Company: PCG-PB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001004980-25-000010
Chunk: 206

Company: PG&E Corp
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 206
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 adjustments are recorded in the Consolidated Statements of Income and Consolidated Balance Sheets to reflect the difference between expense or income calculated in accordance with GAAP for accounting purposes and expense or income for ratemaking purposes, which is based on authorized plan contributions.  For pension benefits, a regulatory asset or liability is recorded for amounts that would otherwise be recorded to Accumulated other comprehensive income.  For post-retirement benefits other than pension, the Utility generally records a regulatory liability for amounts that would otherwise be recorded to Accumulated other comprehensive income.  As the Utility is unable to record a regulatory asset for these other benefits, the charge remains in Accumulated other comprehensive income (loss).

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Valuation AssumptionsThe following weighted average year-end actuarial assumptions were used in determining the plans’ projected benefit obligations and net benefit costs. Pension PlanPBOP Plans December 31,December 31, 202420232022202420232022Discount rate5.76 %5.21 %5.54 %5.71 - 5.76%5.18 - 5.22%5.50 - 5.54%Rate of future compensation increases4.80 %3.80 %3.80 %N/AN/AN/AExpected return on plan assets6.40 %6.00 %6.10 %3.90 - 7.20%3.70 - 7.00%3.70 - 7.30%Interest crediting rate for cash balance plan4.41 %3.86 %4.19 %N/AN/AN/AThe assumed health care cost trend rate as of December 31, 2024 was 7.50%, gradually decreasing to the ultimate trend rate of approximately 4.5% in 2033 and beyond.Expected rates of return on plan assets were developed by estimating future asset class returns and then applying these returns to the target asset allocations of the employee benefit plan trusts, resulting in a weighted average rate of return on plan assets.  Returns on fixed-income debt investments were projected based on maturity and credit spreads added to a long-term inflation rate.  Returns on equity investments were projected based on estimates of dividend yield and real earnings growth added to a long-term inflation rate.  For the pension plan, the assumed return of 6.4% compares to a ten-year actual return of 5.1%.  The rate used to discount pension benefits and other