Company: POR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000784977-25-000172
Chunk: 165

Company: PORTLAND GENERAL ELECTRIC CO /OR/
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 165
---
 %$266 $275 (3)%

* Includes an allowance for borrowed funds used during construction of $2 million and $4 million for the three months ended September 30, 2025 and 2024, respectively, and $9 million and $12 million for the nine months ended September 30, 2025 and 2024, respectively.

Net income for the three months ended September 30, 2025 increased $9 million, or 10%, compared to the same period of 2024. Retail revenues increased as a result of both price changes as authorized by the OPUC and higher customer demand. Purchased power and fuel declined slightly, reflecting a reduction in overall system load, while  average variable power costs per MWh showed little change. Generation, transmission and distribution expenses were down reflecting the recognition of an earnings test deferral release recorded in the comparative period in 2024 that is not recurring. Although Administrative and General expense decreased slightly compared to 2024, a total of $10 million in business transformation and optimization expenses was recorded in 2025 of which $7 million is reflected in Administrative and General Expense with the balance being in Generation, transmission and distribution expense and Depreciation and amortization expense. Increases in Depreciation and amortization expense, driven by higher depreciable asset balances, and Interest expense, net, due to higher long-term debt balances, were largely 

57

anticipated and somewhat offset in net income by increased revenues. Income tax expense was up primarily due to lower PTC benefits.

Net income for the nine months ended September 30, 2025 decreased $10 million, or 4%, compared to the same period of 2024. Retail revenues increased primarily due to price changes to cover anticipated higher NVPC and general cost increases, as authorized by the OPUC. Wholesale revenues have decreased, driven by a decline in the average price of wholesale deliveries, although lower sales volumes also contributed to the decline. The reduction in Purchased power and fuel reflects lower average variable power costs per MWh and lower overall system load being mostly offset by the reduced costs in 2024 due to the deferral under the RCE mechanism that did not recur. Generation, transmission and distribution expenses were relatively unchanged in total although 2024 included the recognition of an earnings test deferral release recorded in the comparative period in 2024 that is not recurring. While total Administrative and General expense remained fairly flat compared to 2024, a total of $25 million