Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (February 2024)
29 slides from Portland General Electric's investor presentation, Feb 16, 2024
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC February 16, 2024 1
Slide 2: Cautionary statement
Cautionary statement Information Current as of February 16, 2024 Except as expressly noted, the information in this presentation is current as of February 16, 2024 and should not be relied upon as being current as of any subsequent date. PGE undertakes no duty to update this presentation, except as
Slide 3: The Company
The Company 3
Slide 4: PGE at a glance
PGE at a glance 3,500+ MWs of Generation Beaver Quick facts Port Westward 1 & 2 Washington Tucannon River • Vertically integrated energy company that generates, OREGON WASHINGTON Wind Farm transmits and distributes electricity 26 Eastern Oregon Columbia River • Approximately 934,000 retail customers
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(1) and framework increase resil
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 • 26 I-5 corridor and port access provide opportunity for transportation and Columbia River warehou
Slide 7: Reliability and resiliency investments
Reliability and resiliency investments Capital expenditures forecast(1) $1,355 $1,310 $170 $1,200 $1,150 $1,155 $180 $435 $235 $255 $265 $155 $120 $120 $120 $120 $115 $620 $610 $600 $625 $590 $165 $160 $165 $170 $175 2024 2025 2026 2027 2028 Generation Distribution General, Technology, Strategic BES
Slide 8: Clean energy transition
Clean energy transition Advancing toward a clean energy future PGE has made significant progress toward decarbonization in the past decade Meaningful steps underway to meet 2030 emissions targets: • Removing coal from our portfolio to meet our legislative requirement • Advanced construction of the C
Slide 9: Resource planning and procurement
Resource planning and procurement 2023 IRP Action Plan 2023 RFP Timeline Customer Actions May 2023 Draft RFP submitted to • Increased energy efficiency, distributed energy OPUC for approval resources and incorporation of customer demand response February 2024 Final RFP issuance Community-Based R
Slide 10: Illustrative rate base growth
Illustrative rate base growth • PGE’s five-year base capital expenditure forecast of $6.2 billion drives 8.0% average rate base growth, from 2022 base year • Illustrative incremental RFP opportunities(2) potentially increase average rate base growth to 9.2%, from 2022 base year $9.5 9.2% CAGR $9.1 $
Slide 11: Key Strengths
Key Strengths 11
Slide 12: Operational excellence
Operational excellence Continued focus on safety and a leader in reliability System Average Lost Time Incident Interruption Duration Overall Generation Rate Index (SAIDI)(1) Availability 0.29 2nd Quartile 86.5% 2022: 0.74 2022: 2nd Quartile 2022: 86.3% Note: All data is as of December 31, 2023 (1) E
Slide 13: Customer focus
Customer focus CUSTOMER SATISFACTION Ranked in the top decile nationwide for Residential Customer Delight according to Escalent’s National Energy Utility Benchmarking Study (2023) TOP 5 Ranked as a Top 5 Utility in the United States for Customer Experience according to Forrester’s The US Customer Ex
Slide 14: Clean energy and transmission investment
Clean energy and transmission investment Building a smarter, stronger, more flexible grid to deliver the power customers need today and into the future Advancing the clean energy transition Clearwater Wind Facility • 311 MW of emissions-free generation for PGE customers • PGE owns 208 MW of the proj
Slide 15: Long-term financial performance
Long-term financial performance $3.18(4)(7) $2.75(1) $2.74(2) $2.98(4)(7) $2.72 $2.60(2) GAAP EPS 2.72 $2.60(2) $2.38(3) 2.60 (diluted) $2.33(3) 2.33 Long-term Non-GAAP EPS 5% to 7%(4) earnings (diluted) $1.72 1.72 (1) growth from 2022 adjusted base year Adjusted Non-GAAP Guidance(7) (diluted) 2020
Slide 16: Proven dividend growth
Proven dividend growth (4) $1.99 Dividends $1.88 declared per $1.79 common share(3) $1.70 $1.59 $1.52 $1.43 $1.34 $1.26 $1.18 Target Payout 70% Ratio Actual Payout 60% Ratio (5) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Long-term dividend growth guidance of 5-7%(4) (1) Compound Annual Growt
Slide 17: Liquidity and financing
Liquidity and financing Ratings S&P Moody’s Total Liquidity: $969 million as of December 31, 2023 (dollars in millions) Senior Secured A A1 Cash Senior Unsecured BBB+ A3 $5 Commercial Paper A-2 P-2 Outlook Stable Stable Letters of Credit Expected 2024 debt $214 financings Q1 Q2 Q3 Q4 (dollars in mil
Slide 18: Environmental, Social and Governance
Environmental, Social and Governance 18
Slide 19: Environmental, social, & governance highlights
Environmental, social, & governance highlights Decarbonize Electrify Perform In 2023, PGE served 32% of customer load from specified non-emitting energy sources. PGE continued to make steady progress, reducing emissions from unspecified sources(1), procuring clean energy resources and investing GHG
Slide 20: Diverse and experienced Board
Diverse and experienced Board Track record of thoughtful refreshment Director Committee Other Public enables us to have a Board with the Name Age Since Industry/Experience Diversity Membership(1) Boards experience and diverse perspectives Dawn Farrell 63 2022 Utilities White/Female • Finance 1 neede
Slide 21: Diversity, equity, and inclusion
Diversity, equity, and inclusion Committed to DEI across our business • Partners and suppliers: Increased our supplier diversity to 18% of total supplier spending in 2023, up from 14% in 2022 Workforce by Gender(1) • Awareness, education, and training: Racial equity 0.5% education for our board, lea
Slide 22: Appendix
Appendix 22
Slide 23: PGE's Wildfire Risk Mitigation Hierarchy
PGE’s Wildfire Risk Mitigation Hierarchy Public Safety Power Shutoff In response to extreme conditions, PGE 2 has successfully implemented two PSPS Public Safety Power Shutoffs (PSPS), one PGE turns off power in a in 2020 and one in 2022 to protect limited, high-risk lives, property and public space
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 • PGE can recover 80% of po
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 15.8 PGE - Sch. 83 11.1 EEI U.S. Average 17.5 EEI U.
Slide 27: 2024 Earnings Sensitivities
2024 Earnings Sensitivities Sensitivity Full-Year Adjusted EPS Impact Load Growth - Residential(1) ± 1% ± $0.07 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 ± $0.01 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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