Portland General Electric Co · NYSE:POR
Portland General Electric — Edison Electric Institute Financial Conference 2006
33 slides from Portland General Electric's conference presentation, Nov 7, 2006
Slide 1: Leadership in a Growing Market
Leadership in a Growing Market Copyright © 2006 Portland General Electric. All Rights Reserved. Exhibit 99.1
Slide 2: Edison Electric Institute Financial Conference
Edison Electric Institute Financial Conference A presentation by November 7, 2006 Jim Piro Executive VP Finance, CFO & Treasurer Peggy Fowler CEO and President Bill Valach Director, Investor Relations
Slide 3: Cautionary Statement
Cautionary Statement 3 This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements are statements of expectations, beliefs, plans, objectives, assumpt
Slide 4: Independence Day
Independence Day April 3, 2006
Slide 5: Through a Storm
Through a Storm 5 Enron bankruptcy Western energy crisis Ownership uncertainty Customer satisfaction decline
Slide 6: We Delivered Steady Success
We Delivered Steady Success 6 Ongoing operational excellence Investment-grade credit ratings Port Westward Maintained focus on core business High levels of customer satisfaction
Slide 7: PGE Creating Value Customers & Shareholders
PGE Creating Value Customers & Shareholders High Customer Value Active Corporate Responsibility Reliable Reasonably Priced Supply Engaged, Valued Workforce Strong Financial Performance
Slide 8: PGE Creating Value
PGE Creating Value High Customer Value Active Corporate Responsibility Reliable Reasonably Priced Supply Engaged, Valued Workforce Strong Financial Performance
Slide 9: High Customer Value
High Customer Value 9 Customers Industrial Residential Commercial 2005 Revenues 10-year annualized load growth of 1.4% * Industrial Residential Commercial 2005 Energy Sales and Deliveries * Adjusted for weather. Adjusted for SP Newsprint and Oregon Steel.
Slide 10: High Customer Value: Industrial Customer Base
High Customer Value 10 Industrial Customer Base No single customer accounts for more than 4% of retail revenues Manufacturing Paper Retail Industrial Load * Technology Services Metals * Data based on NAICS classifications. Twelve months ending December 31, 2005. Tech nology Intel Corporation Siltron
Slide 11: High Customer Value: Focus on Customer Service
High Customer Value 11 Focus on Customer Service Customer satisfaction Account managers Peak staffing Web site and voice system Advanced metering infrastructure
Slide 12: High Customer Value: Operational Excellence
High Customer Value 12 Operational Excellence System reliability Invest $175 to $200 million annually Case study: Heat wave Quality and reliability program
Slide 13: PGE Creating Value
PGE Creating Value High Customer Value Active Corporate Responsibility Reliable Reasonably Priced Supply Engaged, Valued Workforce Strong Financial Performance
Slide 14: Active Corporate Responsibility
Active Corporate Responsibility 14 Corporate Responsibility Highest levels of ethics and compliance Active role in community Collaborative relationships Environmental stewardship Renewable power and energy efficiency
Slide 15: Oregon Regulation
Active Corporate Responsibility 15 Oregon Regulation Oregon Public Utility Commission Three-member governor-appointed Commission with four-year terms Rates set based on a forward-test year PGE actively communicates and manages the OPUC relationship Commission: Lee Beyer Commission Chairman Democrati
Slide 16: PGE Creating Value
PGE Creating Value High Customer Value Active Corporate Responsibility Reliable Reasonably Priced Supply Engaged, Valued Workforce Strong Financial Performance
Slide 17: Reliable Reasonably Priced Supply: Integrated Resource Plan
Reliable Reasonably Priced Supply 17 Integrated Resource Plan 2005 Power Sources 1 Purchased Hydro 2 Coal 2007 Power Sources 1 Gas Purchased Hydro 2 Coal Gas Total PGE System Capability 2,465 MW 2005 Peak Load 3,606 MW Total PGE System Capability 2,865 MW 2007 Peak Load 3,834 MW (1) As a percent of
Slide 18: Port Westward
August, 2001 March, 2006 Reliable Reasonably Priced Supply June, 2006 18 Port Westward 400MW gas-fired plant 6,826 heat rate (without duct-firing) $287 million (including $29 million AFUDC) Online first quarter 2007
Slide 19: Biglow Canyon Wind Farm
Reliable Reasonably Priced Supply 19 Biglow Canyon Wind Farm Columbia Gorge, eastern Oregon 450MW total capacity Phase 1: 126 MW $256 million (including $9 million AFUDC) Online 2007 - 2008
Slide 20: Hydro Relicensing
Reliable Reasonably Priced Supply Round Butte 20 Hydro Relicensing 30- to 50-year renewals Pelton/Round Butte 50 years Clackamas/Oak Grove 45 years* North Fork 45 years Sullivan 30 years $180 million (excluding AFUDC) 2006 through 2010 Fish passage and environmental work * Discussions in process.
Slide 21: PGE Creating Value
PGE Creating Value High Customer Value Active Corporate Responsibility Reliable Reasonably Priced Supply Engaged, Valued Workforce Strong Financial Performance
Slide 22: Engaged, Valued Workforce
Engaged, Valued Workforce 22 Valued Workforce Scorecard driven Workforce development Succession planning
Slide 23: PGE Creating Value
PGE Creating Value High Customer Value Active Corporate Responsibility Reliable Reasonably Priced Supply Engaged, Valued Workforce Strong Financial Performance
Slide 24: Financial Highlights
12 / 31 / 05 12 / 31 / 04 12 / 31 / 03 Financial Statements (in millions) Outlook Sr. Unsecured Sr. Secured Bond Ratings (current) Strong Financial Performance 24 100% 100% 100% Total 41.7% 41.0% 44.2% Total Debt 0.9% 1.0% 1.2% Preferred 57.4% 58.0% 54.6% Equity Capital Structure $64 $92 $59 Net Inc
Slide 25: Financial Highlights
Strong Financial Performance 2006 2005 2004 2003 25 Financial Highlights Boardman deferral request 2007 legislative session 2007 general rate case Boardman outage Senate Bill 408 $56 - $63 Boardman deferral request Annual variance tariff Annual variance tariff Responses Boardman outage Multnomah Cou
Slide 26: General Rate Case Filing
Strong Financial Performance 26 General Rate Case Filing PGE Request: 8.9% or $143 million rate increase 10.75% ROE (current level 10.50%) 56% equity capital structure (current level 52%) Annual variance tariff – power cost variances (intra-year) Annual update tariff – power cost annual reset Timing
Slide 27: General Rate Case Status
Strong Financial Performance 27 General Rate Case Status Stipulations Resource Valuation Mechanism (RVM): net variable power costs 1/1/07 1/16/07 Operating and maintenance costs Depreciation Rate design Key Outstanding Items Cost of capital Power costs and adjustment mechanisms Timing: 11.15.06 Open
Slide 28: Other Regulatory and Legal Considerations
Strong Financial Performance 28 Other Regulatory and Legal Considerations Boardman Coal Plant deferral Senate Bill 408 (utility taxes) Trojan Nuclear Plant: Recovery of return on investment OPUC proceedings Class action proceedings California wholesale receivable
Slide 29: Capital Expenditures
Strong Financial Performance Project (in millions) 1 2010 2009 2008 2007 2006 29 Capital Expenditures Attractive growth opportunities through capital investment in core utility assets Earnings expected to grow 4 to 5 percent per year over the long term $237 $278 $333 $484 $375 Total capital expendit
Slide 30: S&P BBB: 50% to 60%
Strong Financial Performance 30 S&P BBB: 50% to 60% Average Rate Base (in millions) Note: S&P target credit statistic range based on Business Position 5. Debt/Capitalization
Slide 31: Earnings Guidance and Dividends
Earnings Guidance and Dividends 31 Earnings Guidance 2006: $0.90 to $1.00 per diluted share Includes impact of Boardman outage and no regulatory action on the deferral request of $46 million ($28 million after-tax, $0.45 per diluted share) Reflects $42 million ($25 million after- tax, $0.40 per dilu
Slide 32: Strategy for Investment Success
Strategy for Investment Success Stability Vertically integrated, regulated business Strong balance sheet/ credit ratings Experienced management team Supportive regulatory environment Growth Strong load and customer growth Necessary and prudent regulated rate base investment opportunities Earnings an
Slide 33: Investor Relations Contact Information
Investor Relations Contact Information 33 William J. Valach Director, Investor Relations 503.464.7395 [email protected] Portland General Electric Company 121 SW Salmon Street Suite 1WTC0403 Portland, Oregon 97204 www.PortlandGeneral.com
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