Earnings call transcript Q1 2023

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Operator

Good morning, everyone, and welcome to Portland General Electric Company's First Quarter 2023 Earnings Results Conference Call. Today is Friday, April 28, 2023. [Operator Instructions].

For opening remarks, I will turn the conference over to Portland General Electric's Senior Director of Finance, Investor Relations and Risk Management, Jardon Jaramillo. Please go ahead, sir.

Jardon Jaramillo

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

throughout would we a you remind our this website be presentation available slides I begin morning, like referencing will that we supplement at discussion, to call. on our The are Before to which the we investors.portlandgeneral.com. have prepared

Slide to Referring X.

expectations. statements morning may and risks uncertainties, actual results remarks Some forward-looking We inherent of this our caution involve statements. materially from our differ constitute will you that such and

factors that earnings For cause of our a are of the our please Forms our description to available results to most on website. materially, which press could differ and reports some actual and XX-Q, XX-K on recent refer periodic release

Vice President Finance, and discussion Treasurer today of Maria CCO. our and are Senior CEO; President CFO, Leading Ajello, Pope, and Jim

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

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

Maria Pope

Jardon, Thank speak Slide morning. joining with all you Beginning first you, results today. our start and us drivers. good discussing the key quarter I'll for X, Thank by to and

per For reported income $X.XX with GAAP or of million This $XX share. or diluted per quarter we first million $X.XX $XX XXXX GAAP first quarter, of net net income the share. compares

$X.XX net share. income non-GAAP million or of $XX Our per

expect O&M sectors the costs well our Wildfire the our steady was remains There Industrial this second, key power see and high-tech and both good excluding the First, expansion X% management load, over prices; deferrals continues; results are load increased in region growth power in flat drivers impact and a X load and we as for as primary as of we as and quarter-over-quarter, major growth. third, of higher quarter: as quarter. the year, this continue to have particular, of gas a natural increased result case full priority, cost largely

the sheet an the equity on important forward, X. This a draw which impact is addition, earnings load results forecast $XXX is confident to and strong draw March growth X% driven improved XXXX Oregon's $X.XX as X%, investment energy in in growth well our In operational of and by clean million earnings and attractive growth completed our per ahead. was QX investment to reflect for of customer balance capital step rate share, range our we for growth be of to from remain our our in as and resetting long-term profile performance. $X.XX

Moving to Slide X.

begin by Grid from battery AFUDC. NextEra developed owned midyear Troutdale That XXXX. service by This XXX under XX-year you battery acquisition bringing our of we're our As resources we total $XXX a storage year-end renewable facility company-owned is and service expected onto with the RFP. also on excluding XXXX. investment, storage a additional and know, and Seaside a of storage million as approximately capacity expected begin of on system, a an part to project the XXX-megawatt million by Grid, Resources Energy project is focused announce with announcing to to have non-emitting recent of capacity We're been agreement. new excited facility solid most

provide the a this capital We existing half first XXXX new are with the in battery flexibility. and energy reliability, negotiate our Negotiations chapter clean XXXX. project excuse continue -- XXX project final for projects of storage grid significant to shortlist a of represent and addition remaining expect finalized the RFP. to me, Oregon-based resiliency These XX-megawatt to portfolio a be negotiations or bidder and company-owned

times renewable allowing demand, energy offsetting will help market to purchases. of during us us stored manage This energy deploy energy peak partially costs,

renewable component These resources. in Associated integrating with will wind, be generation. important solar and projects battery future hydro an

Jim offering capital other will to have expand million debt use registered equity this a combination equity and and the To we shelf $XXX his issuances. remarks. a project will and on Seaside at-the-market finance needs, allow in of incremental

On of to conjunction the megawatts these plan. XXXX. battery with in XXXX our resource future integrated inaugural announcements, energy integrated meet Net front, our by resource X,XXX we X,XXX regulatory today's needed to needs filed clean documents plan an outlined the

a O&M XX% the to purchased capital the general and rate procedural established the increase costs result we and finally, as second, XXXX associated case due to case and third, in of The with XX% prices; higher has is main the natural filed quarter, and first energy our gas balance related recently X compliance investment; First, inflation. Also components: rate year. for have schedule

or operating also reflect rate addresses goals better against cost and case This power and our facilitate future PCAM, conditions. current decarbonization to or mechanism, adjustment

early look and still stakeholders. discussions are and collaborative to the case the We in forward stages with of OPUC this

dockets resolution following deferral, concluded expect revenue deferral we be expect the second conclude quarter. all the which XXXX requirement in Boardman of We to to

limit Affordability We're events. very the signed legislation is be with customer significant If from impacts it to later moving inflationary energy to year. through and that expect Oregon help price is pleased pressures passed, this securitization major legislation price the legislature this and essential can law volatility.

on commend PGE I colleagues incredibly costs. are who controlling our focused

discussed years. we several we technology And we have XXXX, productivity. in work the made streamlining are do throughout and lot to a progress XXXX, on the have improving our last I and last As quarter, done building more work leveraging work over processes,

to customer enable For resource and deployment operational service. efficiencies, improved investing in tools we're example, digital better

seamlessly our upgraded fact, X deployed customer system cloud-based was ago. just weeks In

system more data our accurate customers information service get customer Our for response. timely management information and for and timely execute to is to and and it customer teams coordinated making easier meter

and costs. to will cybersecurity field manage compared which both target focus are great Another us to of increasing continue O&M to year, workflows tools, cost wildfire of the new flat reducing risks. higher implementation is and deferral when and example and scheduling efficiency impact largely the improvements, this With efficiently these we our prior amortizations crews, and management excluding more major technologies, helping

President joins Ben brings us Operating from and We across years the of every aspect Ben XX deep the Vice of knowledge of DTE appointment of Officer. our also served recently operations strengthened Supply. wealth our most organization as built new where over Energy of Felton he about a industry. utility with as Senior experience just Ben Chief

growth We have our increasingly over experienced are operations and last the years, several complex. tremendous

As Ben's we COO will our a expect look to and engineering, environment PGE provides groups, dynamic caliber construction of business and interconnected, opportunity operating unite bringing become only that including and ahead, we operations. several more an to

development, of the industry Annual been and on has Meeting our has I'm XXXX share XXXX the Jim power our to management. of extensive served energy regulation PG markets, risk and including Directors. that and Torgerson Board Following utility of Chair also pleased Shareholders, appointed Board knowledge of since Jim finance, has renewable

years. like Brad, wise Board are have Jack counsel Rob and thank for to concluding would Davis PGE vision I their combined XX and who guide service. helped Their

from Rob's law. as We industry have experience our Chair a environmental well who Jack of and Board greatly was in for knowledge, our number as of benefited Davis, has deep who years

and the practices, And then has that a our Jim on and to a came may morning, lead financial when transition. to us us company new financial have needed our helped energy retire. steady hand release management change, that XXXX you final Jim in seen implement our organizational clean Ajello the accelerate this foundation decided He financial strengthen to we announcing risk issued organization.

our in last resetting and nearly and today to accomplishments, credit in programs. are expanded thanks adequacy. to continuing raised sheet. especially refocused leadership completed many million issuance part operate have to in a efficiently improve insurance and his a thankful balance debt million no $XXX Among our on reliability and we the billion his $X new small $XXX more strategy, Jim's for leadership, We at equity Today, resource bank lost and fall, of ways our lines I'm executing market program and identifying

smart as transformation, and reliability positioning many clean superior us All for service energy years as to of levels this grid well higher supports customer of come. for investments, improvements growth

candidates, are internal Jim's currently as adviser current from ensure of August has smooth search including after at through Jim end remain conducting transition. June. you. his external agreed role for transitions the thank replacement, to senior a of to end a We he Jim, a the and

we're enormously grateful. during You've made remarkable tenure, a difference your and

over and turn through decarbonization began. reliability we progress today. of I I'll projects significant battery to supply where energy Jim, our before from a had close accelerate We it made announced and to organization Now our good quarter. Overall, I strengthen

we And with customers. line accelerated to and clear sight you. the all providing through growth walk Jim on creation, focused safe, to will of remain value that, you With clean results. energy affordable Thank financial reliable, our

James Ajello

investment Thank you, good resource before Maria, financing and outlook. and QX I'll liquidity providing our and details cover results additional capital planning, morning, on everyone.

Moving to Slide X.

Our results reflect of first market efforts. power management volatility long-standing and management of continued growth, cost demand execution sustained successful our effective quarter

remained has QX remains customer demand strong. economy regional at in held amongst our XXXX. solid as through territory our and class industrial Our service X.X% Development unemployment

We in particularly a center and ramping the coming pipeline continue high-tech to data industrial see of projects, strong months. sites customer

both practices weather pandemic. On QX usage total by days. XXXX patterns loads our by in service aftermath QX Overall, of speaks weather which to XXXX. the a year-over-year, degree cold decreased X% customer year-over-year, and Residential the X.X% a to X.X% non-weather-adjusted adjusted but continuation increased basis, our increase load X.X% load we in weather X.X% territory the witnessed of as heating increased increased compared adjusted, normalize as in

weather in normalize. adjusted customer X.X% remained continues X.X% XXXX. Industrial load QX, activity weather segment. continuing increased to or to to QX increased growth as with high-tech count X.X% growth commercial and or customers Residential lead year-over-year growing adjusted X.X% steady the X.X% compared Commercial also digital load

we deliveries, typical While colder than and power driven continuation higher strategies challenges. to the temperatures, see a as operational dampen of that and also and the impact collaboration our volatility we emphasize weather dynamics helped changing These weather of constraints management market-driven did this regulators by our prices. risk our higher Execution of continued customers among address employees, market in intended. conditions region saw require resource

financial in in class. led our the amongst residential experienced composition total We growth by commercial performance and our customer X.X% quarter-over-quarter, driven industrial $X.XX in saw driven by in a increases revenues increase increase continued cover due $X.XX weather-driven now differences XXXX. to loads by revenues, We I'll increase a customer quarter-over-quarter. primarily to compared deliveries,

recur. amortization to load higher due volumes plant that due quarter serve did to prices during balances decrease. of from average prices impact $X.XX, $X.XX XXXX and due including drove cold in an Higher not power purchase deferrals market decrease. and particularly EPS the to depreciation first year-over-year a We cost capital in during to saw expense, $X.XX Increases a $X.XX higher $X.XX quarter

which higher to higher There million was $XXX XXXX XXXX. QX repaid bond fourth reflecting QX on mortgage returns increase There the million was improved the from due higher and $X.XX trust a expenses benefit balances. debt compared in loan March. nonqualified in to to assets, $XXX first issuances totaling issued $X.XX due impact decrease conditions a quarter, was term of long-term market interest a

XXXX, reflecting grid the and decrease continued a to due compared A completed $X.XX million $XXX $X.XX AFUDC our growth the increase There was the quarter. from dilutive higher to equity technology in investments. in of impacts first draw

higher a income, increase other we miscellaneous offset from by Lastly, had taxes. items, $X.XX higher including property partially

Much to fund of expense our results $X.XX with quarter drivers. capital increased key new higher impacts near-term is capital depreciation from year-over-year. reflect interest dilution an our being towards this sustained This and incremental investment, trend growth projects

have remain mentioned that we and XXXX previous long-term value. we on As calls, remains foundation execution focused year, investment strengthens growth for and PGE's on an

the Slide for of update XXXX X, On RFP. an

behalf manage our As to changing Maria to power to visions flexibility reliability us highlighted, customers. maintain portfolio on pleased to to help provide addition to another operations us customers, allow costs meet that we grid will our for of are have

periods The XXX-megawatt demand. enable a extreme serve clean company-owned critical capacity customers storage and during our weather component storage future is XXX-megawatt deployment energy capacity of agreement of PGE's will under quick of or to and incremental high events secured battery

procured XXX-megawatt company renewable with wind late of capacity which megawatts, resources will dispatchable will Clearwater PGE invest date. million XXX in and announced Combined the development $XXX 'XX, in own new to

negotiations continue agreement and are XX-megawatt on that project, we'll battery we PGE-owned QX. optimistic mentioned, in an enter a Maria As we

total, of the a reached total If capacity from with Other nonemitting nameplate of will RFP. the generation XXX renewable procurement this we capacity on have of capacity. nameplate and in resulting capacity megawatts of megawatts final have cycle. XXX project, In projects owning company-owned XX% procured an competitive secured process agreement PGE highly this megawatts this from resources, of procured parties with XXX is garnered PGE will competitive

we've energy us our got were to the a of contracted optimal strongly able clean risk many and This the customers. procurement achieve balance journey. of the of will technologies combination benefits placed progress us of we on notable to and the and challenges, for to of resources outset of while owned that navigating make achieve cost targets macroeconomic our critical at I projects provide and on best allows And believe customers. RFP the Even long-term mix outcomes

and mid-XXXX wake project IRP's In combined CEP we made in in issuing of late our anticipate and in XXXX the final anticipated filing XXXX. RFP the March, selections

Turning updated through forecast our Slide shows which XXXX. to capital X,

Our guidance is that each project in by to million XXXX $XXX with project. associated million, CapEx the new primarily not through would XXXX increasing negotiations. due and XX-megawatt investments does in million CapEx be the still any respective $XXX $XXX Seaside include in year, This

the Clearwater, project By build risk which for provides flexibility. approach, agreement ideal mix mitigation utilizes transfer the an Seaside a and of financing

figures here portion potential remaining current of cycles. the from the any to or expenditures include presented not the reminder, possible RFP a do As future RFP related ownership

X. Slide to Turning

at or existing sales equity by We Remaining against liquidity of in issued balance ATM. a March. the common completed March term. does equity not from by and equity XXXX, agreement's the our to under credit maintain well forward $XXX the draws strong are include is which of end ratings equity Total million, expected the be newly XX-month filed undrawn million forward the existing agreement to the $XXX forward sheet XX, outlook. investment-grade liquidity as available continue strong accompanied as We portions credit

up Looking capital green strategy our to continue we to to financing plan practices balance framework to under sustainability through financing our anticipate million, debt to our we of which of the XXXX, issuances debt investments. tying of issue $XXX

equity improved to We support component also a for spending increased upcoming incorporates million $XXX provide a and ATM match today. offering at-the-market clean offerings optionality shelf investments. our forward needs registered to The

We optimal. the will our authorized help will new are use at to CapEx the XX-XX structure. our of attract finance to with competitive intend This benefit capital timed us ATM line of fund capital to strategically in prices when Any capital customers. be strategy conditions investments

payments dilution rate carefully equity investments to we base We for possible. will to manage cash aim issuances where align continue as with

investment results reflect thoughtful will customers additional high-return fundamentals shareholders. drive In our the territory cost consistent in continuing remain terms as in our XXXX look strength and yield that operation. and deployments of as our for outlook, service efficient well to our we management quarter the We execution. our that on first results operational activities in more and And forward effective strong laser-focused

from represents Board with to industrial respect growth still on while a anticipate growth We our to consistent week, maintain and per growth, XX% approved a sustained ratio over increase. a commercial dividend increase and to is modest confidence residential X% Combined, of led XXXX and X.X% guidance also $X.XX dividend in high-tech customers XX% load dividends, customers. target load payout X% observing increase share time. digital of by to growth With our long-term dividend last an we annualized our of basis, which growth from X%. This of X%, weather-adjusted

I to territory As attractive service us operating X%. guidance improved and of highlighted our X% allow previously, will performance investment achieve fundamentals, long-term earnings growth profile our to capital

and forward towards beyond, affordable, executing to 'XX growth for and and to quarter look is foundation and financial shareholders our energy. and our robust. by the on customers the goals delivering turn long-term value clean providing reliable reflect first increasingly We we our of on As alike safe, remainder

a result of to As adjusted per our are factors, these reaffirming full earnings we diluted of $X.XX guidance share. year $X.XX

together. at Board want to open and been and questions, a I Maria, It's so the the line and work great honor PGE we the team Before opportunity this to privilege. thank for you, an for closely

that work help moment have between questions. to transition. now, a leave do. do I I will we're the continue can ready months now now. affect for X and It operator, would our me And when be very then, for plenty I and But we to smooth from of And momentum bittersweet everything

Operator

[Operator Instructions].

comes Pourreza from first of Our question Guggenheim. Shahriar

Shahriar Pourreza

for call? remainder Just, between wait and an Maria, the opportunity? then? starting the cost with for Do 'XX now smaller the implied have what's the we get for line we for of capital proxy time X-K to Seaside the RFP, is XX-megawatt could And useful XQ a secondly, Or that? that

James Ajello

one. I'll Jim. that it's Shahriar, take

So project, still final under XX-megawatt is the the project, negotiation.

that. you exact much cite expected, capacity. at in been of $X,XXX, we're if won't the because we it's installed results I the to coming finalizing pretty look So about RFP cost XXXX still a KW $X,XXX date, But capital an of totality as

the can we'll easily good projects, from contract Since at. pricing I extrapolate. now. pretty we But have really similar and we agreement what have that current easy to I storage actual cost right could very that extrapolate come an in think until think you project signed it's pretty on is have But capital inked,

Shahriar Pourreza

process, differently, the is then is early could modify you removal at ratios Just to obviously parts level, changes understand the it Or a here? an it. through? I innings, case proposed pathways to maybe something sharing could see It's guess, And but trying Got realized. of PCAM all we get the we are of or in guys not the this nothing to but dead the bands? put see what forward high

Maria Pope

Sure.

where too of to proposed as as power to significant all, the well pretty to we'll up. end changes I represent But changes first think it's PCAM speculate reliability. markets to So early the the

So that It's in and at we've are when really mechanisms resource the look to this program, how we had a markets place long look bring we towards to operating adequacy time. update for today. date time Western power

only we collaboratively look for it's important customers, the forward So changes the an parties. set also working company to for with of not but and

Shahriar Pourreza

was sort of Perfect. I X had. questions all retirement. on your congrats That Phase the of Jim,

to a discuss that you're retire, drinks. over retire, to obviously we'll long but think little too long I little to

James Ajello

Shahriar. Thanks,

Operator

next Julien Our Bank Dumoulin-Smith America. line of from of comes of the question

Julien Dumoulin-Smith

you best see around I'll luck. you. best It's more I Ben, Jim And luck to And sure indeed. of wish the you pleasure of I'm here.

James Ajello

you. Thank

Julien Dumoulin-Smith

capital just -- about the here saw obviously, that? I on up could think further the CapEx potential here? capital pretty $XXX raise the equity think about of I here related really further you new that and steady injections typically revision timing do the But higher got quickly revisions you how I wouldn't sort later. ask. the ATM, need cadence you to of do of cadence million. you've a following such How Just

James Ajello

question. Yes, good

So let's to offering, right? from $XXX the basics back October go million.

reduce there of proceeds and debt. to part -- was Let's the

here, to So $XXX And and say I like. we're million ratios $XXX the would getting offering balance we the our close about that dramatically the sheet. address About million of quarter out -- improved XX% equity. closing

So mission accomplished, right?

we investment $XXX more little then million in had than And Clearwater. a a

a hundred of is so applied couple therefore, dollars million And there.

the So Clearwater, being those are applied and like strengthening payments condition. between balance and the financial the proceeds sheet and towards progress

year With respect size to going substantial ahead to the we'll to haven't second equity signed that capitalize going to And these the debt forward, say. towards that very I would closing project new projects including the of forward, looking pretty this investments. new out much the half, in ATM projects frankly, going the they're end we issue yet, that

go. help And that to the ATM X termination statement, X is August of us which last than a we is years as a years So will will go hence, period course, registration more there. little equity through of The so arrangement. the forward us X-year the

strong final balance we're storage think to I these this X need, set XX-megawatt fixed having the of prospect the capitalize we between everything up sheet that including project. well and So transactions

in of bid right. as I'd to do we bit we we're those go XXXX to a you're projects a of little up tailwind, And into So projects like but the RFP, set the quite confidently seeking course, of well. with need In now that. on financing, can so implication, lot XXXX

Julien Dumoulin-Smith

mean I as structure. I say, already equity the you out clarify allocated that And Right. [Technical mean Difficulty]? But last this. know I raised on you fall. if of to? the you've can think spread of over the impact forward you X-year sort the is think concentrated to you more you about this this just Or is far end that as do dilutive Jim, make

James Ajello

progress being be us. fund to we're delivered It with that definitely over on projects going reason couple years. these payments And of is are the a is out way milestones these to spread will based projects as the

vendors company-owned delivering will to them. these So progress projects quarterly on payments that are require we contractors that and basis, have a the

schedule things, and a there's So we'll pay drawing debt then and of have equity to those the bills. these that be against we

of capital another in base forget, that's kind plan. of don't $XXX the million Plus, inherent

call increase with in substantial capital that's it, year's and So depreciation. very year's guidance, Xx $X.X plan this we a billion next have here running,

Julien Dumoulin-Smith

I seeing loads first, just industrial related not tech any pullback of from And clarifications, if can, still side quick equation. the Excellent. two the to, intact,

have Just confident want that new here guys Intel a then on want to here, last mean for future pretty in expectation proforma about RFPs. the RFPs? service for territory. amount and clarify that. win I hefty Obviously, related means And Still future you what percent guys others for that project. you

James Ajello

at I So to I'm on just win And the on proceeding industrial rate then see It's but the on will XX% minute. second tell. cited speculate the And first single Maria we in go. quickly I digits growth point, a I load the yes, sure mid- go-forward. on see, as question, comment last we can't high too really in soon RFP, to along sector this

We haven't even RFP the yet. issued

that. So standby for

So...

Maria Pope

Julien, the we side, continue growth really see to the across load on load board.

the migration customer of was slightly quarter, up the just count in X% winter quarter. first Our that's and continues, shy

in bit is all And that work in reflecting several the is commercial a continue people the off, post-COVID industrial about quarters, growth. story is of also come last and little the We usage see terms really, residential for back to while down to environment. really

country are manufactured in our semiconductors And are we territories. manufactured have that XX% this in service about the of

there facilities many is So those the you of across country, digital cloud addition what which expanding to see to their are computing in aspects manufacturers, and current organizations, their adding of operations. expanding, are many who and

James Ajello

generate to as this alone, XXX demand just example. centers neighborhood megawatts of an this load year for new Data going in are

Operator

Key. of of question from comes the next line Our Sophie Karp

Sophie Karp

greatly missed of you I couple when retire. here. have you And Jim, questions A be will

if PCAM was wondering of this. you So history us I the on can request, remind regulatory the

this how modification to have was, entrenched much stakeholders past might sort mechanism? the it and to what in trying requested the loan appetite glean of you for if of outcome have Specifically, the modified

Maria Pope

we've Sure. back joined even thermal it for to plant And and fixed variable had wind first where all, there as when That's Interconnect longer coal well sharing blowing, solar it. of our shining, sun actually is Today, a idea operating renewable mechanism deployment of to I -- of more lot performance renewable-based throughout And natural the wind, based it's operating Boardman a plant the other the company. question. this footprint of a the where no that not the applies in system risk a and were in really the resources before mechanism to the export West. great aspects resources and Western place of really terms the what the on maximize and largely not is is related as the across market import entire entire

reliability at the at as mechanism the really has country adequacy Power adequacy as it's take and to you have moving concerns look industry. not the every that approval and last when also we Pool aspect program, the And for resource Western that getting of towards forward resource wholesale their made the the time is relook well quarter the a advances Western FERC across common

outlier, In out continually a working parties this environment. in work or mechanism this fact, forward to that I say going should look will forward better we're far evolving new environment, we figure with to a and

Sophie Karp

the in I historically, very know, going helpful a changing And is And still Is load the the kind in where the there. that right? population if territory relied of territory. you of right. that's a the will where And inflow, then there's on any change that industrial demographic just don't trends forward? you service be for any you Just main high-level your driver commercial kind case? color. curious if maybe shift about I'm question Right, see wondering

Maria Pope

It's at good a data with continue that the have last different a seen bit is are higher decade. question. in-migration the There that to to little than several we've or see over in-migration. different integration What that is reports also we regards

actually and that strategy. we renewables is is north that's of X% in So continual are in-migration. attributed our also part advances of What seeing

we're but the And not as a utility, area, leaders conservation, entire terms an long you history of that state. as this area know, and the of only of may has energy in had one as

you'll not load or think will I -- So from growth as commercial. we see residential much

most from to the so continue load industrial, we'll of growth will customer but come see growth. And

The not included are vehicles. the in country. number to is electric electric largest IRA of, for I in tremendous dollars one expand area the customers, of going highest fourth a vehicles. have And and that use penetration to we their that second of market already electric looking who -- opportunities the some have that's think, We're the vehicles with our

number in who at Daimler located particular, And manufacturing has well. truck their a fleets service we as actually have of looking mile are last delivery, our electric and in territory

growth for believe long-term year in most there's X.X% X% terms in moving to this pieces the side, We So lot continues our in load load a of of robust. but forecast. of it to our fairly be

Operator

the Group. Crowdell Our Anthony next from of Mizuho question comes of line

Anthony Crowdell

Brady retired congratulations. And Jim, Tom also I guess. too,

James Ajello

you for that. Thank Okay.

Anthony Crowdell

the win, not the -- on there are about success XX% RFPs. is had it And follow-up did that the I strictly you question XX% in didn't the this to factors other but If Julien's was to company company talk successful maybe bidding? flip winning the that related around. how price that of the could could maybe Or question, The the not company to has in company win? was that

Maria Pope

in. There's we a look of and a independent take broad factors We lot come evaluator. work an with -- do

into risk, process fairly it's play. and the transparent come a evaluator price, factors and And so it's commission. least the the with independent And all these least

for the think the nature I competitive So do projects really the over long customers best term. that helps for value deliver best the

Anthony Crowdell

earlier began think Great. utility trial I just if wildfire the associated some And with to another then a I pivot state. could week this related in damage

I was think Pacific. it

spending more on Just for does Or an resiliency? more that for that scrutiny curious if provide Portland? creates opportunity

Maria Pope

terms comment going solid can't years. litigation, And good on in we any our really doing we're over you making that wildfire, at a of on sure of Well, look and thing, a number anything to ourselves the whether grid, on program customers, in focused or that pertains utility. it protecting our if think, that's have we're we've other developed investing right we I

Operator

Instructions]. [Operator

comes question Travis Morningstar. next of Our Miller from the of line

Travis Miller

job Congratulations, Jim. done, well

James Ajello

Thank you.

Travis Miller

What's on timing terms recovering is along a way? in the XXXX? Question in chance in that lump Or be XXXX, of case a investment the sum the there thinking rate that about? to get a rate payments Seaside. Would you're it

James Ajello

AFUDC. of projects, Travis, All for these eligible are

So that's starter.

Secondly, it that under belief renewable be to clause. is are as such eligible projects adjustment our this our treated

kind or like scale this more clause have or today. grid probably that we were Now XX a even years have But projects ago. not we this like didn't type, at of certainly was contemplated this and implemented really

filed sought recently of RAC. terms have recovery we to adjustment in some in the a the investments with the into applies RAC, appropriate, to for don't case they assets these the of RAC that reason, phrase, rate we seek have the some concept renewable to that's clause, the a key will rate think those to deploying we but it's If base. treatment if for is which key So a build-out get not judged ordinary reason, apply, have rate are or renewables, case because keyword, clarification associated the of

Maria Pope

improve forward help And perspective, grid, of increasing our operator's and wind volatility assets stability renewable will investments hard. important on that we is I forward as look sooner, add portfolio. move and our any us for from be very from couldn't come these an system. really It the stability, reliability will we enhancing and would be the them will the to What also important solar really is these balance

James Ajello

of decarbonization plans don't a have without put on that, kinds think we cap resources. are it to we that Travis, so significant Just can battery I do the these

plan I the they have. build-out of the a So we achieving and that decarb linchpin, renewables are in believe,

Travis Miller

Okay. just essentially In as Or a qualify? would quick Clearwater follow-on. and that also projects? be RAC, That's it Would helpful. just Seaside future

James Ajello

The the treatment. Clearwater qualifies clearly project for RAC

Travis Miller

good. Okay. Very And on do expect levels based question. then you impact, just material snowpack the this year high-level anything Hydro there?

Maria Pope

XX%, XX-Q seen is That we to in probably big you as deal. River disclosures, so XX%. Columbia the and have Sure. hydro about low continue in a have our basin

on at While is across the [indiscernible] are XX, is pricing the Columbia. at and XXX, [indiscernible] region projects running entire based availability

a seen So we've downward.

can you and purchase see numbers, thermal an to the If our a hydro. use you decrease see the in in you increase look in ability first at quarter

also the February and of took in One place really was cold that things March.

of stayed amounts. snowpack all so in that And

dramatically around but normal. the improvement that really remember I lower some of so And amounts will third big the impact was hope where think it have you'll And the we year, second quarter, quarter. see significantly And above in see of to quite for I last that's we last year. versus the

we California lot having with of hydro addition, situation of XXX% they extraordinary conditions an In a almost water. have deal as

that, us or in So they in had all of kind West in obviously, California, of are years. XX particular, conditions haven't beneficiaries but XX these of the

Operator

Our of next question comes Hedge. from the Stewart of Hite Andrew line Levi

Andrew Levi

you can hear Guys, well? me

James Ajello

Yes, Andy.

Maria Pope

Yes.

Andrew Levi

Good.

Okay.

you Jim, retire. retiring don't You're

job. amazing You've really a done

you for are you Maria and nice that So together. guys and thank really I actually I hiring happy team the thank for and you

So...

James Ajello

Thank you, Andy.

Andrew Levi

Yes. I'm sure retire. they're as see sad you to go

Okay.

plan. equity of through like for you So the the kind the questions. it? your said, just me with I of base I as bear I just just it -- forward, way about the that the million have incremental here. first, of And guess, a current the $XXX and Is couple batteries so sounds gets kind guess $XXX the million that to you Clearwater. think then on ATM. of is questions,

James Ajello

Generally further battery that. then phase us fair will of bring us next will that hopefully the into think, $XXX take the million I say, a or to ATM projects. And than capital, project little the

Andrew Levi

something Yes, right. $XXX if plus last right, XX Right, probably add you megawatts. the million or

So...

James Ajello

for $XXX cross we over last projects, you should to if If battery add the close last able the those one. we're one, million

Andrew Levi

Right, exactly.

of Is begin, more I the look when of of money, like exercise? you it's $XXX far it million, $XX as kind a if million, $XXX guess, as the of may when because that's -- timing 'XX just need the ATM the like million. more you So a ATM

James Ajello

might the has last It transaction since known of plus price expenditures. share opportunism We'll management, there's We be. to year. there's be Block risk opportunistic. The right? want increased capital significant have And

as expenditures coming wisely want as sure way manage and to we anti-dilutive So we possible. those make that

So that's the balancing act here.

able payments. imagine, some dollar be will, as to use of that to, And money. And cost able debt average, to those we'll if some be you bridge of use the we'll you would

capital really X years the great have. the a of over large that tool for it's $X next So billion considering we us,

growth years $X here. So look we over about So as but talk a a heavy we is we billion, forward X incremental base phase capital lot capital, right? in are

Andrew Levi

of that to a my that growth EPS you that's EPS to your way the X% out to a if about this of -- have base Difficulty] you firmly, update, leads Well, speak you and to there. within And little X% question. growth rate, actually growth the rate midpoint But growth of this we're talking it, not I [Technical some the kind CapEx/rate so next CapEx X% Obviously, X% have higher, is bit. growth about? tremendous that amount there's lower that guess, to get latest obviously

James Ajello

get point mean I we now questioned deal a the plan. thereabouts regarding of one I higher about much this right. out want confidence can can a this lot how growth are as we you to I prosecute which great in had there? careful And questions when A is increase we the you were very ago coming, year plan we or growth think bills. be That's And to here, that need customer we go? rate, thing

larger base be get to value proposition. we require a customer respect procurement increased we deliberate And RFPs we in the in have phases only the these of seen that X% us got here, other in about might X.X%. range the slides think about the The we're illustrated CAGR slightly. squarely the X%. as very win I to a growth to in of rate presentation, XX% have that that rate so the you It's investor was execute We of

on guidance out, pause there, that growth well, proving we'll we're If think that. going rate that can we're I out get So execute. we reevaluate and and to we execute bearing

Andrew Levi

to my question But I answer the guess Okay. was, right? yes,

James Ajello

yes. Essentially

Andrew Levi

higher of Okay. And whether prices load kind like of the from is for apples-to-apples kind then of quarter like how it's go prices, put better then your the for walk of does PCAM? see is comes it all because of or -- PCAM you just as the the I no of the or it, when way to first upside a incorporated to have that $X.XX last that kind sales, power because impact $X.XX $X.XX higher have, into to and recovery combo you of question you a that higher

to or the trying additional to as of been far -- PCAM under it's the get that at assets that my so or the and that. it, -- the is, you're kind And would volatility storage lower? I spot then it's dependent understand on the question today, away the that changed. will That's battery being as if but get I contracted these as have coming you to And online, numbers whether whether get you volatility? or have -- you forward take you whether other of look renewables market, market $X.XX, operating those kind own this

Maria Pope

And great So system based some Andy. you're it's the that of on question, of getting implications an actually renewables. a energy if is largely at

first overall you smooth the owned so than contracted, to of we a be the able look spike, be see -- that our expected. That's the you're can is at than in out batteries, forecaster tariff. a whether more when volatility. us prices or the $XX And we to quarter, cost some million people these reasons And one of to in annual tail more using conditions, forward are electricity energy update they

X projects duration. The are hours in themselves

will but we again, to differentiation them there's forward. online, they'll have between market between or But a day we long-term and so And they have add not capacity and whether say, through we year, coming would will drought to, impact, conditions, a them let's be year really us different times -- impact good or no an forward absolutely not. we a they look of changes the able necessarily own that different adding move to as keep

James Ajello

think the refunds And band. this we're dead any be below I don't there'll I expect year. that

So operability that's now. my just PCAM, right of of in outlook the terms the

Andrew Levi

that -- the guess right? bottom, just like is all there's of PCAM is formula in $X.XX. a is $X.XX band guess But what even of your a I it's company, guess, some because I'm confused completely earnings little not that below I I on not understand real quick, you're hit -- if or not yes, dead that. I total just about, the lost $X.XX for kind PCAM

Maria Pope

margin quarter, flat. first the in was largely overall, So

So serving an what with we load higher mix mix, additional load we energy picked lost and that up in prices. and

the us we ever the you at see. management as through given a gas to we volatility, extraordinary quarter, end improve of as as would think, saw prices thought things lot of December we've the I well of first our these of done saw some times. none But

make there's So that better. early additional the a hope every will But it's no it to to with too full for these year. And resources do question we difference. call quarter,

Andrew Levi

the was first the in PCAM guys What quantify quarter? Did Okay. you negative hit that?

Maria Pope

million. $XX

Andrew Levi

$XX million of pretax?

Maria Pope

Yes.

Operator

questions to further no closing for call time. any Pope at seeing over I'm I this turn the remarks. Maria back

Maria Pope

care. Thank us Great. all. Portland Thank you Take Electric, forward today. look you appreciate very joining your interest much Bye-bye. General to soon. in We connecting you with for and we

Operator

Ladies Thank you Thank gentlemen, conference. this conclude all does you. and today's participating.

now disconnect. great day. a may You Have

Portland General Electric (POR) 28 Apr 232023 Q1 Earnings call transcript