QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Title of class) | (Trading Symbol) | (Name of exchange on which registered) | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Item 1. | Financial Statements (Unaudited) | |||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Abbreviation or Acronym | Definition | |||||||
AFUDC | Allowance for funds used during construction | |||||||
AUT | Annual Power Cost Update Tariff | |||||||
Clearwater | Clearwater Wind Development | |||||||
Colstrip | Colstrip Units 3 and 4 coal-fired generating plant | |||||||
EFSA | Equity Forward Sale Agreement | |||||||
EPA | United States Environmental Protection Agency | |||||||
FERC | Federal Energy Regulatory Commission | |||||||
FMB | First Mortgage Bond | |||||||
GAAP | Accounting principles generally accepted in the United States of America | |||||||
GRC | General Rate Case | |||||||
IRP | Integrated Resource Plan | |||||||
Moody’s | Moody’s Investors Service | |||||||
MW | Megawatts | |||||||
MWa | Average megawatts | |||||||
MWh | Megawatt hour | |||||||
Nasdaq | National Association of Securities Dealers Automated Quotations | |||||||
NVPC | Net Variable Power Costs | |||||||
NYSE | New York Stock Exchange | |||||||
OPUC | Public Utility Commission of Oregon | |||||||
PCAM | Power Cost Adjustment Mechanism | |||||||
ROE | Regulated return on equity | |||||||
RPS | Renewable Portfolio Standard | |||||||
S&P | S&P Global Ratings | |||||||
SEC | United States Securities and Exchange Commission | |||||||
Item 1. | Financial Statements. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | |||||||||||||||||||
Alternative revenue programs, net of amortization | ( | ( | |||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Purchased power and fuel | |||||||||||||||||||||||
Generation, transmission and distribution | |||||||||||||||||||||||
Administrative and other | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Taxes other than income taxes | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Other income: | |||||||||||||||||||||||
Allowance for equity funds used during construction | |||||||||||||||||||||||
Miscellaneous income, net | |||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Income before income tax expense | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Net income and Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding (in thousands): | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Earnings per share—basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
See accompanying notes to condensed consolidated financial statements. |
June 30, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Regulatory assets—current | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Electric utility plant, net | |||||||||||
Regulatory assets—noncurrent | |||||||||||
Nuclear decommissioning trust | |||||||||||
Non-qualified benefit plan trust | |||||||||||
Other noncurrent assets | |||||||||||
Total assets | $ | $ | |||||||||
See accompanying notes to condensed consolidated financial statements. |
June 30, 2024 | December 31, 2023 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Liabilities from price risk management activities—current | |||||||||||
Short-term debt | |||||||||||
Current portion of long-term debt | |||||||||||
Current portion of finance lease obligation | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current portion | |||||||||||
Regulatory liabilities—noncurrent | |||||||||||
Deferred income taxes | |||||||||||
Unfunded status of pension and postretirement plans | |||||||||||
Liabilities from price risk management activities—noncurrent | |||||||||||
Asset retirement obligations | |||||||||||
Non-qualified benefit plan liabilities | |||||||||||
Finance lease obligations, net of current portion | |||||||||||
Other noncurrent liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (see notes) | |||||||||||
Shareholders’ Equity: | |||||||||||
Preferred stock, | |||||||||||
Common stock, | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ | |||||||||
See accompanying notes to condensed consolidated financial statements. |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | |||||||||||
Pension and other postretirement benefits | |||||||||||
Allowance for equity funds used during construction | ( | ( | |||||||||
Decoupling mechanism deferrals, net of amortization | ( | ||||||||||
Regulatory assets | ( | ( | |||||||||
Regulatory liabilities | ( | ||||||||||
Tax credit sales | |||||||||||
Other non-cash income and expenses, net | |||||||||||
Changes in working capital: | |||||||||||
Accounts receivable, net | |||||||||||
Inventories | ( | ( | |||||||||
Margin deposits | |||||||||||
Accounts payable and accrued liabilities | ( | ( | |||||||||
Margin deposits from wholesale counterparties | ( | ||||||||||
Other working capital items, net | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
See accompanying notes to condensed consolidated financial statements. | |||||||||||
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | $ | ( | $ | ( | |||||||
Purchases of Nuclear decommissioning trust securities | ( | ||||||||||
Proceeds from sale of properties | |||||||||||
Other, net | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock | |||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Payments on long-term debt | ( | ||||||||||
Issuance (maturities) of commercial paper, net | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Other | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental cash flow information is as follows: | |||||||||||
Cash paid for interest, net of amounts capitalized | $ | $ | |||||||||
Cash paid (received) for income taxes, net | ( | ||||||||||
See accompanying notes to condensed consolidated financial statements. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Retail: | |||||||||||||||||||||||
Residential | $ | $ | $ | $ | |||||||||||||||||||
Commercial | |||||||||||||||||||||||
Industrial | |||||||||||||||||||||||
Direct access customers | |||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||
Alternative revenue programs, net of amortization | ( | ( | |||||||||||||||||||||
Other accrued revenues, net | ( | ( | |||||||||||||||||||||
Total retail revenues | |||||||||||||||||||||||
Wholesale revenues* | |||||||||||||||||||||||
Other operating revenues | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
Balance as of beginning of period | $ | $ | |||||||||
Increase in provision | |||||||||||
Amounts written off | ( | ( | |||||||||
Recoveries | |||||||||||
Balance as of end of period | $ | $ | |||||||||
June 30, 2024 | December 31, 2023 | ||||||||||
Prepaid expenses | $ | $ | |||||||||
Assets from price risk management activities | |||||||||||
Margin deposits | |||||||||||
Other current assets | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
Electric utility plant in-service | $ | $ | |||||||||
Construction work-in-progress | |||||||||||
Total cost | |||||||||||
Less: accumulated depreciation and amortization | ( | ( | |||||||||
Electric utility plant, net | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
Current | Noncurrent | Current | Noncurrent | ||||||||||||||||||||
Regulatory assets: | |||||||||||||||||||||||
Price risk management | $ | $ | $ | $ | |||||||||||||||||||
Reliability contingency events | |||||||||||||||||||||||
Pension and other postretirement plans | |||||||||||||||||||||||
Trojan decommissioning activities | |||||||||||||||||||||||
February 2021 ice storm and damage | |||||||||||||||||||||||
January 2024 storm and damage | |||||||||||||||||||||||
2020 Labor Day wildfire | |||||||||||||||||||||||
Wildfire mitigation | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total regulatory assets | $ | $ | $ | $ | |||||||||||||||||||
Regulatory liabilities: | |||||||||||||||||||||||
Asset retirement removal costs | $ | $ | $ | $ | |||||||||||||||||||
Deferred income taxes | |||||||||||||||||||||||
Clearwater RAC | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total regulatory liabilities | $ | * | $ | $ | * | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
Accrued employee compensation and benefits | $ | $ | |||||||||
Accrued taxes payable | |||||||||||
Accrued interest payable | |||||||||||
Accrued dividends payable | |||||||||||
Regulatory liabilities—current | |||||||||||
Other | |||||||||||
Total accrued expenses and other current liabilities | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost* | |||||||||||||||||||||||
Expected return on plan assets* | ( | ( | ( | ( | |||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Level 1 | Quoted prices are available in active markets for identical assets or liabilities as of the measurement date; | ||||
Level 2 | Pricing inputs include those that are directly or indirectly observable in the marketplace as of the measurement date; and | ||||
Level 3 | Pricing inputs include significant inputs that are unobservable for the asset or liability. |
As of June 30, 2024 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Other (2) | Total | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Nuclear decommissioning trust: (1) | |||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||
Domestic government | — | ||||||||||||||||||||||||||||
Corporate credit | — | ||||||||||||||||||||||||||||
Money market funds | — | — | — | ||||||||||||||||||||||||||
Non-qualified benefit plan trust: (3) | |||||||||||||||||||||||||||||
Debt securities—domestic government | — | ||||||||||||||||||||||||||||
Money market funds | — | ||||||||||||||||||||||||||||
Paid Leave Oregon Trust | |||||||||||||||||||||||||||||
Money market funds | — | — | — | 3 | 3 | ||||||||||||||||||||||||
Price risk management activities: (1) (4) | |||||||||||||||||||||||||||||
Electricity | — | ||||||||||||||||||||||||||||
Natural gas | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Price risk management activities: (1) (4) | |||||||||||||||||||||||||||||
Electricity | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Natural gas | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | — | $ |
As of December 31, 2023 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Other (2) | Total | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Nuclear decommissioning trust: (1) | |||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||
Domestic government | — | ||||||||||||||||||||||||||||
Corporate credit | — | ||||||||||||||||||||||||||||
Money market funds | — | — | — | ||||||||||||||||||||||||||
Non-qualified benefit plan trust: (3) | |||||||||||||||||||||||||||||
Debt securities—domestic government | — | ||||||||||||||||||||||||||||
Money market funds | — | ||||||||||||||||||||||||||||
Paid Leave Oregon Trust: | |||||||||||||||||||||||||||||
Money market funds | — | — | — | 3 | 3 | ||||||||||||||||||||||||
Price risk management activities: (1) (4) | |||||||||||||||||||||||||||||
Electricity | — | ||||||||||||||||||||||||||||
Natural gas | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Price risk management activities: (1) (4) | |||||||||||||||||||||||||||||
Electricity | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Natural gas | — | ||||||||||||||||||||||||||||
$ | $ | $ | $ | — | $ |
Fair Value | Valuation Technique | Significant Unobservable Input | Price per Unit | |||||||||||||||||||||||||||||||||||||||||
Commodity Contracts | Assets | Liabilities | Low | High | Weighted Average | |||||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
Electricity physical forwards | $ | $ | Discounted cash flow | Electricity forward price (per MWh) | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Natural gas financial swaps | Discounted cash flow | Natural gas forward price (per Decatherm) | ||||||||||||||||||||||||||||||||||||||||||
Electricity financial futures | Discounted cash flow | Electricity forward price (per MWh) | ||||||||||||||||||||||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Electricity physical forwards | $ | $ | Discounted cash flow | Electricity forward price (per MWh) | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Natural gas financial swaps | Discounted cash flow | Natural gas forward price (per Decatherm) | ||||||||||||||||||||||||||||||||||||||||||
Electricity financial futures | Discounted cash flow | Electricity forward price (per MWh) | ||||||||||||||||||||||||||||||||||||||||||
$ | $ |
Significant Unobservable Input | Position | Change to Input | Impact on Fair Value | |||||||||||||||||
Market price | Buy | Increase (decrease) | Gain (loss) | |||||||||||||||||
Market price | Sell | Increase (decrease) | Loss (gain) | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Balance as of the beginning of the period | $ | $ | $ | $ | |||||||||||||||||||
Net realized and unrealized losses/(gains)* | |||||||||||||||||||||||
Transfers from Level 3 to Level 2 | |||||||||||||||||||||||
Balance as of the end of the period | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
Current assets: | |||||||||||
Commodity contracts: | |||||||||||
Electricity | $ | $ | |||||||||
Natural gas | |||||||||||
Total current derivative assets (1) | |||||||||||
Noncurrent assets: | |||||||||||
Commodity contracts: | |||||||||||
Electricity | |||||||||||
Natural gas | |||||||||||
Total noncurrent derivative assets (1) | |||||||||||
Total derivative assets (2) | $ | $ | |||||||||
Current liabilities: | |||||||||||
Commodity contracts: | |||||||||||
Electricity | $ | $ | |||||||||
Natural gas | |||||||||||
Total current derivative liabilities | |||||||||||
Noncurrent liabilities: | |||||||||||
Commodity contracts: | |||||||||||
Electricity | |||||||||||
Natural gas | |||||||||||
Total noncurrent derivative liabilities | |||||||||||
Total derivative liabilities (2) | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||
Commodity contracts: | |||||||||||||||||
Electricity | MWhs | MWhs | |||||||||||||||
Natural gas | Decatherms | Decatherms | |||||||||||||||
Foreign currency | $ | Canadian | $ | Canadian |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Commodity contracts: | |||||||||||||||||||||||
Electricity | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Natural Gas | |||||||||||||||||||||||
2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Commodity contracts: | |||||||||||||||||||||||||||||||||||||||||
Electricity | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Natural gas | |||||||||||||||||||||||||||||||||||||||||
Net unrealized loss/(gain) | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Weighted-average common shares outstanding—basic | |||||||||||||||||||||||
Dilutive effect of potential common shares * | |||||||||||||||||||||||
Weighted-average common shares outstanding—diluted |
Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | |||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||
Balances as of December 31, 2023 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Issuances of shares pursuant to equity-based plans | — | — | |||||||||||||||||||||||||||
Issuances of shares pursuant to equity agreements | — | — | |||||||||||||||||||||||||||
Dividends declared ($ | — | ( | ( | ||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||||||
Balances as of March 31, 2024 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Issuances of shares pursuant to equity-based plans | — | — | |||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Dividends declared ($ | — | ( | ( | ||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Balances as of June 30, 2024 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Balances as of December 31, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Issuances of shares pursuant to equity-based plans | — | — | |||||||||||||||||||||||||||
Issuances of shares pursuant to equity agreements | — | ||||||||||||||||||||||||||||
Stock-based compensation | — | ( | — | — | ( | ||||||||||||||||||||||||
Dividends declared ($ | — | — | — | ( | ( | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Balances as of March 31, 2023 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Issuances of shares pursuant to equity-based plans | — | — | |||||||||||||||||||||||||||
Issuances of shares pursuant to equity agreements | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||||||
Dividends declared ($ | — | ( | ( | ||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Balances as of June 30, 2023 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Federal statutory tax rate | % | % | % | % | |||||||||||||||||||
Federal tax credits* | ( | ( | ( | ( | |||||||||||||||||||
State and local taxes, net of federal tax benefit | |||||||||||||||||||||||
Flow-through depreciation and cost basis differences | ( | ( | ( | ||||||||||||||||||||
Reversal of excess deferred income tax | ( | ( | ( | ( | |||||||||||||||||||
Other | |||||||||||||||||||||||
Effective tax rate | % | % | % | % | |||||||||||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2024 | 2023 | % Change | % Change (Weather- Adjusted) | 2024 | 2023 | % Change | % Change (Weather- Adjusted) | ||||||||||||||||||||||
Energy deliveries (MWhs in thousands): | |||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||
Residential | 1,608 | 1,730 | (7) | % | (1) | % | 3,851 | 4,057 | (5) | % | — | % | |||||||||||||||||
Commercial | 1,548 | 1,595 | (3) | — | 3,176 | 3,252 | (2) | (1) | |||||||||||||||||||||
Industrial | 1,204 | 1,140 | 6 | 7 | 2,390 | 2,211 | 8 | 9 | |||||||||||||||||||||
Subtotal | 4,360 | 4,465 | (2) | 1 | 9,417 | 9,520 | (1) | 2 | |||||||||||||||||||||
Direct access: | |||||||||||||||||||||||||||||
Commercial | 127 | 154 | (18) | (18) | 247 | 283 | (13) | (13) | |||||||||||||||||||||
Industrial | 451 | 430 | 5 | 5 | 847 | 866 | (2) | (2) | |||||||||||||||||||||
Subtotal | 578 | 584 | (1) | (1) | 1,094 | 1,149 | (5) | (5) | |||||||||||||||||||||
Total retail | 4,938 | 5,049 | (2) | 1 | % | 10,511 | 10,669 | (1) | 1 | % | |||||||||||||||||||
Wholesale | 2,104 | 1,453 | 45 | 4,283 | 2,849 | 50 | |||||||||||||||||||||||
Total | 7,042 | 6,502 | 8 | % | 14,794 | 13,518 | 9 | % | |||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
Average number of retail customers: | |||||||||||||||||||||||||||||||||||
Residential | 828,355 | 88 | % | 814,419 | 88 | % | 826,297 | 88 | % | 814,187 | 88 | % | |||||||||||||||||||||||
Commercial | 113,577 | 12 | 112,190 | 12 | 113,223 | 12 | 112,333 | 12 | |||||||||||||||||||||||||||
Industrial | 208 | — | 196 | — | 206 | — | 195 | — | |||||||||||||||||||||||||||
Direct access | 496 | — | 539 | — | 505 | — | 541 | — | |||||||||||||||||||||||||||
Total | 942,636 | 100 | % | 927,344 | 100 | % | 940,231 | 100 | % | 927,256 | 100 | % |
Heating Degree-days | Cooling Degree-days | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Avg. | 2024 | 2023 | Avg. | ||||||||||||||||||||||||||||||
First Quarter | 1,755 | 1,927 | 1,838 | — | — | — | |||||||||||||||||||||||||||||
April | 310 | 404 | 364 | — | 12 | 3 | |||||||||||||||||||||||||||||
May | 192 | 105 | 178 | 23 | 87 | 26 | |||||||||||||||||||||||||||||
June | 45 | 45 | 66 | 85 | 96 | 79 | |||||||||||||||||||||||||||||
Second Quarter | 547 | 554 | 608 | 108 | 195 | 108 | |||||||||||||||||||||||||||||
Year-to-date | 2,302 | 2,481 | 2,446 | 108 | 195 | 108 | |||||||||||||||||||||||||||||
(Decrease) increase from the 15-year average | (6) | % | 1 | % | — | % | 81 | % |
Plant availability (1) | Actual energy provided compared to projected levels (2) | Actual energy provided as a percentage of total system load | ||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
Generation: | ||||||||||||||||||||||||||
Thermal: | ||||||||||||||||||||||||||
Natural gas | 77 | % | 80 | % | 91 | % | 93 | % | 32 | % | 35 | % | ||||||||||||||
Coal (3) | 65 | 89 | 86 | 93 | 5 | 8 | ||||||||||||||||||||
Wind (4) | 91 | 98 | 102 | 97 | 11 | 8 | ||||||||||||||||||||
Hydro | 94 | 91 | 93 | 80 | 5 | 5 | ||||||||||||||||||||
Three Months Ended June 30, | % Increase (Decrease) | Six Months Ended June 30, | % Increase (Decrease) | ||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
Total revenues | $ | 758 | $ | 648 | 17 | % | $ | 1,687 | $ | 1,396 | 21 | % | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Purchased power and fuel | 275 | 220 | 25 | 680 | 524 | 30 | |||||||||||||||||||||||||||||
Generation, transmission and distribution | 107 | 101 | 6 | 206 | 194 | 6 | |||||||||||||||||||||||||||||
Administrative and other | 97 | 93 | 4 | 192 | 173 | 11 | |||||||||||||||||||||||||||||
Depreciation and amortization | 122 | 113 | 8 | 243 | 224 | 8 | |||||||||||||||||||||||||||||
Taxes other than income taxes | 41 | 40 | 3 | 88 | 83 | 6 | |||||||||||||||||||||||||||||
Total operating expenses | 642 | 567 | 13 | 1,409 | 1,198 | 18 | |||||||||||||||||||||||||||||
Income from operations | 116 | 81 | 43 | 278 | 198 | 40 | |||||||||||||||||||||||||||||
Interest expense, net* | 52 | 41 | 27 | 103 | 85 | 21 | |||||||||||||||||||||||||||||
Other income: | |||||||||||||||||||||||||||||||||||
Allowance for equity funds used during construction | 6 | 4 | 50 | 11 | 7 | 57 | |||||||||||||||||||||||||||||
Miscellaneous income, net | 9 | 5 | 80 | 15 | 17 | (12) | |||||||||||||||||||||||||||||
Other income, net | 15 | 9 | 67 | 26 | 24 | 8 | |||||||||||||||||||||||||||||
Income before income tax expense | 79 | 49 | 61 | 201 | 137 | 47 | |||||||||||||||||||||||||||||
Income tax expense | 7 | 10 | (30) | 20 | 24 | (17) | |||||||||||||||||||||||||||||
Net income | 72 | 39 | 85 | 181 | 113 | 60 | |||||||||||||||||||||||||||||
Other comprehensive income | — | 1 | — | 1 | 1 | — | |||||||||||||||||||||||||||||
Net income and Comprehensive income | $ | 72 | $ | 40 | 80 | % | $ | 182 | $ | 114 | 60 | % | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||||||||||||
Residential | $ | 307 | 40 | % | $ | 279 | 44 | % | $ | 722 | 43 | % | $ | 641 | 46 | % | |||||||||||||||||||
Commercial | 219 | 29 | 196 | 30 | 446 | 27 | 393 | 28 | |||||||||||||||||||||||||||
Industrial | 104 | 14 | 87 | 13 | 206 | 12 | 169 | 12 | |||||||||||||||||||||||||||
Subtotal | 630 | 83 | 562 | 87 | 1,374 | 82 | 1,203 | 86 | |||||||||||||||||||||||||||
Direct access: | |||||||||||||||||||||||||||||||||||
Commercial | 3 | — | 2 | — | 5 | — | 4 | — | |||||||||||||||||||||||||||
Industrial | 6 | 1 | 5 | 1 | 10 | 1 | 9 | 1 | |||||||||||||||||||||||||||
Subtotal | 9 | 1 | 7 | 1 | 15 | 1 | 13 | 1 | |||||||||||||||||||||||||||
Subtotal Retail | 639 | 84 | 569 | 88 | 1,389 | 83 | 1,216 | 87 | |||||||||||||||||||||||||||
Alternative revenue programs, net of amortization | (3) | — | 2 | — | (14) | (1) | 5 | — | |||||||||||||||||||||||||||
Other accrued revenues, net | 4 | — | (4) | (1) | 5 | — | (3) | — | |||||||||||||||||||||||||||
Total retail revenues | 640 | 84 | 567 | 87 | 1,380 | 82 | 1,218 | 87 | |||||||||||||||||||||||||||
Wholesale revenues | 99 | 13 | 62 | 10 | 275 | 16 | 150 | 11 | |||||||||||||||||||||||||||
Other operating revenues | 19 | 3 | 19 | 3 | 32 | 2 | 28 | 2 | |||||||||||||||||||||||||||
Total revenues | $ | 758 | 100 | % | $ | 648 | 100 | % | $ | 1,687 | 100 | % | $ | 1,396 | 100 | % | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2023 | $ | 567 | $ | 1,218 | |||||||
Change in prices as a result of the AUT, approved by the OPUC (partially offset in Purchased power and fuel) | 48 | 102 | |||||||||
Average price of energy deliveries due primarily to customer price increases | 33 | 81 | |||||||||
Recovery of deferrals for 2020 Wildfire, 2021 ice storm, and COVID-19 | (1) | 4 | |||||||||
Retail energy deliveries driven by changes in customer load | (7) | (11) | |||||||||
Clearwater RAC deferral | (3) | (13) | |||||||||
Combination of various supplemental tariffs and adjustments | 3 | (1) | |||||||||
June 30, 2024 | $ | 640 | $ | 1,380 | |||||||
Change in Total retail revenues | $ | 73 | $ | 162 | |||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2023 | $ | 220 | $ | 524 | |||||||
Average variable power cost per MWh | 28 | 155 | |||||||||
Total system load | 27 | 75 | |||||||||
2021 PCAM deferral amortization | — | 1 | |||||||||
2024 RCE deferral | — | (75) | |||||||||
June 30, 2024 | 275 | 680 | |||||||||
Change in Purchased power and fuel | $ | 55 | $ | 156 | |||||||
Average variable power cost per MWh: | |||||||||||
June 30, 2023 | $ | 35.19 | $ | 40.01 | |||||||
June 30, 2024 | $ | 40.10 | $ | 52.00 | |||||||
Total system load (MWhs in thousands): | |||||||||||
June 30, 2023 | 6,138 | 12,922 | |||||||||
June 30, 2024 | 6,774 | 14,384 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Sources of energy (MWhs in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
Generation: | |||||||||||||||||||||||||||||||||||||||||||||||
Thermal: | |||||||||||||||||||||||||||||||||||||||||||||||
Natural gas | 1,641 | 24 | % | 1,624 | 26 | % | 4,669 | 32 | % | 4,520 | 35 | % | |||||||||||||||||||||||||||||||||||
Coal | 255 | 4 | 432 | 7 | 781 | 5 | 1,028 | 8 | |||||||||||||||||||||||||||||||||||||||
Total thermal | 1,896 | 28 | 2,056 | 33 | 5,450 | 37 | 5,548 | 43 | |||||||||||||||||||||||||||||||||||||||
Hydro | 345 | 5 | 374 | 6 | 738 | 5 | 669 | 5 | |||||||||||||||||||||||||||||||||||||||
Wind | 948 | 14 | 602 | 10 | 1,538 | 11 | 1,083 | 8 | |||||||||||||||||||||||||||||||||||||||
Total generation | 3,189 | 47 | 3,032 | 49 | 7,726 | 53 | 7,300 | 56 | |||||||||||||||||||||||||||||||||||||||
Purchased power: | |||||||||||||||||||||||||||||||||||||||||||||||
Hydro | 1,851 | 27 | 1,412 | 23 | 3,415 | 24 | 2,492 | 19 | |||||||||||||||||||||||||||||||||||||||
Wind | 415 | 6 | 244 | 4 | 721 | 5 | 476 | 4 | |||||||||||||||||||||||||||||||||||||||
Solar | 350 | 5 | 394 | 6 | 497 | 3 | 539 | 4 | |||||||||||||||||||||||||||||||||||||||
Natural Gas | — | — | — | — | 94 | 1 | 11 | — | |||||||||||||||||||||||||||||||||||||||
Waste, Wood, and Landfill Gas | 46 | 1 | 38 | 1 | 85 | 1 | 81 | 1 | |||||||||||||||||||||||||||||||||||||||
Source not specified | 923 | 14 | 1,018 | 17 | 1,846 | 13 | 2,023 | 16 | |||||||||||||||||||||||||||||||||||||||
Total purchased power | 3,585 | 53 | 3,106 | 51 | 6,658 | 47 | 5,622 | 44 | |||||||||||||||||||||||||||||||||||||||
Total system load | 6,774 | 100 | % | 6,138 | 100 | % | 14,384 | 100 | % | 12,922 | 100 | % | |||||||||||||||||||||||||||||||||||
Less: wholesale sales | (2,104) | (1,453) | (4,283) | (2,849) | |||||||||||||||||||||||||||||||||||||||||||
Retail load requirement | 4,670 | 4,685 | 10,101 | 10,073 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Sources of energy (MWhs in thousands): | |||||||||||||||||||||||
PURPA purchased power: | |||||||||||||||||||||||
Hydro | 11 | 11 | 21 | 19 | |||||||||||||||||||
Wind | 10 | 8 | 15 | 14 | |||||||||||||||||||
Solar | 196 | 201 | 287 | 303 | |||||||||||||||||||
Waste, Wood, and Landfill Gas | 5 | 30 | 33 | 58 | |||||||||||||||||||
Total | 222 | 250 | 356 | 394 |
Runoff as a Percent of Normal* | |||||||||||
Location | 2024 Forecast | 2023 Actual | |||||||||
Columbia River at The Dalles, Oregon | 75 | % | 83 | % | |||||||
Mid-Columbia River at Grand Coulee, Washington | 73 | 79 | |||||||||
Clackamas River at Estacada, Oregon | 93 | 101 | |||||||||
Deschutes River at Moody, Oregon | 94 | 98 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2023 | $ | 158 | $ | 374 | |||||||
Purchased power and fuel expense | 55 | 230 | |||||||||
Wholesale revenues | (37) | (125) | |||||||||
2021 PCAM deferral amortization | $ | — | 1 | ||||||||
2024 RCE deferral | $ | — | (75) | ||||||||
June 30, 2024 | $ | 176 | $ | 405 | |||||||
Change in NVPC | $ | 18 | $ | 31 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2023 | $ | 101 | $ | 194 | |||||||
Generating facility expenses driven by increased major maintenance activities | 6 | 10 | |||||||||
Vegetation management, inspection, wildfire mitigation, and distribution maintenance expenses | 5 | 9 | |||||||||
Service restoration and storm response costs | 4 | 7 | |||||||||
Miscellaneous expenses | (9) | (14) | |||||||||
June 30, 2024 | $ | 107 | $ | 206 | |||||||
Change in Generation, transmission and distribution | $ | 6 | $ | 12 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2023 | $ | 93 | $ | 173 | |||||||
Amortization of COVID-19 bad debt expense deferral | — | 4 | |||||||||
Regulatory and Professional services costs | — | 2 | |||||||||
Employee compensation and benefits | 1 | 3 | |||||||||
Customer related costs | 2 | 3 | |||||||||
Miscellaneous expenses | 1 | 7 | |||||||||
June 30, 2024 | $ | 97 | $ | 192 | |||||||
Change in Administrative and other | $ | 4 | $ | 19 |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash and cash equivalents, beginning of period | $ | 5 | $ | 165 | |||||||
Net cash provided by (used in): | |||||||||||
Operating activities | 364 | 143 | |||||||||
Investing activities | (639) | (574) | |||||||||
Financing activities | 276 | 279 | |||||||||
Increase (decrease) in cash and cash equivalents | 1 | (152) | |||||||||
Cash and cash equivalents, end of period | $ | 6 | $ | 13 |
Increase/ (Decrease) | |||||
Net income | $ | 68 | |||
Accounts receivable and Unbilled revenue | (66) | ||||
Margin deposits activity | 82 | ||||
Accounts payable | 199 | ||||
Regulatory deferral activity | (130) | ||||
Depreciation and amortization | 19 | ||||
Deferred income taxes | 21 | ||||
Tax credit sales | 13 | ||||
Other miscellaneous changes | 15 | ||||
Net change in cash flow from operations | $ | 221 |
2024 | 2025 | 2026 | 2027 | 2028 | |||||||||||||||||||||||||
Ongoing capital expenditures (1) | $ | 915 | $ | 865 | $ | 895 | $ | 890 | $ | 920 | |||||||||||||||||||
Transmission | 170 | 180 | 255 | 265 | 435 | ||||||||||||||||||||||||
Clearwater | 20 | — | — | — | — | ||||||||||||||||||||||||
BESS projects | 235 | 155 | — | — | — | ||||||||||||||||||||||||
Total capital expenditures (2) | $ | 1,340 | $ | 1,200 | $ | 1,150 | $ | 1,155 | $ | 1,355 | |||||||||||||||||||
Long-term debt maturities | $ | 80 | $ | — | $ | — | $ | 160 | $ | 100 |
As of June 30, 2024 | |||||||||||||||||
Capacity | Outstanding | Available | |||||||||||||||
Revolving credit facility (1) | $ | 750 | $ | — | $ | 750 | |||||||||||
Letters of credit (2) | 320 | 86 | 234 | ||||||||||||||
Total credit | $ | 1,070 | $ | 86 | $ | 984 | |||||||||||
Cash and cash equivalents | 6 | ||||||||||||||||
Total liquidity | $ | 990 |
Moody’s | S&P | ||||||||||
Issuer credit rating | A3 | BBB+ | |||||||||
Senior secured debt | A1 | A | |||||||||
Commercial paper | P-2 | A-2 | |||||||||
Outlook | Negative | Stable |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
Exhibit Number | Description | ||||
3.1 | Third Amended and Restated Articles of Incorporation of Portland General Electric Company (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed May 9, 2014). | ||||
3.2 | Twelfth Amended and Restated Bylaws of Portland General Electric Company (incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed October 27, 2023). | ||||
31.1 | |||||
31.2 | |||||
32 | |||||
101.INS | XBRL Instance Document. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | ||||
101.SCH | XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover page information from Portland General Electric Company’s Quarterly Report on Form 10-Q filed July 26, 2024, formatted in iXBRL (Inline Extensible Business Reporting Language). |
PORTLAND GENERAL ELECTRIC COMPANY | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | July 25, 2024 | By: | /s/ Joseph R. Trpik | |||||||||||
Joseph R. Trpik | ||||||||||||||
Senior Vice President, Finance and Chief Financial Officer | ||||||||||||||
(duly authorized officer and principal financial officer) |
Date: | July 25, 2024 | By: | /s/ Maria M. Pope | ||||||||
Maria M. Pope | |||||||||||
President and Chief Executive Officer |
Date: | July 25, 2024 | By: | /s/ Joseph R. Trpik | ||||||||
Joseph R. Trpik | |||||||||||
Senior Vice President, Finance and Chief Financial Officer |
/s/ Maria M. Pope | /s/ Joseph R. Trpik | |||||||||||||||||||
Maria M. Pope | Joseph R. Trpik | |||||||||||||||||||
President and Chief Executive Officer | Senior Vice President, Finance and Chief Financial Officer | |||||||||||||||||||
Date: | July 25, 2024 | Date: | July 25, 2024 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 103,066,683 | 101,159,609 |
Common stock, shares outstanding | 103,066,683 | 101,159,609 |
Basis of Presentation (Notes) |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Nature of Business Portland General Electric Company (PGE or the Company) is a single, vertically-integrated electric utility engaged in the generation, purchase, transmission, distribution, and retail sale of electricity in the State of Oregon (State). The Company also participates in the wholesale market by purchasing and selling electricity and natural gas in an effort to meet the needs of, and obtain reasonably-priced power for, its retail customers, manage risk, and administer its long-term wholesale contracts. In addition, PGE performs portfolio management and wholesale market services for third parties in the region. The Company continues to develop products and service offerings for the benefit of retail and wholesale customers. PGE operates as a single segment, with revenues and costs related to its business activities recorded and analyzed on a total electric operations basis. The Company owns unregulated, non-utility real estate comprised primarily of PGE’s corporate headquarters. The Company’s corporate headquarters is located in Portland, Oregon and its approximately 4,000 square mile, State-approved service area, entirely within the State, encompasses 51 incorporated cities. As of June 30, 2024, PGE served 944,000 retail customers within a service area of 1.9 million residents. PGE is subject to the jurisdiction of the Public Utility Commission of Oregon (OPUC) with respect to retail prices, utility services, accounting policies and practices, issuances of securities, and certain other matters. Retail prices are based on the Company’s cost to serve customers, including an opportunity to earn a reasonable rate of return, as determined by the OPUC. The Company is also subject to regulation by the Federal Energy Regulatory Commission (FERC) in matters related to wholesale energy transactions, transmission services, reliability standards, natural gas pipelines, hydroelectric project licensing, accounting policies and practices, short-term debt issuances, and certain other matters. Condensed Consolidated Financial Statements These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such regulations, although PGE believes that the disclosures provided are adequate to make the interim information presented not misleading. The financial information included herein as of and for the three and six months ended June 30, 2024 and 2023 is unaudited; however, in the opinion of management, such information reflects all adjustments necessary to fairly present the condensed consolidated financial position, condensed consolidated income and comprehensive income, and condensed consolidated cash flows of the Company for these interim periods. All such adjustments are of a normal recurring nature, unless otherwise noted. The financial information as of December 31, 2023 is derived from the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2023, included in Item 8 of PGE’s Annual Report on Form 10-K, filed with the SEC on February 20, 2024, which should be read in conjunction with the interim unaudited Financial Statements. Comprehensive Income No material change occurred in Other comprehensive income in the three and six months ended June 30, 2024 and 2023. Miscellaneous Income, Net Miscellaneous income, net includes $5 million and $3 million in interest income from regulatory assets for the three months ended June 30, 2024 and 2023, respectively, and $3 million and $1 million in other miscellaneous income. The remaining activity is comprised of $1 million in realized and unrealized gains on the non-qualified benefit plan trust assets in both 2024 and 2023. For the six months ended June 30, 2024 and 2023, respectively, Miscellaneous income, net includes $9 million and $11 million in interest income from regulatory assets, $5 million and $4 million in other miscellaneous income, and $1 million and $2 million in realized and unrealized gains on the non-qualified benefit plan trust assets. Use of Estimates The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of gain or loss contingencies, as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results experienced by the Company could differ materially from those estimates. Certain costs are estimated for the full year and allocated to interim periods based on estimates of operating time expired, benefit received, or activity associated with the interim period; accordingly, such costs may not be reflective of amounts to be recognized for a full year. Due to seasonal fluctuations in electricity sales, as well as the price of wholesale electricity and natural gas, interim financial results do not necessarily represent those to be expected for the year.
|
Revenue Recognition (Notes) |
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Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Table Text Block] | REVENUE RECOGNITION Disaggregated Revenue The following table presents PGE’s revenue, disaggregated by customer type (in millions):
* Wholesale revenues include $32 million and $22 million related to electricity commodity contract derivative settlements for the three months ended June 30, 2024 and 2023, respectively, and $120 million and $56 million for the six months ended June 30, 2024 and 2023. Price risk management derivative activities are included within total revenues but do not represent revenues from contracts with customers as defined by GAAP. For further information, see Note 5, Risk Management. Retail Revenues The Company’s primary revenue source is the sale of electricity to customers at regulated, tariff-based prices. Retail customers are classified as residential, commercial, or industrial. Residential customers include single-family housing, multiple-family housing (such as apartments, duplexes, and town homes), manufactured homes, and small farms. Residential demand is sensitive to the effects of weather, with demand highest during the winter heating and summer cooling seasons. Commercial customers consist of non-residential customers who accept energy deliveries at voltages equivalent to those delivered to residential customers and are also sensitive to the effects of weather, although to a lesser extent than residential customers. Commercial customers include most businesses, small industrial companies, and public street and highway lighting accounts. Industrial customers consist of non-residential customers who accept delivery at higher voltages than commercial customers. Demand from industrial customers is primarily driven by economic conditions, with weather having a less significant impact on energy use by this customer class. In accordance with state regulations, PGE’s retail customer prices are based on the Company’s cost of service and determined through General Rate Case (GRC) proceedings and various tariff filings with the OPUC. Additionally, the Company offers pricing options that include a daily market price option, various time-of-use options, and several renewable energy options. Retail revenue is billed based on monthly meter readings taken at various cycle dates throughout the month. At the end of each month, PGE estimates and records the revenue earned from energy deliveries that have not yet been billed to customers. This amount, which is classified as unbilled revenues and included in Accounts receivable, net in the Company’s condensed consolidated balance sheets, is calculated based on actual net retail system load each month, the number of days from the last meter read date through the last day of the month, and current customer prices. PGE’s obligation to sell electricity to retail customers generally represents a single performance obligation representing a series of distinct services that are substantially the same and have the same pattern of transfer to the customer that is satisfied over time as customers simultaneously receive and consume the benefits provided. PGE applies the invoice method to measure its progress towards satisfactorily completing its performance obligations. Pursuant to regulation by the OPUC, PGE is mandated to maintain several tariff schedules to collect funds from customers for programs that benefit the general public, such as conservation, low-income housing, energy efficiency, renewable energy programs, and privilege taxes. For such programs, PGE generally collects the funds and remits the amounts to third party agencies that administer the programs. In these arrangements, PGE is considered to be an agent, as PGE’s performance obligation is to facilitate a transaction between customers and the administrators of these programs. Therefore, such amounts are presented on a net basis and do not appear in Revenues, net within the condensed consolidated statements of income. Alternative Revenues programs—Revenues related to PGE’s decoupling mechanism and Renewable Adjustment Clause (RAC) are considered earned under alternative revenue programs, as these amounts represent contracts with the regulator and not with customers. Such revenues are presented separately from revenues from contracts with customers and classified as Alternative revenue programs, net of amortization on the condensed consolidated statements of income. The activity within this line item is comprised of current period deferral adjustments, which can either be a collection from or a refund to customers, and is net of any related amortization. When amounts related to alternative revenue programs are ultimately included in prices and customer bills, the amounts are included within Revenues, net, with an equal and offsetting amount of amortization recorded on the Alternative revenue programs, net of amortization line item. Under the RAC in 2024, the Company has deferred amounts related to the Clearwater Wind Development (Clearwater). For further information, see “Clearwater RAC” in the Regulatory Assets and Liabilities section of Note 3, Balance Sheet Components. Wholesale Revenues PGE participates in the wholesale electricity marketplace in order to balance its supply of power to meet the needs of, and secure reasonably-priced power for, its retail customers, manage risk, and administer its current long-term wholesale contracts. In addition, the Company performs portfolio management and wholesale market services for third parties in the region. Interconnected transmission systems in the western United States serve utilities with diverse load requirements and allow PGE to purchase and sell electricity within the region depending upon: i) the relative price and availability of power; ii) hydro, solar and wind conditions; and iii) daily and seasonal retail demand. PGE’s Wholesale revenues are primarily short-term electricity sales to utilities and power marketers that consist of single performance obligations that are satisfied as energy is transferred to the counterparty. The Company nets certain purchase and sale transactions in which it would simultaneously receive and deliver physical power with the same counterparty; in such cases, only the net amount of those purchases or sales required to meet retail and wholesale obligations will be physically settled and recorded in Wholesale revenues. Other Operating Revenues Other operating revenues consist primarily of gains and losses on the sale of natural gas volumes purchased that exceeded what was needed to fuel the Company’s generating facilities, as well as revenues from transmission services, excess transmission capacity resales, excess fuel sales, utility pole attachment revenues, and other electric services provided to customers. Arrangements with Multiple Performance Obligations Certain contracts with customers, primarily wholesale, may include multiple performance obligations. For such arrangements, PGE allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers.
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Balance Sheet Components (Notes) |
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Balance Sheet Components [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Inventories PGE’s inventories, which are recorded at average cost, consist primarily of materials and supplies for use in operations, maintenance, and capital activities, as well as fuel, which includes natural gas, coal, and oil, for use in the Company’s generating plants. Periodically, PGE assesses whether inventories are recorded at the lower of average cost or net realizable value. Accounts Receivable, Net Accounts receivable, net includes $137 million and $138 million of unbilled revenues as of June 30, 2024 and December 31, 2023, respectively. Accounts receivable, net includes an allowance for uncollectible accounts of $11 million as of June 30, 2024 and $9 million as of December 31, 2023. The following summarizes activity during 2024 in the allowance for credit losses (in millions):
Other Current Assets Other current assets consist of the following (in millions):
Electric Utility Plant, Net Electric utility plant, net consists of the following (in millions):
Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $595 million and $558 million as of June 30, 2024 and December 31, 2023, respectively. Amortization expense related to intangible assets was $18 million and $15 million for the three months ended June 30, 2024 and 2023, respectively, and $36 million and $29 million for the six months ended June 30, 2024 and 2023, respectively. The Company’s intangible assets primarily consist of computer software development and hydro licensing costs. Battery storage agreement—On April 26, 2023, PGE entered into a battery storage capacity agreement that will be accounted for as a lease upon commencement. The lease is expected to commence in December 2024 and has a term of 20 years. The total fixed contract consideration is expected to be $737 million over the lease term. Regulatory Assets and Liabilities Regulatory assets and liabilities consist of the following (in millions):
* Included in Accrued expenses and other current liabilities in the condensed consolidated balance sheets. January 2024 storm and damage—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. As a result of the historic winter storm, Oregon’s Governor declared a state of emergency on January 18, 2024, which allows PGE to seek recovery of incremental storm expenses through the OPUC pre-authorized emergency deferral mechanism. 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 as of June 30, 2024, PGE’s deferred balance related to the January 2024 storm was $44 million, including interest. PGE believes amounts deferred as of June 30, 2024 are probable of recovery under the emergency deferral mechanism. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence, including an earnings test, could result in a portion, or all, of PGE’s deferrals being disallowed for recovery. Such disallowance would be recognized as a charge to earnings. Reliability contingency events—A portion of the January 2024 storm also qualified as a Reliability Contingency Event (RCE) as approved by the OPUC in PGE’s 2024 GRC. Under the RCE mechanism, PGE is allowed to defer and recover 80% of prudent costs for RCEs above amounts forecasted in the Company’s Annual Power Cost Update Tariff, without application of an earnings test, with the remaining 20% flowing through operating expenses and subject to the existing PCAM. As of June 30, 2024, PGE’s deferred balance related to the 2024 RCE was $77 million, including interest. PGE files the results of the PCAM annually with the OPUC no later than July 1, initiating a regulatory review process that typically results in a final determination and order from the OPUC by the end of the year of filing, with any resulting refund or collection impacting customer prices effective January 1 of the following year. Costs related to the RCE in January 2024 will be included in the Company’s PCAM for 2024, which the Company expects to file no later than July 1, 2025. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence could result in a portion, or all, of PGE’s deferrals being disallowed for recovery. Such disallowance would be recognized as a charge to earnings. Wildfire Mitigation represents incremental costs and investments made by PGE related to intensifying efforts on its system to mitigate the risk of wildfire and improve resiliency to wildfire damage under SB 762, enacted in July 2021. These efforts include enhanced tree and brush clearing, hardening equipment, and making emergency plans in close partnership with various land and emergency management agencies to further expand the use of a public safety power shutoff, if the need should arise. PGE submitted its 2024 risk-based Wildfire Mitigation Plan to the OPUC in December 2023, which was approved by the OPUC during the public meeting on July 9, 2024. As of June 30, 2024 and December 31, 2023, PGE’s deferred balance related to incremental wildfire mitigation operating expenses was $40 million and $29 million, respectively. The 2024 balance is comprised of: •Pre-AAC—Prior to establishing the collections noted below, PGE had deferred incremental costs related to wildfire mitigation and as of June 30, 2024 this balance is $17 million. On July 1, 2022, PGE filed an application for reauthorization of OPUC Docket UM 2019 to defer incremental wildfire mitigation costs that exceed the amount granted in base rates. On May 10, 2023, in Order No. 23-173, the OPUC approved an automatic adjustment clause mechanism to recover wildfire mitigation costs (capital and expense). PGE and certain parties agreed to a stipulation, which was adopted by the OPUC on October 18, 2023, that allows PGE to begin amortizing $27 million comprised of $23 million related to the September 30, 2023 deferred operating expense balance of $31 million and $4 million for capital related revenue requirement. •2023 Base rates—The outcome of PGE’s 2022 GRC provided an annual amount of $24 million to be collected in base rates for recovery of operating expenses related to wildfire mitigation efforts beginning May 9, 2022, through December 31, 2023. As of June 30, 2024, there was $1 million in the balancing account. •2024 AAC—Beginning January 1, 2024, and in conjunction with the Company’s 2024 GRC proceeding, PGE removed the $24 million of wildfire mitigation operations and maintenance (O&M) expense recovery from base rates, with the intent of recovering the current year forecasted O&M expense within the automatic adjustment clause in a separate tariff. On February 16, 2024, PGE submitted an advice filing to the OPUC to update the tariff to reflect prospective wildfire mitigation costs for 2024, which included $45 million of O&M operations and maintenance expense and $4 million for the revenue requirement of capital placed in service. On July 23, 2024, the OPUC reached a decision that will allow PGE to begin collecting $24 million of O&M expense and $4 million for the revenue requirement of capital placed in service. Collection would begin August 1, 2024 over a nine-month period. Any differences between actual expense and customer collections will be recorded as regulatory assets or liabilities within the automatic adjustment clause balancing account, which will be subject to a prudence review, but will not be subject to an earnings test. As of June 30, 2024, there was $22 million deferred as a regulatory asset in the balancing account. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence could result in a portion, or all, of PGE’s deferrals being disallowed for recovery. Such disallowance would be recognized as a charge to earnings. Clearwater RAC—The RAC allows PGE to recover prudently incurred costs of renewable resources through filings made each year, outside of a GRC. Under the RAC, during 2023, the Company submitted a filing for Clearwater, which estimated the annual revenue requirement, net of NVPC benefits to be a refund to customers of approximately $30 million that would be included in customers prices June 1, 2024. Pursuant to the filing, PGE would defer the revenue requirement, net of NVPC benefits, from the in-service date of January 2024 until Clearwater was reflected in customer prices. On April 4, 2024, the OPUC rejected PGE and parties’ Stipulation regarding Clearwater and requested that PGE submit reply testimony responding to the arguments raised by the OPUC Staff by April 25, 2024. The OPUC issued an order on July 16, 2024 that further suspended the tariff effective date until November 1, 2024. As of June 30, 2024, the Company had recorded a net $13 million regulatory liability refund to customers. The OPUC has significant discretion on overall prudence and in making the final determination of recovery. Any cost disallowance or increased refunds would be recognized as a charge to earnings. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in millions):
Credit Facilities On August 18, 2023, PGE entered into an amendment of its existing revolving credit facility. As of June 30, 2024, PGE had a $750 million revolving credit facility scheduled to expire in September 2028. The Company has the ability to expand the revolving credit facility to $850 million, if needed, subject to the requirements of the agreement. Pursuant to the terms of the agreement, the revolving credit facility may be used for general corporate purposes, including as backup for commercial paper borrowings and to permit the issuance of standby letters of credit. PGE may borrow for one, three, or six months at a fixed interest rate established at the time of the borrowing, or at a variable interest rate for any period up to the then remaining term of the applicable credit facility. The revolving credit facility contains a provision that requires annual fees based on the Company’s unsecured credit ratings, and contains customary covenants and default provisions, including a requirement that limits consolidated indebtedness, as defined in the agreement, to 65% of total capitalization. As of June 30, 2024, PGE was in compliance with this covenant with a 56.7% debt-to-total capital ratio and had no outstanding balance on the revolving credit facility. As a result of the policy to backup commercial paper borrowings, the aggregate unused available credit capacity under the credit facility was $750 million. In addition, the credit facility offers the potential for adjustments to interest rate margins and fees based on PGE’s achievement of certain annual sustainability-linked metrics related to its non-emitting generation capacity and the percentage of management comprised of women and employees who identify as black, indigenous, and people of color. The Company believes these potential adjustments will not have a material impact on PGE’s results of operations. The Company has a commercial paper program under which it may issue commercial paper for terms of up to 270 days. The Company has elected to limit its borrowings under the revolving credit facility in order to allow for coverage of any potential need to repay commercial paper that may be outstanding at the time. As of June 30, 2024, PGE had no commercial paper outstanding. PGE typically classifies borrowings under the revolving credit facility and outstanding commercial paper as Short-term debt on the condensed consolidated balance sheets. In addition, PGE has four letter of credit facilities that provide a total capacity of $320 million under which the Company can request letters of credit for original terms not to exceed one year. The issuance of such letters of credit is subject to the approval of the issuing institution. Under these facilities, letters of credit for a total of $86 million were outstanding as of June 30, 2024. Letters of credit issued are not reflected on the Company’s condensed consolidated balance sheets. Pursuant to an order issued by the FERC, the Company is authorized to issue short-term debt in an aggregate amount of up to $900 million through February 6, 2026. Long-term Debt On February 22, 2024, PGE entered into a Bond Purchase Agreement related to the sale of $450 million in First Mortgage Bonds (FMBs). The Bonds were issued and funded in full on February 22, 2024 and consist of: •a series, due in 2029, in the amount of $100 million that will bear interest from its issuance date at an annual rate of 5.15%; •a series, due in 2034, in the amount of $100 million that will bear interest from its issuance date at an annual rate of 5.36%; and •a series, due in 2054, in the amount of $250 million that will bear interest from its issuance date at an annual rate of 5.73%. Defined Benefit Retirement Plan Costs Components of net periodic benefit cost under the defined benefit pension plan are as follows (in millions):
* The net expense portion of non-service cost components are included in Miscellaneous income, net within Other income on the Company’s condensed consolidated statements of income and comprehensive income.
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Fair Value of Financial Instruments (Notes) |
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Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS PGE estimated the fair value of financial asset and liability instruments as of June 30, 2024 and December 31, 2023, and classified these financial instruments based on a fair value hierarchy that is applied to prioritize the inputs to the valuation techniques used to measure fair value. The three levels of the fair value hierarchy and application to the Company are:
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets, liabilities, and their placement within the fair value hierarchy. Assets measured at fair value using net asset value (NAV) as a practical expedient are not categorized in the fair value hierarchy. These assets are listed in the totals of the fair value hierarchy to permit the reconciliation to amounts presented in the financial statements. Changes to market liquidity conditions, the availability of observable inputs, or changes in the economic structure of a security marketplace may require transfer of the securities between levels. The Company’s financial assets and liabilities whose values were recognized at fair value in the Company’s condensed consolidated balance sheets are as follows by level within the fair value hierarchy (in millions):
(1)Activities are subject to regulation, with certain gains and losses deferred pursuant to regulatory accounting and included in Regulatory assets or Regulatory liabilities as appropriate. (2)Assets are measured at NAV as a practical expedient and not subject to hierarchy level classification disclosure. (3)Excludes insurance policies of $32 million, which are recorded at cash surrender value. (4)For further information, see Note 5, Risk Management.
(1)Activities are subject to regulation, with certain gains and losses deferred pursuant to regulatory accounting and included in Regulatory assets or Regulatory liabilities as appropriate. (2)Assets are measured at NAV as a practical expedient and not subject to hierarchy level classification disclosure. (3)Excludes insurance policies of $30 million, which are recorded at cash surrender value. (4)For further information, see Note 5, Risk Management. Cash equivalents are highly liquid investments with maturities of three months or less at the date of acquisition and primarily consist of money market funds. Such funds seek to maintain a stable net asset value and are comprised of short-term, government funds. Policies of such funds require that the weighted average maturity of securities holdings of such funds not exceed 90 days and provide investors with the ability to redeem shares of the funds daily at their respective net asset value. Cash equivalents are classified as Level 1 in the fair value hierarchy due to the availability of quoted prices for identical assets in an active market as of the measurement date. Principal markets for money market fund prices include published exchanges such as the National Association of Securities Dealers Automated Quotations (Nasdaq) and the New York Stock Exchange (NYSE). Assets held in the Nuclear decommissioning trust (NDT), Non-qualified benefit plan (NQBP), and Paid Leave Oregon trusts are recorded at fair value in PGE’s condensed consolidated balance sheets and invested in securities that are exposed to interest rate, credit, and market volatility risks. These assets are classified within Level 1, 2, or 3 based on the following factors: Debt securities—PGE invests in highly-liquid United States Treasury securities to support the investment objectives of the trusts. These domestic government securities are classified as Level 1 in the fair value hierarchy due to the availability of quoted prices for identical assets in an active market as of the measurement date. Assets classified as Level 2 in the fair value hierarchy include domestic government debt securities, such as municipal debt, and corporate credit securities. Prices are determined by evaluating pricing data such as broker quotes for similar securities and adjusted for observable differences. Significant inputs used in valuation models generally include benchmark yields and issuer spreads. The external credit rating, coupon rate, and maturity of each security are considered in the valuation, as applicable. Money market funds—PGE invests in money market funds that seek to maintain a stable net asset value. These funds invest in high-quality, short-term, diversified money market instruments, short-term treasury bills, federal agency securities, certificates of deposits, and commercial paper. The Company believes the redemption value of these funds is likely to be the fair value, which is represented by the net asset value. Redemption is permitted daily without written notice. The NQBP trust is invested in exchange-traded government money market funds and is classified as Level 1 in the fair value hierarchy due to the availability of quoted prices in published exchanges such as Nasdaq and the NYSE. The money market fund in the NDT is valued at NAV as a practical expedient and is not included in the fair value hierarchy. Assets and liabilities from price risk management activities, recorded at fair value in PGE’s condensed consolidated balance sheets, consist of derivative instruments entered into by the Company to manage its risk exposure to commodity price and foreign currency exchange rates and reduce volatility in net variable power costs (NVPC) for the Company’s retail customers. For additional information regarding these assets and liabilities, see Note 5, Risk Management. For those assets and liabilities from price risk management activities classified as Level 2, fair value is derived using present value formulas that utilize inputs such as forward commodity prices and interest rates. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include commodity forwards, futures, and swaps. Assets and liabilities from price risk management activities classified as Level 3 consist of longer-term commodity forwards, futures, swaps, and options for which fair value is derived using one or more significant inputs that are not observable for the entire term of the instrument. Quantitative information regarding the significant, unobservable inputs used in the measurement of Level 3 assets and liabilities from price risk management activities is presented below:
The significant unobservable inputs used in the Company’s fair value measurement of price risk management assets and liabilities are long-term forward prices for commodity derivatives. For certain long-term contracts, observable, liquid market transactions are not available for the duration of the delivery period. In such instances, the Company uses internally-developed long-term price curves that utilize observable data when available. When not available, regression techniques are used to estimate unobservable future prices. The Company’s Level 3 assets and liabilities from price risk management activities are sensitive to market price changes in the respective underlying commodities. The significance of the impact is dependent upon the magnitude of the price change and PGE’s position as either the buyer or seller under the contract. Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows:
Changes in the fair value of net liabilities from price risk management activities (net of assets from price risk management activities) classified as Level 3 in the fair value hierarchy were as follows (in millions):
* Both realized and unrealized losses/(gains), of which the unrealized portions are offset by the effects of regulatory accounting until settlement of the underlying transactions, are recorded in Revenues, net or Purchased power and fuel expense in the condensed consolidated statements of income and comprehensive income. Includes $2 million net realized gains for the three months ended June 30, 2024 and no net realized gains or losses for the three months ended June 30, 2023. For the six-month periods ended June 30, 2024 and 2023, includes $1 million in net realized gains and $3 million in net realized losses, respectively. Transfers out of Level 3 occur when the significant inputs become more observable, such as when the time between the valuation date and the delivery term of a transaction becomes shorter. Long-term debt is recorded at amortized cost in PGE’s condensed consolidated balance sheets. The value of the Company’s FMBs and Pollution Control Revenue Bonds is classified as a Level 2 fair value measurement. As of June 30, 2024, the carrying amount of PGE’s long-term debt was $4,433 million, net of $15 million of unamortized debt expense, and its estimated aggregate fair value was $3,457 million. As of December 31, 2023, the carrying amount of PGE’s long-term debt was $3,985 million, net of $14 million of unamortized debt expense, and its estimated aggregate fair value was $3,705 million.
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Risk Management (Notes) |
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Price Risk Management [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RISK MANAGEMENT | RISK MANAGEMENT PGE participates in the wholesale marketplace to balance its supply of power, which consists of its own generation combined with wholesale market transactions, to meet the needs of its retail customers, manage risk, and administer the Company’s long-term wholesale contracts. Wholesale market transactions include purchases and sales of both power and fuel resulting from economic dispatch decisions with respect to Company-owned generation resources. The Company also performs portfolio management and wholesale market services for third parties in the region. As a result of this ongoing business activity, PGE is exposed to commodity price risk and foreign currency exchange rate risk, from which changes in prices and/or rates may affect the Company’s financial position, results of operations, or cash flows. PGE utilizes derivative instruments to manage its exposure to commodity price risk and foreign exchange rate risk in order to reduce volatility in NVPC for its retail customers. Such derivative instruments, recorded at fair value on the condensed consolidated balance sheets, may include forwards, futures, swaps, and options contracts for electricity, natural gas, and foreign currency, with changes in fair value recorded in the condensed consolidated statements of income and comprehensive income. In accordance with ratemaking and cost recovery processes authorized by the OPUC, PGE recognizes a regulatory asset or liability to defer the gains and losses from derivative activity until settlement of the associated derivative instrument. The Company may designate certain derivative instruments as cash flow hedges or may use derivative instruments as economic hedges. PGE does not intend to engage in trading activities for non-retail purposes. PGE’s Assets and Liabilities from price risk management activities consist of the following (in millions):
(1) Total current derivative assets are included in Other current assets, and Total noncurrent derivative assets are included in Other noncurrent assets on the condensed consolidated balance sheets. (2) As of June 30, 2024 and December 31, 2023, no derivative assets or liabilities were designated as hedging instruments. PGE’s net volumes related to its Assets and Liabilities from price risk management activities resulting from its derivative transactions, which are expected to deliver or settle at various dates through 2035, were as follows (in millions):
PGE has elected to report positive and negative exposures resulting from derivative instruments pursuant to agreements that meet the definition of a master netting arrangement gross on the condensed consolidated balance sheets. In the case of default on, or termination of, any contract under the master netting arrangements, such agreements provide for the net settlement of all related contractual obligations with a given counterparty through a single payment. These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, receivables and payables arising from settled positions, and other forms of non-cash collateral, such as letters of credit. As of June 30, 2024, gross amounts included as Price risk management liabilities subject to master netting agreements were $29 million, comprised of $23 million for natural gas and $6 million for electricity, for which PGE has posted no collateral. As of December 31, 2023, gross amounts included as Price risk management liabilities subject to master netting agreements were $28 million, for which PGE had posted $1 million collateral. Of the gross amounts recognized as of December 31, 2023, $25 million was for natural gas and $3 million was for electricity. Net realized and unrealized losses (gains) on derivative transactions not designated as hedging instruments are classified in Revenues, net or Purchased power and fuel, as applicable, in the condensed consolidated statements of income and comprehensive income and were as follows (in millions):
Net unrealized and certain net realized losses/(gains) presented in the table above are offset within the condensed consolidated statements of income and comprehensive income by the effects of regulatory accounting. Of the net amounts recognized in Net income for the three-month periods ended June 30, 2024 and 2023, net gains of $5 million and net losses of $157 million, respectively, have been offset. Net gains of $54 million and net losses of $363 million have been offset for the six-month periods ended June 30, 2024 and 2023, respectively. Assuming no changes in market prices and interest rates, the following table indicates the year in which the net unrealized loss/(gain) recorded as of June 30, 2024 related to PGE’s derivative activities would become realized as a result of the settlement of the underlying derivative instrument (in millions):
PGE’s secured and unsecured debt is currently rated at investment grade by Moody’s Investors Service (Moody’s) and S&P Global Ratings (S&P). Should Moody’s or S&P reduce their rating on the Company’s unsecured debt to below investment grade, PGE could be subject to requests by certain wholesale counterparties to post additional performance assurance collateral, in the form of cash or letters of credit, based on total portfolio positions with each of those counterparties. Certain other counterparties would have the right to terminate their agreements with the Company. The aggregate fair value of derivative instruments with credit-risk-related contingent features that were in a liability position as of June 30, 2024 was $189 million, for which PGE has posted $56 million in collateral, consisting of $11 million of letters of credit and $45 million of cash. If the credit-risk-related contingent features underlying these agreements were triggered at June 30, 2024, the cash requirement to either post as collateral or settle the instruments immediately would have been $131 million. As of June 30, 2024, PGE had no cash collateral posted for derivative instruments with no credit-risk-related contingent features. Cash collateral for derivative instruments is classified as Margin deposits included in Other current assets on the Company’s condensed consolidated balance sheets. As of June 30, 2024, PGE held from counterparties $10 million in collateral, consisting of $5 million of letters of credit and $5 million of cash. The obligation to return cash collateral held for derivative instruments is included in Accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. PGE is exposed to credit risk in its commodity price risk management activities related to potential nonperformance by counterparties. Credit risk may be concentrated to the extent the Company’s counterparties have similar economic, industry or other characteristics and due to direct or indirect relationships among the counterparties. PGE manages the risk of counterparty default according to its credit policies by performing financial credit reviews, setting limits and monitoring exposures, and requiring collateral (in the form of cash, letters of credit, and guarantees) when needed. The Company also uses standardized enabling agreements and, in certain cases, master netting agreements, which allow for the netting of positive and negative exposures under multiple agreements with counterparties. See Note 4, Fair Value of Financial Instruments, for additional information concerning the determination of fair value for the Company’s Assets and Liabilities from price risk management activities.
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Earnings Per Share (Notes) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares outstanding and the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares consist of: i) employee stock purchase plan shares; ii) contingently issuable time-based and performance-based restricted stock units, along with associated dividend equivalent rights; and iii) shares issuable pursuant to the at the market offering program. Unvested performance-based restricted stock units and associated dividend equivalent rights are included in dilutive potential common shares only after the performance criteria have been met. For the three and six months ended June 30, 2024, unvested performance-based restricted stock units and related dividend equivalent rights of 513 thousand shares were excluded from the dilutive calculation because the performance goals had not been met, with 440 thousand shares excluded for the three and six months ended June 30, 2023. Net income is the same for both the basic and diluted earnings per share computations. The denominators of the basic and diluted earnings per share computations are as follows (in thousands):
* As of June 30, 2023, 292 thousand incremental shares were included in the calculation of diluted EPS related to the securities under the EFSA. There was no dilutive impact from the EFSA in 2024 as it was settled in July 2023.
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Equity (Notes) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | SHAREHOLDERS’ EQUITY The activity in equity during the three and six-month periods ended June 30, 2024 and 2023 was as follows (dollars in millions, except per share amounts):
At-the-Market Offering Program—On April 28, 2023, PGE entered into an equity distribution agreement under which it could sell up to $300 million of its common stock through at the market offering programs. In 2023, pursuant to the terms of the equity distribution agreement, PGE entered into separate forward sale agreements with forward counterparties. In March 2024, the Company issued 1,714,972 shares pursuant to the agreements and received net proceeds of $78 million. In 2024, PGE entered into additional forward sale agreements with forward counterparties, exhausting the $300 million facility. As of June 30, 2024, these additional agreements were outstanding. The Company could have physically settled the remaining amount by delivering 5,139,501 shares in exchange for cash of $218 million as of June 30, 2024. Any proceeds from the issuances of common stock will be used for general corporate purposes and investments in renewables and non-emitting dispatchable capacity.
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Contingencies (Notes) |
6 Months Ended |
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Jun. 30, 2024 | |
Contingencies [Abstract] | |
CONTINGENCIES | CONTINGENCIES PGE is subject to legal, regulatory, and environmental proceedings, investigations, and claims that arise from time to time in the ordinary course of its business. Contingencies are evaluated using the best information available at the time the condensed consolidated financial statements are prepared. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company may seek regulatory recovery of certain costs that are incurred in connection with such matters, although there can be no assurance that such recovery would be granted. Loss contingencies are accrued, and disclosed if material, when it is probable that an asset has been impaired or a liability incurred as of the financial statement date and the amount of the loss can be reasonably estimated. If a reasonable estimate of probable loss cannot be determined, a range of loss may be established, in which case the minimum amount in the range is accrued, unless some other amount within the range appears to be a better estimate. A loss contingency will also be disclosed when it is reasonably possible that an asset has been impaired, or a liability incurred, if the estimate or range of potential loss is material. If a probable or reasonably possible loss cannot be reasonably estimated, then PGE: i) discloses an estimate of such loss or the range of such loss, if the Company is able to determine such an estimate; or ii) discloses that an estimate cannot be made and the reasons why the estimate cannot be made. If an asset has been impaired or a liability incurred after the financial statement date, but prior to the issuance of the financial statements, the loss contingency is disclosed, if material, and the amount of any estimated loss is recorded in either the current or the subsequent reporting period, depending on the nature of the underlying event. PGE evaluates, on a quarterly basis, developments in such matters that could affect the amount of any accrual, as well as the likelihood of developments that would make a loss contingency both probable and reasonably estimable. The assessment as to whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable, often involves a series of complex judgments about future events. Management is often unable to estimate a reasonably possible loss, or a range of loss, particularly in cases in which: i) the damages sought are indeterminate or the basis for the damages claimed is not clear; ii) the proceedings are in the early stages; iii) discovery is not complete; iv) the matters involve novel or unsettled legal theories; v) significant facts are in dispute; vi) a large number of parties are represented (including circumstances in which it is uncertain how liability, if any, would be shared among multiple defendants); or vii) a wide range of potential outcomes exist. In such cases, there may be considerable uncertainty regarding the timing or ultimate resolution, including any possible loss, fine, penalty, or business impact. EPA Investigation of Portland Harbor An investigation by the United States Environmental Protection Agency (EPA) of a segment of the Willamette River known as Portland Harbor that began in 1997 revealed significant contamination of river sediments. The EPA subsequently included Portland Harbor on the National Priority List pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act as a federal Superfund site. PGE has been included among more than one hundred Potentially Responsible Parties (PRPs), as it historically owned or operated property near the river. A Portland Harbor site remedial investigation was completed pursuant to an agreement between the EPA and several PRPs known as the Lower Willamette Group (LWG), which did not include PGE. The LWG funded the remedial investigation and feasibility study and stated that it had incurred $115 million in investigation-related costs. The Company anticipates that such costs will ultimately be allocated to PRPs as a part of the allocation process for remediation costs of the EPA’s preferred remedy. The EPA finalized a feasibility study, along with the remedial investigation, and the results provided the framework for the EPA to determine a clean-up remedy for Portland Harbor that was documented in a Record of Decision (ROD) issued in 2017. The ROD outlined the EPA’s selected remediation plan for clean-up of Portland Harbor that had an undiscounted estimated total cost of $1.7 billion, comprised of $1.2 billion related to remediation construction costs and $0.5 billion related to long-term operation and maintenance costs. Remediation construction costs were estimated to be incurred over a 13-year period, with long-term operation and maintenance costs estimated to be incurred over a 30-year period from the start of construction. Stakeholders have raised concerns that the EPA’s cost estimates are understated, and PGE estimates undiscounted total remediation costs for Portland Harbor per the ROD could range from $1.9 billion to $3.5 billion. The EPA acknowledged the estimated costs were based on data that was outdated and that pre-remedial design sampling was necessary to gather updated baseline data to better refine the remedial design and estimated cost. A small group of PRPs performed pre-remedial design sampling to update baseline data and submitted the data in an updated evaluation report to the EPA for review. The evaluation report concluded that the conditions of Portland Harbor have improved substantially with the passage of time. In response, the EPA indicated that while it would use the data to inform implementation of the ROD, the EPA’s conclusions remained materially unchanged. With the completion of pre-remedial design sampling, Portland Harbor is now in the remedial design phase, which consists of additional technical information and data collection to be used to design the expected remedial actions. Certain PRPs, not including PGE, have entered into consent agreements to perform remedial design and the EPA has indicated it will take the initial lead to perform remedial design on the remaining areas. The Company anticipates that remedial design costs will ultimately be allocated to PRPs as a part of the allocation process for remediation costs of the EPA’s preferred remedy. The entirety of Portland Harbor continues under an active engineering design phase. PGE continues to participate in a voluntary process to determine an appropriate allocation of costs amongst the PRPs. In a letter dated June 28, 2024, the U.S. Department of Justice and the EPA indicated their expectation and objective is that the PRPs will resolve cleanup and response cost liabilities by participating in a single, overall Consent Decree as Settling Defendants with negotiations beginning in the fall of 2024 and concluding no later than March 2027. Although cost allocation activities are ongoing, significant uncertainties remain surrounding facts and circumstances that are integral to the determination of such an allocation percentage, including conclusion of remedial design, a final allocation methodology, and data with regard to property specific activities and history of ownership of sites within Portland Harbor that will inform the precise boundaries for clean-up. It is probable that PGE will share in a portion of the costs related to Portland Harbor. Based on the above facts and remaining uncertainties in the voluntary allocation process, PGE does not currently have sufficient information to reasonably estimate the amount, or range, of its potential liability or determine an allocation percentage that would represent PGE’s portion of the liability to clean-up Portland Harbor. However, the Company may obtain sufficient information, prior to the final determination of allocation percentages among PRPs, to develop a reasonable estimate, or range, of its potential liability that would require recording of the estimate, or low end of the range. The Company’s liability related to the cost of remediating Portland Harbor could be material to PGE’s financial position. In cases in which injuries to natural resources have occurred as a result of releases of hazardous substances, federal and state natural resource trustees may seek to recover for damages at such sites, which are referred to as Natural Resource Damages (NRD). The EPA does not manage NRD assessment activities but does provide claims information and coordination support to the NRD trustees. NRD assessment activities are typically conducted by a Council made up of the trustee entities for the site. The Portland Harbor NRD trustees consist of the National Oceanic and Atmospheric Administration, the U.S. Fish and Wildlife Service, the State, the Confederated Tribes of the Grand Ronde Community of Oregon, the Confederated Tribes of Siletz Indians, the Confederated Tribes of the Umatilla Indian Reservation, the Confederated Tribes of the Warm Springs Reservation of Oregon, and the Nez Perce Tribe. The NRD trustees may seek to negotiate legal settlements or take other legal actions against the parties responsible for the damages. Funds from such settlements must be used to restore injured resources and may also compensate the trustees for costs incurred in assessing the damages. PGE’s portion of NRD liabilities related to Portland Harbor will not have a material impact on its results of operations, financial position, or cash flows. The impact of costs related to EPA and NRD liabilities on the Company’s results of operations is mitigated by the Portland Harbor Environmental Remediation Account (PHERA) mechanism. As approved by the OPUC in 2017, the PHERA allows the Company to defer estimated liabilities and recover incurred environmental expenditures related to Portland Harbor through a combination of third-party proceeds, including but not limited to insurance recoveries, and, if necessary, through customer prices. The mechanism established annual prudency reviews of environmental expenditures and third-party proceeds. Annual expenditures in excess of $6 million, excluding expenses related to contingent liabilities, are subject to an annual earnings test and would be ineligible for recovery to the extent PGE’s actual regulated return on equity exceeds its return on equity as authorized by the OPUC in PGE’s most recent GRC. PGE’s results of operations may be impacted to the extent such expenditures are deemed imprudent by the OPUC or ineligible per the prescribed earnings test. The Company plans to seek recovery of any costs resulting from EPA’s determination of liability for Portland Harbor through application of the PHERA. At this time, PGE is not collecting any Portland Harbor cost from the PHERA through customer prices. Governmental Investigations In March, April, and May 2021, the Division of Enforcement of the Commodity Futures Trading Commission (CFTC), the Division of Enforcement of the SEC, and the Division of Enforcement of the FERC, respectively, informed the Company they are conducting investigations arising out of the energy trading losses the Company previously announced in August 2020. The Company is cooperating with the CFTC, the SEC, and the FERC. Management cannot predict the eventual scope or outcome of these matters. Colstrip-Related Litigation The Company has a 20% ownership interest in the Colstrip Units 3 and 4 coal-fired generating plant (Colstrip), which is located in the state of Montana and operated by one of the co-owners, Talen Montana, LLC (Talen). Various business disagreements have arisen amongst the co-owners regarding interpretation of the Ownership and Operation (O&O) Agreement and other matters. An arbitration process has been initiated to address such business disagreements and, along with other matters related to Colstrip, are summarized below. Arbitration—In March 2021, co-owner NorthWestern Corporation (NorthWestern) initiated arbitration against all other co-owners of Colstrip to determine whether co-owners representing 55% or more of the ownership shares can vote to close one or both units of Colstrip, or, alternatively, whether unanimous consent is required. The O&O Agreement among the parties states that any dispute shall be submitted for resolution to a single arbitrator with appropriate expertise. The parties had agreed to stay the arbitration through April 1, 2024 and are now in the process of reengaging in arbitration discussions. An arbitration date has not yet been scheduled. PGE cannot predict the ultimate outcome of the arbitration process. Richard Burnett; Colstrip Properties Inc., et al v. Talen Montana, LLC; PGE, et al.—In December 2020, the original claim was filed in the Montana Sixteenth Judicial District Court, Rosebud County, Cause No. CV-20-58. The plaintiffs allege they have suffered adverse effects from the defendants’ coal dust. In August 2021, the claim was amended to add PGE as a defendant. Plaintiffs are seeking economic damages, costs and disbursements, punitive damages, attorneys’ fees, and an injunction prohibiting defendants from allowing coal dust to blow onto plaintiffs’ properties, as determined by the Court. The trial date has been rescheduled for June 2, 2025. The Company is unable to predict the outcome or estimate a range of any possible loss in this matter. Westmoreland Mine Permits—Two lawsuits were commenced by the Montana Environmental Information Center, challenging certain permits relating to the operation of the Westmoreland Rosebud Mine, which provides coal to Colstrip. In the first, the Montana District Court for Rosebud County issued an order vacating a permit for one area of the mine. This case was appealed and on November 22, 2023, the Supreme Court of Montana reinstated the Montana District Court’s determination vacating the permit and affirming the lower court order to return to the Board of Environmental Review for additional permit review considerations. In the second, the Montana Federal District Court issued findings and recommended that a decision approving expansion of the mine into a new area should be vacated, but recommended the decision not take effect for 365 days from the date of a final order. On November 24, 2023, the Ninth Circuit Court of Appeals dismissed the appeal by Westmoreland for lack of appellate jurisdiction and noted that the appropriate venue to raise issues will be the U.S. Office of Surface Mining during the remand process. PGE is not a party to either of these proceedings, but is continuing to monitor the progress of both lawsuits and assess the impact, if any, of the proceedings on Westmoreland’s ability to meet its contractual coal supply obligations. Other Matters PGE is subject to other regulatory, environmental, and legal proceedings, investigations, and claims that arise from time to time in the ordinary course of business that may result in judgments against the Company. Although management currently believes that resolution of such known matters, individually and in the aggregate, will not have a material impact on its financial position, results of operations, or cash flows, these matters are subject to inherent uncertainties, and management’s view of these matters may change in the future.
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Guarantees (Notes) |
6 Months Ended |
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Jun. 30, 2024 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES PGE enters into financial agreements for, and purchase and sale agreements involving physical delivery of, both power and natural gas that include indemnification provisions relating to certain claims or liabilities that may arise relating to the transactions contemplated by these agreements. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. PGE periodically evaluates the likelihood of incurring costs under such indemnities based on the Company’s historical experience and the evaluation of the specific indemnities. As of June 30, 2024, management believes the likelihood is remote that PGE would be required to perform under such indemnification provisions or otherwise incur any significant losses with respect to such indemnities. The Company has not recorded any liability on the condensed consolidated balance sheets with respect to these indemnities.
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Income tax Income tax (Notes) |
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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:
* 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 2034. Carryforwards Federal tax credit carryforwards as of June 30, 2024 and December 31, 2023 were $94 million and $73 million, respectively. These credits primarily consist of PTCs, which will expire at various dates through 2044. PGE included anticipated proceeds from the sale of tax credits in determining the need for a valuation allowance. PGE believes that it is more likely than not that its deferred income tax assets as of June 30, 2024 will be realized, however a valuation allowance has been recorded for the expected discount on the sale of tax credits. The valuation allowance as of June 30, 2024 was $1 million and was deferred as a regulatory asset. As of December 31, 2023, no material valuation allowance was recorded. As of June 30, 2024, and December 31, 2023, PGE had no material unrecognized tax benefits.
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Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Basis of Presentation [Abstract] | |
Consolidation, Policy [Policy Text Block] | These condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such regulations |
Inventory, Policy [Policy Text Block] | PGE’s inventories, which are recorded at average cost, consist primarily of materials and supplies for use in operations, maintenance, and capital activities, as well as fuel, which includes natural gas, coal, and oil, for use in the Company’s generating plants. Periodically, PGE assesses whether inventories are recorded at the lower of average cost or net realizable value. |
Debt, Policy [Policy Text Block] | PGE typically classifies borrowings under the revolving credit facility and outstanding commercial paper as Short-term debt on the condensed consolidated balance sheets. Long-term debt is recorded at amortized cost in PGE’s condensed consolidated balance sheets. The value of the Company’s FMBs and Pollution Control Revenue Bonds is classified as a Level 2 fair value measurement.
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Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets, liabilities, and their placement within the fair value hierarchy. Assets measured at fair value using net asset value (NAV) as a practical expedient are not categorized in the fair value hierarchy. These assets are listed in the totals of the fair value hierarchy to permit the reconciliation to amounts presented in the financial statements. Changes to market liquidity conditions, the availability of observable inputs, or changes in the economic structure of a security marketplace may require transfer of the securities between levels.
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Allocation of Financial Asset to Hierarchy Levels [Policy Text Block] | Assets held in the Nuclear decommissioning trust (NDT), Non-qualified benefit plan (NQBP), and Paid Leave Oregon trusts are recorded at fair value in PGE’s condensed consolidated balance sheets and invested in securities that are exposed to interest rate, credit, and market volatility risks. These assets are classified within Level 1, 2, or 3 based on the following factors: Debt securities—PGE invests in highly-liquid United States Treasury securities to support the investment objectives of the trusts. These domestic government securities are classified as Level 1 in the fair value hierarchy due to the availability of quoted prices for identical assets in an active market as of the measurement date. Assets classified as Level 2 in the fair value hierarchy include domestic government debt securities, such as municipal debt, and corporate credit securities. Prices are determined by evaluating pricing data such as broker quotes for similar securities and adjusted for observable differences. Significant inputs used in valuation models generally include benchmark yields and issuer spreads. The external credit rating, coupon rate, and maturity of each security are considered in the valuation, as applicable. Money market funds—PGE invests in money market funds that seek to maintain a stable net asset value. These funds invest in high-quality, short-term, diversified money market instruments, short-term treasury bills, federal agency securities, certificates of deposits, and commercial paper. The Company believes the redemption value of these funds is likely to be the fair value, which is represented by the net asset value. Redemption is permitted daily without written notice. The NQBP trust is invested in exchange-traded government money market funds and is classified as Level 1 in the fair value hierarchy due to the availability of quoted prices in published exchanges such as Nasdaq and the NYSE. The money market fund in the NDT is valued at NAV as a practical expedient and is not included in the fair value hierarchy. Assets and liabilities from price risk management activities, recorded at fair value in PGE’s condensed consolidated balance sheets, consist of derivative instruments entered into by the Company to manage its risk exposure to commodity price and foreign currency exchange rates and reduce volatility in net variable power costs (NVPC) for the Company’s retail customers. For additional information regarding these assets and liabilities, see Note 5, Risk Management. For those assets and liabilities from price risk management activities classified as Level 2, fair value is derived using present value formulas that utilize inputs such as forward commodity prices and interest rates. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include commodity forwards, futures, and swaps. Assets and liabilities from price risk management activities classified as Level 3 consist of longer-term commodity forwards, futures, swaps, and options for which fair value is derived using one or more significant inputs that are not observable for the entire term of the instrument.
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Fair Value Transfer, Policy [Policy Text Block] | Transfers out of Level 3 occur when the significant inputs become more observable, such as when the time between the valuation date and the delivery term of a transaction becomes shorter. |
Derivatives, Policy [Policy Text Block] | PGE utilizes derivative instruments to manage its exposure to commodity price risk and foreign exchange rate risk in order to reduce volatility in NVPC for its retail customers. Such derivative instruments, recorded at fair value on the condensed consolidated balance sheets, may include forwards, futures, swaps, and options contracts for electricity, natural gas, and foreign currency, with changes in fair value recorded in the condensed consolidated statements of income and comprehensive income. In accordance with ratemaking and cost recovery processes authorized by the OPUC, PGE recognizes a regulatory asset or liability to defer the gains and losses from derivative activity until settlement of the associated derivative instrument. The Company may designate certain derivative instruments as cash flow hedges or may use derivative instruments as economic hedges. PGE does not intend to engage in trading activities for non-retail purposes.
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Commitments and Contingencies, Policy [Policy Text Block] | PGE is subject to legal, regulatory, and environmental proceedings, investigations, and claims that arise from time to time in the ordinary course of its business. Contingencies are evaluated using the best information available at the time the condensed consolidated financial statements are prepared. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company may seek regulatory recovery of certain costs that are incurred in connection with such matters, although there can be no assurance that such recovery would be granted. Loss contingencies are accrued, and disclosed if material, when it is probable that an asset has been impaired or a liability incurred as of the financial statement date and the amount of the loss can be reasonably estimated. If a reasonable estimate of probable loss cannot be determined, a range of loss may be established, in which case the minimum amount in the range is accrued, unless some other amount within the range appears to be a better estimate. A loss contingency will also be disclosed when it is reasonably possible that an asset has been impaired, or a liability incurred, if the estimate or range of potential loss is material. If a probable or reasonably possible loss cannot be reasonably estimated, then PGE: i) discloses an estimate of such loss or the range of such loss, if the Company is able to determine such an estimate; or ii) discloses that an estimate cannot be made and the reasons why the estimate cannot be made. If an asset has been impaired or a liability incurred after the financial statement date, but prior to the issuance of the financial statements, the loss contingency is disclosed, if material, and the amount of any estimated loss is recorded in either the current or the subsequent reporting period, depending on the nature of the underlying event. PGE evaluates, on a quarterly basis, developments in such matters that could affect the amount of any accrual, as well as the likelihood of developments that would make a loss contingency both probable and reasonably estimable. The assessment as to whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable, often involves a series of complex judgments about future events. Management is often unable to estimate a reasonably possible loss, or a range of loss, particularly in cases in which: i) the damages sought are indeterminate or the basis for the damages claimed is not clear; ii) the proceedings are in the early stages; iii) discovery is not complete; iv) the matters involve novel or unsettled legal theories; v) significant facts are in dispute; vi) a large number of parties are represented (including circumstances in which it is uncertain how liability, if any, would be shared among multiple defendants); or vii) a wide range of potential outcomes exist. In such cases, there may be considerable uncertainty regarding the timing or ultimate resolution, including any possible loss, fine, penalty, or business impact.
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Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnifications cannot be reasonably estimated. PGE periodically evaluates the likelihood of incurring costs under such indemnities based on the Company’s historical experience and the evaluation of the specific indemnities. |
Revenue Recognition (Tables) |
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Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | The following table presents PGE’s revenue, disaggregated by customer type (in millions):
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Balance Sheet Components (Tables) |
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Balance Sheet Components [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses [Text Block] | The following summarizes activity during 2024 in the allowance for credit losses (in millions):
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Schedule of Other Current Assets [Table Text Block] | Other current assets consist of the following (in millions):
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Schedule of Public Utility Property, Plant, and Equipment [Table Text Block] | Electric utility plant, net consists of the following (in millions):
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Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory assets and liabilities consist of the following (in millions):
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Other Liabilities Disclosure [Text Block] | Accrued expenses and other current liabilities consist of the following (in millions):
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Pension and Other Postretirement Benefits Disclosure [Text Block] | Components of net periodic benefit cost under the defined benefit pension plan are as follows (in millions):
* The net expense portion of non-service cost components are included in Miscellaneous income, net within Other income on the Company’s condensed consolidated statements of income and comprehensive income.
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Fair Value of Financial Instruments (Tables) |
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Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company’s financial assets and liabilities whose values were recognized at fair value in the Company’s condensed consolidated balance sheets are as follows by level within the fair value hierarchy (in millions):
(1)Activities are subject to regulation, with certain gains and losses deferred pursuant to regulatory accounting and included in Regulatory assets or Regulatory liabilities as appropriate. (2)Assets are measured at NAV as a practical expedient and not subject to hierarchy level classification disclosure. (3)Excludes insurance policies of $32 million, which are recorded at cash surrender value. (4)For further information, see Note 5, Risk Management.
(1)Activities are subject to regulation, with certain gains and losses deferred pursuant to regulatory accounting and included in Regulatory assets or Regulatory liabilities as appropriate. (2)Assets are measured at NAV as a practical expedient and not subject to hierarchy level classification disclosure. (3)Excludes insurance policies of $30 million, which are recorded at cash surrender value. (4)For further information, see Note 5, Risk Management.
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Fair Value Option, Disclosures [Table Text Block] | Quantitative information regarding the significant, unobservable inputs used in the measurement of Level 3 assets and liabilities from price risk management activities is presented below:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Changes in the fair value of net liabilities from price risk management activities (net of assets from price risk management activities) classified as Level 3 in the fair value hierarchy were as follows (in millions):
* Both realized and unrealized losses/(gains), of which the unrealized portions are offset by the effects of regulatory accounting until settlement of the underlying transactions, are recorded in Revenues, net or Purchased power and fuel expense in the condensed consolidated statements of income and comprehensive income. Includes $2 million net realized gains for the three months ended June 30, 2024 and no net realized gains or losses for the three months ended June 30, 2023. For the six-month periods ended June 30, 2024 and 2023, includes $1 million in net realized gains and $3 million in net realized losses, respectively.
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Price Risk Management (Tables) |
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Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | PGE’s Assets and Liabilities from price risk management activities consist of the following (in millions):
(1) Total current derivative assets are included in Other current assets, and Total noncurrent derivative assets are included in Other noncurrent assets on the condensed consolidated balance sheets. (2) As of June 30, 2024 and December 31, 2023, no derivative assets or liabilities were designated as hedging instruments.
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Schedule of Derivative Instruments [Table Text Block] | PGE’s net volumes related to its Assets and Liabilities from price risk management activities resulting from its derivative transactions, which are expected to deliver or settle at various dates through 2035, were as follows (in millions):
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Derivatives Not Designated as Hedging Instruments [Table Text Block] | Net realized and unrealized losses (gains) on derivative transactions not designated as hedging instruments are classified in Revenues, net or Purchased power and fuel, as applicable, in the condensed consolidated statements of income and comprehensive income and were as follows (in millions):
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Schedule of Risk Derivatives [Table Text Block] | Assuming no changes in market prices and interest rates, the following table indicates the year in which the net unrealized loss/(gain) recorded as of June 30, 2024 related to PGE’s derivative activities would become realized as a result of the settlement of the underlying derivative instrument (in millions):
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Earnings Per Share (Tables) |
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Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The denominators of the basic and diluted earnings per share computations are as follows (in thousands):
* As of June 30, 2023, 292 thousand incremental shares were included in the calculation of diluted EPS related to the securities under the EFSA. There was no dilutive impact from the EFSA in 2024 as it was settled in July 2023.
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Equity (Tables) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | The activity in equity during the three and six-month periods ended June 30, 2024 and 2023 was as follows (dollars in millions, except per share amounts):
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Income tax Income tax (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The significant differences between the Federal statutory tax rate and PGE’s effective tax rate are reflected in the following table:
* 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 2034.
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Basis of Presentation (Details) retail_customers in Thousands, mi² in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024
USD ($)
mi²
retail_customers
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Jun. 30, 2023
USD ($)
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Jun. 30, 2024
USD ($)
mi²
retail_customers
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Jun. 30, 2023
USD ($)
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Basis of Presentation [Abstract] | ||||
Service Area Sq Miles | mi² | 4 | 4 | ||
Incorporated Cities | 51 | 51 | ||
Number of Retail Customers | retail_customers | 944 | 944 | ||
Increase (Decrease) in Other Accounts Payable and Accrued Liabilities | $ 0 | $ (135) | ||
Investment Income, Interest | $ 5 | $ 3 | $ 9 | $ 11 |
Revenue Recognition (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Disaggregation of Revenue [Line Items] | ||||
Subtotal | $ 639 | $ 569 | $ 1,389 | $ 1,216 |
Alternative revenue programs, net of amortization | (3) | 2 | (14) | 5 |
Other Cost of Operating Revenue | 4 | |||
Other accrued (deferred) revenues, net | (4) | (5) | (3) | |
Total retail revenues | 640 | 567 | 1,380 | 1,218 |
Wholesale revenues | 99 | 62 | 275 | 150 |
Other operating revenue | 19 | 19 | 32 | 28 |
Total revenues | 758 | 648 | 1,687 | 1,396 |
Gain on Derivative Instruments, Pretax | 32 | 22 | 120 | 56 |
Residential [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Subtotal | 307 | 279 | 722 | 641 |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Subtotal | 219 | 196 | 446 | 393 |
Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Subtotal | 104 | 87 | 206 | 169 |
Direct Access customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Subtotal | $ 9 | $ 7 | $ 15 | $ 13 |
Balance Sheet Components Allowance for Credit Losses (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
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Jun. 30, 2024 |
Jun. 30, 2024 |
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Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Accounts Receivable, Allowance for Credit Loss | $ 11 | $ 9 |
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 2 | 5 |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (4) | (6) |
Accounts Receivable, Allowance for Credit Loss, Recovery | 2 | 3 |
Accounts Receivable, Allowance for Credit Loss | $ 11 | $ 11 |
Balance Sheet Components Other Current Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
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Other Current Assets [Line Items] | ||
Prepaid expenses | $ 83 | $ 68 |
Assets from price risk management activities | 37 | 22 |
Margin deposits | 55 | 92 |
Other current assets | $ 175 | $ 182 |
Balance Sheet Components Electric Utility Plant, Net (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
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Property, Plant and Equipment [Line Items] | ||
Electric utility plant | $ 14,126 | $ 13,329 |
Construction work-in-progress | 690 | 974 |
Total cost | 14,816 | 14,303 |
Less: accumulated depreciation and amortization | (4,943) | (4,757) |
Electric utility plant, net | $ 9,873 | $ 9,546 |
Balance Sheet Components Other Current Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
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Accrued employee compensation and benefits | $ 56 | $ 74 |
Accrued taxes payable | 28 | 30 |
Accrued interest payable | 48 | 40 |
Accrued dividends payable | 53 | 51 |
Regulatory liabilities—current | 55 | 48 |
Other | 105 | 112 |
Total accrued expenses and other current liabilities | $ 345 | $ 355 |
Balance Sheet Components Pension and Other Postretirement Benefits (Details) - Pension Plan [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3 | $ 3 | $ 5 | $ 6 |
Interest cost | 8 | 9 | 17 | 18 |
Expected return on plan assets | (10) | (11) | (20) | (22) |
Net periodic benefit cost | $ 1 | $ 1 | $ 2 | $ 2 |
Fair Value of Financial Instruments Unobservable Input Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance as of the beginning of the period | $ 43 | $ 28 | $ 45 | $ 32 |
Net realized and unrealized (gains)/losses | 2 | 110 | 0 | 99 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers into Level 3 | 0 | 7 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | |||
Transfers out of Level 3 to Level 2 | 0 | |||
Balance as of the end of the period | 45 | 138 | $ 45 | $ 138 |
Gain (Loss) from Price Risk Management Activity | $ 2 | $ 0 |
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash Surrender Value, Fair Value Disclosure | $ 32 | $ 30 |
Long-term Debt | 4,433 | 3,985 |
Unamortized Debt Issuance Expense | 15 | 14 |
Long-term Debt, Fair Value | $ 3,457 | $ 3,705 |
Risk Management Fair values of price risk management assets and liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Current Assets, Commodity Contracts: | ||
Electricity | $ 24 | $ 13 |
Natural gas | 13 | 9 |
Total current derivative assets | 37 | 22 |
Noncurrent Assets, Commodity Contracts: [Abstract] | ||
Commodity Contract Asset, Noncurrent, Electricity | 8 | 9 |
Commodity Contract Asset, Noncurrent, Natural Gas | 2 | 2 |
Derivative Asset, Noncurrent | 10 | 11 |
Total derivative assets | 47 | 33 |
Current Liabilities, Commodity Contracts: [Abstract] | ||
Electricity | 52 | 51 |
Natural gas | 90 | 113 |
Total current derivative liabilities | 142 | 164 |
Noncurrent Liabilities, Commodity Contracts: [Abstract] | ||
Electricity | 16 | 22 |
Natural gas | 42 | 53 |
Total noncurrent derivative liabilities | 58 | 75 |
Total derivative liabilities | $ 200 | $ 239 |
Risk Management Net volumes related to price risk management activities (Details) MWh in Millions, MMBTU in Millions, $ in Millions |
Jun. 30, 2024
CAD ($)
MWh
MMBTU
|
Dec. 31, 2023
CAD ($)
MMBTU
MWh
|
---|---|---|
Commodity contracts: | ||
Electricity | MWh | 5 | 3 |
Natural gas | MMBTU | 193 | 213 |
Foreign currency | $ | $ 25 | $ 20 |
Risk Management Net realized and unrealized gains and losses on derivative transactions (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Commodity contracts: | ||||
Electricity | $ (11) | $ 88 | $ (30) | $ 53 |
Natural Gas | $ 6 | $ 65 | $ 20 | $ 197 |
Risk Management Future Year Net Unrealized Gain/Loss Recorded at Balance Sheet Date Expected to Become Realized (Details) $ in Millions |
Jun. 30, 2024
USD ($)
|
---|---|
Electricity [Member] | |
Commodity contracts: | |
2022 | $ 19 |
2023 | 18 |
2024 | (1) |
2025 | (1) |
2026 | 0 |
Thereafter | 1 |
Total | 36 |
Natural Gas [Member] | |
Commodity contracts: | |
2022 | 45 |
2023 | 46 |
2024 | (24) |
2025 | (2) |
2026 | 0 |
Thereafter | 0 |
Total | 117 |
Net Unrealized Loss/(gain)[Member] | |
Commodity contracts: | |
2022 | 64 |
2023 | 64 |
2024 | (23) |
2025 | (1) |
2026 | 0 |
Thereafter | 1 |
Total | $ 153 |
Risk Management (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Net gain or (loss) recognized in the statement of income offset by regulatory accounting | $ 5 | $ 157 | ||
Derivative, Net Liability Position, Aggregate Fair Value | 189 | $ 189 | ||
Collateral Already Posted, Aggregate Fair Value | 56 | 56 | ||
Collateral cash requirement | 131 | 131 | ||
Purchased power and fuel | 275 | $ 220 | 680 | $ 524 |
Letters of Credit Outstanding, Amount | 86 | 86 | ||
Derivative, Collateral, Right to Reclaim Cash | 45 | 45 | ||
Off-Balance-Sheet, Credit Loss, Liability | 11 | 11 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 10 | $ 10 | ||
Credit Risk Contract | ||||
Net gain or (loss) recognized in the statement of income offset by regulatory accounting | $ 0 |
Earnings Per Share Components of Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||||
Weighted Average Number of Shares Outstanding, Basic | 103,034 | 97,087 | 102,167 | 94,478 |
Dilutive effect of potential common shares | 198 | 543 | 171 | 472 |
Weighted Average Number of Shares Outstanding, Diluted | 103,232 | 97,630 | 102,338 | 94,950 |
Earnings Per Share Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 513 | 440 | 513 | 440 |
Contingencies (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
party
| |
Loss Contingencies [Line Items] | |
Site Contingency, Names of Other Potentially Responsible Parties | party | 100 |
Litigation Settlement, Expense | $ 115 |
Loss Contingency, Estimate of Possible Loss | 1,700 |
Loss Contingency, Damages Sought, Value | 1,200 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 500 |
Environmental Remediation Expense | 6 |
lower range of costs | 1,900 |
upper range of costs | $ 3,500 |
Income tax Effective Income Tax Rate Reconcilitation (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||||
Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Federal tax credits | (18.50%) | (11.20%) | (17.10%) | (10.00%) |
State and local taxes, net of federal tax benefit | 9.20% | 8.30% | 9.10% | 8.80% |
Flow through depreciation and cost basis differences | (0.70%) | (0.60%) | (0.60%) | 0.50% |
Excess deferred tax amortization | (2.90%) | (3.80%) | (2.70%) | (3.70%) |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 0.80% | 7.10% | 0.30% | 0.90% |
Effective tax rate | 8.90% | 20.80% | 10.00% | 17.50% |
Income tax Income tax (Details) - USD ($) $ in Millions |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 94 | $ 73 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 1 |
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