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REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Tables)

6 Months Ended

Jun. 30, 2019

Long-term regulatory assets are comprised of the following:



	Asset Balance at
(in millions)	June 30, 2019		December 31, 2018
Pension benefits⁽¹⁾	$	1,928	$	1,947
Environmental compliance costs	997		1,013
Utility retained generation⁽²⁾	251		274
Price risk management	67		90
Unamortized loss, net of gain, on reacquired debt⁽³⁾	230		76
Catastrophic event memorandum account ⁽⁴⁾	918		790
Wildfire expense memorandum account ⁽⁵⁾	127		94
Fire hazard prevention memorandum account ⁽⁶⁾	291		263
Fire risk mitigation memorandum account⁽⁷⁾	154		—
Other	386		417
Total long-term regulatory assets	$	5,349	$	4,964

⁽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 the accelerated amortization of premiums and debt issuance costs on pre-petition debt.

⁽⁴⁾Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. Recovery of CEMA costs are subject to CPUC review and approval.

⁽⁵⁾Includes specific incremental wildfire liability costs the CPUC approved for tracking in June 2018. Recovery of WEMA costs are subject to CPUC review and approval.

⁽⁶⁾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.

⁽⁷⁾Includes costs associated with the 2019 Wildfire Safety Plan. Recovery of FHPMA costs are subject to CPUC review and approval.

Long-Term Regulatory Liabilities

Long-term regulatory liabilities are comprised of the following:



	Liability Balance at
(in millions)	June 30, 2019		December 31, 2018
Cost of removal obligations⁽¹⁾	$	6,233	$	5,981
Deferred income taxes⁽²⁾	4		283
Recoveries in excess of AROs⁽³⁾	472		356
Public purpose programs⁽⁴⁾	785		674
Employee benefit plans⁽⁵⁾	423		421
Other	1,121		824
Total long-term regulatory liabilities	$	9,038	$	8,539

⁽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 net of amounts owed to customers for deferred taxes collected at higher rates before the Tax Act and amounts owed to the Utility for reversal of deferred taxes subject to flow-through treatment.

⁽³⁾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.)

⁽⁴⁾ 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.

⁽⁵⁾ 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)	June 30, 2019		December 31, 2018
Electric distribution	$	465	$	160
Electric transmission	91		128
Utility generation	92		79
Gas distribution and transmission	173		462
Energy procurement	654		168
Public purpose programs	97		111
Other	312		327
Total regulatory balancing accounts receivable	$	1,884	$	1,435

Regulatory Balancing Accounts Payable



	Payable Balance at
(in millions)	June 30, 2019		December 31, 2018
Electric transmission	135		134
Gas distribution and transmission	6		9
Energy procurement	308		59
Public purpose programs	610		587
Other	311		287
Total regulatory balancing accounts payable	$	1,370	$	1,076