FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2022
(in millions)	Level 1		Level 2		Level 3		Netting (1)		Total
Assets:
Short-term investments	$	197	$	—	$	—	$	—	$	197
Fixed-income securities	—		50		—		—		50
Nuclear decommissioning trusts
Short-term investments	60		—		—		—		60
Global equity securities	1,826		—		—		—		1,826
Fixed-income securities	1,089		850		—		—		1,939
Assets measured at NAV	—		—		—		—		25
Total nuclear decommissioning trusts (2)	2,975		850		—		—		3,850
Customer credit trust
Short-term investments	43		55		—		—		98
Global equity securities	132		—		—		—		132
Fixed-income securities	101		147		—		—		248
Total customer credit trust	276		202		—		—		478
Price risk management instruments (Note 9)
Electricity	—		26		205		25		256
Gas	—		15		—		21		36
Total price risk management instruments	—		41		205		46		292
Rabbi trusts
Fixed-income securities	—		96		—		—		96
Life insurance contracts	—		68		—		—		68
Total rabbi trusts	—		164		—		—		164
Long-term disability trust
Short-term investments	8		—		—		—		8
Assets measured at NAV	—		—		—		—		131
Total long-term disability trust	8		—		—		—		139
TOTAL ASSETS	$	3,456	$	1,307	$	205	$	46	$	5,170
Liabilities:
Price risk management instruments (Note 9)
Electricity	$	—	$	75	$	194	$	(29)	$	240
Gas	—		32		—		(13)		19
TOTAL LIABILITIES	$	—	$	107	$	194	$	(42)	$	259

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

(2) Represents amount before deducting $559 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 9)
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 9)
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 June 30, 2022

Valuation
Technique

Unobservable
Input

Fair Value Measurement

Assets

Liabilities

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

Congestion revenue rights

172

Market approach

CRR auction prices

$ (2,265.69) - 2,265.94 / 0.39

Power purchase agreements

104

Discounted cash flow

Forward prices

$ (6.89) - 186.92 / 56.24

(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 and six months ended June 30, 2022 and 2021, respectively:


	Price Risk Management Instruments
(in millions)	2022		2021
Liability balance as of April 1	$	(24)	$	(94)
Net realized and unrealized gains:
Included in regulatory assets and liabilities or balancing accounts (1)	35		76
Asset (Liability) balance as of June 30	$	11	$	(18)

(1) The costs related to price risk management activities are recovered through 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)	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)	45		54
Asset (Liability) balance as of June 30	$	11	$	(18)

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 June 30, 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	$	4,617	$	4,239	$	4,619	$	4,796
Utility	34,220		29,096		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 June 30, 2022
Nuclear decommissioning trusts
Short-term investments	$	60	$	—	$	—	$	60
Global equity securities	423		1,443		(15)		1,851
Fixed-income securities	2,029		20		(110)		1,939
Total (1)	$	2,512	$	1,463	$	(125)	$	3,850
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 $559 million and $783 million as of June 30, 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)	June 30, 2022
Less than 1 year	$	11
1–5 years	620
5–10 years	461
More than 10 years	847
Total maturities of fixed-income securities	$	1,939

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 June 30, 2022
Customer credit trust
Short-term investments	$	98	$	—	$	—	$	98
Global equity securities	139		—		(7)		132
Fixed-income securities	248		1		(1)		248
Total	$	485	$	1	$	(8)	$	478

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 June 30,				Six Months Ended June 30,
(in millions)	2022		2021		2022		2021
Proceeds from sales and maturities of nuclear decommissioning trust investments	$	948	$	401	$	1,369	$	952
Gross realized gains on securities	81		74		137		129
Gross realized losses on securities	(58)		(3)		(65)		(16)

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


	As of
(in millions)	June 30, 2022
Less than 1 year	$	—
1–5 years	38
5–10 years	116
More than 10 years	94
Total maturities of fixed-income securities	$	248