Portland General Electric Co · NYSE:POR
Portland General Electric — Q1 2015 Earnings Presentation
16 slides from Portland General Electric's earnings presentation, Apr 28, 2015
Slide 1: Earnings Conference Call First Quarter 2015
Earnings Conference Call First Quarter 2015 Exhibit 99.2
Slide 2: Cautionary Statement
2 Cautionary Statement Information Current as of April 28, 2015 Except as expressly noted, the information in this presentation is current as of April 28, 2015 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 — and should not be relied upon as bein
Slide 3: Leadership Presenting Today
3 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
Slide 4: Q1 2015 Earnings Results
4 Q1 2015 Earnings Results $2.18 NI in millions Q1 2014 Q1 2015 Net Income $58 $50 Diluted EPS $0.73 $0.62 $2.05- $2.20 2014 EPS 2015E EPS Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q2-Q4: $1.43-$1.58 Q1
Slide 5: Warmest first quarter on record
5 Warmest first quarter on record
Slide 6: Accomplishments and Operational Update
6 Accomplishments and Operational Update
Slide 7: Economic Update
7 Economic Update (1) Net of approximately 1.5% of energy efficiency Economic Update ▪ Average customer count increased approximately 1% over past year ▪ Oregon added more than 56,000 new jobs in the past year, representing approximately 3% employment growth ▪ Unemployment of 4.8% in our operating a
Slide 8: New Generation: Baseload Resource Carty
8 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 Next Steps Gas turbine &
Slide 9: Rate Base and Capital Expenditures
9 Rate Base and Capital Expenditures (in millions) 2013 2014 2015E 2016E TOTAL Base Capital Spending(1) $335 $342 $388 $340 $1,405 Port Westward Unit 2 $155 $118 $20 $293 Tucannon River Wind Farm $95 $380 $29 $504 Carty Generating Station $135 $108 $172 $35 $450 TOTAL $720 $948 $609 $375 $2,652 (1)
Slide 10: 2016 Integrated Resource Plan
10 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 • Energy and capacity needs • Boardman replacement • 2020 Renewable Portf
Slide 11: First Quarter 2015 Financial Results
11 First Quarter 2015 Financial Results NI in millions Q1 2014 Q1 2015 Net Income $58 $50 Diluted EPS $0.73 $0.62 Key Quarter over Quarter Driver Lower retail sales due to unfavorable weather
Slide 12: Q1 2015 Sources of Power
12 Q1 2015 Sources of Power Total Revenues and Net Variable Power Costs in millions Q1 2014 Q1 2015 Total Revenues $493 $473 Purchased Power & Fuel $184 $161 Less: Wholesale Sales $(17) $(19) Net Variable Power Costs $167 $142 45% 23% 10% 18% 4% 63% 9% 9% 13% Coal Natural Gas Hydro Wind Purchased Po
Slide 13: Operating Expenses
13 Operating Expenses In Millions Q1 2014 Q1 2015 Generation, Transmission & Distribution $54 $62 Administrative & General $54 $60 Total O&M $108 $122 Depreciation & Amortization $75 $75 Interest Expense, Net $25 $30 Other Income, Net $5 $5 Income Taxes $20 $10
Slide 14: General Rate Case - 2016 Test Year
14 General Rate Case - 2016 Test Year Proposed for 2016 Revenue increase: $66 Million Current 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: $4.5 billion Annual Revenue Increase ($mm) As Filed 2/12/2015 Ba
Slide 15: Liquidity and Financing
15 Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Liquidity as of 3/31/2015(in millions) Credit Facilities $560 Commercial Paper -- Letters of Credit $(104) Cash $27 Available $483 2014-2015 Financing Plans Q2 2014 Q3 2014 Q4 2014 Q1 2015
Slide 16: Guidance
16 Guidance Revised 2015 EPS Guidance: $2.05-$2.20 ▪ Remainder of the year load growth in line with annual weather adjusted growth of 1% over 2014; ▪ Normal thermal plant and wind operations for the remainder of the year; ▪ Depreciation and amortization expense between $300 and $310 million; and, ▪
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