Company: POR
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000784977-25-000012
Chunk: 129

Company: PORTLAND GENERAL ELECTRIC CO /OR/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 129
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 investment grade by Moody’s and S&P, with current credit ratings and outlook as follows:

 Moody’s  S&PIssuer credit ratingA3BBB+Senior secured debtA1ACommercial paperP-2A-2OutlookNegativeStable

In June 2024, Moody’s revised the Company’s outlook from Stable to Negative. This change is not expected to have a material impact on the Company’s liquidity or collateral obligations.

In the event Moody’s and/or S&P reduce their credit rating on PGE’s unsecured debt below investment grade, the Company could be subject to higher fees on its revolving credit facility. The Company could also be subject to requests by certain of its wholesale, commodity, and transmission counterparties to post additional performance assurance collateral in connection with its price risk management activities. The performance assurance collateral can be in the form of cash deposits or letters of credit, depending on the terms of the underlying agreements, and are based on the contract terms and commodity prices and can vary from period to period. Cash deposits provided as collateral are classified as Margin deposits in PGE’s consolidated balance sheets, while any letters of credit issued are not reflected in the Company’s consolidated balance sheets.

As of December 31, 2024, PGE had posted $143 million of collateral with these counterparties, consisting of $125 million in cash and $18 million in bank letters of credit. Based on the Company’s energy portfolio, estimates of energy market prices, and the level of collateral outstanding as of December 31, 2024, the amount of additional collateral that could be requested upon a single agency downgrade to below investment grade is $92 million and increases to $94 million by December 31, 2025 and decreases to $44 million by December 31, 2026. The amount of additional collateral that could be requested upon a dual agency downgrade to below investment grade as of 

66

December 31, 2024 is $187 million and decreases to $185 million by December 31, 2025 and $102 million by December 31, 2026.

PGE’s financing arrangements do not contain ratings triggers that would result in the acceleration of required interest and principal payments in the event of a ratings downgrade. However, the cost of borrowing and issuing letters of credit under the credit facilities would increase.

The Indenture securing PGE’s outstanding FMBs constitutes a direct first mortgage lien on substantially all regulated utility property, other than expressly excepted property. Interest is payable