Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (March 2021)
33 slides from Portland General Electric's investor presentation, Mar 15, 2021
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC MARCH 15, 2021
Slide 2: Cautionary statement
Cautionary statement Information Current as of February 19, 2021 Investor Relations Contacts Except as expressly noted, the information in this presentation is current as of February 19, 2021 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2020 — and shou
Slide 3: The Company
The Company
Slide 4: PGE at a glance
PGE at a glance 3,300+ MWs of Generation Beaver Washington Port Westward 1 & 2 Quick facts Tucannon River OREGON WASHINGTON Wind Farm • Vertically integrated electric utility encompassing generation, 26 transmission and distribution Columbia River Eastern Oregon Coyote Springs • 900,000 retail custo
Slide 5: Investment thesis
Investment thesis Focusing Delivering Investing in a Building a High-growth on operational exceptional 100% regulated reliable and clean smarter more service area effectiveness customer utility energy future resilient grid and efficiency experiences Strong underlying operations • Continuing to imple
Slide 6: Strategic goals
Strategic goals Providing safe, reliable, affordable, clean and secure energy solutions to power our customers’ lives everyday Decarbonize Electrify Perform The power we supply to our Other areas of the economy, By improving work efficiency, the customers including transportation and safety of our c
Slide 7: Diverse, growing service area
Diverse, growing service area • Desirable core metro service area with strong population growth supporting retail and services (government, education, restaurants, healthcare, and other OREGON WASHINGTON services) 26 Columbia River • Residential customers accounted for 40% of retail deliveries in 20
Slide 8: Constructive regulatory environment
Constructive regulatory environment Regulatory construct • Forward test year • Integrated Resource Planning (IRP) • Renewable Portfolio Standard (RPS) • Proven track record of achieving reasonable Commission-approved settlements Regulatory body • Public Utility Commission of Oregon • Governor-appoin
Slide 9: Capital Planning
Capital Planning $774 $9 $129 $655 $5 $77 $100 $550 $550 $550 $550 $35 $30 $30 $30 $30 $30 $52 $55 $55 $55 $55 $55 $389 $375 $385 $385 $385 $385 $83 $90 $80 $80 $80 $80 2020(1) 2021 2022 2023 2024 2025 Production Transmission and Distribution General Plant Intangible Integrated Operations Center Whe
Slide 10: 2019 Integrated Resource Plan
2019 Integrated Resource Plan PGE’s action plan was acknowledged by the Commission in May 2020 July 2019 Q3-Q4 2019 January 2020 Action Plan Comments filed by Staff Memorandum Public meeting The plan reflects our focus onStaff/Stakeholders/PGE meeting customer needs and addressing due stakeholder Fi
Slide 11: Key strengths
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Slide 12: Focus on customers
Focus on customers Top quartile system reliability “Customer Delight” – Overall Satisfaction Edison Electric Institute 9-10 Ratings – Residential Customers 70% Top quartile customer satisfaction among large electric and electric & gas utilities J.D. Power Electric Utility Syndicated Studies 60% Trus
Slide 13: Decarbonizing our generation
Decarbonizing our generation Increasing carbon free power sources for a clean and reliable energy future • Permanently shuttered Boardman Generating Station ending generation at the only coal-fired power plant in Oregon • Plan to transition PGE customers off coal-fired generation by 2030 Power sourc
Slide 14: High-quality utility operations
High-quality utility operations Improving security, resiliency, and reliability for our Integrated Operations Center customers • A new 24/7 center for key operations • Strong power supply portfolio management and • Significantly improves seismic resilience, cyber and Western Energy Imbalance Market
Slide 15: Strong liquidity position for growth
Strong liquidity position for growth Available liquidity(1) Expected 2021 (dollars in millions) financings Q1 Q2 Q3 Q4 (dollars in millions) Revolving Long-Term Debt Credit Available - - - $100 Facility(2) Cash + Credit + Securities Cash Cash Short-term debt $200 - - - Letters of Equivalents $500 Cr
Slide 16: Long-term financial performance
Long-term financial performance Net income, earnings per share, and ROE $2.75(2) $2.55(3) $2.37 $2.39 $2.70(3) $2.29(1) EPS (diluted) $2.10(1) Long-term $1.72(2) 4 to 6% Net income earnings growth (dollars in millions) $212 $214 from $187 (1) 2019 base year $155 2017(1) 2018 2019 2020 2021E (3) Acco
Slide 17: Proven dividend growth
Proven dividend growth $1.56 $1.63(4) Dividends paid per common $1.50 share(3) $1.41 $1.32 $1.24 Target Payout $1.16 70% $1.07 $1.09 $1.11 Ratio Actual Payout 60% Ratio 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Long-term dividend growth guidance of 5-7%(4) (1) Compound Annual Growth Rate fro
Slide 18: Environmental, Social and Governance
Environmental, Social and Governance
Slide 19: Aggressive decarbonization goals
Aggressive decarbonization goals We aim to achieve companywide net zero greenhouse gas emissions by 2040 Reducing emissions associated with the power serving customers • Reducing greenhouse gas emissions associated with the power supplied to customers by at least 80% by 2030 (from 2010 levels) • End
Slide 20: Moving toward a carbon neutral future
Moving toward a carbon neutral future Increasing renewables in our portfolio 5,000 Renewable Additions (MW) • Layered approach balances near-term and long-term risks 4,000 and benefits for customers • Incremental renewable actions reduce near-term carbon 3,000 emissions and puts PGE on track to meet
Slide 21: Human capital management and culture
Human capital management and culture Our people and our culture are critical to our continued success. We seek to attract and retain a talented, motivated, and diverse workforce and to maintain a culture that reflects our core values, our drive for performance, and our commitment to acting with the
Slide 22: ESG accountability
ESG accountability Responsibility for environmental, social and governance (ESG) performance is integrated with the policies and principles that govern our company Board oversight Led by the Chair, our Board oversees ESG and sustainability issues and initiatives through four committees: Audit and Ri
Slide 23: Robust governance
Robust governance PGE is committed to conducting business in accordance with high standards of corporate governance to achieve our mission while creating value for our shareholders, customers, and other stakeholders Effective board leadership and independent Race/Ethnic Diversity oversight • Active
Slide 24: Sustainability Reporting
Sustainability Reporting PGE is committed to transparency and has shared data on our operations and environmental impact as part of our sustainability reporting since 2013 PGE adopted the Edison Electric Institute’s PGE expanded its level of transparency Our 2019 Sustainability Key Metrics framework
Slide 25: Appendices
Portland General Electric APPENDICES
Slide 26: CFO Transition
CFO Transition Jim Ajello Senior Vice President of Finance; Chief Financial Officer and Treasurer • Oversees all aspects of Portland General Electric’s accounting, finance, tax and investor relations efforts • Brings an extensive background in both energy and finance, including over eight years as e
Slide 27: COVID-19
COVID-19 COVID-19 did not have a material impact on PGE’s financial condition and cash flows in 2020 and the Company continues to have sufficient liquidity to meet the Company’s anticipated capital and operating requirements going forward • 2021 earnings guidance reflects the ongoing impact of COVID
Slide 28: Oregon wildfires
Oregon wildfires Wildfires in PGE’s service territory Legal liability framework • In September 2020, Oregon experienced one of the • PGE is not aware of any Oregon case allowing inverse most devastating wildfires on record. Three of condemnation claim to proceed against a private Oregon’s named wild
Slide 29: Long-term debt maturity schedule
Long-term debt maturity schedule Manageable debt maturities Dollars in millions $310 $275 $200 $98 $175 $170 $160 $160 $160 $150 $150 $150 $130 $100 $105 $100 $100 $80 $70 $75 $70 29
Slide 30: Recovery of power costs
Recovery of power costs Annual power cost update tariff • Annual reset of prices based on forecast of net variable power costs (NVPC) for the coming year • Subject to OPUC prudency review and approval, new prices go into effect on or around January 1 of the following year Power Cost Adjustment Mecha
Slide 31: Renewable portfolio standard
Renewable portfolio standard Additional renewable resources • As of 2019, PGE had the following qualifying renewable resources: Renewable Portfolio Standard 50% Type of Resource % of Retail Load 45% 35% Wind 11.0% 27% Low-Impact Hydro 2.5% 20% Solar & Other <1% 2020 2025 2030 2035 2040 • Renewable P
Slide 32: Decoupling Mechanism
Decoupling Mechanism The decoupling mechanism is intended to allow recovery of margin lost due to a reduction in sales of electricity resulting from customers’ energy efficiency and conservation efforts Collections under the decoupling mechanism are subject to an annual limitation of 2% of the appli
Slide 33: Average retail price comparison
Average retail price comparison Residential Electric Service Prices: Commercial Electric Service Prices: 1,000 kWh monthly consumption 40 kW demand and 14,000 kWh monthly consumption (Prices in cents per kWh) (Prices in cents per kWh) EEI U.S. Average 13.8 EEI U.S. Average 11.5 PGE - Sch 7 (OR) 12.7
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