Portland General Electric Co · NYSE:POR
Portland General Electric — Q3 2016 Earnings Presentation
14 slides from Portland General Electric's earnings presentation, Oct 28, 2016
Slide 1: Earnings Conference Call Third Quarter 2016
Exhibit 99.2 Earnings Conference Call Third Quarter 2016
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of October 28, 2016 Except as expressly noted, the information in this presentation is current as of October 28, 2016 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 — and should not be relied upon a
Slide 3: Leadership Presenting / On Today's Call
Leadership Presenting Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO 3 On Today’s Call ▪ Financial performance ▪ Operational update ▪ Economy and customers ▪ Carty update ▪ 2016 Integrated Resource Plan ▪ Capital expenditure forecast ▪ Financial update ▪ Earnings guidance
Slide 4: Third Quarter 2016 Earnings Results
NI in millions Q3 2015 Q3 2016 Net Income $36 $34 Diluted EPS $0.40 $0.38 2015 EPS $2.04 2016E EPS $2.05 - $2.20 Q2 Q3 Third Quarter 2016 Earnings Results 4 Q4E $0.57 - $0.72 Q1 Q2 Q3 Q4 Q1
Slide 5: Accomplishments and Operational Update
Accomplishments and Operational Update 5
Slide 6: Economic Update
Economic Update 6 (1) Oregon Office of Economic Analysis (2) State of Oregon Employment Department (3) Oregon Office of Economic Analysis (4) Net of approximately 1.5% of energy efficiency, excluding one large paper customer and adjusting for Leap Year ▪ 50 consecutive months of job growth in Oregon
Slide 7: New Generation: Baseload Resource
New Generation: Baseload Resource 7 Carty Generating Station, our 440 MW natural gas baseload plant near Boardman, OR Capital costs, including AFDC, approved in 2016 GRC: $514M Total estimated cost, including AFDC, for completion(1): $640-$660M(1) Carty plant in service as of 9/30/2016: $615M Estima
Slide 8: 2016 Integrated Resource Plan
2016 Integrated Resource Plan ▪ Energy efficiency and demand side actions ▪ Investment/acquisition of renewables to meet Oregon Clean Electricity Plan: IRP will position PGE to comply with 27% requirement by 2025 ▪ Filling up to 850 MW capacity deficit to ensure reliability ▪ 375-550 MW long-term an
Slide 9: Estimated Capital Expenditures
Estimated Capital Expenditures 9 (1) Consists of board-approved ongoing CapEx and hydro relicensing per the Third Quarter Form 10-Q filed on October 28, 2016 Note: Amounts exclude AFDC debt and equity (2) Total estimated cost does not consider any amounts that may be received from sureties under the
Slide 10: Third Quarter 2016 Income Statement Bridge
Third Quarter 2016 Income Statement Bridge 10 9/30/2015 9/30/2016 Price Increase $ 15 Decoupling $ 9 Volume Decrease $ (34 ) Other $ (1 ) Retail Revenue Wholesale Revenue Power Costs O&M D&A Income Taxes Gross Margin Variance: $9 Other Taxes $ in millions
Slide 11: Third Quarter 2016 Drivers Bridge
Carty Earnings $ 0.02 Carty Overage $ (0.01 ) Carty Legal $ (0.02 ) 9/30/2015 9/30/2016 Carty Load Changes Non- Qualified Benefit Trust Other Third Quarter 2016 Drivers Bridge 11
Slide 12: Liquidity and Financing
Liquidity and Financing 12 2016 Financing Activity Q1 2016 Q2 2016 Q3 2016 Q4 2016 First Mortgage Bonds $140 million issued $133 million redeemed Unsecured Loan Agreement $125 million borrowed $25 million planned Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Li
Slide 13: Guidance
▪ Flat retail load growth for the full year, weather adjusted and excluding one large paper company; ▪ Average hydro conditions for the remainder of the year; ▪ Wind generation for the remainder of the year based on 5 years of historic levels or forecast studies when historical data is not available
Slide 14: 2016 Key Initiatives
2016 Key Initiatives 1. Pursue legal actions against the sureties and Abeinsa 2. Complete and file the 2016 Integrated Resource Plan 3. Maintain high level of operational excellence 14
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