Long-term Debt

12 Months Ended

Dec. 31, 2024

Long-term Debt Disclosure [Abstract]

LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS

Long-term debt

Long-term debt consists of the following (dollars in millions):


	As of December 31,
	2024		2023
First Mortgage Bonds, rates range from 1.82% to 6.88%, with a weighted average rate of 4.52% in 2024 and 4.32% in 2023, due at various dates through 2059.	$	4,250	$	3,880
Unsecured term bank loan, variable rate of 5.30% at December 31, 2024	170		—
Pollution Control Revenue Bonds, rates at 2.13% and 2.38%, due 2033	119		119

Total long-term debt	4,539		3,999
Less: Unamortized debt expense	(15)		(14)


Less: Current portion of long-term debt	(170)		(80)
Long-term debt, net of current portion	$	4,354	$	3,905

First Mortgage Bonds—On February 22, 2024, PGE entered into a Bond Purchase Agreement related to the sale of $450 million in FMBs. The Bonds were issued and funded in full on February 22, 2024 and consist of:

•a series, due in 2029, in the amount of $100 million that will bear interest from its issuance date at an annual rate of 5.15%;

•a series, due in 2034, in the amount of $100 million that will bear interest from its issuance date at an annual rate of 5.36%; and

•a series, due in 2054, in the amount of $250 million that will bear interest from its issuance date at an annual rate of 5.73%.

The Indenture securing PGE’s outstanding FMBs constitutes a direct first mortgage lien on substantially all regulated utility property, other than expressly excepted property. Interest is payable semi-annually on FMBs.

On November 15, 2024, the Company made a scheduled $80 million repayment of a 3.51% Series First Mortgage Bond with a portion of the proceeds from the Term Loan described in the following paragraph.

Term Loan—On November 14, 2024, PGE obtained a 366-day term loan from lenders in the aggregate principal of $300 million under a 366-Day Bridge Credit Agreement. Pursuant to the Agreement, on November 14, 2024, PGE drew a loan from the lenders in the aggregate principal of $220 million. The term loan bears interest for the relevant interest period at the Term Secured Overnight Financing Rate (SOFR) plus Term SOFR Adjustment Rate of 10 basis points and Applicable Margin of 80.0 basis points. The interest rate is subject to adjustment pursuant to the terms of the loan. On December 31, 2024, PGE repaid $50 million of the term loan, leaving an outstanding balance of $170 million.

Pollution Control Revenue Bonds—In March 2020, PGE completed the remarketing of an aggregate principal amount of $119 million of Pollution Control Revenue Refunding Bonds (PCRBs), which consist of $98 million aggregate principal that bear an interest rate of 2.125%, and $21 million aggregate principal that bear an interest rate of 2.375%, both due in 2033. At the time of remarketing, the Company chose a new interest rate period that was fixed term. The new interest rate was based on market conditions at the time of remarketing. The PCRBs could be backed by FMBs or a bank letter of credit depending on market conditions. Interest is payable semi-annually on the PCRBs.

As of December 31, 2024, the future minimum principal payments on long-term debt are as follows (in millions):


Years ending December 31:
2025	$	170
2026	—
2027	160
2028	100
2029	200
Thereafter	3,909
	$	4,539

Pelton/Round Butte financing arrangement

Under terms of an agreement approved by the OPUC in 2000, PGE had a 66.67% ownership interest in the 455 Megawatt (MW) Pelton/Round Butte hydroelectric project on the Deschutes River (Pelton/Round Butte), with the remaining interest held by the Confederated Tribes of the Warm Springs Reservation of Oregon (CTWS). In the agreement, the CTWS had an option to purchase an additional undivided 16.66% ownership interest in Pelton/Round Butte which was exercised in 2022. Under terms of the agreement, the CTWS has a second option in 2036 to purchase an undivided 0.02% interest in Pelton/Round Butte. If the second option is exercised, the CTWS’ ownership percentage would exceed 50%. PGE remains the operator of the project.

PGE has agreed to purchase 100% of the CTWS’ share of the project’s output under a power purchase agreement (PPA) through 2040. The exercise of the purchase option in 2022 was evaluated as a sale-leaseback arrangement, and PGE determined that the transaction did not qualify for sale-leaseback accounting. As a result, the transaction is accounted for as a financing arrangement. PGE records the tangible utility asset within Electric utility plant, net on the consolidated balance sheets as if it were the legal owner and recognizes depreciation expense over the estimated useful life. The monthly PPA payments are split between interest expense and a reduction of the principal portion of the financing obligation, which is included in Other noncurrent liabilities. Differences between expense recognition and timing of payments is deferred as a regulatory asset or liability in order to match what is being recovered in customer prices.

As of December 31, 2024, the future minimum payments on the financing arrangement are as follows (in millions):


Years ending December 31:
2025	$	5
2026	5
2027	5
2028	5
2029	5
Thereafter	59
Total Payments	84
Less: Imputed Interest	(52)
Present value of minimum payments	$	32