Portland General Electric Co · NYSE:POR
Portland General Electric — FY2015 Earnings Presentation
17 slides from Portland General Electric's earnings presentation, Feb 12, 2016
Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2015
Earnings Conference Call Fourth Quarter and Full Year 2015 Exhibit 99.2
Slide 2: Cautionary Statement
2 Cautionary Statement Information Current as of February 12, 2016 Except as expressly noted, the information in this presentation is current as of February 12, 2016 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2015 — and should not be relied upon as b
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 ▪ Operating performance ▪ Carty update ▪ Economy and customers ▪ 2016 Integrated resource plan ▪ Financial update ▪ Regulatory update
Slide 4: Q4 and Full-Year 2015 Earnings Results
4 Q4 and Full-Year 2015 Earnings Results 2.18 NI in millions Q4 2014 Q4 2015 2014 2015 Net Income $43 $51 $175 $172 Diluted EPS $0.55 $0.57 $2.18 $2.04 $2.04 2014 EPS 2015 EPS(1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (1) Numbers do not foot due to rounding.
Slide 5: Accomplishments and Operational Update
5 Accomplishments and Operational Update
Slide 6: Carty Generating Station Construction Update
6 Carty Generating Station: A 440 MW natural gas baseload plant under construction in Boardman, OR Carty Generating Station ▪ Dec. 18, 2015: PGE declared Abeinsa in default of the construction contract and took control of the site ▪ Dec. 21, 2015: Work resumed on the site ▪ Construction agreement co
Slide 7: Estimated Capital Expenditures
7 Estimated Capital Expenditures (1) Consists of board-approved ongoing CapEx and hydro relicensing per the Annual 2015 Form 10-K filed on February 12, 2016 Note: Amounts exclude AFDC debt and equity (2) Total estimated cost does not consider any amounts received from sureties under the performance
Slide 8: Economic Update
8 Economic Update (1) State of Oregon Employment Department (2) Net of approximately 1.5% of energy efficiency, excluding one large paper customer (3) United Van Lines study issued Jan. 1, 2016 (4) Net of approximately 1.5% of energy efficiency and excluding one large paper customer Economic Update
Slide 9: 2016 Integrated Resource Plan
9 2016 Integrated Resource Plan IRP Process Timeline 2H 2016 File IRP 2017 Acknowledgement from OPUC expected and RFP process commences 2017-2021 2016 IRP Action Plan implementation Areas of Focus ▪ Boardman replacement ▪ Renewable Portfolio Standard requirement of 20 percent in 2020 ▪ Energy effici
Slide 10: Fourth Quarter Financial Results
10 Fourth Quarter Financial Results NI in millions Q4 2014 Q4 2015 Net Income $43 $51 Diluted EPS $0.55 $0.57 Key Year over Year Drivers Addition of Tucannon River, Port Westward Unit 2 in customer prices, and Carty AFDC Temporary O&M reductions Increase in common share count due to timing of eq
Slide 11: Full Year Financial Results
11 Full Year Financial Results NI in millions 2014 2015 Net Income $175 $172 Diluted EPS $2.18 $2.04 Key Year over Year Drivers Addition of Tucannon River, Port Westward Unit 2 in customer prices, and Carty AFDC Temporary O&M reductions Impact of weather on retail loads Higher replacement powe
Slide 12: Revenues, Power Costs and Sources of Power
12 FY 2014 Sources of Power FY 2015 Sources of Power Total Revenues and Power Costs in millions Q4 2014 Q4 2015 FY 2014 FY 2015 Total Revenues $500 $499 $1,900 $1,898 49% 21% 8% 16% 6% 43% 19% 7% 23% Coal Natural Gas Hydro Wind Purchased Power 8% Purchase Power & Fuel $185 $171 $713 $661 Less: Whole
Slide 13: Operating Expenses
13 Operating Expenses in millions Q4 2014 Q4 2015 FY 2014 FY 2015 Production & Distribution $76 $74 $257 $266 Administrative & General $63 $62 $227 $241 Total O&M $139 $136 $484 $507 Depreciation & Amortization $77 $78 $301 $305 Interest Expense, Net $25 $28 $96 $114 Other Income, Net $11 $7 $38 $22
Slide 14: Liquidity and Financing
14 Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Liquidity as of 12/31/2015 (in millions) Credit Facilities $ 660 Commercial Paper $ (6 ) Letters of Credit $ (108 ) Cash $ 4 Available $ 550 2016 Financing Activity Q1 2016 Q2 2016 Q3 2016
Slide 15: 2016 General Rate Case
15 2016 General Rate Case Oregon Public Utility Commission Order ▪ Overall increase in customer prices: 0.7% ▪ Return on Equity (ROE): 9.6% ▪ Capital Structure: 50% debt, 50% equity ▪ Cost of Capital: 7.51% ▪ Rate Base: $4.4 billion(1) ▪ Annual revenue requirement increase: $12 million Customer Pric
Slide 16: Guidance
16 Guidance 2016 EPS Guidance: $2.20-$2.35 ▪ Retail deliveries growth of approximately 1% weather adjusted excluding one large paper customer; ▪ Average hydro conditions; ▪ Wind generation based on historical levels or forecast studies when historical data is not available; ▪ Normal thermal plant op
Slide 17: 2016 Key Initiatives
17 2016 Key Initiatives 1. Maintain high level of operational excellence 2. Complete construction of Carty Generating Station 3. Complete and file the 2016 Integrated Resource Plan
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