Document
false0000784977 0000784977 2019-11-01 2019-11-01


 
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 1, 2019

 
 
 
PORTLAND GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
Oregon
001-5532-99
93-0256820
(State or other jurisdiction
of incorporation)
(Commission
File Number)
     (I.R.S. Employer          
     Identification No.)          
121 SW Salmon Street, Portland, Oregon 97204
(Address of principal executive offices, including 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:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
(Title of class)
(Trading Symbol)
(Name of exchange on which registered)
Common Stock, no par value
POR
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

 





Item 2.02    Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02.

On November 1, 2019, Portland General Electric Company (PGE or the Company) issued a press release announcing its financial results for the three and nine month periods ended September 30, 2019. The press release is furnished herewith as Exhibit 99.1 to this Report.

Item 7.01    Regulation FD Disclosure.

The following information is furnished pursuant to Item 7.01.

At 11:00 a.m. ET on Friday, November 1, 2019, the Company will hold its quarterly earnings call and webcast, and will use a slide presentation in conjunction with the earnings call. A copy of the slide presentation is furnished herewith as Exhibit 99.2 to this Report.

Item 9.01
Financial Statements and Exhibits.

(d)
 
Exhibits.
99.1
 
99.2
 
104
 
Cover page information from Portland General Electric Company’s Current Report on Form 8-K filed November 1, 2019, formatted in iXBRL (Inline Extensible Business Reporting Language).


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 thereunto duly authorized.

 
 
 
 
PORTLAND GENERAL ELECTRIC COMPANY
 
 
 
 
(Registrant)
 
 
 
 
 
Date:
October 31, 2019
 
By:
/s/ James F. Lobdell
 
 
 
 
James F. Lobdell
 
                                                                             
 
 
Senior Vice President of Finance,
Chief Financial Officer and Treasurer


2
Exhibit


Exhibit 99.1
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13175112&doc=9
Portland General Electric
One World Trade Center
121 S.W. Salmon Street
Portland, Oregon 97204

News Release
 
 
 
 
 
 
November 1, 2019
 
 
 
 
 
 
 
Media Contact:
 
Investor Contact:
 
Andrea Platt
 
Chris Liddle
 
Corporate Communications
 
Investor Relations
 
Phone: 503-464-7980
 
Phone: 503-464-7458

Portland General Electric announces third quarter 2019 results

Maintaining full-year 2019 earnings guidance of $2.35-$2.50 per share, expecting to be in the lower half of the range
Accelerating clean energy efforts with progress on Integrated Resource Plan and filing of Transportation Electrification plan
Increasing capital expenditures with a focus on transmission and distribution upgrades

PORTLAND, Ore. -- Portland General Electric Company (NYSE: POR) today reported net income of $55 million, or 61 cents per diluted share, for the third quarter of 2019. This compares with net income of $53 million, or 59 cents per diluted share, for the third quarter of 2018. PGE reaffirmed its 2019 earnings guidance range of $2.35 to $2.50 per diluted share and expects to be in the lower half of the range.

“Our financial performance this quarter was strong. In a summer with milder temperatures and unfavorable hydro conditions, we effectively managed our power supply and benefited from increased wind and thermal production,” said Maria Pope, PGE president and CEO. “I am pleased to announce that we’ve broken ground on our Integrated Operations Center and are continuing to invest in our hydro facilities and distribution assets for a smarter and more resilient grid.”

The increase in third quarter earnings was driven by favorable net variable power costs compared with the third quarter of 2018. Higher operating expenses were driven by wildfire mitigation, vegetation management and other miscellaneous items. A decrease in third quarter earnings was attributable to the absence of the Carty Generation Station cash settlement that occurred in 2018.
Company Updates
Integrated Resource Plan (IRP)
In July 2019, PGE filed with the Public Utility Commission of Oregon (OPUC) its 2019 IRP. As part of the OPUC’s public review process, PGE is preparing to respond to comments provided by OPUC staff, consumer advocates, environmental groups and other stakeholders. PGE will request approval from the OPUC to issue one or more RFPs to acquire capacity and renewable resources following a final order expected in the first quarter of 2020. PGE is considering submission of a benchmark resource for both RFPs and will communicate its decision to submit a benchmark before doing so.



1




Transportation Electrification Plan
In September 2019, PGE filed its Transportation Electrification plan with the OPUC. The plan describes market conditions, PGE’s current and planned activities, potential system impacts from transportation electrification, and relation to Oregon’s carbon reduction goals.  The plan is required and aimed at accelerating transportation electrification in Oregon.
Capital Updates
PGE increased its capital plan by $145 million for the period 2019-2023. The company is planning to invest in projects to improve the resiliency and safety of transmission and distribution assets, as well as improving infrastructure resiliency and advancing an integrated grid.
2019 earnings guidance

PGE is reaffirming its 2019 guidance of $2.35 to $2.50 per diluted share and expects to be in the lower half of this range. This guidance is based on the following assumptions:
Flat weather-adjusted retail deliveries
Normal hydro conditions for the remainder of the year based on the current hydro forecast
Wind generation based on five years of historical levels or forecast studies when historical data is not available
Normal thermal plant operations
Depreciation and amortization expense between $400 million and $420 million
Operating and maintenance costs between $600 million and $620 million

Third Quarter 2019 earnings call and webcast — November 1, 2019

PGE will host a conference call with financial analysts and investors on Friday, November 1, 2019, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Friday, November 1, 2019, through 1 p.m. ET on Friday, November 8, 2019.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of Finance, CFO, and treasurer; and Chris Liddle, director, Investor Relations and Treasury, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and comprehensive income, condensed consolidated balance sheets and condensed consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

# # #

About Portland General Electric Company

Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon, serving 892,000 customers in 51 cities. For 130 years, PGE has been delivering safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. With approximately 3,000 employees across the state, PGE is committed to helping its customers and the communities it serves build a clean energy future. For more information, visit PortlandGeneral.com/CleanVision.


2



Safe Harbor Statement
Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the company’s generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or liability for third party property damage; and cyber security breaches of the company’s customer information system or operating systems, which may affect customer bills or other aspects of our operations. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise. Prospective investors should also review the risks, assumptions and uncertainties listed in the company’s most recent annual report on form 10-K and in other documents that we file with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time.


POR
Source: Portland General Company



3


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Dollars in millions, except per share amounts)
(Unaudited)

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
Revenues, net
$
538

 
$
525

 
$
1,570

 
$
1,469

Alternative revenue programs, net of amortization
4

 

 
5

 
(2
)
Total revenues
542

 
525

 
1,575

 
1,467

Operating expenses:
 
 
 
 
 
 
 
Purchased power and fuel
165

 
186

 
449

 
420

Generation, transmission and distribution
78

 
72

 
241

 
212

Administrative and other
74

 
49

 
223

 
188

Depreciation and amortization
103

 
96

 
305

 
281

Taxes other than income taxes
34

 
31

 
101

 
95

Total operating expenses
454

 
434

 
1,319

 
1,196

Income from operations
88

 
91

 
256

 
271

Interest expense, net
32

 
31

 
95

 
93

Other income:
 
 
 
 
 
 
 
Allowance for equity funds used during construction
2

 
2

 
7

 
8

Miscellaneous income, net
3

 

 
5

 

Other income, net
5

 
2

 
12

 
8

Income before income tax expense
61

 
62

 
173

 
186

Income tax expense
6

 
9

 
20

 
23

Net income
55

 
53

 
153

 
163

Other comprehensive income

 

 
2

 

Comprehensive income
$
55

 
$
53

 
$
155

 
$
163

 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (in thousands):







Basic
89,372


89,239


89,346


89,205

Diluted
89,594


89,239


89,555


89,205

 
 
 
 
 
 
 
 
Earnings per share:











Basic
$
0.61


$
0.59


$
1.71


$
1.82

Diluted
$
0.61


$
0.59


$
1.70


$
1.82

 
 
 
 
 
 
 
 


4


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
 
 
September 30,
2019
 
December 31,
2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
11

 
$
119

Accounts receivable, net
161

 
193

Unbilled revenues
73

 
96

Inventories
91

 
84

Regulatory assets—current
26

 
61

Other current assets
54

 
90

Total current assets
416

 
643

Electric utility plant, net
7,014

 
6,887

Regulatory assets—noncurrent
483

 
401

Nuclear decommissioning trust
46

 
42

Non-qualified benefit plan trust
37

 
36

Other noncurrent assets
158

 
101

Total assets
$
8,154

 
$
8,110

 
 
 
 

5


 
September 30,
2019
 
December 31,
2018
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
128

 
$
168

Liabilities from price risk management activities—current
26

 
55

Short-term debt

 

Current portion of long-term debt
50

 
300

Current portion of finance lease obligation
17

 

Accrued expenses and other current liabilities
293

 
268

Total current liabilities
514

 
791

Long-term debt, net of current portion
2,328

 
2,178

Regulatory liabilities—noncurrent
1,380

 
1,355

Deferred income taxes
378

 
369

Unfunded status of pension and postretirement plans
307

 
307

Liabilities from price risk management activities—noncurrent
100

 
101

Asset retirement obligations
268

 
197

Non-qualified benefit plan liabilities
100

 
103

Finance lease obligations, net of current portion
136

 

Other noncurrent liabilities
79

 
203

Total liabilities
5,590

 
5,604

Commitments and contingencies
 
 
 
Shareholders’ Equity:
 
 
 
Preferred stock, no par value, 30,000,000 shares authorized; none issued and outstanding as of September 30, 2019 and December 31, 2018

 

Common stock, no par value, 160,000,000 shares authorized; 89,371,974 and 89,267,959 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
1,217

 
1,212

Accumulated other comprehensive loss
(7
)
 
(7
)
Retained earnings
1,354

 
1,301

Total shareholders’ equity
2,564

 
2,506

Total liabilities and shareholders’ equity
$
8,154

 
$
8,110

 


6


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 
Nine Months Ended September 30,
 
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income
$
153

 
$
163

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
305

 
281

Deferred income taxes
3

 
2

Pension and other postretirement benefits
16

 
19

Allowance for equity funds used during construction
(7
)
 
(8
)
Decoupling mechanism deferrals, net of amortization
(6
)
 
2

(Amortization) Deferral of net benefits due to Tax Reform
(16
)
 
37

Other non-cash income and expenses, net
38

 
8

Changes in working capital:
 
 
 
Decrease in accounts receivable and unbilled revenues
50

 
12

(Increase)/decrease in inventories
(7
)
 
2

Decrease in margin deposits, net
4

 
6

(Decrease)/increase in accounts payable and accrued liabilities
(25
)
 
17

Other working capital items, net
25

 
19

Other, net
(31
)
 
(24
)
Net cash provided by operating activities
502

 
536

Cash flows from investing activities:
 
 
 
Capital expenditures
(407
)
 
(401
)
Sales of Nuclear decommissioning trust securities
11

 
11

Purchases of Nuclear decommissioning trust securities
(8
)
 
(9
)
Proceeds from Carty settlement

 
120

Other, net
(2
)
 
1

Net cash used in investing activities
(406
)
 
(278
)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of long-term debt
200

 

Payments on long-term debt
(300
)
 

Dividends paid
(99
)
 
(93
)
Other
(5
)
 
(4
)
Net cash used in financing activities
(204
)
 
(97
)
(Decrease) increase in cash and cash equivalents
(108
)
 
161

Cash and cash equivalents, beginning of period
119

 
39

Cash and cash equivalents, end of period
$
11

 
$
200

 
 
 
 
Supplemental cash flow information is as follows:
 
 
 
Cash paid for interest, net of amounts capitalized
$
73

 
$
72

Cash paid for income taxes
21

 
20


7


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING STATISTICS
(Unaudited)

 
Three Months Ended September 30,
 
2019
 
2018
Revenues (dollars in millions):
 
 
 
 
 
 
 
Retail:
 
 
 
 
 
 
 
Residential
$
218

 
40
%
 
$
224

 
43
 %
Commercial
167

 
31

 
171

 
32

Industrial
50

 
9

 
55

 
10

Direct access
13

 
2

 
9

 
2

Subtotal
448

 
82

 
459

 
87

Alternative revenue programs, net of amortization
4

 
1

 

 

Other accrued (deferred) revenues, net
4

 
1

 
(11
)
 
(2
)
Total retail revenues
456

 
84

 
448

 
85

Wholesale revenues
72

 
13

 
67

 
13

Other operating revenues
14

 
3

 
10

 
2

Total revenues
$
542

 
100
%
 
$
525

 
100
 %
 
 
 
 
 
 
 
 
Energy deliveries (MWh in thousands):
 
 
 
 
 
 
 
Retail:
 
 
 
 
 
 
 
Residential
1,646

 
24
%
 
1,712

 
27
 %
Commercial
1,738

 
26

 
1,837

 
28

Industrial
822

 
12

 
844

 
13

Subtotal
4,206

 
62

 
4,393

 
68

Direct access:
 
 
 
 
 
 
 
Commercial
195

 
3

 
170

 
2

Industrial
373

 
5

 
368

 
6

Subtotal
568

 
8

 
538

 
8

Total retail energy deliveries
4,774

 
70

 
4,931

 
76

Wholesale energy deliveries
2,015

 
30

 
1,529

 
24

Total energy deliveries
6,789

 
100
%
 
6,460

 
100
 %
 
 
 
 
 
 
 
 
Average number of retail customers:
 
 
 
 
 
 
 
Residential
781,223

 
88
%
 
773,514

 
88
 %
Commercial
109,589

 
12

 
110,028

 
12

Industrial
193

 

 
200

 

Direct access
632

 

 
604

 

Total
891,637

 
100
%
 
884,346

 
100
 %





8


PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING STATISTICS, continued
(Unaudited)


Three Months Ended September 30,

2019

2018
Sources of energy (MWhs in thousands):







Generation:







Thermal:











Natural gas
2,881


44
%

2,777


45
%
Coal
1,450


22


1,054


17

Total thermal
4,331


66


3,831


62

Hydro
261


4


258


4

Wind
598


9


475


8

Total generation
5,190


79


4,564


74

Purchased power:







Term
1,000


15


1,208


20

Hydro
241


4


325


5

Wind
100


2


85


1

Total purchased power
1,341


21


1,618


26

Total system load
6,531


100
%

6,182


100
%
Less: wholesale sales
(2,015
)



(1,529
)


Retail load requirement
4,516




4,653









The following table indicates the number of heating and cooling degree-days for the three months ended September 30, 2019 and 2018, along with 15-year averages based on weather data provided by the National Weather Service, as measured at Portland International Airport:


 
Heating Degree-days
 
Cooling Degree-days
 
2019
 
2018
 
Avg.
 
2019
 
2018
 
Avg.
July
3

 
2

 
6

 
176

 
289

 
179

August

 
6

 
6

 
216

 
238

 
190

September
80

 
61

 
63

 
70

 
48

 
71

Totals for the quarter
83

 
69

 
75

 
462

 
575

 
440

Increase/(decrease) from the 15-year average
11
%
 
(8
)%
 
 
 
5
%
 
31
%
 
 


9
q32019earningsslidesfina
Exhibit 99.2 Portland General Electric Earnings Conference call Third quarter 2019


 
Cautionary statement Information current as of November 1, 2019 Except as expressly noted, the information in this presentation is current as of November 1, 2019 — the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 — and should not be relied upon as being current as of any subsequent date. PGE undertakes no duty to update this presentation, except as may be required by law. Forward-looking statements Statements in this presentation that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the company’s generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or liability for third party property damage; and cyber security breaches of the company’s customer information system or operating systems, which may affect customer bills or other aspects of our operations. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this presentation are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this presentation, whether as a result of new information, future events, changes in assumptions or otherwise. Prospective investors should also review the risks, assumptions and uncertainties listed in the company’s most recent annual report on form 10-K and in other documents that we file with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time. 2


 
Leadership presenting today Maria Pope President and CEO On today's call • Financial performance • Economic update • Integrated Resource Plan • Capital planning update • Financial update Jim Lobdell Senior VP of Finance, CFO & Treasurer 3


 
Third quarter 2019 financial results Q3 2019 Q3 2018 Net income (in $ millions) $55 $53 Diluted earnings per share (EPS) $0.61 $0.59 $0.64 $0.82 - $0.79(1) $0.72 $0.61 $0.59(2) $0.51 $0.55 $0.28 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 Diluted EPS: 2018 Diluted EPS: $2.35 - $2.50 $2.37 (1) Estimates based on 2019 guidance range 4 (2) Includes $0.10 related to the Carty Generating Station cash settlement


 
Economic update Continued growth expected • Unemployment rate of 3.5% in our service area is below the national average of 4%(1) • Oregon median household income growth ranked the second fastest in nation(2) • High tech manufacturing and data centers are driving growth (1) PGE-3 County Average, September 2019, Source: State of Oregon Employment Department 5 (2) US Census Bureau, data for 2018


 
2019 Integrated Resource Plan July 2019 Q3-Q4 2019 Q1 2020 IRP filed Comments filed by Staff/ Staff memorandum and Stakeholders/PGE final order expected The plan reflects our focus on meeting customer needs and addressing stakeholder feedback Action Plan • Customer resource actions - increased energy efficiency, demand response, storage and dispatchable standby generation • Renewable resource actions - a renewable RFP of 150 MWa, estimated online 2023 • Capacity resource actions - a multi-stage procurement process for approximately 595 MW of cost-competitive capacity 6


 
Third quarter 2019 earnings bridge $0.26 $2.10 $(0.10) $0.61 $0.59 $(0.07) $(0.06) $(0.01) Q3 2018 Revenues, Carty Distribution Customer and Other Q3 2019 purchased Administrative power and fuel(1) Expenses Note: Values shown represent diluted earnings per share 7 (1) Revenues include retail revenues, wholesale revenues and other operating revenues


 
Capital planning 800 $865 700 $620 600 $595 500 $500 $500 400 300 200 100 0 2019 2020 2021 2022 2023 Ongoing capital expenditures Wheatridge Renewable Energy Facility Integrated Operations Center Investments include: • Updating, replacing aging generation, transmission and distribution equipment • Building a smarter, more resilient grid • Investments to construct the Integrated Operations Center • Adding 100 MW of wind generation at Wheatridge Renewable Energy Facility 8 Note: Capital expenditures for 2019 through 2023 exclude allowance for funds used under construction. Dollar values in millions.


 
Liquidity and financing Total Liquidity 2019 Ratings S&P Moody's (as of 9/30/19) (in $ millions) Credit Facilities $ 500 Senior Secured A A1 Letters of Credit 160 Senior Unsecured BBB+ A3 Cash 11 Commercial Paper A-2 Prime-2 Available $ 671 Outlook Positive Stable Financings Q1 2019 Q2 2019 Q3 2019 Q4 2019 Issued Issuing First Mortgage $200 million $270 million Bonds Repaid Repaid $300 million $50 million 9