Portland General Electric Co · NYSE:POR
Portland General Electric — FY2016 Earnings Presentation
15 slides from Portland General Electric's earnings presentation, Feb 17, 2017
Slide 1: Portland General Electric Earnings Conference Call Fourth Quarter and Full Year 2016
Portland General Electric Earnings Conference Call Fourth Quarter and Full Year 2016 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Information Current as of February 17, 2017 Except as expressly noted, the information in this presentation is current as of February 17, 2017 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2016 — and should not be relied upon as bei
Slide 3: Leadership Presenting Today
Leadership Presenting Today Jim Lobdell Senior VP of Finance, CFO & Treasurer Jim Piro President & CEO On Today's Call • Financial performance • Operational update • Economy and customers • Capital expenditures forecast • 2016 Integrated Resource Plan (IRP) • 2018 General Rate Case • Financial updat
Slide 4: 2016 Earnings Results
2016 Earnings Results NI in millions Q4 2016 Q4 2015 FY 2016 FY 2015 Net Income $61 $51 $193 $172 Diluted EPS $0.68 $0.57 $2.16 $2.04 2015 EPS $2.04 2016 EPS $2.16 4 Q1 Q1 Q2 Q2 Q3 Q4 Q3 Q4
Slide 5: Accomplishments and operational update
Accomplishments and operational update Most Trusted Brand, Customer Champion, & Environmental Champion in 2016 Market Strategies International Top Quartile Customer Satisfaction TQS Research Inc. and Market Strategies International Generating Plant Availability 93% Filed 2016 Integrated Resource Pla
Slide 6: Economic Update
• Oregon's economic expansion continued in 2016(1) • PGE's service area unemployment rate of 4.0 percent outperformed Oregon's rate of 4.6 percent and the national rate of 4.7 percent(2) • Residential customer count increased approximately 1.2 percent over the past year • Weather-adjusted 2017 energ
Slide 7: Capital Planning
Capital Planning 7 (1) Consists of board-approved ongoing CapEx and hydro relicensing per the 2016 Form 10-K filed on February 17, 2017 (2) Total estimated cost does not consider any amounts that may be received from sureties under the performance bond Current Capital Outlook • Board approved invest
Slide 8: Carty Generating Station update
Carty Generating Station update Carty Generating Station, our 440 MW natural gas baseload plant near Boardman, Ore. • Achieved 93 percent availability in first five months of operation • Capital costs included in customer prices as of 8/1/2016: $514M • Carty plant in-service, including AFDC, as of 1
Slide 9: 2016 Integrated Resource Plan
9 2016 Integrated Resource Plan Areas of Focus • Energy efficiency (135 MWa) and demand side actions (77 MW) • Investment / acquisition of renewables (175 MWa) to meet Oregon Clean Electricity Plan: IRP will position PGE to comply with 27% requirement by 2025 • Filling up to 850 MW capacity deficit
Slide 10: 2018 General Rate Case
2018 General Rate Case Key drivers: 10 Investments in the system to keep it safe, reliable and secure Includes: • Replacing assets at the end of their useful life • Strengthening the system to better prepare for storms, earthquakes, cyberattacks and other potential threats • Investments in operation
Slide 11: 2016 Income Statement Bridge
2016 Income Statement Bridge 11 2015 2016 Retail Revenue Wholesale & Other Revenues Power Costs O&M D&A Income Taxes Gross Margin Change: $69 Other Taxes $ in millions Interest
Slide 12: 2016 Drivers Bridge
2016 Drivers Bridge Carty Earnings $ 0.10 Carty Overage $ (0.02 ) Carty Legal $ (0.04 ) 2015 2016 Carty Power Portfolio Other Rate Base Increase '15 to '16 Other Change in Share Count O&M PTCs & Other Tax Credits 12
Slide 13: Liquidity and Financing
Liquidity and Financing Total Liquidity as of 12/31/2016 (in millions) Credit Facilities $ 660 Commercial Paper — Letters of Credit $ (56 ) Cash $ 6 Available $ 610 Ratings S&P Moody's Senior Secured A- A1 Senior Unsecured BBB A3 Commercial Paper A-2 Prime-2 Outlook Stable Stable ($ in millions) Q1
Slide 14: Guidance and Assumptions
Guidance and Assumptions 2017 EPS Guidance: $2.20 - $2.35 • Retail deliveries decline between zero and one percent, weather-adjusted; • Average hydro conditions for the year; • Wind generation for the year based on 5 years of historic levels or forecast studies when historical data is not available;
Slide 15: 2017 Key Initiatives
• Maintain high level of operational excellence • Work collaboratively with stakeholders to obtain acknowledgement of 2016 IRP and associated action plan • Achieve a fair and reasonable result in our 2018 General Rate Case 2017 Key Initiatives 15
Portland General Electric — FY2016 Earnings Presentation on 6ix