
	Balance at December 31,				Recovery Period
(in millions)	2023		2022
Pension benefits (1)	$	348	$	120	Indefinitely
Environmental compliance costs	1,218		1,193		32 years
Utility retained generation (2)	39		86		4 years
Price risk management	160		177		16.5 years
Catastrophic event memorandum account (3)	1,074		1,085		1 - 3 years
Wildfire expense memorandum account (4)	540		439		TBD years
Fire hazard prevention memorandum account (5)	7		79		1 - 2 years
Fire risk mitigation memorandum account (6)	110		65		1 - 3 years
Wildfire mitigation plan memorandum account (7)	541		756		1 - 3 years
Deferred income taxes (8)	3,543		2,730		51 years
Insurance premium costs (9)	1		99		2 - 4 years
Wildfire mitigation balancing account (10)	120		327		1 - 4 years
Vegetation management balancing account (11)	1,538		2,276		1 - 3 years
COVID-19 pandemic protection memorandum accounts (12)	17		26		1 - 3 years
Microgrid memorandum account (13)	59		213		1 - 3 years
Financing costs (14)	196		211		Various
SB 901 securitization (15)	5,249		5,378		30 years
AROs in excess of recoveries (16)	73		120		Various
General rate case memorandum accounts (17)	1,291		—		1 - 2 years
Other	1,065		1,063		Various
Total noncurrent regulatory assets	$	17,189	$	16,443

(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 December 31, 2023 and 2022, $43 million and $44 million in COVID-19 related costs were 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 were approved for recovery in the 2020 WMCE final decision.

(6) Includes incremental costs associated with fire risk mitigation not included in the WMP’s. Recovery of costs incurred during the period from 2020 through 2022 was requested in the 2023 WGSC application, and costs incurred in 2023 will be requested in a future application. Recovery of FRMMA costs is subject to CPUC review and approval.

(7) Includes costs incurred in 2020 through 2023 and associated with each year’s respective approved WMP. Recovery of costs incurred during the period from 2020 through 2022 was requested in the 2023 WGSC application, and costs incurred in 2023 will be requested in a future application. Also includes the noncurrent portion of costs associated with the 2019 WMP that were approved for recovery in the 2020 WMCE final decision. Recovery of WMPMA costs is subject to CPUC review and approval.

(10) Represents costs associated with certain wildfire mitigation activities for the period of January 1, 2020 through December 31, 2022. The noncurrent balance includes costs incurred during the 12-month period ending December 31, 2020 that were approved for recovery in the 2021 WMCE final decision. The remaining balance includes costs above 115% of adopted revenue requirements, as authorized in the 2020 GRC rate case, which are subject to CPUC review and approval.

(11) Includes costs associated with certain vegetation management activities for the period of January 1, 2020 through December 31, 2022. The noncurrent balance represents costs above 120% of adopted revenue requirements, as authorized in the 2020 GRC rate case, 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 costs, and higher accounts receivable financing costs for the period of March 4, 2020 to September 30, 2021. As of December 31, 2023, the Utility had recorded uncollectibles in the amount of $5 million for small business customers. The remaining $12 million is associated with program costs and higher accounts receivable financing costs. As of December 31, 2022, the Utility had recorded uncollectibles in the amount of $4 million for residential customers pending approval for recovery in the RUBA in addition to uncollectibles recorded for small business customers. The remaining $22 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs is subject to CPUC review and approval.

(14) Includes costs associated with long-term debt financing deemed recoverable under ASC 980, Regulated Operations more than twelve months from the current date. These costs and their amortization periods 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 through fixed recovery charges, which are designed to recover the full scheduled principal amount of the recovery bonds along with any associated interest and financing costs. See Note 5 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 11 below. Recovery periods for this balance vary because the different sites and assets to which the ARO expenses are attributable have different recovery periods.

(17) The GRC memorandum accounts record the difference between the gas and electric revenue requirements in effect on January 1, 2023 and through the date of the final 2023 GRC decision as authorized by the CPUC in December 2023. These amounts will be recovered in rates over 24 months, beginning January 1, 2024.

In general, regulatory assets represent the cumulative differences between amounts recognized for ratemaking purposes and expense or accumulated other comprehensive income (loss) recognized in accordance with GAAP. Additionally, the Utility does not earn a return on regulatory assets if the related costs do not accrue interest. Accordingly, the Utility earns a return on its regulatory assets for retained generation, and regulatory assets for unamortized loss, net of gain, on reacquired debt.

At December 31, 2023 and 2022, the Utility had current regulatory liabilities of $1.2 billion and $1.1 billion, respectively. At December 31, 2023, current regulatory liabilities consisted primarily of billed revenues exceeding TO20 transmission revenue requirements. Current regulatory liabilities are included within current liabilities-other in the Consolidated Balance Sheets.


	Balance at December 31,
(in millions)	2023		2022
Cost of removal obligations (1)	$	8,191	$	7,773
Public purpose programs (2)	1,238		1,062
Employee benefit plans (3)	1,032		904
Transmission tower wireless licenses (4)	384		430
SFGO sale (5)	185		264
SB 901 securitization (6)	6,628		5,800
Wildfire self-insurance (7)	407		—
Other	1,379		1,397
Total noncurrent regulatory liabilities	$	19,444	$	17,630

(4) Represents the portion of the net proceeds received from the sale of transmission tower wireless licenses that will be returned to customers. Of the $384 million, $288 million will be refunded to FERC-jurisdictional customers through 2042, and $96 million will be refunded to CPUC-jurisdictional customers through 2026.

(6) 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 over the life of the recovery bonds. The balance reflects qualifying shareholder tax benefits that PG&E Corporation is obligated to contribute to the customer credit trust, net of amortization since inception. See Note 5 below.

The Utility tracks (1) differences between the Utility’s authorized revenue requirement and customer billings, and (2) differences between incurred costs and customer billings. To the extent these differences are probable of recovery or refund over the next 12 months, the Utility records a current regulatory balancing account receivable or payable. Regulatory balancing accounts that the Utility expects to collect or refund over a period exceeding 12 months are recorded as other noncurrent assets – regulatory assets or noncurrent liabilities – regulatory liabilities, respectively, in the Consolidated Balance Sheets. These differences do not have an impact on net income. Balancing accounts fluctuate during the year based on seasonal electric and gas usage and the timing of when costs are incurred and customer revenues are collected. In addition, certain regulatory balancing accounts earn interest which is reflected in Interest income in the Consolidated Statements of Income. Interest income from balancing accounts was $547 million, $153 million and $18 million for the years ended December 31, 2023, 2022, and 2021, respectively.


	Receivable Balance at December 31,
(in millions)	2023		2022
Electric distribution (1)	$	1,092	$	448
Electric transmission (2)	99		96
Gas distribution and transmission (3)	144		72
Energy procurement (4)	1,002		684
Public purpose programs (5)	137		358
Fire hazard prevention memorandum account (6)	40		—
Wildfire mitigation plan memorandum account (7)	161		—
Wildfire mitigation balancing account (8)	12		2
Vegetation management balancing account (9)	340		137
Insurance premium costs (10)	227		602
Residential uncollectibles balancing accounts (11)	507		126
Catastrophic event memorandum account (12)	413		144
General rate case memorandum accounts (13)	1,097		—
Other	389		595
Total regulatory balancing accounts receivable	$	5,660	$	3,264


	Payable Balance at December 31,
(in millions)	2023		2022
Electric transmission (2)	$	200	$	228
Gas distribution and transmission (3)	224		66
Energy procurement (4)	77		428
Public purpose programs (5)	299		272
SFGO sale	79		152
Wildfire mitigation balancing account (8)	125		—
Nuclear decommissioning adjustment mechanism (14)	216		8
Other	449		504
Total regulatory balancing accounts payable	$	1,669	$	1,658

(4) Energy procurement balancing accounts track recovery of costs related to the procurement of electricity and other revenue requirements approved by the CPUC for recovery in procurement-related balancing accounts, including any environmental compliance-related activities.

(8) The WMBA tracks costs associated with wildfire mitigation revenue requirement activities which were authorized for cost recovery in the 2021 WMCE proceeding and the final decision granting interim rate relief in connection with the 2022 WMCE application.

(10) The insurance premium costs accounts track the current portion of incremental excess liability insurance costs recorded to RTBA and adjustment mechanism for costs determined in other proceedings, as authorized in the 2020 GRC and 2019 GT&S, respectively. In addition to insurance premium costs recorded in Regulatory balancing accounts receivable and in noncurrent Regulatory assets above, as of December 31, 2023, and 2022 there were $0 and $48 million, respectively, in insurance premium costs recorded in current Regulatory assets.

(11) The RUBA tracks costs associated with customer protections, including higher uncollectible costs related to a moratorium on electric and gas service disconnections for residential customers. The RUBA balance increased from December 31, 2022 to December 31, 2023 due to additional under-collections from residential customers, which are expected to be recovered in 2024.

(12) The CEMA tracks costs associated with responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities which were approved for cost recovery in the 2018 CEMA and 2020 WMCE final decisions.

(14) The Nuclear decommissioning adjustment mechanism (“NDAM”) account tracks the collection of revenue requirements associated with the decommissioning of the Utility’s nuclear facilities which were approved in the 2021 NDCTP final decision. See Note 2 above.