OTHER CONTINGENCIES AND COMMITMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Expense and Capital Expenditures

The amounts set forth in the table below include actual recorded costs and forecasted cost estimates as of the date of the settlement agreement for expenses and capital expenditures which the Utility has incurred or planned to incur to comply with its legal obligations to provide safe and reliable service. While actual costs incurred for certain cost categories are different than what was assumed in the settlement agreement, the Utility recorded $1.625 billion of the disallowed costs during the year ended December 31, 2020.

(in millions)
Description(1)	Expense		Capital		Total
Distribution Safety Inspections and Repairs Expense (FRMMA/WMPMA)	$	236	$	—	$	236
Transmission Safety Inspections and Repairs Expense (TO)(2)	433		—		433
Vegetation Management Support Costs (FHPMA)	36		—		36
2017 Northern California Wildfires CEMA Expense and Capital (CEMA)	82		66		148
2018 Camp Fire CEMA Expense (CEMA)	435		—		435
2018 Camp Fire CEMA Capital for Restoration (CEMA)	—		253		253
2018 Camp Fire CEMA Capital for Temporary Facilities (CEMA)	—		84		84
Total	$	1,222	$	403	$	1,625

(1) All amounts included in the table reflect actual recorded costs for 2019 and 2020.

(2) Transmission amounts are under the FERC’s regulatory authority.

Schedule of Environmental Loss Contingencies by Site

The Utility’s environmental remediation liability is primarily included in noncurrent liabilities on the Condensed Consolidated Balance Sheets and is comprised of the following:

	Balance at
(in millions)	September 30, 2021		December 31, 2020
Topock natural gas compressor station	$	299	$	303
Hinkley natural gas compressor station	129		132
Former manufactured gas plant sites owned by the Utility or third parties (1)	686		659
Utility-owned generation facilities (other than fossil fuel-fired),   other facilities, and third-party disposal sites (2)	112		111
Fossil fuel-fired generation facilities and sites (3)	74		96
Total environmental remediation liability	$	1,300	$	1,301

(1) Primarily driven by the following sites: San Francisco Beach Street, Vallejo, Napa, and San Francisco East Harbor.

(2) Primarily driven by Geothermal landfill and Shell Pond site.

(3) Primarily driven by the San Francisco Potrero Power Plant.

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles the income tax expense at the federal statutory rate to the income tax provision for the Utility:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) in income tax rate resulting from:
State income tax (net of federal benefit) (1)	303.4	%	(17.8)	%	45.3	%	30.9	%
Effect of regulatory treatment of fixed asset differences (2)	(156.8)	%	(113.5)	%	(57.4)	%	(48.1)	%
Fire Victim Trust (3)	994.5	%	—	%	155.4	%	—	%
Bankruptcy and Emergence	0.5	%	1.4	%	0.3	%	75.2	%
Other, net	25.8	%	(8.0)	%	4.8	%	(4.5)	%
Effective tax rate	1,188.4	%	(116.9)	%	169.4	%	74.5	%

(1) Includes the effect of state flow-through ratemaking treatment.

(2) Includes the effect of federal flow-through ratemaking treatment for certain property-related costs. For these temporary tax differences, PG&E Corporation and the Utility recognize the deferred tax impact in the current period and records offsetting regulatory assets and liabilities. PG&E Corporation’s and the Utility’s effective tax rate is impacted as these differences arise and reverse. PG&E Corporation and the Utility recognize such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates. In 2021 and 2020, the amounts also reflect the impact of the amortization of excess deferred tax benefits to be refunded to customers as a result of the Tax Act passed in December 2017.

(3) Includes the effect of the grantor trust election. For more information, see Note 6 above.

The following table reconciles the income tax expense at the federal statutory rate to the income tax provision for PG&E Corporation:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Increase (decrease) in income tax rate resulting from:
State income tax (net of federal benefit) (1)	788.8	%	84.2	%	61.8	%	(15.5)	%
Effect of regulatory treatment of fixed asset differences (2)	(413.4)	%	403.7	%	(81.9)	%	25.2	%
Fire Victim Trust (3)	2,621.7	%	—	%	221.8	%	—	%
Bankruptcy and Emergence	1.3	%	(47.2)	%	0.4	%	(69.4)	%
Other, net	72.6	%	31.1	%	8.1	%	3.3	%
Effective tax rate	3,092.0	%	492.8	%	231.2	%	(35.4)	%

(1) Includes the effect of state flow-through ratemaking treatment.

(2) Includes the effect of federal flow-through ratemaking treatment for certain property-related costs. For these temporary tax differences, PG&E Corporation and the Utility recognize the deferred tax impact in the current period and records offsetting regulatory assets and liabilities. PG&E Corporation’s and the Utility’s effective tax rate is impacted as these differences arise and reverse. PG&E Corporation and the Utility recognize such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates. In 2021 and 2020, the amounts also reflect the impact of the amortization of excess deferred tax benefits to be refunded to customers as a result of the Tax Act passed in December 2017.

(3) Includes the effect of the grantor trust election. For more information, see Note 6 above.