Company: PCG-PB
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001004980-25-000087
Chunk: 66

Company: PG&E Corp
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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(in millions)Gross DerivativeBalanceNettingCash CollateralTotal DerivativeBalanceCurrent assets – other$186 $(16)$— $170 Other noncurrent assets – other233 — — 233 Current liabilities – other(152)16 — (136)Noncurrent liabilities – other(167)— — (167)Total commodity risk$100 $— $— $100 Cash inflows and outflows associated with derivatives are included in operating cash flows on the Utility’s Condensed Consolidated Statements of Cash Flows.Some of the Utility’s derivative instruments, including power purchase agreements, contain collateral posting provisions tied to the Utility’s credit rating from each of the major credit rating agencies, also known as a credit-risk-related contingent feature.  Multiple credit agencies continue to rate the Utility below investment grade, which results in the Utility posting additional collateral.  As of March 31, 2025, the Utility satisfied or has otherwise addressed its obligations related to the credit-risk related contingency features.

NOTE 9: FAIR VALUE MEASUREMENTS 

PG&E Corporation and the Utility measure their cash equivalents, trust assets, and price risk management instruments at fair value.  A three-tier fair value hierarchy is established that prioritizes the inputs to valuation methodologies used to measure fair value:•Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.•Level 2 – Other inputs that are directly or indirectly observable in the marketplace.

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•Level 3 – Unobservable inputs which are supported by little or no market activities.The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below.  Assets held in rabbi trusts are held by PG&E Corporation and not the Utility. Fair Value Measurements  At March 31, 2025(in millions)Level 1Level 2Level 3Netting (1)TotalAssets:     Short-term investments$1,870 $— $— $— $1,870 Pacific Energy Risk Solutions, LLC   Short-term investments939 — — — 939 Total Pacific Energy Risk Solutions, LLC939 — — — 939 Nuclear decommissioning trustsShort-term investments60 — — — 60 Global equity