Company: PCG-PB
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001004980-25-000132
Chunk: 20

Company: PG&E Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Part II, Item 7
Chunk 20
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 by $20 million, or 2%, and $95 million, or 5%, in the three and six months ended June 30, 2025, compared to the same periods in 2024.  These increases were primarily due to the growth in plant balance from capital additions.

Interest Income

The Utility’s Interest income decreased by $20 million, or 10%, and $40 million, or 12%, in the three and six months ended June 30, 2025, compared to the same periods in 2024.  These decreases were primarily due to a decrease in interest rates and interest-bearing account balances in the six months ended June 30, 2025 compared to the same periods in 2024.

Interest Expense 

The Utility’s Interest expense decreased by $37 million, or 5%, and $36 million, or 3%, in the three and six months ended June 30, 2025 compared to the same periods in 2024.  These decreases were primarily due to a decrease in short-term debt with higher, variable interest rates, partially offset by an increase in long-term debt.

Other Income, Net

There was no material change to Other income, net for the periods presented.

Income Tax Provision

The Utility’s Income tax provision decreased by $62 million, or 61%, and $58 million, or 36%, in the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to higher tax repairs deduction in the three and six months ended June 30, 2025, compared to the same periods in 2024.

19

The effective tax rates were 7.9% and 8.1%, and 15.2% and 10.6%, for the three and six months ended June 30, 2025 and 2024, respectively.  The Utility’s effective tax rate is below the federal statutory rate of 21% for 2025 and 2024 primarily due to the effect of federal flow-through ratemaking treatment for certain property-related costs.  For these temporary tax differences, the Utility recognizes the deferred tax impact in the current period and records offsetting regulatory assets and liabilities.  Therefore, the Utility’s effective tax rate is impacted as these differences arise and reverse.  The Utility recognizes such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates.  These amounts also reflect