Company: POR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000784977-25-000172
Chunk: 66

Company: PORTLAND GENERAL ELECTRIC CO /OR/
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 without application of an earnings test, with the remaining 20% flowing through operating expenses and subject to the existing PCAM. As of September 30, 2025, PGE’s deferred balance related to RCEs was $89 million, which includes $87 million related to multiple qualified RCEs deferred during 2024, the most significant of which was related to the January storm event, and $2 million related to RCEs deferred during the first nine months of 2025. PGE filed the results of the 2024 PCAM with the OPUC on July 1, 2025, in Docket UE 457, which included a request for $86 million, without interest, in RCE costs incurred in 2024, initiating a regulatory review process, The OPUC has adopted a procedural schedule for the regulatory review process that expects an order in March 2026. Any resulting refund or collection impacting customer prices is expected to be effective April 1, 2026. PGE believes the deferred amounts as of September 30, 2025 are probable of recovery. The OPUC has significant discretion in making the final determination of recovery. The OPUC’s conclusion of overall prudence could result in a portion, or all, of PGE’s deferrals being disallowed for recovery. Such disallowance would be recognized as a charge to earnings. 

The Company requested an extension of the RCE mechanism for one year to extend it through 2026, as market conditions that led to the need for an RCE mechanism have persisted and, in some cases, intensified since the OPUC’s approval of the RCE at the end of 2023. The ongoing volatility in energy markets, increasing frequency of severe weather, and the continued transition to intermittent renewable energy sources, underscores the importance of maintaining this protective measure for both the Company and its customers.

Power costs—Pursuant to the AUT process, PGE annually files an estimate of power costs for the following year. As approved by the OPUC, the 2025 AUT included a final increase in power costs for 2025, and a corresponding increase in net variable power costs (NVPC), of $72 million from 2024 levels, which were reflected in customer prices effective January 1, 2025.

Renewable recovery framework—As previously authorized by the OPUC, the RAC is a primary method available to recover costs associated with renewable resources and the inclusion of prudent costs of energy storage projects associated with renewables