Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 48

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 48
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 Note 3 of the Notes to the Consolidated Financial Statements in Item 8).

Partially offset by:

•approximately $1.0 billion in increased base revenues authorized in the 2023 GRC;

•approximately $390 million in interim rate relief authorized in the WGSC proceeding (see “Wildfire and Gas Safety Costs Recovery Application” below) in 2024 with no similar amount in 2023;

•an increase of approximately $310 million in revenues authorized through the FERC formula rate;

•approximately $205 million in revenues authorized in the General Office Sale Memorandum Account (“GOSMA”) petition for modification final decision in 2024 with no similar amount in 2023;

•approximately $170 million in interim rate relief authorized in the 2023 WMCE application (see “2023 WMCE Application” below) in 2024 with no similar amount in 2023; and

•approximately $85 million related to the 2021 NDCTP final decision that ordered the Utility to issue a refund of the Non-Qualified Trust to customers in 2023 with no comparable refund in 2024.

Cost of Electricity

The Utility’s cost of electricity represents the cost of power and fuel used in the Utility’s generating facilities and purchased from third parties to serve customers. Cost of electricity includes fuel supplied to other third-party generating facilities, costs to comply with California’s cap-and-trade program, realized gains and losses on price risk management activities (see Note 10 of the Notes to the Consolidated Financial Statements in Item 8), and net power purchases from and sales to the CAISO electricity markets and directly from third parties.  The cost of electricity decreased by $182 million in 2024 as compared to 2023.  These decreases were primarily the result of lower natural gas market prices included as fuels costs for applicable Utility or third-party generating facilities, partially offset by lower net CAISO market sales revenues.

Cost of Natural Gas

The Utility’s cost of natural gas includes the costs of procurement, storage and transportation of natural gas, costs to comply with California’s cap-and-trade program, and realized gains and losses on price risk management activities.  See Note 10 of the Notes to the Consolidated Financial Statements in Item 8.  The cost of natural gas decreased by $562 million in 2024 as compared to 2023.  These decreases were primarily the result of lower natural gas procurement costs, partially offset by less favorable price risk management results, both of which were