Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 219

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 219
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 and the 2022 Mosquito fire were determined to be probable of recovery and the Utility recorded $530 million and $54 million, respectively, as regulatory assets in the WEMA.

Wildfire Fund Recoveries under AB 1054 and SB 254On July 12, 2019 and September 19, 2025, AB 1054 and SB 254 became law, respectively.  AB 1054 provides for the establishment of a statewide fund that will be available for eligible electric utility companies to pay eligible claims for liabilities arising from wildfires occurring after July 12, 2019 that are caused by the applicable electric utility company’s equipment, subject to the terms and conditions of AB 1054.  SB 254 provides for a Continuation Account which is designed to provide additional liquidity to reimburse catastrophic wildfire-related claims that occur after September 19, 2025, subject to the terms and conditions of SB 254.  Each of California’s large electric IOUs has elected to participate in the Wildfire Fund and the Continuation Account.  Eligible claims are claims for third-party damages resulting from any such wildfires, limited to the portion of such claims that exceeds the greater of (i) $1.0 billion in the aggregate arising from wildfires in any coverage year and (ii) the amount of insurance coverage required to be in place for the electric utility company pursuant to Section 3293 of the Public Utilities Code, added by AB 1054.  The accrued Wildfire Fund receivable as of September 30, 2025 reflects an expectation that the coverage year will be based on the calendar year.Utilities that draw from the Wildfire Fund or the Continuation Account will only be required to reimburse amounts that are determined by the CPUC in a proceeding for cost recovery not to be just and reasonable, applying the prudency standard in AB 1054 and after allocating costs and expenses for cost recovery based on relevant factors both within and outside of a utility’s control that may have exacerbated the costs and expenses.  As amended by SB 254, the reimbursement requirement is subject to a disallowance cap equal to 20% of the equity portion of the utility’s electric transmission and distribution rate base in the year of the ignition.  A utility would not be required to reimburse the Wildfire Fund or the Continuation Account for disallowances that exceed the disallowance cap in the aggregate in a three calendar-year period.  For the Continuation Account, the amount of reimbursement would also be reduced