Portland General Electric Co · NYSE:POR
Portland General Electric — Q2 2013 Earnings Presentation
18 slides from Portland General Electric's earnings presentation, Aug 2, 2013
Slide 1: Earnings Conference Call Second Quarter 2013
Earnings Conference Call Second Quarter 2013 1 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement 2 Information Current as of August 2, 2013 Except as expressly noted, the information in this presentation is current as of August 2, 2013 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 — and should not be relied upon as being
Slide 3: Leadership Presenting Today
Leadership Presenting Today 3 Jim Lobdell Senior Vice President, Finance, CFO & Treasurer Jim Piro President & CEO
Slide 4: On Today's Call
On Today’s Call 4 Strategic Initiatives General Rate Case Operational Update Economy and Customers Financial Update 2013 Outlook
Slide 5: Q2 2013 Earnings Results
Q2 2013 Earnings Results Q1 $0.65 Q1 $0.65 Q2 $0.34 Q2 ($0.29) Q3 $0.50 Q4 $0.38 2012 EPS 2013E EPS 5 NI in millions Q2 2012 Q2 2013 2012 Actuals 2013 Guidance Net Income (Loss) $26 $(22) $141 $96 - $108 EPS (Loss) $0.34 $(0.29) $1.87 $1.25 - $1.40 $1.87 $1.25-$1.40
Slide 6: Strategic Initiatives: Capacity Resources
Strategic Initiatives: Capacity Resources 6 Peaking Capacity Seasonal Capacity Project Name Port Westward Unit 2 Purchased Power Agreements with Iberdrola Project Location Clatskanie, OR 100 MW of winter capacity 100 MW of summer capacity Project Type PGE’s Benchmark Bid Capacity Fuel Technology 220
Slide 7: Strategic Initiatives: Baseload Resources
Strategic Initiatives: Baseload Resources 7 Baseload Energy Project Name Carty Generating Station Project Location Boardman, OR Project Type EPC Contract on Benchmark Site Capacity Fuel Technology 440 MW Natural Gas Mitsubishi CCGT Estimated Capital Cost (excluding AFDC) $450 million Estimated In-Se
Slide 8: Strategic Initiatives: Renewable Resources
Strategic Initiatives: Renewable Resources 8 Renewable Energy Project Name Tucannon River Wind Farm Project Location Columbia County, WA Project Type EPC Contract on Third Party Site Capacity Fuel Technology 267 MW Wind Project Siemens Turbines Estimated Capital Cost (excluding AFDC) $500 million Es
Slide 9: Expected Rate Base and Capital Expenditures
Expected Rate Base and Capital Expenditures 9 $1.4B of Expected Increase in Rate Base (in millions) 2013 2014 2015 2016 2017 TOTAL Base Capital Spending(1) $338 $354 $284 $262 $242 $1,480 Port Westward Unit 2 $161 $129 $10 $300 Carty Generating Station $123 $167 $112 $48 $450 Tucannon River Wind Far
Slide 10: General Rate Case: 2014 Test Year
General Rate Case: 2014 Test Year Partial Settlement and Stipulation filed July 10, 2013: Return on Equity (ROE): 9.75% Capital Structure: 50% debt, 50% equity Rate base: $3.1 billion New customer prices effective January 1, 2014 10 Original Filing Request (in millions) $105 UE 262 Non-Pow
Slide 11: Operational Update – Plant Outages
Operational Update –Plant Outages 11 in millions Boardman Colstrip Unit 4 Replacement Power Costs (PGE share) $3-$4 $7-$8 Potential Repair Costs (Full Cost) $10 $30-$40 Insurance Deductible (Full Cost) $2.5 $2.5 While the split between O&M and capital has not been determined, we estimate that a majo
Slide 12: Economic Outlook & Customer Satisfaction
Economic Outlook & Customer Satisfaction 12 Growth in Operating Area Unemployment rate of 6.8% in core operating area Improved housing market, increasing new connects Weather-adjusted load growth quarter over quarter
Slide 13: Second Quarter Financial Results
Second Quarter Financial Results Quarter over Quarter Drivers of Results 13 NI in millions Q2 2012 Q2 2013 Net Income (Loss) $26 $(22) EPS (Loss) $0.34 $(0.29) in millions, pre-tax Q2 over Q2 Cascade Crossing expense $(52) Customer billing matter $(9) Generation/delivery system expense $(12)
Slide 14: Retail Revenues and Power Costs
Retail Revenues and Power Costs 14 in millions Q2 2012 Q2 2013 YTD 2012 YTD 2013 Total Revenues $413 $403 $892 $876 Power Costs $156 $156 $351 $348 PCAM Results 2012 2013 Q1 $5 million below baseline $1 million below baseline Q2 $5 million below baseline $13 million below baseline YTD $10 million be
Slide 15: Operating Expenses and Interest Expense
Operating Expenses 15 Interest Expense $27 $25 $55 $50 in millions Q2 2012 Q2 2013 YTD 2012 YTD 2013 Production & Distribution $51 $64 $104 $115 Administrative & General $56 $55 $110 $109 Total O&M $107 $119 $214 $224 Cascade Crossing Expense -- $52 -- $52 Depreciation & Amortization $63 $62 $125 $1
Slide 16: Liquidity and Financing
Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A2 Baa1 Stable Credit Ratings Total Liquidity as of 6/30/13 (in millions) Credit Facilities $722 Commercial Paper -- Letters of Credit $(54) Cash $119 Available $787 16 $69 $108 $68 $193 $81 $92 2012 2013E Q4 Q
Slide 17: 2013 Earnings Guidance Progression
2013 Earnings Guidance Progression 17 2/24/13 Original 2013 Earnings Guidance $1.85 - $2.00 5/1/13 Q1 2013 Earnings Call no change 6/3/13 Cascade Crossing project suspension Customer billing refund $(0.42) $(0.07) Guidance Revised Downward $1.35 - $1.50 8/2/13 Replacement power costs: $10 - $12 mill
Slide 18: 2013 Earnings Guidance Assumptions
18 2013 Earnings Guidance Assumptions 2013 EPS Guidance: $1.25 - $1.40 per share Energy deliveries comparable to weather-adjusted 2012 O&M expense between $440 and $460 million D&A expense between $240 and $250 million Assumptions for FY 2013 Capital expenditures between $710 and $730 millio
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