Company: PCG-PB
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001004980-25-000132
Chunk: 167

Company: PG&E Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1A
Chunk 167
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 During the three and six months ended June 30, 2025, the Condensed Consolidated Statements of Income reflected $16 million and $57 million, respectively, as deductions to Cost of electricity, for income related to government grants for incurred fuel costs to support the extension of DCPP.

Variable Interest EntitiesA VIE is an entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, or whose equity investors lack any characteristics of a controlling financial interest.  An enterprise that has a controlling financial interest in a VIE is a primary beneficiary and is required to consolidate the VIE.

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Consolidated VIEsReceivables Securitization ProgramThe SPV was created in connection with the Receivables Securitization Program and is a bankruptcy remote, limited liability company wholly owned by the Utility, and its assets are not available to creditors of PG&E Corporation or the Utility.  Pursuant to the Receivables Securitization Program, the Utility sells certain of its receivables and certain related rights to payment and obligations of the Utility with respect to such receivables, and certain other related rights to the SPV, which, in turn, obtains loans secured by the receivables from financial institutions.  The pledged receivables and the corresponding debt are included in Accounts receivable, Accrued unbilled revenue, Other noncurrent assets, and Long-term debt on the Condensed Consolidated Balance Sheets.The SPV is considered a VIE because its equity capitalization is insufficient to support its activities.  The most significant activities that impact the economic performance of the SPV are decisions made to manage receivables.  The Utility is considered the primary beneficiary and consolidates the SPV as it makes these decisions.  No additional financial support was provided to the SPV during the six months ended June 30, 2025 or is expected to be provided in the future that was not previously contractually required.  As of June 30, 2025 and December 31, 2024, the SPV had net accounts receivable of $3.3 billion and $3.2 billion, respectively, and outstanding borrowings of $190 million and $0 million, respectively, under the Receivables Securitization Program.  For more information, see Note 4 below.AB 1054 SecuritizationPG&E Recovery Funding LLC is a bankruptcy remote, limited liability company wholly