PUBLIC UTILITY COMMISSION OF OREGON STAFF REPORT PUBLIC MEETING DATE: December 6, 2016

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1 ITEM NO. PUBLIC UTILITY COMMISSION OF OREGON STAFF REPORT PUBLIC MEETING DATE: December 6, 16 REGULAR X CONSENT EFFECTIVE DATE January 1,17 DATE: TO: Public Utility Commiion FROM: Ming Peng.- THROUGH: Jaon Eidorferand Marc Hellman SUBJECT: PORTLAND GENERAL ELECTRIC: (Docket No. ADV 91/Advice No ) Etablihe the Tariff Schedule 146 Coltrip Power Plant Operating Life Adjutment to implement into rate the Company' hare of the revenue requirement effect of the change in the Coltrip Power Plant Unit and 4, with a requeted effective date of January 1,17. STAFF RECOMMENDATION: Staff recommend that the Commiion approve Portland General Electric Company' (PGE or Company) requeted change to Tariff Schedule 146 (Tariff), Coltrip Power Plant Unit and 4 (Coltrip) Operating Life Adjutment, beginning on January 1, 17, and ending on December 1,, ubject to the following condition and reporting requirement: 1. PGE will ubmit a compliance filing annually to update Tariff Schedule 146 with rate calculated in accordance with the methodology included in PGE' Advice If any new applicable law, rule, or Commiion order are enacted or iued within the next 14-year depreciation period, PGE will comply with all applicable new mandate, and ubmit application to the Commiion for review and approval before updating the calculation for depreciation, revenue requirement, and correponding tariff.. For any potential capital addition in decommiioning cot ("decommiioning" mean removing a power plant from ervice), PGE will

2 Page ubmit the calculation for the incremental rate impact to the Commiion for review and approval.1 4. In the event PGE continue to have an ownerhip hare of the Coltrip plant() after December 1, 9, and the plant() continue operation pat that date, PGE will provide to the Commiion, by no later than March 1 of each ubequent year, an informational notice tating whether PGE retain ownerhip of the plant() and an etimate of that year' forecated annual net economic value of PGE' hare of Coltrip. 5. After Coltrip i fully depreciated and before the plant i cloed, ubject to the proviion included in Senate Bill 1547, Section 1(4), PGE hould pa the ongoing cot and benefit, if any, to cutomer during the period January 1, 1 through December 1, If the Company decide to ell ome or all of it fractional ownerhip in the future, PGE mut file with the Commiion an application for approval of thi tranaction in accordance with applicable tatute and rule. In reviewing uch a future filing, Staff will conider the net gain or net lo of the ale of the plant for allocation to utility cutomer. In uch a filing, PGE will need to etimate the impact of the ale to affected cutomer, the bill change per month on Schedule 146 a a reult of the property ale, and an overall annual rate impact. DISCUSSION: Iue Whether the Company', etablihing PGE' Tariff Schedule 146 to horten the Coltrip' Operating Life Expectancy, i conitent with applicable law and i in it cutomer' interet, uch that the Commiion hould approve the filing. 1 An example of a law that could trigger thi condition i the new Coal Combution Reidual (CCR) requirement the EPA iued in 15 on Coltrip & 4. See Senate Bill Coal plant are not to be ued to erve Oregon cutomer beginning in, although depreciation cot are included in rate through the year. Coltrip though could be treated differently than other coal plant and have a five-year extenion even after being fully depreciated. S.B. 1547, a enacted, provide PGE the excluive option to provide the economic value to cutomer even though PGE cutomer have fully-paid for the plant through. In Staff' view thi treatment of plant, of the utility having the excluive optionality, i inconitent with traditional ratemaking practice.

3 PageS Applicable Law Senate Bill 1547, enacted by the 16 Legilature require each electric company providing electricity to retail electricity conumer located in thi tate to eliminate coalfired reource from electric company' electricity upply by January 1,. See Attachment A. Senate Bill 1547, ELIMINATION OF COAL FROM ELECTRICITY SUPPLY. Section 1() compel the Commiion to adjut the depreciation chedule of an electric company' coal-fired reource o that the coal-fired reource i fully depreciated on or before December 1,, if (1) the electric company i the minority owner of no more than one coal-fired reource with no more than four generating unit, and () the electric company erve at leat 8, retail electricity conumer and it ervice territory i located only in Oregon. PGE i the only utility that meet the requirement of thi ection. Section of the Bill provide the Commiion with authority to allocate the net gain or lo from the ale of a coal-fired reource to cutomer of an electric company if that electric company make retail ale to 5, or more retail electricity conumer in Oregon. ORS (1) require that "Every public utility hall carry a proper and adequate depreciation account. The Public Utility Commiion hall acertain and determine the proper and adequate rate of depreciation of the everal clae of property of each public utility. The rate hall be uch a will provide the amount required over and above the expene of maintenance, to keep uch property in a tate of efficiency correponding to the progre of the indutry. Each public utility hall conform it depreciation account to the rate o acertained and determined by the commiion. The commiion may make change in uch rate of depreciation from time to time a the commiion may find to be neceary." OAR 86--5() and OAR 86--(1) require that each energy utility changing exiting tariff or chedule or increaing rate in thoe chedule mut indicate the change in rate and the number of cutomer affected. ORS (1)(b) further provide that "A ued in thi ubection, automatic adjutment claue mean a proviion of a rate chedule that provide for rate increae or decreae or both, without prior hearing, reflecting increae or decreae or both in cot incurred, taxe paid to unit of government or revenue earned by a utility and that i ubject to review by the commiion at leat once every two year." 4S.B. 1547, 78th Leg, Reg. Se. (Or 16) ("SB 1547") at Section 1().

4 Page 4 In Commiion Order No (Docket UM 1679), the Commiion adopted for PGE the change in depreciation parameter (i.e., aet Survivor Curve-Projection Life, Net Salvage Ratio) by FERC account. In it Order, the Commiion required the Company to implement the depreciation, amortization, and net alvage rate propoed in the UM 1679 partie' tipulation a of January 1, 15. See alo Order No (the general rate cae order iued in Docket UE 8). Analyi Background Puruant to SB 1547 Section 1, the Company filed it on October 1, 16, requeting etablihment of the Tariff Schedule 146 Coltrip Power Plant Operating Life Adjutment to implement the rate for PGE' hare of the revenue requirement effect of the change in the Coltrip Power Plant Unit and 4 and aociated common facilitie, with a requeted effective date of January 1, 17. If allowed to go into effect, the Tariff will increae PGE' revenue by 5.6 million, which tranlate to a. percent increae on current rate, incluive of public purpoe charge. PGE' filing i to update the accelerated depreciation date and it alo provide the calculation for incremental cot impact on depreciation, revenue requirement, and electric tariff. PGE alo propoe an Automatic Adjutment Claue (AAC) to implement the revenue requirement effect, uch that the depreciable capital invetment of the coal-fired reource would be fully depreciated on or before December 1,. Thi would be conitent with SB 1547 Section 1(). The Company further tate that it "will update Schedule 146, effective January 1, 18,and each year thereafter, to account for update to the load forecat and decommiioning cot, among other factor." The Coltrip coal plant in Montana erve utility cutomer acro the Pacific. PGE own percent each of Coltrip Unit and 4. At 96 net megawatt of capacity, PGE' power can light nearly, home. The following illutration provide additional information on thi topic.

5 Page 5 Coltnp Steam Electric Plant UNITS and 4, owned by 1. Puget Sound Energy,. A vita Corp,. PacifiCorp, 4.PGE(% of each unit), 5. Northwetern Energy * Unit &4 were operational in Coltrip Steam Electric Plant UNITS land. Owned by I.Talen Energy,. Puget Sound Energy. * Unit 1 & were operational in 1975 and 614 MW production capacitie. * Settlement Call for Coltrip Unit 1& to Cloe by and 1.48 MW productbn capacitie. * Oregon Law requiring utilitie to drop coal power by. IS' l "'<i Coltrip Power Plant 1-4 from right to left On October 5, 16, the Indutrial Cutomer of Northwet Utilitie (ICNU) filed comment recommending that the Commiion reject PGE' Advice Filing Very generally tated, ICNLT primary point are: it doe not upport ingle-iue ratemaking; it doe not upport the ue of an AAC; and, becaue SB 1547 doe not precribe the timing of PGE' filing, ICNU recommend the Commiion take thi iue up during PGE' next rate cae or depreciation cae filing to adjut Coltrip' depreciable life. Staff addree ICNU' concern in it Staff Review. Staff Review Staff' analyi conit of the following three topic: 1. The tarting period for accelerated depreciation;. PGE' AAC filing and ICNU' ingle-iue ratemaking concern; and. The incremental rate impact on depreciation, revenue requirement, and the effect of cutomer' rate

6 Page 6 1. The tarting period for accelerated depreciation A tated, ICNU recommend the Commiion not approve the filing for everal reaon. One iue i ICNU' argument that PGE ha not hown that it either cannot aborb the higher depreciation rate or wait to file the change in depreciation rate when the Company file it next rate cae. On the latter alternative, ICNU tate that the general rate cae option would allow the Commiion to undertake a full and complete review of all of PGE' cot, not jut higher depreciation rate. Staff doe not upport ICNU' recommendation for two reaon. Firt, the change in Coltrip' depreciation life come from SB SB 1547 Section 1()(b) require the Commiion to allow PGE to adjut it depreciation chedule for Coltrip o that it i fully depreciated on or before December 1,. Therefore PGE i reponding to new law. A uch, PGE hould not be expected to bear thoe additional cot that are a direct reult of SB The econd reaon Staff doe not upport ICNLT recommendation i becaue of the notion of "generational equity." To tart, it i not a quetion of whether the Commiion will allow accelerated depreciation for Coltrip. It i a given under SB 1547 that the Coltrip plant need to be fully depreciated by the end of. The quetion thu become when will the Commiion allow uch accelerated depreciation to commence? The principle of generational equity dictate that it would be unfair to future rate payer to wait to implement the accelerated depreciation of Coltrip. In other word, accepting ICNU' recommendation would allow current cutomer to pay lower depreciation rate, with the unfair reult that future cutomer would pay the higher rate required by Coltrip' accelerated depreciation. Staff upport implementing the change in plant depreciable live now in order to lower the rate impact in cent per kwh term. To explain thi point in greater detail, without accelerated depreciation, Coltrip will have 1 year "compoite" remaining life ("compoite" refer to the weighted average remaining life calculated by FERC account). Staff compared annual depreciation expene for a remaining life of: (a) 14 year if tarting from 1/1/17, (b) 1 year remaining if tarting from 1/1/18, and (c) 1 year remaining if tarting from 1/1/19. Staff found the annual depreciation expene are different ignificantly. Thi i illutrated in the following table:

7 Page 7 1/1/16 Net Plant Remaining Life Year Annual depr. Expene Annual depr. Increae Depr.Expene Increae % Revenue Reqmt Increae 165,49, 1/1/19 1 1,784,8 7,6,89 1.% 6,885,96 1/1/18 1 1,7,769 6,54, % 6,54,45 1/1/ ,814,99 5,64,4 91.% 5,617,848 Current ,18,694 % Current annual depreciation expene, which i approximately 6.18 million per year, ha 1 year remaining life. To tart accelerated depreciation on January 1, 17, mean Coltrip would have 14 year remaining life, which tranlate to approximately 11.8 million annual depreciation expene. If the Commiion delay the tart of accelerated depreciation until January 1, 18, Coltrip will have 1 year remaining life, and depreciation expene would be about 1.7 million per year. Finally, if the Commiion wait until January 1, 19, there will be 1 year remaining life, which reult in a depreciation expene of approximately 1.8 million per year. Baed on the calculation above, it i clear that for any capital recovery or depreciation with a given plant termination date, the longer the wait to commence accelerating the depreciation, the horter the payment term and the higher the pay rate (annual depreciation expene). Therefore, Staff recommend tarting accelerated depreciation a oon a poible, a PGE propoe with it requeted effective date of January 1, 17.. PGE' AAC filing and ICNU' ingle-iue ratemaking concern PGE' application for an AAC in thi filing i conitent with SB 1547 and i appropriate in the preent circumtance. An AAC under ORS (1)(b) i a chedule that allow for rate increae or decreae or both, without a prior hearing. However, for tariff filing purpoe, the rate change till, "i ubject to review by the commiion at leat once every two year." ORS 757.1(1 )(b). Therefore, a with all AAC, there will be opportunitie for timely review of PGE' chedule with an AAC by the Commiion. Further, Staff believe that SB 1547' mandate for earlier elimination of coal-derived power in Oregon better anwer ICNLT concern about ingle-iue ratemaking. A jut tated above, becaue of generational equity concern, recognizing the fact that it i not

8 Page8 a quetion of whether to accelerate Coltrip' depreciation but when to do o, Staff recommend that the Commiion allow the accelerated depreciation to commence now and not wait for PGE' next general rate cae to conclude at a date in the future.. The incremental rate impact on depreciation, revenue requirement, and the effect of cutomer' rate SB 1547' accelerated depreciation requirement will have incremental rate impact on: (1) depreciation, () revenue requirement, and () cutomer rate. Staff' analye included each of the following tep. Staff ent out 1 data requet to PGE a well a participated in phone conference with PGE' taff on the effect of it application on depreciation, revenue requirement, and it cutomer' rate. (1) Rate impact on depreciation In it filing, PGE applied depreciation rate a precribed in Order No (UE 94) to determine the Coltrip net plant balance a of December 1, 16. PGE then calculated the depreciation expene under the revied depreciable end of life date. A tated, Coltrip currently ha 1 year compoite remaining life (weighted average remaining life calculated by FERC account). With accelerated depreciation, PGE will horten Coltrip' remaining life to 14 year with rate effective a of January 1, 17. Staff verified PGE' accelerated depreciation calculation and requeted for the hitoric plant balance data (Attachment B. Table. 1 to 16 Plant Balance). Staff confirmed that PGE' accelerated depreciation calculation over the period of January 1, 17 to December 1, meet the Commiion requirement. Thi accelerated depreciation will horten the Coltrip compoite Remaining Service Life by even year (i.e. from 1 year remaining to 14 year - ee Attachment B. Table, the compoite remaining life calculation for Coltrip Unit & 4). The reult how that the depreciation expene will be 11.8 million per year, an increae from current the 6.18 million per year (which i an increae of approximately 5.6 million per year). See Attachment B. Table 1, incremental depreciation annual expene (1) depreciation end life of, and Incremental depreciation annual expene () 16 annual depreciation.

9 Page 9 () Rate impact on Revenue Requirement Under cot of ervice regulation, Revenue Requirement that meaured by cot of ervice, refer to the revenue the utility mut earn to recover the cot of providing ervice and to earn a reaonable return on it invetment. A a reult of the depreciation expene increae, PGE' Revenue Requirement will be increaed by 5.6 million per year. See Attachment B. Table 5.17 Incremental Revenue Requirement - Coltrip Accelerated Depreciation. PGE' Accumulated Depreciation (the cot of the invetment in a gro plant that i recovered through the cot-of-ervice a Depreciation Expene) ha been correctly deducted from rate bae in the revenue requirement model. Staff verified the revenue requirement model item-by-item, and confirmed that PGE' calculation meet the Commiion' requirement. () Rate impact on cutomer Staff reviewed the Company' rate calculation of Incremental Electric Tariff for each of 15 ub-chedule under the Schedule 146 (Attachment Table 6, Incremental Electric Tariff, Calculation of Schedule 146 Price), including bae calculation and propoed calculation, bae price and propoed price a well a how the cutomer number would be affected. See Attachment B. Table 4. ESTIMATED EFFECT ON CONSUMERS' TOTAL ELECTRIC BILLS. Depreciation i one of the Company' larget expene in the revenue requirement. An increae to depreciation expene, with a correponding increae to revenue requirement, PGE' cutomer rate will increae accordingly. Schedule 7 under the Schedule 146, how that a typical reidential cutomer conuming 84 kwh monthly will ee a bill increae of approximately.. See Attachment B. Table 7. The Schedule 146 rate will increae for each ub-chedule. See Attachment B. Table 6. Pleae note that Coltrip unit and 4 will "be eliminated" on January 1,,at which time the ite may or may not be decommiioned. Thi filing only deal with Coltrip accelerated depreciation calculation and cot aociated with revenue requirement, and electric tariff, not including the plant decommiioning cot. In PGE' repone to Staff' information requet No. 7, the Company tated that it "currently plan to include a revied updated etimate of terminal decommiioning cot in PGE' next depreciation tudy, which we are required to complete no later than the end of 18."

10 Page 1 Concluion Having reviewed and analyzed the PGE application a indicated above, given that the recovery of accelerated depreciation through Schedule 146 i ubject to an automatic adjutment claue, Staff' prudence review focued on whether accelerated depreciation adjutment were calculated correctly. Schedule 146 rate, reflect the accelerated depreciation to be recovered from January 1, 17 to December 1,, have been correctly updated in the filed tariff heet 146. Staff recommend that the Commiion approve Docket No. ADV 91/Advice filing and the methodology ued to calculate new rate for Schedule 146. PGE ha reviewed thi memo and ha expreed no ubtantive concern. PROPOSED COMMISSION MOTION: Approve, ubject to Staff' recommended condition and reporting requirement, PGE' requeted change to Schedule 146, to be effective January 1, 17. ADV91.PMM for PGE.docx

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13 Page 1 Attachment B. Table 1. Incremental depreciation annual expene (1) depreciation end life of TABLE 1 - Accelerated Depreciation due to SB 1547 requirement to be fully depreciated by 1/1/: COLSTRIP NEW END OF DERECIABLE LIFE (if acceleration begin 1/1/17) Account Etimated Plant Balance at 1/1/16 Etimated Accum 1/1/16 UM1679 IOWA Survivor Curve UM1679 Equal Life Group, Projection Life (Year) UM1679 Net Salvage Rate % (NS) End of Life Annual Rate % NEWEnd-of-Life Annual Calculation 11 r 1 r ,86,17,495, 7,96,641 98,46,86 174,51,777 4,668,494 S1.5 R 8.5 (.5) (.5) (.5) 1,711,5 5,46,87,48,95 r 15 r 16 r 5 r 5 r 54 r 55 r 56 r 59 r r ,761,9 6,87,48 78,468 19,451,7,55,6 111,44,4,61 88,964 5,9 9,97 5,94 1,8 1,767 17,971 1,448 46,889 16,56,694,7 19,49,41 5,8,94 49,86 14,75,175 1,888,877 11,5,41,99 16,91 11,55 61,1 7,886 85,517 9,68 4,884 4,569 9,189 71,16,9,81 5,,57 9,69,51 R.5 R1 R.5 R R R1.5 R.5 R4 SQ S S1.5 L o S1.5 SQ L L1 SQ (.5) (.5) (.15) (.15) (.1) (.51) (.) ,57 115,984 9,8 59,411 1,,716,615 4,1 8,9 96 1,561 1,475, ,849 8,471,6 11,814,99

14 Page 14 Table 1. Incremental depreciation annual expene () 16 annual depreciation Account 11 r 1 r 14 r 15 r 16 F 5 r 5 r 54 r 55 r 56 r 59 r r COLSTRIP Etimated Plant Balance at 1/1/16 116,86,17,495, 7,96,641,761,9 6,87,48 78,468 19,451,7,55,6 111,44,4,61 88,964 5,9 9,97 5,94 1,8 1,767 17,971 1,448 46,889 16,56,694,7 5,,57 Etimated Accum 1/1/16 98,46,86 174,51,777 4,668,494 19,49,41 5,8,94 49,86 14,75,175 1,888,877 11,5,41,99 16,91 11,55 61,1 7,886 85,517 9,68 4,884 4,569 9,189 71,16,9,81 9,69,51 Currently approved parameter UM 1679, Order UM1679 Equal Life UM1679 UM1679 IOWA Survivor Curve S1.5 R 8.5 R.5 R1 R.5 R R R1.5 R.5 R4 SQ S S1.5 L o S1.5 SQ L L1 SQ Group, Projection Life (Year) Net Salvage Rate % _(NS) (.5) (.5) (.5) (.5) (.5) (.15) (.15) (.1) (.51) (.) Annual Rate %, per Order %.76% 4.% 4.14% 4.9%.68%.89%.89%.15%.9%.46% 16.% 7.9% 11.65% 16.67% 7.7% 16.85% 1.15% 7.41% 9.1% 15.6% CURRENTUM 1679 Paramater Annual Calculation 881,675,656,674 1,44,519 8,115 71,84 1,911 9, ,41 1,15 14,884 4,6,16 1,55,46 5,9 1 1,9 8, ,4 7,616 6,18,694 Annualized Net lncreae/(decreae) due to change in depreciable life only: 5,64,4 Monthly increamental depreciation amount in Revenue requiremenl 469,5

15 Page 15 Table. 1 to 16 Plant Balance ' plant balance i ued for the bae of the future value to be recovered. TABLE. Coltrip Year End Balance, 1-16: FERC Account 11 I1 '14 '15 I16 '5 r5 '54 r55 r56 r5q I91 >94 P95 ' "99 9 '94 S96 ' FERC Account '11 "1 r14 I15 16 r5 r5 r54 r55 r56 f59 '91 jl "96 '98 '99 9 P94 > ORJC Order Balance at 1/1/1 Plant 115,8,14 16,919,86 75,65,579,556,968 6,46, ,67 17,788,44,841,76 11, 19,86,4 86, 95,65 8,71 14,71 1,767,1 58,415 46,889 1,78,694,7 5,4,945 Accum Reerve 94,985,4 169,869,61 4,157,1 18,545,9 4,741,6 441,9 1,174,975 9,9,7 14,17 19,441,56 146,519 45,919 17,75 54,61 7,767 1,48 4,155 7,187 49,9,9,769 74,6,79 Balance at 1/1/14 Plant 115,99,88,461,467 7,89,987,57,999 6,18, ,67 18,619,481,841,76 11, 19,86,4 86, 5,9 9,97 54,54 14,71 1,767,16,86 74,44 46,889 16,56,694,7 515,57,516 Ace um Reerve 96,588,17 17,44,566 4,969,4 18,99,54 4,91,56 471,751 1,66,17 1,9,4 19,,146,75 155,119 6,41 57,69,57 77,61 8,79, ,87 8,1 61,96,58,51 81,487,67 Balance at 1/1/1 Plant Ace um Reerve 115,18,97 95,757,85 4,549,6 171,81,198 74,95,559 41,155,686,557,58 18,797,61 6,46,1 4,8,8 777,67 456,78 17,788,44 1,411,6,841,76 9,669,58 11, 16,76 19,86,4 19,81,61 86, 15,887 5,9,44 9,97 5,61 1,64 18,8 14,71 66,987 1,767 8,1,1 1,467 6,767 1,661 46,889 7,796 1,78 55,169,694,7,98,746 51,417,7 78,778,97 Balance at 1/1/15 Plant Accum Reerve 114,98,47 97,49,65 9,441,9 171,9,98 7,16,98 4,6,84,5,66 19,16,964 6,15,585 5,1,6 777,67 48,97 19,19,691 1,86,78,841,76 1,469,59 11, 1,44 19,86,4,8,9 86, 159,587 5,9 9,188 9,97 59,4 54,54 5,9 14,71 8,841 1,767 9,9 45,66,18, ,591 5,761 46,889 8,776 16,56 66,51,694,7,15, ,814,18 84,587,84 Balance at 1/1/16 Plant I Accum Reerve 116,86,17 98,46,86,495, 174,51,777 7,96,641 4,668,494,761,9 19,49,41 6,87,48 5,8,94 78,468 49,86 19,451,7 14,75,175,55,6 1,888, ,44 11,5,4,61,41,99 88,964 16,91 5,9 11,55 9,97 61,1 5,94 7,886 1,8 85,517 1,767 9,68 17,971 4,884 1,448 4,569 46,889 9,189 16,56 71,16,694,7,9,81 5,,57 9,69,51

16 Page 16 Table. The compoite remaining life calculation for Coltrip Unit & 4. ACCOUNT (D NET ORIGINAL COST SURVIVOR SALVAGI AT BOOK CURVE PERCEN*DECEMBER1,(H RESERVE () r () r (4) r (5) CALCULATED FUTURE ANNUAL ACCRUAL ACCRUALS (6) AMOUNT (7) RATE (8) copon-e comporre REMAINING LIFE UF& Year (9.) =16-1 1/1116 COLSTRiP % hare each. unti & STRUCTURES AND IMPROVEMEOTS * (5) 1. BOILER PLANT EQUIPMENT 65 - R k (5) 14. TURBOGENERATORUNfTS 6 - S.5 * (5) 15. ACCESSORY ELECTRIC EQUIPMENT 6 - R.5 * (5) 16. MISCELLANEOUS POWER PLANT EQUIPM 55 - R1 * (5) TOTAL COLSTRIP 115, ,88 75,65.579,55, ,4 169, ,157, ,9 6.88, ,.5 8, , ,175,748 1,644, ,45, , 1, e.77 8,99,17 11,7,9 5, TOTAL STEAM PRODUCTION PLANT 897,18, ,9,54 6,45,616 6,476,

17 Page 17 Table 4. ESTIMATED EFFECT ON CONSUMERS' TOTAL ELECTRIC BILLS CATEGORY TABLE 4 PORTLAND GENERAL ELECTRIC ESTIMATED EFFECT ON CONSUMERS' TOTAL ELECTRIC 17 RATE SCHEDULE Forecat SSEP16E17 CUSTOMERS MWH SALES BILLS TOTAL ELECTRIC BILLS CURRENT Reidential Employee Dicount Subtotal 7 76,618 7,591,457 S ,966,187 Outdoor Area Lighting General Service < kw Opt Time.of.Day G.S. > kw Irrig. & Drain. Pump. < kw Irrig. & Drain. Pump. > kw General Service 1- kw General Service 14, kw Secondary Primary Schedule 89 > 4 MW Primary Subtranmiion Schedule 9 Street & Highway Lighting Traffic Signal COS TOTALS Direct Acce Service 14, Secondary Primary Direct Acce Service > 4 Secondary Primary Subtranmiion DIRECT ACCESS TOTALS kw S 85-P 89-P 89-T 9-P 91/ S 485-P 489-S 489-P 489-T , , , , , ,8,958.95, ,1 575,7 61,84 1,51,577 6, , ,7 41,979 1,61 76,17 98, , ,47 S ,58 58,65,5 S ,5,14 47, S ,58,57 94, S S ,79,477 S , ,86 1,155,14 51,94,6 5, COS AND DA CYCLE TOTALS Coltrip Cycle Revenue Percentage Change , 1,77, ,644,65.%

18 Page 18 Table Incremental Revenue Requirement - Coltrip Accelerated Depreciation Portland General Electric Company 17 Incremental Revenue Requirement - Coltnp Acclerated Depreciation Dollar in OOO January February March April May June July Sale to Conumer Sale for Reale Other Revenue Total Op crating Revenue T T T Net Variable Power Cot Production OfiM (Exclude Trojan) Trojan O&M Tranmiion O&M Ditribution O&M Cutomer & MBC O&M Uncollectible Expene OPUC Fee ASG, In/Bene., & Gen. Plant Total Operating 8& Maintenance T 4 T Depreciation Amortization Property Tax Payroll Tax Other Taxe Franchie Fee Utility Income Tax Total Operating Expene 85 Taxe Utility Op crating In come (1) 485 _()_ 47 1 (1) 484 J () 48 _(6L 47 1 () 48 _(8)_ 47 1 (4) 481 (1) 47 Average Rate Bae Avg. Gro Plant Avg. Accum, Deprec. / Amort Avg. Accum. Def Tax Avg. Accum. Def ITC Avg. Net Utility Plant ' (5) 86 7U9)7 T (74) 49 -(455) (1,174) 98 T (7761 (1.64) (,11) (,58) T(1,H)- (1,464) To,8iy T Mic. Deferred Debit Operating Material & Fuel Mic. Deferred Credit Working Cah Average Rate Bae 18 (1) 18 (47) 18 (758) 18 (1,94) 17 (1.446) 17 (1,814)

19 Page 19 Table 6. Incremental Electric Tariff, Calculation of Schedule 146 Price PORTLAND GENERAL ELECTRIC Calculation of Schedule 146 Price Schedule 17 Calendar COS Energy MWh 17 Bae Generation Revenue Generation Allocation Sch146 Allocation 17 Sch146 Price miii/kwh 17 Sch146 Revenue Cycle MWh Cycle Revenue Schedule 7 Schedule 15 Schedule Schedule 8 Schedule 47 Schedule 49 Schedule 8 Schedule 85-S Schedule 85-P Schedule 89-S Schedule 89-P Schedule 89-T Schedule 9 Schedule 91 Schedule 9 7,59,517 16, 1,584,961,554 1,7 64,687,84,84,9,918 6,5 568,9 61,84 1,57,55 6,78,4 59, ,816 1,8 1,591 4, ,75 14,94 7,96,58,66 85,8, %.8% 9.9%.16%.14%.4% 16.7% 1.64%.6%.%.97%.% 7.54%.1%.%, r , ,591,457 16, 1,584,16,57 1,14 64,64,8,958,95, ,1 575,7 61,84 1,51,577 6,78,4, TOTAL 17,9,7 1,1,658 1.% 5,618 5,646 17,86,568 5,644

20 Page Table 7. A typical reidential cutomer conuming 84 kwh monthly will ee a bill increae of.. PORTLAND GENERAL ELECTRIC Effect of propoed rate change on Monthly Bill Tariff Schedule 7 kwh Net Monthly Bill Current Propoed Price Price Percent Monthly Difference Increae %.%.%.%.%.%.% %.%.%.%.% , %.6 1, %.4 1, %.4 1, %.48 1, %.51 1, %.55 1, %.57 1, %.61 1, %.65, %.7, %.84, %.99, % 1.8, % 1.7 4, % , % 1.6 5, % 1.8 7, %.7 1, 1,19.7 1,.88.%.61