FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

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
	At December 31, 2018
(in millions)	Level 1		Level 2		Level 3		Netting⁽¹⁾			Total
Assets:
Short-term investments	$	1,593	$	—	$	—	$	—		$	1,593
Nuclear decommissioning trusts
Short-term investments	29		—		—		—			29
Global equity securities	1,793		—		—		—			1,793
Fixed-income securities	661		639		—		—			1,300
Assets measured at NAV	—		—		—		—			16
Total nuclear decommissioning trusts⁽²⁾	2,483		639		—		—			3,138
Price risk management instruments (Note 9)
Electricity	—		5		203		51			259
Gas	—		1		—		37			38
Total price risk management instruments	—		6		203		88			297
Rabbi trusts
Fixed-income securities	—		93		—		—			93
Life insurance contracts	—		67		—		—			67
Total rabbi trusts	—		160		—		—			160
Long-term disability trust
Short-term investments	7		—		—		—			7
Assets measured at NAV	—		—		—		—			155
Total long-term disability trust	7		—		—		—			162
TOTAL ASSETS	$	4,083	$	805	$	203	$	88		$	5,350
Liabilities:
Price risk management instruments (Note 9)
Electricity	$	4	$	5	$	108	$	(10	)	$	107
Gas	—		2		—		—			2
TOTAL LIABILITIES	$	4	$	7	$	108	$	(10	)	$	109

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

⁽²⁾ Represents amount before deducting $408 million, primarily related to deferred taxes on appreciation of investment value.



	Fair Value Measurements
	At December 31, 2017
(in millions)	Level 1		Level 2		Level 3		Netting⁽¹⁾			Total
Assets:
Short-term investments	$	385	$	—	$	—	$	—		$	385
Nuclear decommissioning trusts
Short-term investments	23		—		—		—			23
Global equity securities	1,967		—		—		—			1,967
Fixed-income securities	733		562		—		—			1,295
Assets measured at NAV	—		—		—		—			18
Total nuclear decommissioning trusts⁽²⁾	2,723		562		—		—			3,303
Price risk management instruments (Note 9)
Electricity	—		3		129		6			138
Gas	—		1		—		—			1
Total price risk management instruments	—		4		129		6			139
Rabbi trusts
Fixed-income securities	—		72		—		—			72
Life insurance contracts	—		71		—		—			71
Total rabbi trusts	—		143		—		—			143
Long-term disability trust
Short-term investments	8		—		—		—			8
Assets measured at NAV	—		—		—		—			167
Total long-term disability trust	8		—		—		—			175
TOTAL ASSETS	$	3,116	$	709	$	129	$	6		$	4,145
Liabilities:
Price risk management instruments (Note 9)
Electricity	10		15		87		(25		)	87
Gas	—		1		—		—			1
TOTAL LIABILITIES	$	10	$	16	$	87	$	(25	)	$	88

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

⁽²⁾ Represents amount before deducting $440 million, primarily related to deferred taxes on appreciation of investment value.

Sensitivity Analysis

Fair Value at

(in millions)

At December 31, 2018

Valuation

Technique

Unobservable

Input

Fair Value Measurement

Assets

Liabilities

Range⁽¹⁾

Congestion revenue rights

203

Market approach

CRR auction prices

$ (18.61) - 32.26

Power purchase agreements

—

Discounted cash flow

Forward prices

$ 19.81 - 38.80

⁽¹⁾Represents price per megawatt-hour

Fair Value at

(in millions)

At December 31, 2017

Valuation

Technique

Unobservable

Input

Fair Value Measurement

Assets

Liabilities

Range⁽¹⁾

Congestion revenue rights

129

Market approach

CRR auction prices

$ (16.03) - 11.99

Power purchase agreements

—

Discounted cash flow

Forward prices

$ 18.81 - 38.80

⁽¹⁾Represents price per megawatt-hour

Level 3 Reconciliation

The following table presents the reconciliation for Level 3 price risk management instruments for the years ended December 31, 2018 and 2017, respectively:



	Price Risk Management Instruments
(in millions)	2018		2017
Asset (liability) balance as of January 1	$	42	$	55
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts⁽¹⁾	53		(13		)
Asset (liability) balance as of December 31	$	95	$	42

⁽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, excluding pollution control bonds, were as follows (the table below excludes financial instruments with carrying values that approximate their fair values):



	At December 31,
	2018				2017
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 4)
PG&E Corporation⁽¹⁾	$	350	$	350	$	350	$	350
Utility	17,450		14,747		17,090		19,128

⁽¹⁾ On April 26, 2018, PG&E Corporation early redeemed its outstanding $350 million principal amount of 2.40% Senior Notes. Also, in April 2018, PG&E

Corporation entered into a $350 million floating rate unsecured term loan. For more information, see Note 4.

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)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses			Total Fair Value
As of December 31, 2018
Nuclear decommissioning trusts
Short-term investments	$	29	$	—	$	—		$	29
Global equity securities	568		1,246		(5		)	1,809
Fixed-income securities	1,288		30		(18		)	1,300
Total⁽¹⁾	$	1,885	$	1,276	$	(23	)	$	3,138
As of December 31, 2017
Nuclear decommissioning trusts
Short-term investments	$	23	$	—	$	—		$	23
Global equity securities	524		1,463		(2		)	1,985
Fixed-income securities	1,252		51		(8		)	1,295
Total⁽¹⁾	$	1,799	$	1,514	$	(10	)	$	3,303

⁽¹⁾ Represents amounts before deducting $408 million and $440 million at December 31, 2018 and 2017, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule of Long Term Debt Repayments

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



	As of
(in millions)	December 31, 2018
Less than 1 year	$	60
1–5 years	391
5–10 years	341
More than 10 years	508
Total maturities of fixed-income securities	$	1,300

Schedule of Activity for Debt and Equity Securities

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



(in millions)	2018			2017			2016
Proceeds from sales and maturities of nuclear decommissioning investments	$	1,412		$	1,291		$	1,295
Gross realized gains on securities	54			53			18
Gross realized losses on securities	(24		)	(11		)	(26		)