Portland General Electric Co · NYSE:POR

Portland General Electric — Q3 2013 Earnings Presentation

18 slides from Portland General Electric's earnings presentation, Nov 1, 2013

  1. Slide 1: Earnings Conference Call Third Quarter 2013

    Earnings Conference Call Third Quarter 2013 1 Exhibit 99.2

  2. Slide 2: Cautionary Statement

    Cautionary Statement 2 Information Current as of November 1, 2013 Except as expressly noted, the information in this presentation is current as of November 1, 2013 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 — and should not be relied upon

  3. Slide 3: Leadership Presenting Today

    Leadership Presenting Today 3 Jim Lobdell Senior Vice President of Finance, CFO & Treasurer Jim Piro President & CEO

  4. Slide 4: On Today's Call

    On Today’s Call 4  Growth Initiatives  Regulatory Update  Operational Update  Economy and Customers  Financial Update  2013 Outlook

  5. Slide 5: Q3 2013 Earnings Results

    Q3 2013 Earnings Results Q1 $0.65 Q1 $0.65 Q2 $0.34 Q2 ($0.29) Q3 $0.50 Q3 $0.40 Q4 $0.38 2012 EPS 2013E EPS 5 NI in millions Q3 2012 Q3 2013 2012 Actuals 2013 Guidance Net Income $38 $31 $141 $93 - $100 EPS $0.50 $0.40 $1.87 $1.20 - $1.30 $1.87 $1.20-$1.30

  6. Slide 6: Strategic Initiatives: Capacity Resources

    Flexible Capacity Seasonal Capacity Project Name Port Westward Unit 2 Purchased Power Agreements with Iberdrola Project Location Clatskanie, OR 100 MW of winter capacity 100 MW of summer capacity Project Type PGE’s Benchmark Bid Capacity Fuel Technology 220 MW Natural Gas Wärtsilä Reciprocating Engi

  7. Slide 7: Strategic Initiatives: Renewable Resources

    Strategic Initiatives: Renewable Resources 7 $110 $375 $15 2013 2014 2015 Tucannon River CapEx (in millions) Renewable Energy Project Name Tucannon River Wind Farm Project Location Columbia County, WA Project Type EPC Contract on Third Party Site Capacity Fuel Technology 267 MW Wind Project Siemens

  8. Slide 8: Strategic Initiatives: Baseload Resources

    Strategic Initiatives: Baseload Resources 8 $125 $170 $110 $45 2013 2014 2015 2016 Carty CapEx (in millions) Baseload Energy Project Name Carty Generating Station Project Location Boardman, OR Project Type EPC Contract on Benchmark Site Capacity Fuel Technology 440 MW Natural Gas Mitsubishi CCGT Est

  9. Slide 9: Expected Rate Base and Capital Expenditures

    Expected Rate Base and Capital Expenditures 9 $1.4B of Expected Increase in Rate Base (in millions) 2013 2014 2015 2016 2017 TOTAL Base Capital Spending(1) $320 $365 $315 $270 $245 $1,515 Port Westward Unit 2 $165 $125 $10 $300 Tucannon River Wind Farm $110 $375 $15 $500 Carty Generating Station $12

  10. Slide 10: General Rate Case: 2014 Test Year

    General Rate Case: 2014 Test Year  All issues settled with OPUC Staff and interveners  Stipulation filed July 10, 2013:  Return on Equity (ROE): 9.75%  Capital Structure: 50% debt, 50% equity  Rate base: $3.1 billion  Stipulation filed September 23, 2013  Pension expense recovery of $19.5 mil

  11. Slide 11: Operational Update – Plant Outages

    Operational Update – Plant Outages 11 in millions, PGE Share Boardman Colstrip Unit 4 Coyote Springs Date of Outage July 1 July 1 August 24 Actual/Expected Online Date July 31 Q1 2014 November 2013 Replacement Power Costs $4 $5-$6 $7-8

  12. Slide 12: Economic Outlook & Customer Satisfaction

    Economic Outlook & Customer Satisfaction 12 Growth in Operating Area  Growth in PGE work order requests  Unemployment rate of 6.8% in core operating area  Employment growth in healthcare, hotels, and restaurants  Manufacturing and high tech industries continue to expand  Load growth forecast of

  13. Slide 13: Third Quarter Financial Results

    Third Quarter Financial Results Quarter over Quarter Drivers of Results 13 NI in millions Q3 2012 Q3 2013 Net Income $38 $31 EPS $0.50 $0.40 in millions, pre-tax Q3 over Q3 Increased purchased power and fuel $(8) Delivery system expense $(5) 2011 PCAM refund reduction in Q3 2012 $(7) Increased AFDC

  14. Slide 14: Total Revenues and Power Costs

    Total Revenues and Power Costs in millions Q3 2012 Q3 2013 YTD 2012 YTD 2013 Total Revenues $450 $435 $1,342 $1,311 Power Costs $182 $190 $533 $538 18% 16% 14% 9% 43% Q3 2012 Sources of Power Coal Natural Gas Hydro Wind Purchased Power 16% 21% 14% 9% 40% Q3 2013 Sources of Power 14

  15. Slide 15: Operating Expenses

    Operating Expenses 15 Interest Expense $27 $25 $82 $75 in millions Q3 2012 Q3 2013 YTD 2012 YTD 2013 Production & Distribution $49 $54 $153 $169 Administrative & General $50 $49 $160 $158 Total O&M $99 $103 $313 $327 Cascade Crossing Expense -- -- -- $52 Depreciation & Amortization $63 $62 $188 $186

  16. Slide 16: Liquidity and Financing

    Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A2 Baa1 Stable Credit Ratings Total Liquidity as of 9/30/13 (in millions) Credit Facilities $752 Commercial Paper -- Letters of Credit $(56) Cash $91 Available $787 16 $69 $108 $68 $152 $81 $193 $85 2012 2013E

  17. Slide 17: 2013 Earnings Guidance Progression

    2013 Earnings Guidance Progression 17 2/24/13 Original 2013 Earnings Guidance $1.85 - $2.00 5/1/13 Q1 2013 Earnings Call no change 6/3/13 Cascade Crossing project suspension Customer billing refund $(0.42) $(0.07) Guidance Revised Downward $1.35 - $1.50 8/2/13 Replacement power costs for coal plant

  18. Slide 18: 2013 Earnings Guidance Assumptions

    18 2013 Earnings Guidance Assumptions 2013 EPS Guidance: $1.20 - $1.30 per share  Weather-adjusted energy deliveries comparable to weather-adjusted 2012  O&M expense between $440 and $460 million  D&A expense between $240 and $250 million Assumptions for FY 2013  Capital expenditures between $71

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