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PG&E CORP FILES (8-K) Disclosing Other Events

  • Sep 17, 2021 1:23 am GMT
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Source: 
Edgar Glimpses

Item 8.01 Other Events.

Wildfire Mitigation and Catastrophic Events Costs Recovery Application

On September 16, 2021, Pacific Gas and Electric Company (the "Utility"), a subsidiary of PG&E Corporation, filed an application with the California Public Utilities Commission (the "CPUC") requesting cost recovery of approximately $1.47 billion of recorded expenditures related to wildfire mitigation, certain catastrophic events, and a number of other activities (the "2021 WMCE application").

The recorded expenditures consist of $1.4 billion in expenses and $197 million in capital expenditures. The costs addressed in the 2021 WMCE application cover activities during the years 2015 to 2020 and are incremental to those previously authorized in the Utility's 2017 General Rate Case ("GRC"), 2020 GRC, and other proceedings. The Utility's proposed revenue requirement would be collected over a two-year period starting in January 2023, except for the Microgrids Memorandum Account capital revenue requirement, which would continue through 2026. The costs addressed in this application reflect costs to: (1) complete wildfire risk mitigation activities in accordance with the Utility's annual Wildfire Mitigation Plans; (2) respond to government-declared catastrophic events to repair damaged facilities, restore utility services, and protect the Utility's employees and customers; and (3) implement various customer-focused initiatives. The majority of such costs were incurred in 2020.

      The Utility recorded these costs to the memorandum and balancing accounts as set forth in the following table:                                                                     Revenue Requirement                                                                      $ in millions Vegetation Management Balancing Account (VMBA)                          $592 Catastrophic Event Memorandum Account (CEMA)                            $535 Wildfire Mitigation Balancing Account (WMBA)                            $149 Microgrids Memorandum Account (MGMA)                                    $138 California Consumer Privacy Act Memo Acct. (CCPAMA)                      $26 Transmission Revenue Requirement Reclassification Memorandum             $13 Account (TRRRMA) COVID-19 Pandemic Protections Memo Acct. (CPPMA)                         $8 Emergency Consumer Memo Acct. (ECMA)                                     $6 Disconnection Memo Acct. (DMA)                                           $1     

The requested revenue for CEMA costs reflected in the application include the Utility's costs incurred responding to various catastrophic events. These costs were incurred during the years 2015 to 2020 but primarily in 2020.

The Utility has proposed a schedule that would call for a final decision by the CPUC in September 2022. The Utility is unable to predict the outcome and timing of the application.

Cautionary Statement Concerning Forward-Looking Statements

This current report on Form 8-K contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and the Utility, including but not limited to the 2021 WMCE application. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include whether the CPUC grants this cost of capital application and the other factors disclosed in PG&E Corporation and the Utility's joint annual report on Form 10-K for the year ended December 31, 2020, their quarterly reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, and other reports filed with the Securities and Exchange Commission ("SEC"), which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC website at www.sec.gov. PG&E Corporation and the Utility undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.

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