REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS

3 Months Ended

Mar. 31, 2020

REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS

Regulatory Assets and Liabilities

Regulatory Assets

Long-term regulatory assets are comprised of the following:


	Balance at
(in millions)	March 31, 2020		December 31, 2019
Pension benefits⁽¹⁾	$	1,790	$	1,823
Environmental compliance costs	1,053		1,062
Utility retained generation⁽²⁾	216		228
Price risk management	138		124
Unamortized loss, net of gain, on reacquired debt	59		63
Catastrophic event memorandum account ⁽³⁾	684		656
Wildfire expense memorandum account ⁽⁴⁾	443		423
Fire hazard prevention memorandum account ⁽⁵⁾	260		259
Fire risk mitigation memorandum account⁽⁶⁾	96		95
Wildfire mitigation plan memorandum account ⁽⁷⁾	840		558
Deferred income taxes ⁽⁸⁾	468		252
Other	557		523
Total long-term regulatory assets	$	6,604	$	6,066

⁽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-related 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.

⁽⁶⁾Includes costs associated with the 2019 Wildfire Mitigation Plan for the period January 1, 2019 through June 4, 2019. Recovery of FRMMA costs are subject to CPUC review and approval.

⁽⁷⁾ Includes costs associated with the 2019 Wildfire Mitigation Plan for the period June 5, 2019 through December 31, 2019 and the 2020 Wildfire Mitigation Plan for the period of January 1, 2020 through March 31, 2020. Recovery of WMPMA costs are subject to CPUC review and approval.

⁽⁸⁾ Represents cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP.

Regulatory Liabilities

Long-term regulatory liabilities are comprised of the following:


	Balance at
(in millions)	March 31, 2020		December 31, 2019
Cost of removal obligations⁽¹⁾	$	6,593	$	6,456
Recoveries in excess of AROs⁽²⁾	66		393
Public purpose programs⁽³⁾	903		817
Employee benefit plans⁽⁴⁾	760		750
Other	929		854
Total long-term regulatory liabilities	$	9,251	$	9,270

⁽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.

Regulatory Balancing Accounts

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


	Receivable Balance at
(in millions)	March 31, 2020		December 31, 2019
Electric distribution	$	213	$	—
Electric transmission	—		9
Gas distribution and transmission	45		363
Energy procurement	881		901
Public purpose programs	288		209
Other	675		632
Total regulatory balancing accounts receivable	$	2,102	$	2,114


	Payable Balance at
(in millions)	March 31, 2020		December 31, 2019
Electric distribution	$	—	$	31
Electric transmission	148		119
Gas distribution and transmission	74		45
Energy procurement	585		649
Public purpose programs	565		559
Other	473		394
Total regulatory balancing accounts payable	$	1,845	$	1,797

For more information, see Note 4 of the Notes to the Consolidated Financial Statements in Item 8 of the 2019 Form 10-K.