Company: POR
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000784977-25-000012
Chunk: 109

Company: PORTLAND GENERAL ELECTRIC CO /OR/
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 109
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 with the OPUC under Docket UM 2190 for emergency restoration costs related to the January storm. As of December 31, 2024, PGE had deferred $46 million, including interest, as a regulatory asset for costs associated with repairing damage to transmission and distribution systems and restoring power to customers. 

As of September 30, 2024, PGE's forecasted preliminary regulated return on equity for the full-year 2024 exceeded the OPUC's authorized rate of return. Consequently, under the earnings test the Company's third quarter results included a $17 million decrease to the deferral and a corresponding charge to earnings. However, as of December 31, 2024, PGE's preliminary return on equity, based on actual results, did not exceed the OPUC's authorized rate of return. As a result, the $17 million reduction recorded in the third quarter has been reversed as of December 31, 2024.

PGE believes that the full amount of the deferral is probable of recovery and plans to file with the OPUC in mid-2025, seeking recovery to begin during 2026. The OPUC has significant discretion in making the final determination of recovery based on its determination of prudency and interpretation of the earnings test application, either of which could result in all or a portion of the deferral being disallowed. Any disallowance would be a charge to earnings, which could be material to the Company’s financial condition, results of operations, or cash flows. For further information, see “January 2024 storm and damage” in Note 7, Regulatory Assets and Liabilities, in the Notes to Consolidated Financial Statements in Item 8.—“Financial Statements and Supplementary Data.” 

RCE—Under the RCE mechanism, PGE is allowed to pursue recovery of 80% of costs for RCEs above amounts forecasted in the Company’s AUT, without application of an earnings test, with the remaining 20% flowing through operating expenses and subject to the existing PCAM. As of December 31, 2024, PGE’s deferred balance related to RCEs was $90 million, which includes costs from multiple qualified RCEs during the year, the most significant of which was related to the January storm event. PGE files the results of the PCAM annually with the OPUC no later than July 1, initiating a regulatory review process that typically results in a final determination and order from the 

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OPUC by the end