Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 200

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 200
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 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.

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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 10 above. 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 price per MWh.(2) Unobservable inputs were weighted by the relative fair value of the instruments. Fair Value   (in millions)At December 31, 2023ValuationTechniqueUnobservableInput Fair Value MeasurementAssetsLiabilities Range (1)/Weighted-Average Price (2) Congestion revenue rights$357 $134 Market approachCRR auction prices$ (924) - 16,697 / 1Power purchase agreements$47 $79 Discounted cash flowForward prices$ 1 - 190 / 60(1) Represents price per MWh.(2) Unobservable inputs were weighted by the relative fair value of the instruments.Level 3 ReconciliationThe following table presents the reconciliation for Level 3 price risk management instruments for the years ended December 31, 2024 and 2023, respectively: Price Risk Management Instruments(in millions)20242023Asset balance as of January 1$191 $199 Net realized and unrealized gains (losses):Included in regulatory assets and liabilities or balancing accounts (1)(64)(8)Asset balance as of December 31$127 $191 (1) The costs related to price risk management activities are recovered