Company: PCG-PB
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001004980-25-000087
Chunk: 151

Company: PG&E Corp
Filing Date: 2025-04-24
Form: 10-Q
Item: Item 1A
Chunk 151
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 remarketing of the property, and the Utility does not have any decision-making rights associated with these activities.  The Utility’s financial obligation is limited to an issued letter of credit, base rent, and certain costs it pays according to the office lease agreement.  As a result, the Utility is not considered the primary beneficiary and does not consolidate BA2 300 Lakeside LLC.  For more information, see “Oakland Headquarters Lease and Purchase” in Note 11 below.

Contributions to the Wildfire Fund Established Pursuant to AB 1054AB 1054 did not specify a period of coverage for the Wildfire Fund, and so the accounting treatment is subject to significant judgments and estimates.  PG&E Corporation and the Utility account for shareholder contributions to the Wildfire Fund by recognizing an asset, amortizing the asset ratably over the life of the fund based on an estimated period of coverage, and accelerating amortization of the asset when it is determined probable and estimable that the Wildfire Fund longevity has declined, as further described below.  

49

In estimating the life of the fund, PG&E Corporation and the Utility use a dataset of historical, publicly available fire-loss data caused by electrical equipment to create Monte Carlo simulations of expected loss.  PG&E Corporation’s and the Utility’s initial estimated life of the fund was 15 years.  In the first quarter of 2024, a re-evaluation resulted in the estimated life increasing from 15 to 20 years. The number of years of historic fire-loss data, the estimated costs to settle wildfire claims for participating electric utilities (including the Utility), the estimated amount of Wildfire Fund claim payments, and the effectiveness of wildfire mitigation efforts by the California electric utility companies are significant assumptions used to estimate the life of the fund.  Other assumptions include the CPUC’s determinations of whether costs were just and reasonable in cases of electric utility-caused wildfires and amounts required to be reimbursed to the Wildfire Fund, the impacts of climate change, the FERC-allocable portion of loss recovery, and the future transmission and distribution equity rate base growth of participating electric utilities.  The estimated life of the fund has a high degree of uncertainty for many of these assumptions, and so subsequent changes could materially impact the remaining estimated life of the fund.  PG&E Corporation and the Utility have an established process to re-evaluate the estimated life of the fund whenever they obtain new significant fire-loss data.  PG&E Corporation and the Utility consider significant fire-loss data to include Cal Fire