Company: PCG-PB
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001004980-25-000087
Chunk: 144

Company: PG&E Corp
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 1A
Chunk 144
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ensed Consolidated Balance Sheets.  Rates charged to customers are based on CPUC and FERC authorized revenue requirements.  Revenues can vary significantly from period to period because of seasonality, weather, and customer usage patterns.Regulatory Balancing Account RevenueThe CPUC authorizes most of the Utility’s revenues in the Utility’s GRCs, which occur every four years.  CPUC and FERC rates decouple authorized revenue from the volume of electricity and natural gas sales, so the Utility receives revenue equal to the amounts authorized by the relevant regulatory agencies.  As a result, the volume of electricity and natural gas sold does not have a direct impact on PG&E Corporation’s and the Utility’s financial results.  The Utility recognizes revenues that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months.  Generally, electric and natural gas operating revenue is recognized ratably over the year.  The Utility records a balancing account asset or liability for differences between customer billings and authorized revenue requirements that are probable of recovery or refund.The Utility also collects additional revenue requirements to recover costs that the CPUC has authorized the Utility to pass through to customers, including costs to purchase electricity and natural gas, and to fund public purpose, demand response, and customer energy efficiency programs.  In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred.  The Utility records a regulatory balancing account asset or liability for differences between incurred costs and customer billings or authorized revenue meant to recover those costs, to the extent that these differences are probable of recovery or refund.  As a result, these differences have no impact on net income.

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The following table presents the Utility’s revenues disaggregated by type of customer:Three Months Ended March 31,(in millions)20252024ElectricRevenue from contracts with customers   Residential$1,834 $1,799    Commercial1,506 1,505    Industrial414 413    Agricultural199 180    Public street and highway lighting27 25    Other, net (1)89 121       Total revenue from contracts with customers - electric4,069 4,043 Regulatory balancing accounts (2)66 9 Total electric operating revenue$4,135 $4,052 Natural gasRevenue from contracts with customers   Residential$1,709 $1,517    Commercial