Puget Energy — 2024 EEI Financial Conference
32 slides from Puget Energy's conference presentation, November 2024
Slide 1: Puget Energy 2024 EEI Financial Conference
Puget Energy 2024 EEI Financial Conference Nov 10-12, 2024
Slide 2: Cautionary statement
Cautionary statement Information Current as of November 5, 2024 (except as expressly noted) Except as expressly noted, the information in this presentation is current as of November 5, 2024 – the date on which PUGET ENERGY, INC. (“PE”) and Puget Sound Energy, Inc. (“PSE” and, together with PE, “Puge
Slide 3: Puget team members
Puget team members Mary Kipp Jamie Martin Cara Peterman Tsung-Hsing Shen President & Senior Vice President & Chief Risk Officer & Debt Capital Markets Chief Executive Officer Chief Financial Officer Corporate Treasurer Manager 3
Slide 4: Company overview
Company overview 4
Slide 5: About PSE
About PSE Nameplate Capacity (MW) Washington state’s oldest and largest utility Regulated IOU serving 1.23M electric customers 2,803 and 877K gas customers in 10 counties located Natural Gas/Diesel/Unspecified primarily in Western Washington Undergoing the most significant transformation in 2,958 ou
Slide 6: Our mission and service territory
Our mission Service territory Safety remains at our core in order to protect our employees, customers and community Safe We are focused on being our customers’ clean energy partner of choice, reflected in our future investments in CETA, gas decarbonization and Beyond Net Zero Carbon Clean We are com
Slide 7: Sustainability
Sustainability Environmental Aspiring to be a Beyond Net Zero Carbon energy company by 2045 in line with Washington State’s Clean Energy Transformation Act Social Incorporating energy equity and engaging our communities in planning, designing and implementing of clean energy programs and resources G
Slide 8: Business updates
Business updates 8
Slide 9: Business highlights
Business highlights 2024 Multi Year Rate Plan Clean Energy Progress Wildfire Risk Reduction $3.7B 48% 3,800 100% Capital additions Electricity in 2023 MW of clean energy EPS enabled in requested in the MYRP coming from non- resources contracted high-risk fire areas emitting resources since 2019 9 Bu
Slide 10: 2024 PSE General Rate Case
2024 PSE General Rate Case Themes: 2024 PSE Rate Case Procedural Schedule DOCKET UE-240004, UG-240005 Improved cash flow Item Date Status PSE Initial Filing Thursday, February 15, 2024 Clean energy transition First Settlement Conference Friday, June 14, 2024 System reliability Staff, Public Counsel,
Slide 11: GRC Key Asks
GRC Key Asks The GRC seeks a 10% combined rate increase in 2025 and 7.2% in 2026 (A) (B) (C) (D) (E) (F) (G) 2025 2026 Original filing February 2024: Electric Gas Combined Electric Gas Combined 1 Base rate change $85.3 $192.0 $277.3 $259.9 $25.4 $285.3 2 Revenue from trackers1 106.9 4.0 110.9 25.3 2
Slide 12: Washington has enacted some of the most ambitious climate policies
Washington has enacted some of the most ambitious climate policies in the country Clean Energy Transformation Clean Buildings Act (HB 1257) Climate Commitment Act (SB Act (SB 5116) 5126 – “Cap and Invest”) Passed in 2019 and adopts a Passed in 2021 Passed in 2019 and commits new energy performance a
Slide 13: Focus on achieving CETA 2030 mandates
Focus on achieving CETA 2030 mandates Coal-free electricity Carbon-neutral electric supply 100% clean electricity supply • PSE will eliminate coal-fired resources • PSE is committed to achieving a net • PSE is committed to achieving a from PSE’s allocation of electricity to zero carbon emissions ele
Slide 14: Clean energy progress
Clean energy progress Procured 3,800+ MW of renewable energy resources since the passage of the Clean Energy Transformation Act in 2019 Delivered 48% of electricity from non-emitting resources in 2023 Issued a request for proposals in July 2024 to supply up to 2.3 million annual megawatt hours of no
Slide 15: Secured significant clean energy resources since 2019
Secured significant clean energy resources since 2019 Signed In service Resource 2019 2020 137 MW Skookumchuck Wind 2020 2021 150 MW Lund Hill Solar 2020 2020 40 MW Energy Keeper Hydro 2021 2021 17 MW SPI Biomass Beaver Creek Photo 2022 2022 200 MW Golden Hills Wind 2021 2023 350 MW Clearwater Wind
Slide 16: Wildfire risk overview
Wildfire risk overview PSE specific considerations ~30,000 customers located in high fire threat areas (~2.5% of customers) 7% of overall PSE overhead system in high fire threat areas 745 miles of overhead distribution in high fire threat area (7.5% of PSE overhead distribution system) 166 miles of
Slide 17: 2024 Wildfire mitigation program highlights
2024 Wildfire mitigation program highlights Implemented Technosylva “FireRisk”, a real-time fire risk analysis platform Situational Installed 6 A.I. smoke detection cameras and 22 new weather stations awareness Hired in-house meteorologist and developed internal weather analysis tools Initia
Slide 18: Financial updates
Financial updates 18
Slide 19: Financial highlights
Financial highlights $1.1 billion capital raised in 2024 primarily to support new resource acquisition activities; Owners injected $293M new equity into PSE in June Regulatory wins that benefit PSE’s financial position: LNG and PCA rate recovery approvals Credit ratings affirmed by all three rating
Slide 20: Revenue and net income year-to-date
Revenue and net income year-to-date1 Revenue increased 1% from $3.45B in 2023 to $3.48B in 2024 Net income2 decreased by 52% from $117M in 2023 to $84M in 2024, primarily driven by higher power costs, utility O&M, and interest expense Electric and gas margin both increased by 1% from 2023 Electric a
Slide 21: Return on Equity
Return on Equity 2024 ROE performance challenged by: Return on Equity (PSE) Higher power costs from significant 9.5% 9.4% 9.4% 9.4% 9.4% 9.4% January freeze event 2.1% 2.1% 2.2% 2.5% Higher interest expense on clean 3.3% 3.5% energy and other infrastructure projects Deferred equity return on AMI 7.4
Slide 22: Growing capex to support clean energy, system safety and reliability
Growing capex to support clean energy, system safety and reliability 2024-2026 capital expenditures Historical and Projected Capital Expenditures (PE)1 are focused on: ($ in millions) Actual Projected $2,500 Clean generation resources Grid modernization $2,000 Reliability $1,500 Capacity Wildfire mi
Slide 23: Manageable debt profile, ample liquidity and stable credit ratings
Manageable debt profile, ample liquidity and stable credit ratings Debt Maturity Profile (9/30/2024) Liquidity Profile (9/30/2024) ($ in millions) ($ in millions) Credit Ratings1 Corporate Sr. Secured Outlook BBB A- Stable Baa1 A2 Stable BBB+ A Stable 23 Financial Updates (1) Fitch, S&P and Moody’s
Slide 24: 2024 PCA filing approved
2024 PCA filing approved In September 2024, the WUTC approved PSE’s Annual Power Cost Adjustment Filing, allowing: The collection of a $76 million net balance from October 2024 through December 2025 based on: • An actual customer credit of $22.2 million for the 2023 annual PCA review filing • A prov
Slide 25: Tacoma LNG facility recovery authorized
Tacoma LNG facility recovery authorized In April 2024, WUTC issued an order finding PSE acted prudently in developing and constructing the Tacoma LNG Facility Rates increased $42.5 million for the recovery of the plant, or 2.86% for the average residential gas customer Commission denied partial reco
Slide 26: Infrastructure Investment & Jobs Act Grant Awards
Infrastructure Investment & Jobs Act Grant Awards Grid Resilience & Innovation Program (GRIP) grants awarded in 2024 Skagit River Valley Transformation for Climate Resiliency Project • Directs over $92 million in resiliency and reliability investments to a part of PSE’s service territory that has lo
Slide 27: PSE 2023 Green Bond Allocation Report
PSE 2023 Green Bond Allocation Report Beaver Creek Wind Farm ($243.7M allocated) Currently under construction and expected to be operational in 2025 Annual generation will be equivalent to approximately 330,000 metric tons CO2e of avoided emissions Renewable Energy PPAs ($66.6M allocated) Contracts
Slide 28: Appendix
Appendix 28
Slide 29: PSE leadership team
PSE leadership team Name and role Photo Comments Name and role Photo Comments Mary Kipp • Joined PSE in 2019 Jamie Martin • Joined PSE in 2024 President & CEO • 20+ years of industry SVP and Chief • 20+ years industry experience Financial Officer experience • Previously president and • Previously se
Slide 30: PSE leadership team, cont.
PSE leadership team, cont. Name and role Photo Comments Name and role Photo Comments Ron Roberts • Joined PSE in 2010 Michelle Vargo • Joined PSE in 2023 SVP, Energy • 20+ years of industry SVP of Energy • Previously served as Chief Resources experience Operations Operating Officer at Seattle • Prev
Slide 31: PSE ownership
PSE ownership Ownership % M R Ontario Municipal E Employees Retirement 23.9% System Bs British Columbia 5 BCi Investment 20.9% Management Op macauarie — ttacauario asst tests Management = Teachers Ontario TEACHERS’ 4 15.8% @ PENSION PLAN Pension Plan Alberta Investment Management 13.6% Corporation P
Slide 32: Important links
Important links PSE Website www.pse.com PSE Sustainability www.pse.com/en/about-us/Sustainability PSE Wildfire Program www.pse.com/en/pages/Wildfire-preparedness/wildfire-program Puget Energy and PSE SEC Filings https://www.pugetenergy.com/pages/filings.html WUTC Docket Number 240005 (Gas) https://w