Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 125

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1
Chunk 125
---
 the Utility’s financial condition and results of operations could be materially impacted.

The effect of such types of retail competition generally is to reduce the number of utility customers, leading to decreased growth or a reduction in the Utility’s rate base.

The Utility also competes for the opportunity to develop and construct certain types of electric transmission facilities within, or interconnected to, its service area through a competitive bidding process managed by the CAISO.

For risks in connection with increasing competition, see Item 1A. Risk Factors.

33

Competition in the Natural Gas Industry

The Utility competes with other natural gas pipeline companies for customers transporting natural gas into the southern California market on the basis of transportation rates, access to competitively priced supplies of natural gas, and the quality and reliability of transportation services.  The Utility also competes for storage services with other third-party storage providers, primarily in Northern California.

Sustainability and Resiliency

The impacts of climate change on the Utility’s infrastructure are already a reality.  Record-breaking extreme heat and heat waves are increasingly a regular occurrence throughout California.  In the past few years, the Utility’s electric distribution system has experienced multiple major outage-causing events associated with extreme heat events and peak loads.  Peak loads are expected to increase with increasing temperatures due to direct impacts of ambient temperatures on equipment, increased electricity demand driven by rising air conditioning installation and usage, and continued electrification of transportation and buildings.  Higher temperatures may also impact the condition and performance of electric assets, potentially causing deterioration of assets and operational constraints.

The Utility’s assets on the coast and in or near watersheds face potential increased exposures to coastal, riverine, and precipitation related flooding because of climate‑driven changes in precipitation and sea level rise.  The risk of damage to or interruptions of operations at facilities such as substations is predicted to increase over time due to sea level rise.  Electric and gas equipment and safe access for operations must be prepared for these changing conditions.

Changing precipitation dynamics may impact the Utility’s hydroelectric generation.  Diminishing future water availability and altered runoff timing during extreme drought poses risks to hydropower generation, operations, and revenue.  Also, extreme rain events suggest enhanced risk of hydropower asset damage or failure associated with flooding, which in the worst cases (e.g., uncontrolled water release) may have catastrophic impacts.

Climate change will also continue to intensify the potential for wildfires throughout California.  Models incorporating future temperature and precipitation projections suggest that landscape susceptibility to wildfire within the Utility’s service area