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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Revenues Disaggregated by Type of Customer

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


	Year Ended
(in millions)	2019		2018
Electric
Revenue from contracts with customers
Residential	$	4,847	$	5,051
Commercial	4,756		4,908
Industrial	1,493		1,532
Agricultural	1,106		1,234
Public street and highway lighting	67		72
Other ⁽¹⁾	168		(720)
Total revenue from contracts with customers - electric	12,437		12,077
Regulatory balancing accounts ⁽²⁾	303		636
Total electric operating revenue	$	12,740	$	12,713

Natural gas
Revenue from contracts with customers
Residential	$	2,325	$	2,042
Commercial	605		537
Transportation service only	1,249		1,151
Other ⁽¹⁾	123		75
Total revenue from contracts with customers - gas	4,302		3,805
Regulatory balancing accounts ⁽²⁾	87		242
Total natural gas operating revenue	4,389		4,047
Total operating revenues	$	17,129	$	16,760

⁽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.

Schedule of Estimated Useful Lives and Balances of Utility's Property, Plant and Equipment

The Utility’s total estimated useful lives and balances of its property, plant, and equipment were as follows:


	Estimated Useful	Balance at December 31,
(in millions, except estimated useful lives)	Lives (years)	2019		2018
Electricity generating facilities⁽¹⁾	10 to 75	$	13,189	$	13,047
Electricity distribution facilities	10 to 65	35,237		32,926
Electricity transmission facilities	15 to 75	14,281		13,177
Natural gas distribution facilities	20 to 60	14,236		13,296
Natural gas transmission and storage facilities	5 to 66	8,452		8,260
Construction work in progress		2,675		2,564
Other		18		—
Total property, plant, and equipment		88,088		83,270
Accumulated depreciation		(26,453)		(24,713)
Net property, plant, and equipment		$	61,635	$	58,557

⁽¹⁾Balance includes nuclear fuel inventories. Stored nuclear fuel inventory is stated at weighted-average cost. Nuclear fuel in the reactor is expensed as it is used based on the amount of energy output. (See Note 15 below.)

Schedule of Changes in Asset Retirement Obligations

The following table summarizes the changes in ARO liability during 2019 and 2018, including nuclear decommissioning obligations:


(in millions)	2019		2018
ARO liability at beginning of year	$	5,994	$	4,899
Revision in estimated cash flows	(376)		993
Accretion	274		211
Liabilities settled	(38)		(109)
ARO liability at end of year	$	5,854	$	5,994

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) for the year ended December 31, 2019 consisted of the following:


(in millions, net of income tax)	Pension Benefits		Other Benefits		Total
Beginning balance	$	(21)	$	17	$	(4)
Other comprehensive income before reclassifications:
Unrecognized net actuarial loss (net of taxes of $24 and $88, respectively)	61		227		288
Regulatory account transfer (net of taxes of $24 and $88, respectively)	(62)		(227)		(289)
Amounts reclassified from other comprehensive income:
Amortization of prior service cost (net of taxes of $2 and $4, respectively)⁽¹⁾	(4)		10		6
Amortization of net actuarial loss (net of taxes of $1 and $1, respectively)⁽¹⁾	2		(2)		—
Regulatory account transfer (net of taxes of $1 and $3, respectively)⁽¹⁾	2		(8)		(6)
Net current period other comprehensive loss	(1)		—		(1)
Ending balance	$	(22)	$	17	$	(5)

⁽¹⁾These components are included in the computation of net periodic pension and other postretirement benefit costs. (See Note 12 below for additional details.)

The changes, net of income tax, in PG&E Corporation’s accumulated other comprehensive income (loss) for the year ended December 31, 2018 consisted of the following:


(in millions, net of income tax)	Pension Benefits		Other Benefits		Total
Beginning balance	$	(25)	$	17	$	(8)
Other comprehensive income before reclassifications:
Unrecognized net actuarial loss (net of taxes of $41 and $9, respectively)	(104)		(23)		(127)
Regulatory account transfer (net of taxes of $41 and $9, respectively)	107		23		130
Amounts reclassified from other comprehensive income:
Amortization of prior service cost (net of taxes of $2 and $4, respectively)⁽¹⁾	(4)		10		6
Amortization of net actuarial loss (net of taxes of $2 and $1, respectively)⁽¹⁾	3		(4)		(1)
Regulatory account transfer (net of taxes of $1 and $3, respectively)⁽¹⁾	2		(6)		(4)
Net current period other comprehensive loss	4		—		4
Ending balance	$	(21)	$	17	$	(4)

⁽¹⁾These components are included in the computation of net periodic pension and other postretirement benefit costs. (See Note 12 below for additional details.)

Schedule of Lease Expense

The following table shows the lease expense recognized for the fixed and variable component of the Utility’s lease obligations:


(in millions)	Year Ended December 31, 2019
Operating lease fixed cost	$	686
Operating lease variable cost	1,778
Total operating lease costs	$	2,464

Schedule of Future Expected Operating Lease Payments and Expected Obligations for Power Purchase and Other Lease Commitments

The following table shows the Utility’s future expected operating lease payments:


(in millions)	December 31, 2019
2020	$	679
2021	623
2022	548
2023	255
2024	96
Thereafter	596
Total lease payments	2,797
Less imputed interest	(518)
Total	$	2,279

Schedule of Future Minimum Rental Payments for Operating Leases

The following table shows the Utility’s future expected obligations for power purchase and other lease commitments:


(in millions)	December 31, 2018
2019	$	684
2020	677
2021	621
2022	546
2023	252
Thereafter	581
Total lease commitments	$	3,361