PACIFIC GAS & ELECTRIC Co

The Utility generates electricity and provides electric transmission and distribution services throughout its service area in northern and central California to residential, commercial, industrial, and agricultural customers. The Utility provides electricity, transmission, and distribution services in its service area. Customers also can obtain electricity from alternative providers such as municipalities or CCAs, as well as from self-generation resources, such as rooftop solar installations. For more information, see “Competition” below.

Electricity Resources

The Utility is required to maintain adequate capacity to meet its customers’ demand for electricity (“load”), including peak demand and planning and operating reserves, deliverable to the locations and at times as may be necessary to provide reliable electric service. The Utility is responsible for scheduling and bidding electric generation resources, including certain electricity procured from third parties into the wholesale market, to meet customer demand.

In 2025, the Utility estimated total net deliveries of electricity to retail customers were 24,052 GWh. This amount represents the total amount of electricity generated and procured, net of electricity sold into the CAISO open market or to third parties. Utility-owned resources generated approximately 60% of its net delivered electricity.

Of the 2025 estimated total net deliveries of electricity to retail customers from generated and procured resources, approximately 71% was generated from GHG-free resources (34% qualifying renewable energy resources, 32% nuclear, and 5% large hydroelectric), and 29% was generated from natural gas generation resources. Consistent with the RPS requirement, the Utility considers qualifying renewable energy resources to include bioenergy such as biogas and biomass, hydroelectric facilities that are 30 MW or less, wind, solar, and geothermal energy. The Utility’s percentage of GHG-free generation decreased in 2025, compared to 2024, because DCPP’s generation became attributable to all customers statewide (rather than only the Utility’s customers). This change does not represent a decrease in the Utility’s ownership of the DCPP resource; rather, the generation associated with this resource became attributed among other LSEs’ portfolios. For more information about California’s clean energy goals, see further below and in the “Sustainability and Resiliency” section below.

The Utility calculates net deliveries of electricity according to the Power Content Label methodology based on CEC guidelines.

Owned Generation Facilities

As of December 31, 2025, the Utility owned the following generation facilities, all located in California, listed by energy source and further described below:

(1)DCPP consists of two nuclear power reactor units, Units 1 and 2. The NRC operating license for Unit 1 expired in 2024, and the operating license for Unit 2 expired in 2025. Both remain in effect pending completion of the ongoing federal relicensing review. For more information, see “Extension of Diablo Canyon Operations” in Item 7. MD&A below.

(2)The Utility’s hydroelectric system consists of 94 generating units at 58 powerhouses. All of the Utility’s powerhouses are licensed by the FERC (except for one small powerhouse not subject to the FERC’s licensing requirements), with license terms between 30 and 50 years.

(3)The Utility’s large photovoltaic facilities are Cantua solar station (20 MW), Five Points solar station (15 MW), Gates solar station (20 MW), Giffen solar station (10 MW), Guernsey solar station (20 MW), Huron solar station (20 MW), Stroud solar station (20 MW), West Gates solar station (10 MW), and Westside solar station (15 MW). All of these facilities are located in Fresno County, except for Guernsey solar station, which is located in Kings County.

Generation Resources from Third Parties

The Utility has entered into various agreements to purchase power and electric capacity, including agreements for renewable energy resources, in accordance with its CPUC-approved procurement plan. See “Ratemaking Mechanisms” above. For more information regarding the Utility’s power purchase agreements, see Note 15 of the Notes to the Consolidated Financial Statements in Item 8.

Energy Storage

Energy storage improves system reliability, supports California’s decarbonization goals by integrating increased levels of renewable energy, and assists in the event of customer demand growth. The CPUC has established a multi-year energy storage procurement framework, under which the Utility met its requirements to make 580 MW of qualifying storage capacity operational by 2025.

As of December 31, 2025, the Utility owned 183 MW and has contracted for another 3,024 MW of operational energy storage capacity. The Utility has also procured 1,884 MW of battery energy storage to be deployed over the next several years and is working to procure additional battery energy storage to meet its remaining reliability requirements. Separately, the Utility solicited and executed an agreement for long-duration storage, which is storage with at least eight hours of discharge capacity, in order to have this resource online by 2031. In September 2025 the CPUC also conditionally authorized the Utility to recover the costs, up to a cap, associated with increasing the nameplate generating capacity of its Helms Pumped Storage Facility.

Electricity Transmission

Transmission lines deliver electricity at high voltages and over long distances from power sources to transmission substations closer to customers. A strong transmission system supports reliable and affordable service, ability to meet state energy policy goals, and support for a diverse generation mix, including renewable energy.

As of December 31, 2025, the Utility owned approximately 18,000 circuit miles of interconnected transmission lines. The Utility also operated 33 electric transmission substations. The Utility’s electric transmission system is interconnected with electric power systems in the Western Electricity Coordinating Council, which includes many western states, the Canadian provinces of Alberta and British Columbia, and parts of Mexico.

Decisions about expansions and maintenance of the transmission system can be influenced by decisions of the Utility’s regulators and the CAISO.

Electricity Distribution

Distribution lines allow electricity to travel at lower voltages from substations directly to customers. The Utility’s electric distribution network consists of approximately 109,000 circuit miles of distribution lines (of which, as of December 31, 2025, approximately 27% are underground and approximately 73% are overhead), 59 transmission and distribution substations, and 601 distribution substations. The Utility’s distribution network interconnects with its transmission system, primarily at switching and distribution substations, where equipment reduces the high-voltage transmission voltages to lower voltages, suitable for distribution to the Utility’s customers.

These distribution substations serve as the central hubs for the Utility’s electric distribution network. Emanating from each substation are primary and secondary distribution lines connected to local transformers and switching equipment that link distribution lines and provide delivery to customers. In some cases, third parties, such as municipal and other utilities, who generate or procure their own power rely upon the Utility’s distribution facilities to deliver their power to them, so that they are able to resell the electricity.

Electricity Operating Statistics

The following table shows certain of the Utility’s operating statistics from 2023 through 2025 for electricity sold or delivered, including the classification of revenues by type of service. No single customer of the Utility accounted for 10% or more of consolidated revenues for electricity sold in 2025, 2024, or 2023.

(1)These amounts include electricity provided by DA providers and CCAs that procure their own supplies of electricity for their respective customers.

(2)This activity is primarily related to the change in unbilled revenue and amounts subject to refund, partially offset by other miscellaneous revenue items.

(3) These amounts represent revenues authorized to be billed.