REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Tables)

12 Months Ended

Dec. 31, 2018

Long-term regulatory assets are comprised of the following:



	Balance at December 31,				Recovery Period
(in millions)	2018		2017		Recovery Period
Pension benefits ⁽¹⁾	$	1,947	$	1,954	Indefinitely
Environmental compliance costs	1,013		837		32 years
Utility retained generation ⁽²⁾	274		319		8 years
Price risk management	90		65		10 years
Unamortized loss, net of gain, on reacquired debt	76		79		25 years
Catastrophic event memorandum account⁽³⁾	790		274		TBD years
Wildfire expense memorandum account⁽⁴⁾	94		—		TBD years
Fire hazard prevention memorandum account⁽⁵⁾	263		1		TBD years
Other	417		264		Various
Total long-term regulatory assets	$	4,964	$	3,793

⁽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. Recovery of CEMA costs are subject to CPUC review and approval.

⁽⁴⁾Includes specific incremental wildfire liability costs the CPUC approved for tracking in June 2018. Recovery of WEMA costs are subject to CPUC review and approval.

⁽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 are subject to CPUC review and approval.

Long-Term Regulatory Liabilities

Long-term regulatory liabilities are comprised of the following:



	Balance at December 31,
(in millions)	2018		2017
Cost of removal obligations ⁽¹⁾	$	5,981	$	5,547
Deferred income taxes⁽²⁾	283		1,021
Recoveries in excess of AROs⁽³⁾	356		624
Public purpose programs ⁽⁴⁾	674		590
Retirement Plan⁽⁵⁾	421		418
Other	824		479
Total long-term regulatory liabilities	$	8,539	$	8,679

⁽¹⁾Represents the cumulative differences between asset removal costs recorded and amounts collected in rates for expected asset removal costs.

⁽²⁾ Represents the net of amounts owed to customers for deferred taxes collected at higher rates before the Tax Act and amounts owed to the Utility for reversal of deferred taxes subject to flow-through treatment. (See Note 8 below.)

⁽³⁾Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. (See Note 10 below.)

⁽⁴⁾ Represents amounts received from customers designated for public purpose program costs expected to be incurred beyond the next 12 months, primarily related to energy efficiency programs.

⁽⁵⁾ Represents cumulative differences between incurred costs and amounts collected in rates for Post-Retirement Medical, Post-Retirement Life and Long Term Disability Plans.

Current Regulatory Balancing Accounts Receivable

Current regulatory balancing accounts receivable and payable are comprised of the following:



	Receivable Balance at December 31,
(in millions)	2018		2017
Electric distribution	$	160	$	—
Electric transmission	128		139
Utility generation	79		—
Gas distribution and transmission	462		486
Energy procurement	168		71
Public purpose programs	111		103
Other	327		423
Total regulatory balancing accounts receivable	$	1,435	$	1,222

Current Regulatory Balancing Accounts Payable



	Payable Balance at December 31,
(in millions)	2018		2017
Electric distribution	$	—	$	72
Electric transmission	134		120
Utility generation	—		14
Gas distribution and transmission	9		—
Energy procurement	59		149
Public purpose programs	587		452
Other	287		313
Total regulatory balancing accounts payable	$	1,076	$	1,120