Portland General Electric Co · NYSE:POR

Portland General Electric — Q1 2014 Earnings Presentation

16 slides from Portland General Electric's earnings presentation, Apr 29, 2014

  1. Slide 1: Earnings Conference Call First Quarter 2014

    Earnings Conference Call First Quarter 2014 1 Exhibit 99.2

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 Information Current as of April 29, 2014 Except as expressly noted, the information in this presentation is current as of April 29, 2014 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 — and should not be relied upon as bein

  3. Slide 3: Leadership Presenting Today

    Leadership Presenting Today 3 Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO On Today’s Call  Operational Update  Economy and Customers  Growth Initiatives  Regulatory Update  Financial Update  2014 Outlook

  4. Slide 4: Q1 2014 Earnings Results

    Q1 2014 Earnings Results Q1 $0.65 Q1 $0.73 Q2 ($0.29) Q2 $0.45 Q3 $0.40 Q3 $0.45 Q4 $0.59 Q4 $0.45 2013 EPS 2014E EPS 4 NI in millions Q1 2013 Q1 2014 Net Income $49 $58 EPS (diluted) $0.65 $0.73 $1.35 $2.05 - $2.20 Q2-Q4: $1.32 - $1.47

  5. Slide 5: Operational Update

    Operational Update 5 residential customer satisfaction general business customer satisfaction key customer satisfaction Top Quartile Top Decile Top Decile improved safety enhanced customer service greater productivity improved efficiency

  6. Slide 6: Economic Outlook

    Economic Outlook 6 Economic Outlook  Unemployment rate of 6.2% in core operating area  Employment growth in construction, hospitality, & manufacturing  Weather-normalized 2014 load growth forecast of approximately 1%(1) (excluding a low-margin large paper customer)  Industrial growth still stron

  7. Slide 7: New Generation: Capacity Resource

    New Generation: Capacity Resource 7 $155 $135 $10 2013 2014 2015 PW2 CapEx: $300M (in millions) Port Westward Unit 2 Project Location Clatskanie, OR Capacity / Fuel 220 MW / Natural Gas Technology 12 Natural Gas Wärtsilä Reciprocating Engines EPC Contractor Black & Veatch, Harder Mechanical Estimate

  8. Slide 8: New Generation: Renewable Resource

    New Generation: Renewable Resource 8 $95 $390 $15 2013 2014 2015 Tucannon River CapEx: $500M (in millions) Tucannon River Wind Farm Project Location Columbia County, WA Capacity / Fuel 267 MW / Wind Technology 116 2.3 MW Siemens Turbines EPC Contractor RES Americas Estimated In-Service Date December

  9. Slide 9: New Generation: Baseload Resource

    New Generation: Baseload Resource 9 $135 $115 $165 $35 2013 2014 2015 2016 Carty CapEx: $450M (in millions) Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440 MW / Natural Gas Technology Mitsubishi Turbine EPC Contractor Abener/Abengoa Estimated In-Service Date Mid 2016 Custo

  10. Slide 10: Expected Rate Base and Capital Expenditures

    Expected Rate Base and Capital Expenditures 10 $1.4B of Expected Increase in Rate Base (in millions) 2013 2014E 2015E 2016E 2017E 2018E TOTAL Base Capital Spending(1) $335 $370 $310 $300 $255 $245 $1,815 Port Westward Unit 2 $155 $135 $10 $300 Tucannon River Wind Farm $95 $390 $15 $500 Carty Generat

  11. Slide 11: General Rate Case: 2015 Test Year

     Filed on February 13, 2014  Requested revenue increase: $81 million  Return on Equity (ROE): 10%  Cost of Capital: 50% debt, 50% equity  Rate base: $3.9 billion  Final order expected from the Commission in mid-December  Average overall price increase (all components) of 4.6 percent General R

  12. Slide 12: First Quarter Financial Results

    First Quarter Financial Results 12 NI in millions Q1 2013 Q1 2014 Net Income $49 $58 Diluted EPS $0.65 $0.73 Key Quarter over Quarter Drivers Total retail revenues h AFDC primarily due to generation projects h EPS dilution from higher average shares outstanding i

  13. Slide 13: Total Revenues and Power Costs

    Total Revenues and Power Costs in millions Q1 2013 Q1 2014 Total Revenues $473 $493 Power Costs $192 $184 25% 18% 16% 5% 36% Q1 2013 Sources of Power Coal Natural Gas Hydro Renewable Purchased Power 13 23% 18% 17% 5% 37% Q1 2014 Sources of Power

  14. Slide 14: Operating Expenses

    Operating Expenses 14 Interest Expense, Net $25 $25 in millions Q1 2013 Q1 2014 Production & Distribution $51 $54 Administrative & General $54 $54 Total O&M $105 $108 Depreciation & Amortization $62 $75 Other Income, Net $3 $5 Income Taxes $17 $20

  15. Slide 15: Liquidity and Financing

    Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Liquidity as of 3/31/2014 (in millions) Credit Facilities $760 Commercial Paper -- Letters of Credit $(60) Cash $64 Available $764 15 Expected 2014-2015 Financing Plans Q2 2014 Q3 2014 Q4 201

  16. Slide 16: 2014 Guidance

    16 2014 Guidance 2014 EPS Guidance: $2.05 to $2.20 per share  O&M expense between $480 and $500 million  D&A expense between $295 and $305 million  Capital expenditures slightly above $1 billion  Wind generation based on historical actuals  Average hydro conditions  Normal thermal plant operat

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