XML 70 R42.htm IDEA: XBRL DOCUMENT v3.22.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) The significant components of income tax provision (benefit) by taxing jurisdiction were as follows:
 PG&E CorporationUtility
 
Year Ended December 31,
(in millions)202120202019202120202019
Current:      
Federal$— $(26)$1 $— $(26)$4 
State1 (34)101 — (34)94 
Deferred:
Federal543 258 (2,361)588 290 (2,363)
State296 171 (1,136)316 185 (1,137)
Tax credits(4)(7)(5)(4)(7)(5)
Income tax provision (benefit)
$836 $362 $(3,400)$900 $408 $(3,407)
Schedule of Deferred Tax Assets and Liabilities
The following tables describe net deferred income tax assets and liabilities:
 PG&E CorporationUtility
 
Year Ended December 31,
(in millions)2021202020212020
Deferred income tax assets:    
Tax carryforwards$5,628 $7,641 $5,425 $7,529 
Compensation185 187 108 109 
Wildfire-related claims (1)
1,723 544 1,723 544 
Operating lease liability
346 489 346 488 
Transmission tower wireless licenses266 — 266 — 
Other (2)
278 212 293 219 
Total deferred income tax assets$8,426 $9,073 $8,161 $8,889 
Deferred income tax liabilities:    
Property related basis differences8,847 8,311 8,835 8,300 
Regulatory balancing accounts1,193 763 1,193 763 
Debt financing costs501 526 501 526 
Operating lease right of use asset346 489 346 488 
Income tax regulatory asset (3)
517 254 517 254 
Other (4)
199 128 178 128 
Total deferred income tax liabilities$11,603 $10,471 $11,570 $10,459 
Total net deferred income tax liabilities$3,177 $1,398 $3,409 $1,570 
(1) Amounts primarily relate to wildfire-related claims, net of estimated insurance recoveries, and legal and other costs related to various wildfires that have occurred in PG&E Corporation’s and the Utility’s service territory over the past several years.
(2) Amounts include benefits, environmental reserve, and customer advances for construction. 
(3) Represents the tax gross up portion of the deferred income tax for the cumulative differences between amounts recognized for ratemaking purposes and amounts recognized for tax, including the impact of changes in net deferred taxes associated with a lower federal income tax rate as a result of the Tax Act.
(4) Amount primarily includes an environmental reserve.
Schedule of Effective Income Tax Rate Reconciliation
The following table reconciles income tax expense at the federal statutory rate to the income tax provision:
 PG&E CorporationUtility
 Year Ended December 31,
 202120202019202120202019
Federal statutory income tax rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Increase (decrease) in income tax rate resulting from:
State income tax (net of federal benefit) (1)
31.3 (15.3)7.5 24.1 19.1 7.5 
Effect of regulatory treatment of fixed asset differences (2)
(71.5)39.0 2.8 (51.6)(44.9)2.8 
Tax credits(1.7)1.5 0.1 (1.2)(1.7)0.1 
Fire Victim Trust (3)
127.3 (44.9)— 91.9 51.7 — 
Bankruptcy and emergence— (37.6)— — 2.4 — 
   Other, net (4)
5.3 (2.1)(0.6)2.6 2.2 (0.5)
Effective tax rate111.7 %(38.4)%30.8 %86.8 %49.8 %30.9 %
(1) Includes the effect of state flow-through ratemaking treatment.
(2) Includes the effect of federal flow-through ratemaking treatment for certain property-related costs.  For these temporary tax differences, PG&E Corporation and the Utility recognize the deferred tax impact in the current period and record offsetting regulatory assets and liabilities.  Therefore, PG&E Corporation’s and the Utility’s effective tax rates are impacted as these differences arise and reverse.  PG&E Corporation and the Utility recognize such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates.  In 2021, 2020, and 2019, the amounts also reflect the impact of the amortization of excess deferred tax benefits to be refunded to customers as a result of the Tax Act passed in December 2017.
(3) The Utility includes an adjustment for a DTA write-off associated with the grantor trust election for the Fire Victim Trust in 2021 and an adjustment for the DTA write-off for difference between the liability recorded related to the TCC RSA and the ultimate value of PG&E Corporation stock contributed to the Fire Victim Trust in 2020. PG&E Corporation includes the same adjustment as the Utility in 2021 and 2020 as well as a permanent non-deductible equity backstop premium expense in 2020. This combined with a pre-tax loss and a pre-tax income for PG&E Corporation and the Utility, respectively in 2020, accounts for the remaining difference.
(4) These amounts primarily represent the impact of tax audit settlements and non-tax deductible penalty costs in 2021 and 2020.
Schedule of Change in Unrecognized Tax Benefits The following table reconciles the changes in unrecognized tax benefits:
 PG&E CorporationUtility
(in millions)202120202019202120202019
Balance at beginning of year$437 $420 $377 $437 $420 $377 
Reductions for tax position taken during a prior year(23)(43)(1)(23)(43)(1)
Additions for tax position taken during the current year85 60 44 85 60 44 
Settlements(1)— — (1)— — 
Balance at end of year
$498 $437 $420 $498 $437 $420 
Schedule of Operating Loss and Tax Credit Carryforward Balances The following table describes PG&E Corporation’s operating loss and tax credit carryforward balances:
(in millions)December 31, 2021Expiration
Year
Federal:  
Net operating loss carryforward - Pre-2018$3,600 2031 - 2036
Net operating loss carryforward - Post-201717,467 N/A
Tax credit carryforward144 2029 - 2041
State:
Net operating loss carryforward$18,853 2039 - 2041
Tax credit carryforward122 Various