Pacific Gas & Electric Co

ITEM 1A. RISK FACTORS

For information about the significant risks that could affect PGE Corporations and the Utilitys financial condition, results of operations, liquidity, and cash flows, see Item 1A.: Risk Factors in the 20234 Form 10-K, as supplemented below and the section of this quarterly report entitled Forward-Looking Statements.

PGE 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 common stock and meet its obligations.

PGE Corporation conducts its operations primarily through its subsidiary, the Utility, and substantially all of PGE Corporations consolidated assets are held by the Utility. Accordingly, PGE Corporations cash flow, ability to pay dividends on its common stock, and ability to meet its debt service obligations under its existing and future indebtedness largein the section of this Quarterly depend upon the earnings and cash flows of the Utility and the distributiReport on of these earnings and cash flows to PGE Corporation. The ability of the Utility to pay dividends or make other advances, distributions, and transfers of funds will depend on its results of operations and is restricted by, among other things, applicable laws limiting the amount of funds available for payment of dividends and certain restrictive covenants contained in financing agreements. See Liquidity and Financial Resources in Item 7. MDA in the 2023 Form Form 10-K. The Utility must use its resources to satisfy its own obligations, including its obligation to serve customers, to pay principal and interest on outstanding debt, to meet its obligations to employees and creditors, and to pay preferred stock dividends, before it can distribute cash to PGE Corporation. In particular, the CPUC requires PGE Corporations and the Utilitys Boards of Directors to give first priority to the capital requirements of the Utility, as determined to be necessary and prudent to meet the Utilitys obligation to serve or to operate the Utility in a prudent and efficient manner. The CPUC also regulates the Utilitys capital structure. Dividend payments on PGE Corporations common stock are also subject to the discretion of PGE Corporations Board of Directors. See Note 6 of the Notes to the Condensed ConsolidQ entitled Forward-Looking Stated Financial Statements included in Item 1.

The deterioration of income from, or other available assets of, the Utility for any reason could limit or impair the Utilitys ability to pay dividends or make other distributions to PGE Corporation, which could, in turn, materially and adversely affect PGE Corporations ability to pay common stock dividends or meet other obligations.

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PART I. FINANCIAL INFORMATION