Company: PCG-PB
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001004980-25-000087
Chunk: 70

Company: PG&E Corp
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 8
Chunk 70
---
 as Level 2.  Exchange-traded options are valued using observable market data and market-corroborated data and are classified as Level 2.Long-dated power purchase agreements that are valued using significant unobservable data are classified as Level 3.  These Level 3 contracts are valued using either estimated basis adjustments from liquid trading points or techniques, including extrapolation from observable prices, when a contract term extends beyond a period for which market data is available.  The Utility utilizes models to derive pricing inputs for the valuation of the Utility’s Level 3 instruments using pricing inputs from brokers and historical data.The Utility holds CRRs to hedge the financial risk of CAISO-imposed congestion charges in the day-ahead market.  Limited market data is available in the CAISO auction and between auction dates; therefore, the Utility utilizes historical prices to forecast forward prices.  CRRs are classified as Level 3.Level 3 Measurements and Uncertainty AnalysisInputs used and the fair value of Level 3 instruments are reviewed period-over-period and compared with market conditions to determine reasonableness.

61

Significant increases or decreases in any of those inputs would result in a significantly higher or lower fair value, respectively.  All reasonable costs related to Level 3 instruments are expected to be recoverable through rates; therefore, there is no impact on net income resulting from changes in the fair value of these instruments.  See Note 8 above. Fair Value   (in millions)At March 31, 2025ValuationTechniqueUnobservableInput Fair Value MeasurementAssetsLiabilities Range (1)/Weighted-Average Price (2) Congestion revenue rights$330 $131 Market approachCRR auction prices$ (7,972) - 951 / 2Power purchase agreements$40 $113 Discounted cash flowForward prices$ 0 - 106 / 50(1) Represents price per MWh.(2) Unobservable inputs were weighted by the relative fair value of the instruments. Fair Value   (in millions)At December 31, 2024ValuationTechniqueUnobservableInput Fair Value MeasurementAssetsLiabilities Range (1)/Weighted-Average Price (2) Congestion revenue rights$366 $121 Market approachCRR auction prices$ (951) - 50,044 / 2Power purchase agreements$17 $127 Discounted cash flowForward prices$ 0 - 126 / 47(1) Represents