Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 151

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 151
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, Plant, and EquipmentProperty, plant, and equipment are reported at the lower of their historical cost less accumulated depreciation or fair value.  Historical costs include labor and materials, construction overhead, and allowance for funds used during construction (“AFUDC”).  See “Allowance for Funds Used During Construction” below.  The Utility’s estimated service lives of its property, plant, and equipment were as follows: Estimated ServiceBalance at December 31,(in millions, except estimated service lives)Lives (years)20242023Electricity generating facilities (1)1 to 75$11,420 $11,423 Electricity distribution facilities10 to 7049,821 45,205 Electricity transmission facilities15 to 7518,481 17,562 Natural gas distribution facilities15 to 6017,213 16,324 Natural gas transmission and storage facilities15 to 6811,117 10,496 General plant and other5 to 5010,210 9,165 Financing lease814 787 Construction work in progress4,458 4,452 Total property, plant, and equipment123,534 115,414 Accumulated depreciation(35,304)(33,093)Net property, plant, and equipment (2)$88,230 $82,321 (1) Balance includes nuclear fuel inventories, which are stated at weighted-average cost.  Nuclear fuel in the reactor is expensed as it is used based on the amount of energy output.  See Note 15 below.  Nuclear generating facilities have been authorized by the CPUC to be fully depreciated by December 31, 2025. (2) Includes $3.0 billion of fire risk mitigation-related property, plant, and equipment securitized in accordance with AB 1054.

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The Utility depreciates property, plant, and equipment using the composite, or group, method of depreciation, in which a single depreciation rate is applied to the gross investment balance in a particular class of property, with the exception of its securitized property, plant and equipment, which is depreciated over the life of the bond and in a pattern consistent with principal payments.  This method approximates the straight-line method of depreciation over the useful lives of property, plant, and equipment.  The Utility’s composite depreciation rates were 3.61% in 2024, 3.56% in 2023, and 3.74%