POR

Business Context and Reporting Period

Company: Portland General Electric Company (PGE)
Filing Type: Form 8-K (Current Report)
Date of Report: December 23, 2025
Event: Submission of a stipulation to the Public Utility Commission of Oregon (OPUC) resolving most issues regarding the Distribution System Plan (DSP) Alternative Recovery Mechanism (ARM) in Docket UE 459.

Key Financial Metrics

This filing details regulatory settlement terms rather than historical financial performance. Key metrics associated with the proposed settlement include:

• Rate Base Increase: $218 million
• Return on Equity (ROE): 9.34% (per Memorandum of Understanding)
• Annual Revenue Requirement Increase: $57 million (reduced from the filed request of $72 million)
• Temporary Adjustments: Approximately $13.05 million (87% of the $15 million difference between the request and settlement) are temporary in nature.

Note: The filing text does not provide clear values for total revenue, net profit, cash flow, operating margins, total debt, or liquidity ratios for the reporting period.

Material Changes and Regulatory Status

The settlement represents a material change in the Company's regulatory recovery strategy compared to its initial filing:

• Revenue Reduction: The agreed annual revenue requirement is $15 million lower than PGE's original request.
• Scope Limitation: The ARM scope is limited to specific capital investments in the DSP docket (UM 2362) filed in December 2024, focusing on network modernization and clean energy integration.
• Recovery Timing: Temporary adjustments allow for recovery of associated investments in the next General Rate Case (GRC), with the earliest possible effective date of May 1, 2027.

Outlook, Risks, and Management Commentary

Regulatory Timeline: The OPUC anticipates issuing an order in March 2026, with customer prices effective April 1, 2026, subject to approval.
Risks and Contingencies:

• The stipulation remains subject to OPUC approval; the Company cannot predict the ultimate outcome of the regulatory process.
• One issue remains unresolved: the application of an earnings test as proposed by intervening parties.

Management Commentary: The settlement was supported by a Memorandum of Understanding (MOU) with key regulatory stakeholders, reflecting a compromise on the revenue requirement while maintaining the 9.34% ROE from the last rate case.

Investor Verification Checklist

• Verify the final OPUC order in Docket UE 459 expected in March 2026 to confirm the $57 million revenue increase and 9.34% ROE are approved.
• Monitor the resolution of the outstanding "earnings test" issue which was excluded from the current stipulation.
• Review the specific capital investments in Docket UM 2362 to ensure they align with the limited scope of the ARM.
• Track the timeline for the next General Rate Case (GRC) to confirm the May 1, 2027, effective date for recovering temporary adjustments.