Portland General Electric Co · NYSE:POR
Portland General Electric — Non-Deal Roadshow (August 2007)
29 slides from Portland General Electric's roadshow presentation, Aug 13, 2007
Slide 1: Investor Roadshow August 2007
Exhibit 99.1 Investor Roadshow August 2007 Copyright © 2007 Portland General Electric. All Rights Reserved.
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of August 3, 2007 The information in this presentation is current as of August3, 2007 - the date on which PGE filed its QuarterlyReport on Form 10-Q for the quarterended June 30, 2007 - and should not be relied upon as being current as of any subsequent da
Slide 3: Presenting Team
Presenting Team Jim Piro, Executive Vice President, Finance, Chief Financial Officer and Treasurer Bill Valach, Director of Investor Relations Chris Liddle, Analyst, Investor Relations 3
Slide 4: Investment Highlights
Investment Highlights • Portland General Electric is a well-capitalized, vertically integrated, regulated electric utility • Earnings and dividend growth driven by load growth and investment in regulated assets – Annual capital expenditures are expected to significantly exceed depreciation • Diversi
Slide 5: Company Overview
Company Overview • 793,000 retail customer accounts • Service territory population 1.6 million, WA 43% of state’s population • 52 cities served – Portland and Salem the largest OR • Net Utility Plant – $2.31 billion(1) – Generation $536 million – Distribution $987 million Beaver Port Westward – Tran
Slide 6: Statement of Direction: 2007-2009
Statement of Direction: 2007-2009 Focus Goals: Reliable, reasonably priced power – Design and maintain a reliable energy resource portfolio, maintaining high plant availability and achieving stable, predictable and reasonable prices. High customer value – Achieve high customer value by doing a great
Slide 7: Attractive and Growing Customer Base
Attractive and Growing Customer Base Revenue by Customer Group Energy Revenues (000s of Customers (1) ($ mm) (1) MWh) (1) Residential Industrial Residential 696,779 $628 7,573 15% Commercial 95,734 541 7,749 46% Industrial 259 200 4,110 Total 792,772 $1,369 19,432 39% Retail Revenue and Load Growth
Slide 8: Growing Oregon Economy
Growing Oregon Economy • Growth in Oregon’s economy is expected to require further investment by PGE to meet increased energy demand – Growth in Portland and Salem exceeds rest of state – core operational areas for PGE • Taking advantage of steady state population growth, PGE has achieved annual cus
Slide 9: Investment Opportunities
Investment Opportunities Regulated Growth Capital Expenditures Range 1 • Net short utility ($ mm) $700 $650 - $670 • Growing customer base $600 $525 - $535 $500 • Capital investments outpace depreciation $400 $310 - $330 $300 • Potential capital investment of 2 $550 - $650 million for Biglow $200 Ca
Slide 10: Power Supply Strategy
Power Supply Strategy • Manage power supply operations to: – Capitalize on PGE’s assets and position in the marketplace – Meet load in most economic fashion to lower costs to customers – Capture the benefits of PGE’s assets and their positioning in real-time markets – Manage and monitor risks with a
Slide 11: Power Supply Portfolio
Power Supply Portfolio 2007E Generation Capacity Physical % of Total Boardman Coal Plant Capacity Capacity Hydro Deschutes River Projects 298 MW 7.8% Clackamas/Willamette River Projects(1) 212 5.5 Hydro Contracts 602 15.7 1,112 29.1 Natural Gas/Oil Beaver Units 1-8 545 MW 14.3% Coyote Springs 243 6.
Slide 12: Generation Expansion – Port Westward
Generation Expansion – Port Westward Port Westward August 2001 March 2006 • Clatskanie, Oregon • CCGT utilizing Mitsubishi G-class turbine • 400 MW gas-fired plant • 6,826 heat rate June 2007 (without duct-firing) • $280 million (through June 30, 2007, including AFDC) • Placed into service June 11,
Slide 13: Generation Expansion - Biglow
Generation Expansion - Biglow Biglow Canyon Wind Farm • Columbia Gorge, eastern Oregon • 400 – 450 MW total installed capacity • Phase 1: 125 MW – $255 - $265 million (including AFDC) – 76 Vestas turbines – 1.65 MW/turbine – 37% capacity factor – 27 year asset life • Expected online December 2007 •
Slide 14: Generation Growth Opportunity
Generation Growth Opportunity Load Resource Balance Annual Average Energy(1)(2) 3000 Retail Load Load Growth 2500 1,003 MWa 818 MWa PGE’s retail load is expected to grow 2000 consistently while selected long-term 1500 Long-term Contracts power purchase contracts expire, driving 1000 need for additio
Slide 15: Generation Growth Opportunity: Proposed Action Plan
Generation Growth Opportunity Proposed Action Plan Energy Capacity Energy/Capacity Actions (1) (2) MWa % of Target MW(2) 2012 Resource Target 818 - 1,540 Additional cost-effective EE 2008 – 2012 45 5% 59 Plant efficiency upgrades 7 1% 13 Hydro 70 9% 170 Biglow Canyon II & III (300 MW nameplate) 105
Slide 16: Generation Growth Opportunity: Proposed Action Plan - Generation Capacity
Generation Growth Opportunity Proposed Action Plan - Generation Capacity 2007E Power Sources(1) 2012E Power Sources(1) EE, DSG & Load Control Purchased Coal Coal 8% 18% Purchased 16% 22% 17% 21% Hydro(2) 29% 31% Gas Hydro(2) 32% 6% Gas Non-hydro Renewables Total PGE System Capability(3) 3,003 MW Tot
Slide 17: Forward Capital Expenditures Driving Rate Base Growth
Forward Capital Expenditures Driving Rate Base Growth Capital Expenditures • Attractive growth opportunities through capital investment in core utility assets • Earnings expected to grow 4 to 6 percent per year over the long term Projects (in millions)¹ 2007 2008 2009 2010 2011 2 Advanced Metering I
Slide 18: Proactive Regulatory Strategy
Proactive Regulatory Strategy Oregon Public Utility Commission • Three-member governor-appointed Commission with four-year terms • Rates set based on a forward test year PGE’s Approach to Regulation • Communicate constantly – No surprises – Understand our issues; participate in crafting solutions •
Slide 19: Strong Management and Engaged, Valued Workforce
Strong Management and Engaged, Valued Workforce • Experienced management team with officers averaging 26 years in the utility industry • Dedicated and knowledgeable employee base of over 2,600 • Scorecard-driven and customer-focused culture • Continued cost-effective and reliable plant operations 19
Slide 20: Recent Financial Results
Recent Financial Results Financial Summary ($ in millions, except for per share amounts) Year End 12/31 Year-to-Date 6/30 2005 2006 2006 2007 Revenue $1,446 $1,520 $732 $838 Net Operating Income 126 121 47 120 Net Income 64 71 21 101 EPS $1.02 $1.14 $0.34 $1.61 Key Drivers of Historical Performance
Slide 21: Regulatory and Financial Highlights since 2006
Regulatory and Financial Highlights since 2006 • General Rate Case for 2007 test year concluded • Boardman deferral granted which allows PGE to apply to recover a portion of the replacement power costs • OPUC supportive of adding wind generation to PGE rate base • Reached a settlement that resolves
Slide 22: 2007 Rate Case Results
2007 Rate Case Results 2007 Test Year UE-180, 181 & 184 Avg. Rate Base $2.009 billion including Port Westward¹ Allowed ROE 10.1% Capital Structure 50% Annual Power Cost Adj. Annual Power Cost Update Tariff – annual reset of net variable power costs in January of each year Intra-year Power Cost Adj.
Slide 23: Regulatory Update
Regulatory Update Annual Power Cost Update Tariff • Annual reset of rates based on forecast of net variable power costs for the coming year. Following OPUC approval, new prices go into effect on or around January 1 of the following year Power Cost Adjustment Mechanism Power cost sharing Earnings tes
Slide 24: Rate Base Growth Opportunities
Rate Base Growth Opportunities Capital Expenditures Approved Average Rate Base ($ mm) ($ mm) 600 $2,100 $529 $2,009(2) 500 $2,000 400 $371 $1,900 300 $255 $167 $194 $1,800 $1,766 200 100 $1,700 0 $1,600 (1) 2003 2004 2005 2006 2007E 2002 2007 Debt/Capitalization 60% S&P “BBB”: 50% - 60% 55% 50% 50%
Slide 25: Regulatory and Legal Update
Regulatory and Legal Update Boardman Coal Plant deferral • $26.4 million granted • File for amortization in third quarter 2007 • Subject to OPUC prudence review, complete process late 2007 / early 2008 Senate Bill 408 (utility income taxes) • Beginning January 2006, implements an annual rate adjustm
Slide 26: Drivers of Future Performance
Drivers of Future Performance • Strong economic and load growth in service territory • Continued operational excellence and customer focus drive core utility performance • Investments in prudent rate base assets drive earnings and dividend growth • Work closely with regulators and customer groups to
Slide 27: Dividends
Dividends Dividends • Current annualized dividend of 94 cents per share, increased on May 2, 2007, from 90 cents per share • Current quarter’s dividend of 23.5 cents per share payable on October 15, 2007, to shareholders of record as of September 25, 2007 • Over the long term, we expect a target div
Slide 28: Strategy for Success
Strategy for Success Portland General Electric is a well-capitalized, stable company with on-going growth opportunities Stability Growth • Vertically integrated, • Strong load and regulated business customer growth • Strong balance sheet/ • Necessary and prudent credit ratings regulated rate base •
Slide 29: Investor Relations Contact Information
Investor Relations Contact Information William J. Valach Director, Investor Relations 503.464.7395 William.Valach@pgn.com Portland General Electric Company 121 SW Salmon Street Suite 1WTC 0403 Portland, OR 97204 www.PortlandGeneral.com 29
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