SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2021

The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2021 and 2020 were as follows:


	Pension Benefits				Other Benefits
	Three Months Ended September 30,
(in millions)	2021		2020		2021		2020
Service cost for benefits earned (1)	$	147	$	133	$	15	$	15
Interest cost	161		178		13		16
Expected return on plan assets	(261)		(261)		(33)		(34)
Amortization of prior service cost	(1)		(1)		3		3
Amortization of net actuarial loss	1		1		(8)		(5)
Net periodic benefit cost	47		50		(10)		(5)
Regulatory account transfer (2)	37		34		—		—
Total	$	84	$	84	$	(10)	$	(5)

(1) A portion of service costs are capitalized pursuant to GAAP.

(2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates.


	Pension Benefits				Other Benefits
	Nine Months Ended September 30,
(in millions)	2021		2020		2021		2020
Service cost for benefits earned (1)	$	440	$	397	$	47	$	46
Interest cost	484		535		39		47
Expected return on plan assets	(784)		(783)		(103)		(103)
Amortization of prior service cost	(4)		(4)		10		10
Amortization of net actuarial loss	4		3		(24)		(15)
Net periodic benefit cost	140		148		(31)		(15)
Regulatory account transfer (2)	111		102		—		—
Total	$	251	$	250	$	(31)	$	(15)

(1) A portion of service costs are capitalized pursuant to GAAP.

(2) The Utility recorded these amounts to a regulatory account since they are probable of recovery from, or refund to, customers in future rates.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)

The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) consisted of the following:


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Three Months Ended September 30, 2021
Beginning balance	$	(38)	$	17	$	(21)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $0 and $1, respectively)	(1)		2		1
Amortization of net actuarial loss (net of taxes of $0 and $3, respectively)	1		(5)		(4)
Regulatory account transfer (net of taxes of $1 and $2, respectively)	1		3		4
Net current period other comprehensive gain (loss)	1		—		1
Ending balance	$	(37)	$	17	$	(20)

(1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. (See the “Pension and Other Post-Retirement Benefits” table above for additional details.)


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Three Months Ended September 30, 2020
Beginning balance	$	(22)	$	17	$	(5)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $0 and $1, respectively)	(1)		2		1
Amortization of net actuarial loss (net of taxes of $0 and $1, respectively)	1		(4)		(3)
Regulatory account transfer (net of taxes of $1 and $0, respectively)	—		2		2
Net current period other comprehensive gain (loss)	—		—		—
Ending balance	$	(22)	$	17	$	(5)


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Nine Months Ended September 30, 2021
Beginning balance	$	(39)	$	17	$	(22)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $1 and $3, respectively)	(3)		7		4
Amortization of net actuarial loss (net of taxes of $1 and $7, respectively)	3		(17)		(14)
Regulatory account transfer (net of taxes of $1 and $4, respectively)	2		10		12
Net current period other comprehensive gain (loss)	2		—		2
Ending balance	$	(37)	$	17	$	(20)


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Nine Months Ended September 30, 2020
Beginning balance	$	(22)	$	17	$	(5)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $1 and $3, respectively)	(3)		7		4
Amortization of net actuarial loss (net of taxes of $1 and $4, respectively)	2		(11)		(9)
Regulatory account transfer (net of taxes of $1 and $1, respectively)	1		4		5
Net current period other comprehensive gain (loss)	—		—		—
Ending balance	$	(22)	$	17	$	(5)

Summary of Revenues Disaggregated by Type of Customer

The following table presents the Utility’s revenues disaggregated by type of customer:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2021		2020		2021		2020
Electric
Revenue from contracts with customers
Residential	$	1,962	$	1,862	$	4,778	$	4,092
Commercial	1,580		1,455		3,776		3,537
Industrial	467		453		1,099		1,135
Agricultural	655		657		1,238		1,149
Public street and highway lighting	18		17		53		51
Other (1)	(52)		(148)		169		54
Total revenue from contracts with customers - electric	4,630		4,296		11,113		10,018
Regulatory balancing accounts (2)	(449)		(486)		414		267
Total electric operating revenue	$	4,181	$	3,810	$	11,527	$	10,285

Natural gas
Revenue from contracts with customers
Residential	$	295	$	303	$	1,921	$	1,795
Commercial	102		90		486		434
Transportation service only	323		259		995		902
Other (1)	16		27		(168)		(153)
Total revenue from contracts with customers - gas	736		679		3,234		2,978
Regulatory balancing accounts (2)	548		393		635		458
Total natural gas operating revenue	$	1,284	$	1,072	$	3,869	$	3,436
Total operating revenues	$	5,465	$	4,882	$	15,396	$	13,721

(1) This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items.

(2) These amounts represent revenues authorized to be billed or refunded to customers.