XML 99 R14.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Price Risk Management (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2014
Price Risk Management [Abstract] |
Price Risk Management | PRICE RISK MANAGEMENT PGE participates in the wholesale marketplace in order to balance its supply of power, which consists of its own generating resources combined with wholesale market transactions, to meet the needs of its retail customers, manage risk, and administer its existing long-term wholesale contracts. Such activities include fuel and power purchases and sales resulting from economic dispatch decisions for its own generation. As a result of this ongoing business activity, PGE is exposed to commodity price risk and foreign currency exchange rate risk, where adverse changes in prices and/or rates may affect the Company’s financial position, performance, or cash flow. PGE utilizes derivative instruments in its wholesale electric utility activities to manage its exposure to commodity price risk and foreign exchange rate risk in order to manage volatility in net power costs for its retail customers. These derivative instruments may include forward, futures, swap, and option contracts for electricity, natural gas, oil and foreign currency, which are recorded at fair value on the consolidated balance sheet, with changes in fair value recorded in the statement of income. In accordance with ratemaking and cost recovery processes authorized by the OPUC, PGE recognizes a regulatory asset or liability to defer the gains and losses from derivative activity until settlement of the associated derivative instrument. PGE may designate certain derivative instruments as cash flow hedges or may use derivative instruments as economic hedges. PGE does not engage in trading activities for non-retail purposes. PGE’s Assets and Liabilities from price risk management activities consist of the following (in millions):
| As of December 31, |
| 2014 |  | 2013 |
Current assets: |  |  |  |
Commodity contracts: |  |  |  |
Electricity | $ | 4 |  |  | $ | 9 |  |
Natural gas | 2 |  |  | 4 |  |
Total current derivative assets | 6 |  | (1) | 13 |  | (1)
Noncurrent assets: |  |  |  |
Commodity contracts: |  |  |  |
Electricity | 1 |  |  | 1 |  |
Total noncurrent derivative assets | 1 |  | (2) | 1 |  | (2)
Total derivative assets not designated as hedging instruments | $ | 7 |  |  | $ | 14 |  |
Total derivative assets | $ | 7 |  |  | $ | 14 |  |
Current liabilities: |  |  |  |
Commodity contracts: |  |  |  |
Electricity | $ | 54 |  |  | $ | 20 |  |
Natural gas | 52 |  |  | 29 |  |
Total current derivative liabilities | 106 |  |  | 49 |  |
Noncurrent liabilities: |  |  |  |
Commodity contracts: |  |  |  |
Electricity | 58 |  |  | 107 |  |
Natural gas | 64 |  |  | 34 |  |
Total noncurrent derivative liabilities | 122 |  |  | 141 |  |
Total derivative liabilities not designated as hedging instruments | $ | 228 |  |  | $ | 190 |  |
Total derivative liabilities | $ | 228 |  |  | $ | 190 |  |
(1) | Included in Other current assets on the consolidated balance sheets.
(2) | Included in Other noncurrent assets on the consolidated balance sheet.
PGE’s net volumes related to its Assets and Liabilities from price risk management activities resulting from its derivative transactions, which are expected to deliver or settle at various dates through 2035, were as follows (in millions):
| As of December 31,
| 2014 |  | 2013
Commodity contracts: |  |  |  |  |  |  |
Electricity | 16 |  |  | MWh |  | 14 |  |  | MWh
Natural gas | 127 |  |  | Dth |  | 106 |  |  | Dth
Foreign currency exchange | $ | 7 |  |  | Canadian |  | $ | 7 |  |  | Canadian
PGE has elected to report gross on the consolidated balance sheets the positive and negative exposures resulting from derivative instruments pursuant to agreements that meet the definition of a master netting arrangement. In the case of default on, or termination of, any contract under the master netting arrangements, these agreements provide for the net settlement of all related contractual obligations with a counterparty through a single payment. These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral, such as letters of credit, which are excluded from the offsetting table below. Information related to price risk management liabilities subject to master netting agreements is as follows (in millions):
|  | Gross |  | Gross |  | Net |  | Gross Amounts Not Offset in |  |
|  | Amounts |  | Amounts |  | Amounts |  | Consolidated Balance Sheets |  |
|  | Recognized |  | Offset |  | Presented |  | Derivatives |  | Cash Collateral(1) |  | Net Amount
As of December 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |  |  |  |  |
Electricity(2) |  | $ | 55 |  |  | $ | — |  |  | $ | 55 |  |  | $ | (55 | ) |  | $ | — |  |  | $ | — |
Natural gas(2) |  | 17 |  |  | — |  |  | 17 |  |  | (17 | ) |  | — |  |  | — |
|  | $ | 72 |  |  | $ | — |  |  | $ | 72 |  |  | $ | (72 | ) |  | $ | — |  |  | $ | — |
As of December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Commodity contracts: |  |  |  |  |  |  |  |  |  |  |  |
Electricity(2) |  | $ | 91 |  |  | $ | — |  |  | $ | 91 |  |  | $ | (91 | ) |  | $ | — |  |  | $ | — |
Natural gas(2) |  | 1 |  |  | — |  |  | 1 |  |  | (1 | ) |  | — |  |  | — |
|  | $ | 92 |  |  | $ | — |  |  | $ | 92 |  |  | $ | (92 | ) |  | $ | — |  |  | $ | — |
(1) | As of December 31, 2014 and 2013, the Company had collateral posted of $11 million and $7 million, respectively, which consists entirely of letters of credit.
(2) | Included in Liabilities from price risk management activities—current and Liabilities from price risk management activities—noncurrent.
Net realized and unrealized losses on derivative transactions not designated as hedging instruments are classified in Purchased power and fuel in the consolidated statements of income and were as follows (in millions):
| Years Ended December 31,
| 2014 |  | 2013 |  | 2012
Commodity contracts: |  |  |  |  |
Electricity | $ | 13 |  |  | $ | 78 |  |  | $ | 56 |
Natural Gas | 72 |  |  | 28 |  |  | 19 |
Foreign currency exchange | — |  |  | 1 |  |  | — |
Net unrealized losses and certain net realized losses presented in the table above are offset within the statement of income by the effects of regulatory accounting. Of the net loss recognized in net income for the years ended December 31, 2014, 2013, and 2012, $83 million, $120 million, and $42 million, respectively, have been offset. Assuming no changes in market prices and interest rates, the following table presents the year in which the net unrealized loss recorded as of December 31, 2014 related to PGE’s derivative activities would be realized as a result of the settlement of the underlying derivative instrument (in millions):
| 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | Thereafter |  | Total
Commodity contracts: |  |  |  |  |  |  |  |  |  |  |  |  |
Electricity | $ | 50 |  |  | $ | 19 |  |  | $ | 6 |  |  | $ | 5 |  |  | $ | 5 |  |  | $ | 22 |  |  | $ | 107 |
Natural gas | 49 |  |  | 44 |  |  | 18 |  |  | 3 |  |  | — |  |  | — |  |  | 114 |
Net unrealized loss | $ | 99 |  |  | $ | 63 |  |  | $ | 24 |  |  | $ | 8 |  |  | $ | 5 |  |  | $ | 22 |  |  | $ | 221 |
PGE’s secured and unsecured debt is currently rated at investment grade by Moody’s Investors Service (Moody’s) and Standard & Poor’s Ratings Services (S&P). Should Moody’s and/or S&P reduce their rating on the Company’s unsecured debt to below investment grade, PGE could be subject to requests by certain wholesale counterparties to post additional performance assurance collateral, in the form of cash or letters of credit, based on total portfolio positions with each of those counterparties and some other counterparties will have the right to terminate their agreements with the Company. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of December 31, 2014 was $216 million, for which the Company had posted $29 million in collateral, consisting primarily of letters of credit. If the credit-risk-related contingent features underlying these agreements were triggered at December 31, 2014, the cash requirement to either post as collateral or settle the instruments immediately would have been $213 million. As of December 31, 2014, PGE had posted an additional $11 million in cash collateral for derivative instruments with no credit-risk-related contingent features, which is classified as Margin deposits on the Company’s consolidated balance sheet. Counterparties representing 10% or more of Assets and Liabilities from price risk management activities were as follows:
| As of December 31,
| 2014 |  | 2013
Assets from price risk management activities: |  |  |
Counterparty A | 63 | % |  | 53 | %
Counterparty B | 14 |  |  | 6 |
| 77 | % |  | 59 | %
Liabilities from price risk management activities: |  |  |
Counterparty C | 22 | % |  | 43 | %
Counterparty D | 12 |  |  | 11 |
| 34 | % |  | 54 | %
For additional information concerning the determination of fair value for the Company’s Assets and Liabilities from price risk management activities, see Note 4, Fair Value of Financial Instruments.

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

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708775-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624181-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624258-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708773-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624177-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration