PGE’s inventories, which are recorded at average cost, consist primarily of materials and supplies for use in operations, maintenance, and capital activities, as well as fuel, which includes natural gas, coal, and oil for use in the Company’s generating plants. Periodically, the Company assesses inventory for purposes of determining that inventories are recorded at the lower of average cost or net realizable value.

Accounts receivable, net includes $78 million and $86 million of unbilled revenues as of March 31, 2020 and December 31, 2019, respectively. Accounts receivable is net of an allowance for credit losses of $6 million as of March 31, 2020. The following summarizes activity in the allowance for credit losses (in millions):



	Three Months Ended March 31, 2020
Balance as of beginning of period	$	5
Increase in provision	2
Amounts written off	(3		)
Recoveries	2
Balance as of end of period	$	6

To conform with 2020 presentation, PGE reclassified $86 million of Unbilled revenues to Accounts receivable, net on the condensed consolidated balance sheets for the period ended December 31, 2019.



	March 31, 2020		December 31, 2019
Prepaid expenses	$	64	$	63
Assets from price risk management activities	25		25
Margin deposits	35		16
Other current assets	$	124	$	104



	March 31, 2020			December 31, 2019
Electric utility plant	$	11,033		$	10,928
Construction work-in-progress	356			328
Total cost	11,389			11,256
Less: accumulated depreciation and amortization	(4,172		)	(4,095		)
Electric utility plant, net	$	7,217		$	7,161

Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $381 million and $366 million as of March 31, 2020 and December 31, 2019, respectively. Amortization expense related to intangible assets was $15 million and $16 million for the three months ended March 31, 2020 and 2019, respectively. The Company’s intangible assets primarily consist of computer software development and hydro licensing costs.



	March 31, 2020					December 31, 2019
	Current			Noncurrent		Current			Noncurrent
Regulatory assets:
Price risk management	$	7		$	124	$	—		$	95
Pension and other postretirement plans	—			208		—			213
Debt issuance costs	—			25		—			26
Trojan decommissioning activities	—			95		—			94
Other	14			61		17			55
Total regulatory assets	$	21		$	513	$	17		$	483
Regulatory liabilities:
Asset retirement removal costs	$	—		$	1,033	$	—		$	1,021
Deferred income taxes	—			259		—			260
Asset retirement obligations	—			54		—			54
Tax Reform deferral	17			—		23			—
Other	23			44		21			42
Total regulatory liabilities	$	40	^*	$	1,390	$	44	^*	$	1,377

Accrued expenses and other current liabilities consist of the following (in millions):



	March 31, 2020		December 31, 2019
Accrued employee compensation and benefits	$	48	$	74
Accrued taxes payable	31		33
Accrued interest payable	41		25
Accrued dividends payable	36		36
Regulatory liabilities—current	40		44
Other	100		103
Total accrued expenses and other current liabilities	$	296	$	315

As of March 31, 2020, PGE had a $500 million revolving credit facility scheduled to expire in November 2023. Pursuant to the terms of the agreement, the revolving credit facility may be used for general corporate purposes, as backup for commercial paper borrowings, and to permit the issuance of standby letters of credit. PGE may borrow

for one, two, three, or six months at a fixed interest rate established at the time of the borrowing, or at a variable interest rate for any period up to the then remaining term of the applicable credit facility. The revolving credit facility contains a provision that requires annual fees based on PGE’s unsecured credit ratings, and contains customary covenants and default provisions, including a requirement that limits consolidated indebtedness, as defined in the agreement, to 65% of total capitalization. As of March 31, 2020, PGE was in compliance with this covenant with a 50.4% 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 revolving credit facility.

PGE typically classifies borrowings under the revolving credit facility and outstanding commercial paper as Short-term debt on the condensed consolidated balance sheets.

Under the revolving credit facility, as of March 31, 2020, PGE had $20 million of commercial paper outstanding. As a result, the aggregate unused available credit capacity under the revolving credit facility was $480 million.

In addition, PGE has four letter of credit facilities that provide a total capacity of $220 million under which the Company can request letters of credit for original terms not to exceed one year. The issuance of such letters of credit is subject to the approval of the issuing institution. Under these facilities, letters of credit for a total of $51 million were outstanding as of March 31, 2020. Letters of credit issued are not reflected on the Company’s condensed consolidated balance sheets.

On April 9, 2020, PGE obtained a 364-day, term loan from lenders in proportion to their funding commitments in the aggregate principal of $150 million. The term loan will bear interest for the relevant interest period at LIBOR plus 1.25%. The interest rate is subject to adjustment pursuant to the terms of the loan. The credit agreement expires on April 8, 2021, with any outstanding balance due and payable on such date.

Pursuant to an order issued by the Federal Energy Regulatory Commission (FERC), the Company is authorized to issue short-term debt in an aggregate amount of up to $900 million through February 7, 2022.

On March 11, 2020, PGE completed the remarketing of an aggregate principal amount of $119 million of Pollution Control Revenue Refunding Bonds (PCRBs), which consist of $98 million aggregate principal of PCRBs that will bear an interest rate of 2.125%, and $21 million aggregate principal of PCRBs that will bear an interest rate of 2.375%, both due in 2033.



	Three Months Ended March 31,
	2020			2019
Service cost	$	4		$	4
Interest cost*	8			8
Expected return on plan assets*	(11		)	(10		)
Amortization of net actuarial loss*	4			3
Net periodic benefit cost	$	5		$	5

* The expense portion of non-service cost components are included in Miscellaneous (loss) income, net within Other income on the Company’s condensed consolidated statements of income and comprehensive income.