Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 197

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 197
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 of Derivative Instruments in the Financial StatementsAs of September 30, 2025, the Utility’s outstanding derivative balances were as follows: Commodity Risk(in millions)Gross DerivativeBalanceNettingCash CollateralTotal DerivativeBalanceCurrent assets – other$154 $(22)$3 $135 Noncurrent assets – other195 — — 195 Current liabilities – other(145)22 — (123)Noncurrent liabilities – other(128)— — (128)Total commodity risk$76 $— $3 $79 As of December 31, 2024, the Utility’s outstanding derivative balances were as follows: Commodity Risk(in millions)Gross DerivativeBalanceNettingCash CollateralTotal DerivativeBalanceCurrent assets – other$186 $(16)$— $170 Other noncurrent assets – other233 — — 233 Current liabilities – other(152)16 — (136)Noncurrent liabilities – other(167)— — (167)Total commodity risk$100 $— $— $100 Cash inflows and outflows associated with derivatives are included in operating cash flows on the Utility’s Condensed 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 September 30, 2025, the Utility satisfied or has otherwise addressed its obligations related to the credit-risk related contingency features.

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NOTE 9: FAIR VALUE MEASUREMENTS

PG&E Corporation and the Utility measure their cash equivalents, self-insurance assets, 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