Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 155

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 155
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18, 2022, the DWR and the Utility executed a $1.4 billion loan agreement to support the extension of DCPP, up to approximately $1.1 billion of which could be repaid by funds received from the DOE (see “U.S. DOE’s Civil Nuclear Credit Program” below).  Under the loan agreement, the DWR pays the Utility a monthly performance-based disbursement equal to $7 for each MWh generated by DCPP, effective September 2, 2022.  The Utility may use the proceeds of the performance-based disbursements for any business purpose, except as profits or dividends to shareholders or as otherwise prohibited by SB 846.  The Utility began earning performance-based disbursements beginning on September 2, 2022 and is eligible to earn performance-based disbursements until the previously-approved retirement dates for DCPP Unit 1 and Unit 2 (2024 and 2025, respectively).  The performance-based disbursements are contingent upon the Utility’s ongoing efforts to pursue extension of and continued safe and reliable operation of DCPP.  The aggregate amount of performance-based disbursements under this agreement will not exceed $300 million.  The Utility received the final proceeds from the DWR loan agreement in 2024.  For more information, see the DWR loan activity table below.

108

The Utility initially accounts for all disbursements from the DWR loan agreement pursuant to ASC 470, Debt.  When the Utility has reasonable assurance that the DWR will forgive loan disbursements (such as when the Utility earns a performance-based disbursement or when funds expected to be received from the DOE are less than incurred eligible costs), the Utility recognizes those forgiven loans as income related to government grants.  The Utility records the income related to government grants as a deduction to expense in the same period(s) that eligible costs are incurred.The following table summarizes where DWR loan activity is presented in PG&E Corporation’s and the Utility’s Consolidated Financial Statements:(in millions)202420232022Long-term debt: Beginning Balance - DWR loan outstanding$98 $312 $— Proceeds received 980 — 350 Operating Expenses:Operating and maintenance expense - Performance-based disbursements (117)(124)(38)Operating and maintenance expense - Loan forgiveness and other adjustments(75)(90)— Long-term debt: Ending Balance - DWR loan outstanding$886 $98 $312 U.S. DOE