[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]

Company Overview - Portland General Electric (PGE) is a vertically integrated energy company serving approximately 950,000 retail customers in Oregon [14] - PGE aims for 100% clean energy by 2040, targeting an 80% reduction in greenhouse gas emissions by 2030 and a 90% reduction by 2035 [14] - In 2024, PGE's revenue was $3.4 billion, with a GAAP diluted earnings per share (EPS) of $3.01 and an adjusted non-GAAP EPS of $3.14 [14] Growth and Investment - PGE forecasts long-term EPS growth of 5% to 7% and dividend growth [18] - The company anticipates approximately 3% long-term load growth through 2029, driven by high-tech industrial customers [19, 23] - PGE's five-year base capital expenditure forecast of $6.5 billion drives 7% average rate base growth from 2024 [43] - Illustrative incremental RFP opportunities potentially increase average rate base growth to 9% from 2024 [43] Clean Energy Transition - PGE brought online 311 MW of wind energy and integrated 292 MW of battery storage in 2024 [18, 33] - The company plans to procure an additional 3,500 to 4,500 MW of non-emitting resources through multi-stage RFP processes by 2030 [18, 33] - In 2024, 45% of PGE's total system load was composed of specified, non-emitting energy sources [69] Financial Performance and Liquidity - PGE's total liquidity as of March 31, 2025, was $948 million, including $11 million in cash and $750 million in credit facilities [63] - The company expects to issue approximately $300 million in base equity per year in 2025 and 2026 [64] - PGE spent $228 million with diverse suppliers in 2024, representing 18% of total spend [75]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: High-Yielding Stocks in Utilities Sector - The AES Corporation has a dividend yield of 6.87% and was downgraded from Buy to Hold by Argus Research on May 27, 2025, with an accuracy rate of 62% [7] - Portland General Electric Company has a dividend yield of 5.11% and received a downgrade from Barclays, with a price target cut from $48 to $45 on April 30, 2025, maintaining an Equal-Weight rating [7] - Avista Corporation has a dividend yield of 5.13% and was rated Underperform by B of A Securities with a price target of $37 reinstated on September 12, 2024 [7]

Group 1 - The investment environment for utilities is currently favorable, particularly at the beginning of 2024, due to several tailwinds [1] - The investment strategy combines fundamental analysis with options, focusing on various approaches such as income-oriented investments, growth at a reasonable price, deep value, and dividend aristocrats [1] - The analyst employs 20-25 options strategies for purposes including hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2 - The analyst holds a beneficial long position in shares of specific utility companies, indicating a positive outlook on their performance [2]

Core Insights - Renée James has been appointed to the board of directors of Portland General Electric (PGE), effective June 11, 2025, bringing valuable experience from the technology sector, particularly in high-tech and semiconductor manufacturing [1][2] - James is the founder, Chair, and CEO of Ampere Computing and has held various leadership roles at Intel Corporation, including President and Executive Vice President [1][2] - PGE is committed to reducing emissions from its retail power supply by 80% by 2030 and 100% by 2040, and it has the No. 1 voluntary renewable energy program in the U.S. [3][4] Company Overview - Portland General Electric (NYSE: POR) serves nearly 950,000 customers in an area of 1.9 million Oregonians, providing safe, affordable, reliable, and increasingly clean electricity since 1889 [3][4] - PGE was ranked the No. 1 utility in the 2024 Forrester U.S. Customer Experience Index, highlighting its commitment to customer satisfaction [3][4] - In 2024, PGE employees, retirees, and the PGE Foundation donated $5.5 million and volunteered nearly 23,000 hours to over 480 nonprofit organizations [3][4]

Core Insights - The renewable energy sector is experiencing significant growth as global awareness and government pressure to reduce greenhouse gas emissions increase, leading to a shift from fossil fuels to renewable sources for power generation [1] - Wind power is emerging as a key driver in the clean energy transition, with the U.S. seeing record levels of electricity generation from wind energy [2][3] Industry Overview - Wind energy has become one of the largest sources of renewable energy in the U.S., generating 10% of total utility-scale electricity in 2024, marking a 6.4% increase from the previous year [3] - The onshore wind energy capacity in the U.S. has grown from 2.4 gigawatts (GW) in 2000 to over 153 GW in 2024 [2] - Wind power accounted for approximately 27% of capacity additions to the U.S. power system on average since 2010 [4] Market Trends - The wind energy market is benefiting from trends such as increased electricity demand from AI-powered data centers, the adoption of electric vehicles, and rapid urbanization [5] - The U.S. grid is projected to add 7.7 GW of wind generation capacity in 2025, up from 5.1 GW added in the previous year [5] Company Highlights - Arcosa, Inc. is positioned to benefit from strong demand for wind towers, with $1.1 billion in new orders following the Inflation Reduction Act (IRA) [9][10] - NextEra Energy Resources LLC is the world's leading generator of wind energy, adding 1,365 MW of new wind capacity in 2024, with a total generating capacity of approximately 26,335 MW [14] - OGE Energy is expanding its renewable generation assets, owning several wind farms and focusing on reducing carbon emissions by over 60% compared to 2005 levels [16][17] - Portland General Electric is planning significant renewable asset additions to meet growing industrial load driven by high-tech and data center customers [12]

Core Viewpoint - The comparison between Portland General Electric (POR) and Paranaense de Energia (ELP) indicates that POR currently offers better value for investors based on various financial metrics and rankings [1][3][7]. Valuation Metrics - Portland General Electric has a forward P/E ratio of 12.70, while Paranaense de Energia has a significantly higher forward P/E of 67.69 [5]. - The PEG ratio for POR is 3.69, compared to ELP's PEG ratio of 7.13, suggesting that POR is more reasonably priced relative to its expected earnings growth [5]. - The P/B ratio for POR is 1.16, while ELP's P/B ratio is slightly higher at 1.17, indicating that both stocks are similarly valued in terms of market value versus book value [6]. Zacks Rank and Value Grades - Portland General Electric holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, whereas Paranaense de Energia has a Zacks Rank of 4 (Sell) [3]. - Based on the overall analysis, POR has a Value grade of B, while ELP has a Value grade of C, further supporting the conclusion that POR is the more attractive investment option [6].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Ratings - **Edison International (EIX)**: - Dividend Yield: 5.85% - Barclays analyst Nicholas Campanella maintained an Overweight rating and raised the price target from $64 to $67 on May 1, 2025, with an accuracy rate of 65% [7] - Morgan Stanley analyst David Arcaro maintained an Underweight rating and increased the price target from $48 to $52 on March 20, 2025, with an accuracy rate of 68% [7] - Recent News: Mixed quarterly results reported on April 29 [7] - **Portland General Electric Company (POR)**: - Dividend Yield: 4.93% - Barclays analyst Nicholas Campanella maintained an Equal-Weight rating and cut the price target from $48 to $45 on April 30, 2025, with an accuracy rate of 65% [7] - Wells Fargo analyst Sarah Akers maintained an Equal-Weight rating and slashed the price target from $46 to $44 on April 28, 2025, with an accuracy rate of 70% [7] - Recent News: Downbeat quarterly results reported on April 25 [7] - **Northwest Natural Holding Company (NWN)**: - Dividend Yield: 4.75% - Wells Fargo analyst Sarah Akers maintained an Equal-Weight rating and raised the price target from $45 to $47 on May 7, 2025, with an accuracy rate of 70% [7] - Janney Montgomery analyst Michael Gaugler upgraded the stock from Neutral to Buy and boosted the price target from $36 to $43 on August 5, 2024, with an accuracy rate of 73% [7] - Recent News: Better-than-expected quarterly results reported on May 6 [7]