Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (July 2021)
32 slides from Portland General Electric's investor presentation, Jul 30, 2021
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC JULY 30, 2021
Slide 2: Cautionary statement
Cautionary statement Information Current as of July 30, 2021 Investor Relations Contacts Except as expressly noted, the information in this presentation is current as of July 30, 2021 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 — and should not
Slide 3: The Company
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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: Strategic goals
Strategic goals Providing safe, reliable, affordable, clean and secure energy solutions to power our customers’ lives everyday Decarbonize Electrify Perform The power we supply to our Other areas of the economy, By improving efficiency, safety, customers including transportation and and reliability
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: Investing for reliability and resiliency
Investing for reliability and resiliency Capital expenditures forecast $700 $100 $100 $550 $550 $550 $550 $85 $85 $85 $85 $400 $385 $385 $385 $385 $100 $80 $80 $80 $80 2021 2022 2023 2024 2025 Generation Transmission and Distribution General Business and Technlogy Integrated Operations Center Note:
Slide 10: Integrated Resource Plan
Integrated Resource Plan ActionJuly Plan2019 Q3-Q4 2019 January 2020 The plan reflects our focus on meeting customer Comments filed by needs and addressing Staff stakeholderPublic Memorandum feedback meeting Staff/Stakeholders/PGE due Final Order expected Customer Resource Actions Increased energy e
Slide 11: Key strengths
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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 by Engagement™ Residential Study States for Edison Electric Escalent Institute enrollment for customer l
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: Liquidity and financing
Liquidity and financing Total Liquidity: $668 million as of June 30, 2021 (dollars in millions) Ratings S&P Moody’s Cash Senior Secured A A1 $17 Senior Unsecured BBB+ A3 Commercial Paper A-2 P-2 Letters of Credit Outlook Stable Stable $151 Credit Actual and Expected Facilities 2021 Financings Q1 Q2
Slide 15: 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 16: 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 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 PGE’s 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) • In order to do so, we need to reduce our emissions by approximately 5.0 MMtCO2e • By 2030
Slide 20: Moving toward a carbon neutral future
Moving toward a carbon neutral future Increasing renewables in our portfolio 5,000 Renewable Additions (MW)(2) • Layered approach balances near-term and long-term risks 4,000 and benefits for customers • Incremental renewable actions reduce near-term carbon 3,000 emissions and puts PGE on track to m
Slide 21: Human capital management and culture
Human capital management and culture Our people and our culture are critical to our continued success. We seek to attract and retain a talented, motivated, and diverse workforce and to maintain a culture that reflects our core values, our drive for performance, and our commitment to acting with the
Slide 22: ESG Governance framework
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 of Directors and the Nominating and Corporate Governance Committee is responsible for reviewing signific
Slide 23: Robust governance
Robust governance PGE is committed to conducting business in accordance with high standards of corporate governance to achieve our mission while creating value for our shareholders, customers, and other stakeholders Effective board leadership and independent Board Membership oversight Race/Ethnic Di
Slide 24: Sustainability reporting
Sustainability reporting PGE is committed to transparency and has shared data on our operations and environmental impact as part of our sustainability reporting since 2013 PGE adopted the Edison Electric Institute’s PGE expanded its level of transparency Our 2019 Sustainability Key Metrics framework
Slide 25: Appendices
Portland General Electric APPENDICES
Slide 26: Deferral updates
Deferral updates COVID-19 (Docket UM 2114) • 2021 earnings guidance reflects the ongoing impact of COVID-19 • As of June 30, 2021 PGE has deferred $16 million, primarily related to bad debt expense. Amortization of any deferred costs will remain subject to OPUC review prior to amortization Wildfires
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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) EEI U.S. Average 13.8 EEI U.S. Average 11.5 PGE - Sch 7 (OR) 12.7
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