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What changed in PORTLAND GENERAL ELECTRIC CO /OR/'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of PORTLAND GENERAL ELECTRIC CO /OR/'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+478 added−437 removedSource: 10-K (2025-02-14) vs 10-K (2024-02-20)

Top changes in PORTLAND GENERAL ELECTRIC CO /OR/'s 2024 10-K

478 paragraphs added · 437 removed · 334 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

96 edited+24 added−22 removed84 unchanged
Biggest changeAlthough the projects currently provide PGE a total of 331 MW of capacity through contracts as shown below, actual energy received is dependent upon river flows and capacity amounts may decline over time: ◦ 100 MW of capacity with Douglas County PUD that expires in 2025; ◦ 68 MW of capacity with Douglas County PUD that expires in 2028; and ◦ 163 MW of capacity with Grant County PUD that expires in 2052. 16 Table of Contents PGE has entered into two additional agreements, both beginning January 1, 2024, which are not reflected in the table above: ◦ a 2-year contract in which PGE will purchase 10% of the project output and sell 25 MW back to the PUD in order to meet their load requirements; and ◦ a 3-year contract in which PGE will purchase a 20% share of the project output and sell varying amounts of energy in accordance with contract terms back to the PUD in order to meet their load requirements. • CTWS —PGE has a long-term agreement under which the Company purchases output from the CTWS’ interest in the Pelton/Round Butte hydroelectric project.
Biggest changeAlthough the projects currently provide PGE a total of 1,010 MW of nameplate capacity through contracts as shown below, actual energy received is dependent upon river flows and capacity amounts may decline over time: ◦ 258 MW of average variable capacity with Douglas County PUD that expires in 2025; ◦ 434 MW of capacity under a contract expiring in 2026 in which PGE will purchase a 20% share of the project output and sell varying amounts of energy in accordance with contract terms back to the PUD in order to meet their load requirements; ◦ 65 MW of average monthly capacity with Douglas County PUD that expires in 2028; ◦ 79 MW of capacity under a contract expiring in 2030, with an option to renew until 2032, in which PGE will purchase 10% of the project output.
QFs are generating facilities that fall within the following two categories: i) qualifying generation facilities with a capacity of 80 MW or less and whose primary energy source is renewable (hydro, wind, solar, biomass, waste, or geothermal); or ii) qualifying cogeneration facilities that sequentially produce electricity and another form of useful thermal energy (e.g., heat, steam) in a way that is more efficient than the separate production of each form of energy.
QFs are generating facilities that fall within one of the following two categories: i) qualifying generation facilities with a capacity of 80 MW or less and whose primary energy source is renewable (hydro, wind, solar, biomass, waste, or geothermal); or ii) qualifying cogeneration facilities that sequentially produce electricity and another form of useful thermal energy (e.g., heat, steam) in a way that is more efficient than the separate production of each form of energy.
PGE also promotes diversity and economic development through its suppliers. The Company’s supplier diversity program provides an opportunity in all competitive bid events for qualified minority-owned, women-owned, disabled veteran-owned, and emerging small business suppliers. Information about Executive Officers The following are PGE’s current executive officers: Name Age Current Position and Past Five Years Experience Year Appointed Officer Larry N.
PGE also promotes diversity and economic development through its suppliers. The Company’s supplier diversity program provides an opportunity in competitive bid events for qualified minority-owned, women-owned, disabled veteran-owned, and emerging small business suppliers. Information about Executive Officers The following are PGE’s current executive officers: Name Age Current Position and Past Five Years Experience Year Appointed Officer Larry N.
Based on the climate in PGE’s service area, the heating season tends to span a longer time period while cooling needs, although robust, are reflected over a shorter span concentrated in the summer months of June through September. Economic conditions can also affect residential demand as job growth and population growth in PGE’s service territory have led to customer growth.
Based on the climate in PGE’s service area, the heating season tends to span a longer time period while cooling needs, although robust, are reflected over a shorter span concentrated in the summer months of June through September. Economic conditions can also affect residential demand as job growth and population increases in PGE’s service territory have led to customer growth.
Certain large commercial and industrial customers may elect a fixed three-year or a minimum five-year term, to be served either by an ESS, or by the Company under the daily market index-based price option. Participation in the fixed three-year and minimum five-year opt-out programs for existing and planned load is capped at 300 average megawatts (MWa) in aggregate.
Certain large commercial and industrial customers may elect a fixed three-year or a minimum five-year term, to be served either by an ESS, or by the Company under the daily market index-based price option. Participation in the fixed three-year and minimum five-year opt-out programs for existing and planned load is capped at 300 average megawatts in aggregate.
The CTWS has a second option in 2036 to purchase an undivided 0.02% interest in Pelton/Round Butte. If the second option is exercised, the CTWS’s ownership percentage would exceed 50%. PGE purchases 100% of the CTWS’s share of the project output. For more information see “CTWS” within Purchased Power in the Power Supply section of this Item 1.
The CTWS has an option in 2036 to purchase an undivided 0.02% interest in Pelton/Round Butte. If the second option is exercised, the CTWS’s ownership percentage would exceed 50%. PGE purchases 100% of the CTWS’s share of the project output. For more information see “CTWS” within Purchased Power in the Power Supply section of this Item 1.
Such standards, which are applicable to PGE, were developed by the North American Electric Reliability Corporation (NERC) and the Western Electricity Coordinating Council (WECC), which have responsibility for compliance and enforcement of these standards, and are intended to help maintain and strengthen the reliable planning and operation of the bulk electric system.
Such standards, which are applicable to PGE, were developed by the North American Electric Reliability Corporation (NERC) and the Western Electricity Coordinating Council (WECC), which have responsibility for compliance and enforcement of these standards, and are intended to help maintain and strengthen the reliable planning and operation of the bulk power system.
NVPC is net of wholesale revenues as well as gains and losses on the sale of excess natural gas not used to fuel PGE’s generation facilities included in other operating revenue, both of which are classified as Revenues, net in the consolidated statements of income.
NVPC is net of wholesale revenues as well as gains and losses on the sale of excess natural gas, included in other operating revenue, that is not used to fuel PGE’s generation facilities, both of which are classified as Revenues, net in the consolidated statements of income.
HB 2021 —In June 2021, the Oregon Legislature passed HB 2021, which requires retail electricity providers to reduce GHG emissions associated with serving Oregon retail electricity consumers 80% by 2030, 90% by 2035, and 100% by 2040, compared to their baseline emissions levels.
HB 2021 —In 2021, the Oregon Legislature passed HB 2021, which requires retail electricity providers to reduce GHG emissions associated with serving Oregon retail electricity consumers 80% by 2030, 90% by 2035, and 100% by 2040, compared to their baseline emissions levels.
Interconnected transmission systems in the western United States serve utilities with diverse load requirements and allow the Company to purchase and sell electricity, largely through bi-lateral agreements, within the region to serve retail demand.
Interconnected transmission systems in the western United States and Canada serve utilities with diverse load requirements and allow the Company to purchase and sell electricity, largely through bi-lateral agreements, within the region to serve retail demand.
For additional information on Colstrip as it relates to environmental laws and regulations in the State, see “RPS standards and other laws” in the Overview section in Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 19, Contingencies, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Wind PGE owns and operates two wind farms, Biglow Canyon Wind Farm (Biglow Canyon) and Tucannon River Wind Farm (Tucannon River).
For additional information on Colstrip as it relates to environmental laws and regulations in the State, see “RPS standards and related laws” in the Overview section in Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 19, Contingencies, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Wind PGE owns and operates two wind farms, Biglow Canyon Wind Farm (Biglow Canyon) and Tucannon River Wind Farm (Tucannon River).
For a complete listing of these facilities, see “ Generating Facilities ” in Item 2.—“Properties.” Thermal The Company has five natural gas-fired generating facilities: PW1, PW2, Beaver, Coyote Springs Unit 1 (Coyote Springs), and Carty Generating Station (Carty). 14 Table of Contents The Company also has a 20% ownership interest in the Colstrip Units 3 and 4 coal-fired generating plant (Colstrip), which is located in Colstrip, Montana and operated by a third party.
For a complete listing of these facilities, see “ Generating Facilities ” in Item 2.—“Properties.” Thermal The Company has five natural gas-fired generating facilities: PW1, PW2, Beaver, Coyote Springs Unit 1 (Coyote Springs), and Carty Generating Station (Carty). 13 Table of Contents The Company also has a 20% ownership interest in the Colstrip Units 3 and 4 coal-fired generating plant (Colstrip), which is located in Colstrip, Montana and operated by a third party.
PGE records regulatory assets or liabilities if it is probable that they will be reflected in future prices, based on regulatory orders or other available evidence. 6 Table of Contents The Company periodically assesses the applicability of regulatory accounting to its business, considering both the current and anticipated future regulatory environment and related accounting guidance .
PGE records regulatory assets or liabilities if it is probable that they will be reflected in future prices, based on regulatory orders or other available evidence. 5 Table of Contents The Company periodically assesses the applicability of regulatory accounting to its business, considering both the current and anticipated future regulatory environment and related accounting guidance .
Survey results are shared with PGE management so that managers can take action towards improving the employee experience. Health and Safety — PGE is committed to providing a safe and healthy place of business for employees, customers, and the public. Management has established an Executive Safety Council that has oversight of the Company’s efforts to create a safe workplace.
Survey results are shared with PGE management so that managers can take action towards improving the employee experience. Health and Safety— PGE is committed to providing a safe and healthy place of business for employees, customers, and the public. Management has established an Executive Safety Committee that has oversight of the Company’s efforts to create a safe workplace.
For additional information regarding the Company’s transmission and distribution facilities, see “ Transmission and Distribution ” in Item 2.—“Properties.” 19 Table of Contents Environmental Matters PGE’s operations are subject to a wide range of environmental protection laws and regulations, which pertain to air and water quality, endangered species and wildlife protection, and hazardous materials.
For additional information regarding the Company’s transmission and distribution facilities, see “ Transmission and Distribution ” in Item 2.—“Properties.” 18 Table of Contents Environmental Matters PGE’s operations are subject to a wide range of environmental protection laws and regulations, which pertain to air and water quality, endangered species and wildlife protection, and hazardous materials.
As the operator of record of the KB Pipeline, PGE is subject to the requirements and regulations enacted under the Pipeline Safety Laws administered by the PHMSA, which include safety and operator qualification standards in addition to public awareness requirements. Hydroelectric Licensing —As required under the FPA, PGE holds FERC licenses for all Company-owned and operated hydroelectric generating plants.
As the operator of record of the KB Pipeline, PGE is subject to the requirements and regulations enacted under the Pipeline Safety Laws administered by the PHMSA, which include safety and operator qualification standards and public awareness requirements. Hydroelectric Licensing —As required under the FPA, PGE holds FERC licenses for all Company-owned and operated hydroelectric generating plants.
The Company participates in the wholesale market through the purchase and sale of electricity and natural gas in an effort to obtain reasonably-priced power to serve its retail customers, manage risk, and administer its long-term wholesale contracts. PGE is committed to developing products and service offerings for the benefit of retail and wholesale customers.
The Company participates in the wholesale market through the purchase and sale of electricity, natural gas, and environmental credits in an effort to obtain reasonably-priced power to serve its retail customers, manage risk, and administer its long-term wholesale contracts. PGE is committed to developing products and service offerings for the benefit of retail and wholesale customers.
In addition, the Company prepares, pursuant to applicable provisions of the FPA, financial statements in accordance with the accounting requirements of the FERC, as set forth in its applicable Uniform System of Accounts and 7 Table of Contents published accounting releases. Such financial statements are included in annual and quarterly reports filed with the FERC.
In addition, the Company prepares, pursuant to applicable provisions of the FPA, financial statements in accordance with the accounting requirements of the FERC, as set forth in its applicable Uniform System of Accounts and 6 Table of Contents published accounting releases. Such financial statements are included in annual and quarterly reports filed with the FERC.
PGE’s transmission system is managed on a coordinated basis to obtain maximum load-carrying capability and efficiency. PGE has joined the Western Power Pool’s resource adequacy program known as the Western Resource Adequacy Program (WRAP), which is currently expected to become a binding commitment in 2026.
PGE’s transmission system is managed on a coordinated basis to obtain maximum load-carrying capability and efficiency. PGE has joined the Western Power Pool’s resource adequacy program known as the Western Resource Adequacy Program (WRAP), which is currently expected to become a binding commitment in 2027.
For more information regarding GHG emissions and related environmental regulation, including Oregon’s RPS and the Company’s goals in this area, see “Renewable Energy” under State Regulation in the Regulation section of this Item 1. and “Company Strategy” in the Overview section of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Water Quality Under the federal Clean Water Act, entities that require any federal license or permit to conduct an activity that may result in a discharge to waters of the United States must first receive a water quality certification or permit from the state in which the activity will occur, or obtain an appropriate waiver.
For more information regarding GHG emissions and related environmental regulation, including Oregon’s RPS and the Company’s goals in this area, see “Renewable Adjustment Clause mechanism” under State Regulation in the Regulation section of this Item 1. and “Company Strategy” in the Overview of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Water Quality Under the federal Clean Water Act, entities that require any federal license or permit to conduct an activity that may result in a discharge to waters of the United States must first receive a water quality certification or permit from the state in which the activity will occur, or obtain an appropriate waiver.
Angelica Espinosa 46 Senior Vice President, Chief Legal and Compliance Officer (June 2023 to present) Vice President, General Counsel (March 2022 to June 2023), Deputy General Counsel and Corporate Secretary (June 2021 to March 2022), Chief Risk Officer and Vice President of Safety and Compliance at Southern California Gas Company (January 2019 to June 2021). 2022 Benjamin F.
Angelica Espinosa 47 Senior Vice President, Chief Legal and Compliance Officer (June 2023 to present), Vice President, General Counsel (March 2022 to June 2023), Deputy General Counsel and Corporate Secretary (June 2021 to March 2022), Chief Risk Officer and Vice President of Safety and Compliance at Southern California Gas Company (January 2019 to June 2021). 2022 Benjamin F.
The Company’s major power purchase contracts consist of the following (also see the preceding table which summarizes the average resource capabilities related to these contracts): Hydro —During 2023, the Company had the following agreements: • Public Utility Districts —PGE has long-term power purchase contracts with certain public utility districts (PUDs) in the state of Washington for a portion of the output of two hydroelectric projects on the mid-Columbia River.
The Company’s major power purchase contracts consist of the following (also see the preceding table which summarizes the average resource capabilities related to these contracts): Hydro —During 2024, the Company had the following agreements: • Public Utility Districts —PGE has long-term power purchase contracts with certain public utility districts (PUDs) in the state of Washington for a portion of the output of certain hydroelectric projects on the mid-Columbia River.
The following lists the more significant regulatory mechanisms and proceedings under which customer prices are determined: • General Rate Cases . PGE periodically evaluates the need to update its retail electric price structure as part of a comprehensive general rate case process that reflects revenue requirements based on a forecasted test year.
The following lists the more significant regulatory mechanisms and proceedings under which customer prices are determined: • General Rate Cases (GRCs) . PGE periodically evaluates the need to update its retail electric price structure as part of a comprehensive GRC process that reflects revenue requirements based on a forecasted test year.
For further information regarding Direct Access deliveries, see “Customers and demand” in the Overview section of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 11 Table of Contents PGE’s customers have a desire for purchasing clean energy, as over 233 thousand residential and small commercial customers voluntarily participate in PGE’s Green Future Program, the largest renewable power program by participation in the nation.
For further information regarding Direct Access deliveries, see “Customers and demand” in the Overview section of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 10 Table of Contents PGE’s customers have a desire for purchasing clean energy, as over 230 thousand residential and small commercial customers voluntarily participate in PGE’s Green Future Program, the largest renewable power program by participation in the nation.
At least annually, the Board conducts reviews of succession plans for senior management, which includes a review of the 22 Table of Contents qualifications and development plans of potential internal candidates and diversity of the succession pipeline. PGE conducts employee engagement surveys periodically to give employees the opportunity to share their perspectives and provide feedback.
At least annually, the Board conducts reviews of succession plans for senior management, which includes a review of the qualifications and development plans of potential internal candidates and diversity of the succession pipeline. PGE conducts employee engagement surveys periodically to give employees the opportunity to share their perspectives and provide feedback.
Bekkedahl 62 Senior Vice President, Strategy and Advanced Energy Delivery (December 2023 to present) Senior Vice President, Advanced Energy Delivery (July 2021 to December 2023), Vice President, Grid Architecture, Integration and Systems Operations (January 2019 to July 2021). 2014 M.
Bekkedahl 63 Senior Vice President, Strategy and Advanced Energy Delivery (December 2023 to present), Senior Vice President, Advanced Energy Delivery (July 2021 to December 2023), Vice President, Grid Architecture, Integration and Systems Operations (January 2019 to July 2021). 2014 M.
Trpik 54 Senior Vice President, Finance and Chief Financial Officer (June 2023 to Present), Senior Vice President, Chief Accounting Officer at Exelon (May 2022 to June 2023), Senior Vice President, Chief Financial Officer and Treasurer at ComEd (November 2021 to May 2022), Senior Vice President, Chief Financial Officer at Exelon Utilities (June 2018 to November 2021). 2023
Trpik 55 Senior Vice President, Finance and Chief Financial Officer (June 2023 to Present), Senior Vice President, Chief Accounting Officer at Exelon (May 2022 to June 2023), Senior Vice President, Chief Financial Officer and Treasurer at ComEd (November 2021 to May 2022), Senior Vice President, Chief Financial Officer at Exelon Utilities (June 2018 to November 2021). 2023
Such purchases are made under contracts that range in duration from 15 minutes to less than one month. PGE is a market participant in the western EIM, which allows certain of the Company’s generating plants to receive automated dispatch signals from the California Independent System Operator (CAISO) for load balancing with other western EIM participants in five-minute intervals.
Such purchases are made under contracts that range in duration from 15 minutes to less than one month. PGE is a market participant in the western EIM, which allows certain of the Company’s generating plants to receive automated dispatch signals from the CAISO for load balancing with other western EIM participants in five-minute intervals.
Biglow Canyon, located in Sherman County, Oregon, consists of 217 turbines with a total nameplate capacity of 450 MW. Tucannon River, located in southeastern Washington, consists of 116 turbines with a total nameplate capacity of 267 MW. During 2020, the wind component of the Wheatridge Renewable Energy Facility (Wheatridge), located in Morrow County, Oregon, was placed into service.
Biglow Canyon, located in Sherman County, Oregon, consists of 217 turbines with a total nameplate capacity of 450 MW. Tucannon River, located in southeastern Washington, consists of 116 turbines with a total nameplate capacity of 267 MW. During 2020, the wind component of Wheatridge, located in Morrow County, Oregon, was placed into service.
For information regarding actual generating output and purchases for the years ended December 31, 2023 and 2022, see the Results of Operations section of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Generation PGE’s generating resources consist of six thermal plants (natural gas- and coal-fired), three wind farms, and seven hydroelectric facilities.
For information regarding actual generating output and purchases for the years ended December 31, 2024 and 2023, see the Results of Operations section of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Generation PGE’s generating resources consist of six thermal plants (natural gas- and coal-fired), four wind farms, and seven hydroelectric facilities.
Because PGE operates facilities that can pose risks to a variety of such birds and eagles, the Company developed an Avian Protection Plan to help address and reduce risks to avian species that may be affected by Company operations.
Because PGE operates facilities that can pose risks to a variety of such birds and eagles, the Company developed an Avian Protection Plan to help address and reduce risks to avian species that may be 20 Table of Contents affected by Company operations.
For more information on the Company’s power purchase agreements that currently serve the Green Future Impact Program, see “Green Future Impact Program” within Purchased Power in the Power Supply section of this Item 1.
For more information on the Company’s PPAs that currently serve the Green Future Impact Program, see “Green Future Impact Program” within Purchased Power in the Power Supply section of this Item 1.
The PGE Board of Directors oversees executive talent development with the assistance of the Nominating, Governance, and Sustainability Committee and the Compensation, Culture and Talent Committee in an effort to increase the pool of internal candidates.
The PGE Board of Directors oversees executive 21 Table of Contents talent development with the assistance of the Nominating, Governance, and Sustainability Committee and the Compensation, Culture and Talent Committee in an effort to increase the pool of internal candidates.
As of December 31, 2023, PGE had contracts with 69 online QFs, providing a total of 315 MW of capacity.
As of December 31, 2024, PGE had contracts with 69 online QFs, providing a total of 315 MW of capacity.
Under a separate PPA executed in 2014, PGE pays fixed capacity and energy charges to the CTWS for 100% of its share of the project through 2024. The CTWS exercised their option to purchase an additional undivided 16.66% ownership interest in Pelton/Round Butte effective January 1, 2022.
Under a separate PPA executed in 2014, PGE paid fixed capacity and 15 Table of Contents energy charges to the CTWS for 100% of its share of the project through 2024. The CTWS exercised their option to purchase an additional undivided 16.66% ownership interest in Pelton/Round Butte effective January 1, 2022.
In conjunction with the RPS, the State established a Renewable Adjustment Clause (RAC) mechanism that allows for the recovery in retail customer prices, outside of a general rate case, of prudently incurred costs to comply with the RPS. ◦ In 2016, the State also passed Oregon Senate Bill (SB) 1547, a law referred to as the Oregon Clean Electricity and Coal Transition Plan, which, among its provisions, increased the RPS percentages in certain future years and required the elimination of coal from Oregon utility customers’ energy supply.
In conjunction with the RPS, the State established a Renewable Adjustment Clause (RAC) mechanism that allows for the recovery in retail customer prices, outside of a GRC, of prudently incurred costs to comply with the RPS. ◦ In 2016, the State passed Oregon Senate Bill (SB) 1547, a law referred to as the Oregon Clean Electricity and Coal Transition Plan, which, among its provisions, increased the RPS percentages in certain future years and required the elimination of coal from Oregon utility customers’ energy 7 Table of Contents supply.
For further information on SB 1547, see “ RPS standards and other laws” in the Overview section of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 8 Table of Contents ◦ During 2021, the State legislature passed Oregon House Bill (HB) 2021, which established clean energy targets and set out a framework that includes, among other things, the development and submittal of clean energy plans for investor-owned utilities, including PGE, and electric service suppliers in the State.
For further information on SB 1547, see “ RPS standards and related laws” in the Overview section of Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” ◦ During 2021, the State legislature passed Oregon House Bill (HB) 2021, which established clean energy targets and set out a framework that includes, among other things, the development and submittal of CEPs for investor-owned utilities, including PGE, and Electricity Service Suppliers (ESSs) in the State.
PGE schedules energy deliveries over its transmission system in accordance with FERC requirements and operates one BAA in its service territory. In 2023, PGE delivered approximately 28 million megawatt hours (MWh) through 1,254 circuit miles of transmission lines operating at or above 115 kilovolts (kV).
PGE schedules energy deliveries over its transmission system in accordance with FERC requirements and operates one BAA in its service territory. In 2024, PGE delivered approximately 31 million megawatt hours (MWh) through 1,269 circuit miles of transmission lines operating at or above 115 kilovolts (kV).
The greater the number of degree-days, the greater the expected demand for electricity. 12 Table of Contents The following table presents the heating and cooling degree-days for the most recent three-year period, along with current 15-year averages for the most recent year provided by the National Weather Service, as measured at Portland International Airport: Heating Degree-Days Cooling Degree-Days 2023 3,845 898 2022 4,103 865 2021 3,828 838 15-year average 4,085 600 In August 2023, PGE set a new all-time high net system load peak of 4,498 megawatts (MW), surpassing the previous all-time peak that occurred in June 2021.
The greater the number of degree-days, the greater the expected demand for electricity. 11 Table of Contents The following table presents the heating and cooling degree-days for the most recent three-year period, along with current 15-year averages for the most recent year provided by the National Weather Service, as measured at Portland International Airport: Heating Degree-Days Cooling Degree-Days 2024 3,662 751 2023 3,845 898 2022 4,103 865 15-year average 4,037 628 In August 2023, PGE set a new all-time high net system load peak of 4,498 megawatts (MW), surpassing the previous all-time peak that occurred in June 2021.
In addition, the Company distributes power to Direct Access customers that choose to purchase their energy from an Electricity Service Supplier (ESS).
In addition, the Company distributes power to Direct Access customers that choose to purchase their energy from an ESS.
As of December 31, 2023, PGE had two contracts with QFs representing 116 MW of capacity that are not yet operational, of which one of the QF PPAs is in default because the QF has failed to complete construction and become operational by the date required by the PPA.
As of December 31, 2024, PGE had two contracts with QFs representing 116 MW of capacity that are not yet operational, of which two of the QF PPAs are in default because the QFs have failed to complete construction and become operational by the date required by the PPA.
Behavior patterns, conservation, energy efficiency initiatives and measures, weather effects, economic conditions, distributed generation including rooftop solar, transportation and building electrification, and demographic changes all play a role in determining expected future customer demand and the resulting resources the Company may need to adequately meet those loads and maintain adequate capacity reserves.
Behavior patterns, conservation, energy efficiency initiatives and measures, weather effects, economic conditions, including high-tech and digital services growth in its service territory, distributed generation including rooftop solar, transportation and building electrification, and demographic changes all play a role in determining expected future customer demand and the resulting resources the Company may need to adequately meet those loads and maintain adequate capacity reserves.
NVPC consists of the cost of power purchased and fuel used to generate electricity, as well as the cost of settled electric and natural gas financial contracts (all classified as Purchased power and fuel expense in the Company’s consolidated statements of income).
NVPC consists of the cost of power purchased in the wholesale market and fuel the Company uses to generate electricity, as well as the cost of settled electric and natural gas financial contracts (all classified as Purchased power and fuel expense in the Company’s consolidated statements of income).
As of December 31, 2021, PGE had a 66.67% ownership interest in the 455 MW Pelton/Round Butte hydroelectric project, with the remaining interest held by the Confederated Tribes of the Warm Springs Reservation of Oregon (CTWS). A 50-year joint license for the project, which is operated by PGE, was issued by the FERC in 2005.
PGE has a 50.01% ownership interest in the 455 MW Pelton/Round Butte hydroelectric project, with the remaining interest held by the Confederated Tribes of the Warm Springs Reservation of Oregon (CTWS). A 50-year joint license for the project, which is operated by PGE, was issued by the FERC in 2005.
Two of these projects extend to 2036 while the other three extend to 2037, 2038, and 2042, respectively. The expected energy from these solar resources will vary from the nameplate capacity due to varying solar conditions. The solar component of Wheatridge supplies the Company with 50 MW of capacity.
Two of these projects extend to 2036 while the other three extend to 2037, 2038, and 2042, respectively. The expected energy from these solar resources will vary from the nameplate capacity due to varying solar conditions.
The Supreme Court, in a February 2022 decision, determined that the broad approach in the CPP regulating emissions exceeded the powers granted to the EPA by Congress. The Court did not expressly determine whether the EPA can regulate power sector GHG emissions through its other regulatory authority.
Supreme Court agreed to hear an appeal of the D.C. Circuit decision. The Supreme Court, in a 2022 decision, determined that the broad approach in the CPP regulating emissions exceeded the powers granted to the EPA by Congress. The Court did not expressly determine whether the EPA can regulate power sector GHG emissions through its other regulatory authority.
As illustrated, although the average winter loads continue to exceed average summer loads, the Company has seen its highest annual peak loads during the summer months in recent years: Winter Loads Summer Loads Average Peak Month Average Peak Month 2023 2,756 3,661 January 2,512 4,498 August 2022 2,773 4,113 December 2,529 4,255 July 2021 2,659 3,629 December 2,492 4,453 June The Company tracks and evaluates both load growth and peak load requirements for purposes of long-term load forecasting, integrated resource planning, and preparing general rate case assumptions.
As illustrated, although the average winter loads continue to exceed average summer loads, the Company has seen its highest annual peak loads during the summer months in recent years: Winter Loads Summer Loads Average Peak Month Average Peak Month 2024 2,802 3,969 January 2,566 4,367 July 2023 2,756 3,661 January 2,512 4,498 August 2022 2,773 4,113 December 2,529 4,255 July The Company tracks and evaluates both load growth and peak load requirements for purposes of long-term load forecasting, integrated resource planning, and preparing GRC assumptions.
PGE and the CTWS executed an additional 16-year PPA which begins on January 1, 2025, that effectively extends the term from 2024 to 2040 and increases the capacity payments in the extension period. • Other —The remaining capacity is primarily comprised of two additional contracts that provide for the purchase of power generated from hydroelectric projects with capacity of 236 MW in total: ◦ 200 MW of capacity with Bonneville Power Administration (BPA) that expires in February 2024; and ◦ 36 MW of capacity with Portland Hydro that expires in 2032.
PGE and the CTWS executed an additional 16-year PPA which begins on January 1, 2025, that effectively extends the term from 2024 to 2040 and increases the capacity payments in the extension period. • Other —The remaining capacity is primarily comprised of a contract with Portland Hydro, which expires in 2032, that provides for the purchase of power generated from hydroelectric projects with capacity of 36 MW.
Circuit vacated the ACE rule and remanded it, in full, back to the EPA. Notwithstanding objections that the EPA intended to issue a new rule that took recent changes in the electricity sector into account, in October 2021, the U.S. Supreme Court agreed to hear an appeal of the D.C. Circuit decision.
However, in January 2021, the U.S. Court of Appeals for the D.C. Circuit vacated the ACE rule and remanded it, in full, back to the EPA. Notwithstanding objections that the EPA intended to issue a new rule that took recent changes in the electricity sector into account, in October 2021, the U.S.
PGE, incorporated in 1930, is publicly-owned, with its common stock listed on the New York Stock Exchange (NYSE). The Company operates as a single business segment, with revenues and costs related to its business activities maintained and analyzed on a total electric operations basis.
PGE, incorporated in 1930, is publicly-owned, with its common stock listed on the New York Stock Exchange (NYSE). The Company operates as a single business segment, with revenues and costs related to its business activities maintained and analyzed on a total electric operations basis. PGE owns unregulated, non-utility property that it utilizes for its corporate headquarters.
Years Ended December 31, 2023 2022 2021 Residential Revenue per customer (in dollars): $ 1,481 $ 1,362 $ 1,320 Usage per customer (in kilowatt hours): 9,746 9,991 9,968 Revenue per kilowatt hour (in cents): 15.20 ¢ 13.63 ¢ 13.24 ¢ Commercial Revenue per customer (in dollars): $ 7,133 $ 6,491 $ 6,303 Usage per customer (in kilowatt hours): 63,713 63,923 64,478 Revenue per kilowatt hour (in cents): 11.20 ¢ 10.15 ¢ 9.78 ¢ Industrial Revenue per customer (in dollars): $ 1,347,661 $ 1,156,371 $ 1,044,314 Usage per customer (in kilowatt hours): 23,052,538 22,097,472 20,002,246 Revenue per kilowatt hour (in cents): 5.85 ¢ 5.23 ¢ 5.22 ¢ 10 Table of Contents For additional information, see the Results of Operations section in Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Residential customers include single family housing, multiple family housing (such as apartments, duplexes, and town homes), mobile homes, and small farms.
Years Ended December 31, 2024 2023 2022 Residential Revenue per customer (in dollars): $ 1,695 $ 1,481 $ 1,362 Usage per customer (in kilowatt hours): 9,318 9,746 9,991 Revenue per kilowatt hour (in cents): 18.19 ¢ 15.20 ¢ 13.63 ¢ Commercial Revenue per customer (in dollars): $ 8,067 $ 7,133 $ 6,491 Usage per customer (in kilowatt hours): 61,641 63,713 63,923 Revenue per kilowatt hour (in cents): 13.09 ¢ 11.20 ¢ 10.15 ¢ Industrial Revenue per customer (in dollars): $ 1,627,956 $ 1,347,661 $ 1,156,371 Usage per customer (in kilowatt hours): 24,702,680 23,052,538 22,097,472 Revenue per kilowatt hour (in cents): 6.59 ¢ 5.85 ¢ 5.23 ¢ 9 Table of Contents For additional information, see the Results of Operations section in Item 7.—“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Residential customers include single family housing, multiple family housing (such as apartments, duplexes, and town homes), mobile homes, and small farms.
In addition, the Company encourages energy efficiency measures to help meet its energy requirements and promotes the use of various demand side management products to reduce load during peak time usage. 13 Table of Contents PGE’s resource and contracted capacity (in MW) was as follows: As of December 31, 2023 2022 Capacity % Capacity % Generation: Thermal (1) : Natural gas 1,811 32 % 1,842 32 % Coal 296 5 296 5 Total thermal 2,107 37 2,138 37 Wind (2) 817 14 817 15 Hydro (3) 432 8 419 7 Total generation 3,356 59 3,374 59 Purchased power: Long-term contracts: Hydro (3) 792 14 871 15 PURPA qualifying facilities (4) 315 6 315 5 Dispatchable standby generation 131 2 144 2 Capacity 100 2 100 2 Wind (2) 300 5 300 5 Solar (5) 219 4 57 1 Biomass 10 — 10 — Total long-term contracts 1,867 33 1,797 31 Short-term contracts 442 8 597 10 Total purchased power capacity 2,309 41 2,394 41 Total resource capacity 5,665 100 % 5,768 100 % (1) Capacity represents the MW the plants are capable of generating under normal operating conditions, which is affected by ambient temperatures, net of electricity used in the operation of the plant.
In addition, the Company encourages energy efficiency measures to help meet its energy requirements and promotes the use of various demand side management products to reduce load during peak time usage. 12 Table of Contents PGE’s resource and contracted capacity (in MW) was as follows: As of December 31, 2024 2023 Capacity % Capacity % Generation: Thermal (1) : Natural gas 1,818 28 % 1,811 32 % Coal 296 4 296 5 Total thermal 2,114 32 2,107 37 Wind (2) 1,025 16 817 14 Hydro (3) 431 7 432 8 Total generation 3,570 55 3,356 59 Purchased power: Long-term contracts: Hydro (3) 1,270 20 792 14 PURPA qualifying facilities (4) 315 5 315 6 Dispatchable standby generation 129 2 131 2 Capacity (5) 250 4 100 2 Wind (2) 400 6 300 5 Solar (6) 219 3 219 4 Biomass 10 — 10 — Total long-term contracts 2,593 40 1,867 33 Short-term contracts 333 5 442 8 Total purchased power capacity 2,926 45 2,309 41 Total resource capacity 6,496 100 % 5,665 100 % (1) Capacity represents the MW the plants are capable of generating under normal operating conditions, which is affected by ambient temperatures, net of electricity used in the operation of the plant.
The Company also performs portfolio management and wholesale market sales services for third parties in the region.
The Company also performs portfolio management and wholesale market sales services for third parties in the region and purchases and sells environmental credits in the wholesale marketplace.
PGE strives to improve regional safety by reducing the risk that PGE’s electric utility infrastructure could cause a wildfire, while limiting the impacts of public safety power shutoff (PSPS) events and other mitigation activities on customers and increasing the resiliency of PGE assets to wildfire damage.
PGE strives to improve regional safety by reducing the risk of ignition from PGE assets, while limiting the impacts of public safety power shutoff (PSPS) events and other mitigation activities on customers and increasing the resiliency of PGE assets to wildfire damage.
PGE is subject to such authority as the Company has a 79.5% ownership interest in the Kelso-Beaver (KB) Pipeline, a 17-mile, 20-inch diameter, interstate pipeline that provides natural gas to the Company’s three natural gas-fired generating plants located near Clatskanie, Oregon: i) Port Westward Unit 1 (PW1); ii) Port Westward Unit 2 (PW2), and iii) Beaver; the North Mist storage facility, which is owned and operated by a local natural gas distribution company; and one additional delivery point that serves a local manufacturing concern.
PGE is subject to such authority as the Company has a 79.5% ownership interest in the Kelso-Beaver (KB) Pipeline, a 17-mile, 20-inch diameter, interstate pipeline that provides natural gas to the Company’s three natural gas-fired generating plants located near Clatskanie, Oregon: i) Port Westward Unit 1 (PW1); ii) Port Westward Unit 2 (PW2), and iii) Beaver.
Employees and Collective Bargaining Agreements — PGE had 2,842 employees in its workforce as of December 31, 2023, with 661 employees covered under one of two separate agreements with Local Union No. 125 of the International Brotherhood of Electrical Workers (IBEW). One agreement, which expires March 2025, covers 596 employees, and the other, which expires August 2027, covers 65 employees.
Employees and Collective Bargaining Agreements — PGE had 2,915 employees in its workforce as of December 31, 2024, with 648 employees covered under one of two separate agreements with Local Union No. 125 of the International Brotherhood of Electrical Workers (IBEW). One agreement, which expires February 2028, covers 582 employees, and the other, which expires August 2027, covers 66 employees.
PGE offers a variety of competitive wellness benefits to support physical, mental, social, emotional, and financial well-being. Programs include a digital wellness platform, an Employee Assistance Program that provides free and confidential wellness counseling to all employees and their families, financial education, on-site fitness facilities, volunteer opportunities, company-match on charitable contributions, and tuition reimbursement.
Programs include a digital wellness platform, an Employee Assistance Program that provides free and confidential wellness counseling to all employees and their families, financial education, on-site fitness facilities, volunteer opportunities, company-match on charitable contributions, and tuition reimbursement.
Currently, PGE transports natural gas on the KB Pipeline for its own use under a firm transportation service agreement, with capacity offered to others on an interruptible basis to the extent not utilized by the Company. PGE has access to 111,805 Dth per day of firm natural gas transportation capacity on the Northwest Pipeline to serve the three plants.
Currently, PGE transports natural gas on the KB Pipeline for its own use under a firm transportation service agreement, with capacity offered to others on an interruptible basis to the extent not utilized by the Company.
Retail Revenues Retail customers are classified as residential, commercial, or industrial, with no single customer representing more than 9% of PGE’s total retail revenues or 14% of total retail deliveries during 2023. 9 Table of Contents PGE’s Retail revenues, retail energy deliveries, and average number of retail customers consist of the following: Years Ended December 31, 2023 2022 2021 Retail revenues (1) (dollars in millions): Residential $ 1,263 52 % $ 1,158 52 % $ 1,118 54 % Commercial 808 33 735 33 708 34 Industrial 368 15 312 14 279 13 Subtotal 2,439 100 2,205 99 2,105 101 Alternative revenue programs, net of amortization 11 — 11 1 (29) (1) Other accrued (deferred) revenues, net (3) — 7 — 2 — Total retail revenues $ 2,447 100 % $ 2,223 100 % $ 2,078 100 % Retail energy deliveries (2) (MWh in thousands): Residential 7,952 37 % 8,088 38 % 7,978 39 % Commercial 7,178 34 7,198 34 7,193 35 Industrial 6,293 29 5,945 28 5,361 26 Total retail energy deliveries 21,423 100 % 21,231 100 % 20,532 100 % Average number of retail customers: Residential 815,920 88 % 809,573 88 % 800,372 88 % Commercial 112,667 12 112,602 12 111,569 12 Industrial 273 — 269 — 268 — Total 928,860 100 % 922,444 100 % 912,209 100 % (1) Includes both revenues from customers who purchase their energy supplies from the Company and revenues from the delivery of energy to those commercial and industrial customers that purchase their energy from ESSs.
Retail Revenues Retail customers are classified as residential, commercial, or industrial, with no single customer representing more than 9% of PGE’s total retail revenues or 14% of total retail deliveries during 2024. 8 Table of Contents PGE’s Retail revenues, retail energy deliveries, and average number of retail customers consist of the following: Years Ended December 31, 2024 2023 2022 Retail revenues (1) (dollars in millions): Residential $ 1,457 51 % $ 1,263 52 % $ 1,158 52 % Commercial 924 33 808 33 735 33 Industrial 458 16 368 15 312 14 Subtotal 2,839 100 2,439 100 2,205 99 Alternative revenue programs, net of amortization (40) (1) 11 — 11 1 Other accrued (deferred) revenues, net 16 1 (3) — 7 — Total retail revenues $ 2,815 100 % $ 2,447 100 % $ 2,223 100 % Retail energy deliveries (2) (MWh in thousands): Residential 7,732 36 % 7,952 37 % 8,088 38 % Commercial 7,024 32 7,178 34 7,198 34 Industrial 6,941 32 6,293 29 5,945 28 Total retail energy deliveries 21,697 100 % 21,423 100 % 21,231 100 % Average number of retail customers: Residential 829,721 88 % 815,920 88 % 809,573 88 % Commercial 113,942 12 112,667 12 112,602 12 Industrial 281 — 273 — 269 — Total 943,944 100 % 928,860 100 % 922,444 100 % (1) Includes both revenues from customers who purchase their energy supplies from the Company and revenues from the delivery of energy to those commercial and industrial customers that purchase their energy from ESSs.
They are entered into with various counterparties to provide additional firm energy to help meet the Company’s load requirements. 18 Table of Contents PGE also utilizes spot purchases of power in the open market to secure the energy required to serve its retail customers.
Short-term contracts —These contracts are for delivery periods of one month to one year in length. They are entered into with various counterparties to provide additional firm energy to help meet the Company’s load requirements. PGE also utilizes spot purchases of power in the open market to secure the energy required to serve its retail customers.
As required by the OPUC, PGE plans and implements a Wildfire Mitigation Program, developing and coordinating activities across the Company and with state-wide stakeholders.
As required by the OPUC, PGE has developed and implemented a Wildfire Mitigation Plan, coordinating activities across the Company and with state-wide stakeholders.
To serve Coyote Springs and Carty, PGE has access to 119,500 Dth per day of firm natural gas transportation capacity on three pipeline systems accessing the gas market in Alberta, Canada.
The storage facility, owned and operated by NW Natural, may be utilized to provide fuel to PW1, PW2, and Beaver. To serve Coyote Springs and Carty, PGE has access to 119,500 Dth per day of firm natural gas transportation capacity on three pipeline systems accessing the gas market in Alberta, Canada.
Diversity, Equity, and Inclusion — PGE promotes an inclusive workforce through pay equity practices, racial equity lens training, and development opportunities for employees looking to advance into management. Black, Indigenous, and People of Color comprise over 27% of its employees and management. One third of its employees and over 35% of management, including its CEO, are female.
Investing in PGE’s Workforce — PGE promotes an inclusive workforce through pay equity practices, training, and development opportunities for employees looking to advance into, and within, management. Black, Indigenous, and People of Color comprise over 25% of its employees and management, and 34% of its employees and over 36% of management, including its CEO, are female.
The COVID-19 pandemic introduced additional behavioral patterns that reflected the shift that occurred with respect to hybrid work schedules as residential customers spend more time at home. Residential demand is also impacted by energy efficiency measures and increased rooftop solar penetration in the service territory; however, the Company’s decoupling mechanism was intended to mitigate the financial effects of such measures.
The COVID-19 pandemic introduced additional behavioral patterns that reflected the shift that occurred with respect to hybrid work schedules as residential customers spent more time at home, the impact of which has largely normalized in the last few years. Residential demand is also impacted by energy efficiency measures and increased rooftop solar penetration in the service territory.
In 2020, the OPUC issued an order that required PGE to begin offering, to eligible customers, enrollment in the New Large Load Direct Access program, which is capped at 119 MWa in total, for unplanned, large, new loads and large load growth at existing sites.
PGE is also required to offer to eligible customers, enrollment in the New Large Load Direct Access program, which is capped at 119 average megawatts in total, for unplanned, large, new loads and large load growth at existing sites.
As a result, the Company may record regulatory assets, of certain actual or estimated costs that would otherwise be charged to expense, based on expected recovery from customers in future prices.
GAAP provides for the deferral, or recording of expenses and revenues in periods other than when an unregulated entity would. As a result, the Company may record regulatory assets, of certain actual or estimated costs that would otherwise be charged to expense, based on expected recovery from customers in future prices.
(2) Capacity represents nameplate and differs from expected energy to be generated, which is expected to have a capacity factor range from 30 to 40%, dependent upon wind conditions.
(2) Capacity represents nameplate and differs from expected energy to be generated, which is expected to range from 30 to 40% of capacity, dependent upon wind conditions. (3) Capacity represents most favorable operating conditions and differs from expected energy to be generated, which is expected to range from 40 to 50% of capacity, dependent upon river flows.
The handling and disposal of hazardous materials from Company facilities is subject to regulation under the federal Resource Conservation and Recovery Act. In addition, the use, disposal, and clean-up of polychlorinated biphenyls, contained in certain electrical equipment, are regulated under the federal Toxic Substances Control Act.
In addition, the use, disposal, and clean-up of polychlorinated biphenyls, contained in certain electrical equipment, are regulated under the federal Toxic Substances Control Act.
PGE is also subject to the Comprehensive Environmental Response Compensation and Liability Act, commonly referred to as Superfund, which provides authority to the EPA to assert joint and several liability for investigation and remediation costs for designated Superfund sites.
PGE has a comprehensive program to comply with requirements of both federal and state regulations related to the storage, handling, and disposal of hazardous materials PGE is also subject to the Comprehensive Environmental Response Compensation and Liability Act, commonly referred to as Superfund, which provides authority to the EPA to assert joint and several liability for investigation and remediation costs for designated Superfund sites.
In response, in 2021, the ODEQ adopted the Climate Protection Plan, which among various provisions, included an exemption for electricity generation from the Company’s natural gas-fired resources; and • modified the reduction goals of the State’s Clean Fuels Program and extended the program while increasing the required reduction in average carbon intensity of transportation fuels. 20 Table of Contents On December 20, 2023, the Oregon Court of Appeals invalidated the ODEQ’s Climate Protection Program rules on the basis that the program failed to comply with certain procedural requirements when adopting rules under the CAA.
In response, in 2021, the ODEQ adopted the Climate Protection Program, which among various provisions, included an exemption for electricity generation from the Company’s natural gas-fired resources; and 19 Table of Contents • modified the reduction goals of the State’s Clean Fuels Program and extended the program while increasing the required reduction in average carbon intensity of transportation fuels.
Natural Gas Physical supplies of natural gas are generally purchased up to twelve months in advance of delivery and based on anticipated operation of the plants.
Natural Gas Physical supplies of natural gas are generally purchased up to twelve months in advance of delivery and based on anticipated operation of the plants. PGE manages the price risk of natural gas supply through the use of financial contracts up to 60 months in advance of expected need of energy.
Felton 53 Executive Vice President, Chief Operating Officer (April 2023 to Present), Senior Vice President, Energy Supply at DTE Energy (July 2019 to March 2023), Senior Vice President, Electric Operations at NISOURCE, Co. (October 2018-July 2019). 2023 John T. Kochavatr 50 Vice President, Customer & Digital Solutions and Chief Information Officer (February 2018 to present). 2018 Anne F.
Felton 54 Executive Vice President, Chief Operating Officer (April 2023 to present), Senior Vice President, Energy Supply at DTE Energy (July 2019 to March 2023), Senior Vice President, Electric Operations at NISOURCE, Co. (October 2018-July 2019). 2023 22 Table of Contents John T.
PGE manages the price risk of natural gas supply through the use of financial contracts up to 60 months in advance of expected need of energy. 15 Table of Contents PGE owns 79.5%, and is the operator of record, of the KB Pipeline, which directly connects PW1, PW2, and Beaver to the Northwest Pipeline, an interstate natural gas pipeline operating between British Columbia and New Mexico by Williams.
PGE owns 79.5%, and is the operator of record, of the KB Pipeline, which directly connects PW1, PW2, and Beaver to the Northwest Pipeline, an interstate natural gas pipeline operating between British Columbia and New Mexico by Williams Northwest Pipeline.
Other operating revenues represented 2% of total revenues in 2023 and 2022, and 3% in 2021. Seasonality Demand for electricity by PGE’s residential and, to a lesser extent, commercial and industrial customers is affected by seasonal weather conditions.
Other operating revenues represented 2% of total revenues in 2024, 2023, and 2022. Seasonality Demand for electricity by PGE’s residential and, to a lesser extent, commercial and industrial customers is affected by seasonal weather conditions. The Company uses various measures, including heating and cooling degree-days and wind speeds to determine the effect of weather on the demand for electricity.
In May 2023, the EPA proposed a successor rule to the CPP including CAA emissions limits and guidelines for carbon dioxide emissions from fossil-fuel fired power plants based on cost-effective and available control technologies. The Company has remained engaged in review of the EPA’s proposal that would reduce allowed emissions of CO 2 from generation facilities.
In May 2023, the EPA proposed a successor rule to the CPP including CAA emissions limits and guidelines for carbon dioxide emissions from fossil-fuel fired power plants based on cost-effective and available control technologies. On April 25, 2024, the EPA released final regulations pertaining to electric generation facilities.
Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as: property, plant, and equipment; regulatory assets and liabilities; revenues; certain operating expenses; depreciation expense; and income tax expense. GAAP provides for the deferral, or recording expenses and revenues in periods other than when an unregulated entity would.
Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as: i) property, plant, and equipment; ii) regulatory assets and liabilities; iii) revenues; iv) certain operating expenses; v) depreciation expense; and vi) income tax expense.
In 2019, the EPA finalized the more narrowly focused Affordable Clean Energy (ACE) rule, which established guidelines for states to develop plans to address GHG emissions from individual, existing coal-fired plants, such as Colstrip in the case of PGE, to repeal and replace the CPP. However, in January 2021, the U.S. Court of Appeals for the D.C.
Climate Change —In 2019, the United States Environmental Protection Agency (EPA) finalized the Affordable Clean Energy (ACE) rule, which established guidelines for states to develop plans to address GHG emissions from individual, existing coal-fired plants, such as Colstrip in the case of PGE, to repeal and replace the Clean Power Plan (CPP), which was originally released in 2015.
This customer class includes most businesses, small industrial companies, and public street and highway lighting accounts. The Company’s commercial customer demand is somewhat less susceptible to weather conditions than residential customer demand. Economic conditions and fluctuations in total employment in the region can be indicative of changes in energy demand from commercial customers.
Commercial customers consist of non-residential customers who accept energy deliveries at voltages equivalent to those delivered to residential customers. This customer class includes most businesses, small industrial companies, and public street and highway lighting accounts. The Company’s commercial customer demand is somewhat less susceptible to weather conditions than residential customer demand.
For additional information on the Green Future Impact Program, see “ Customer Choice Programs ” within the Customers and Revenues section of this Item 1. Short-term contracts —These contracts are for delivery periods of one month to one year in length.
For additional information on the Green Future Impact Program, see “ Customer Choice Programs ” within the Customers and Revenues section of this Item 1. Biomass —PGE had one contract to purchase biomass energy that expired in January 2025.
Although PGE does not operate Wheatridge, it owns 40 turbines with a total nameplate capacity of 100 MW and purchases the output of the remaining turbines, with a nameplate capacity of 200 MW through a power purchase agreement.
Although PGE does not operate Wheatridge, it owns 40 turbines with a total nameplate capacity of 100 MW and purchases the output of the remaining turbines, with a nameplate capacity of 200 MW through a PPA. On January 5, 2024, substantial completion was achieved on the Clearwater wind energy facility, located in Eastern Montana.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIt is also possible that alternative generation or storage resources are mandated, subsidized, or encouraged through legislation or regulation or otherwise are economically competitive and added to the available generation supply. Competitors may not be subject to the same operating, regulatory and financial requirements that the Company is, 33 Table of Contents potentially causing a substantial competitive disadvantage for PGE.
Biggest changeIf all such costs are not recoverable in prices, PGE could experience material increases in its commodity costs, which could impact PGE’s results of operations, financial condition, or cash flows. 32 Table of Contents It is also possible that alternative generation or storage resources are mandated, subsidized, or encouraged through legislation or regulation or otherwise are economically competitive and added to the available generation supply.
Variations in temperatures can affect customer demand for electricity, with warmer-than-normal winter seasons or cooler-than-normal summer seasons reducing the demand for energy. Weather conditions are the dominant cause of usage variations from normal seasonal patterns, particularly for residential customers.
Variations in temperatures can affect customer demand for electricity, with warmer-than-normal winter seasons or cooler-than-normal summer seasons reducing demand for energy. Weather conditions are the dominant cause of usage variations from normal seasonal patterns, particularly for residential customers.
However, insurance is limited in scope and subject to exceptions, and may not be adequate to protect the Company against liability in all cases and insurers may dispute or be unable to perform their obligations to the Company, or may not be available at rates that are commercially reasonable.
However, insurance is limited in scope and subject to exceptions, and may not be adequate to protect the Company against liability in all cases. Insurers may dispute or be unable to perform their obligations to the Company, or may not be available at rates that are commercially reasonable.
OPUC regulates the prices that PGE charges, which is a major factor in determining the Company’s operating income, financial position, liquidity, and credit ratings.
The OPUC regulates the prices that PGE charges, which is a major factor in determining the Company’s operating income, financial position, liquidity, and credit ratings.
These events may disrupt energy delivery, cause power outages, or impair the use of, and damage, the Company’s facilities and transmission and distribution system. Such events could result in a reduction in revenue and an increase in additional costs to restore service, repair facilities, purchase power and fuel to serve PGE load, and procure insurance related to such impacts.
These events may disrupt energy delivery, cause power outages, or impair the use of, and damage, the Company’s facilities and transmission and distribution system. Such events could result in a reduction in revenue and an increase in additional costs to restore service, repair facilities, purchase power and fuel to serve PGE load requirements, and procure insurance related to such impacts.
Inability to fully recover such costs in future prices could have a negative impact on the Company’s results of operations, as well as a reduction in renewable energy credits and loss of PTCs related to wind generating resources.
Inability to fully recover such costs in future prices could have a negative impact on the Company’s results of operations, as well as a reduction in renewable energy credits (RECs) and loss of PTCs related to wind generating resources.
In addition, such decreases can require that PGE make additional payments to satisfy its obligations under these plans. 31 Table of Contents The volatility of market prices for power and natural gas could adversely affect PGE’s costs and ability to manage its energy supply, which could negatively impact the Company’s liquidity and results of operations.
In addition, such decreases can require that PGE make additional payments to satisfy its obligations under these plans. 30 Table of Contents The volatility of market prices for power and natural gas could adversely affect PGE’s costs and ability to manage its energy supply, which could negatively impact the Company’s liquidity and results of operations.
The construction of new facilities and the modifications or replacements of existing facilities is subject to risks that could result in the disallowance of certain costs for recovery in customer prices or higher operating costs. Long-term increases in both the number of customers and demand for energy will require continued expansion and upgrade of PGE’s generation, transmission, and distribution systems.
The construction of new facilities and the modifications or replacements of existing facilities are subject to risks that could result in the disallowance of certain costs for recovery in customer prices or higher operating costs. Long-term increases in both the number of customers and demand for energy will require continued expansion and upgrade of PGE’s generation, transmission, and distribution systems.
Capital investment and operating expenses related to this risk may not be recoverable through increases in customer prices. Cybersecurity attacks, data security breaches, physical attacks and security breaches, acts of terrorism, or other similar events could disrupt PGE’s operations, require significant expenditures, or result in claims against the Company.
Capital investment and operating expenses related to this risk may not be recoverable through increases in customer prices or insurance proceeds. Cybersecurity attacks, data security breaches, physical attacks and security breaches, acts of terrorism, or other similar events could disrupt PGE’s operations, require significant expenditures, or result in claims against the Company.
The electricity industry is undergoing significant change, including increased deployment of distributed energy resources, technological advancements as described above, and political and regulatory developments. Electric utilities are experiencing increasing deployment of distributed energy resources, such as solar generation, energy storage, energy efficiency and demand response technologies. The deployment of these technologies supports PGE’s decarbonization goals.
The electricity industry is undergoing significant change, including increased deployment of distributed energy resources, technological advancements as described above, and political and regulatory developments. Electric utilities are experiencing increasing deployment of distributed energy resources, such as solar generation, energy storage, electric vehicles and demand response technologies. The deployment of these technologies supports PGE’s decarbonization goals.
The operation of electric generation, transmission, and distribution infrastructure involves inherent risks, including breakdown or failure of equipment, motor vehicle accidents, fires involving the utility’s equipment, dam failure at company-owned hydroelectric facilities, public and worker safety, human contact with energized equipment, and operator error.
The operation of electric generation, transmission, battery storage, and distribution infrastructure involves inherent risks, including breakdown or failure of equipment, motor vehicle accidents, fires involving the utility’s equipment, dam failure at company-owned hydroelectric facilities, public and worker safety, human contact with energized equipment, and operator error.
Under the Indenture of Mortgage and Deed of Trust, dated July 1, 1945, as amended and supplemented to date, between PGE and Wells Fargo Bank, National Association, so long as any of the first mortgage bonds are outstanding, the Company may not pay or declare dividends (other than stock dividends) on common stock or purchase or retire for a consideration (other than in exchange for other shares of PGE’s capital stock or the proceeds from the sale of other shares of capital stock) any shares of capital stock of any class, if the aggregate amount distributed or expended after December 31, 1944 would exceed the aggregate amount of PGE’s net income, as adjusted, available for dividends on common stock accumulated after December 31, 1944.
Under the Indenture of Mortgage and Deed of Trust, dated July 1, 1945, as amended and supplemented to date, between PGE and Wells Fargo Bank, National Association, so long as any of the First Mortgage Bonds (FMBs) are outstanding, the Company may not pay or declare dividends (other than stock dividends) on common stock or purchase or retire for a consideration (other than in exchange for other shares of PGE’s capital stock or the proceeds from the sale of other shares of capital stock) any shares of capital stock of any class, if the aggregate amount distributed or expended after December 31, 1944 would exceed the aggregate amount of PGE’s net income, as adjusted, available for 29 Table of Contents dividends on common stock accumulated after December 31, 1944.
Unfavorable wind conditions could require increased reliance on power from the Company’s 32 Table of Contents thermal generating resources or power purchases in the wholesale market, both of which could have an adverse effect on results of operations.
Unfavorable wind conditions could require increased reliance on power from the Company’s 31 Table of Contents thermal generating resources or power purchases in the wholesale market, both of which could have an adverse effect on results of operations.
PGE is subject to various environmental laws, regulations, and other standards including federal, state and local environmental statutes, rules and regulations relating to air quality, water quality and usage, soil quality, emissions of greenhouse gases (GHG) such as carbon dioxide, waste management, hazardous wastes, fish, avian and other wildlife mortality and habitat protection, historical artifact preservation, natural resources, health, and safety.
PGE is subject to various environmental laws, regulations, and other standards including federal, state, and local environmental statutes, rules and regulations relating to air quality, water quality and usage, soil quality, GHG emissions such as carbon dioxide, waste management, hazardous wastes, fish, avian and other wildlife mortality and habitat protection, historical artifact preservation, natural resources, health, and safety.
Although the Company cannot currently estimate the effect of future laws and regulations on its results of operations, financial condition, or cash flows, the costs of compliance with such legislation or regulations could be material. Changes in tax laws may have an adverse impact on the Company’s financial position, results of operations, and cash flows.
Although the Company cannot currently estimate the effect of future laws and regulations on its results of operations, financial condition, or cash flows, the costs of compliance with such legislation or regulations could be material. Changes in federal laws and programs may have an adverse impact on the Company’s financial position, results of operations, and cash flows.
PGE continuously seeks to maintain a robust program of security and controls, but the impact of a physical or material information technology event could have a material adverse effect on the Company’s competitive position, reputation, results of operations, financial condition and cash flows.
PGE continuously seeks to maintain a robust program of security and controls, but the impact of a physical or material information technology 24 Table of Contents event could have a material adverse effect on the Company’s competitive position, reputation, results of operations, financial condition and cash flows.
Changes to the listing of various plants and species of fish, birds, and other wildlife as threatened or endangered could result 28 Table of Contents in increased mitigation activities, which could have a material impact on PGE’s financial condition and results of operations.
Changes to the listing of various plants and species of fish, birds, and other wildlife as threatened or endangered could result in increased mitigation activities, which could have a material impact on PGE’s financial condition and results of operations.
Weather-related events could also cause system constraints or disrupt transmission flows, resulting in decreased reliability for customers. Severe weather may also require increased PGE personnel availability, which could result in increased operating expenses as well as increased safety risk. In certain instances, PGE relies on mutual aid support to assist in the recovery from severe weather.
Weather-related events could also cause system constraints or disrupt transmission flows, resulting in decreased reliability for customers. Severe weather may also require 23 Table of Contents increased PGE personnel availability, which could result in increased operating expenses as well as increased safety risk. In certain instances, PGE relies on mutual aid support to assist in the recovery from severe weather.
A cyber-attack may cause large-scale disruption to the U.S. bulk power system or PGE operations and could target the Company’s computer systems, software, or networks to achieve such disruption. Generation, transmission, and distribution facilities, in general, have been identified as potential targets of physical or cyber-attacks.
A cyber-attack may cause large-scale disruption to the U.S. bulk power system or PGE operations and could target the Company’s computer systems, software, or networks to achieve such disruption. Generation, transmission, and distribution facilities, in general, have been identified as potential targets of physical or cyber-attacks. Employees could also be potential targets of both physical or cyber attacks.
Compliance with such laws and regulations could, among other things, prevent or delay the development of power generation and transmission and distribution facilities, restrict output of facilities, limit the use of fuels required for power generation, require additional pollution control equipment, require investment in non-emitting resources, and otherwise increase costs and increase capital expenditures.
Compliance with such laws and regulations could, among other things, prevent or delay the development of power generation and transmission and distribution facilities, restrict output of facilities, limit the use of fuels required for power generation, require additional pollution control equipment, require investment in non-emitting resources, force early retirement of assets, and otherwise increase costs and increase capital expenditures.
The Company cannot predict with certainty the future course 27 Table of Contents of such changes or the ultimate effect that they might have on its business, and such changes could delay or adversely affect business planning and transactions and substantially increase the Company’s costs.
The Company cannot predict with certainty the future course of such changes or the ultimate effect that they might have on its business, and such changes could delay or adversely affect business planning and transactions and substantially increase the Company’s costs.
PGE is also required to file Integrated Resource Plans with the OPUC that detail the Company’s plan to meet the future energy and capacity needs of its customers through a least-cost, least-risk combination of energy generation and demand reduction, while also aggressively reducing GHG emissions from the power supply.
PGE is also required to file IRPs with the OPUC that detail the Company’s plan to meet the future energy and capacity needs of its customers through a least-cost, least-risk combination of energy generation and demand reduction, while also aggressively reducing GHG emissions from the power supply.
Wildfires of greater size and prevalence, such as those of a magnitude seen in Oregon in recent years, could negatively affect public safety, the resilience of the electric grid, customers’ demand for power and PGE’s ability and cost to procure adequate power and fuel supplies to provide reliable service to its customers, PGE’s ability to access the wholesale energy market, PGE’s ability to operate its generating facilities and transmission and 24 Table of Contents distribution systems, PGE’s costs to maintain, repair, and replace such facilities and systems, and recovery of costs.
Wildfires of greater size and prevalence, such as those of a magnitude seen in Oregon in recent years, could negatively affect public safety, the resilience of the electric grid, customers’ demand for power and PGE’s ability and cost to procure adequate power and fuel supplies to provide reliable service to its customers, PGE’s ability to access the wholesale energy market, PGE’s ability to operate its generating facilities and transmission and distribution systems, PGE’s costs to maintain, repair, and replace such facilities and systems, and PGE’s ability to recover these additional costs.
Customer demand could also be negatively impacted by PGE’s ability to attract and retain customers, mandated energy efficiency measures, demand side management programs, potential formation of community choice aggregation programs, distributed generation resources, and economic and demographic conditions, such as 29 Table of Contents population changes, job and income growth, new construction, new business formation and the overall level of economic activity.
Customer demand could also be negatively impacted by PGE’s ability to attract and retain customers, mandated energy efficiency measures, demand side management programs, potential formation of community choice aggregation programs, distributed generation resources and small scale generation projects, and economic and demographic conditions, such as population changes, job and income growth, new construction, new business formation and the overall level of economic activity.
A new mechanism, the Reliability Contingency Event (RCE), which, like the PCAM, allows for cost sharing and deferral of certain costs for specific events, was introduced through the 2024 General Rate Case,. This mechanism expires at the end of 2025.
A new mechanism, the Reliability Contingency Event (RCE), which, like the PCAM, allows for cost sharing and deferral of certain costs for specific events, was introduced through the 2024 GRC. This mechanism expires at the end of 2025.
PGE has exposure to natural and human-caused disasters and other risks, including, but not limited to, a pandemic such as COVID-19, earthquake, accidents, equipment failure, acts of terrorism, acts of vandalism, computer system outages and other events.
PGE has exposure to natural and human-caused disasters and other risks, including, but not limited to, a pandemic, earthquake, accidents, equipment failure, acts of terrorism, acts of vandalism, computer system outages, and other events.
Construction of new facilities and modifications or replacements of existing facilities could be affected by factors such as unanticipated delays and cost increases, including supply chain disruption and cost inflation, availability of skilled workforce, increases in interest rates, failure of counterparties to perform under agreements, and the failure to obtain, or delay in obtaining, necessary permits from state or federal agencies or tribal entities.
Construction of new facilities and modifications or replacements of existing facilities could be affected by factors such as unanticipated delays and cost increases, including supply chain disruption and cost inflation, availability of a skilled workforce, increases in 25 Table of Contents interest rates, failure of counterparties to perform under agreements, ability to build or secure transmission, and the failure to obtain, or delay in obtaining, necessary permits from state or federal agencies or tribal entities.
The final resolution of certain matters in which PGE is involved could result in disallowance of operating expenses previously deferred or could require that the Company incur expenditures over an extended period and in a range of amounts that could have an adverse effect on its cash flows and results of operations.
The final resolution of certain matters in which PGE is involved could result in disallowance of capital and operating expenses previously deferred, increased litigation, changes to established regulatory procedures or could require that the Company incur expenditures over an extended period and in a range of amounts that could have an adverse effect on its cash flows and results of operations.
If the capacity provided by the Company’s generating facilities and purchased power is not adequate to meet customers’ energy demands, PGE may be required to purchase more power from third parties, invest in acquiring additional generating or battery storage facilities, or invest in extending the operating life of existing generating assets.
If the capacity provided by the Company’s generating facilities and purchased power is not adequate to meet customers’ energy demands, PGE may be required to purchase more power from third parties, which may not come from non-emitting resources, invest in acquiring additional generating or battery storage facilities, or invest in extending the operating life of existing generating assets, which could increase GHG emissions.
In the normal course of business, PGE collects, processes, and retains sensitive and confidential customer and employee information, as well as proprietary business information, and operates systems that directly impact the availability of electric power and the transmission of electric power in its service territory.
In the normal course of business, PGE collects, processes, and retains sensitive and confidential customer and employee information, as well as proprietary business information, and operates systems that directly impact the availability and transmission of electric power in its service territory. PGE owns and operates generation, transmission, distribution, and other facilities that depend on information technology systems.
A significant change in real estate values could adversely affect PGE’s results of operations. PGE also owns unregulated properties that are currently or previously leased to third parties and located adjacent to PGE’s T.W. Sullivan hydro generating facility. PGE has recorded a non-utility asset retirement obligation (ARO) for this site related to assets that are no longer in service.
PGE also owns unregulated properties that are currently or previously leased to third parties and located adjacent to PGE’s T.W. Sullivan hydro generating facility. PGE has recorded a non-utility asset retirement obligation (ARO) for this site related to assets that are no longer in service.
The capacity provided by the Company’s generating resources and third-party purchased power may not be sufficient to meet its customers’ energy demand requirements. PGE meets its customers’ energy demand requirements based on capacity obtained from its generating facilities and third-party power purchase agreements.
The capacity provided by the Company’s generating resources and third-party purchased power may not be sufficient to meet its customers’ energy demand requirements and may result in increased GHG emissions. PGE meets its customers’ energy demand requirements based on capacity obtained from its generating facilities and third-party PPAs.
PGE owns and operates generation, transmission, distribution, and other facilities that depend on information technology systems. The Company is exposed to, and may be adversely affected by, interruptions to its computer and information technology systems and sophisticated cyber-attacks. As with most companies, PGE has experienced attempts to breach the Company’s systems and other similar incidents.
The Company is exposed to, and may be adversely affected by, interruptions to its computer and information technology systems and sophisticated cyber-attacks. As with most companies, PGE has experienced attempts to breach the Company’s systems and other similar incidents.
At December 31, 2023, $401 million of accumulated net income was available for payment of dividends under this provision. 30 Table of Contents Adverse changes in PGE’s credit ratings could negatively affect its access to the capital markets and its cost of borrowed funds.
At December 31, 2024, $402 million of accumulated net income, as defined in the Indenture, was available for payment of dividends under this provision. Adverse changes in PGE’s credit ratings could negatively affect its access to the capital markets and its cost of borrowed funds.
Economic conditions could also result in an increased level of uncollectible customer accounts and cause the Company’s vendors and service providers to experience cash flow problems and be unable to perform under existing or future contracts.
Economic conditions could also result in an increased level of uncollectible customer accounts and cause the Company’s vendors and service providers to experience cash flow problems and be unable to perform under existing or future contracts and could result in investment in assets to accommodate higher load that are no longer needed.
Volatility of interest rates could negatively impact PGE’s cost of debt and results of operations. In addition, contractual commitments and regulatory requirements may limit the Company’s ability to delay or terminate certain projects.
The Company expects to issue debt and equity securities, as necessary, to fund its future capital requirements. Volatility of interest rates could negatively impact PGE’s cost of debt and results of operations. In addition, contractual commitments and regulatory requirements may limit the Company’s ability to delay or terminate certain projects.
Unfavorable economic conditions in Oregon, such as, for example, increased inflation, may result in reduced demand for electricity and impair the financial stability of PGE’s customers. Such reductions in demand could adversely affect PGE’s results of operations and cash flows.
PGE has experienced load growth in recent years, and projects a significant amount of growth in the future. Unfavorable economic conditions in Oregon, such as, for example, increased inflation, may result in reduced demand for electricity and impair the financial stability of PGE’s customers. Such reductions in demand could adversely affect PGE’s results of operations and cash flows.
Delays and cost increases could result in failure to complete the projects or the abandonment of capital projects, which could eliminate or impair PGE’s ability to recover related costs in the rate determination process.
Supply chain disruption could be exacerbated by government tariffs as well as inflation. Delays and cost increases could result in failure to complete the projects or the abandonment of capital projects, which could eliminate or impair PGE’s ability to recover related costs in the rate determination process.
Similarly, the terms of resolution could require the Company to change its business practices and procedures, which could also have an adverse effect on its cash flows, financial position, or results of operations. New laws, changes in legal precedent, or novel interpretations of existing regulations could also result in adverse effects on cash flows and results of operations.
Similarly, the terms of resolution could require the Company to change its business practices and procedures, which could also have an adverse effect on its cash flows, financial position, or results of operations.
Workforce management risks include the risk of retaining key employees, turnover due to demographic challenges as employees approach retirement age, and turnover due to macroeconomic trends such as the impacts of inflation on pensions and other retirement funding. PGE faces competition for employees within the industry and in local geographies.
Workforce management risks include the risk of retaining key employees or attracting and retaining employees skilled in new energy technologies, turnover due to demographic challenges as certain employees approach retirement age, and turnover due to macroeconomic trends such as the impacts of inflation on pensions and other retirement funding.
Regulators may deny recovery of costs it considers imprudently incurred. Although the OPUC is required to establish customer prices that are fair, just, and reasonable, it has significant discretion in the interpretation of this standard. PGE attempts to manage its costs at levels consistent with OPUC-approved prices.
Although the OPUC is required to establish customer prices that are fair, just, and reasonable, it has significant discretion in the interpretation of this standard. The Company’s cost recovery proceedings may not authorize sufficient revenues, or the actual costs could exceed its authorized or forecasted costs. PGE attempts to manage its costs at levels consistent with OPUC-approved prices.
Such events, if repeated or prolonged, can also affect customer satisfaction and the level of regulatory oversight. 25 Table of Contents 26 Table of Contents Electric utility operations may pose risk to public and workers’ safety.
Such events, if repeated or prolonged, can also affect customer satisfaction and the level of regulatory oversight. Electric utility operations may pose risk to workers, the public, and property, and may have adverse impacts on the environment.
PGE makes judgments and interpretations about the application of tax law when determining the provision for taxes. Such judgments include the timing and probability of recognition of income, deductions, and tax credits, which are subject to challenge by taxing authorities.
Such judgments include the timing and probability of recognition of income, deductions, and tax credits, which are subject to challenge by taxing authorities.
A variety of operating and economic parameters, including adverse weather conditions and equipment reliability, could significantly reduce the PTCs generated by the Company’s wind facilities resulting in a material adverse impact on PGE’s financial condition and results of operations. These PTCs generate tax credit carryforwards that the Company plans to utilize in the future to reduce income tax obligations.
The amount of PTCs earned depends on the level of electricity output generated and the applicable tax credit rate. A variety of operating and economic parameters, including adverse weather conditions and equipment reliability, could significantly reduce the PTCs generated by the Company’s wind facilities resulting in a material adverse impact on PGE’s financial condition and results of operations.
Any such actions could have a material adverse effect on the Company’s financial condition and results of operations and could cause fluctuations in the trading prices of its common stock based on market perceptions or other factors.
Any such actions could have a material adverse effect on the Company’s financial condition and results of operations and could cause fluctuations in the trading prices of its common stock based on market perceptions or other factors. 33 Table of Contents PGE’s business activities are concentrated in one region and future performance may be affected by events and factors unique to Oregon or the region.
Such a development could limit the Company’s future growth opportunities and limit growth in demand for PGE’s electric service. Changes in market conditions and environmental laws and regulations could negatively impact PGE’s non-utility real estate investments. PGE owns, through a wholly owned subsidiary, its corporate headquarters building located in Portland, Oregon.
Changes in market conditions and environmental laws and regulations could negatively impact PGE’s non-utility real estate investments. PGE owns, through a wholly owned subsidiary, its corporate headquarters building located in Portland, Oregon. A significant change in real estate values could adversely affect PGE’s results of operations.
Increased customer prices could further reduce customer demand for electricity and strain PGE’s ability to attract and retain customers. The loss of customers, the inability to replace those customers with new customers, and the decrease in demand for electricity could negatively impact PGE’s financial condition and results of operations.
The loss of customers, the inability to replace those customers with new customers, and the decrease in demand for electricity could negatively impact PGE’s financial condition and results of operations. 28 Table of Contents Concerns about high prices for PGE’s customers could negatively impact PGE’s financial condition, results of operations, liquidity, and cash flows.
If PGE cannot generate enough taxable income in the future to utilize all of the tax credit carryforwards before the credits expire, the Company may incur material charges to earnings. The Inflation Reduction Act of 2022 allows for the sale or transfer of renewable tax credits to other taxpayers.
These PTCs generate tax credit carryforwards that the Company plans to utilize in the future to reduce income tax obligations. If PGE cannot generate enough taxable income in the future to utilize all of the tax credit carryforwards before the credits expire, the Company may incur material charges to earnings.
There are certain pending legal and regulatory proceedings that may have an adverse effect on results of operations and cash flows for future reporting periods.
New laws, changes in legal precedent, or novel interpretations of existing regulations could also result in adverse effects on cash flows and results of operations. 26 Table of Contents There are certain pending legal and regulatory proceedings that may have an adverse effect on results of operations and cash flows for future reporting periods.
The Company has sold and plans to continue to sell tax credits. PGE’s inability to generate, transfer, or sell these credits could have a material impact on results of operations. ECONOMIC, FINANCIAL, AND MARKET RISKS A decrease in customer demand for electricity may negatively impact PGE’s business.
The Inflation Reduction Act of 2022 allows for the sale or transfer of renewable tax credits to other taxpayers. The Company has sold and plans to continue to sell tax credits. PGE’s inability to generate, transfer, or sell these credits could have a material impact on results of operations.
These concentrations may also 34 Table of Contents increase exposure to credit and operational risks due to counterparties, suppliers, and customers being similarly affected by changing conditions. ITEM 1B. UNRESOLVED STAFF COMMENTS. None.
The Company’s industry and geographic concentrations may increase exposure to risks arising from regional regulation or legislation, such as legislative action related to carbon emissions. These concentrations may also increase exposure to credit and operational risks due to counterparties, suppliers, and customers being similarly affected by changing conditions. ITEM 1B. UNRESOLVED STAFF COMMENTS. None.
Additionally, treatment of tax benefits and costs for ratemaking purposes could be different than what the Company anticipates or requests from the State regulatory commission, which could have a negative effect on the Company’s financial condition and results of operations.
Additionally, treatment of tax benefits and costs for ratemaking purposes could be different than what the Company anticipates or requests from the OPUC, which could have a negative effect on the Company’s financial condition and results of operations. 27 Table of Contents PGE owns and operates renewable generating facilities and battery storage facilities, which generate federal production tax credits (PTCs) and investment tax credits (ITCs) that PGE uses to reduce its federal tax obligations.
Capital and credit market conditions could adversely affect the Company’s access to capital, cost of capital, and ability to execute its strategic plan. Access to capital and credit markets is important to PGE’s ability to operate. The Company expects to issue debt and equity securities, as necessary, to fund its future capital requirements.
PGE’s level of authorized capital investment could decline as well, resulting in a slower growth in rate base and earnings. Capital and credit market conditions could adversely affect the Company’s access to capital, cost of capital, and ability to execute its strategic plan. Access to capital and credit markets is important to PGE’s ability to operate.
Changes in public policy, such as new tax incentives that PGE cannot take advantage of or efforts to deregulate the utility industry, could provide an advantage to competitors. Such alternative resources and regulatory or legislative actions could displace higher marginal cost generating units or make PGE less competitive in constructing, owning, and operating such facilities.
Competitors may not be subject to the same operating, regulatory and financial requirements that the Company is, potentially causing a substantial competitive disadvantage for PGE. Changes in public policy, such as new tax incentives that PGE cannot take advantage of or efforts to deregulate the utility industry, could provide an advantage to competitors.
Additionally, the cost of implementing and complying with such ESG programs could be material. Actions of activist shareholders could have a negative impact on PGE’s business.
If efforts around diversity, equity and inclusion are perceived to be insufficient or overdone, PGE may not be able to attract or retain talent, and may be subject to investigations, litigation, and other proceedings. Additionally, the cost of implementing and complying with such ESG programs could be material. Actions of activist shareholders could have a negative impact on PGE’s business.
These matters are subject to many uncertainties, the ultimate outcome of which management cannot predict.
These matters are subject to many uncertainties and involve many different parties with sometimes conflicting interests, which can increase regulatory scrutiny. Therefore, management cannot predict with certainty the ultimate outcome of any proceeding.
Removed
PGE owns and operates renewable generating facilities and will own battery storage facilities, which generate federal production tax credits (PTCs) and investment tax credits (ITCs) that PGE uses to reduce its federal tax obligations. The amount of PTCs earned depends on the level of electricity output generated and the applicable tax credit rate.
Added
While PGE has wildfire mitigation programs in place, PGE may not be able to effectively implement its wildfire mitigation initiatives or wildfire mitigation initiatives may not be successful or effective in preventing or reducing wildfire-related losses.
Removed
Increased distributed energy resources and renewable energy resources will require new and sustained investments in grid modernization and transmission. If all such costs are not recoverable in rates, PGE could experience material increases in its commodity costs, which could impact PGE’s results of operations, financial condition, or cash flows.
Added
Any turnover will require that the Company attract, train, and retain skilled workers to prevent loss of institutional knowledge or skills gaps. PGE faces competition for employees within the industry and in local geographies.
Removed
PGE’s business activities are concentrated in one region and future performance may be affected by events and factors unique to Oregon or the region. The Company’s industry and geographic concentrations may increase exposure to risks arising from regional regulation or legislation, such as legislative action related to carbon emissions.
Added
Prices paid by customers are impacted by commodity prices, costs and capital investments, particularly investments made to meet increased customer demand and meet the state’s clean energy goals. Regulators may deny recovery of costs it considers imprudently incurred.
Added
Changes in federal laws and programs, either through executive order or legislation, including to tax laws and federal grant programs, may have an adverse impact on the Company’s financial position, results of operations and cash flows. PGE makes judgments and interpretations about the application of tax law when determining the provision for taxes.
Added
PGE’s results of operations may be also be materially impacted by indemnification obligations to buyers of certain tax credits. These obligations cover potential losses resulting from PGE’s failure to meet PTC and ITC qualifications or transferability requirements under the Internal Revenue Code.
Added
While PGE is not responsible for losses due to the buyer's actions, legal tax status, or changes in tax law, any other circumstances leading to indemnification could significantly affect the Company's results of operations.
Added
PGE participates in a federal grant program established for the modernization of energy infrastructure through the Infrastructure Investment and Jobs Act (IIJA), and some PGE customers receive funds through the CHIPS act to support the domestic production of semiconductors and various federal science agencies.
Added
Failure to continue these programs, or revocation of grants or funds allocated through these programs could impact the ability to continue to make certain infrastructure investments, or could result in the customers’ demand forecast being lower than anticipated, resulting in stranded assets. ECONOMIC, FINANCIAL, AND MARKET RISKS A change in forecasted customer demand for electricity may negatively impact PGE’s business.
Added
Significant growth may result in PGE’s inability to generate or procure enough energy to meet customer demand.
Added
Increased customer prices could further reduce customer demand for electricity and strain PGE’s ability to attract and retain customers.
Added
Prices paid by customers are impacted by commodity prices, operating costs and capital investments. PGE’s capital investment plan, increasing procurement of renewable power and energy storage, and the cumulative impact of other public policy requirements place continuing upward pressure on customers’ prices.
Added
Concerns about affordability could cause the regulators to approve lesser amounts in PGE’s ratemaking or cost recovery proceedings, as recently occurred in PGE’s 2025 General Rate Case (2025 GRC) proceeding at the OPUC. Regulators may authorize, and have in the past authorized, lower revenues than PGE requested, which could impact the Company’s ability to timely recover its operating costs.
Added
PGE may be unable to effectively adapt to evolving technologies, may invest in technologies that ultimately prove ineffective, and employees and customers may be unable to adapt to technologies needed to advance decarbonization goals, such as demand response programs at scale.
Added
Increased distributed energy resources and renewable energy resources will require new and sustained investments in grid modernization and transmission, and may require the use of traditional generation to provide additional capacity at peak times.
Added
Such alternative resources and regulatory or legislative actions could displace higher marginal cost generating units or make PGE less competitive in constructing, owning, and operating such facilities. Such a development could limit the Company’s future growth opportunities and limit growth in demand for PGE’s electric service.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

9 edited+2 added−2 removed6 unchanged
Biggest changeITEM 1C. CYBERSECURITY. PGE considers cybersecurity to be a top enterprise risk and manages the risk by following established practices for assessment, protection, response, and oversight. As a utility with critical infrastructure, both cyber and physical security will continue to be an important consideration for the Company’s future strategy and operations.
Biggest changeAs a utility with critical infrastructure, both cyber and physical security will continue to be an important consideration for the Company’s future strategy and operations. The Company maintains a cybersecurity program, overseen by a cross-functional executive committee, that uses a risk-based methodology to support the security of its systems.
In addition, as a top enterprise risk, cybersecurity is also reviewed by the Company’s management-level Executive 35 Table of Contents Risk Committee on an annual basis, or more frequently if circumstances warrant. This broader review allows the cybersecurity risk and mitigations to be aligned with other enterprise risks, including identifying areas of overlap.
In addition, as a top enterprise risk, cybersecurity is also reviewed by the Company’s management-level Executive Risk Committee on an annual basis, or more frequently if circumstances warrant. This broader review allows the cybersecurity risk and mitigations to be aligned with other enterprise risks, including identifying areas of overlap.
PGE manages third party cybersecurity risk by conducting due diligence to identify risks from third parties; requiring review and approval before onboarding a third party. Any third party that fails to meet our security requirements is subjected to additional risk screenings. PGE may decide not to move forward with a vendor that does not meet security requirements.
PGE manages third party cybersecurity risk by conducting due diligence to identify risks from third parties; requiring review and approval before onboarding a third party. Any third party that fails to meet the Company’s security requirements is subjected to additional risk screenings. PGE may decide not to move forward with a vendor that does not meet security requirements.
In addition, the full Board of Directors has participated in cybersecurity exercises. The Audit and Risk Committee is also provided with information about external assessment results and action plans. There is a process in place to notify the Audit and Risk Committee promptly in the event of a material cybersecurity incident.
In addition, the full Board of Directors has 34 Table of Contents participated in cybersecurity exercises. The Audit and Risk Committee is also provided with information about external assessment results and action plans. There is a process in place to notify the Audit and Risk Committee promptly in the event of a material cybersecurity incident.
PGE has a threat intelligence function to stay abreast of emerging cybersecurity threats. The Company’s threat identification process begins with the development of an inventory of critical enterprise processes and critical assets, which allows the Company to prioritize focus in the event of a threat.
PGE has a threat intelligence and insider risk program to stay abreast of emerging cybersecurity threats. The Company’s threat identification process begins with the development of an inventory of critical enterprise processes and critical assets, which allows the Company to prioritize focus in the event of a threat.
The Company conducts monthly phishing campaigns in which employees are expected to report suspicious emails. If employees click on the training phishing email, they are provided immediate feedback on how to avoid phishing, in addition to being required to complete additional training. Quarterly security awareness is provided to all employees and focuses on cyber and physical security best practices.
The Company also has procured cybersecurity insurance. All employees are required to take annual cybersecurity awareness training. The Company conducts monthly phishing campaigns in which employees are expected to report suspicious emails. If employees click on the training phishing email, they are provided immediate feedback on how to avoid phishing, in addition to being required to complete additional training.
PGE also has procured cybersecurity insurance. Cybersecurity is a top enterprise risk in PGE’s enterprise risk management program. An enterprise-wide management group operates to evaluate the cybersecurity program’s effectiveness. The Company has an employee who functions as a Chief Security Officer, whose responsibilities include cybersecurity and who has a reporting relationship to senior management.
The NIST Cybersecurity Framework provides the foundation for a comprehensive view of the lifecycle for managing cybersecurity risk. An enterprise-wide management group operates to evaluate the cybersecurity program’s effectiveness. The Company has an employee who functions as a Chief Security Officer, whose responsibilities include cybersecurity and who has a reporting relationship to senior management.
The Company maintains a cybersecurity program, overseen by a cross-functional executive committee, that uses a risk-based methodology to support the security of its systems. Additional information about cybersecurity risks and the potential impact to the Company can be found in Item 1A.—“Risk Factors.” The Company has not experienced a material cybersecurity incident.
Additional information about cybersecurity risks and the potential impact to the Company can be found in Item 1A.—“Risk Factors.” The Company has not experienced a material cybersecurity incident. PGE utilizes the cybersecurity framework established by the National Institute of Standard and Technology (NIST) to manage cybersecurity risk.
PGE’s Security Operations Center detects unauthorized entities and actions on the networks and in the physical environment, including personnel activity. Processes are tested regularly, through reviews, audits, and periodic exercises. PGE engages a third party to attempt to penetrate its systems periodically. The Company also uses a separate third party to conduct an assessment of its cybersecurity program maturity.
PGE’s Security Operations Center detects unauthorized entities and actions on the networks and in the physical environment, including personnel activity. Processes are tested regularly, through reviews, audits, and assessments. In addition, cyber security resiliency is enhanced through regular functional and tabletop exercises.
Removed
PGE utilizes the cybersecurity framework established by the National Institute of Standard and Technology (NIST) to manage cybersecurity risk. The NIST Cybersecurity Framework provides the foundation for a comprehensive view of the lifecycle for managing cybersecurity risk. All employees are required to take annual cybersecurity awareness training.
Added
ITEM 1C. CYBERSECURITY. PGE considers cybersecurity to be a top enterprise risk in PGE’s enterprise risk management program, and manages the risk by adhering to established security policies and governance, identifying risk through risk assessments, utilizing technology to provide a layered security approach, controlling access, robust security awareness training and conducting resiliency exercises.
Removed
These assessments allow PGE to upgrade processes and mitigate gaps regularly, rather than having a static program. As a NERC registered entity, PGE is audited triennially by WECC on cybersecurity practices. The most recent audit concluded in 2023.
Added
Quarterly security awareness is provided to all employees and focuses on cyber and physical security best practices. PGE engages a third party to attempt to penetrate its systems periodically. These assessments support a continuous improvement initiative, ensuring ongoing enhancements to security posture. As a NERC registered entity, PGE is audited triennially by WECC on cybersecurity practices.

Item 2. Properties

Properties — owned and leased real estate

7 edited+1 added−2 removed5 unchanged
Biggest changeThis additional wind capacity is not reflected in the table above. 37 Table of Contents Transmission and Distribution PGE owns or has contractual rights associated with transmission lines that deliver electricity from its generation facilities to its distribution system in its service territory and also to the Western Interconnection.
Biggest changeThe licenses for the hydroelectric projects on the three different rivers expire as follows: Clackamas River, 2055; Willamette River, 2035; and Deschutes River, 2055. 36 Table of Contents Energy Storage Facilities The following are energy storage facilities owned by PGE as of December 31, 2024 (in MW): Facility Location Capacity Constable BESS Washington County, Oregon 75 Coffee Creek BESS Washington County, Oregon 17 Other BESS facilities Various 8 Total Energy Storage Capacity 100 Transmission and Distribution PGE owns or has contractual rights associated with transmission lines that deliver electricity from its generation facilities to its distribution system in its service territory and also to the Western Interconnection.
As of December 31, 2023, the non-utility property, plant, and equipment balance, net of accumulated depreciation was $75 million, recorded in Other noncurrent assets on the Company’s consolidated balance sheets in Item 8. — “Financial Statements and Supplementary Data.” PGE also owns unregulated properties that are currently or previously leased to third parties and located adjacent to PGE’s T.W.
As of December 31, 2024, the non-utility property, plant, and equipment balance, net of accumulated depreciation was $73 million, recorded in Other noncurrent assets on the Company’s consolidated balance sheets in Item 8. — “Financial Statements and Supplementary Data.” PGE also owns unregulated properties that are currently or previously leased to third parties and located adjacent to PGE’s T.W.
(3) Represents nameplate ratings. A generator’s nameplate rating is its full-load capacity under normal operating conditions as defined by the manufacturer. (4) Represents most favorable operating conditions which refers to the set of optimal circumstances under which a power plant or energy generation system can achieve its maximum output capacity efficiently and reliably.
A generator’s nameplate rating is its full-load capacity under normal operating conditions as defined by the manufacturer. (3) Represents most favorable operating conditions which refers to the set of optimal circumstances under which a power plant or energy generation system can achieve its maximum output capacity efficiently and reliably. (4) Represents PGE’s ownership share.
Sullivan Willamette River 18 Jointly-owned (2) : Coal: Colstrip (5) Colstrip, Montana 296 Hydro (4) : Round Butte (6) Deschutes River 187 Pelton (6) Deschutes River 57 Capacity 3,356 (1) Represents net capacity of generating unit as demonstrated by actual operating or test experience, net of electricity used in the operation of a given facility. (2) Represents PGE’s ownership share.
Sullivan Willamette River 18 Jointly-owned (4) : Coal: Colstrip (5) Colstrip, Montana 296 Hydro (3) : Round Butte (6) Deschutes River 187 Pelton (6) Deschutes River 57 Capacity 3,570 (1) Represents net capacity of generating unit as demonstrated by actual operating or test experience, net of electricity used in the operation of a given facility. (2) Represents nameplate ratings.
The Indenture securing the Company’s First Mortgage Bonds (FMBs) constitutes a direct first mortgage lien on substantially all utility property and franchises, other than expressly excepted property. 36 Table of Contents Generating Facilities The following are generating facilities owned by PGE as of December 31, 2023 (in MW): Facility Location Capacity Wholly-owned: Natural Gas or Oil (1) : Beaver Clatskanie, Oregon 511 Carty Boardman, Oregon 436 Port Westward Unit 1 (PW1) Clatskanie, Oregon 393 Coyote Springs Boardman, Oregon 257 Port Westward Unit 2 (PW2) (2) Clatskanie, Oregon 214 Wind (3) : Biglow Canyon Sherman County, Oregon 450 Tucannon River Columbia County, Washington 267 Wheatridge Morrow County, Oregon 100 Hydro (4) : North Fork Clackamas River 56 Faraday Clackamas River 46 Oak Grove Clackamas River 43 River Mill Clackamas River 25 T.W.
The Indenture securing the Company’s FMBs constitutes a direct first mortgage lien on substantially all utility property and franchises, other than expressly excepted property. 35 Table of Contents Generating Facilities The following are generating facilities owned by PGE as of December 31, 2024 (in MW): Facility Location Capacity Wholly-owned: Natural Gas or Oil (1) : Beaver Clatskanie, Oregon 513 Carty Boardman, Oregon 426 Port Westward Unit 1 Clatskanie, Oregon 403 Coyote Springs Boardman, Oregon 257 Port Westward Unit 2 Clatskanie, Oregon 219 Wind (2) : Biglow Canyon Sherman County, Oregon 450 Tucannon River Columbia County, Washington 267 Clearwater Custer County, Montana 208 Wheatridge Morrow County, Oregon 100 Hydro (3) : North Fork Clackamas River 56 Faraday Clackamas River 46 Oak Grove Clackamas River 42 River Mill Clackamas River 25 T.W.
As of December 31, 2023, PGE-owned electric transmission system consisted of 1,254 circuit miles as follows: 287 circuit miles of 500 kV line; 413 circuit miles of 230 kV line; and 554 miles of 115 kV line. The Company also has 28,868 circuit miles of distribution lines that deliver electricity to its customers.
As of December 31, 2024, PGE-owned electric transmission system consisted of 1,269 circuit miles as follows: 287 circuit miles of 500 kV line; 418 circuit miles of 230 kV line; and 564 miles of 115 kV line. The Company also has 29,398 circuit miles of distribution lines that deliver electricity to its customers.
The Northwest AC Intertie is used primarily for the transmission of interstate purchases and sales of electricity among utilities, including PGE. In addition, the Company has contractual rights to a total of 3,970 MW of BPA transmission systems. Non-utility Real Estate PGE owns, through a wholly owned subsidiary, its corporate headquarters building located in Portland, Oregon.
The Northwest AC Intertie is used primarily for the transmission of interstate purchases and sales of electricity among utilities, including PGE. In addition, the Company has contractual rights to a total of 4,150 MW of BPA’s transmission systems, and 300 MW of Northwestern Energy’s transmission systems.
Removed
The licenses for the hydroelectric projects on the three different rivers expire as follows: Clackamas River, 2055; Willamette River, 2035; and Deschutes River, 2055.
Added
Non-utility Real Estate PGE owns, through a wholly owned subsidiary, its corporate headquarters building located in Portland, Oregon.
Removed
PGE and NextEra Energy Resources, LLC, a subsidiary of NextEra Energy, Inc. have entered into agreements to construct a 311 MW wind energy facility, which will be part of the larger Clearwater Wind development in Eastern Montana. Substantial completion of the project was achieved on January 5, 2024. PGE will own 208 MW of production capacity in these agreements.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

2 edited+0 added−0 removed2 unchanged
Biggest changeITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. PGE’s common stock is traded on the NYSE under the ticker symbol “POR”. As of February 8, 2024, there were 694 holders of record of PGE’s common stock.
Biggest changeITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. PGE’s common stock is traded under the ticker symbol “POR” on the NYSE. As of February 7, 2025, there were 1,175 holders of record of PGE’s common stock.
The amount of any dividend declaration will depend upon factors that the Board of Directors deems relevant and may include, but are not limited to, PGE’s 38 Table of Contents results of operations and financial condition, future capital expenditures and investments, and applicable regulatory and contractual restrictions.
The amount of any dividend declaration will depend upon factors that the Board of Directors deems relevant and may include, but are not limited to, PGE’s results of operations and financial condition, future capital expenditures and investments, and applicable regulatory and contractual restrictions.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

153 edited+102 added−74 removed68 unchanged
Biggest changeThe following items contributed to the increase in Actual NVPC for the year ended December 31, 2023 compared to the year ended December 31, 2022 (in millions): Year ended December 31, 2022 $ 626 Purchased power and fuel expense 187 Wholesale revenues (55) 2021 PCAM deferral amortization 15 Year ended December 31, 2023 773 Change in NVPC $ 147 For further information regarding NVPC in relation to the PCAM, see “Power operations” in the Overview section of this Item 7. 60 Table of Contents Generation, transmission and distribution expense increased $26 million or 7% for the year ended December 31, 2023 compared to the year ended December 31, 2022, with the change attributed largely to the following items (in millions): Year ended December 31, 2022 $ 348 Amortizations of previously deferred 2020 wildfire and 2021 ice storm costs 18 Higher vegetation management, inspection, wildfire mitigation, and distribution maintenance expenses 15 Increase in generation facility maintenance expenses driven by major maintenance activities and increased run hours 13 Lower service restoration and storm response costs (7) Release of deferred amounts pursuant to earnings test in 2022 (16) Miscellaneous expenses 3 Year ended December 31, 2023 374 Change in Generation, transmission and distribution $ 26 Administrative and other expense increased $1 million for the year ended December 31, 2023 compared to the year ended December 31, 2022 due largely to the following items (in millions): Year ended December 31, 2022 $ 340 Amortization of COVID-19 bad debt expense deferral 9 Regulatory program amortization 3 Lower employee compensation and benefits expenses (4) Lower professional service expenses (8) Miscellaneous expenses 1 Year ended December 31, 2023 341 Change in Administrative and other $ 1 PGE commenced amortization of previously deferred COVID-19 related bad debt expenses on April 1, 2023.
Biggest changeGeneration, transmission and distribution expense increased $62 million or 17% for the year ended December 31, 2024 compared to the year ended December 31, 2023, with the change attributed largely to the following items (in millions): Year ended December 31, 2023 $ 374 Vegetation management, inspection, wildfire mitigation, and distribution maintenance expenses 33 Generation facility maintenance expenses driven by major maintenance activities and increased run hours 31 Service restoration and storm response costs (5) Miscellaneous expenses 3 Year ended December 31, 2024 436 Change in Generation, transmission and distribution $ 62 In the table above, $24 million related to vegetation management, $5 million related to wildfire mitigation, and $4 million related to major maintenance have been offset through customer prices or specific regulatory mechanisms.
In 2017, Oregon’s most populous city, Portland, and most populous county, Multnomah, each passed resolutions to achieve 100 percent clean and renewable electricity by 2035 and 100 percent economy-wide clean and renewable energy by 2050. Other jurisdictions in PGE’s service area have similar goals and continue to consider similar goals for the future.
In 2017, Oregon’s most populous city, Portland, and most populous county, Multnomah, each passed resolutions to achieve 100% clean and renewable electricity by 2035 and 100% economy-wide clean and renewable energy by 2050. Other jurisdictions in PGE’s service area have similar goals and continue to consider similar goals for the future.
Power operations —PGE utilizes a combination of its own generating resources and wholesale market transactions to meet the energy needs of, and obtain reasonably-priced power for, its retail customers, manage risk, and administer its long-term wholesale contracts.
Power operations —PGE utilizes a combination of its own generating and energy storage resources and wholesale market transactions to meet the energy needs of, and obtain reasonably-priced power for, its retail customers, manage risk, and administer its long-term wholesale contracts.
Throughout the remainder of 2023, PGE refreshed its forecasts, first in an Addendum filed July 7, 2023 then several times in subsequent comments in the CEP and IRP docket with the OPUC (LC 80).
Throughout the remainder of 2023, PGE refreshed its forecasts, first in an Addendum filed in July 2023 then several times in subsequent comments in the CEP and IRP docket with the OPUC (LC 80).
As of December 31, 2023, significant uncertainties still remained concerning the precise requirements for clean-up, the assignment of responsibility for clean-up costs, the final selection of a proposed remedy by the EPA, and the method of allocation of costs amongst PRPs. It is probable that PGE will share in a portion of these costs.
As of December 31, 2024, significant uncertainties still remained concerning the precise requirements for clean-up, the assignment of responsibility for clean-up costs, the final selection of a proposed remedy by the EPA, and the method of allocation of costs amongst PRPs. It is probable that PGE will share in a portion of these costs.
In addition to any assumptions and other factors and matters referred to specifically in connection with forward-looking statements, factors that could cause actual results or outcomes for PGE to differ materially from those discussed in such forward-looking statements include: • governmental policies, legislative action, and regulatory audits, investigations and actions, including those of the FERC, the OPUC, the SEC, and the Division of Enforcement of the Commodity Futures Trading Commission (CFTC) with respect to allowed rates of return, financings, electricity pricing and price structures, acquisition and disposal of facilities and other assets, construction and operation of plant facilities, transmission of electricity, recovery of power costs, operating expenses, deferrals, timely recovery of costs, and capital investments, energy trading activities, and current or prospective wholesale and retail competition; • economic conditions that result in decreased demand for electricity, reduced revenue from sales of excess energy during periods of low wholesale market prices, impaired financial stability of vendors and service providers and elevated levels of uncollectible customer accounts; • inflation and volatility in interest rates; • changing customer expectations and choices that may reduce customer demand for PGE’s services may impact the Company’s ability to make and recover its investments through rates and earn its authorized return on equity, including the impact of growing distributed and renewable generation resources, changing customer demand for enhanced electric services, and an increasing risk that customers procure electricity from registered ESSs or the adoption of community choice aggregation; • the timing or outcome of legal and regulatory proceedings and issues including, but not limited to, the matters described in Regulatory Matters of the “Overview” in this Item 7. and Note 19, Contingencies in the 39 Table of Contents Notes to Consolidated Financial Statements in Item 8.— “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K; • natural or human-caused disasters and other risks, including, but not limited to, earthquake, flood, ice, drought, extreme heat, lightning, wind, fire, accidents, equipment failure, acts of terrorism, computer system outages and other events that disrupt PGE operations, damage PGE facilities and systems, cause the release of harmful materials, cause fires, and subject the Company to liability; • unseasonable or severe weather and other natural phenomena, such as the greater size and prevalence of wildfires in Oregon in recent years, which could affect public safety, customers’ demand for power and PGE’s ability and cost to procure adequate power and fuel supplies to serve its customers, access the wholesale energy market, or operate its generating facilities and transmission and distribution systems, and the Company’s costs to maintain, repair, and replace such facilities and systems, and recovery of costs; • PGE’s ability to effectively implement a PSPS and de-energize its system in the event of heightened wildfire risk or implement effective system hardening programs, the inability of which could lead to potential liability if energized systems are involved in wildfires that cause harm, as well as the risk that damages from wildfires may not be recoverable through rates or insurance, resulting in impact to the financial condition or reputation of the Company; • operational factors affecting PGE’s power generating facilities and battery storage facilities, including forced outages, fires, unscheduled delays, hydro and wind conditions, and disruption of fuel supply, any of which may cause the Company to incur repair costs or purchase replacement power at increased costs; • default or nonperformance on the part of any parties from whom PGE purchases fuel, capacity, or energy, which may cause the Company to incur costs to purchase replacement power and related renewable attributes at increased costs; • complications arising from PGE’s jointly-owned plant, including changes in ownership, adverse regulatory outcomes or legislative actions, or operational failures that result in legal or environmental liabilities or unanticipated costs related to replacement power or repair costs; • delays in the supply chain and increased supply costs, failure to complete capital projects on schedule or within budget, inability to complete negotiations on contracts for capital projects, failure of counterparties to perform under agreements, or the abandonment of capital projects, any of which could result in the Company’s inability to recover project costs, or impact PGE’s competitive position, market share, or results of operations in a material way; • volatility in wholesale power and natural gas prices, including but not limited to volatility caused by macroeconomic and international issues, that could require PGE to post additional collateral or issue additional letters of credit pursuant to power and natural gas purchase agreements; • changes in the availability and price of wholesale power and fuels, including natural gas and coal, and the impact of such changes on the Company’s power costs; • capital market conditions, including availability of capital, volatility of interest rates, reductions in demand for investment-grade commercial paper, volatility of equity markets as well as changes in PGE’s credit ratings, any of which could have an impact on the Company’s cost of capital and its ability to access the capital markets to support requirements for working capital, construction of capital projects, the repayments of maturing debt, and stock-based compensation plans, which are relied upon in part to retain key executives and employees; • future laws, regulations, and proceedings that could increase the Company’s costs of operating its thermal generating plants, or affect the operations of such plants by imposing requirements for additional emissions controls or significant emissions fees or taxes, particularly with respect to coal-fired generating facilities, in order to mitigate carbon dioxide, mercury, and other gas emissions; • changes in, and compliance with, environmental laws and policies, including those related to threatened and endangered species, fish, and wildlife; 40 Table of Contents • the effects of climate change, whether global or local in nature, including unseasonable or extreme weather and other natural phenomena that may affect energy costs or consumption, increase the Company’s costs, cause damage to PGE facilities and system, or adversely affect its operations; • changes in residential, commercial, or industrial customer growth, or demographic patterns, including changes in load resulting in future transmission constraints, in PGE’s service territory; • the effectiveness of PGE’s risk management policies and procedures; • cybersecurity attacks, data security breaches, physical attacks and security breaches, or other malicious acts that cause damage to the Company’s generation, transmission, or distribution facilities, information technology systems, inhibit the capability of equipment or systems to function as designed or expected, or result in the release of confidential customer, vendor, employee, or Company information; • employee workforce factors, including potential strikes, work stoppages, transitions in senior management, the ability to recruit and retain key employees and other talent, and turnover due to macroeconomic trends such as voluntary resignation of large numbers of employees similar to that experienced by other employers and industries since the beginning of the COVID-19 pandemic; • new federal, state, and local laws that could have adverse effects on operating results; • failure to achieve the Company’s greenhouse gas emission goals or being perceived to have either failed to act responsibly with respect to the environment or effectively respond to legislative requirements concerning greenhouse gas emission reductions, any of which could lead to adverse publicity and have adverse effects on the Company's operations and/or damage the Company's reputation; • social attitudes regarding the electric utility and power industries; • political and economic conditions; • the impact of widespread health developments, and responses to such developments (such as voluntary and mandatory quarantines, including government stay at home orders, as well as shut downs and other restrictions on travel, commercial, social, and other activities), which could materially and adversely affect, among other things, demand for electric services, customers’ ability to pay, supply chains, personnel, contract counterparties, liquidity and financial markets; • changes in financial or regulatory accounting principles or policies imposed by governing bodies; • risks and uncertainties related to current or future All-Source RFP projects, including, but not limited to regulatory processes, transmission capabilities, system interconnections, inflationary impacts, supply chain constraints, supply cost increases (including application of tariffs impacting solar module imports), permitting and construction delays, and legislative uncertainty; and • acts of war or terrorism.
In addition to any assumptions and other factors and matters referred to specifically in connection with forward-looking statements, factors that could cause actual results or outcomes for PGE to differ materially from those discussed in such forward-looking statements include: • governmental policies, legislative action, and regulatory audits, investigations and actions, including those of the FERC, the OPUC, the SEC, the Division of Enforcement of the Commodity Futures Trading Commission, the EPA, and the ODEQ with respect to allowed rates of return, financings, electricity pricing and price structures, acquisition and disposal of facilities and other assets, construction and operation of 38 Table of Contents plant facilities, transmission of electricity, recovery of power costs, operating expenses, deferrals, timely recovery of costs, and capital investments, energy trading activities, and current or prospective wholesale and retail competition; • uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers, and the ability to obtain regulatory approvals, environmental, and other permits to construct new facilities in a timely manner; • economic conditions that result in decreased demand for electricity, reduced revenue from sales of excess energy during periods of low wholesale market prices, impaired financial stability of vendors and service providers and elevated levels of uncollectible customer accounts; • inflation and volatility in interest rates; • changing customer expectations and choices that may reduce customer demand for PGE’s services may impact the Company’s ability to make and recover its investments through rates and earn its authorized return on equity, including the impact of growing distributed and renewable generation resources, changing customer demand for enhanced electric services, and an increasing risk that customers procure electricity from registered ESSs or the adoption of community choice aggregation; • the timing or outcome of legal and regulatory proceedings and issues including, but not limited to, the matters described in Regulatory Matters of the “Overview” in this Item 7. and Note 19, Contingencies in the Notes to Consolidated Financial Statements in Item 8.— “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K; • natural or human-caused disasters and other risks, including, but not limited to, earthquake, flood, ice, drought, extreme heat, lightning, wind, fire, accidents, equipment failure, acts of terrorism, computer system outages and other events that disrupt PGE operations, damage PGE facilities and systems, cause the release of harmful materials, cause fires, and subject the Company to liability; • unseasonable or severe weather and other natural phenomena, such as the greater size and prevalence of wildfires in Oregon in recent years, which could affect public safety, customers’ demand for power and PGE’s financial health and ability and cost to procure adequate power and fuel supplies to serve its customers, access the wholesale energy market, or operate its generating facilities and transmission and distribution systems, and the Company’s costs to maintain, repair, and replace such facilities and systems, and recovery of costs; • ignitions caused by PGE assets or PGE’s ability to effectively implement a PSPS and de-energize its system in the event of heightened wildfire risk or implement effective system hardening programs, the inability of which could lead to potential liability if energized systems are involved in wildfires that cause harm, as well as the risk that damages from wildfires may not be recoverable through prices or insurance, resulting in impact to the financial condition or reputation of the Company; • operational factors affecting PGE’s power generating and battery storage facilities, including forced outages, fires, unscheduled delays, environmental impacts, hydro and wind conditions, and disruption of fuel supply, any of which may cause the Company to incur repair costs or purchase replacement power at increased costs; • default or nonperformance on the part of any parties from whom PGE purchases fuel, capacity, or energy, which may cause the Company to incur costs to purchase replacement power and related renewable attributes at increased costs; • complications arising from PGE’s jointly-owned plant, including changes in ownership, adverse regulatory outcomes or legislative actions, or operational failures that result in legal or environmental liabilities or unanticipated costs related to replacement power, repair costs, or abandoned costs; • delays in the supply chain and increased supply costs, failure to complete capital projects on schedule or within budget, failure to obtain permits, inability to complete negotiations on contracts for capital projects, failure of counterparties to perform under agreements, or the abandonment of capital projects, any of which 39 Table of Contents could result in the Company’s inability to recover project costs, or impact PGE’s competitive position, market share, or results of operations in a material way; • volatility in wholesale power and natural gas prices, including but not limited to volatility caused by macroeconomic and international issues, that could require PGE to post additional collateral or issue additional letters of credit pursuant to power and natural gas purchase agreements; • changes in the availability and price of wholesale power and fuels, including natural gas and coal, and the impact of such changes on the Company’s power costs; • capital market conditions, including availability of capital, volatility of interest rates, reductions in demand for investment-grade commercial paper, volatility of equity markets as well as changes in PGE’s credit ratings, any of which could have an impact on the Company’s cost of capital and its ability to access the capital markets to support requirements for working capital, construction of capital projects, the repayments of maturing debt, and stock-based compensation plans, which are relied upon in part to retain key executives and employees; • future laws, regulations, and proceedings that could increase the Company’s costs of operating its thermal generating plants, or affect the operations of such plants by imposing requirements for additional emissions controls or significant emissions fees or taxes, particularly with respect to coal-fired generating facilities, in order to mitigate carbon dioxide, mercury, and other gas emissions; • changes in, and compliance with, environmental laws and policies, including those related to threatened and endangered species, fish, and wildlife; • the effects of climate change, whether global or local in nature, including unseasonable or extreme weather and other natural phenomena that may affect energy costs or consumption, increase the Company’s costs, cause damage to PGE facilities and system, or adversely affect its operations; • changes in residential, commercial, or industrial customer growth, or demographic patterns, including changes in load resulting in future transmission constraints, in PGE’s service territory; • the effectiveness of PGE’s risk management policies and procedures; • cybersecurity attacks, data security breaches, physical attacks and security breaches, or other malicious acts, internally or to third parties, that cause damage to the Company’s generation, transmission, or distribution facilities, information technology systems, inhibit the capability of equipment or systems to function as designed or expected, or result in the release of confidential customer, vendor, employee, or Company information; • physical attacks upon Company employees; • employee workforce factors, including potential strikes, work stoppages, transitions in senior management, the ability to recruit and retain key employees and other talent, and turnover due to macroeconomic trends such as voluntary resignation of large numbers of employees similar to that experienced by other employers and industries during the COVID-19 pandemic; • new federal, state, and local laws that could have adverse effects on operating results; • failure to achieve the Company’s GHG emission goals or being perceived to have either failed to act responsibly with respect to the environment or effectively respond to legislative requirements concerning GHG emission reductions, any of which could lead to adverse publicity and have adverse effects on the Company's operations and/or damage the Company's reputation; • social attitudes regarding the electric utility and power industries; • political and economic conditions; • the impact of widespread health developments, and responses to such developments (such as voluntary and mandatory quarantines, including government stay at home orders, as well as shut downs and other restrictions on travel, commercial, social, and other activities), which could materially and adversely affect, 40 Table of Contents among other things, demand for electric services, customers’ ability to pay, supply chains, personnel, contract counterparties, liquidity and financial markets; • changes in financial or regulatory accounting principles or policies imposed by governing bodies; • risks and uncertainties related to current or future All-Source RFP projects, including, but not limited to regulatory processes, transmission capabilities, system interconnections, inflationary impacts, supply chain constraints, supply cost increases (including application of tariffs), permitting and construction delays, and legislative uncertainty; and • acts of war, terrorism, or civil disruption.
The DSP outlines distribution system assets, describes how the Company plans for new load including distributed resources such as electric vehicles (EVs) and Solar Photovoltaic installations, and presents the vision for modernizing the grid to enable accelerated decarbonization and customer participation in meeting PGE’s clean energy goals.
The DSP outlines distribution system assets, describes how the Company plans for new load, including distributed resources such as EVs and Solar Photovoltaic installations, and presents the vision for modernizing the grid to enable accelerated decarbonization and customer participation in meeting PGE’s clean energy goals.
Empowering customers and communities —PGE’s customers have a desire for purchasing clean energy, as over 233 thousand residential and small commercial customers voluntarily participate in PGE’s Green Future Program, the largest renewable power program by participation in the nation.
Empowering customers and communities —PGE’s customers have a desire for purchasing clean energy, as over 230 thousand residential and small commercial customers voluntarily participate in PGE’s Green Future Program, the largest renewable power program by participation in the nation.
PGE generates revenues and cash flows primarily from the sale and distribution of electricity to its retail customers in Oregon. The impact of seasonal weather conditions on demand for electricity can cause the Company’s revenues, cash flows, and income from operations to fluctuate from period to period.
PGE generates revenues and cash flows primarily from the sale and distribution of electricity to its retail customers. The impact of seasonal weather conditions on demand for electricity can cause the Company’s revenues, cash flows, and income from operations to fluctuate from period to period.
For additional information regarding contractual obligations, see Note 16, Commitments and Guarantees, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Cash Flows from Investing Activities —Cash flows used in investing activities consist primarily of capital expenditures related to new construction and improvements to PGE’s generation, transmission, and distribution facilities.
For additional information regarding contractual obligations, see Note 16, Commitments and Guarantees, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Cash Flows from Investing Activities —Cash flows used in investing activities consist primarily of capital expenditures related to new construction and improvements to PGE’s generation, transmission, and distribution 65 Table of Contents facilities.
PGE plans to fund the 2024 capital expenditures with cash from operations during 2024, as discussed above, as well as with the issuance of debt, issuances of shares pursuant to the at the market offering program, and short-term debt as necessary.
PGE plans to fund the 2025 capital expenditures with cash from operations during 2025, as discussed above, as well as with the issuance of debt, issuances of shares pursuant to the at-the-market offering program, and short-term debt as necessary.
Although PGE continues to apply for additional grants, the Company cannot predict the ultimate timing and success of securing funding from federal programs. Inflation Reduction Act of 2022 —The Inflation Reduction Act of 2022 (IRA) was signed into law in August 2022 with a majority of the provisions effective for tax years beginning after December 31, 2022.
Although PGE continues to apply for additional grants, the Company cannot predict the ultimate timing and success of securing funding from federal programs. 47 Table of Contents Inflation Reduction Act of 2022 —The Inflation Reduction Act of 2022 (IRA) was signed into law in August 2022 with a majority of the provisions effective for tax years beginning after December 31, 2022.
The following table presents the number of heating and cooling degree-days in 2023 and 2022, along with the current 15-year averages, reflecting the influence that weather had on comparative energy deliveries.
The following table presents the number of heating and cooling degree-days in 2024 and 2023, along with the current 15-year averages, reflecting the influence that weather had on comparative energy deliveries.
However, the OPUC declined to acknowledge the CEP, directing the Company to provide additional forecast of its emission reductions based on new analysis in the CEP/IRP Update to be filed in January 2025.
However, the OPUC declined to acknowledge the CEP, directing the Company to provide additional forecast of its emission reductions based on new analysis in the CEP/IRP Update to be filed in April 2025.
The Company plans for $1.3 billion of capital expenditures in 2024 related to upgrades to and replacement of generation, transmission, and distribution infrastructure as well as costs related to BESS projects.
The Company plans for $1.3 billion of capital expenditures in 2025 related to upgrades to and replacement of generation, transmission, and distribution infrastructure as well as costs related to BESS projects.
PGE filed the draft 2023 All-Source RFP with the OPUC on May 19, 2023 and regulatory approval was granted in January 2024. The Company issued the RFP to market on February 2, 2024, seeking bids for resources that can provide non-emitting dispatchable capacity and renewable generation.
PGE filed the draft 2023 All-Source RFP with the OPUC in May 2023 and regulatory approval was granted in January 2024. The Company issued the 2023 All-Source RFP to market in February 2024, seeking bids for resources that can provide non-emitting dispatchable capacity and renewable generation.
The Company projects that retail energy deliveries for 2024 will be between 2% and 3% above 2023 weather-adjusted levels, reflecting continued growth in industrial deliveries. ESSs supplied Direct Access customers with energy representing 11% of PGE’s total retail energy deliveries during 2023 and 2022.
The Company projects that retail energy deliveries for 2025 will be between 2.5% and 3.5% above 2024 weather-adjusted levels, reflecting continued growth in industrial deliveries. ESSs supplied Direct Access customers with energy representing 11% of PGE’s total retail energy deliveries during 2024 and 2023.
Debt and Equity Financings PGE’s ability to secure sufficient short- and long-term capital at a reasonable cost is determined by its financial performance and outlook, credit ratings, capital expenditure requirements, alternatives available to investors, market conditions, and other factors, such as the volatility in the capital markets in response to inflationary pressures and 65 Table of Contents interest rate increases by the federal reserve.
Debt and Equity Financings PGE’s ability to secure sufficient short- and long-term capital at a reasonable cost is determined by its financial performance and outlook, credit ratings, capital expenditure requirements, alternatives available to investors, market conditions, and other factors, such as the volatility in the capital markets in response to inflationary pressures and interest rate increases by the federal reserve.
The facility allows for unlimited extension requests, provided that lenders with a pro-rata share of more than 50% of the facility approve the extension request. The revolving credit facility supplements operating cash flows and provides a primary source of liquidity.
The facility allows for unlimited extension requests, provided that lenders with a pro-rata share of more than 50% of the facility approve the extension request. The revolving credit facility supplements operating 67 Table of Contents cash flows and provides a primary source of liquidity.
Energy expected to be received from hydroelectric resources is projected annually in the AUT based on a modified hydro study, which utilizes 80 years of historical stream flow data. For further detail on regional hydro results, see “Purchased power and fuel” in the Results of Operations section in this Item 7.
Energy expected to be received from hydroelectric resources in 2024 was projected in the AUT based on a modified hydro study, which utilizes 80 years of historical stream flow data. For further detail on regional hydro results, see “Purchased power and fuel” in the Results of Operations section in this Item 7.
(2) P GE has four letter of credit facilities under which the Company can request letters of credit for an original term not to exceed one year. As of December 31, 2023, PGE had a $750 million unsecured revolving credit facility scheduled to expire in September 2028.
(2) P GE has four letter of credit facilities under which the Company can request letters of credit for an original term not to exceed one year. As of December 31, 2024, PGE had a $750 million unsecured revolving credit facility scheduled to expire in September 2029.
The actual timing and amount of any other issuances of debt or commercial paper will be dependent upon the timing and amount of capital expenditures. For a discussion concerning PGE’s ability to fund its future capital requirements, see “ Debt and Equity Financings ” in the Liquidity and Capital Resources section of this Item 7.
The actual timing and amount of any such issuances of debt, equity, and commercial paper will be dependent upon the timing and amount of capital expenditures and debt payments. For a discussion concerning PGE’s ability to fund its future capital requirements, see “ Debt and Equity Financings ” in the Liquidity and Capital Resources section of this Item 7.
For additional information on the EFSA, see Note 13, Equity-based Plans, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Capital Structure —PGE’s financial objectives include maintaining a common equity ratio (common equity to total consolidated capitalization, including current debt maturities and excluding lease obligations) of approximately 50% over time.
For additional information on the at-the-market offering program, see Note 13, Equity-based Plans, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Capital Structure —PGE’s financial objectives include maintaining a common equity ratio (common equity to total consolidated capitalization, including current debt maturities and excluding lease obligations) of approximately 50% over time.
As a result of the historic winter storm, Oregon’s Governor declared a state of emergency on January 18, 2024, which will allow PGE to seek recovery of incremental storm expenses through the previously filed emergency deferral.
As a result of the historic winter storm, Oregon’s Governor declared a state of emergency on January 18, 2024, which allows PGE to seek recovery of incremental storm expenses through the previously filed emergency deferral.
PGE typically classifies borrowings under the revolving credit facility and outstanding commercial paper as Short-term debt in the consolidated balance sheets. Under the revolving credit facility, as of December 31, 2023, PGE had no borrowings, and no letters of credit issued.
PGE typically classifies borrowings under the revolving credit facility and outstanding commercial paper as Short-term debt in the consolidated balance sheets. Under the revolving credit facility, as of December 31, 2024, PGE had no borrowings or commercial paper outstanding, and no letters of credit issued.
Portland Harbor Environmental Remediation Account (PHERA) mechanism — The EPA has listed PGE as one of over one hundred Potentially Responsible Parties (PRPs) related to the remediation of the Portland Harbor 50 Table of Contents Superfund site.
Portland Harbor Environmental Remediation Account (PHERA) mechanism — The EPA has listed PGE as one of over one hundred Potentially Responsible Parties (PRPs) related to the remediation of the Portland Harbor Superfund site.
With the passage of HB 2021, PGE created a Clean Energy Plan (CEP), which articulates the Company’s strategy to meet the 2030, 2035, and 2040 emission reduction targets through an equitable transition to a decarbonized grid. The CEP is based on, and was filed in connection with, the Company’s 2023 IRP.
With the passage of HB 2021, PGE created a Clean Energy Plan (CEP), which articulates the Company’s strategy to meet the 42 Table of Contents 2030, 2035, and 2040 emission reduction targets through an equitable transition to a decarbonized grid. The CEP is based on, and was filed in connection with, the Company’s 2023 Integrated Resource Plan (IRP).
As approved by the OPUC, the 2023 AUT included a final increase in power costs for 2023, and a corresponding increase in annual revenue requirement of $186 million from 2022 levels, which were reflected in customer prices effective January 1, 2023.
As approved by the OPUC, the 2024 AUT included a final increase in power costs for 2024, and a corresponding increase in annual revenue requirement of $216 million from 2023 levels, which were reflected in customer prices effective January 1, 2024.
PGE estimates that on December 31, 2023, under the most restrictive issuance test in the Indenture of Mortgage and Deed of Trust, the Company could have issued up to $602 million of additional FMBs.
PGE estimates that on December 31, 2024, under the most restrictive issuance test in the Indenture of Mortgage and Deed of Trust, the Company could have issued up to $677 million of additional FMBs.
In 2021, the Oregon legislature enacted HB 2165, ensuring the OPUC has clear and broad authority to allow electric company investments in infrastructure to support transportation electrification. In 2023, PGE’s second Transportation Electrification (TE) plan was filed and accepted by the OPUC. The TE plan considers current and planned activities, along with EV forecasts and potential system impacts.
In 2021, the Oregon legislature enacted HB 2165, ensuring the OPUC has clear and broad authority to allow electric company investments in infrastructure to support TE. In 2023, PGE’s second TE plan was filed and accepted by the OPUC in October 2023. The TE plan considers current and planned activities, along with forecasted EV loads and potential system impacts.
Laws and Regulations Federal Grants —In November 2021, the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), which includes approximately $550 billion of new federal spending, was signed into law. PGE continues to pursue multiple areas under the IIJA, and other state and federal programs, for potential grant funding of projects.
Federal Grants —In November 2021, the $1.2 trillion IIJA, which includes approximately $550 billion of new federal spending, was signed into law. PGE continues to pursue multiple areas under the IIJA, and other state and federal programs, for potential grant funding of projects.
The Company has elected to limit its borrowings under the revolving credit facility to cover any potential need to repay commercial paper that may be outstanding at the time. As of December 31, 2023, PGE had $146 million of commercial paper outstanding.
The Company has elected to limit its borrowings under the revolving credit facility to cover any potential need to repay commercial paper that may be outstanding at the time. As of December 31, 2024, PGE had no commercial paper outstanding.
A final determination regarding the 2023 PCAM results will be made by the OPUC through a public filing and review in 2024. 55 Table of Contents • For 2022, actual NVPC was above baseline NVPC by $23 million, which was within the established deadband range. Accordingly, no estimated collection from customers was recorded as of December 31, 2022.
A final determination regarding the 2024 PCAM results will be made by the OPUC through a public filing and review in 2025. • For 2023, actual NVPC was above baseline NVPC by $5 million, which was within the established deadband range. Accordingly, no estimated collection from customers was recorded as of December 31, 2023.
PGE’s customer offerings related to energy efficiency and flexible load programs, rooftop solar, battery storage, and electric vehicle charging solutions support grid reliability and increase portfolio flexibility and resource diversity. These distributed energy resources are the foundation of PGE’s VPP that will provide a growing suite of grid and system services over time.
PGE’s customer offerings related to flexible load programs, rooftop solar, battery storage, and electric vehicle (EV) charging solutions support grid reliability and increase portfolio flexibility and resource diversity. These Distributed Energy Resources and flexible loads are the foundation of PGE’s VPP that increasingly provides a growing suite of grid and system services over time.
PGE’s credit facilities contain customary covenants and credit provisions, including a requirement that limits consolidated indebtedness, as defined in the credit agreements, to 65.0% of total capitalization (debt to total capital ratio). As of December 31, 2023, the Company’s debt to total capital ratio, as calculated under the credit agreements, was 56.2%.
PGE’s credit facilities contain customary covenants and credit provisions, including a requirement that limits consolidated indebtedness, as defined in the credit agreements, to 65.0% of total capitalization (debt to total capital ratio). As of December 31, 2024, the Company’s debt to total capital ratio, as calculated under the credit agreements, was 55.1%.
For more information regarding HB 2021 and the baseline to which the target reductions apply, see “HB 2021” in the Laws and Regulations section of this Overview.
For more information regarding HB 2021 and the baseline to which the target reductions apply, see “HB 2021” in the “Laws and Regulations” section of this Overview.
Capital expenditures in 2024 are expected to be approximately $1.3 billion.
Capital expenditures in 2025 are expected to be approximately $1.3 billion.
For additional information on contingencies, see Note 19, Contingencies, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.”
For additional information on contingencies, see Note 19, Contingencies in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” 70 Table of Contents
PGE filed its first combined IRP and CEP with the OPUC on March 31, 2023. That filing projects PGE’s resource and capacity needs over the next 20 years and proposes an Action Plan to meet near-term needs, subject to the new HB 2021 emissions reduction requirements.
PGE filed its first combined IRP and CEP with the OPUC in March 2023. That filing projected PGE’s resource and capacity needs over the next 20 years and proposed an Action Plan to meet near-term needs, subject to the new HB 2021 emissions reduction requirements.
PGE has elected to limit its borrowings under the revolving credit facility to cover any potential need to repay outstanding commercial paper. As of December 31, 2023, PGE had $146 million of commercial paper outstanding, therefore, the elected available credit c apacity is $604 million.
PGE has elected to limit its borrowings under the revolving credit facility to cover any potential need to repay outstanding commercial paper. As of December 31, 2024, PGE had no of commercial paper outstanding, therefore, the elected available credit c apacity is $750 million.
PGE has taken measures to enhance the availability of supply chain-constrained items that are needed to serve new and existing customers, such as advance ordering of critical materials, pre-securing manufacturing capacity with strategic partners, and evaluating availability with established and new suppliers.
PGE has taken measures to enhance the availability of supply chain-constrained items that are needed to serve new and existing customers, such as securing inventory of critical materials to improve reliability, reserving manufacturing capacity with strategic partners, and evaluating availability with established and new suppliers.
To achieve this goal the Company must execute effectively within its regulatory framework and maintain prudent management of key financial, regulatory, and environmental matters that may affect customer prices and investor returns. The following discussion provides detail on such matters.
To achieve this goal the Company must execute effectively within its regulatory framework and maintain prudent management of key financial, regulatory, and environmental matters that may affect customer prices and investor returns.
The increase was driven by a 5.9% growth in industrial deliveries, partially offset by a 0.2% decline in commercial energy deliveries and a 0.5% decrease in weather-adjusted deliveries to residential customers, as average use per customer has declined from the highs seen during the first two years of the COVID-19 pandemic.
The increase was driven by a 10.7% growth in industrial deliveries, and a 0.5% increase in weather-adjusted deliveries to residential customers, as average use per customer has declined from the highs seen during the COVID-19 pandemic, partially offset by a 0.9% decline in commercial energy deliveries.
Cash deposits provided as collateral are classified as Margin deposits in PGE’s consolidated balance sheets, while any letters of credit issued are not reflected in the Company’s consolidated balance sheets. As of December 31, 2023, PGE had posted $132 million of collateral with these counterparties, consisting of $92 million in cash and $40 million in bank letters of credit.
Cash deposits provided as collateral are classified as Margin deposits in PGE’s consolidated balance sheets, while any letters of credit issued are not reflected in the Company’s consolidated balance sheets. As of December 31, 2024, PGE had posted $143 million of collateral with these counterparties, consisting of $125 million in cash and $18 million in bank letters of credit.
PGE cannot predict the outcome of these proceedings or potential impact, if any, to its ongoing 2021 All-Source RFP process. 44 Table of Contents 2023 All-Source RFP PGE filed notice with the OPUC on January 31, 2023 that an RFP in 2023 was needed to procure resources to meet a forecasted 2026 capacity shortfall and to make continued progress toward decarbonization targets under HB 2021.
PGE cannot predict the outcome of these proceedings or potential impact, if any, on its 2021 and 2023 All-Source RFP process. 2025 All-Source RFP PGE filed notice with the OPUC in November 2024 that an RFP in 2025 was needed to procure resources to meet a forecasted 2029 capacity shortfall and to make continued progress toward decarbonization targets under HB 2021.
Customer prices can be adjusted annually to absorb a portion of the difference between the forecasted NVPC included in customer prices (baseline NVPC) and actual NVPC for the year, if such differences exceed a prescribed “deadband” limit, which ranges from $15 million below to $30 million above baseline NVPC.
Customer prices can be adjusted annually to absorb a portion of the difference between the forecasted NVPC included in customer prices (baseline NVPC, which is reset annually by means of the AUT filings) and actual NVPC for the 56 Table of Contents year, if such differences exceed a prescribed “deadband” limit, which ranges from $15 million below to $30 million above baseline NVPC.
Based on the Company’s energy portfolio, estimates of energy market prices, and the level of collateral outstanding as of December 31, 2023, the amount of additional collateral that could be requested upon a single agency downgrade to below investment grade is $76 million and decreases to $60 million by December 31, 2024 and $10 million by December 31, 2025.
Based on the Company’s energy portfolio, estimates of energy market prices, and the level of collateral outstanding as of December 31, 2024, the amount of additional collateral that could be requested upon a single agency downgrade to below investment grade is $92 million and increases to $94 million by December 31, 2025 and decreases to $44 million by December 31, 2026.
With this order, PGE would provide notice of an event that qualifies within 30 days of the declared state of emergency and would not need to seek OPUC approval to apply deferred accounting treatment for incremental costs related to the emergency.
Under this mechanism, PGE could provide notice of an event that qualifies within 30 days of the declared state of emergency and would not need to seek OPUC approval to apply deferred accounting treatment for incremental costs related to the emergency, subject to an earnings test.
PGE’s anticipated employer contributions for its defined benefit pension plan and other postretirement plans is $29 million in 2024, $24 million in 2025, 2026, and in 2027, and $23 million in 2028. Contributions are expected to be covered by cash provided by operations.
PGE’s anticipated employer contributions for its defined benefit pension plan and other postretirement plans is $24 million in 2025, $25 million in 2026, $22 million in 2027, $19 million in 2028, and $18 million in 2029. Contributions are expected to be covered by cash provided by operations.
RPS standards and other laws —In 2016, Oregon Senate Bill (SB) 1547 set a benchmark for the percentage of electricity that must come from renewable sources and required the elimination of coal as a fuel for generation of electricity used to serve Oregon utility customers no later than 2030.
RPS standards and related laws —In 2016, Oregon Senate Bill (SB) 1547 increased the 2007 benchmarks for the percentage of electricity that must come from renewable sources by dates certain and required the elimination of coal as a fuel for generation of electricity used to serve Oregon utility customers no later than 2030.
PGE plans to fund the 2024 capital expenditures with cash from operations during 2024, which is expected to range from $700 million to $800 million, the issuance of debt securities of up to $730 million, issuances of shares pursuant to the at the market offering program, and the issuance of commercial paper, as needed.
PGE plans to fund the 2025 capital expenditures with cash from operations during 2025, which is expected to range from $900 million to $1 billion, the issuance of debt securities of up to $550 million, issuances of shares pursuant to the at-the-market offering program, and the issuance of commercial paper, as needed.
Partly offsetting that increase was a $2 million decrease in average prices received when the Company sold power into the wholesale market. Elevated sales prices continued during 2023 and have resulted from several factors, including reduced hydro generation in the region, the economic recovery, strong demand, and ongoing capacity limitations in the region.
Partly offsetting the increase was a 27% decrease in average prices received when the Company sold power into the wholesale market. Elevated sales prices existed during 2023 and resulted from several factors, including reduced hydro generation in the region, the economic recovery, strong demand, and ongoing 59 Table of Contents capacity limitations in the region.
The 2024 WMP forecasts $45 million in operations and maintenance costs and an additional $43 to $49 million in capital investments to continue system hardening efforts, expand situational awareness capabilities, implement specific inspection and maintenance along with vegetation management, raise community and customer awareness, and take operational actions within high fire risk zones.
The 2025 WMP Update forecasts $53 to $57 million in operations and maintenance costs and an additional $57 to $78 million in capital investments, for the year ending 2025, to continue system hardening efforts, expand situational awareness capabilities, implement specific inspection and maintenance along with vegetation management, raise community and customer awareness, and take operational actions within high fire risk zones.
PGE currently estimates a total resource need of approximately 3,500 to 4,500 MW of renewable energy and non-emitting capacity in order to meet the Company’s 2030 emissions reduction target. Through the 2021 All-Source RFP, PGE procured 311 MW of wind resources and 475 MW of capacity, leaving a remaining need to procure approximately 2,700 to 3,700 MW.
PGE currently estimates a total resource need of approximately 3,500 to 4,500 MW of renewable energy and non-emitting capacity in order to make continual progress towards meeting the Company’s clean energy targets. Through the 2021 All-Source RFP, PGE procured 311 MW of wind resources and 475 MW of capacity, leaving a remaining need to procure approximately 2,700 to 3,700 MW.
Other provisions of SB 1547: • establish RPS thresholds of 27% by 2025, 35% by 2030, 45% by 2035, and 50% by 2040; • limit the life of renewable energy credits (RECs) generated from facilities that become operational after 2022 to five years, but continue unlimited lifespan for all existing RECs and allow for the generation of additional unlimited RECs for a period of five years for projects online before December 31, 2022; and • provide opportunity to pursue recovery of energy storage costs related to renewable energy in the Company’s RAC filings.
See “Investing in a Clean Energy Future” in this Overview for information regarding development in eastern Montana. 48 Table of Contents Other provisions of SB 1547: • establish RPS thresholds of 27% by 2025, 35% by 2030, 45% by 2035, and 50% by 2040, for the percentage of electricity that must come from renewable sources; • limit the life of RECs generated from facilities that become operational after 2022 to five years, but continue unlimited lifespan for all existing RECs and allow for the generation of additional unlimited RECs for a period of five years for projects online before December 31, 2022; and • provide opportunity to pursue recovery of energy storage costs related to renewable energy in the Company’s RAC filings.
For additional information on PGE’s regulatory assets and liabilities, see “ Regulatory Matters ” in the Overview section in this Item 7., and Note 7, Regulatory Assets and Liabilities in Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Asset Retirement Obligations PGE recognizes AROs for legal obligations related to dismantlement and restoration costs associated with the future retirement of tangible long-lived assets.
Discontinued application of regulatory accounting would have a material impact on the Company’s results of operations and financial position. 69 Table of Contents For additional information on PGE’s regulatory assets and liabilities, see “ Regulatory Matters ” in the Overview section in this Item 7., and Note 7, Regulatory Assets and Liabilities in Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Asset Retirement Obligations PGE recognizes AROs for legal obligations related to dismantlement and restoration costs associated with the future retirement of tangible long-lived assets.
Correspondingly, cooling degree-days, a similar indication of the extent to which customers were 53 Table of Contents likely to have used electricity for cooling, exceeded the 15-year average by 50%, although were only 4% above the 2022 total, illustrating that the two most recent summer seasons have been exceedingly warm compared to historical averages.
Correspondingly, cooling degree-days, a similar indication of the extent to which customers were likely to have used electricity for cooling, exceeded the 15-year average by 20%, although were 16% below the 2023 total, which was 43% above average, illustrating that the two most recent summer seasons have been exceedingly warm compared to historical averages.
For the year ended December 31, 2022, with OPUC approval, PGE is collecting $5 million in customer prices over a one-year period that began January 1, 2024. In the 2024 GRC filing, the Company included a concept proposal that could lead to resuming decoupling, with certain modifications.
For the year ended December 31, 2022, with OPUC approval, PGE collected $5 million in customer prices over a one-year period that began January 1, 2024. 52 Table of Contents In the 2024 GRC filing, the Company included a concept proposal that would have led to resuming decoupling, with certain modifications.
Cash provided by operations includes the recovery in customer prices of non-cash charges for depreciation and amortization. The Company estimates that such charges in 2024 will range from $475 million to $525 million. Combined with all other sources, cash provided by operations in 2024 is estimated to range from $700 million to $800 million.
Cash provided by operations includes the recovery in customer prices of non-cash charges for depreciation and amortization. The Company estimates that such charges in 2025 will range from $550 million to $575 million. Combined with all other sources, cash provided by operations in 2025 is estimated to range from $900 million to $1 billion.
Severe weather —In recent years, PGE’s territory has experienced unprecedented heat, historic ice and snowstorms, and wildfires. On January 13, 2024, the Company’s service territory encountered the first of a series of severe winter weather events, including snow, ice, and high winds that caused catastrophic damage to physical assets and resulted in widespread customer power outages.
Beginning January 13, 2024, the Company’s service territory encountered the first of a series of severe winter weather events, including snow, ice, and high winds that caused catastrophic damage to physical assets and resulted in widespread customer power outages.
The RAC allows PGE to recover prudently incurred costs of renewable resources through filings made each year, outside of a GRC. Under the RAC, during 2023, the Company submitted a filing for Clearwater that went into service January 5, 2024.
The RAC allows PGE to recover prudently incurred costs of renewable resources through filings made each year, outside of a GRC. During 2024, the Company did not submit a request for recovery of any renewable resources under the RAC. In 2023, the Company filed for Clearwater, which went into service January 5, 2024.
Under the RCE mechanism, PGE is allowed to pursue recovery of 80% of costs for RCEs above amounts forecasted in the Company’s AUT, with the remaining 20% flowing through operating expenses and subject to the existing PCAM.
As approved by the OPUC in PGE’s 2024 GRC, the RCE mechanism allows PGE to pursue recovery of 80% of costs for RCEs above amounts forecasted in the Company’s AUT, with the remaining 20% flowing through operating expenses and subject to the existing PCAM.
To create a clean energy future, PGE is focused on the following strategic imperatives: • Decarbonize Power —Reduce greenhouse gas (GHG) emissions associated with electricity served to retail customers by at least 80% by 2030 and 100% by 2040; • Electrify the Economy —Increase beneficial electricity use to capture the benefits of new technologies while building an increasingly clean, flexible and reliable grid; and • Advance Performance —Improve safety, efficiency, and system and equipment reliability while maintaining affordable energy service and growing earnings per share 5% to 7% annually.
To create a clean energy future, PGE is focused on the following strategic imperatives: • Decarbonize Power —Reduce GHG emissions associated with electricity served to retail customers by at least 80% by 2030 and 100% by 2040; • Electrify the Economy —Increase beneficial electricity use to capture the benefits of new technologies while building an increasingly clean, flexible and reliable grid; and • Advance Performance —Improve safety, efficiency, and system and equipment reliability while maintaining affordable energy service and growing earnings per share 5% to 7% annually. 41 Table of Contents Climate Change State-mandated GHG emissions reduction targets —In June 2021, the Oregon legislature passed HB 2021, establishing a 100% clean electricity by 2040 framework for PGE and other investor-owned utilities and ESSs in the State.
The amount of additional collateral that could be requested upon a dual agency downgrade to below investment grade as of December 31, 2023 is $204 million and decreases to $188 million by December 31, 2024 and $82 million by December 31, 2025.
The amount of additional collateral that could be requested upon a dual agency downgrade to below investment grade as of 66 Table of Contents December 31, 2024 is $187 million and decreases to $185 million by December 31, 2025 and $102 million by December 31, 2026.
Equity —On April 28, 2023, PGE entered into an equity distribution agreement under which it could sell up to $300 million of its common stock through at the market offering programs.
Equity —On April 28, 2023, PGE entered into an equity distribution agreement under which it could sell up to $300 million of its common stock through at-the-market offering programs. In 2023, pursuant to the terms of the equity 68 Table of Contents distribution agreement, PGE entered into separate forward sale agreements with forward counterparties.
The project has an estimated commercial operation date of December 31, 2024. The Clearwater agreements and all BESS agreements represent the final procurement from the 2021 All-Source RFP. Resources required to meet the remaining 2030 need are anticipated to be procured through future acquisition processes, including, but not limited to, the 2023 All-Source RFP and future RFPs.
The agreements related to the Clearwater Wind Development and all BESS agreements represent the final procurement from the 2021 All-Source RFP. Resources required to meet the remaining 2030 need are anticipated to be procured through future acquisition processes, including, but not limited to, the 2023 All-Source RFP and future RFPs.
Operating Activities In addition to electricity provided by PGE’s own generation portfolio, to meet retail load requirements and balance energy supply with customer demand, manage risk, and administer its long-term wholesale contracts, the Company purchases and sells electricity in the wholesale market. PGE also performs portfolio management and wholesale market sales services for third parties in the region.
Operating Activities In addition to providing electricity from PGE’s own generation portfolio, to meet retail load requirements and balance energy supply with customer demand, manage risk, and administer its long-term wholesale contracts, the Company purchases and sells electricity in the wholesale market.
The 2024 AUT contains a $216 million increase in NVPC that will be recovered in customer prices beginning January 1, 2024. For more information regarding the PCAM, see “ Power operations ” within this Overview section of Item 7.
The 2025 AUT contains a $72 million increase in NVPC and has been included in customer prices beginning January 1, 2025. For more information regarding the PCAM, see “ Power operations ” within this Overview section of Item 7.
The Company is committed to being a clean energy leader and delivering steady growth and returns to shareholders. PGE is focused on working with customers, communities, policy makers, and other stakeholders to deliver affordable, safe, reliable electricity service to all, while increasing opportunities to deliver clean and renewable energy, reducing greenhouse gas emissions, and responding to evolving customer expectations.
PGE is focused on working with customers, communities, policy makers, and other stakeholders to deliver affordable, safe, reliable electricity service to all, while increasing opportunities to deliver clean and renewable energy, reducing GHG emissions, and responding to evolving customer expectations.
Residential energy deliveries, which are most sensitive to fluctuations in temperatures, were 1.7% lower in 2023 than 2022, due to a 2.5% decrease in average usage per customer, which resulted largely from warmer fourth quarter temperatures, and was partially offset by an 0.8% increase in the average number of customers.
Normally, the first and fourth quarters have the highest demand for heating. Residential energy deliveries, which are most sensitive to fluctuations in temperatures, were 2.8% lower in 2024 than 2023, due to a 4.4% decrease in average usage per customer, which resulted largely from mild temperatures, and was partially offset by a 1.7% increase in the average number of customers.
The following table shows available liquidity as of December 31, 2023 (in millions): December 31, 2023 Capacity Outstanding Available Revolving credit facility (1) $ 750 $ — $ 750 Letters of credit (2) 320 106 214 Total credit $ 1,070 $ 106 964 Cash and cash equivalents 5 Total liquidity $ 969 (1) Scheduled to expire September 2 028.
The following table shows available liquidity as of December 31, 2024 (in millions): December 31, 2024 Capacity Outstanding Available Revolving credit facility (1) $ 750 $ — $ 750 Letters of credit (2) 320 85 235 Total credit $ 1,070 $ 85 985 Cash and cash equivalents 12 Total liquidity $ 997 (1) Scheduled to expire in September 2029.
The 2023 TE plan represents a continuation of the approach and programmatic efforts found within PGE’s 2019 TE plan while also outlining the Company’s current strategy to integrate TE into utility business in order to plan, service, and manage EV load.
The 2023 TE plan represents a continuation of the approach and programmatic efforts found within PGE’s 2019 TE plan while also outlining the Company’s current strategy to integrate TE into utility business in order to plan, service, and manage EV load. 46 Table of Contents In the 2023 to 2025 period covered by the 2023 TE plan, capital expenditures are expected to be approximately $14 million.
Accumulated asset retirement removal costs that do not qualify as AROs have been reclassified from accumulated depreciation to regulatory liabilities in the consolidated balance sheets. 68 Table of Contents As a co-owner of Colstrip, PGE has provided surety bonds, which are considered off-balance sheet arrangements, of $21 million as of December 31, 2023 on behalf of the operator to ensure the operation and maintenance of remedial and closure actions are carried out related to the Administrative Order on Consent Regarding Impacts Related to Wastewater Facilities Comprising the Closed-Loop System at Colstrip Steam Electric Station, Colstrip Montana (the AOC) as required by the Montana Department of Environmental Quality.
As a co-owner of Colstrip, PGE has provided surety bonds, which are considered off-balance sheet arrangements, of $22 million as of December 31, 2024 on behalf of the operator to ensure the operation and maintenance of remedial and closure actions are carried out related to the Administrative Order on Consent Regarding Impacts Related to Wastewater Facilities Comprising the Closed-Loop System at Colstrip Steam Electric Station, Colstrip Montana (the AOC) as required by the Montana Department of Environmental Quality.
When coordinated through the Company’s DER Management Systems, DERs and flexible loads support cost-effective decarbonization, advance customer and community energy resiliency, promote customer engagement with the energy system, and unlock additional grid services that enhance PGE’s operation of a dynamic two-way system. In 2023, PGE saw record energy demand of 4,498 MW on August 14.
When coordinated through the Company’s Distributed Energy Resources Management Systems, Distributed Energy Resource and flexible loads support cost-effective decarbonization, advance customer and community energy resiliency, promote customer engagement with the energy system, and unlock additional grid services that enhance PGE’s operation of a dynamic two-way system.
HB 2021 —In June 2021, the Oregon Legislature passed HB 2021, which, among other things, requires retail electricity providers to reduce GHG emissions associated with serving Oregon retail electricity consumers 80% by 2030, 90% by 2035, and 100% by 2040, compared to their baseline emissions levels.
HB 2021 —Among other things, HB 2021 requires retail electricity providers to reduce GHG emissions associated with serving Oregon retail electricity consumers to certain targets: 80% reduction by 2030; 90% by 2035; and 100% by 2040, compared to a baseline emission level.
In 2023, higher Purchased power and fuel costs more than offset increases in Retail revenues authorized by the OPUC in the AUT in anticipation of higher NVPC. Retail revenues also increased due to an overall increase in deliveries, although that demand impact was more than offset by the average price result of the relative mix of deliveries among customer classes.
In 2023, the opposite was true as higher Purchased power and fuel expenses exceeded the corresponding increases in prices resulting from the AUT. Retail revenues also increased due to an overall increase in deliveries, although that demand impact was somewhat offset by the lower average price result of the relative mix of deliveries among customer classes.
(4) Plant availability includes Wheatridge, which PGE does not operate. Energy received from PGE-owned and jointly-owned thermal plants in 2023 compared to 2022 increased by 27%. This increase is primarily driven by economic dispatch decisions and to replace shortfalls from hydro and wind resources.
(4) Plant availability includes Wheatridge Renewable Energy Facility and Clearwater, which PGE does not operate. Energy received from PGE-owned and jointly-owned thermal plants in 2024 compared to 2023 decreased by 3%. This decrease is primarily driven by economic dispatch decisions.
The following summarizes PGE’s cash flows for the periods presented (in millions): Years Ended December 31, 2023 2022 Cash and cash equivalents, beginning of year $ 165 $ 52 Net cash provided by (used in): Operating activities 420 674 Investing activities (1,358) (758) Financing activities 778 197 Net change in cash and cash equivalents (160) 113 Cash and cash equivalents, end of year $ 5 $ 165 2023 Compared to 2022 Cash Flows from Operating Activities —Cash flows from operating activities are generally determined by the amount and timing of cash received from customers and payments made to vendors, as well as the nature and amount of non-cash items, including depreciation and amortization, deferred income taxes, and pension and other postretirement benefit costs included in net income during a given period.
PGE’s liquidity and capital requirements can also be significantly affected by other working capital needs, including margin deposit requirements related to wholesale market activities, which can vary depending upon the Company’s forward positions and the corresponding price curves. 64 Table of Contents The following summarizes PGE’s cash flows for the periods presented (in millions): Years Ended December 31, 2024 2023 Cash and cash equivalents, beginning of year $ 5 $ 165 Net cash provided by (used in): Operating activities 778 420 Investing activities (1,297) (1,358) Financing activities 526 778 Net change in cash and cash equivalents 7 (160) Cash and cash equivalents, end of year $ 12 $ 5 2024 Compared to 2023 Cash Flows from Operating Activities —Cash flows from operating activities are generally determined by the amount and timing of cash received from customers and payments made to vendors, as well as the nature and amount of non-cash items, including depreciation and amortization, deferred income taxes, and pension and other postretirement benefit costs included in net income during a given period.
The industrial class has experienced an increase in energy deliveries, due primarily to continued growth in the high-tech and digital services sectors. Compared to the prior year, weather had a negative impact on deliveries, as warm weather in the fourth quarter more than offset cooler temperatures early in the year.
The industrial class has experienced an increase in energy deliveries, due primarily to continued growth in the high-tech and digital services sectors. Compared to the prior year, weather had a negative impact on deliveries. The first quarter of 2023 was unseasonably cold, whereas the same period of 2024 was mild, as was the fourth quarter of 2024.
Total energy received from all hydroelectric sources, both PGE-owned generation and purchased, decreased 21% in 2023 compared to 2022 primarily due to less favorable hydro conditions in the current period. Energy purchased from mid-Columbia and other regional hydroelectric projects decreased 26% while energy generated by the Company-owned facilities increased 11% in 2023.
Total energy received from all hydroelectric sources, both PGE-owned generation and purchased, increased 39% in 2024 compared to 2023 primarily due to the addition of capacity under two purchased hydro contracts in 2024. Energy purchased from mid-Columbia and other regional hydroelectric projects increased 45% while energy generated by the Company-owned facilities increased 11% in 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changePGE currently has no financial instruments to mitigate risk related to changes in short-term interest rates, including those on commercial paper; however, it may consider such instruments in the future as deemed necessary. 70 Table of Contents As of December 31, 2023, the total fair value and carrying amounts, excluding unamortized debt expense, by maturity date of PGE’s long-term debt are as follows (in millions): Total Fair Value Carrying Amounts by Maturity Date Total 2024 2025 2026 2027 2028 There- after First Mortgage Bonds $ 3,598 $ 3,880 $ 80 $ — $ — $ 160 $ 100 $ 3,540 Pollution Control Revenue Bonds 107 119 — — — — — 119 Total $ 3,705 $ 3,999 $ 80 $ — $ — $ 160 $ 100 $ 3,659 As of December 31, 2023, PGE had no long-term debt instruments subject to interest rate risk exposures Credit Risk PGE is exposed to credit risk in its commodity price risk management activities related to potential nonperformance by counterparties.
Biggest changeAs of December 31, 2024, the total fair value and carrying amounts, excluding unamortized debt expense, by maturity date of PGE’s long-term debt are as follows (in millions): Total Fair Value Carrying Amounts by Maturity Date Total 2025 2026 2027 2028 2029 There- after First Mortgage Bonds $ 3,690 $ 4,250 $ — $ — $ 160 $ 100 $ 200 $ 3,790 Unsecured Term Bank Loan $ 170 $ 170 $ 170 $ — $ — $ — $ — $ — Pollution Control Revenue Bonds 103 119 — — — — — 119 Total $ 3,963 $ 4,539 $ 170 $ — $ 160 $ 100 $ 200 $ 3,909 As of December 31, 2024, PGE had no long-term debt instruments subject to interest rate risk exposure, with the exception of the Unsecured Term Bank Loan which bears interest for the relevant interest period at the Term Secured Overnight Financing Rate (SOFR) plus Term SOFR Adjustment Rate of 10 basis points and Applicable Margin of 80 basis points.
As of December 31, 2023, a 10% change in the value of the Canadian dollar would result in an immaterial change in exposure for transactions that will settle over the next twelve months.
As of December 31, 2024, a 10% change in the value of the Canadian dollar would result in an immaterial change in exposure for transactions that will settle over the next twelve months.
The Company also enters into contracts for the purchase of fuel for the Company’s natural gas- and coal-fired generating plants, and the sale of natural gas in excess of amounts needed for the Company’s natural gas-fired generating plants. 69 Table of Contents These contracts for the purchase of power and fuel expose the Company to market risk.
The Company also enters into contracts for the purchase of fuel for the Company’s natural gas- and coal-fired generating plants, and the sale of natural gas in excess of amounts needed for the Company’s natural gas-fired generating plants. These contracts for the purchase of power and fuel expose the Company to market risk.
For additional information, see “ Public utility districts ” in Note 16, Commitments and Guarantees, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Management believes that circumstances that could result in the nonperformance by these counterparties are remote. 71 Table of Contents
For additional information, see “ Public utility districts ” in Note 16, Commitments and Guarantees in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” Management believes that circumstances that could result in the nonperformance by these counterparties are remote.
PGE remains subject to cash flow risk in the form of collateral requirements based on the value of open positions and regulatory risk if recovery is disallowed by the OPUC. PGE attempts to mitigate both types of risks through prudent energy procurement practices.
PGE remains subject to cash flow risk in the form of collateral requirements 71 Table of Contents based on the value of open positions and regulatory risk if recovery is disallowed by the OPUC. PGE attempts to mitigate both types of risk through prudent energy procurement practices.
The Company manages the risk of counterparty default according to its credit policies by performing financial credit reviews, setting limits and monitoring exposures, and requiring collateral (in the form of cash, letters of credit, and guarantees) when needed.
Credit Risk PGE is exposed to credit risk in its commodity price risk management activities related to potential nonperformance by counterparties. The Company manages the risk of counterparty default according to its credit policies by performing financial credit reviews, setting limits and monitoring exposures, and requiring collateral (in the form of cash, letters of credit, and guarantees) when needed.
Assuming no changes in market prices and interest rates, the following table presents the years in which the net unrealized (gains)/losses recorded as of December 31, 2023 related to PGE’s derivative activities would become realized as a result of the settlement of the underlying derivative instrument (in millions): 2024 2025 2026 2027 2028 Thereafter Total Commodity contracts: Electricity $ 39 $ 18 $ (2) $ (2) $ (1) $ (1) $ 51 Natural gas 104 36 14 1 — — 155 Net unrealized (gain)/loss $ 143 $ 54 $ 12 $ (1) $ (1) $ (1) $ 206 PGE reports energy commodity derivative fair values as a net asset or liability, which combines purchases and sales expected to settle in the years noted above.
Assuming no changes in market prices and interest rates, the following table presents the years in which the net unrealized losses recorded as of December 31, 2024 related to PGE’s derivative activities would become realized as a result of the settlement of the underlying derivative instrument (in millions): 2025 2026 2027 2028 2029 Thereafter Total Commodity contracts: Electricity $ 13 $ 5 $ 3 $ 2 $ 2 $ 12 $ 37 Natural gas 101 43 4 — — — 148 Net unrealized loss $ 114 $ 48 $ 7 $ 2 $ 2 $ 12 $ 185 PGE reports energy commodity derivative fair values as a net asset or liability, which combines purchases and sales expected to settle in the years noted above.
PGE also uses standardized enabling agreements and, in certain cases, master netting agreements, which allow for the netting of positive and negative exposures under multiple agreements with counterparties. Despite such mitigation efforts, defaults by counterparties may periodically occur. Based upon periodic review and evaluation, allowances are recorded as needed to reflect credit risk related to wholesale accounts receivable.
PGE also uses standardized enabling agreements and, in certain cases, master netting agreements, which allow for the netting of positive and negative exposures under multiple agreements with counterparties. Despite such mitigation efforts, defaults by counterparties may periodically occur.
The large number and diversified base of residential, commercial, and industrial customers, combined with the Company’s ability to discontinue service, within certain limits, contribute to reduce credit risk with respect to trade accounts receivable from retail sales. Estimates are used to provide an allowance for uncollectible accounts receivable related to retail sales to address such risk.
Based upon periodic review and evaluation, allowances are recorded as needed to reflect credit risk related to wholesale accounts receivable. 72 Table of Contents The large number and diversified base of residential, commercial, and industrial customers, combined with the Company’s ability to discontinue service, within certain limits, contribute to reduce credit risk with respect to trade accounts receivable from retail sales.
As of December 31, 2023, PGE’s credit risk exposure is $50 million for commodity activities, of which $15 million is with externally-rated investment grade counterparties. The underlying transactions that make up the exposure will mature from 2023 to 2025.
Estimates are used to provide an allowance for uncollectible accounts receivable related to retail sales to address such risk. As of December 31, 2024, PGE’s credit risk exposure was $16 million for commodity activities, of which $14 million is with externally-rated investment grade counterparties. The underlying transactions that make up the exposure will mature in 2025.
As of December 31, 2023, PGE had no borrowings outstanding under its revolving credit facility and $146 million commercial paper outstanding.
As of December 31, 2024, PGE had no borrowings outstanding under its revolving credit facility and no commercial paper outstanding. PGE currently has no financial instruments to mitigate risk related to changes in short-term interest rates, including those on commercial paper; however, it may consider such instruments in the future as deemed necessary.

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