Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 41

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Part II, Item 7
Chunk 41
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 not claimed a reduction.

•The disallowance cap on reimbursements, which is equal to 20% of the equity portion of the utility’s electric transmission and distribution rate base, is determined based on the year of the ignition. This revised disallowance cap applies to fires occurring before or after the effective date of SB 254.

Assets in the Continuation Account are separate from the Wildfire Fund and are not available for fires ignited before the effective date of SB 254.

For fires that destroy 1,000 or more structures, SB 254 gives the participating utilities a right of first refusal over insurers’ transactions to sell their right of subrogation, reimbursement, or recovery. 

SB 254 also prohibits the Utility from including in its equity rate base the first $2.9 billion that it first expends on fire risk mitigation capital expenditures approved by the CPUC on or after January 1, 2026.  The Utility expects to finance this amount with securitization.  

SB 254 requires the Wildfire Fund administrator to prepare a report by April 1, 2026 that evaluates and sets forth recommendations on new models or approaches that mitigate damage, accelerate recovery, and responsibly and equitably allocate the burdens from natural catastrophes, including catastrophic wildfires, earthquakes, and other natural disasters, across stakeholders, including insurers, communities, homeowners, landowners, governments, large electrical corporations, and local publicly owned electric utilities, to complement or replace the Wildfire Fund.  

ENVIRONMENTAL MATTERS

The Utility’s operations are subject to extensive federal, state, and local laws and permits relating to the protection of the environment and the safety and health of the Utility’s personnel and the public.  These laws and requirements relate to a broad range of the Utility’s activities, including the remediation of hazardous substances; the reporting and reduction of carbon dioxide and other GHG emissions; the discharge of pollutants into the air, water, and soil; the reporting of safety and reliability measures for natural gas storage facilities; and the transportation, handling, storage, and disposal of spent nuclear fuel.  See “Environmental Remediation Contingencies” in Note 11 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q, as well as Item 1A: “Risk Factors” and Note 15 of the Notes to the Consolidated Financial Statements in Item 8 of the 2024 Form 10-K.

RISK MANAGEMENT ACTIVITIES