PG&E Corp

Inflation Reduction Act

In 2022, the Inflation Reduction Act became law. The Inflation Reduction Act includes a 15% corporate alternative minimum tax on the adjusted financial statement income (“AFSI”) of corporations with average AFSI exceeding $1.0 billion over a three-year period, effective January 1, 2023. The law also extends and modifies existing tax credits and creates new tax credits for qualifying investments on renewable and clean energy sources and energy storage. The U.S. Department of the Treasury and the IRS have broad authority to issue and have issued regulations and guidance to implement its provisions. PG&E Corporation and the Utility continue to evaluate the totality of the law, the regulations issued in connection with it, and its impact on qualifying investments. As of December 31, 2023, the law did not have a material impact on the PG&E Corporation’s and the Utility’s Consolidated Financial Statements.

Revenue Procedure 2023-15

On April 14, 2023, the IRS issued Revenue Procedure 2023-15, which provides a safe harbor method for determining natural gas repairs deductions for income tax purposes. PG&E Corporation and the Utility are continuing to evaluate the impact of the revenue procedure.

Senate Bill 410

On October 7, 2023, SB 410 became law. SB 410 authorizes electrical corporations to request, and requires the CPUC to approve, a ratemaking mechanism to recover distribution line, substation capacity, and new business investments that exceed the GRC annual authorized revenue requirements, up to an annual cap. Amounts recorded to the related balancing account would be reviewed for reasonableness in the following GRC. See “Regulatory Matters - 2023 General Rate Case” above for more information.