PG&E (PCG) risk factors, FY2025 10-K

PG&E's FY2025 10-K, filed Feb 12, 2026, lists 29 risk factors in 5 groups. Against the prior year's 28: 8 new, 7 dropped, 13 substantially reworded.

Risk factors listed
295 groups
New this year
8vs 28 last year
Dropped
7since the prior 10-K
Substantially reworded
13of those kept
Section length
11k wordsItem 1A

What the changes say

  • Wildfire liabilities, regulatory scrutiny, and compliance costs continue to dominate PG&E's risk profile.

What changed since the prior 10-K

New

  • NewRisks Related to Regulatory Proceedings, Investigations, and Enforcement Matters

    An Enhanced Oversight and Enforcement Process proceeding could result in the Utility losing its license to operate as a utility

    An Enhanced Oversight and Enforcement Process proceeding could result in the Utility losing its license to operate.

  • NewRisks Related to Regulatory Proceedings, Investigations, and Enforcement Matters

    PG&E Corporation and the Utility could be adversely affected by legislative and regulatory developments, including through increased compliance costs and penalties

    Legislative and regulatory developments could increase compliance costs and lead to material fines and penalties.

  • NewRisks Related to Regulatory Proceedings, Investigations, and Enforcement Matters

    The Utility has been and could in the future be subject to regulatory or governmental enforcement actions with respect to its compliance with such rules

    The Utility is subject to ongoing regulatory and governmental enforcement actions that could result in judgments and penalties.

  • NewRisks Related to Operations and Information Technology

    The systems and networks of PG&E Corporation and the Utility may also be damaged or disrupted by technology failures due to errors in software or platforms or the inability to appropriately support, update, expand, recover or integrate technology within PG&E Corporation and the Utility’s networks

    Errors or failures in technology systems, software, or billing projects could disrupt operations and damage networks.

  • NewRisks Related to Operations and Information Technology

    Physical attacks targeting the Utility’s physical assets or personnel have caused damage, disrupted operations, and caused injuries and could do so in the future

    Physical attacks targeting the Utility's assets or personnel have caused damage, injuries, and operational disruptions.

  • NewRisks Related to Operations and Information Technology

    PG&E Corporation’s and the Utility’s business activities are concentrated in one industry and in one region

    The Utility's business activities are entirely concentrated in the electric and gas utility industry in Northern and Central California.

  • NewRisks Related to Environmental Factors

    The Utility’s environmental remediation costs could exceed its liability estimates

    Environmental remediation costs at responsible sites could exceed the Utility's liability estimates.

  • NewRisks Related to Environmental Factors

    Environmental remediation costs could also increase in the future as a result of new legislation or regulation. See “PG&E Corporation and the Utility could be adversely affected by legislative and regulatory developments, including through increased compliance costs and penalties” above

    Unrecoverable remediation costs at the Hinkley natural gas compressor site could materially affect financial condition.

Dropped

  • DroppedRisks Related to Wildfires

    There have been numerous other wildfires in the Utility’s service area, of which the Utility has not been alleged or determined to be a cause. The Utility could be alleged or determined to be a cause of one or more of these wildfires

  • DroppedRisks Related to Environmental Factors

    The Utility’s operations are subject to extensive environmental laws, and such laws could change

  • DroppedRisks Related to Other Enforcement Matters, Investigations, and Regulatory Proceedings

    PG&E Corporation and the Utility are subject to the Enhanced Oversight and Enforcement Process

    Inverse condemnation wildfire risks.

  • DroppedRisks Related to Other Enforcement Matters, Investigations, and Regulatory Proceedings

    PG&E Corporation and the Utility could incur significant costs to comply with laws and regulations and be adversely affected by legislative and regulatory developments

  • DroppedRisks Related to Other Enforcement Matters, Investigations, and Regulatory Proceedings

    The environmental rules to which the Utility’s operations are subject relate to air quality, water quality and usage, remediation of hazardous substances, and the protection and conservation of natural resources and wildlife

  • DroppedRisks Related to PG&E Corporation’s and the Utility’s Environment and Financial Condition

    PG&E Corporation may be required to issue shares with respect to HoldCo Rescission or Damage Claims, which would result in dilution to holders of PG&E Corporation common stock, or pay a material amount of cash with respect to allowed Subordinated Debt Claims

  • DroppedRisks Related to PG&E Corporation’s and the Utility’s Environment and Financial Condition

    The CPUC considers affordability as it adjudicates the Utility’s rate cases, and concerns about affordability could cause the CPUC to approve lesser amounts in the Utility’s ratemaking or cost recovery proceedings

Reworded

  • 95% rewrittenRisks Related to Regulatory Proceedings, Investigations, and Enforcement Matters

    The Utility is subject to extensive regulations and enforcement proceedings in connection with compliance with regulations, which could result in penalties

    Expanded to detail specific regulations including CCPA, EPSS, PSPS, vegetation management, asset inspections, and CPUC general orders.

    Was: The Utility is subject to extensive regulations and enforcement proceedings in connection with compliance with such regulations could result in penalties

  • 84% rewrittenRisks Related to Operations and Information Technology

    The Utility’s operational networks and information technology systems could be impacted by a cyber incident, cybersecurity breach, physical attack, or technology failure

    Broadened to emphasize reliance on IT systems for grid monitoring, ignition detection, billing, and financial reporting alongside cybersecurity and physical attacks.

    Was: The Utility’s operational networks and information technology systems could be impacted by a cyber incident, cybersecurity breach, or physical attack

  • 63% rewrittenRisks Related to Wildfires

    PG&E Corporation’s and the Utility’s liabilities for the 2019 Kincade fire, the 2021 Dixie fire, the 2022 Mosquito fire, or the Wildfire-Related Securities Claims could exceed their estimated liabilities, or they could be liable as a result of future wildfires

    Clarified that Wildfire-Related Securities Claims costs could exceed estimated liabilities alongside the 2019 Kincade, 2021 Dixie, and 2022 Mosquito fires.

    Was: PG&E Corporation’s and the Utility’s liabilities for the 2019 Kincade fire, the 2021 Dixie fire, or the 2022 Mosquito fire could exceed their accruals, or they could be liable as a result of future wildfires

  • 57% rewrittenRisks Related to PG&E Corporation’s and the Utility’s Environment and Financial Condition

    The Utility may be unable to manage its costs effectively

    Added organizational design, work management, and expense-to-capital conversion as factors for achieving cost savings.

  • 55% rewrittenRisks Related to Operations and Information Technology

    The operation and decommissioning of the Utility’s nuclear generation facilities expose it to potentially significant liabilities, and the Utility may not be able to fully recover its costs if regulatory requirements or operating conditions change or the facilities cease operations before the licenses expire

    Minor phrasing updates regarding Diablo Canyon Power Plant (DCPP) nuclear liabilities and cost recovery.

  • 51% rewrittenRisks Related to Wildfires

    The Utility may not effectively implement its wildfire mitigation initiatives

    Removed mention of CPUC penalty assessments specifically tied to failure to substantially comply with Wildfire Mitigation Plans.

  • 50% rewrittenRisks Related to Wildfires

    The Wildfire Fund, Continuation Account, and other provisions of AB 1054 and SB 254 may not effectively mitigate the risk of liability for damages arising from catastrophic wildfires

    Updated references to include SB 254 alongside AB 1054 and the Continuation Account.

    Was: The Wildfire Fund and other provisions of AB 1054 may not effectively mitigate the risk of liability for damages arising from catastrophic wildfires

  • 48% rewrittenRisks Related to PG&E Corporation’s and the Utility’s Environment and Financial Condition

    Concerns about high rates for the Utility’s customers could negatively impact PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows

    Maintained substantially similar language regarding customer rate concerns and infrastructure investments.

  • 30% rewrittenRisks Related to Wildfires

    The Utility may be unable to recover all or a significant portion of its costs in excess of insurance coverage in connection with wildfires through rates

  • 29% rewrittenRisks Related to PG&E Corporation’s and the Utility’s Environment and Financial Condition

    Inflation and supply chain issues may adversely affect PG&E Corporation and the Utility

  • 25% rewrittenRisks Related to Operations and Information Technology

    The Utility may be unable to attract and retain specialty personnel and may face workforce disruptions

  • 23% rewrittenRisks Related to PG&E Corporation’s and the Utility’s Environment and Financial Condition

    PG&E Corporation’s and the Utility’s substantial indebtedness may adversely affect their financial health and operating flexibility

  • 21% rewrittenRisks Related to Environmental Factors

    Severe weather events, extended drought, and climate change could materially affect PG&E Corporation and the Utility

All 29 risk factors

Headings as the filing states them, in filing order.

Risks Related to Wildfires

  1. 01The Wildfire Fund, Continuation Account, and other provisions of AB 1054 and SB 254 may not effectively mitigate the risk of liability for damages arising from catastrophic wildfires50% rewritten
  2. 02PG&E Corporation’s and the Utility’s liabilities for the 2019 Kincade fire, the 2021 Dixie fire, the 2022 Mosquito fire, or the Wildfire-Related Securities Claims could exceed their estimated liabilities, or they could be liable as a result of future wildfires63% rewritten
  3. 03The Utility may be unable to recover all or a significant portion of its costs in excess of insurance coverage in connection with wildfires through rates30% rewritten
  4. 04The Utility may not effectively implement its wildfire mitigation initiatives51% rewritten

Risks Related to Regulatory Proceedings, Investigations, and Enforcement Matters

  1. 05The Utility’s ratemaking and cost recovery proceedings may not authorize sufficient revenues, or the Utility’s actual costs could exceed its authorized or forecasted costs
  2. 06An Enhanced Oversight and Enforcement Process proceeding could result in the Utility losing its license to operate as a utilityNew
  3. 07PG&E Corporation and the Utility could be adversely affected by legislative and regulatory developments, including through increased compliance costs and penaltiesNew
  4. 08The Utility is subject to extensive regulations and enforcement proceedings in connection with compliance with regulations, which could result in penalties95% rewritten
  5. 09The Utility has been and could in the future be subject to regulatory or governmental enforcement actions with respect to its compliance with such rulesNew
  6. 10Jurisdictions attempt to acquire the Utility’s assets through eminent domain, and third parties attempt to acquire the Utility’s customers by bypassing the Utility’s electric infrastructure system

Risks Related to Operations and Information Technology

  1. 11The Utility’s electricity and natural gas operations are inherently hazardous and involve significant risks
  2. 12The Utility’s operational networks and information technology systems could be impacted by a cyber incident, cybersecurity breach, physical attack, or technology failure84% rewritten
  3. 13The systems and networks of PG&E Corporation and the Utility may also be damaged or disrupted by technology failures due to errors in software or platforms or the inability to appropriately support, update, expand, recover or integrate technology within PG&E Corporation and the Utility’s networksNew
  4. 14Physical attacks targeting the Utility’s physical assets or personnel have caused damage, disrupted operations, and caused injuries and could do so in the futureNew
  5. 15The operation and decommissioning of the Utility’s nuclear generation facilities expose it to potentially significant liabilities, and the Utility may not be able to fully recover its costs if regulatory requirements or operating conditions change or the facilities cease operations before the licenses expire55% rewritten
  6. 16The Utility may be unable to attract and retain specialty personnel and may face workforce disruptions25% rewritten
  7. 17PG&E Corporation’s and the Utility’s business activities are concentrated in one industry and in one regionNew

Risks Related to Environmental Factors

  1. 18Severe weather events, extended drought, and climate change could materially affect PG&E Corporation and the Utility21% rewritten
  2. 19The Utility’s environmental remediation costs could exceed its liability estimatesNew
  3. 20Environmental remediation costs could also increase in the future as a result of new legislation or regulation. See “PG&E Corporation and the Utility could be adversely affected by legislative and regulatory developments, including through increased compliance costs and penalties” aboveNew

Risks Related to PG&E Corporation’s and the Utility’s Environment and Financial Condition

  1. 21The Utility may be unable to manage its costs effectively57% rewritten
  2. 22Concerns about high rates for the Utility’s customers could negatively impact PG&E Corporation’s and the Utility’s financial condition, results of operations, liquidity, and cash flows48% rewritten
  3. 23PG&E Corporation’s and the Utility’s substantial indebtedness may adversely affect their financial health and operating flexibility23% rewritten
  4. 24The documents that govern PG&E Corporation’s and the Utility’s indebtedness limit their flexibility in operating their business
  5. 25In addition, the Utility’s DOE Loan Guarantee Agreement contains similar covenants as well as certain affirmative and negative covenants, events of default, and prepayment events which are incremental to those contained in the Utility’s credit agreements and indentures
  6. 26PG&E Corporation capital stock is subject to ownership and transfer restrictions intended to preserve PG&E Corporation’s ability to use its net operating loss carryforwards and other tax attributes
  7. 27PG&E Corporation may not be able to use some or all of its net operating loss carryforwards and other tax attributes to offset future income
  8. 28PG&E Corporation is a holding company and relies on dividends, distributions, and other payments, advances, and transfers of funds from the Utility to pay dividends on its capital stock and meet its obligations
  9. 29Inflation and supply chain issues may adversely affect PG&E Corporation and the Utility29% rewritten

Other PG&E 10-Ks

  • FY2024 10-K risk factors
    28 risks

    Wildfire liabilities, insurance deficits, and AB 1054 compliance dominate the utility's risk profile.

    Filed Feb 13, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.