Portland General Electric Co · NYSE:POR
Portland General Electric — Q2 2016 Earnings Presentation
16 slides from Portland General Electric's earnings presentation, Aug 3, 2016
Slide 1: Earnings Conference Call Second Quarter 2016
Earnings Conference Call Second Quarter 2016 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of August 3, 2016 Except as expressly noted, the information in this presentation is current as of August 3, 2016 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 — and should not be relied upon as being c
Slide 3: Leadership Presenting Today / On Today's Call
Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO 3 On Today’s Call ▪ Carty update ▪ Financial performance ▪ Operational update ▪ Economy and customers ▪ 2016 Integrated Resource Plan (IRP) ▪ Accelerated renewable RFP ▪ Capital expenditure forecas
Slide 4: New Generation: Baseload Resource
New Generation: Baseload Resource 4 Carty Generating Station, a 440 MW natural gas baseload plant near Boardman, OR Capital costs, including AFDC, approved in 2016 GRC: $514M Total estimated cost, including AFDC, for completion(1): $640-$660M(1) Carty CWIP balance as of 6/30/2016: $587M(2) (1) Total
Slide 5: Second Quarter 2016 Earnings Results
NI in millions Q2 2015 Q2 2016 Net Income $35 $37 Diluted EPS $0.44 $0.42 2015 EPS $2.04 2016E EPS $2.05 - $2.20 Q2 Q3 Second Quarter 2016 Earnings Results 5 Q3-Q4: $0.95 - $1.10 Q1 Q2 Q3 Q4 Q1
Slide 6: Accomplishments and Operational Update
Accomplishments and Operational Update 6
Slide 7: Economic Update
Economic Update 7 (1) State of Oregon Employment Department (2) U.S. Bureau of Economic Analysis (3) Population Research Center at Portland State University (4) Net of approximately 1.5% of energy efficiency, excluding one large paper customer and adjusting for Leap Year • PGE's service area unemplo
Slide 8: 2016 Integrated Resource Plan
2016 Integrated Resource Plan Areas of Focus ▪ Energy efficiency and demand side actions ▪ 2020 Renewable Portfolio Standard requirement of 20 percent and impacts of the Oregon Clean Electricity Plan ▪ Boardman replacement ▪ Capacity needs to meet customers' winter and summer peaking needs 8 Standar
Slide 9: Request For Proposal for Renewables
Request For Proposal for Renewables 9 Results of OPUC hearing ▪ At a special hearing on July 29, 2016, the OPUC adopted Staff's recommendation and took no action on PGE's request to issue an accelerated RFP. ▪ PGE is conducting further process and analysis on the accelerated renewables RFP and will
Slide 10: Estimated Capital Expenditures
Estimated Capital Expenditures 10 (1) Consists of board-approved ongoing CapEx and hydro relicensing per the Second Quarter Form 10-Q filed on August 3, 2016 Note: Amounts exclude AFDC debt and equity (2) Total estimated cost does not consider any amounts that may be received from sureties under the
Slide 11: Second Quarter 2016 Financial Results
Second Quarter 2016 Financial Results NI in millions Q2 2015 Q2 2016 Net Income $35 $37 Diluted EPS $0.44 $0.42 Key Quarter over Quarter EPS Drivers Lower retail load due to weather in Q2 2016 compared to Q2 2015 More favorable power supply operations in Q2 2016 compared to Q2 2015 Increase in a
Slide 12: Total Revenues and Net Variable Power Costs
Purchase Power & Fuel $148 $126 Less: Wholesale Sales $18 $14 Net Variable Power Costs $130 $112 Total Revenues and Net Variable Power Costs Q2 2015 Sources of Power Q2 2016 Sources of Power in millions Q2 2015 Q2 2016 Total Revenues $450 $428 56% 12% 8% 16% 8% 53% 11% 9% 17% Coal Natural Gas Hydro
Slide 13: Operating Expenses
Operating Expenses in millions Q2 2015 Q2 2016 Generation, Transmission & Distribution $66 $64 Administrative & General $60 $61 Total O&M $126 $125 Depreciation & Amortization $76 $83 Interest Expense, Net $28 $27 Other Income, Net $6 $9 Income Taxes $15 $9 13
Slide 14: Liquidity and Financing
Liquidity and Financing 14 2016 Financing Activity Q1 2016 Q2 2016 Q3 2016 Q4 2016 First Mortgage Bonds $140 million issued May borrow $100 million $133 million redeemed Unsecured Loan Agreement $125 million borrowed May borrow $75 million Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Mo
Slide 15: Guidance
▪ Retail delivery growth of approximately 1%, weather-adjusted and excluding one large paper company; ▪ Average hydro conditions for the remainder of the year; ▪ Wind generation for the remainder of the year based on 5 years of historic levels or forecast studies when historical data is not availabl
Slide 16: 2016 Key Initiatives
2016 Key Initiatives 1. Maintain high level of operational excellence 2. Complete and file the 2016 Integrated Resource Plan and determine next steps on possible accelerated renewables RFP 3. Pursue legal actions against the sureties and their obligations under the performance bond on Carty 16
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