Earnings Per Share (Notes)

9 Months Ended

Sep. 30, 2014

Basic earnings per share is computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding and the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares consist of: i) employee stock purchase plan shares; ii) unvested time-based and performance-based restricted stock units, along with associated dividend equivalent rights; and iii) shares issuable pursuant to an equity forward sale agreement (EFSA). See Note 6, Equity, for additional information on the EFSA and its impact on earnings per share. Unvested performance-based restricted stock units and associated dividend equivalent rights are included in dilutive potential common shares only after the performance criteria have been met. For the three and nine month periods ended September 30, 2014, unvested performance-based restricted stock units and associated dividend equivalent rights of approximately 361,000 were excluded from the dilutive calculation because the performance goals had not been met. For the three and nine month periods ended September 30, 2013, unvested performance-based restricted stock units and associated dividend equivalent rights of approximately 440,000 were similarly excluded.

Net income attributable to PGE common shareholders is the same for both the basic and diluted earnings per share computations. The reconciliations of the denominators of the basic and diluted earnings per share computations are as follows (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Weighted-average common shares outstanding—basic	78,203	77,637	78,170	76,401
Dilutive effect of potential common shares	2,022	693	1,807	302
Weighted-average common shares outstanding—diluted	80,225	78,330	79,977	76,703

- Definition

The entire disclosure for earnings per share.

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