Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 224

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 224
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2022 Mosquito fire, respectively, as of December 31, 2024.The Utility could be subject to significant liability in connection with these wildfire events.  If such liability is not recoverable from insurance or the other mechanisms described in this section, it could have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows.

Insurance

Self-InsuranceSince August 2023, the Utility’s wildfire liability insurance for amounts up to $1.0 billion has been entirely based on self-insurance and will remain as such through at least 2026.  The self-insurance program includes a 5% deductible, capped at a maximum of $50 million, on claims that are incurred each year.

154

Insurance ReceivableAs of December 31, 2024, PG&E Corporation and the Utility have recorded total probable insurance recoveries of $527 million and $90 million in connection with the 2021 Dixie fire and the 2022 Mosquito fire, respectively.  PG&E Corporation and the Utility intend to seek full recovery for all insured losses.The balances for insurance receivables with respect to wildfires are included in Other accounts receivable in PG&E Corporation’s and the Utility’s Consolidated Balance Sheets.  The following table presents changes in accrued insurance recoveries, net of reimbursements received, for the 2021 Dixie fire and 2022 Mosquito fire since December 31, 2023:Insurance Receivable (in millions)2021 Dixie fire2022 Mosquito fireTotalBalance at December 31, 2023$326 $63 $389 Accrued insurance recoveries1 27 28 Reimbursements(300)— (300)Balance at December 31, 2024$27 $90 $117 

Regulatory RecoverySection 451.1 of the Public Utilities Code provides that when determining an application to recover costs and expenses arising from a covered wildfire, the CPUC shall allow cost recovery if the costs and expenses are just and reasonable (i.e., the “prudency standard”).  AB 1054 states that a utility with a valid safety certification for the time period in which a covered wildfire ignited “shall be deemed to have been reasonable” unless “a party to the proceeding creates a serious doubt as to the reasonableness of the [Utility’s] conduct,” in which case the burden shifts to the utility to prove its conduct was