Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Current:
Federal	$	11	$	9	$	4
State and local	26		24		14
	37		33		18
Deferred:
Federal	4		(1)		—
State and local	4		7		5
	8		6		5
Income tax expense	$	45	$	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,
	2023		2022		2021
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Federal tax credits (1)	(9.5)		(12.8)		(13.0)

State and local taxes, net of federal tax benefit	8.6		8.8		8.9
Flow through depreciation and cost basis differences	(0.4)		0.8		(0.2)
Local tax flow-through adjustment (2)	—		—		(3.2)
Reversal of excess deferred income tax (3)	(3.9)		(4.5)		(4.8)
Other	0.6		1.0		(0.1)
Effective tax rate	16.4	%	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. Federal tax credits also includes all other federal tax credits and related deferrals. The tax credit deferrals are established to provide the benefit back to customers over a period agreed upon with the OPUC.

(2) In 2021, PGE recognized a regulatory asset to defer previously recorded deferred income tax expenses in the amount of $9 million with a corresponding credit to Income tax expense reflected in the consolidated statements of income for the year ended December 31, 2021.

(3) 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,
	2023		2022
Deferred income tax assets:
Employee benefits	$	99	$	99
Regulatory liabilities	21		75
Tax credits	73		102
Price risk management	57		—

Total deferred income tax assets	250		276
Deferred income tax liabilities:
Depreciation and amortization	578		547
Price risk management	—		54
Regulatory assets	146		101
Other	14		13
Total deferred income tax liabilities	738		715
Deferred income tax liability, net	$	488	$	439