Commitments and Guarantees

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND GUARANTEES

Purchase Commitments

As of December 31, 2024, PGE’s estimated future minimum payments pursuant to purchase obligations for the following five years and thereafter are as follows (in millions):


	Payments Due
	2025		2026		2027		2028		2029		Thereafter		Total
Capital and other purchase commitments	$	564	$	147	$	82	$	12	$	2	$	40	$	847
Purchased power and fuel:
Electricity purchases	560		458		347		351		343		3,009		5,068
Capacity contracts	186		218		128		129		130		271		1,062
Public utility districts	11		10		9		7		1		14		52
Natural gas	109		89		45		44		30		177		494
Coal and transportation	27		—		—		—		—		—		27
Total	$	1,457	$	922	$	611	$	543	$	506	$	3,511	$	7,550

Capital and other purchase commitments—Certain commitments have been made for 2025 and beyond that include those related to hydro licenses, upgrades to generation, distribution, and transmission facilities, information systems, and system maintenance work. Termination of these agreements could result in cancellation charges.

Electricity purchases and Capacity contracts—PGE has PPAs with counterparties, which expire at varying dates through 2053, and power capacity contracts through 2051. Expenses associated with these commitments are recorded in Purchased power and fuel on the Company’s consolidated statements of income.

PGE has evaluated its long-term PPAs under variable interest entity accounting guidance. The Company has concluded that it either has no variable interest in the PPAs or, where variable interests exist, PGE is not the primary beneficiary. As a result, consolidation of these entities is not required. This determination is based on PGE lacking both control over significant activities and obligation to absorb losses or receive benefits from the entities’ performance. PGE's financial exposure in these PPAs is limited to capacity and energy payments, which are recovered through the AUT and are subject to the PCAM as detailed in Note 2.

Public utility districts—PGE has long-term PPAs with certain public utility districts (PUDs) in the state of Washington:

•Grant County PUD for the Priest Rapids and Wanapum Hydroelectric Projects, and

•Douglas County PUD for the Wells Hydroelectric Project.

Under one of the Grant County agreements, the Company is required to pay its proportionate share of the operating and debt service costs of the hydroelectric projects whether they are operable or not. Under one of the Douglas

County agreement, the Company is required to make monthly payments for capacity that will not vary with annual project generation provided to PGE. The Company has estimated the capacity payments, which are subject to annual adjustments based on Douglas County’s loads, and included the estimated amounts in the table above. The future minimum payments for the PUDs in the preceding table reflect the principal and capacity payments only and do not include interest, operation, or maintenance expenses.

Selected information regarding these projects is summarized as follows (dollars in millions):


	Capacity Charges and Revenue Bonds as of December 31, 2024		PGE’s Average Share as of December 31, 2024			Contract Expiration	Total PGE Contract Costs
			Output		Capacity		2024		2023		2022
					(in MW)
Priest Rapids and Wanapum	$	1,673	8.6	%	163	2052	$	75	$	77	$	45
Wells	273		9.0		29	2028	11		11		12

The agreements for Priest Rapids and Wanapum provide that, should any other purchaser of output default on payments as a result of bankruptcy or insolvency, PGE would be allocated a pro-rata share of the output and operating and debt service costs of the defaulting purchaser. For Wells, PGE would be responsible for a pro-rata portion of the defaulting purchaser’s share with no limitation, regardless of the reason for any default. For Priest Rapids and Wanapum, PGE would be allocated up to a cumulative maximum that would not adversely affect the tax-exempt status of any of the public utility district’s outstanding debt for the portion of the project that benefits tax-exempt purchasers.

Natural gas—PGE has contracts for the purchase and transportation of natural gas from domestic and Canadian sources for its natural gas-fired generating facilities.

Coal—The Company has a coal agreement with take-or-pay provisions related to Colstrip Units 3 and 4 coal-fired generating plant (Colstrip) that expires in December 2025.

Guarantees

PGE enters into financial agreements, and purchase and sale agreements involving physical delivery of, both power and natural gas that include indemnification provisions relating to certain claims or liabilities that may arise relating to the transactions contemplated by these agreements. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. PGE periodically evaluates the likelihood of incurring costs under such indemnities based on the Company’s historical experience and the evaluation of the specific indemnities. In connection with the agreement to transfer certain tax credits generated in 2023 and 2024, PGE provided indemnification against the buyer’s losses related to a failure to satisfy the PTC and ITC qualification or transferability requirements under the Internal Revenue Code, but not due to the action or legal tax status of the buyer or a change in tax law. As of December 31, 2024, management believes the likelihood is remote that PGE would be required to perform under such indemnification provisions or otherwise incur any significant losses with respect to such indemnities. The Company has not recorded any liability on the consolidated balance sheets with respect to these indemnities.