Portland General Electric Co · NYSE:POR
Portland General Electric — FY2013 Earnings Presentation
17 slides from Portland General Electric's earnings presentation, Feb 14, 2014
Slide 1: Earnings Conference Call: Fourth Quarter and Full Year 2013
Exhibit 99.2 Earnings Conference Call Fourth Quarter and Full Year 2013 1
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of February 14, 2014 Except as expressly noted, the information in this presentation is current as of February 14, 2014 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2013 — and should not be relied upon as bei
Slide 3: Leadership Presenting Today
Leadership Presenting Today On Today’s Call Jim Piro Growth Initiatives President & CEO Regulatory Update Operational Update Economy and Customers Jim Lobdell Financial Update Senior VP of Finance, CFO & Treasurer 2014 Outlook 3
Slide 4: Q4 and Full Year 2013 Earnings Results
Q4 and Full Year 2013 Earnings Results NI in millions Q4 2012 Q4 2013 2012 Actuals 2013 Actuals Net Income $28 $47 $141 $105 EPS (diluted) $0.38 $0.59 $1.87 $1.35 Q1 Q1 Q4 $0.65 Q3 $0.65 Q4 Q3 $0.59 Q2 $0.50 $0.34 $0.38 $0.40 Q2 ($0.29) 2012 EPS 2013 EPS $1.87 $1.35 4
Slide 5: New Generation: Capacity Resource
New Generation: Capacity Resource Port Westward Unit 2 Project Location Clatskanie, OR Capacity / Fuel 220 MW Natural Gas 12 18-MW Gas Wärtsilä Technology Reciprocating Engines EPC Contractor Black & Veatch Estimated In-Service Date Q1 2015 Customer Price Impact ~3% PW2 CapEx: $300M (in millions) $1
Slide 6: New Generation: Renewable Resource
New Generation: Renewable Resource Tucannon River Wind Farm Project Location Columbia County, WA Capacity / Fuel 267 MW Wind Project Technology 116 2.3MW Siemens Turbines EPC Contractor RES Americas Estimated In-Service Date First half of 2015 Customer Price Impact ~3% Tucannon River CapEx: $500M (i
Slide 7: New Generation: Baseload Resource
New Generation: Baseload Resource Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440MW Natural Gas Plant Technology Mitsubishi Turbine EPC Contractor Abener/Abiensa Estimated In-Service Date Mid-2016 Customer Price Impact ~4-6% Carty CapEx: $450M (in millions) $155 $135 $115
Slide 8: Expected Rate Base and Capital Expenditures
Expected Rate Base and Capital Expenditures $1.4B of Expected Increase in Rate Base $4.5B 10% CAGR $3.1B 2013 2012 2017 2017 Expected Capital Expenditures (in millions) 2013 2014E 2015E 2016E 2017E 2018E TOTAL Base Capital Spending(1) $335 $365 $325 $295 $255 $245 $1,820 Port Westward Unit 2 $155 $1
Slide 9: General Rate Case: 2015 Test Year
General Rate Case: 2015 Test Year Filed on February 13, 2014 Requested revenue increase: $81 million Return on Equity (ROE): 10% Cost of Capital: 50% debt, 50% equity Rate base: $3.9 billion Drivers of 2015 GRC in millions 1. Revenue decrease effective Jan. 1, 2015 Base business cost increases $12 C
Slide 10: Operational Update
Operational Update Top Decile residential customer satisfaction Top Decile general business customer satisfaction Top Decile key customer customer satisfaction improved safety enhanced customer service greater productivity improved efficiency 10
Slide 11: Economic Outlook
Economic Outlook Economic Outlook Oregon ranked #1 in the U.S. for in-migration in 2013 Unemployment rate of 6.1% in core operating area Employment growth in construction, health services, hospitality Full-year 2013 weather-adjusted deliveries comparable to prior period Weather-normalized load growt
Slide 12: Fourth Quarter Financial Results
Fourth Quarter Financial Results NI in millions Q4 2012 Q4 2013 Net Income $28 $47 Diluted EPS $0.38 $0.59 Key Quarter over Quarter Drivers ($ millions) Total retail revenues $21 AFDC primarily due to generation projects $5 Taxes related to PTC changes and 2012 change in deferred taxes $10 (1) Net V
Slide 13: Full Year Financial Results
Full Year Financial Results NI in millions 2012 2013 Net Income $141 $105 Diluted EPS $1.87 $1.35 (1) Non-GAAP Adjusted Operating EPS $1.84 Key Year over Year Drivers ($ millions) Customer billing refund $(9) Incremental replacement power costs for plant outages $(17) Operations and maintenance expe
Slide 14: Total Revenues and Power Costs
Total Revenues and Power Costs in millions Q4 2012 Q4 2013 FY 2012 FY 2013 Total Revenues $463 $499 $1,805 $1,810 Power Costs $193 $219 $726 $757 2013 Sources of Power Coal 19% Natural Gas 43% Hydro 16% Renewable Purchased 6% 16% Power 14
Slide 15: Operating Expenses
Operating Expenses in millions Q4 Q4 FY FY 2012 2013 2012 2013 Production & Distribution $58 $56 $211 $225 Administrative & General $56 $61 $216 $219 Total O&M $114 $117 $427 $444 Cascade Crossing Expense -- -- -- $52 Depreciation & Amortization $60 $62 $248 $248 Interest Expense, Net $26 $26 $108 $
Slide 16: Liquidity and Financing
Liquidity and Financing as of 12/31/13 Senior Senior Total Liquidity (in millions) Outlook Secured Unsecured Credit Facilities $760 S&P A- BBB Stable Commercial Paper -- Moody’s A1 A3 Stable Letters of Credit $(74) Cash $107 Available $793 2013 Long-Term Debt Issuances ($ in millions) Pricing Date A
Slide 17: 2014 Guidance
2014 Guidance 2014 EPS Guidance: $2.00 to $2.15 per share Retail deliveries and revenues in line with levels set in the 2014 GRC Average hydro conditions Wind generation based on historical actuals Normal thermal plant operations Colstrip Unit 4 replacement power costs of $1.5 million O&M expense be
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