Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (October 2021)
35 slides from Portland General Electric's investor presentation, Oct 29, 2021
Slide 1: Investor Presentation
Investor Presentation Portland General Electric October 29, 2021
Slide 2: Cautionary statement
Cautionary statement Information Current as of October 29, 2021 Investor Relations Contacts Except as expressly noted, the information in this presentation is current as of October 29, 2021 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 — and
Slide 3: The Company
TAVERN WeWormerraen yawns 8) INS 1 _ VAVER\/ 2 VAY The Company
Slide 4: PGE at a glance
PGE at a glance Quick facts 3,300+ MWs of Generation • Vertically integrated electric utility encompassing generation, Beaver transmission and distribution Washington Port Westward 1 & 2 Tucannon River • 900,000 retail customers within a service area of 2 million OREGON WASHINGTON residents 26 Easte
Slide 5: Investment Thesis
Investment Thesis Investing in a reliable and Building a smarter more Focusing on operational clean energy future resilient grid effectiveness and efficiency • Planning to achieve the 100% clean • Investing in our system to maintain and • 4% to 6% long term EPS growth, off energy framework as mandat
Slide 6: Strategy for a Clean Energy Future
Strategy for a Clean Energy Future Strategic Goals Decarbonize Power Electrify the Advance our Reduce greenhouse gas Economy Performance emissions by at least 80% Increase beneficial Deliver long-term by 2030 and 100% by electricity use to capture earnings per share 2040 the benefits of new growth o
Slide 7: Diverse, growing service area
Diverse, growing service area • Desirable core urban service area with strong population growth supporting services (government, education, restaurants, healthcare, and other services) OREGON WASHINGTON • I-5 corridor and port access provide opportunity for transportation and 26 Columbia River wareh
Slide 8: 2022 General Rate Case
2022 General Rate Case Enabling customers through a resilient and integrated grid A capital driven rate case requesting an increase in rate base of $993 million, including: • Extensive investments in PGE’s T&D system to serve new and growing customer loads, address reliability and resiliency, replac
Slide 9: Reliability and resiliency investments
Reliability and resiliency investments Capital expenditures forecast $700 $70 $655 $25 $110 $115 $550 $550 $550 $85 $85 $85 $410 $405 $385 $385 $385 $110 $110 $80 $80 $80 2021 2022 2023 2024 2025 Generation Transmission and Distribution General Business and Technlogy Integrated Operations Center Not
Slide 10: Resource planning and procurement
Resource planning and procurement 2019 IRP ACTION PLAN 2021 RFP Customer Resource Actions • PGE will be seeking up to • Increased energy efficiency, demand response, approximately 1,000 MW of renewable storage and dispatchable standby generation and non-emitting resources by initiating this RFP, con
Slide 11: Key strengths
Key strengths
Slide 12: Focus on customers
Focus on customers Top quartile #1 Most Trusted #2 No.1 renewable No. 2 system energy Utility Brand ranked utility in reliability program in the Utility Trusted Brand & Customer the United nation for over Engagement™ Residential Study States for Edison Electric Escalent Institute the last decade cus
Slide 13: High-quality utility operations
High-quality utility operations Improving security, resiliency, and reliability for our Integrated Operations Center customers • A new, $200 million, 24/7 center for key operations • Integrated into the Western Energy Imbalance Market • Significantly improves seismic resilience, cyber and (EIM) to e
Slide 14: Long-term financial performance
Long-term financial performance Net income, earnings per share, and ROE $2.85(3) $2.75(2) $2.70(3) $2.37 $2.39 $2.29(1) EPS (diluted) $2.10(1) Long-term $1.72(2) 4% to 6% Net income earnings growth (dollars in millions) $212 $214 from $187 (1) 2019 base year $155 2017(1) 2018 2019 2020 2021E (3) Acc
Slide 15: Proven dividend growth
Proven dividend growth (4) $1.68 (3) $1.56 $1.50 $1.41 $1.32 $1.24 $1.16 Target Payout 70% $1.07 $1.09 $1.11 Ratio Actual Payout Ratio 60% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Long-term dividend growth guidance of 5% to 7%(4) (1) Compound Annual Growth Rate from 2012 through 2021 (2) Co
Slide 16: Liquidity and financing
Liquidity and financing Total Liquidity: $1,086 million as of September 30, 2021 (dollars in millions) Ratings S&P Moody’s Senior Secured A A1 Senior Unsecured BBB+ A3 Commercial Paper A-2 P-2 Cash $294 Outlook Stable Stable Credit Facilities Actual and Expected $650 2021 Financings Q1 Q2 Q3 Q4 Lett
Slide 17: Environmental, Social, and Governance
Environmental, Social, and Governance
Slide 18: Ambitious decarbonization goals
Ambitious decarbonization goals We plan to achieve companywide net zero greenhouse gas emissions by 2040 Our goals are aligned with HB 2021, which mandates a 100% clean energy framework by 2040 Reducing emissions associated with the power serving customers • Reducing greenhouse gas emissions associa
Slide 19: Achieving our decarbonization goals
Achieving our decarbonization goals Our near-term power supply emissions goal is to reduce greenhouse gas emissions associated with the power supplied to customers by at least 80% by 2030 (from 2010 levels)(1) • We will need approximately 1,500 to 2,000 MW of clean resources, in addition to removing
Slide 20: Achieving our decarbonization goals (cont’d)
Achieving our decarbonization goals (cont’d) (1) Our clean energy future is achievable through a combination of PGE, customer and community solutions (1) Figure represents peak demand reduction, converted from 157 average MW (aMW) of cost-effective energy efficiency as called out in PGE’s 2019 IRP A
Slide 21: Achieving our decarbonization goals (cont’d)
Achieving our decarbonization goals (cont’d) Increasing renewables in our portfolio • Layered approach balances near-term and long-term risks and benefits for customers • Incremental renewable actions reduce near-term carbon 5,000 Renewable Additions (MW)(2) emissions and puts PGE on track to meet O
Slide 22: Sustainability and ESG Governance Framework
Sustainability and ESG Governance Framework Responsibility for environmental, social and governance (ESG) performance is integrated with the policies and principles that govern our company Board oversight The Board area of strategic responsibility includes oversight over actions to address risks and
Slide 23: Diverse and Experienced Board
Diverse and Experienced Board Jack Davis, Chair Maria Pope Track record of thoughtful refreshment enables us to Former CEO, Arizona Public Service Co N President & CEO have a Board with the experience and diverse Portland General Electric Joined in 2012 Joined in 2018 perspectives needed to oversee
Slide 24: Diversity, Equity and Inclusion
Diversity, Equity and Inclusion Committed to DEI across our business • Partners and suppliers: Increasing our supplier diversity to 15% of total supplier spending by 2022 Workforce by Gender 1% • Awareness, education, and training: Racial equity 32% education for our board, leadership and employees
Slide 25: Sustainability reporting
Sustainability reporting • Our 2020 ESG Report shares information about PGE’s commitment to sustainability along with information about strategic projects that illustrate our commitment to advancing a sustainable future and caring for our community. • Sustainability principles are woven into the fab
Slide 26: Appendices
Portland General Electric APPENDICES
Slide 27: 2022 General Rate Case updates
2022 General Rate Case updates Rate Case Filing Details(1) Proposed Rate Base $5.7 Billion Primary O&M Cost drivers Increased vegetation management • Accelerated depreciation of Colstrip to 2025 and establish its own, separate revenue requirement • Improve storm outage mechanism to establish a balan
Slide 28: Deferral updates
Deferral updates COVID-19 (Docket UM 2114) • 2021 earnings guidance reflects the ongoing impact of COVID-19 • As of September 30, 2021 PGE has deferred $27 million, primarily related to bad debt expense. Amortization of any deferred costs will remain subject to OPUC review prior to amortization Wild
Slide 29: Wildfire mitigation and risk management
Wildfire mitigation and risk management Number one priority is protecting the lives and property of customers, coworkers and the communities we serve. • Robust tree trimming and vegetation management program • Ongoing focus on system hardening: • Fire resistant, ductile iron transmission and distrib
Slide 30: Constructive regulatory environment
Constructive regulatory environment Regulatory construct Regulatory body • Forward test year • Public Utility Commission of Oregon • Integrated Resource Planning (IRP) • Governor-appointed three-member • Renewable Portfolio Standard (RPS) commission serving four-year terms • Proven track record of a
Slide 31: Historical distribution system investments
Historical distribution system investments PGE has invested significantly into its distribution system to maintain reliable infrastructure and keep outages low • 2020 spending was driven by industrial customer expansions and load growth in PGE’s service territory • The distribution system is facing
Slide 32: Recovery of power costs
Recovery of power costs Annual power cost update tariff • Annual reset of prices based on forecast of net variable power costs (NVPC) for the coming year • Subject to OPUC prudency review and approval, new prices go into effect on or around January 1 of the following year Power Cost Adjustment Mecha
Slide 33: Renewable portfolio standard
Renewable portfolio standard Additional renewable resources • As of 2020, PGE had the following qualifying renewable resources(1): Renewable Portfolio Standard 50% Type of Resource % of Retail Load 45% Wind 12.3% 35% 27% Qualifying facilities 5.4% 20% Low-impact hydro 2.5% Solar & other <1% 2020 202
Slide 34: Decoupling mechanism
Decoupling mechanism The decoupling mechanism is intended to allow recovery of margin lost due to a reduction in sales of electricity resulting from customers’ energy efficiency and conservation efforts Collections under the decoupling mechanism are subject to an annual limitation of 2% of the appli
Slide 35: Average retail price comparison
Average retail price comparison Residential Electric Service Prices: Commercial Electric Service Prices: 1,000 kWh monthly consumption 40 kW demand and 14,000 kWh monthly consumption (Prices in cents per kWh) (Prices in cents per kWh) PGE - Sch. 7 12.8 PGE - Sch. 83 9.7 EEI U.S. Average 13.7 EEI U.S
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