Long-term regulatory assets are comprised of the following:


	Balance at
(in millions)	June 30, 2022		December 31, 2021
Pension benefits (1)	$	582	$	708
Environmental compliance costs	1,042		1,089
Utility retained generation (2)	110		133
Price risk management	177		216
Catastrophic event memorandum account (3)	951		1,119
Wildfire expense memorandum account (4)	361		347
Fire hazard prevention memorandum account (5)	75		75
Fire risk mitigation memorandum account (6)	84		44
Wildfire mitigation plan memorandum account (7)	535		424
Deferred income taxes (8)	2,222		1,849
Insurance premium costs (9)	165		207
Wildfire mitigation balancing account (10)	287		273
Vegetation management balancing account (11)	1,557		1,411
COVID-19 pandemic protection memorandum accounts (12)	33		49
Microgrid memorandum account (13)	165		163
Financing costs (14)	190		175
SB 901 securitization (15)	5,492		—
AROs in excess of recoveries (16)	211		—
Other	976		925
Total long-term regulatory assets	$	15,215	$	9,207

(1) Payments into the pension and other benefits plans are based on annual contribution requirements. As these annual requirements continue indefinitely into the future, the Utility expects to continuously recover pension benefits.

(2) In connection with the settlement agreement entered into among PG&E Corporation, the Utility, and the CPUC in 2003 to resolve the Utility’s 2001 proceeding under Chapter 11, the CPUC authorized the Utility to recover $1.2 billion of costs related to the Utility’s retained generation assets. The individual components of these regulatory assets are being amortized over the respective lives of the underlying generation facilities, consistent with the period over which the related revenues are recognized.

(3) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. As of June 30, 2022 and December 31, 2021, $52 million and $49 million in COVID-19 related costs was recorded to CEMA regulatory assets, respectively. Recovery of CEMA costs is subject to CPUC review and approval.

(5) Includes costs associated with the implementation of regulations and requirements adopted to protect the public from potential fire hazards associated with overhead power line facilities and nearby aerial communication facilities that have not been previously authorized in another proceeding. Recovery of FHPMA costs is subject to CPUC review and approval.

(6) Includes costs associated with the 2019 WMP for the period from January 1, 2019 through June 4, 2019 and other incremental costs associated with fire risk mitigation. Recovery of FRMMA costs is subject to CPUC review and approval.

(7) Includes costs associated with the 2019 WMP for the period from June 5, 2019 through December 31, 2019, the 2020 WMP for the period from January 1, 2020 through December 31, 2020, the 2021 WMP for the period from January 1, 2021 through December 31, 2021 and the 2022 WMP for the period from January 1, 2022 through June 30, 2022. Recovery of WMPMA costs is subject to CPUC review and approval.

(9) Represents excess liability insurance premium costs recorded to RTBA and adjustment mechanism for insurance costs determined in other proceedings, as authorized in the 2020 GRC and 2019 GT&S rate cases, respectively.

(10) Includes costs associated with certain wildfire mitigation activities for the period from January 1, 2020 through June 30, 2022. Noncurrent balance represents costs above 115% of adopted revenue requirements, which are subject to CPUC review and approval.

(12) Includes costs associated with customer protections, including higher uncollectible costs related to the moratorium on electric and gas service disconnections program implementation cost, and higher accounts receivable financing costs for the period of March 4, 2020 to September 30, 2021. As of June 30, 2022, the Utility had recorded an under-collection of $12 million for small business customers. The remaining $21 million is associated with program costs and higher accounts receivable financing costs. As of December 31, 2021, the Utility had recorded an under-collection of $30 million for residential under-collections pending approval for recovery in the RUBA in addition to under-collections recorded for small business customers. The remaining $19 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs is subject to CPUC review and approval.

(13) Includes costs associated with temporary generation, infrastructure upgrades, and community grid enablement programs associated with the implementation of microgrids. Amounts incurred are subject to CPUC review and approval.

(14) Includes costs associated with long-term debt financing deemed recoverable under ASC 980 more than twelve months from the current date. These costs and their amortization period are reviewable and approved in the Utility’s Cost of Capital or other regulatory filings.

(15) In connection with the SB 901 securitization, the CPUC authorized the issuance of one or more series of recovery bonds in connection with the post-emergence transaction to finance $7.5 billion of claims associated with the 2017 Northern California wildfires. The balance represents PG&E Wildfire Recovery Funding LLC’s right to recover $7.5 billion in wildfire claims costs associated with the 2017 Northern California wildfires, partially offset by the $2.0 billion in required upfront shareholder contributions to the customer credit trust, net of amortization since inception. The recovery bonds will be paid via fixed recovery charges, which is designed to recover the full principal amount of the recovery bonds along with any associated interest and financing costs. See Note 6 below.

(16) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory asset also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 10 below.

Long-term regulatory liabilities are comprised of the following:


	Balance at
(in millions)	June 30, 2022		December 31, 2021
Cost of removal obligations (1)	$	7,537	$	7,306
Recoveries in excess of AROs (2)	—		388
Public purpose programs (3)	1,066		946
Employee benefit plans (4)	1,240		1,229
Transmission tower wireless licenses (5)	438		446
SFGO sale (6)	304		343
SB 901 securitization (7)	5,510		—
Other	851		1,341
Total long-term regulatory liabilities	$	16,946	$	11,999

(2) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 10 below.

(5) Represents the portion of the net proceeds received from the sale of transmission tower wireless licenses that will be returned to customers. Of the $438 million, $305 million and $133 million will be refunded to FERC and CPUC jurisdiction customers, respectively. For more information, see Note 3 of the Notes to the Consolidated Financial Statements in Item 8 of the 2021 Form 10-K.

(6) Represents the noncurrent portion of the net gain on the sale of the SFGO, which closed on September 17, 2021, that is being distributed to customers over a five-year period, beginning in 2022.

(7) In connection with the SB 901 securitization, the Utility is required to return up to $7.59 billion of certain shareholder tax benefits to customers via periodic bill credits. The balance reflects qualifying shareholder tax benefits that PG&E Corporation has recognized to date, net of amortization since inception, and is expected to increase as additional qualifying amounts are recognized, including when the Fire Victim Trust sells additional shares, upon which time PG&E Corporation will recognize the associated tax benefits related to the sale. See Note 6 below.


	Balance at
(in millions)	June 30, 2022		December 31, 2021
Electric distribution	$	1,006	$	—
Energy procurement	673		310
Public purpose programs	312		321
Fire hazard prevention memorandum account (1)	—		50
Fire risk mitigation memorandum account (1)	—		14
Wildfire mitigation plan memorandum account (1)	—		67
Wildfire mitigation balancing account (2)	—		91
General rate case memorandum accounts	235		468
Vegetation management balancing account	472		127
Insurance premium costs	247		605
Wildfire expense memorandum account	—		440
Residential uncollectibles balancing accounts	95		127
Catastrophic event memorandum account	315		—
Other	515		379
Total regulatory balancing accounts receivable	$	3,870	$	2,999


	Balance at
(in millions)	June 30, 2022		December 31, 2021
Electric distribution	$	—	$	121
Electric transmission	457		24
Gas distribution and transmission	17		83
Energy procurement	98		211
Public purpose programs	270		259
Nuclear decommissioning adjustment mechanism	74		137
Other	678		286
Total regulatory balancing accounts payable	$	1,594	$	1,121