FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below. Assets held in rabbi trusts are held by PG&E Corporation and not the Utility.

	Fair Value Measurements
	September 30, 2020
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	446	$	—	$	—	$	—	$	446
Nuclear decommissioning trusts
Short-term investments	12		—		—		—		12
Global equity securities	2,222		—		—		—		2,222
Fixed-income securities	856		791		—		—		1,647
Assets measured at NAV	—		—		—		—		23
Total nuclear decommissioning trusts (2)	3,090		791		—		—		3,904
Price risk management instruments (Note 8)
Electricity	—		13		142		41		196
Gas	—		14		—		5		19
Total price risk management instruments	—		27		142		46		215
Rabbi trusts
Fixed-income securities	—		105		—		—		105
Life insurance contracts	—		78		—		—		78
Total rabbi trusts	—		183		—		—		183
Long-term disability trust
Short-term investments	5		—		—		—		5
Assets measured at NAV	—		—		—		—		144
Total long-term disability trust	5		—		—		—		149
TOTAL ASSETS	$	3,541	$	1001	$	142	$	46	$	4,897
Liabilities:
Price risk management instruments (Note 8)
Electricity	—		4		239		(3)		240
Gas	—		3		—		(1)		2
TOTAL LIABILITIES	$	—	$	7	$	239	$	(4)	$	242

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral.

(2) Represents amount before deducting $586 million, primarily related to deferred taxes on appreciation of investment value.

	Fair Value Measurements
	December 31, 2019
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	1,323	$	—	$	—	$	—	$	1,323
Nuclear decommissioning trusts
Short-term investments	6		—		—		—		6
Global equity securities	2,086		—		—		—		2,086
Fixed-income securities	862		728		—		—		1,590
Assets measured at NAV	—		—		—		—		21
Total nuclear decommissioning trusts (2)	2,954		728		—		—		3,703
Price risk management instruments (Note 8)
Electricity	—		2		161		(11)		152
Gas	—		3		—		3		6
Total price risk management instruments	—		5		161		(8)		158
Rabbi trusts
Fixed-income securities	—		100		—		—		100
Life insurance contracts	—		73		—		—		73
Total rabbi trusts	—		173		—		—		173
Long-term disability trust
Short-term investments	10		—		—		—		10
Assets measured at NAV	—		—		—		—		156
Total long-term disability trust	10		—		—		—		166
TOTAL ASSETS	$	4,287	$	906	$	161	$	(8)	$	5,523
Liabilities:
Price risk management instruments (Note 8)
Electricity	$	1	$	2	$	156	$	(13)	$	146
Gas	—		2		—		(1)		1
TOTAL LIABILITIES	$	1	$	4	$	156	$	(14)	$	147

(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and margin cash collateral.

(2) Represents amount before deducting $530 million, primarily related to deferred taxes on appreciation of investment value.

Level 3 Measurements and Sensitivity Analysis

	Fair Value at
(in millions)	September 30, 2020
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range(1) /Weighted-Average Price (2)
Congestion revenue rights	$	131	$	57	Market approach	CRR auction prices	$(20.20) - $20.20 / 0.27
Power purchase agreements	$	11	$	182	Discounted cash flow	Forward prices	$11.92 - $97.45 / 33.25

(1) Represents price per megawatt-hour.

(2) Unobservable inputs were weighted by the relative fair value of the instruments.

	Fair Value at
(in millions)	December 31, 2019
Fair Value Measurement	Assets		Liabilities		Valuation Technique	Unobservable Input	Range (1)/Weighted-Average Price (2)
Congestion revenue rights	$	140	$	44	Market approach	CRR auction prices	$(20.20) - $20.20 / 0.28
Power purchase agreements	$	21	$	112	Discounted cash flow	Forward prices	$11.77 - $59.38 / 33.62

(1) Represents price per megawatt-hour.

(2) Unobservable inputs were weighted by the relative fair value of the instruments.

Level 3 Reconciliation

The following table presents the reconciliation for Level 3 instruments for the three and nine months ended September 30, 2020 and 2019:

	Price Risk Management Instruments
(in millions)	2020		2019
Asset (liability) balance as of July 1	$	(66)	$	109
Net realized and unrealized losses:
Included in regulatory assets and liabilities or balancing accounts (1)	(31)		(75)
Asset (liability) balance as of September 30	$	(97)	$	34

(1) The costs related to price risk management activities are fully passed through to customers in rates.  Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

	Price Risk Management Instruments
(in millions)	2020		2019
Asset balance as of January 1	$	5	$	95
Net realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts (1)	(102)		(61)
Asset (liability) balance as of September 30	$	(97)	$	34

(1) The costs related to price risk management activities are fully passed through to customers in rates.  Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of PG&E Corporation’s and the Utility’s long-term debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values):

	At September 30, 2020				At December 31, 2019
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount(1)		Level 2 Fair Value(1)(2)
Debt (Note 5)
PG&E Corporation	$	1,904	$	1,942	$	—	$	—
Utility	29,657		30,637		1,500		1,500

(1) On January 29, 2019 PG&E Corporation and the Utility filed for Chapter 11 protection. Debt held by PG&E Corporation and the Utility became debt subject to compromise and is valued at the allowed claim amount. For more information, see Note 2 and Note 5.

(2) The fair value of the Utility pre-petition debt was $17.9 billion at December 31, 2019. For more information, see Note 2 and Note 5.

Schedule of Unrealized Gains (Losses) Related to Available-For-Sale Investments

The following table provides a summary of equity securities and available-for-sale debt securities:

(in millions)
As of September 30, 2020	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Total Fair Value
Nuclear decommissioning trusts
Short-term investments	$	12	$	—	$	—	$	12
Global equity securities	584		1,670		(9)		2,245
Fixed-income securities	1,486		164		(3)		1,647
Total (1)	$	2,082	$	1,834	$	(12)	$	3,904
As of December 31, 2019
Nuclear decommissioning trusts
Short-term investments	$	6	$	—	$	—	$	6
Global equity securities	500		1,609		(2)		2,107
Fixed-income securities	1,505		89		(4)		1,590
Total (1)	$	2,011	$	1,698	$	(6)	$	3,703

(1) Represents amounts before deducting $586 million and $530 million for the periods ended September 30, 2020 and December 31, 2019, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule of Maturities on Debt Instruments

The fair value of fixed-income securities by contractual maturity is as follows:

	As of
(in millions)	September 30, 2020
Less than 1 year	$	23
1–5 years	452
5–10 years	402
More than 10 years	770
Total maturities of fixed-income securities	$	1,647

Schedule of Activity for Debt and Equity Securities

The following table provides a summary of activity for fixed income and equity securities:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2020		2019		2020		2019
Proceeds from sales and maturities of nuclear decommissioning trust investments	$	890	$	346	$	1,144	$	808
Gross realized gains on securities	51		45		59		67
Gross realized losses on securities	(22)		(5)		(34)		(12)