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Long-term Debt
 12 Months Ended
Dec. 31, 2022
Long-term Debt Disclosure [Abstract]  
Long-term Debt LONG-TERM DEBT & OTHER FINANCING ARRANGEMENTS
Long-term debt
Long-term debt consists of the following (in millions):
 As of December 31,
  20222021
First Mortgage Bonds, rates range from 1.82% to 6.88%, with a weighted average rate of 4.09% in 2022 and 4.11% in 2021, due at various dates through 2051
$3,280 $3,180 
Unsecured term bank loans, variable rate of approximately 5.30% at December 31, 2022
260 — 
Pollution Control Revenue Bonds, rates at 2.13% and 2.38%, due 2033
119 119 
Total long-term debt3,659 3,299 
Less: Unamortized debt expense(13)(14)
Less: Current portion of long-term debt(260)— 
Long-term debt, net of current portion$3,386 $3,285 

First Mortgage Bonds—On November 30, 2022, PGE entered into a Bond Purchase Agreement related to the sale of $200 million in FMBs. The bonds consist of:
•a series, due in 2029, in the amount of $100 million that will bear interest at an annual rate of 5.47%; and
•a series, due in 2033, in the amount of $100 million that will bear interest at an annual rate of 5.56%.

The 2029 and 2033 series were issued in 2022 and funded in full on November 30, 2022 and January 13, 2023, respectively.

The Indenture securing PGE’s outstanding FMBs constitutes a direct first mortgage lien on substantially all regulated utility property, other than expressly excepted property. Interest is payable semi-annually on FMBs.

Term Loan—On October 21, 2022, PGE obtained a 366-day term loan from lenders in the aggregate principal of $260 million under a 366-Day Bridge Credit Agreement. The term loan bears interest for the relevant interest period at the Term Secured Overnight Financing Rate (SOFR) plus Term SOFR Adjustment Rate of 10 basis points and Applicable Margin of 87.5 basis points. The interest rate is subject to adjustment pursuant to the terms of the loan. The loan is prepayable, in whole or in part, without penalty, at any time. The credit agreement expires on October 22, 2023, with any outstanding balance due and payable on such date. The term loan is classified as Current portion of long-term debt on PGE’s consolidated balance sheet.

Pollution Control Revenue Bonds—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 bear an interest rate of 2.125%, and $21 million aggregate principal of PCRBs that bear an interest rate of 2.375%, both due in 2033. At the time of remarketing, the Company chose a new interest rate period that was fixed term. The new interest rate was based on market conditions at the time of remarketing. The PCRBs could be backed by FMBs or a bank letter of credit depending on market conditions. Interest is payable semi-annually on the PCRBs.
As of December 31, 2022, the future minimum principal payments on long-term debt are as follows (in millions):

Years ending December 31: 
2023$260 
202480 
2025— 
2026— 
2027160 
Thereafter3,159 
$3,659 

Pelton/Round Butte financing arrangement

Under terms of an agreement (the “Agreement”) approved by the OPUC in 2000, PGE had a 66.67% ownership interest in the 455 Megawatt (MW) Pelton/Round Butte hydroelectric project on the Deschutes River (Pelton/Round Butte), with the remaining interest held by the Confederated Tribes of the Warm Springs Reservation of Oregon (CTWS). In the Agreement, the CTWS had an option to purchase an additional undivided 16.66% ownership interest in Pelton/Round Butte in 2021. On June 30, 2021, the CTWS notified PGE of their intent to exercise this purchase option. Under the terms of the purchase option, on January 1, 2022, PGE completed the sale of the additional undivided interest in the project at a net book value of $37 million, with no gain or loss recognized on the sale. Under terms of the Agreement, the CTWS has a second option in 2036 to purchase an undivided 0.02% interest in Pelton/Round Butte. If the second option is exercised, the CTWS’ ownership percentage would exceed 50%. PGE remains the operator of the project.

PGE has agreed to purchase 100% of the CTWS’ share of the project’s output under a Power Purchase Agreement (PPA) through 2040. The exercise of the purchase option on January 1, 2022 was evaluated as a sale-leaseback arrangement, and PGE determined that the transaction did not qualify for sale-leaseback accounting. As a result, the transaction is accounted for as a financing arrangement. PGE will continue to record the tangible utility asset within Electric utility plant, net on the consolidated balance sheets as if it were the legal owner and will continue to recognize depreciation expense over the estimated useful life. A financing obligation of $25 million was recorded in Other noncurrent liabilities in 2022. Proceeds related to the financing obligation of $25 million were recorded as a financing activity while proceeds from the sale of intangible property of $11 million and from the sale of construction work-in-progress of $1 million were recorded as an investing activity on the consolidated statements of cash flow. The monthly PPA payments are split between interest expense and a reduction of the principal portion of the financing obligation. Any material differences between expense recognition and timing of payments is deferred as a regulatory asset or liability in order to match what is being recovered in customer prices for ratemaking purposes.

As of December 31, 2022, the future minimum payments on the financing arrangement are as follows (in millions):
Years ending December 31: 
2023$2 
20242 
20255 
20265 
20275 
Thereafter69 
Total Payments88 
Less: Imputed Interest(61)
Present value of minimum payments$27