Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (March 2006)
29 slides from Portland General Electric's investor presentation, Mar 27, 2006
Slide 1: Portland General Electric Investor Presentation March 2006
Portland General Electric EXHIBIT 99.1 Investor Presentation March 2006
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements are statements of expectations, beliefs, plans, objectives, assumptio
Slide 3: Agenda
Agenda 1. Stock Issuance Plan William J. Valach, Director of Investor Relations 2. Company Overview Peggy Y. Fowler, CEO and President 3. Regulatory and Financial Overview James J. Piro, Executive Vice President of Finance, CFO and Treasurer 3
Slide 4: Stock Issuance Plan
Portland General Electric Stock Issuance Plan William J. Valach Director of Investor Relations 4
Slide 5: Stock Issuance Plan
Stock Issuance Plan Current PGE common stock will be cancelled and 62,500,000 shares of new stock will be issued Expected common stock issuance date: April 3, 2006 Currently anticipated that 35 - 45% of the new shares will be distributed to creditors holding allowed claims at the initial issuance Ba
Slide 6: Stock Issuance Plan (Cont'd)
Stock Issuance Plan (Cont’d) Disputed Claims Reserve (DCR) Shares issued to the DCR will be released over time to Enron creditors holding allowed claims in accordance with the Chapter 11 Plan – Share releases from the DCR expected every six months in April and October (1) – Shares may also be releas
Slide 7: Company Overview
Portland General Electric Company Overview Peggy Y. Fowler CEO and President 7
Slide 8: Mission
Mission PGE is a company customers depend on to provide electric service in a safe and reliable manner, with excellent customer service at a reasonable price. 8
Slide 9: Strategy for Investment Success
Strategy for Investment Success Portland General is a well-capitalized, stable company with on-going growth opportunities Stability Growth Vertically-integrated, Necessary Strong loadand andprudent regulated business regulated growth customer rate base Strong balance sheet / Necessary investment and
Slide 10: Company Overview
Company Overview 780,000 retail accounts WA Service territory population 1.5 million, 43% of state’s population 52 cities served – Portland and Salem are OR the largest Net Plant-in-Service – $2.09 billion – Generation $549 million – Distribution $973 million – Transmission $149 million – General $1
Slide 11: Portland General Electric Company
Portland General Electric Company (32) Peggy Fowler CEO and President (31) (33) (28) (27) (32) (18) Jim Piro Doug Nichols Steve Quennoz Arleen Barnett Stephen Hawke Carol Dillin Executive Vice Vice President Vice President Vice President Vice President Vice President President General Counsel Genera
Slide 12: Customer and Revenue Summary
Customer and Revenue Summary Revenue by Segment Retail Revenue and Load Growth Industrial Residential 1.9% annualized customer growth from 14% 1995-2005, with 1.7% customer growth in 2005 46% 40% 0.9% normalized annual load growth over the past 10 years, with 0.9% growth in 2005 Commercial Residenti
Slide 13: Industrial Customer Base
Industrial Customer Base Industrial Load by Sector (1) (12 months ending December 31, 2005) Manufacturing 7% Retail 12% Services 13% Metals 7% Technology 33% Paper 28% No single customer accounts for more than 4% of retail revenues (1) Data based on NAICS classifications. 13
Slide 14: Operational Excellence
Operational Excellence Portland General has consistently achieved strong operating metrics, as shown in the table below 2002 2003 2004 2005 2006 Goals Net Income ($ in millions) $66 $59 $92 $64 At Fault Complaints 26 30 24 16 ≤ 55 SAIDI (outage minutes) 73 86 85 86 < 90 SAIFI (outage frequency) 0.65
Slide 15: Power Supply Strategy
Power Supply Strategy Manage power supply operations to: – Capitalize on PGE’s assets and position in the marketplace – Meet load in most economic fashion to lower costs to customers Capture the benefits of the unique optionality of PGE’s assets and their positioning in real-time markets 400 MW Port
Slide 16: Power Supply Portfolio
Power Supply Portfolio 2007E Generation Capacity Power Sources as a Percent of Retail MWh Load Physical % of Total Capacity Capacity 2005 Actual Hydro Deschutes River Projects 298 MW 10% Clackamas/Willamette River Projects 211 8 Gas/Oil Hydro Contracts 492 17 Purchased Power 8% Natural Gas/Oil 1,001
Slide 17: Regulatory Strategy
Regulatory Strategy Oregon Public Utility Commission Three member governor-appointed Commission with four-year terms Rates set based on a forward test year Regulatory Research Associates describes the Oregon regulatory environment as constructive PGE’s Approach to Regulation Communicate constantly –
Slide 18: Focus Goals
Focus Goals High Customer Value – We will increase customers’ experience of value received from PGE Reliable, Reasonably-Priced Supply – We will design and maintain an energy resource portfolio with cost-effective resources that provide a reliable supply of electricity to customers at prices that ar
Slide 19: Regulatory and Financial Overview
Portland General Electric Regulatory and Financial Overview James J. Piro Executive Vice President of Finance, CFO and Treasurer 19
Slide 20: 2007 Rate Case
2007 Rate Case General rate case filed in March 2006 based on a 2007 test year – Filed rate base of $2,027 million (including Port Westward) – 10.75% requested ROE based on a capital structure of 56% equity Proposed revenue increase of 8.9% driven primarily by: Driver / Cost Revenue Increase (%) Pow
Slide 21: 2007 Rate Case (Cont'd)
2007 Rate Case (Cont’d) Proposed Power Cost Recovery Mechanisms: Net Variable Power Costs (“NVPC”) Initially Set by General Rate Case Annual Variance Tariff 90% customer / 10% Company sharing between forecast and actual NVPC Load variations normalized out of the calculation PGE shares with customers
Slide 22: Other Regulatory and Legal Considerations
Other Regulatory and Legal Considerations Oregon Senate Bill 408: Beginning January 1, 2006 Designed to solve the issue of taxes in rates not being paid to the proper taxing authorities Calls for annual rate adjustment if difference between taxes authorized to be collected by the utility and taxes p
Slide 23: Financial Highlights
Financial Highlights Strong balance sheet Projected growth in earnings and cash flow Commitment to maintaining investment grade ratings Current Ratings Sr. Secured Sr. Unsecured Outlook S&P (1) BBB+ BBB Negative Moody's Baa1 Baa2 Stable Fitch A- BBB+ Stable Strong commercial banking relationships pr
Slide 24: Infrastructure and Resource Investment Opportunities
Infrastructure and Resource Investment Opportunities Attractive growth opportunities through capital investment in core utility assets ($ in Millions) Project Investment Timing Approved and Under Construction 2005 – 2007 Port Westward (CCCT) $275 - $295 (Online: Q1 2007) Hydro Relicensing $180 - $22
Slide 25: Rate Base and Earnings Growth Supported by Strong Balance Sheet
Rate Base and Earnings Growth Supported by Strong Balance Sheet Historical HistoricalNet NetIncome Income Debt/Capitalization Debt/Capitalization ($ mm) $92 60% 100 S&P “BBB”: 50% - 60% 55% 80 50% $64 50% $59 60 45% 45% 45% 42% 43% 40 40% 20 35% 0 30% (1) (1) 2003 2004 2005 2003 2004 2005 2006E 2007
Slide 26: Earnings Guidance
Earnings Guidance 2006 earnings per share guidance of $0.80 – $0.90 – Includes impact of Boardman outage and no regulatory action on the deferral request – Does not include potential impact of Senate Bill 408 2007 earnings per share guidance of $1.70 - $1.80 Earnings expected to grow 4 - 5% per year
Slide 27: Expected Dividend Policy
Expected Dividend Policy Initial annualized dividend of $0.90 per share, payable quarterly, pending approval by Board of Directors in May First dividend expected to be paid for the second quarter of 2006 – Declared in May – Record date in June – Payment date in July Over the long term, we expect a t
Slide 28: Compelling Investment Opportunity
Compelling Investment Opportunity Strong Cash Flows – Vertically-integrated, regulated utility – Investment grade credit ratings – Competitive dividend + Regulated Growth Opportunities – Earnings growth driven by significant infrastructure investment, especially new generation resources – Attractive
Slide 29: Investor Relations Contact Information
Investor Relations Contact Information William J. Valach Director of Investor Relations (503) 464-7395 William.Valach@pgn.com Portland General Electric Company 121 SW Salmon Street Suite 1-WTC-0403 Portland, Oregon 97204 www.PortlandGeneral.com 29
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