Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense consists of the following (in millions):



	Years Ended December 31,
	2017		2016		2015
Current:
Federal	$	4	$	10	$	4
State and local	12		3		1
	16		13		5
Deferred:
Federal	61		23		26
State and local	9		14		14
	70		37		40
Income tax expense	$	86	$	50	$	45

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The significant differences between the U.S. federal statutory rate and PGE’s effective tax rate for financial reporting purposes are as follows:



	Years Ended December 31,
	2017		2016		2015
Federal statutory tax rate	35.0	%	35.0	%	35.0	%
Federal tax credits⁽¹⁾	(14.0	)	(18.2	)	(19.0	)
Change in federal tax law⁽²⁾	6.1		—		—
State and local taxes, net of federal tax benefit	5.0		4.8		4.2
Flow through depreciation and cost basis differences	1.5		0.2		—
Other	(2.1	)	(1.2	)	0.5
Effective tax rate	31.5	%	20.6	%	20.7	%

(1)

Federal tax credits consist primarily of production tax credits (PTCs) earned from Company-owned wind-powered generating facilities. The federal PTCs are earned based on a per-kilowatt hour rate, and as a result, the annual amount of PTCs earned will vary based on weather conditions and availability of the facilities. The PTCs are generated for 10 years from the corresponding facilities’ in service dates. PGE’s PTC generation ends at various dates between 2017 and 2024.

(2) Includes a $17 million increase to Income tax expense related to the remeasurement of deferred income taxes as a result of the enacted tax rate change under the TCJA.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income tax assets and liabilities consist of the following (in millions):



	As of December 31,
	2017			2016
Deferred income tax assets:
Employee benefits	$	128		$	181
Price risk management	56			59
Regulatory liabilities	14			29
Tax credits	50			56
Other	4			5
Total deferred income tax assets	252			330
Deferred income tax liabilities:
Depreciation and amortization	496			829
Regulatory assets	132			170
Other	—			—
Total deferred income tax liabilities	628			999
Deferred income tax liability, net	$	(376	)	$	(669	)