Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 163

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 163
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 certain that they will be exercised.  PG&E Corporation recognizes lease expense on a straight-line basis over the lease term.  The Utility recognizes lease expense as paid in conformity with ratemaking. Financing LeasesFinancing leases are included in financing lease ROU assets and current and noncurrent financing lease liabilities on the Consolidated Balance Sheets.  For the years ended December 31, 2024 and 2023, the Utility made total fixed cash payments of $315 million and $142 million, respectively, for financing leases, which were included in the measurement of financing lease liabilities and are presented within financing activities on the Consolidated Statement of Cash Flows.  Financing leases were immaterial for the year ended December 31, 2022.  Any variable lease payments for financing leases are included in operating activities on the Consolidated Statement of Cash Flows.  The majority of the Utility’s financing lease ROU assets and lease liabilities relate to the Oakland Headquarters lease discussed below.Oakland Headquarters Lease and PurchaseOn October 23, 2020, the Utility and BA2 300 Lakeside LLC (“Landlord”), a wholly owned subsidiary of TMG Bay Area Investments II, LLC, entered into an office lease agreement for approximately 910,000 rentable square feet of space within the Lakeside Building to serve as the Utility’s principal administrative headquarters (the “Lease”).  In connection with the Lease, the Utility also issued to Landlord (i) an option payment letter of credit in the amount of $75 million, and (ii) a lease security letter of credit in the amount of $75 million.  The term of the Lease began on April 8, 2022.The Lease also requires the rentable space to be delivered in two phases, with each phase consisting of multiple subphases.  As of December 31, 2024, the Landlord has made available approximately 715,000 rentable square feet of the leased premises for the Utility’s use. On July 11, 2023, the Utility and the Landlord entered into an Amendment to Office Lease and an Agreement of Purchase and Sale and Joint Escrow Instructions, pursuant to which the Utility was deemed to have exercised its option to purchase the legal parcel that contains the Lakeside Building (the “Property”), as modified.   Pursuant to the Agreement of Purchase and Sale and Joint Escrow Instructions, the purchase price of the Property will be $906 million, with deposits applicable to such purchase price of $150