Portland General Electric : 2024 ESG report

Published: 2025-03-06 03:07:11 ET POR

2024 Environmental, Social and Governance Report

Advancing toward

a clean energy future

About this report

This report outlines Portland General Electric's (PGEs) commitment to advancing environmental, social and governance values core to our business through responsible practices.

We disclose data under the Edison Electric Institute (EEI) ESG Quantitative Template, Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosures (TCFD) to provide stakeholders information about how we identify, measure and manage the subset of environmental, social and governance topics that most directly impact long- term enterprise value. The inclusion of information in this report should not be interpreted as characterization regarding the materiality or financial impact of that information.

About Portland General Electric

Portland General Electric is a fully integrated energy company that generates, transmits and distributes electricity, serving roughly half of Oregon's population and nearly two-thirds of its commercial and industrial activity.

CORPORATE STRATEGIC IMPERATIVES

Contents

05 LETTER FROM OUR VICE PRESIDENT, POLICY AND RESOURCE PLANNING

07 OUR FOCUS AREAS AND PRIORITIES

08 A DECADE OF PROGRESS

10 2024 PGE'S RESOURCES AND EMISSIONS AT A GLANCE

13 RESILIENT ENERGY ECOSYSTEM

14 A changing power supply

16 Climate commitments and emissions

18 PGE's Clean Energy Plan

20 Customer collaboration

21 A changing Western grid

22 Reducing emissions across sectors

24 How we care for the environment

29 THRIVING COMMUNITIES

30 Serving communities

31 Community engagement and impact

32 Community impact

35 Workforce development

36 Valuing and supporting our employees' well-being

37 Employee culture and engagement

40 Workplace leadership

Decarbonize

Reduce greenhouse gas emissions associated with electricity served to retail customers by at least 80% by 2030 and 100% by 2040.

Electrify

Increase beneficial electricity use to capture the benefits of new technologies while building an increasingly clean, flexible and reliable grid.

Perform

Improve efficiency, safety and system and equipment reliability while maintaining affordable energy service and growing earnings

per share 5% to 7% annually.

43 GOVERNANCE

44 Governance

46 Risk management and mitigation

48 Innovations and solutions

49 Safety and emergency preparedness

50 Transparency across our business practices

51 Ethics and compliance

For more information on our Environmental, Social and Governance Report, please contact:

Kristen Sheeran

Nick White

Heather Nelson

Vice President, Policy

Manager, Investor Relations and

Director, Diversity, Equity and Inclusion

and Resource Planning

Treasury Operations

and Talent Management

For general inquiries:

503-464-2067or email [email protected]

53 ESG DATA TABLES

54 2024 ESG Report Key Metrics

56 2024 Sustainability Accounting Standards Board (SASB) Report 64 2024 Task Force on Climate-related Financial Disclosures (TCFD) 79 2024 Edison Electric Institute (EEI) Quantitative Template

86 Forward-looking statements

""At the heart of Portland General Electric's work is an enduring commitment to our responsibility to provide safe, reliable and affordable energy to every customer and community we serve."

Letter from our President and CEO

""As PGE grows and evolves to meet some of the most pressing challenges of our time, our environmental, social and governance strategy aligned with our core values will continue to guide us to shared success."

Letter from our Vice President, Policy and Resource Planning

At the heart of Portland General Electric's work is an enduring commitment to our responsibility to provide safe, reliable and affordable energy to every customer and community we serve.

Today, our company works at the intersection of important changes in society from the onshoring of manufacturing to the transition to clean energy and the risk of extreme weather events, especially wildfires. The decisions we make and the results we achieve help shape the future of the Pacific Northwest and the country.

As the energy industry experiences rapid change, aligning our core values with our business practices is essential to earning and maintaining the trust of customers and stakeholders. When we ground our business strategy in our values, we can better identify and mitigate the risks of a changing climate, prioritize investments in safety, resilience and reliability for customers, and innovate to deliver affordable electricity.

PGE made sustained progress toward our clean energy goals in 2024. The carbon intensity of the power supply declined to 0.27 MTCO2e per MWh in 2024, despite load growth on our system. Of the energy our company generated and procured in 2024,

45% came from clean, non-carbon emitting sources, a 7% compounded growth rate in our non-emitting resource mix since 2020, building on our commitment to reach net-zero carbon emissions by 2040.

New renewable energy resources from the Clearwater Wind Energy Center and battery storage systems brought increased availability and reliability to our energy mix. These systems, along with the rest of PGE's technology and infrastructure, work together to provide reliable, clean energy even when the wind doesn't blow and the sun doesn't shine.

In 2024, PGE strengthened our commitment to environmental stewardship. As Oregonians, we care deeply about the natural beauty and natural resources that make our state one of the best places to live. In everything we do, we strive to protect those resources for the benefit of all. Our salmon restoration projects, youth engagement programs and clean energy job internships all serve to protect resources and engage future generations.

I am very proud of the work we are doing to create an inclusive environment within our company. Grounded in our company's Guiding Behaviors, over the last ten years, we

have seen a 9% increase in the number of women at PGE and a 38% increase in women in leadership. The number of Black, Indigenous and People of Color in our company grew by 39% overall and 110% in leadership.

PGE employees are also active members of the community in which we live and work, with PGE employees and retirees completing 22,957 volunteer hours during the year. The company contributed $5.5 million to charity though corporate contributions, the PGE Foundation, current and retired employee contributions and our company match program. Contributing to economic growth and community development in our service area remains an important part of PGE's culture.

Portland General Electric remains deeply committed to being responsible stewards of Oregon's vital resources. It will take all of us, working together and guided by our shared values, to power a prosperous, clean and vibrant future.

Maria Pope

President and CEO, PGE

At PGE, we pride ourselves on providing excellent service and being effective stewards of our resources. For more than 130 years, we've been a trusted partner to the communities we serve. Our commitment to customers, to environmental stewardship, to employees and their communities, to ethical conduct, transparency and sound governance has never wavered. We anchor our business decisions in these commitments, informed by the best available science and technology, to ensure reliable, affordable electricity service for the communities we serve.

PGE's holistic approach reflects our company's core values of service, accountability, affordability and sustainability and balances environmental, social and governance goals with our core mission to power Oregon's economy and communities. This is underscored by our commitment to deliver long-term results for our stakeholders, including our customers, shareholders

and communities.

In recent years, PGE has aggressively pursued Federal grant and tax credit opportunities to lower costs while growing the Company's renewable energy portfolio. We developed programs and technologies that help customers manage their energy use, pursued capital raises through

green financing, and attracted and retained a dedicated, talented and diverse workforce.

In 2024, we continued our commitment to delivering shared success through responsible business practices across all operational areas.

Since 2021, the year PGE first committed to an ambitious 80% emissions reduction target for 2030, PGE and its customers have committed to adding the equivalent of more than 2,900+ MW of new clean energy resources to the grid, including energy efficiency, rooftop solar and flexible demand response programs.

The new Clearwater Wind Energy Center increased our total wind generation to more than 1,000 MW a day - enough to power all our residential customers on wind energy alone - a milestone that we've hit repeatedly since Clearwater began operating. New, utility-scale battery systems including Constable, Sundial and Coffee Creek brought 292 MW of energy storage capacity to the grid in 2024, increasing the reliability of PGE's renewable energy portfolio.

Our environmental stewardship programs saw continued improvement as well. At PGE's hydro facilities, working with our partners, strong environmental stewardship increased

fish returns by 185% on the Clackamas River and 510% on the Deschutes River compared to our 10-year average. At the Round Butte Dam, we measured 733 steelhead upstream of the facility, the largest fish return at this site since construction.

From our first hydroelectric project on the Willamette River in 1889 - the site of the nation's first long-distance power transmission - to our state-of- the art salmon restoration programs delivering record breaking returns along the Deschutes and Clackamas rivers in 2024, we deploy business solutions that deliver lasting value for customers, communities, employees and shareholders.

As PGE grows and evolves to meet some of the most pressing challenges of our time, our environmental, social and governance strategy aligned with our core values will continue to guide us to shared success.

Kristen Sheeran, PhD

Vice President, Policy and Resource Planning, PGE

2024 Environmental, Social and Governance Report | Portland General Electric

Our focus areas and priorities

Our purpose is to power the advancement of society. Customers count on us to power their lives with safe, reliable and affordable energy, as they have for more than 130 years. We energize lives, strengthen communities, support sustainable livelihoods and deliver clean energy solutions that advance economic, social and environmental progress.

As our business continues to grow and evolve to meet some of the most pressing challenges of our time, we are committed to a long-term planning and decision-making approach that aligns with our key focus areas.

Affordability

Reliability

Decarbonization

Community

These focus areas closely align with several of the United Nations Sustainable Development Goals (SDGs)

- a set of 17 interlinked global goals aimed at achieving peace and prosperity for people and the planet.

We primarily focus on five U.N. SDGs that most directly align with our values and upon which we believe we can create the greatest impact.

PGE's wind farm, Wheatridge

2024 Environmental, Social and Governance Report | Portland General Electric

A decade of progress

KEY MOMENTS AND DISCLOSURE TIMELINE

We have a solid track record of performance - but we are continuously evolving our ambition and efforts to match the most pressing environmental and social equity challenges of our time.

2014

2015

Completed Tucannon

Achieved 15% Renewable

Wind farm

Portfolio Standard requirement

First year of reporting for

sustainability progress

2016

Collaborated on the passage of Oregon Clean Electricity and Coal Transition Plan law, doubling the state's RPS standard to 50%, while requiring PGE to remove coal from PGE's energy mix by 2030

2019

Launched Smart Grid Test Bed

Added SASB Framework and EEI ESG Quantitative Sustainability Template to Sustainability Report

2019

PGE and NextEra Energy Resources announced development of Wheatridge Renewable Energy Facility, the nation's first major energy facility co-locating wind, solar and battery storage

2021

Placed $150 million in green bonds following recent closing on $650 million sustainability- linked revolving credit facility

2021

Collaborated with Oregon lawmakers and stakeholders to pass one of the nation's most ambitious emissions reduction targets in the power sector (HB 2021)

2021

First U.S. utility to sign The Climate Pledge committing to net zero emissions by 2040, 10 years ahead of the Paris Accords Goal

2020

Permanently shuttered Boardman Generating Station, eliminating coal generation in Oregon

First stand-alone ESG Report published, including disclosures aligned with the TCFD framework

2021

PGE Board of Directors expands ESG oversight by amending Nominating and Corporate Governance Committee charter to include oversight of sustainability and ESG matters

2022

Issued green bonds to finance or refinance investments in assets and projects that advance our sustainability goals

2022

Issued the Company's first Human Rights

Policy Statement

Began reporting on progress toward U.N. SDGs

2023

Filed inaugural

Clean Energy Plan

2023

311 MW Clearwater wind energy facility began generating test energy in 2023 (and came fully online in 2024)

2023

In collaboration with other parties, awarded over $300 million in federal grant funding for projects to support the clean energy economy

2023

Announced procurement of three battery storage projects totaling 475 MW - the largest single procurement by a U.S. utility outside the state of California

2023

Executed, renewed and extended cooperative agreements for more than 500 MW of hydropower from regional public utility districts

2024

Produced a record output of more than 1 gigawatt of wind energy

2024

PGE customer actions resulted in the largest electricity demand shift in company history of 109 MW during multi-day heat wave

2024

Achieved supplier diversity target of 18%

2024

15 years of No. 1 ranking from the U.S. Department of Energy's National Renewable Energy Laboratory for the largest participation of customers in a renewable energy program among U.S. electric utilities

2024

PGE and its customers have committed to adding nearly 3 gigawatts of clean energy since 2021 (see Clean energy additions graphic)

2024 Environmental, Social and Governance Report | Portland General Electric

PGE's 2024 resources and emissions at a glance

RESOURCE MIX FOR PGE′S TOTAL SYSTEM LOAD¹

Retail and wholesale

2024 EMISSIONS FOR POWER SERVED TO OREGON CUSTOMERS

45%

NON-EMITTING

15%

26%

Wind

Solar²

Hydro³

13%

Other and

Coal

unspecified⁴

36%

Natural gas

5.90

0.28

million metric tons of CO₂e

metric tons of CO₂e per MWh

GHG emissions from power served

GHG intensity for power served to

to Oregon customers¹

Oregon customers¹

1. These figures are preliminary and based on generated and purchased energy associated with serving retail customers within the state of Oregon, as required by the Oregon Department of Environmental Quality (ODEQ). Some or all of the renewable energy attributes associated with PGE's Basic Service Mix may be sold, claimed or not acquired.

PGE HAS AMBITIOUS TARGETS TO REDUCE GHG EMISSIONS FROM POWER SERVED TO RETAIL CUSTOMERS WITHIN THE STATE OF OREGON

ROOFTOP SOLAR GENERATION

Customer-sited rooftop solar generation provided 264,826 MWh of non-emitting energy in our service territory.

Baseline (2010-2012 average emissions)

8.1 MMTC0₂e

80% reduction from baseline by 2030

1.62 MMTC0₂e

90% reduction from baseline by 2035

0.81 MMTC0₂e

100% reduction from baseline by 2040

0 MMTC0₂e

Scope 12

Scope 22

Scope 32

6.41 tons of CO₂e

0.04 tons of CO₂e

2.06 tons of CO₂e

million metric

Scope 1 emissions includes all of

Scope 2 emissions are emissions

Scope 3 emissions include the

PGE's direct emissions, made up of

related to transmission and

generation of purchased electricity

fuel burned by thermal generating

distribution line loss and emissions

then sold to end users. Reporting

resources, fuel burned by PGE's

associated with power purchased

and data collection capabilities

vehicle fleet and natural gas used at

from a third party that is consumed

are still being developed for other

PGE's office facilities.

by PGE.

Scope 3 sources of emissions.

2. Scope 1, 2 and 3 accounting reflects a company's carbon footprint across all corporate operations. PGE's Scope 1, 2 and 3 accounting includes emissions, above and beyond those associated with power served to Oregon customers.

PGE was the first utility in the U.S. to sign The Climate Pledge

There are currently

539 signatories¹

across 60 industries and 45 countries who have signed The Climate Pledge

1. theclimatepledge.com/us/en/Signatories

NET ZERO EMISSIONS TARGET

We have set a goal to achieve net zero emissions across our operations by 2040, which will require reducing PGE's Scope 1, 2 and 3 emissions. Our targets align with The Climate Pledge, which implements decarbonization timelines in accordance with the U.N. Paris Agreement.

2024 Environmental, Social and Governance Report | Portland General Electric

Resilient energy ecosystem

As Oregon's largest electricity provider, PGE has significant responsibilities to lower carbon emissions, steward critical habitats, protect air and water quality and minimize environmental impacts in the places we serve and call home.

At PGE, we are committed to a future in which all customers, communities and employees can thrive. Our decisions about how we provide electricity impact environmental health, safety and the quality of life today and for future generations. We base those decisions on the best available science, industry-leading knowledge and experience, risk- informed decision-making practices, data-driven analysis of alternatives and above all else, our privilege and obligation to serve Oregonians with reliable electricity at the lowest possible price.

We are confronting the impacts of climate change and extreme weather across our service territory and in the places where we generate, transact and transmit power. Wildfire risk, droughts, extreme storms and record

temperature events place some utility assets at risk and pose significant challenges for grid operations, power supply planning and utility management. Some communities we serve - including Black, Indigenous and People of Color (BIPOC), low-income and rural communities - are often disproportionately burdened by climate change and extreme weather and less prepared to withstand its impacts.

By collaborating with customers and communities, PGE aims to mitigate the disruptive impacts of climate change on Oregon's electricity system and protect Oregon's land, water and habitats, while making proactive investments in grid resilience, modernization, electrification and decarbonization.

North Fork Reservoir on the Clackamas River

A changing power supply

Our power supply is steadily decarbonizing to meet the needs of customers today and into the future.

While natural gas remains the largest component of our generating mix and provides much-needed capacity to

MORE ENERGY, FEWER EMISSIONS

PGE meets the growing energy demands of customers with a diverse mix of generation facilities owned in whole or in part, or through contract. Today, our generation portfolio consists of seven hydroelectric facilities, five natural gas facilities, three wind facilities, one combined wind/solar/ battery facility and a partial ownership stake in an out-of-state coal facility. PGE previously announced the acquisition of 475 MW of new battery storage projects, of which 275 MW achieved commercial operations in December 2024 with the remaining 200 MW scheduled for service in mid-2025.

Customer-sited resources, including rooftop solar, batteries and standby

role in our resource portfolio. For example, customer-sited rooftop solar generation contributed an additional 264,826 MWh of non-emitting energy in PGE service territory in 2024.

We manage the output of our own power plants in conjunction with available power supplies on the wholesale market to deliver power to customers at the lowest possible price. We actively coordinate with transmission providers like the Bonneville Power Administration and other utilities and energy suppliers across the region, to secure transmission access and additional power on contract for customers. We also own major transmission rights to

the California Independent System Operator's (CAISO) Energy Imbalance Market (EIM) and the soon-to-be established Extended Day-Ahead Market (EDAM). These options provide additional flexibility to buy and sell power and to access a more diverse and increasingly clean mix of generating resources.

In 2024, PGE made strong progress toward advancing a resource mix for our total system load that is increasingly clean. The percentage of total load comprised by non-emitting resources grew from 35% in 2023 to 45% in 2024. As a result, the carbon intensity of the power supply declined to 0.27 MMTCO2e per MWh in 2024,

meet resource adequacy and reliability requirements - hydropower, wind and utility-scale solar continue to grow on our system, in addition to customer- sited renewable energy resources like rooftop solar. Wind output alone grew by 56%, reaching record breaking levels of wind generation on our system in 2024 primarily due to the addition of the Clearwater Wind facility in Montana. Not only does this facility have a high energy output rate, but it also generates power when other wind resources closer to home in Oregon and Washington are less productive. This exemplifies the importance of resource diversity in our portfolio - and is a critical decarbonization strategy.

0.27

metric tons of CO2e per MWh is the

GHG intensity for PGE's power supply

Carbon intensity is an indicator of how clean PGE's electricity is. It is measured as carbon emissions per megawatt hour of energy produced for PGE's total system load. Monitoring and assessing the carbon intensity of our generation portfolio is important because it provides insights into how well PGE is doing to decarbonize, even when its total electricity load is increasing.

As reported on page 11, the carbon intensity for PGE's retail load is 0.28 MMTCO2e.

PERCENTAGE OF RESOURCES MIX FROM NON-EMITTING RESOURCES

45%

45-50%

75-80%

2024 (actual)

2025 (projected)

2030 (targeted)

generation play an increasingly critical

the Pacific Intertie and participate in

despite load growth on our system.

Unspecified emissions are reported when the underlying source of

3,500+ MWS OF GENERATION CAPACITY

CENTRAL EASTERN

OREGON OREGON

Pelton

Biglow Canyon

Round Butte

Carty

Coyote Springs

Wheatridge

generation for energy we purchase from the market, including from CAISO's Energy Imbalance Market, is unknown or not otherwise specified in a contract. Following best practice and ODEQ rules, we assign an emissions rate to unspecified purchases in recognition that the power pool in Western states still includes fossil fuel generation. Throughout 2024, PGE reduced emissions from unspecified sources, from 16% of our retail resource mix

in 2023 to 14% in 2024. As Western states decarbonize and energy markets such as CAISO adopt more precise mechanisms for tracking and reporting the carbon content of resources dispatched and allocated through energy markets, emissions associated with unspecified purchases should continue to decline in our system.

PGE recently concluded the largest open-application request for proposal

(RFP) for clean energy resources to augment our portfolio to date and we anticipate returning to the market with another RFP in 2025. This and subsequent RFPs will be necessary to meet customers' energy needs and PGE's emissions targets. PGE's steady progress in procuring clean energy and investing in grid-edge technologies and customer programs will reduce reliance on fossil fuels and drive a cleaner resource mix in future years.

MONTANA

EASTERN

Clearwater

WASHINGTON

Colstrip

Tucannon River

Wind Farm

Coal Gas Hydro Wind

Combined wind, solar, and battery Service territory

PGE'S HISTORY OF CLIMATE LEADERSHIP

In 2010, PGE negotiated the early closure of the 30-year-old Boardman Generation Station coal plant in Oregon, the state's only coal-fired facility and one of the youngest plants in the nation to retire due to air quality concerns. The plant ceased operations in 2020 and today that site may become the location for solar and storage or emerging green hydrogen technology through PGE's participation in the Department of Energy (DOE) funded Pacific Northwest Hydrogen Hub consortium. In 2016, PGE helped pass Oregon's landmark Coal to Clean bill, establishing a firm timeline for ending coal service for Oregon electricity customers. PGE continues to pursue an exit from Colstrip that balances reliable and affordable outcomes for customers, while also complying with Oregon state law to no longer serve retail customers with coal generated energy.

BEFORE: Boardman Generation Station

AFTER: Demolition of Boardman stack

2024 Environmental, Social and Governance Report | Portland General Electric

Climate commitments and emissions

Customers drive our commitments to clean energy, carbon reduction and sustainability.

PGE is more than one-third of the way toward the emission reductions needed to meet its 2030 emissions target

PGE customers include some of the world's most sophisticated corporate renewable energy buyers and local municipalities with ambitious climate action plans that call for transitioning to cleaner energy and lowering emissions. Portland, Beaverton, Multnomah County, Hillsboro, Salem and many other municipalities have developed climate action plans that encourage us to find new and innovative ways to reduce

the carbon intensity of the electricity we serve, while also supporting their electrification efforts, fostering economic development and modernizing the grid to enhance resilience to extreme weather.

Many companies in PGE's service territory have publicly adopted ambitious clean energy or emissions goals, including Oregon Health and Science University, Nike, Intel, STACK Infrastructure, Daimler and others. As large electricity buyers, they look to PGE to support their decarbonization efforts.

PGE supports customers' climate and sustainability goals by decarbonizing the electricity supply and offering innovative voluntary programs that enable customers to go further and faster. We offer programs for large businesses, cities and counties that match their electricity needs with new renewable energy facilities in our region. We also offer convenient options for small business and residential customers to support clean energy development by purchasing renewable energy certificates from energy generation throughout the U.S.

Because of customers' strong preferences for clean energy, PGE has embraced very ambitious targets for decarbonization.

In 2021, PGE became the first utility in North America to sign The Climate Pledge to achieve net zero emissions across company operations (Scope 1,

2 and 3 emissions) by 2040, ten years ahead of the United Nations' Paris Agreement. PGE then collaborated with state lawmakers and stakeholders to pass Oregon's 100% Clean Electricity Law (HB 2021) to establish emissions targets for electric utilities in Oregon. These targets apply to emissions associated with power served to Oregon retail customers and include an 80% reduction in emissions below an average 2010-2012 baseline, 90% reduction by 2030 and a 100% reduction by 2040.

PGE is actively exploring the process of third-party certification of our emissions targets, including the Science Based Target Initiative and other efforts underway by the power sector to develop a science-based target.

8.1 MMTCO2e*

5.90 MMTCO2e*

80% reduction

from baseline

1.62 MMTCO2e*

2010-2012 average baseline

2024

2030 target

* Emissions associated with power served to Oregon customers.

For the 15th straight year, the U.S. Department of Energy's National Renewable Energy Laboratory ranked PGE the first of any U.S. electric utility for customer participation in renewable energy programs.*

*NREL did not release rankings in 2011.

The Beaverton Public Safety Center equipped with an advanced solar microgrid (photo credit: Energy Trust of Oregon)

Emissions reporting

PGE has been a mandatory reporter of greenhouse gas emissions for all facilities to state regulators since 2010. Compliance with state emission targets is based on that reporting, which is also subject to third-party verification. Year-to-year variation in emissions is expected primarily due to fluctuations in temperature and hydro, wind and solar generation.

At the close of 2024, PGE disclosed a 27% reduction in baseline emissions from power served to Oregon retail customers. Emissions associated with power served to Oregon customers in 2024 equated to approximately

5.90 million metric tons of CO₂e. This is a 10% decrease in retail emissions reported in 2023, largely driven by

additional hydropower and the addition of the Clearwater Wind facility.

PGE also discloses material quantities of emissions from all power generation (retail and wholesale) and company operations as Scope 1, 2 and 3 sources of emissions. Scope 1 includes PGE's direct emissions, primarily from fuel burned by our thermal generating fleet and fuels used in PGE's vehicle fleet and buildings.

Scope 2 for an electric utility is relatively small and associated with transmission and distribution system line losses, and any electricity PGE purchases from third parties for our facilities.

Scope 3 is where PGE reports emissions associated with the power purchased for customers. As noted above,

PGE regularly turns to the market to

supplement generating resources to meet customers' energy needs reliably and affordably. PGE currently reports Scope 3 emissions from purchased power.

Like most utilities, PGE's emissions are driven by the fossil fuels combusted to generate power, accounting for more than 99% of our currently reported Scope 1, 2 and 3 emissions. This is why emissions reporting, emissions targets and clean energy strategies are largely focused on decarbonizing our power supply, either through generation or purchased power. PGE is actively planning and executing strategies for a balanced transition from thermal generation to increasingly cleaner generation sources while providing reliable energy service that can affordably meet customers' energy needs.

2024 Environmental, Social and Governance Report | Portland General Electric

PGE's Clean Energy Plan

Mitigating customer price impacts and maintaining system reliability are core priorities as PGE decarbonizes its power supply.

FUTURE STATE TECHNOLOGIES

DISPATCHABLE ENERGY:

In 2023, PGE published its combined Clean Energy Plan and Integrated Resource Plan, a twenty-year roadmap for meeting customer energy needs at the lowest possible costs while transitioning from fossil fuel generation. We demonstrated a path toward the 80% emissions reduction target in 2030 that involves resources and technologies that are economically and technically feasible in the region today. No single technology right now can

replace the role of natural gas generation in the electric power system. Clean energy of all types - including customer rooftop generation, community-scale microgrids that combine batteries

and solar, utility-scale wind, solar and batteries - energy efficiency and demand response programs and customer dispatchable standby generation will all be needed to replace the energy and backstop capacity that natural gas currently provides.

As we look ahead to deeper decarbonization targets in 2035 and beyond, PGE anticipates the need for access to a broader geographic diversity of resources and technologies to replace fossil fuels on the grid. This will require solutions to current regional transmission constraints and adopting future non-emitting technologies as they become cost-effective. This could include green hydrogen, offshore wind, nuclear, long-duration storage and carbon capture and storage.

Reliance on wind, solar and short-duration storage exposes portfolios to energy shortfalls and reliance on thermal generation until more non-emitting dispatchable generation is a reality for our region.

CLEAN ENERGY ADDITIONS*

Achieving emissions reduction requires steadily adding renewable energy, battery storage, energy efficiency and demand response to our portfolio, so we can reliably and affordably reduce fossil fuel generation.

Since PGE implemented its emission targets in 2021, PGE and its customers have committed to adding 2,900+ MW of clean energy.

Clean energy additions since 2021

Advanced nuclear

Both small modular reactors and advanced nuclear reactors offer potential emissions-free power in the future. The designs' modular construction lowers costs and reduces risks, though siting in Oregon is currently prohibited.

Enhanced geothermal

Enhanced geothermal has not yet been successfully demonstrated in the Northwest, but the technical potential for geothermal remains.

Carbon capture storage (CCS)

CCS technology is the beneficiary of substantial tax credits in the Inflation Reduction Act. Compression, storage and mineralization in the Northwest basalt geology is claimed to resolve the long-term CO2 escape risks.

Wind

Batteries

Hydro contracts

• Clearwater 2024: 311 MW

• Wheatridge Battery 2022: 30 MW

• Mid-C PPA 2023 (2024-2025):

Utility scale solar

• Constable 2024: 75 MW

76 MW

• Sundial 2024: 200 MW

• Mid-C PPA 2023 (2024-2026):

• Wheatridge Solar 2022: 50 MW

• Coffee Creek 2024: 17 MW

434 MW

• Patchwayit Solar** 2023: 162 MW

• Seaside 2025: 200 MW

• Douglas PUD 2024 (2026-2030):

• Tower Solar** 2026: 120 MW

• Other BESS facilities: 8 MW

79 MW

• Daybreak Solar** 2026: 138 MW

Small-scale solar

Customer programs

• Bakeoven Solar** 2026: 60 MW

• Community Solar & QFs: 96 MW

• Energy Efficiency***: 122 aMW

• Rooftop Solar: 172 MW

• Demand Response****: 603 MW

Next steps:

LONG DURATION STORAGE:

Without dispatchable carbon sources, PGE will require additional renewables paired with long-duration energy storage resources to meet load.

PGE received Commission

PGE will solicit the market

PGE is executing on plans to shift

acknowledgement to pursue

through RFPs for renewable

up to 25% of peak energy demand

over 1,600 MWs of renewable

energy resources and storage,

through distributed resources and

energy and storage from its 2023

starting again in 2025.

customer programs coordinated

All-Source RFP final short list.

through our virtual power plant.

Green hydrogen

Electrolysis allows for surplus renewable energy to be stored as green hydrogen in 100+ mile pressurized pipelines to allow for carbon free electricity generation through combustion.

Iron-air energy storage

Compressed air

Iron-air stationary battery storage

Advanced compressed

has the potential to allow for non-

air energy (A-CESC) is

flammable, low-energy density

a long-term energy storage

and low-cost per unit MWh long-

technology which has

duration energy storage.

renewed commercial interest.

2024 Environmental, Social and Governance Report | Portland General Electric

Disclaimer

PGE - Portland General Electric Company published this content on March 05, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 06, 2025 at 08:06:04.999.