Regulatory Assets and Liabilities

12 Months Ended

Dec. 31, 2024

Regulatory Assets and Liabilities Disclosure [Abstract]

Schedule of Regulatory Assets and Liabilities [Text Block]

REGULATORY ASSETS AND LIABILITIES

The 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,
		2024						2023
		Earning a Return (1)		Not Earning a Return		Total		Total
Regulatory assets:
Price risk management	(2)	$	—	$	185	$	185	$	206
Pension plans	(3)	—		84		84		104



Trojan decommissioning activities	2059	—		161		161		139
February 2021 ice storm and damage	2029	58		—		58		67

January 2024 storm and damage	(4)	46		—		46		—
Reliability contingency events	(4)	90		—		90		—
2020 Labor Day wildfire	2029	24		—		24		28

Wildfire mitigation	(5)	43		—		43		29
Other	Various	70		76		146		140
Total regulatory assets		$	331	$	506	$	837	$	713
Regulatory liabilities:
Asset retirement removal costs	(6)	$	1,199	$	—	$	1,199	$	1,173
Deferred income taxes	(7)	179		—		179		177





Clearwater RAC	(4)	40		—		40		—
Other	Various	62		13		75		96
Total regulatory liabilities		$	1,480	$	13	$	1,493	$	1,446

(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 period has yet to be decided.

(5)Amounts deferred between January 1, 2022 and May 8, 2022 are amortizing over a 2-year period beginning October 20, 2023. Incremental amounts deferred between January 1, 2023 and December 31, 2024 have not yet been approved for amortization.

(6)Recovery or refund expected over the estimated lives of the underlying assets and treated as a reduction to rate base.

(7)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.

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.

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. For additional information concerning Trojan decommissioning activities, see Note 8, Asset Retirement Obligations.

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.

January 2024 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 storm that ultimately led Oregon’s Governor to declare a state of emergency in January 2024. The declared state of emergency allows PGE to seek recovery of incremental storm expenses through the OPUC pre-authorized emergency deferral mechanism, subject to the application of an earnings test. On February 9, 2024, PGE filed a Notice of Deferral with the OPUC, under Docket UM 2190, related to the emergency restoration costs for the January storm, and through December 31, 2024 the Company has deferred $46 million, including interest, under the deferral. As of December 31, 2024, PGE's preliminary regulated return on equity under the earnings test, based on actual results, did not exceed the OPUC's authorized rate. PGE believes the full amounts deferred as of December 31, 2024 are probable of recovery under the emergency deferral mechanism. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence, including application of the earnings test, 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.

Reliability contingency events represents costs deferred under the reliability contingency event (RCE) mechanism, which allows PGE to defer and recover 80% of prudent costs for RCEs above amounts forecasted in the Company’s AUT, without application of an earnings test, with the remaining 20% flowing through operating expenses and subject to the existing PCAM. As of December 31, 2024, PGE’s deferred balance related to RCEs was $90 million, which includes costs from multiple qualified RCEs during the year, but primarily associated with the January 2024 storm. PGE files the results of the PCAM annually with the OPUC no later than July 1, initiating a regulatory

review process that typically results in a final determination and order from the OPUC by the end of the year of filing, with any resulting refund or collection impacting customer prices effective January 1 of the following year. Cost recovery related to the 80% of prudently incurred RCE costs incurred in 2024 are included as a part of the PCAM filing for 2024, which the Company expects to file no later than July 1, 2025. PGE believes the deferred amounts as of December 31, 2024 are probable of recovery. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence 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.

2020 Labor Day wildfire represents 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.

Wildfire mitigation represents incremental costs and investments made by PGE related to intensifying efforts on its system to mitigate the risk of wildfire and improve resiliency to wildfire damage under Oregon Senate Bill 762, enacted in 2021. These efforts include enhanced tree and brush clearing, hardening and undergrounding equipment, and making emergency plans in close partnership with various land and emergency management agencies to further expand the use of a public safety power shutoff, when the risk warrants. In December 2023, PGE submitted its 2024 risk-based Wildfire Mitigation Plan, which was approved by the OPUC during the public meeting on July 9, 2024.

As of December 31, 2024 and December 31, 2023, PGE’s deferred balance related to wildfire mitigation was $43 million and $29 million, respectively. The 2024 balance is comprised of:

•Pre-AAC - Prior to establishing the collections noted below, PGE had deferred incremental costs related to wildfire mitigation and as of December 31, 2024 this balance is $7 million. 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. In May 2023, in Order No. 23-173, the OPUC approved an automatic adjustment clause mechanism to recover wildfire mitigation costs (capital and expense). PGE and certain parties agreed to a stipulation, which was adopted by the OPUC in October 2023, that allowed PGE to begin amortizing $27 million comprised of $23 million related to the September 30, 2023 deferred operating expense balance of $31 million and $4 million for capital related revenue requirement.

•2023 Base Rates - The outcome of PGE’s 2022 GRC provided an annual amount of $24 million to be collected in base rates for recovery of operating expenses related to wildfire mitigation efforts beginning May 9, 2022, through December 31, 2023. As of December 31, 2024, there was $1 million in the balancing account. PGE submitted an advice filing in January 2025 requesting recovery of these costs, which has yet to be approved by the Commission.

•2024 AAC - Beginning January 1, 2024, and in conjunction with the Company’s 2024 GRC proceeding, PGE removed the $24 million of wildfire mitigation operations and maintenance (O&M) expense recovery from base rates, with the intent of recovering the current year forecasted O&M expense within the automatic adjustment clause (AAC) in a separate tariff. On February 16, 2024, PGE submitted an advice filing to the OPUC to update the tariff to reflect prospective wildfire mitigation costs for 2024, which included $45 million of O&M expense and $4 million for the revenue requirement of capital placed in service. On July 23, 2024, the OPUC reached a decision that allowed PGE to begin collecting $24 million of O&M expense and $4 million for the revenue requirement of capital placed in service. Collection will occur over a nine-month period, which began August 1, 2024. Although the approved amount of collections in 2024 is less than actual costs, PGE does not believe it is precluded from deferring such costs and believes they are prudently incurred and probable of recovery. Any differences between actual expense and customer collections will be recorded as regulatory assets or liabilities within the AAC balancing account, which will be subject to a prudency review, but will not be subject to an earnings test. As of December 31, 2024, there was $35 million deferred as a regulatory asset in the balancing account. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence 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.

PGE filed its 2025 Wildfire Mitigation Plan update on December 31, 2024, which includes a request to begin collecting $55 million related to O&M and $9 million related to the capital revenue requirement. The Company expects an OPUC decision on this request by March 1, 2025.

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.

Clearwater RAC represents all costs and benefits associated with the Clearwater wind facility, which, for 2024, represents a net benefit.

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, which estimated the annual revenue requirement, net of NVPC benefits to be a refund to customers of approximately $30 million that would be included in customers prices June 1, 2024. Pursuant to the filing, PGE would defer the revenue requirement, net of NVPC benefits, from the in-service date of January 2024 until Clearwater was reflected in customer prices. The OPUC delayed the tariff effective date and issued an order on September 13, 2024 in Docket UE 427 that further suspended the tariff effective date until March 1, 2025 pending additional regulatory review. On December 20, 2024, the OPUC issued an order to exclude Clearwater from the 2025 GRC as prudency is being determined in a separate proceeding with target price effective date of March 1, 2025. PGE will continue to defer the revenue requirement, net of NVPC benefits until included in customer prices. PGE anticipates amortization to begin shortly after the rate effective date. As of December 31, 2024, the Company recorded a net $40 million regulatory liability, which represents the deferred revenue requirement that PGE believes is probable of recovery, net of NVPC that is probable of refund to customers under the RAC. The OPUC has significant discretion on overall prudence and in making the final determination of recovery or refund. Any cost disallowance or increased refunds would be recognized as a charge to earnings.