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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549
FORM 10-Q
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(Mark One)
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[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended September 30, 2018
OR |
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
|
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|||||
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For the transition period from ___________ to __________
|
||||||||
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Commission
File
Number
|
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Exact Name of
Registrant
as Specified
in its Charter
|
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State or Other
Jurisdiction of
Incorporation
|
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IRS Employer
Identification
Number
|
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1-12609
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PG&E Corporation
|
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California
|
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94-3234914
|
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1-2348
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Pacific Gas and Electric Company
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California
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94-0742640
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PG&E Corporation
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
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Pacific Gas and Electric Company
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
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Address of principal executive offices, including zip code
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PG&E Corporation
(415) 973-1000
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Pacific Gas and Electric Company
(415) 973-7000
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Registrant's telephone number, including area code
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Indicate by check mark whether
the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
|
||||||||
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PG&E Corporation:
|
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[X] Yes [ ] No
|
|||||
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Pacific Gas and Electric Company:
|
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[X] Yes [ ] No
|
|||||
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|
||||||||
|
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
|
||||||||
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PG&E Corporation:
|
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[X] Yes [ ] No
|
||||
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Pacific Gas and Electric Company:
|
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|
[X] Yes [ ] No
|
||||
|
|
||||||||
|
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or
an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
||||||||
|
PG&E Corporation:
|
[X] Large accelerated filer
|
[ ] Accelerated filer
|
||||||
|
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|
[ ] Non-accelerated filer
|
|
|
|
|||
|
|
|
[ ] Smaller reporting company
|
[ ] Emerging growth company
|
|||||
|
Pacific Gas and Electric Company:
|
[ ] Large accelerated filer
|
[ ] Accelerated filer
|
||||||
|
|
|
[X] Non-accelerated filer
|
|
|
|
|||
|
|
|
[ ] Smaller reporting company
|
[ ] Emerging growth company
|
|||||
|
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|
|
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
||||||||
|
PG&E Corporation:
|
|
[ ]
|
|
|
||||
|
Pacific
Gas and Electric Company:
|
|
[ ]
|
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|
||||
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|
||||||||
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
||||||||
|
PG&E Corporation:
|
|
[ ] Yes [X] No
|
||||||
|
Pacific Gas and Electric Company:
|
|
[ ] Yes [X] No
|
||||||
|
Indicate the number
of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
|
|||||||||
|
Common stock outstanding as of October 25, 2018:
|
|
|
|||||||
|
PG&E Corporation:
|
|
518,674,276
|
|
||||||
|
Pacific
Gas and Electric Company:
|
|
264,374,809
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||||||
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|
2017 Form 10-K
|
PG&E Corporation and Pacific Gas and Electric Company's combined Annual Report on Form 10-K for the year ended December 31, 2017
|
|
ALJ
|
administrative law judge
|
|
ARO
|
asset retirement obligation
|
|
ASU
|
accounting standard update issued by the FASB (see below)
|
|
CAISO
|
California Independent System Operator
|
|
Cal Fire
|
California Department of Forestry and Fire Protection
|
|
Cal PA
|
Public Advocates Office of the California Public Utilities Commission (formerly known as Office of Ratepayer Advocates or ORA)
|
|
CCA
|
Community Choice Aggregator
|
|
CEC
|
California Energy Resources Conservation and Development Commission
|
|
CEMA
|
Catastrophic Event Memorandum Account
|
|
CPUC
|
California Public Utilities Commission
|
|
CRRs
|
congestion revenue rights
|
|
DER
|
distributed energy resources
|
|
Diablo Canyon
|
Diablo Canyon nuclear power plant
|
|
DOGGR
|
Division of Oil, Gas, and Geothermal Resources of the California Department of Conservation
|
|
DTSC
|
Department of Toxic Substances Control
|
|
EPS
|
earnings per common share
|
|
EV
|
electric vehicle
|
|
FASB
|
Financial Accounting Standards Board
|
|
FERC
|
Federal Energy Regulatory Commission
|
|
FHPMA
|
fire hazard prevention memorandum account
|
|
GAAP
|
U.S. Generally Accepted Accounting Principles
|
|
GHG
|
greenhouse gas
|
|
GRC
|
general rate case
|
|
GT&S
|
gas transmission and storage
|
|
HSM
|
hazardous substance memorandum account
|
|
IOU(s)
|
investor-owned utility(ies)
|
|
MD&A
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in Item 2 of this Form 10-Q
|
|
MGP(s)
|
manufactured gas plants
|
|
NAV
|
net asset value
|
|
NDCTP
|
Nuclear Decommissioning Cost Triennial Proceedings
|
|
NEIL
|
Nuclear Electric Insurance Limited
|
|
NRC
|
Nuclear Regulatory Commission
|
|
OES
|
State of California Office of Emergency Services
|
|
OII
|
order instituting investigation
|
|
OIR
|
order instituting rulemaking
|
|
PCIA
|
Power Charge Indifference Adjustment
|
|
PD
|
proposed decision
|
|
PFM
|
petition for modification
|
|
RAMP
|
Risk Assessment Mitigation Phase
|
|
ROE
|
return on equity
|
|
SB
|
Senate Bill
|
|
SEC
|
U.S. Securities and Exchange Commission
|
|
SED
|
Safety and Enforcement Division of the CPUC
|
|
Tax Act
|
Tax Cuts and Jobs Act of 2017
|
|
TE
|
transportation electrification
|
|
TO
|
transmission owner
|
|
TURN
|
The Utility Reform Network
|
|
Utility
|
Pacific Gas and Electric Company
|
|
VIE(s)
|
variable interest entity(ies)
|
|
WEMA
|
Wildfire Expense Memorandum Account
|
|
|
(Unaudited)
|
||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||
|
(in millions, except per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
|
Electric
|
$
|
3,466
|
|
|
$
|
3,648
|
|
|
$
|
9,729
|
|
|
$
|
10,036
|
|
|
Natural gas
|
915
|
|
|
869
|
|
|
2,942
|
|
|
2,999
|
|
||||
|
Total operating revenues
|
4,381
|
|
|
4,517
|
|
|
12,671
|
|
|
13,035
|
|
||||
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
|
Cost of electricity
|
1,256
|
|
|
1,466
|
|
|
3,038
|
|
|
3,436
|
|
||||
|
Cost of natural gas
|
69
|
|
|
78
|
|
|
437
|
|
|
524
|
|
||||
|
Operating and maintenance
|
1,611
|
|
|
1,324
|
|
|
5,001
|
|
|
4,453
|
|
||||
|
Wildfire-related claims, net of insurance recoveries
|
(10
|
)
|
|
53
|
|
|
2,108
|
|
|
—
|
|
||||
|
Depreciation, amortization, and decommissioning
|
759
|
|
|
710
|
|
|
2,257
|
|
|
2,134
|
|
||||
|
Total operating expenses
|
3,685
|
|
|
3,631
|
|
|
12,841
|
|
|
10,547
|
|
||||
|
Operating Income (Loss)
|
696
|
|
|
886
|
|
|
(170
|
)
|
|
2,488
|
|
||||
|
Interest income
|
14
|
|
|
9
|
|
|
35
|
|
|
22
|
|
||||
|
Interest expense
|
(232
|
)
|
|
(220
|
)
|
|
(678
|
)
|
|
(663
|
)
|
||||
|
Other income, net
|
104
|
|
|
38
|
|
|
318
|
|
|
98
|
|
||||
|
Income (Loss) Before Income Taxes
|
582
|
|
|
713
|
|
|
(495
|
)
|
|
1,945
|
|
||||
|
Income tax provision (benefit)
|
15
|
|
|
160
|
|
|
(527
|
)
|
|
403
|
|
||||
|
Net Income
|
567
|
|
|
553
|
|
|
32
|
|
|
1,542
|
|
||||
|
Preferred stock dividend requirement of subsidiary
|
3
|
|
|
3
|
|
|
10
|
|
|
10
|
|
||||
|
Income Available for Common Shareholders
|
$
|
564
|
|
|
$
|
550
|
|
|
$
|
22
|
|
|
$
|
1,532
|
|
|
Weighted Average Common Shares Outstanding, Basic
|
517
|
|
|
513
|
|
|
516
|
|
|
511
|
|
||||
|
Weighted Average Common Shares Outstanding, Diluted
|
517
|
|
|
516
|
|
|
517
|
|
|
514
|
|
||||
|
Net Earnings Per Common Share, Basic
|
$
|
1.09
|
|
|
$
|
1.07
|
|
|
$
|
0.04
|
|
|
$
|
3.00
|
|
|
Net Earnings Per Common Share, Diluted
|
$
|
1.09
|
|
|
$
|
1.07
|
|
|
$
|
0.04
|
|
|
$
|
2.98
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||||||||||
|
|
(Unaudited)
|
||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Net Income
|
$
|
567
|
|
|
$
|
553
|
|
|
$
|
32
|
|
|
$
|
1,542
|
|
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
||||||||
|
Pension and other post-retirement benefit plans obligations (net of taxes of $0, $0, $0, and $0, at respective dates)
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
|
Total other comprehensive income
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
|
Comprehensive Income
|
568
|
|
|
553
|
|
|
33
|
|
|
1,543
|
|
||||
|
Preferred stock dividend requirement of subsidiary
|
3
|
|
|
3
|
|
|
10
|
|
|
10
|
|
||||
|
Comprehensive Income Attributable to
Common Shareholders
|
$
|
565
|
|
|
$
|
550
|
|
|
$
|
23
|
|
|
$
|
1,533
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||||||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
(in millions)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
ASSETS
|
|
|
|
|
|
||
|
Current Assets
|
|
|
|
|
|||
|
Cash and cash equivalents
|
$
|
430
|
|
|
$
|
449
|
|
|
Accounts receivable:
|
|
|
|
||||
|
Customers (net of allowance for doubtful accounts of $58 and $64
at respective dates)
|
1,297
|
|
|
1,243
|
|
||
|
Accrued unbilled revenue
|
962
|
|
|
946
|
|
||
|
Regulatory balancing accounts
|
1,326
|
|
|
1,222
|
|
||
|
Other
|
902
|
|
|
861
|
|
||
|
Regulatory assets
|
229
|
|
|
615
|
|
||
|
Inventories:
|
|
|
|
||||
|
Gas stored underground and fuel oil
|
116
|
|
|
115
|
|
||
|
Materials and supplies
|
389
|
|
|
366
|
|
||
|
Other
|
698
|
|
|
464
|
|
||
|
Total current assets
|
6,349
|
|
|
6,281
|
|
||
|
Property, Plant, and Equipment
|
|
|
|
||||
|
Electric
|
56,860
|
|
|
55,133
|
|
||
|
Gas
|
20,798
|
|
|
19,641
|
|
||
|
Construction work in progress
|
2,855
|
|
|
2,471
|
|
||
|
Other
|
2
|
|
|
3
|
|
||
|
Total property, plant, and equipment
|
80,515
|
|
|
77,248
|
|
||
|
Accumulated depreciation
|
(24,310
|
)
|
|
(23,459
|
)
|
||
|
Net property, plant, and equipment
|
56,205
|
|
|
53,789
|
|
||
|
Other Noncurrent Assets
|
|
|
|
||||
|
Regulatory assets
|
4,429
|
|
|
3,793
|
|
||
|
Nuclear decommissioning trusts
|
2,917
|
|
|
2,863
|
|
||
|
Income taxes receivable
|
67
|
|
|
65
|
|
||
|
Other
|
1,418
|
|
|
1,221
|
|
||
|
Total other noncurrent assets
|
8,831
|
|
|
7,942
|
|
||
|
TOTAL ASSETS
|
$
|
71,385
|
|
|
$
|
68,012
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
(in millions, except share amounts)
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
||
|
Current
Liabilities
|
|
|
|
|
|
||
|
Short-term borrowings
|
$
|
750
|
|
|
$
|
931
|
|
|
Long-term debt, classified as current
|
193
|
|
|
445
|
|
||
|
Accounts payable:
|
|
|
|
||||
|
Trade creditors
|
1,699
|
|
|
1,646
|
|
||
|
Regulatory balancing accounts
|
1,230
|
|
|
1,120
|
|
||
|
Other
|
556
|
|
|
517
|
|
||
|
Disputed claims and customer refunds
|
217
|
|
|
243
|
|
||
|
Interest payable
|
151
|
|
|
217
|
|
||
|
Wildfire-related claims
|
2,794
|
|
|
561
|
|
||
|
Other
|
1,899
|
|
|
1,449
|
|
||
|
Total current liabilities
|
9,489
|
|
|
7,129
|
|
||
|
Noncurrent Liabilities
|
|
|
|
||||
|
Long-term debt
|
18,407
|
|
|
17,753
|
|
||
|
Regulatory liabilities
|
8,607
|
|
|
8,679
|
|
||
|
Pension and other post-retirement benefits
|
2,014
|
|
|
2,128
|
|
||
|
Asset retirement obligations
|
4,999
|
|
|
4,899
|
|
||
|
Deferred income taxes
|
5,822
|
|
|
5,822
|
|
||
|
Other
|
2,351
|
|
|
2,130
|
|
||
|
Total noncurrent liabilities
|
42,200
|
|
|
41,411
|
|
||
|
Contingencies and Commitments (Note 9)
|
|
|
|
|
|
||
|
Equity
|
|
|
|
||||
|
Shareholders' Equity
|
|
|
|
||||
|
Common stock, no par value, authorized 800,000,000 shares;
517,102,983 and 514,755,845 shares outstanding at respective dates
|
12,833
|
|
|
12,632
|
|
||
|
Reinvested earnings
|
6,623
|
|
|
6,596
|
|
||
|
Accumulated other comprehensive loss
|
(12
|
)
|
|
(8
|
)
|
||
|
Total shareholders'
equity
|
19,444
|
|
|
19,220
|
|
||
|
Noncontrolling Interest - Preferred Stock of Subsidiary
|
252
|
|
|
252
|
|
||
|
Total equity
|
19,696
|
|
|
19,472
|
|
||
|
TOTAL LIABILITIES AND EQUITY
|
$
|
71,385
|
|
|
$
|
68,012
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Nine Months Ended September 30,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Cash Flows from Operating Activities
|
|
|
|
||||
|
Net income
|
$
|
32
|
|
|
$
|
1,542
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
|
Depreciation, amortization, and decommissioning
|
2,257
|
|
|
2,134
|
|
||
|
Allowance for equity funds used during construction
|
(97
|
)
|
|
(63
|
)
|
||
|
Deferred income taxes and tax credits, net
|
10
|
|
|
848
|
|
||
|
Disallowed capital expenditures
|
(38
|
)
|
|
47
|
|
||
|
Other
|
231
|
|
|
204
|
|
||
|
Effect of changes in operating assets and liabilities:
|
|
|
|
||||
|
Accounts receivable
|
(201
|
)
|
|
(58
|
)
|
||
|
Wildfire-related insurance receivable
|
64
|
|
|
(166
|
)
|
||
|
Inventories
|
(24
|
)
|
|
(35
|
)
|
||
|
Accounts payable
|
245
|
|
|
76
|
|
||
|
Wildfire-related claims
|
2,233
|
|
|
12
|
|
||
|
Income taxes receivable/payable
|
—
|
|
|
135
|
|
||
|
Other current assets and liabilities
|
(154
|
)
|
|
23
|
|
||
|
Regulatory assets, liabilities, and balancing accounts, net
|
(128
|
)
|
|
(30
|
)
|
||
|
Other noncurrent assets and liabilities
|
(194
|
)
|
|
68
|
|
||
|
Net cash provided by operating activities
|
4,236
|
|
|
4,737
|
|
||
|
Cash Flows from Investing Activities
|
|
|
|
|
|
||
|
Capital expenditures
|
(4,592
|
)
|
|
(3,938
|
)
|
||
|
Proceeds from sales and maturities of nuclear decommissioning trust investments
|
1,121
|
|
|
1,043
|
|
||
|
Purchases of nuclear decommissioning trust investments
|
(1,165
|
)
|
|
(1,071
|
)
|
||
|
Other
|
19
|
|
|
16
|
|
||
|
Net
cash used in investing activities
|
(4,617
|
)
|
|
(3,950
|
)
|
||
|
Cash Flows from Financing Activities
|
|
|
|
|
|
||
|
Borrowings under revolving credit facilities
|
775
|
|
|
—
|
|
||
|
Repayments under revolving credit facilities
|
(775
|
)
|
|
—
|
|
||
|
Net issuances (repayments) of commercial paper, net of discount of $1 and $4 at respective dates
|
(182
|
)
|
|
(652
|
)
|
||
|
Short-term debt financing
|
250
|
|
|
250
|
|
||
|
Short-term debt matured
|
(250
|
)
|
|
(250
|
)
|
||
|
Proceeds from issuance of long-term debt, net of discount and issuance costs of $7 and $11 at respective dates
|
1,143
|
|
|
734
|
|
||
|
Long-term debt matured or repurchased
|
(750
|
)
|
|
(345
|
)
|
||
|
Common stock issued
|
137
|
|
|
345
|
|
||
|
Common stock dividends paid
|
—
|
|
|
(754
|
)
|
||
|
Other
|
14
|
|
|
(101
|
)
|
||
|
Net cash provided by (used in) financing activities
|
362
|
|
|
(773
|
)
|
||
|
Net change in cash and cash equivalents
|
(19
|
)
|
|
14
|
|
||
|
Cash and cash equivalents at January 1
|
449
|
|
|
177
|
|
||
|
Cash and cash equivalents at September 30
|
$
|
430
|
|
|
$
|
191
|
|
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
||
|
Cash received (paid) for:
|
|
|
|
|
|
||
|
Interest, net of amounts capitalized
|
$
|
(650
|
)
|
|
$
|
(644
|
)
|
|
Income taxes, net
|
(49
|
)
|
|
158
|
|
||
|
Supplemental disclosures of noncash
investing and financing activities
|
|
|
|
||||
|
Common stock dividends declared but not yet paid
|
$
|
—
|
|
|
$
|
272
|
|
|
Capital expenditures financed through accounts payable
|
348
|
|
|
301
|
|
||
|
Noncash common stock issuances
|
—
|
|
|
16
|
|
||
|
Terminated capital leases
|
161
|
|
|
—
|
|
||
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Operating Revenues
|
|
|
|
|
|
|
|
|
|
||||||
|
Electric
|
$
|
3,467
|
|
|
$
|
3,647
|
|
|
$
|
9,730
|
|
|
$
|
10,038
|
|
|
Natural gas
|
915
|
|
|
869
|
|
|
2,942
|
|
|
2,999
|
|
||||
|
Total operating revenues
|
4,382
|
|
|
4,516
|
|
|
12,672
|
|
|
13,037
|
|
||||
|
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
|
Cost of electricity
|
1,256
|
|
|
1,466
|
|
|
3,038
|
|
|
3,436
|
|
||||
|
Cost of natural gas
|
69
|
|
|
78
|
|
|
437
|
|
|
524
|
|
||||
|
Operating and maintenance
|
1,611
|
|
|
1,389
|
|
|
5,002
|
|
|
4,518
|
|
||||
|
Wildfire-related claims, net of insurance recoveries
|
(10
|
)
|
|
53
|
|
|
2,108
|
|
|
—
|
|
||||
|
Depreciation, amortization, and decommissioning
|
759
|
|
|
710
|
|
|
2,257
|
|
|
2,134
|
|
||||
|
Total operating expenses
|
3,685
|
|
|
3,696
|
|
|
12,842
|
|
|
10,612
|
|
||||
|
Operating Income (Loss)
|
697
|
|
|
820
|
|
|
(170
|
)
|
|
2,425
|
|
||||
|
Interest income
|
14
|
|
|
10
|
|
|
34
|
|
|
22
|
|
||||
|
Interest expense
|
(229
|
)
|
|
(217
|
)
|
|
(668
|
)
|
|
(655
|
)
|
||||
|
Other income, net
|
103
|
|
|
38
|
|
|
321
|
|
|
93
|
|
||||
|
Income (Loss) Before Income Taxes
|
585
|
|
|
651
|
|
|
(483
|
)
|
|
1,885
|
|
||||
|
Income tax provision (benefit)
|
14
|
|
|
138
|
|
|
(530
|
)
|
|
394
|
|
||||
|
Net Income
|
571
|
|
|
513
|
|
|
47
|
|
|
1,491
|
|
||||
|
Preferred stock dividend requirement
|
3
|
|
|
3
|
|
|
10
|
|
|
10
|
|
||||
|
Income Available for Common Stock
|
$
|
568
|
|
|
$
|
510
|
|
|
$
|
37
|
|
|
$
|
1,481
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||||||||||
|
|
(Unaudited)
|
||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Net Income
|
$
|
571
|
|
|
$
|
513
|
|
|
$
|
47
|
|
|
$
|
1,491
|
|
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
||||||||
|
Pension and other post-retirement benefit plans obligations (net of taxes of $0, $0, $0, and $0, at respective dates )
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
|
Total other comprehensive income
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
|
Comprehensive Income
|
$
|
571
|
|
|
$
|
513
|
|
|
$
|
48
|
|
|
$
|
1,492
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||||||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
|
September 30,
2018 |
|
December 31, 2017
|
||||
|
(in millions)
|
|
||||||
|
ASSETS
|
|
|
|
|
|
||
|
Current Assets
|
|
|
|
|
|
||
|
Cash and cash equivalents
|
$
|
371
|
|
|
$
|
447
|
|
|
Accounts receivable:
|
|
|
|
||||
|
Customers (net of allowance for doubtful accounts of $58 and $64
at respective dates)
|
1,297
|
|
|
1,243
|
|
||
|
Accrued unbilled revenue
|
962
|
|
|
946
|
|
||
|
Regulatory balancing accounts
|
1,326
|
|
|
1,222
|
|
||
|
Other
|
902
|
|
|
862
|
|
||
|
Regulatory assets
|
229
|
|
|
615
|
|
||
|
Inventories:
|
|
|
|
||||
|
Gas stored underground and fuel oil
|
116
|
|
|
115
|
|
||
|
Materials and supplies
|
389
|
|
|
366
|
|
||
|
Other
|
698
|
|
|
465
|
|
||
|
Total current assets
|
6,290
|
|
|
6,281
|
|
||
|
Property, Plant, and Equipment
|
|
|
|
||||
|
Electric
|
56,860
|
|
|
55,133
|
|
||
|
Gas
|
20,798
|
|
|
19,641
|
|
||
|
Construction work in progress
|
2,855
|
|
|
2,471
|
|
||
|
Total property, plant, and equipment
|
80,513
|
|
|
77,245
|
|
||
|
Accumulated depreciation
|
(24,308
|
)
|
|
(23,456
|
)
|
||
|
Net property, plant, and equipment
|
56,205
|
|
|
53,789
|
|
||
|
Other Noncurrent Assets
|
|
|
|
||||
|
Regulatory assets
|
4,429
|
|
|
3,793
|
|
||
|
Nuclear decommissioning trusts
|
2,917
|
|
|
2,863
|
|
||
|
Income taxes receivable
|
66
|
|
|
64
|
|
||
|
Other
|
1,289
|
|
|
1,094
|
|
||
|
Total other noncurrent assets
|
8,701
|
|
|
7,814
|
|
||
|
TOTAL ASSETS
|
$
|
71,196
|
|
|
$
|
67,884
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Balance At
|
||||||
|
|
September 30,
2018 |
|
December 31, 2017
|
||||
|
(in millions. except share amounts)
|
|
||||||
|
LIABILITIES AND EQUITY
|
|
|
|
||||
|
Current Liabilities
|
|
|
|
|
|
||
|
Short-term borrowings
|
$
|
750
|
|
|
$
|
799
|
|
|
Long-term debt, classified as current
|
193
|
|
|
445
|
|
||
|
Accounts payable:
|
|
|
|
||||
|
Trade creditors
|
1,699
|
|
|
1,644
|
|
||
|
Regulatory balancing accounts
|
1,230
|
|
|
1,120
|
|
||
|
Other
|
575
|
|
|
538
|
|
||
|
Disputed claims and customer refunds
|
217
|
|
|
243
|
|
||
|
Interest payable
|
149
|
|
|
214
|
|
||
|
Wildfire-related claims
|
2,794
|
|
|
561
|
|
||
|
Other
|
1,904
|
|
|
1,457
|
|
||
|
Total current liabilities
|
9,511
|
|
|
7,021
|
|
||
|
Noncurrent Liabilities
|
|
|
|
||||
|
Long-term debt
|
18,057
|
|
|
17,403
|
|
||
|
Regulatory liabilities
|
8,607
|
|
|
8,679
|
|
||
|
Pension and other post-retirement benefits
|
1,910
|
|
|
2,026
|
|
||
|
Asset retirement obligations
|
4,999
|
|
|
4,899
|
|
||
|
Deferred income taxes
|
5,960
|
|
|
5,963
|
|
||
|
Other
|
2,367
|
|
|
2,146
|
|
||
|
Total noncurrent liabilities
|
41,900
|
|
|
41,116
|
|
||
|
Contingencies and Commitments (Note 9)
|
|
|
|
|
|
||
|
Shareholders' Equity
|
|
|
|
||||
|
Preferred stock
|
258
|
|
|
258
|
|
||
|
Common stock, $5 par value, authorized 800,000,000 shares; 264,374,809 shares outstanding at respective dates
|
1,322
|
|
|
1,322
|
|
||
|
Additional paid-in capital
|
8,505
|
|
|
8,505
|
|
||
|
Reinvested earnings
|
9,695
|
|
|
9,656
|
|
||
|
Accumulated other comprehensive income
|
5
|
|
|
6
|
|
||
|
Total shareholders' equity
|
19,785
|
|
|
19,747
|
|
||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
71,196
|
|
|
$
|
67,884
|
|
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
(Unaudited)
|
||||||
|
|
Nine Months Ended September 30,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Cash Flows from Operating Activities
|
|
|
|
|
|
||
|
Net income
|
$
|
47
|
|
|
$
|
1,491
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
|
Depreciation, amortization, and decommissioning
|
2,257
|
|
|
2,134
|
|
||
|
Allowance for equity funds used during construction
|
(97
|
)
|
|
(63
|
)
|
||
|
Deferred income taxes and tax credits, net
|
5
|
|
|
848
|
|
||
|
Disallowed capital expenditures
|
(38
|
)
|
|
47
|
|
||
|
Other
|
170
|
|
|
196
|
|
||
|
Effect of changes in operating assets and liabilities:
|
|
|
|
||||
|
Accounts receivable
|
(200
|
)
|
|
(58
|
)
|
||
|
Wildfire-related insurance receivable
|
64
|
|
|
(166
|
)
|
||
|
Inventories
|
(24
|
)
|
|
(35
|
)
|
||
|
Accounts payable
|
245
|
|
|
76
|
|
||
|
Wildfire-related claims
|
2,233
|
|
|
12
|
|
||
|
Income taxes receivable/payable
|
—
|
|
|
135
|
|
||
|
Other current assets and liabilities
|
(156
|
)
|
|
36
|
|
||
|
Regulatory assets, liabilities, and balancing accounts, net
|
(128
|
)
|
|
(30
|
)
|
||
|
Other noncurrent assets and liabilities
|
(194
|
)
|
|
69
|
|
||
|
Net cash provided by operating activities
|
4,184
|
|
|
4,692
|
|
||
|
Cash Flows from Investing Activities
|
|
|
|
||||
|
Capital expenditures
|
(4,592
|
)
|
|
(3,938
|
)
|
||
|
Proceeds from sales and maturities of nuclear decommissioning trust investments
|
1,121
|
|
|
1,043
|
|
||
|
Purchases of nuclear decommissioning trust investments
|
(1,165
|
)
|
|
(1,071
|
)
|
||
|
Other
|
19
|
|
|
16
|
|
||
|
Net
cash used in investing activities
|
(4,617
|
)
|
|
(3,950
|
)
|
||
|
Cash Flows from Financing Activities
|
|
|
|
||||
|
Borrowings under revolving credit facilities
|
650
|
|
|
—
|
|
||
|
Repayments under revolving credit facilities
|
(650
|
)
|
|
—
|
|
||
|
Net issuances (repayments) of commercial paper, net of discount of $0 and $4 at respective dates
|
(50
|
)
|
|
(652
|
)
|
||
|
Short-term debt financing
|
250
|
|
|
250
|
|
||
|
Short-term debt matured
|
(250
|
)
|
|
(250
|
)
|
||
|
Proceeds from issuance of long-term debt, net of discount and issuance costs of $7 and $11 at respective dates
|
793
|
|
|
734
|
|
||
|
Long-term debt matured or repurchased
|
(400
|
)
|
|
(345
|
)
|
||
|
Preferred stock dividends paid
|
—
|
|
|
(10
|
)
|
||
|
Common stock dividends paid
|
—
|
|
|
(784
|
)
|
||
|
Equity contribution from PG&E Corporation
|
—
|
|
|
405
|
|
||
|
Other
|
14
|
|
|
(91
|
)
|
||
|
Net cash provided by (used in) financing activities
|
357
|
|
|
(743
|
)
|
||
|
Net change in cash and cash equivalents
|
(76
|
)
|
|
(1
|
)
|
||
|
Cash and
cash equivalents at January 1
|
447
|
|
|
71
|
|
||
|
Cash and cash equivalents at September 30
|
$
|
371
|
|
|
$
|
70
|
|
|
Supplemental disclosures of cash flow information
|
|
|
|
||||
|
Cash received (paid) for:
|
|
|
|
||||
|
Interest, net of amounts capitalized
|
$
|
(640
|
)
|
|
$
|
(636
|
)
|
|
Income taxes, net
|
(59
|
)
|
|
158
|
|
||
|
Supplemental disclosures of noncash investing and financing activities
|
|
|
|
||||
|
Capital expenditures financed through accounts payable
|
$
|
348
|
|
|
$
|
301
|
|
|
Terminated capital leases
|
161
|
|
|
—
|
|
||
|
|
|
|
|
||||
|
See accompanying Notes to the Condensed Consolidated Financial Statements.
|
|||||||
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
|
Three Months Ended September 30,
|
||||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Service cost for benefits earned
(1)
|
$
|
128
|
|
|
$
|
118
|
|
|
$
|
16
|
|
|
$
|
14
|
|
|
Interest cost
|
171
|
|
|
178
|
|
|
17
|
|
|
20
|
|
||||
|
Expected return on plan assets
|
(255
|
)
|
|
(193
|
)
|
|
(33
|
)
|
|
(24
|
)
|
||||
|
Amortization of prior service cost
|
(1
|
)
|
|
(1
|
)
|
|
4
|
|
|
4
|
|
||||
|
Amortization of net actuarial loss
|
1
|
|
|
6
|
|
|
(1
|
)
|
|
1
|
|
||||
|
Net periodic benefit cost
|
44
|
|
|
108
|
|
|
3
|
|
|
15
|
|
||||
|
Regulatory account transfer
(2)
|
41
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
||||
|
Total
|
$
|
85
|
|
|
$
|
85
|
|
|
$
|
3
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Service cost for benefits earned
(1)
|
$
|
385
|
|
|
$
|
354
|
|
|
$
|
49
|
|
|
$
|
44
|
|
|
Interest cost
|
515
|
|
|
535
|
|
|
52
|
|
|
58
|
|
||||
|
Expected return on plan assets
|
(766
|
)
|
|
(578
|
)
|
|
(98
|
)
|
|
(73
|
)
|
||||
|
Amortization of prior service cost
|
(4
|
)
|
|
(5
|
)
|
|
11
|
|
|
12
|
|
||||
|
Amortization of net actuarial loss
|
4
|
|
|
17
|
|
|
(4
|
)
|
|
3
|
|
||||
|
Net periodic benefit cost
|
134
|
|
|
323
|
|
|
10
|
|
|
44
|
|
||||
|
Regulatory account transfer
(2)
|
118
|
|
|
(69
|
)
|
|
—
|
|
|
—
|
|
||||
|
Total
|
$
|
252
|
|
|
$
|
254
|
|
|
$
|
10
|
|
|
$
|
44
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Pension
Benefits |
|
Other
Benefits |
|
Total
|
||||||
|
(in millions, net of income tax)
|
Three Months Ended September 30, 2018
|
||||||||||
|
Beginning balance
|
$
|
(30
|
)
|
|
$
|
17
|
|
|
$
|
(13
|
)
|
|
Amounts reclassified from other comprehensive income:
|
|
|
|
|
|
||||||
|
Amortization of prior service cost (net of taxes of $0 and $1, respectively)
(1)
|
(1
|
)
|
|
3
|
|
|
2
|
|
|||
|
Amortization of net actuarial loss (net of taxes of $0 and $0, respectively)
(1)
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||
|
Regulatory account transfer (net of taxes of $0 and $1, respectively)
(1)
|
1
|
|
|
(2
|
)
|
|
(1
|
)
|
|||
|
Net current period other comprehensive gain (loss)
|
1
|
|
|
—
|
|
|
1
|
|
|||
|
Ending balance
|
$
|
(29
|
)
|
|
$
|
17
|
|
|
$
|
(12
|
)
|
|
|
|
|
|
|
|
||||||
|
|
Pension Benefits
|
|
Other
Benefits |
|
Total
|
||||||
|
(in millions, net of income tax)
|
Three Months Ended September 30, 2017
|
||||||||||
|
Beginning balance
|
$
|
(25
|
)
|
|
$
|
17
|
|
|
$
|
(8
|
)
|
|
Amounts reclassified from other comprehensive income:
(1)
|
|
|
|
|
|
||||||
|
Amortization of prior service cost (net of taxes of $0 and $2, respectively)
|
(1
|
)
|
|
2
|
|
|
1
|
|
|||
|
Amortization of net actuarial loss (net of taxes of $2 and $0, respectively)
|
4
|
|
|
1
|
|
|
5
|
|
|||
|
Regulatory account transfer (net of taxes of $2 and $2, respectively)
|
(3
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|||
|
Net current period other comprehensive gain (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
Ending balance
|
$
|
(25
|
)
|
|
$
|
17
|
|
|
$
|
(8
|
)
|
|
|
|
|
|
|
|
||||||
|
|
Pension Benefits
|
|
Other Benefits
|
|
Total
|
||||||
|
(in millions, net of income tax)
|
Nine Months Ended September 30, 2018
|
||||||||||
|
Beginning balance
|
$
|
(25
|
)
|
|
$
|
17
|
|
|
$
|
(8
|
)
|
|
Amounts reclassified from other comprehensive income:
|
|
|
|
|
|
||||||
|
Amortization of prior service cost (net of taxes of $1 and $3, respectively)
(1)
|
(3
|
)
|
|
8
|
|
|
5
|
|
|||
|
Amortization of net actuarial loss (net of taxes of $1 and $1, respectively)
(1)
|
3
|
|
|
(3
|
)
|
|
—
|
|
|||
|
Regulatory account transfer (net of taxes of $0 and $2, respectively)
(1)
|
1
|
|
|
(5
|
)
|
|
(4
|
)
|
|||
|
Reclassification of stranded income tax to retained earnings
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
|
Net current period other comprehensive gain (loss)
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
Ending balance
|
(29
|
)
|
|
17
|
|
|
(12
|
)
|
|||
|
|
|
|
|
|
|
||||||
|
|
Pension Benefits
|
|
Other Benefits
|
|
Total
|
||||||
|
(in millions, net of income tax)
|
Nine Months Ended September 30, 2017
|
||||||||||
|
Beginning balance
|
$
|
(25
|
)
|
|
$
|
16
|
|
|
$
|
(9
|
)
|
|
Amounts reclassified from other comprehensive income:
(1)
|
|
|
|
|
|
||||||
|
Amortization of prior service cost (net of taxes of $2 and $5, respectively)
|
(3
|
)
|
|
7
|
|
|
4
|
|
|||
|
Amortization of net actuarial loss (net of taxes of $7 and $1, respectively)
|
10
|
|
|
2
|
|
|
12
|
|
|||
|
Regulatory account transfer (net of taxes of $5 and $6, respectively)
|
(7
|
)
|
|
(8
|
)
|
|
(15
|
)
|
|||
|
Net current period other comprehensive gain (loss)
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Ending balance
|
(25
|
)
|
|
17
|
|
|
(8
|
)
|
|||
|
|
|
|
|
|
|
||||||
|
(in millions)
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||
|
Electric
|
|
|
|
||||
|
Revenue from contracts with customers
|
|
|
|
||||
|
Residential
|
$
|
1,649
|
|
|
$
|
4,023
|
|
|
Commercial
|
1,430
|
|
|
3,737
|
|
||
|
Industrial
|
448
|
|
|
1,126
|
|
||
|
Agricultural
|
523
|
|
|
966
|
|
||
|
Public street and highway lighting
|
18
|
|
|
55
|
|
||
|
Other
(1)
|
(273
|
)
|
|
(388
|
)
|
||
|
Total revenue from contracts with customers - electric
|
3,795
|
|
|
9,519
|
|
||
|
Regulatory balancing accounts
(2)
|
(328
|
)
|
|
211
|
|
||
|
Total electric operating revenue
|
$
|
3,467
|
|
|
$
|
9,730
|
|
|
|
|
|
|
||||
|
Natural gas
|
|
|
|
||||
|
Revenue from contracts with customers
|
|
|
|
||||
|
Residential
|
$
|
242
|
|
|
$
|
1,652
|
|
|
Commercial
|
87
|
|
|
402
|
|
||
|
Transportation service only
|
287
|
|
|
847
|
|
||
|
Other
(1)
|
30
|
|
|
(149
|
)
|
||
|
Total revenue from contracts with customers - gas
|
646
|
|
|
2,752
|
|
||
|
Regulatory balancing accounts
(2)
|
269
|
|
|
190
|
|
||
|
Total natural gas operating revenue
|
915
|
|
|
2,942
|
|
||
|
Total operating revenues
|
$
|
4,382
|
|
|
$
|
12,672
|
|
|
|
|
|
|
||||
|
|
Asset Balance at
|
||||||
|
(in millions)
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
Pension benefits
|
$
|
1,837
|
|
|
$
|
1,954
|
|
|
Environmental compliance costs
|
851
|
|
|
837
|
|
||
|
Utility retained generation
|
285
|
|
|
319
|
|
||
|
Price risk management
|
67
|
|
|
65
|
|
||
|
Unamortized loss, net of gain, on reacquired debt
|
80
|
|
|
79
|
|
||
|
Catastrophic event memorandum account
(1)
|
760
|
|
|
274
|
|
||
|
Wildfire expense memorandum account
(2)
|
77
|
|
|
—
|
|
||
|
Fire hazard prevention memorandum account
(3)
|
65
|
|
|
1
|
|
||
|
Other
|
407
|
|
|
264
|
|
||
|
Total long-term regulatory assets
|
$
|
4,429
|
|
|
$
|
3,793
|
|
|
|
|
|
|
||||
|
|
Liability Balance at
|
||||||
|
(in millions)
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
Cost of removal obligations
|
$
|
5,888
|
|
|
$
|
5,547
|
|
|
Deferred income taxes
|
437
|
|
|
1,021
|
|
||
|
Recoveries in excess of AROs
|
489
|
|
|
624
|
|
||
|
Public purpose programs
|
660
|
|
|
590
|
|
||
|
Other
|
1,133
|
|
|
897
|
|
||
|
Total long-term regulatory liabilities
|
$
|
8,607
|
|
|
$
|
8,679
|
|
|
|
Receivable Balance at
|
||||||
|
(in millions)
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
Electric distribution
|
$
|
31
|
|
|
$
|
—
|
|
|
Electric transmission
|
109
|
|
|
139
|
|
||
|
Gas distribution and transmission
|
624
|
|
|
486
|
|
||
|
Energy procurement
|
131
|
|
|
71
|
|
||
|
Public purpose programs
|
120
|
|
|
103
|
|
||
|
Other
|
311
|
|
|
423
|
|
||
|
Total regulatory balancing accounts receivable
|
$
|
1,326
|
|
|
$
|
1,222
|
|
|
|
Payable Balance at
|
||||||
|
(in millions)
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
Electric distribution
|
$
|
—
|
|
|
$
|
72
|
|
|
Electric transmission
|
132
|
|
|
120
|
|
||
|
Utility generation
|
70
|
|
|
14
|
|
||
|
Gas distribution and transmission
|
9
|
|
|
—
|
|
||
|
Energy procurement
|
69
|
|
|
149
|
|
||
|
Public purpose programs
|
588
|
|
|
452
|
|
||
|
Other
|
362
|
|
|
313
|
|
||
|
Total regulatory balancing accounts payable
|
$
|
1,230
|
|
|
$
|
1,120
|
|
|
(in millions)
|
Termination Date
|
|
Facility
Limit
|
|
Letters of
Credit
Outstanding
|
|
Borrowings
|
|
Facility
Availability
|
||||||||
|
PG&E Corporation
|
April 2022
|
|
$
|
300
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
Utility
|
April 2022
|
|
3,000
|
|
(2)
|
87
|
|
|
—
|
|
|
2,913
|
|
||||
|
Total revolving credit facilities
|
|
|
$
|
3,300
|
|
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
3,213
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
PG&E Corporation
|
|
Utility
|
||||
|
(in millions)
|
Total
Equity
|
|
Total
Shareholders' Equity
|
||||
|
Balance at December 31, 2017
|
$
|
19,472
|
|
|
$
|
19,747
|
|
|
Comprehensive income
|
33
|
|
|
48
|
|
||
|
Common stock issued
|
137
|
|
|
—
|
|
||
|
Share-based compensation
|
64
|
|
|
—
|
|
||
|
Preferred stock dividend requirement
|
—
|
|
|
(10
|
)
|
||
|
Preferred stock dividend requirement of subsidiary
|
(10
|
)
|
|
—
|
|
||
|
Balance at September 30, 2018
|
$
|
19,696
|
|
|
$
|
19,785
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
(in millions, except per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Income available for common shareholders
|
$
|
564
|
|
|
$
|
550
|
|
|
$
|
22
|
|
|
$
|
1,532
|
|
|
Weighted average common shares outstanding, basic
|
517
|
|
|
513
|
|
|
516
|
|
|
511
|
|
||||
|
Add incremental shares from assumed conversions:
|
|
|
|
|
|
|
|
||||||||
|
Employee share-based compensation
|
—
|
|
|
3
|
|
|
1
|
|
|
3
|
|
||||
|
Weighted average common shares outstanding, diluted
|
517
|
|
|
516
|
|
|
517
|
|
|
514
|
|
||||
|
Total earnings per common share, diluted
|
$
|
1.09
|
|
|
$
|
1.07
|
|
|
$
|
0.04
|
|
|
$
|
2.98
|
|
|
|
|
|
|
Contract Volume at
|
||||
|
Underlying Product
|
|
Instruments
|
|
September 30,
2018 |
|
December 31,
2017 |
||
|
Natural Gas
(1)
(MMBtus
(2)
)
|
|
Forwards, Futures and Swaps
|
|
250,021,802
|
|
|
228,768,745
|
|
|
|
|
Options
|
|
29,534,224
|
|
|
60,736,806
|
|
|
Electricity (Megawatt-hours)
|
|
Forwards, Futures and Swaps
|
|
3,939,691
|
|
|
2,872,013
|
|
|
|
|
Congestion Revenue Rights
(3)
|
|
316,451,690
|
|
|
312,272,177
|
|
|
|
|
|
|
|
|
|
||
|
|
Commodity Risk
|
||||||||||||||
|
(in millions)
|
Gross Derivative
Balance
|
|
Netting
|
|
Cash Collateral
|
|
Total
Derivative
Balance
|
||||||||
|
Current assets – other
|
$
|
34
|
|
|
$
|
(2
|
)
|
|
$
|
5
|
|
|
$
|
37
|
|
|
Other noncurrent assets – other
|
88
|
|
|
—
|
|
|
—
|
|
|
88
|
|
||||
|
Current liabilities – other
|
(39
|
)
|
|
2
|
|
|
12
|
|
|
(25
|
)
|
||||
|
Noncurrent liabilities – other
|
(67
|
)
|
|
—
|
|
|
4
|
|
|
(63
|
)
|
||||
|
Total commodity risk
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
37
|
|
|
|
Commodity Risk
|
||||||||||||||
|
(in millions)
|
Gross Derivative
Balance
|
|
Netting
|
|
Cash Collateral
|
|
Total Derivative
Balance
|
||||||||
|
Current assets – other
|
$
|
30
|
|
|
$
|
(3
|
)
|
|
$
|
10
|
|
|
$
|
37
|
|
|
Other noncurrent assets – other
|
103
|
|
|
(1
|
)
|
|
—
|
|
|
102
|
|
||||
|
Current liabilities – other
|
(47
|
)
|
|
3
|
|
|
13
|
|
|
(31
|
)
|
||||
|
Noncurrent liabilities – other
|
(66
|
)
|
|
1
|
|
|
8
|
|
|
(57
|
)
|
||||
|
Total commodity risk
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
51
|
|
|
•
|
Level 1 –
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
|
•
|
Level 2 –
Other inputs that are directly or indirectly observable in the marketplace.
|
|
•
|
Level 3 –
Unobservable inputs which are supported by little or no market activities.
|
|
|
Fair Value Measurements
|
||||||||||||||||||
|
|
September 30, 2018
|
||||||||||||||||||
|
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
(1)
|
|
Total
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
$
|
377
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
377
|
|
|||
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
|
Global equity securities
|
1,970
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,970
|
|
|||||
|
Fixed-income securities
|
738
|
|
|
631
|
|
|
—
|
|
|
—
|
|
|
1,369
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
|
Total nuclear decommissioning trusts
(2)
|
2,722
|
|
|
631
|
|
|
—
|
|
|
—
|
|
|
3,372
|
|
|||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
1
|
|
|
5
|
|
|
110
|
|
|
2
|
|
|
118
|
|
|||||
|
Gas
|
—
|
|
|
6
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|||||
|
Total price risk management instruments
|
1
|
|
|
11
|
|
|
110
|
|
|
3
|
|
|
125
|
|
|||||
|
Rabbi trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed-income securities
|
—
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|||||
|
Life insurance contracts
|
—
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|||||
|
Total rabbi trusts
|
—
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|||||
|
Long-term disability trust
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|||||
|
Total long-term disability trust
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|||||
|
TOTAL ASSETS
|
$
|
3,108
|
|
|
$
|
785
|
|
|
$
|
110
|
|
|
$
|
3
|
|
|
$
|
4,137
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
$
|
5
|
|
|
$
|
12
|
|
|
$
|
86
|
|
|
$
|
(17
|
)
|
|
$
|
86
|
|
|
Gas
|
—
|
|
|
3
|
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
|||||
|
TOTAL LIABILITIES
|
$
|
5
|
|
|
$
|
15
|
|
|
$
|
86
|
|
|
$
|
(18
|
)
|
|
$
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Fair Value Measurements
|
||||||||||||||||||
|
|
December 31, 2017
|
||||||||||||||||||
|
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
(1)
|
|
Total
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
$
|
385
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
385
|
|
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|||||
|
Global equity securities
|
1,967
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,967
|
|
|||||
|
Fixed-income securities
|
733
|
|
|
562
|
|
|
—
|
|
|
—
|
|
|
1,295
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
|
Total nuclear decommissioning trusts
(2)
|
2,723
|
|
|
562
|
|
|
—
|
|
|
—
|
|
|
3,303
|
|
|||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
—
|
|
|
3
|
|
|
129
|
|
|
6
|
|
|
138
|
|
|||||
|
Gas
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
Total price risk management instruments
|
—
|
|
|
4
|
|
|
129
|
|
|
6
|
|
|
139
|
|
|||||
|
Rabbi trusts
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fixed-income securities
|
—
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|||||
|
Life insurance contracts
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|||||
|
Total rabbi trusts
|
—
|
|
|
143
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|||||
|
Long-term disability trust
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term investments
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
|
Assets measured at NAV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|||||
|
Total long-term disability trust
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|||||
|
TOTAL ASSETS
|
$
|
3,116
|
|
|
$
|
709
|
|
|
$
|
129
|
|
|
$
|
6
|
|
|
$
|
4,145
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Price risk management instruments (Note 7)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electricity
|
$
|
10
|
|
|
$
|
15
|
|
|
$
|
87
|
|
|
$
|
(25
|
)
|
|
$
|
87
|
|
|
Gas
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
TOTAL LIABILITIES
|
$
|
10
|
|
|
$
|
16
|
|
|
$
|
87
|
|
|
$
|
(25
|
)
|
|
$
|
88
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Fair Value at
|
|
|
|
|
|
|
||||||
|
(in millions)
|
|
September 30, 2018
|
|
|
|
|
|
|
||||||
|
Fair Value Measurement
|
|
Assets
|
|
Liabilities
|
|
Valuation
Technique |
|
Unobservable
Input |
|
Range
(1)
|
||||
|
Congestion revenue rights
|
|
$
|
110
|
|
|
$
|
44
|
|
|
Market approach
|
|
CRR auction prices
|
|
$ (18.61) - 32.26
|
|
Power purchase agreements
|
|
$
|
—
|
|
|
$
|
42
|
|
|
Discounted cash flow
|
|
Forward prices
|
|
$ 19.81 - 38.80
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Fair Value at
|
|
|
|
|
|
|
||||||
|
(in millions)
|
|
December 31, 2017
|
|
|
|
|
|
|
||||||
|
Fair Value Measurement
|
|
Assets
|
|
Liabilities
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
(1)
|
||||
|
Congestion revenue rights
|
|
$
|
129
|
|
|
$
|
24
|
|
|
Market approach
|
|
CRR auction prices
|
|
$ (16.03) - 11.99
|
|
Power purchase agreements
|
|
$
|
—
|
|
|
$
|
63
|
|
|
Discounted cash flow
|
|
Forward prices
|
|
$ 18.81 - 38.80
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Price Risk Management Instruments
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Asset (liability) balance as of July 1
|
$
|
34
|
|
|
$
|
48
|
|
|
Net realized and unrealized gains:
|
|
|
|
||||
|
Included in regulatory assets and liabilities or balancing accounts
(1)
|
(10
|
)
|
|
—
|
|
||
|
Asset (liability) balance as of September 30
|
$
|
24
|
|
|
$
|
48
|
|
|
|
|
|
|
||||
|
|
Price Risk Management Instruments
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Asset (liability) balance as of January 1
|
$
|
42
|
|
|
$
|
55
|
|
|
Net realized and unrealized gains:
|
|
|
|
||||
|
Included in regulatory assets and liabilities or balancing accounts
(1)
|
(18
|
)
|
|
(7
|
)
|
||
|
Asset (liability) balance as of September 30
|
$
|
24
|
|
|
$
|
48
|
|
|
|
|
|
|
||||
|
|
At September 30, 2018
|
|
At December 31, 2017
|
||||||||||||
|
(in millions)
|
Carrying Amount
|
|
Level 2 Fair Value
|
|
Carrying Amount
|
|
Level 2 Fair Value
|
||||||||
|
PG&E Corporation
(1)
|
$
|
350
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
Utility
|
17,491
|
|
|
16,413
|
|
|
17,090
|
|
|
19,128
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
(in millions)
|
|
|
|
|
|
|
|
||||||||
|
As of September 30, 2018
|
Amortized
Cost |
|
Total
Unrealized Gains |
|
Total
Unrealized Losses |
|
Total Fair
Value |
||||||||
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
||||||||
|
Short-term investments
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
Global equity securities
|
478
|
|
|
1,513
|
|
|
(2
|
)
|
|
1,989
|
|
||||
|
Fixed-income securities
|
1,369
|
|
|
28
|
|
|
(28
|
)
|
|
1,369
|
|
||||
|
Total
(1)
|
$
|
1,861
|
|
|
$
|
1,541
|
|
|
$
|
(30
|
)
|
|
$
|
3,372
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
||||||||
|
Nuclear decommissioning trusts
|
|
|
|
|
|
|
|
||||||||
|
Short-term investments
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
Global equity securities
|
524
|
|
|
1,463
|
|
|
(2
|
)
|
|
1,985
|
|
||||
|
Fixed-income securities
|
1,252
|
|
|
51
|
|
|
(8
|
)
|
|
1,295
|
|
||||
|
Total
(1)
|
$
|
1,799
|
|
|
$
|
1,514
|
|
|
$
|
(10
|
)
|
|
$
|
3,303
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of
|
||
|
(in millions)
|
September 30, 2018
|
||
|
Less than 1 year
|
$
|
69
|
|
|
1–5 years
|
401
|
|
|
|
5–10 years
|
386
|
|
|
|
More than 10 years
|
513
|
|
|
|
Total maturities of fixed-income securities
|
$
|
1,369
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Proceeds from sales and maturities of nuclear decommissioning trust investments
|
$
|
319
|
|
|
$
|
249
|
|
|
$
|
1,121
|
|
|
$
|
1,043
|
|
|
Gross realized gains on securities
|
3
|
|
|
8
|
|
|
51
|
|
|
50
|
|
||||
|
Gross realized losses on securities
|
(5
|
)
|
|
—
|
|
|
(14
|
)
|
|
(8
|
)
|
||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Butte fire
|
|
|
|
|
|
|
|
||||||||
|
Third-Party Claims
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
350
|
|
|
Insurance recoveries
|
—
|
|
|
(297
|
)
|
|
(7
|
)
|
|
(350
|
)
|
||||
|
Total Butte fire
|
—
|
|
|
53
|
|
|
(7
|
)
|
|
—
|
|
||||
|
Northern California wildfires
|
|
|
|
|
|
|
|
||||||||
|
Third-Party Claims
|
—
|
|
|
—
|
|
|
2,500
|
|
|
—
|
|
||||
|
Insurance recoveries
|
(10
|
)
|
|
—
|
|
|
(385
|
)
|
|
—
|
|
||||
|
Total Northern California wildfires
|
(10
|
)
|
|
—
|
|
|
2,115
|
|
|
—
|
|
||||
|
Total wildfire-related claims, net of insurance recoveries
|
$
|
(10
|
)
|
|
$
|
53
|
|
|
$
|
2,108
|
|
|
$
|
—
|
|
|
|
Balance At
|
||||||
|
(in millions)
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
Butte fire
|
$
|
294
|
|
|
$
|
561
|
|
|
Northern California wildfires
|
2,500
|
|
|
—
|
|
||
|
Total wildfire-related claims
|
$
|
2,794
|
|
|
$
|
561
|
|
|
Insurance Receivable (in millions)
|
|
||
|
Accrued insurance recoveries
|
$
|
385
|
|
|
Reimbursements
|
(13
|
)
|
|
|
Balance at September 30, 2018
|
$
|
372
|
|
|
Loss Accrual (in millions)
|
|
||
|
Balance at December 31, 2015
|
$
|
—
|
|
|
Accrued losses
|
750
|
|
|
|
Payments
(1)
|
(60
|
)
|
|
|
Balance at December 31, 2016
|
690
|
|
|
|
Accrued losses
|
350
|
|
|
|
Payments
(1)
|
(479
|
)
|
|
|
Balance at December 31, 2017
|
561
|
|
|
|
Accrued losses
|
—
|
|
|
|
Payments
(1)
|
(267
|
)
|
|
|
Balance at September 30, 2018
|
$
|
294
|
|
|
|
|
||
|
Insurance Receivable (in millions)
|
|
||
|
Balance at December 31, 2015
|
$
|
—
|
|
|
Accrued insurance recoveries
|
625
|
|
|
|
Reimbursements
|
(50)
|
|
|
|
Balance at December 31, 2016
|
575
|
|
|
|
Accrued insurance recoveries
|
297
|
|
|
|
Reimbursements
|
(276)
|
|
|
|
Balance at December 31, 2017
|
596
|
|
|
|
Accrued insurance recoveries
|
—
|
|
|
|
Reimbursements
|
(436
|
)
|
|
|
Balance at September 30, 2018
|
$
|
160
|
|
|
|
Balance at
|
||||||
|
|
September 30,
|
|
December 31,
|
||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Topock natural gas compressor station
|
$
|
362
|
|
|
$
|
334
|
|
|
Hinkley natural gas compressor station
|
151
|
|
|
147
|
|
||
|
Former manufactured gas plant sites owned by the Utility or third parties
(1)
|
375
|
|
|
320
|
|
||
|
Utility-owned generation facilities (other than fossil fuel-fired),
other facilities, and third-party disposal sites (2) |
116
|
|
|
115
|
|
||
|
Fossil fuel-fired generation facilities and sites
(3)
|
136
|
|
|
123
|
|
||
|
Total environmental remediation liability
|
$
|
1,140
|
|
|
$
|
1,039
|
|
|
|
|
|
|
||||
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||||||||||||||||
|
|
Earnings
|
|
Earnings per Common Share (Diluted)
|
|
Earnings
|
|
Earnings per Common Share (Diluted)
|
||||||||||||||||||||||||
|
(in millions, except per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
|
PG&E Corporation’s Earnings on a GAAP basis
|
$
|
564
|
|
|
$
|
550
|
|
|
$
|
1.09
|
|
|
$
|
1.07
|
|
|
$
|
22
|
|
|
$
|
1,532
|
|
|
$
|
0.04
|
|
|
$
|
2.98
|
|
|
Items Impacting Comparability:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Northern California wildfire-related costs, net of insurance
(2)
|
31
|
|
|
—
|
|
|
0.06
|
|
|
—
|
|
|
1,639
|
|
|
—
|
|
|
3.17
|
|
|
—
|
|
||||||||
|
Pipeline-related expenses
(3)
|
9
|
|
|
12
|
|
|
0.02
|
|
|
0.02
|
|
|
25
|
|
|
45
|
|
|
0.05
|
|
|
0.09
|
|
||||||||
|
Butte fire-related costs, net of insurance
(4)
|
6
|
|
|
42
|
|
|
0.01
|
|
|
0.08
|
|
|
17
|
|
|
27
|
|
|
0.03
|
|
|
0.05
|
|
||||||||
|
Reduction in gas-related capital disallowances
(5)
|
(27
|
)
|
|
—
|
|
|
(0.05
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(0.05
|
)
|
|
—
|
|
||||||||
|
2017 insurance premiums cost recoveries
(6)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(0.05
|
)
|
|
—
|
|
||||||||
|
Fines and penalties
(7)
|
—
|
|
|
11
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
0.09
|
|
||||||||
|
Diablo Canyon settlement-related disallowance
(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
0.06
|
|
||||||||
|
Legal and regulatory-related expenses
(9)
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
0.01
|
|
||||||||
|
GT&S revenue timing impact
(10)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
—
|
|
|
(0.17
|
)
|
||||||||
|
Net benefit from derivative litigation settlement
(11)
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(0.07
|
)
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(0.07
|
)
|
||||||||
|
PG&E Corporation’s Non- GAAP Earnings from Operations
(12)
|
$
|
582
|
|
|
$
|
578
|
|
|
$
|
1.13
|
|
|
$
|
1.12
|
|
|
$
|
1,652
|
|
|
$
|
1,562
|
|
|
$
|
3.19
|
|
|
$
|
3.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Third Quarter 2018 vs. 2017
|
|
Year to Date 2018 vs. 2017
|
||||||||||||
|
(in millions, except per share amounts)
|
Earnings
|
|
Earnings per Common Share (Diluted)
|
|
Earnings
|
|
Earnings per Common Share (Diluted)
|
||||||||
|
2017 Non- GAAP Earnings from Operations
(1)
|
$
|
578
|
|
|
$
|
1.12
|
|
|
$
|
1,562
|
|
|
$
|
3.04
|
|
|
Growth in rate base earnings
|
32
|
|
|
0.06
|
|
|
97
|
|
|
0.18
|
|
||||
|
Timing of taxes
(2)
|
12
|
|
|
0.02
|
|
|
13
|
|
|
0.02
|
|
||||
|
Insurance premium cost recoveries
(3)
|
6
|
|
|
0.01
|
|
|
33
|
|
|
0.06
|
|
||||
|
Resolution of regulatory items
(4)
|
—
|
|
|
—
|
|
|
29
|
|
|
0.06
|
|
||||
|
Timing and duration of nuclear refueling outages
|
—
|
|
|
—
|
|
|
12
|
|
|
0.02
|
|
||||
|
Timing of 2017 operational spend
(5)
|
(31
|
)
|
|
(0.06
|
)
|
|
(31
|
)
|
|
(0.06
|
)
|
||||
|
Decrease in authorized return on equity
(6)
|
(7
|
)
|
|
(0.01
|
)
|
|
(21
|
)
|
|
(0.03
|
)
|
||||
|
Tax impact of stock compensation
(7)
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
(0.08
|
)
|
||||
|
Increase in shares outstanding
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02
|
)
|
||||
|
Miscellaneous
|
(8
|
)
|
|
(0.01
|
)
|
|
2
|
|
|
—
|
|
||||
|
2018 Non-GAAP Earnings from Operations
(1)
|
$
|
582
|
|
|
$
|
1.13
|
|
|
$
|
1,652
|
|
|
$
|
3.19
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
•
|
The Impact of the Northern California Wildfires.
PG&E Corporation and the Utility face several uncertainties in connection with the Northern California wildfires, related to: the amount of additional possible loss related to third party claims (the Utility recorded a charge of $2.5 billion, which reflects the low end of the range of loss); recoverability of clean-up and repair costs (the Utility incurred costs of $308 million for clean-up and repair of the Utility’s facilities through September 30, 2018); fines or penalties, which could be material, if the CPUC or any law enforcement agency brought an enforcement action and determined that the Utility failed to comply with applicable laws and regulations; the applicability of the doctrine of inverse condemnation in the Northern California wildfires litigation, which the Utility continues challenging in courts; the recoverability of the above mentioned costs even if a court decision imposes liability under the doctrine of inverse condemnation, and the maximum amount that the CPUC is expected to determine, as a result of SB 901, that the Utility can pay without harming customers or materially impacting its ability to provide adequate and safe service. (See Notes 3 and 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1 and “Item 1A. Risk Factors” in the 2017 Form 10-K and in Part II below under “Item 1A. Risk Factors.”)
|
|
•
|
The Utility's Compliance with the CPUC Capital Structure
. The CPUC’s capital structure decisions require the Utility to maintain a 52% equity ratio on average over the period that the authorized capital structure is in place, and to file an application for a waiver to the capital structure condition if an adverse financial event reduces its equity ratio below 51%. The capital structure condition waiver would be subject to CPUC approval. The net charges the Utility recorded in connection with the Northern California wildfires to date, and described herein, did not result in noncompliance by the Utility with its authorized capital structure. However, in the future, maintaining compliance with the Utility’s authorized capital structure may require PG&E Corporation to issue a significant amount of equity, depending on the timing and amount of any claims payments and whether additional charges are recorded. If the Utility submits an application to the CPUC for a waiver to its capital structure condition, the Utility shall not be considered in violation of the condition during the period the waiver application is pending resolution.
|
|
•
|
The Timing and Outcome of Ratemaking Proceedings
. The Utility’s financial results may be impacted by the timing and outcome of its 2019 GT&S rate case, 2020 GRC, FERC TO18, TO19, and TO20 rate cases, future cost of capital proceedings, as well as the remand decision by the Ninth Circuit regarding an ROE incentive adder for transmission facilities, and its ability to timely recover costs not in rates already incurred and to be incurred in the future, including those tracked in its 2018 CEMA filing, WEMA and FHPMA, and insurance premiums in excess of the Utility’s currently authorized revenue requirements. The outcome of regulatory proceedings can be affected by many factors, including intervening parties’ testimonies, potential rate impacts, the Utility’s reputation, the regulatory and political environments, and other factors. (See Notes 3 and 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1 and “Regulatory Matters” below.)
|
|
•
|
The Amount and Timing of the Utility's Financing Needs.
PG&E Corporation’s and the Utility’s ability to access the capital markets, ability to borrow under their loan financing arrangements, and the terms and rates of future financings could be materially affected by the outcome of, or market perception of, the matters discussed in Note 9 of the Notes to the Condensed Consolidated Financial Statements. PG&E Corporation contributes equity to the Utility as needed to maintain the Utility’s CPUC-authorized capital structure. For the nine months ended September 30, 2018, PG&E Corporation issued $137 million of common stock and made no equity contributions to the Utility. PG&E Corporation may seek to issue additional equity to pay claims, losses, fines, and penalties that may be required by the outcome of litigation and enforcement matters. Additional issuances of equity, if any, could have a material dilutive impact on PG&E Corporation’s EPS.
|
|
•
|
The Outcome of Enforcement, Litigation, and Regulatory Matters.
The Utility’s financial results may continue to be impacted by the outcome of current and future enforcement, litigation, and regulatory matters, including the impact of the Butte fire, the safety culture OII and any related fines, penalties, or other ratemaking tools that could be imposed by the CPUC, including the outcome of phase two of the ex parte OII, the potential recommendations that the third-party monitor (retained by the Utility in the first quarter of 2017 as part of its compliance with the sentencing terms of the Utility’s January 27, 2017 federal criminal conviction) may make, and potential penalties in connection with the Utility’s safety and other self-reports. (See Note 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1.)
|
|
•
|
The Changes in the Utility Industry.
The Utility is committed to delivering safe, reliable, sustainable, and affordable electric and gas services to its customers. Increasing demands from state laws and policies relating to increased renewable energy resources, the reduction of GHG emissions, the expansion of energy efficiency goals, the development and widespread deployment of distributed generation and self-generation resources, and the development of energy storage technologies have increased pressure on the Utility to achieve efficiencies in its operations while continuing to provide customers with safe, reliable, and affordable service. (See “Other Regulatory Proceedings” below.)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Consolidated Total
|
$
|
564
|
|
|
$
|
550
|
|
|
$
|
22
|
|
|
$
|
1,532
|
|
|
PG&E Corporation
|
(4
|
)
|
|
40
|
|
|
(15
|
)
|
|
51
|
|
||||
|
Utility
|
$
|
568
|
|
|
$
|
510
|
|
|
$
|
37
|
|
|
$
|
1,481
|
|
|
|
Three Months Ended September 30, 2018
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||
|
|
Revenues/Costs:
|
|
Revenues/Costs:
|
||||||||||||||||||||
|
(in millions)
|
That Impacted Earnings
|
|
That Did Not Impact Earnings
|
|
Total Utility
|
|
That Impacted Earnings
|
|
That Did Not Impact Earnings
|
|
Total Utility
|
||||||||||||
|
Electric operating revenues
|
$
|
1,996
|
|
|
$
|
1,471
|
|
|
$
|
3,467
|
|
|
$
|
2,002
|
|
|
$
|
1,645
|
|
|
$
|
3,647
|
|
|
Natural gas operating revenues
|
778
|
|
|
137
|
|
|
915
|
|
|
722
|
|
|
147
|
|
|
869
|
|
||||||
|
Total operating revenues
|
2,774
|
|
|
1,608
|
|
|
4,382
|
|
|
2,724
|
|
|
1,792
|
|
|
4,516
|
|
||||||
|
Cost of electricity
|
—
|
|
|
1,256
|
|
|
1,256
|
|
|
—
|
|
|
1,466
|
|
|
1,466
|
|
||||||
|
Cost of natural gas
|
—
|
|
|
69
|
|
|
69
|
|
|
—
|
|
|
78
|
|
|
78
|
|
||||||
|
Operating and maintenance
|
1,247
|
|
|
364
|
|
|
1,611
|
|
|
1,127
|
|
|
262
|
|
|
1,389
|
|
||||||
|
Wildfire-related claims, net of insurance recoveries
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|
53
|
|
|
—
|
|
|
53
|
|
||||||
|
Depreciation, amortization, and decommissioning
|
759
|
|
|
—
|
|
|
759
|
|
|
710
|
|
|
—
|
|
|
710
|
|
||||||
|
Total operating expenses
|
1,996
|
|
|
1,689
|
|
|
3,685
|
|
|
1,890
|
|
|
1,806
|
|
|
3,696
|
|
||||||
|
Operating income (loss)
|
778
|
|
|
(81
|
)
|
|
697
|
|
|
834
|
|
|
(14
|
)
|
|
820
|
|
||||||
|
Interest income
|
14
|
|
|
—
|
|
|
14
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||
|
Interest expense
|
(229
|
)
|
|
—
|
|
|
(229
|
)
|
|
(217
|
)
|
|
—
|
|
|
(217
|
)
|
||||||
|
Other income, net
|
22
|
|
|
81
|
|
|
103
|
|
|
24
|
|
|
14
|
|
|
38
|
|
||||||
|
Income before income taxes
|
$
|
585
|
|
|
$
|
—
|
|
|
$
|
585
|
|
|
$
|
651
|
|
|
$
|
—
|
|
|
$
|
651
|
|
|
Income tax provision
(1)
|
|
|
|
|
14
|
|
|
|
|
|
|
138
|
|
||||||||||
|
Net income
|
|
|
|
|
571
|
|
|
|
|
|
|
513
|
|
||||||||||
|
Preferred stock dividend requirement
(1)
|
|
|
|
|
3
|
|
|
|
|
|
|
3
|
|
||||||||||
|
Income Available for Common Stock
|
|
|
|
|
$
|
568
|
|
|
|
|
|
|
$
|
510
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Nine Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||
|
|
Revenues/Costs:
|
|
Revenues/Costs:
|
||||||||||||||||||||
|
(in millions)
|
That Impacted Earnings
|
|
That Did Not Impact Earnings
|
|
Total Utility
|
|
That Impacted Earnings
|
|
That Did Not Impact Earnings
|
|
Total Utility
|
||||||||||||
|
Electric operating revenues
|
$
|
5,911
|
|
|
$
|
3,819
|
|
|
$
|
9,730
|
|
|
$
|
5,933
|
|
|
$
|
4,105
|
|
|
$
|
10,038
|
|
|
Natural gas operating revenues
|
2,268
|
|
|
674
|
|
|
2,942
|
|
|
2,261
|
|
|
738
|
|
|
2,999
|
|
||||||
|
Total operating revenues
|
8,179
|
|
|
4,493
|
|
|
12,672
|
|
|
8,194
|
|
|
4,843
|
|
|
13,037
|
|
||||||
|
Cost of electricity
|
—
|
|
|
3,038
|
|
|
3,038
|
|
|
—
|
|
|
3,436
|
|
|
3,436
|
|
||||||
|
Cost of natural gas
|
—
|
|
|
437
|
|
|
437
|
|
|
—
|
|
|
524
|
|
|
524
|
|
||||||
|
Operating and maintenance
|
3,742
|
|
|
1,260
|
|
|
5,002
|
|
|
3,594
|
|
|
924
|
|
|
4,518
|
|
||||||
|
Wildfire-related claims, net of insurance recoveries
|
2,108
|
|
|
—
|
|
|
2,108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Depreciation, amortization, and decommissioning
|
2,257
|
|
|
—
|
|
|
2,257
|
|
|
2,134
|
|
|
—
|
|
|
2,134
|
|
||||||
|
Total operating expenses
|
8,107
|
|
|
4,735
|
|
|
12,842
|
|
|
5,728
|
|
|
4,884
|
|
|
10,612
|
|
||||||
|
Operating income (loss)
|
72
|
|
|
(242
|
)
|
|
(170
|
)
|
|
2,466
|
|
|
(41
|
)
|
|
2,425
|
|
||||||
|
Interest income
|
34
|
|
|
—
|
|
|
34
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||||
|
Interest expense
|
(668
|
)
|
|
—
|
|
|
(668
|
)
|
|
(655
|
)
|
|
—
|
|
|
(655
|
)
|
||||||
|
Other income, net
|
79
|
|
|
242
|
|
|
321
|
|
|
52
|
|
|
41
|
|
|
93
|
|
||||||
|
Income (loss) before income taxes
|
$
|
(483
|
)
|
|
$
|
—
|
|
|
$
|
(483
|
)
|
|
$
|
1,885
|
|
|
$
|
—
|
|
|
$
|
1,885
|
|
|
Income tax provision (benefit)
(1)
|
|
|
|
|
(530
|
)
|
|
|
|
|
|
394
|
|
||||||||||
|
Net income
|
|
|
|
|
47
|
|
|
|
|
|
|
1,491
|
|
||||||||||
|
Preferred stock dividend requirement
(1)
|
|
|
|
|
10
|
|
|
|
|
|
|
10
|
|
||||||||||
|
Income Available for Common Stock
|
|
|
|
|
$
|
37
|
|
|
|
|
|
|
$
|
1,481
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
|
Federal statutory income tax rate
|
21.0
|
%
|
|
35.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
|
Increase (decrease) in income tax rate resulting from:
|
|
|
|
|
|
|
|
||||
|
State income tax (net of federal benefit)
(1)
|
2.1
|
%
|
|
2.6
|
%
|
|
22.8
|
%
|
|
2.4
|
%
|
|
Effect of regulatory treatment of fixed asset differences
(2)
|
(15.9
|
)%
|
|
(13.0
|
)%
|
|
56.4
|
%
|
|
(12.9
|
)%
|
|
Tax credits
|
(0.5
|
)%
|
|
(0.5
|
)%
|
|
1.9
|
%
|
|
(1.1
|
)%
|
|
Other, net
|
(4.2
|
)%
|
|
(2.9
|
)%
|
|
7.7
|
%
|
|
(2.5
|
)%
|
|
Effective tax rate
|
2.5
|
%
|
|
21.2
|
%
|
|
109.8
|
%
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Cost of purchased power
|
$
|
1,174
|
|
|
$
|
1,392
|
|
|
$
|
2,846
|
|
|
$
|
3,255
|
|
|
Fuel used in own generation facilities
|
82
|
|
|
74
|
|
|
192
|
|
|
181
|
|
||||
|
Total cost of electricity
|
$
|
1,256
|
|
|
$
|
1,466
|
|
|
$
|
3,038
|
|
|
$
|
3,436
|
|
|
Average cost of purchased power per kWh
(1)
|
$
|
0.252
|
|
|
$
|
0.151
|
|
|
$
|
0.157
|
|
|
$
|
0.126
|
|
|
Total purchased power (in millions of kWh)
(2)
|
4,658
|
|
|
9,189
|
|
|
18,101
|
|
|
25,905
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Cost of natural gas sold
|
$
|
45
|
|
|
$
|
50
|
|
|
$
|
355
|
|
|
$
|
436
|
|
|
Transportation cost of natural gas sold
|
24
|
|
|
28
|
|
|
82
|
|
|
88
|
|
||||
|
Total cost of natural gas
|
$
|
69
|
|
|
$
|
78
|
|
|
$
|
437
|
|
|
$
|
524
|
|
|
Average cost per Mcf
(1)
of natural gas sold
|
$
|
1.55
|
|
|
$
|
1.85
|
|
|
$
|
2.25
|
|
|
$
|
2.71
|
|
|
Total natural gas sold (in millions of Mcf)
|
29
|
|
|
27
|
|
|
158
|
|
|
161
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine Months Ended September 30,
|
||||||
|
(in millions)
|
2018
|
|
2017
|
||||
|
Net cash provided by operating activities
|
$
|
4,184
|
|
|
$
|
4,692
|
|
|
Net cash used in investing activities
|
(4,617
|
)
|
|
(3,950
|
)
|
||
|
Net cash provided by (used in) financing activities
|
357
|
|
|
(743
|
)
|
||
|
Net change in cash and cash equivalents
|
$
|
(76
|
)
|
|
$
|
(1
|
)
|
|
•
|
the timing and amount of costs in connection with the Northern California wildfires (and the timing and amount of related insurance recoveries), as well as additional potential liabilities in connection with third-party claims and fines or penalties that could be imposed on the Utility if the CPUC or any other law enforcement agency brought an enforcement action and determined that the Utility failed to comply with applicable laws and regulations;
|
|
•
|
the timing and amounts of costs, including fines and penalties, that may be incurred in connection with current and future enforcement, litigation, and regulatory matters (see "Enforcement and Litigation Matters" in Note 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1 and Part II, Item 1. Legal Proceedings for more information);
|
|
•
|
the timing and amount of premium payments related to wildfire insurance (see “Wildfire Insurance” in Note 9 of the Notes to the Condensed Consolidated Financial Statements in Item 1 for more information);
|
|
•
|
the Tax Act, which is expected to accelerate the timing of federal tax payments and reduce revenue requirements, resulting in lower operating cash flows (see “Overview” above and “Regulatory Matters” below for more information);
|
|
•
|
the timing and outcomes of the 2019 GT&S rate case, 2020 GRC, FERC TO18, TO19 and TO20 rate cases, 2018 CEMA filing, and other ratemaking and regulatory proceedings;
|
|
•
|
the timing and amount of substantially increasing costs in connection with fire hazard prevention work (see "Overview" above and "Regulatory Matters" below for more information); and
|
|
•
|
the timing of the resolution of the Chapter 11 disputed claims and the amount of principal and interest on these claims that the Utility will be required to pay.
|
|
•
|
deferred consideration of replacement resources to the CPUC’s Integrated Resource Planning proceeding;
|
|
•
|
authorized rate recovery for up to $211.3 million (compared with the $352.1 million requested by the Utility) for an employee retention program;
|
|
•
|
authorized rate recovery for an employee retraining program of $11.3 million requested by the Utility;
|
|
•
|
rejected rate recovery of the proposed $85 million for the community impacts mitigation program on the grounds that rate recovery for such a program requires legislative authorization;
|
|
•
|
authorized rate recovery of $18.6 million of the total Diablo Canyon license renewal cost of $53 million and rate recovery of cancelled project costs equal to 100% of direct costs incurred prior to June 30, 2016, and 25% of direct costs incurred after June 30, 2016, based on a settlement agreement among the Utility, the Joint Parties, and certain other parties that the Utility filed with the CPUC in May 2017; and
|
|
•
|
approved the amortization of the book value for Diablo Canyon consistent with the Diablo Canyon closure schedule.
|
|
•
|
approving the community impact mitigation settlement of $85 million, originally proposed in the joint settlement agreement;
|
|
•
|
deferring implementation to its Integrated Resource Planning to ensure that there is no increase in GHG emissions as a result of the Diablo Canyon retirement; and
|
|
•
|
approving full funding of the $352.1 million Diablo Canyon employee retention program, originally proposed in the joint settlement agreement.
|
|
•
|
imposing more restrictive forest management practices and providing support and incentives to facilitate that work;
|
|
•
|
providing factors that the CPUC should consider when it conducts a review of the reasonableness of costs and expenses arising from a catastrophic wildfire occurring on or after January 1, 2019;
|
|
•
|
in applications for cost recovery in connection with the 2017 wildfires, directing the CPUC to consider the electric corporation's financial status and determine the maximum amount a utility can pay without harming customers or materially impacting its ability to provide adequate and safe service, and ensuring that the costs or expenses that are disallowed for recovery in rates assessed for the wildfires, in the aggregate, do not exceed that amount;
|
|
•
|
authorizing the CPUC to issue a financing order that permits recovery, through issuance of recovery bonds (securitization), of wildfire-related costs found to be just and reasonable by the CPUC and, only for the 2017 wildfires, any amounts in excess of the maximum disallowance (see above). Securitization is available, for prudently incurred costs, for the 2017 wildfires and catastrophic wildfires occurring on or after January 1, 2019;
|
|
•
|
requiring electric corporations to prepare and submit to the CPUC a wildfire mitigation plan. Among other things, the plan will include a description of the preventive strategies and programs of electric corporations that are designed to minimize the risk of their electrical lines and equipment causing catastrophic wildfires and protocols related to plan activities. Failure to substantially comply with such plan will result in penalties. The CPUC will consider whether the cost of implementing the plan is just and reasonable in each electric corporation's GRC;
|
|
•
|
establishing a Commission on Catastrophic Wildfire Cost and Recovery to evaluate wildfire reforms, including inverse condemnation reform, a potential state wildfire insurance fund, and other wildfire mitigation measures; and
|
|
•
|
prohibiting an electric or gas corporation from recovering expenses for any annual salary, bonus, benefits, or other consideration of any value, paid to an officer of such utility from customers.
|
|
•
|
adopting benchmark values used to set the PCIA rate that more closely resemble actual market prices for resource adequacy and renewable energy credits;
|
|
•
|
allowing legacy utility-owned generation costs to be recovered from CCA customers;
|
|
•
|
eliminating the 10-year limit on PCIA cost recovery for post-2002 utility owned generation and certain storage costs; and
|
|
•
|
adding an annual true-up to the PCIA rate based on market sales for brown power, with further discussion in phase 2 of the PCIA proceeding regarding true-up of resource adequacy, and renewable energy credits.
|
|
•
|
how to define climate change adaption for the IOUs;
|
|
•
|
the climate-driven risks facing the IOUs;
|
|
•
|
data, tools, resources, and guidance to instruct utilities on how to incorporate adaption in their existing planning and operational processes; and
|
|
•
|
strategies to address climate change in CPUC proceedings, including impacts on disadvantaged communities.
|
|
•
|
the impact of the Northern California wildfires, including whether the Utility will be able to timely recover costs incurred in connection with the Northern California wildfires in excess of the Utility's currently authorized revenue requirements; the timing and outcome of the remaining wildfire investigations and the extent to which the Utility will have liability associated with these fires; the timing and amount of insurance recoveries; and potential liabilities in connection with fines or penalties that could be imposed on the Utility if the CPUC or any other law enforcement agency were to bring an enforcement action and determined that the Utility failed to comply with applicable laws and regulations;
|
|
•
|
the timing and outcome of the Butte fire litigation, the timing and outcome of any proceeding to recover costs in excess of insurance through rates; the effect, if any, that the SED’s $8.3 million citations issued in connection with the Butte fire may have on the Butte fire litigation; and whether additional investigations and proceedings in connection with the Butte fire will be opened and any additional fines or penalties imposed on the Utility;
|
|
•
|
whether PG&E Corporation and the Utility are able to successfully challenge the application of the doctrine of inverse condemnation to the Northern California wildfires and the Butte fire;
|
|
•
|
the timing and outcome of future regulatory and legislative developments in connection with SB 901, including the customer harm threshold in connection with the Northern California wildfires, future wildfire reforms, including inverse condemnation reform, a potential state wildfire insurance fund, and other wildfire mitigation measures;
|
|
•
|
the outcome of the Utility's community wildfire safety program that the Utility has developed in coordination with first responders, civic and community leaders, and customers, to help reduce wildfire threats and improve safety as a result of climate-driven wildfires and extreme weather; and the cost of the program, and the timing and outcome of any proceeding to recover such cost through rates;
|
|
•
|
the amount and timing of additional common stock and debt issuances by PG&E Corporation, including the dilutive impact of common stock issuances to fund PG&E Corporation's equity contributions to the Utility as the Utility incurs charges and costs, including fines, that it cannot recover through rates;
|
|
•
|
the timing and outcome of CPUC decision(s) related to the Utility’s March 2018 submissions to the CPUC and May 2018 submission to the FERC in connection with the impact of the Tax Act on the Utility’s rate cases and its implementation plan;
|
|
•
|
the timing and outcomes of the 2019 GT&S rate case, 2020 GRC, FERC TO18, TO19, and TO20 rate cases, 2018 CEMA, WEMA, FHPMA, future cost of capital proceeding, and other ratemaking and regulatory proceedings;
|
|
•
|
the outcome of the probation and the monitorship imposed by the federal court after the Utility’s conviction in the federal criminal trial in 2017, the timing and outcomes of the debarment proceeding, potential reliability penalties or sanctions from the North American Electric Reliability Corporation, the SED’s unresolved enforcement matters relating to the Utility’s compliance with natural gas-related laws and regulations, and other investigations that have been or may be commenced relating to the Utility’s compliance with natural gas- and electric- related laws and regulations, ex parte communications, and the ultimate amount of fines, penalties, and remedial costs that the Utility may incur in connection with the outcomes;
|
|
•
|
the effects on PG&E Corporation and the Utility’s reputations caused by the CPUC's investigations of natural gas and electric incidents, the Northern California wildfires, improper communications between the CPUC and the Utility, and the Utility’s ongoing work to remove encroachments from transmission pipeline rights-of-way;
|
|
•
|
the outcome of the safety culture OII, including its phase two PD issued on October 25, 2018, and future legislative or regulatory actions that may be taken, such as requiring the Utility to separate its electric and natural gas businesses, or restructure into separate entities, or undertake some other corporate restructuring, or implement corporate governance changes;
|
|
•
|
whether the Utility can control its costs within the authorized levels of spending, and timely recover its costs through rates; whether the Utility can continue implementing a streamlined organizational structure and achieve project savings, the extent to which the Utility incurs unrecoverable costs that are higher than the forecasts of such costs; and changes in cost forecasts or the scope and timing of planned work resulting from changes in customer demand for electricity and natural gas or other reasons;
|
|
•
|
whether the Utility and its third-party vendors and contractors are able to protect the Utility’s operational networks and information technology systems from cyber- and physical attacks, or other internal or external hazards;
|
|
•
|
the timing and outcome of the October 1, 2018 request for rehearing of FERC's denial of the complaint filed by the CPUC and certain other parties that the Utility provide an open and transparent planning process for its capital transmission projects that do not go through the CAISO’s Transmission Planning Process to allow for greater participation and input from interested parties; and the timing and ultimate outcome of the Ninth Circuit Court of Appeals decision on January 8, 2018, to reverse FERC’s decision granting the Utility a 50 basis point ROE incentive adder for continued participation in the CAISO and remanding the case to FERC for further proceedings;
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the outcome of current and future self-reports, investigations, or other enforcement proceedings that could be commenced or notices of violation that could be issued relating to the Utility’s compliance with laws, rules, regulations, or orders applicable to its operations, including the construction, expansion, or replacement of its electric and gas facilities, electric grid reliability, inspection and maintenance practices, customer billing and privacy, physical and cybersecurity, environmental laws and regulations; and the outcome of existing and future SED notices of violations;
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the timing and outcome of any CPUC action in connection with the Utility’s SmartMeter™ Upgrade cost-benefit analysis;
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the impact of environmental remediation laws, regulations, and orders; the ultimate amount of costs incurred to discharge the Utility’s known and unknown remediation obligations; and the extent to which the Utility is able to recover environmental costs in rates or from other sources;
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the impact of SB 100, which was signed into law on September 10, 2018, that increases the percentage from 50 percent to 60 percent of California’s electricity portfolio that must come from renewables by 2030; and the requirement that 100 percent of all retail electricity sales must come from RPS-eligible or carbon-free resources by 2045;
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how the CPUC and the California Air Resources Board implement state environmental laws relating to GHG, renewable energy targets, energy efficiency standards, DERs, EVs, and similar matters, including whether the Utility is able to continue recovering associated compliance costs, such as the cost of emission allowances and offsets under cap-and-trade regulations; and whether the Utility is able to timely recover its associated investment costs;
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the impact of the California governor's executive order issued on January 26, 2018, to implement a new target of five million zero-emission vehicles on the road in California by 2030;
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the ultimate amount of unrecoverable environmental costs the Utility incurs associated with the Utility’s natural gas compressor station site located near Hinkley, California and the Utility's fossil fuel-fired generation sites;
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the impact of new legislation or NRC regulations, recommendations, policies, decisions, or orders relating to the nuclear industry, including operations, seismic design, security, safety, relicensing, the storage of spent nuclear fuel, decommissioning, cooling water intake, or other issues; the impact of potential actions, such as legislation, taken by state agencies that may affect the Utility’s ability to continue operating Diablo Canyon until its planned retirement;
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the impact of wildfires, droughts, floods, or other weather-related conditions or events, climate change, natural disasters, acts of terrorism, war, vandalism (including cyber-attacks), downed power lines, and other events, that can cause unplanned outages, reduce generating output, disrupt the Utility’s service to customers, or damage or disrupt the facilities, operations, or information technology and systems owned by the Utility, its customers, or third parties on which the Utility relies, and the reparation and other costs that the Utility may incur in connection with such conditions or events; the impact of the adequacy of the Utility’s emergency preparedness; whether the Utility incurs liability to third parties for property damage or personal injury caused by such events; whether the Utility is subject to civil, criminal, or regulatory penalties in connection with such events; and whether the Utility’s insurance coverage is available for these types of claims and sufficient to cover the Utility’s liability;
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whether the Utility’s climate change adaptation strategies are successful;
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the breakdown or failure of equipment that can cause damages, including fires, and unplanned outages; and whether the Utility will be subject to investigations, penalties, and other costs in connection with such events;
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the impact that reductions in customer demand for electricity and natural gas have on the Utility’s ability to make and recover its investments through rates and earn its authorized return on equity, and whether the Utility is successful in addressing the impact of growing distributed and renewable generation resources, changing customer demand for natural gas and electric services, and an increasing number of customers departing the Utility’s procurement service for CCAs;
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the supply and price of electricity, natural gas, and nuclear fuel; the extent to which the Utility can manage and respond to the volatility of energy commodity prices; the ability of the Utility and its counterparties to post or return collateral in connection with price risk management activities; and whether the Utility is able to recover timely its electric generation and energy commodity costs through rates, including its renewable energy procurement costs;
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the amount and timing of charges reflecting probable liabilities for third-party claims; the extent to which costs incurred in connection with third-party claims or litigation can be recovered through insurance, rates, or from other third parties; and whether the Utility can continue to obtain adequate insurance coverage for future losses or claims, especially following a major event that causes widespread third-party losses;
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the ability of PG&E Corporation and the Utility to access capital markets and other sources of debt and equity financing in a timely manner on acceptable terms;
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changes in credit ratings which could, among other things, result in cash collateral postings, higher borrowing costs and fewer financing options, especially if PG&E Corporation or the Utility were to lose their investment grade credit ratings;
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the impact of the regulation of utilities and their holding companies, including how the CPUC interprets and enforces the financial and other conditions imposed on PG&E Corporation when it became the Utility’s holding company, and whether the uncertainty in connection with the Northern California wildfires, the ultimate outcomes of the CPUC’s pending investigations, and other enforcement matters will impact the Utility’s ability to make distributions to PG&E Corporation, and whether they will continue impacting PG&E Corporation's and the Utility's ability to pay dividends;
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the outcome of federal or state tax audits and the impact of any changes in federal or state tax laws, policies, regulations, or their interpretation;
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changes in the regulatory and economic environment, including potential changes affecting renewable energy sources and associated tax credits, as a result of the current federal administration; and
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•
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the impact of changes in GAAP, standards, rules, or policies, including those related to regulatory accounting, and the impact of changes in their interpretation or application.
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•
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the breakdown or failure of equipment, electric transmission or distribution lines, or natural gas transmission and distribution pipelines, that can cause explosions, fires, or other catastrophic events;
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•
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an overpressure event occurring on natural gas facilities due to equipment failure, incorrect operating procedures or failure to follow correct operating procedures, or welding or fabrication-related defects, that results in the failure of downstream transmission pipelines or distribution assets and uncontained natural gas flow;
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•
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the failure to maintain adequate capacity to meet customer demand on the gas system that results in customer curtailments, controlled/uncontrolled gas outages, gas surges back into homes, serious personal injury or loss of life;
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a prolonged statewide electrical black-out that results in damage to the Utility’s equipment or damage to property owned by customers or other third parties;
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the failure to fully identify, evaluate, and control workplace hazards that result in serious injury or loss of life for employees or the public, environmental damage, or reputational damage;
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the release of radioactive materials caused by a nuclear accident, seismic activity, natural disaster, or terrorist act;
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the failure of a large dam or other major hydroelectric facility, or the failure of one or more levees that protect land on which the Utility’s assets are built;
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the failure to take expeditious or sufficient action to mitigate operating conditions, facilities, or equipment, that the Utility has identified, or reasonably should have identified, as unsafe, which failure then leads to a catastrophic event (such as a wild land fire or natural gas explosion);
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•
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inadequate emergency preparedness plans and the failure to respond effectively to a catastrophic event that can lead to public or employee harm or extended outages;
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•
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operator or other human error;
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•
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an ineffective records management program that results in the failure to construct, operate and maintain
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•
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construction performed by third parties that damages the Utility’s underground or overhead facilities, including, for example, ground excavations or “dig-ins” that damage the Utility’s underground pipelines;
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•
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the release of hazardous or toxic substances into the air, water, or soil, including, for example, gas leaks from natural gas storage facilities; releases of greenhouse gases; flaking lead-based paint from the Utility’s facilities, and leaking or spilled insulating fluid from electrical equipment; and
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•
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attacks by third parties, including cyber-attacks, acts of terrorism, vandalism, or war.
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3.1
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4.1
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4.2
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4.3
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10.1
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*10.2
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*10.3
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*10.4
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31.1
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31.2
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**32.1
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**32.2
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101.INS
|
XBRL Instance Document
|
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101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
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101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
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101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
|
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101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
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101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
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PG&E CORPORATION
|
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|
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/s/ JASON P. WELLS
|
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Jason P. Wells
Senior Vice President and Chief Financial Officer
(duly authorized officer and principal financial officer)
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PACIFIC GAS AND ELECTRIC COMPANY
|
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|
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/s/ DAVID S. THOMASON
|
|
David S. Thomason
Vice President, Chief Financial Officer and Controller
(duly authorized officer and principal financial officer) |
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
Customers
| Customer name | Ticker |
|---|---|
| Exelon Corporation | EXC |
| The Williams Companies, Inc. | WMB |
| WEC Energy Group, Inc. | WEC |
| Xcel Energy Inc. | XEL |
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|