On September 13, 2023, the assigned administrative law judges issued a proposed decision ("PD") and the assigned Commissioner issued an alternate proposed decision ("APD") in Pacific Gas and Electric Company's (the "Utility") 2023 general rate case ("GRC") Phase 1 Tracks 1 and 2 proceedings at the California Public Utilities Commission ("CPUC" or "Commission").

Track 1 Revenue Requirements and Attrition Year Revenues

If adopted, the PD would authorize a Track 1 revenue requirement of $13.82 billion, effective January 1, 2023. The PD also would approve Track 1 revenue requirements for 2024 through 2026 of $14.47 billion, $14.73 billion, and $14.85 billion, respectively. The APD would authorize a Track 1 revenue requirement of $13.31 billion, $14.02 billion, $14.32 billion, and $14.49 billion for 2023, 2024, 2025, and 2026, respectively (such period, the "GRC period"). The Utility would be authorized to collect in rates the approved revenue requirement increases beginning January 1, 2024 and to amortize the incremental revenue increases related to 2023 over the period of January 1, 2024 through December 31, 2026.

The following table compares the Track 1 revenue requirements that the PD and APD would authorize with the revenue requirement currently authorized for 2022 in the 2020 GRC and 2019 gas transmission and storage ("GT&S") proceedings and the revenue requirement requested in the Utility's application as amended and updated:

1 Request has been adjusted to exclude amounts related to self-insurance. On January 12, 2023, the CPUC approved a settlement agreement pursuant to which the Utility's wildfire liability insurance will be entirely based on self-insurance once all of the Utility's existing wildfire liability insurance policies expire, which occurred on August 1, 2023. The self-insurance will be funded through CPUC-jurisdictional rates at $400 million for test year 2023 and subsequent years until $1.0 billion of unimpaired self-insurance is reached. See PG&E Corporation's and the Utility's Quarterly Report on Form 10-Q for the period ended June 30, 2023 for more information about the revenue requirement for self-insurance.

2 Per the PD and APD, the Utility shall adjust the revenue requirements to reflect removal of certain costs pending reasonableness review as follows: for 2023, subtraction of $250 million; for 2024, subtraction of $239 million; for 2025, subtraction of $235 million; and for 2026, subtraction of $226 million.

The key differences between the PD and the APD relate to underground and overhead system hardening, and escalation.

The PD would authorize funding for 200 miles of undergrounding and 1,800 miles of covered conductor for the GRC period. The APD would authorize funding for 973 miles of undergrounding and 1,027 miles of covered conductor for the GRC period. The Utility most recently had requested 2,000 miles of undergrounding and 320 miles of covered conductor for the GRC period.