Portland General Electric Co · NYSE:POR
Portland General Electric — FY2014 Earnings Presentation
18 slides from Portland General Electric's earnings presentation, Feb 13, 2015
Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2014
Earnings Conference Call Fourth Quarter and Full Year 2014 Exhibit 99.1
Slide 2: Cautionary Statement
2 Cautionary Statement Information Current as of February 13, 2015 Except as expressly noted, the information in this presentation is current as of February 13, 2015 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2014 — and should not be relied upon as b
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 ▪ Strategic Initiatives ▪ Financial Update ▪ Regulatory Update
Slide 4: Q4 and Full-Year 2014 Earnings Results
4 $0.73 $0.43 $0.47 $0.55 Q4 and Full-Year 2014 Earnings Results $1.35 NI in millions Q4 2013 Q4 2014 Net Income $47 $43 Diluted EPS $0.59 $0.55 $0.65 $(0.29) $0.4 $0.59 $2.18 2013 EPS 2014 EPS 2013 Actuals 2014 Actuals $105 $175 $1.35 $2.18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 5: Accomplishments and Operational Update
5 Accomplishments and Operational Update general business customer satisfaction key customer satisfaction residential customer satisfaction Top Decile Top Decile Top Quartile • Two new generating plants in service, on time and within budget ◦ Tucannon River Wind Farm ◦ Port Westward Unit 2 • Excelle
Slide 6: Rate Base and Capital Expenditures
6 Rate Base and Capital Expenditures (in millions) 2013 2014 2015E 2016E TOTAL Base Capital Spending(1) $335 $342 $408 $363 $1,448 Port Westward Unit 2 $155 $118 $20 $293 Tucannon River Wind Farm $95 $380 $29 $504 Carty Generating Station $135 $108 $172 $35 $450 TOTAL $720 $948 $629 $398 $2,695 (1)
Slide 7: Economic Update
7 Economic Update (1) According to United Van Lines' annual study (2) Net of approximately 1.5% of energy efficiency Economic Update ▪ Customer count growth of approximately 1% ▪ Oregon added more than 50,000 new jobs in 2014 and ranked No. 1 for in-migration(1) ▪ Unemployment of 5.9% in our operati
Slide 8: 2015 Key Initiatives
8 2015 Key Initiatives 1. Deliver operational excellence 2. Continue with construction of Carty Generating Station on time and on budget 3. Achieve a fair and reasonable outcome in the 2016 General Rate Case 4. Prepare our 2016 Integrated Resource Plan
Slide 9: New Generation: Baseload Resource Carty Generating Station
9 New Generation: Baseload Resource Carty CapEx: $450M Carty Generating Station Project Location Boardman, OR Capacity / Fuel 440 MW / Natural Gas Technology Mitsubishi Turbine EPC Contractor Abener/Abengoa Estimated In-Service Date Q2 2016 Customer Price Impact 4.7 percent Next Steps Receive gas tu
Slide 10: General Rate Case - 2016 Test Year
10 General Rate Case - 2016 Test Year Proposed for 2016 Revenue increase: $66 Million Current projected average price increase: 3.7% Return on Equity (ROE): 9.9% Cost of Capital: 7.67% Capital Structure: 50% debt, 50% equity Rate Base: $4.5 billion Annual Revenue Increase ($mm) As Filed 2/12/2015 Ba
Slide 11: 2016 Integrated Resource Plan
11 2016 Integrated Resource Plan IRP Process Timeline 2015 Develop IRP / Public Process 2016 File IRP 2017 Acknowledgement from OPUC expected and RFP process commences Areas of Focus • Boardman replacement • 2020 Renewable Portfolio Standard requirement of 20% • Energy efficiency and demand side act
Slide 12: Fourth Quarter Financial Results
12 Fourth Quarter Financial Results NI in millions Q4 2013 Q4 2014 Net Income $47 $43 Diluted EPS $0.59 $0.55 Key Quarter over Quarter Drivers Price increase (true up of operating costs) á Improved generation plant operations á Higher AFDC for generation projects - equity á Lower volume (due to weat
Slide 13: Full Year Financial Results
13 Full Year Financial Results NI in millions 2013 2014 Net Income $105 $175 Diluted EPS $1.35 $2.18 Key Year over Year Drivers Cascade Crossing write off and customer billing refund in 2013 á Higher AFDC for generation projects - equity á Improved generation plant operations á Price increase (true
Slide 14: FY 2014 Sources of Power
14 FY 2014 Sources of Power Total Revenues and Power Costs in millions Q4 2013 Q4 2014 FY 2013 FY 2014 Total Revenues $499 $500 $1,810 $1,900 Power Costs $219 $185 $757 $713 52% 19% 8% 16% 5% 49% 21% 8% 16% Coal Natural Gas Hydro Wind Purchased Power FY 2013 Sources of Power 6%
Slide 15: Operating Expenses
15 Operating Expenses In Millions Q4 2013 Q4 2014 FY 2013 FY 2014 Production & Distribution $56 $76 $225 $257 Administrative & General $61 $63 $219 $227 Total O&M $117 $139 $444 $484 Cascade Crossing Expense -- -- $52 -- Depreciation & Amortization $62 $77 $248 $301 Interest Expense, Net $26 $25 $10
Slide 16: Liquidity and Financing
16 Liquidity and Financing Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Liquidity as of 12/31/2014(in millions) Credit Facilities $760 Commercial Paper -- Letters of Credit $(76) Cash $127 Available $811 2014-2015 Financing Plans Q2 2014 Q3 2014 Q4 2014 Q1 201
Slide 17: 2015 General Rate Case
17 2015 General Rate Case Oregon Public Utility Commission Order on 12/4/2014 • Overall increase in customer prices: ~ 1% • Return on Equity (ROE): 9.68% • Capital Structure: 50% debt, 50% equity • Cost of Capital: 7.56% • Rate Base: $3.8 billion • Annual revenue requirement increase: $15 million
Slide 18: Guidance
18 Guidance 2015 EPS Guidance: $2.20-$2.35 ▪ Retail deliveries growth of approximately 1%; ▪ Average hydro conditions; ▪ Wind generation based on historical levels or forecast studies when historical data is not available; ▪ Normal thermal plant operations; ▪ Operating and maintenance costs between
Portland General Electric — FY2014 Earnings Presentation on 6ix