v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
PG&E Corporation and the Utility measure their cash equivalents, self-insurance assets, 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 June 30, 2026
(in millions)Level 1Level 2Level 3
Netting (1)
Total
Assets:     
Short-term investments
$850 $— $— $— $850 
Self-insurance investments
   Short-term investments1,212 — — — 1,212 
Total Self-insurance investments (2)
1,212 — — — 1,212 
Nuclear decommissioning trusts
Short-term investments37 — — — 37 
Global equity securities2,553 — — — 2,553 
Fixed-income securities1,568 1,148 — — 2,716 
Assets measured at NAV— — — — 29 
Total nuclear decommissioning trusts (3)
4,158 1,148 — — 5,335 
Customer credit trust
Short-term investments24 — — — 24 
Global equity securities— — — — — 
Fixed-income securities157 372 — — 529 
Total customer credit trust
181 372 — — 553 
Price risk management instruments (Note 8)
     
Electricity— 29 222 7 258 
Gas— 14 — (9)5 
Total price risk management instruments— 43 222 (2)263 
Rabbi trusts     
Short-term investments118 — — — 118 
Global equity securities5 — — — 5 
Life insurance contracts— 65 — — 65 
Total rabbi trusts123 65 — — 188 
Long-term disability trust     
Short-term investments6 — — — 6 
Assets measured at NAV— — — — 113 
Total long-term disability trust6 — — — 119 
TOTAL ASSETS$6,530 $1,628 $222 $(2)$8,520 
Liabilities:     
Price risk management instruments (Note 8)
     
Electricity$— $29 $144 $(28)$145 
Gas— 3 — (2)1 
TOTAL LIABILITIES$— $32 $144 $(30)$146 
(1) Includes the effect of the contractual ability to settle contracts under master netting agreements.
(2) Includes approximately $1 billion and $144 million held in the entities for wildfire and non-wildfire self-insurance, respectively.
(3) Represents amount before deducting $904 million primarily related to deferred taxes on appreciation of investment value.
 Fair Value Measurements
 
At December 31, 2025
(in millions)Level 1Level 2Level 3
Netting (1)
Total
Assets:     
Short-term investments$634 $— $— $— $634 
Self-insurance investments
    Short-term investments1,120 — — — 1,120 
Total Self-insurance investments(2)
1,120 — — — 1,120 
Nuclear decommissioning trusts
Short-term investments94 — — — 94 
Global equity securities2,433 — — — 2,433 
Fixed-income securities1,445 1,113 — — 2,558 
Assets measured at NAV— — — — 26 
Total nuclear decommissioning trusts (3)
3,972 1,113 — — 5,111 
Customer credit trust
Short-term investments111 — — — 111 
Global equity securities— — — — 
Fixed-income securities367 326 — — 693 
Total customer credit trust
478 326 — — 804 
Price risk management instruments (Note 8)
    
Electricity— 19 283 (6)296 
Gas— 33 — (46)(13)
Total price risk management instruments— 52 283 (52)283 
Rabbi trusts    
Short-term investments115 — — — 115 
Global equity securities5 — — — 5 
Life insurance contracts— 65 — — 65 
Total rabbi trusts120 65 — — 185 
Long-term disability trust    
Short-term investments10 — — — 10 
Assets measured at NAV— — — — 127 
Total long-term disability trust10 — — — 137 
TOTAL ASSETS$6,334 $1,556 $283 $(52)$8,274 
Liabilities:    
Price risk management instruments (Note 8)
    
Electricity$— $80 $130 $(6)$204 
Gas— 65 — (46)19 
TOTAL LIABILITIES$— $145 $130 $(52)$223 
(1) Includes the effect of the contractual ability to settle contracts under master netting agreements.
(2) Includes approximately $1 billion and $77 million held in the entities for wildfire and non-wildfire self-insurance, respectively.
(3) Represents amount before deducting $881 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 six months ended June 30, 2026 or 2025.
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.

Self-insurance investments

Investments held in Pacific Energy Risk Solutions, LLC and Pacific Casualty Insurance Company, LLC primarily include short-term investments that are U.S. government securities classified as Level 1.
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 on net income resulting from changes in the fair value of these instruments.  See Note 8 above.
 Fair Value
(in millions)		   
At June 30, 2026Valuation
Technique		Unobservable
Input		 
Fair Value MeasurementAssetsLiabilities
 Range (1)/Weighted-Average Price (2)
Congestion revenue rights$192 $58 Market approachCRR auction prices
$ (75) - 75 / 2
Power purchase agreements$30 $86 Discounted cash flowForward prices
$ 10 - 101 / 52
(1) Represents price per MWh.
(2) Unobservable inputs were weighted by the relative fair value of the instruments.

 Fair Value
(in millions)		   
At December 31, 2025Valuation
Technique		Unobservable
Input		 
Fair Value MeasurementAssetsLiabilities
 Range (1)/Weighted-Average Price (2)
Congestion revenue rights$252 $83 Market approachCRR auction prices
$ (74) - 74 / 2
Power purchase agreements$31 $47 Discounted cash flowForward prices
$ 11 - 106 / 53
(1) Represents price per MWh.
(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 six months ended June 30, 2026 and 2025:
 Price Risk Management Instruments
(in millions)20262025
Asset balance as of April 1$92 $126 
Net realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts (1)
(14)10 
Asset balance as of June 30$78 $136 
(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)20262025
Asset balance as of January 1$153 $127 
Net realized and unrealized gains (losses):
Included in regulatory assets and liabilities or balancing accounts (1)
(75)9 
Asset balance as of June 30$78 $136 
(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, and customer deposits approximate their carrying values as of June 30, 2026 and December 31, 2025, 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 June 30, 2026
At December 31, 2025
(in millions)Carrying AmountLevel 2 Fair Value
Carrying Amount
Level 2 Fair Value
Debt (Note 4)    
PG&E Corporation (1)
$6,321 $6,707 $5,360 $5,697 
Utility43,594 40,558 38,145 35,565 
(1) As of June 30, 2026, the net carrying amount and the estimated fair value (Level 2) of the Convertible Notes were $2.15 billion and $2.2 billion, respectively.
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 June 30, 2026
    
Nuclear decommissioning trusts    
Short-term investments$6 $31 $— $37 
Global equity securities281 2,308 (7)2,582 
Fixed-income securities2,746 23 (53)2,716 
Total (1)
$3,033 $2,362 $(60)$5,335 
As of December 31, 2025    
Nuclear decommissioning trusts    
Short-term investments$94 $— $— $94 
Global equity securities324 2,140 (5)2,459 
Fixed-income securities2,557 48 (47)2,558 
Total (1)
$2,975 $2,188 $(52)$5,111 
(1) Represents amounts before deducting $904 million and $881 million as of June 30, 2026 and December 31, 2025, 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)June 30, 2026
Less than 1 year$119 
1–5 years869 
5–10 years597 
More than 10 years1,131 
Total maturities of fixed-income securities$2,716 
The following table provides a summary of activity for the fixed-income and equity securities:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Proceeds from sales and maturities of nuclear decommissioning trust investments$764 $501 $1,164 $779 
Gross realized gains on securities63 4 84 6 
Gross realized losses on securities(6)(11)(14)(17)
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 June 30, 2026
Customer credit trust
Short-term investments$24 $— $— $24 
Global equity securities— — — — 
Fixed-income securities531 1 (3)529 
Total
$555 $1 $(3)$553 
As of December 31, 2025    
Customer credit trust    
Short-term investments$111 $— $— $111 
Global equity securities— — — — 
Fixed-income securities689 5 (1)693 
Total
$800 $5 $(1)$804 
The fair value of fixed-income securities by contractual maturity is as follows:
 As of
(in millions)June 30, 2026
Less than 1 year$41 
1–5 years295 
5–10 years56 
More than 10 years137 
Total maturities of fixed-income securities$529 
The following table provides a summary of activity for the fixed-income and equity securities:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2026202520262025
Proceeds from sales and maturities of customer credit trust investments$167 $97 $283 $196 
Gross realized gains on securities— 2 55
Gross realized losses on securities
— (8)(3)(11)