Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 165

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 165
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 pay $591 million of lease payments in 2025. Operating LeasesOperating leases are included in operating lease ROU assets and current and noncurrent Operating lease liabilities on the Consolidated Balance Sheets.  For the years ended December 31, 2024, 2023, and 2022, the Utility made total cash payments, including fixed and variable, of $1.6 billion, $1.9 billion, and $2.3 billion, respectively, for operating leases which are presented within operating activities on the Consolidated Statement of Cash Flows. The majority of the Utility’s operating lease ROU assets and lease liabilities relate to various power purchase agreements.  These power purchase agreements primarily consist of generation plants leased to meet customer demand plus applicable reserve margins.  Operating lease variable costs include amounts from renewable energy power purchase agreements where payments are based on certain contingent external factors such as wind, hydro, solar, biogas, and biomass power generation.  See “Third-Party Power Purchase Agreements” in Note 15 below.  At December 31, 2024 and 2023, the Utility’s operating leases had a weighted average remaining lease term of 7.5 years and 8.2 years and a weighted average discount rate of 6.5% and 6.4%, respectively.The following table shows the lease cost recognized for the fixed and variable component of the Utility’s lease obligations:Year Ended December 31,(in millions)202420232022Operating lease fixed cost$116 $269 $500 Operating lease variable cost1,524 1,632 1,829 Total operating lease costs$1,640 $1,901 $2,329 

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At December 31, 2024, the Utility’s future expected operating lease payments were as follows: (in millions)December 31, 20242025$116 2026112 2027110 202897 202962 Thereafter195 Total lease payments692 Less imputed interest(173)Total$519 

Recently Adopted Accounting Standards Segment ReportingIn November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which amended the existing guidance to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.  PG&E Corporation and the Utility adopted this ASU in December 2024.  See “Segment