Balance Sheet Components (Notes)

3 Months Ended

Mar. 31, 2021

Inventories

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 whether inventories are recorded at the lower of average cost or net realizable value.

Accounts Receivable, Net

Accounts receivable, net includes $86 million and $97 million of unbilled revenues as of March 31, 2021 and December 31, 2020, respectively. Accounts receivable, net is net of an allowance for credit losses of $20 million as of March 31, 2021. The following summarizes activity in the allowance for credit losses (in millions):


	Three Months Ended March 31,
	2021
Balance as of beginning of period	$	16
Increase in provision	7
Amounts written off	(4)
Recoveries	1
Balance as of end of period	$	20

Other Current Assets

Other current assets consist of the following (in millions):


	March 31, 2021		December 31, 2020
Prepaid expenses	$	68	$	57

Assets from price risk management activities	50		33
Margin deposits	9		8


Other current assets	$	127	$	98

Electric Utility Plant, Net

Electric utility plant, net consists of the following (in millions):


	March 31, 2021		December 31, 2020
Electric utility plant	$	11,073	$	10,974
Construction work-in-progress	472		429
Total cost	11,545		11,403
Less: accumulated depreciation and amortization	(3,929)		(3,864)
Electric utility plant, net	$	7,616	$	7,539

Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $403 million and $388 million as of March 31, 2021 and December 31, 2020, respectively. Amortization expense related to intangible assets was $15 million for the three months ended March 31, 2021 and 2020. The Company’s intangible assets primarily consist of computer software development and hydro licensing costs.

Regulatory Assets and Liabilities

Regulatory assets and liabilities consist of the following (in millions):


	March 31, 2021					December 31, 2020
	Current			Noncurrent		Current			Noncurrent
Regulatory assets:
Price risk management	$	—		$	103	$	—		$	124
Pension and other postretirement plans	—			234		—			240

Debt issuance costs	—			25		—			25
Trojan decommissioning activities	—			97		—			95
Incremental storm costs	—			41		—			—
Other	25			91		23			85
Total regulatory assets	$	25		$	591	$	23		$	569
Regulatory liabilities:
Asset retirement removal costs	$	—		$	1,020	$	—		$	1,016
Deferred income taxes	—			222		—			239

Asset retirement obligations	—			38		—			37

Price risk management	30			—		18			—
Other	12			73		5			77
Total regulatory liabilities	$	42	(1)	$	1,353	$	23	(1)	$	1,369

(1)Included in Accrued expenses and other current liabilities in the condensed consolidated balance sheets.

Incremental storm costs represents the incremental costs incurred during the three months ended March 31, 2021 to repair damage to PGE’s transmission and distribution systems and restore power to customers. As a result of the historic February winter storms, Oregon’s Governor declared a state of emergency on February 13, 2021. On February 15, 2021, PGE filed an application for authorization to defer emergency restoration costs for the February storms (Docket UM 2156) . PGE does not expect an OPUC decision on the February storm deferral until later in 2021 or 2022. While the Company believes the full amount of the deferral is probable of recovery as PGE’s prudently incurred costs were in response to the unique and unprecedented nature of the storms, the OPUC has significant discretion in making the final determination of recovery which could result in a portion or all of PGE’s deferral being disallowed for recovery.

Accrued Expenses and Other Current Liabilities

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


	March 31, 2021		December 31, 2020
Accrued employee compensation and benefits	$	48	$	67
Accrued taxes payable	45		36
Accrued interest payable	43		29
Accrued dividends payable	37		38
Regulatory liabilities—current	42		23
Other	104		129
Total accrued expenses and other current liabilities	$	319	$	322

Credit Facilities

As of March 31, 2021, PGE had a $500 million revolving credit facility scheduled to expire in November 2023. The Company has the ability to expand the revolving credit facility to $600 million, if needed. Pursuant to the terms of the agreement, the revolving credit facility may be used for general corporate purposes, including 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, 2021, PGE was in compliance with this covenant with a 55.2% debt-to-total capital ratio. The aggregate unused available credit capacity under the revolving credit facility was $500 million.

The Company has a commercial paper program under which it may issue commercial paper for terms of up to 270 days. The Company has elected to limit its borrowings under the revolving credit facility to cover any potential need to repay any commercial paper that may be outstanding at the time. As of March 31, 2021, PGE had no commercial paper outstanding.

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

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 $75 million were outstanding as of March 31, 2021. 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 the aggregate principal of $150 million. The term loan bore interest for the relevant interest period at LIBOR plus 1.25%. The interest rate was subject to adjustment pursuant to the terms of the loan. On March 31, 2021, this term loan was repaid in full with proceeds from the term loan described below.

On March 31, 2021, PGE obtained an unsecured 364-day term loan in the aggregate principal amount of $200 million. The term loan will bear interest for the relevant interest period at LIBOR plus 0.70%, with the interest rate subject to adjustment pursuant to terms of the loan. The credit agreement expires on March 30, 2022, with any outstanding balance due and payable on such date. The Company used a portion of the proceeds to repay the prior 364-day term loan, with the remainder of the proceeds used for general corporate purposes.

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 6, 2022.

Long-term Debt

On January 6, 2021, the Company made a $140 million scheduled repayment on a 2.51% Series of First Mortgage Bonds with available cash.

Defined Benefit Retirement Plan Costs

Components of net periodic benefit cost under the defined benefit pension plan are as follows (in millions):


	Three Months Ended March 31,
		2021		2020
Service cost		$	5	$	4
Interest cost*		7		8
Expected return on plan assets*		(11)		(11)
Amortization of net actuarial loss*		5		4
Net periodic benefit cost		$	6	$	5

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