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): April 27, 2018

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Item 2.02    Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02.

On April 27, 2018, Portland General Electric Company (PGE or the Company) issued a press release announcing its financial results for the three month period ended March 31, 2018. 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 Friday, April 27, 2018, the Company will hold its quarterly earnings call and webcast, and will use 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 April 27, 2018.
99.2	Portland General Electric Company First Quarter 2018 Slides dated April 27, 2018.

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:	April 26, 2018	By:	/s/ James F. Lobdell
			James F. Lobdell
			Senior Vice President of Finance, Chief Financial Officer and Treasurer

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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
April 27, 2018
Media Contact:	Investor Contact:
Melanie Erdmann	Chris Liddle
Corporate Communications	Investor Relations
Phone: 503-464-8790	Phone: 503-464-7458

Portland General Electric announces first quarter 2018 results

• Delivered solid first-quarter financial performance after adjusting for the impacts of weather

• Updated capital forecast includes additional investments for 2018 to support continued customer growth and build a more efficient, reliable and secure system

PORTLAND, Ore. - Portland General Electric Company (NYSE: POR)today reported net income of $64 million, or 72 cents per diluted share, for the first quarter of 2018. This compares with net income of $73 million, or 82 cents per diluted share, for the first quarter of 2017. The company is reaffirming 2018 earnings guidance of $2.10 - $2.25 per diluted share.

“PGE is committed to leading our region to a clean and reliable energy future,” said Maria Pope, PGE president and CEO. “In addition to solid financial results in the first quarter of 2018, we’re taking steps to add 100 average megawatts of renewable power to our system; increasing our investments in building a smarter, more resilient grid; and proposing programs to help our customers reach their decarbonization goals, while keeping prices affordable.”

Q1 2018 earnings compared to Q1 2017 earnings

Weather drove the decrease in first quarter earnings per diluted share for 2018 in comparison to first quarter of 2017. This decrease was partially offset by a decrease in distribution-related expenses, as there were no major storms in 2018 as compared to 2017, combined with lower plant maintenance expenses.

Company Update

Renewable Request for Proposal (RFP)

Following acknowledgement of a 100 MWa renewable need in PGE’s 2016 Integrated Resource Plan, PGE has moved forward with the procurement of additional renewable resources by submitting a Final Draft RFP for Renewable Resources to the Oregon Public Utility Commission (OPUC) on March 9, 2018. The RFP process will include oversight by an independent evaluator and review by the OPUC. PGE intends to submit a benchmark proposal for the Renewable RFP.

The company expects the Final RFP to be issued in May, with proposals due by June. A shortlist of proposals would be submitted to the OPUC in October 2018, with PGE issuing notice to proceed, as applicable, by December 31, 2018.

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First quarter operating results

Earnings Reconciliation of Q1 2017 to Q1 2018
($ in millions, except EPS)	Pre-Tax Income			Net Income*			Diluted EPS**
Reported Q1 2017	$	96		$	73		$	0.82
Revenue
Electric Retail price change	(1		)	(1		)	—
Electric Retail volume change	(30		)	(22		)	(0.24		)
Change in decoupling deferral	(8		)	(6		)	(0.07		)
Electric wholesale price and volume change	15			10			0.12
Other items	(13		)	(9		)	(0.10		)
Change in Revenue	(37		)	(28		)	(0.29		)
Power Cost
Change in average power cost	13			9			0.10
Change in purchased power and generation	(2		)	(1		)	(0.01		)
Change in Power Costs	11			8			0.09
O&M
Generation, transmission, distribution	12			9			0.10
Administrative and general	(2		)	(1		)	(0.02		)
Change in O&M	10			8			0.08
Other Items
Depreciation & amortization	(8		)	(6		)	(0.07		)
AFDC Equity***	2			2			0.02
Other Items	(2		)	(1		)	(0.02		)
Adjustment for effective vs statutory tax rate including tax reform				8			0.09
Change in Other Items	(8		)	3			0.02
Reported Q1 2018	$	72		$	64		$	0.72
* After tax adjustments based on PGE’s statutory tax rate of 27.5%
** Some values may not foot due to rounding
*** Statutory tax rate does not apply to AFDC equity

Total revenues for the three months ended March 31,2018 decreased $37 million, or 7%, compared to the three months ended March 31,2017, consisting primarily of a $52 million decrease in Total retail revenues, partially offset by a $15 million increase in Wholesale revenues.

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The change in Retail revenues consisted of the following contributing factors:

• A $30 million decrease resulted from a 6% decrease in retail energy deliveries due largely to the effects of weather on electricity demand, which is reflected predominantly in the Residential revenue line in the table below. Considerably warmer temperatures in the first quarter of 2018 than experienced in 2017, which was colder than average, drove deliveries lower in 2018 than in 2017;

• A $15 million net decrease to reflect the deferral of revenues for estimated refund to customers as a result of the Tax Cuts and Jobs Act (TCJA). This reduction in revenues is offset with lower income tax expense, resulting in no overall net income impact; and

• An $8 million decrease resulting from the Decoupling mechanism as an estimated $1 million refund was recorded in 2018, as opposed to an estimated $7 million collection in 2017.

Total heating degree-days for the three months ended March 31,2018 were 19% below those for the three months ended March 31,2017 and 3% below average.

The following table indicates the number of heating degree-days for the three months ended March 31,2018 and 2017, along with 15-year averages based on weather data provided by the National Weather Service, as measured at Portland International Airport:

	Heating Degree-days
	2018		2017		Avg.
January	595		969		723
February	625		672		575
March	546		530		515
Totals	1,766		2,171		1,813
(Decrease)/increase from the 15-year average	(3	)%	20	%

Wholesale revenues for the three months ended March 31,2018 increased $15 million, or 115%, from the three months ended March 31,2017, with the increase comprised of $13 million related to a 99% increase in wholesale sales volumes and $1 million related to an 8% increase in average wholesale sales prices. Due to lower than expected retail customer demand and depressed natural gas prices in the first three months of 2018, the Company economically generated and sold more power into the Wholesale market than in the comparable period of 2017.

Actual Net Variable Power Costs (NVPC) for the three months ended March 31,2018 decreased$26 million when compared with the three months ended March 31,2017. The decrease in purchased power and fuel was driven by a 9% decrease in the average variable power cost per MWh, partially offset by a 2% increase in total system load. The overall decrease in Actual NVPC was also driven by a 115% increase in wholesale revenues. The change in wholesale revenues was due mostly to an8% increase in wholesale sales price and a99% increase in sales volume. For the three months ended March 31,2018 and 2017, actual NVPC was$11 million and $2 million below baseline NVPC, respectively.

Generation, transmission and distribution expense decreased$12 million, or 15%, in the three months ended March 31,2018 compared with the three months ended March 31,2017 primarily due to $8 million lower overall storm and service restoration costs, and $4 million lower maintenance and overhaul expense.

Administrative and other expense increased $2 million, or 3%, in the three months ended March 31,2018 compared with the three months ended March 31,2017. The increase was primarily due to higher legal costs and other expenses.

Depreciation and amortization expense increased $8 million in the three months ended March 31,2018 compared with the three months ended March 31,2017. The increase was primarily driven by a $5 million amortization credit

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in 2017 related to the Trojan spent fuel refund to customers, which was also reflected in reduced revenues, and $3 million increased plant depreciation and software amortization.

Interest expense, net increased$1 million, or 3%, in the three months ended March 31,2018 compared with the three months ended March 31,2017, primarily due to $2 million higher expense resulting from a 3% increase in the average balance of outstanding debt, offset by a $1 million higher allowance for borrowed funds used during construction.

Income tax expense was $8 million in the three months ended March 31,2018 compared with $23 million in the three months ended March 31,2017, with effective tax rates of 11.1% and24.0%, respectively. The decrease in income tax expense was driven by lower pre-tax income taxed at a lower federal corporate tax rate pursuant to the TCJA.

2018 earnings guidance

PGE reaffirms its 2018 guidance of $2.10 - $2.25 per diluted share. The guidance is based on the following assumptions:

• A decline in retail deliveries up to 1%, weather-adjusted

• Normal hydro conditions for the remainder of the year based on the current hydro forecast

• Wind generation for the remainder of the year based on five years of historical levels or forecast studies when historical data is not available

• Normal thermal plant operations for the remainder of the year

• Depreciation and amortization expense between $365 and $385 million

• Operating and maintenance costs between $575 and $595 million

First Quarter 2018 earnings call and web cast — April 27, 2018

PGE will host a conference call with financial analysts and investors on Friday, April 27, 2018 at 11 a.m. EST. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. EST on Friday, April 27, 2018, through Friday, May 4.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of Finance, CFO, and treasurer; and Chris Liddle, director, Investor Relations and Treasury, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and comprehensive 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

About Portland General Electric Company: Portland General Electric (NYSE: POR) is a fully–integrated energy company based in Portland, Oregon, serving approximately 877,000 customers in 51 cities. For more than 125 years, PGE has been delivering safe, reliable energy to Oregonians. With approximately 2,900 employees across the state, PGE is committed to building a cleaner, more efficient energy future. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. For more information, visit 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

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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, wind 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 and the sale of excess energy during periods of 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; 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; 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 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

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(Dollars in millions, except per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2018			2017
Revenues:
Revenues, net	$	495		$	530
Alternative revenue programs, net of amortization	(2		)	—
Total revenues	493			530
Operating expenses:
Purchased power and fuel	130			141
Generation, transmission and distribution	69			81
Administrative and other	69			67
Depreciation and amortization	92			84
Taxes other than income taxes	33			33
Total operating expenses	393			406
Income from operations	100			124
Interest expense, net	31			30
Other income:
Allowance for equity funds used during construction	4			2
Miscellaneous income (expense), net	(1		)	—
Other income, net	3			2
Income before income tax expense	72			96
Income tax expense	8			23
Net income	$	64		$	73
Other comprehensive loss	—			(1		)
Comprehensive income	$	64		$	72
Weighted-average shares outstanding—basic and diluted (in thousands)	89,160			89,003
Earnings per share—basic and diluted	$	0.72		$	0.82
Dividends declared per common share	$	0.34		$	0.32

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)

	March 31, 2018		December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	70	$	39
Accounts receivable, net	152		168
Unbilled revenues	77		106
Inventories	80		78
Regulatory assets—current	72		62
Other current assets	81		73
Total current assets	532		526
Electric utility plant, net	6,781		6,741
Regulatory assets—noncurrent	448		438
Nuclear decommissioning trust	42		42
Non-qualified benefit plan trust	36		37
Other noncurrent assets	53		54
Total assets	$	7,892	$	7,838

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS, continued

(Dollars in millions)

(Unaudited)

	March 31, 2018			December 31, 2017
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	97		$	132
Liabilities from price risk management activities—current	67			59
Accrued expenses and other current liabilities	229			241
Total current liabilities	393			432
Long-term debt, net of current portion	2,426			2,426
Regulatory liabilities—noncurrent	1,323			1,288
Deferred income taxes	378			376
Unfunded status of pension and postretirement plans	282			284
Liabilities from price risk management activities—noncurrent	144			151
Asset retirement obligations	191			167
Non-qualified benefit plan liabilities	108			106
Other noncurrent liabilities	198			192
Total liabilities	5,443			5,422
Commitments and contingencies (see notes)
Equity:
Portland General Electric Company shareholders’ equity:
Preferred stock, no par value, 30,000,000 shares authorized; none issued and outstanding as of March 31, 2018 and December 31, 2017	—			—
Common stock, no par value, 160,000,000 shares authorized; 89,214,119 and 89,114,265 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	1,206			1,207
Accumulated other comprehensive loss	(8		)	(8		)
Retained earnings	1,251			1,217
Total equity	2,449			2,416
Total liabilities and equity	$	7,892		$	7,838

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Three Months Ended March 31,
	2018			2017
Cash flows from operating activities:
Net income	$	64		$	73
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	92			84
Deferred income taxes	6			17
Pension and other postretirement benefits	6			6
Allowance for equity funds used during construction	(4		)	(2		)
Decoupling mechanism deferrals, net of amortization	3			(9		)
Deferral of net benefits due to Tax Reform	15			—
Other non-cash income and expenses, net	4			7
Changes in working capital:
Decrease in accounts receivable and unbilled revenues	45			29
Decrease in inventories	(2		)	5
(Increase) in margin deposits, net	(6		)	(12		)
(Decrease) in accounts payable and accrued liabilities	(17		)	(10		)
Other working capital items, net	(5		)	(13		)
Other, net	(7		)	(5		)
Net cash provided by operating activities	194			170
Cash flows from investing activities:
Capital expenditures	(131		)	(114		)
Sales of Nuclear decommissioning trust securities	3			7
Purchases of Nuclear decommissioning trust securities	(3		)	(5		)
Other, net	1			(1		)
Net cash used in investing activities	(130		)	(113		)
Cash flows from financing activities:
Dividends paid	(30		)	(28		)
Other	(3		)	(4		)
Net cash used in financing activities	(33		)	(32		)
Increase in cash and cash equivalents	31			25
Cash and cash equivalents, beginning of period	39			6
Cash and cash equivalents, end of period	$	70		$	31
Supplemental cash flow information is as follows:
Cash paid for interest, net of amounts capitalized	$	13		$	13
Cash paid for income taxes	—			—

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS

(Unaudited)

	Three Months Ended March 31,
	2018					2017
Revenues (dollars in millions):
Retail:
Residential	$	268		54	%	$	288	54	%
Commercial	151			31		157		30
Industrial	44			9		44		8
Direct Access	10			2		9		2
Subtotal	473			96		498		94
Alternative revenue programs, net of amortization	(2		)	—		—		—
Other accrued (deferred) revenues, net	(17		)	(4	)	8		2
Total retail revenues	454			92		506		96
Wholesale revenues	28			6		13		2
Other operating revenues	11			2		11		2
Total revenues	$	493		100	%	$	530	100	%
Energy deliveries (MWh in thousands):
Retail:
Residential	2,133			37	%	2,383		42	%
Commercial	1,597			27		1,687		30
Industrial	680			12		686		12
Subtotal	4,410			76		4,756		84
Direct access:
Commercial	152			3		143		2
Industrial	345			6		321		6
Subtotal	497			9		464		8
Total retail energy deliveries	4,907			85		5,220		92
Wholesale energy deliveries	874			15		439		8
Total energy deliveries	5,781			100	%	5,659		100	%
Average number of retail customers:
Residential	768,886			88	%	758,087		88	%
Commercial	106,730			12		105,566		12
Industrial	206			—		198		—
Direct access	597			—		480		—
Total	876,419			100	%	864,331		100	%

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS, continued

(Unaudited)

	Three Months Ended March 31,
	2018				2017
Sources of energy (MWh in thousands):
Generation:
Thermal:
Natural gas	1,863		33	%	1,303		24	%
Coal	545		10		911		16
Total thermal	2,408		43		2,214		40
Hydro	472		8		548		10
Wind	475		8		299		5
Total generation	3,355		59		3,061		55
Purchased power:
Term	1,747		31		1,982		35
Hydro	506		9		497		9
Wind	58		1		39		1
Total purchased power	2,311		41		2,518		45
Total system load	5,666		100	%	5,579		100	%
Less: wholesale sales	(874	)			(439	)
Retail load requirement	4,792				5,140

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EX-99.2

Portland General Electric Earnings Conference Call First Quarter 2018 Exhibit 99.2

Cautionary Statement Information Current as of April 27, 2018 Except as expressly noted, the information in this presentation is current as of April 27, 2018 — the date on which PGE filed its quarterly report on Form 10-Q for the quarter ended March 31, 2018 — and should not be relied upon as being current as of any subsequent date. PGE undertakes no duty to update this 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 and Treasurer On Today's Call • Financial performance • Accomplishments • Economic update • Renewables Request for Proposals • 2019 General Rate Case • Financial update • Earnings guidance 3 Maria Pope President and CEO

First Quarter 2018 Earnings Results Q1 2018 Q1 2017 Net Income (millions) $64 $73 Diluted EPS $0.72 $0.82 2017 Diluted EPS $2.10 2018E Diluted EPS $2.10 - $2.25 4 Q1 Q1 Q2 Q3 Q4 Q2 Q3 Q4 $1.38 - $1.53 Q1 Q2 - Q4

• Proposal filed for renewable power options for large business and municipal customers • Transportation Electrification Plan approved • Top-quartile customer satisfaction1 and 2018 Environmental Champion2 • Service area population growth of 1.8%3 • Average residential customer count increased 1.4% • Increase in building permits of 12.3% in our service area vs. 4.5% nationally4 • Long-term load growth of approximately 1% Operational & Economic Highlights (1) TQS Research, Inc. and Market Strategies International (MSI) (2) MSI nationwide survey of utility customers (3) Portland Metropolitan Statistical Area for 2017 from Portland State University's Northwest Economic Research Center (4) Annual growth rate using 12-month moving average Portland has the most cranes per capita of reported metro areas in the U.S., RLB Crane Index report for North America, January 2018 5

Draft RFP filed with OPUC Final RFP issued Proposals due Notice to proceed March 2018 May 2018 June 2018 December 2018 Renewable RFP • OPUC acknowledged 100 MWa renewable need in December 2017 • Competitive Renewable RFP1 process to include oversight by an independent evaluator and review by OPUC • PGE intends to submit a benchmark resource ▪ Nameplate capacity of up to 300 MW ▪ Qualifies for 100% federal Production Tax Credit 6 (1) See docket UM 1892 on the OPUC website for details

2019 General Rate Case 7 Timeline: • Regulatory review to occur throughout 2018 ▪ June: Staff and intervenor testimony and settlement conference(s) ▪ July: PGE reply comments and settlement conference ▪ August: Staff and intervenor rebuttal testimony • Final order expected from the commission by end-of-year Key Drivers: Investments in the system to better serve customers and continue building a smarter, more resilient grid • Return on equity of 9.5% • Capital structure of 50% debt and 50% equity • Rate base of $4.86 billion • Customer price increase of approx. 4.8%, net of tax reform, effective Jan. 1, 2019

First Quarter Earnings Bridge 8 Earnings per diluted share

Capital Planning Current Capital Outlook • Support for continued customer growth • Upgrades and replacement of aging generation, transmission and distribution equipment • Strengthening the grid for earthquakes, cyber attacks and other potential threats • New customer information systems and technology tools (1) Does not include any capital related to the 2016 IRP or energy storage proposal $655 9 1 $ Millions

Liquidity and Financing Total Liquidity As of 03/31/2018 (in millions) Credit Facilities $ 720 Commercial Paper $ 0 Letters of Credit $ (71 ) Cash $ 70 Available $ 719 Ratings S&P Moody's Senior Secured A- A1 Senior Unsecured BBB A3 Commercial Paper A-2 Prime-2 Outlook Positive Stable Q1 2018 Q2 2018 Q3 2018 Q4 2018 First Mortgage Bonds Issue up to $150 million 10

Guidance and Assumptions 2018 EPS Guidance: $2.10 - $2.25 • Retail deliveries decline up to 1%, weather-adjusted • Normal hydro conditions for the remainder of the year based on the current hydro forecast • Wind generation for the remainder of the year based on 5 years of historical levels, or forecast studies when historical data is not available • Normal thermal plant operations for the remainder of the year • Depreciation and amortization expense between $365 and $385 million • Operating and maintenance expense between $575 and $595 million • Assumes OPUC approval of the customer information and meter data management systems deferral application 11

12 2018 Key Initiatives • Maintain a high level of operational excellence and customer service • Invest in reliable and clean energy while keeping prices affordable • Build a smarter, more resilient grid