Portland General Electric Co · NYSE:POR
Portland General Electric — Q3 2017 Earnings Presentation
16 slides from Portland General Electric's earnings presentation, Oct 27, 2017
Slide 1: Portland General Electric Earnings Conference Call Third Quarter 2017
Portland General Electric Earnings Conference Call Third Quarter 2017 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of October 27, 2017 Except as expressly noted, the information in this presentation is current as of October 27, 2017 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 — and should not be relied upon a
Slide 3: Leadership Presenting Today
Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro CEO On Today's Call • Corporate strategy • Financial performance • Economy and customers • Entering the Energy Imbalance Market • 2016 Integrated Resource Plan (IRP) • 2018 General Rate Case • Financial Update • G
Slide 4: Third Quarter 2017 Earnings Results
Third Quarter 2017 Earnings Results NI in millions Q3 2016 Q3 2017 Net Income $34 $40 Diluted EPS $0.38 $0.44 2016 Diluted EPS $2.16 2017E Diluted EPS $2.20 - $2.35 4 Q1 Q1 Q2 Q3 Q4 Q2 Q3 Q4E $0.58 - $0.73
Slide 5: Accomplishments and Operational Update
Accomplishments and Operational Update New summer peak-demand record during August heatwave of 3,976 MW. Employees and systems performed exceptionally well. Generating plant availability of 96%. Top quartile customer satisfaction according to TQS Research, Inc. and Market Strategies International. 5
Slide 6: Economic Update
• Portland ranked No. 1 on FORBE'S Best Places for Business and Careers based on strong economic outlook and talent surge. • September unemployment rates in our service area remained low at 3.9%, and lower than the U.S. rate of 4.2%.1 • Average residential customer count increased approximately 1.3%
Slide 7: 2018 General Rate Case Settled
2018 General Rate Case Settled 7 • Final order from Commission expected later this year. • Supports investments we're making to build and operate a more flexible grid to support a sustainable, renewable and resilient energy future.
Slide 8: Joined Western Energy Imbalance Market
Joined Western Energy Imbalance Market 8 • As of October 1, we're buying and selling energy in five-minute intervals, which will help us better integrate more renewable energy into the grid. • A major accomplishment and important step forward in investing in a reliable and clean energy future for ou
Slide 9: 2016 Integrated Resource Plan
2016 Integrated Resource Plan • A flexible, balanced plan that reflects our commitment to a low-carbon future and in keeping with the Oregon Clean Electricity Plan • Process includes continuing dialog with OPUC staff and stakeholders • Productive bilateral negotiations continue for capacity need Are
Slide 10: 2018 General Rate Case Settled
2018 General Rate Case Settled Key Items: • A return on equity of 9.5% • A capital structure of 50% debt and 50% equity • Rate base of $4.5 billion • Increase in major storm accrual from $2.0 million to $2.6 million • Customer price increase of approx. 1.2%, effective January 1st 10 Timeline: • Nove
Slide 11: Carty Generating Station update
Carty Generating Station update 11 Carty Generating Station, our 440 MW natural gas baseload plant near Boardman, Ore. • Carty plant in-service, including AFDC, as of 9/30/2017: $637 million • Estimated timeframe to complete litigation: 2-4 years • Hearing scheduled for spring 2018 to determine whet
Slide 12: Third Quarter Earnings Bridge
Third Quarter Earnings Bridge 12 Favorable Load $ 0.08 Favorable Weather $ 0.06 Decoupling $ (0.02 ) Other $ 0.01 Earnings per diluted share
Slide 13: Capital Planning
Capital Planning Current Capital Outlook Investments include: • Upgrades and replacement of aging generation, transmission and distribution • Strengthening the power grid for earthquakes, cyber attacks and other potential threats • New customer information systems and technology tools (1) Does not i
Slide 14: Liquidity and Financing
Liquidity and Financing Total Liquidity as of 09/30/2017 (in millions) Credit Facilities $ 720 Commercial Paper — Letters of Credit $ (54 ) Cash $ 89 Available $ 755 Ratings S&P Moody's Senior Secured A- A1 Senior Unsecured BBB A3 Commercial Paper A-2 Prime-2 Outlook Positive Stable ($ in millions)
Slide 15: Guidance and Assumptions
Guidance and Assumptions 2017 EPS Guidance: $2.20 - $2.35 • Retail deliveries decline between zero and one percent, weather -adjusted; • Normal hydro conditions for the remainder of the year based on the current hydro forecast; • Wind generation for the remainder of the year based on 5 years of hist
Slide 16: Smart Grid Strategies
16 Smart Grid Strategies
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