Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 137

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 137
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 $6.1 billion of total liquidity comprised of $253 million of the Utility’s Cash and cash equivalents, $151 million of PG&E Corporation’s Cash and cash equivalents, and $5.7 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 unsecured 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 unsecured credit rating remains below investment grade with one 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 September 30, 2025, PG&E Corporation and the Utility had cash and cash equivalents of $151 million and $253 million, respectively.  

Self-Insurance

As of September 30, 2025, the Utility had contributed $988 million to Pacific Energy Risk Solutions, LLC, its wholly-owned subsidiary and captive insurance company for the administration of wildfire liability self-insurance.  As of September 30, 2025, $8 million was classified as Restricted cash and restricted cash equivalents due to minimum capital and surplus requirements, $8 million was classified as Cash and cash equivalents, and $1.0 billion, measured at fair value, was classified as Wildfire self-insurance asset.  

As of September 30, 2025, the Utility had contributed $96 million to Pacific Casualty Insurance Company, LLC, its wholly-owned subsidiary and captive insurance company for the administration of non-wildfire liability self-insurance.  As of September 30, 2025