PORTLAND GENERAL ELECTRIC CO /OR/ 8-K

What Happened
Portland General Electric Company (PGE) filed an 8-K (Item 8.01) on Dec. 29, 2025 reporting that, on Dec. 23, 2025, PGE and certain intervening parties submitted a stipulation to the Oregon Public Utility Commission (OPUC) in Docket UE 459. The stipulation—backed by a memorandum of understanding (MOU) with key stakeholders—resolves all issues in PGE’s request for recovery under its Distribution System Plan (DSP) Alternative Recovery Mechanism (ARM) except for the intervenors’ proposed application of an earnings test. The MOU limits the ARM scope to specific capital investments filed in DSP docket UM 2362 (Dec. 2024) focused on network modernization and integration of clean and distributed energy resources.

Key Details

• Rate base increase agreed: $218 million.
• Return on equity (ROE): 9.34% (per the MOU reflecting PGE’s last rate case).
• Annual revenue requirement impact: $57 million (compared with PGE’s original $72 million request).
• $15 million of downward adjustments to PGE’s request; ~87% of those adjustments are temporary, allowing recovery of associated investments in the next general rate case (GRC).
• Procedural timing: OPUC adopted a schedule expecting an order in March 2026 and customer prices effective April 1, 2026; the earliest possible rate-effective date for PGE’s next GRC is May 1, 2027.
• Outcome remains subject to OPUC approval; PGE stated it cannot predict the final regulatory outcome. More info available at the OPUC website (oregon.gov/puc).

Why It Matters
This stipulation, if approved, limits what PGE can recover through the ARM and sets specific financial terms (rate base, ROE, and a smaller revenue requirement than filed). For investors, the agreed $57 million annual revenue requirement and $218 million rate base increase are the most direct near-term regulatory drivers of PGE’s utility revenues and rate base growth. However, many of the adjustments are temporary and final customer and financial impacts depend on OPUC approval and outcomes in PGE’s next GRC, so uncertainty remains.