Puget Energy — Debt Investor Presentation (June 2021)
21 slides from Puget Energy's debt investor presentation, June 2021
Slide 1: Puget Energy, Inc. Fixed Income Investor Presentation
Puget Energy, Inc. Fixed Income Investor Presentation June 2021
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of March 31, 2021 (except as expressly noted) Except as expressly noted, the information in this presentation is current as of March 31, 2021– the date on which PUGET ENERGY, INC. (“PE”) filed its Quarterly Report on Form 10-Q for the quarter ended March 3
Slide 3: Puget Energy Team Introduction
Puget Energy Team Introduction Dan Doyle Adrian Rodriguez Senior Vice President and Senior Vice President Chief Financial Officer Regulatory and Strategy Dan.Doyle@pse.com Adrian.Rodriguez@pse.com (425) 462-3193 (425) 456-2285 3
Slide 4: Company Highlights
Company Highlights Fully Regulated Puget Sound Energy (PSE) conducts substantially all of PE’s business operations and is a 100% regulated electric and gas Utility utility based in Bellevue, WA Operations Largest independent utility in the Pacific Northwest, with ~2 million customers and $8.5 bi
Slide 5: Since the 2020 GRC order, PSE has secured improvements to cash flow
Since the General Rate Case (GRC) outcome in 2020 (“2020 GRC order”), PSE has secured substantial improvements to cash flow via additional rate recovery and legislation that will reduce regulatory lag for years to come, and has tightly managed internal expenses 1. Since the 2020 GRC order, PSE has p
Slide 6: PSE has secured 95% of total revenue requested since the 2020 GRC order
Since the 2020 GRC order, PSE has successfully secured a combined total of 95% of total revenue requested. These recent approvals indicate our relationship with the regulators remains strong and they understand the cost pressures PSE is facing following the 2020 GRC order and COVID-19 (A) (B) (C) (D
Slide 7: Washington passed SB 5295 establishing multi-year rate plans
In an historic legislative session, the Washington house and senate overwhelmingly passed SB 5295. This bill will establish multi-year rate plans, performance-based rate making, and reduce regulatory lag • Beginning January 1, 2022, utilities must file a multi-year rate plan (MYRP) between two and f
Slide 8: S&P and Fitch removed negative outlooks from PE/PSE credit profile
As a result of the recent revenue increases approved by the WUTC, the passage of regulatory reform via SB 5295, and internal financial management, S&P and Fitch both removed the negative outlooks from PE/PSE’s credit profile S&P research update (5/27/21): Revised PE/PSE outlook from negative to stab
Slide 9: PSE goal to be a Beyond Net Zero Carbon company by 2045
Looking to the future, PSE has set an aspirational goal to be a Beyond Net Zero Carbon company by 2045 • Reducing emissions from PSE electric and gas operations and electric supply to net zero by 2030 o Our commitment to decarbonizing utility operations and successfully transforming PSE’s energy sup
Slide 10: Integrated resource plans provide framework for decarbonization goals
Recently-filed electric and natural gas integrated resource plans (IRP) provide the framework to fulfill the company and state decarbonization goals Electric IRP: PSE successfully filed its 2021 IRP with a plan fully compliant with reaching the goals of the Clean Energy Transformation Act (CETA). It
Slide 11: Exiting coal, LNG marine fuel, and renewable generation and storage
Exiting coal, providing LNG as a marine fuel, and developing renewable generation and storage are key elements in the effort to decarbonize CETA mandates that coal be removed from PSE rates by the end of 2025: • Colstrip Units 1 & 2 were retired effective December 31, 2019 • PSE is working to enable
Slide 12: Multi-year rate plans critical to mitigate regulatory lag
The multi-year rate plans made possible from SB 5295 will be critical to mitigate regulatory lag inherent in the present regulatory regime and should enable timely investment in PSE’s goals to decarbonize its electric and natural gas business PSE - Authorized and Actual ROE Between 2010 and 2017, PS
Slide 13: Strong liquidity position and manageable debt maturity profile
PE has a strong liquidity position as of March 31, 2021, has minimally drawn on its revolving credit facility and has a manageable debt maturity profile Liquidity Profile $M’s $1,600 $1,386 -$24 -$191 $800 $777 $1,577 $1,386 $800 $609 2017-2023 Facilities Facilities Drawn & Available Liquidity Facil
Slide 14: Appendix
Appendix 14
Slide 15: Company Overview: PSE Service Territory
Company Overview PSE Service Territory Washington state’s oldest local energy company 100% regulated, engaged in business of electric generation, transmission, distribution and natural gas distribution 6,000 square(1)mile service area in Puget Sound region of Western Washington - 1.19 million
Slide 16: Company Overview: Customer Base
Company Overview Customer Base PSE primarily serves residential and commercial customers with limited industrial exposure 2020 Electric Retail Revenue by Customer Class(1) 2020 Gas Retail Revenue by Customer Class(1) Total = $2.1B Total = $1.0B Industrial Other Industrial Other 5% 2% 2% 2% Commerc
Slide 17: Company Overview: Diverse Power Generation Portfolio
Company Overview Diverse Power Generation Portfolio 2020 Peak Power Resource Capacity (MW) (1) PSE is committed to providing safe and reliable electric service to Purchased Resources: customers in its territory while Wind, Columbia River 14.9% 16.8% Purchased Other Hydro 2.4% being a steward of cl
Slide 18: Company Overview: Ownership Structure
Company Overview Ownership Structure 1 Board Seats 2 Board Seats 3 Board Seats 2 Board Seats 1 Board Seat 13.6% 20.9% 31.6% 23.9% 10.0% Alberta British Columbia Canada Pension Ontario Municipal Investment Investment Plan Investment Employees PGGM Management Co. Management Co. Board Retirement (AIMCo
Slide 19: Capital investment in strategic projects and reliability
Puget’s capital investment in strategic projects and reliability are the foundation of our transition to a carbon free future Tacoma Liquefied Natural Gas Project ‒ 43% regulated at PSE; 57% unregulated at Puget LNG (50% TOTE, 50% open) ‒ LNG (regulated) business online by Q2 2021 Energize Easts
Slide 20: ESG
ESG PSE has developed an bi-annual report to memorialize the ESG work already underway The report covers: • GHG policy and emissions reporting • Voluntary renewable energy programs • Wind power • Energy efficiency Environmental • Hydro power • Cleaner transportation • Solar power • Environmental com
Slide 21: Continual focus on Cyber Security Protections and Awareness
Continual focus on Cyber Security Protections and Awareness Security and Compliance Programs • External Assessment: Engage a 3rd party to conduct an cyber assessment every 12-18 months against National Institute of Standards and Technology Cyber Security Framework (NIST CSF) to measure progress and
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