Company: PCG-PB
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001004980-25-000132
Chunk: 183

Company: PG&E Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1A
Chunk 183
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party.  The fair value of derivative instruments is further offset by cash collateral paid or received where the right of offset and the intention to offset exist.Price risk management activities that meet the definition of derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets.  These instruments are not held for speculative purposes and are subject to certain regulatory requirements.  The Utility expects to fully recover through rates all costs related to derivatives under the applicable ratemaking mechanism in place as long as the Utility’s price risk management activities are carried out in accordance with CPUC directives.  Therefore, all unrealized gains and losses associated with the change in fair value of these derivatives are deferred and recorded within the Utility’s regulatory assets and liabilities on the Condensed Consolidated Balance Sheets.  Net realized gains or losses on commodity derivatives are recorded in the Cost of electricity or the Cost of natural gas with corresponding increases or decreases to regulatory balancing accounts for recovery from or refund to customers.The Utility elects the normal purchase and sale exception for eligible derivatives.  Eligible derivatives are those that require physical delivery in quantities that are expected to be used by the Utility over a reasonable period in the normal course of business and do not contain pricing provisions unrelated to the commodity delivered.  These items are not reflected in the Condensed Consolidated Balance Sheets at fair value.

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Volume of Derivative ActivityThe volumes of the Utility’s outstanding derivatives were as follows:  Contract Volume atUnderlying ProductInstrumentsJune 30, 2025December 31, 2024Natural Gas (1) (MMBtus (2))Forwards, futures, and swaps293,476,836 179,257,247  Options53,165,000 37,717,500 Electricity (MWh)Forwards, futures, and swaps8,729,140 8,576,078 Options1,878,000 1,663,200  Congestion Revenue Rights (3)103,445,748 123,040,895 (1) Amounts shown are for the combined positions of the electric fuels and core gas supply portfolios.(2) Million British Thermal Units.(3) CRRs are financial instruments that enable the holders to manage variability in electric energy congestion charges due to transmission grid limitations.Presentation of Derivative Instruments in the Financial StatementsAs of June 30, 2025, the Utility’s outstanding derivative balances were as follows: Commodity Risk(in millions)Gross DerivativeBalanceNettingCash Coll