Company: PCG-PB
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001004980-25-000087
Chunk: 19

Company: PG&E Corp
Filing Date: 2025-04-24
Form: 10-Q
Item: Part II, Item 7
Chunk 19
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 debt maturities, and PG&E Corporation capital stock dividends will exceed operating cash flows.  As a result, they expect to finance future cash needs in excess of operating cash flows primarily through the capital and credit markets.

PG&E Corporation and the Utility have various contractual commitments which impact cash requirements.  These commitments are discussed in “Purchase Commitments” in Note 11 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1.

As of March 31, 2025, PG&E Corporation and the Utility had access to approximately $8.0 billion of total liquidity comprised of $1.9 billion of the Utility’s Cash and cash equivalents, $163 million of PG&E Corporation’s Cash and cash equivalents, $1.5 billion of availability under the Utility’s Receivables Securitization Program, and $4.5 billion of availability under PG&E Corporation’s and the Utility’s revolving credit facilities.

Credit Ratings

Credit ratings impact the cost and availability of short-term borrowings, including credit facilities, and long-term debt costs.  In addition, some of the Utility’s commodity contracts contain collateral posting provisions tied to the Utility’s credit rating from each of the major credit rating agencies.  Contracts which may require collateral postings include the Utility's power and natural gas commodity, transportation, services, and environmental products agreements.  Because the Utility’s credit rating remains below investment grade with two of the major credit rating agencies, the Utility generally does not receive unsecured credit from its energy procurement counterparties and it may be required to increase its collateral postings if its credit rating is downgraded.

Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents

Cash and cash equivalents consist of cash and short-term, highly liquid investments with original maturities of three months or less.  PG&E Corporation and the Utility maintain separate bank accounts and primarily invest their cash in money market funds.  In addition to Cash and cash equivalents, the Utility holds Restricted cash and restricted cash equivalents that primarily consist of AB 1054 and SB 901 fixed recovery charge collections that are to be used to service the associated bonds.  As of March 31, 2025, PG&E Corporation and the Utility had cash and cash equivalents of $163 million and $1.9 billion, respectively.  

As of March 31, 2025, the Utility had contributed $936 million to Pacific Energy Risk Solutions, LLC, its wholly-owned subsidiary and captive insurance company for