Income tax Income tax (Notes)

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

Income tax expense for interim periods is based on the estimated annual effective tax rate, which includes tax credits, regulatory flow-through adjustments, and other items, applied to the Company’s year-to-date, pre-tax income. The significant differences between the Federal statutory tax rate and PGE’s effective tax rate are reflected in the following table:

	Three Months Ended March 31,
	2023		2022
Federal statutory tax rate	21.0	%	21.0	%
Federal tax credits*	(9.3)		(10.5)
State and local taxes, net of federal tax benefit	9.0		8.9
Flow-through depreciation and cost basis differences	1.0		0.7
Amortization of excess deferred income tax	(3.7)		(4.5)
Other	(2.1)		(0.1)
Effective tax rate	15.9	%	15.5	%

* Federal tax credits primarily consist of production tax credits (PTCs) earned from Company-owned wind-powered generating facilities. 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. PTCs are earned for 10 years from the in-service dates of the corresponding facilities. PGE’s PTC generation will end at various dates through 2033.

Carryforwards

Federal tax credit carryforwards as of both March 31, 2023 and December 31, 2022 were $102 million. These credits primarily consist of PTCs, which will expire at various dates through 2043. PGE believes that it is more likely than not that its deferred income tax assets as of March 31, 2023 will be realized; accordingly, no valuation allowance has been recorded. As of March 31, 2023, and December 31, 2022, PGE had no material unrecognized tax benefits.