Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (December 2020)
35 slides from Portland General Electric's investor presentation, Dec 18, 2020
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC DECEMBER 18, 2020
Slide 2: Cautionary statement
Cautionary statement Information Current as of December 18, 2020 Except as expressly noted, the information in this presentation is current as of December 18, 2020 — the date on which PGE filed its Form 8-K— and should not be relied upon as being current as of any subsequent date. PGE undertakes no
Slide 3: The Company
The Company 3
Slide 4: PGE at a glance
PGE at a glance Quick facts 3,300+ MWs of Generation • Vertically integrated electric utility encompassing generation, transmission and distribution Beaver • 900,000 retail customers within a service area of Port Westward 1 & 2 Washington Tucannon River 2 million residents OREGON WASHINGTON Wind Far
Slide 5: Attractive, growing service area
Attractive, growing service area • Near-term economic uncertainty driven by COVID-19 2,600 1.20 2,400 pandemic 2,200 1.15 While annual rates of growth Energy Deliveries Growth, • 2,000 1.10 (4) may fluctuate, we continue to 1,800 Indexed 2019=1 Energy Deliveries, MWa project long term load growth 1,
Slide 6: 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 7: 2019 general rate case
2019 general rate case • Approved price increase: 0.5% • Return on equity (ROE): 9.5% • Cost of long-term debt: 5.1% Key Items • Capital structure: 50% debt, 50% equity • Rate base: $4.75 billion • Energy storage projects associated with renewables can be included Requests in future RAC filings for
Slide 8: Business updates
Business updates 8
Slide 9: Oregon wildfires
Oregon wildfires Safety is PGE’s number one concern. Throughout the recent wildfire events in Oregon PGE responded proactively by shutting down at-risk transmission lines and worked with first responders and state agencies to ensure the safety of our customers and the people of Oregon Our safety act
Slide 10: Oregon wildfires – Regulatory impacts
Oregon wildfires – Regulatory impacts PGE has been in contact with the OPUC throughout the wildfire events in our state and has partnered with state agencies to coordinate safety and maintain transparent communication about the impact to our customers. Legal Liability Framework • PGE is not aware of
Slide 11: Oregon wildfires – Financial impacts
Oregon wildfires – Financial impacts The financial impacts of the wildfire events primarily relate to costs for system restoration, which will include O&M and capital components. Financial impact and regulatory recovery • We believe O&M impacts of wildfire restoration will not impact full-year guida
Slide 12: Key strengths
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Slide 13: Focus on customers
Focus on customers #1 Top quartile Top quartile Trusted business No.1 renewable system customer partner & energy reliability satisfaction environmental program in the among large champion nation by Edison Electric Institute electric and enrollment for electric & gas Cogent Syndicated Utility Trusted
Slide 14: Diverse generation and customer base
Diverse generation and customer base Power sources as a percentage of retail load Retail revenues by customer class 2020 AUT(1) 2019(2) Industrial 12% Hydro 18% Gas Wind & Solar Residential 51% 12% 52% Commercial 35% Coal 19% Total = 2,132 MWa Total retail revenues = $1.9B (1) Hydro, wind and solar
Slide 15: High-quality utility operations
High-quality utility operations Western Energy Imbalance • Highly dependable generation fleet with Market eight-year average availability of 92%(1) • Strong power supply portfolio management and western EIM integration to enhance reliability and optimize resources • Transitioning away from coal-fire
Slide 16: Strong liquidity position for growth
Strong liquidity position for growth Available liquidity(1) Financings Q1 2020 Q2 2020 Q3 2020 Q4 2020 (Dollars in millions) Long-Term Debt Issued $200 Issued $230 Securities million million Revolving Credit Available Facility(2) Cash + Credit + Pollution Control Issued $21 Cash Revenue Bonds millio
Slide 17: Long-term debt maturity schedule
Long-term debt maturity schedule Manageable debt maturities Dollars in millions $310 $275 $200 $98 $175 $170 $160 $160 $160 $150 $150 $150 $130 $100 $105 $100 $100 $80 $70 $75 $70 17
Slide 18: Long-term financial performance
Long-term financial performance Net income, earnings per share, and ROE Long-term 4 to 6% earnings growth from $2.37 $2.39 2019 base year(2) $2.29(1) $2.16 EPS $1.60(2) $2.10 (1) (diluted) 2020E amounts include the impact of $1.40(2) Q3 energy trading Net income $212 $214 losses. The cumulative (dol
Slide 19: Proven dividend growth
Proven dividend growth $1.56(4),(5) Dividends paid per common $1.50 share(3) $1.41 $1.32 $1.24 $1.16 Target Payout $1.09 $1.11 70% $1.05 $1.07 Ratio Actual Payout 60% Ratio 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Long-term dividend growth guidance of 5-7%(4) (1) Compound Annual Growth Rate
Slide 20: Looking forward
Looking forward 20
Slide 21: Investing in the future
Investing in the future Decarbonize Electrify Perform 80% goal Smart Grid Test Beds System upgrades Wheatridge Renewable Accelerating transportation Demand response Energy Facility electrification Meeting growth Green Tariff EV transit partnerships Access to capacity
Slide 22: Clean and reliable energy future
Clean and reliable energy future Renewable Portfolio Standard 50% 45% Key elements 35% • Transition PGE customers off coal-fired 27% 20% generation by 2030 • Production tax credits included in annual power cost filings 2020 2025 2030 2035 2040 • Pursue transportation electrification Renewable Additi
Slide 23: 2019 Integrated Resource Plan
2019 Integrated Resource Plan Q1 2020 2020 2024 July 2019 Q3-Q4 2019 January 2020 Acknowledgement received in Discussing capacity contract Targeting online dates in 2024 Comments filed terms by Staff Memorandum public IRP filed with meeting on March 16 with regional operators of Public meeting for n
Slide 24: Integrated Operations Center
Integrated Operations Center Improving security, resiliency, and reliability for our customers • A new 24/7 center for key operations • Advances our integrated grid strategy • Significantly improves seismic resilience, cyber and physical security • Improves monitoring, control and optimization of di
Slide 25: Grid Modernization
Building a smarter, more resilient grid INITIATIVES FRAMEWORK 1 Core Utility Assets INTEGRATION OF DERs & CUSTOMER TECHNOLOGIES GRID PLANNING & ENGINEERING 2 Field Area Network Grid Modernization 3 Distribution Automation Interconnectivity Layer Management systems for feeders and (Data Management an
Slide 26: Capital planning
Capital planning(1) $750 Outlook $655 • Increased capital spending by $100 million between 2020 $500 $500 $500 and 2021 Integrated Operations Center • Updating and Wheatridge Renewable Energy replacing aging Facility generation, Ongoing capital expenditures transmission and distribution equipment •
Slide 27: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Environmental Social Governance Decarbonize Customers Experienced Aiming to achieve companywide Ensuring universal access at Wide range of skills, backgrounds net zero greenhouse gas emissions affordable prices and leadership positions by 2040 Community Div
Slide 28: PGE investor relations team
PGE investor relations team Jardon Jaramillo Senior Director – Treasury, Investor Relations and Finance Operations (503) 464-7051 Jardon.Jaramillo@pgn.com Peter Davis Analyst, Investor Relations (503) 464-8586 Peter.Davis@pgn.com Portland General Electric investors.portlandgeneral.com 121 SW Salmon
Slide 29: Appendices
Portland General Electric APPENDICES 29
Slide 30: 2016 Integrated Resource Plan
2016 Integrated Resource Plan A flexible, balanced plan that reflects our commitment to a low-carbon future and achieves the Oregon Clean Electricity Plan Renewables • Procured renewables (100 MWa) to help ensure Oregon Clean Electricity Plan • Wheatridge Renewable Energy Facility: • Split ownership
Slide 31: 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 32: Renewable portfolio standard
Renewable portfolio standard Additional renewable resources • As of 2018, PGE had the following qualifying renewable resources: Type of Resource % of Retail Load Wind 9.9% Low-Impact Hydro 2.5% Solar & Other <1% Renewable Portfolio Standard: 2011 2015 2020 2025 2030 2035 2040 5% 15% 20% 27% 35% 45%
Slide 33: 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 34: Average retail price comparison
Average retail price comparison Residential and Commercial - Winter 2020 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 EE
Slide 35: Average retail price comparison
Average retail price comparison Small and Large Industrial – Winter 2020 Industrial Electric Service Prices Large Industrial Electric Service Prices 1,000 kW peak demand and 400,000 kWh monthly consumption 50,000 kW peak demand and 32,500,000 kWh monthly consumption (Prices in cents per kWh) (Prices
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