Subsequent Events

12 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENT

Beginning January 13, 2024, the Company’s service territory encountered a severe winter weather event that included snow, ice, and high winds over several days that caused catastrophic damage to physical assets and resulted in widespread customer power outages. Along with over a dozen mutual assistance crews, PGE repaired damage and restored power to over 500,000 customers throughout the storm and the days that followed.

PGE currently estimates the incremental incurred and future costs to repair damage to PGE’s transmission and distribution systems and restore power to customers could range from $50 million to $60 million, with $35 million to $45 million of that range estimated to represent operating expenses associated with transmission and distribution. As a result of the historic winter storm, Oregon’s Governor declared a state of emergency on January 18, 2024, which will allow PGE to seek recovery of incremental storm expenses through the previously filed emergency deferral. On February 9, 2024, PGE filed a Notice of Deferral with the OPUC, under Docket UM 2190, related to the emergency restoration costs for the January storm and expects to defer a significant portion of these costs as regulatory assets.

Due to the storm and corresponding impact on power markets, PGE has incurred a substantial amount of incremental net variable power costs compared to what was anticipated in the 2024 Annual Power Cost Update Tariff (AUT). PGE believes that a portion of the storm will qualify as a Reliability Contingency Event (RCE) as approved by the OPUC in PGE’s 2024 GRC. Under the RCE mechanism, PGE is allowed to pursue recovery of 80% of costs for RCEs above amounts forecasted in the Company’s AUT, with the remaining 20% flowing through operating expenses and subject to the existing PCAM. Estimates of the total cost for the RCE are still under development, however the Company believes total costs could be in the range of $85 million to $100 million. Full impacts cannot be determined until all settlements and invoices are received for the period to which the RCE applies. PGE expects to defer a significant majority of these costs through its various OPUC approved mechanisms over net variable power costs.

PGE believes it has adequate liquidity to cover the event.