Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 196

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 196
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 $96 $178 Cash inflows and outflows associated with derivatives are included in operating cash flows on the Utility’s Consolidated Statements of Cash Flows.Some of the Utility’s derivative instruments, including power purchase agreements, contain collateral posting provisions tied to the Utility’s credit rating from each of the major credit rating agencies, also known as a credit-risk-related contingent feature.  Multiple credit agencies continue to rate the Utility below investment grade, which results in the Utility posting additional collateral.  As of December 31, 2024, the Utility satisfied or has otherwise addressed its obligations related to the credit-risk related contingency features.

NOTE 11: FAIR VALUE MEASUREMENTS

PG&E Corporation and the Utility measure their cash equivalents, trust assets, and price risk management instruments at fair value.  A three-tier fair value hierarchy is established that prioritizes the inputs to valuation methodologies used to measure fair value:•Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.•Level 2 – Other inputs that are directly or indirectly observable in the marketplace.•Level 3 – Unobservable inputs which are supported by little or no market activities.The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

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Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below.  Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements  At December 31, 2024(in millions)Level 1Level 2Level 3Netting (1)TotalAssets:     Short-term investments$826 $— $— $— $826 Pacific Energy Risk Solutions, LLC   Short-term investments905 — — — 905 Total Pacific Energy Risk Solutions, LLC905 — — — 905 Nuclear decommissioning trustsShort-term investments53 — — — 53 Global equity securities2,228 — — — 2,228 Fixed-income securities1,250 1,027 — — 2,277 Assets measured at NAV— — — — 22 Total nuclear decommissioning trusts (2)3,531 1,027 — — 4,580 Customer credit trust Short-term investments1 — — — 1