Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 9

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Part II, Item 7
Chunk 9
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 connection with the 2019 Kincade fire, the 2021 Dixie fire, and the 2022 Mosquito fire, respectively, and in each case before available insurance, and, in the case of the 2021 Dixie fire and the 2022 Mosquito fire, other probable cost recoveries.  These liability amounts correspond to the lower end of the range of reasonably estimable probable losses with the exception of amounts relating to the 2019 Kincade fire, which represent the best estimate of the liability, but do not include all categories of potential damages and losses.

PG&E Corporation and the Utility may be able to mitigate the financial impact of future wildfires in excess of insurance coverage or self-insurance through the Wildfire Fund, the Continuation Account, or cost recovery through rates.  Each of these mitigations involves uncertainties, and liabilities could exceed available recoveries.  See “Loss Recoveries” in Note 10 of the Notes to the Condensed Consolidated Financial Statements in Part I, Item 1.

As of September 30, 2025, the Utility has recorded insurance receivables of $523 million for the 2021 Dixie fire and $256 million for the 2022 Mosquito fire.  

If the eligible claims for liabilities arising from wildfires were to exceed $1.0 billion in any Wildfire Fund or Continuation Account coverage year (“Coverage Year”), the Wildfire Fund or the Continuation Account, as applicable,  may be available to reimburse the Utility such excess amount.  The impacts of AB 1054 and SB 254 on PG&E Corporation and the Utility are subject to numerous, substantial uncertainties, including the Utility’s ability to demonstrate to the CPUC that paid wildfire-related costs were just and reasonable and therefore not subject to reimbursement by the Utility.  The Utility’s ability to recover wildfire costs also depends on the Wildfire Fund or the Continuation Account having sufficient remaining funds, and the Wildfire Fund or the Continuation Account may also be depleted more quickly than expected as a result of claims made by California’s other participating electric utility companies.

With respect to the Wildfire Fund, Edison International and Southern California Edison Company (together, “SCE”) have disclosed that a liability for the wildfire that began on January 7, 2025, in Eaton Canyon in Los Angeles County, California (the “Eaton fire”) is probable but not reasonably estimable.  PG&E Corporation and the Utility expect to reduce their 20-year estimated life of