Core Viewpoint - The article highlights Portland General Electric (POR) as a strong value stock, supported by its favorable valuation metrics and earnings outlook [4][8]. Valuation Metrics - POR has a P/E ratio of 12.86, which is lower than the industry average of 14.42. Its Forward P/E has fluctuated between 12.04 and 15.41 over the past year, with a median of 13.05 [4]. - The stock's P/B ratio stands at 1.22, significantly lower than the industry's average of 2.66. Over the past year, POR's P/B has ranged from 1.13 to 1.44, with a median of 1.21 [5]. - POR's P/S ratio is 1.34, compared to the industry average of 2.36, indicating a more favorable valuation based on sales [6]. - The P/CF ratio for POR is 5.69, which is substantially lower than the industry's average of 12.63. This ratio has varied between 5.28 and 6.49 over the past year, with a median of 5.71 [7]. Investment Outlook - The combination of POR's strong valuation metrics and positive earnings outlook suggests that the stock is currently undervalued, making it an attractive option for value investors [8].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a Free Two-Week Trial for potential investors to explore top ideas within exclusive income-focused portfolios [1] Group 2 - There is a potential for initiating a beneficial Long position in POR through stock purchases or call options within the next 72 hours [2] - The article expresses the author's own opinions and does not involve compensation from any mentioned companies [2] Group 3 - The article is intended for informational purposes and does not constitute financial advice, encouraging readers to perform due diligence [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [4]

Core Insights - Portland General Electric (PGE) has completed three new utility-scale battery energy storage systems, adding 475 megawatts (MW) and over 1.9 gigawatt hours (GWh) of dispatchable capacity to serve the Portland metro area [1][5] - The new facilities can power approximately 300,000 homes for four hours during peak demand or when power is limited [2] - These battery systems enhance PGE's ability to respond to sudden changes in the grid, providing more stable and reliable power at the lowest possible cost [3] Company Overview - PGE serves over 950,000 customers in an area of 1.9 million Oregonians and has been operational since 1889, focusing on safe, affordable, reliable, and increasingly clean electricity [6] - PGE aims to reduce emissions from its retail power supply by 80% by 2030 and 100% by 2040, and has the No. 1 voluntary renewable energy program in the country [6] - In 2024, PGE employees and the PGE Foundation donated $5.5 million and volunteered nearly 23,000 hours to over 480 nonprofit organizations [6] Project Details - The three new facilities include Seaside (200 MW), Sundial (200 MW), and Constable (75 MW), strategically located at key substations [7] - The facilities were developed through PGE's 2021 All-Source Request for Proposals (RFP) process, with Eolian, L.P. being a key developer [4][7] - The completion of these facilities brings PGE's total large-scale battery storage capacity to 492 MW, including the previously completed 17 MW Coffee Creek Battery Storage system [5]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported GAAP net income of $62 million or $0.56 per diluted share, compared to $72 million or $0.69 per diluted share in Q2 2024 [15] - Non-GAAP net income for Q2 2025 was $73 million or $0.66 per share, down from $72 million or $0.69 per share in the same quarter last year [15][16] - Total load increased by 4.9% overall and 6.1% weather adjusted compared to Q2 2024 [18] Business Line Data and Key Metrics Changes - Industrial load, particularly from data centers, saw a significant increase of 16.5% on a nominal and weather-adjusted basis [18] - Residential load decreased by 2.3% quarter over quarter but increased by 1% when weather adjusted [18] - Commercial load increased slightly by 0.3% overall or 0.7% weather adjusted [18] Market Data and Key Metrics Changes - Sustained growth from data center and high-tech customers was reported, with over 16% growth compared to the same quarter last year [11] - The Oregon legislature passed the Power Act, which enhances regulatory flexibility and supports growth in the data center sector [12] Company Strategy and Development Direction - The company is focused on five strategic priorities: investing in clean energy, keeping customer prices low, supporting data center growth, reducing operational risks, and promoting an investable energy future [7][8] - A proposed corporate structure update aims to reduce investment costs and improve regulatory predictability [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a solid performance for the year, reaffirming 2025 adjusted earnings guidance of $3.13 to $3.33 per diluted share [29] - The company is committed to safe, reliable, and efficient operations while advancing strategic priorities [29] Other Important Information - Total liquidity at the end of Q2 was $980 million, with credit ratings remaining stable [27] - The company plans to issue a 2025 RFP in the coming weeks, anticipating a final shortlist in 2026 [25][26] Q&A Session Summary Question: How does the MOU inform the path for the seaside and distribution recovery proceedings? - Management indicated that the MOU allows for better understanding and shared outcomes before entering a rate review proceeding, leading to certainty and predictability [35][36] Question: Can you discuss the business transformation efforts and their costs? - Management confirmed that business transformation costs will continue into next year, with benefits expected to materialize later this year and into 2026 [42][43] Question: How do you see ROEs trending until the next base rates? - Management expects to maintain the current ROE range despite the timing of the next base rate case, supported by cost management actions [64] Question: What impact will the industrial demand growth have on power costs? - Management noted that long-term contracts with key customers will help reduce power cost pressures and improve financing for infrastructure investments [120][121] Question: What is the anticipated timing for the next rate case? - The MOU specifies that the earliest filing for the next general rate review would occur after Q2 2026 [125]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported GAAP net income of $62 million or $0.56 per diluted share, compared to GAAP net income of $72 million or $0.69 per diluted share in Q2 2024 [15][16] - Non-GAAP net income for Q2 2025 was $73 million or $0.66 per share, reflecting a decrease from the previous year [15][16] - Total load increased by 4.9% overall and 6.1% weather adjusted compared to Q2 2024 [18][20] Business Line Data and Key Metrics Changes - Industrial load, particularly from data centers, saw a significant increase of 16.5% on a nominal and weather-adjusted basis [20] - Residential load decreased by 2.3% quarter over quarter but increased by 1% when weather adjusted [18] - Commercial load increased slightly by 0.3% overall or 0.7% weather adjusted [18] Market Data and Key Metrics Changes - Sustained growth from data center and high-tech customers was noted, with over 16% growth compared to the same quarter last year [10] - The Oregon legislature passed the Power Act, which enhances regulatory flexibility and supports growth in the data center sector [12] Company Strategy and Development Direction - The company is focused on five strategic priorities: investing in clean energy, keeping customer prices low, supporting data center growth, reducing operational risks, and promoting an investable energy future [6][7] - A proposed corporate structure update aims to reduce investment costs and improve regulatory clarity [13][14] - The company plans to file for a holding company to enhance flexibility and efficiency in financing [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a solid performance for the year, reaffirming adjusted earnings guidance of $3.13 to $3.33 per diluted share [30] - The company anticipates continued demand growth from industrial customers, underpinning long-term growth expectations of 3% through 2029 [20] - Management highlighted the importance of tax credits in reducing clean energy costs and maintaining customer affordability [8][102] Other Important Information - Total liquidity at the end of Q2 was $980 million, with credit ratings remaining stable [27] - The company is focused on cost management and optimization to reduce overall expenses [29] Q&A Session Summary Question: How does the MOU inform the path for the seaside and distribution recovery proceedings? - Management indicated that the MOU allows for better understanding and shared outcomes before entering a rate review proceeding, aiming for predictability and value [34][36] Question: What are the dynamics between the 2023 and 2025 RFPs? - Management noted that the repricing of the 2023 RFP will open opportunities for bidders and aims to drive certainty in project execution [37][40] Question: Will business transformation costs continue into next year? - Management confirmed that costs related to business transformation will persist into next year, with benefits expected to materialize later [41][42] Question: How will the Fair Energy Act impact rate timing? - Management explained that the Fair Energy Act allows for multi-year rate making, aligning customer prices with less challenging months [46][48] Question: How will industrial demand growth affect power costs? - Management stated that long-term contracts with key customers will help stabilize power costs and reduce pressures on all customers [112][114]

Investor Presentation PORTLAND GENERAL ELECTRIC July 25, 2025 Cautionary statement Portland General Electric investors.portlandgeneral.com 121 SW Salmon Street Suite 1WTC0506 Portland, OR 97204 Nick White (503) 464-8073 Nicholas.White@pgn.com Sydnie Hinds (503) 464-7111 Sydnie.Hinds@pgn.com Information Current as of July 25, 2025 Except as expressly noted, the information in this presentation is current as of July 25, 2025 – the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended ...

[Executive Summary & Q2 2025 Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Financial%20Highlights) PGE reported Q2 2025 GAAP net income of $62 million and non-GAAP net income of $73 million, reflecting solid operational execution and significant industrial load growth [Q2 2025 Financial Performance (GAAP & Non-GAAP)](index=1&type=section&id=Q2%202025%20Financial%20Performance%20(GAAP%20%26%20Non-GAAP)) For the second quarter of 2025, Portland General Electric reported GAAP net income of $62 million ($0.56 per diluted share) and non-GAAP net income of $73 million ($0.66 per diluted share), adjusted for business transformation expenses. This compares to GAAP net income of $72 million ($0.69 per diluted share) in Q2 2024. Total revenues increased due to demand growth, partially offset by lower average prices, while various operating and non-operating expenses also rose Q2 2025 Financial Performance (GAAP & Non-GAAP) | Metric | Q2 2025 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (GAAP) | | :---------------------- | :------------- | :----------------- | :------------- | | Net Income | $62 million | $73 million | $72 million | | Diluted EPS | $0.56 | $0.66 | $0.69 | - Total revenues increased due to continued demand growth from semiconductor manufacturing and technology infrastructure customers, partially offset by lower average price of deliveries from changing customer mix[3](index=3&type=chunk) - Operating expenses, including purchased power and fuel, operating and maintenance (due to wildfire mitigation, vegetation management, business transformation), depreciation and amortization, and interest expense, all increased[3](index=3&type=chunk) [CEO Commentary & Operational Overview](index=1&type=section&id=CEO%20Commentary%20%26%20Operational%20Overview) CEO Maria Pope highlighted Q2 2025 as a period of solid execution, focusing on safe and reliable customer service, stakeholder engagement, efficiency, and corporate structure updates to reduce costs. The quarter saw significant industrial load growth, particularly from data center customers - Maria Pope, President and CEO, stated, "The second quarter was a period of execution and solid progress at Portland General Electric. We are focused on safely and reliably serving customers, engaging with stakeholders, driving efficiencies and updating our corporate structure to lower costs and deliver results"[3](index=3&type=chunk) - Second quarter financial results reflect **significant demand growth from data center customers**, driving **16.5% industrial load growth quarter-over-quarter**[6](index=6&type=chunk) [Company & Regulatory Updates](index=1&type=section&id=Company%20%26%20Regulatory%20Updates) PGE is pursuing a corporate structure reorganization for financial flexibility, filing for cost recovery on key projects, refreshing its 2023 RFP, and announcing a quarterly dividend [Corporate Structure Reorganization](index=1&type=section&id=Corporate%20Structure%20Reorganization) PGE is seeking Oregon Public Utilities Commission (OPUC) approval for a holding company reorganization. This structure aims to enhance financial flexibility, support new transmission asset construction, improve reliability planning, and foster economic development by placing a non-operating corporate entity over the existing structure and forming a subsidiary for transmission assets - PGE is submitting a formal application to the OPUC for approval of a holding company reorganization[4](index=4&type=chunk) - The reorganization intends to provide benefits to customers and shareholders by taking advantage of financial flexibility, and to support construction of new transmission assets, reliability planning, and economic development[4](index=4&type=chunk) [Regulatory Filings & Approvals](index=1&type=section&id=Regulatory%20Filings%20%26%20Approvals) PGE has filed requests with the OPUC for cost recovery related to its Distribution System Plan (DSP), seeking a $72 million annualized revenue increase effective April 1, 2026, and for the Seaside Battery Energy Storage System, requesting a $46 million annualized increase effective October 31, 2025. A memorandum of understanding has been established with intervenors to define the scope of these recovery mechanisms - PGE is submitting a request to the OPUC for recovery of costs associated with PGE's Distribution System Plan (DSP), including an **annualized revenue requirement increase of $72 million**, with a proposed rate effective date of April 1, 2026[7](index=7&type=chunk) - PGE submitted a request for recovery of the revenue requirement associated with the Seaside Battery Energy Storage System (Seaside), including an **annualized revenue requirement increase of $46 million**, with a proposed rate effective date of October 31, 2025[8](index=8&type=chunk) - PGE entered into a memorandum of understanding with intervenors, which establishes the scope of recovery mechanisms for both Seaside and costs associated with PGE's DSP[9](index=9&type=chunk) [2023 Request for Proposals (RFP)](index=2&type=section&id=2023%20Request%20for%20Proposals%20(RFP)) Following the One Big Beautiful Bill (OBBB), PGE plans to allow 2023 RFP bidders to refresh their pricing. The company expects to finalize contracts in the second half of 2025, with projects in service by the end of 2027, to maximize federal tax credits and minimize customer prices - PGE plans to provide an opportunity for all conforming 2023 RFP bidders to refresh their pricing following the passage of the One Big Beautiful Bill (OBBB)[10](index=10&type=chunk) - PGE continues to expect finalization of contracts in the **second half of 2025**, with projects in service by the **end of 2027**, to maximize federal tax credits and keep customer prices as low as possible[11](index=11&type=chunk) [Quarterly Dividend Announcement](index=2&type=section&id=Quarterly%20Dividend%20Announcement) PGE's board of directors approved a quarterly common stock dividend of $0.525 per share, payable on or before October 15, 2025, to shareholders of record as of September 25, 2025 - The board of directors approved a quarterly common stock dividend of **$0.525 per share**[12](index=12&type=chunk) - The quarterly dividend is payable on or before **October 15, 2025**, to shareholders of record at the close of business on **September 25, 2025**[12](index=12&type=chunk) [2025 Earnings Guidance](index=2&type=section&id=2025%20Earnings%20Guidance) PGE reaffirmed its full-year 2025 adjusted earnings guidance, providing key assumptions for energy deliveries, operating costs, and capital expenditures [Guidance Reaffirmation](index=2&type=section&id=Guidance%20Reaffirmation) PGE reaffirmed its full-year 2025 adjusted earnings guidance, projecting $3.13 to $3.33 per diluted share - PGE is reaffirming its estimate for full-year 2025 adjusted earnings guidance of **$3.13 to $3.33 per diluted share**[6](index=6&type=chunk)[13](index=13&type=chunk) [Key Assumptions](index=2&type=section&id=Key%20Assumptions) The 2025 earnings guidance is based on several key assumptions, including an increase in energy deliveries, effective power cost and financing plans, controlled operating costs, normal weather and plant operations, and specific financial targets for O&M, D&A, tax rate, cash from operations, and capital expenditures 2025 Earnings Guidance Key Assumptions | Assumption | Range/Value | | :------------------------------------------ | :---------------------- | | Energy deliveries increase (weather adjusted) | 2.5% to 3.5% | | Operating and maintenance expense | $795 million to $815 million | | Depreciation and amortization expense | $550 million to $575 million | | Effective tax rate | 15% to 20% | | Cash from operations | $900 million to $1,000 million | | Capital expenditures | $1,215 million | | Average construction work in progress balance | $595 million | - Other assumptions include execution of power cost and financing plans, execution of operating cost controls, normal temperatures in its utility service territory, and normal thermal plant operations[14](index=14&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) PGE utilizes non-GAAP financial measures, such as adjusted earnings and EPS, to provide a clearer view of ongoing operating performance by excluding infrequent or non-recurring items [Definition and Purpose](index=3&type=section&id=Definition%20and%20Purpose) PGE uses non-GAAP financial measures, such as adjusted earnings and EPS, to exclude significant, infrequent items not related to ongoing business activities. This provides a more meaningful representation of comparative earnings and helps investors and management evaluate the company's ongoing operating financial performance, serving as supplementary information to GAAP - Non-GAAP financial measures (adjusted earnings, adjusted EPS, adjusted earnings guidance) exclude significant items generally not related to ongoing business activities or infrequent in nature[16](index=16&type=chunk) - PGE believes these measures provide a meaningful representation of comparative earnings per share and enable investors to evaluate ongoing operating financial performance[16](index=16&type=chunk) - Items impacting comparability and not representing ongoing operating financial performance include business transformation and optimization expenses (strategic advisory, workforce realignment, corporate structure update costs)[17](index=17&type=chunk) [Q2 2025 Reconciliation](index=3&type=section&id=Q2%202025%20Reconciliation) For the second quarter of 2025, PGE reconciled its GAAP net income of $62 million ($0.56 diluted EPS) to non-GAAP net income of $73 million ($0.66 diluted EPS) by adding back $15 million in business transformation and optimization expenses, offset by a $4 million tax effect Non-GAAP Earnings Reconciliation for Q2 2025 | (Dollars in millions, except EPS) | Net Income | Diluted EPS | | :------------------------------------------------- | :--------- | :---------- | | GAAP as reported for the quarter ended June 30, 2025 | $62 | $0.56 | | Exclusion of business transformation and optimization expenses | 15 | 0.14 | | (1) Tax effect | (4) | (0.04) | | **Non-GAAP as reported for the quarter ended June 30, 2025** | **$73** | **$0.66** | [Company Profile](index=4&type=section&id=Company%20Profile) Portland General Electric is an integrated energy company serving over 950,000 customers in Oregon, committed to reducing emissions by 80% by 2030 and 100% by 2040, and recognized for its customer experience - Portland General Electric (PGE) is an integrated energy company that generates, transmits, and distributes electricity to over **950,000 customers**, serving an area of **1.9 million Oregonians**[21](index=21&type=chunk) - PGE is committed to reducing emissions from its retail power supply by **80% by 2030** and **100% by 2040**[21](index=21&type=chunk) - PGE was ranked the **No. 1 utility in the 2024 Forrester U.S. Customer Experience Index**[21](index=21&type=chunk) [Forward-Looking Statements & Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section outlines the company's forward-looking statements, which are subject to various risks and uncertainties, including regulatory, operational, supply chain, and environmental factors [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements, which are estimates and assumptions about future plans, objectives, and expectations. These statements are subject to risks and uncertainties, and the company assumes no obligation to update or revise them - Statements relating to future plans, objectives, expectations, performance, and events constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995[22](index=22&type=chunk) - These statements represent the Company's estimates and assumptions as of the report date, and the Company assumes no obligation to update or revise them[22](index=22&type=chunk) - Forward-looking statements include those regarding full-year earnings guidance and other statements containing words such as "anticipates," "expects," "plans," and similar expressions[23](index=23&type=chunk) [Key Risks and Uncertainties](index=4&type=section&id=Key%20Risks%20and%20Uncertainties) Investors are cautioned that forward-looking statements are subject to numerous risks, including regulatory and legal actions, changing customer demands, operational disruptions, supply chain issues, environmental regulations, market volatility, capital market conditions, climate change impacts (e.g., wildfires), cybersecurity threats, workforce factors, and geopolitical events. Actual results may differ materially from projections - Risks include the timing or outcome of legal and regulatory actions, governmental policies, and regulatory audits concerning rates, financings, and facility operations[24](index=24&type=chunk) - Operational risks relate to generation and battery storage facilities, including hydro/wind conditions, fuel supply disruptions, and unscheduled plant outages, leading to unanticipated costs[24](index=24&type=chunk) - Other significant risks include supply chain delays and increased costs, failure to complete capital projects on schedule or within budget, changes in environmental laws and policies (especially regarding carbon emissions and wildfires), volatility in wholesale power and natural gas prices, and cybersecurity attacks[24](index=24&type=chunk)[25](index=25&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, and cash flows, detailing the company's financial position and performance for the reported periods [Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For Q2 2025, net income decreased to $62 million from $72 million in Q2 2024, and for the six months ended June 30, 2025, it decreased to $162 million from $181 million in 2024. This decline occurred despite an increase in total revenues, primarily due to higher operating expenses, interest expense, and income tax expense Condensed Consolidated Statements of Income and Comprehensive Income | Metric | Three Months Ended June 30, 2025 ($M) | Three Months Ended June 30, 2024 ($M) | Six Months Ended June 30, 2025 ($M) | Six Months Ended June 30, 2024 ($M) | | :---------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Total revenues | 807 | 758 | 1,735 | 1,687 | | Total operating expenses| 689 | 642 | 1,449 | 1,409 | | Income from operations | 118 | 116 | 286 | 278 | | Interest expense, net | 57 | 52 | 113 | 103 | | Income tax expense | 12 | 7 | 34 | 20 | | Net income | 62 | 72 | 162 | 181 | | Diluted EPS | $0.56 | $0.69 | $1.47 | $1.77 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased slightly to $12,681 million from $12,544 million at December 31, 2024, primarily driven by an increase in electric utility plant, net. Total liabilities also rose to $8,829 million from $8,750 million, with long-term debt increasing while current liabilities decreased. Shareholders' equity saw a modest increase Condensed Consolidated Balance Sheets (Selected Items) | Item | June 30, 2025 ($M) | December 31, 2024 ($M) | | :---------------------------- | :----------------- | :--------------------- | | Total current assets | 890 | 1,025 | | Electric utility plant, net | 10,645 | 10,345 | | Total assets | 12,681 | 12,544 | | Total current liabilities | 913 | 1,119 | | Long-term debt, net | 4,663 | 4,354 | | Total liabilities | 8,829 | 8,750 | | Total shareholders' equity | 3,852 | 3,794 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities significantly increased to $567 million from $364 million in the prior year. Net cash used in investing activities slightly decreased, while net cash provided by financing activities decreased due to lower proceeds from debt issuance and common stock. Overall, cash and cash equivalents increased by $44 million Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2025 ($M) | 2024 ($M) | | :-------------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | 567 | 364 | | Net cash used in investing activities | (609) | (639) | | Net cash provided by financing activities | 86 | 276 | | Change in cash and cash equivalents | 44 | 1 | | Cash and cash equivalents, end of period| $56 | $6 | [Supplemental Operating Statistics](index=12&type=section&id=Supplemental%20Operating%20Statistics) This section provides detailed operating statistics, including revenues by customer class, energy deliveries, average retail customer numbers, sources of energy, and weather data, offering insights into operational performance [Revenues by Customer Class](index=12&type=section&id=Revenues%20by%20Customer%20Class) For the six months ended June 30, 2025, total retail revenues increased, primarily driven by a significant rise in industrial and commercial revenues. However, wholesale revenues experienced a notable decrease, leading to an overall modest increase in total revenues Revenues by Customer Class (Six Months Ended June 30) | Category | 2025 ($M) | % of Total | 2024 ($M) | % of Total | Change ($M) | Change (%) | | :------------------------ | :-------- | :--------- | :-------- | :--------- | :---------- | :--------- | | Residential | 740 | 43% | 722 | 43% | 18 | 2.5% | | Commercial | 476 | 27% | 446 | 27% | 30 | 6.7% | | Industrial | 255 | 15% | 206 | 12% | 49 | 23.8% | | Subtotal Retail | 1,490 | 86% | 1,389 | 83% | 101 | 7.3% | | Wholesale revenues | 188 | 11% | 275 | 16% | (87) | -31.6% | | **Total revenues** | **1,735** | **100%** | **1,687** | **100%** | **48** | **2.8%** | [Energy Deliveries](index=12&type=section&id=Energy%20Deliveries) Total energy deliveries for the six months ended June 30, 2025, increased by 4.3% to 15,427 thousand MWhs, up from 14,794 thousand MWhs in 2024. This growth was primarily driven by significant increases in industrial and direct access customer deliveries Energy Deliveries (Six Months Ended June 30) | Category | 2025 (MWhs in thousands) | % of Total | 2024 (MWhs in thousands) | % of Total | Change (MWhs) | Change (%) | | :------------------------ | :----------------------- | :--------- | :----------------------- | :--------- | :------------ | :--------- | | Residential | 3,797 | 25% | 3,851 | 26% | (54) | -1.4% | | Commercial | 3,178 | 20% | 3,176 | 21% | 2 | 0.1% | | Industrial | 2,814 | 18% | 2,390 | 16% | 424 | 17.7% | | Direct access (Commercial)| 264 | 2% | 247 | 2% | 17 | 6.9% | | Direct access (Industrial)| 956 | 6% | 847 | 6% | 109 | 12.9% | | **Total energy deliveries** | **15,427** | **100%** | **14,794** | **100%** | **633** | **4.3%** | [Average Number of Retail Customers](index=12&type=section&id=Average%20Number%20of%20Retail%20Customers) The average number of retail customers increased by 1.4% to 953,603 for the six months ended June 30, 2025, compared to 940,231 in 2024. Growth was observed across all segments, with direct access customers showing the highest percentage increase Average Number of Retail Customers (Six Months Ended June 30) | Category | 2025 | % of Total | 2024 | % of Total | Change | Change (%) | | :------------------------ | :-------- | :--------- | :-------- | :--------- | :------- | :--------- | | Residential | 838,516 | 88% | 826,297 | 88% | 12,219 | 1.5% | | Commercial | 114,211 | 12% | 113,223 | 12% | 988 | 0.9% | | Industrial | 217 | —% | 206 | —% | 11 | 5.3% | | Direct access | 659 | —% | 505 | —% | 154 | 30.5% | | **Total** | **953,603** | **100%** | **940,231** | **100%** | **13,372** | **1.4%** | [Sources of Energy](index=13&type=section&id=Sources%20of%20Energy) For the six months ended June 30, 2025, total system load increased by 1.8%. Total generation increased by 9.5%, primarily driven by a 15.6% rise in natural gas generation. Conversely, total purchased power decreased by 7.2%, mainly due to a significant reduction in unspecified and natural gas purchased power, partially offset by increases in hydro and solar purchased power Sources of Energy (Six Months Ended June 30) | Source Category | 2025 (MWhs in thousands) | % of Total | 2024 (MWhs in thousands) | % of Total | Change (MWhs) | Change (%) | | :------------------------ | :----------------------- | :--------- | :----------------------- | :--------- | :------------ | :--------- | | **Total generation** | **8,458** | **58%** | **7,726** | **53%** | **732** | **9.5%** | | Natural gas (Generation) | 5,396 | 37% | 4,669 | 32% | 727 | 15.6% | | Wind (Generation) | 1,465 | 10% | 1,538 | 11% | (73) | -4.7% | | **Total purchased power** | **6,180** | **42%** | **6,658** | **47%** | **(478)** | **-7.2%** | | Hydro (Purchased) | 3,772 | 26% | 3,415 | 24% | 357 | 10.5% | | Solar (Purchased) | 593 | 4% | 497 | 3% | 96 | 19.3% | | Natural Gas (Purchased) | — | —% | 94 | 1% | (94) | -100.0% | | Source not specified (Purchased) | 1,170 | 8% | 1,846 | 13% | (676) | -36.6% | | **Total system load** | **14,638** | **100%** | **14,384** | **100%** | **254** | **1.8%** | [Weather Data (Degree-days)](index=13&type=section&id=Weather%20Data%20(Degree-days)) For the six months ended June 30, 2025, both heating and cooling degree-days were below their 15-year averages, indicating milder weather conditions. Heating degree-days were 8% below average, and cooling degree-days were 3% below average Year-to-date Weather Data (June 30) | Metric | 2025 | 2024 | 15-year Avg. | (Decrease) from Avg. | | :---------------- | :--- | :--- | :----------- | :------------------- | | Heating Degree-days | 2,236 | 2,302 | 2,425 | (8)% | | Cooling Degree-days | 106 | 108 | 109 | (3)% |

[Definitions](index=4&type=section&id=Definitions) This section provides a glossary of key abbreviations and acronyms used throughout the report Key Abbreviations and Acronyms | 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 | | 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 | | ITC | Federal investment tax credit | | Moody's | Moody's Investors Service | | MW | Megawatts | | MWh | Megawatt hour | | NVPC | Net Variable Power Costs | | OPUC | Public Utility Commission of Oregon | | PCAM | Power Cost Adjustment Mechanism | | PTC | Production tax credit | | RAC | Renewable Adjustment Clause | | RFP | Request for Proposals | | RPS | Renewable Portfolio Standard | | S&P | S&P Global Ratings | | SEC | United States Securities and Exchange Commission | [PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This part presents the company's unaudited financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements of Portland General Electric Company (PGE) for the periods ended June 30, 2025 and 2024, including statements of income and comprehensive income, balance sheets, and cash flows, along with detailed notes explaining the basis of presentation, revenue recognition, balance sheet components, fair value measurements, risk management, earnings per share, shareholders' equity, contingencies, guarantees, income taxes, and segment information [Condensed Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This section provides the unaudited condensed consolidated statements of income and comprehensive income for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Income and Comprehensive Income (in millions, except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $807 | $758 | $1,735 | $1,687 | | Total operating expenses | $689 | $642 | $1,449 | $1,409 | | Income from operations | $118 | $116 | $286 | $278 | | Net income | $62 | $72 | $162 | $181 | | Basic EPS | $0.56 | $0.69 | $1.48 | $1.77 | | Diluted EPS | $0.56 | $0.69 | $1.47 | $1.77 | - Net income decreased by **$10 million (13.9%)** for the three months ended June 30, 2025, and by **$19 million (10.5%)** for the six months ended June 30, 2025, compared to the same periods in 2024[14](index=14&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $890 | $1,025 | | Electric utility plant, net | $10,645 | $10,345 | | Total assets | $12,681 | $12,544 | | Total current liabilities | $913 | $1,119 | | Long-term debt, net of current portion | $4,663 | $4,354 | | Total liabilities | $8,829 | $8,750 | | Total shareholders' equity | $3,852 | $3,794 | - Total assets increased to **$12,681 million** as of June 30, 2025, from **$12,544 million** at December 31, 2024[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $567 | $364 | | Net cash used in investing activities | $(609) | $(639) | | Net cash provided by financing activities | $86 | $276 | | Change in cash and cash equivalents | $44 | $1 | | Cash and cash equivalents, end of period | $56 | $6 | - Net cash provided by operating activities significantly increased by **$203 million** to **$567 million** for the six months ended June 30, 2025, compared to **$364 million** in the prior year[22](index=22&type=chunk)[289](index=289&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes supporting the condensed consolidated financial statements [NOTE 1: BASIS OF PRESENTATION](index=10&type=section&id=NOTE%201%3A%20BASIS%20OF%20PRESENTATION) This note describes the company's business, regulatory environment, and the basis for presenting its unaudited financial information - PGE is a single-segment, vertically-integrated electric utility engaged in generation, purchase, transmission, distribution, and retail sale of electricity in Oregon, serving **956,000 retail customers** as of June 30, 2025[27](index=27&type=chunk) - The company is subject to regulation by the Public Utility Commission of Oregon (OPUC) for retail prices and services, and by the Federal Energy Regulatory Commission (FERC) for wholesale energy transactions[28](index=28&type=chunk) - The financial information for the three and six months ended June 30, 2025 and 2024 is unaudited, reflecting normal recurring adjustments[30](index=30&type=chunk) [NOTE 2: REVENUE RECOGNITION](index=12&type=section&id=NOTE%202%3A%20REVENUE%20RECOGNITION) This note outlines the company's policies for recognizing revenue, including disaggregated revenue by customer type and alternative revenue programs Disaggregated Revenue by Customer Type (in millions) | Customer Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Residential | $311 | $307 | $740 | $722 | | Commercial | $234 | $219 | $476 | $446 | | Industrial | $128 | $104 | $255 | $206 | | Direct access customers | $10 | $9 | $19 | $15 | | Alternative revenue programs, net | $9 | $(3) | $5 | $(14) | | Wholesale revenues | $88 | $99 | $188 | $275 | | Other operating revenues | $21 | $19 | $42 | $32 | | **Total revenues** | **$807** | **$758** | **$1,735** | **$1,687** | - Alternative revenue programs, including decoupling and the Renewable Adjustment Clause (RAC), are considered contracts with the regulator and are presented separately from revenues from contracts with customers[43](index=43&type=chunk) - Wholesale revenues primarily consist of short-term electricity sales to utilities and power marketers, and sales of environmental credits[44](index=44&type=chunk) [NOTE 3: BALANCE SHEET COMPONENTS](index=14&type=section&id=NOTE%203%3A%20BALANCE%20SHEET%20COMPONENTS) This note provides details on significant balance sheet accounts, including accounts receivable, utility plant, and regulatory assets and liabilities - Accounts receivable, net includes **$142 million** of unbilled revenues as of June 30, 2025, and an allowance for uncollectible accounts of **$14 million**[49](index=49&type=chunk) - Electric utility plant, net increased to **$10,645 million** as of June 30, 2025, with **$718 million** in construction work-in-progress (CWIP), including **$340 million** for the Seaside Battery Energy Storage System Project placed in-service on July 8, 2025[53](index=53&type=chunk) Regulatory Assets and Liabilities (in millions) | Category | June 30, 2025 Current | June 30, 2025 Noncurrent | December 31, 2024 Current | December 31, 2024 Noncurrent | | :--- | :--- | :--- | :--- | :--- | | Total regulatory assets | $188 | $581 | $205 | $632 | | Total regulatory liabilities | $72 | $1,420 | $53 | $1,440 | - PGE deferred **$47 million** for January 2024 storm damage, **$95 million** for Reliability Contingency Events (RCEs), and **$44 million** for wildfire mitigation operating expenses as of June 30, 2025, all believed probable of recovery[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) [NOTE 4: FAIR VALUE OF FINANCIAL INSTRUMENTS](index=19&type=section&id=NOTE%204%3A%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) This note explains the fair value hierarchy and presents the fair value measurements of the company's financial assets and liabilities - PGE classifies financial instruments into a three-level fair value hierarchy based on the observability of pricing inputs, with Level 1 for active markets, Level 2 for observable inputs, and Level 3 for unobservable inputs[72](index=72&type=chunk) Fair Value of Financial Assets and Liabilities (in millions) | Category | Level 1 | Level 2 | Level 3 | Other (NAV) | Total (June 30, 2025) | Total (Dec 31, 2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Assets:** | | | | | | | | Cash equivalents | $41 | $— | $— | $— | $41 | $12 | | Nuclear decommissioning trust | $14 | $11 | $— | $7 | $32 | $30 | | Non-qualified benefit plan trust | $1 | $— | $— | $6 | $7 | $6 | | Price risk management activities | $— | $28 | $5 | $— | $33 | $34 | | **Liabilities:** | | | | | | | | Price risk management activities | $— | $119 | $36 | $— | $155 | $219 | - Net liabilities from Level 3 price risk management activities decreased from **$34 million** at the beginning of the six-month period to **$31 million** as of June 30, 2025[90](index=90&type=chunk) [NOTE 5: RISK MANAGEMENT](index=24&type=section&id=NOTE%205%3A%20RISK%20MANAGEMENT) This note describes the company's use of derivative instruments to manage commodity price and foreign exchange rate risks and potential collateral requirements - PGE uses derivative instruments (forwards, futures, swaps, and options) for electricity, natural gas, and foreign currency to manage commodity price and foreign exchange rate risks, aiming to reduce volatility in Net Variable Power Costs (NVPC) for retail customers[94](index=94&type=chunk) Assets and Liabilities from Price Risk Management Activities (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current derivative assets | $12 | $32 | | Total noncurrent derivative assets | $21 | $2 | | **Total derivative assets** | **$33** | **$34** | | Total current derivative liabilities | $112 | $147 | | Total noncurrent derivative liabilities | $43 | $72 | | **Total derivative liabilities** | **$155** | **$219** | - A credit rating downgrade of PGE's unsecured debt to below investment grade could trigger requests for additional performance assurance collateral of **$45 million** (single agency) or **$127 million** (dual agency) as of June 30, 2025[99](index=99&type=chunk)[100](index=100&type=chunk)[306](index=306&type=chunk) [NOTE 6: EARNINGS PER SHARE](index=27&type=section&id=NOTE%206%3A%20EARNINGS%20PER%20SHARE) This note details the calculation of basic and diluted earnings per share, including weighted-average common shares outstanding - Basic earnings per share are computed based on weighted-average common shares outstanding, while diluted earnings per share include the effect of dilutive potential common shares using the treasury stock method[104](index=104&type=chunk) Weighted-Average Common Shares Outstanding (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Weighted-average common shares outstanding—basic | 109,522 | 103,034 | 109,473 | 102,167 | | Dilutive effect of potential common shares | 243 | 198 | 252 | 171 | | Weighted-average common shares outstanding—diluted | 109,765 | 103,232 | 109,725 | 102,338 | - Unvested performance-based restricted stock units (**641 thousand shares** in 2025) were excluded from diluted EPS calculations as performance goals had not been met[105](index=105&type=chunk) [NOTE 7: SHAREHOLDERS' EQUITY](index=28&type=section&id=NOTE%207%3A%20SHAREHOLDERS'%20EQUITY) This note outlines changes in shareholders' equity and information regarding the company's at-the-market common stock offering program Shareholders' Equity Activity (in millions, except shares) | Metric | Balances as of December 31, 2024 | Balances as of March 31, 2025 | Balances as of June 30, 2025 | | :--- | :--- | :--- | :--- | | Common Stock Shares | 109,342,251 | 109,503,325 | 109,561,888 | | Common Stock Amount | $2,118 | $2,123 | $2,127 | | Retained Earnings | $1,680 | $1,725 | $1,729 | | Total Shareholders' Equity | $3,794 | $3,844 | $3,852 | - PGE's total shareholders' equity increased to **$3,852 million** as of June 30, 2025, from **$3,794 million** at December 31, 2024[19](index=19&type=chunk)[107](index=107&type=chunk) - Under its at-the-market offering program, PGE could sell up to **$400 million** of common stock; as of June 30, 2025, **2,352,097 shares** could be physically settled for **$104 million**[108](index=108&type=chunk)[301](index=301&type=chunk) [NOTE 8: CONTINGENCIES](index=29&type=section&id=NOTE%208%3A%20CONTINGENCIES) This note discusses potential liabilities from legal proceedings, environmental remediation, and other contingent matters - PGE is a Potentially Responsible Party (PRP) in the Portland Harbor Superfund site investigation, with estimated undiscounted total remediation costs ranging from **$1.9 billion to $3.5 billion**, though PGE cannot reasonably estimate its specific liability at this time[118](index=118&type=chunk)[121](index=121&type=chunk)[221](index=221&type=chunk) - The Portland Harbor Environmental Remediation Account (PHERA) mechanism allows PGE to defer and recover estimated liabilities and incurred environmental expenditures related to Portland Harbor through third-party proceeds and customer prices[126](index=126&type=chunk)[221](index=221&type=chunk) - PGE, with a **20% ownership** in the Colstrip Units 3 and 4 coal-fired plant, is involved in arbitration regarding co-owner voting rights for plant closure and settled a coal dust lawsuit in June 2025 with no material financial impact[127](index=127&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) [NOTE 9: GUARANTEES](index=32&type=section&id=NOTE%209%3A%20GUARANTEES) This note describes the company's indemnification provisions within financial and purchase/sale agreements - PGE enters into financial and purchase/sale agreements with indemnification provisions, but the overall maximum obligation cannot be reasonably estimated; management believes the likelihood of incurring significant losses is remote[132](index=132&type=chunk) [NOTE 10: INCOME TAXES](index=33&type=section&id=NOTE%2010%3A%20INCOME%20TAXES) This note provides information on the company's effective tax rate and federal tax credits Effective Tax Rate | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Federal statutory tax rate | 21.0 % | 21.0 % | 21.0 % | 21.0 % | | Federal tax credits | (12.7) % | (18.5) % | (10.7) % | (17.1) % | | Effective tax rate | 16.2 % | 8.9 % | 17.3 % | 10.0 % | - Federal tax credits, primarily Production Tax Credits (PTCs) and Investment Tax Credits (ITCs), significantly reduce PGE's effective tax rate[133](index=133&type=chunk) - Federal tax credit carryforwards were **$77 million** as of June 30, 2025, primarily PTCs and ITCs expiring at various dates through 2045[134](index=134&type=chunk) [NOTE 11: SEGMENT INFORMATION](index=33&type=section&id=NOTE%2011%3A%20SEGMENT%20INFORMATION) This note confirms the company operates as a single, vertically-integrated electric utility segment - PGE operates as a single operating and reportable segment, a vertically-integrated electric utility, with its Chief Operating Decision Maker (CODM) assessing performance using Consolidated Net Income[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) Consolidated Net Income by Segment (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $807 | $758 | $1,735 | $1,687 | | Total operating expenses | $689 | $642 | $1,449 | $1,409 | | Income from operations | $118 | $116 | $286 | $278 | | Net income | $62 | $72 | $162 | $181 | - Total assets were **$12,681 million** as of June 30, 2025, and capital expenditures for the six months ended June 30, 2025, were **$596 million**[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on PGE's business environment, operational results, and financial health, including forward-looking statements, an overview of company strategy, climate change initiatives, clean energy investments, regulatory landscape, operating activities, and a detailed analysis of liquidity and capital resources [Forward-Looking Statements](index=35&type=section&id=Forward-Looking%20Statements) This section cautions that the report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements that are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially[139](index=139&type=chunk)[140](index=140&type=chunk) - Key risk factors include governmental policies, economic conditions, increased energy demand from data centers, trade tariffs, inflation, interest rate volatility, and uncertainties in All-Source RFP projects[141](index=141&type=chunk) - Other significant risks encompass legal and regulatory proceedings, natural or human-caused disasters (e.g., wildfires, storms), operational factors affecting power facilities, and cybersecurity attacks[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) [OVERVIEW](index=38&type=section&id=OVERVIEW) This section provides a strategic overview of the company, including its climate change initiatives, clean energy investments, and regulatory environment [Company Strategy](index=38&type=section&id=Company%20Strategy) This section outlines PGE's strategic imperatives focused on decarbonization, electrification, and performance to achieve earnings per share growth - PGE's strategic imperatives focus on decarbonizing power (**80% GHG reduction by 2030, 100% by 2040**), electrifying the economy, and advancing performance to achieve **5-7% annual earnings per share growth**[147](index=147&type=chunk)[149](index=149&type=chunk) - The company is committed to being a clean energy leader, delivering affordable, safe, reliable electricity, and building a smart, integrated grid[147](index=147&type=chunk) [Climate Change](index=38&type=section&id=Climate%20Change) This section discusses Oregon's GHG emission reduction mandates and PGE's programs and investments in response to climate change and severe weather events - Oregon mandates GHG emission reductions for retail electricity providers: **80% by 2030, 90% by 2035, and 100% by 2040**[150](index=150&type=chunk) - PGE's Green Future Program has over **225,000 residential and small commercial participants**, and the Green Future Impact Program has **482 MW subscribed capacity** for large business and municipal customers[151](index=151&type=chunk)[153](index=153&type=chunk) - Recent severe weather events, including historic ice/snowstorms and record heat waves, underscore the importance of decarbonizing the power supply and investing in a more reliable and resilient grid[154](index=154&type=chunk) [Investing in a Clean Energy Future](index=39&type=section&id=Investing%20in%20a%20Clean%20Energy%20Future) This section details PGE's plans for acquiring renewable energy and non-emitting capacity, including specific projects and transmission upgrades - PGE's 2023 Integrated Resource Plan (IRP) and Clean Energy Plan (CEP) Update identified a need for **3,500 to 4,500 MW** of renewable energy and non-emitting capacity[155](index=155&type=chunk)[160](index=160&type=chunk) - The 2021 All-Source RFP resulted in agreements for Clearwater (**208 MW wind**), Seaside Grid (**200 MW BESS**), Constable BESS (**75 MW BESS**), and Sundial BESS (**200 MW BESS**)[162](index=162&type=chunk)[164](index=164&type=chunk) - PGE is pursuing transmission upgrades, including a **20% ownership share** in the **$3.2 billion** North Plains Connector HVDC line and a **$250 million** grant to upgrade the Bethel-Round Butte Transmission line[176](index=176&type=chunk)[178](index=178&type=chunk) - The 2025 Wildfire Mitigation Plan forecasts **$53-57 million** in O&M and **$57-78 million** in capital investments for 2025 to enhance system hardening and resiliency[179](index=179&type=chunk) [Laws and Regulations](index=44&type=section&id=Laws%20and%20Regulations) This section discusses the impact of trade tariffs, federal grants, the Inflation Reduction Act, and new EPA regulations on PGE's operations and financials - Trade tariffs may increase costs for imported materials and equipment, disrupt supply chains, and affect capital projects and RFP resource acquisitions, with uncertain impacts on PGE's financials[186](index=186&type=chunk) - PGE has been awarded **10 federal grants** totaling **$313 million**, including **$250 million** for the Bethel-Round Butte Transmission Line Upgrade and **$50 million** for the Grid Edge Devices project[188](index=188&type=chunk)[190](index=190&type=chunk) - The Inflation Reduction Act (IRA) provides tax incentives; PGE transferred **$13 million** in tax credits in H1 2025 and expects to generate and transfer approximately **$168 million** in tax credits in 2025[191](index=191&type=chunk) - The One Big Beautiful Bill Act (OBBB), signed July 4, 2025, materially amends renewable-energy tax incentives, potentially reducing or eliminating credits for future projects, with uncertain impacts on PGE's financials and RFPs[193](index=193&type=chunk)[194](index=194&type=chunk) - New EPA regulations for electric generating facilities (GHG, ELG, MATS) could require material upgrades at Colstrip with compliance dates as early as 2027, though proposed repeals and legal challenges create uncertainty[204](index=204&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk) [Regulatory Matters](index=47&type=section&id=Regulatory%20Matters) This section covers PGE's regulatory applications, deferred costs, and requests for revenue requirement increases related to various projects and initiatives - PGE plans to submit a regulatory application for approval of a holding company reorganization to gain financial flexibility and support new transmission assets, requiring OPUC and FERC approvals[211](index=211&type=chunk)[213](index=213&type=chunk) - PGE has deferred **$47 million** for January 2024 storm restoration costs and **$95 million** for Reliability Contingency Events (RCEs), both believed probable of recovery, subject to OPUC prudence review and earnings tests[215](index=215&type=chunk)[216](index=216&type=chunk) - PGE is seeking OPUC approval for a Distribution System Plan Alternative Recovery Mechanism, requesting a **$72 million annualized revenue requirement increase** and a **$335 million rate base increase**[218](index=218&type=chunk)[219](index=219&type=chunk) - PGE submitted a request for recovery of the revenue requirement associated with the Seaside Battery Energy Storage System (Seaside BESS), seeking a **$46 million annualized revenue requirement increase** and a **$257 million rate base increase**[225](index=225&type=chunk)[227](index=227&type=chunk) [Operating Activities](index=51&type=section&id=Operating%20Activities) This section describes PGE's participation in wholesale electricity markets, retail energy deliveries, and generating resources performance - PGE participates in the wholesale electricity market, CAISO's Western Energy Imbalance Market (EIM), and plans to join the Extended Day-Ahead Market (EDAM) in 2026 to optimize resource use and access lower-cost energy[233](index=233&type=chunk)[234](index=234&type=chunk) - Summer peak electricity deliveries have exceeded winter peaks for nearly ten years, with a new all-time high of **4,498 MW** in August 2023, driven by growing air conditioning demand and a warmer climate[236](index=236&type=chunk) Total Retail Energy Deliveries (in thousands of MWh) | Customer Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential | 1,571 | 1,608 | (2)% | 3,797 | 3,851 | (1)% | | Commercial | 1,546 | 1,548 | — | 3,178 | 3,176 | — | | Industrial | 1,416 | 1,204 | 18% | 2,814 | 2,390 | 18% | | Total retail | 5,181 | 4,938 | 5% | 11,009 | 10,511 | 5% | - Industrial energy deliveries increased **18%** for both the three and six months ended June 30, 2025, reflecting strength primarily in the digital services sector[239](index=239&type=chunk)[241](index=241&type=chunk) Generating Resources Performance (6 Months Ended June 30) | Generation Type | 2025 Plant Availability | 2024 Plant Availability | 2025 % of Total System Load | 2024 % of Total System Load | | :--- | :--- | :--- | :--- | :--- | | Natural gas | 84% | 77% | 37% | 32% | | Coal | 71% | 65% | 6% | 5% | | Wind | 90% | 91% | 10% | 11% | | Hydro | 97% | 94% | 5% | 5% | [Operating and Maintenance](index=55&type=section&id=Operating%20and%20Maintenance) This section discusses incremental costs for business transformation and the performance of Net Variable Power Costs against baseline - PGE incurred incremental costs for business transformation and optimization, including strategic advisory and workforce realignment, and costs related to its intent for a holding company reorganization[254](index=254&type=chunk) - For the six months ended June 30, 2025, actual Net Variable Power Costs (NVPC) were **$19 million below baseline**; no refund to customers is expected under the Power Cost Adjustment Mechanism (PCAM) for 2025 as PGE's preliminary regulatory return on equity (ROE) is estimated to be below **10.34%**[256](index=256&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial results, including revenues, expenses, and net income for the reporting periods Financial Results (in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total revenues | $807 | $758 | 6% | $1,735 | $1,687 | 3% | | Purchased power and fuel | $294 | $275 | 7% | $662 | $680 | (3)% | | Generation, transmission and distribution | $114 | $107 | 7% | $224 | $206 | 9% | | Administrative and other | $96 | $97 | (1)% | $192 | $192 | — | | Depreciation and amortization | $139 | $122 | 14% | $279 | $243 | 15% | | Income from operations | $118 | $116 | 2% | $286 | $278 | 3% | | Net income | $62 | $72 | (14)% | $162 | $181 | (10)% | - Net income decreased by **$10 million (14%)** for the three months and **$19 million (10%)** for the six months ended June 30, 2025, primarily due to lower Production Tax Credit (PTC) benefits and increased operating expenses[259](index=259&type=chunk)[260](index=260&type=chunk)[285](index=285&type=chunk) - Retail revenues increased due to OPUC-authorized price changes and increased customer load, while wholesale revenues decreased by **$87 million (32%)** for the six months due to lower average sales prices and reduced environmental credit sales[263](index=263&type=chunk)[265](index=265&type=chunk) - Purchased power and fuel expense increased by **$19 million** for the three months but decreased by **$18 million** for the six months ended June 30, 2025, reflecting changes in average variable power costs and the impact of RCE deferrals[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk) [Critical Accounting Policies and Estimates](index=63&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to the company's critical accounting policies and estimates since the last annual report - There have been no material changes to the Company's critical accounting policies and estimates as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[286](index=286&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=63&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section analyzes the company's cash flows, capital requirements, financing activities, capital structure, and credit ratings [Liquidity](index=63&type=section&id=Liquidity) This section summarizes the company's cash flows from operating, investing, and financing activities and its overall liquidity position Cash Flows Summary (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents, beginning of period | $12 | $5 | | Net cash provided by operating activities | $567 | $364 | | Net cash used in investing activities | $(609) | $(639) | | Net cash provided by financing activities | $86 | $276 | | Change in cash and cash equivalents | $44 | $1 | | Cash and cash equivalents, end of period | $56 | $6 | - Net cash provided by operating activities increased by **$203 million** to **$567 million** for the six months ended June 30, 2025, driven by changes in accounts receivable, margin deposits, and regulatory deferral activity[289](index=289&type=chunk) - Net cash used in investing activities decreased by **$30 million** to **$609 million**, primarily due to a **$27 million** decrease in capital expenditures[290](index=290&type=chunk) [Capital Requirements](index=65&type=section&id=Capital%20Requirements) This section outlines estimated capital expenditures and long-term debt maturities, along with funding plans Estimated Capital Expenditures and Long-Term Debt Maturities (in millions) | Year | Total Capital Expenditures | Long-Term Debt Maturities | | :--- | :--- | :--- | | 2025 | $1,215 | $68 | | 2026 | $1,150 | $— | | 2027 | $1,280 | $160 | | 2028 | $1,340 | $100 | | 2029 | $1,435 | $200 | - PGE plans **$1.2 billion** in capital expenditures for 2025, to be funded by cash from operations (**$900 million to $1 billion**), long-term debt issuances (up to **$450 million**), and common stock/short-term debt as needed[291](index=291&type=chunk)[295](index=295&type=chunk) [Debt and Equity Financings](index=65&type=section&id=Debt%20and%20Equity%20Financings) This section details the company's revolving credit facility, recent debt issuances, and at-the-market common stock offering program - PGE has a **$750 million** revolving credit facility (expiring September 2029) with no outstanding balance, providing **$750 million** in available credit capacity, and total liquidity of **$980 million** as of June 30, 2025[296](index=296&type=chunk)[298](index=298&type=chunk)[299](index=299&type=chunk) - PGE issued **$310 million** in First Mortgage Bonds on March 25, 2025, with maturities in 2035, 2045, and 2055[300](index=300&type=chunk)[303](index=303&type=chunk) - Under its at-the-market offering program, PGE could sell up to **$400 million** of common stock; as of June 30, 2025, **2,352,097 shares** could be physically settled for **$104 million**[301](index=301&type=chunk) [Capital Structure](index=66&type=section&id=Capital%20Structure) This section discusses the company's target common equity ratio and its current debt-to-total capital ratio - PGE aims to maintain a common equity ratio of approximately **50%** to support investment-grade credit ratings and access to long-term capital at favorable interest rates[302](index=302&type=chunk) - The common equity ratio was **44.9%** as of June 30, 2025, down from **45.6%** at December 31, 2024[304](index=304&type=chunk) [Credit Ratings and Debt Covenants](index=67&type=section&id=Credit%20Ratings%20and%20Debt%20Covenants) This section provides an overview of the company's credit ratings, outlooks, and compliance with debt covenants Credit Ratings and Outlook | Metric | Moody's | S&P | | :--- | :--- | :--- | | Issuer credit rating | A3 | BBB+ | | Senior secured debt | A1 | A | | Commercial paper | P-2 | A-2 | | Outlook | Negative | Stable | - A single agency downgrade below investment grade could require **$45 million** in additional collateral; a dual agency downgrade could require **$127 million** as of June 30, 2025[306](index=306&type=chunk) - PGE's debt-to-total capital ratio was **55.1%** as of June 30, 2025, well within the **65.0%** covenant limit of its revolving credit facility[309](index=309&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses PGE's exposure to market risks, including fluctuations in commodity prices, foreign currency exchange rates, interest rates, and credit risk, noting no material changes from the previous annual report - PGE is exposed to market risks from commodity prices, foreign currency exchange rates, interest rates, and credit risk, with no material changes reported since December 31, 2024[310](index=310&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of PGE's disclosure controls and procedures as of June 30, 2025, and reports no material changes in internal control over financial reporting during the quarter [Disclosure Controls and Procedures](index=68&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025 - PGE's management, under the supervision of its Chief Executive Officer and Chief Financial Officer, concluded that disclosure controls and procedures were effective as of June 30, 2025[311](index=311&type=chunk) [Changes in Internal Control over Financial Reporting](index=68&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports no material changes in internal control over financial reporting during the quarter ended June 30, 2025 - There were no changes in PGE's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the quarter ended June 30, 2025[312](index=312&type=chunk) [PART II — OTHER INFORMATION](index=68&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This part includes information on legal proceedings, risk factors, other disclosures, and exhibits filed with the report [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8, Contingencies, for detailed information regarding legal proceedings affecting PGE - For information regarding legal proceedings, refer to Note 8, Contingencies, in the Notes to Condensed Consolidated Financial Statements[313](index=313&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new material risk factors for PGE, specifically concerning the negative impacts of trade tariffs and the perceived risk of wildfire exposure on the company's financial condition, capital access, and strategic execution - Trade tariffs and related market volatility and supply chain disruptions could increase PGE's operating costs, impair its ability to complete capital projects, and impede access to capital markets[315](index=315&type=chunk) - The perceived risk of wildfire exposure could adversely affect PGE's access to capital, hinder the company's ability to execute its strategic plan, and increase costs due to the lack of legislation limiting wildfire-related liability or providing a relief fund[316](index=316&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) This section states that no director or officer adopted a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025 - No director or officer adopted a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[317](index=317&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including corporate documents, certifications, and XBRL data files Exhibits Filed | Exhibit Number | Description | | :--- | :--- | | 3.1 | Third Amended and Restated Articles of Incorporation of Portland General Electric Company | | 3.2 | Twelfth Amended and Restated Bylaws of Portland General Electric Company | | 31.1 | Certification of Chief Executive Officer | | 31.2 | Certification of Chief Financial Officer | | 32 | Certifications of Chief Executive Officer and Chief Financial Officer | | 101.INS | XBRL Instance 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 25, 2025, formatted in iXBRL (Inline Extensible Business Reporting Language) | [SIGNATURE](index=70&type=section&id=SIGNATURE) This section confirms the official signing of the report by the designated financial officer - The report was signed by Joseph R. Trpik, Senior Vice President, Finance and Chief Financial Officer, on July 24, 2025[320](index=320&type=chunk)

Core Viewpoint - The utility sector is poised for significant growth due to a surge in electricity demand driven by advancements in artificial intelligence, data centers, and electric vehicles, with a projected increase in demand of 55% over the next 20 years compared to just 9% from 2000 to 2020 [3][4]. Industry Trends - Electricity demand grew by 9% from 2000 to 2020, but is expected to grow by 55% over the next two decades [3]. - The demand for electricity from AI and data centers is projected to increase by 300% in the next decade, while electric vehicles are expected to drive a staggering 9,000% increase in electricity demand by 2050 [4]. - By the middle of the century, electricity is projected to account for 32% of final energy demand, up from 21% [4]. Investment Opportunities - Vanguard Utilities Index Fund ETF (VPU) offers diversified exposure to the utility sector with a yield of approximately 2.8% [6]. - NextEra Energy (NEE) has a strong growth platform with a 10% annualized dividend increase over the past decade and a yield of around 3.2% [7][8]. - The Southern Company (SO) has recently started two nuclear reactors, enhancing its clean energy supply and yielding 3.2% [9]. - Duke Energy (DUK) focuses on regulated utility customer bases, with a dividend yield of about 3.5% [10]. - Dominion Energy (D) has a higher yield of 4.7% but has faced challenges with a dividend cut [11]. - Black Hills Corporation (BKH) has achieved Dividend King status with a yield of 4.8% and a growing customer base [12]. - Constellation Energy (CEG) operates the largest nuclear power fleet in the U.S. but has a lower yield of 0.5% [13]. - Brookfield Renewable offers a diversified clean energy investment with yields of 5.8% for the partnership class and 4.5% for the corporate class [14][15]. - Portland General Electric (POR) has a yield of 5.1% and operates in a region with potential for data centers despite wildfire risks [17]. - Eversource Energy (ES) focuses on regulated utility assets with a yield of approximately 4.7% [18]. Long-term Outlook - The trends driving electricity demand are expected to unfold over decades, presenting opportunities for long-term investors to build wealth as the demand growth story develops [19].

Core Insights - The article compares Portland General Electric (POR) and Pinnacle West (PNW) to determine which stock offers better value for investors [1] Valuation Metrics - Portland General Electric has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Pinnacle West, which has a Zacks Rank of 4 (Sell) [3] - POR has a forward P/E ratio of 12.44, while PNW has a forward P/E of 19.66, suggesting that POR is more undervalued [5] - The PEG ratio for POR is 3.72, compared to PNW's PEG ratio of 9.27, indicating that POR's expected earnings growth is more favorable [5] - POR's P/B ratio is 1.14, while PNW's P/B ratio is 1.55, further supporting the notion that POR is a better value option [6] - Based on these metrics, POR has earned a Value grade of B, while PNW has a Value grade of C [6] Earnings Outlook - The improving earnings outlook for POR enhances its attractiveness in the Zacks Rank model, positioning it as the superior value option at this time [7]