Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 135

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Item 1A
Chunk 135
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 $73 million, or 7%, and $168 million, or 5%, in the three and nine months ended September 30, 2025, compared to the same periods in 2024.  These increases were primarily due to the growth in plant balance from capital additions, partially offset by an increase in deferred depreciation expense for costs pending regulatory approval.

Interest Income

The Utility’s Interest income decreased by $62 million, or 41%, and $102 million, or 21%, in the three and nine months ended September 30, 2025, compared to the same periods in 2024.  These decreases were primarily due to a decrease in interest rates and interest-bearing account balances in the three and nine months ended September 30, 2025 compared to the same periods in 2024.

Interest Expense 

The Utility’s Interest expense decreased by $30 million, or 4%, and $66 million, or 3%, in the three and nine months ended September 30, 2025, compared to the same periods in 2024.  These decreases were primarily due to a decrease in short-term debt with higher, variable interest rates, partially offset by an increase in long-term debt.

Other Income, Net

There was no material change to Other income, net for the periods presented.

Income Tax Provision

The Utility’s Income tax provision decreased by $132 million, or 189%, and $190 million, or 211%, in the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to an increased tax repairs deduction and an additional deduction for certain costs attributable to electric generation.

The effective tax rates were (28.3)% and (4.7)%, and (12.8)% and 4.4%, for the three and nine months ended September 30, 2025 and 2024, respectively.  The change in effective tax rate is primarily due to an estimated tax benefit related to an increase in repairs deduction and an additional deduction for certain costs attributable to electric generation.  The Utility’s effective tax rate is below the federal statutory rate of 21% for 2025 and 2024 primarily due to the effect of the increase in federal flow-through ratemaking treatment for certain property-related costs.  For these temporary tax differences, the Utility recognizes the deferred tax impact in the current period and records offsetting regulatory assets and liabilities.  Therefore, the Utility’s effective tax rate is impacted as