Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 51

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 51
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 $296 million, or 12%, in 2024 compared to 2023.  These increases were primarily due to an increase in long-term debt and higher interest rates paid on regulatory balancing accounts.

Other Income, Net

There was no material change to Other income, net in 2024 compared to 2023.

Income Tax Benefit

The Utility’s Income tax benefit decreased by $1.4 billion, or 93%, in 2024 compared to 2023.  These decreases were primarily due to a decrease in the tax benefit recognized related to the Fire Victim Trust’s sale of PG&E Corporation common stock as well as higher pre-tax income in 2024 compared to 2023.

The following table reconciles the income tax expense at the federal statutory rate to the income tax provision:

20242023Federal statutory income tax rate21.0 %21.0 %Increase (decrease) in income tax rate resulting from:State income tax (net of federal benefit) (1)(0.8)%(34.4)%Effect of regulatory treatment of fixed asset differences (2)(24.7)%(40.1)%Tax credits(0.7)%(2.2)%Fire Victim Trust (3)— %(80.2)%Other, net1.2 %1.1 %Effective tax rate(4.0)%(134.8)%

(1) Includes the effect of state flow-through ratemaking treatment.

(2) Includes the effect of federal flow-through ratemaking treatment for certain property-related costs. For these temporary tax differences, the Utility recognizes the deferred tax impact in the current period and records offsetting regulatory assets and liabilities. Therefore, the Utility’s effective tax rate is impacted as these differences arise and reverse. The Utility recognizes such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates. These amounts also reflect the impact of the amortization of excess deferred tax benefits to be refunded to customers as a result of the TCJA.

(3) Includes the tax effect of the Fire Victim Trust’s sale of PG&E Corporation common stock in 2023.

LIQUIDITY AND FINANCIAL RESOURCES 

Overview

PG&E Corporation and the Utility expect to be able to generate and obtain adequate cash to meet their cash requirements in the short term and in the long term. 

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PG&E Corporation and the Utility rely on access to debt and equity markets and credit facilities