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
8.5%
Earnings Test for 2018
Customer Surcharge
$30 million
Baseline
NVPC
($15) million
90/10 Sharing
Customer Refund
Deadband
Return on Equity
9.5%
10.5%
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 to the extent it results in PGE's actual regulated ROE being no
greater than 8.5%; customer refund occurs to the extent it results in PGE's actual regulated ROE
being no less than 10.5%
Portland General Electric
27View entire presentation