Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 176

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 176
---
 impairment exists and does not otherwise result in a write-down, then PG&E Corporation and the Utility must determine whether a portion of the impairment is a result of expected credit loss.As of September 30, 2025, expected credit losses for insurance receivables, Wildfire Fund receivables, and available-for-sale debt securities were immaterial.

Government AssistanceThe Utility participated in various government assistance programs during the nine months ended September 30, 2025 and 2024.  The Utility’s accounting policy is to apply a grant accounting model by analogy to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance.

DWR Loan AgreementOn October 18, 2022, the DWR and the Utility executed a $1.4 billion loan agreement to support the extension of DCPP, up to approximately $1.1 billion of which could be repaid by funds received from the DOE (see “U.S. DOE’s Civil Nuclear Credit Program” below).  Under the loan agreement, the DWR paid the Utility a monthly performance-based disbursement equal to $7 for each MWh generated by DCPP, effective September 2, 2022.  The aggregate amount of performance-based disbursements under this agreement was $300 million.  For more information about the DWR Loan Agreement, see Note 2 of the Notes to the Consolidated Financial Statements in Item 8 of the 2024 Form 10-K.The Utility initially accounts for all disbursements from the DWR loan agreement pursuant to ASC 470, Debt.  When the Utility has reasonable assurance that the DWR will forgive loan disbursements (such as when the Utility earns a performance-based disbursement or when funds expected to be received from the DOE are less than incurred eligible costs), the Utility recognizes those forgiven loans as income related to government grants.  The Utility records the income related to government grants as a deduction to expense in the same period(s) that eligible costs are incurred.

52

The following table summarizes where DWR loan activity is presented in PG&E Corporation’s and the Utility’s Condensed Consolidated Financial Statements:Three Months Ended September 30,Nine Months Ended September 30,(in millions)2025202420252024Long-term debt: Beginning Balance - DWR loan outstanding$808 $651 $886 $98 Proceeds received — 380 — 980 Operating Expenses:Operating and maintenance expense - Performance-based disbursements (2)(21