Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule Of Components Of Income Tax Expense (Benefit)

	PG&E Corporation									Utility
	Year Ended December 31,
(in millions)	2016		2015			2014			2016				2015			2014
Current:
Federal	$	(105)		$	(89)		$	(84)			$	(105)		$	(88)		$	(84)
State		(70)			11			(41)				(66)			6			(29)
Deferred:
Federal		218			131			396				229			136			426
State		16			(76)			78				16			(69)			75
Tax credits		(4)			(4)			(4)				(4)			(4)			(4)
Income tax provision (benefit)	$	55		$	(27)		$	345			$	70		$	(19)		$	384

Schedule Of Deferred Tax Assets And Liabilities

	PG&E Corporation				Utility
	Year Ended December 31,
(in millions)	2016		2015			2016		2015
Deferred income tax assets:
Tax carryforwards		1,851		1,703			1,596		1,462
Other (1)		463		757			402		700
Total deferred income tax assets	$	2,314	$	2,460		$	1,998	$	2,162
Deferred income tax liabilities:
Property related basis differences		10,429		9,656			10,411		9,638
Income tax regulatory asset (2)		1,572		1,244			1,572		1,245
Other (3)		526		766			525		766
Total deferred income tax liabilities	$	12,527	$	11,666		$	12,508	$	11,649
Total net deferred income tax liabilities	$	10,213	$	9,206		$	10,510	$	9,487

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

(2) Represents the deferred income tax component of the cumulative differences between amounts recognized for ratemaking purposes and amounts recognized in accordance with GAAP. (See Note 3 of the Notes to the Consolidated Financial Statements in Item 8.)

(3) Amounts primarily relate to regulatory balancing accounts. Greenhouse gas allowances are temporary timing differences that reverse through regulatory balancing accounts.

Schedule Of Effective Income Tax Rate Reconciliation

	PG&E Corporation										Utility
	Year Ended December 31,
	2016			2015			2014			2016				2015			2014
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)	(2.5)		(4.9)			1.4			(2.2)				(4.8)			1.6
Effect of regulatory treatment
of fixed asset differences (2)	(23.7)		(33.6)			(15.0)			(23.4)				(33.7)			(14.7)
Tax credits	(0.8)		(1.3)			(0.7)			(0.8)				(1.3)			(0.7)
Benefit of loss carryback	(1.1)		(1.5)			(0.8)			(1.1)				(1.5)			(0.8)
Non deductible penalties (3)	0.8		4.3			0.3			0.8				4.3			0.3
Other, net (4)	(3.9)		(1.1)			(0.8)			(3.5)				(0.2)			0.4
Effective tax rate	3.8	%	(3.1)		%	19.4		%	4.8			%	(2.2)		%	21.1		%

(1) Includes the effect of state flow-through ratemaking treatment. In 2016 and 2015, amounts include an agreement with the IRS on a 2011 audit related to electric transmission and distribution 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 impacts only 2016. 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 non-tax deductible fines and penalties associated with the natural gas distribution facilities record-keeping decision for the year ended December 31, 2016 and the effects of the Penalty Decision for the year ended December 31, 2015. For more information about the Penalty Decision see “Enforcement and Litigation Matters” in Note 13 of the Notes to the Consolidated Financial Statements in Item 8.

(4) In 2016, the amount primarily represents the impact of tax audit settlements.

Schedule Of Change In Unrecognized Tax Benefits

	PG&E Corporation						Utility
(in millions)	2016		2015		2014		2016		2015		2014
Balance at beginning of year	$	468	$	713	$	666	$	462	$	707	$	660
Additions for tax position taken
during a prior year		-		40		7		-		40		7
Reductions for tax position
taken during a prior year		(77)		(349)		(9)		(77)		(349)		(9)
Additions for tax position
taken during the current year		56		64		61		56		64		61
Settlements		(59)		-		(12)		(59)		-		(12)
Balance at end of year	$	388	$	468	$	713	$	382	$	462	$	707

Schedule of Operating Loss And Tax Credit Carryforward Balances

	December 31,		Expiration
(in millions)	2016		Year
Federal:
Net operating loss carryforward	$	5,009	2029 - 2036
Tax credit carryforward		116	2029 - 2036
Charitable contribution loss carryforward		192	2017 - 2021

State:
Net operating loss carryforward	$	-	N/A
Tax credit carryforward		51	Various
Charitable contribution loss carryforward		112	2019 - 2021