Portland General Electric Co · NYSE:POR

Portland General Electric — Investor Presentation (September 2013)

42 slides from Portland General Electric's investor presentation, September 2013

1. Slide 1: Investor Presentation

   Investor Presentation September 2013

2. Slide 2: Cautionary Statement

   Cautionary Statement Information Current as of August 2, 2013 Except as expressly noted, the information in this presentation is current as of August 2, 2013 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 — and should not be relied upon as being c

3. Slide 3: PGE Value Drivers

   PGE Value Drivers • Clear focus, 100% regulated utility • Growth in service territory • Multiple opportunities for rate-base growth • Progressive environmental and renewable position • Strong financial position 3

4. Slide 4: Strong Platform. Positioned for Growth.

   PGE INVESTMENT THESIS Strong Platform. Positioned for Growth. The Company The Strengths The Growth 4

5. Slide 5: PGE At A Glance

   PGE At A Glance  Vertically integrated – Beaver generation, transmission Port Westward and distribution OREGON WASHINGTON Montana Colstrip 3 & 4 26  Market cap $2.3B Columbia River 84  Service area in northwest Portland Sandy Eastern Oregon River Oregon T.W. Sullivan Coyote Springs River Mill Big

6. Slide 6: Attractive, Growing Service Territory

   Attractive, Growing Service Territory Demographic Growth Retail Load Growth (2) (Million MWhs) Continued in-migration • Population growth of 1-1.2% annually 18.7 18.7 18.6 through 2020(1) Industrial Growth Strong industrial economy • Growth in high-tech & manufacturing – Intel’s D1X facility – Data

7. Slide 7: History of Successful Capital Projects

   History of Successful Capital Projects Recent Capital Projects Average Rate Base ($B)  Biglow Canyon Wind Farm (2007-2010) ‒ Three phase build-out; $960 million 3.05 3.06 2.86  Smart Meters (2008-2010) 2.43 2.38 ‒ 825,000 meters installed; $145 million 1.94  Selective Water Withdrawal (2009) ‒ In

8. Slide 8: Constructive Regulatory Environment

   Constructive Regulatory Environment Regulatory Construct Tracking Mechanisms  Oregon Public Utility Commission  Net variable power cost recovery – Governor-appointed 3- – Annual Power Cost Update member commission with Tariff (AUT) staggered four-year terms – Power Cost Adjustment  9.75% allowed

9. Slide 9: General Rate Case: 2014 Test Year

   General Rate Case: 2014 Test Year PGE and Parties have stipulated to: 2014 General Rate Case Schedule  Return on Equity (ROE): 9.75% December 19 Final commission order target date  Capital structure: 50% debt, 50% equity January, 1, 2014 New customer prices  Rate base: $3.1 billion  Decoupling e

10. Slide 10: Beginning the Next Growth Phase

    PGE TODAY Beginning the Next Growth Phase 2006 – 2010 2011 – 2012 2013+ Grew business and built Transition – preparing for Opportunities for strong, solid platform next growth phase sustainable growth 10

11. Slide 11: Strong Platform. Positioned for Growth.

    PGE INVESTMENT THESIS Strong Platform. Positioned for Growth. The Company The Strengths The Growth 11

12. Slide 12: Key Strengths

    Key Strengths 1 High customer satisfaction Diversified customer base and 2 generation portfolio 3 High quality utility operations 4 Solid financial performance 5 Strong financial position 12

13. Slide 13: 1. High Customer Satisfaction

    1. High Customer Satisfaction All customer satisfaction and reliability measures consistently top quartile 13

14. Slide 14: 2. Diversified Customer Base and Generation Portfolio

    2. Diversified Customer Base and Generation Portfolio Retail Revenues Power Sources as a by Customer Class Percent of Retail Load (2012) (2013 AUT) (1) Total = $1.7B Total = 2,166 MWa Industrial Purchased Hydro 13% Power 23% 21% Residential Wind & Solar Commercial 50% Natural Gas 9% 37% 21% Coal 26%

15. Slide 15: 3. High Quality Utility Operations

    3. High Quality Utility Operations  Highly dependable generation portfolio with 90% availability in through June 2013  Strong power supply operations to stabilize and optimize power costs  Progressive approach to reduce coal Effective generation – Boardman 2020 Plan Utility Operations  Ongoing T

16. Slide 16: 4. Financial Performance

    4. Financial Performance Net Income EPS ROE ($M) (Diluted) $147 9.0% $141 $1.95 $1.87 8.3% $97- $1.25- 5.4- 109(1) 1.40(1) 6.1%(1) 2011 2012 2013E 2011 2012 2013E 2011 2012 2013E 1) Based on the guidance range disclosed on PGE’s Q2 Earnings Call on August 2. 2013 guidance includes includes a reducti

17. Slide 17: 4. Consistent Dividend Growth

    4. Consistent Dividend Growth 3% CAGR $1.09 $1.07 $1.05 $1.03 $1.00 $0.96 $0.92 2007 2008 2009 2010 2011 2012 2013E Target Payout Ratio of 50% to 70% Note: Represents annual dividends paid 17

18. Slide 18: 5. Strong Financial Position

    5. Strong Financial Position Revolving Credit Facilities (1) Financial Resources (in millions)  Investment grade ratings of BBB and Baa1  Manageable debt maturities – weighted average 15.5 years  Target capital structure of 50% debt and 50% equity Available Total Credit  11.1 million shares of c

19. Slide 19: Strong Platform. Positioned for Growth.

    PGE INVESTMENT THESIS Strong Platform. Positioned for Growth. The Company The Strengths The Growth 19

20. Slide 20: Load-Resource Forecast

    Load-Resource Forecast Load-Resource Forecast(1) - Energy MWa 3000 2500 2000 New Generation: RFP Projects Long-Term Contracts Incremental Energy Efficiency 1500 1000 PGE Generation 500 0 2014 2015 2016 2017 2018 2019 2020 2021 1) Load-Resource Forecast Data as of June 2013 20

21. Slide 21: Strategic Initiatives: Capacity Resources

    Strategic Initiatives: Capacity Resources Peaking Seasonal Capacity Capacity Purchased Power Agreements Project Name Port Westward Unit 2 with Iberdrola 100 MW of winter capacity Project Location Clatskanie, OR 100 MW of summer capacity Project Type PGE’s Benchmark Bid 220 MW Capacity Fuel Technolog

22. Slide 22: Strategic Initiatives: Baseload Resource

    Strategic Initiatives: Baseload Resource Baseload Energy Project Name Carty Generating Station Project Location Boardman, OR EPC Contract on Project Type Benchmark Site Capacity Fuel 440 MW Natural Gas Technology Mitsubishi CCGT Carty CapEx (in millions) Estimated Capital Cost $450 million (excludin

23. Slide 23: Strategic Initiatives: Renewable Resource

    Strategic Initiatives: Renewable Resource Renewable Energy Project Name Tucannon River Wind Farm Project Location Columbia County, WA EPC Contract Project Type on Third Party Site Tucannon River Capacity Fuel 267 MW Wind Project CapEx Technology Siemens Turbines (in millions) Estimated Capital Cost

24. Slide 24: Expected Rate Base and Capital Expenditures

    Expected Rate Base and Capital Expenditures $1.4B of Expected Increase in Rate Base $4.5B 8% CAGR $3.1B 2012 2012 2017 2017 Expected Capital Expenditures (in millions) 2013 2014 2015 2016 2017 TOTAL Base Capital Spending(1) $338 $354 $284 $262 $242 $1,480 Port Westward Unit 2 $161 $129 $10 $300 Cart

25. Slide 25: PGE Value Proposition

    PGE Value Proposition  Strong financial position  High quality utility operations Strong Platform positioned for Sustained  Solid growth in customer demand Growth  Multiple opportunities for rate-base growth 25

26. Slide 26: PGE Investor Relations Team

    PGE Investor Relations Team Director, Investor Relations William J. (503) 464-7395 Valach William.Valach@pgn.com Analyst, Investor Relations Lucia M. (503) 464-8586 Dempsey Lucia.Dempsey@pgn.com Portland Investors.PortlandGeneral.com 121 S.W. Salmon Street General Suite 1WTC0509 Electric Portland, O

27. Slide 27: Appendices

    Portland General Electric Appendices 27

28. Slide 28: Appendices

    Appendices 1. Financials 2. Resource planning 3. Regulatory environment 4. Business initiatives – details 28

29. Slide 29: Q2 2013 Financial Results

    Q2 2013 Financial Results Net Income (Loss) Earnings (Loss) per Share (in millions) 2012 2013 2012 2013 Q1 $49 $49 $0.65 $0.65 Q2 $26 $(22) $0.34 $(0.29) YTD $75 $27 $0.99 $0.36 Quarter over Quarter Drivers of Results in millions, pre-tax Cascade Crossing expense $(52) Customer billing matter $(9) G

30. Slide 30: Operational Update – Plant Outages

    Operational Update –Plant Outages  As disclosed on July 15, the Boardman and Colstrip Unit 4 coal plants went offline at the beginning of July due to specific equipment failures. – Boardman, of which PGE owns 65%, experienced a thermal hammer event in the cold reheat line causing structural damage,

31. Slide 31: Diversified Resource Mix

    Diversified Resource Mix Resource Capacity (at 12/31/12)(1) Power Sources as a Capacity % of Total Percent of Retail Load Capacity (2012 Actuals) Hydro Deschutes River Projects 298 MW 7.0% Clackamas/Willamette River Projects 191 5.0 Total = 2,166 MWa Hydro Contracts 588 14.0 1,077 26.0 Natural Gas/O

32. Slide 32: Changing Generation Portfolio

    Changing Generation Portfolio 2013 Power Sources as a 2017 Power Sources as a Percent of Retail Load(1) Percent of Retail Load(2) Purchased Purchased Hydro Power Hydro Power 6% 23% 20% 21% Wind & Solar Natural Gas Wind & Solar Natural Gas 9% 39% 12% 21% Coal Coal 26% 23% New Resources Driving Change

33. Slide 33: Integrated Resource Plan

    Integrated Resource Plan Integrated Resource Planning Process  Under OPUC guidelines, PGE is required to file an Integrated Resource Plan (IRP) within two years of acknowledgment of the previous plan  The IRP requires that the primary goal must be the selection of a portfolio of resources with the

34. Slide 34: Energy Load-Resource Balance

    Energy Load-Resource Balance Load-Resource Balance (2013-2021) Energy 3000 2500 Retail load before EE Retail load including EE 2016 shortfall: 649 MWa Annual Average Availability (MWa) 2000 (526 MWa after EE) Long-term Contracts Wind - Biglow 1-3, Klondike II, Vansycle 1500 Hydro - PGE-owned & Mid-C

35. Slide 35: Energy Action Plan

    Energy Action Plan Annual Annual Energy Action Plan for 2016(1) MWa PGE Load Before EE Savings 2,680 Remove 5-year Opt-Outs (195) Existing PGE & Contract Resources (1,836) PGE Resource Target 649 Resource Actions Thermal: CCCT 406 Combined Heat & Power 2 Renewable: ETO Energy Savings(2) 183 Existing

36. Slide 36: Capacity Load-Resource Balance

    Capacity Load-Resource Balance Load-Resource Balance (2013-2021) Winter Capacity 5000 Peak Hour Load before EE + Reserves 4500 Peak Hour Load 4000 after EE + Reserves 2016 Shortfall 1,360 MW before EE Wind - Biglow 1-3, 3500 1,179 MW after EE Klondike II, Available Capacity (MW) Vansycle 3000 Long-T

37. Slide 37: Capacity Action Plan

    Capacity Action Plan Capacity Action Plan for 2016(1) MW PGE Load Before EE Savings 4,185 Remove 5-year Opt-Outs (226) Operating Reserves(2) 182 Contingency Reserves(3) 225 Existing PGE & Contract Resources (3,006) PGE Resource Target 1,360 Resource Actions Thermal: CCCT 441 Combined Heat & Power 2

38. Slide 38: 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

39. Slide 39: Renewable Portfolio Standard

    Renewable Portfolio Standard Additional Renewable Resources  Integrated Resource Plan addresses procurement of wind or other renewable resources to meet requirements of Oregon’s Renewable Portfolio Standard by 2015 – need is approximately 100 MWa (or 300 MW wind nameplate capacity) Year Renewable T

40. Slide 40: 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. This includes a Sales Normalization Adjustment (SNA) mechanism for residential and small nonresi

41. Slide 41: Cost Efficiency Initiatives

    Cost Efficiency Initiatives  Companywide benchmarking to identify best practices  Investments to leverage technology – Financial system and supply chain replacement project – Timekeeping system – Enterprise asset and work management systems  Process improvements and work redesign  Working to man

42. Slide 42: Biglow Canyon Wind Farm

    Biglow Canyon Wind Farm  Columbia Gorge, eastern Oregon  450 MW total nameplate capacity  Total cost approximately $1B Phase I Phase II Phase III Nameplate Capacity 125 MW, 76 turbines 150 MW, 65 turbines 175 MW, 76 turbines MW per unit 1.65 Megawatts 2.3 Megawatts 2.3 Megawatts Cost (w/AFDC) $25

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