FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility.

	Fair Value Measurements
	March 31, 2020
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	1,717	$	—	$	—	$	—	$	1,717
Nuclear decommissioning trusts
Short-term investments	82		—		—		—		82
Global equity securities	1,792		—		—		—		1,792
Fixed-income securities	784		734		—		—		1,518
Assets measured at NAV	—		—		—		—		17
Total nuclear decommissioning trusts (2)	2,658		734		—		—		3,409
Price risk management instruments (Note 8)
Electricity	—		7		159		5		171
Gas	—		2		—		—		2
Total price risk management instruments	—		9		159		5		173
Rabbi trusts
Fixed-income securities	—		102		—		—		102
Life insurance contracts	—		76		—		—		76
Total rabbi trusts	—		178		—		—		178
Long-term disability trust
Short-term investments	6		—		—		—		6
Assets measured at NAV	—		—		—		—		157
Total long-term disability trust	6		—		—		—		163
TOTAL ASSETS	$	4,381	$	921	$	159	$	5	$	5,640
Liabilities:
Price risk management instruments (Note 8)
Electricity	$	—	$	5	$	164	$	(7)	$	162
Gas	—		—		—		—		—
TOTAL LIABILITIES	$	—	$	5	$	164	$	(7)	$	162

⁽¹⁾ Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral.

⁽²⁾ Represents amount before deducting $498 million, primarily related to deferred taxes on appreciation of investment value.

	Fair Value Measurements
	December 31, 2019
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	1,323	$	—	$	—	$	—	$	1,323
Nuclear decommissioning trusts
Short-term investments	6		—		—		—		6
Global equity securities	2,086		—		—		—		2,086
Fixed-income securities	862		728		—		—		1,590
Assets measured at NAV	—		—		—		—		21
Total nuclear decommissioning trusts (2)	2,954		728		—		—		3,703
Price risk management instruments (Note 8)
Electricity	—		2		161		(11)		152
Gas	—		3		—		3		6
Total price risk management instruments	—		5		161		(8)		158
Rabbi trusts
Fixed-income securities	—		100		—		—		100
Life insurance contracts	—		73		—		—		73
Total rabbi trusts	—		173		—		—		173
Long-term disability trust
Short-term investments	10		—		—		—		10
Assets measured at NAV	—		—		—		—		156
Total long-term disability trust	10		—		—		—		166
TOTAL ASSETS	$	4,287	$	906	$	161	$	(8)	$	5,523
Liabilities:
Price risk management instruments (Note 8)
Electricity	$	1	$	2	$	156	$	(13)	$	146
Gas	—		2		—		(1)		1
TOTAL LIABILITIES	$	1	$	4	$	156	$	(14)	$	147

⁽¹⁾ Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral.

⁽²⁾ Represents amount before deducting $530 million, primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements and Sensitivity Analysis

	Fair Value at
(in millions)	March 31, 2020
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range(1) /Weighted-Average Price (2)
Congestion revenue rights	$	141	$	45	Market approach	CRR auction prices	$(45.08) - $20.20 / 0.27
Power purchase agreements	$	18	$	119	Discounted cash flow	Forward prices	$9.42 - $57.42 / 32.04

⁽¹⁾ Represents price per megawatt-hour.

⁽²⁾ Unobservable inputs were weighted by the relative fair value of the instruments.

	Fair Value at
(in millions)	December 31, 2019
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range (1)/Weighted-Average Price (2)
Congestion revenue rights	$	140	$	44	Market approach	CRR auction prices	$(20.20) - $20.20 / 0.28
Power purchase agreements	$	21	$	112	Discounted cash flow	Forward prices	$11.77 - $59.38 / 33.62

⁽¹⁾ Represents price per megawatt-hour.

⁽²⁾ Unobservable inputs were weighted by the relative fair value of the instruments.

Level 3 Reconciliation

The following table presents the reconciliation for Level 3 instruments for the three months ended March 31, 2020 and 2019:

	Price Risk Management Instruments
(in millions)	2020		2019
Asset balance as of January 1	$	5	$	95
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts (1)	(10)		34
Asset balance as of March 31	$	(5)	$	129

⁽¹⁾ The costs related to price risk management activities are fully passed through to customers in rates.  Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of PG&E Corporation’s and the Utility’s long-term debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values):

	At March 31, 2020				At December 31, 2019
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 5)
PG&E Corporation (1)	$	—	$	—	$	—	$	—
Utility (1)(2)	2,000		2,007		1,500		1,500

⁽¹⁾ On January 29, 2019 PG&E Corporation and the Utility filed for Chapter 11 protection. Debt held by PG&E Corporation and the Utility became debt subject to compromise and is valued at the allowed claim amount. For more information, see Note 2 and Note 5.

⁽²⁾ The fair value of the Utility pre-petition debt is $17.2 billion and $17.9 billion as of March 31, 2020 and December 31, 2019, respectively. For more information, see Note 2 and Note 5.

Schedule of Unrealized Gains (Losses) Related to Available-For-Sale Investments

The following table provides a summary of equity securities and available-for-sale debt securities:

(in millions)
As of March 31, 2020	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Total Fair Value
Nuclear decommissioning trusts
Short-term investments	$	82	$	—	$	—	$	82
Global equity securities	652		1,188		(31)		1,809
Fixed-income securities	1,377		155		(14)		1,518
Total (1)	$	2,111	$	1,343	$	(45)	$	3,409
As of December 31, 2019
Nuclear decommissioning trusts
Short-term investments	$	6	$	—	$	—	$	6
Global equity securities	500		1,609		(2)		2,107
Fixed-income securities	1,505		89		(4)		1,590
Total (1)	$	2,011	$	1,698	$	(6)	$	3,703

⁽¹⁾ Represents amounts before deducting $498 million and $530 million for the periods ended March 31, 2020 and December 31, 2019, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule of Maturities on Debt Instruments

The fair value of fixed-income securities by contractual maturity is as follows:

	As of
(in millions)	March 31, 2020
Less than 1 year	$	26
1–5 years	397
5–10 years	408
More than 10 years	687
Total maturities of fixed-income securities	$	1,518

Schedule of Activity for Debt and Equity Securities

The following table provides a summary of activity for fixed income and equity securities:

	Three Months Ended March 31,
(in millions)	2020		2019
Proceeds from sales and maturities of nuclear decommissioning trust investments	$	533	$	346
Gross realized gains on securities	18		(34)
Gross realized losses on securities	(9)		19