Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 31

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Part II, Item 7
Chunk 31
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 state regulatory agencies.  The resolutions of the proceedings described below and other proceedings may materially affect PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows.  Except as otherwise noted, PG&E Corporation and the Utility are unable to predict the timing or outcome of the following proceedings.

26

During the quarter ended September 30, 2025 and through the date of this filing, key updates to regulatory matters include the following:

•On August 5, 2025, the FERC issued a final order approving an all-party settlement of the Utility’s transmission owner rate case for 2024 (the “TO21” rate case). 

•On August 28, 2025, the CPUC issued a final decision that increases the cost cap for 2025 and 2026 by an aggregate $2.38 billion in connection with the Order Instituting Rulemaking to Establish Energization Timelines.

•On September 26, 2025, the CPUC issued a final decision approving $1.06 billion in cost recovery in the 2022 WMCE proceeding. 

Cost Recovery Proceedings

Periodically, costs arise that could not have been anticipated by the Utility during CPUC GRC proceedings or that have been deliberately excluded from such proceedings.  For instance, these costs may result from catastrophic events, changes in regulation, or extraordinary changes in operating practices.  The Utility may seek authority to track incremental costs in a memorandum account and the CPUC may later authorize recovery of costs tracked in memorandum accounts if the costs are deemed incremental and prudently incurred.  The CPUC may also authorize balancing accounts with limitations or caps on cost recovery.  These accounts, which include the CEMA, WEMA, FRMMA, WMPMA,VMBA, Wildfire Mitigation Balancing Account (“WMBA”), and Microgrids Memorandum Account (“MGMA”), among others, allow the Utility to track the costs associated with work related to disaster and wildfire response, other wildfire prevention-related costs, and certain third-party wildfire claims.  While the Utility generally expects such costs to be recoverable, the CPUC may authorize the Utility to recover less than the full amount of its costs.

In recent years, the Utility has recorded significant amounts to these accounts.  Because rate recovery may require CPUC authorization of the costs in these accounts, there can be a delay between when the Utility incurs costs and when it may recover those costs.  As of September 30, 2025