SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

The net periodic benefit costs reflected in PG&E Corporation’s Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2020 and 2019 were as follows:


	Pension Benefits				Other Benefits
	Three Months Ended September 30,
(in millions)	2020		2019		2020		2019
Service cost for benefits earned (1)	$	133	$	110	$	15	$	14
Interest cost	178		189		16		19
Expected return on plan assets	(261)		(226)		(34)		(31)
Amortization of prior service cost	(1)		(1)		3		3
Amortization of net actuarial loss	1		1		(5)		—
Net periodic benefit cost	50		73		(5)		5
Regulatory account transfer (2)	34		10		—		—
Total	$	84	$	83	$	(5)	$	5

(1) A portion of service costs are capitalized pursuant to GAAP.

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


	Pension Benefits				Other Benefits
	Nine Months Ended September 30,
(in millions)	2020		2019		2020		2019
Service cost for benefits earned (1)	$	397	$	332	$	46	$	42
Interest cost	535		568		47		57
Expected return on plan assets	(783)		(679)		(103)		(92)
Amortization of prior service cost	(4)		(4)		10		10
Amortization of net actuarial loss	3		2		(15)		(2)
Net periodic benefit cost	148		219		(15)		15
Regulatory account transfer (2)	102		31		—		—
Total	$	250	$	250	$	(15)	$	15

(1) A portion of service costs are capitalized pursuant to GAAP.

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

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)

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


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Three Months Ended September 30, 2020
Beginning balance	$	(22)	$	17	$	(5)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $0 and $1, respectively)	(1)		2		1
Amortization of net actuarial loss (net of taxes of $0 and $1, respectively)	1		(4)		(3)
Regulatory account transfer (net of taxes of $1 and $0, respectively)	—		2		2
Net current period other comprehensive gain (loss)	—		—		—
Ending balance	$	(22)	$	17	$	(5)

(1) These components are included in the computation of net periodic pension and other post-retirement benefit costs. (See the “Pension and Other Post-Retirement Benefits” table above for additional details.)


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Three Months Ended September 30, 2019
Beginning balance	$	(21)	$	17	$	(4)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $0 and $1, respectively)	(1)		2		1
Amortization of net actuarial loss (net of taxes of $0, and $0, respectively)	1		—		1
Regulatory account transfer (net of taxes of $0 and $1, respectively)	—		(2)		(2)
Net current period other comprehensive gain (loss)	—		—		—
Ending balance	$	(21)	$	17	$	(4)


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Nine Months Ended September 30, 2020
Beginning balance	$	(22)	$	17	$	(5)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $1 and $3, respectively)	(3)		7		4
Amortization of net actuarial loss (net of taxes of $1 and $4, respectively)	2		(11)		(9)
Regulatory account transfer (net of taxes of $1 and $1, respectively)	1		4		5
Net current period other comprehensive gain (loss)	—		—		—
Ending balance	$	(22)	$	17	$	(5)


	Pension Benefits		Other Benefits		Total
(in millions, net of income tax)	Nine Months Ended September 30, 2019
Beginning balance	$	(21)	$	17	$	(4)
Amounts reclassified from other comprehensive income: (1)
Amortization of prior service cost (net of taxes of $1 and $3, respectively)	(3)		7		4
Amortization of net actuarial loss (net of taxes of $0 and $1, respectively)	2		(1)		1
Regulatory account transfer (net of taxes of $1 and $2, respectively)	1		(6)		(5)
Net current period other comprehensive gain (loss)	—		—		—
Ending balance	$	(21)	$	17	$	(4)

Summary of Revenues Disaggregated by Type of Customer

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2020		2019		2020		2019
Electric
Revenue from contracts with customers
Residential	$	1,862	$	1,557	$	4,092	$	3,839
Commercial	1,455		1,481		3,537		3,568
Industrial	453		466		1,135		1,085
Agricultural	657		496		1,149		844
Public street and highway lighting	17		17		51		50
Other (1)	(148)		(82)		54		(391)
Total revenue from contracts with customers - electric	4,296		3,935		10,018		8,995
Regulatory balancing accounts (2)	(486)		(381)		267		297
Total electric operating revenue	$	3,810	$	3,554	$	10,285	$	9,292

Natural gas
Revenue from contracts with customers
Residential	$	303	$	249	$	1,795	$	1,764
Commercial	90		92		434		461
Transportation service only	259		264		902		950
Other (1)	27		(98)		(153)		(303)
Total revenue from contracts with customers - gas	679		507		2,978		2,872
Regulatory balancing accounts (2)	393		371		458		222
Total natural gas operating revenue	1,072		878		3,436		3,094
Total operating revenues	$	4,882	$	4,432	$	13,721	$	12,386

(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.