Portland General Electric Co · NYSE:POR
Portland General Electric — Q2 2014 Earnings Presentation
15 slides from Portland General Electric's earnings presentation, Jul 29, 2014
Slide 1: Earnings Conference Call Second Quarter 2014
Earnings Conference Call Second Quarter 2014 Exhibit 99.2
Slide 2: Cautionary Statement
2 Cautionary Statement Information Current as of July 29, 2014 Except as expressly noted, the information in this presentation is current as of July 29, 2014 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 — and should not be relied upon as being c
Slide 3: Leadership Presenting Today
3 Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO On Today’s Call ▪ Operational Update ▪ Economy and Customers ▪ Growth Initiatives ▪ Financial Update ▪ Regulatory Update
Slide 4: Q2 2014 Earnings Results
4 Q2 2014 Earnings Results NI in millions Q2 2013 Q2 2014 Net Income $ (22) $ 35 Diluted EPS $ (0.29) $ 0.43 $1.35 $2.05 - $2.20 Q1 $0.65 Q2 ($0.29) Q3 $0.40 Q4 $0.59 Q1 $0.73 2013 EPS 2014E EPS Q2 $0.43 Q3-Q4 $0.89 - $1.04
Slide 5: Operational Update
5 Operational Update residential customer satisfaction general business customer satisfaction key customer satisfaction Top Quartile Top Decile Top Decile
Slide 6: Economic Outlook
6 Economic Outlook (1) (1) Net of approximately 1.5% of energy efficiency Economic Outlook ▪ Customer count growth of 1% ▪ New connects up 25% year-to-date compared with 2013 ▪ Unemployment of 6.0% in our operating area ▪ Weather-normalized 2014 load growth forecast of approximately 1%(1) (excluding
Slide 7: New Generation: Capacity Resource Port Westward Unit
7 New Generation: Capacity Resource Port Westward Unit 2 Project Location Clatskanie, OR Capacity / Fuel 220 MW / Natural Gas Technology 12 Natural GasWärtsilä ReciprocatingEngines EPC Contractor Black & Veatch, Harder Mechanical Estimated In-Service Date Q1 2015 Customer Price Impact ~3% Next Steps
Slide 8: New Generation: Renewable Resource Tucannon River
8 New Generation: Renewable Resource Tucannon River CapEx: $500M (in millions) Tucannon River Wind Farm Project Location Columbia County, WA Capacity / Fuel 267 MW / Wind Technology 116 2.3 MW Siemens Turbines EPC Contractor RES Americas Estimated In-Service Date December 2014 - Q1 2015 Customer Pri
Slide 9: New Generation: Baseload Resource Carty
9 New Generation: Baseload Resource Carty CapEx: $450M (in millions) Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440 MW / Natural Gas Technology Mitsubishi Turbine EPC Contractor Abener/Abengoa Estimated In-Service Date Mid 2016 Customer Price Impact ~6-8% Next Steps ▪ Pou
Slide 10: Expected Rate Base and Capital Expenditures
10 Expected Rate Base and Capital Expenditures (in millions) 2013 2014E 2015E 2016E 2017E 2018E TOTAL Base Capital Spending(1) $335 $360 $320 $315 $285 $280 $1,895 Port Westward Unit 2 $155 $130 $15 $300 Tucannon River Wind Farm $95 $395 $10 $500 Carty Generating Station $135 $115 $165 $35 $450 TOTA
Slide 11: Second Quarter Financial Results
11 Second Quarter Financial Results NI in millions Q2 2013 Q2 2014 Net Income $(22) $35 Diluted EPS $(0.29) $0.43 Key Quarter over Quarter Drivers Cascade Crossing Transmission Project write-off in Q2 2013 h Industrial customer refund in Q2 2013 h Alignment of revenues and expenses with 2014 GRC h E
Slide 12: Q2 2014 Sources of Power
12 Q2 2014 Sources of Power Q2 2013 Sources of Power Total Revenues and Power Costs in millions Q2 2013 Q2 2014 Retail Revenues $373 $396 Net Variable Power Costs $135 $125 52% 16% 9% 19% 4% 60% 8% 1% 20% 11% Coal Natural Gas Hydro Renewable Purchased Power
Slide 13: Operating Expenses
13 Operating Expenses in millions Q2 2013 Q2 2014 Production & Distribution $64 $67 Administrative & General $55 $56 Total O&M $119 $123 Cascade Crossing Transmission Project $52 $— Depreciation & Amortization $62 $73 Interest Expense, Net $25 $23 Other Income, Net $3 $10 Income Taxes $(11) $10
Slide 14: General Rate Case: 2015 Test Year
14 ▪ Filed on February 13, 2014 ▪ Requested Return on Equity (ROE): 10% ▪ Cost of Capital: 50% debt, 50% equity ▪ Revised Rate base: $3.8 billion ▪ Final order expected from the Commission in mid-December General Rate Case: 2015 Test Year Drivers of 2015 GRC As Filed DepreciationStipulation Updates
Slide 15: Liquidity and Financing
15 Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Liquidity as of 6/30/2014(in millions) Credit Facilities $760 Commercial Paper -- Letters of Credit $(63) Cash $97 Available $794 Expected 2014-2015 Financing Plans Q2 2014 Q3 2014 Q4 2014
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