Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule Of Components Of Income Tax Expense (Benefit)

	PG&E Corporation									Utility
	Year Ended December 31,
(in millions)	2017		2016			2015			2017				2016			2015
Current:
Federal	$	(10)		$	(105)		$	(89)			$	61		$	(105)		$	(88)
State		48			(70)			11				50			(66)			6
Deferred:
Federal		481			218			131				326			229			136
State		6			16			(76)				4			16			(69)
Tax credits		(14)			(4)			(4)				(14)			(4)			(4)
Income tax provision (benefit)	$	511		$	55		$	(27)			$	427		$	70		$	(19)

Schedule Of Deferred Tax Assets And Liabilities

	PG&E Corporation				Utility
	Year Ended December 31,
(in millions)	2017		2016			2017		2016
Deferred income tax assets:
Tax carryforwards		830		1,851			736		1,596
Compensation		274		277			205		199
Income tax regulatory liability (1)		286		-			286		-
Other (2)		185		186			194		203
Total deferred income tax assets	$	1,575	$	2,314		$	1,421	$	1,998
Deferred income tax liabilities:
Property related basis differences		7,269		10,429			7,256		10,411
Income tax regulatory asset (1)		-		1,572			-		1,572
Other (3)		128		526			128		525
Total deferred income tax liabilities	$	7,397	$	12,527		$	7,384	$	12,508
Total net deferred income tax liabilities	$	5,822	$	10,213		$	5,963	$	10,510

(1) Represents the tax gross up portion of the deferred income tax for the cumulative differences between amounts recognized for ratemaking purposes and amounts recognized for tax, including the impact of changes in net deferred taxes associated with a lower federal income tax rate as a result of the Tax Act. (For more information see Note 3 above and “Tax Cuts and Jobs Act of 2017” below.)

(2) Amounts include benefits, environmental reserve, and customer advances for construction.

(3) Amounts primarily relate to regulatory balancing accounts.

Schedule Of Effective Income Tax Rate Reconciliation

	PG&E Corporation								Utility
	Year Ended December 31,
	2017		2016		2015			2017				2016			2015
Federal statutory income tax rate	35.0	%	35.0	%		35.0	%			35.0	%		35.0	%		35.0	%
Increase (decrease) in income
tax rate resulting from:
State income tax (net of
federal benefit) (1)	1.5		(2.5)			(4.9)				1.6			(2.2)			(4.8)
Effect of regulatory treatment
of fixed asset differences (2)	(16.5)		(23.7)			(33.6)				(16.8)			(23.4)			(33.7)
Tax credits	(1.1)		(0.8)			(1.3)				(1.1)			(0.8)			(1.3)
Benefit of loss carryback	-		(1.1)			(1.5)				-			(1.1)			(1.5)
Non deductible penalties (3)	0.4		0.8			4.3				0.4			0.8			4.3
Tax Reform Adjustment (4)	6.8		-			-				3.0			-			-
Other, net (5)	(2.5)		(3.9)			(1.1)				(2.0)			(3.5)			(0.2)
Effective tax rate	23.6	%	3.8	%		(3.1)	%			20.1	%		4.8	%		(2.2)	%

(1) Includes the effect of state flow-through ratemaking treatment. In 2016 and 2015, amounts reflect an agreement with the IRS on a 2011 audit related to electric transmission and distribution repairs deductions. The 2017 amount reflects an agreement with the IRS on a 2013 audit related to generation repairs deductions.

(2) Includes the effect of federal flow-through ratemaking treatment for certain property-related costs as authorized by the 2014 GRC decision in all periods presented and by the 2015 GT&S decision which impacted 2016 and 2017. All amounts are impacted by the level of income before income taxes. The 2014 GRC and 2015 GT&S rate case decisions authorized revenue requirements that reflect flow-through ratemaking for temporary income tax differences attributable to repair costs and certain other property-related costs for federal tax purposes. For these temporary tax differences, PG&E Corporation and the Utility recognize the deferred tax impact in the current period and record offsetting regulatory assets and liabilities. Therefore, PG&E Corporation’s and the Utility’s effective tax rates are impacted as these differences arise and reverse. PG&E Corporation and the Utility recognize such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates.

(3) Primarily represents the effects of a non-tax deductible penalty associated with the Butte fire for 2017, non-tax deductible fines and penalties associated with the natural gas distribution facilities record-keeping decision for 2016 and the effects of the San Bruno Penalty Decision for 2015.

(4) Represents the required adjustment to deferred tax balances, due to the federal income tax rate being lowered from 35% to 21% beginning in 2018 as a result of the enactment of the Tax Act.

(5) These amounts primarily represent the impact of tax audit settlements.

Schedule Of Change In Unrecognized Tax Benefits

	PG&E Corporation						Utility
(in millions)	2017		2016		2015		2017		2016		2015
Balance at beginning of year	$	388	$	468	$	713	$	382	$	462	$	707
Additions for tax position taken
during a prior year		-		-		40		-		-		40
Reductions for tax position
taken during a prior year		(71)		(77)		(349)		(71)		(77)		(349)
Additions for tax position
taken during the current year		48		56		64		48		56		64
Settlements		(14)		(59)		-		(8)		(59)		-
Expiration of statute		(3)		-		-		(3)		-		-
Balance at end of year	$	349	$	388	$	468	$	349	$	382	$	462

Schedule of Operating Loss And Tax Credit Carryforward Balances

	December 31,		Expiration
(in millions)	2017		Year
Federal:
Net operating loss carryforward	$	4,233	2031 - 2036
Tax credit carryforward		103	2029 - 2036
Charitable contribution loss carryforward		93	2019 - 2021

State:
Net operating loss carryforward	$	-	N/A
Tax credit carryforward		13	Various
Charitable contribution loss carryforward		24	2020 - 2021