UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 7, 2006
PORTLAND GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
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Oregon |
Commission File Number |
93-0256820 |
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(State or other jurisdiction of incorporation or organization) |
1-5532-99 |
(I.R.S. Employer Identification No.) |
121 SW Salmon Street, Portland, Oregon 97204
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (503) 464-8000
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
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o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
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o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
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o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
|
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Section 7 - Regulation FD
Item 7.01 Regulation FD Disclosure.
The information included in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished to comply with Regulation FD, but is not considered to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
On November 7, 2006, members of Portland General Electric Company's management will participate in the Edison Electric Institute Financial Conference in Las Vegas, NV, at which the presentation attached hereto as Exhibit 99.1 will be used. A live webcast of the presentation can be accessed at the Company's website, www.portlandgeneral.com.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
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(d) |
Exhibits |
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Exhibit |
Description |
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(99) |
Additional exhibits |
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99.1 |
Portland General Electric Company slide presentation to be used at the Edison Electric Institute Financial Conference in Las Vegas, NV on November 7, 2006 |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PORTLAND GENERAL ELECTRIC COMPANY | |
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(Registrant) |
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Date November 7, 2006 |
By: |
/s/ Kirk M. Stevens |
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Kirk M. Stevens Controller and Assistant Treasurer |
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Leadership in a
Growing Market
Copyright © 2006 Portland General Electric. All Rights Reserved.
Exhibit 99.1
Edison Electric Institute
Financial Conference
November 7, 2006
A presentation by
Jim Piro
Executive VP Finance, CFO & Treasurer
Peggy Fowler
CEO and President
Bill Valach
Director, Investor Relations
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, assumptions or future events or performance. Words or phrases such as
"anticipates," "believes," "should," "estimates," "expects," "intends," "plans," "predicts,"
"projects," "will likely result,"
"will continue," or similar expressions identify forward-looking statements. The forward-looking statements in this
presentation include, but are not limited to, events related to the distribution of new
PGE common stock; expected
earnings; future growth; financial performance; power supply strategy and portfolio; expected operational date of new
generation plants; estimates related to the 2007 general rate case; estimates related to the accounting
application for
deferral of excess power costs related to the Boardman Plant outage; estimates related to California wholesale
receivables; investigations by the City of Portland, Oregon, with regard to rates charged by PGE and possible attempts
to
set rates for PGE customer located within the city; estimates related to Oregon Senate Bill 408 and recovery of
investment costs from the Trojan nuclear facility; infrastructure and resource investment opportunities; and operational
and company
goals.
Although PGE believes that the expectations reflected in any forward-looking statements are based on reasonable
assumptions, PGE can give no assurance that its expectations will be attained. Factors
that could cause actual results to
differ materially from those contemplated include, among others, events related; governmental policies; outcome of legal
and regulatory proceedings; changes in weather, hydroelectric, and energy market conditions;
wholesale energy prices;
operational factors affecting PGE's power generation facilities; growth and demographic patterns in PGE's service
territory; general political, economic, and financial market conditions; and other factors that might be described
from
time to time in PGE's filings with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by
law, PGE undertakes no obligation to update any forward-looking statement to reflect
events or circumstances after the
date on which such statement is made or to reflect the occurrence of unanticipated events.
Cautionary Statement
3
Independence Day
April 3, 2006
Through a Storm
Enron bankruptcy
Western energy crisis
Ownership uncertainty
Customer satisfaction decline
5
We Delivered Steady Success
Ongoing operational excellence
Investment-grade credit ratings
Port Westward
Maintained focus on core business
High levels of customer satisfaction
6
PGE
Creating Value
High Customer Value
Active Corporate Responsibility
Reliable Reasonably Priced Supply
Engaged, Valued Workforce
Strong Financial Performance
Customers &
Shareholders
PGE
Creating Value
High Customer Value
Active Corporate Responsibility
Reliable Reasonably Priced Supply
Engaged, Valued Workforce
Strong Financial Performance
High Customer Value
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.
9
High Customer Value
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.
Technology
Intel Corporation
Siltronic Corporation
Retail
Nike, Inc.
Adidas America Inc.
Manufacturing
The Boeing Company
Precision Cast Parts
10
High Customer Value
Focus on Customer Service
Customer satisfaction
Account managers
Peak staffing
Web site and voice system
Advanced metering
infrastructure
11
High Customer Value
Operational Excellence
System reliability
Invest $175 to $200 million
annually
Case study: Heat wave
Quality and reliability program
12
PGE
Creating Value
High Customer Value
Active Corporate Responsibility
Reliable Reasonably Priced Supply
Engaged, Valued Workforce
Strong Financial Performance
Active Corporate Responsibility
Corporate Responsibility
Highest levels of ethics and compliance
Active role in community
Collaborative relationships
Environmental stewardship
Renewable power and energy efficiency
14
Active Corporate Responsibility
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
Democratic
Party
Ray Baum
Commissioner
Republican Party
John Savage
Commissioner
Democratic Party
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PGE
Creating Value
High Customer Value
Active Corporate Responsibility
Reliable Reasonably Priced Supply
Engaged, Valued Workforce
Strong Financial Performance
Reliable Reasonably Priced Supply
Integrated Resource Plan
2005 Power Sources1
Purchased
Hydro2
Coal
2007 Power Sources1
Gas
Purchased
Hydro2
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 peak load.
(2) Include long-term hydro contracts.
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August, 2001
March, 2006
Reliable Reasonably Priced Supply
Port Westward
400MW gas-fired plant
6,826 heat rate
(without duct-firing)
$287 million
(including $29 million AFUDC)
Online first quarter 2007
June, 2006
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Reliable Reasonably Priced Supply
Biglow Canyon Wind Farm
Columbia Gorge,
eastern Oregon
450MW total capacity
Phase 1: 126 MW
$256 million
(including $9 million AFUDC)
Online 2007 - 2008
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Reliable Reasonably Priced Supply
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.
Round Butte
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PGE
Creating Value
High Customer Value
Active Corporate Responsibility
Reliable Reasonably Priced Supply
Engaged, Valued Workforce
Strong Financial Performance
Engaged, Valued Workforce
Valued Workforce
Scorecard driven
Workforce development
Succession planning
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PGE
Creating Value
High Customer Value
Active Corporate Responsibility
Reliable Reasonably Priced Supply
Engaged, Valued Workforce
Strong Financial Performance
12/ 31/05
12/ 31/04
12/ 31/03
Financial Statements
(in millions)
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 Income
Outlook
Sr. Unsecured
Sr. Secured
Bond Ratings (current)
Stable
BBB+
A-
Fitch
Stable
Baa2
Baa1
Moody’s
Negative
BBB
BBB+
S&P
Strong Financial Performance
Financial Highlights
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Strong Financial Performance
Financial Highlights
Boardman deferral
request
2007 legislative
session
2007 general rate
case
Boardman outage
Senate Bill 408
$56 - $63
2006
2005
2004
2003
Boardman deferral
request
Annual variance tariff
Annual variance tariff
Responses
Boardman outage
Multnomah County
Business Income Tax
Poor hydro
Poor hydro
California receivable
Power Contract
disallowances
Poor hydro
Issues
$64
$92
$59
Net Income (in millions)
25
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:
11.15.06
Opening
briefs
due
12.01.06
Closing
briefs
due
12.12.06
Oral
arguments
01.12.07
Commission
decision (tentative)
01.14.07
Effective date /
Statutory deadline
(tentative)
Strong Financial Performance
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Strong Financial Performance
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
Opening
briefs
due
12.01.06
Closing
briefs
due
12.12.06
Oral
arguments
01.12.07
Commission
decision (tentative)
01.14.07
Effective date /
Statutory deadline
(tentative)
27
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
Strong Financial Performance
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Strong Financial Performance
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 expenditures
Depreciation and amortization
Total project capital expenditures
Ongoing capital expenditures4
Port Westward
Hydro relicensing
Biglow Wind Farm: Phase I 2
Boardman emissions control3
Advanced metering infrastructure3
Project (in millions)1
$199
$179
$176
$185
$218
$37
$200
$83
$195
$153
$180
$308
$176
$210
$165
–
$16
–
$18
$3
2010
–
$32
–
$18
$33
2009
2008
2007
2006
–
$62
–
$18
$73
$12
$41
$225
–
$30
$159
$28
$22
–
$1
(1) Does not include AFUDC.
(2) Does not include potential Phases II and III.
(3) Under review.
(4) Includes maintenance and upgrades on transmission and existing generation as well as new customer connects.
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S&P BBB: 50% to 60%
Strong Financial Performance
Average Rate Base (in millions)
Note: S&P target credit statistic range based on Business Position 5.
Debt/Capitalization
30
Earnings Guidance and Dividends
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 diluted share) of
potential customer refunds for Senate
Bill 408
2007: $1.70 to $1.80 per diluted share
Does not include any ongoing impacts
of Senate Bill 408
Earnings expected to grow by 4 to 5
percent per year over the long term
Dividends
Current annualized dividend of 90
cents per share
Over the long term, we expect a
target dividend payout ratio in the
60 percent range
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Strategy for Investment Success
Portland General Electric is a well-capitalized, stable
company with on-going growth opportunities
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 and dividend
growth
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William J. Valach
Director, Investor Relations
503.464.7395
William.Valach@pgn.com
Portland General Electric Company
121 SW Salmon Street
Suite 1WTC0403
Portland, Oregon 97204
www.PortlandGeneral.com
Investor Relations Contact Information
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