Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (May 2020)
31 slides from Portland General Electric's investor presentation, May 2020
Slide 1: Investor Presentation
Investor Presentation Portland General Electric May 2020
Slide 2: Cautionary statements
Cautionary statements Information Current as of April 24, 2020 Except as expressly noted, the information in this presentation is current as of April 24, 2020 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 — and should not be relied upon as being
Slide 3: The company
The company
Slide 4: PGE at a glance
PGE at a glance Quick facts 3,800+ MWs of Generation • Vertically integrated electric utility encompassing generation, transmission and distribution Beaver Washington Port Westward 1 & 2 Tucannon River • 899,000 retail customers within a service area of 1.9 million OREGON WASHINGTON Wind Farm reside
Slide 5: COVID-19 update
COVID-19 update PGE operational Supporting our customers impacts to date • Oregon's governor issued stay-at- • Continued industrial load growth home order on March 23 driven by high tech • Manufacturing and construction • On a weather adjusted basis, allowed to continue statewide residential load in
Slide 6: Attractive, growing service area
Attractive, growing service area • Near-term economic 2,600 1.20 uncertainty driven by 2,400 COVID-19 pandemic 1.15 2,200 • Energy Deliveries Growth, While annual rates of 2,000 1.10 growth may fluctuate, we (4) 1,800 Indexed 2019=1 Energy Deliveries, MWa continue to project long 1,600 1.05 term loa
Slide 7: Constructive regulatory environment
Constructive regulatory environment Regulatory construct Regulatory body • Forward test year • Public Utility Commission of Oregon • Integrated Resource Planning (IRP) • Governor-appointed three member • Renewable Portfolio Standard (RPS) commission serving four-year terms • Proven track record of a
Slide 8: 2019 general rate case
2019 general rate case • Approved price increase: 0.5% • Return on equity (ROE): 9.5% • Cost of long-term debt: 5.1% Key Items • Capital structure: 50% debt, 50% equity • Rate base: $4.75 billion • Energy storage projects associated with renewables can be included in Requests future RAC filings for
Slide 9: Key strengths
Key strengths
Slide 10: Focus on customers
Focus on customers Top quartile Top quartile Trusted business No.1 renewable system customer partner & energy program reliability satisfaction environmental in the nation by among large champion enrollment for Edison Electric Institute electric and last decade Cogent Syndicated Utility Trusted elect
Slide 11: Diverse generation and customer base
Diverse generation and customer base Power sources as a percent of retail load Retail revenues by customer class 2020 AUT(1) 2019(2) Industrial 12% Hydro 18% Gas Wind & Solar Residential 51% 12% 52% Commercial 35% Coal 19% Total = 2,132 MWa Total retail revenues = $1.9B (1) Hydro, wind and solar inc
Slide 12: High-quality utility operations
High-quality utility operations Western Energy Imbalance • Highly-dependable generation fleet with eight-year Market average availability of 92%(1) • Strong power supply portfolio management and western EIM integration to enhance reliability and optimize resources • Transitioning away from coal-fire
Slide 13: Strong liquidity position for growth
Strong liquidity position for growth Available revolving credit facilities(1) Financings Q1 2020 Q2 2020 Q3 2020 Q4 2020 (dollars in millions) Long-Term Debt Priced $200 Issuing up Issuing up to Securities million to $135 $180 million Available million Revolving Cash + Credit + Credit Letters of Cas
Slide 14: Solid financial performance
Solid financial performance Net income, earnings per share, and ROE $2.50(2) EPS $2.37 $2.39 (diluted) $2.29(1) $2.16 Net income $2.20(2) (dollars in millions) $2.10(1) $212 $214 $193 $187(1) 2016 2017(1) 2018 2019 2020(2) Accounting ROE 8.4% 7.9% 8.6% 8.4% 7.5% - 8.5% Allowed ROE 9.6% 9.6% 9.5% 9.5
Slide 15: Proven dividend growth
Proven dividend growth $1.54 (6) Dividends paid per $1.50 (3) common share $1.41 $1.32 $1.24 Payout Ratio $1.16 70% Target $1.09 $1.11 $1.05 $1.07 60% Actual Payout Ratio 50%(4) 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 2020 Long-term dividend growth guidance of 5-7%(5) (1) Compound Annual Gro
Slide 16: Looking Forward
Looking Forward
Slide 17: Investing in the future
Investing in the future 80% goal Smart Grid Test Beds System upgrades Wheatridge Renewable Accelerating transportation Demand response Energy Facility electrification Meeting growth Green Tariff EV transit partnerships Access to capacity 17
Slide 18: Clean and reliable energy future
Clean and reliable energy future Renewable Portfolio Standard 50% 45% Key elements 35% • Transition PGE customers off coal-fired generation 27% 20% by 2030 • Production tax credits included in annual power cost filings since 2017 2020 2025 2030 2035 2040 • Pursue transportation electrification Renew
Slide 19: 2019 Integrated Resource Plan
2019 Integrated Resource Plan Q1 2020 2020 2024 July 2019 Q3-Q4 2019 January 2020 Acknowledgement received in Discussing capacity contract Targeting online dates in 2024 public IRP filed with meeting on March 16 Comments filed terms by Staff Memorandum with regional operators of Public meeting for n
Slide 20: Integrated Operations Center
Integrated Operations Center • A new 24/7 center for key operations: • Advances our integrated grid strategy • Significantly improves seismic resilience, cyber and physical security • Improves monitoring, control and optimization of distributed assets and our distribution system 20
Slide 21: Building a smarter, more resilient grid
Building a smarter, more resilient grid • New communication systems • Distributed automation systems • Data analytics • Integrate customers’ energy resources • Utility-scale battery storage 21
Slide 22: Forecasted capital expenditures
Forecasted capital expenditures Outlook $745 • Updating and replacing aging generation, $565 transmission and $500 $500 $500 distribution equipment • Building a smarter, more resilient grid 2020 2021 2022 2023 2024 Ongoing Capital Expenditures Integrated Operations Center Wheatridge Renewable Energy
Slide 23: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Environmental Social Governance Decarbonize Customers Experienced More than 80% reduction in GHG Ensuring universal access at Wide range of skills, backgrounds emissions by 2050 (using a 2010 affordable prices and leadership positions baseline) Diverse Comm
Slide 24: PGE investor relations team
PGE investor relations team Jardon Jaramillo Online Senior Director – Treasury, Investor investors.portlandgeneral.com Relations and Finance Operations (503) 464-7051 Jardon.Jaramillo@pgn.com Peter Davis Analyst, Investor Relations (503) 464-8586 Peter.Davis@pgn.com Portland General Electric Investo
Slide 25: Appendices
Portland General Electric Appendices
Slide 26: 2016 Integrated Resource Plan
2016 Integrated Resource Plan A flexible, balanced plan that reflects our commitment to a low-carbon future and achieves the Oregon Clean Electricity Plan Renewables • Procured renewables (100 MWa) to help ensure Oregon Clean Electricity Plan • Wheatridge Renewable Energy Facility: • Split ownership
Slide 27: 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
Slide 28: Renewable portfolio standard
Renewable portfolio standard Additional renewable resources • As of 2018, PGE had the following qualifying renewable resources: Type of Resource % of Retail Load Wind 9.9% Low-Impact Hydro 2.5% Solar & Other <1% Renewable Portfolio Standard: 2011 2015 2020 2025 2030 2035 2040 5% 15% 20% 27% 35% 45%
Slide 29: 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 nonresidential
Slide 30: Average retail price comparison
Average retail price comparison Residential and Commercial - Summer 2019 Residential Electric Service Prices: Commercial Electric Service Prices: 1,000 kWh monthly consumption 40 kW demand and 14,000 kWh monthly consumption (Prices in cents per kWh) (Prices in cents per kWh) PGE - Sch 7 (OR) 12.4 PG
Slide 31: Average retail price comparison
Average retail price comparison Small and Large Industrial - Summer 2019 Industrial Electric Service Prices Large Industrial Electric Service Prices 1,000 kW peak demand and 400,000 kWh monthly consumption 50,000 kW peak demand and 32,500,000 kWh monthly consumption (Prices in cents per kWh) (Prices
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