FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2025

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

Market approach

CRR auction prices

$ (74) - 74 / 2

Power purchase agreements

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

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)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

PG&E Corp 10-K