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REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Tables)
 9 Months Ended
Sep. 30, 2020
Regulated Operations [Abstract]  
Long-Term Regulatory Assets
Long-term regulatory assets are comprised of the following:
Balance at
(in millions)September 30, 2020December 31, 2019
Pension benefits (1)
$1,723 $1,823 
Environmental compliance costs1,089 1,062 
Utility retained generation (2)
194 228 
Price risk management209 124 
Unamortized loss, net of gain, on reacquired debt
53 63 
Catastrophic event memorandum account (3)
771 656 
Wildfire expense memorandum account (4)
419 423 
Fire hazard prevention memorandum account (5)
259 259 
Fire risk mitigation memorandum account (6)
99 95 
Wildfire mitigation plan memorandum account (7)
1,080 558 
Deferred income taxes (8)
729 252 
Insurance premium costs (9)
588 — 
COVID-19 pandemic protection memorandum accounts (10)
53 — 
Other720 523 
Total long-term regulatory assets$7,986 $6,066 
(1) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue indefinitely into the future, the Utility expects to continuously recover pension benefits.
(2) In connection with the settlement agreement entered into among PG&E Corporation, the Utility, and the CPUC in 2003 to resolve the Utility’s 2001 proceeding under Chapter 11, the CPUC authorized the Utility to recover $1.2 billion of costs related to the Utility’s retained generation assets.  The individual components of these regulatory assets are being amortized over the respective lives of the underlying generation facilities, consistent with the period over which the related revenues are recognized. 
(3) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. As of September 30, 2020, $41 million in COVID-19 related costs was recorded to CEMA regulatory assets. Recovery of CEMA costs are subject to CPUC review and approval.
(4) Includes incremental wildfire liability insurance premium costs the CPUC approved for tracking in June 2018 for the period July 26, 2017 through December 31, 2019. Recovery of WEMA costs are subject to CPUC review and approval.
(5) Includes costs associated with the implementation of regulations and requirements adopted to protect the public from potential fire hazards associated with overhead power line facilities and nearby aerial communication facilities that have not been previously authorized in another proceeding. Recovery of FHPMA costs are subject to CPUC review and approval.
(6) Includes costs associated with the 2019 Wildfire Mitigation Plan for the period January 1, 2019 through June 4, 2019. Recovery of FRMMA costs are subject to CPUC review and approval.
(7) Includes costs associated with the 2019 Wildfire Mitigation Plan for the period June 5, 2019 through December 31, 2019 and the 2020 Wildfire Mitigation Plan for the period of January 1, 2020 through September 30, 2020. Recovery of WMPMA costs are subject to CPUC review and approval.
(8) Represents cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP.
(9) Represents incremental liability insurance premium costs for the period January 1, 2020 through September 30, 2020. Approval of costs is pending final 2020 GRC decision.
(10)On April 16, 2020, the CPUC passed a resolution that established a COVID-19 Pandemic Protections Memorandum Account (CPPMA) to recover costs associated with customer protections, including higher uncollectible costs related to a moratorium on electric and gas service disconnections for residential and small business customers. The CPPMA applies only to residential and small business customers and was approved on July 27, 2020 with an effective date of March 4, 2020. As of September 30, 2020, the Utility had recorded an aggregate under-collection of $48 million, representing incremental bad debt expense over what was collected in rates for the period the CPPMA is in effect. The remaining $5 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs are subject to CPUC review and approval.
Long-Term Regulatory Liabilities
Long-term regulatory liabilities are comprised of the following:
Balance at
(in millions)September 30, 2020December 31, 2019
Cost of removal obligations (1)
$6,902 $6,456 
Recoveries in excess of AROs (2)
351 393 
Public purpose programs (3)
930 817 
Employee benefit plans (4)
774 750 
Other1,024 854 
Total long-term regulatory liabilities$9,981 $9,270 
(1) Represents the cumulative differences between the recorded costs to remove assets and amounts collected in rates for expected costs to remove assets.
(2) Represents the cumulative differences between ARO expenses and amounts collected in rates.  Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts.  This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments.  (See Note 9 below.)
(3) Represents amounts received from customers designated for public purpose program costs expected to be incurred beyond the next 12 months, primarily related to energy efficiency programs.
(4) Represents cumulative differences between incurred costs and amounts collected in rates for Post-Retirement Medical, Post-Retirement Life and Long-Term Disability Plans.
Regulatory Balancing Accounts Receivable
Current regulatory balancing accounts receivable and payable are comprised of the following:
Receivable Balance at
(in millions)September 30, 2020December 31, 2019
Electric transmission$— $9 
Gas distribution and transmission385 363 
Energy procurement1,168 901 
Public purpose programs289 209 
Other766 632 
Total regulatory balancing accounts receivable$2,608 $2,114 
Regulatory Balancing Accounts Payable
Payable Balance at
(in millions)September 30, 2020December 31, 2019
Electric distribution$227 $31 
Electric transmission237 119 
Gas distribution and transmission65 45 
Energy procurement859 649 
Public purpose programs500 559 
Other438 394 
Total regulatory balancing accounts payable$2,326 $1,797