Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 44

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 44
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 as applicable, determines that the Utility has not met the applicable prudency standard.  The revised prudency standard under AB 1054 has not been interpreted or applied by the CPUC, and it is possible that the CPUC could interpret the standard or apply it to the relevant facts differently from how the Utility has interpreted and applied the standard, in which case the Utility may not be able to recover all or a portion of expenses that it has recorded as receivables.  As of December 31, 2024, the Utility has recorded receivables for regulatory recovery of $602 million for the 2021 Dixie fire and $60 million for the 2022 Mosquito fire.  See “2021 Dixie Fire,” and “2022 Mosquito Fire” in Note 14 of the Notes to the Consolidated Financial Statements in Item 8 for more information.

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•The Timing and Outcome of Ratemaking and Other Proceedings.  Regulatory ratemaking proceedings are a key aspect of the Utility’s business.  The Utility’s revenue requirements consist primarily of a base amount set to enable the Utility to recover its reasonable operating expenses (e.g., maintenance, administrative and general expenses) and capital costs (e.g., depreciation and financing expenses).  The CPUC also authorizes the Utility to collect revenues to recover costs that the Utility is allowed to pass through to customers, including its costs to procure electricity and natural gas for customers and to administer public purpose and customer programs.  Although the Utility generally seeks to recover its recorded costs on a timely basis, in recent years, the amount of the costs recorded in memorandum and balancing accounts has increased.  Other proceedings that could impact the Utility’s business profile and financial results include actions by municipalities and other public entities to acquire the electric assets of the Utility within their respective jurisdictions.  The outcome of regulatory proceedings can be affected by many factors, including intervening parties’ testimonies, potential rate impacts, the regulatory and political environments, and other factors.  See Notes 3 and 15 of the Notes to the Consolidated Financial Statements in Item 8, and “Regulatory Matters” below.

•PG&E Corporation’s and the Utility’s Ability to Control Operating and Financing Costs.  Under cost-of-service ratemaking, a utility’s earnings depend on its ability to manage costs within the amounts authorized for recovery in its ratemaking proceedings.  The Utility has set a long-term goal to increase its capital investments to meet safety and climate goals, while also achieving operating