FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2023

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 September 30, 2023
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	487	$	—	$	—	$	—	$	487

Nuclear decommissioning trusts
Short-term investments	125		—		—		—		125
Global equity securities	1,933		—		—		—		1,933
Fixed-income securities	1,112		855		—		—		1,967
Assets measured at NAV	—		—		—		—		16
Total nuclear decommissioning trusts (2)	3,170		855		—		—		4,041
Customer credit trust
Short-term investments	108		—		—		—		108
Global equity securities	92		—		—		—		92
Fixed-income securities	22		97		—		—		119
Total customer credit trust	222		97		—		—		319
Price risk management instruments (Note 8)
Electricity	—		13		326		1		340
Gas	—		20		—		9		29
Total price risk management instruments	—		33		326		10		369
Rabbi trusts
Short-term investments	98		—		—		—		98
Global equity securities	5		—		—		—		5

Life insurance contracts	—		66		—		—		66
Total rabbi trusts	103		66		—		—		169
Long-term disability trust
Short-term investments	6		—		—		—		6
Assets measured at NAV	—		—		—		—		110
Total long-term disability trust	6		—		—		—		116
TOTAL ASSETS	$	3,988	$	1,051	$	326	$	10	$	5,501
Liabilities:
Price risk management instruments (Note 8)
Electricity	$	—	$	29	$	188	$	(6)	$	211
Gas	—		18		—		(1)		17
TOTAL LIABILITIES	$	—	$	47	$	188	$	(7)	$	228

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.

(2) Represents amount before deducting $631 million primarily related to deferred taxes on appreciation of investment value.


	Fair Value Measurements
	December 31, 2022
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	658	$	—	$	—	$	—	$	658
Fixed-income securities	—		49		—		—		49
Nuclear decommissioning trusts
Short-term investments	117		—		—		—		117
Global equity securities	1,845		—		—		—		1,845
Fixed-income securities	1,094		791		—		—		1,885
Assets measured at NAV	—		—		—		—		25
Total nuclear decommissioning trusts (2)	3,056		791		—		—		3,872
Customer credit trust
Short-term investments	19		—		—		—		19
Global equity securities	218		—		—		—		218
Fixed-income securities	216		292		—		—		508
Total customer credit trust	453		292		—		—		745
Price risk management instruments (Note 8)
Electricity	—		94		432		40		566
Gas	—		604		—		327		931
Total price risk management instruments	—		698		432		367		1,497
Rabbi trusts
Short-term investments	25		—		—		—		25
Global equity securities	5		—		—		—		5
Fixed-income securities	—		69		—		—		69
Life insurance contracts	—		64		—		—		64
Total rabbi trusts	30		133		—		—		163
Long-term disability trust
Short-term investments	10		—		—		—		10
Assets measured at NAV	—		—		—		—		133
Total long-term disability trust	10		—		—		—		143
TOTAL ASSETS	$	4,207	$	1,963	$	432	$	367	$	7,127
Liabilities:
Price risk management instruments (Note 8)
Electricity	$	—	$	10	$	233	$	(20)	$	223
Gas	—		172		—		(166)		6
TOTAL LIABILITIES	$	—	$	182	$	233	$	(186)	$	229

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.

(2) Represents amount before deducting $575 million, primarily related to deferred taxes on appreciation of investment value.

Fair Value Measurement Inputs and Valuation Techniques

Fair Value at

(in millions)

At September 30, 2023

Valuation
Technique

Unobservable
Input

Fair Value Measurement

Assets

Liabilities

Range (1)/Weighted-Average Price (2)

Congestion revenue rights

282

112

Market approach

CRR auction prices

$ (145.09) - 287.80 / 1.07

Power purchase agreements

Discounted cash flow

Forward prices

$ 1.49 - 187.10 / 59.85

(1) Represents price per MWh.

(2) Unobservable inputs were weighted by the relative fair value of the instruments.

Fair Value at

(in millions)

At December 31, 2022

Valuation
Technique

Unobservable
Input

Fair Value Measurement

Assets

Liabilities

Range (1)/Weighted-Average Price (2)

Congestion revenue rights

305

138

Market approach

CRR auction prices

$ (145.09) - 2,724.93 / 0.89

Power purchase agreements

127

Discounted cash flow

Forward prices

$ (6.39) - 286.75 / 78.14

(1) Represents price per MWh.

(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 and nine months ended September 30, 2023 and 2022, respectively:


	Price Risk Management Instruments
(in millions)	2023		2022
Asset balance as of July 1	$	126	$	11
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts (1)	12		20
Asset balance as of September 30	$	138	$	31

(1) The costs related to price risk management activities are recovered through rates. Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.


	Price Risk Management Instruments
(in millions)	2023		2022
Asset (Liability) balance as of January 1	$	199	$	(34)
Net realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts (1)	(61)		65
Asset balance as of September 30	$	138	$	31

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 September 30, 2023				At December 31, 2022
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 4)
PG&E Corporation	$	4,379	$	4,450	$	4,355	$	4,490
Utility	35,246		29,313		32,847		27,666

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 Cost		Total Unrealized Gains		Total Unrealized Losses		Total Fair Value
As of September 30, 2023
Nuclear decommissioning trusts
Short-term investments	$	125	$	—	$	—	$	125
Global equity securities	377		1,584		(12)		1,949
Fixed-income securities	2,134		2		(169)		1,967
Total (1)	$	2,636	$	1,586	$	(181)	$	4,041
As of December 31, 2022
Nuclear decommissioning trusts
Short-term investments	$	117	$	—	$	—	$	117
Global equity securities	413		1,468		(11)		1,870
Fixed-income securities	1,991		10		(116)		1,885
Total (1)	$	2,521	$	1,478	$	(127)	$	3,872

(1) Represents amounts before deducting $631 million and $575 million as of September 30, 2023 and December 31, 2022, 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)	September 30, 2023
Less than 1 year	$	3
1–5 years	636
5–10 years	463
More than 10 years	865
Total maturities of fixed-income securities	$	1,967

The following table provides a summary of equity securities and available-for-sale debt securities:


(in millions)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Total Fair Value
As of September 30, 2023
Customer credit trust
Short-term investments	$	108	$	—	$	—	$	108
Global equity securities	82		13		(3)		92
Fixed-income securities	123		—		(4)		119
Total	$	313	$	13	$	(7)	$	319
As of December 31, 2022
Customer credit trust
Short-term investments	$	19	$	—	$	—	$	19
Global equity securities	219		13		(14)		218
Fixed-income securities	516		—		(8)		508
Total	$	754	$	13	$	(22)	$	745

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 September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Proceeds from sales and maturities of nuclear decommissioning trust investments	$	475	$	766	$	1,226	$	2,135
Gross realized gains on securities	30		21		72		158
Gross realized losses on securities	(15)		(40)		(33)		(105)

The fair value of fixed-income securities by contractual maturity is as follows:


	As of
(in millions)	September 30, 2023
Less than 1 year	$	—
1–5 years	31
5–10 years	27
More than 10 years	61
Total maturities of fixed-income securities	$	119

The following table provides a summary of activity for the fixed-income and equity securities:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Proceeds from sales and maturities of customer credit trust investments	$	151	$	79	$	455	$	79
Gross realized gains on securities	9		8		17		8
Gross realized losses on securities (1)	(6)		(18)		(16)		(18)

(1) Includes $4 million and $7 million of impaired debt securities which were written down to their respective fair values during the nine months ended September 30, 2023 and the three and nine months ended September 30, 2022, respectively.