BALANCE SHEET COMPONENTS

Accounts Receivable, Net

Accounts receivable is net of an allowance for uncollectible accounts of $6 million as of June 30, 2012 and December 31, 2011.

The activity in the allowance for uncollectible accounts is as follows (in millions):



	Six Months Ended June 30,
	2012			2011
Balance as of beginning of period	$	6		$	5
Provision, net	4			3
Amounts written off, less recoveries	(4		)	(3		)
Balance as of end of period	$	6		$	5

Inventories

PGE inventories, which are recorded at average cost, consist primarily of materials and supplies for use in operations, maintenance and capital activities and fuel for use in generating plants. Fuel inventories include natural gas, coal, and oil. Periodically, the Company assesses the realizability of inventory for purposes of determining that inventory is recorded at the lower of average cost or market.

Electric Utility Plant, Net

Electric utility plant, net consists of the following (in millions):



	June 30, 2012			December 31, 2011
Electric utility plant	$	6,663		$	6,596
Construction work in progress	151			120
Total cost	6,814			6,716
Less: accumulated depreciation and amortization	(2,497		)	(2,431		)
Electric utility plant, net	$	4,317		$	4,285

Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $164 million and $153 million as of June 30, 2012 and December 31, 2011, respectively. Amortization expense related to intangible assets was $6 million and $5 million for the three months ended June 30, 2012 and 2011, respectively, and $11 million and $9 million for the six months ended June 30, 2012 and 2011, respectively.

In January 2012, PGE completed construction of a $10 million, 1.75 MW solar powered electric generating facility, which was sold to, and simultaneously leased-back from, a financial institution. The Company operates the facility and receives 100% of the power generated by the facility.

Regulatory Assets and Liabilities

Regulatory assets and liabilities consist of the following (in millions):



	June 30, 2012				December 31, 2011
	Current		Noncurrent		Current		Noncurrent
Regulatory assets:
Price risk management	$	185	$	119	$	194	$	172
Pension and other postretirement plans	—		285		—		295
Deferred income taxes	—		82		—		87
Deferred broker settlements	7		—		11		—
Debt reacquisition costs	—		25		—		28
Other	5		17		11		12
Total regulatory assets	$	197	$	528	$	216	$	594
Regulatory liabilities:
Asset retirement removal costs	$	—	$	664	$	—	$	637
Asset retirement obligations	—		38		—		36
Power cost adjustment mechanism	—		14		—		10
Other	4		39		6		37
Total regulatory liabilities	$	4	$	755	$	6	$	720

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following (in millions):



	June 30, 2012		December 31, 2011
Accrued employee compensation and benefits	$	39	$	44
Accrued interest payable	24		24
Accrued dividends payable	21		21
Other	73		68
Total accrued expenses and other current liabilities	$	157	$	157

Credit Facilities

PGE has the following unsecured revolving credit facilities as of June 30, 2012:


•	A $370 million syndicated credit facility, of which $10 million terminated in July 2012 and $360 million is scheduled to terminate in July 2013; and


•	A $300 million syndicated credit facility, which is scheduled to terminate in December 2016.

Pursuant to the individual terms of the agreements, both credit facilities may be used for general corporate purposes and as backup for commercial paper borrowings, and also permit the issuance of standby letters of credit. PGE may borrow for one, two, three, or six months at a fixed interest rate established at the time of the borrowing, or at a variable interest rate for any period up to the then remaining term of the applicable credit facility. Both credit facilities require annual fees based on PGE’s unsecured credit ratings, and contain customary covenants and default provisions, including a requirement that limits consolidated indebtedness, as defined in the agreements, to 65% of total capitalization. As of June 30, 2012, PGE was in compliance with this requirement with a 50.5% debt to total capital ratio.

The Company has a commercial paper program under which it may issue commercial paper for terms of up to 270 days, limited to the unused amount of credit under the credit facilities.

Pursuant to an order issued by the Federal Energy Regulatory Commission (FERC), the Company is authorized to issue short-term debt up to $700 million through February 6, 2014. The authorization provides that if utility assets financed by unsecured debt are divested, then a proportionate share of the unsecured debt must also be divested.

PGE classifies borrowings and outstanding commercial paper under the revolving credit facility as Short-term debt on the condensed consolidated balance sheets. As of June 30, 2012, PGE had no borrowings or commercial paper outstanding, $115 million of letters of credit issued, and aggregate unused credit available of $555 million under the credit facilities.

Pension and Other Postretirement Benefits

Components of net periodic benefit cost are as follows for the three and six months ended June 30 (in millions):



	Three Months Ended June 30,
	Defined Benefit Pension Plan						Other Postretirement Benefits				Non-Qualified Benefit Plans
	2012			2011			2012		2011		2012		2011
Service cost	$	3		$	3		$	—	$	—	$	—	$	—
Interest cost	8			7			1		1		—		—
Expected return on plan assets	(10		)	(10		)	—		—		—		—
Amortization of net actuarial loss	4			2			—		—		—		—
Net periodic benefit cost	$	5		$	2		$	1	$	1	$	—	$	—



	Six Months Ended June 30,
	Defined Benefit Pension Plan						Other Postretirement Benefits				Non-Qualified Benefit Plans
	2012			2011			2012		2011		2012		2011
Service cost	$	6		$	6		$	1	$	1	$	—	$	—
Interest cost	16			14			2		2		1		1
Expected return on plan assets	(20		)	(20		)	—		—		—		—
Amortization of net actuarial loss	8			4			—		—		—		—
Net periodic benefit cost	$	10		$	4		$	3	$	3	$	1	$	1