BALANCE SHEET COMPONENTS

Accounts Receivable, Net

Accounts receivable is net of an allowance for uncollectible accounts of $7 million and $6 million as of March 31, 2015 and December 31, 2014, respectively.

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



	Three Months Ended March 31,
	2015			2014
Balance as of beginning of period	$	6		$	6
Provision, net	2			2
Amounts written off, less recoveries	(1		)	(1		)
Balance as of end of period	$	7		$	7

Inventories

PGE’s 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.

Other Current Assets

Other current assets consist of the following (in millions):



	March 31, 2015		December 31, 2014
Prepaid expenses	$	58	$	39
Current deferred income tax asset	33		33
Margin deposits	20		11
Accrued sales tax refund related to Tucannon River Wind Farm	11		23
Assets from price risk management activities	7		6
Other	4		3
Other current assets	$	133	$	115

Electric Utility Plant, Net

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



	March 31, 2015			December 31, 2014
Electric utility plant	$	8,251		$	8,161
Construction work-in-progress	478			417
Total cost	8,729			8,578
Less: accumulated depreciation and amortization	(2,940		)	(2,899		)
Electric utility plant, net	$	5,789		$	5,679

Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $200 million and $191 million as of March 31, 2015 and December 31, 2014, respectively. Amortization expense related to intangible assets was $9 million and $6 million for the three months ended March 31, 2015 and 2014, respectively. The Company’s intangible assets primarily consist of computer software development and hydro licensing costs.

Regulatory Assets and Liabilities

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



	March 31, 2015					December 31, 2014
	Current			Noncurrent		Current			Noncurrent
Regulatory assets:
Price risk management	$	100		$	174	$	100		$	121
Pension and other postretirement plans	—			242		—			247
Deferred income taxes	—			87		—			86
Debt issuance costs	—			15		—			15
Deferred capital projects	14			—		19			—
Other	11			27		14			25
Total regulatory assets	$	125		$	545	$	133		$	494
Regulatory liabilities:
Asset retirement removal costs	$	—		$	813	$	—		$	804
Trojan decommissioning activities	22			29		23			34
Asset retirement obligations	—			40		—			39
Other	37			29		37			29
Total regulatory liabilities	$	59	^*	$	911	$	60	^*	$	906


*	Included in Accrued expenses and other current liabilities in the condensed consolidated balance sheets.

Accrued Expenses and Other Current Liabilities

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



	March 31, 2015		December 31, 2014
Regulatory liabilities—current	$	59	$	60
Accrued employee compensation and benefits	39		51
Accrued interest payable	40		26
Accrued dividends payable	22		23
Accrued taxes payable	26		22
Other	57		54
Total accrued expenses and other current liabilities	$	243	$	236

Credit Facilities

During the first quarter of 2015, PGE determined that a $500 million aggregate revolving credit facility capacity would be sufficient to meet its liquidity needs and accordingly, in March 2015, reduced its aggregate revolving credit capacity from $700 million to $500 million. As of March 31, 2015, PGE has a $500 million revolving credit facility, which is scheduled to expire in November 2019.

Pursuant to the terms of the agreement, the revolving credit facility 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 credit facility. The revolving credit facility contains provisions for two, one-year extensions subject to approval by the banks, requires annual fees based on PGE’s unsecured credit ratings, and contains customary covenants and default provisions, including a requirement that limits consolidated indebtedness, as defined in the agreement, to 65% of total capitalization. As of March 31, 2015, PGE was in compliance with this covenant with a 55.9% debt-to-total capital ratio.

PGE classifies any borrowings under the revolving credit facility and outstanding commercial paper as Short-term debt on the condensed consolidated balance sheets. As of March 31, 2015, PGE had no borrowings or commercial paper outstanding, $46 million of letters of credit issued, and an aggregate available capacity under the credit facility of $454 million.

In addition, PGE has two $30 million letter of credit facilities, under which the Company can request letters of credit for original terms not to exceed one year. The issuance of such letters of credit are subject to the approval of the issuing institution. As of March 31, 2015, $58 million of letters of credit had been issued under these facilities.

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 revolving credit facility.

Pursuant to an order issued by the Federal Energy Regulatory Commission (FERC), the Company is authorized to issue short-term debt up to $900 million through February 6, 2016. 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.

Long-term Debt

During the first quarter of 2015, PGE had the following long-term debt transactions:


•	Issued $75 million of 3.55% Series of First Mortgage Bonds (FMBs) due 2030 in January;


•	Repaid $70 million of 3.46% Series FMBs in January; and


•	Repaid $50 million of long-term bank loans in March.

On April 22, 2015, PGE agreed with certain institutional investors to issue and sell $70 million of new FMBs under a private placement. The FMBs will have an interest rate of 3.50% and mature in 2035. The transaction is expected to close and fund on May 19, 2015. In addition, on May 21, 2015, the Company will redeem its $67 million of 6.80% Series FMBs, due January 15, 2016.

Pension and Other Postretirement Benefits

Components of net periodic benefit cost are as follows for the three months ended March 31 (in millions):



	Defined Benefit Pension Plan						Other Postretirement Benefits
	2015			2014			2015		2014
Service cost	$	4		$	4		$	1	$	—
Interest cost	8			9			1		1
Expected return on plan assets	(10		)	(10		)	—		—
Amortization of net actuarial loss	5			4			—		—
Net periodic benefit cost	$	7		$	7		$	2	$	1