Company: PCG-PB
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001004980-25-000132
Chunk: 11

Company: PG&E Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Part II, Item 7
Chunk 11
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7, 2025, in Eaton Canyon in Los Angeles County, California (the “Eaton fire”) is probable but not reasonably estimable.  PG&E Corporation and the Utility expect to re-evaluate their estimated life of the Wildfire Fund and assess the Wildfire Fund asset for accelerated amortization when and if SCE accrues a liability or a Wildfire Fund receivable, respectively.  The impact of AB 1054 on PG&E Corporation and the Utility is subject to numerous uncertainties, including the Utility’s ability to demonstrate to the CPUC that wildfire-related costs paid from the Wildfire Fund were just and reasonable and therefore not subject to reimbursement, and whether the benefits of participating in the Wildfire Fund ultimately outweigh its substantial costs.  Finally, recoveries for the 2019 Kincade fire are subject to a 40% limitation on the allowed amount of claims arising before emergence from bankruptcy.  The Utility has recorded an aggregate Wildfire Fund receivable of $1,075 million for the 2021 Dixie fire, of which it had received $445 million as of June 30, 2025.  See “Wildfire Fund under AB 1054” in Note 10 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1.

The Utility will be permitted to recover its wildfire-related claims in excess of available insurance and legal fees through rates unless the CPUC or the FERC, 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 June 30, 2025, the Utility has recorded receivables for regulatory recovery of $621 million for the 2021 Dixie fire and $60 million for the 2022 Mosquito fire.  See “2021 Dixie Fire” and “2022 Mosquito Fire” in Note 10 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1 for more information.

13

•The Timing and Outcome of Ratemaking and Other Proceedings.  Regulatory ratemaking proceedings are a key aspect of the Utility’s business.  The