Company: PCG-PB
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001004980-25-000132
Chunk: 18

Company: PG&E Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Part II, Item 7
Chunk 18
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2024.

Cost of Natural Gas

The Utility’s Cost of natural gas includes the costs of procurement, storage and transportation of natural gas, costs to comply with California’s cap-and-trade program and realized gains and losses on price risk management activities.  See Note 8 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1.  

The Cost of natural gas decreased by $93 million, or 46%, in the three months ended June 30, 2025, and by $126 million, or 17%, in the six months ended June 30, 2025, compared to the same periods in 2024.  These decreases were primarily the result of a reduction in GHG emissions expenses and favorable price risk management results, due to less natural gas market price volatility experienced for the present periods, partially offset by increases in natural gas prices and volumes purchased for the present periods, compared to the same periods in 2024.

Operating and Maintenance

The Utility’s Operating and maintenance expenses increased by $101 million, or 4%, in the three months ended June 30, 2025, compared to the same period in 2024. This increase was primarily due to:

•approximately $220 million in costs associated with extended operations at DCPP in the three months ended June 30, 2025, with no comparable costs in the same period in 2024; and

•approximately $190 million in interim rate relief authorized in the 2023 WMCE application (see “2023 WMCE Application” below) in the three months ended June 30, 2025, with no comparable costs in the same period in 2024.

Partially offset by:

•the recognition of approximately $275 million of previously deferred expenses authorized in the 2022 WMCE proceeding (see “2022 WMCE Application” below) in the three months ended June 30, 2024, with no comparable costs in the same period in 2025; and 

•the write-off of approximately $60 million of costs as a result of the CPUC’s final decision denying the Pacific Generation application in the three months ended June 30, 2024, with no comparable costs in the same period in 2025.  For more information, see “Regulatory Matters” below.

The Utility’s Operating and maintenance expenses increased by $108 million, or 2%, in the six months ended June 30, 2025, compared to the same period