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FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
PG&E Corporation and the Utility measure their cash equivalents, trust assets, and price risk management instruments at fair value.  A three-tier fair value hierarchy is established that prioritizes the inputs to valuation methodologies used to measure fair value:

•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.

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Assets and liabilities measured at fair value on a recurring basis for PG&E Corporation and the Utility are summarized below.  Assets held in rabbi trusts are held by PG&E Corporation and not the Utility.
 Fair Value Measurements
 
 At September 30, 2022
(in millions)Level 1Level 2Level 3
Netting (1)
Total
Assets:     
Short-term investments$160 $— $— $— $160 
Fixed-income securities— 49 — — 49 
Nuclear decommissioning trusts
Short-term investments103 — — — 103 
Global equity securities1,690 — — — 1,690 
Fixed-income securities1,057 806 — — 1,863 
Assets measured at NAV— — — — 23 
Total nuclear decommissioning trusts (2)
2,850 806 — — 3,679 
Customer credit trust
Short-term investments7 — — — 7 
Global equity securities251 — — — 251 
Fixed-income securities180 436 — — 616 
Total customer credit trust
438 436 — — 874 
Price risk management instruments (Note 9)     
Electricity— 32 205 22 259 
Gas— 27 — 39 66 
Total price risk management instruments— 59 205 61 325 
Rabbi trusts     
Short-term investments25 — — — 25 
Global equity securities4 — — — 4 
Fixed-income securities— 68 — — 68 
Life insurance contracts— 66 — — 66 
Total rabbi trusts29 134 — — 163 
Long-term disability trust     
Short-term investments4 — — — 4 
Assets measured at NAV— — — — 111 
Total long-term disability trust4 — — — 115 
TOTAL ASSETS$3,481 $1,484 $205 $61 $5,365 
Liabilities:     
Price risk management instruments (Note 9)     
Electricity$— $20 $174 $(22)$172 
Gas— 12 — (2)10 
TOTAL LIABILITIES$— $32 $174 $(24)$182 
(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.
(2) Represents amount before deducting $530 million primarily related to deferred taxes on appreciation of investment value. 
 Fair Value Measurements
 December 31, 2021
(in millions)Level 1Level 2Level 3
Netting (1)
Total
Assets:     
Short-term investments$289 $— $— $— $289 
Nuclear decommissioning trusts
Short-term investments22 — — — 22 
Global equity securities2,504 — — — 2,504 
Fixed-income securities1,158 866 — — 2,024 
Assets measured at NAV— — — — 31 
Total nuclear decommissioning trusts (2)
3,684 866 — — 4,581 
Price risk management instruments (Note 9)    
Electricity— 9 214 6 229 
Gas— 4 — 137 141 
Total price risk management instruments— 13 214 143 370 
Rabbi trusts    
Fixed-income securities— 104 — — 104 
Life insurance contracts— 76 — — 76 
Total rabbi trusts— 180 — — 180 
Long-term disability trust    
Short-term investments6 — — — 6 
Assets measured at NAV— — — — 132 
Total long-term disability trust6 — — — 138 
TOTAL ASSETS$3,979 $1,059 $214 $143 $5,558 
Liabilities:    
Price risk management instruments (Note 9)    
Electricity— 11 248 (24)235 
Gas— 10 — (3)7 
TOTAL LIABILITIES$— $21 $248 $(27)$242 
(1) Includes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.
(2) Represents amount before deducting $783 million, primarily related to deferred taxes on appreciation of investment value.

Valuation Techniques

The following describes the valuation techniques used to measure the fair value of the assets and liabilities shown in the tables above.  There are no restrictions on the terms and conditions upon which the investments may be redeemed. There were no material transfers between any levels for the three and nine months ended September 30, 2022 and 2021.

Trust Assets

Assets Measured at Fair Value

In general, investments held in the trusts are exposed to various risks, such as interest rate, credit, and market volatility risks. Nuclear decommissioning trust assets, customer credit trust assets and other trust assets are composed primarily of equity and fixed-income securities and also include short-term investments that are money market funds classified as Level 1.

Global equity securities primarily include investments in common stock that are valued based on quoted prices in active markets and are classified as Level 1.
Fixed-income securities are primarily composed of U.S. government and agency securities, municipal securities, and other fixed-income securities, including corporate debt securities.  U.S. government and agency securities primarily consist of U.S. Treasury securities that are classified as Level 1 because the fair value is determined by observable market prices in active markets.  A market approach is generally used to estimate the fair value of fixed-income securities classified as Level 2 using evaluated pricing data such as broker quotes, for similar securities adjusted for observable differences.  Significant inputs used in the valuation model generally include benchmark yield curves and issuer spreads.  The external credit ratings, coupon rate, and maturity of each security are considered in the valuation model, as applicable.

Assets Measured at NAV Using Practical Expedient

Investments in the nuclear decommissioning trusts and the long-term disability trust that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy tables above.  The fair value amounts are included in the tables above in order to reconcile to the amounts presented in the Condensed Consolidated Balance Sheets.  These investments include commingled funds that are composed of equity securities traded publicly on exchanges as well as fixed-income securities that are composed primarily of U.S. government securities, credit securities and asset-backed securities.

Price Risk Management Instruments

Price risk management instruments include physical and financial derivative contracts, such as power purchase agreements, forwards, futures, swaps, options, and CRRs that are traded either on an exchange or over-the-counter. 

Power purchase agreements, forwards, and swaps are valued using a discounted cash flow model.  Exchange-traded futures that are valued using observable market forward prices for the underlying commodity are classified as Level 1.  Over-the-counter forwards and swaps that are identical to exchange-traded futures, or are valued using forward prices from broker quotes that are corroborated with market data are classified as Level 2.  Exchange-traded options are valued using observable market data and market-corroborated data and are classified as Level 2. 

Long-dated power purchase agreements that are valued using significant unobservable data are classified as Level 3. These Level 3 contracts are valued using either estimated basis adjustments from liquid trading points or techniques, including extrapolation from observable prices, when a contract term extends beyond a period for which market data is available.  The Utility utilizes models to derive pricing inputs for the valuation of the Utility’s Level 3 instruments using pricing inputs from brokers and historical data.

The Utility holds CRRs to hedge the financial risk of CAISO-imposed congestion charges in the day-ahead market.  Limited market data is available in the CAISO auction and between auction dates; therefore, the Utility utilizes historical prices to forecast forward prices. CRRs are classified as Level 3.

Level 3 Measurements and Uncertainty Analysis

Inputs used and the fair value of Level 3 instruments are reviewed period-over-period and compared with market conditions to determine reasonableness.

Significant increases or decreases in any of those inputs would result in a significantly higher or lower fair value, respectively.  All reasonable costs related to Level 3 instruments are expected to be recoverable through rates; therefore, there is no impact to net income resulting from changes in the fair value of these instruments.  See Note 9 above.
 Fair Value at   
(in millions)At September 30, 2022Valuation
Technique		Unobservable
Input		 
Fair Value MeasurementAssetsLiabilities
 Range (1)/Weighted-Average Price (2)
Congestion revenue rights$162 $78 Market approachCRR auction prices
$ (2,265.69) - 2,265.94 / 0.43
Power purchase agreements$43 $96 Discounted cash flowForward prices
$ (6.91) - 210.05 / 59.52
(1) Represents price per megawatt-hour.
(2) Unobservable inputs were weighted by the relative fair value of the instruments.
 Fair Value at   
(in millions)At December 31, 2021Valuation
Technique		Unobservable
Input		 
Fair Value MeasurementAssetsLiabilities
 Range (1)/Weighted-Average Price (2)
Congestion revenue rights$188 $93 Market approachCRR auction prices
$ (40.77) - 2,265.94 / 0.40
Power purchase agreements$26 $155 Discounted cash flowForward prices
$ (7.97) - 256.20 / 47.17
(1) Represents price per megawatt-hour.
(2) Unobservable inputs were weighted by the relative fair value of the instruments.

Level 3 Reconciliation

The following table presents the reconciliation for Level 3 price risk management instruments for the three and nine months ended September 30, 2022 and 2021, respectively:
 Price Risk Management Instruments
(in millions)20222021
Asset (Liability) balance as of July 1$11 $(18)
Net realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts (1)
20 (62)
Asset (Liability) balance as of September 30$31 $(80)
(1) The costs related to price risk management activities are recovered through rates. Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

 Price Risk Management Instruments
(in millions)20222021
Liability balance as of January 1$(34)$(72)
Net realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts (1)
65 (8)
Asset (Liability) balance as of September 30$31 $(80)
(1) The costs related to price risk management activities are recovered through rates. Accordingly, unrealized gains and losses are deferred in regulatory liabilities and assets and net income is not impacted.

Financial Instruments

PG&E Corporation and the Utility use the following methods and assumptions in estimating fair value for financial instruments: the fair values of cash, net accounts receivable, short-term borrowings, accounts payable, customer deposits, and the Utility’s variable rate pollution control bond loan agreements approximate their carrying values as of September 30, 2022 and December 31, 2021, as they are short-term in nature.

The carrying amount and fair value of PG&E Corporation’s and the Utility’s long-term debt instruments were as follows (the table below excludes financial instruments with carrying values that approximate their fair values):
 At September 30, 2022At December 31, 2021
(in millions)Carrying AmountLevel 2 Fair Value
Carrying Amount
Level 2 Fair Value
Debt (Note 5)    
PG&E Corporation
$4,616 $4,302 $4,619 $4,796 
Utility33,726 27,420 31,816 35,803 
Nuclear Decommissioning Trust Investments

The following table provides a summary of equity securities and available-for-sale debt securities:
(in millions)Amortized
Cost		Total
Unrealized
Gains		Total
Unrealized
Losses		Total Fair
Value
As of September 30, 2022    
Nuclear decommissioning trusts    
Short-term investments$103 $— $— $103 
Global equity securities427 1,314 (28)1,713 
Fixed-income securities2,014 8 (159)1,863 
Total (1)
$2,544 $1,322 $(187)$3,679 
As of December 31, 2021    
Nuclear decommissioning trusts    
Short-term investments$22 $— $— $22 
Global equity securities479 2,066 (10)2,535 
Fixed-income securities1,938 98 (12)2,024 
Total (1)
$2,439 $2,164 $(22)$4,581 
(1) Represents amounts before deducting $530 million and $783 million as of September 30, 2022 and December 31, 2021, respectively, primarily related to deferred taxes on appreciation of investment value.

The fair value of fixed-income securities by contractual maturity is as follows:
 As of
(in millions)September 30, 2022
Less than 1 year$19 
1–5 years619 
5–10 years411 
More than 10 years814 
Total maturities of fixed-income securities$1,863 

The following table provides a summary of activity for the fixed-income and equity securities:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2022202120222021
Proceeds from sales and maturities of nuclear decommissioning trust investments$766 $224 $2,135 $1,176 
Gross realized gains on securities21 21 158 150 
Gross realized losses on securities(40)(2)(105)(18)
Customer Credit Trust

The following table provides a summary of equity securities and available-for-sale debt securities:
(in millions)Amortized
Cost		Total
Unrealized
Gains		Total
Unrealized
Losses		Total Fair
Value
As of September 30, 2022    
Customer credit trust    
Short-term investments$7 $— $— $7 
Global equity securities284 2 (35)251 
Fixed-income securities639 — (23)616 
Total
$930 $2 $(58)$874 

The fair value of fixed-income securities by contractual maturity is as follows:
 As of
(in millions)September 30, 2022
Less than 1 year$— 
1–5 years169 
5–10 years162 
More than 10 years285 
Total maturities of fixed-income securities$616 

The following table provides a summary of activity for the fixed-income and equity securities:
2022
(in millions)Three Months Ended September 30,Nine Months Ended September 30,
Proceeds from sales and maturities of customer credit trust investments$79 $79 
Gross realized gains on securities8 8 
Gross realized losses on securities (1)
(18)(18)
(1) Includes $7 million of impaired debt securities which were written-down to their respective fair values during the three and nine months ended September 30, 2022.