The Utility continues to focus on wildfire mitigation initiatives, including enhanced powerline safety settings, PSPS, vegetation management, asset inspections, and system hardening, which have reduced CPUC reportable ignitions and acres burned.

PG&E Corporation and the Utility are pursuing the potential sale of a minority interest in Pacific Generation, a newly formed, stand-alone Utility subsidiary.

The Utility is seeking financing through the Energy Infrastructure Reinvestment category of the DOE's Clean Energy Financing Program to help fund California's clean energy transition.

The Utility continues to implement the Lean operating system to improve planning and execution of work through increased efficiencies, including waste elimination.

PG&E Corporation and the Utility also work to minimize financing costs by identifying and executing on opportunities to efficiently finance the business, which depends on capital market conditions.

The Utility is subject to a number of legal and regulatory requirements related to its wildfire mitigation efforts, which require periodic inspections of electric assets and ongoing reporting related to this work. Although the Utility believes that it has complied substantially with these requirements, it continually reviews and has identified instances of noncompliance.

PG&E Corporation's and the Utility's financial condition, results of operations, liquidity, and cash flows may be materially affected by the costs and effectiveness of the Utility's wildfire mitigation initiatives; the extent of damages from wildfires that do occur; the financial impacts of wildfires; and PG&E Corporation's and the Utility's ability to mitigate those financial impacts with insurance, the Wildfire Fund, and regulatory recovery.

Regulatory ratemaking proceedings are a key aspect of the Utility's business and the outcome of regulatory proceedings can be affected by many factors, including intervening parties' testimonies, potential rate impacts, the regulatory and political environments, and other factors.

Under cost-of-service ratemaking, a utility's earnings depend on its ability to manage costs within the amounts authorized for recovery in its ratemaking proceedings.

The Utility faces competition from customer self-generation, customer departures to community choice aggregators, direct access providers, and government-owned utilities, and legislative mandates to reduce the use of natural gas.

The Utility is subject to substantial regulation by the CPUC, the FERC, the OEIS, the NRC, and other federal and state regulatory agencies.

Because the Utility's credit rating remains below investment grade, the Utility generally does not receive unsecured credit from its energy procurement counterparties and it may be required to increase its collateral postings if its credit rating is downgraded.

The Utility's Operating and maintenance expenses decreased by $43 million, or 2%, primarily due to the recognition of previously deferred expenses authorized in the final 2020 WMCE decision.

The Utility is also focused on undergrounding more lines each year while using economies of scale to make undergrounding more cost efficient.

The Utility plans to achieve cost savings by improving the planning and execution of its work through increased efficiencies, including waste elimination through the Lean operating system.

The Utility's wildfire mitigation initiatives include Enhanced Powerline Safety Settings (EPSS), which are designed to reduce the risk of wildfires caused by electrical equipment.

The Utility is also focused on system hardening, which includes undergrounding more lines each year while using economies of scale to make undergrounding more cost efficient.

The Utility will undertake an initiative to transition to electronic records for specified patrols and inspections of distribution facilities, at an approximate cost of $40 million over five years.

As of March 31, 2024, PG&E Corporation and the Utility had $500 million and $3.3 billion available under their respective revolving credit facilities. The Utility also has access to the Receivables Securitization Program.

On February 28, 2024, the Utility completed the sale of $2.25 billion aggregate principal amount of first mortgage bonds, which was used to repay borrowings under the Utility's revolving credit facility.

PG&E Corporation does not plan to issue any equity in 2024, except for employee compensation purposes. PG&E Corporation and the Utility are pursuing the potential sale of a minority interest in Pacific Generation.

The Utility is seeking financing through the Energy Infrastructure Reinvestment category of the DOE's Clean Energy Financing Program to help fund California's clean energy transition.

The Utility's wildfire safety programs and initiatives are focused on reducing the potential for catastrophic wildfires related to electrical equipment and reducing the customer impact of EPSS and PSPS events.

The Utility's operations are subject to extensive federal, state, and local laws and permits relating to the protection of the environment and the safety and health of the Utility's personnel and the public.

The Utility is subject to substantial regulation by the CPUC, the FERC, the OEIS, the NRC, and other federal and state regulatory agencies.

The Utility faces competition from customer self-generation, customer departures to community choice aggregators, direct access providers, and government-owned utilities, and legislative mandates to reduce the use of natural gas.

The Utility is impacted by severe weather events and other natural disasters, including wildfires and other fires, storms, tornadoes, floods, extreme heat events, drought, earthquakes, lightning, tsunamis, rising sea levels, mudslides, pandemics, solar events, electromagnetic events, wind events or other weather-related conditions, climate change, or natural disasters.