NOTE 20: SEGMENT INFORMATION

PGE is a vertically-integrated electric utility engaged in the generation, transmission, distribution, and retail sale of electricity. The Company participates in wholesale markets by purchasing and selling electricity and natural gas in an effort to meet the needs of, and obtain reasonably-priced power for its retail customers, manage risk, and administer its long-term wholesale contracts. The Company generates revenues and cash flows primarily from the sale and distribution of electricity to retail customers in its service territory in the State of Oregon.

The Company has identified one operating and reportable segment and defines its segment on the basis of the way in which internally reported financial information is regularly reviewed by the chief operating decision maker (CODM) to analyze financial performance, make decisions, and allocate resources. The Company’s CODM is the President and Chief Executive Officer.

The Company’s CODM assesses the segment’s performance by using Consolidated Net Income. The CODM uses Consolidated Net Income predominantly as a key input to earnings per share and return on equity, which is an important metric for investors, regulators and is also tied to employee compensation.

The table below provides information about the Company’s single business segment, including significant segment expenses, and includes reconciliation to Consolidated Net Income (dollars in millions):

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Total revenues

 

$

3,576

 

 

$

3,440

 

 

$

2,923

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Purchased power and fuel

 

 

1,411

 

 

 

1,418

 

 

 

1,190

 

Operating and maintenance expense:

 

 

 

 

 

 

 

 

 

Generation, transmission and distribution

 

 

450

 

 

 

436

 

 

 

374

 

Administrative and other

 

 

392

 

 

 

403

 

 

 

341

 

Total operating and maintenance expense

 

 

842

 

 

 

839

 

 

 

715

 

Depreciation and amortization

 

 

578

 

 

 

496

 

 

 

458

 

Taxes other than income taxes

 

 

190

 

 

 

175

 

 

 

164

 

Total operating expenses

 

 

3,021

 

 

 

2,928

 

 

 

2,527

 

Income from operations

 

 

555

 

 

 

512

 

 

 

396

 

Interest expense, net:

 

 

 

 

 

 

 

 

 

Interest expense

 

 

243

 

 

 

226

 

 

 

186

 

Allowance for borrowed funds used during construction

 

 

11

 

 

 

15

 

 

 

13

 

Total interest expense, net

 

 

232

 

 

 

211

 

 

 

173

 

Other income, net:

 

 

36

 

 

 

49

 

 

 

50

 

Income before income taxes

 

 

359

 

 

 

350

 

 

 

273

 

Income tax expense

 

 

53

 

 

 

37

 

 

 

45

 

Consolidated Net income

 

$

306

 

 

$

313

 

 

$

228

 

 

Certain additional financial information relating to the Company’s single business segment was as follows (dollars in millions):

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Total assets

 

$

13,230

 

 

$

12,544

 

 

$

11,208

 

Capital expenditures

 

 

(1,189

)

 

 

(1,268

)

 

 

(1,358

)

Equity method investments

 

 

19

 

 

 

13

 

 

 

9

 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 14, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.