Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 217

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 217
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 liability is not recoverable from insurance or the other mechanisms described in this section, it could have a material impact on PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows.

79

Insurance

Self-InsuranceSince August 2023, the Utility’s wildfire liability insurance for amounts up to $1.0 billion has been entirely based on self-insurance and will remain as such through at least 2026.  The self-insurance program includes a 5% deductible, capped at a maximum of $50 million, on claims that are incurred each year.

Insurance ReceivableAs of September 30, 2025, PG&E Corporation and the Utility have recorded total probable insurance recoveries of $523 million and $256 million in connection with the 2021 Dixie fire and the 2022 Mosquito fire, respectively.  PG&E Corporation and the Utility intend to seek full recovery for all insured losses.The balances for insurance receivables with respect to wildfires are included in Other accounts receivable in PG&E Corporation’s and the Utility’s Condensed Consolidated Balance Sheets.  The following table presents changes in accrued insurance recoveries, net of reimbursements received, for the 2021 Dixie fire and 2022 Mosquito fire since December 31, 2024:Insurance Receivable (in millions)2021 Dixie fire2022 Mosquito fireTotalBalance at December 31, 2024$27 $90 $117 Accrued insurance recoveries(5)166 161 Reimbursements— (56)(56)Balance at September 30, 2025$22 $200 $222 

Regulatory RecoverySection 451.1 of the Public Utilities Code provides that when determining an application to recover costs and expenses arising from a covered wildfire, the CPUC shall allow cost recovery if the costs and expenses are just and reasonable (i.e., the “prudency standard”).  AB 1054 states that a utility with a valid safety certification for the time period in which a covered wildfire ignited “shall be deemed to have been reasonable” unless “a party to the proceeding creates a serious doubt as to the reasonableness of the Utility’s conduct,” in which case the burden shifts to the utility to prove its conduct was reasonable.  The Utility had a valid safety certification at the time of the 2021 Dixie fire and the 2022 Mosquito fire, so any analysis of