EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2019

Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract]

Reconciliation of Changes in Plan Assets Benefit Obligations and Funded Status

The following tables show the reconciliation of changes in plan assets, benefit obligations, and the plans’ aggregate funded status for pension benefits and other benefits for PG&E Corporation during 2019 and 2018:

Pension Plan

(in millions)	2019		2018
Change in plan assets:
Fair value of plan assets at beginning of year	$	15,312	$	16,652
Actual return on plan assets	3,713		(923)
Company contributions	328		334
Benefits and expenses paid	(806)		(751)
Fair value of plan assets at end of year	$	18,547	$	15,312
Change in benefit obligation:
Benefit obligation at beginning of year	$	17,407	$	18,757
Service cost for benefits earned	443		514
Interest cost	758		687
Actuarial (gain) loss	2,723		(1,800)
Plan amendments	—		—
Benefits and expenses paid	(806)		(751)
Benefit obligation at end of year (1)	$	20,525	$	17,407
Funded Status:
Current liability	$	(14)	$	(8)
Noncurrent liability	(1,964)		(2,087)
Net liability at end of year	$	(1,978)	$	(2,095)

⁽¹⁾ PG&E Corporation’s accumulated benefit obligation was $18.4 billion and $15.8 billion at December 31, 2019 and 2018, respectively.

Postretirement Benefits Other than Pensions

(in millions)	2019		2018
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,258	$	2,420
Actual return on plan assets	474		(108)
Company contributions	29		31
Plan participant contribution	82		81
Benefits and expenses paid	(165)		(166)
Fair value of plan assets at end of year	$	2,678	$	2,258
Change in benefit obligation:
Benefit obligation at beginning of year	$	1,745	$	1,897
Service cost for benefits earned	56		66
Interest cost	76		69
Actuarial (gain) loss	22		(221)
Benefits and expenses paid	(150)		(150)
Federal subsidy on benefits paid	2		3
Plan participant contributions	81		81
Benefit obligation at end of year	$	1,832	$	1,745
Funded Status: (1)
Noncurrent asset	$	879	$	545
Noncurrent liability	(33)		(32)
Net asset at end of year	$	846	$	513

⁽¹⁾ At December 31, 2019 and 2018, the postretirement medical plan was in an overfunded position and the postretirement life insurance plan was in an underfunded position.

Components of Net Periodic Benefit Cost

Net periodic benefit cost as reflected in PG&E Corporation’s Consolidated Statements of Income was as follows:

Pension Plan

(in millions)	2019		2018		2017
Service cost for benefits earned (1)	$	443	$	514	$	472
Interest cost	758		687		714
Expected return on plan assets	(906)		(1,021)		(770)
Amortization of prior service cost	(6)		(6)		(7)
Amortization of net actuarial loss	3		5		22
Net periodic benefit cost	292		179		431
Less: transfer to regulatory account (2)	42		157		(92)
Total expense recognized	$	334	$	336	$	339

⁽¹⁾ A portion of service costs are capitalized pursuant to ASU 2017-07.

⁽²⁾ The Utility recorded these amounts to a regulatory account as they are probable of recovery from customers in future rates.

Postretirement Benefits Other than Pensions

(in millions)	2019		2018		2017
Service cost for benefits earned (1)	$	56	$	66	$	59
Interest cost	76		69		77
Expected return on plan assets	(123)		(130)		(97)
Amortization of prior service cost	14		14		15
Amortization of net actuarial loss	(3)		(5)		4
Net periodic benefit cost	$	20	$	14	$	58

⁽¹⁾ A portion of service costs are capitalized pursuant to ASU 2017-07.

Estimated Amortized Net Periodic Benefit

The estimated amounts that will be amortized into net periodic benefit costs for PG&E Corporation in 2020 are as follows:

(in millions)	Pension Plan		PBOP Plans
Unrecognized prior service cost	$	(6)	$	14
Unrecognized net loss	3		(21)
Total	$	(3)	$	(7)

Schedule of Assumptions Used in Calculating Projected Benefit Cost and Net Periodic Benefit Cost

The following actuarial assumptions were used in determining the projected benefit obligations and the net periodic benefit costs.  The following weighted average year-end assumptions were used in determining the plans’ projected benefit obligations and net benefit cost.

	Pension Plan						PBOP Plans
	December 31,						December 31,
	2019		2018		2017		2019	2018	2017
Discount rate	3.46	%	4.35	%	3.64	%	3.37 - 3.47%	4.29 - 4.37%	3.60 - 3.67%
Rate of future compensation increases	3.90	%	3.90	%	3.90	%	—	—	—
Expected return on plan assets	5.70	%	6.00	%	6.20	%	3.50 - 6.60%	3.60 - 6.80%	3.30 - 7.10%

Schedule of Assumed Health Care Cost Trend

A one-percentage-point change in assumed health care cost trend rate would have the following effects:

(in millions)	One-Percentage-Point Increase		One-Percentage-Point Decrease
Effect on postretirement benefit obligation	$	131	$	(129)
Effect on service and interest cost	9		(9)

Target Asset Allocation Percentages

The target asset allocation percentages for major categories of trust assets for pension and other benefit plans are as follows:

	Pension Plan						PBOP Plans
	2020		2019		2018		2020		2019		2018
Global equity securities	30	%	29	%	29	%	28	%	33	%	33	%
Absolute return	2	%	5	%	5	%	2	%	3	%	3	%
Real assets	8	%	8	%	8	%	8	%	6	%	6	%
Fixed-income securities	60	%	58	%	58	%	62	%	58	%	58	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

Schedule of Changes in Fair Value of Plan Assets

The following tables present the fair value of plan assets for pension and other benefits plans by major asset category at December 31, 2019 and 2018. 

	Fair Value Measurements
	At December 31,
	2019								2018
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Pension Plan:
Short-term investments	$	613	$	231	$	—	$	844	$	333	$	22	$	—	$	355
Global equity securities	1,650		—		—		1,650		1,145		—		—		1,145
Absolute Return	—		1		—		1		—		—		—		—
Real assets	548		1		—		549		461		—		—		461
Fixed-income securities	2,227		6,413		15		8,655		1,897		5,216		8		7,121
Assets measured at NAV	—		—		—		6,937		—		—		—		6,202
Total	$	5,038	$	6,646	$	15	$	18,636	$	3,836	$	5,238	$	8	$	15,284
PBOP Plans:
Short-term investments	$	37	$	—	$	—	$	37	$	33	$	—	$	—	$	33
Global equity securities	151		—		—		151		115		—		—		115
Real assets	58		—		—		58		50		—		—		50
Fixed-income securities	193		875		1		1,069		153		857		—		1,010
Assets measured at NAV	—		—		—		1,373		—		—		—		1,056
Total	$	439	$	875	$	1	$	2,688	$	351	$	857	$	—	$	2,264
Total plan assets at fair value							$	21,324							$	17,548

Schedule of Level 3 Reconciliation

The following table is a reconciliation of changes in the fair value of instruments for the pension plan that have been classified as Level 3 for the years ended December 31, 2019 and 2018:

(in millions)
For the year ended December 31, 2019	Fixed-Income
Balance at beginning of year	$	8
Actual return on plan assets:
Relating to assets still held at the reporting date	—
Relating to assets sold during the period	—
Purchases, issuances, sales, and settlements:
Purchases	11
Settlements	(4)
Balance at end of year	$	15
(in millions)
For the year ended December 31, 2018	Fixed-Income
Balance at beginning of year	$	4
Actual return on plan assets:
Relating to assets still held at the reporting date	(3)
Relating to assets sold during the period	—
Purchases, issuances, sales, and settlements:
Purchases	6
Settlements	1
Balance at end of year	$	8

Schedule of Estimated Benefits Expected to be Paid

As of December 31, 2019, the estimated benefits expected to be paid and the estimated federal subsidies expected to be received in each of the next five fiscal years, and in aggregate for the five fiscal years thereafter, are as follows:

(in millions)	Pension Plan	PBOP Plans	Federal Subsidy
2020	801	92	(8)
2021	874	94	(9)
2022	910	92	(2)
2023	944	95	(2)
2024	975	98	(3)
Thereafter in the succeeding five years	5,238	482	(8)