Long-term regulatory assets are comprised of the following:


	Balance at December 31,				Recovery Period
(in millions)	2022		2021
Pension benefits (1)	$	120	$	708	Indefinitely
Environmental compliance costs	1,193		1,089		32 years
Utility retained generation (2)	86		133		4 years
Price risk management	177		216		17 years
Catastrophic event memorandum account (3)	1,085		1,119		1 - 3 years
Wildfire expense memorandum account (4)	439		347		TBD years
Fire hazard prevention memorandum account (5)	79		75		1 - 3 years
Fire risk mitigation memorandum account (6)	65		44		1 - 3 years
Wildfire mitigation plan memorandum account (7)	756		424		1 - 3 years
Deferred income taxes (8)	2,730		1,849		51 years
Insurance premium costs (9)	99		207		2 - 4 years
Wildfire mitigation balancing account (10)	327		273		1 - 3 years
Vegetation management balancing account (11)	2,276		1,411		1 - 3 years
COVID-19 pandemic protection memorandum accounts (12)	26		49		TBD years
Microgrid memorandum account (13)	213		163		1 - 3 years
Financing costs (14)	211		175		Various
SB 901 securitization (15)	5,378		—		30 years
AROs in excess of recoveries (16)	120		—		Various
Other	1,063		925		Various
Total long-term regulatory assets	$	16,443	$	9,207

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

(3) Includes costs of responding to catastrophic events that have been declared a disaster or state of emergency by competent federal or state authorities. As of December 31, 2022 and 2021, $44 million and $49 million in COVID-19 related costs were recorded to CEMA regulatory assets, respectively. Recovery of CEMA costs is subject to CPUC review and approval.

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

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

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

(10) Includes costs associated with certain wildfire mitigation activities for the period January 1, 2020 through December 31, 2022. Noncurrent balance represents costs above 115% of adopted revenue requirements, which are subject to CPUC review and approval.

(12) Includes costs associated with customer protections, including higher uncollectible costs related to the moratorium on electric and gas service disconnections program implementation costs, and higher accounts receivable financing costs for the period of March 4, 2020 to September 30, 2021. As of December 31, 2022, the Utility had recorded uncollectibles in the amount of $4 million for small business customers. The remaining $22 million is associated with program costs and higher accounts receivable financing costs. As of December 31, 2021, the Utility had recorded uncollectibles in the amount of $30 million for residential customers pending approval for recovery in the RUBA in addition to uncollectibles recorded for small business customers. The remaining $19 million is associated with program costs and higher accounts receivable financing costs. Recovery of CPPMA costs is subject to CPUC review and approval.

(14) Includes costs associated with long-term debt financing deemed recoverable under ASC 980 more than twelve months from the current date. These costs and their amortization period are reviewable and approved in the Utility’s cost of capital or other regulatory filings. Recovery periods vary because the balance consists of financing costs associated with debts that have different amortization periods depending on their maturity date.

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

(16) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are placed in nuclear decommissioning trusts. This regulatory asset also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 12 below. Recovery periods for this balance vary because the different sites and assets to which the ARO expenses are attributable have different recovery periods.

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

At December 31, 2022 and 2021, the Utility had current regulatory liabilities of $1.12 billion and $698 million, respectively. At December 31, 2022, current regulatory liabilities consisted primarily of unrealized gains associated with the change in fair value of price risk management instruments that meet the definition of a derivative. An increase in natural gas prices has affected both the Utility’s gas and electric price risk management instruments, resulting in a deferral of $604 million. For more information, see Note 11 below. Current regulatory liabilities are included within current liabilities-other in the Consolidated Balance Sheets.

Long-term regulatory liabilities are comprised of the following:


	Balance at December 31,
(in millions)	2022		2021
Cost of removal obligations (1)	$	7,773	$	7,306
Recoveries in excess of AROs (2)	—		388
Public purpose programs (3)	1,062		946
Employee benefit plans (4)	904		1,229
Transmission tower wireless licenses (5)	430		446
SFGO sale (6)	264		343
SB 901 securitization (7)	5,800		—
Other	1,397		1,341
Total long-term regulatory liabilities	$	17,630	$	11,999

(2) Represents the cumulative differences between ARO expenses and amounts collected in rates. Decommissioning costs related to the Utility’s nuclear facilities are recovered through rates and are held in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on these nuclear decommissioning trust investments. See Note 12 below.

(5) Represents the portion of the net proceeds received from the sale of transmission tower wireless licenses that will be returned to customers. Of the $430 million, $300 million will be refunded to FERC-jurisdictional customers, and $130 million will be refunded to CPUC-jurisdictional customers.

(7) In connection with the SB 901 securitization, the Utility is required to return up to $7.59 billion of certain shareholder tax benefits to customers via periodic bill credits over the life of the recovery bonds. The balance reflects qualifying shareholder tax benefits that PG&E Corporation is obligated to contribute to the customer credit trust, net of amortization since inception, and is expected to increase as additional qualifying amounts are recognized, including when the Fire Victim Trust sells additional shares. PG&E Corporation will continue to separately recognize tax benefits within income tax expense on the income statement. See Note 6 below.

The Utility tracks (1) differences between the Utility’s authorized revenue requirement and customer billings, and (2) differences between incurred costs and customer billings. To the extent these differences are probable of recovery or refund over the next 12 months, the Utility records a current regulatory balancing account receivable or payable. Regulatory balancing accounts that the Utility expects to collect or refund over a period exceeding 12 months are recorded as other noncurrent assets – regulatory assets or noncurrent liabilities – regulatory liabilities, respectively, in the Consolidated Balance Sheets. These differences do not have an impact on net income. Balancing accounts fluctuate during the year based on seasonal electric and gas usage and the timing of when costs are incurred and customer revenues are collected.

Current regulatory balancing accounts receivable and payable are comprised of the following:


	Receivable Balance at December 31,
(in millions)	2022		2021
Electric distribution (1)	$	448	$	—
Gas distribution and transmission (2)	72		—
Energy procurement (3)	684		310
Public purpose programs (4)	358		321
Fire hazard prevention memorandum account (5)	—		50
Fire risk mitigation memorandum account (6)	—		14
Wildfire mitigation plan memorandum account (7)	—		67
Wildfire mitigation balancing account (8)	2		91
General rate case memorandum accounts (9)	3		468
Vegetation management balancing account (10)	137		127
Insurance premium costs (11)	602		605
Wildfire expense memorandum account (12)	—		440
Residential uncollectibles balancing accounts (13)	126		127
Catastrophic event memorandum account	144		—
Other	688		379
Total regulatory balancing accounts receivable	$	3,264	$	2,999


	Payable Balance at December 31,
(in millions)	2022		2021
Electric distribution (1)	$	—	$	121
Electric transmission (14)	228		24
Gas distribution and transmission (2)	66		83
Energy procurement (3)	428		211
Public purpose programs (4)	272		259
Nuclear decommissioning adjustment mechanism (15)	8		137
SFGO sale	152		21
Other	504		265
Total regulatory balancing accounts payable	$	1,658	$	1,121

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

(5) The FHPMA tracks costs associated with the implementation of regulations and requirements adopted to protect the public from potential fire hazards. Interim rate relief associated with the 2020 WMCE application ceased in May 2022, fully exhausting the current balance of the memorandum accounts.

(6) The FRMMA tracks costs associated with the 2019 WMP for the period January 1, 2019 through June 4, 2019 and other incremental costs associated with fire risk mitigation. Interim rate relief associated with the 2020 WMCE application ceased in May 2022, fully exhausting the current balance of the memorandum accounts.

(7) The WMPMA tracks costs associated with the 2019 WMP for the period June 5, 2019 through December 31, 2019. Interim rate relief associated with the 2020 WMCE application ceased in May 2022, fully exhausting the current balance of the memorandum accounts.

(11) The insurance premium costs track the current portion of incremental excess liability insurance costs recorded to RTBA and adjustment mechanism for costs determined in other proceedings, as authorized in the 2020 GRC and 2019 GT&S rate cases, respectively. In addition to insurance premium costs recorded in Regulatory balancing accounts receivable and in Long-term regulatory assets above, at December 31, 2022, and 2021 there were $48 million and $82 million, respectively, in insurance premium costs recorded in Current regulatory assets.

(12) The WEMA balancing accounts track insurance premium costs paid by the Utility between July 26, 2017 through December 31, 2019 that are incremental to those authorized in the 2017 GRC. On October 21, 2021, the CPUC adopted a final decision approving a settlement agreement among the Utility and other active parties that authorized the Utility to recover $445.5 million over a 12-month period beginning January 1, 2022.