Income tax Income tax (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The significant differences between the U.S. Federal statutory tax rate and PGE’s effective tax rate are reflected in the following table:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Federal statutory tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Federal tax credits*	14.8		(14.8)		(23.6)		(13.8)

State and local taxes, net of federal tax benefit	4.2		6.5		10.4		6.5
Flow-through depreciation and cost basis differences	17.5		1.0		(7.2)		1.2
Amortization of excess deferred income tax	(0.4)		(3.9)		(2.8)		(3.5)
Other	4.3		—		(1.8)		0.2
Effective tax rate	61.4	%	9.8	%	(4.0)	%	11.6	%

* Federal tax credits primarily consist of production tax credits (PTCs) earned from Company-owned wind-powered generating facilities. PTCs are earned based on a per-kilowatt hour rate and, as a result, the annual amount of PTCs earned will vary based on weather conditions and availability of the facilities. PTCs are earned for 10 years from the in-service dates of the corresponding facilities. PGE’s wind-powered generating facilities are eligible to earn PTCs until various dates through 2024.