Portland General Electric Co · NYSE:POR
Portland General Electric — Q3 2015 Earnings Presentation
15 slides from Portland General Electric's earnings presentation, Oct 27, 2015
Slide 1: Earnings Conference Call Third Quarter 2015
Earnings Conference Call Third Quarter 2015
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of October 27, 2015 Except as expressly noted, the information in this presentation is current as of October 27, 2015 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 — and should not be relied upon a
Slide 3: Leadership Presenting Today
Leadership Presenting Today On Today’s Call ▪ Financial Performance Jim Piro President & CEO ▪ Operational Update ▪ Economy and Customers ▪ Strategic Initiatives Jim Lobdell Senior VP ▪ Financial Update of Finance, CFO & Treasurer ▪ Regulatory Update 3
Slide 4: Third Quarter 2015 Earnings Results
Third Quarter 2015 Earnings Results NI in millions Q3 2014 Q3 2015 Net Income $39 $36 Diluted EPS $0.47 $0.40 Q4: $0.59 - $0.74 Q1 Q1 Q4 Q3 Q2 Q2 Q3 2014 EPS 2015E EPS $2.18 $2.05 - $2.20 4
Slide 5: Accomplishments and Operational Update
Accomplishments and Operational Update 5
Slide 6: Economic Update
Economic Update Economic Update ▪ Oregon's annual job growth reached a 10-year high in August, expanding by more than 60,000 jobs over past 12 months(1). ▪ Unemployment of 5.4 percent in our operating area, below Oregon and slightly above U.S. ▪ Energy deliveries, weather adjusted, were down 1.1 per
Slide 7: New Generation: Baseload Resource
New Generation: Baseload Resource Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440 MW / Natural Gas Technology Mitsubishi Turbine EPC Contractor Abener/Abengoa Estimated In-Service Date Q2 2016 Customer Price Impact 3.1 percent* Overall construction ~70% complete; including
Slide 8: Estimated Capital Expenditures
Estimated Capital Expenditures $580 Current Capital Outlook ▪ New customer information and meter data $431 management replacement project has been launched. $366 ▪ Management continues to $296 $281 evaluate incremental reliability and efficiency investments in our operations and fuel supply manageme
Slide 9: 2016 Integrated Resource Plan
2016 Integrated Resource Plan IRP Process Timeline 2015 Develop IRP / Public Process 2016 File IRP 2017 Acknowledgement from OPUC expected and RFP process commences Areas of Focus ▪ Energy efficiency and demand side actions ▪ Evaluation of carbon emissions and the Clean Power Plan ▪ Energy and capac
Slide 10: Third Quarter 2015 Financial Results
Third Quarter 2015 Financial Results NI in millions Q3 2014 Q3 2015 Net Income $39 $36 Diluted EPS $0.47 $0.40 Key Quarter over Quarter EPS Drivers Additions of Tucannon River, Port Westward 2 in customer prices and Carty AFDC Miscellaneous expenses not included in prices Increase in common share co
Slide 11: Total Revenues and Net Variable Power Costs
Total Revenues and Net Variable Power Costs in millions Q3 2014 Q3 2015 Total Revenues $484 $476 Purchased Power & Fuel $202 $181 Less: Wholesale Sales $(39) $(29) Net Variable Power Costs $163 $152 Q3 2014 Q3 2015 Sources of Power Sources of Power Coal Natural Gas 26% 22% 26% 33% Hydro Wind 12% 8%
Slide 12: Operating Expenses
Operating Expenses In Millions Q3 2014 Q3 2015 Generation, Transmission & Distribution $60 $64 Administrative & Other $54 $59 Total O&M $114 $123 Depreciation & Amortization $76 $76 Interest Expense, Net $23 $28 Other Income, Net $12 $4 Income Taxes $16 $8 12
Slide 13: General Rate Case - 2016 Test Year
General Rate Case - 2016 Test Year Rate Case Settlement Revenue increase: $13 Million Projected average price increase: 0.7% Return on Equity (ROE): 9.6% Cost of Capital: 7.52% Capital Structure: 50% debt, 50% equity Rate Base: $4.4 Billion Additional Stipulation and As Filed 2/12/2015 Stipulations
Slide 14: Liquidity and Financing
Liquidity and Financing as of Total Liquidity 9/30/2015(in millions) Credit Facilities $ 635 Commercial Paper -- Letters of Credit $ (96) Cash $ 92 Available $ 631 Senior Senior Secured Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable 2015 Financing Activity Q1 2015 Q2 2015 Q3 2015 Bank Loan
Slide 15: Guidance
Guidance 2015 EPS Guidance: $2.05-$2.20 ▪ Annual weather adjusted load growth of approximately 2% over 2014, excluding one large paper customer; ▪ Below average hydro conditions for the year; ▪ Normal thermal plant and wind operations for the remainder of the year; ▪ Depreciation and amortization ex
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