Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (April 2023)
29 slides from Portland General Electric's investor presentation, Apr 28, 2023
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC APRIL 28, 2023
Slide 2: Cautionary statement
Cautionary statement Information Current as of April 28, 2023 Except as expressly noted, the information in this presentation is current as of April 28, 2023 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 — and should not be relied upon as being
Slide 3: The Company
The Company
Slide 4: PGE at a glance
PGE at a glance 3,300+ MWs of Generation Beaver Quick facts Port Westward 1 & 2 Washington Tucannon River • Vertically integrated electric utility encompassing OREGON WASHINGTON Wind Farm generation, transmission and distribution 26 Eastern Oregon Columbia River • Approximately 926,000 retail custom
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 • Adopting 100% clean energy by 2040 • Investing in our system to maintain and • 5% to 7% long-term EPS growth from framework increase resilie
Slide 6: Diverse, growing service area
Diverse, growing service area • Growing 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 warehou
Slide 7: Reliability and resiliency investments
Reliability and resiliency investments Capital expenditures forecast(1) $1,325 with Clearwater and Seaside $70 $415 $960 $910 with Seaside with Seaside $160 $130 $800 $800 $180 $80 $80 $80 $80 $840 $500 $550 $570 $570 $570 $780 $800 $160 $150 $150 $150 $150 2023 2024 2025 2026 2027 Generation T&D Ge
Slide 8: Clean energy transition
Clean energy transition Advancing toward a clean energy future PGE has taken significant steps to decarbonize its system: • 2022 emissions 25% below HB 2021 baseline levels (average emissions 2010-2012) Meaningful steps underway to meet 2030 emissions targets: • Removing coal from our portfolio to m
Slide 9: Illustrative rate base growth
Illustrative rate base growth • PGE’s five-year base plus Clearwater Wind and Seaside battery capital expenditure forecast of $4.8 billion drives 7.3% average rate base growth from 2022 base year • Illustrative incremental RFP opportunities(1) potentially increase average rate base growth to 8.6%, f
Slide 10: 2021 RFP Update
2021 RFP Update Project Name Clearwater Wind (1) Seaside Grid Troutdale Grid Project Location Eastern Montana Portland, OR Troutdale, OR Battery Energy Storage Battery Energy Storage Project Type Wind System System PGE Ownership % 67% 100% - Total Nameplate Capacity 311 MW 200 MW 200 MW PGE Ownershi
Slide 11: 2024 General Rate Case
2024 General Rate Case Rate Case Key Terms Rate Base $6.3 billion Rate Base Increase $859 million, 16% ROE 9.8% Capital Structure 50/50 Cost of Debt 4.32% Cost of Capital 7.06% Revenue Requirement Increase $338 million • Modify Power Cost Adjustment Mechanism (PCAM) structure • Remove deadbands with
Slide 12: Key strengths
Key strengths
Slide 13: Focus on customers
Focus on customers #1 #3 Top quartile No.1 renewable Environmental No. 3 utility in system energy program in Champion the U.S. for reliability(1) the nation for 13 Utility Trusted Brand & customer years(2) Customer Engagement™ experience Edison Electric Institute Residential Study Escalent 2021 Nati
Slide 14: Long-term financial performance
Long-term financial performance $2.75(1) $2.72 $2.74(2) $2.75(3)(6) $2.39 $2.60(2) $2.60(3)(6) EPS Long-term (diluted) $1.72(1) 5% to 7%(3) earnings growth from 2022 adjusted base year Adjusted Guidance(6) (diluted) 2019 2020 2021 2022 2023E (2) Accounting ROE(5) 8.4% 6.0% 9.2% 8.5% 8.3% - 8.8%(3)(4
Slide 15: Proven dividend growth
Proven dividend growth $1.88(4) Dividends $1.79 declared per $1.70 common share(3) $1.59 $1.52 $1.43 Actual Payout $1.34 Ratio $1.26 $1.18 Target Payout 70% $1.12 Ratio 60% (5) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E Long-term dividend growth guidance of 5-7%(4) (1) Compound Annual Growth
Slide 16: Liquidity and financing
Liquidity and financing Ratings S&P Moody’s Total Liquidity: $679 million as of March 31, 2023 (dollars in millions) Senior Secured A A1 Cash Senior Unsecured BBB+ A3 $12 Commercial Paper A-2 P-2 Letters of Outlook Stable Stable Credit Actual and expected 2023 $85 debt financings Q1 Q2 Q3 Q4 (dollar
Slide 17: Environmental, Social and Governance
Environmental, Social and Governance
Slide 18: ESG highlights
ESG highlights Decarbonize Electrify Perform In 2022, PGE served 39% of customer load in 2022 from specified non-emitting energy sources. 2022 emissions were 25% below HB 2021 baseline levels (average emissions 2010-2012) GHG Emissions Reduction We brought the first-of-its scale combined wind, solar
Slide 19: Diverse and experienced Board
Diverse and experienced Board Track record of thoughtful refreshment enables us to have a Board with the Director Committee Other Public experience and diverse perspectives Name Age Since Industry/Experience Diversity Membership(1) Boards needed to oversee our business Dawn Farrell • Finance 63 2022
Slide 20: Diversity, equity, and inclusion
Diversity, equity, and inclusion Committed to DEI across our business • Partners and suppliers: Increased our supplier diversity to 14% of total supplier spending in 2022, up from 10% in 2021 Workforce by Gender(1) • Awareness, education, and training: Racial equity 0.3% education for our board, lea
Slide 21: Appendices
Portland General Electric APPENDICES
Slide 22: Major deferral update
Major deferral update On October 24, 2022, PGE and parties submitted stipulations to the OPUC reflecting an agreement that resolved all matters related to 2021 of the 2020 Labor Day Wildfire, February 2021 Ice Storm and most of the 2021 Power Cost Adjustment Mechanism. On March 21, 2023, amortizatio
Slide 23: 2022 GRC order deferral earnings test
2022 GRC order deferral earnings test • OPUC Order 22-129 created earnings tests for certain major deferrals, including the Boardman revenue requirement at a regulated Return on Equity (ROE) threshold of 9.5% and the 2020 labor day wildfire and the 2021 ice storm deferrals using a 9.3% regulated ROE
Slide 24: Constructive regulatory / policy environment
Constructive regulatory / policy environment Oregon Federal • Oregon legislation requires 100% clean energy by 2040 • The Inflation Reduction Act (IRA), which was signed into law in • Oregon Public Utility Commission August 2022, is expected to further enhance PGE’s already strong prospects for rene
Slide 25: 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 26: 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 14.4 PGE - Sch. 83 10.7 EEI U.S. Average 16.2 EEI U.
Slide 27: 2023 Earnings Sensitivities
2023 Earnings Sensitivities Sensitivity Full-Year Adjusted EPS Impact Load Growth - Residential(1) ± 1% ± $0.06 Load Growth – Commercial(1) ± 1% ± $0.02 Load Growth – Industrial(1) ± 1% ± $0.01 O&M Expense ± $10 million ± $0.07 Interest Rates(2) ± 25 bps ± $0.02 Effective Tax Rate ± 1% ± $0.03 (1) A
Slide 28: Non-GAAP financial measures
Non-GAAP financial measures This press release contains certain non-GAAP measures, such as adjusted earnings, adjusted EPS and adjusted earnings guidance. These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities, are infrequent in
Slide 29: Non-GAAP financial measures
Non-GAAP financial measures Non-GAAP Earnings Reconciliation for the year ended December 31, 2020 (Dollars in millions, except EPS) Net Income Diluted EPS GAAP as reported for the year ended December 31, 2020 $155 $1.72 Exclusion of certain trading losses 127 1.42 Tax effect (1) (35) (0.39) Non-GAAP
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