Investor Presentaiton
Recovery of power costs.
Annual power cost update tariff
Annual reset of prices based on forecast of net variable power costs (NVPC) for the coming year
Subject to OPUC prudency review and approval, new prices go into effect on or around January 1 of the following year
Power Cost Adjustment Mechanism (PCAM)
Power Cost Sharing
Customer Surcharge
90/10 Sharing
$30 million
Baseline
NVPC
($15) million
90/10 Sharing
Customer Refund
Deadband
Return on Equity (%)
8.5
9.5
10.5
Earnings Test
Customer Surcharge
Customer Refund
.
PGE absorbs 100% of the costs/benefits within the
deadband, and amounts outside the deadband
are shared 90% with customers and 10% with PGE
An annual earnings test is applied using the
regulated ROE as a threshold
• Customer surcharge occurs if PGE's actual
regulated ROE is below 8.5%; ROE will not exceed
8.5% with surcharge
• Customer refund occurs if PGE's actual regulated
return is above 10.5%; regulated return will not
decrease below 10.5% with refund
Detriment / (Benefit) PCAM Baseline at Year End (1):
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Over/
(Under)
($17)
$11
($7)
($3)
($10)
$15
($3)
$5
$ (13)
$30(2)
PGE
(1) Dollar values in millions
(2) Represents 90% of the excess variance expected to be collected from customers
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