Portland General Electric Co · NYSE:POR

Portland General Electric — FY2013 Earnings Presentation

17 slides from Portland General Electric's earnings presentation, Feb 14, 2014

  1. Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2013

    Earnings Conference Call Fourth Quarter and Full Year 2013 1 Exhibit 99.2

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 Information Current as of February 14, 2014 Except as expressly noted, the information in this presentation is current as of February 14, 2014 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2013 — and should not be relied upon as b

  3. Slide 3: Leadership Presenting Today

    Leadership Presenting Today 3 Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO On Today’s Call  Growth Initiatives  Regulatory Update  Operational Update  Economy and Customers  Financial Update  2014 Outlook

  4. Slide 4: Q4 and Full Year 2013 Earnings Results

    Q4 and Full Year 2013 Earnings Results Q1 $0.65 Q1 $0.65 Q2 $0.34 Q2 ($0.29) Q3 $0.50 Q3 $0.40 Q4 $0.38 Q4 $0.59 2012 EPS 2013 EPS 4 NI in millions Q4 2012 Q4 2013 2012 Actuals 2013 Actuals Net Income $28 $47 $141 $105 EPS (diluted) $0.38 $0.59 $1.87 $1.35 $1.87 $1.35

  5. Slide 5: New Generation: Capacity Resource

    New Generation: Capacity Resource 5 $155 $130 $15 2013 2014 2015 PW2 CapEx: $300M (in millions) Port Westward Unit 2 Project Location Clatskanie, OR Capacity / Fuel 220 MW Natural Gas Technology 12 18-MW Gas Wärtsilä Reciprocating Engines EPC Contractor Black & Veatch Estimated In-Service Date Q1 20

  6. Slide 6: New Generation: Renewable Resource

    New Generation: Renewable Resource 6 $95 $390 $15 2013 2014 2015 Tucannon River CapEx: $500M (in millions) Tucannon River Wind Farm Project Location Columbia County, WA Capacity / Fuel 267 MW Wind Project Technology 116 2.3MW Siemens Turbines EPC Contractor RES Americas Estimated In-Service Date Fir

  7. Slide 7: New Generation: Baseload Resource

    New Generation: Baseload Resource 7 $135 $155 $115 $45 2013 2014 2015 2016 Carty CapEx: $450M (in millions) Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440MW Natural Gas Plant Technology Mitsubishi Turbine EPC Contractor Abener/Abiensa Estimated In-Service Date Mid-2016 Cu

  8. Slide 8: Expected Rate Base and Capital Expenditures

    Expected Rate Base and Capital Expenditures 8 $1.4B of Expected Increase in Rate Base (in millions) 2013 2014E 2015E 2016E 2017E 2018E TOTAL Base Capital Spending(1) $335 $365 $325 $295 $255 $245 $1,820 Port Westward Unit 2 $155 $130 $15 $300 Tucannon River Wind Farm $95 $390 $15 $500 Carty Generati

  9. Slide 9: General Rate Case: 2015 Test Year

     Filed on February 13, 2014  Requested revenue increase: $81 million  Return on Equity (ROE): 10%  Cost of Capital: 50% debt, 50% equity  Rate base: $3.9 billion  Final order expected from the Commission in mid-December  Average overall price increase (all components) of 4.6 percent General R

  10. Slide 10: Operational Update

    Operational Update 10 residential customer satisfaction general business customer satisfaction key customer customer satisfaction Top Decile Top Decile Top Decile improved safety enhanced customer service greater productivity improved efficiency

  11. Slide 11: Economic Outlook

    Economic Outlook 11 Economic Outlook  Oregon ranked #1 in the U.S. for in-migration in 2013  Unemployment rate of 6.1% in core operating area  Employment growth in construction, health services, hospitality  Full-year 2013 weather-adjusted deliveries comparable to prior period  Weather-normaliz

  12. Slide 12: Fourth Quarter Financial Results

    Fourth Quarter Financial Results 12 NI in millions Q4 2012 Q4 2013 Net Income $28 $47 Diluted EPS $0.38 $0.59 Key Quarter over Quarter Drivers ($ millions) Total retail revenues h $21 AFDC primarily due to generation projects h $5 Taxes related to PTC changes and 2012 change in deferred taxes h $10

  13. Slide 13: Full Year Financial Results

    Full Year Financial Results 13 NI in millions 2012 2013 Net Income $141 $105 Diluted EPS $1.87 $1.35 Non-GAAP Adjusted Operating EPS (1) $1.84 Key Year over Year Drivers ($ millions) Customer billing refund i $(9) Incremental replacement power costs for plant outages i $(17) Operations and maintenan

  14. Slide 14: Total Revenues and Power Costs

    Total Revenues and Power Costs in millions Q4 2012 Q4 2013 FY 2012 FY 2013 Total Revenues $463 $499 $1,805 $1,810 Power Costs $193 $219 $726 $757 19% 16% 16% 6% 43% 2013 Sources of Power Coal Natural Gas Hydro Renewable Purchased Power 14

  15. Slide 15: Operating Expenses

    Operating Expenses 15 Interest Expense, Net $26 $26 $108 $101 in millions Q4 2012 Q4 2013 FY 2012 FY 2013 Production & Distribution $58 $56 $211 $225 Administrative & General $56 $61 $216 $219 Total O&M $114 $117 $427 $444 Cascade Crossing Expense -- -- -- $52 Depreciation & Amortization $60 $62 $24

  16. Slide 16: 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 12/31/13 (in millions) Credit Facilities $760 Commercial Paper -- Letters of Credit $(74) Cash $107 Available $793 16 Pricing Date Amount Coupon Maturity June 2013 $225 4.47%

  17. Slide 17: 2014 Guidance

    17 2014 Guidance 2014 EPS Guidance: $2.00 to $2.15 per share  Retail deliveries and revenues in line with levels set in the 2014 GRC  O&M expense between $480 and $500 million  D&A expense between $300 and $310 million  Capital expenditures slightly above $1 billion  Wind generation based on hi

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