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.



	June 30, 2019		December 31, 2018
Prepaid expenses	$	35	$	54
Assets from price risk management activities	20		20
Margin deposits	5		16
Other	9		—
Other current assets	$	69	$	90



	June 30, 2019			December 31, 2018
Electric utility plant	$	10,684		$	10,344
Construction work-in-progress	219			346
Total cost	10,903			10,690
Less: accumulated depreciation and amortization	(3,951		)	(3,803		)
Electric utility plant, net	$	6,952		$	6,887

Accumulated depreciation and amortization in the table above includes accumulated amortization related to intangible assets of $334 million and $302 million as of June 30, 2019 and December 31, 2018, respectively. Amortization expense related to intangible assets was $17 million and $33 million for the three and six months ended June 30, 2019, respectively, and $14 million and $27 million for the three and six months ended June 30, 2018, respectively. The Company’s intangible assets primarily consist of computer software development and hydro licensing costs.



	June 30, 2019					December 31, 2018
	Current			Noncurrent		Current			Noncurrent
Regulatory assets:
Price risk management	$	20		$	73	$	32		$	99
Pension and other postretirement plans	—			217		—			222
Debt issuance costs	—			19		—			16
Trojan decommissioning activities	—			25		—			26
Other	17			46		29			38
Total regulatory assets	$	37		$	380	$	61		$	401
Regulatory liabilities:
Asset retirement removal costs	$	—		$	1,001	$	—		$	979
Deferred income taxes	—			265		—			267
Trojan decommissioning activities	2			—		1			—
Asset retirement obligations	—			54		—			53
Tax Reform Deferral⁽¹⁾	22			12		23			22
Other	13			33		12			34
Total regulatory liabilities	$	37	⁽²⁾	$	1,365	$	36	⁽²⁾	$	1,355



	June 30, 2019		December 31, 2018
Accrued employee compensation and benefits	$	58	$	66
Accrued taxes payable	29		34
Accrued interest payable	25		27
Accrued dividends payable	35		34
Regulatory liabilities—current	37		36
Other	63		71
Total accrued expenses and other current liabilities	$	247	$	268

As of December 31, 2018, PGE had a $500 million revolving credit facility scheduled to terminate 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 June 30, 2019, PGE was in compliance with this covenant with a 50.3% 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 June 30, 2019, PGE had no borrowings outstanding and $17 million of commercial paper issued. As a result, the aggregate unused available credit capacity under the revolving credit facility was $483 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 $60 million were outstanding as of June 30, 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.

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Service cost	$	4		$	5		$	8		$	10
Interest cost*	9			8			17			16
Expected return on plan assets*	(10		)	(11		)	(20		)	(21		)
Amortization of net actuarial loss*	2			4			5			8
Net periodic benefit cost	$	5		$	6		$	10		$	13

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