Portland General Electric Co · NYSE:POR
Portland General Electric — Q3 2014 Earnings Presentation
16 slides from Portland General Electric's earnings presentation, Oct 28, 2014
Slide 1: Earnings Conference Call Third Quarter 2014
Earnings Conference Call Third Quarter 2014 Exhibit 99.2
Slide 2: Cautionary Statement
2 Cautionary Statement Information Current as of October 28, 2014 Except as expressly noted, the information in this presentation is current as of October 28, 2014 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 — and should not be relied upon
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 ▪ Operational Update ▪ Economy and Customers ▪ Growth Initiatives ▪ Financial Update ▪ Regulatory Update
Slide 4: Q3 2014 Earnings Results
4 Q3 2014 Earnings Results NI in millions Q3 2013 Q3 2014 Net Income $ 31 $ 39 Diluted EPS $ 0.40 $ 0.47 $1.35 $2.10 - $2.20 Q1 $0.65 Q2 ($0.29) Q3 $0.40 Q4 $0.59 Q1 $0.73 2013 EPS 2014E EPS Q2 $0.43 Q3 $0.47
Slide 5: Operational Update
5 Operational Update residential customer satisfaction general business customer satisfaction key customer satisfaction Top Quartile Top Decile Top Decile
Slide 6: Economic Outlook
6 Economic Outlook (1) (1) Net of approximately 1.5% of energy efficiency Economic Outlook ▪ Customer count growth of 1% ▪ New connects up 15% year-to-date compared with 2013 ▪ Unemployment of 6.0% in our operating area ▪ Weather-normalized 2014 load growth forecast of approximately 1%(1) (excluding
Slide 7: New Generation: Capacity Resource Port Westward Unit
7 New Generation: Capacity Resource Port Westward Unit 2 Project Location Clatskanie, OR Capacity / Fuel 220 MW / Natural Gas Technology 12 Natural Gas Wärtsilä Reciprocating Engines EPC Contractor Black & Veatch, Harder Mechanical Estimated In-Service Date Q1 2015 Customer Price Impact ~2.8% Next S
Slide 8: New Generation: Renewable Resource Tucannon River
8 New Generation: Renewable Resource Tucannon River CapEx: $500M (in millions) Tucannon River Wind Farm Project Location Columbia County, WA Capacity / Fuel 267 MW / Wind Technology 116 2.3 MW Siemens Turbines EPC Contractor RES Americas Estimated In-Service Date December 2014 - Early Q1 2015 Custom
Slide 9: New Generation: Baseload Resource Carty
9 New Generation: Baseload Resource Carty CapEx: $450M (in millions) Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440 MW / Natural Gas Technology Mitsubishi Turbine EPC Contractor Abener/Abengoa Estimated In-Service Date Mid 2016 Customer Price Impact ~4-6% Next Steps ▪ Con
Slide 10: Expected Rate Base and Capital Expenditures
10 Expected Rate Base and Capital Expenditures (in millions) 2013 2014E 2015E 2016E 2017E 2018E TOTAL Base Capital Spending(1) $335 $350 $389 $346 $324 $281 $2,025 Port Westward Unit 2 $155 $128 $13 $296 Tucannon River Wind Farm $95 $388 $17 $500 Carty Generating Station $135 $114 $166 $35 $450 TOTA
Slide 11: Third Quarter Financial Results
11 Third Quarter Financial Results NI in Millions Q3 2013 Q3 2014 Net Income $31 $39 Diluted EPS $0.40 $0.47 Key Quarter over Quarter Drivers Increased price and energy deliveries h Lower net variable power costs h Equity AFDC related to construction of three new resources h
Slide 12: Total Revenues and Power Costs
12 Total Revenues and Power Costs In Millions Q3 2013 Q3 2014 Retail Revenues $403 $434 Purchase Power & Fuel $190 $202 Less: Wholesale Revenues $22 $39 Net Variable Power Costs $168 $163 Coal Natural Gas Hydro Renewable Purchased Power Q3 2013 Sources of Power Q3 2014 Sources of Power 40% 21% 16% 1
Slide 13: Operating Expenses
13 Operating Expenses In Millions Q3 2013 Q3 2014 Production & Distribution $54 $60 Administrative & General $49 $54 Total O&M $103 $114 Depreciation & Amortization $62 $76 Interest Expense, Net $25 $23 Other Income, Net $7 $12 Income Taxes $4 $16
Slide 14: General Rate Case: 2015 Test Year
14 General Rate Case: 2015 Test Year Annual Revenue Increase ($mm) Date As Filed 2/13/2014 Depreciation Stipulation Other Updates and Stipulations As Revised 7/16/2014 Additional Stipulations As Revised 9/2/2014 New Generation Plants: Port Westward 2 $51 ($5) $3 $49 ($1) $48 Tucannon River $47 ($3)
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 9/30/2014 (in millions) Credit Facilities $760 Commercial Paper -- Letters of Credit $(64) Cash $97 Available $793 Expected 2014-2015 Financing Plans Q2 2014 Q3 2014 Q4 201
Slide 16: Guidance
16 Guidance 2014 EPS Guidance: $2.10 - $2.20 Normal levels of hydro, wind and thermal generation for the remainder of the year Operating and maintenance costs between $475 and $495 million Depreciation and amortization expense between $295 and $305 million Capital expenditures of approximate
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