Portland General Electric Co · NYSE:POR
Portland General Electric — Investor Presentation (April 2021)
33 slides from Portland General Electric's investor presentation, Apr 30, 2021
Slide 1: Investor Presentation
Investor Presentation PORTLAND GENERAL ELECTRIC APRIL 30, 2021
Slide 2: Cautionary statement
Cautionary statement Information Current as of April 30, 2021 Investor Relations Contacts Except as expressly noted, the information in this presentation is current as of April 30, 2021 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 — and should
Slide 3: The Company
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Slide 4: PGE at a glance
PGE at a glance 3,300+ MWs of Generation Beaver Washington Port Westward 1 & 2 Quick facts Tucannon River OREGON WASHINGTON • Vertically integrated electric utility encompassing generation, 26 Eastern Oregon transmission and distribution Columbia River Coyote Springs Biglow Canyon • 900,000 retail c
Slide 5: Investment thesis
Investment thesis Focusing Delivering Investing in a Building a High-growth on operational exceptional 100% regulated reliable and clean smarter more service area effectiveness customer utility energy future resilient grid and efficiency experiences Strong underlying operations • Continuing to imple
Slide 6: Strategic goals
Strategic goals Providing safe, reliable, affordable, clean and secure energy solutions to power our customers’ lives everyday Decarbonize Electrify Perform The power we supply to our Other areas of the economy, By improving work efficiency, the customers including transportation and safety of our c
Slide 7: Diverse, growing service area
Diverse, growing service area • Desirable core urban service area with strong population growth supporting retail and services (government, education, restaurants, healthcare, and other OREGON WASHINGTON services) 26 Columbia River • I-5 corridor and port access provide opportunity for transportatio
Slide 8: Constructive regulatory environment
Constructive regulatory environment Regulatory construct • Forward test year • Integrated Resource Planning (IRP) • Renewable Portfolio Standard (RPS) • Proven track record of achieving reasonable Commission-approved settlements Regulatory body • Public Utility Commission of Oregon • Governor-appoin
Slide 9: Capital Planning
Capital Planning $700 $100 $100 $550 $550 $550 $550 $85 $85 $85 $85 $400 $385 $385 $385 $385 $100 $80 $80 $80 $80 2021 2022 2023 2024 2025 Generation Transmission and Distribution General Business and Technlogy Integrated Operations Center Note: Capital expenditures exclude allowance for funds used
Slide 10: 2019 Integrated Resource Plan
2019 Integrated Resource Plan ActionJuly Plan2019 Q3-Q4 2019 January 2020 The plan reflects our focus on meeting customer Comments filed by needs and addressing Staff stakeholderPublic Memorandum feedback meeting Staff/Stakeholders/PGE due Final Order expected Customer Resource Actions Increased ene
Slide 11: Key strengths
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Slide 12: Focus on customers
Focus on customers #1 Top quartile Top quartile Trusted business No.1 renewable system customer partner & energy reliability satisfaction environmental program in the among large champion nation by Edison Electric Institute electric and enrollment for Cogent Syndicated Utility Trusted electric & gas
Slide 13: Decarbonizing our generation
Decarbonizing our generation Increasing carbon-free power sources for a clean and reliable energy future • Permanently closed Boardman Generating Station ending generation at the only coal-fired power plant in Oregon • Plan to transition customers off PGE-owned coal generation by 2030 Power sources
Slide 14: High-quality utility operations
High-quality utility operations Improving security, resiliency, and reliability for our Integrated Operations Center customers • A new, $200 million, 24/7 center for key operations • Integrated into the Western Energy Imbalance Market • Significantly improves seismic resilience, cyber and (EIM) to e
Slide 15: Strong liquidity position for growth
Strong liquidity position for growth Available liquidity(1) Actual and Expected Q1 Q2 Q3 Q4 2021 financings Long-Term Debt Revolving - - - $350 Credit Securities Facility(2) Available Credit + Short-term debt $200 - - - Cash + Cash Letters of Cash $500 Credit Equivalents $780 $145 $135 Ratings S&P M
Slide 16: Long-term financial performance
Long-term financial performance Net income, earnings per share, and ROE $2.75(2) $2.70(3) $2.37 $2.39 $2.55(3) $2.29(1) EPS (diluted) $2.10(1) Long-term $1.72(2) 4% to 6% Net income earnings growth (dollars in millions) $212 $214 from $187 (1) 2019 base year $155 2017(1) 2018 2019 2020 2021E (3) Acc
Slide 17: Proven dividend growth
Proven dividend growth (4) $1.68 (3) $1.56 $1.50 $1.41 $1.32 $1.24 $1.16 Target Payout 70% $1.07 $1.09 $1.11 Ratio Actual Payout Ratio 60% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Long-term dividend growth guidance of 5% to 7%(4) (1) Compound Annual Growth Rate from 2012 through 2021 (2) Co
Slide 18: Environmental, Social and Governance
Environmental, Social and Governance
Slide 19: Ambitious decarbonization goals
Ambitious decarbonization goals We aim to achieve companywide net zero greenhouse gas emissions by 2040 Reducing emissions associated with the power serving customers • Reducing greenhouse gas emissions associated with the power supplied to customers by at least 80% by 2030 (from 2010 levels) • Endi
Slide 20: Moving toward a carbon neutral future
Moving toward a carbon neutral future Renewable Additions (MW) 5,000 Increasing renewables in our portfolio • Layered approach balances near-term and long-term risks 4,000 and benefits for customers • Incremental renewable actions reduce near-term carbon 3,000 emissions and puts PGE on track to meet
Slide 21: Human capital management and culture
Human capital management and culture Our people and our culture are critical to our continued success. We seek to attract and retain a talented, motivated, and diverse workforce and to maintain a culture that reflects our core values, our drive for performance, and our commitment to acting with the
Slide 22: ESG accountability
ESG accountability Responsibility for environmental, social and governance (ESG) performance is integrated with the policies and principles that govern our company Board oversight Nominating and Corporate Governance Committee is responsible for reviewing significant ESG matters that pertain to the c
Slide 23: Robust governance
Robust governance PGE is committed to conducting business in accordance with high standards of corporate governance to achieve our mission while creating value for our shareholders, customers, and other stakeholders Effective board leadership and independent Board Membership oversight Race/Ethnic Di
Slide 24: Sustainability Reporting
Sustainability Reporting PGE is committed to transparency and has shared data on our operations and environmental impact as part of our sustainability reporting since 2013 PGE adopted the Edison Electric Institute’s PGE expanded its level of transparency Our 2019 Sustainability Key Metrics framework
Slide 25: Appendices
Portland General Electric APPENDICES
Slide 26: COVID-19 deferral
COVID-19 deferral COVID-19 did not have a material impact on PGE’s financial condition and cash flows in 2020 and the Company continues to have sufficient liquidity to meet the Company’s anticipated capital and operating requirements going forward • 2021 earnings guidance reflects the ongoing impact
Slide 27: Oregon wildfire deferral
Oregon wildfire deferral Wildfires in PGE’s service territory • In September 2020, Oregon experienced one of the most devastating wildfires on record. Three of Oregon’s named wildfires impacted PGE’s service territory Financial impact and regulatory recovery • Capital restoration is not anticipated
Slide 28: February 2021 storms deferral
February 2021 storms deferral Historic storms • In February a historic set of storms involving heavy snow, winds and ice impacted PGE’s service territory • Restored power to nearly half of customer base • Oregon Governor Kate Brown declared a state of emergency on February 13 Financial impact and re
Slide 29: Long-term debt maturity schedule
Long-term debt maturity schedule Manageable debt maturities $310 $275 $200 $175 $170 $169 $160 $150 $160 $150 $150 $130 $100 $105 $100 $100 $80 $70 $75 $70 $20 Note: Dollar values in millions. As of March 31, 2021. 29
Slide 30: 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 Power Cost Adjustment Mecha
Slide 31: Renewable portfolio standard
Renewable portfolio standard Additional renewable resources • As of 2019, PGE had the following qualifying renewable resources: Renewable Portfolio Standard 50% Type of Resource % of Retail Load 45% 35% Wind 11.0% 27% Low-Impact Hydro 2.5% 20% Solar & Other <1% 2020 2025 2030 2035 2040 • Renewable P
Slide 32: Decoupling Mechanism
Decoupling Mechanism The decoupling mechanism is intended to allow recovery of margin lost due to a reduction in sales of electricity resulting from customers’ energy efficiency and conservation efforts Collections under the decoupling mechanism are subject to an annual limitation of 2% of the appli
Slide 33: 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) EEI U.S. Average 13.8 EEI U.S. Average 11.5 PGE - Sch 7 (OR) 12.7
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