8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2018

PORTLAND GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Oregon	001-5532-99	93-0256820
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer                Identification No.)

121 SW Salmon Street, Portland, Oregon 97204

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (503) 464-8000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Item 2.02    Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02.

On July 27, 2018, Portland General Electric Company (PGE or the Company) issued a press release announcing its financial results for the three and six month periods ended June 30, 2018. The press release is furnished herewith as Exhibit 99.1 to this Report.

Item 7.01    Regulation FD Disclosure.

The following information is furnished pursuant to Item 7.01.

At 11:00 a.m. ET on Friday, July 27, 2018, the Company will hold its quarterly earnings call and webcast, and will use a slide presentation in conjunction with the earnings call. A copy of the slide presentation is furnished herewith as Exhibit 99.2 to this Report.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
99.1	Press Release issued by Portland General Electric Company dated July 27, 2018.
99.2	Portland General Electric Company Second Quarter 2018 Slides dated July 27, 2018.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			PORTLAND GENERAL ELECTRIC COMPANY
			(Registrant)
Date:	July 26, 2018	By:	/s/ James F. Lobdell
			James F. Lobdell
			Senior Vice President of Finance, Chief Financial Officer and Treasurer

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EX-99.1

Exhibit 99.1

	Portland General Electric One World Trade Center 121 S.W. Salmon Street Portland, Oregon 97204 News Release
July 27, 2018
Media Contact:	Investor Contact:
Melanie Erdmann	Chris Liddle
Corporate Communications	Investor Relations
Phone: 503-464-8790	Phone: 503-464-7458

Portland General Electric announces second quarter 2018 results

• Settlement of Carty Generating Station litigation allows for full offset of incremental construction costs

• Increasing guidance from $2.10-$2.25 to $2.25-$2.40 per diluted share

• SP Global upgraded PGE’s issuer credit rating from BBB to BBB+

PORTLAND, Ore. - Portland General Electric Company (NYSE: POR)today reported net income of $46 million, or 51 cents per diluted share, for the second quarter of 2018. This compares with net income of $32 million, or 36 cents per diluted share, for the second quarter of 2017.

“I’m pleased to put the Carty litigation behind us and recognize the increase in our credit ratings,” said Maria Pope, president and CEO. “In addition, we’re making progress in bringing customers new renewable resources and programs, including our renewable RFP and green tariff.”

Q2 2018 earnings compared with Q2 2017 earnings

Lower natural gas prices and reduced plant maintenance expenses drove the increase in second quarter earnings per diluted share for 2018 in comparison with second quarter of 2017. Additionally, a decrease in distribution-related expenses due to the absence of major storms in 2018 and an increase in production tax credits was partially offset by gross margin due to temperatures that were warmer than prior year as well as increased administrative expenses.

Company update

Carty Generating Station

On July 16, 2018, PGE entered into a settlement with the other parties to resolve all claims relating to Carty construction between PGE and each of the Abeinsa EPC LLC; Abener Construction Services, LLC; Teyma Construction USA, LLC; and Abeinsa Abener Teyma General Partnership (collectively, the Contractor); Abengoa S.A., Liberty Mutual Insurance Company and Zurich American Insurance Company (together, the Sureties). Under the terms of the settlement, (i) the Sureties have paid $130 million to PGE, and (ii) the Contractor, Abengoa S.A., and the Sureties have released all claims against PGE arising out of the Carty construction, and in return, PGE has released all such claims against the Contractor, Abengoa S.A., and the Sureties.

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2019 General Rate Case

On February 15, 2018 the 2019 General Rate Case was filed, and parties are currently in the testimony phase. Several settlement discussions have been held with parties and have resulted in agreement on all power-cost related matters as well as some non-power-cost items, such as cost of capital. Stipulations regarding these agreements are in progress and will become available in the coming weeks.

PGE filed reply testimony on the remaining items on July 13, 2018, and held additional settlement discussions on July 23, 2018. A final order is expected from the Oregon Public Utility Commission (OPUC) by the end of the year, with a price change effective January 1, 2019.

Renewable Request for Proposal (RFP)

PGE issued an RFP on May 22, 2018 for the 100 average megawatts of renewable resources needed as identified in its 2016 Integrated Resource Plan. All submissions were due on June 15, 2018. As planned, PGE submitted a self-build benchmark proposal for a greenfield wind project. The bids are currently under review with oversight from an independent third-party evaluator appointed by the OPUC to ensure that all bids are evaluated consistently and impartially. A shortlist will be established and submitted to the OPUC in October with final contract execution expected by December 31, 2018.

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Second quarter operating results

Earnings Reconciliation of Q2 2017 to Q2 2018
(in $millions, except EPS)	Pre-Tax Income			Net Income*			Diluted EPS **
Reported Q2 2017	$	42		$	32		$	0.36
Revenue
Electric retail price change	8			6			0.06
Electric retail volume change	(6		)	(4		)	(0.05		)
Change in decoupling deferral	(4		)	(3		)	(0.03		)
Electric wholesale price and volume change	6			4			0.05
Other Items	(4		)	(3		)	(0.03		)
Change in Revenue	—			—			—
Power Cost
Change in average power cost	21			15			0.17
Change purchased power and generation	(7		)	(5		)	(0.06		)
Change in Power Costs	14			10			0.11
O&M
Generation, transmission, distribution	10			7			0.08
Administrative and general	(5		)	(4		)	(0.04		)
Change in O&M	5			3			0.04
Other Items
Depreciation and amortization	(7		)	(5		)	(0.05		)
Other Items	(2		)	(1		)	(0.02		)
Adjustment for effective vs statutory tax rate				7			0.07
Change in Other Items	(9		)	1			—
Reported Q2 2018	$	52		$	46		$	0.51

* After tax adjustments based on PGE’s statutory tax rate of 27.5%

** Some values may not foot due to rounding

The following table indicates the number of heating and cooling degree-days for the three months ended June 30, 2018 and 2017, along with 15-year averages based on weather data provided by the National Weather Service, as measured at Portland International Airport:

	Heating Degree-days			Cooling Degree-days
	2018	2017	Avg.	2018	2017	Avg.
April	338	421	373	9	—	2
May	89	196	204	34	41	19
June	44	69	79	73	88	64
Totals	471	686	656	116	129	85
(Decrease)/increase from the 15-year average	(28)%	5%		36%	52%

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2018 earnings guidance

PGE is revising its 2018 guidance from $2.10-$2.25 to $2.25-$2.40 per diluted share due to better-than-expected weather when initial guidance was launched and settlement of Carty litigation. The guidance is based on the following assumptions:

• $0.12 per diluted share attributed to Carty settlement

• Flat retail deliveries, weather-adjusted

• Normal hydro conditions for the remainder of the year, based on the current hydro forecast

• Wind generation for the remainder of the year, based on five years of historical levels or forecast studies when historical data is not available

• Normal thermal plant operations for the remainder of the year

• Depreciation and amortization expense between $365 and $385 million

• Operating and maintenance costs between $565 and $585 million

Second Quarter 2018 earnings call and webcast — July 27, 2018

PGE will host a conference call with financial analysts and investors on Friday, July 27, 2018, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Friday, July 27, 2018, through Friday, August 3, 2018.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of Finance, CFO, and treasurer; and Chris Liddle, director, Investor Relations and Treasury, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and comprehensive income, condensed consolidated balance sheets, and condensed consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

# # #

About Portland General Electric Company

Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon, serving approximately 883,000 customers in 51 cities. For more than 125 years, PGE has been delivering safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. With approximately 2,900 employees across the state, PGE is committed to helping its customers and the communities it serves build a clean energy future. For more information, visit PortlandGeneral.com/CleanVision.

Safe Harbor Statement

Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions, wind conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking

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statements are subject to risks and uncertainties, including reductions in demand for electricity and the sale of excess energy during periods of low wholesale market prices; operational risks relating to the company’s generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects which could result in the company’s inability to recover project costs; the outcome of various legal and regulatory proceedings; and general economic and financial market conditions. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the Company on the date hereof and such statements speak only as of the date hereof. The Company assumes no obligation to update any such forward-looking statement. Prospective investors should also review the risks and uncertainties listed in the company’s most recent annual report on form 10-K and the Company’s reports on forms 8-K and 10-Q filed with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time.

POR-F

Source: Portland General Electric Company

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(Dollars in millions, except per share amounts)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018			2017
Revenues:
Revenues, net	$	449	$	449	$	944		$	979
Alternative revenue programs, net of amortization	—		—		(2		)	—
Total revenues	449		449		942			979
Operating expenses:
Purchased power and fuel	104		118		234			259
Generation, transmission and distribution	71		81		140			162
Administrative and other	70		64		139			131
Depreciation and amortization	93		86		185			170
Taxes other than income taxes	31		31		64			64
Total operating expenses	369		380		762			786
Income from operations	80		69		180			193
Interest expense, net	31		30		62			60
Other income:
Allowance for equity funds used during construction	2		3		6			5
Miscellaneous income (expense), net	1		—		—			—
Other income, net	3		3		6			5
Income before income tax expense	52		42		124			138
Income tax expense	6		10		14			33
Net income	46		32		110			105
Other comprehensive income	—		1		—			—
Comprehensive income	$	46	$	33	$	110		$	105
Weighted-average shares outstanding—basic and diluted (in thousands)	89,215		89,063		89,188			89,033
Earnings per share—basic and diluted	$	0.51	$	0.36	$	1.23		$	1.18
Dividends declared per common share	$	0.3625	$	0.3400	$	0.7025		$	0.6600

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)

	June 30, 2018		December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	48	$	39
Accounts receivable, net	162		168
Unbilled revenues	86		106
Inventories	85		78
Regulatory assets—current	56		62
Other current assets	56		73
Total current assets	493		526
Electric utility plant, net	6,840		6,741
Regulatory assets—noncurrent	441		438
Nuclear decommissioning trust	42		42
Non-qualified benefit plan trust	38		37
Other noncurrent assets	55		54
Total assets	$	7,909	$	7,838

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS, continued

(Dollars in millions)

(Unaudited)

	June 30, 2018			December 31, 2017
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	103		132
Liabilities from price risk management activities—current	51			59
Current Portion of long-term debt	300			—
Accrued expenses and other current liabilities	225			241
Total current liabilities	679			432
Long-term debt, net of current portion	2,126			2,426
Regulatory liabilities—noncurrent	1,348			1,288
Deferred income taxes	378			376
Unfunded status of pension and postretirement plans	280			284
Liabilities from price risk management activities—noncurrent	136			151
Asset retirement obligations	192			167
Non-qualified benefit plan liabilities	107			106
Other noncurrent liabilities	198			192
Total liabilities	5,444			5,422
Equity:
Portland General Electric Company shareholders’ equity:
Preferred stock, no par value, 30,000,000 shares authorized; none issued and outstanding as of June 30, 2018 and December 31, 2017	—			—
Common stock, no par value, 160,000,000 shares authorized; 89,238,206 and 89,114,265 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	1,208			1,207
Accumulated other comprehensive loss	(8		)	(8		)
Retained earnings	1,265			1,217
Total equity	2,465			2,416
Total liabilities and equity	$	7,909		$	7,838

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Six Months Ended June 30,
	2018			2017
Cash flows from operating activities:
Net income	$	110		$	105
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	185			170
Deferred income taxes	6			20
Pension and other postretirement benefits	13			13
Allowance for equity funds used during construction	(6		)	(5		)
Decoupling mechanism deferrals, net of amortization	2			(15		)
Deferral of net benefits due to Tax Reform	25			—
Other non-cash income and expenses, net	4			16
Changes in working capital:
Decrease in accounts receivable and unbilled revenues	26			55
(Increase) in inventories	(7		)	—
Decrease in margin deposits, net	4			7
(Decrease) in accounts payable and accrued liabilities	(20		)	(29		)
Other working capital items, net	13			11
Other, net	(17		)	(15		)
Net cash provided by operating activities	338			333
Cash flows from investing activities:
Capital expenditures	(266		)	(245		)
Sales of Nuclear decommissioning trust securities	6			11
Purchases of Nuclear decommissioning trust securities	(5		)	(9		)
Other, net	—			(2		)
Net cash used in investing activities	(265		)	(245		)
Cash flows from financing activities:
Dividends paid	(61		)	(57		)
Other	(3		)	(4		)
Net cash used in financing activities	(64		)	(61		)
Increase in cash and cash equivalents	9			27
Cash and cash equivalents, beginning of period	39			6
Cash and cash equivalents, end of period	$	48		$	33
Supplemental cash flow information is as follows:
Cash paid for interest, net of amounts capitalized	$	58		$	55
Cash paid for income taxes	10			13
Non-cash investing and financing activities
Assets obtained under leasing arrangements	12			55

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS

(Unaudited)

	Three Months Ended June 30,
	2018					2017
Revenues (dollars in millions):
Retail:
Residential	$	207		46	%	$	203	45	%
Commercial	162			36		158		35
Industrial	39			9		49		11
Direct Access	13			3		9		2
Subtotal	421			94		419		93
Alternative revenue programs, net of amortization	—			—		—		—
Other accrued (deferred) revenues, net	(10		)	(2	)	1		—
Total retail revenues	411			92		420		93
Wholesale revenues	24			5		16		4
Other operating revenues	14			3		13		3
Total revenues	$	449		100	%	$	449	100	%
Energy deliveries (MWh in thousands):
Retail:
Residential	1,612			29	%	1,626		31	%
Commercial	1,654			30		1,655		32
Industrial	717			13		749		14
Subtotal	3,983			72		4,030		77
Direct access:
Commercial	159			3		160		3
Industrial	342			6		359		7
Subtotal	501			9		519		10
Total retail energy deliveries	4,484			81		4,549		87
Wholesale energy deliveries	1,041			19		673		13
Total energy deliveries	5,525			100	%	5,222		100	%
Average number of retail customers:
Residential	771,608			88	%	761,443		88	%
Commercial	108,939			12		107,620		12
Industrial	205			—		196		—
Direct access	596			—		572		—
Total	881,348			100	%	869,831		100	%

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS, continued

(Unaudited)

	Three Months Ended June 30,
	2018				2017
Sources of energy (MWh in thousands):
Generation:
Thermal:
Natural gas	828		16	%	237		5	%
Coal	421		8		256		5
Total thermal	1,249		24		493		10
Hydro	395		8		528		11
Wind	613		11		504		10
Total generation	2,257		43	%	1,525		31
Purchased power:
Term	2,384		45		2,815		57
Hydro	500		10		503		10
Wind	94		2		85		2
Total purchased power	2,978		57		3,403		69
Total system load	5,235		100	%	4,928		100	%
Less: wholesale sales	(1,041	)			(673	)
Retail load requirement	4,194				4,255

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EX-99.2

Exhibit 99.2 Portland General Electric Earnings Conference Call Second Quarter 2018

Cautionary Statement Information Current as of July 27, 2018 Except as expressly noted, the information in this presentation is current as of July 27, 2018 — the date on which PGE filed its quarterly report on Form 10-Q for the quarter ended June 30, 2018 — and should not be relied upon as being current as of any subsequent date. PGE undertakes no duty to update this presentation, except as may be required by law. Forward-Looking Statements Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include: statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including: reductions in demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the company’s generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; and general economic and financial market conditions. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company assumes no obligation to update any such forward-looking statement. Prospective investors should also review the risks and uncertainties listed in the company’s most recent annual report on form 10-K and the company’s reports on forms 8-K and 10-Q filed with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time. 2

Leadership Maria Pope Presenting President and Today CEO On Today's Call • Carty Generating Station settlement • Financial performance Jim Lobdell • Renewable Request for Proposal Senior VP • Earnings guidance of Finance, CFO and Treasurer • Financial update • 2019 General Rate Case 3

Second Quarter 2018 Earnings Results Q2 2018 Q2 2017 Net Income (millions) $46 $32 Diluted EPS $0.51 $0.36 $0.82 $0.72 $0.51 $1.02 - $1.17 $0.44 $0.48 $0.36 Q1 Q1 Q2 Q2 Q3-Q4Q3 Q4 Q1 Q2 Q3 Q4 2018E Diluted EPS 2017 Diluted EPS $2.25 - $2.40 $2.10 4

Renewable RFP May 2018 June 2018 October 2018 End of 2018 Final RFP issued Proposals received Short list to be Final contract submitted to OPUC execution expected • OPUC acknowledged 100 MWa renewable need identified in 2016 Integrated Resource Plan in December 2017 • Competitive Renewable RFP1 process includes oversight by independent evaluator and review by OPUC • PGE and its partner submitted a benchmark resource ▪ 300 MW nameplate capacity ▪ Qualifies for 100% Production Tax Credit (1) See docket UM 1892 on the OPUC website for details 5

Guidance and Assumptions • $0.12 per diluted share attributed to Carty settlement Revised • Retail deliveries flat to prior year, weather-adjusted 2018 EPS • Normal hydro conditions for the remainder of the year based Guidance: on the current hydro forecast • Wind generation for the remainder of the year based on 5 years of historical levels, or forecast studies when historical $2.25 data is not available to • Normal thermal plant operations for the remainder of the year $2.40 • Depreciation and amortization expense between $365 and $385 million • Operating and maintenance expense between $565 and $585 million • Assumes OPUC approval of the customer information and meter data management systems deferral application 6

Second Quarter Earnings Bridge Earnings per diluted share NVPC $0.06 Weather $(0.05) $0.03 $0.02 $0.51 $0.04 $0.05 $0.36 $0.01 Q2 2017 Gross Margin Plant Maintenance Distribution Cost PTC Other Q2 2018 7

2019 General Rate Case Key Drivers: Investments in the system to better serve customers and continue building a smarter, more resilient grid • Return on equity of 9.5% • Capital structure of 50% debt and 50% equity • Rate base of $4.86 billion • Customer price increase of approx. 4.8%, net of tax reform, effective Jan. 1, 2019 Timeline: • Regulatory review to occur throughout 2018 ▪ July: Filed reply testimony on remaining items ▪ August: Staff and intervenor rebuttal testimony ▪ September: PGE surrebuttal testimony • Final order expected from the commission by end of year 8

Capital Planning Current Capital Outlook $ Millions • Support for continued 800 customer growth 700 $648 • Upgrades and 600 replacement of aging 500 generation, transmission and distribution equipment 400 • Strengthening the grid for 300 $620 natural disasters, cyber $452 $457 $448 $450 200 and physical security 100 • New customer information systems and technology 0 tools 2018 2019 2020 2021 2022 Ongoing Capital Expenditures 1 Customer information system (1) Does not include any capital related to the 2016 IRP or energy storage proposal 9

Liquidity and Financing As of 06/30/2018 Ratings S&P Moody's Total Liquidity (in millions) Credit Facilities $ 720 Senior Secured A A1 Commercial Paper $ 0 Senior Unsecured BBB+ A3 Letters of Credit $ (64) Commercial Paper A-2 Prime-2 Cash $ 48 Outlook Positive Stable Available $ 704 Q1 2018 Q2 2018 Q3 2018 Q4 2018 up to $75 First Mortgage Bonds $0 $0 $0 million 10