PG&E Corporation

09/27/2021 | Press release | Distributed by Public on 09/27/2021 07:01

Material Event (Form 8-K)

Other Events.

On September 21, 2021, Pacific Gas and Electric Company (the "Utility"), a subsidiary of PG&E Corporation, together with the Public Advocates Office of the California Public Utilities Commission (the "CPUC") and the Federal Executive Agencies, filed a joint motion with the CPUC seeking approval of a settlement agreement (the "settlement agreement") that resolves all of the issues raised in the Utility's application for recovery of costs related to its Wildfire Mitigation and Catastrophic Events application (the "2020 WMCE application").

The settlement agreement proposes that the Utility recover a revenue requirement of $1.04 billion in connection with the 2020 WMCE application. The 2020 WMCE application requested a revenue requirement of $1.28 billion.

The table below summarizes the differences between the revenue requirements requested in the Utility's 2020 WMCE application, and the revenue requirement in the settlement agreement:

Revenue Requirement

Requested in 2020

WMCE Application

(in millions)

Revenue Requirement

Proposed in Settlement

Agreement

(in millions)

Difference (Decrease

from 2020 WMCE

Application)

(in millions)

Expense $ 1,185 $ 959 $ 226
Capital Expenditures $ 96 $ 79 $ 17
Total $ 1,281 $ 1,038 $ 243

The settlement agreement would authorize the Utility to continue to recover an interim revenue requirement of $447 million over a 17-month amortization period, which began in January 2021 and continues until May 2022, followed by an additional revenue requirement of $591 million over a 24-month amortization period, which will begin in June 2022.

For more information about the 2020 WMCE application, see PG&E Corporation and the Utility's joint quarterly report on Form 10-Q for the quarter ended June 30, 2021.

The Utility is unable to predict the outcome and timing of the CPUC's review of the settlement agreement.