Company: POR
Filing Date: 2025-07-25
Form Type: 10-Q
Source: 0000784977-25-000136
Chunk: 58

Company: PORTLAND GENERAL ELECTRIC CO /OR/
Filing Date: 2025-07-25
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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 United States Treasury and the Internal Revenue Service released extensive rules addressing credit transfer eligibility and application, including but not limited to, required registration, filing, and documentation for transferors and transferees to elect and claim a credit transfer. In December 2023, PGE received approval from the OPUC to transfer 2023 PTCs and record any difference in the full value and the discounted value in a property balancing account. Consistent with options available under the IRA, the Company transferred 2023 credits with the final transfer occurring in the first quarter of 2024. On April 17, 2024, PGE received approval from the OPUC to transfer 2024 and 2025 PTCs and record any difference between the full value and the discounted value in a property balancing account. On December 11, 2024, PGE received approval from the OPUC to transfer 2024 ITCs and return the net proceeds from the sale to PGE customers. PGE has entered into agreements to transfer 2023 through 2025 tax credits and transferred $13 million and $112 million, net of discounts, for cash proceeds in the first half of 2025 and in 2024, respectively. The Company expects to generate and transfer approximately $168 million in tax credits in 2025.

The Company believes the tax incentives in the IRA provide additional investment opportunities for PGE and provide benefits to customers. Increased capital expenditures in such investment opportunities would likely result in additional financing needs through debt and equity instruments.  

The One Big Beautiful Bill Act—On July 4, 2025, the President signed the OBBB, which materially amends or repeals several renewable-energy tax incentives that were originally enacted under the IRA. It is expected that projects currently under construction and intended to be placed in service this year will remain eligible for the PTC or ITC amounts already reflected in balances; therefore, no adjustment was recorded in the quarter ended June 30, 2025. The transferability of tax credits, as provided under the IRA, also remains in effect. A July 7, 2025 executive order has added uncertainty with respect to the specific actions necessary to demonstrate a project’s start of construction. Further clarity is expected from the Secretaries of the Treasury and the Interior as it relates to their findings and actions taken under this executive order within 45 days. 

The accelerated placed-in-service deadline for wind and solar, earlier phase-down for other technologies, and repeal of the permanent