Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 132

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 132
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 months ended September 30, 2025, compared to the same period in 2024.

Cost of Natural Gas

The Utility’s Cost of natural gas includes the costs of procurement, storage and transportation of natural gas, costs to comply with California’s cap-and-trade program and realized gains and losses on price risk management activities.  See Note 8 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1.  

The Cost of natural gas increased by $42 million, or 47%, in the three months ended September 30, 2025, compared to the same period in 2024.  This increase was primarily the result of an increase in GHG emissions expenses, increases in natural gas prices and volumes, and increases in gas storage contract expenses, compared to the same period in 2024.

The Cost of natural gas decreased by $84 million, or 10%, in the nine months ended September 30, 2025, compared to the same period in 2024.  This decrease was primarily the result of a reduction in GHG emissions expenses and favorable price risk management results, partially offset by increases in natural gas prices and volumes, compared to the same period in 2024.

Operating and Maintenance

The Utility’s Operating and maintenance expenses decreased by $42 million, or 2%, in the three months ended September 30, 2025, compared to the same period in 2024. This decrease was primarily due to:

•approximately $210 million in costs related to a FERC order denying the capitalization of certain vegetation management costs and ordering the Utility to record these as operating expenses, resulting in an increase in operating expense in the three months ended September 30, 2024, with no comparable costs in the same period in 2025;

•approximately $100 million in lower interim rate relief as authorized in the WGSC proceeding (see “Wildfire and Gas Safety Costs Recovery Application” below) in the three months ended September 30, 2025, compared with the same period in 2024; and

•an approximately $30 million reduction in insurance costs related to the Utility’s adoption of non-wildfire-related self-insurance in the three months ended September 30, 2025, compared with the same period in 2024.

Partially offset by:

•approximately $130 million in costs associated with extended operations at DCPP in the three months ended September 30, 2025, with no comparable costs in