- Earnings call transcript Q3 2022

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Operator

Good day, and thank you for standing by. Welcome to Portland General Electric Company's Third Quarter 2022 Earnings Results Conference Call. Today is Tuesday, October 25, 2022. This call is being recorded. And as such, all lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After Relations turn remarks, call Senior [Operator Jardon Investor opening would Director Risk the Jaramillo. Finance, Electric's instructions] For General I conference Management, Portland over of and to go ahead, sir. Please

Jardon Jaramillo

happy Thank us can today. you, join you everyone. Dillon. morning, Good I'm

we've which The of Before some we at we forward-looking our our referencing two, the call. that will are I presentation results remarks available this to you slide such constitute to Referring materially inherent website to expectations. actual our remind morning would will uncertainties statements. that be begin from investors.portlandgeneral.com. a like supplement may slides differ on this you and caution morning, prepared our We discussion, risks throughout statements involve and

of on that and For XX-Q, XX-K Senior to President Ajello, our some actual results refer factors Maria Jim are reports materially, release which and earnings Finance, Vice our available press our of Pope, CEO; of periodic cause Forms and the differ and CCO. recent President Treasurer website. could please Leading to on CFO, discussion and today are most a our description

your prepared open their will the line Following we for remarks, questions.

call is over Now, turn Maria. to my it pleasure to the

Maria Pope

on of million of net Thank compared share, or long-term for I'll GAAP Beginning the moving or with quarter growth. $XX and start third reported you, slide This million share we've year. income by thank Good to third $X.XX everyone, in joining $X.XX Jardon. before quarter with results four, morning, morning, you us today. $XX last discussing per per our

performance this quarter were operating and growth. revenue results Our driven by solid strong

up be load from versus which digital technology growth, period customer’s a was continues came robust. to this and ago. same the First, quarter year primarily Industrial XX% load

see and we're our X%, We're we from Science steady as the CHIPS we areas to are that an quarter to well mitigation service also expectations expansions several companies Act, expenses State territory. flat wildfire grid Oregon, load O&M third we're is significant as expenses anticipate on X.X% operating work doing in continued several as the over up other of From and offset semiconductor moving in Overall, growth sectors, in in our immigration. reduce continuing an investments as to well resilience see with the were impact. the business last across next Given growth having years. semiconductor focus the The perspective, residential operating costs. as five pleased Overall hard savings largely to year's

remarkably all-time ranked were in and volatile Idaho Portland In many as West as hot so at record. as August on well markets and power record record warmest drought hottest the XXXX in XX also the temperatures Washington quarter on and set so temperatures, including Oregon, states July Third least as the California, hottest temperature cities, records. conditions.

could contracted and better higher to performed power plants power well have energy fuel due and we're generation to not Our market purchased Overall, energy usage. and with purchased and increased conditions significantly supply. meet expenses integrated operations

have in many mechanism we settlements open XXXX dockets. cost which OPSC the ongoing the resolved power ice November. the was approval now subject XXXX been wildfire, a have the to including months. XXXX that deferral an by million, $XXX We agreements storm, adjustment final share These for achieved totaling number certainty. expected are are greater pleased to have we provide of Overall, And dockets, order

to our my and early this like through for spirit to expected filing they $XX PGE request will constructive parties also detail, an financial or to impacts deferral these COVID leaders the walk I brought in other in the Jim the to appreciation XXXX. discussions. more of these year amortization million We add anticipate for updates all later but

nameplate highly a and to of announced two-thirds Resources process, clean one megawatts robust capacity. is energy this Montana Moving XXX competitive Clearwater our risk signed the step XXX-megawatt We to customers. remaining excuse development forward General the me, and significant the This of options Wind combination a after share. that broader generation a wind part approximately energy identifying in will for our Eastern price secure that at transfer with in transition. PPA. is XXX or benchmark agreement will We or generate of build Portland renewable increased Clearwater, megawatts for to Energy NextEra is -- a ownership PGE significant third five, Clearwater under of project, XX-year best a slide bids.

excited spring for to analysis expect reliability the been We energy end Clearwater As will great $XXX with of and on energy both second generation be our million launch our is and to forefront from file capital enhanced is on growth facility rebalance Clearwater affordability. to to the to we coal investments XXXX, to expect be has needs see opportunities portfolio. energy clean shortly. the PGE's investment our of long-term a generation complements RFPs These of The remove which by Clearwater plan Plan. an non-emitting plans of will our capital to the have on and that and about the projected at and planned next transition and XXXX, we Resource ahead. generated will we the more online years. half Jim not focus for come Integrated meet renewable additional the plan capacity. could the opportunity renewable remaining on not actions touch the XXXX. our and our fuel PGE impact incorporate In energy needed In evolving the structure, capital in

me operating risk turn let performance to Now, management. and

is renewable resources. also integrated We're the At analytics, and work we replacing record of We're analytics making and very using integrating for better monitor arise. doing AI storms. aging also performance this issues and the planned weather our winter of prepare digitalization technologies. modeling heat before issues improved resiliency equipment, are includes to making data we we're summer we costs growth have the the enhance to using better summer accommodating they and we're scaled use in wildfires. risk center, tools outages, better dynamic years. helps to advanced and short, much tough we're This We're that earlier, reducing navigated through us mentioned and heightened latest simplification of I and work distribution operation potential system, advancing proactively strategic the a track as reducing couple the reliability. As increasing in proactively and on addressing investments of In over predict last focused

crew improvements productivity and in for for that more field to we also This will customer focused our scheduling have example, systems digital work quarter, our crews. service our We're interaction. workflow for line seamless and platforms on our upgrading

of one particular cost environment, is especially concern current and periods. wholesale the management markets power challenging during critical Given area peak

conditions their heat. This quarter, power challenging intense of by market peak volatility are we very hour with summer Western $X,XXX occasions. experienced prices per megawatt head significant driven on multiple

strong critical risk balance sheet headwinds. were Our these we and navigated management as strategies

customers energy integrated we facilities In the vertically generating costs customers environment, serve helped utility our significantly to the leaders companies outstanding our customers to lower largest XX-generation saw purchased of ranging markets. market. model significant some the recognize at neighbors want I down work facing current the the of block Our in insulate global operations. the financial and are generation plant that be can from for frequently in open our and that energy power We the are we to the volatility of full our pressures. that know impact

with enabling to green tools in was us available energy ability on by as this Portland an the General's ahead, the intently making program the number of As full to to Renewable Lab one NREL. clean future. energy role clean, focused we year, power in manage the regions use we're the committed the our look Future the National Energy Clean take customers costs. program active or recognized Again to country We're providing help

and year. management Before we the In O&M turn us financials. call our our outlook. performance cost to to disciplined track coming keep discuss the quarter guidance our Jim, growth, I quarter, And and to on fourth growth for I'd the power like to like load to meet continued the expect touch I'd on over

for ahead, for growth beyond. XXXX significant in the we've Looking has investments progress year foundation and the will us made position laid XXXX in that this substantial

for sum, the reliable, results. we're In raising As EPS X% to Jim. this I'll long-term strong providing pleased reflecting that, over With to for ahead. and affordable we're such, is consistent guidance to steady safe, quarter growth X% with performance turn clean that X% our energy formula right opportunities our to investment it X%, demonstrating and

Jim Ajello

outlook. morning third on Thank cover I'll you, details providing Maria, everyone. before quarter additional results good our and our

power volatile continued strategy, Moving five, markets. of demand our and effective quarter execution long-term slide management the results risk in to reflect growth and third our

region. recovery. the year among they the Steady On high Residential QX year-over-year, quarter, Our weather-adjusted, XXXX, digital X.X%, X.X% improved sectors weather-adjusted solid, third on These continue growth in conditions basis, higher by stable but to challenging the load commercial year-over-year in increased to warmest demand. services compared industrial X.X% over X.X% XXXX which QX the throughout trends. XXXX. increased to weather-adjusted. to moderation non-weather-adjusted drive total loads increased in load and it XX% deliveries increased high-tech loads has continue unemployment Overall, average load temperatures see Commercial regional customer we also X.X% growth strong to for economy and count continues X.X% increased relative created our X.X% as over its remains a driving QX in year-over-year, XXXX, compared in QX throughout territory year segment as usage to as as by market Residential temperatures remained X.X% post-pandemic weather-adjusted, COVID-XX-related increased power customer continued or industrial development X.X% service West. record but X.X% XXXX. our decreased grew decreased but

optimizing were costs quarter-over-quarter. acutely to increase significant limit in earnings industrial total demand a In on quarter-over-quarter risk decrease revenues we up challenges. power price in power financial as high the cost XXXX. is energy I'll ‘XX by in and XXXX, pressures. from price our and change customer by customers, for market and Our competition, experienced deliveries X.X% led QX resource in the to outweighed this total region compared commercial our customer a effectively the headwinds cover we creating costs performance high-tech change load operational We load with exhibited We increase normalize the remain continues residential growing of $X.XX revenues, managed operations attributed of focused managing that growth $X.XX load was these to quarter-over-quarter. X.X% now risks while comparison. the and driven address $X.XX impacts price to in Industrial volatility,

will discuss million pushed XXXX that cost upper deferral, the a above mechanism shortly. conditions a power I again As threshold, adjustment QX saw in reminder, cost $XX which resulting power

and due offset $X.XX expense net efficiency a operating This quarter, decrease, drove of decrease. prices compared impacts our $X.XX regulatory region's peak balances impact technology the demand primarily of organization. in lower professional increase were These saw load the in We of revenue, volumes intangible XXXX, serve continued to that a and amortization largely expenses Higher a to increased the costs due periods investment costs. historically scarcity higher and drove the to impact because market increase in to reflecting a across software storm, was in restoration due are to services asset program peaks lower hot purchase depreciation EPS $X.XX during from summer. serving $X.XX to to resource a to load related

from $X.XX net was medical post-retirement Lastly, income other $X.XX items. offsetting few portion and impact of decrease a debt from PGE's from other expense due settlement interest higher and a to partially decrease offset a decrease of of items, we $X.XX a due higher the reflecting from by $X.XX income to XXXX gain had issuance increase a which the it to a of plan, to million QX due a $X.XX $XXX buyout taxes increase miscellaneous a was impacts

seven. slide Turning to

$XX amortization over project February allow Ice recovery We be that the As Combined, which Maria step in to toward XXXX and target. will the relating Clearwater, XXXX. million XXXX an later timing the under approval. be which matters generation allow and a plan of clarity future would will parties all beginning deferral, a full has also costs Wildfire provides January and of to to these yesterday, agreement Day in our slide matters to to we that $XX we as to the using a amortization outstanding clean ongoing and deferred project -- approach mentioned agreement roadmap years. customers XXXX some benefit two $XX XXXX. million PGE PCAM considering early OPUC, very executed of energy agreement are renewable our to transfer COVID-XX deferred on the OPUC of first request amounts million when with Storm with a as approach critical a year reflecting This that of XXXX, financing. PGE submitted flexibility announced Maria recovery all Energy allow million high-quality deferral, investment PGE and represents stipulations RFP deferrals. decarbonization an an PGE resolves move opportunities On the reflecting relating the will stakeholders Wind deferrals, project to stipulation our file $XXX stipulations subject XXXX, XXXX to us balance will contracts the years This earlier, and which seven of and $XX build and highlighted with Clearwater with are or of pleased all the of million resolved amortization stipulation NextEra to XX, this major Resources. resolves Labor September OPUC X, respectively for parties over eight, execution a related XXXX submitted have our portion

are additional to for negotiate continuing shareholders both resources. other with RFP dispatchable non-emitting generation and projects We bidders capacity renewable

of we that the XXXX these by end optimistic early are XXXX. will in We negotiations conclude or

rebalance both Clearwater maintain related as to capital purposes credit RFP the customers. and strong needs for creates ratings. continuing benefits are potential our sheet regulatory and important and We and to assess for as structure shareholders investments, equity other balance long-term debt equity needs to the well project Strong project our

time this on our look leading We growth over finance and up capital and to forward will to consistent of average. to structure XX-XX

shows Clearwater, base generation which incremental by nine, we renewable the as CapEx. to XXXX as slide presented updated $XXX XXXX, million capital forecast to the forecast have Turning by our through reflect investment well increased

And and capital XXXX and planned $XXX represents million a or $XXX from have RFP through to forecast million forecast of We expenditures XXXX future system current are by any potential and technology do possible through resiliency, also XXXX ‘XX software, of grid the transportation electrification capital for RFP not related remainder forecast increased Figures This optimization. respectively. the include for ‘XX for ownership $XXX million, $XX providing investments million. cycles.

sheet to in liquidity grade outlook. investments Total Turning to accompanied including to closed. and fourth slide liquidity XX, and solid stable investment million fund is cash we by with operations strong a million. plan continue XX has a issuance which to the balance of $XXX September We the credit a from ratings of of $XXX at up maintain of already debt portion long-term quarter, availability

continue capital We our debt tie debt sustainability expect Framework to to to Green financings seek our this as through we to strategy opportunities Financing under investments. issue our out

and is the controlling remain deployments cost we the like service strength ability of O&M return on prioritizing our our The on our difficult conditions, navigate reflected expenses. highest quarter controlling costs strong that our efficiency. spend activities drive continued continued territory and emphasis trajectory technology on growth third of region, power to The and focused

earnings We $X.XX $X.XX $X.XX and are reaffirming diluted guidance full-year our of or adjusted to per on share basis. per GAAP diluted non-GAAP a $X.XX share

we long-term load guidance Additionally, X.X% increasing are from to also growth X%.

Maria residential is patterns. high-tech in As in continued electrification enabled increase described, industrial by growth this sectors

of resiliency growth year. renewable excited both investments. earnings opportunities to to of from awarded load development, supported investment yet this prospects long-term as year anticipated on our renewable are well presented Given XXXX deferral we as clarity dockets major and the We're very X% earnings guidance XXXX to as well RFP about strong as prospect from by raising XX% X% additional the a Clearwater base opportunities be growth, adjusted by

a discussed operator, forward our confident for we're goals providing all and reliable the our of our catalyst strengthen are enabling we for for core our ready energy clear affordable mission We of And now path as long-term shareholders. today, clean, provide community value and questions. and financial customers, our execution consistent

Operator

Instructions] Thank sir. Goldman comes Please the question of line from Insoo proceed [Operator from our question. show with And first you, Kim your I Sachs.

Insoo Kim

you. thank Hey,

that X% to be off or range in that period? ‘XX by is should another question, growth thanks guidance mid-point assume that for that ‘XX, of in the EPS X% Should or space. you we it more and ‘XX on updates the First beyond adjusted time X%

Jim Ajello

this it's billion of And Good or long-term of with tell not Insoo, that done a guidance you represents Hi, $X.X will CapEx Jim. we're you course, XXXX projection. year about the significant rise is morning. to I earnings investment RFP yet. as the more. a saw

of I year you this that it's seek on business, So precise in longer-term as order invest answer know, And to think a a with be way is do really an you so profile. investment. to however ‘XX that, in hard growth

answer where probably that's the believe right So I now.

Insoo Kim

I at And come perspective Clearwater from the are is to Okay. by least online in conclusion rate that early to to try expected that the case the XXXX? expecting XXXX, inclusion given that, associated guess of or year-end with time, rate you a

Jim Ajello

assumption in Well, your let perhaps me an question. correct

So, in by to the is yes. end into rates. ‘XX. There planned no is We'll required Clearwater adjustment Clearwater case clause. bring rate to service be the use of Renewable

So go that any will rates rate project case into requirement. in upon absent service

Insoo Kim

one makes more That then And could. right. if I That's sense. just

prudency like created? that? on docket what's And the that Clearwater On timing for be a the some is that the there. Just OPUC wind, clarity separate needs review to

Maria Pope

normal we the mechanism Thank the that are after you, review asset takes has prices. the But clause adjustment there customer to into brought able the automatic course and project proceed Insoo. been prudency with wind energy place Yes, move is in online. the and

Insoo Kim

it. Okay, okay. That's after -- got

CapEx? the -- before any to this you don't with have for So approval proceeding wait

Maria Pope

No.

Insoo Kim

Thank so much. you it. Got

Maria Pope

stakeholders, no in a commission and been which have by Do different fairly and the all also RFP question that reviewed has bids Oregon had refreshed gone of process you have through process. extensive might we rigorous by remember, we've

Insoo Kim

Makes Thank you. sense.

Operator

of you. Please I our ahead. the Pourreza Thank Guggenheim next And show from comes question Partners. Shahriar line go from

Shahriar Pourreza

guys. morning, good Hey,

Maria Pope

morning. Good

Shahriar Pourreza

unpack things I of couple guess, here. to a

we slide what how eight? wouldn't necessarily which net-net, so you Could First, of the should kind you the in balance million solar is we think guess out I far. of, RFPs you, wind you got towards prospects current own? $XXX about for the see or it leaning could own I with more procured laid guess

storage guess So And are us to get as you previously the does how thinking Company's $XXX incremental $X I billion into million still ownership that? an to discussed? Thanks. fit

Maria Pope

of front-run we any process. are multiple we all, evaluator. with as to conclusion processes with work And wouldn't first and still the an want parties in So, independent continue negotiations with

So too place but early clearly are along through just we ago a and it's next make there with Oregon put more tell, State filing forward energy plan think we in IRP to years decade. of the new difference clean are that I a will of the our couple that the move also opportunities as

Shahriar Pourreza

just way I that standpoint? maybe today X%, incremental Got ask from a to above you to another you guess what capital it. what hit raised just guess I the to do X% an is need

Maria Pope

best in just projects risks as bids lease of projects a cost, tell. the I complexity will deliverability we're we're but of and we too for some at the that of So help at early to it's the of these looking storage so mindful think both capacity, lot look energy. available with there's the some Clearly,

Shahriar Pourreza

the plan, as quarter of kind but Jim financing with it? equity health be of potentially kind the the this EI, not this at equity, us as around being far this first got mean, and says update it. quarter, early Does just able ‘XX. disclosures of won't of maybe I process, of, maybe the mean to well finalized Okay, sort then portion as first timing till And on you

Jim Ajello

speculate that, may able how markets both financing a on of may we regarding We That's any equity. just and see opportunity at capital timing now. how very working right update on depends We're question. not sure. or be on to now. the that good wouldn't it I Yes, the look you want we to to raise debt the

that to So pin say down, would be able I'm not tuned. sure stay we'll timing I

Shahriar Pourreza

for sort thinking it. for one of XXXX. me, just of Got we're about And some the Jim, just moving then, pieces last

I about that about You natural to particular line you've especially with thinking enough we updated Any think items the like won't do to you're they some ‘XX as even sort from thinking items. those within you the what range we're have X% could or potentially year-over-year other dealing updated be Faraday look and should a if quite drag X% plan Thanks. relative some to equity and assets on from assume how ‘XX perspective? guess, should in about linear to other items we're dilution? be like thoughts we in O&M got it of of thinking offset maintain if

Jim Ajello

I good we hold by will now. a Yes, very going perspective give activities, to mean, also you, February what say how better opportunity of further I Yes, is and the we're right ‘XX would when And on round popular a the have until question it's we all should those investment. just tight that that. time that guidance. RFP for the finance to

today So there. around that we have schedule, gave EPS CapEx the other to guidance here into growth, the load -- deferrals we're robust you without so than specific new providing trying guidance XXXX long-term of the -- all

on back to think the identified I got the that you respect the actual February ‘XX call we'll and be headwinds but clear in with some we've to EPS -- guidance. you've of

Shahriar Pourreza

you We'll see Thanks. it. of in weeks. couple got guys Okay, a

Maria Pope

Thanks, Shah.

Operator

And from [indiscernible] show I question of comes line the our Bank Thank from go America. of you. next Angelica ahead. Please

Julien Dumoulin-Smith

time actually opportunity. the and Julien. morning. the good Hey, Hey, Thanks for it's

Jim Ajello

Julien. Thanks,

Julien Dumoulin-Smith

on And Hi. congrats again here. rise the

to So I follow-up question. wanted on Shahriar's

‘XX off you on base within in and confident et know about might think specifically. I ‘XX First equity, for do range being you spend, that I large of launched this? as ‘XX But know ‘XX kick off, pieces there say, here here mean, and have to how as just I very you raised moving X% X% this some off that cetera. you Are ‘XX you here,

Maria Pope

The upon and based as have that infrastructure Julien, built. at they guidance, we that have look energy built and our our usage first seeing. we customers' we're really foremost, it's

from over we manufacturers a growth have think couple accelerate semiconductor companies would know particularly demand aspect, great the territory is clearly as response. in make growth along and the add growing continued see next they to we and really that number and addition will feel continue that high-tech I of service in and been years. as of Clearwater have you a so our probably And X% trajectory. more energy battery expect makes but growth see transition very transition We to we renewables, to more longer-term clean the accelerating more the that's storage, what us confident also X% energy

Julien Dumoulin-Smith

future if prospects cadence X about and that Yes, just reconcile it with what Can I've ownership? the a by can, Difficulty]. I your term, on been over as [Technical think mean, expectations these the half bit talk the of to those I would back within itself? X and does as tandem specifically I how the this basically, the put a asked pretty a this all of making in If hefty to X% the here mean, decade of non-emitting capacity a more may RFPs of I through procurement X% the X%, the you mean of your pace assumptions longer -- target of kind you to you of X% with speaking for imply well. you of pertains to decade gigawatts procurement Again, X%. about I gigawatt that X% are out end RFPs gigawatts to

Maria Pope

Julien. there's in So there, questions of a lot

long-term be to to that's our that to energy the is and then of foremost with associated renewable need and going keep first the the procurement obviously think system capacity reliable. I

later place -- emissions in Oregon was this this winter period. will XX% an in little time mentioned, energy of the clean targeting XXXX filing while that really our be spring, just a us ago I early off reduction we for legislation which result XXXX, plan, went As of in the

well for transportation we will the resource tool procure integrated and have as well And so be that have associated others as and many the as need our that which working plan, that to of these. electric bit resources, as decades and with also all used we're quite around distributed a we of -- as we're to a to of planning doing combine energy kinds other grid planning

we're It's our companies also be would time really costs service also clearly important tell investments needed I it think but those that many territory be period this transmission be to of also going within to be which It territory third-party adjacent to handicap would see think would I which And prices. a extremely across our is affordability owned, customers spread growth customer but fixed over owned our built investments soon to is, not to larger the challenged mindful base and important in of take just or today. our too those of you'll a businesses, that growing are we're because load to just most of company them our mix. is Oregon continues West. customer service able that a and multinational residential and small likely

those balancing things forward. X% growth. in feel of And to confident the we again, all we're X% as move So

Julien Dumoulin-Smith

Yes, okay.

not So growth? still itself and customer the the bottom line pedicure RFPs any that’s outcome it's on

Jardon Jaramillo

confidence you give of Let's that number.

Jim Ajello

right, to -- let that. So Julien, let me just just me add

today If CapEx we without come you'll any based I presented same a rate-based the you think to model classified so conclusion. RFPs, that on the other run

Julien Dumoulin-Smith

Got it, clarification excellent. quick pieces know the here Thank just on And here. was constantly the are that clarifying one in you, -- year? for guys, that. Can but that guidance medical moving to assumed you clarify, there buyout I just

Jim Ajello

it Yes was, Julien.

Julien Dumoulin-Smith

I'll Cheers. again. Okay. there. Excellent, leave guys. Congrats it

Jim Ajello

Thank you.

Operator

go question of Please ahead. you. KeyBanc. I our Karp Thank And show line Sophie from the from comes next

Sophie Karp

bunch question. for wanted in season it's taking guidance refresh. and us help morning, pieces year. do that -- relates on XXXX? change inflationary pressures the development maybe my the seeing what O&M, And crystallize, the moving congratulations into of O&M, and Hi, see you the I how to long-term the do to the you raise thank and about good guidance our the for a much may ask the Could you see revised how be you you of you

Jim Ajello

Yes. Thanks, Sophie. Thanks. Thanks for the question.

level-set million, yes, look it. fight So, on O&M, top in me which we're doing a our in form space best the storm side really thorn just way our of all of million companies been the and against at are But back see has I the in inflation take to is -- amounts this which let's at you coming so deferral range the in the I the eliminate $XXX revenue. here $XXX -- let

about So then first disallowance And million the you've or got that that's it's $XX came million. quarter. the -- in $XX

I So use $XXX about it altogether $XX million, do right. I is, did way to the that's million, O&M now our so about level

factors impacting to are say, baseline, of last we once services so. of that wages So that O&M dramatically or increased all you you sort of O&M I form it's fair think, the start salaries and outside the purchase it's all year that in with in about the clear start thinking

that everything be what's technology factor? been has us, numbers can see the doing the with but there a efficient. if an we in to third you certainly using improvement So the sure, to more got offset that into think, we've I'm moderation dig are quarter, that. here we I we're to that plus starting exactly over you'll And that strategies not find

CapEx same the sure dollar improve more we making at looking the how just strategies. -- as like. efficient that kinds the It's in we O&M this much way Those of and get costs. can of not we're more So cut done, making sure optimizing but will about

Sophie Karp

helpful. very is This you. Thank

can the the I final new Clearwater on you tax that question Should think of the benefits we type the, contemplates possible on credits the RFPs from about -- projects, the number, point? incorporated not get into benefits that would fiscal of, can price how for other new et cetera. guess I project you our -- for that guess Another or guidance number I did the your move outlined had the and at as for benefits is already the around there, and -- in this treasury as is the all of that kind potential same, bill regime tag rates IRA would

Maria Pope

thank Sophie, you.

customer project So energy distributed from the we with and use Department test normal the their service to IIJA the we more Oregon technologies look Difficulty] currently Clearwater, have in the kinds also funds expect we in and in more IRA, territory. there and beds, projects, but specifically important some those transition. reliability of invest regards Clearly, other of federal have newer to to costs the in resiliency above to the both in Energy that expect will our which of associated Department the smart facility, of to clean that in of would market credits continue to funding, energy overall well-positioned course. same rather bring couple at as for reduce will be impact it's And the grid we significantly [Technical prices hope With of we that overall to and a with the to have projects as do those Energy be around regards we tax we would future.

Sophie Karp

contemplated -- contract? regulated equity equity But doable through reduce necessarily, surprised, to tax think capital is that within a maybe guess or that's not that I arrangements I I need guess way the for is upfront don't the there this maybe but yet. is Not something the need?

Maria Pope

Certainly.

the with rules regards reduction of the many written So IRA. to first have after all, been still inflation not of yet

need or credits, government to through financing or time. any need we funds talking see Oregon we'll see at monetizing like federal clean that overall important the would how government the going for to the about those what from forward it's federal if plants. And our state component of those and need an are. from you're that certainly, here market we'll reduce in to to also be agencies moved as energy our debt But So looks equity move

Jim Ajello

that, I that summer-time, say asked I'd all their of initially there included for but in for sure asked IRA because the a for around belaboring bids inflationary that's the projects, make the to the we the in estimates were, benefit that and of the our would Sophie, recall RFP we these they the say significant pretty refresh also without point, pressures that's at best benefit came bidders goes end because day. these customers, where when

I and tax we're the And early and don't projects tax in be of way what's RFP this these -- great there think projects monetize we'll about without so structure of all normalize or the for projects are IRA redundant other clearly term, like we an on think that without same normalization the simple very awarded like do we a Clearwater, company, a able I structure benefit company have credits. structure ownership that we'll really for IFP go. some and yet, as it's in this the And we competitively -- all a to holding affiliate opt-out but

So I significant this is a think opportunity for us.

there for If it's credits modified, just gets projects gets next defined not yet, more the the frankly. tax of round IRA you will, probably and the in market as as

Sophie Karp

Got Thank me. you. all it. That's from helpful. Super

Jim Ajello

Sure.

Operator

our comes go line Group. Thank the Crowdell question And [Operator from you. ahead. of next Instructions] Please Anthony Mizuho from

Anthony Crowdell

morning, Good Maria. morning, Good Jim.

Maria Pope

morning. Good

Anthony Crowdell

I Maria, start I guidance growing think with fair just of midpoint I CAGR from on, of our using this I off, think to as I revised the $XXX go it the earnings million follow-up there be update. X% want year But to should Is to to just like related one, were your start. anchor it first if many Julien's that we know maybe to ‘XX of was to actually question, the I ‘XX could assume the wanted X%?

Maria Pope

Yes.

Anthony Crowdell

And you. Thank move that just think hope wrong. and I numbers from -- I I Great. these I as then got there,

think roughly XX maybe basis lagged the XX to seeing company points was points. I basis

change at the company does You've regulatory has the your lag forecast load X%, that updated experienced? that

Maria Pope

Sure.

on that. of is a basis, work under those total larger, continue it's become don't the get a helps reducing percentage we they just a our or as Certainly, So hopefully, get smaller to bit part first that of and over that smaller goal items, of we the change strengthen but to our with all, larger that continually, And reduce lag little X%. footprint company the time. lag than to

Anthony Crowdell

XX -- points I maybe appologize. is know, points What basis appropriate is XX or don’t delayed what I -- to the basis

Maria Pope

It's closer right XX basis Sure. little points a now. to

Anthony Crowdell

some lastly, comes just this in And Faraday apologize cost I you answered guess, if Okay. pressures I earlier. and

for February of just filed following is the case rates what the February, for plan. rate? make timing your the long-term baked the filing company January, I your in what in assumption Just is think new historically growth assumption long-term your rate is into your

Maria Pope

Sure.

regards years, So, very last we and and that were period rate was were our it through COVID to increases of last prices customer we increased rate case. time. middle reflect filed you that the with prices about customer And modest case actually recall, our of as that this kept concerned were after to May in very was, we may just X.X

So some in importantly Wildfire as hardening we both move forward, we costs. for for are. will and additional come the take resiliency that particular, costs most grid a the we seeing of we're look at system and onto And where

be these all what we analyze as looking of things So we're to going at we next. do

Jim Ajello

add the that have we Anthony, to And I'll here. filing, annual tariff utility any not I would assume that. in tariff changes fuel filing the

something that's So concept. I our that's by think fixed

Anthony Crowdell

Great. much taking and questions congratulations. Thanks so my for

Jim Ajello

you. Thank

Maria Pope

Thank you.

Operator

question you. the go of Gandhi And next Research. comes line our from ahead. Please from Thank I Wolfe show Aditya

Aditya Gandhi

and Good morning, Maria Jim.

Jim Ajello

Good morning.

Maria Pope

Good morning.

Aditya Gandhi

sort the you So go the of as could you you on when you forward Would in year? an it. sort before or ratio, file case later equity year, on given file please just you assuming to -- of you just and given your you equity draw just is your draw to on can time case, clarify, have to this clarify the would please year, forward the in that file do forward test Could for rate essentially that? have at you and or it test you forward relates rate your you again

Maria Pope

Sure.

else, structure. our of XX-XX rate a debt structure. -- went structure. month no process and a perspective, term perspective earlier, just Jim XX-XX have target it case And a we that below -- simple and XX nine, ended filed we with up anything last XX-XX So holding entire through the we were very but And capital a just we background, Company for on in average or sort about we over long also mentioned capital for and the

think we XX% on that commission as the we with as well with understanding good a target time. So have parties over average I

the that -- case that amongst case. next at factor or a might follow how So not, I that rate look it's take just what impact we rate one think would as we

Aditya Gandhi

going related Got plan And to higher growth a in you X% RTOs. also capital to you're nature base it. equity some have helpful. sales at X% plan. needs just then RFP, which equitized and That's pointed also higher the and capital some equity to have more pointing a and growth rate, then your to is you you've present But so your business, under to

the So X% of financing we beyond shape of maybe maybe like especially have to some your how increased XXXX? but not, needs looks because like, we what equity don't a full of refresh just there's about to your of that sort CapEx sort related picture should X% think

Jim Ajello

I'll take that Yes, Aditya, one.

beneficial. as it the as not think we So that see even more today first said, do We're results could that we by CapEx best I is And we'll hopeful quarter, I've current with the now. cycle. see the end or into the as year disclosed finished guidance that right we of the are are RFP

that plan So I'll the you there that gave we in you. just But well. not say to as is revise opportunity upwards guidance CapEx I would that

would need the to little therefore know as for it's return a the size times Company whether plan many discussed literally us box that is, capital Maria the just said, be, will also of cap hard, Clearwater on on we've the to capital out over will, care if of maintain you to structure I XX-XX a basis So taking that and that incremental see and average, we what time. regulation the And assume investments overall. per like once order you'll in funded

size to volatile this markets way are be we'll I'll ready it nature the just comes. you hawkish Fed tell that So markets equity the the the for difficult project and and given performing. as these the opportunity and are of extremely

question the time. with question that we wrestle all a -- one is your we it's So

Aditya Gandhi

That's Okay. helpful.

so. one Just if squeeze can and more out I

won't that didn't the when recover to $X Thank for take so are your far be that correct I'm to me As be? but if able you. you Please for charge I you have before the get earnings would wrong, noticed deferrals a concerned, PCAM? that do to charge for the amount. full PCAM as million essentially And if

Jim Ajello

recovery, you see So there and between on delta -- end quarter page the noticed this you've a at obviously what the the right. the is of ‘XX balance $XX seven, million

in million. be that would quarter that fourth So $X the

Aditya Gandhi

Got it.

Thanks, Maria. Jim. Thanks, helpful. that's Okay,

Jim Ajello

Sure.

Maria Pope

you. Thank

Operator

the line Nicholas from Suisse. from question next comes of And show our Campanella Credit Thank you. I

please. Your question

Nicholas Campanella

Thanks in here. me good Hey, for morning. getting

Jim Ajello

Hi, Nick.

Nicholas Campanella

way here? how of just like, total the we of lot for I'll just equity ask know some try should RFP wait you results because moving sizing -- your a think do I there's and get are you kind needs Or to need before pieces. like to that, direct about more

Jim Ajello

thank in that. Absolutely, wait. get understanding figure can we moment track in market I I it to trying are detail across out consider we could of the necessary in really to -- and was don't ago. what conditions. Yes, a it's try there pace and you for to where That's think to negotiations we

more want I'd the to case wait. We right. to right, But because against pretty and have not capital have equity confident, I want don't than over-equitize debt necessarily dilute it's to I both our we and be to. size that So to the needs, financing have

over I want our out not that's and dilution get So necessary. to skis create don't

Nicholas Campanella

way quick improvement a authorized. understand basis Thanks. about helpful, about you the that’s XXX well No being Okay. quarter kind think but and of And XX% overtime is this the points talked an to still? or Could XX% Jim. there just then, is it last comments versus the give as situation, you at that right us update

Jim Ajello

Yes.

that what we Now we're think right I in ballpark the repeating now. people say, hear I

XX% and of making by approximately notion at history, over operated we've at it time. period XX% the long I the many suggests So, in look XX% end the the year, that time I of happen me cases also I We've XX%, that think And estimate -- at to we'll back of plus over be plus. XX%. a operated

I a that's but bad think yeah estimate, don't So right.

fine. that's think I

Nicholas Campanella

Yes. right. All

Jim Ajello

at on over back forward repeat because it's way we the and we average, the look the As commission the time look at look we it we to way just on in looks said, right, projections. it,

average. and So repeat me on time over after

Nicholas Campanella

Thanks a it. see EI, lot. appreciate I at We’ll

Jim Ajello

bye-bye. then, you See

Operator

Williams I Thank go you. from ahead. show Please from And Co. and of line Shank question our comes Chris Siebert last the Ellinghaus

Chris Ellinghaus

How you? Hey are everybody.

Maria Pope

Hey, Chris.

Jim Ajello

Good.

Chris Ellinghaus

that are of and horizon Bolton are tech those Maria, kind sort expansions was about you you about see curious talking I in talked sort interesting. two mentioned things is One, and new that fabs you're investment where here? -- sort area. do in expansion you service of of your your just of

Maria Pope

Sure.

fabs expect also speak, see there as some investments taking we would are we And I So as well. that place. new Bolton would

Chris Ellinghaus

Okay.

Maria Pope

tools, We of their has the are as software many strong well a very fabulous to talent companies really that fortunate as semiconductor companies manufacturers as created support the number well. that base have of

of And growth in a a so and fair of amount period this lot of is that it. have we're area a to fortunate

Chris Ellinghaus

Okay.

other new talked was The Are you needs. transmission about expansions? thing you merely talking or lines

Maria Pope

place of be our transmission of to and whether expansion possible little and I able to we'd reduce takes a as be challenge. real on is service transmission as that all both. With is know, sighting, a of issues that of move bit an corridors, think with it'll variety existing And quickly the like to or as ensure reliability emphasis grid. lines permitting, the existing territory you entire

both. be, of little bit our will a will where be So that's it but main focus

Chris Ellinghaus

Okay.

-- to rates rate you you'd tended base to base avoid base any Should rate into new new be where back coming trying try So, have in we question, avoid expect to years the increase increases assets rate XXXX? customer for you've rates. to

Maria Pope

affordable, during of period lot things you a where foremost, keeping first pressure So of very a commodity for time particularly confident of customers see build and and we're volatile prices.

And we planning. of really is all so energy how affordability and important our accessibility think to of

energy transition well through clean well affordability, forward conclusion not, we and gas one any as reliability transition. way one have make and as don't as first this natural you other as tell of we So look this things, will foremost change in as that as the prices, or but we I energy

Chris Ellinghaus

you Have Faraday strategy? your on updates any got Okay.

Maria Pope

moving is project along. The

been the it storms, online after of a We the was the wildfires project, a that power a and we're first by ice completed to of has the and but challenged as experiences. sooner be little and year. the maybe certainly been and been challenging getting than Generating wind conclusion. through project COVID as well It's bit one early there went bit expect that little the will that getting it's units a

Chris Ellinghaus

recovery cost Through thoughts?

Maria Pope

Yes.

brought selective requested our separate on so we -- were into were we on And well a require bringing So rate not when our of obtain was the chutes. something systems us that water rate have We and fish last that worked it some we would customer part of to is case. for prices system a the that is handling case. withdrawal rider, able which

Chris Ellinghaus

Thank much. Okay. so you

Maria Pope

you. Thank Nice talk Chris. you, to to

Operator

you. Thank Maria this At I'd Q&A over closing turn concludes like This to our Pope time, back session. conference to for the remarks.

Maria Pope

General we joining interest Electric to appreciate much. and with in you your this for Thank connecting you We look thank you Well, very all us soon. morning. forward Portland

Operator

for you [Technical Difficulty] Thank call. conference participating. today's

now may disconnect. You

Portland General Electric (POR) 26 Oct 222022 Q3 Earnings call transcript