FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2022

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
	At March 31, 2022
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	245	$	—	$	—	$	—	$	245
Nuclear decommissioning trusts
Short-term investments	73		—		—		—		73
Global equity securities	2,297		—		—		—		2,297
Fixed-income securities	1,135		831		—		—		1,966
Assets measured at NAV	—		—		—		—		30
Total nuclear decommissioning trusts (2)	3,505		831		—		—		4,366
Price risk management instruments (Note 8)
Electricity	—		27		209		4		240
Gas	—		5		—		40		45
Total price risk management instruments	—		32		209		44		285
Rabbi trusts
Fixed-income securities	—		99		—		—		99
Life insurance contracts	—		73		—		—		73
Total rabbi trusts	—		172		—		—		172
Long-term disability trust
Short-term investments	6		—		—		—		6
Assets measured at NAV	—		—		—		—		145
Total long-term disability trust	6		—		—		—		151
TOTAL ASSETS	$	3,756	$	1,035	$	209	$	44	$	5,219
Liabilities:
Price risk management instruments (Note 8)
Electricity	$	—	$	30	$	233	$	(16)	$	247
Gas	—		11		—		(9)		2
TOTAL LIABILITIES	$	—	$	41	$	233	$	(25)	$	249

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

(2) Represents amount before deducting $731 million primarily related to deferred taxes on appreciation of investment value.


	Fair Value Measurements
	December 31, 2021
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	289	$	—	$	—	$	—	$	289
Nuclear decommissioning trusts
Short-term investments	22		—		—		—		22
Global equity securities	2,504		—		—		—		2,504
Fixed-income securities	1,158		866		—		—		2,024
Assets measured at NAV	—		—		—		—		31
Total nuclear decommissioning trusts (2)	3,684		866		—		—		4,581
Price risk management instruments (Note 8)
Electricity	—		9		214		6		229
Gas	—		4		—		137		141
Total price risk management instruments	—		13		214		143		370
Rabbi trusts
Fixed-income securities	—		104		—		—		104
Life insurance contracts	—		76		—		—		76
Total rabbi trusts	—		180		—		—		180
Long-term disability trust
Short-term investments	6		—		—		—		6
Assets measured at NAV	—		—		—		—		132
Total long-term disability trust	6		—		—		—		138
TOTAL ASSETS	$	3,979	$	1,059	$	214	$	143	$	5,558
Liabilities:
Price risk management instruments (Note 8)
Electricity	—		11		248		(24)		235
Gas	—		10		—		(3)		7
TOTAL LIABILITIES	$	—	$	21	$	248	$	(27)	$	242

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

(2) Represents amount before deducting $783 million, primarily related to deferred taxes on appreciation of investment value.

Fair Value Measurement Inputs and Valuation Techniques

Fair Value at

(in millions)

At March 31, 2022

Valuation
Technique

Unobservable
Input

Fair Value Measurement

Assets

Liabilities

Range (1)/Weighted-Average Price (2)

Congestion revenue rights

180

Market approach

CRR auction prices

$ (2,265.69) - 2,265.94 / 0.41

Power purchase agreements

138

Discounted cash flow

Forward prices

$ (6.75) - 247.15 / 50.98

(1) Represents price per megawatt-hour.

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

Fair Value at

(in millions)

At December 31, 2021

Valuation
Technique

Unobservable
Input

Fair Value Measurement

Assets

Liabilities

Range (1)/Weighted-Average Price (2)

Congestion revenue rights

188

Market approach

CRR auction prices

$ (40.77) - 2,265.94 / 0.40

Power purchase agreements

155

Discounted cash flow

Forward prices

$ (7.97) - 256.20 / 47.17

(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 price risk management instruments for the three months ended March 31, 2022 and 2021, respectively:


	Price Risk Management Instruments
(in millions)	2022		2021
Liability balance as of January 1	$	(34)	$	(72)
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts (1)	10		(22)
Liability balance as of March 31	$	(24)	$	(94)

(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 March 31, 2022				At December 31, 2021
(in millions)	Carrying Amount		Level 2 Fair Value		Carrying Amount		Level 2 Fair Value
Debt (Note 5)
PG&E Corporation	$	4,618	$	4,610	$	4,619	$	4,796
Utility	32,704		30,702		31,816		35,803

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)	Amortized Cost		Total Unrealized Gains		Total Unrealized Losses		Total Fair Value
As of March 31, 2022
Nuclear decommissioning trusts
Short-term investments	$	73	$	—	$	—	$	73
Global equity securities	468		1,876		(17)		2,327
Fixed-income securities	2,005		38		(77)		1,966
Total (1)	$	2,546	$	1,914	$	(94)	$	4,366
As of December 31, 2021
Nuclear decommissioning trusts
Short-term investments	$	22	$	—	$	—	$	22
Global equity securities	479		2,066		(10)		2,535
Fixed-income securities	1,938		98		(12)		2,024
Total (1)	$	2,439	$	2,164	$	(22)	$	4,581

(1) Represents amounts before deducting $731 million and $783 million as of March 31, 2022 and December 31, 2021, respectively, primarily related to deferred taxes on appreciation of investment value.

Schedule of Available for Sale Securities Table

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


	As of
(in millions)	March 31, 2022
Less than 1 year	$	8
1–5 years	611
5–10 years	458
More than 10 years	889
Total maturities of fixed-income securities	$	1,966

Schedule of Activity for Debt and Equity Securities

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


	Three Months Ended March 31,
(in millions)	2022		2021
Proceeds from sales and maturities of nuclear decommissioning investments	$	421	$	551
Gross realized gains on securities	56		55
Gross realized losses on securities	(7)		(13)