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Regulatory Assets and Liabilities | 12 Months Ended
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Dec. 31, 2022
Regulatory Assets and Liabilities Disclosure [Abstract] |
Schedule of Regulatory Assets and Liabilities [Text Block] | REGULATORY ASSETS AND LIABILITIESThe majority of PGE’s regulatory assets and liabilities are reflected in customer prices and are amortized over the period in which they are reflected in customer prices. Items not currently reflected in prices are pending before the regulatory body as discussed below. Regulatory assets and liabilities consist of the following (dollars in millions):
| Remaining Amortization Period |  | As of December 31,
| 2022 |  | 2021
| Earning a Return (1) |  | Not Earning a Return |  | Total |  | Total
Regulatory assets: |  |  |  |  |  |  |  |  |
Price risk management | (2) |  | $ | — |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 55 |
Pension and other postretirement plans | (3) |  | — |  |  | 95 |  |  | 95 |  |  | 131 |
Debt issuance costs | 2049 |  | — |  |  | 21 |  |  | 21 |  |  | 23 |
Trojan decommissioning activities | 2059 |  | — |  |  | 133 |  |  | 133 |  |  | 90 |
February 2021 ice storm and damage | (4) |  | 74 |  |  | — |  |  | 74 |  |  | 67 |
Power cost adjustment mechanism | (5) |  | 28 |  |  | — |  |  | 28 |  |  | 29 |
2020 Labor Day wildfire | (4) |  | 31 |  |  | — |  |  | 31 |  |  | 45 |
COVID-19 | (6) |  | 22 |  |  | — |  |  | 22 |  |  | 36 |
Wildfire mitigation | (6) |  | 28 |  |  | — |  |  | 28 |  |  | — |
Other | Various |  | 70 |  |  | 24 |  |  | 94 |  |  | 81 |
Total regulatory assets |  |  | $ | 253 |  |  | $ | 274 |  |  | $ | 527 |  |  | $ | 557 |
Regulatory liabilities: |  |  |  |  |  |  |  |  |
Asset retirement removal costs | (7) |  | $ | 1,136 |  |  | $ | — |  |  | $ | 1,136 |  |  | $ | 1,047 |
Deferred income taxes | (8) |  | 194 |  |  | — |  |  | 194 |  |  | 208 |
Asset retirement obligations | (7) |  | 7 |  |  | — |  |  | 7 |  |  | 43 |
Price risk management | (2) |  | — |  |  | 195 |  |  | 195 |  |  | 55 |
Other | Various |  | 67 |  |  | 24 |  |  | 91 |  |  | 113 |
Total regulatory liabilities |  |  | $ | 1,404 |  |  | $ | 219 |  |  | $ | 1,623 |  |  | $ | 1,466 |
(1)Earning a return includes either interest on the regulatory asset or liability, or inclusion of the regulatory asset or liability as an increase or decrease to rate base at the allowed rate of return. (2)No amortization period in accordance with ratemaking and cost recovery processes authorized by the OPUC, PGE recognizes a regulatory asset or liability to defer unrealized losses or gains on derivative instruments until settlement. (3)Recovery expected over the average service life of employees. (4)Amortization will occur over a 7-year period starting January 1, 2023. (5)Amortization will occur over a 2-year period starting January 1, 2023. (6)Amortization period not yet determined. (7)Recovery or refund expected over the estimated lives of the underlying assets and treated as a reduction to rate base. (8)Refund expected as the balance is reversed using the average rate assumption method over the average life of the underlying assets and treated as a reduction to rate base. On April 25, 2022, the OPUC issued Order 22-129, which adopted all stipulations agreed to by the parties to the proceeding in PGE’s 2022 GRC, including the annual revenue requirement, cost of capital, capitalization ratio, and the elimination of the decoupling mechanism, although deferral related to the decoupling mechanism continued on a prorated basis through the end of 2022. In 2023 and forward, deferral related to the decoupling mechanism will cease. Key elements of the OPUC’s Order also included: •establishment of a balancing account for the Company’s major storm damage recovery mechanism; •denial of PGE’s proposal for a secondary phase of the 2022 GRC regarding the Faraday capital improvement project. The Company had requested that recovery of the capital cost of improvements at the Faraday hydroelectric facility be included in the new rate base. PGE was permitted to pursue recovery in the Company’s next GRC. As of December 31, 2022, the construction work-in-progress balance of the project was $168 million, including AFUDC and was placed in-service on January 31, 2023. The Company’s 2024 GRC pursues recovery of the Faraday project in its rate base request; •approval of an intervenor request that would require PGE to defer and refund, subject to an earnings test, the revenue requirement associated with the Company’s Boardman coal-fired generating plant included in customer prices following plant closure in 2020; and •creation of an earnings test for the deferrals for the 2020 Labor Day wildfire and the February 2021 ice storm and damage that is to be applied on a year-by-year basis. As a result of the earnings tests outlined in the OPUC’s Order, the Company has released deferrals associated with the year ended 2020, resulting in a pre-tax, non-cash charge to earnings in 2022 in the amount of $17 million. The amount recorded represents the Company’s estimate based on its interpretation of the OPUC’s earnings test. PGE does not expect to exceed its regulated return on equity under the earnings test methodology approved by the OPUC and as a result, no release of deferrals or earnings test reserve is expected for 2021 and 2022. The OPUC has significant discretion in making the final determination of the application of the earnings test for 2020, 2021, and 2022 that could result in additional disallowances or refunds compared to the amount reserved by the Company as of December 31, 2022, which could be material. Price risk management represents the difference between the net unrealized losses recognized on derivative instruments related to price risk management activities and their realization and subsequent recovery in customer prices. For further information regarding assets and liabilities from price risk management activities, see Note 6, Risk Management. Pension and other postretirement plans represents unrecognized components of the benefit plans’ funded status, which are recoverable in customer prices when recognized in net periodic pension and postretirement benefit costs. For further information, see Note 11, Employee Benefits. Debt issuance costs represents unrecognized debt issuance costs related to debt instruments retired prior to the stipulated maturity date. Trojan decommissioning activities represents the deferral of ongoing costs and adjustments to the Trojan ARO associated with monitoring spent nuclear fuel at Trojan, net of amortization of customer collections. In addition, proceeds received from the United States Department of Energy (USDOE) for the reimbursement of costs to monitor the ISFSI is deferred and offsets customer collections. February 2021 ice storm and damage represents the costs incurred to repair damage to PGE’s transmission and distribution systems and restore power to customers as a result of the historic storms that ultimately led Oregon’s Governor to declare a state of emergency in February 2021. The Company filed an application for authorization to defer emergency restoration costs for the February 2021 ice storm (OPUC Docket UM 2156), which was approved on January 26, 2022 (OPUC Order No. 22-020). On October 24, 2022, PGE and parties submitted a stipulation with the OPUC reflecting an agreement that resolved all matters related to 2021 under this deferral and would allow PGE full recovery of the deferred amounts with amortization over a seven-year period. The OPUC adopted the stipulation approving amortization of amounts with amortization that began on January 1, 2023. Power Cost Adjustment Mechanism—For the year ended December 31, 2021, actual NVPC was $62 million above baseline NVPC, and therefore PGE deferred $29 million, which represents 90% of the excess variance expected to be collected from customers for the year ended December 31, 2021. In conjunction with the OPUC’s annual review of the Company’s PCAM filing, parties reached a settlement and on October 24, 2022, PGE and parties submitted a stipulation with the OPUC reflecting an agreement that resolved all matters related to this deferral and would allow PGE full recovery except for $2 million, which was recorded as a charge to earnings. Amortization will occur over a two-year period beginning January 1, 2023. Order 22-440, issued November 8, 2022, adopted the stipulation approving amortization of amounts. 2020 Labor Day wildfire in 2020, the State experienced the most destructive wildfire season on record, with over one million acres of land burned that ultimately led Oregon’s Governor to declare a state of emergency. PGE has incurred costs to replace and rebuild PGE facilities damaged by the fires, as well as address fire-damaged vegetation and other resulting debris and hazards both in and outside of PGE’s property and right-of-way. On October 20, 2020, the OPUC formally approved PGE’s request for deferral of such costs (Docket UM 2115). As of December 31, 2022 and December 31, 2021, PGE’s cumulative deferred costs related to the wildfire response was $31 million and $45 million, respectively. Among the provisions of Order 22-129, the OPUC established an earnings test for the 2020 Labor Day wildfire deferral. Pursuant to the earnings test outlined in the OPUC’s Order, the Company has released deferrals associated with the year ended 2020, resulting in a pre-tax charge to earnings for 2022 in the amount of $15 million. The amount recorded represents the Company’s estimate based on its interpretation of the OPUC’s earnings test. The charge was recorded to Generation, transmission and distribution expenses in the consolidated statements of income. On July 27, 2022, PGE made a request for amortization with the OPUC that would allow collection in customer prices over a seven-year amortization period beginning November 1, 2022. On October 24, 2022, PGE and parties submitted a stipulation with the OPUC reflecting an agreement that resolved all matters related to 2021 under this deferral and would allow PGE full recovery of the amounts deferred as of September 30, 2022, with amortization over a seven-year period. Order 22-435, issued November 3, 2022, adopted the stipulation approving amortization of amounts with amortization that began on January 1, 2023. COVID-19 pandemic led Oregon’s Governor to declare a state of emergency on March 8, 2020. Due to the adverse impacts of COVID-19 on economic activity, PGE has experienced an increase in bad debt expense, lost revenue, and other incremental costs. On March 20, 2020, PGE filed an application with the OPUC for deferral of lost revenue and certain incremental costs, such as bad debt expense, related to COVID-19. PGE, other utilities under the OPUC’s jurisdiction, intervenors, and OPUC staff held discussions regarding the scope of costs incurred by utilities which may qualify for deferral under Docket UM2114, Investigation into the Effects of the COVID-19 Pandemic on Utility Customers. The result of such discussions was an Energy Term Sheet (Term Sheet), which dictates costs in scope for deferral but is silent to the timing of recovery of such costs. On September 24, 2020, the Commission adopted a proposed OPUC Staff motion for Staff to execute stipulations incorporating the terms of the Term Sheet. PGE’s deferral application was approved by the Commission on October 20, 2020 with final stipulations for the Term Sheet approved on November 3, 2020. As of December 31, 2022 and December 31, 2021, PGE’s deferred balance was $22 million and $36 million, respectively, comprised primarily of bad debt expense in excess of what is currently considered and collected in customer prices. The Company has released deferrals associated with the year ended 2020, resulting in a pre-tax charge to earnings in 2022 in the amount of $2 million. The amount recorded represents the Company’s estimate based on its understanding of the OPUC’s intent to apply an earnings test to certain elements of utility COVID deferrals. PGE filed a request for amortization of deferred amounts on December 16, 2022, which reflected a $12 million adjustment primarily related to bad debt write-offs being lower than estimated. The request for amortization has an effective date of April 1, 2023, and is still pending the approval of the Commission. Amortization of any deferred costs will remain subject to OPUC review prior to amortization in customer prices and would be subject to an earnings test. PGE believes amounts deferred are probable of recovery as the Company’s prudently incurred costs were in response to the unique nature of the COVID-19 pandemic health emergency. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence and the application of an earnings review could result in a portion, or all, of PGE’s deferrals being disallowed for recovery. Such disallowance would be recognized as a charge to earnings. Wildfire mitigation represents incremental costs and investments made by PGE under SB 762, which was passed in the 2021 legislative session with an effective date of July 19, 2021. SB 762 instructs public utilities to develop, implement, and execute a wildfire protection plan, in which reasonable costs can be recovered through prices to all customers. The outcome of PGE’s 2022 GRC provided an annual amount of $24 million to be collected in base rates in regards to wildfire mitigation efforts. On July 1, 2022, PGE filed an application for reauthorization of OPUC Docket UM 2019 to defer incremental wildfire mitigation costs that exceed the amount granted in base rates. As of December 31, 2022, PGE’s deferred balance related to wildfire mitigation was $28 million. While the Company believes the full amount of the deferral is probable of recovery, the OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusions of overall prudence, or application of a potential earnings test, could result in a portion, or all, of PGE’s deferral being disallowed for recovery. Such disallowance would be recognized as a charge to earnings. Asset retirement removal costs represents the costs that do not qualify as AROs and are a component of depreciation expense allowed in customer prices. Such costs are recorded as a regulatory liability as they are collected in prices, and are reduced by actual removal costs incurred. Deferred income taxes represents income tax benefits primarily from property-related timing differences that will be refunded to customers when the temporary differences reverse. Substantially all of the amounts deferred are subject to tax normalization rules that require that the impact to the results of operations of reversing the excess deferred income tax balance cannot occur more rapidly than over the book life of the related assets. The Company uses the average rate assumption method to account for the refund to customers. For further information, see Note 12, Income Taxes. Asset retirement obligations represents the difference in the timing of recognition of: i) the amounts recognized for depreciation expense of the asset retirement costs and accretion of the ARO; and ii) the amount recovered in customer prices.

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- Definition The entire disclosure for detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit. + References No definition available. + Details
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