REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS (Tables)

12 Months Ended

Dec. 31, 2019

Long-term regulatory assets are comprised of the following:


	Balance at December 31,					Recovery Period
(in millions)	2019		2018
Pension benefits⁽¹⁾	$	1,823	$	1,947	Indefinitely
Environmental compliance costs	1,062		1,013		32 years
Utility retained generation⁽²⁾	228		274		8 years
Price risk management	124		90		10 years
Unamortized loss, net of gain, on reacquired debt	63		76		25 years
Catastrophic event memorandum account ⁽³⁾	656		790		1 - 4 years
Wildfire expense memorandum account ⁽⁴⁾	423		94		1 - 4 years
Fire hazard prevention memorandum account ⁽⁵⁾	259		263		1 - 4 years
Fire risk mitigation memorandum account⁽⁶⁾	95		—		1 - 4 years
Wildfire mitigation plan memorandum account ⁽⁷⁾	558		—		1 - 4 years
Deferred income taxes ⁽⁸⁾	252		—		47 years
Other ⁽⁹⁾	523		417		Various
Total long-term regulatory assets	$	6,066	$	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 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.

⁽⁴⁾Includes specific incremental wildfire-related liability costs the CPUC approved for tracking in June 2018. Recovery of WEMA costs are subject to CPUC review and approval.

⁽⁵⁾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.

⁽⁶⁾Includes costs associated with the 2019 Wildfire Mitigation Plan for the period January 1, 2019 through June 4, 2019. Recovery of FRMMA costs are subject to CPUC review and approval.

⁽⁷⁾ Includes costs associated with the 2019 Wildfire Mitigation Plan for the period June 5, 2019 through December 31, 2019. Recovery of WMPMA costs are subject to CPUC review and approval.

⁽⁸⁾ Represents cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP. (See Note 9 below.)

⁽⁹⁾ December 31, 2019 balance includes $178 million of unamortized debt issuance costs and debt discount that was written off to present the debt subject to compromise at the outstanding face value.

Long-Term Regulatory Liabilities

Long-term regulatory liabilities are comprised of the following:


	Balance at December 31,
(in millions)	2019		2018
Cost of removal obligations ⁽¹⁾	$	6,456	$	5,981
Deferred income taxes⁽²⁾	—		283
Recoveries in excess of AROs⁽³⁾	393		356
Public purpose programs ⁽⁴⁾	817		674
Retirement plans⁽⁵⁾	750		421
Other	854		824
Total long-term regulatory liabilities	$	9,270	$	8,539

⁽¹⁾Represents the cumulative differences between asset removal costs recorded and amounts collected in rates for expected asset removal costs.

⁽²⁾ Represents the cumulative differences between amounts recognized for ratemaking purposes and expense recognized in accordance with GAAP. (See Note 9 below.)

⁽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 11 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.

Current Regulatory Balancing Accounts Receivable

Current regulatory balancing accounts receivable and payable are comprised of the following:


	Receivable Balance at December 31,
(in millions)	2019		2018
Electric distribution	$	—	$	160
Electric transmission	9		128
Utility generation	—		79
Gas distribution and transmission	363		462
Energy procurement	901		168
Public purpose programs	209		111
Other	632		327
Total regulatory balancing accounts receivable	$	2,114	$	1,435

Current Regulatory Balancing Accounts Payable


	Payable Balance at December 31,
(in millions)	2019		2018
Electric distribution	$	31	$	—
Electric transmission	119		134
Gas distribution and transmission	45		9
Energy procurement	649		59
Public purpose programs	559		587
Other	394		287
Total regulatory balancing accounts payable	$	1,797	$	1,076