BALANCE SHEET COMPONENTS

Accounts Receivable, Net

Accounts receivable is net of an allowance for uncollectible accounts of $5 million as of September 30, 2011 and December 31, 2010.

The activity in the allowance for uncollectible accounts is as follows (in millions):



	Nine Months Ended September 30,
	2011			2010
Balance as of beginning of period	$	5		$	5
Provision, net	6			5
Amounts written off, less recoveries	(6		)	(5		)
Balance as of end of period	$	5		$	5

Inventories

Inventories consist primarily of materials, supplies, and fuel. Materials and supplies inventories are used in operations and maintenance and capital activities, and are recorded at average cost. Fuel inventories include natural gas, coal, and oil, which are used in PGE’s generating plants, and are recorded at average cost. PGE periodically assesses the realizability of inventory for purposes of determining that inventory is recorded at the lower of average cost or market.

Electric Utility Plant, Net

Electric utility plant, net consists of the following (in millions):



	September 30, 2011			December 31, 2010
Electric utility plant	$	6,509		$	6,279
Construction work in progress	134			125
Total cost	6,643			6,404
Less: accumulated depreciation and amortization	(2,388		)	(2,271		)
Electric utility plant, net	$	4,255		$	4,133

In 2011, $7 million of costs related to the Cascade Crossing Transmission Project were transferred to Construction work in progress. Such costs were previously included within preliminary engineering, which is included in Other noncurrent assets in the condensed consolidated balance sheets.

Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $147 million and $133 million as of September 30, 2011 and December 31, 2010, respectively. Amortization expense related to intangible assets was $5 million and $4 million for the three months ended September 30, 2011 and 2010, respectively, and $14 million and $13 million for the nine months ended September 30, 2011 and 2010, respectively.

Regulatory Assets and Liabilities

Regulatory assets and liabilities consist of the following (in millions):



	September 30, 2011				December 31, 2010
	Current		Noncurrent		Current		Noncurrent
Regulatory assets:
Price risk management	$	187	$	147	$	175	$	185
Pension and other postretirement plans	—		205		—		213
Deferred income taxes	—		89		—		95
Deferred broker settlements	8		—		24		—
Renewable energy deferral	6		—		22		—
Debt reacquisition costs	—		21		—		23
Other	7		19		—		28
Total regulatory assets	$	208	$	481	$	221	$	544
Regulatory liabilities:
Asset retirement removal costs	$	—	$	626	$	—	$	588
Asset retirement obligations	—		35		—		33
Power cost adjustment mechanism	—		17		—		—
Regulatory treatment of income taxes (SB 408)	6		1		5		9
Trojan ISFSI pollution control tax credits	5		6		18		4
Other	1		27		2		23
Total regulatory liabilities	$	12	$	712	$	25	$	657

Other Current Liabilities

Other current liabilities consist of the following (in millions):



	September 30, 2011		December 31, 2010
Accrued taxes payable	$	66	$	22
Accrued interest payable	36		26
Accrued dividends payable	21		20
Other	8		10
Total other current liabilities	$	131	$	78

Other Noncurrent Liabilities

During 2011, an updated decommissioning study for the Company’s Boardman coal-fired plant was completed, which assumed that Boardman’s coal-fired operations cease in 2020 rather than 2040. As a result of the study, PGE increased its asset retirement obligation related to Boardman by approximately $23 million, with a corresponding increase in the cost basis of the plant, included in Electric utility plant, net on the condensed consolidated balance sheets. Such transaction is non-cash and is excluded from investing activities in the statement of cash flows for the nine months ended September 30, 2011.

Credit Facilities

PGE has the following unsecured revolving credit facilities:


•	A $370 million syndicated credit facility, with $10 million and $360 million scheduled to terminate in July 2012 and July 2013, respectively;


•	A $200 million syndicated credit facility, which is scheduled to terminate in December 2012; and


•	A $30 million credit facility, which is scheduled to terminate in June 2013.

Pursuant to the individual terms of the agreements, all credit facilities may be used for general corporate purposes and as backup for commercial paper borrowings. The $370 million and $30 million credit facilities also permit the issuance of standby letters of credit. All credit facilities contain customary covenants and default provisions, including a requirement that limits consolidated indebtedness, as defined in the agreements, to 65% of total capitalization. As of September 30, 2011, PGE was in compliance with this covenant with a 52.1% debt to total capital ratio.

The Company has a commercial paper program under which it may issue commercial paper for terms of up to 270 days, limited to the unused amount of credit under the credit facilities.

Pursuant to an order issued by the Federal Energy Regulatory Commission (FERC), the Company is authorized to issue short-term debt up to $750 million through February 6, 2012. The authorization contains a standard provision which provides that if utility assets financed by unsecured debt are divested, then a proportionate share of the unsecured debt must also be divested.

As of September 30, 2011, PGE had $89 million of letters of credit outstanding under the credit facilities and no commercial paper or borrowings outstanding. As of September 30, 2011, the aggregate unused credit available under the credit facilities was $511 million.

Pension and Other Postretirement Benefits

Components of net periodic benefit cost are as follows for the three months ended September 30 (in millions):



	Defined Benefit Pension Plan						Other Postretirement Benefit Plans					Non-Qualified Benefit Plans
	2011			2010			2011		2010			2011		2010
Service cost	$	3		$	3		$	1	$	—		$	—	$	—
Interest cost	7			7			1		1			1		—
Expected return on plan assets	(10		)	(10		)	—		(1		)	—		—
Amortization of prior service cost	—			1			—		1			—		—
Amortization of net actuarial loss	2			—			—		—			—		1
Net periodic benefit cost	$	2		$	1		$	2	$	1		$	1	$	1

Components of net periodic benefit cost are as follows for the nine months ended September 30 (in millions):



	Defined Benefit Pension Plan						Other Postretirement Benefit Plans					Non-Qualified Benefit Plans
	2011			2010			2011		2010			2011		2010
Service cost	$	9		$	9		$	2	$	1		$	—	$	—
Interest cost	21			21			3		3			2		1
Expected return on plan assets	(30		)	(30		)	—		(1		)	—		—
Amortization of prior service cost	—			1			—		1			—		—
Amortization of net actuarial loss	6			2			—		1			—		1
Net periodic benefit cost	$	6		$	3		$	5	$	5		$	2	$	2