Company: POR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000784977-25-000172
Chunk: 127

Company: PORTLAND GENERAL ELECTRIC CO /OR/
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 127
---
 September 30, 2025202420252024Federal statutory tax rate21.0 %21.0 %21.0 %21.0 %Federal tax credits*(15.4)(16.5)(12.5)(16.9)State and local taxes, net of federal tax benefit9.6 7.3 8.6 8.5 Flow-through depreciation and cost basis differences0.5 (0.6)(0.2)(0.6)Reversal of excess deferred income tax(1.1)(1.9)(1.7)(2.4)Executive compensation1.0 0.3 0.9 0.4 Other0.7 0.9 0.8 0.2 Effective tax rate16.3 %10.5 %16.9 %10.2 %* Federal tax credits primarily consist of production tax credits (PTCs) earned from Company-owned wind-powered generating facilities as well as amortization of investment tax credits (ITCs). PTCs are earned based on a per-kilowatt hour rate and, as a result, the annual amount of PTCs earned will vary based on weather conditions and availability of the facilities. PTCs are earned for 10 years from the in-service dates of the corresponding facilities. PGE’s PTC generation will end at various dates through 2033. The generation of production tax credits from Tucannon River Wind Farm ended in 2024. ITCs are deferred and amortized as a reduction of income tax expense over the estimated useful lives of the related properties.

32

Table of ContentsPORTLAND GENERAL ELECTRIC COMPANYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, continued(Unaudited)

CarryforwardsFederal tax credit carryforwards as of September 30, 2025 and December 31, 2024 were $85 million and $69 million, respectively. These credits primarily consist of PTCs and ITCs, which will expire at various dates through 2045. PGE included anticipated proceeds from the sale of tax credits in determining the need for a valuation allowance. PGE believes that it is more likely than not that its deferred income tax assets as of September 30, 2025 will be realized, however a valuation allowance has been recorded for the expected discount on the sale of tax credits. The valuation allowance as of September 30