Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (September 2008)
46 slides from Portland General Electric's investor presentation, Sep 17, 2008
Slide 1: Company Overview September 2008
Exhibit 99.1 Compay Overview September Copyright © 2008 2008 Portland General Electric. All Rights Reserved.
Slide 2: Introduction
William Valach Introduction Director, 2 Investor Relations
Slide 3: Cautionary Information Regarding Forward-Looking Statements
Cautionary Information Except 2008 Forward-Looking This Section Words forward-looking changes completion statements proceedings; Although Factors costs wholesale growth with Any 3 forward-looking presentation the — ofor as and that 21E compliance in Securities and phrases PGE expressly energy concer
Slide 4: Peggy Fowler, President and Chief Executive Officer
PeggyExecutive Chief 4 President Fowler Officer &
Slide 5: Strategy
Strategy Portland Vertically Stability Diversified Experienced Fair Strong Growth Necessary Earnings Mission: 5 price. andload balance balanced for General To and integrated, and power and Success be management dividend prudent asheet/credit customer company Electric regulatory supply regulated grow
Slide 6: Investment Case
Investment PGE $2.3 10.1% Constructive High-performing 6% Dividend 6 tobillion offers 8% ROE payout earnings Case strong Capital on regulatory 50% ratio generation fundamentals: growth Expenditure equity ofenvironment approximately over capital andthe Program well-maintained structure long60% term 2
Slide 7: Company Overview
Company 813,000 Service 52 Net Generation Distribution Transmission CWIP Other 4,000-square-mile 26,000 2,449 Summer Winter Annual 2,709 Port Beaver OR WA OREGON WASHINGTON Colstrip (Montana) Columbia Coyote Biglow Clackamas Portland Boardman T.W. River North Faraday Oak Willamette Round (Madras) Pe
Slide 8: Attractive Customers and Growth Statistics
Attractive Customers Commercial(2) Industrial(2) Total 2007 Residential Industrial Commercial Growth Population No As (1) (2) (3) 8 asingle result Statistics Revenues 803,788 Year-end in10% customer and Oregon’s of Revenues growth 706,444 49% 41% 256 steady Includes Adjusted$1,456 Growing by 97,088
Slide 9: Customer Value and Operational Excellence Initiatives
Electric technologies Maintain Integrated Effective Implement Customer Generation Management Deliver 9 service high reasonable management cost Value satisfaction Focus resource initiatives Excellence Excellence management overall power Strategy Initiative planning and that that ratings quality of Pr
Slide 10: Customer Satisfaction and Reliability
Wellquartile PGE Invested 2007 Customer Reliability: Top (1) (2) 10 decile Maintained strategically customer more satisfaction: forforresidential Source: general than survey Market residential key and makes TQS $775 customers(2) High-Quality business results Strategies, on-going million and customer
Slide 11: Smart Metering Deployment
Smart Provides PGE Read Activate Enhance Enable Vendor: Technology: Deployment: Implementation Systems Full Price Estimated $18 OPUC 11 million deployment proposed increase meters Meters approved possible Sensus Acceptance and outage two-way cost inremotely FlexNet de-activate More effective annual
Slide 12: Power Supply Strategy
Powerload Capitalize Meet Manage Communication 12 Supply power and in onmonitor most PGE’s Strategy supply is economic one assets risks operations of the with and fashion keys position appropriate to: to to ourlower instrategy the systems cost marketplace toand customers processes to assure strategy
Slide 13: Generation and Power Supply Portfolio
Generation Physical% Capacity Deschutes River Clackamas/Willamette Hydro 1,105 Natural Beaver Coyote Port 1,145 Boardman Colstrip 676 Klondike Wind(2) Biglow 73 Net 18.5 Westward Projects(1) 30.1 31.3 Supply Contracts Units Springs Canyon 2.0 Gas/Oil 296 Capacity IIPower River 380 of Capacity Contra
Slide 14: Generation Projects: Port Westward and Biglow Canyon
Generation Port 406 $280 6,826 Placed Biglow Columbia 450 $255 125 37% Online Phases $740 Purchase 325 Phase Construction Oregon’s *Allowance 14 MW Westward capacity million, million—$780 Btu/kWh Iinto II: III: and II(completed) Canyon 150 gas-fired total nameplate agreements & Renewable 175 Gorge,
Slide 15: Generation Load and Resource Need
Generation Load PGE’s Annual 3,500 4,000 1,848 2,500 576 1,500 Beaver 500 Resource Megawatts 6,000 7,000 3,617 5,000 4,500 Renewable Long-term 3,000 2,000 (Theoretical ‘Normal 0 1,000 Note: 15 09 ‘10 MWa Growth Retail MWa 1,141 218 1-in-2 MW 1,520 Generation retail used Average ‘11 Conditions) Need:
Slide 16: Renewables Request for Proposals Issued
Renewables Request Issued RFP Schedule: An PGE With 16 independent responses identifies will the RFP for addition consider for Proposals Request awere up evaluator final of to both 218 due 218 for short purchase Proposals June MWa MWa (Accion list4,PGE of2008 and bids renewable Group) will ownership
Slide 17: Boardman Best Available Retrofit Technology
Boardman Best PGE’s $360 $570 Oregon Preliminary Public EQC EPA PGE IRP (1) 17 (3) acknowledgement Available approval issues tonotice decision PGE’scost 100% DEQ $470 $745 BART estimates draft final schedule: on million(1) issued 3Q of on Retrofit rule IRP estimated proposalsBART 2009 Update awould
Slide 18: Financial Overview
Financial Jim Executive 18 Piro Overview Vice President, Finance, Chief Financial Officer & Treasurer
Slide 19: Recent Financial Results
Recent Financial Year December ($ Revenues Net EPS Factors Full-year Mark-to-market 2007 Year-to-Date Boardman California Delayed 2008 Non-qualified Beaver Senate 19 inIncome Operating (basic ended millions, Bill Financial oil Impacting hydro 2006 Summary $1,520 settlement receivable 31, sale outage
Slide 20: Proactive Regulatory Approach
Proactive Oregon Governor-appointed Rates PGE’s Communicate Commission Keep Oregon’s Deregulation PGE Large 20 essentially an set customers Approach Public eye based approach Regulatory on understands constantly; Utility on total economically have toaallows Regulation forward Commission result: Stra
Slide 21: Key Regulatory Dates
Key Regulatory 2009 Annual Approval Trojan Docket Decision: Web (1) www.oregon.gov/PUC/ 21 Resource General Remand(1) UE DR10, Update Forfor December Fall Q3 September 197 198 196 more Amortization –Rate of UE Q4 Tariff Dockets 2008 detail 88, Case 2008 2008 2008 for UM refer at 2009 of 989 the toBo
Slide 22: 2009 General Rate Case
2009 General Initially Updated Allowed Stipulations: Capital Weighted Methodology Requested Average Increase NVPC: O&M, Staff Schedule(2): PGE Hearing Oral OPUC If (1) (3) filing, 22 approved, Excludes NVPC arguments testimony and General NVPC A&G order Structure: $151 Rate filed on rate in filing R
Slide 23: Annual Power Cost Recovery Mechanism
Recovery Annual Power $28 150 ($14) NVPC Baseline 75 90/10 Earnings Return 9.1% 100 10.1% Customer 11.1% PGE After (1) 23 Bps million(2) Bps absorbs the million(2) Sharing(1) Cost cost on of Power reset 90 of test earnings of Surcharge Refund ROE Equity percent ROE sharing Adjustment Power of allCos
Slide 24: Forward Capital Expenditures
Forward Capital Attractive Earnings New Projects Smart Biglow Boardman Hydro Ongoing Depreciation (1) potential (2) (3) Current capital million (4) 24 metering relicensing Expenditures Canyon 2007 (in Capital additional capital expected growth emissions as millions)1 Forecasted (100% investments and
Slide 25: Rate Base, Capital and Debt/Capitalization
Rate Capital $500 $400 $415 $300 $200 $0 $100 60% Debt/Capitalization 55% 50% 45% 2004 30% 35% 40% Approved/Projected ($ $2,400 $2,347(4) 2002 $1,600 $1,800 $1,766 $2,000 $2,009(2) $2,200 Current Senior Secured S&P Moody’s (1) (3) 25 (4)mm) A Base 50% 47% 42% “BBB”: $455 $371 $255 $194 2005 2007 Per
Slide 26: Dividend Growth
Growth Common $0.240 $0.245 $0.250 $0.230 $0.235 26 07/06 $0.215 $0.220 $0.225 in Quarterly Current Dividend 4.3% stock Dividends 4.4% 11/06 dividend increase quarter’s growth Dividend 03/07is dividend 07/07 payment evaluated Payment 11/07 of Date 24.5 basedhistory: 03/08 cents on07/08 capital per s
Slide 27: Drivers of Continued Earnings Growth
Driverseconomic Strong Continued Investments Relationships Existing 27 ofmechanisms Future operational inwith prudent and Performance regulators load for excellence rate sharing growth base andassets power and customer in operating customer drive costgroups volatility earnings area focus to ensure d
Slide 28: Strategy
Strategy Portland Vertically Stability Diversified Experienced Fair Strong Growth Necessary Earnings 28 andload balance balanced for General and integrated, and power and Success management dividend prudent sheet/ customer Electric regulatory supply regulated credit growth regulated is growth team a
Slide 29: Investor Relations Contact Information
Investor William Director, Portland William.Valach@pgn.com 503-464-7395 121 Suite Portland, 29 www.PortlandGeneral.com S.W. 1WTC0403 J. Relations General Investor OR Salmon Valach 97204 Electric Street Relations ContactCompany Information
Slide 30: Appendix Table of Contents
Table ofSupply Appendix Organization Trojan Hydro Selective Natural Boardman Diverse Project Generation Strategic 30 Remand Class Management Gas Mix Contents Location Water Coal Excellence Transportation Action of Chart p.36 Resources Case Withdrawal Supply Within p.31 Suits –p.32 Exceeding p.44 and
Slide 31: PGE Organization Chart
PGE (24) Organization Peggy CEO (34) (28) (30) and Fowler Jim President Jay Steve Jim Piro Arleen Executive Dudley Vice Quennoz Lobdell Barnett Vice Vice Vice President President General President Finance, Counsel Nuclear Power President Chief and &Information Power Operations Administration && Fina
Slide 32: Trojan Remand Case
Trojan PGE regulatory As What Whether Commission The 32 aOPUC result collected prices Remand theliabilities of has would OPUC order the aindicated processed Case “return Oregon on have has (2000 September authority on” been that Court the Settlement) Trojan the remand inof effect September 30, toApp
Slide 33: Trojan Class Action Suits
Trojan Two charging moot The proceedings, In April June Class 33 August October Oregon class 3, in 10, action Class 2008: whole OPUC-approved 2008: 2006, action 2006, 2007 Supreme suits Action including Abatement orMotion the the suits the in request part. Oregon Suits plaintiffs Marion Court were t
Slide 34: Diverse Resources: Hydro Projects
Diverse Round Pelton Deschutes 298 34 MW Butte Mix Net River of Capability Resources Projects — Hydro
Slide 35: Diverse Resources: Hydro Projects
Diverse River Sullivan Oak Faraday North Clackamas 190 35 MW Grove Mill Fork Mix Net &ofCapability Willamette ResourcesRiver — Hydro Projects
Slide 36: Hydro Diversity
Hydro Diversity 12 7 5 36 plants High 99%+ Priest Supply owned, (contract) Portland Deschutes Clackamas Willamette Salem Pelton Sullivan RoundButte on of river 5Wanapum reliability Rapids river contract, (Mid-Columbia Columbia availability River Sandy River River River on Millsystems on3systems 2riv
Slide 37: Selective Water Withdrawal Update
Meet up Dissolved pH Temperature Provide Screen Begin Schedule Complete Start Operational Selective 37 water construction 100% aMarch Water downstream construction oxygen quality April of2009 Withdrawal powerhouse 2009 standards September fish December passage Update flows for 2007 lower 2008 system
Slide 38: Diverse Resources: Natural Gas
Diverse Coyote 234 505 Beaver Port 406 38 Capability MW Westward Springs Mix Netof Resources — Natural Gas
Slide 39: Natural Gas Transportation
Natural WCSB Spectra AECO Huntingdon/Sumas Kingsgate (Northwest Williams K-B Seattle Spokane Mist Beaver Coyote Portland TransCanada 39 NEVADA CALIFORNIA Malin Medford Rockies Boise OREGON Northwest Transmission Pipeline Storage BRITISH IDAHO GasPipeline B.C. Transportation Pipeline Port Gas COLUMBI
Slide 40: Diverse Resources: Coal
Diverse 380 Boardman Colstrip 296 40 Capability MWMix3Net & 4of Resources — Coal
Slide 41: Boardman Coal Supply and Transportation
Boardman Ability Multiple Secured 41 torail mine secure Coal contract sources Supply and through deliver and anddelivery Transportation coal 2013, from and options Powder currently provide River completing reliable Basin (Wyoming) and an competitive RFP forand post-2008 Montana pricingsupply
Slide 42: Diverse Resources: Wind
Diverse Klondike Biglow Commercial: Total Turbines: Vendor: 42 capacity: Canyon Phase Mix Vestas II 76 of (1.65 December I 125 Resources Wind MW MWFarm /2007 Turbine) —I Wind
Slide 43: Project Excellence Awards
Project Port Biglow Willamette Pelton 2008 Marmot Grand (American Trojan International Boardman Most River Sullivan Westward Aon Best Improved Mill Engineering Round Decommissioning Management Canyon Dam Flow Build Practices Power Fish Council Falls/Sullivan Project Butte Control Ladder Power Wind A
Slide 44: Generation Optimal Performance and Safety
Generation Optimal Safety OR-OSHA SafeStart Human Maintenance Staffing Foreman Boardman Industry Contractor Operations Root Reliability Process Work 44 Cause Management Performance Imporvement Mapping &Performance Best &Program Simulator Centered Management Succession Quality Training Voluntary Proc
Slide 45: Strategic Location and Access to Transmission
StrategictoLocation Access Sufficient Exploring 45 liquid rights opportunities Western to Within meet for 1:2 trading Western new peaktransmission hubs requirement Grid to meet demand and access new resources
Slide 46: General Electric
Z (eon General Electric
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