Portland General Electric Co · NYSE:POR
Portland General Electric — FY2018 Earnings Presentation
12 slides from Portland General Electric's earnings presentation, Feb 15, 2019
Slide 1: Portland General Electric Earnings Conference Call
Portland General Electric Earnings Conference call Fourth quarter and full-year 2018
Slide 2: Cautionary statement
Cautionary statement Information Current as of February 15, 2019 Except as expressly noted, the information in this presentation is current as of February 15, 2019 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2018 — and should not be relied upon as bei
Slide 3: Leadership presenting today
Leadership presenting today Maria Pope President and CEO On today's call • Financial performance • Economic update • Renewable RFP • 2019 general rate case Jim Lobdell • Financial update Senior VP • Earnings guidance of Finance, CFO & Treasurer 3
Slide 4: 2018 earnings results
2018 earnings results Q4 2018 Q4 2017 FY 2018 FY 2017 Net Income (in millions) $49 $42 $212 $187 Diluted EPS $0.55 $0.48 $2.37 $2.10 Non-GAAP Diluted EPS(1) - $0.67 - $2.29 Non- GAAP EPS: $0.67 Tax Reform $0.19 2018 EPS: 2017 EPS: $2.37 $2.10 Non-GAAP 2017 EPS: (1) Management believes that excluding
Slide 5: Economic update
Economic update • Total customer base increased 1.3% over the past year • Industrial growth in data centers, high tech manufacturing contributed to a 2.2% increase in industrial energy deliveries • Unemployment of 3.5% in PGE's service territory(1) • Oregon ranked 2nd nationwide for percentage of in
Slide 6: New generation: renewable RFP
New generation: renewable RFP • Located in Morrow County, Oregon • Split ownership and PPA(1) • Resource capacity: ◦ Wind 300 MW ◦ Solar 50 MW ◦ Battery 30 MW • 2020: Wind farm online • 2021: Solar, battery online (1) PGE will own 100 megawatts of the wind project. NextEra Energy Resources' subsidia
Slide 7: 2019 general rate case
2019 general rate case New prices became effective Jan. 1, 2019 and reflect: • Overall price increase of 0.5% • Return on equity of 9.5% • Capital structure of 50% equity • Rate base of $4.75 billion • Cost of long-term debt of 5.1% Final prices are inclusive of tax reform, and rate base includes co
Slide 8: 2018 earnings bridge
$2.10 GAAP EPS 2018 earnings bridge $2.29 Non-GAAP EPS Excluding the remeasurement of deferred taxes(1) Tax Reform $0.19 $2.10 2017 Weather Purchased Storm Plant Carty Regulatory Other 2018 power and Restoration Maintenance Items wholesale sales (1) Management believes that excluding the effects of
Slide 9: Capital planning
Capital planning Current capital outlook Investments include: • Upgrading, replacing aging generation, transmission and distribution equipment • Strengthening the power grid for earthquakes, cyberattacks and other potential threats • Adding 100 MW of wind generation at Wheatridge Renewable Energy Fa
Slide 10: Liquidity and financing
Liquidity and financing Total Liquidity 2018 Ratings S&P Moody's (in $ millions) Credit Facilities $ 500 Senior Secured A A1 Commercial Paper — Senior Unsecured BBB+ A3 Letters of Credit 136 Commercial Paper A-2 Prime-2 Cash 119 Outlook Positive Stable Available $ 755 Financings Q4 2018 Q1 2019 Q2 2
Slide 11: 2019 earnings guidance
2019 earnings guidance • Increase in retail deliveries of approximately 0.5%, 2019 EPS weather-adjusted Guidance: • Average hydro conditions for the year • Wind generation for the year based on five years of $2.35 historic levels or forecast studies when historical data is not available - • Normal t
Slide 12: 2019 focus
2019 focus Advancing clean energy through: • Our collaboration with NextEra Energy Resources on the Wheatridge facility • Continued investment in a smarter, more integrated grid • Cost-effective focus on enhanced reliability and resilience 12
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