Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (October 2024)
37 slides from Portland General Electric's investor presentation, Oct 25, 2024
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC October 25, 2024
Slide 2: Cautionary statement
Cautionary statement Information Current as of October 25, 2024 Except as expressly noted, the information in this presentation is current as of October 25, 2024 – the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 - and should not be relied upon a
Slide 3: The Company
The Company
Slide 4: PGE at a glance
PGE at a glance 3,500+ MWs of Generation Beaver Quick facts Port Westward 1 & 2 Washington Tucannon River • Vertically integrated energy company that generates, OREGON WASHINGTON Wind Farm transmits and distributes electricity 26 Eastern Oregon Columbia River • Approximately 934,000 retail customers
Slide 5: Investment thesis
Investment thesis Investing in a reliable and Building a smarter more Focusing on operational clean energy future resilient grid effectiveness and efficiency • Adopting 100% clean energy by 2040 • Investing in our system to maintain and • 5% to 7% long-term EPS growth(1) and framework increase resil
Slide 6: Diverse, growing service area
Diverse, growing service area • Growing core urban service area with strong population growth supporting services (government, education, restaurants, healthcare, and other services) OREGON WASHINGTON • I-5 corridor and port access provide opportunity for transportation and 26 Columbia River warehou
Slide 7: Robust demand growth led by industrial class
Robust demand growth led by industrial class 2023 Load Mix(1) Track record of strong Ongoing high tech investment in industrial growth Oregon(3) $500M+ 7.5% State grants, loans, and tax credits for Industrial Load Growth Oregon semiconductor industry 29% CAGR 37% $40B+ 2018-2023(1)(2) Expected state
Slide 8: Reliability and resiliency investments
Reliability and resiliency investments Capital expenditures forecast(1) $1,355 $1,285 $1,250 $130 $1,150 $1,155 $195 $435 $235 $255 $265 $155 $90 $120 $125 $120 $120 $670 $615 $610 $600 $625 $160 $160 $165 $170 $175 2024 2025 2026 2027 2028 Generation Distribution General, Technology, Strategic BESS
Slide 9: Clean energy transition
Clean energy transition Advancing toward a clean energy future PGE has made significant progress toward decarbonization in the past decade Meaningful steps underway to meet 2030 emissions targets: • Removing coal from our portfolio to meet our legislative requirement • Clearwater Wind Development pl
Slide 10: Resource planning and procurement
Resource planning and procurement 2023 IRP Action Plan 2023 RFP Timeline Customer Actions ✓ May 2023 Draft RFP submitted to • Increased energy efficiency, distributed energy OPUC for approval resources and incorporation of customer demand response ✓ February 2024 Final RFP issuance Community-Based R
Slide 11: 2023 RFP final shortlist
2023 RFP final shortlist PGE ranked the final shortlist in two groups, prioritized based on performance in the RFP price scoring evaluation, representing the optimal intersection of value to customers at the least-cost and the least-risk. Group A consists of top performing projects and PGE has begun
Slide 12: Illustrative rate base growth
Illustrative rate base growth • PGE’s five-year base capital expenditure forecast of $6.2 billion drives 8% average rate base growth, from 2022 base year • Illustrative incremental RFP opportunities(2) potentially increase average rate base growth to 10%, from 2022 base year $10.0 $9.3 10% CAGR $8.6
Slide 13: 2025 General rate case
2025 General rate case Rate Case Key Terms – UE 435 (1) Rate Base $7.5 billion Rate Base Increase $878 million, 13% ROE 9.75% Capital Structure 50/50 Cost of Debt 4.628% Cost of Capital 7.189% Revenue Requirement Increase $225 million, including $37 million for power costs • Recovery of Constable an
Slide 14: Key Strengths
Key Strengths
Slide 15: Operational excellence
Operational excellence Continued focus on safety and a leader in reliability System Average Lost Time Incident Interruption Duration Overall Generation Rate Index (SAIDI)(1) Availability 0.29 2nd Quartile 86.5% 2022: 0.74 2022: 2nd Quartile 2022: 86.3% Note: All data is as of December 31, 2023, unle
Slide 16: Customer focus
Customer focus CUSTOMER SATISFACTION Ranked in the top decile nationwide for Residential Customer Delight according to Escalent’s National Energy Utility Benchmarking Study (2023) (1) TOP 5 Ranked as number 1 in 2024 and as a Top 5 Utility for 2021, 2022 and 2023 in the United States for Customer Ex
Slide 17: Clean energy and transmission investment
Clean energy and transmission investment Building a smarter, stronger, more flexible grid to deliver the power customers need today and into the future Advancing the clean energy transition Clearwater Wind Facility • 311 MW of emissions-free generation for PGE customers • PGE owns 208 MW of the proj
Slide 18: Long-term financial performance
Long-term financial performance $3.18(4)(7) $2.75(1) $2.74(2) $3.08(4)(7) $2.72 $2.60(2) GAAP EPS 2.72 $2.60(2) $2.38(3) 2.60 (diluted) $2.33(3) 2.33 Long-term Non-GAAP EPS 5% to 7%(4) earnings (diluted) $1.72 1.72 (1) growth from 2022 adjusted base year Adjusted Non-GAAP Guidance(7) (diluted) 2020
Slide 19: Proven dividend growth
Proven dividend growth (4) $1.98 Dividends $1.88 declared per $1.79 common share(3) $1.70 $1.59 $1.52 $1.43 $1.34 $1.18 $1.26 Target Payout 70% Ratio Actual Payout 60% Ratio (5) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Long-term dividend growth guidance of 5-7%(4) (1) Compound Annual Growt
Slide 20: Liquidity and financing
Liquidity and financing Ratings S&P Moody’s Total Liquidity: $1,023 million Senior Secured A A1 as of September 30, 2024 (dollars in millions) Senior Unsecured BBB+ A3 Cash Commercial Paper A-2 P-2 $35 Outlook Stable Negative Actual and expected 2024 debt financings Q1 Q2 Q3 Q4 (dollars in millions)
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance
Slide 22: Environmental, social, & governance highlights
Environmental, social, & governance highlights Decarbonize Electrify Perform In 2023, PGE’s total system load was composed of 35% specified, non-emitting energy sources. PGE continued to make steady progress, reducing emissions from unspecified sources(1), procuring clean energy resources and GHG Em
Slide 23: Clean energy commitment
Clean energy commitment PGE’s clean energy and emissions goals have always been rooted in our customers’ preferences, who are some of the most sophisticated renewable energy buyers in the world PGE’s goals go above and beyond required emission reduction targets and PGE was the first utility in the U
Slide 24: Green financing framework
Green financing framework Adopted Issued our Green Financing $100M in green bonds, Issued Framework under which we 2021 which were funded in 2023, 2022 $500M in green bonds to issue green financing supporting the development support the Seaside battery instruments to finance or of Constable and Seas
Slide 25: Community and employee engagement
Community and employee engagement $197M spent with diverse suppliers in 27% Black, Indigenous and People of Color 2023, 18% of total spend for 2023 make up over one-fourth of leadership 20,000+ volunteer hours completed by 35% Women make up over one-third of employees and retirees leadership, includ
Slide 26: Diverse and experienced Board
Diverse and experienced Board Track record of thoughtful refreshment enables us to have a Board with the Name Age Director Industry/Experience Diversity Committee Other Public experience and diverse perspectives Since Membership(1) Boards Dawn Farrell • Finance needed to oversee our business 64 2022
Slide 27: Diversity, equity, and inclusion
Diversity, equity, and inclusion Committed to DEI across our business • Partners and suppliers: Increased our supplier diversity to 18% of total supplier spending in 2023, up from 14% in 2022 Workforce by Gender(1) • Awareness, education, and training: Racial equity 0.5% education for our board, lea
Slide 28: Appendix
Appendix
Slide 29: Wildfire regulatory framework
Wildfire regulatory framework WMP Annually, PGE files a Wildfire Mitigation Plan with the OPUC which summarizes our approach to addressing wildfire risk. The 2024 Wildfire Mitigation Plan (Docket UM 2208) was submitted in December 2023 AAC PGE’s Wildfire Automatic Adjustment Clause (AAC) is designed
Slide 30: PGE's wildfire risk mitigation hierarchy
PGE’s wildfire risk mitigation hierarchy Public Safety Power Shutoff In response to extreme conditions, PGE 2 has successfully implemented two PSPS Public Safety Power Shutoffs (PSPS), one PGE turns off in 2020 and one in 2022 to protect power in a lives, property and public spaces limited, high-ris
Slide 31: Public safety power shutoff (PSPS)
Public safety power shutoff (PSPS) Temporarily turning off power during extreme weather conditions to reduce wildfire risk 31
Slide 32: Constructive regulatory / policy framework
Constructive regulatory / policy framework Oregon Federal • Oregon legislation requires 100% clean energy by 2040 • The Inflation Reduction Act (IRA), which was signed into law in • Oregon Public Utility Commission August 2022, is expected to further enhance PGE’s already strong prospects for renewa
Slide 33: Recovery of power costs
Recovery of power costs Annual power cost update tariff • Annual reset of prices based on forecast of net variable power costs (NVPC) for the coming year • Subject to OPUC prudency review and approval, new prices go into effect on or around January 1 of the following year • PGE can recover 80% of po
Slide 34: Average retail price comparison
Average retail price comparison Residential Electric Service Prices: Commercial Electric Service Prices: 1,000 kWh monthly consumption 40 kW demand and 14,000 kWh monthly consumption (Prices in cents per kWh) (Prices in cents per kWh) PGE - Sch. 7 15.8 PGE - Sch. 83 11.1 EEI U.S. Average 17.5 EEI U.
Slide 35: 2024 Earnings Sensitivities
2024 Earnings Sensitivities Sensitivity Full-Year Adjusted EPS Impact Load Growth - Residential(1) ± 1% ± $0.07 Load Growth – Commercial(1) ± 1% ± $0.02 Load Growth – Industrial(1) ± 1% ± $0.01 O&M Expense ± $10 million ± $0.07 Interest Rates(2) ± 25 bps ± $0.01 Effective Tax Rate ± 1% ± $0.03 (1) A
Slide 36: Non-GAAP financial measures
Non-GAAP financial measures This presentation contains certain non-GAAP measures, such as adjusted earnings, adjusted EPS and adjusted earnings guidance. These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities, are infrequent in n
Slide 37: Non-GAAP financial measures
Non-GAAP financial measures Non-GAAP Earnings Reconciliation for the year ended December 31, 2020 (Dollars in millions, except EPS) Net Income Diluted EPS GAAP as reported for the year ended December 31, 2020 $155 $1.72 Exclusion of certain trading losses 127 1.42 Tax effect (1) (35) (0.39) Non-GAAP
Portland General Electric — Investor Presentation (October 2024) on 6ix