Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (October 2023)
28 slides from Portland General Electric's investor presentation, Oct 27, 2023
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC October 27, 2023
Slide 2: Cautionary statement
Cautionary statement Information Current as of October 27, 2023 Except as expressly noted, the information in this presentation is current as of October 27, 2023 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 — and should not be relied upon a
Slide 3: The Company
The Company
Slide 4: PGE at a glance
PGE at a glance 3,300+ MWs of Generation Beaver Quick facts Port Westward 1 & 2 Washington Tucannon River • Vertically integrated electric utility encompassing OREGON WASHINGTON Wind Farm generation, transmission and distribution 26 Eastern Oregon Columbia River • Approximately 926,000 retail custom
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: Reliability and resiliency investments
Reliability and resiliency investments Capital expenditures forecast(1) $1,475 $75 $40 $415 $1,050 $130 $955 $180 $110 $155 $800 $800 $100 $80 $80 $80 $600 $570 $570 $570 $560 $165 $150 $150 $150 $150 2023 2024 2025 2026 2027 Generation T&D General, Technology, Strategic Clearwater Wind Constable (f
Slide 8: Clean energy transition
Clean energy transition Advancing toward a clean energy future PGE has taken significant steps to decarbonize its system: • 2022 emissions 25% below HB 2021 baseline levels (average emissions 2010-2012) Meaningful steps underway to meet 2030 emissions targets: • Removing coal from our portfolio to m
Slide 9: Resource planning and procurement
Resource planning and procurement 2023 IRP/CEP 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 ❑ Q4 2023 Final RFP issuance Community-Based Ren
Slide 10: Illustrative rate base growth
Illustrative rate base growth • PGE’s five-year base plus Clearwater Wind, Seaside and Constable (formerly Evergreen) battery capital expenditure forecast of $5.1 billion drives 7.5% average rate base growth from 2022 base year • Illustrative incremental RFP opportunities(2) potentially increase ave
Slide 11: 2024 General Rate Case
2024 General Rate Case Rate Case Key Terms- Through 6th Stipulation Rate Base $6.2 billion Rate Base Increase $742 million, 14% ROE 9.5% Capital Structure 50/50 Cost of Debt 4.485% Cost of Capital 6.993% Revenue Requirement Increase $391 million, including $183 million for power costs • Recovery of
Slide 12: Key Strengths
Key Strengths
Slide 13: Focus on customers
Focus on customers #1 #3 Top quartile No.1 renewable Environmental No. 3 utility in system energy program in Champion the U.S. for reliability(1) the nation for 14 Utility Trusted Brand & customer years(2) Customer Engagement™ experience Edison Electric Institute Residential Study Escalent 2022 Nati
Slide 14: Long-term financial performance
Long-term financial performance $2.75(1) $2.72 $2.74(2) $2.65(3)(6) $2.39 $2.60(2) $2.60(3)(6) EPS Long-term (diluted) $1.72(1) 5% to 7%(3) earnings growth from 2022 adjusted base year Adjusted Non-GAAP Guidance(6) (diluted) 2019 2020 2021 2022 2023E (2) Accounting ROE(5) 8.4% 6.0% 9.2% 8.5% 8.3% -
Slide 15: Proven dividend growth
Proven dividend growth $1.88(4) Dividends $1.79 declared per $1.70 common share(3) $1.59 $1.52 $1.43 $1.34 $1.26 $1.18 Target Payout 70% $1.12 Ratio 60% Actual Payout Ratio (5) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E Long-term dividend growth guidance of 5-7%(4) (1) Compound Annual Growth
Slide 16: Liquidity and financing
Liquidity and financing Ratings S&P Moody’s Total Liquidity: $925 million as of September 30, 2023 (dollars in millions) Senior Secured A A1 Cash Senior Unsecured BBB+ A3 $47 Commercial Paper A-2 P-2 Outlook Stable Stable Letters of Actual and expected 2023 Credit debt financings Q1 Q2 Q3 Q4 $128 (d
Slide 17: Environmental, Social and Governance
Environmental, Social and Governance
Slide 18: Environmental, social, & governance highlights
Environmental, social, & governance highlights Decarbonize Electrify Perform In 2022, PGE served 39% of customer load from specified non-emitting energy sources. 2022 emissions were 25% below HB 2021 baseline levels (average emissions 2010-2012) GHG Emissions Reduction Brought the first-of-its scale
Slide 19: Diverse and experienced Board
Diverse and experienced Board Track record of thoughtful refreshment enables us to have a Board with the Director Committee Other Public experience and diverse perspectives Name Age Since Industry/Experience Diversity Membership(1) Boards needed to oversee our business Dawn Farrell • Finance 63 2022
Slide 20: Diversity, equity, and inclusion
Diversity, equity, and inclusion Committed to DEI across our business • Partners and suppliers: Increased our supplier diversity to 14% of total supplier spending in 2022, up from 10% in 2021 Workforce by Gender(1) • Awareness, education, and training: Racial equity 0.3% education for our board, lea
Slide 21: Appendix
Appendix
Slide 22: 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 power in a in 2020 and one in 2022 to protect limited, high-risk lives, property and public space
Slide 23: Constructive regulatory / policy environment
Constructive regulatory / policy environment 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 rene
Slide 24: 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 1. • PGE can recover 80% of
Slide 25: 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 14.4 PGE - Sch. 83 10.7 EEI U.S. Average 16.2 EEI U.
Slide 26: 2023 Earnings Sensitivities
2023 Earnings Sensitivities Sensitivity Full-Year Adjusted EPS Impact Load Growth - Residential(1) ± 1% ± $0.06 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 ± $0.02 Effective Tax Rate ± 1% ± $0.03 (1) A
Slide 27: Non-GAAP financial measures
Non-GAAP financial measures This press release 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
Slide 28: 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
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