Company: PCG-PB
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0001004980-25-000148
Chunk: 87

Company: PG&E Corp
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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roborated data and are classified as Level 2.Long-dated power purchase agreements that are valued using significant unobservable data are classified as Level 3.  These Level 3 contracts are valued using either estimated basis adjustments from liquid trading points or techniques, including extrapolation from observable prices, when a contract term extends beyond a period for which market data is available.  The Utility utilizes models to derive pricing inputs for the valuation of the Utility’s Level 3 instruments using pricing inputs from brokers and historical data.The Utility holds CRRs to hedge the financial risk of CAISO-imposed congestion charges in the day-ahead market.  Limited market data is available in the CAISO auction and between auction dates; therefore, the Utility utilizes historical prices to forecast forward prices.  CRRs are classified as Level 3.Level 3 Measurements and Uncertainty AnalysisInputs used and the fair value of Level 3 instruments are reviewed period-over-period and compared with market conditions to determine reasonableness.

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Significant increases or decreases in any of those inputs would result in a significantly higher or lower fair value, respectively.  All reasonable costs related to Level 3 instruments are expected to be recoverable through rates; therefore, there is no impact on net income resulting from changes in the fair value of these instruments.  See Note 8 above. Fair Value (in millions)   At September 30, 2025ValuationTechniqueUnobservableInput Fair Value MeasurementAssetsLiabilities Range (1)/Weighted-Average Price (2) Congestion revenue rights$278 $97 Market approachCRR auction prices$ (55) - 54 / 2Power purchase agreements$43 $88 Discounted cash flowForward prices$ 16 - 107 / 55(1) Represents price per MWh.(2) Unobservable inputs were weighted by the relative fair value of the instruments. Fair Value (in millions)   At December 31, 2024ValuationTechniqueUnobservableInput Fair Value MeasurementAssetsLiabilities Range (1)/Weighted-Average Price (2) Congestion revenue rights$366 $121 Market approachCRR auction prices$ (951) - 50,044 / 2Power purchase agreements$17 $127 Discounted cash flowForward prices$ 0 - 126 / 47(1) Represents price per MWh.(2) Unobservable inputs were weighted by the relative fair value of the