Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (March 2009)
31 slides from Portland General Electric's investor presentation, Mar 31, 2009
Slide 1: Investor Roadshow
Exhibit 99.1 Investor31, March CopyrightRoadshow © 2009 2008 April Portland 1 & 2,General 2009 Electric. All Rights Reserved.
Slide 2: Cautionary Information Regarding Forward-Looking Statements
Cautionary Information Except 2008 Forward-Looking This Section Words forward-looking statements Farm margin Although Factors regulatory energy generation time undertakes 2 in presentation — project; or market as PGE’s deposits; that 21E and phrases PGE expressly proceedings; facilities; concerning
Slide 3: Portland General Electric Investment Highlights
Portland “Pure-play” Operational Low-risk $1.1 Renewable Prudent – Dividend Stability: Attractive EPS Growth: 3 Attractive Well-managed Wind Track Target 10.0% High Highest Focus (2) (1) growth billion quality, investments record financial on capital ROE General Satisfaction Portlandgrowth Yield in
Slide 4: Mission and Strategic Direction
Portland Mission: Operational price. Customer Business Strategic Corporate Listen Deliver 4 and Value General To system Growth satisfaction Responsibility lead Excellence betoainCustomers investments company Strategic public Operational policy our Direction and Encourage customers Trusted Shareholde
Slide 5: Attractive Business Profile
Attractive Straightforward Vertically Single-state Virtually No Attractive, •Includes CWIP Other $281 $1,007 $196 Transmission $1,064 Distribution Net 5 Engaged Diversified Constructive (1) holding Utility million $251 million 52 As100% integrated Regulated in compact Plant company incorporated mill
Slide 6: Attractive Customer and Load Growth
Attractive Weather (thousands 20,000 1 2003 2008 6 PGE 19,000 .in Industrial CommercialAdjusted 4achieved Residential Total (1) 2004 Retail = $1.5Service %of Adjusted Commentary Compounded Growth Population No Load Decline single has growth10% 2005 50%aannual MWH) 18,000 nnua Revenues Billion 40% cu
Slide 7: Constructive Oregon Regulatory Environment
Constructive Oregon Governor-appointed Forward Net Annual Power Cost 10.0% 50% 8.28% Intended Decoupling Integrated Acknowledgement 2009 Standard Renewable 7 (1) Variable Debt, of IRP—longer-term Allowed Cost Weighted Capital Update Public Test to requires SeeResource 50% Adjustment Energy allow Adj
Slide 8: Operational Excellence: Customer Satisfaction
•Operational Smart Capex: $18 Customer Highest U.S. Associates Residential Highly On-going Invested Well 8 Ongoing million according Maintained, Meter reliable $130-$135 customer more infrastructure Satisfaction investments 2009 customer in Excellence Efficiency Program annual than to system Electri
Slide 9: Operational Excellence: Power Supply Strategy
Operational •Manage to Communication 9 Capitalize Meet Manage assure load power strategy and in on Excellence monitor most PGE’s supply isisone economic implemented assets operations risks of thewith and keys fashion position appropriate to: prudently to our to lower strategy in the systems cost mar
Slide 10: Operational Excellence: Generation and Physical Capacity
Operational Generation Physical Capacity Deschutes River Clackamas/Willamette Hydro 1,184 Natural Beaver Coyote Port 1,175 Boardman Colstrip 670 Wind Wind(2) Biglow 81 Net Short-/Long-term Total Power 2008 2007 29% 24% 27% 20% Purchased 25% Coal 19% Gas/Oil (1) Hydro/Wind(1) 10 1.8 Includes Purchase
Slide 11: Smart Meters
Smart Meters Provides Vendor: Technology: Deployment: Estimated OPUC Distribution Pursuing Optimizing 11 Grid approved Sensus two-way direct cost: completion: distribution System FlexNet 850,000 load $130 Metering limited communications control million—$135 radio residential 2010 system term Systems
Slide 12: Business Growth: PGE's Load and Resource Balance
Business PGE’s Load Retail (1) 12 (2) Note: Growth Resource Load Loadlong-term Data Growth &asResource Assumes Balance ofretail forecast 1.9%February does load loadAnnual Balance not is 2009. expected growthAverage include Peak Capacity(1)(3) toEnergy(1)(2) through 30 MWa grow 2030 consistently of n
Slide 13: Business Growth: Projects
Business Growth Projects Biglow Smart Boardman Hydro Ongoing Total Other •– (1) (2) change. (3) AFDC). 13Additional RFP Southern Purchase Final 225 Designed Current Represents Projects mile, Potential issued metering licensing short Canyon Includes is (in capital Growth driven emissions Crossing pow
Slide 14: Business Growth: Generation Port
Business Generation Port •Biglow – Phases 2008 Phase Nameplate Cost Online Contractor (1) 14413 $280 6,826 Placed Columbia 450 $255 125 Online Westward (w/AFDC) MW MW Imillion, II date II million, Btu/kWh (on Canyon Based Phase into and Growth &total gas-fired Siemens nameplate capacity expansion ti
Slide 15: Business Growth: Rate Base
Business Rate 5 $2,484 $2,237 $1,766 $2,009 2002 (2) Base Capital ($ 800 2007 $455 $722(2) 15 .from 0short-term millions) 700 2007 2008 $372 (1) Growth (Average) %2,600 athe Expenditures 600 Attractive, Commentary $526 Approximately Reduced Depreciation New (1) benefits Includes capital 2008 2009E 5
Slide 16: Prudent Financial Strategy: Target Debt/Equity
Prudent Target Debt – capacity Equity •the 16After Additional $130 $150—$170 In PGE On Gross $67 $63underwriters lieu May March Issuance million anticipates Capital million considering Issuance proceeds Financial of at1,remarketing year 11, equity 2009, @million Structure of2009 end 6.80%, 6.50%, be
Slide 17: Prudent Financial Strategy: Debt/Capitalization
Prudent Manageable Debt/Capitalization ($ 60% (2) 17 millions) 2005 2009 Credit Senior S&P 0.235 +4.3% 0.225 +4.4% Jul- 06 (1) 55% Moody’s Dividend Quarterly Target 2008 0.245 06Oct- A Financial 2006 2010 payout 0.245 0.235 0.225 07 50% Ratings payout BasedNear-term Secured BBB+ Includes 07 Jan- Baa
Slide 18: Liquidity
Liquidity 500 $495 Revolving $370 Commentary $360 $10 $125 Revolver $218 Margin Approximately (1) 18 400 million $218 million deposits roll-off(1) Assumes 300 usage (as ($ Credit $25 matures millions) 200 of revolving matures 364-day in 50% 40% letters as 3/20/09) posted create 100 market Facilities
Slide 19: Portland General Electric Investment Highlights
Portland “Pure-play” Operational Low-risk Prudent Dividend Stability: Attractive EPS Growth: 19 Growth financial General growth Yield total excellence electric return plan Investment strategy utility proposition Highlights
Slide 20: Investor Relations Contact Information
Investor J. William Director, Portland 20 www.PortlandGeneral.com Relations General Investor ValachElectric Relations ContactCompany Information 503-464-7395 121 S.W. William.Valach@pgn.com Salmon Street Suite 1WTC0403 Portland, OR 97204
Slide 21: Appendix Table of Contents
Table •Appendix 21 American Earnings General Power Decoupling Senate Other Boardman ofRegulatory Cost Bill Contents Rate Summary Recovery BART 408 Adjustment Mechanism Case p.27 and p.29 p.23 p.22 &Legal Reinvestment Mechanism p.26Considerations (PCAM) Act of p.28 2009 p.24-25 p.30
Slide 22: Net Income and Key Earnings Items
Netmillions) ($ $200 $145 $87 Earnings $2.50 $1.80—$1.90 $2.33 Key 2006 Mark-to-market Boardman 2007 California Trojan 2008 Non-qualified Beaver Senate As 2009 22 of Income $71 Items $150 $131-$138 2007 February $2.00 Refund Bill oilper Summary settlement sale ($ outage deferral $100 2008 408 $1.50
Slide 23: 2009 Regulatory Rate Case Outcome
2009 Outcome Regulatory •Rate – Commentary The with (1) 23Allowed Average Equity Debt Return Methodology Rate %Certain NVPC: O&M, (2) increase OPUC increase: Biglow (3) the Base General increase: capitalization: Reduction decoupling capitalization: on A&G of $95.4 Excludesrate ROE: and Structure acc
Slide 24: Annual Power Cost Recovery Mechanism
Recovery •Annual Power 150 NVPC Baseline ($14) 90/10 Return Earnings 9.1% 100 10.1% 11.1% PGE An Customer (1) Annual 24 annual Bps absorbs million Sharing Cost (1) on Power Deadband $28 reset Test of Surcharge Refund surcharge refund Equity 75 earnings Adjustment Sharing Power million(1) 100% of Bps
Slide 25: Power Cost Recovery Mechanism Example
Recovery Power 150 NVPC Baseline ($14) Actual 2008 PGE Earnings Equity 9.1% on Regulated Return PGE’s If (1) (2) 25 regulated 10.1% Bps retained net million Cost regulated NVPC 100 (1) 11.1% Deadband $28 variable Test of ROE 75 Bps Adjustment ROE Sharing Power million(1) of Bps the $31 Calculatedbel
Slide 26: Decoupling Mechanism
Decoupling A estimated Implemented (LRR), The associated Mechanism On 26condition January March decoupling SNA LRRforis at24, with large 31, Mechanism effective based of approximately under 2009 the 2009, an mechanism non-residential on decoupling ROE aCUB February the new PGErefund difference filed
Slide 27: Oregon Senate Bill 408
Oregon Beginning utility SB Report The Primary outcomes and Historical/expected 2006: 2007: 2008: 27 408 may 2008 Customer or for requires Senate issue address corporate report and prior January for increased Bill calendar collection refund of an those PGE consolidated taxes 1, annual 408 outcomes:
Slide 28: Other Selective Regulatory Proceedings and Legal Considerations
Other Selective Boardman from •Trojan 28 Pelton/Round Capital Project Request OPUC Class November Regulatory Nuclear Action docket: Proceedings completion cost Water with subject Coal (PGE Proceedings the Plant: Butte Withdrawal Plant 18, UE to and OPUC share) 2005 prudency 204 196 expected project
Slide 29: Boardman Best Available Retrofit Technology
Boardman Best In Phase Installation the PGE The •points. – (1) 29Schedule: Oregon EPA December DEQ comment Available cost proposed 1: approval 100% Installation to EQC estimate BART of make 2008, and of Selective Retrofit an decision Early estimated reasonable alternative Update public for the of201
Slide 30: American Recovery and Reinvestment Act
American PGE For In Investment Treasury Based $60 $80 The Accordingly, (1) placed 30 lieu For windfarms Act million availability ison of in qualifying evaluating provides Department service the PGE’s Recovery Tax toPTC, there $90 $110 the Credit of preliminary after arenewable the any Production mil
Slide 31: le a General
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