PG&E Corp (PCG) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that PG&E Corp surfaced in its latest filing.

• A hearing on the status of restitution in the Butte County District Attorney's Office's investigation into the 2018 Camp fire has been continued several times, most recently to April 24, 2026.April 24, 2026
• In December 2017, the CPUC denied recovery of costs that San Diego Gas & Electric Company stated it had incurred as a result of the doctrine of inverse condemnation, and legal challenges to that denial were unsuccessful.December 2017
• Recorded liability estimates for probable losses in connection with the 2019 Kincade fire, 2021 Dixie fire, and 2022 Mosquito fire.
• As of December 31, 2025, recorded probable recoveries of $632 million (Dixie fire) and $61 million (Mosquito fire) through FERC TO rates or WEMA costs.December 31, 2025
• The City and County of San Francisco has petitioned the CPUC for a valuation of the Utility's electric assets in or serving San Francisco.
• As of December 31, 2025, PG&E Corporation had approximately $5.7 billion of outstanding indebtedness, including $2.15 billion convertible senior secured notes due 2027, $1.5 billion Junior Subordinated Notes due 2055, $1.0 billion senior secured notes due 2028, and $1.0 billion senior secured notes due 2030.December 31, 2025
• The Utility had approximately $55.3 billion of outstanding indebtedness as of December 31, 2025.December 31, 2025
• The Inflation Reduction Act imposes a 15% corporate alternative minimum tax on corporations with average AFSI exceeding $1.0 billion over three years, effective for tax years beginning on or after January 1, 2023.January 1, 2023
• If the law or its interpretation does not permit PG&E Corporation to deduct repairs and maintenance expense, it will incur federal cash liabilities beginning in 2028.2028
• DCPP units are planned to retire in 2029 and 2030.
• The DOE Loan Guarantee Agreement contains covenants, events of default, and prepayment events incremental to those in the Utility's credit agreements and indentures.
• As of December 31, 2025, PG&E Corporation had net operating loss carryforwards of approximately $38.3 billion for U.S. federal income tax purposes and approximately $34.1 billion for California income tax purposes.December 31, 2025