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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The significant components of income tax provision (benefit) by taxing jurisdiction were as follows:
| PG&E Corporation |  | Utility
| Year Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |  |  |  |  |  |  |
Federal | $ | (1) |  |  | $ | (1) |  |  | $ | — |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | — |
State | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |
Deferred: |  |  |  |  |  |  |  |  |  |  |
Federal | (1,047) |  |  | (943) |  |  | 543 |  |  | (981) |  |  | (852) |  |  | 588 |
State | (507) |  |  | (389) |  |  | 296 |  |  | (477) |  |  | (348) |  |  | 316 |
Tax credits | (2) |  |  | (5) |  |  | (4) |  |  | (2) |  |  | (5) |  |  | (4) |
Income tax provision (benefit) | $ | (1,557) |  |  | $ | (1,338) |  |  | $ | 836 |  |  | $ | (1,461) |  |  | $ | (1,206) |  |  | $ | 900 |
Schedule of Deferred Tax Assets and Liabilities | The following tables describe net deferred income tax assets and liabilities:
| PG&E Corporation |  | Utility
| Year Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Deferred income tax assets: |  |  |  |  |  |  |
Tax carryforwards | $ | 9,132 |  |  | $ | 7,156 |  |  | $ | 8,740 |  |  | $ | 6,868 |
Compensation | 145 |  |  | 157 |  |  | 82 |  |  | 80 |
GHG allowance | 361 |  |  | 239 |  |  | 361 |  |  | 239 |
Wildfire-related claims (1) | 1,069 |  |  | 1,489 |  |  | 1,069 |  |  | 1,489 |
Operating lease liability | 142 |  |  | 368 |  |  | 142 |  |  | 368 |
Transmission tower wireless licenses | 250 |  |  | 254 |  |  | 250 |  |  | 254 |
Bad debt | 134 |  |  | 55 |  |  | 134 |  |  | 55 |
Other (2) | 130 |  |  | 142 |  |  | 109 |  |  | 122 |
Total deferred income tax assets | $ | 11,363 |  |  | $ | 9,860 |  |  | $ | 10,887 |  |  | $ | 9,475 |
Deferred income tax liabilities: |  |  |  |  |  |  |
Property-related basis differences | 10,058 |  |  | 9,374 |  |  | 10,047 |  |  | 9,363 |
Regulatory balancing accounts | 1,433 |  |  | 1,376 |  |  | 1,433 |  |  | 1,376 |
Debt financing costs | 428 |  |  | 465 |  |  | 428 |  |  | 465 |
Operating lease ROU asset | 142 |  |  | 368 |  |  | 142 |  |  | 368 |
Income tax regulatory asset (3) | 991 |  |  | 764 |  |  | 991 |  |  | 764 |
Environmental reserve | 200 |  |  | 163 |  |  | 200 |  |  | 163 |
Other (4) | 91 |  |  | 82 |  |  | 82 |  |  | 67 |
Total deferred income tax liabilities | $ | 13,343 |  |  | $ | 12,592 |  |  | $ | 13,323 |  |  | $ | 12,566 |
Total net deferred income tax liabilities | $ | 1,980 |  |  | $ | 2,732 |  |  | $ | 2,436 |  |  | $ | 3,091 |
(1) Amounts primarily relate to wildfire-related claims, net of estimated insurance recoveries, and legal and other costs related to various wildfires that have occurred in PG&E Corporation’s and the Utility’s service area over the past several years. (2) Amounts include benefits, state taxes, and customer advances for construction. (3) Represents the tax gross up portion of the deferred income tax for the cumulative differences between amounts recognized for ratemaking purposes and amounts recognized for tax, including the impact of changes in net deferred taxes associated with a lower federal income tax rate as a result of the TCJA. (4) Amounts primarily include property taxes and prepaid expense.
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles income tax expense at the federal statutory rate to the income tax provision:
| PG&E Corporation |  | Utility
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in income tax rate resulting from: |  |  |  |  |  |  |  |  |  |  |
State income tax (net of federal benefit) (1) | (57.9) |  |  | (75.8) |  |  | 31.3 |  |  | (34.4) |  |  | (26.9) |  |  | 24.1 |
Effect of regulatory treatment of fixed asset differences (2) | (63.4) |  |  | (123.8) |  |  | (71.5) |  |  | (40.1) |  |  | (49.2) |  |  | (51.6) |
Tax credits | (2.2) |  |  | (3.2) |  |  | (1.7) |  |  | (2.2) |  |  | (1.3) |  |  | (1.2) |
Fire Victim Trust (3) | (126.9) |  |  | (160.9) |  |  | 127.3 |  |  | (80.2) |  |  | (64.0) |  |  | 91.9 |
Other, net (4) | 2.2 |  |  | 12.9 |  |  | 5.3 |  |  | 1.1 |  |  | 2.2 |  |  | 2.6 |
Effective tax rate | (227.2) | % |  | (329.8) | % |  | 111.7 | % |  | (134.8) | % |  | (118.2) | % |  | 86.8 | %
(1) Includes the effect of state flow-through ratemaking treatment. (2) Includes the effect of federal flow-through ratemaking treatment for certain property-related costs. For these temporary tax differences, PG&E Corporation and the Utility recognize the deferred tax impact in the current period and record offsetting regulatory assets and liabilities. Therefore, PG&E Corporation’s and the Utility’s effective tax rates are impacted as these differences arise and reverse. PG&E Corporation and the Utility recognize such differences as regulatory assets or liabilities as it is probable that these amounts will be recovered from or returned to customers in future rates. In 2023, 2022, and 2021, the amounts also reflect the impact of the amortization of excess deferred tax benefits to be refunded to customers as a result of the TCJA passed in December 2017. (3) Includes an adjustment for the tax benefit of the sale of shares by the Fire Victim Trust in 2023 and 2022 and a DTA write-off associated with the grantor trust election for the Fire Victim Trust in 2021. (4) These amounts primarily represent the impact of tax audit settlements and non-tax deductible penalty costs.
Schedule of Change in Unrecognized Tax Benefits | The following table reconciles the changes in unrecognized tax benefits:
| PG&E Corporation |  | Utility
(in millions) | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 570 |  |  | $ | 498 |  |  | $ | 437 |  |  | $ | 570 |  |  | $ | 498 |  |  | $ | 437 |
Additions for tax position taken during a prior year | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |
Reductions for tax position taken during a prior year | — |  |  | (1) |  |  | (23) |  |  | — |  |  | (1) |  |  | (23) |
Additions for tax position taken during the current year | 45 |  |  | 73 |  |  | 85 |  |  | 45 |  |  | 73 |  |  | 85 |
Settlements | — |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | (1) |
Balance at end of year | $ | 616 |  |  | $ | 570 |  |  | $ | 498 |  |  | $ | 616 |  |  | $ | 570 |  |  | $ | 498 |
Schedule of Operating Loss and Tax Credit Carryforward Balances | The following table describes PG&E Corporation’s operating loss and tax credit carryforward balances:
(in millions) | December 31, 2023 |  | Expiration Year
Federal: |  |  |
Net operating loss carryforward - Pre-2018 | $ | 3,447 |  |  | 2031 - 2036
Net operating loss carryforward - Post-2017 | 29,403 |  |  | N/A
Tax credit carryforward | 175 |  |  | 2029 - 2041
State: |  |  |
Net operating loss carryforward | $ | 32,583 |  |  | 2039 - 2041
Tax credit carryforward | 137 |  |  | Various

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