Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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

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


	Years Ended December 31,
	2022		2021		2020
Current:
Federal	$	9	$	4	$	6
State and local	24		14		17
	33		18		23
Deferred:
Federal	(1)		—		(22)
State and local	7		5		(1)
	6		5		(23)
Income tax expense	$	39	$	23	$	—

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,
	2022		2021		2020
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Federal tax credits (1)	(11.6)		(11.9)		(20.5)

State and local taxes, net of federal tax benefit	8.8		8.9		10.1
Flow through depreciation and cost basis differences	0.8		(0.2)		(4.9)
Local tax flow-through adjustment	—		(3.2)		—
Reversal of excess deferred income tax (2)	(4.5)		(4.8)		(4.7)
Other	(0.2)		(1.2)		(1.0)
Effective tax rate	14.3	%	8.6	%	—	%

(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 will end at various dates through 2030.

(2) The majority of excess deferred income taxes related to remeasurement under the TCJA is subject to IRS normalization rules and will be reversed 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,
	2022		2021
Deferred income tax assets:
Employee benefits	$	99	$	114
Regulatory liabilities	75		39
Tax credits	102		98

Total deferred income tax assets	276		251
Deferred income tax liabilities:
Depreciation and amortization	547		536
Price risk management	54		—
Regulatory assets	101		121
Other	13		7
Total deferred income tax liabilities	715		664
Deferred income tax liability, net	$	439	$	413