Portland General Electric Co · NYSE:POR
Portland General Electric — FY2017 Earnings Presentation
15 slides from Portland General Electric's earnings presentation, Feb 16, 2018
Slide 1: Earnings Conference Call Fourth Quarter and Full-Year 2017
Portland General Electric Earnings Conference Call Fourth Quarter and Full-Year 2017 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of February 16, 2018 Except as expressly noted, the information in this presentation is current as of February 16, 2018 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2017 — and should not be relied upon as bei
Slide 3: Leadership Presenting Today
Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Maria Pope President & CEO On Today's Call • Financial performance • Accomplishments • Economic Update • Energy Imbalance Market participation • 2016 Integrated Resource Plan • 2019 General Rate Case • Tax reform • Financi
Slide 4: 2017 Earnings Results
2017 Earnings Results NI in millions Q4 2017 Q4 2016 FY 2017 FY 2016 Net Income $42 $61 $187 $193 Diluted EPS $0.48 $0.68 $2.10 $2.16 Non-GAAP Diluted EPS $0.67 $0.68 $2.29 $2.16 2016 EPS: $2.16 2017 EPS: $2.10 Non-GAAP 2017 EPS: $2.29 4 Q1 Q1 Q2 Q2 Q3 Q4 Q3 Q4 Non- GAAP EPS: $0.67 Tax Reform $0.19
Slide 5: Accomplishments
Accomplishments Best in West Among Large Utilities for Business Customer Satisfaction J.D. Power Top Quartile Customer Satisfaction Residential and Business Customers Market Strategies International 5 Top Decile Customer Satisfaction Key Customers TQS Research, Inc.
Slide 6: Economic Update
• Oregon's job market in 2017 was the strongest on record, with full-year total unemployment a record-low 4.0%1 • Oregon's annual GDP growth averaged 3.3% over the past two decades2 • Residential customer base increased approximately 1.3% over the past year Economic Update (1) Oregon Office of Econo
Slide 7: Western Energy Imbalance Market
Western Energy Imbalance Market 7 Completed first full quarter as a market participant, marking an important step as we continue to invest in clean, reliable energy • Captured lowest-cost resources available throughout six participating states • Better managed short-term variations of our customers'
Slide 8: 2016 Integrated Resource Plan
8 2016 Integrated Resource Plan A flexible, balanced plan that reflects our commitment to a low-carbon future and in keeping with the Oregon Clean Electricity Plan -- process includes continuing dialog with OPUC staff and stakeholders Renewable Procurement • Procurement of renewables (100 MWa) to me
Slide 9: 2019 General Rate Case
2019 General Rate Case 9 Key drivers Investments in the system to better serve customers and continue building a smarter, more resilient grid • Return on equity of 9.5% • Capital structure of 50% debt and 50% equity • Rate base of $4.86 billion • Customer price increase of approx. 4.8%, net of tax r
Slide 10: Tax Reform
Tax Reform • Filed a deferral application with the OPUC ▪ Defer regulatory items with a 2017 and 2018 financial impact into future years ▪ Proposed that any refund be subject to an earnings test, tied to ROE • Cash flow and credit metrics remain strong 10
Slide 11: 2017 Earnings Bridge
2017 Earnings Bridge Earnings per diluted share 11 2016 Weather Storm Service Restoration Carty D&A PTCs Employee Benefits & Other Deferred Tax Remeasure- ment 2017 $2.29 $2.29 Non-GAAP EPS Excluding the remeasurement of deferred taxes
Slide 12: Capital Planning
Capital Planning 12 (1) Does not include any capital related to the 2016 renewable RFP or energy storage Current Capital Outlook Investments include: • Upgrade and replacement of aging generation, transmission and distribution equipment • Strengthening the power grid for earthquakes, cyberattacks an
Slide 13: Liquidity & Financing
Liquidity & Financing Total Liquidity as of 12/31/2017 (in millions) Credit Facilities $ 720 Commercial Paper — Letters of Credit $ (67 ) Cash $ 39 Available $ 692 Ratings S&P Moody's Senior Secured A- A1 Senior Unsecured BBB A3 Commercial Paper A-2 Prime-2 Outlook Positive Stable ($ in millions) Q1
Slide 14: Guidance & Assumptions
Guidance & Assumptions 2018 EPS Guidance: $2.10 - $2.25 • Retail deliveries decline between 0% and 1%, weather-adjusted • Warmer-than-normal weather in January • Average hydro conditions for the year • Wind generation for the year based on five years of historic levels or forecast studies when histo
Slide 15: 2018 Key Initiatives
2018 Key Initiatives 15 • Maintain our high level of Operational Excellence • Invest in reliable and clean energy • Build a smarter, more resilient grid
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