Portland General Electric Co · NYSE:POR
Portland General Electric — Q1 2016 Earnings Presentation
17 slides from Portland General Electric's earnings presentation, Apr 29, 2016
Slide 1: Earnings Conference Call First Quarter 2016
Earnings Conference Call First Quarter 2016 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of April 29, 2016 Except as expressly noted, the information in this presentation is current as of April 29, 2016 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 — and should not be relied upon as being
Slide 3: Leadership Presenting Today; On Today's Call
Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO 3 On Today’s Call ▪ Financial performance ▪ Operational update ▪ Economy and customers ▪ Carty update ▪ Accelerated renewable RFP ▪ Oregon Clean Electricity Plan ▪ 2016 Integrated Resource Plan (IR
Slide 4: First Quarter 2016 Earnings Results
NI in millions Q1 2015 Q1 2016 Net Income $50 $61 Diluted EPS $0.62 $0.68 2015 EPS $2.04 2016E EPS $2.05 - $2.20 Q2 Q3 First Quarter 2016 Earnings Results 4 Q2-Q4: $1.37 - $1.52 Q1 Q2 Q3 Q4 Q1
Slide 5: Accomplishments and Operational Update
Accomplishments and Operational Update 5
Slide 6: Economic Update
Economic Update 6 (1) State of Oregon Employment Department (2) Bloomberg’s Economic Evaluation of States, February 2016 (3) Net of approximately 1.5% of energy efficiency, excluding one large paper customer and adjusting for Leap Year ▪ Oregon reached a record low unemployment rate in March of 4.5
Slide 7: New Generation: Baseload Resource Carty Generating Station
New Generation: Baseload Resource 7 Carty Generating Station, a 440 MW natural gas baseload plant under construction near Boardman, OR ▪ March 9, 2016: Sureties denied full liability under the performance bond ▪ March 23, 2016: PGE filed a lawsuit against sureties for breach of contract damages ▪ Ap
Slide 8: Request For Proposal for Renewables
Request For Proposal for Renewables ▪ Accelerated renewable RFP process intended to capture available renewable resource tax benefits for customers ▪ Participation of Independent Evaluator ▪ Project size up to approximately 175 aMW to help meet Oregon's 2020 and a portion of the 2025 Renewable Portf
Slide 9: Estimated Capital Expenditures
Estimated Capital Expenditures 9 (1) Consists of board-approved ongoing CapEx and hydro relicensing per the First Quarter Form 10-Q filed on April 29, 2016 Note: Amounts exclude AFDC debt and equity (2) Total estimated cost does not consider any amounts that may be received from sureties under the p
Slide 10: Clean Electricity and Coal Transition Plan
Clean Electricity and Coal Transition Plan Key Elements ▪ Increases the renewable portfolio standard to 50 percent in 2040. ▪ Transitions Oregon off coal-fired generation by 2035. ▪ Includes PTCs in power costs, beginning with AUT filing for 2017. ▪ Reaffirms state’s commitment to energy- efficiency
Slide 11: 2016 Integrated Resource Plan
2016 Integrated Resource Plan Areas of Focus ▪ Energy efficiency and demand side actions ▪ Evaluation of carbon emissions and the Clean Power Plan ▪ Energy and capacity needs ▪ Boardman replacement ▪ 2020 Renewable Portfolio Standard requirement of 20% 11 Standard IRP Process Timeline:
Slide 12: First Quarter 2016 Financial Results
First Quarter 2016 Financial Results NI in millions Q1 2015 Q1 2016 Net Income $50 $61 Diluted EPS $0.62 $0.68 Key Quarter over Quarter EPS Drivers Higher retail load due to weather in Q1 2016 compared to Q1 2015 Increase in allowance for funds used during construction Increase in common share c
Slide 13: Total Revenues and Net Variable Power Costs; Sources of Power
Purchase Power & Fuel $161 $149 Less: Wholesale Sales $19 $12 Net Variable Power Costs $142 $137 Total Revenues and Net Variable Power Costs Q1 2015 Sources of Power Q1 2016 Sources of Power in millions Q1 2015 Q1 2016 Total Revenues $473 $487 63% 9% 9% 13% 6% 49% 14% 11% 19% Coal Natural Gas Hydro
Slide 14: Operating Expenses
Operating Expenses in millions Q1 2015 Q1 2016 Production & Distribution $62 $66 Administrative & General $60 $61 Total O&M $122 $127 Depreciation & Amortization $75 $82 Interest Expense, Net $30 $27 Other Income, Net $5 $6 Income Taxes $10 $17 14
Slide 15: Liquidity and Financing
Liquidity and Financing 15 2016 Financing Activity Q1 2016 Q2 2016 Q3 2016 Q4 2016 First Mortgage Bonds $140 million issued May issue $100 million $133 million redeemed Bank Loan Planning to issue $200 million Senior Secured Senior Unsecured Outlook S&P A- BBB Stable Moody’s A1 A3 Stable Total Liqui
Slide 16: Guidance
▪ Retail delivery growth of approximately 1%, weather-adjusted and excluding one large paper company; ▪ Average hydro conditions for the remainder of the year; ▪ Wind generation for the remainder of the year based on 5 years of historic levels or forecast studies when historical data is not availabl
Slide 17: 2016 Key Initiatives
2016 Key Initiatives 1. Maintain high level of operational excellence 2. Complete construction of Carty Generating Station 3. Pursue an accelerated renewables RFP 4. Complete and file the 2016 Integrated Resource Plan 17
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