BALANCE SHEET COMPONENTS

Inventories

PGE’s inventories, which are recorded at average cost, consist primarily of materials and supplies for use in operations, maintenance, and capital activities, as well as fuel, which includes natural gas, coal, and oil for use in the Company’s generating plants. Periodically, the Company assesses inventory for purposes of determining that inventories are recorded at the lower of average cost or net realizable value.

Other Current Assets

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



	March 31, 2019		December 31, 2018
Prepaid expenses	$	60	$	54
Assets from price risk management activities	33		20
Margin deposits	15		16
Other current assets	$	108	$	90

Electric Utility Plant, Net

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



	March 31, 2019			December 31, 2018
Electric utility plant	$	10,416		$	10,344
Construction work-in-progress	200			346
Total cost	10,616			10,690
Less: accumulated depreciation and amortization	(3,869		)	(3,803		)
Electric utility plant, net	$	6,747		$	6,887

Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $318 million and $302 million as of March 31, 2019 and December 31, 2018, respectively. Amortization expense related to intangible assets was $16 million for the three months ended March 31, 2019 and $13 million for the three months ended March 31, 2018. 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, 2019					December 31, 2018
	Current			Noncurrent		Current			Noncurrent
Regulatory assets:
Price risk management	$	—		$	74	$	32		$	99
Pension and other postretirement plans	—			219		—			222
Debt issuance costs	—			20		—			16
Trojan decommissioning activities	—			25		—			26
Other	21			42		29			38
Total regulatory assets	$	21		$	380	$	61		$	401
Regulatory liabilities:
Asset retirement removal costs	$	—		$	991	$	—		$	979
Deferred income taxes	—			266		—			267
Trojan decommissioning activities	2			—		1			—
Asset retirement obligations	—			53		—			53
Tax Reform Deferral⁽¹⁾	23			16		23			22
Other	16			30		12			34
Total regulatory liabilities	$	41	⁽²⁾	$	1,356	$	36	⁽²⁾	$	1,355

(1) Related to the deferral of the 2018 net tax benefits due to the change in corporate tax rate under TCJA, including interest.

(2) 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, 2019		December 31, 2018
Accrued employee compensation and benefits	$	42	$	66
Accrued taxes payable	37		34
Accrued interest payable	44		27
Accrued dividends payable	33		34
Regulatory liabilities—current	41		36
Other	66		71
Total accrued expenses and other current liabilities	$	263	$	268

Credit Facilities

As of December 31, 2018, PGE had a $500 million revolving credit facility scheduled to expire in November 2021. On January 16, 2019, PGE executed an amendment to the credit facility extending the termination date to November 14, 2022 and allowing for unlimited extensions, provided that lenders with a pro-rata share of more than 50% approve the extension request. Pursuant to the terms of the agreement, the revolving credit facility may be used for general corporate purposes, as backup for commercial paper borrowings, and to 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. The revolving credit facility contains a provision that 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, 2019, PGE was in compliance with this covenant with a 49.3% 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 revolving credit facility.

PGE classifies any borrowings under the revolving credit facility and outstanding commercial paper as Short-term debt on the condensed consolidated balance sheets.

Under the revolving credit facility, as of March 31, 2019, PGE had no borrowings outstanding and there were no commercial paper or letters of credit issued. As a result, as of March 31, 2019, the aggregate unused available credit capacity under the revolving credit facility was $500 million.

In addition, PGE has four letter of credit facilities that provide a total capacity of $220 million under which the Company can request letters of credit for original terms not to exceed one year. The issuance of such letters of credit is subject to the approval of the issuing institution. Under these facilities, letters of credit for a total of $83 million were outstanding as of March 31, 2019. Letters of credit issued are not reflected on the Company’s condensed consolidated balance sheets.

Pursuant to an order issued by the FERC, the Company is authorized to issue short-term debt in an aggregate amount of up to $900 million through February 6, 2020.

Long-term Debt

During the three months ended March 31, 2019, PGE did not enter into any long-term debt transactions. Due to the upcoming repayment of long-term debt in 2019, $300 million was classified as current on the Company’s condensed consolidated balance sheets as of March 31, 2019.

On April 12, 2019, PGE issued $200 million of 4.30% Series First Mortgage Bonds due in 2049. Proceeds from the transaction were used to repay the $300 million current portion of long-term debt on April 15, 2019.

Defined Benefit Pension Plan Costs

Components of net periodic benefit cost under the defined benefit pension plan are as follows (in millions):



	Three Months Ended March 31,
	2019			2018
Service cost	$	4		$	5
Interest cost*	8			8
Expected return on plan assets*	(10		)	(10		)
Amortization of net actuarial loss*	3			4
Net periodic benefit cost	$	5		$	7

* The expense portion of non-service cost components are included in Miscellaneous income (expense), net within Other income on the Company’s condensed consolidated statements of income and comprehensive income.