Portland General Electric Co · NYSE:POR
Portland General Electric — Q4 2022 Earnings Presentation
16 slides from Portland General Electric's earnings presentation, Feb 16, 2023
Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2022
Exhibit 99.2 Portland General Electric EARNINGS CONFERENCE CALL FOURTH QUARTER AND FULL YEAR 2022
Slide 2: Cautionary statement
Cautionary statement Information Current as of February 16, 2023 Except as expressly noted, the information in this presentation is current as of February 16, 2023 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2022 — and should not be relied upon as bei
Slide 3: Topics for today's call
Topics for today’s call Business Update Maria Pope, President and CEO • Year in review • Strategic priorities • 2023 outlook Financial Update Jim Ajello, Senior VP of Finance, CFO, Treasurer and CCO • Economy and load growth • 2022 earnings drivers • 2024 general rate case • RFP update and capital i
Slide 4: 2022 financial results
2022 Load Growth 2022 financial results • Year-over-year load growth of 2.0%, weather adjusted • Residential deliveries Q4 2022 Q4 2021 2022 YTD 2021 YTD down 1.4%, weather adjusted GAAP net income (in millions) $50 $66 $233 $244 • Commercial deliveries GAAP diluted earnings per share (EPS) $0.56 $0
Slide 5: Our strategic priorities
Our strategic priorities Performance Risk Management Growth Driving operational efficiencies Focusing on high-return Building the clean energy through disciplined execution initiatives to enhance resiliency in future and a more resilient and and management the face of growing climate risks reliable
Slide 6: 2022 earnings bridge
2022 earnings bridge 2021 Retail Net variable Operating Depreciation Property Interest Prior year Other 2022 2020 2022 GAAP EPS revenue power costs expense and and expense local tax Non-GAAP Wildfire GAAP EPS amortization payroll tax flow- EPS and expense through COVID adjustment deferral reversal 6
Slide 7: 2024 General Rate Case
2024 General Rate Case Rate Case Key Terms Rate Base $6.3 billion Rate Base Increase $859 million, 16% ROE 9.8% Capital Structure 50/50 Cost of Debt 4.32% Cost of Capital 7.06% Revenue Requirement Increase $338 million • Modify Power Cost Adjustment Mechanism (PCAM) structure • Remove deadbands with
Slide 8: Update on RFP processes
Update on RFP processes Remaining 2021 RFP Milestones 1H 2023 Expected execution of final contracts with additional winning bidders With the execution of the Clearwater Wind project in Q4 2022, PGE is still seeking approximately: • 375 MW of non-emitting dispatchable capacity resources that can be
Slide 9: Reliability and resiliency investments
Reliability and resiliency investments $1,210 with Capital expenditures forecast(1) Clearwater $415 $795 $775 $800 $730 $750 $130 $100 $100 $100 $100 $530 $530 $555 $580 $505 $135 $125 $120 $120 $120 2023 2024 2025 2026 2027 Generation Transmission and Distribution General Business and Technology Cl
Slide 10: Investing in a clean energy future
Investing in a clean energy future Charting the course toward a clean, affordable, and reliable energy future 3,100 4,000 Total need of 3,000 to 4,000 MW of non- emitting resources (generation and capacity) to meet 2030 emissions targets ~2,200 to 3,100 MW of new resource additions remain after Mega
Slide 11: Illustrative rate base growth
Illustrative rate base growth • PGE’s five-year base plus Clearwater Wind capital expenditure forecast of $4.3 billion drives 5.8% rate base growth from 2022 base year • Illustrative incremental RFP opportunities(1) potentially increase rate base growth to 8.5%, from 2022 base year • Amounts present
Slide 12: Liquidity and financing
Liquidity and financing Total Liquidity: $938 million Ratings S&P Moody’s as of December 31, 2022 (dollars in millions) Senior Secured A A1 Senior Unsecured BBB+ A3 Commercial Paper A-2 P-2 Cash $165 Outlook Stable Stable Letters of Expected 2023 Credit financings Q1 Q2 Q3 Q4 $123 (dollars in millio
Slide 13: 2023 Earnings Guidance
2023 Earnings Guidance PGE is initiating full-year 2023 adjusted earnings guidance of $2.60 to $2.75 per diluted share based on the following assumptions: • An increase in energy deliveries between 2.5% and 3%, weather adjusted • Normal temperatures and thermal plant operations • Hydro conditions fo
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP financial measures
Non-GAAP financial measures This presentation contains certain non-GAAP measures, such as adjusted earnings, adjusted EPS and adjusted earnings guidance. These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities, are infrequent in n
Slide 16: Non-GAAP financial measures
Non-GAAP financial measures Non-GAAP Earnings Reconciliation for the quarter ended March 31, 2022 (Dollars in millions, except EPS) Net Income Diluted EPS GAAP as reported for the quarter ended March 31, 2022 $60 $0.67 Exclusion of released deferrals related to 2020 17 0.19 Tax effect (1) (5) (0.05)
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