Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (June 2024)
36 slides from Portland General Electric's investor presentation, Jun 17, 2024
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC June 17, 2024 Exhibit 99.1
Slide 2: Cautionary statement
Cautionary statement 2 Investor Relations Contacts Information Current as of April 26, 2024 Except as expressly noted, the information in this presentation is current as of April 26, 2024 – the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 - and shoul
Slide 3: The Company
The Company
Slide 4: PGE at a glance
4 PGE at a glance 3,500+ MWs of Generation Quick facts • Vertically integrated energy company that generates, transmits and distributes electricity • Approximately 934,000 retail customers within a service area of approximately 1.9 million residents(1) • Roughly half of Oregon’s population lives wit
Slide 5: Investment highlights
• Urban service territory with strong growth in semiconductor and data center demand • Growing number of customer connects and 2% long-term load growth, through 2027 • Adopting 100% clean energy by 2040 framework • Entered into agreements for 475 MW of battery storage and 500 MW of hydro contracts;
Slide 6: Growing service territory and economy
• Growing core urban service area with strong population growth supporting services (government, education, restaurants, healthcare, and other services) • I-5 corridor and port access provide opportunity for transportation and warehousing and market access for traditional manufacturing (wood product
Slide 7: Robust demand growth led by industrial class
7 Robust demand growth led by industrial class (1) As of December 31, 2023 (2) Includes energy deliveries to commercial and industrial customers that purchase their energy from ESSs (3) Oregon HB 2009 and Oregon CHIPS Act (SB 4) (4) Cushman and Wakefield 2024 Global Data Center Market Comparison 37%
Slide 8: Capital expenditures forecast
Note: Dollar values in millions. Capital expenditures exclude allowance for funds used during construction. These are projections based on assumptions of future investment. Actual amounts expended will depend on various factors and may differ materially from the amounts reflected in this capital exp
Slide 9: Advancing toward a clean energy future
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 • Clearwater Wind Development placed in service in Janua
Slide 10: Resource planning and procurement
10 Resource planning and procurement 2023 RFP Timeline May 2023 Draft RFP submitted to OPUC for approval February 2024 Final RFP issuance April 2024 Bid submissions due Q3 2024* Submit request for acknowledgement of final shortlist to OPUC and shortlist publication Q3/Q4 2024* Execution of
Slide 11: Rate base growth
• PGE’s five-year base capital expenditure forecast of $6.2 billion drives 8% average rate base growth, from 2022 base year • Illustrative incremental RFP opportunities(2) potentially increase average rate base growth to 10%, from 2022 base year Note: Amounts presented are for illustrative purposes
Slide 12: 2025 General rate case
2025 General rate case Rate Case Key Terms – UE 435 Rate Base $7.5 billion Rate Base Increase $878 million, 13% ROE 9.75% Capital Structure 50/50 Cost of Debt 4.628% Cost of Capital 7.189% Revenue Requirement Increase $225 million, including $37 million for power costs Other Key Terms • Recovery of
Slide 13: Key Strengths
Key Strengths
Slide 14: Operational excellence
0.29 2022: 0.74 14 Operational excellence Note: All data is as of December 31, 2023 (1) Excluding major event days. Benchmarked against the 2022 Institute of Electrical and Electronics Engineers (IEEE) Reliability survey System Average Interruption Duration Index (SAIDI)(1) 2nd Quartile 2022: 2nd Qu
Slide 15: Customer focus
Customer focus PGE PROGRAMS Enrolled over 69,000(3) households in our Income Qualified Bill Discount Program, 80% program satisfaction rate of households surveyed CUSTOMER SATISFACTION Ranked in the top decile nationwide for Residential Customer Delight according to Escalent’s National Energy Utilit
Slide 16: Clean energy and transmission investment
Clean energy and transmission investment Clearwater Wind Facility • 311 MW of emissions-free generation for PGE customers • PGE owns 208 MW of the project, a $424 million investment • PGE entered into a PPA with a subsidiary of NextEra Energy Resources for the remaining 103 MW • This facility is eli
Slide 17: Long-term financial performance
1.72 2.72 2.60 2.33 2020 2021 2022 2023 2024E $2.75(1) (4) $1.72(1) $2.33(3) $2.72 17 Accounting ROE(6) 6.0% 9.2% 8.5% 7.5% 8.6% - 9.2%(5)(6)(7) Allowed ROE 9.5% 9.5% 9.5% 9.5% 9.5% GAAP EPS (diluted) Long-term 5% to 7%(4) earnings growth from 2022 adjusted base year Long-term financial performance
Slide 18: Proven dividend growth
$1.18 $1.26 $1.34 $1.43 $1.52 $1.59 $1.70 $1.79 $1.88 $1.98 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Actual Payout Ratio Long-term dividend growth guidance of 5-7%(4) 70% 60% Dividends declared per common share(3) Targ et P ayo u t R atio (4) 18 Proven dividend growth (5) (1) Compound Annu
Slide 19: Liquidity and financing
Ratings S&P Moody’s Senior Secured A A1 Senior Unsecured BBB+ A3 Commercial Paper A-2 P-2 Outlook Stable Stable Credit Facilities $750 Letters of Credit $189 Total Liquidity: $1,115 million as of March 31, 2024 (dollars in millions) Cash $176 Liquidity and financing Actual and expected 2024 debt fin
Slide 20: Environmental, Social and Governance
Environmental, Social and Governance
Slide 21: Environmental, social, & governance highlights
Environmental, social, & governance highlights GHG Emissions Targets In 2023, PGE’s total system load was comprised of 35% specified, non-emitting energy sources. PGE continued to make steady progress, reducing emissions from unspecified sources(1), procuring clean energy resources and investing in
Slide 22: Clean energy commitment and emissions goals
PGE’s goals go above and beyond required emission reduction targets and PGE was the first utility in the U.S. to sign The Climate Pledge • Commitment to reach net-zero carbon emissions by 2040, which will require reducing Scope 1, 2 and 3 emissions PGE’s clean energy and emissions goals have always
Slide 23: Green Financing Framework
our Green Financing Framework under which we issue green financing instruments to finance or refinance sustainable projects Adopted $100M in green bonds, which were funded in 2023, supporting the development of Constable and Seaside battery projects Issued $500M in green bonds to support the Seaside
Slide 24: Community and employee engagement
24 Community and employee engagement $197M spent with diverse suppliers in 2023, 18% of total spend for 2023 20,000+ volunteer hours completed by employees and retirees 67% employee participation in charitable giving and/or volunteering $4.6M in total charitable giving Established Community Benefits
Slide 25: Board of directors
Name Age Director Since Industry/Experience Diversity Committee Membership(1) Other Public Boards Dawn Farrell Independent 64 2022 Utilities/Energy White/Woman • Finance • Governance 1 Marie Oh Huber Independent 62 2019 Law/Technology/Customer Experience Asian/Woman • Compensation • Governance 0 Kat
Slide 26: Diversity, equity, and inclusion
8% 8% 73% Workforce Racial/Ethnic Diversity(1) Two or more races African-American or Black Native Hawaiian or other Pacific Islander American Indian or Alaska Native Not declared Asian Hispanic or Latino White Diversity, equity, and inclusion Committed to DEI across our business • Partners and suppl
Slide 27: Appendix
Appendix
Slide 28: Wildfire Mitigation Plan
WMP Annually, PGE files a Wildfire Mitigation Plan with the OPUC which summarizes our approach to addressing wildfire risk. The 2024 Wildfire Mitigation Plan (Docket UM 2208) was submitted in December 2023 PGE’s Wildfire Automatic Adjustment Clause (AAC) is designed to enable timely recovery of wild
Slide 29: Wildfire risk zones and mitigation
High Fire Risk Zones (brightly shaded) within PGE’s service territory (outlined) 1) Per PGE’s 2024 Wildfire Mitigation Plan. Amount calculated using the midpoint of the $43 - $49.2 forecasted capital costs Public Safety Power Shutoff 2 In response to extreme conditions, PGE has successfully implemen
Slide 30: Public safety power shutoff (PSPS)
Temporarily turning off power during extreme weather conditions to reduce wildfire risk Public safety power shutoff (PSPS) 30
Slide 31: Oregon regulatory and policy framework
Oregon Constructive regulatory / policy framework Federal • Oregon legislation requires 100% clean energy by 2040 • Oregon Public Utility Commission • Governor-appointed 3-member commission with staggered 4-year terms • Commission has consistently approved investments in renewables, going back to Bi
Slide 32: Annual power cost update tariff
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 power costs prudently incu
Slide 33: Average retail price comparison
17.5 15.8 0.0 5.0 10.0 15.0 20.0 EEI U.S. Average PGE - Sch. 7 Residential Electric Service Prices: 1,000 kWh monthly consumption (Prices in cents per kWh) Commercial Electric Service Prices: 40 kW demand and 14,000 kWh monthly consumption (Prices in cents per kWh) Note: EEI U.S. Average is based on
Slide 34: 2024 Earnings Sensitivities
2024 Earnings Sensitivities 34 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
Slide 35: Non-GAAP 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 nature, or both. PGE believe
Slide 36: Non-GAAP Earnings Reconciliation
Non-GAAP Earnings Reconciliation for the year ended December 31, 2022 (Dollars in millions, except EPS) Net Income Diluted EPS GAAP as reported for the year ended December 31, 2022 $233 $2.60 Exclusion of 2020 Wildfire and COVID deferral reversal 17 0.19 Tax effect (1) (5) (0.05) Non-GAAP as reporte
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