancing accounts (2) 921 486 Total electric operating revenue $ 4,158 $ 3,395 Natural gas Revenue from contracts with customers Residential $ 1,464 $ 1,208 Commercial 344 245 Transportation service only 399 326 Other (1) (180) (47) Total revenue from contracts with customers - gas 2,027 1,732 Regulatory balancing accounts (2) (387) (411) Total natural gas operating revenue 1,640 1,321 Total operating revenues $ 5,798 $ 4,716 (1) This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items. (2) These amounts represent revenues authorized to be billed or refunded to customers. |
Schedule of Net Benefit Costs | The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three months ended March 31, 2022 and 2021 were as follows: Pension Benefits Other Benefits Three Months Ended March 31, (in millions) 2022 2021 2022 2021 Service cost for benefits earned (1) $ 144 $ 147 $ 15 $ 16 Interest cost 173 161 13 13 Expected return on plan assets (297) (261) (32) (35) Amortization of prior service cost (1) (1) 2 4 Amortization of net actuarial (gain) loss — 1 (10) (8) Net periodic benefit cost 19 47 (12) (10) Regulatory account transfer (2) 64 37 — — Total $ 83 $ 84 $ (12) $ (10) (1) A portion of service costs are capitalized pursuant to GAAP. (2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates. |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) consisted of the following: Pension Other Total (in millions, net of income tax) Three Months Ended March 31, 2022 Beginning balance $ (33) $ 18 $ (15) Amounts reclassified from other comprehensive income: (1) Amortization of prior service cost (net of taxes of $0 and $1, respectively) (1) 1 — Amortization of net actuarial gain (net of taxes of $0 and $3, respectively) — (7) (7) Regulatory account transfer (net of taxes of $0 and $2, respectively) 1 6 7 Net current period other comprehensive gain (loss) — — — Ending balance $ (33) $ 18 $ (15) (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, 2021 Beginning balance $ (39) $ 17 $ (22) 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 (gain) loss (net of taxes of $0 and $2, respectively) 1 (6) (5) Regulatory account transfer (net of taxes of $0 and $1, respectively) 1 3 4 Net current period other comprehensive gain (loss) 1 — 1 Ending balance $ (38) $ 17 $ (21) (1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. See the “Pension and Other Post-Retirement Benefits” table above for additional details. |
REGULATORY ASSETS, LIABILITIE_2
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Regulated Operations [Abstract] | |
Long-Term Regulatory Assets | Long-term regulatory assets are comprised of the following: Balance at (in millions) March 31, 2022 December 31, 2021 Pension benefits (1) $ 645 $ 708 Environmental compliance costs 1,007 1,089 Utility retained generation (2) 121 133 Price risk management 213 216 Catastrophic event memorandum account (3) 983 1,119 Wildfire expense memorandum account (4) 350 347 Fire hazard prevention memorandum account (5) 75 75 Fire risk mitigation memorandum account (6) 50 44 Wildfire mitigation plan memorandum account (7) 461 424 Deferred income taxes (8) 2,036 1,849 Insurance premium costs (9) 186 207 Wildfire mitigation balancing account (10) 273 273 Vegetation management balancing account (11) 1,412 1,411 COVID-19 pandemic protection memorandum accounts (12) 48 49 Microgrid memorandum account (13) 164 163 Financing costs (14) 172 175 Other 971 925 Total long-term regulatory assets $ 9,167 $ 9,207 (1) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue indefinitely into the future, the Utility expects to continuously recover pension benefits. (2) In connection with the settlement agreement entered into among PG&E Corporation, the Utility, and the CPUC in 2003 to resolve the Utility’s 2001 proceeding under Chapter 11, the CPUC authorized the Utility to recover $1.2 billion of costs related to the Utility’s retained generation assets. The individual components of these regulatory assets are being amortized over the respective lives of the underlying generation facilities, consistent with the period over which the related revenues are recognized. (3 ) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. As of March 31, 2022 and December 31, 2021, $51 million and $49 million in COVID-19 related costs was recorded to CEMA regulatory assets, respectively. Recovery of CEMA costs is subject to CPUC review and approval. (4) Represents incremental wildfire claims and outside legal expenses related to the 2021 Dixie fire. Recovery of WEMA costs is subject to CPUC review and approval. (5) Includes costs associated with the implementation of regulations and requirements adopted to protect the public from potential fire hazards associated with overhead power line facilities and nearby aerial communication facilities that have not been previously authorized in another proceeding. Recovery of FHPMA costs is subject to CPUC review and approval. (6) Includes costs associated with the 2019 WMP for the period from January 1, 2019 through June 4, 2019 and other incremental costs associated with fire risk mitigation. Recovery of FRMMA costs is subject to CPUC review and approval. (7) Includes costs associated with the 2019 WMP for the period from June 5, 2019 through December 31, 2019, the 2020 WMP for the period from January 1, 2020 through December 31, 2020, the 2021 WMP for the period from January 1, 2021 through December 31, 2021 and the 2022 WMP for the period from January 1, 2022 through March 31, 2022. Recovery of WMPMA costs is subject to CPUC review and approval. (8) Represents cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP. (9) Represents excess liability insurance premium costs recorded to RTBA and adjustment mechanism for costs determined in other proceedings, as authorized in the 2020 GRC and 2019 GT&S rate cases, respectively. (10) Includes costs associated with certain wildfire mitigation activities for the period from January 1, 2020 through March 31, 2022 . Noncurrent balance represents costs above 115% of adopted revenue requirements, which are subject to CPUC review and approval. (11) Represents costs from routine vegetation management and EVM activities previously recorded in the FRMMA/WMPMA, and tree mortality and fire risk reduction work previously recorded in CEMA for the period from January 1, 2020 through March 31, 2022 . Recovery of VMBA costs above 120% of adopted revenue requirements is subject to CPUC review and approval. (12) On April 16, 2020, the CPUC passed a resolution that established the CPPMA to recover costs associated with customer protections, including higher uncollectible costs related to a moratorium on electric and gas service disconnections for residential and small business customers. The CPPMA applies only to certain residential and small business customers and was approved on July 27, 2020 with an effective date of March 4, 2020. As of March 31, 2022, the Utility had recorded an under-collection of $28 million, representing incremental bad debt expense over what was collected in rates for the period the CPPMA was in effect. The remaining $20 million is associated with program costs and higher accounts receivable financing costs. As of December 31, 2021, the Utility had recorded an under-collection of $30 million, representing incremental bad debt expense over what was collected in rates for the period the CPPMA was in effect. The remaining $19 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs is subject to CPUC review and approval. (13) Includes costs associated with temporary generation, infrastructure upgrades, and community grid enablement programs associated with the implementation of microgrids. Amounts incurred are subject to CPUC review and approval. (14) Includes costs associated with long-term debt financing deemed recoverable under ASC 980. Noncurrent balance represents costs to be recovered more than twelve months from the current date and includes the following costs: hedging costs and exit financing fees for the Utility’s exit from bankruptcy in 2004 and PG&E Corporation’s and the Utility’s exit from bankruptcy in 2020; unamortized issuance costs, premiums and discounts related to pre-petition debt; AB1054 bond issuance costs; and debt CPUC fees. These costs and their amortization period are reviewable and approved in the Utility’s Cost of Capital or other regulatory filings. |
Long-Term Regulatory Liabilities | Long-term regulatory liabilities are comprised of the following: Balance at (in millions) March 31, 2022 December 31, 2021 Cost of removal obligations (1) $ 7,431 $ 7,306 Recoveries in excess of AROs (2) 154 388 Public purpose programs (3) 1,043 946 Employee benefit plans (4) 1,234 1,229 Transmission tower wireless licenses (5) 442 446 SFGO sale (6) 323 343 Other 936 1,341 Total long-term regulatory liabilities $ 11,563 $ 11,999 (1) Represents the cumulative differences between the recorded costs to remove assets and amounts collected in rates for expected costs to remove assets. (2) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 9 below. (3) Represents amounts received from customers designated for public purpose program costs expected to be incurred beyond the next 12 months, primarily related to energy efficiency programs. (4) Represents cumulative differences between incurred costs and amounts collected in rates for post-retirement medical, post-retirement life and long-term disability plans. (5) Represents the portion of the net proceeds received from the sale of transmission tower wireless licenses that will be returned to customers. Of the $442 million, $307 million and $135 million will be refunded to FERC and CPUC jurisdiction customers, respectively. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K. (6) Represents the noncurrent portion of the net gain on the sale of the SFGO, which closed on September 17, 2021, that is being distributed to customers over a five-year period, beginning in 2022. |
Current Regulatory Balancing Accounts Receivable | Current regulatory balancing accounts receivable and payable are comprised of the following: Balance at (in millions) March 31, 2022 December 31, 2021 Electric distribution $ 850 $ — Energy procurement 505 310 Public purpose programs 345 321 Fire hazard prevention memorandum account 20 50 Fire risk mitigation memorandum account 5 14 Wildfire mitigation plan memorandum account 27 67 Wildfire mitigation balancing account 9 91 General rate case memorandum accounts 351 468 Vegetation management balancing account 305 127 Insurance premium costs 95 605 Wildfire expense memorandum account — 440 Residential uncollectibles balancing accounts 104 127 Catastrophic event memorandum account 287 — Other 262 379 Total regulatory balancing accounts receivable $ 3,165 $ 2,999 |
Current Regulatory Balancing Accounts Payable | Balance at (in millions) March 31, 2022 December 31, 2021 Electric distribution $ — $ 121 Electric transmission 132 24 Gas distribution and transmission 113 83 Energy procurement 224 211 Public purpose programs 286 259 Nuclear decommissioning adjustment mechanism 106 137 Other 815 286 Total regulatory balancing accounts payable $ 1,676 $ 1,121 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The following table summarizes PG&E Corporation’s and the Utility’s outstanding borrowings and availability under their credit facilities as of March 31, 2022: (in millions) Termination Maximum Facility Limit Loans Outstanding Letters of Credit Outstanding Facility Utility revolving credit facility June 2026 $ 4,000 (1) $ 1,555 $ 750 $ 1,695 Utility Receivables Securitization Program (2) September 2023 1,000 (3) 1,000 — — (3) PG&E Corporation revolving credit facility June 2024 500 — — 500 Total credit facilities $ 5,500 $ 2,555 $ 750 $ 2,195 (1) Includes a $1.5 billion letter of credit sublimit. (2) For more information on the Receivables Securitization Program, see “Variable Interest Entities” in Note 3 above. (3) The amount the Utility may borrow under the Receivables Securitization Program is limited to the lesser of the facility limit (which was $1.0 billion as of March 31, 2022) and the facility availability. The facility availability may vary based on the amount of accounts receivable that the Utility owns that are eligible for sale to the SPV and the portion of those accounts receivable that are sold to the SPV that are eligible for advances by the lenders under the Receivables Securitization Program. As of March 31, 2022, the Receivables Securitization Program had a maximum borrowing base of $1.0 billion and was fully drawn. As of April 25, 2022, the Receivables Securitization Program had a maximum borrowing base of $715 million and was fully drawn. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method | The following is a reconciliation of PG&E Corporation’s income available for common shareholders and weighted average common shares outstanding for calculating diluted EPS: Three Months Ended March 31, (in millions, except per share amounts) 2022 2021 Income available for common shareholders $ 475 $ 120 Weighted average common shares outstanding, basic 1,986 1,985 Add incremental shares from assumed conversions: Employee share-based compensation 8 5 Equity Units 140 141 Weighted average common shares outstanding, diluted 2,134 2,131 Total income per common share, diluted $ 0.22 $ 0.06 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Volumes of Outstanding Derivative Contracts | The volumes of the Utility’s outstanding derivatives were as follows: Contract Volume at Underlying Product Instruments March 31, 2022 December 31, 2021 Natural Gas (1) (MMBtus (2) ) Forwards, Futures and Swaps 187,529,848 173,361,635 Options 7,450,000 14,420,000 Electricity (Megawatt-hours) Forwards, Futures and Swaps 11,155,427 10,283,639 Options 543,600 288,000 Congestion Revenue Rights (3) 235,009,420 239,857,610 (1) Amounts shown are for the combined positions of the electric fuels and core gas supply portfolios. (2) Million British Thermal Units. (3) CRRs are financial instruments that enable the holders to manage variability in electric energy congestion charges due to transmission grid limitations. |
Offsetting Liabilities | As of March 31, 2022, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 76 $ (5) $ 49 $ 120 Other noncurrent assets – other 165 — — 165 Current liabilities – other (61) 5 20 (36) Noncurrent liabilities – other (213) — — (213) Total commodity risk $ (33) $ — $ 69 $ 36 As of December 31, 2021, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 58 $ (9) $ 152 $ 201 Other noncurrent assets – other 169 — — 169 Current liabilities – other (53) 9 18 (26) Noncurrent liabilities – other (216) — — (216) Total commodity risk $ (42) $ — $ 170 $ 128 |
Offsetting Assets | As of March 31, 2022, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 76 $ (5) $ 49 $ 120 Other noncurrent assets – other 165 — — 165 Current liabilities – other (61) 5 20 (36) Noncurrent liabilities – other (213) — — (213) Total commodity risk $ (33) $ — $ 69 $ 36 As of December 31, 2021, the Utility’s outstanding derivative balances were as follows: Commodity Risk (in millions) Gross Derivative Netting Cash Collateral Total Derivative Current assets – other $ 58 $ (9) $ 152 $ 201 Other noncurrent assets – other 169 — — 169 Current liabilities – other (53) 9 18 (26) Noncurrent liabilities – other (216) — — (216) Total commodity risk $ (42) $ — $ 170 $ 128 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements At March 31, 2022 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 245 $ — $ — $ — $ 245 Nuclear decommissioning trusts Short-term investments 73 — — — 73 Global equity securities 2,297 — — — 2,297 Fixed-income securities 1,135 831 — — 1,966 Assets measured at NAV — — — — 30 Total nuclear decommissioning trusts (2) 3,505 831 — — 4,366 Price risk management instruments (Note 8) Electricity — 27 209 4 240 Gas — 5 — 40 45 Total price risk management instruments — 32 209 44 285 Rabbi trusts Fixed-income securities — 99 — — 99 Life insurance contracts — 73 — — 73 Total rabbi trusts — 172 — — 172 Long-term disability trust Short-term investments 6 — — — 6 Assets measured at NAV — — — — 145 Total long-term disability trust 6 — — — 151 TOTAL ASSETS $ 3,756 $ 1,035 $ 209 $ 44 $ 5,219 Liabilities: Price risk management instruments (Note 8) Electricity $ — $ 30 $ 233 $ (16) $ 247 Gas — 11 — (9) 2 TOTAL LIABILITIES $ — $ 41 $ 233 $ (25) $ 249 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $731 million primarily related to deferred taxes on appreciation of investment value. Fair Value Measurements December 31, 2021 (in millions) Level 1 Level 2 Level 3 Netting (1) Total Assets: Short-term investments $ 289 $ — $ — $ — $ 289 Nuclear decommissioning trusts Short-term investments 22 — — — 22 Global equity securities 2,504 — — — 2,504 Fixed-income securities 1,158 866 — — 2,024 Assets measured at NAV — — — — 31 Total nuclear decommissioning trusts (2) 3,684 866 — — 4,581 Price risk management instruments (Note 8) Electricity — 9 214 6 229 Gas — 4 — 137 141 Total price risk management instruments — 13 214 143 370 Rabbi trusts Fixed-income securities — 104 — — 104 Life insurance contracts — 76 — — 76 Total rabbi trusts — 180 — — 180 Long-term disability trust Short-term investments 6 — — — 6 Assets measured at NAV — — — — 132 Total long-term disability trust 6 — — — 138 TOTAL ASSETS $ 3,979 $ 1,059 $ 214 $ 143 $ 5,558 Liabilities: Price risk management instruments (Note 8) Electricity — 11 248 (24) 235 Gas — 10 — (3) 7 TOTAL LIABILITIES $ — $ 21 $ 248 $ (27) $ 242 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral. (2) Represents amount before deducting $783 million, primarily related to deferred taxes on appreciation of investment value. |
Fair Value Measurement Inputs and Valuation Techniques | Fair Value at (in millions) At March 31, 2022 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 180 $ 95 Market approach CRR auction prices $ (2,265.69) - 2,265.94 / 0.41 Power purchase agreements $ 29 $ 138 Discounted cash flow Forward prices $ (6.75) - 247.15 / 50.98 (1) Represents price per megawatt-hour. (2) Unobservable inputs were weighted by the relative fair value of the instruments. Fair Value at (in millions) At December 31, 2021 Valuation Unobservable Fair Value Measurement Assets Liabilities Range (1) /Weighted-Average Price (2) Congestion revenue rights $ 188 $ 93 Market approach CRR auction prices $ (40.77) - 2,265.94 / 0.40 Power purchase agreements $ 26 $ 155 Discounted cash flow Forward prices $ (7.97) - 256.20 / 47.17 (1) Represents price per megawatt-hour. |
Level 3 Reconciliation | The following table presents the reconciliation for Level 3 price risk management instruments for the three months ended March 31, 2022 and 2021, respectively: Price Risk Management Instruments (in millions) 2022 2021 Liability balance as of January 1 $ (34) $ (72) Net realized and unrealized gains: Included in regulatory assets and liabilities or balancing accounts (1) 10 (22) Liability balance as of March 31 $ (24) $ (94) (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 long-term debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values): At March 31, 2022 At December 31, 2021 (in millions) Carrying Amount Level 2 Fair Value Carrying Amount Level 2 Fair Value Debt (Note 5) PG&E Corporation $ 4,618 $ 4,610 $ 4,619 $ 4,796 Utility 32,704 30,702 31,816 35,803 |
Schedule of Unrealized Gains (Losses) Related to Available-for-sale Investments | The following table provides a summary of equity securities and available-for-sale debt securities: (in millions) Amortized Total Total Total Fair As of March 31, 2022 Nuclear decommissioning trusts Short-term investments $ 73 $ — $ — $ 73 Global equity securities 468 1,876 (17) 2,327 Fixed-income securities 2,005 38 (77) 1,966 Total (1) $ 2,546 $ 1,914 $ (94) $ 4,366 As of December 31, 2021 Nuclear decommissioning trusts Short-term investments $ 22 $ — $ — $ 22 Global equity securities 479 2,066 (10) 2,535 Fixed-income securities 1,938 98 (12) 2,024 Total (1) $ 2,439 $ 2,164 $ (22) $ 4,581 (1) Represents amounts before deducting $731 million and $783 million as of March 31, 2022 and December 31, 2021, respectively, primarily related to deferred taxes on appreciation of investment value. |
Schedule of Available for Sale Securities Table | The fair value of fixed-income securities by contractual maturity is as follows: As of (in millions) March 31, 2022 Less than 1 year $ 8 1–5 years 611 5–10 years 458 More than 10 years 889 Total maturities of fixed-income securities $ 1,966 |
Schedule of Activity for Debt and Equity Securities | The following table provides a summary of activity for the fixed-income and equity securities: Three Months Ended March 31, (in millions) 2022 2021 Proceeds from sales and maturities of nuclear decommissioning investments $ 421 $ 551 Gross realized gains on securities 56 55 Gross realized losses on securities (7) (13) |
WILDFIRE-RELATED CONTINGENCIES
WILDFIRE-RELATED CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Wildfire-Related Claims | The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2019 Kincade fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 769 Accrued Losses — Payments (4) Balance at March 31, 2022 $ 765 The following table presents changes in the lower end of the range of PG&E Corporation’s and the Utility’s reasonably estimable range of losses for claims arising from the 2020 Zogg fire since December 31, 2021. Loss Accrual (in millions) Balance at December 31, 2021 $ 211 Accrued Losses — Payments (34) Balance at March 31, 2022 $ 177 Total probable recoveries for the 2021 Dixie fire as of March 31, 2022 are: Potential Recovery Source (in millions) 2021 Dixie fire Insurance $ 562 FERC TO rates 102 WEMA 350 Wildfire Fund 150 Probable recoveries at March 31, 2022 $ 1,164 The balances for insurance receivables with respect to wildfires are included in Other accounts receivable in PG&E Corporation’s and the Utility’s Condensed Consolidated Balance Sheets: Insurance Receivable (in millions) 2021 Dixie fire 2020 Zogg fire 2019 Kincade fire Total Balance at December 31, 2021 $ 563 $ 270 $ 414 $ 1,247 Accrued insurance recoveries (1) (1) 1 — — Reimbursements (2) — (43) — (43) Balance at March 31, 2022 $ 562 $ 228 $ 414 $ 1,204 (1) During the first quarter of 2022, the accrued insurance recoveries decreased for the 2021 Dixie fire with a corresponding increase for the 2020 Zogg fire for $1 million. |
OTHER CONTINGENCIES AND COMMI_2
OTHER CONTINGENCIES AND COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Environmental Remediation Liability | The Utility’s environmental remediation liability is primarily included in non-current liabilities on the Condensed Consolidated Balance Sheets and is comprised of the following: Balance at (in millions) March 31, 2022 December 31, 2021 Topock natural gas compressor station $ 296 $ 299 Hinkley natural gas compressor station 121 123 Former MGP sites owned by the Utility or third parties (1) 662 667 Utility-owned generation facilities (other than fossil fuel-fired), other facilities, and third-party disposal sites (2) 112 104 Fossil fuel-fired generation facilities and sites (3) 70 70 Total environmental remediation liability $ 1,261 $ 1,263 (1) Primarily driven by the following sites: San Francisco Beach Street, Vallejo, Napa, and San Francisco East Harbor. (2) Primarily driven by Geothermal landfill and Shell Pond site. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 3 Months Ended |
Mar. 31, 2022numberOfSegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments (segment) | 1 |
BANKRUPTCY FILING (Chapter 11 C
BANKRUPTCY FILING (Chapter 11 Claims Process) (Details) notice in Thousands | Dec. 31, 2021notice |
Debt Instrument [Line Items] | |
Proofs of claims | 100 |
Subrogation Wildfire Trust and Fire Victim Trust | |
Debt Instrument [Line Items] | |
Proofs of claims | 80 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 10Q Narrative (Details) - USD ($) | Apr. 20, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Nov. 12, 2021 |
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Period for probable revenue recovery | 24 months | ||||
Monte carlo simulation, historical data, period | 12 years | ||||
Litigation liability, current | $ 193,000,000 | ||||
Wildfire Fund asset | 461,000,000 | $ 461,000,000 | |||
Litigation contribution, net | 5,200,000,000 | ||||
Amortization and accretion | 118,000,000 | $ 119,000,000 | |||
Insurance receivable | 1,204,000,000 | 1,247,000,000 | |||
Expected credit losses | 43,000,000 | ||||
Regulatory Balancing Accounts Receivable | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Total regulatory balancing accounts | 3,165,000,000 | 2,999,000,000 | |||
Regulatory Balancing Accounts Receivable | Residential uncollectibles balancing accounts | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Total regulatory balancing accounts | 104,000,000 | 127,000,000 | |||
COVID-19 Pandemic protection memorandum account | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Regulatory assets | 28,000,000 | ||||
2021 Dixie fire | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Insurance receivable | $ 562,000,000 | 563,000,000 | |||
Wildfire Fund Asset | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Finite-lived intangible asset, useful life | 15 years | ||||
Other Current Liabilities | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Wildfire fund, noncurrent | $ 1,100,000,000 | ||||
Other noncurrent assets – other | 2021 Dixie fire | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Insurance receivable | 150,000,000 | ||||
Pacific Gas & Electric Co (Utility) | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Wildfire Fund asset | 461,000,000 | 461,000,000 | |||
Amortization and accretion | 118,000,000 | $ 119,000,000 | |||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Aggregate maximum amount of loans made by lenders | 1,000,000,000 | ||||
Outstanding borrowings | 1,000,000,000 | 974,000,000 | |||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | Subsequent Event | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Aggregate maximum amount of loans made by lenders | $ 1,500,000,000 | ||||
Increase in facility amount | $ 500,000,000 | ||||
Receivables Securitization Program | PG&E AR Facility, LLC (SPV) | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Accounts receivable, net | 2,900,000,000 | 3,300,000,000 | |||
Recovery Bonds | Senior Secured Superpriority Debt | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument, face amount | $ 860,000,000 | $ 860,000,000 | $ 860,000,000 | ||
Recovery Bonds | Senior Secured Superpriority Debt | Tranche One | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument, face amount | $ 266,000,000 | ||||
Interest rate | 1.46% | ||||
Recovery Bonds | Senior Secured Superpriority Debt | Tranche Two | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument, face amount | $ 160,000,000 | ||||
Interest rate | 2.28% | ||||
Recovery Bonds | Senior Secured Superpriority Debt | Tranche Three | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument, face amount | $ 434,000,000 | ||||
Interest rate | 2.82% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenues Disaggregated by Type of Customer) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | $ 5,798 | $ 4,716 |
Electric | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 4,158 | 3,395 |
Natural gas | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 1,640 | 1,321 |
Pacific Gas & Electric Co (Utility) | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 5,798 | 4,716 |
Pacific Gas & Electric Co (Utility) | Electric | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 3,237 | 2,909 |
Regulatory balancing accounts | 921 | 486 |
Total operating revenues | 4,158 | 3,395 |
Pacific Gas & Electric Co (Utility) | Electric | Residential | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 1,494 | 1,464 |
Pacific Gas & Electric Co (Utility) | Electric | Commercial | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 1,173 | 1,013 |
Pacific Gas & Electric Co (Utility) | Electric | Industrial | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 350 | 327 |
Pacific Gas & Electric Co (Utility) | Electric | Agricultural | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 216 | 152 |
Pacific Gas & Electric Co (Utility) | Electric | Public street and highway lighting | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 18 | 17 |
Pacific Gas & Electric Co (Utility) | Electric | Other | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | (14) | (64) |
Pacific Gas & Electric Co (Utility) | Natural gas | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 2,027 | 1,732 |
Regulatory balancing accounts | (387) | (411) |
Total operating revenues | 1,640 | 1,321 |
Pacific Gas & Electric Co (Utility) | Natural gas | Residential | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 1,464 | 1,208 |
Pacific Gas & Electric Co (Utility) | Natural gas | Commercial | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 344 | 245 |
Pacific Gas & Electric Co (Utility) | Natural gas | Transportation service only | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | 399 | 326 |
Pacific Gas & Electric Co (Utility) | Natural gas | Other | ||
Disaggregation of Revenue [Abstract] | ||
Total operating revenues | $ (180) | $ (47) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost for benefits earned | $ 144 | $ 147 |
Interest cost | 173 | 161 |
Expected return on plan assets | (297) | (261) |
Amortization of prior service cost | (1) | (1) |
Amortization of net actuarial loss | 0 | 1 |
Net periodic benefit cost | 19 | 47 |
Regulatory account transfer | 64 | 37 |
Net periodic benefit cost | 83 | 84 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost for benefits earned | 15 | 16 |
Interest cost | 13 | 13 |
Expected return on plan assets | (32) | (35) |
Amortization of prior service cost | 2 | 4 |
Amortization of net actuarial loss | (10) | (8) |
Net periodic benefit cost | (12) | (10) |
Regulatory account transfer | 0 | 0 |
Net periodic benefit cost | $ (12) | $ (10) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reclassifications Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 21,223 | $ 21,253 |
Net current period other comprehensive gain (loss) | 0 | 1 |
Ending balance | 21,644 | 21,379 |
Pension Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Net current period other comprehensive gain (loss) | 0 | 1 |
Other Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Net current period other comprehensive gain (loss) | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (15) | (22) |
Ending balance | (15) | (21) |
Accumulated Other Comprehensive Income (Loss) | Pension Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (33) | (39) |
Ending balance | (33) | (38) |
Accumulated Other Comprehensive Income (Loss) | Other Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 18 | 17 |
Ending balance | 18 | 17 |
Amortization of prior service cost | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 0 | 2 |
Amortization of prior service cost | Pension Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (1) | (1) |
Amount attributable to tax | 0 | 0 |
Amortization of prior service cost | Other Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 1 | 3 |
Amount attributable to tax | 1 | 1 |
Amortization of net actuarial loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (7) | (5) |
Amortization of net actuarial loss | Pension Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 0 | 1 |
Amount attributable to tax | 0 | 0 |
Amortization of net actuarial loss | Other Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | (7) | (6) |
Amount attributable to tax | 3 | 2 |
Regulatory account transfer | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 7 | 4 |
Regulatory account transfer | Pension Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 1 | 1 |
Amount attributable to tax | 0 | 0 |
Regulatory account transfer | Other Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Amounts reclassified from other comprehensive income | 6 | 3 |
Amount attributable to tax | $ 2 | $ 1 |
REGULATORY ASSETS, LIABILITIE_3
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Long-Term Regulatory Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | $ 9,167 | $ 9,207 |
Utility retained generation asset costs | 1,200 | |
Pension benefits | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 645 | 708 |
Environmental compliance costs | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 1,007 | 1,089 |
Utility retained generation | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 121 | 133 |
Price risk management | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 213 | 216 |
Catastrophic event memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 983 | 1,119 |
Catastrophic event memorandum account | COVID-19 | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 51 | 49 |
Wildfire expense memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 350 | 347 |
Fire hazard prevention memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 75 | 75 |
Fire risk mitigation memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 50 | 44 |
Wildfire mitigation plan memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 461 | 424 |
Deferred income taxes | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 2,036 | 1,849 |
Insurance premium costs | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 186 | 207 |
Wildfire mitigation balancing account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | $ 273 | 273 |
Wildfire mitigation balancing account | Minimum | ||
Regulatory Assets [Line Items] | ||
Cost percentage threshold requiring approval | 115.00% | |
Vegetation management balancing account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | $ 1,412 | 1,411 |
Vegetation management balancing account | Minimum | ||
Regulatory Assets [Line Items] | ||
Cost percentage threshold requiring approval | 120.00% | |
COVID-19 Pandemic protection memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | $ 48 | 49 |
COVID-19 pandemic protection memorandum account, undercollection bad debt | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 28 | 30 |
COVID-19 pandemic protection memorandum account, program and accounts receivable financing costs | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 20 | 19 |
Microgrid memorandum account | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 164 | 163 |
Financing costs | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | 172 | 175 |
Other | ||
Regulatory Assets [Line Items] | ||
Total long-term regulatory assets | $ 971 | $ 925 |
REGULATORY ASSETS, LIABILITIE_4
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Long-Term Regulatory Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | $ 11,563 | $ 11,999 |
Proceeds received from sale of transmission tower wireless licenses, to be refunded to customers | 442 | |
Federal Energy Regulatory Commission | ||
Regulatory Liabilities [Line Items] | ||
Proceeds received from sale of transmission tower wireless licenses, to be refunded to customers | 307 | |
California Public Utilities Commission | ||
Regulatory Liabilities [Line Items] | ||
Proceeds received from sale of transmission tower wireless licenses, to be refunded to customers | 135 | |
Cost of removal obligations | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 7,431 | 7,306 |
Recoveries in excess of AROs | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 154 | 388 |
Public purpose programs | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 1,043 | 946 |
Employee benefit plans | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 1,234 | 1,229 |
Transmission tower wireless licenses | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 442 | 446 |
SFGO sale | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | 323 | 343 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Total long-term regulatory liabilities | $ 936 | $ 1,341 |
REGULATORY ASSETS, LIABILITIE_5
REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Current Regulatory Balancing Accounts, Net) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | $ 1,676 | $ 1,121 |
Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 3,165 | 2,999 |
Electric distribution | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 121 |
Electric distribution | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 850 | 0 |
Electric transmission | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 132 | 24 |
Gas distribution and transmission | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 113 | 83 |
Energy procurement | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 224 | 211 |
Energy procurement | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 505 | 310 |
Public purpose programs | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 286 | 259 |
Public purpose programs | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 345 | 321 |
Fire hazard prevention memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 20 | 50 |
Fire risk mitigation memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 5 | 14 |
Wildfire mitigation plan memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 27 | 67 |
Wildfire mitigation balancing account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 9 | 91 |
General rate case memorandum accounts | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 351 | 468 |
Vegetation management balancing account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 305 | 127 |
Insurance premium costs | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 95 | 605 |
Wildfire expense memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 0 | 440 |
Residential uncollectibles balancing accounts | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 104 | 127 |
Nuclear decommissioning adjustment mechanism | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 106 | 137 |
Catastrophic event memorandum account | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 287 | 0 |
Other | Regulatory Balancing Accounts Payable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | 815 | 286 |
Other | Regulatory Balancing Accounts Receivable | ||
Regulatory Assets [Line Items] | ||
Total regulatory balancing accounts | $ 262 | $ 379 |
DEBT (Outstanding Borrowings an
DEBT (Outstanding Borrowings and Availability) (Details) - USD ($) | Apr. 25, 2022 | Apr. 20, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Revolving Credit Facility | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 5,500,000,000 | |||
Loans Outstanding | 2,555,000,000 | |||
Letters of Credit Outstanding | 750,000,000 | |||
Facility Availability | 2,195,000,000 | |||
Revolving Credit Facility | PG&E Corporation | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |||
Loans Outstanding | 0 | |||
Letters of Credit Outstanding | 0 | |||
Facility Availability | 500,000,000 | |||
Revolving Credit Facility | Pacific Gas & Electric Co (Utility) | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 4,000,000,000 | |||
Loans Outstanding | 1,555,000,000 | |||
Letters of Credit Outstanding | 750,000,000 | |||
Facility Availability | 1,695,000,000 | |||
Letter of credit sublimit | 1,500,000,000 | |||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 1,000,000,000 | |||
Loans Outstanding | 1,000,000,000 | $ 974,000,000 | ||
Letters of Credit Outstanding | 0 | |||
Facility Availability | $ 0 | |||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | Subsequent Event | ||||
Debt [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 715,000,000 | $ 1,500,000,000 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Millions | Apr. 20, 2022 | Apr. 04, 2022 | Mar. 31, 2022 | Feb. 18, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 28, 2022 | Dec. 31, 2021 | May 11, 2021 | Apr. 23, 2021 | Apr. 30, 2020 |
Debt [Line Items] | |||||||||||
Repayments of long term debt | $ 7 | $ 7 | |||||||||
Customer Harm Threshold, post-emergence transaction, stress test cost | $ 7,500 | ||||||||||
Customer Harm Threshold, post-emergence transaction, recovery bonds issued | $ 7,500 | ||||||||||
Proceeds from the Sale of Long-term Debt | $ 1,000 | ||||||||||
Nothern California Wild Fire | |||||||||||
Debt [Line Items] | |||||||||||
Customer Harm Threshold, post-emergence transaction, securitized | $ 7,500 | $ 7,500 | $ 7,500 | ||||||||
Customer Harm Threshold, post-emergence transaction, debt retirement | $ 6,000 | ||||||||||
2020 Utility Term Loan Credit Agreement | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Repayments of long term debt | $ 298 | ||||||||||
364-Day 2022A Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | $ 500 | ||||||||||
Credit spread adjustment | 0.10% | ||||||||||
364-Day 2022A Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | SOFR | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
364-Day 2022A Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | Base Rate | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
364-Day 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | $ 125 | ||||||||||
Credit spread adjustment | 0.10% | ||||||||||
364-Day 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | SOFR | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
364-Day 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | Base Rate | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
2-Year 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | $ 400 | ||||||||||
Credit spread adjustment | 0.10% | ||||||||||
2-Year 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | SOFR | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 1.25% | ||||||||||
2-Year 2022B Tranche Loans | Pacific Gas & Electric Co (Utility) | Subsequent Event | Base Rate | |||||||||||
Debt [Line Items] | |||||||||||
Basis spread on variable rate | 0.25% | ||||||||||
First Mortgage Bonds, Stated Maturity 2024 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 1,000 | ||||||||||
Interest rate | 3.25% | ||||||||||
First Mortgage Bonds, Stated Maturity 2029 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 400 | ||||||||||
Interest rate | 4.20% | ||||||||||
First Mortgage Bonds, Stated Maturity 2032 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 450 | ||||||||||
Interest rate | 4.40% | ||||||||||
First Mortgage Bonds, Stated Maturity 2052 | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 550 | ||||||||||
Interest rate | 5.25% | ||||||||||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | |||||||||||
Debt [Line Items] | |||||||||||
Long-term debt, gross | $ 1,000 | $ 1,000 | $ 974 | ||||||||
Receivables Securitization Program | Pacific Gas & Electric Co (Utility) | Subsequent Event | |||||||||||
Debt [Line Items] | |||||||||||
Line of Credit Facility, Increase (Decrease), Net | $ 500 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - USD ($) | Apr. 14, 2022 | Feb. 08, 2022 | Jan. 31, 2022 | Mar. 31, 2022 | Apr. 21, 2022 | Jul. 08, 2021 | Apr. 30, 2021 |
Schedule Of Changes In Equity [Line Items] | |||||||
Shares outstanding (in shares) | 2,465,220,279 | ||||||
Cumulative and unpaid dividends | $ 59,100,000 | ||||||
Preferred stock dividend requirement | $ 3,500,000 | $ 2,000,000 | |||||
Subsequent Event | |||||||
Schedule Of Changes In Equity [Line Items] | |||||||
Shares outstanding (in shares) | 2,465,220,279 | ||||||
Fire Victim Trust | |||||||
Schedule Of Changes In Equity [Line Items] | |||||||
Number of shares exchanged (in shares) | 40,000,000 | ||||||
Number of shares sold (in shares) | 40,000,000 | ||||||
Shares sold, tax impact | $ 135,000,000 | ||||||
Fire Victim Trust | Subsequent Event | |||||||
Schedule Of Changes In Equity [Line Items] | |||||||
Number of shares exchanged (in shares) | 60,000,000 | ||||||
Number of shares sold (in shares) | 100,000,000 | ||||||
PG&E Corporation | Subsequent Event | |||||||
Schedule Of Changes In Equity [Line Items] | |||||||
Common stock, shares outstanding, adjusted (in shares) | 1,609,733,099 | ||||||
PG&E Corporation | Common Stock | At The Market Equity Distribution Program | |||||||
Schedule Of Changes In Equity [Line Items] | |||||||
Sale of stock, number of shares issued in transaction, amount | $ 400,000,000 | $ 400,000,000 | |||||
PG&E Corporation | Minimum | |||||||
Schedule Of Changes In Equity [Line Items] | |||||||
Percentage of equity security ownership with board of director approval | 4.75% | 4.75% | |||||
PG&E Corporation | Minimum | Subsequent Event | |||||||
Schedule Of Changes In Equity [Line Items] | |||||||
Percentage of equity security ownership with board of director approval | 3.10% |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of PG&E Corporation's Income Available for Common Shareholders and Weighted Average Shares of Common Stock Outstanding for Calculating Diluted EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Loss attributable to common shareholders | $ 475 | $ 120 |
Weighted average common shares outstanding, basic (in shares) | 1,986 | 1,985 |
Add incremental shares from assumed conversions: | ||
Equity Units (in shares) | 8 | 5 |
Employee share-based compensation (in shares) | 140 | 141 |
Weighted average common share outstanding, diluted (in shares) | 2,134 | 2,131 |
Total Loss per common share, diluted (in dollars per share) | $ 0.22 | $ 0.06 |
DERIVATIVES (Volumes of Outstan
DERIVATIVES (Volumes of Outstanding Derivative Contracts) (Details) | Mar. 31, 2022MMBTUMWh | Dec. 31, 2021MMBTUMWh |
Forwards, Futures and Swaps | Natural Gas (MMBtus) | ||
Derivative [Line Items] | ||
Contract Volume | 187,529,848 | 173,361,635 |
Forwards, Futures and Swaps | Electricity (Megawatt-hours) | ||
Derivative [Line Items] | ||
Contract Volume | MWh | 11,155,427 | 10,283,639 |
Options | Natural Gas (MMBtus) | ||
Derivative [Line Items] | ||
Contract Volume | 7,450,000 | 14,420,000 |
Options | Electricity (Megawatt-hours) | ||
Derivative [Line Items] | ||
Contract Volume | 543,600 | 288,000 |
Congestion revenue rights | Electricity (Megawatt-hours) | ||
Derivative [Line Items] | ||
Contract Volume | MWh | 235,009,420 | 239,857,610 |
DERIVATIVES (Outstanding Deriva
DERIVATIVES (Outstanding Derivative Balances) (Details) - Commodity Contract - Pacific Gas & Electric Co (Utility) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives And Hedging Activities [Line Items] | ||
Netting | $ (33) | $ (42) |
Netting | 0 | 0 |
Cash Collateral | 69 | 170 |
Total Derivative Balance | 36 | 128 |
Current assets – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Netting | 76 | 58 |
Netting | (5) | (9) |
Cash Collateral | 49 | 152 |
Total Derivative Balance | 120 | 201 |
Other noncurrent assets – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Netting | 165 | 169 |
Netting | 0 | 0 |
Cash Collateral | 0 | 0 |
Total Derivative Balance | 165 | 169 |
Current liabilities – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Balance | (61) | (53) |
Netting | 5 | 9 |
Cash Collateral | 20 | 18 |
Total Derivative Balance | (36) | (26) |
Noncurrent liabilities – other | ||
Derivatives And Hedging Activities [Line Items] | ||
Gross Derivative Balance | (213) | (216) |
Netting | 0 | 0 |
Cash Collateral | 0 | 0 |
Total Derivative Balance | $ (213) | $ (216) |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Short-term investments | $ 245 | $ 289 |
Price risk management instruments, netting | 44 | 143 |
Price risk management instruments, assets | 285 | 370 |
TOTAL ASSETS | 5,219 | 5,558 |
Liabilities: | ||
Price risk management instruments, netting | (25) | (27) |
TOTAL LIABILITIES | 249 | 242 |
Amount primarily related to deferred taxes on appreciation of investment value | 731 | 783 |
Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 73 | 22 |
Global equity securities | 2,297 | 2,504 |
Fixed-income securities | 1,966 | 2,024 |
TOTAL ASSETS | 4,366 | 4,581 |
Rabbi trusts | ||
Assets: | ||
Fixed-income securities | 99 | 104 |
Life insurance contracts | 73 | 76 |
TOTAL ASSETS | 172 | 180 |
Long-term disability trust | ||
Assets: | ||
Short-term investments | 6 | 6 |
TOTAL ASSETS | 151 | 138 |
Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, netting | 4 | 6 |
Price risk management instruments, assets | 240 | 229 |
Liabilities: | ||
Price risk management instruments, netting | (16) | (24) |
Price risk management instruments, liabilities | 247 | 235 |
Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, netting | 40 | 137 |
Price risk management instruments, assets | 45 | 141 |
Liabilities: | ||
Price risk management instruments, netting | (9) | (3) |
Price risk management instruments, liabilities | 2 | 7 |
Level 1 | ||
Assets: | ||
Short-term investments | 245 | 289 |
Price risk management instruments, gross subject to netting | 0 | 0 |
TOTAL ASSETS | 3,756 | 3,979 |
Liabilities: | ||
TOTAL LIABILITIES | 0 | 0 |
Level 1 | Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 73 | 22 |
Global equity securities | 2,297 | 2,504 |
Fixed-income securities | 1,135 | 1,158 |
TOTAL ASSETS | 3,505 | 3,684 |
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 | 6 | 6 |
TOTAL ASSETS | 6 | 6 |
Level 1 | Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Level 1 | Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Level 2 | ||
Assets: | ||
Short-term investments | 0 | 0 |
Price risk management instruments, gross subject to netting | 32 | 13 |
TOTAL ASSETS | 1,035 | 1,059 |
Liabilities: | ||
TOTAL LIABILITIES | 41 | 21 |
Level 2 | Nuclear decommissioning trusts | ||
Assets: | ||
Short-term investments | 0 | 0 |
Global equity securities | 0 | 0 |
Fixed-income securities | 831 | 866 |
TOTAL ASSETS | 831 | 866 |
Level 2 | Rabbi trusts | ||
Assets: | ||
Fixed-income securities | 99 | 104 |
Life insurance contracts | 73 | 76 |
TOTAL ASSETS | 172 | 180 |
Level 2 | Long-term disability trust | ||
Assets: | ||
Short-term investments | 0 | 0 |
TOTAL ASSETS | 0 | 0 |
Level 2 | Price Risk Derivative, Electricity | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 27 | 9 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 30 | 11 |
Level 2 | Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 5 | 4 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 11 | 10 |
Level 3 | ||
Assets: | ||
Short-term investments | 0 | 0 |
Price risk management instruments, gross subject to netting | 209 | 214 |
TOTAL ASSETS | 209 | 214 |
Liabilities: | ||
TOTAL LIABILITIES | 233 | 248 |
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 | 214 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 233 | 248 |
Level 3 | Price Risk Derivative, Gas | ||
Assets: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Liabilities: | ||
Price risk management instruments, gross subject to netting | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share | Nuclear decommissioning trusts | ||
Assets: | ||
Assets measured at NAV | 30 | 31 |
Fair Value Measured at Net Asset Value Per Share | Long-term disability trust | ||
Assets: | ||
Assets measured at NAV | $ 145 | $ 132 |
FAIR VALUE MEASUREMENTS (Level
FAIR VALUE MEASUREMENTS (Level 3 Measurements and Sensitivity Analysis) (Details) $ in Millions | Mar. 31, 2022USD ($)$ / shares | Dec. 31, 2021USD ($)$ / shares |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ | $ 285 | $ 370 |
Market approach | Congestion revenue rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ | 180 | 188 |
Liabilities | $ | 95 | 93 |
Discounted cash flow | Power purchase agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ | 29 | 26 |
Liabilities | $ | $ 138 | $ 155 |
CRR auction prices | Market approach | Congestion revenue rights | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | (2,265.69) | (40.77) |
CRR auction prices | Market approach | Congestion revenue rights | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 2,265.94 | 2,265.94 |
CRR auction prices | Market approach | Congestion revenue rights | Weighted average price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 0.41 | 0.40 |
Forward prices | Discounted cash flow | Power purchase agreements | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | (6.75) | (7.97) |
Forward prices | Discounted cash flow | Power purchase agreements | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 247.15 | 256.20 |
Forward prices | Discounted cash flow | Power purchase agreements | Weighted average price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (in dollars per mwh) | 50.98 | 47.17 |
FAIR VALUE MEASUREMENTS (Leve_2
FAIR VALUE MEASUREMENTS (Level 3 Reconciliation) (Details) - Level 3 - Price risk management instruments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Asset (liability) balance, beginning of period | $ (34) | $ (72) |
Included in regulatory assets and liabilities or balancing accounts | 10 | (22) |
Asset (liability) balance, end of period | $ (24) | $ (94) |
FAIR VALUE MEASUREMENTS (Carryi
FAIR VALUE MEASUREMENTS (Carrying Amount and Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | $ 4,618 | $ 4,619 |
Carrying Amount | Pacific Gas & Electric Co (Utility) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | 32,704 | 31,816 |
Level 2 | Fair Value | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | 4,610 | 4,796 |
Level 2 | Fair Value | Pacific Gas & Electric Co (Utility) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Debt financial instrument | $ 30,702 | $ 35,803 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Unrealized Gains Losses Related to Available-for-sale Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,546 | $ 2,439 |
Total Unrealized Gains | 1,914 | 2,164 |
Total Unrealized Losses | (94) | (22) |
Total Fair Value | 4,366 | 4,581 |
Amount primarily related to deferred taxes on appreciation of investment value | 731 | 783 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73 | 22 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
Total Fair Value | 73 | 22 |
Global equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 468 | 479 |
Total Unrealized Gains | 1,876 | 2,066 |
Total Unrealized Losses | (17) | (10) |
Total Fair Value | 2,327 | 2,535 |
Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,005 | 1,938 |
Total Unrealized Gains | 38 | 98 |
Total Unrealized Losses | (77) | (12) |
Total Fair Value | $ 1,966 | $ 2,024 |
FAIR VALUE MEASUREMENTS (Sche_2
FAIR VALUE MEASUREMENTS (Schedule of Maturities on Debt Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Total maturities of fixed-income securities | $ 4,366 | $ 4,581 |
Fixed-income securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 1 year | 8 | |
1–5 years | 611 | |
5–10 years | 458 | |
More than 10 years | 889 | |
Total maturities of fixed-income securities | $ 1,966 | $ 2,024 |
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, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Proceeds from sales and maturities of nuclear decommissioning investments | $ 421 | $ 551 |
Gross realized gains on securities | 56 | 55 |
Gross realized losses on securities | $ (7) | $ (13) |
WILDFIRE-RELATED CONTINGENCIE_2
WILDFIRE-RELATED CONTINGENCIES (2019 Kincade Fire, 2020 Zogg Fire and 2021 Dixie Fire) (Details) $ in Thousands, numberOfPeople in Millions | Mar. 18, 2022USD ($) | Jan. 05, 2022USD ($) | Oct. 29, 2021USD ($)a | Nov. 04, 2019numberOfPeople | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Apr. 28, 2022USD ($) | Apr. 21, 2022numberOfPlaintiffcomplaintnumberOfClaimHolderplaintiff | Apr. 11, 2022USD ($)notice | Apr. 08, 2022USD ($)position | Jan. 28, 2022notice | Jan. 27, 2022notice | Dec. 02, 2021transmissionLine | Nov. 18, 2021notice | Sep. 24, 2021misdemeanorfelony | Aug. 31, 2021USD ($) | Jul. 13, 2021astructurenumberOfFatality | May 11, 2021count | Apr. 06, 2021felonymisdemeanor | Sep. 27, 2020ainjuryfatalitystructure | Oct. 23, 2019ainjurystructurenumberOfFatality |
2019 Kincade fire | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of acres burned (acre) | a | 77,758 | ||||||||||||||||||||
Number of fatalities (fatality) | numberOfFatality | 0 | ||||||||||||||||||||
Number of injuries | injury | 4 | ||||||||||||||||||||
Number of structures destroyed (structure) | structure | 374 | ||||||||||||||||||||
Number of structures damaged (structure) | structure | 60 | ||||||||||||||||||||
Number of people part of mandatory evacuation order | numberOfPeople | 0.2 | ||||||||||||||||||||
Number of felonies (felony) | notice | 5 | 2 | |||||||||||||||||||
Number of misdemeanors dropped (misdemeanor) | notice | 6 | ||||||||||||||||||||
Number of transmission lines | transmissionLine | 70 | ||||||||||||||||||||
Loss contingency liability | $ 765,000 | $ 769,000 | |||||||||||||||||||
Fire fighting costs recovery requested | $ 90,000 | ||||||||||||||||||||
Potential loss contingency | 800,000 | ||||||||||||||||||||
Insurance receivable | 430,000 | ||||||||||||||||||||
2019 Kincade fire | Subsequent Event | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Stipulation costs payable | $ 20,250 | ||||||||||||||||||||
Number of new positions headquartered (position) | position | 80 | ||||||||||||||||||||
Number of complaints (complaint) | complaint | 103 | ||||||||||||||||||||
Number of plaintiffs represented by complaints | plaintiff | 2,656 | ||||||||||||||||||||
2019 Kincade fire | Pacific Gas & Electric Co (Utility) | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of demurrer filed (count) | count | 25 | ||||||||||||||||||||
Number of criminal complaints (count) | count | 33 | ||||||||||||||||||||
Loss contingency liability | 40,000 | ||||||||||||||||||||
Loss contingency, costs incurred | 85,000 | ||||||||||||||||||||
2019 Kincade fire | Pacific Gas & Electric Co (Utility) | Sonoma Contry District Attorney | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of felonies (felony) | felony | 5 | ||||||||||||||||||||
Number of misdemeanors (misdemeanor) | misdemeanor | 28 | ||||||||||||||||||||
2020 Zogg fire | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of acres burned (acre) | a | 56,338 | ||||||||||||||||||||
Number of fatalities (fatality) | fatality | 4 | ||||||||||||||||||||
Number of injuries | injury | 1 | ||||||||||||||||||||
Number of structures destroyed (structure) | structure | 204 | ||||||||||||||||||||
Number of structures damaged (structure) | structure | 27 | ||||||||||||||||||||
Number of demurrer filed (count) | notice | 10 | ||||||||||||||||||||
Number of criminal complaints (count) | notice | 31 | ||||||||||||||||||||
Loss contingency liability | 177,000 | 211,000 | |||||||||||||||||||
Fire suppression and other costs | $ 34,500 | ||||||||||||||||||||
Potential loss contingency | 375,000 | ||||||||||||||||||||
Liability insurance coverage | 611,000 | ||||||||||||||||||||
Insurance receivable | 338,000 | ||||||||||||||||||||
Initial self-insured retention per occurrence | 60,000 | ||||||||||||||||||||
Legal fees | 23,000 | ||||||||||||||||||||
2020 Zogg fire | Subsequent Event | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of complaints (complaint) | complaint | 23 | ||||||||||||||||||||
Number of plaintiffs represented by complaints | numberOfPlaintiff | 449 | ||||||||||||||||||||
Zogg Complaint, 2020 | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of felonies (felony) | felony | 11 | ||||||||||||||||||||
Number of misdemeanors (misdemeanor) | misdemeanor | 20 | ||||||||||||||||||||
2021 Dixie fire | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of acres burned (acre) | a | 963,309 | ||||||||||||||||||||
Number of fatalities (fatality) | numberOfFatality | 1 | ||||||||||||||||||||
Number of structures destroyed (structure) | structure | 1,329 | ||||||||||||||||||||
Number of structures damaged (structure) | structure | 95 | ||||||||||||||||||||
Loss contingency, costs incurred | $ 630,000 | ||||||||||||||||||||
Potential loss contingency | $ 1,150,000 | ||||||||||||||||||||
Insurance receivable | 562,000 | ||||||||||||||||||||
Number of residential structures destroyed (structure) | structure | 717 | ||||||||||||||||||||
Number of commercial structures destroyed (structure) | structure | 143 | ||||||||||||||||||||
Number of other structures destroyed (structure) | structure | 443 | ||||||||||||||||||||
Probable of recovery | 1,164,000 | ||||||||||||||||||||
2021 Dixie fire | Subsequent Event | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Stipulation costs payable | $ 34,750 | ||||||||||||||||||||
Number of new positions headquartered (position) | notice | 80 | ||||||||||||||||||||
Number of complaints (complaint) | numberOfClaimHolder | 32 | ||||||||||||||||||||
Number of plaintiffs represented by complaints | numberOfClaimHolder | 1,122 | ||||||||||||||||||||
2021 Dixie fire | FERC TO rates | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Probable of recovery | 102,000 | ||||||||||||||||||||
2021 Dixie fire | WEMA | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Probable of recovery | 350,000 | ||||||||||||||||||||
2021 Dixie fire | National Park | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of acres burned (acre) | a | 70,000 | ||||||||||||||||||||
2021 Dixie fire | National Forrest | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of acres burned (acre) | a | 685,000 | ||||||||||||||||||||
Zogg Fire, 2020 and Dixie Fire, 2021 | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Liability insurance coverage | 900,000 | ||||||||||||||||||||
Insurance Coverage for Wildfire Events | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Liability insurance coverage | $ 600,000 | ||||||||||||||||||||
Initial self-insured retention per occurrence | $ 60,000 | ||||||||||||||||||||
Insurance Coverage for Wildfire Events | Subsequent Event | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Liability insurance coverage | $ 340,000 |
WILDFIRE-RELATED CONTINGENCIE_3
WILDFIRE-RELATED CONTINGENCIES (Losses For Claims) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
2019 Kincade fire | |
Loss Contingency Accrual [Roll Forward] | |
Loss accrual, beginning balance | $ 769 |
Accrued Losses | 0 |
Payments | (4) |
Loss accrual, ending balance | 765 |
2019 Kincade fire | Pacific Gas & Electric Co (Utility) | |
Loss Contingency Accrual [Roll Forward] | |
Loss accrual, ending balance | 40 |
2020 Zogg fire | |
Loss Contingency Accrual [Roll Forward] | |
Loss accrual, beginning balance | 211 |
Accrued Losses | 0 |
Payments | (34) |
Loss accrual, ending balance | $ 177 |
WILDFIRE-RELATED CONTINGENCIE_4
WILDFIRE-RELATED CONTINGENCIES (Loss Recoveries) (Details) - 2021 Dixie fire $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 1,164 |
Insurance | |
Loss Contingencies [Line Items] | |
Probable of recovery | 562 |
FERC TO rates | |
Loss Contingencies [Line Items] | |
Probable of recovery | 102 |
WEMA | |
Loss Contingencies [Line Items] | |
Probable of recovery | 350 |
Wildfire Fund | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 150 |
WILDFIRE-RELATED CONTINGENCIE_5
WILDFIRE-RELATED CONTINGENCIES (Insurance) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 28, 2022 | Aug. 01, 2023 | Apr. 01, 2023 | Mar. 31, 2022 | Aug. 31, 2021 | |
Loss Contingencies [Line Items] | |||||
Insurance premium costs, recovery, coverage amount | $ 1,400 | ||||
Insurance Coverage for Wildfire Events | |||||
Loss Contingencies [Line Items] | |||||
Liability insurance coverage | $ 600 | ||||
Initial self-insured retention per occurrence | 60 | ||||
Insurance Coverage for Wildfire Events | Forecast | |||||
Loss Contingencies [Line Items] | |||||
Costs for insurance coverage | $ 516 | $ 263 | |||
Insurance Coverage for Wildfire Events | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Liability insurance coverage | $ 340 | ||||
Insurance Coverage For Non-Wildfire Liabilities | |||||
Loss Contingencies [Line Items] | |||||
Initial self-insured retention per occurrence | $ 10 | ||||
Insurance Coverage For Non-Wildfire Liabilities | Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Liability insurance coverage | 725 | ||||
Costs for insurance coverage | $ 154 |
WILDFIRE-RELATED CONTINGENCIE_6
WILDFIRE-RELATED CONTINGENCIES (Insurance Receivable) (Details) - USD ($) $ in Millions | Apr. 20, 2022 | Mar. 31, 2022 |
Insurance Receivable [Roll Forward] | ||
Insurance Receivable, Beginning Balance | $ 1,247 | |
Accrued insurance recoveries | 0 | |
Reimbursements | 43 | |
Insurance Receivable, Ending Balance | 1,204 | |
2021 Dixie fire | ||
Insurance Receivable [Roll Forward] | ||
Insurance Receivable, Beginning Balance | 563 | |
Accrued insurance recoveries | (1) | |
Reimbursements | 0 | |
Insurance Receivable, Ending Balance | 562 | |
Insurance receivable | 562 | |
2020 Zogg fire | ||
Insurance Receivable [Roll Forward] | ||
Insurance Receivable, Beginning Balance | 270 | |
Accrued insurance recoveries | 1 | |
Reimbursements | 43 | |
Insurance Receivable, Ending Balance | 228 | |
Insurance receivable | 338 | |
2020 Zogg fire | Subsequent Event | ||
Insurance Receivable [Roll Forward] | ||
Reimbursements | $ 28 | |
2019 Kincade fire | ||
Insurance Receivable [Roll Forward] | ||
Insurance Receivable, Beginning Balance | 414 | |
Accrued insurance recoveries | 0 | |
Reimbursements | 0 | |
Insurance Receivable, Ending Balance | 414 | |
Insurance receivable | $ 430 |
WILDFIRE-RELATED CONTINGENCIE_7
WILDFIRE-RELATED CONTINGENCIES (Regulatory Recovery) (Details) - 2021 Dixie fire $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 1,164 |
FERC TO rates | |
Loss Contingencies [Line Items] | |
Probable of recovery | 102 |
WEMA | |
Loss Contingencies [Line Items] | |
Probable of recovery | $ 350 |
WILDFIRE-RELATED CONTINGENCIE_8
WILDFIRE-RELATED CONTINGENCIES (Wildfire Fund) (Details) - USD ($) $ in Millions | Aug. 23, 2019 | Mar. 31, 2022 |
Loss Contingencies [Line Items] | ||
Disallowance cap, transmission and distribution 2022 equity rate base | $ 3,000 | |
Initial safety certification, documentation provided, period | 90 days | |
Initial safety certification, period | 12 months | |
Expected capitalization, proceeds of bond | 10,500 | |
Expected capitalization, initial contribution | 7,500 | |
Expected capitalization, annual contribution | 300 | |
2021 Dixie fire | ||
Loss Contingencies [Line Items] | ||
Probable of recovery | 1,164 | |
2021 Dixie fire | Wildfire Fund | ||
Loss Contingencies [Line Items] | ||
Probable of recovery | $ 150 |
WILDFIRE-RELATED CONTINGENCIE_9
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Derivative Litigation) (Details) - Breach of Fiduciary Duties $ in Millions | Apr. 05, 2022USD ($) | Feb. 24, 2021claim | Nov. 20, 2017lawsuit |
Loss Contingencies [Line Items] | |||
Number of causes of action (causes) | claim | 2 | ||
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Settlement amount proposed | $ | $ 125 | ||
Derivative Lawsuits Filed in the San Francisco County Superior Court | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits filed against company (lawsuit, complaint) | lawsuit | 2 |
WILDFIRE-RELATED CONTINGENCI_10
WILDFIRE-RELATED CONTINGENCIES (Wildfire-Related Securities Class Action Litigation and Debt Claims) (Details) - Wildfire-Related Class Action $ in Millions | Mar. 31, 2022USD ($) | Feb. 22, 2019notice | 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) | notice | 4 | ||
Percentage of common stock owned, Fire Victim Trust if common issues additional shares | 22.19% | ||
Liability insurance coverage | $ | $ 400 |
WILDFIRE-RELATED CONTINGENCI_11
WILDFIRE-RELATED CONTINGENCIES (District Attorneys Offices Investigations) (Details) - Pacific Gas & Electric Co (Utility) - Complaints Brought By Butte County District Attorney - Loss from Wildfires | Mar. 17, 2020count |
Loss Contingencies [Line Items] | |
Number of guilty involuntary manslaughter pleas | 84 |
Number of count related to unlawfully causing a fire (count) | 1 |
OTHER CONTINGENCIES AND COMMI_3
OTHER CONTINGENCIES AND COMMITMENTS (Transmission Owner Rate) (Details) - USD ($) $ in Millions | Mar. 17, 2022 | Sep. 21, 2018 | Mar. 31, 2022 |
Transmission Owner Rate Case Revenue | |||
Loss Contingencies [Line Items] | |||
Regulatory liabilities | $ 339 | ||
Regulatory assets | 207 | ||
Pacific Gas & Electric Co (Utility) | |||
Loss Contingencies [Line Items] | |||
Increase in regulatory liabilities | $ 62.5 | ||
Pacific Gas & Electric Co (Utility) | Electric | |||
Loss Contingencies [Line Items] | |||
Requested revenue rate | 98.85% | ||
Requested return on equity rate | 9.26% | ||
Requested return on equity rate, incentive component | 0.50% | ||
Actual return on equity rate | 9.76% |
OTHER CONTINGENCIES AND COMMI_4
OTHER CONTINGENCIES AND COMMITMENTS (Interim Rate Relief Subject to Refund) (Details) $ in Millions | Sep. 21, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 17, 2022USD ($) | Oct. 23, 2020USD ($) | Sep. 30, 2020USD ($) | Aug. 07, 2019USD ($) | Apr. 25, 2019USD ($) | Mar. 30, 2018USD ($)catastrophicEvent |
CEMA Interim Rate Relief | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cost recovery | $ 683 | $ 763 | $ 373 | |||||
CEMA Interim Rate Relief | Mid 2016 - Early 2017 | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cost recovery | $ 183 | |||||||
Number of catastrophic events | catastrophicEvent | 7 | |||||||
CEMA Interim Rate Relief | 2016 to 2017 | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cost recovery | $ 405 | |||||||
WMCE Interim Rate Relief | ||||||||
Loss Contingencies [Line Items] | ||||||||
Expenses and capital expenditures, disallowed costs | $ 1,180 | |||||||
Expenses and capital expenditures, capital expenditures | 801 | |||||||
Cost recovery, increase to revenue requirement | $ 1,280 | |||||||
Interim rate relief | $ 447 | |||||||
Amortization period | 17 months | |||||||
Additional revenue requirement | $ 591 | |||||||
Additional amortization period | 24 months | |||||||
WMCE Interim Rate Relief | Fire hazard prevention memorandum account | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cost recovery | $ 293 | |||||||
WMCE Interim Rate Relief | Fire risk and wildfire mitigation memorandum account | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cost recovery | 740 | |||||||
WMCE Interim Rate Relief | Catastrophic event memorandum account | ||||||||
Loss Contingencies [Line Items] | ||||||||
Cost recovery | $ 251 |
OTHER CONTINGENCIES AND COMMI_5
OTHER CONTINGENCIES AND COMMITMENTS - 2022 Cost of Capital Application (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Annual cost of capital adjustment, indicator | 4.50% | |
Annual cost of capital adjustment, basis point maximum | 100 | |
Proposed cost of long-term debt | 4.14% | |
Proposed return on preferred stock | 5.52% | |
Proposed return on equity | 11.00% | |
Annual cost of capital adjustment, indicator, basis point | 117 | |
Decrease in jurisdictional revenue requirement | $ 163 | |
Electric | ||
Loss Contingencies [Line Items] | ||
Decrease in jurisdictional revenue requirement | 99 | |
Natural gas | ||
Loss Contingencies [Line Items] | ||
Decrease in jurisdictional revenue requirement | $ 64 | |
Extraordinary Circumstances | ||
Loss Contingencies [Line Items] | ||
Cost of long-term debt | 4.17% | |
Return on preferred equity | 5.52% | |
Return on equity | 10.25% | |
Not Extraordinary Circumstances | ||
Loss Contingencies [Line Items] | ||
Cost of long-term debt | 5.52% | |
Return on preferred equity | 9.67% | |
Return on equity | 4.15% |
OTHER CONTINGENCIES AND COMMI_6
OTHER CONTINGENCIES AND COMMITMENTS (2015 Gas Transmission and Storage Rate Case and 2011-2014 Gas Transmission and Storage Capital Expenditures Audit) (Details) - Disallowance of Plant Costs - USD ($) $ in Millions | Jul. 07, 2021 | Jun. 23, 2016 | Jul. 31, 2020 |
Loss Contingencies [Line Items] | |||
Gas transmission and storage capital disallowance | $ 696 | ||
Permanently disallowed capital | 120 | ||
Amount subject to audit | $ 576 | ||
Capital expenditures for future recovery | $ 512 | ||
Loss Contingency Nature, Period One | |||
Loss Contingencies [Line Items] | |||
Capital expenditures for future recovery, seeking recovery | $ 416.3 | ||
Capital expenditures for future recovery, pending authorization | $ 356.3 | ||
Loss Contingency Nature, Period Two | |||
Loss Contingencies [Line Items] | |||
Capital expenditures for future recovery, pending authorization | $ 313.3 | ||
Capital expenditures for future recovery, pending authorization, amortization period | 60 months | ||
Loss Contingency Nature, Period Three | |||
Loss Contingencies [Line Items] | |||
Capital expenditures for future recovery, pending authorization | $ 43 | ||
Capital expenditures for future recovery, pending authorization, amortization period | 12 months |
OTHER CONTINGENCIES AND COMMI_7
OTHER CONTINGENCIES AND COMMITMENTS (Other Matters) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued legal liabilities | $ 85 | $ 77 |
OTHER CONTINGENCIES AND COMMI_8
OTHER CONTINGENCIES AND COMMITMENTS (PSPS Class Action) (Details) $ in Billions | Dec. 19, 2019USD ($) |
PSPS Class Action | Pending Litigation | Pacific Gas & Electric Co (Utility) | |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought | $ 2.5 |
OTHER CONTINGENCIES AND COMMI_9
OTHER CONTINGENCIES AND COMMITMENTS (Schedule Environmental Remediation Liability Composed) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Disclosure Commitments And Contingencies Environmental Remediation Liability Composed [Abstract] | ||
Topock natural gas compressor station | $ 296 | $ 299 |
Hinkley natural gas compressor station | 121 | 123 |
Former manufactured gas plant sites owned by the Utility or third parties | 662 | 667 |
Utility-owned generation facilities (other than fossil fuel-fired), other facilities, and third-party disposal sites | 112 | 104 |
Fossil fuel-fired generation facilities and sites | 70 | 70 |
Total environmental remediation liability | $ 1,261 | $ 1,263 |
OTHER CONTINGENCIES AND COMM_10
OTHER CONTINGENCIES AND COMMITMENTS (Environmental Remediation Contingencies Narrative) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Long-term Purchase Commitment [Line Items] | |
Amount of environmental loss accrual expected to be recovered | $ 984 |
Topock Site | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 230 |
Topock Site | Pacific Gas & Electric Co (Utility) | |
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 | $ 138 |
Former Manufactured Gas Plant | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 475 |
Former Manufactured Gas Plant | Pacific Gas & Electric Co (Utility) | |
Long-term Purchase Commitment [Line Items] | |
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 | $ 50 |
Utility Owned Generation Facilities and Third Party Disposal Sites | Pacific Gas & Electric Co (Utility) | |
Long-term Purchase Commitment [Line Items] | |
Remediation cost recovery percentage | 90.00% |
Fossil Fuel Fired Generation | |
Long-term Purchase Commitment [Line Items] | |
Utility undiscounted future costs | $ 43 |
OTHER CONTINGENCIES AND COMM_11
OTHER CONTINGENCIES AND COMMITMENTS (Nuclear Insurance and Purchase Commitments) (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)nuclear_generating_unit | Dec. 31, 2021USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
Number of nuclear generating units (nuclear generating unit) | nuclear_generating_unit | 2 | |
Total purchase commitments | $ 34,000,000,000 | $ 34,000,000,000 |
Nuclear Electric Insurance Limited and European Mutual Association for Nuclear Insurance | ||
Long-term Purchase Commitment [Line Items] | ||
Insurance coverage, loss | 400,000,000 | |
Humboldt Bay Unit | ||
Long-term Purchase Commitment [Line Items] | ||
Amount of property damage coverage provided by NEIL | 50,000,000 | |
Nuclear Incident | ||
Long-term Purchase Commitment [Line Items] | ||
Amount of property damage and business interruption coverage provided by NEIL for Diablo Canyon | 3,200,000,000 | |
Non-Nuclear Incident | ||
Long-term Purchase Commitment [Line Items] | ||
Amount of property damage and business interruption coverage provided by NEIL for Diablo Canyon | 2,500,000,000 | |
European Mutual Association for Nuclear Insurance | ||
Long-term Purchase Commitment [Line Items] | ||
Full insurance policy limit | 200,000,000 | |
Potential premium obligation | 4,000,000 | |
Nuclear Electric Insurance Limited | ||
Long-term Purchase Commitment [Line Items] | ||
Potential premium obligation | $ 41,000,000 |
OTHER CONTINGENCIES AND COMM_12
OTHER CONTINGENCIES AND COMMITMENTS (Oakland Headquarters Lease) (Details) ft² in Thousands, $ in Millions | Oct. 23, 2020USD ($)ft² |
Commitments and Contingencies Disclosure [Abstract] | |
Rentable square feet | ft² | 910 |
Lease, option payment letter of credit | $ 75 |
Lease, security letter of credit | $ 75 |
Term of contract | 34 years 11 months |
Purchase options, land, value | $ 892 |