PG&E CorpPCG
PG&E Corp Fair Value Disclosure
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 December 31, 2025 | |||||||||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
Short-term investments | $ | 634 | $ | — | $ | — | $ | — | $ | 634 | |||||||||||||||||||
| Fixed-income securities | — | — | — | — | — | ||||||||||||||||||||||||
Self-insurance investments | |||||||||||||||||||||||||||||
| Short-term investments | 1,120 | — | — | — | 1,120 | ||||||||||||||||||||||||
Total Self-insurance investments (2) | 1,120 | — | — | — | 1,120 | ||||||||||||||||||||||||
| Nuclear decommissioning trusts | |||||||||||||||||||||||||||||
| Short-term investments | 94 | — | — | — | 94 | ||||||||||||||||||||||||
| Global equity securities | 2,433 | — | — | — | 2,433 | ||||||||||||||||||||||||
| Fixed-income securities | 1,445 | 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 investments | 111 | — | — | — | 111 | ||||||||||||||||||||||||
| Global equity securities | — | — | — | — | — | ||||||||||||||||||||||||
| Fixed-income securities | 367 | 326 | — | — | 693 | ||||||||||||||||||||||||
Total customer credit trust | 478 | 326 | — | — | 804 | ||||||||||||||||||||||||
Price risk management instruments (Note 10) | |||||||||||||||||||||||||||||
| Electricity | — | 19 | 283 | (6) | 296 | ||||||||||||||||||||||||
| Gas | — | 33 | — | (46) | (13) | ||||||||||||||||||||||||
| Total price risk management instruments | — | 52 | 283 | (52) | 283 | ||||||||||||||||||||||||
| Rabbi trusts | |||||||||||||||||||||||||||||
| Short-term investments | 115 | — | — | — | 115 | ||||||||||||||||||||||||
| Global equity securities | 5 | — | — | — | 5 | ||||||||||||||||||||||||
| Life insurance contracts | — | 65 | — | — | 65 | ||||||||||||||||||||||||
| Total rabbi trusts | 120 | 65 | — | — | 185 | ||||||||||||||||||||||||
| Long-term disability trust | |||||||||||||||||||||||||||||
| Short-term investments | 10 | — | — | — | 10 | ||||||||||||||||||||||||
| Assets measured at NAV | — | — | — | — | 127 | ||||||||||||||||||||||||
| Total long-term disability trust | 10 | — | — | — | 137 | ||||||||||||||||||||||||
| TOTAL ASSETS | $ | 6,334 | $ | 1,556 | $ | 283 | $ | (52) | $ | 8,274 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
Price risk management instruments (Note 10) | |||||||||||||||||||||||||||||
| 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 $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.
| Fair Value Measurements | |||||||||||||||||||||||||||||
At December 31, 2024 | |||||||||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Short-term investments | $ | 826 | $ | — | $ | — | $ | — | $ | 826 | |||||||||||||||||||
Pacific Energy Risk Solutions, LLC | |||||||||||||||||||||||||||||
| Short-term investments | 905 | — | — | — | 905 | ||||||||||||||||||||||||
| Total Pacific Energy Risk Solutions, LLC | 905 | — | — | — | 905 | ||||||||||||||||||||||||
| Nuclear decommissioning trusts | |||||||||||||||||||||||||||||
| Short-term investments | 53 | — | — | — | 53 | ||||||||||||||||||||||||
| Global equity securities | 2,228 | — | — | — | 2,228 | ||||||||||||||||||||||||
| Fixed-income securities | 1,250 | 1,027 | — | — | 2,277 | ||||||||||||||||||||||||
| Assets measured at NAV | — | — | — | — | 22 | ||||||||||||||||||||||||
Total nuclear decommissioning trusts (2) | 3,531 | 1,027 | — | — | 4,580 | ||||||||||||||||||||||||
Customer credit trust | |||||||||||||||||||||||||||||
| Short-term investments | 1 | — | — | — | 1 | ||||||||||||||||||||||||
| Global equity securities | 186 | — | — | — | 186 | ||||||||||||||||||||||||
| Fixed-income securities | 46 | 144 | — | — | 190 | ||||||||||||||||||||||||
Total customer credit trust | 233 | 144 | — | — | 377 | ||||||||||||||||||||||||
Price risk management instruments (Note 10) | |||||||||||||||||||||||||||||
| Electricity | — | 26 | 383 | (6) | 403 | ||||||||||||||||||||||||
| Gas | — | 10 | — | (10) | — | ||||||||||||||||||||||||
| Total price risk management instruments | — | 36 | 383 | (16) | 403 | ||||||||||||||||||||||||
| Rabbi trusts | |||||||||||||||||||||||||||||
| Short-term investments | 107 | — | — | — | 107 | ||||||||||||||||||||||||
| Global equity securities | 6 | — | — | — | 6 | ||||||||||||||||||||||||
| Life insurance contracts | — | 66 | — | — | 66 | ||||||||||||||||||||||||
| Total rabbi trusts | 113 | 66 | — | — | 179 | ||||||||||||||||||||||||
| Long-term disability trust | |||||||||||||||||||||||||||||
| Short-term investments | 4 | — | — | — | 4 | ||||||||||||||||||||||||
| Assets measured at NAV | — | — | — | — | 130 | ||||||||||||||||||||||||
| Total long-term disability trust | 4 | — | — | — | 134 | ||||||||||||||||||||||||
| TOTAL ASSETS | $ | 5,612 | $ | 1,273 | $ | 383 | $ | (16) | $ | 7,404 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
Price risk management instruments (Note 10) | |||||||||||||||||||||||||||||
| Electricity | $ | — | $ | 37 | $ | 248 | $ | (6) | $ | 279 | |||||||||||||||||||
| Gas | — | 34 | — | (10) | 24 | ||||||||||||||||||||||||
| TOTAL LIABILITIES | $ | — | $ | 71 | $ | 248 | $ | (16) | $ | 303 | |||||||||||||||||||
(1) Includes the effect of the contractual ability to settle contracts under master netting agreements.
(2) Represents amount before deducting $747 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 years ended December 31, 2025 or 2024.
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 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 10 above.
| Fair Value (in millions) | ||||||||||||||||||||||||||||||||
| At December 31, 2025 | Valuation Technique | Unobservable Input | ||||||||||||||||||||||||||||||
| Fair Value Measurement | Assets | Liabilities | Range (1)/Weighted-Average Price (2) | |||||||||||||||||||||||||||||
| Congestion revenue rights | $ | 252 | $ | 83 | Market approach | CRR auction prices | $ (74) - 74 / 2 | |||||||||||||||||||||||||
| Power purchase agreements | $ | 31 | $ | 47 | Discounted cash flow | Forward prices | $ 11 - 106 / 53 | |||||||||||||||||||||||||
(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, 2024 | Valuation Technique | Unobservable Input | ||||||||||||||||||||||||||||||
| Fair Value Measurement | Assets | Liabilities | Range (1)/Weighted-Average Price (2) | |||||||||||||||||||||||||||||
| Congestion revenue rights | $ | 366 | $ | 121 | Market approach | CRR auction prices | $ (951) - 50,044 / 2 | |||||||||||||||||||||||||
| Power purchase agreements | $ | 17 | $ | 127 | Discounted cash flow | Forward prices | $ 0 - 126 / 47 | |||||||||||||||||||||||||
(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 years ended December 31, 2025 and 2024:
| Price Risk Management Instruments | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Asset balance as of January 1 | $ | 127 | $ | 191 | |||||||
| Net realized and unrealized gains (losses): | |||||||||||
Included in regulatory assets and liabilities or balancing accounts (1) | 26 | (64) | |||||||||
| Asset balance as of December 31 | $ | 153 | $ | 127 | |||||||
(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 December 31, 2025 and December 31, 2024, 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 December 31, 2025 | At December 31, 2024 | ||||||||||||||||||||||
| (in millions) | Carrying Amount | Level 2 Fair Value | Carrying Amount | Level 2 Fair Value | |||||||||||||||||||
| Debt (Note 4) | |||||||||||||||||||||||
PG&E Corporation (1) | $ | 5,360 | $ | 5,697 | $ | 5,358 | $ | 5,829 | |||||||||||||||
| Utility | 38,145 | 35,565 | 37,812 | 34,532 | |||||||||||||||||||
(1) As of December 31, 2025, the net carrying amount and the estimated fair value (Level 2) of the Convertible Notes were $2.1 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 December 31, 2025 | |||||||||||||||||||||||
| Nuclear decommissioning trusts | |||||||||||||||||||||||
| Short-term investments | $ | 94 | $ | — | $ | — | $ | 94 | |||||||||||||||
| Global equity securities | 324 | 2,140 | (5) | 2,459 | |||||||||||||||||||
| Fixed-income securities | 2,557 | 48 | (47) | 2,558 | |||||||||||||||||||
Total (1) | $ | 2,975 | $ | 2,188 | $ | (52) | $ | 5,111 | |||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||
| Nuclear decommissioning trusts | |||||||||||||||||||||||
| Short-term investments | $ | 54 | $ | — | $ | (1) | $ | 53 | |||||||||||||||
| Global equity securities | 353 | 1,907 | (10) | 2,250 | |||||||||||||||||||
| Fixed-income securities | 2,341 | 20 | (84) | 2,277 | |||||||||||||||||||
Total (1) | $ | 2,748 | $ | 1,927 | $ | (95) | $ | 4,580 | |||||||||||||||
(1) Represents amounts before deducting $881 million and $747 million as of December 31, 2025 and December 31, 2024, 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) | December 31, 2025 | ||||
| Less than 1 year | $ | 95 | |||
| 1–5 years | 822 | ||||
| 5–10 years | 564 | ||||
| More than 10 years | 1,077 | ||||
| Total maturities of fixed-income securities | $ | 2,558 | |||
The following table provides a summary of activity for the fixed-income and equity securities:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Proceeds from sales and maturities of nuclear decommissioning trust investments | $ | 1,952 | $ | 1,980 | $ | 2,235 | |||||||||||
| Gross realized gains on securities | 213 | 255 | 80 | ||||||||||||||
| Gross realized losses on securities | (25) | (63) | (74) | ||||||||||||||
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 December 31, 2025 | |||||||||||||||||||||||
| Customer credit trust | |||||||||||||||||||||||
| Short-term investments | $ | 111 | $ | — | $ | — | $ | 111 | |||||||||||||||
| Global equity securities | — | — | — | — | |||||||||||||||||||
| Fixed-income securities | 689 | 5 | (1) | 693 | |||||||||||||||||||
Total | $ | 800 | $ | 5 | $ | (1) | $ | 804 | |||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||
| Customer credit trust | |||||||||||||||||||||||
| Short-term investments | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||
| Global equity securities | 161 | 28 | (3) | 186 | |||||||||||||||||||
| Fixed-income securities | 193 | 1 | (4) | 190 | |||||||||||||||||||
Total | $ | 355 | $ | 29 | $ | (7) | $ | 377 | |||||||||||||||
The fair value of fixed-income securities by contractual maturity is as follows:
| As of | |||||
| (in millions) | December 31, 2025 | ||||
| Less than 1 year | $ | 290 | |||
| 1–5 years | 107 | ||||
| 5–10 years | 49 | ||||
| More than 10 years | 247 | ||||
| Total maturities of fixed-income securities | $ | 693 | |||
The following table provides a summary of activity for the fixed-income and equity securities:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Proceeds from sales and maturities of customer credit trust investments | $ | 435 | $ | 398 | $ | 556 | |||||||||||
| Gross realized gains on securities | 131 | 10 | $ | 23 | |||||||||||||
Gross realized losses on securities | (20) | (8) | $ | (19) | |||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 9, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 18, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.