Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 62

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 the loan agreement, the DWR paid the Utility a monthly performance-based disbursement equal to $7 for each MWh generated by DCPP, effective September 2, 2022.  The aggregate amount of performance-based disbursements under this agreement was $300 million.  For more information about the DWR Loan Agreement, see Note 2 of the Notes to the Consolidated Financial Statements in Item 8 of the 2024 Form 10-K.The Utility initially accounts for all disbursements from the DWR loan agreement pursuant to ASC 470, Debt.  When the Utility has reasonable assurance that the DWR will forgive loan disbursements (such as when the Utility earns a performance-based disbursement or when funds expected to be received from the DOE are less than incurred eligible costs), the Utility recognizes those forgiven loans as income related to government grants.  The Utility records the income related to government grants as a deduction to expense in the same period(s) that eligible costs are incurred.

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The following table summarizes where DWR loan activity is presented in PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements:Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Long-term debt: Beginning Balance - DWR loan outstanding$808 $651 $886 $98 Proceeds received — 380 — 980 Operating Expenses:Operating and maintenance expense - Performance-based disbursements (2)(21)(20)(60)Operating and maintenance expense - Loan forgiveness and other adjustments(17)— (75)12 Other current liabilities: Change in performance-based disbursements deferred 2 (14)— (34)Long-term debt: Ending Balance - DWR loan outstanding$791 $996 $791 $996 U.S. DOE’s Civil Nuclear Credit ProgramOn January 11, 2024, the Utility and the DOE entered into a Credit Award and Payment Agreement for up to $1.1 billion related to DCPP as part of the DOE’s Civil Nuclear Credit Program.  The Utility uses these funds to repay its loans outstanding under the DWR Loan Agreement (see “DWR Loan Agreement” above).  Final award amounts are determined following completion of each year of the award period, and amounts awarded over a four-year award period ending in 2026 will be based on a number of factors, including actual costs incurred to extend the DCPP operations.  When there is