Portland General Electric Co · NYSE:POR
Portland General Electric — Q2 2015 Earnings Presentation
15 slides from Portland General Electric's earnings presentation, Jul 28, 2015
Slide 1: Earnings Conference Call Second Quarter 2015
Earnings Conference Call Second Quarter 2015 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of July 28, 2015 Except as expressly noted, the information in this presentation is current as of July 28, 2015 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 — and should not be relied upon as being cur
Slide 3: Leadership Presenting Today
Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO On Today’s Call ▪ Financial Performance ▪ Operational Update ▪ Economy and Customers ▪ Strategic Initiatives ▪ Financial Update ▪ Regulatory Update 3
Slide 4: Second Quarter 2015 Earnings Results
Second Quarter 2015 Earnings Results $2.18 NI in millions Q2 2014 Q2 2015 Net Income $35 $35 Diluted EPS $0.43 $0.44 $2.05- $2.20 2014 EPS 2015E EPS Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q3-Q4: $0.99-$1.14 Q1 4
Slide 5: Accomplishments and Operational Update
Accomplishments and Operational Update 5
Slide 6: Economic Update
Economic Update (1) Net of approximately 1.5% of energy efficiency Economic Update ▪ Unemployment of 4.8 percent in our operating area, below U.S and Oregon ▪ Oregon second in nation for personal income growth and sixth in nation for state gross domestic product growth ▪ Average customer count incre
Slide 7: New Generation: Baseload Resource Carty
New Generation: Baseload Resource Carty CapEx: $450M Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440 MW / Natural Gas Technology Mitsubishi Turbine EPC Contractor Abener/Abengoa Estimated In-Service Date Q2 2016 Customer Price Impact 4.7 percent Project Update 500 KV Grass
Slide 8: Estimated Capital Expenditures
Estimated Capital Expenditures (1) Consists of ongoing CapEx and hydro relicensing per the Quarterly Form 10-Q filed on July 28, 2015, amounts exclude AFDC ▪ Carty Generating Station is expected to be in service in the second quarter of 2016. ▪ Management continues to evaluate incremental reliabilit
Slide 9: 2016 Integrated Resource Plan
2016 Integrated Resource Plan IRP Process Timeline 2015 Develop IRP / Public Process 2016 File IRP 2017 Acknowledgement from OPUC expected and RFP process commences Areas of Focus ▪ Energy efficiency and demand side actions ▪ Evaluation of carbon and the Clean Energy plan ▪ Energy and capacity needs
Slide 10: Second Quarter 2015 Financial Results
Second Quarter 2015 Financial Results NI in millions Q2 2014 Q2 2015 Net Income $35 $35 Diluted EPS $0.43 $0.44 Key Quarter over Quarter Drivers Increased energy deliveries across all customer classes Additions of Tucannon River, Port Westward 2 in rate base and Carty AFDC Q2 2015 power costs at
Slide 11: Q2 2015 Sources of Power
Q2 2015 Sources of Power Total Revenues and Net Variable Power Costs in millions Q2 2014 Q2 2015 Total Revenues $423 $450 Purchased Power & Fuel $142 $148 Less: Wholesale Sales $(17) $(18) Net Variable Power Costs $125 $130 73% 8% 9% 9% 1% 49% 15% 6% 20% Coal Natural Gas Hydro Wind Purchased Power Q
Slide 12: Operating Expenses
Operating Expenses In Millions Q2 2014 Q2 2015 Generation, Transmission & Distribution $67 $66 Administrative & General $56 $60 Total O&M $123 $126 Depreciation & Amortization $73 $76 Interest Expense, Net $23 $28 Other Income, Net $10 $6 Income Taxes $10 $15 12
Slide 13: General Rate Case - 2016 Test Year
General Rate Case - 2016 Test Year Proposed for 2016 Revenue increase: $66 Million Projected average price increase: 3.7% Return on Equity (ROE): 9.9% Cost of Capital: 7.67% Capital Structure: 50% debt, 50% equity Rate Base: $4.5 Billion 2016 GRC Update As Filed 2/12/2015 6/23/2015 Stipulation and U
Slide 14: 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 6/30/2015(in millions) Credit Facilities $ 560 Commercial Paper -- Letters of Credit $ (97 ) Cash $ 122 Available $ 585 2015 Financing Activity Q1 2015 Q2 2015 Q3 2015 Bank Lo
Slide 15: Guidance
Guidance 2015 EPS Guidance: $2.05-$2.20 ▪ Annual weather adjusted load growth of approximately 1.5% over 2014; ▪ Below average hydro conditions; ▪ Normal thermal plant and wind operations for the remainder of the year; ▪ Depreciation and amortization expense between $300 and $310 million; and, ▪ Cap
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