8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2015

PORTLAND GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Oregon	001-5532-99	93-0256820
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer                Identification No.)

121 SW Salmon Street, Portland, Oregon 97204

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (503) 464-8000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02    Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02.

On July 28, 2015, Portland General Electric Company (the “Company”) issued a press release announcing its financial results for the three and six month periods ended June 30, 2015. The press release is furnished herewith as Exhibit 99.1 to this Report.

Item 7.01    Regulation FD Disclosure.

The following information is furnished pursuant to Item 7.01.

At 11:00 a.m. ET on Tuesday, July 28, 2015, the Company will hold its quarterly earnings call and web cast, and will utilize a slide presentation in conjunction with the earnings call. A copy of the slide presentation is furnished herewith as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
99.1	Press Release issued by Portland General Electric Company dated July 28, 2015.
99.2	Portland General Electric Company Second Quarter 2015 Slides dated July 28, 2015.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			PORTLAND GENERAL ELECTRIC COMPANY
			(Registrant)
Date:	July 27, 2015	By:	/s/ James F. Lobdell
			James F. Lobdell
			Senior Vice President of Finance, Chief Financial Officer and Treasurer

3

EX-99.1

Exhibit 99.1

	Portland General Electric One World Trade Center 121 S.W. Salmon Street Portland, Oregon 97204 News Release
FOR IMMEDIATE RELEASE
July 28, 2015
Media Contact:	Investor Contact:
Melanie Moir	Bill Valach
Corporate Communications	Investor Relations
Phone: 503-464-8790	Phone: 503-464-7395

Portland General Electric announces second quarter results

Reaffirms 2015 earnings guidance

PORTLAND, Ore. — Portland General Electric Company (NYSE: POR)today reported net income of $35 million, or 44 cents per diluted share, for the second quarter of 2015. This compares with net income of $35 million, or 43 cents per diluted share, for the second quarter of 2014. Net income was comparable quarter over quarter as increased energy deliveries and the incremental earnings contribution from new generating resources were largely offset by the impact of higher net variable power costs (NVPC) in the second quarter of 2015 when compared to the second quarter of 2014. Actual NVPC approximated baseline NVPC for the second quarter of 2015, while actual NVPC was $11 million below baseline NVPC for the second quarter of 2014.

"Higher energy deliveries and excellent operations, including strong system reliability and power supply management, collectively offset the effects of lower hydro and wind conditions," said Jim Piro, president and chief executive officer. “We are on track to meet our operating and revised financial objectives for the year, and I’m pleased with the growth we’re seeing in our operating area and the continued positive economic trends in Oregon.”

Company Updates

Generation Project: Construction is proceeding on the Carty Generating Station, a 440 megawatt natural gas-fired baseload power plant near Boardman, Ore. The plant is scheduled to be placed into service during the second quarter of 2016 at an estimated cost of $450 million, excluding allowance for funds used during construction (AFDC). The 500 KV Grassland Substation serving the site has been completed and construction of the 24 mile lateral gas pipeline commenced in early June. Construction on the plant is now approximately 60 percent complete.

Equity Forward Sale Agreement: In June 2015, PGE physically settled in full its Equity Forward Sale Agreement, with the issuance of the remaining 10.4 million shares of common stock available under the agreement, in exchange for net proceeds of $271 million.

2016 General Rate Case: In February, PGE filed a general rate case with the Oregon Public Utility Commission (OPUC) with a 2016 test year which would result in an overall price increase of 3.7 percent effective in 2016, primarily to recover the costs associated with the Carty Generating Station. The request is based on a return on equity of 9.90 percent, a capital structure of 50 percent debt and 50 percent equity, and rate base of $4.5 billion.

1

Exhibit 99.1

In June, a partial stipulation was filed covering agreements reached among PGE, OPUC Staff, and other parties on a variety of issues in the proceeding, including cost recovery of the Carty Generating Station, subject to meeting certain conditions. In addition, PGE has updated load forecasts and filed revised 2016 power cost estimates. The net increase in annual revenue requirement as revised by the June stipulation and the updates to the Company’s 2016 power cost and load forecasts consists of the following (in millions):

	As Filed February 12, 2015	June 23, 2015 Stipulation and Updates	As Revised July 15, 2015
Carty	$83	$2	$85
Base business cost	$39	($21)	$18
Supplemental tariff updates	($56)	$(6)	$(62)
Annual revenue requirement, net	$66	$(25)	$41

In July, PGE filed motions to suspend both the non-power cost and power cost procedural schedules after reaching a settlement with OPUC staff and other parties on all issues in the case except for one power cost issue. A new updated schedule has been adopted for this remaining issue. Details on the new settlements will be available when the stipulation is filed. All stipulations are subject to OPUC approval and PGE expects a final order from the Commission before the end of 2015. New customer prices are expected to become effective in 2016, with an initial price decrease January 1, 2016 and a price increase effective as Carty becomes operational, which is expected in the second quarter of 2016.

Second quarter operating results

Retail revenues increased $24 million, or 6 percent, to $420 million for the second quarter of 2015 from $396 million for the second quarter of 2014. The increase consisted of:

• $22 million increase related to a 5.6 percent higher volume of energy delivered in the second quarter of 2015 compared with the second quarter of 2014, with increases in energy deliveries across all customer classes as follows: residential 4.9 percent; commercial 3.6 percent; and industrial 9.8 percent; and

• $9 million increase related to a 2.3 percent increase in average customer prices largely resulting from the 2015 general rate case; partially offset by

• $7 million decrease related to various supplemental tariff changes, including the return of $5 million to customers in 2015 of proceeds received in connection with the settlement of a legal matter and related tax credits (offset in depreciation and amortization).

Net variable power costs (purchased power and fuel expense, net of wholesale revenues) (NVPC) increased $5 million for the second quarter of 2015 compared with the second quarter of 2014, and consisted of the following:

• $9 million related to a 7 percent increase in total system load; partially offset by

• $3 million related to a 1 percent decline in the average variable power cost per MWh; and

• $1 million increase in wholesale revenue, largely related to a 5 percent increase in wholesale sales volume.

The decrease in the average variable power costs was largely due to an increase in lower-cost thermal generation during the second quarter of 2015. Thermal generation was economically displaced with purchased power for the majority of the second quarter of 2014. In addition, an increase in the Company’s wind generating resources from the addition of Tucannon River, partially offset by a decrease in energy received from hydro resources, contributed to the decrease in the average variable power cost.

For the second quarter of 2015, actual NVPC approximated baseline NVPC included in the annual power cost update tariff (AUT), while NVPC for the second quarter of 2014 fell below baseline NVPC included in the AUT by $11 million. Forecasted NVPC for 2015 are expected to be within the deadband of the power cost adjustment

2

Exhibit 99.1

mechanism; accordingly, no estimated collection from, or refund to customers, has been recorded pursuant to the Power Cost Adjustment Mechanism.

Generation, transmission and distribution expense decreased $1 million, or 1 percent, in the second quarter of 2015 compared with the second quarter of 2014. A $3 million decrease resulting from differences in the timing of the annual planned maintenance outages at Boardman in 2014 and 2015, was largely offset by higher operating and maintenance expenses in 2015, driven by the addition of Port Westward Unit 2 and Tucannon River, and higher information technology expenses. The planned maintenance outage at Boardman occurred in the first quarter of 2015, compared with the second quarter of 2014.

Administrative and other expense in the second quarter of 2015 was $4 million, or 7 percent, higher than in the second quarter of 2014 due to a combination of higher expenses for legal and environmental services, pension, information technology and other items partially offset by a $2 million reduction in the provision for bad debt expense.

Depreciation and amortization expense increased $3 million, or 4 percent, in the second quarter of 2015 compared with the second quarter of 2014. Such increase consisted of $6 million related to capital additions and $2 million resulting from changes in asset retirement obligation assumptions, partially offset by $5 million related to the amortization of deferred regulatory liabilities for the Trojan spent fuel settlement and related tax credits in 2015.

Interest expense in the second quarter of 2015 was $5 million, or 22 percent, higher than in the second quarter of 2014, with $3 million related to a higher average balance of debt outstanding and $2 million related to lower AFDC from the completion of construction of two new generating resources in December 2014.

Other income, net in the second quarter of 2015 was $4 million lower than in the second quarter of 2014 due to a decrease in the allowance for equity funds used during construction resulting from the lower average CWIP balance.

Income tax expense was $15 million in the second quarter of 2015 compared with $10 million in the second quarter of 2014. The increase was largely due to higher pre-tax income for 2015 compared to 2014 and the tax impact of lower AFDC.

2015 earnings guidance

PGE is reaffirming its full-year 2015 earnings guidance of $2.05 - $2.20 per share, based on the following assumptions:

• Retail deliveries growth adjusted for weather of approximately 1.5 percent;

• Below average hydro conditions;

• Normal thermal plant and wind generation for the remainder of the year;

• Depreciation and amortization expense between $300 and $310 million; and,

• Capital expenditures of $598 million.

Second quarter 2015 earnings call and web cast — July. 28

PGE will host a conference call with financial analysts and investors on Tuesday, July 28, at 11 a.m. ET. The conference call will be webcast live on the PGE website at portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Tuesday, July 28 through Tuesday, August 4.

Jim Piro, president and CEO; Jim Lobdell, senior vice president of finance, CFO, and treasurer; and Bill Valach, director, investor relations, will participate in the call. Management will respond to questions following formal comments.

3

Exhibit 99.1

The attached unaudited condensed consolidated statements of income, condensed consolidated balance sheets, and condensed consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

# # # # #

About Portland General Electric Company

Portland General Electric Company is a vertically integrated electric utility that serves approximately 849,000 residential, commercial and industrial customers in the Portland/Salem metropolitan area of Oregon. The company’s headquarters are located at 121 S.W. Salmon Street, Portland, Oregon 97204. Visit PGE’s website at portlandgeneral.com.

Safe Harbor Statement

Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the company’s generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; and general economic and financial market conditions. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company assumes no obligation to update any such forward-looking statement. Prospective investors should also review the risks and uncertainties listed in the company’s most recent annual report on form 10-K and the company’s reports on forms 8-K and 10-Q filed with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time.

POR-F

Source: Portland General Electric Company

4

Exhibit 99.1

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Revenues, net	$	450	$	423	$	923	$	916
Operating expenses:
Purchased power and fuel	148		142		309		326
Generation, transmission and distribution	66		67		128		121
Administrative and other	60		56		120		110
Depreciation and amortization	76		73		151		148
Taxes other than income taxes	28		27		58		55
Total operating expenses	378		365		766		760
Income from operations	72		58		157		156
Interest expense (1)	28		23		58		48
Other income:
Allowance for equity funds used during construction	5		9		9		15
Miscellaneous income, net	1		1		2		—
Other income, net	6		10		11		15
Income before income tax expense	50		45		110		123
Income tax expense	15		10		25		30
Net income	35		35		$	85	$	93
Weighted-average shares outstanding (in thousands):
Basic	80,745		78,183		79,515		78,154
Diluted	80,745		80,051		79,515		79,742
Earnings per share:
Basic	$	0.44	$	0.44	$	1.07	$	1.19
Diluted	$	0.44	$	0.43	$	1.07	$	1.16
Dividends declared per common share	$	0.300	$	0.280	$	0.580	$	0.555
(1) Net of an allowance for borrowed funds used during construction of $3 million and $5 million in the three months ended June 30, 2015 and 2014, respectively, and $6 million and $9 million in the six months ended June 30, 2015 and 2014, respectively.

5

Exhibit 99.1

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	June 30,		December 31,
	2015		2014
ASSETS
Current assets:
Cash and cash equivalents	$	122	$	127
Accounts receivable, net	122		149
Unbilled revenues	87		93
Inventories	101		82
Regulatory assets—current	117		133
Other current assets	97		115
Total current assets	646		699
Electric utility plant, net	5,874		5,679
Regulatory assets—noncurrent	552		494
Nuclear decommissioning trust	40		90
Non-qualified benefit plan trust	35		32
Other noncurrent assets	51		48
Total assets	$	7,198	$	7,042
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	125	$	156
Liabilities from price risk management activities - current	101		106
Current portion of long-term debt	55		375
Accrued expenses and other current liabilities	228		236
Total current liabilities	509		873
Long-term debt, net of current portion	2,204		2,126
Regulatory liabilities—noncurrent	923		906
Deferred income taxes	648		625
Unfunded status of pension and postretirement plans	243		237
Liabilities from price risk management activities—noncurrent	187		122
Asset retirement obligations	135		116
Non-qualified benefit plan liabilities	105		105
Other noncurrent liabilities	23		21
Total liabilities	4,977		5,131
Total equity	2,221		1,911
Total liabilities and equity	$	7,198	$	7,042

6

Exhibit 99.1

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Six Months Ended June 30,
	2015			2014
Cash flows from operating activities:
Net income	$	85		$	93
Depreciation and amortization	151			148
Other non-cash income and expenses, net included in Net income	45			37
Changes in working capital and other, net	(33		)	24
Net cash provided by operating activities	248			302
Cash flows from investing activities:
Capital expenditures	(313		)	(501		)
Distribution from Nuclear decommissioning trust	50			—
Sales tax refund received related to Tucannon River Wind Farm	23			—
Other, net	2			7
Net cash used in investing activities	(238		)	(494		)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs	271			—
Repayment of long-term debt, net of issuances	(242		)	225
Dividends paid	(44		)	(43		)
Net cash (used in) provided by financing activities	(15		)	182
Decrease in cash and cash equivalents	(5		)	(10		)
Cash and cash equivalents, beginning of period	127			107
Cash and cash equivalents, end of period	$	122		$	97

7

Exhibit 99.1

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Revenues (dollars in millions):
Retail:
Residential	$	200		$	188		$	434		$	445
Commercial	167			159			322			317
Industrial	57			53			113			105
Subtotal	424			400			869			867
Other retail revenues, net	(4		)	(4		)	(2		)	(2		)
Total retail revenues	420			396			867			865
Wholesale revenues	18			17			37			34
Other operating revenues	12			10			19			17
Total revenues	$	450		$	423		$	923		$	916
Energy sold and delivered (MWh in thousands):
Retail energy sales:
Residential	1,628			1,552			3,559			3,726
Commercial	1,753			1,675			3,384			3,326
Industrial	870			785			1,692			1,525
Total retail energy sales	4,251			4,012			8,635			8,577
Retail energy deliveries:
Commercial	127			139			256			269
Industrial	291			272			563			533
Total retail energy deliveries	418			411			819			802
Total retail energy sales and deliveries	4,669			4,423			9,454			9,379
Wholesale energy deliveries	538			512			1,118			893
Total energy sold and delivered	5,207			4,935			10,572			10,272
Number of retail customers at end of period:
Residential							741,507			735,153
Commercial							106,503			106,139
Industrial							201			200
Direct access							389			438
Total retail customers							848,600			841,930

8

Exhibit 99.1

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS, continued

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Sources of energy (MWh in thousands):
Generation:
Thermal:
Coal	727		367		1,211		1,600
Natural gas	984		43		1,654		991
Total thermal	1,711		410		2,865		2,591
Hydro	318		448		796		981
Wind	515		404		803		621
Total generation	2,544		1,262		4,464		4,193
Purchased power:
Term	1,376		2,562		2,876		3,782
Hydro	383		489		913		867
Wind	96		102		153		165
Spot	621		294		1,861		1,041
Total purchased power	2,476		3,447		5,803		5,855
Total system load	5,020		4,709		10,267		10,048
Less: wholesale sales	(538	)	(512	)	(1,118	)	(893	)
Retail load requirement	4,482		4,197		9,149		9,155

	Heating Degree-days		Cooling Degree-days
	2015	2014	2015	2014
First quarter	1,481	1,891	—	—
Average	1,864	1,864	—	—
Second quarter	513	530	207	57
Average	713	713	70	70
Year-to-date	1,994	2,421	207	57
Year-to-date average *	2,577	2,577	70	70

* — “Average” amounts represent the 15-year rolling averages provided by the National Weather Service (Portland Airport).

9

EX-99.2

Earnings Conference Call Second Quarter 2015 Exhibit 99.2

Cautionary Statement Information Current as of July 28, 2015 Except as expressly noted, the information in this presentation is current as of July 28, 2015 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 — and should not be relied upon as being current as of any subsequent date. PGE undertakes no duty to update the presentation, except as may be required by law. Forward-Looking Statements Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the company’s generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; and general economic and financial market conditions. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company assumes no obligation to update any such forward-looking statement. Prospective investors should also review the risks and uncertainties listed in the company’s most recent annual report on form 10-K and the company’s reports on forms 8- K and 10-Q filed with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time. 2

Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO On Today’s Call ▪ Financial Performance ▪ Operational Update ▪ Economy and Customers ▪ Strategic Initiatives ▪ Financial Update ▪ Regulatory Update 3

Second Quarter 2015 Earnings Results $2.18 NI in millions Q2 2014 Q2 2015 Net Income $35 $35 Diluted EPS $0.43 $0.44 $2.05- $2.20 2014 EPS 2015E EPS Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q3-Q4: $0.99-$1.14 Q1 4

Accomplishments and Operational Update 5

Economic Update (1) Net of approximately 1.5% of energy efficiency Economic Update ▪ Unemployment of 4.8 percent in our operating area, below U.S and Oregon ▪ Oregon second in nation for personal income growth and sixth in nation for state gross domestic product growth ▪ Average customer count increased approximately 1% over past year ▪ Energy deliveries up 5.8 percent, weather adjusted, for the quarter ▪ Weather-adjusted 2015 load growth of approximately 1.5%(1) 6

New Generation: Baseload Resource Carty CapEx: $450M Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440 MW / Natural Gas Technology Mitsubishi Turbine EPC Contractor Abener/Abengoa Estimated In-Service Date Q2 2016 Customer Price Impact 4.7 percent Project Update 500 KV Grassland Substation serving the site complete; construction of 24 mile lateral gas pipeline commenced; construction ~60% complete 2013 2014 2015 2016 7

Estimated Capital Expenditures (1) Consists of ongoing CapEx and hydro relicensing per the Quarterly Form 10-Q filed on July 28, 2015, amounts exclude AFDC ▪ Carty Generating Station is expected to be in service in the second quarter of 2016. ▪ Management continues to evaluate incremental reliability and efficiency investments in our operating systems and fuel supply management that provide value to customers. 1 8 $598 $396 $366 $298 $285 Current Capital Outlook

2016 Integrated Resource Plan IRP Process Timeline 2015 Develop IRP / Public Process 2016 File IRP 2017 Acknowledgement from OPUC expected and RFP process commences Areas of Focus ▪ Energy efficiency and demand side actions ▪ Evaluation of carbon and the Clean Energy plan ▪ Energy and capacity needs ▪ Boardman replacement ▪ 2020 Renewable Portfolio Standard requirement of 20% ▪ Other topics 9

Second Quarter 2015 Financial Results NI in millions Q2 2014 Q2 2015 Net Income $35 $35 Diluted EPS $0.43 $0.44 Key Quarter over Quarter Drivers Increased energy deliveries across all customer classes  Additions of Tucannon River, Port Westward 2 in rate base and Carty AFDC  Q2 2015 power costs at baseline of the PCAM versus Q2 2014 $11 MM below baseline  10

Q2 2015 Sources of Power Total Revenues and Net Variable Power Costs in millions Q2 2014 Q2 2015 Total Revenues $423 $450 Purchased Power & Fuel $142 $148 Less: Wholesale Sales $(17) $(18) Net Variable Power Costs $125 $130 73% 8% 9% 9% 1% 49% 15% 6% 20% Coal Natural Gas Hydro Wind Purchased Power Q2 2014 Sources of Power 10% 11

Operating Expenses In Millions Q2 2014 Q2 2015 Generation, Transmission & Distribution $67 $66 Administrative & General $56 $60 Total O&M $123 $126 Depreciation & Amortization $73 $76 Interest Expense, Net $23 $28 Other Income, Net $10 $6 Income Taxes $10 $15 12

General Rate Case - 2016 Test Year Proposed for 2016 Revenue increase: $66 Million Projected average price increase: 3.7% Return on Equity (ROE): 9.9% Cost of Capital: 7.67% Capital Structure: 50% debt, 50% equity Rate Base: $4.5 Billion 2016 GRC Update As Filed 2/12/2015 6/23/2015 Stipulation and Updates As Revised 7/15/2015(1) Carty (annualized) $83 $2 $85 Base Business Needs $39 ($21) $18 Supplemental Tariff Updates ($56) ($6) ($62) Annual Revenue Net Increase (annualized) $66 ($25) $41 13 (1) These values are revised with the 6/23/15 stipulation and updates to PGE's 2016 power cost and load forecasts. The values do not include the settlement reached after July 15, 2015 and will be revised again when the new stipulation is filed.

Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Liquidity as of 6/30/2015(in millions) Credit Facilities $ 560 Commercial Paper -- Letters of Credit $ (97 ) Cash $ 122 Available $ 585 2015 Financing Activity Q1 2015 Q2 2015 Q3 2015 Bank Loan Proceeds $305 million repaid in full First Mortgage Bonds $75 million issued $70 million issued $70 million matured $67 million redeemed Settle Equity Forward $271 million received 14

Guidance 2015 EPS Guidance: $2.05-$2.20 ▪ Annual weather adjusted load growth of approximately 1.5% over 2014; ▪ Below average hydro conditions; ▪ Normal thermal plant and wind operations for the remainder of the year; ▪ Depreciation and amortization expense between $300 and $310 million; and, ▪ Capital expenditures of $598 million. 15