Portland General Electric Co · NYSE:POR
Portland General Electric — Q1 2017 Earnings Presentation
16 slides from Portland General Electric's earnings presentation, Apr 27, 2017
Slide 1: Portland General Electric Earnings Conference Call First Quarter 2017
Portland General Electric Earnings Conference Call First Quarter 2017
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of April 27, 2017 Except as expressly noted, the information in this presentation is current as of April 27, 2017 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 — and should not be relied upon as being
Slide 3: Leadership Presenting Today
Leadership Presenting Jim Piro President & CEO Today On Today's Call • Financial performance • Operational update • Economy and customers • Capital expenditures forecast Jim Lobdell Senior VP • 2016 Integrated Resource Plan (IRP) of Finance, • 2018 General Rate Case CFO & Treasurer • Financial Updat
Slide 4: First Quarter 2017 Earnings Results
First Quarter 2017 Earnings Results NI in millions Q1 2016 Q1 2017 Net Income $61 $73 Diluted EPS $0.68 $0.82 Q1 Q1 Q4 Q2-Q4 Q2 Q3 $1.38 - $1.53 2016 Diluted EPS 2017E Diluted EPS $2.16 $2.20 - $2.35 4
Slide 5: Accomplishments and operational update
Accomplishments and operational update Successful companywide effort to deliver safe and reliable service to customers in the face of historic winter storms Generating Plant Availability 95% Top Quartile Customer Satisfaction TQS Research, Inc. and Market Strategies International Environmental Champ
Slide 6: Economic Update
Economic Update • Positive economic trends in our service area, including: unemployment at record-low, rising wages and continued increases in building permits1 • Unemployment rate in our service area at 3.3 percent -- beating Oregon's rate of 3.8 percent and the national rate of 4.5 percent2 • Aver
Slide 7: Capital Planning
Capital Planning Current Capital Outlook Investments include: • Upgrades and $585 replacement of aging generation, $446 transmission and distribution • Strengthening the power grid for earthquakes, cyberattacks and other potential threats • New customer information systems and technology tools (1) (
Slide 8: Carty Generation Station update
Carty Generation Station update Carty Generating Station, our 440 MW natural gas baseload plant near Boardman, Ore. • Carty plant in-service, including AFDC, as of 3/31/2017: $636M • Total estimated cost, including AFDC, for completion: ~$640M • Estimated time frame to complete litigation: 2-4 years
Slide 9: 2016 Integrated Resource Plan
2016 Integrated Resource Plan Nov. 2016 Q3 2017 2nd Half 2017 2018 IRP filed with OPUC acknowledgement RFP bidding process Expected to reach commission expected commences decision on RFPs • Reflects PGE's shift to more renewables in keeping with Oregon Clean Electricity Plan • Process includes conti
Slide 10: 2018 General Rate Case filed Feb. 28
2018 General Rate Case filed Feb. 28 Key drivers: Investments in the system to keep it safe, reliable and secure Includes: • Replacing assets at the end of their useful life • Strengthening the system to better prepare for storms, earthquakes, cyberattacks and other potential threats • Investments i
Slide 11: First Quarter Financial Results
First Quarter Financial Results AFDC Equity $ (5) D&A $ (1) Property, Payroll and Other Taxes $ (2) Miscellaneous Other $2 $ in millions Generation, Retail Power Transmission Administrative Q1 2016 Revenue Other Misc Q1 2017 Costs and and General Items Distribution 11
Slide 12: First Quarter Earnings Bridge
First Quarter Earnings Bridge Weather Impact on Load $ 0.27 Power Cost Adjustment $ 0.03 Weather Adjusted Load, net $ (0.08) Q1 2016 Gross Distribution Carty PTCs Q1 2017 Margin Costs 12
Slide 13: Liquidity and Financing
Liquidity and Financing as of 03/31/2017 Total Liquidity (in millions) Ratings S&P Moody's Credit Facilities $ 660 Senior Secured A- A1 Commercial Paper — Senior Unsecured BBB A3 Letters of Credit $ (56) Commercial Paper A-2 Prime-2 Cash $ 31 Outlook Stable Stable Available $ 635 ($ in millions) Q1
Slide 14: Guidance and Assumptions
Guidance and Assumptions • Retail deliveries decline between zero and one percent, weather -adjusted; 2017 EPS • Above average hydro conditions based on the current year hydro Guidance: forecast; • Wind generation for the remainder of the year based on 5 years of historic levels or forecast studies
Slide 15: Dividend
Dividend •Eleventh consecutive dividend increase •Anticipated annual dividend increase of 5% - 7% •Target payout ratio of approximately 50% - 70% 3.6% CAGR 15
Slide 16: 2017 Key Initiatives
2017 Key Maintain high level of operational excellence Initiatives Work collaboratively with all our stakeholders to obtain acknowledgement of our 2016 Integrated Resource Plan and associated action plan Achieve a fair and reasonable result on our 2018 General Rate Case 16
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