Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 193

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 193
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recognized Tax BenefitsThe following table reconciles the changes in unrecognized tax benefits: PG&E CorporationUtility(in millions)202420232022202420232022Balance at beginning of year$616 $570 $498 $616 $570 $498 Additions for tax position taken during a prior year— 1 — — 1 — Reductions for tax position taken during a prior year(257)— (1)(257)— (1)Additions for tax position taken during the current year95 45 73 95 45 73 Settlements— — — — — — Balance at end of year$454 $616 $570 $454 $616 $570 The component of unrecognized tax benefits that, if recognized, would affect the effective tax rate at December 31, 2024 for PG&E Corporation and the Utility was $106 million.PG&E Corporation’s and the Utility’s unrecognized tax benefits may change significantly within the next 12 months based on tax audit progress.Interest income, interest expense and penalties associated with income taxes are reflected in income tax expense on the Consolidated Statements of Income.  For the years ended December 31, 2024, 2023, and 2022, these amounts were immaterial.Tax AuditsPG&E Corporation’s tax returns have been accepted through 2015 for federal income tax purposes. The IRS is auditing PG&E Corporation’s tax returns for 2015 through 2018. The most significant unresolved matter relates to the deductibility of approximately $850 million in costs for San Bruno related safety spend, which the CPUC did not allow the Utility to recover through rates, and $400 million in customer bill credits.  PG&E Corporation records an income tax benefit related to a deduction for an uncertain tax position when it determines it is more likely than not that the uncertain tax position will ultimately be sustained.  On June 4, 2024, the Office of Chief Counsel of the IRS issued a technical advice memorandum taking the position that the costs the Utility incurred for San Bruno related to safety spend and customer bill credits are nondeductible fines or penalties.  As a result, in the year ended December 31, 2024, PG&E Corporation determined that it is no longer more likely than not that its deduction related to a portion of the customer bill credits would ultimately be sustained.  Accordingly, PG&E Corporation has decreased its Income tax