Company: PCG-PB
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001004980-25-000087
Chunk: 85

Company: PG&E Corp
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 $1.0 billion has been entirely based on self-insurance and will remain as such through at least 2026.  The self-insurance program includes a 5% deductible, capped at a maximum of $50 million, on claims that are incurred each year.

Insurance ReceivableAs of March 31, 2025, PG&E Corporation and the Utility have recorded total probable insurance recoveries of $527 million and $96 million in connection with the 2021 Dixie fire and the 2022 Mosquito fire, respectively.  PG&E Corporation and the Utility intend to seek full recovery for all insured losses.

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The balances for insurance receivables with respect to wildfires are included in Other accounts receivable in PG&E Corporation’s and the Utility’s Condensed Consolidated Balance Sheets.  The following table presents changes in accrued insurance recoveries, net of reimbursements received, for the 2021 Dixie fire and 2022 Mosquito fire since December 31, 2024:Insurance Receivable (in millions)2021 Dixie fire2022 Mosquito fireTotalBalance at December 31, 2024$27 $90 $117 Accrued insurance recoveries— 5 5 Reimbursements— — — Balance at March 31, 2025$27 $95 $122 

Regulatory RecoverySection 451.1 of the Public Utilities Code provides that when determining an application to recover costs and expenses arising from a covered wildfire, the CPUC shall allow cost recovery if the costs and expenses are just and reasonable (i.e., the “prudency standard”).  AB 1054 states that a utility with a valid safety certification for the time period in which a covered wildfire ignited “shall be deemed to have been reasonable” unless “a party to the proceeding creates a serious doubt as to the reasonableness of the Utility’s conduct,” in which case the burden shifts to the utility to prove its conduct was reasonable.  The Utility had a valid safety certification at the time of the 2021 Dixie fire and the 2022 Mosquito fire, so any analysis of cost recovery starts with this reasonableness presumption.  AB 1054 also allows the CPUC to allocate costs and expenses “in full or in part taking into account factors both within and beyond the Utility’s control that may have exacerbated the costs and expenses, including humidity, temperature, and winds.”The Utility’s recorded receiv