Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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

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



	Years Ended December 31,
	2018			2017		2016
Current:
Federal	$	12		$	4	$	10
State and local	22			12		3
	34			16		13
Deferred:
Federal	(15		)	61		23
State and local	(2		)	9		14
	(17		)	70		37
Income tax expense	$	17		$	86	$	50

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,
	2018		2017		2016
Federal statutory tax rate	21.0	%	35.0	%	35.0	%
Federal tax credits⁽¹⁾	(16.7	)	(14.0	)	(18.2	)
Change in federal tax law⁽²⁾	—		6.1		—
State and local taxes, net of federal tax benefit	6.5		5.0		4.8
Flow through depreciation and cost basis differences	1.5		1.5		0.2
Excess deferred tax amortization⁽³⁾	(4.1	)	—		—
Other	(0.8	)	(2.1	)	(1.2	)
Effective tax rate	7.4	%	31.5	%	20.6	%

(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 ended or will end at various dates between 2017 and 2024.

(2) For the year ended December 31, 2017, 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.

(3) The majority of excess ADIT related to remeasurement under the TCJA is subject to IRS normalization rules and will be amortized over the remaining regulatory life of the assets using the average rate assumption method.

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,
	2018		2017
Deferred income tax assets:
Employee benefits	$	134	$	128
Price risk management	36		56
Regulatory liabilities	26		14
Tax credits	52		50
Other	9		4
Total deferred income tax assets	257		252
Deferred income tax liabilities:
Depreciation and amortization	511		496
Regulatory assets	115		132
Total deferred income tax liabilities	626		628
Deferred income tax liability, net	$	369	$	376