XML 40 R7.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Balance Sheet Components (Notes) | 6 Months Ended
--- | ---
Jun. 30, 2014
Balance Sheet Components [Abstract] |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Accounts Receivable, Net Accounts receivable is net of an allowance for uncollectible accounts of $7 million and $6 million as of June 30, 2014 and December 31, 2013, respectively. The activity in the allowance for uncollectible accounts is as follows (in millions):
| Six Months Ended June 30,
| 2014 |  | 2013
Balance as of beginning of period | $ | 6 |  |  | $ | 5 |
Provision, net | 4 |  |  | 3 |
Amounts written off, less recoveries | (3 | ) |  | (3 | )
Balance as of end of period | $ | 7 |  |  | $ | 5 |
Inventories PGE inventories, which are recorded at average cost, consist primarily of materials and supplies for use in operations, maintenance, and capital activities and fuel for use in generating plants. Fuel inventories include natural gas, coal, and oil. The Company assesses the realizability of inventory for purposes of determining that inventory is recorded at the lower of average cost or market. Other Current Assets Other current assets consist of the following (in millions):
| June 30, 2014 |  | December 31, 2013
Current deferred income tax asset | $ | 43 |  |  | $ | 42 |
Prepaid expenses | 32 |  |  | 38 |
Assets from price risk management activities | 18 |  |  | 13 |
Margin deposits | 2 |  |  | 9 |
Other | 3 |  |  | 1 |
Other current assets | $ | 98 |  |  | $ | 103 |
Electric Utility Plant, Net Electric utility plant, net consists of the following (in millions):
| June 30, 2014 |  | December 31, 2013
Electric utility plant | $ | 7,213 |  |  | $ | 7,095 |
Construction work-in-progress | 926 |  |  | 508 |
Total cost | 8,139 |  |  | 7,603 |
Less: accumulated depreciation and amortization | (2,815 | ) |  | (2,723 | )
Electric utility plant, net | $ | 5,324 |  |  | $ | 4,880 |
Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $182 million and $170 million as of June 30, 2014 and December 31, 2013, respectively. Amortization expense related to intangible assets was $6 million for the three months ended June 30, 2014 and 2013, and $12 million and $11 million for the six months ended June 30, 2014 and 2013, respectively. The Company’s intangible assets primarily consist of computer software development and hydro licensing costs. During the second quarter of 2013, PGE charged to expense $52 million of costs previously included in construction work-in-progress (CWIP) related to the Cascade Crossing Transmission Project (Cascade Crossing), which was originally proposed as a 215-mile, 500 kV transmission project between Boardman, Oregon and Salem, Oregon. Based on an updated forecast of demand and future transmission capacity in the region, PGE determined in the second quarter of 2013 that the original projections of transmission capacity limitations contemplated in the Company’s 2009 Integrated Resource Plan, as acknowledged by the Public Utility Commission of Oregon (OPUC), were not likely to fully materialize. As a result, PGE and Bonneville Power Administration (BPA) worked toward refining the scope of the project and executed a non-binding memorandum of understanding (MOU) in May 2013. In connection with the MOU, the parties explored a new option under which BPA could provide PGE with ownership of approximately 1,500 MW of transmission capacity rights. As a result of the changed conditions reflected in the MOU, PGE also suspended permitting and development of Cascade Crossing and charged the capitalized costs related to Cascade Crossing to expense in the second quarter of 2013. In October 2013, the parties determined that they would not be able to reach an agreement on the financial terms for the proposed ownership of transmission capacity rights and, therefore, agreed to discontinue discussions on this option. The Company determined that, under conditions at that time, the best option for meeting its transmission needs is to continue to acquire transmission service offered under BPA’s Open Access Transmission Tariff. PGE has determined that it will not seek recovery of these costs. Regulatory Assets and Liabilities Regulatory assets and liabilities consist of the following (in millions):
| June 30, 2014 |  | December 31, 2013
| Current |  | Noncurrent |  | Current |  | Noncurrent
Regulatory assets: |  |  |  |  |  |  |
Price risk management | $ | 14 |  |  | $ | 78 |  |  | $ | 36 |  |  | $ | 140 |
Pension and other postretirement plans | — |  |  | 185 |  |  | — |  |  | 194 |
Deferred income taxes | — |  |  | 81 |  |  | — |  |  | 76 |
Deferred broker settlements | 7 |  |  | — |  |  | 12 |  |  | 1 |
Debt reacquisition costs | — |  |  | 16 |  |  | — |  |  | 17 |
Deferred capital projects | 8 |  |  | 19 |  |  | 16 |  |  | 18 |
Other | 9 |  |  | 20 |  |  | 2 |  |  | 18 |
Total regulatory assets | $ | 38 |  |  | $ | 399 |  |  | $ | 66 |  |  | $ | 464 |
Regulatory liabilities: |  |  |  |  |  |  |
Asset retirement removal costs | $ | — |  |  | $ | 776 |  |  | $ | — |  |  | $ | 747 |
Trojan decommissioning activities | — |  |  | 43 |  |  | — |  |  | 41 |
Asset retirement obligations | — |  |  | 39 |  |  | — |  |  | 39 |
Other | 5 |  |  | 55 |  |  | 1 |  |  | 38 |
Total regulatory liabilities | $ | 5 |  | * | $ | 913 |  |  | $ | 1 |  | * | $ | 865 |
* | Included in Accrued expenses and other current liabilities in the condensed consolidated balance sheets.
Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in millions):
| June 30, 2014 |  | December 31, 2013
Accrued employee compensation and benefits | $ | 42 |  |  | $ | 46 |
Accrued interest payable | 23 |  |  | 23 |
Accrued dividends payable | 23 |  |  | 22 |
Accrued taxes payable | 19 |  |  | 21 |
Regulatory liabilities—current | 5 |  |  | 1 |
Other | 62 |  |  | 58 |
Total accrued expenses and other current liabilities | $ | 174 |  |  | $ | 171 |
Credit Facilities PGE has the following unsecured revolving credit facilities as of June 30, 2014:
• | A $400 million syndicated credit facility, which is scheduled to expire in November 2018; and
• | A $300 million syndicated credit facility, which is scheduled to expire in December 2017.
Pursuant to the terms of the agreements, both revolving credit facilities may be used for general corporate purposes and as backup for commercial paper borrowings, and also permit the issuance of standby letters of credit. PGE may borrow for one, two, three, or six months at a fixed interest rate established at the time of the borrowing, or at a variable interest rate for any period up to the then remaining term of the applicable credit facility. Both revolving credit facilities contain provisions for two, one-year extensions that are subject to approval by the banks, require annual fees based on PGE’s unsecured credit ratings, and contain customary covenants and default provisions, including a requirement that limits consolidated indebtedness, as defined in the agreements, to 65% of total capitalization. As of June 30, 2014, PGE was in compliance with this covenant with a 53.4% debt to total capital ratio. PGE has a commercial paper program under which it may issue commercial paper for terms of up to 270 days, limited to the unused amount of credit under the credit facilities. Pursuant to an order issued by the Federal Energy Regulatory Commission (FERC), the Company is authorized to issue short-term debt up to $900 million through February 6, 2016. The authorization provides that if utility assets financed by unsecured debt are divested, then a proportionate share of the unsecured debt must also be divested. PGE classifies borrowings under the revolving credit facilities and outstanding commercial paper as Short-term debt on the condensed consolidated balance sheets. As of June 30, 2014, PGE had no borrowings outstanding under the revolving credit facilities, no commercial paper outstanding, and $9 million of letters of credit issued. As of June 30, 2014, the aggregate available capacity under the credit facilities was $691 million. In addition, the Company has two $30 million letter of credit facilities, which are scheduled to terminate in September and October 2014. As of June 30, 2014, PGE had issued $54 million of letters of credit under these facilities, with an aggregate available capacity of $6 million. Long-term Debt In May 2014, PGE entered into an unsecured credit agreement with certain financial institutions, under which the Company may obtain four separate term loans in an aggregate principal amount of $305 million. During the second quarter of 2014, PGE obtained the following three term loans:
• | $75 million on May 12, 2014;
• | $75 million on June 2, 2014; and
• | $75 million on June 30, 2014.
The Company obtained the fourth term loan in the amount of $80 million on July 21, 2014. The term loan interest rates are set at the beginning of the interest period for periods of 1-month, 3-months or 6-months, as selected by PGE and are based on the London Interbank Offered Rate (LIBOR) plus 70 basis points (approximately 0.9% as of June 30, 2014), with no other fees. The credit agreement expires October 30, 2015, at which time any amounts outstanding under the term loans become due and payable. Upon the occurrence of certain events of default, the Company’s obligations under the credit agreement may be accelerated. Such events of default include payment defaults to lenders under the credit agreement, covenant defaults and other customary defaults. Additionally, in May 2014, PGE entered into a bond purchase agreement with certain institutional buyers (Buyers) under which the Company agreed to sell to the Buyers, in three tranches, an aggregate principal amount of $280 million of First Mortgage Bonds (FMBs) as follows:
• | On or about August 15, 2014, $100 million of 4.39% Series FMBs due 2045;
• | On or about October 15, 2014, $100 million of 4.44% Series FMBs due 2046; and
• | On or about November 17, 2014, $80 million of 3.51% Series FMBs due 2024.
Pension and Other Postretirement Benefits Components of net periodic benefit cost are as follows (in millions):
| Defined Benefit Pension Plan |  | Other Postretirement Benefits |  | Non-Qualified Benefit Plans
| 2014 |  | 2013 |  | 2014 |  | 2013 |  | 2014 |  | 2013
Three Months Ended June 30: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 3 |  |  | $ | 4 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 8 |  |  | 8 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |
Expected return on plan assets | (10 | ) |  | (10 | ) |  | (1 | ) |  | (1 | ) |  | — |  |  | — |
Amortization of prior service cost | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |
Amortization of net actuarial loss | 5 |  |  | 6 |  |  | — |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost | $ | 6 |  |  | $ | 8 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |
Six Months Ended June 30: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | 7 |  |  | $ | 8 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |
Interest cost | 17 |  |  | 16 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | 1 |
Expected return on plan assets | (20 | ) |  | (20 | ) |  | (1 | ) |  | (1 | ) |  | — |  |  | — |
Amortization of prior service cost | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |
Amortization of net actuarial loss | 9 |  |  | 12 |  |  | — |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost | $ | 13 |  |  | $ | 16 |  |  | $ | 3 |  |  | $ | 3 |  |  | $ | 1 |  |  | $ | 1 |

X
- Details
Name: | por_BalanceSheetComponentsAbstract
Namespace Prefix: | por_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Details of Certain Balance Sheet Accounts + References No definition available. + Details
Name: | por_DetailsOfCertainBalanceSheetAccountsDisclosureTextBlock
Namespace Prefix: | por_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration