Earnings call transcript Q2 2023

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Operator

Good morning, everyone. And welcome to Portland General Electric Company’s Second Quarter 2023 Earnings Results Conference Call. Today is Friday, July 28, 2023. This call is being recorded, and as such, all lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer period. Instructions] [Operator

I Senior conference Jaramillo. Director ahead, remarks, Portland over Please turn sir. Electric, General of will opening call the to go For Finance, Jardon

Jardon Jaramillo

us I’m Justin. you morning, you, everyone. Thank can Good join today. happy

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

to two. Referring slide

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

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

our CEO; today and and Leading of and Trpik, Maria President Finance are Vice President CFO. discussion Pope, Senior

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

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

Maria Pope

Jardon, Thank and you, morning. good

Before June markets into Trpik, years company management of capital and risk the introduce over who Joe’s roles CFO. joined would welcome in I I financial, like in our our brings a senior Joe new and Joe wealth Exxon. jump XX finance at experience. as to results,

So welcome.

$X.XX second GAAP $XX adjusting Beginning $XX After net This million non-GAAP and net share. reported results results impact the income with was or speak with $XX per our or quarter, the per slide diluted quarter second of or four, for share. of to we income million of the I’ll discuss compares In per key drivers. share. for $X.XX $X.XX Boardman, quarter million

power high extreme quarter which hydro conditions, markets have this adversely and unusually drivers regional with include, volatility. The impacted

and higher reliability address long-term projects, turn. Wind I load energy and digital such Montana. will Investments touch of system expenses the the sectors. particularly in to And ongoing on in and and maintenance as prioritization including XXXX capital Clearwater projects Eastern each the usage, growth by RFP semiconductor and Our resiliency.

I First, XX% commend below market quarter-over-quarter changes in at significant. well how for to volatility. were conditions have significantly about the the hydro Columbia were team they our year, This year, are normal. conditions Last normal. to our power River Basin XXX% costs managed

adjustment impact of to was including or our PCAM, year-to-date first The million power quarter this quarter. cost and this million million in mechanism last compared $XX $XX the $XX year, past time

to of head hydro into and expected third moderate quarter, low variances we As the July, these generation the seasonally large are August given September.

we Second, solid load saw growth.

from growth with manufacturing, in data demand continued cloud computing. centers sectors high-tech semiconductor increasing and seeing We’re

pleased legislature, past We’re historic to passed of Oregon session the see investments sector. that this to semiconductor during support the they

R&D University. These incentives, streamlined include foreign supporting support construction and $XXX other of credits the new and $XXX land environmental at million million Among tax grant complex loan are manufacturing. programs, million Oregon for State for and also they use innovation $XX to high-tech permitting

Oregon. week, $X addition We Microchip, we a in recently, Beaverton, operations their Research from Intel’s in to Devices and have investments announced investment seen last just this billion significant in expansion, Analog Lam

dispatchable of $XXX slide and XXXX Evergreen Between Oregon. the in part the five. procure Wind, At renewable storage company to approximately of resources battery Seaside Clearwater agreement an in May, RFP. the the to million located Evergreen, capacity Hillsboro, new Turning a end Battery announced facility as megawatt investing system, is the project XX energy and we now

meet way investments, to within of existing help these at we’re to strong rights of service and projects a our just addition the new In noted. growth that customer territory looking manufacturing and number I also transmission

are tax tribal IIJA monetization local funding of partnership equity federal and other and production technology to cash we companies, credits, with in communities, addition stakeholders. financing and In debt leveraging the investment from IRA operations, partners and and

in projects. million improvements, $XXX many over projects other pursuing $X.X we’re electrification, among hydro for transportation cybersecurity, support grants project upgrades, in today, approximately grid transmission to of total resiliency, billion As

future, As the XXXX rate we in focus. look to general squarely the rise is

Some with constructive that to-date. progress collaborative have pleased we the our productive made we’ve are and and discussions of been

settle a at PGE rate XXXX arrived issues, portion net and transfer several in debt and several a PTCs variable requests, agreements of ITCs, transmission parties in have XX% principle of of number business structure a of distribution sale capital the as XX% power such portion PGE’s and of that and and including case, and capital costs. equity, items the a

to optimistic week items covering next next the these continued expect settlement we weeks. coming stipulations their conference file progress. We are for and the is And with OPUC in

the we As to working PGE of appreciate day we on colleagues very control customer we as hard costs, to our grateful I’m are impact every look year, prices. to the the have balance who

largely for continue We O&M and work deferrals. to major the expect full mitigation year, excluding wildfire impact flat the of

order on While touch will in we operating worth certain in to have in much that Joe more do, work this front-loaded risks. we costs to noting his detail remarks. reduce have it’s more

We’re program, vegetation on mitigation wildfire executing management. and also includes investments long-term our which

new would the of approve see allow trees, power their florist hazardous introduction U.S. lands. foreign that removal to of federal the on lines pleased legislation to the We’re several service

of territory approval we’re OPUC’s enabling recovery. wildfire for the the the The automatic progress to wildfire recent faster cause that service in importance risk making of an underscores costs, adjustment mitigate mitigation our of

to Looking in of period of in confident as range beyond, per to word share a XXXX share, our is our X%. $X.XX accelerated We the of we and as remain $X.XX long-term growth per our XXXX position guidance well ahead, as for watch rate growth. X% execution company earnings

it turn will With our to you. through Thank that, financial you results. walk Joe, who I’ll over

Joe Trpik

warm and for weeks ground first the at for good in welcome, and Maria, the I’ve the running hit morning, my four excited you, opportunities and ahead. everyone. lie Thank I’m that PGE challenges

our our cover and results and I’ll investments providing QX outlook. on before Now financing liquidity updates capital

six. slide to Moving

of system prioritization efforts and Our conditions, execution second quarter trends favorable reflect in plan. resiliency growth of results reliability strong and less power capital long-term load region, market our our

unemployment to see continues was sizable territory as upcoming as service strong our June. centers region especially a X.X% continue steady we industrial remains our in of customers. growth class in among development hold Demand in projects, customer and of semiconductor healthy pipeline and data our among to economy The

totals weather-adjusted year-over-year, parts a increased by as to we basis, the quarter, witnessed QX less a of as early warm On total X% quarter. load load weather XXXX the the increased non-weather-adjusted compared more in X.X% XXXX. cold but weather later in

second weather, X.X% decreased but Residential X.X% DER increased weather-adjusted energy of XXXX. count growth year-over-year load but increased to customer more the compared Residential population and as also growth increased saw XXXX. moderate compared we by warmer efficiency and X.X% penetration quarter to

weather-adjusted increased X.X% growth continues. year-over-year X.X% as general or economic load Commercial

load high-tech growing customers trajectory. X.X% continue and Industrial on weather-adjusted at remained or strong, growth X.X% as their semiconductor, digital

market to last power in demand with conditions our We also a observed growth year, service territory. continued shift relative along in

average, primarily You dynamics that cost above may our remember hydro were favorable more last XX% driven by the of year, conditions fuel power market region and realization enabling saw benefits.

Current quarter. year economic being performance generation availability the averages. conditions the price of of impacted with throughout were the fleet below market factors hydro XX% and most challenging, regional much These power, option more historical making PGE’s

power as the capture did we limited the plants XX% second produced As we generation market from also to market power in gas to more our XXXX. More thermal our scares from compared power quarter XX% less flexibility power a of resale benefits XXXX. purchased and result, and

circumstances of the and energy dramatically effective we to are different dampen we markets volatile address year-over-year, and constructive risk these market continue effects working regulatory Despite evolving market to towards dynamics. through solutions management

X.X% increase the total increase in I’ll our particularly a revenues driven deliveries, now experienced by industrial $X.XX cover We in financial among our performance quarter-over-quarter. total customers.

conditions were more driving anticipated changes cost As XXXX our favorable attributable those in higher were than recurring quarter-over-quarter $X.XX I XXXX. highlighted costs power annual of in QX year the update and Current also quarter. tariff, tailwinds in EPS the $X.XX power decrease earlier, a not to earnings

grid net decrease second activities $X.XX and to demand labor to management for maintenance as resumed debt during for $X.XX There higher and as and to $X.XX EPS and system and quarter include was increased bad multiyear have prepare to related as vegetation of due $X.XX costs, related our maintenance resiliency, expenses, wind expense a deferral-related higher part O&M normal we of our credit inspection from of costs. reliable summer drivers benefit collection related cycle higher in gas post-pandemic the operations $X.XX items, increased portfolio XXXX generation operating peaks,

the the due expense We draws depreciation the expense and first saw decrease dilutive during to second balances a a debt completed debt to plant the equity carried decrease in quarter, on year-over-year, to of short-term $X.XX forward and due from amortization sale interest a quarters. $X.XX higher long-term higher balances impact $X.XX from impact impact balances of two due higher the

higher of result miscellaneous including had on a $X.XX due offset as $X.XX increase taxes returns a a partially improved trust $X.XX We items, nonqualified and from property market other other decrease to also by benefit higher conditions, from expenses.

due million major This previously the requirement settlement the of the we quarter. last reached impact which our Finally, resolved May, disclosed adjusted results $X.XX decrease for had is to our deferrals. $X.X Boardman a non-GAAP from in revenue

an compared to Depreciation impacts expense incremental and impact from investment, dilution of to the foundation growth. XXXX interest continued created near-term XXXX. $X.XX results reflect long-term investments continue of second our of firming quarter the capital to for those fund

customer related XXXX, XXXX as increase which latest to expenditures, connections largely through base seven, estimated our million shows capital slide $XXX road such growth widenings. is customer and forecast On incremental capital including from items

all for the assets Battery $XXX from Evergreen stemming for Clearwater $XXX million Seaside million for CapEx the This also XXXX the million including of the includes RFP, $XXX project, Wind estimated the for battery. and

procurement assets provide journey. sizable starting additional in and and megawatts the our these recent coming into our renewable forward non-emitting look serving to forward We during represents The secured generation and will XXX decarbonization flexibility cycle customers step later seeing late year capacity of years. the in resources this a system

behind our capabilities. energy RFP further growth now opportunities attention customer facilitate us, and system progress will optimize to resource in enable XXXX the transition, that With future shifts our clean

as reflect in was our An territory. addendum which expected Energy to focus. will throughout filing Plan needs the with sharpened Clean third coming OPUC, estimated our and RFP XXXX. quarter IRP in issued Refinement continue modeling inputs come in years XXXX is milestones be recently these combined assumptions will to anticipated filed later to with service the into estimates underpinning additional The the

resources earlier, transmission in being generation addition highlighted are considered investments. and capacity to Maria As

will that customer engaging growing projects to decarbonization provide with and and optimal partners We will be evaluate support base our plans. for our benefits regional local

evolve As planning coming continue move efforts resource you attribution years the these a may ahead. of in result, bars as see to

eight. slide Turning to

available in Our July under the in Equity deploy million the $XX completed of existing the our investments. in and Forward June equity Agreement facility remaining we under strong, Sale liquidity of issuance of position the issued We Total and as support and ratings million with June $XX million. along sheet credit as outlook. $XXX liquidity XX, credit XXXX, stable balance remains our investment-grade

the Looking our framework of anticipate this where to issuances balance issue possible. financing to capital to XXXX, $XXX which we up later plan projects, million year debt under of we finance to green

availability continue conditions to be our to have filed strategically which market We under ATM fund equity recently are will optimal. capital investments when timed program,

equity will track towards capital our the dilution we and remains in cash an We continue to confident over projects. ability focus capital to markets for authorized management and XX-XX remain Careful structure access capital time. important align with to payments our issuance continue

the next Maria we and early take will including see constructive in August. continued the pleased parties, which we previously engagement XXXX in to with conference, look As forward to GRC noted, place proceedings are settlement progress

manage as and the XXXX. digital growth high-tech in anticipate to load growth second guidance to balance expectations, results robust year quarter maintain challenges growth territory in weather-adjusted Our as confidence full load well line continued of group we through and X.X% customer of intend by led We in service strengths, XXXX our X%. our with thoughtfully reflect among the

power be XXXX, will the power second limit management volatile key. Diligent including the to leveraging cost our impacts of management half continued programs risk of of through markets

through region, and The third performance overall assets we’ve of well through for the annual we summer. July, critical been the additional markets power weather the and positioned believe we to in performance has storage particularly solid cost renewable observed the continued are in participation given quarter the

also quarter minimize the driven volatility. particularly constraints of impacts normal will challenging, remember, fourth You’ll colder to to indicators lower-than-average regional weather, to market by of was employ storage. point Current available pipeline remember continue a strategies and gas fourth we the and -- XXXX all quarter national more

Due to and Managing to operating on topic my adjusted diluted and discussed, applying reaffirming load previous our as I Maria remains per priority, this share full earnings look share. PGE. efforts costs year guidance we are $X.XX diluted critical experience of forward to at $X.XX per a these expectations,

on the for and we point remain trajectory inflection for that strengthens important focused growth execution foundation PGE’s an sustained represents and XXXX long-term value. PGE’s

continued investment long-term healthy guidance demand the and growth, service including a by of X%. enable capital improvements continuation our to transmission Our X% operating industrial opportunities earnings will profile, our emerging achievement growth our highlighted solid territory of fundamentals, of

we energy look between that we remain As to and remainder forward of our enables longstanding affordable financial collaboration to reliable the ongoing our rooted customers. and stakeholders and our results shareholders to to value optimistic for provide I and turn am our commitment XXXX, the outlook goals. in coworkers, clean, customers, achieve continuing about strong

now, for And Operator, questions. are we ready

Operator

And thank from first Bank you. question America. [Operator our Dumoulin-Smith Instructions] Julien comes of And from

is line open. now Your

Maria Pope

Julien. Hi,

Julien Dumoulin-Smith

a here, on front. I sign love Hi. flag Good some to morning Joe chat Obviously, CapEx, the the again considerations. again, congrats on too. Look, that of financing customer here. and I Joe, briefly, wanted great would to raising

especially you cetera. a talk financing financing I How elaborate sequentially little get in about, CapEx the center what literally is on more some all IRP talking and especially too? had and But procurement to continues that. and of outlook came guys like more earlier you in that a know this and the bit. parallel maybe you just higher. HCM, bit your then in as into here just this question, about just But about to elaborate, budget et plan can little you this of been terms Obviously, data -- megawatt for your industrial of CapEx as thinking with you we’ve to that, needs consequence fits your and are wanted with Maria are development medium-term? a a needs out ability for about resource And commentary nearer-term quarter-over-quarter this about thinking you specifically how Just procurement. elevated how looks

Maria Pope

Sure.

take me that needs, with from side and there. is, the and it the financial obviously, just So will drive start business our customer will let Joe

fortunate So located we are really to in an growing. be area that’s

into the semiconductor we in centers. electrification. as see of in-migration growth We data of seeing many particular, as cloud where and the counties significant from continue from computing most growth our to we’re coming operate and But industry, is well

are clean that also on energy. I meet to say, growth, customers, are many those -- should And we focused of

are So consistent their state towards views sustainability reductions strategy. consistent and with the General Portland carbon with and

energy up and with only we XX% or initially in we’re on Energy so additional not at so And looking Clean the some capacity side, renewable what filed our both procurement, about the from Plan. had

at added upgrades levels recent repowering with building But also existing to lines, some we’re Administration too they’ve Power those Bonneville announcements looking also connection of transmission largest and voltage transmission on that to the adjacent had. some

again, within right transmission, largely adjacent, our service re-conductoring would be repowering, territory existing it So, subway. and in

our to the important we this the Oregon overall, semiconductors with we and kinds I of look a state made we educational growth that It’s as important to issues that what can to of this past session legislative made important think, environmental really that and see very the to and to changes Analog jobs to was permitting and As is And as the load land our from well pleased system in support, Salem economy. are you have use want just support state the were sector an our announcement in step. for overall overall. sector the financial an

financing. to a with So, want you little about bit Joe, more that,

Joe Trpik

Sure. Thanks, good and morning. Julien

clearly we’re our committed to our to relates XX-XX financing plan, it towards cap structure. As working

Obviously, I’ve what of mentioned the here had rest asked You midterm. about financing the looking we’re for year.

exist, of call, thinking that I that trajectory of monetize here XX-XX cash sure what opportunities the all certain coming we’re financing to is, our, clearly are to as our to evaluating our have the want potential and and we of this certain flows deferrals, the changing our ITCs move for from cash -- towards has base grown. the rate to as securitization that want I’m way of I’ll forward structure. the And we But have about continue PTCs, as ability well that flow as make

that honestly to I’ll our sure towards the make of end at the XX-XX take that’s towards here, continue calculus and that. into but And move day, we a trajectory

really items we towards XXXX into path into work how is that those we and to XX-XX. as forward truly define that come So move it clarity start

Julien Dumoulin-Smith

line Maybe like clarify if Maria, to It time as very just just bit, it. a I been Got XX-XX, a little this. late I seems to also, know you’ve a to press fixated. and on opportunities transmission get well.

you you’ve about commentary could obviously, incremental as particularly Some back good your articulated decade here, here, a actually half if the the the planning, to company, mean, remarks very in I the is in your to here transmission when but we here? of watching hear, think curious piece it meaningful angle be number of the do sounds that be really of probably renewables the how future as

Maria Pope

As how think And by about XX% decade are the of we we as you coming energy grid. the end entire think know, resources distributed at we resources. is also transmission, about from Julien, it the our looking of

through prepared company on And battery rooftop that’s have IRA amount IIJA we electric projects I to but of whether expect the articulated going customers, IRA in also partners, into storage, clearly, comments, we’re focused federal to with my substantial solar, in and dollars dollars coming vehicles. as particular along

going this be mix sort have the will of the resource will will at a more -- procurement the will that so and it traditional a we’ve It kinds that. seen part It certainly the past. we projects from And to of but side, we of necessarily mix. doesn’t of continuum necessarily in mean transmission look as be

Joe Trpik

of We clearly here. lay here, And a want clearly results really tied well come project. Julien, investments. thoughtful but be have availability to to some ourselves path a bit, is here to incremental to point clear But just incremental as movement, to timing XX-XX I projects trajectory the out major direct just in will little significant a the these want as future, real along we will to our to opportunities that I’ll -- question to of a answer what I refresh up will RFP and mean, the your as line really my align which be in call

Julien Dumoulin-Smith

Yeah. Absolutely. and again, of Best speaking [ph]. luck too here congrats guys, Joe,

Joe Trpik

Thanks.

Maria Pope

Thanks, Julien.

Operator

And next And from next from for Pourreza question And please. comes our moment our thank one Guggenheim question, Partners. Shahriar you.

is Your now line open.

Maria Pope

Shahriar. Hi,

Shahriar Pourreza

you? guys. Good are How Hey, morning.

And can you discussions. recovery? all If as we bit I little prospects see appreciate on for the a Faraday start the color the here you do you case. the you Obviously, of the But get maybe at guys been put What could the pathway you provided with items the forward from forward? your modifications, PCAM more on the settlement a receptive some for to that spend? around discussions can secondarily, the then, at level speak least high parties proposed to have

Maria Pope

Sure.

So, first pleased progress of to-date. all, with the we’re really

the times parties other a capital no that I any than settled team they’ve Faraday Our met and have number items several projects have forward. put of we of and is as outlined. different

the I whether the parts projects. southernmost and the projects in say other British hydro in United you’re nothing that, would of States, parts America about easy to of northern there’s South Columbia

and had that power, facilities, that did would operating that a customers and was years, will forward. another as The we clean years Faraday been estimate replacement for for over refurbished facility reliable and the for cost generating operate low I move and consistent power it it’s XXX we with, this our XXX

we forward, the and have at PCAM clearly, noted, O&M going more as capital case As sell, rate issues we costs. look we to some the

a PCAM of then important number And has components. ROE. have also We

game what years to of I leaders a on some in think company skin Boardman. have in very XX put here. operations, in really the many plant plant really are coal of at on place for we helpful is circumstances at particular, PCAM little And address was time our mechanism also those And different. today, history called the ago, The that the operations side

of renewables in be a our more markets. volatility market much to we’re in really integrated we wide the mechanism to move the renewables is a we set transition as Our to the balancing energy are towards across prices reality percentage needs current entire West but updated so renewables of integrated as reflect generated and West more higher and the and as more more markets

proposing that that from remove well sharing set the established. energy we’re call so And our be operations. band gate that through baseline that tariff to I significant And sort the even the which dead the and electric that Interconnect of XX-XX pretty related would often the known exclude to we sort not off we have of every able market are trigger fall. of excursions Those events, so update and come we are of own what Western and the annual alerts we generally across out they’re

a We’re establish price cap any also looking year. to given X.X% in

to excursions be basis. So exceed the future that would balance that and and that would roll years also a should minus there plus be on

topics. issues, are I agreements So we think, that’s far, these as of with work collaborative understanding and a we changing nothing and the about have lot around really the been the conditions to and through complexity. how move will The parties so easy market There’s do dynamics discussions But certainly be ongoing. come forward.

Shahriar Pourreza

moment Got was procedural -- the utilities it. wildfires. dealing with the weeks Maria, at or conditions and of to recent no recent condemnation speak your one lot There’s across That’s plan noise inverse territory a you most the since in your there’s other helpful. of any negligent. approved? just neighboring But Oregon. And legal been been Can has on just in color

Maria Pope

Sure.

that of we other our more couldn’t on took peer say comment this first don’t approval it us capital. recovery on prudent place our I So, or be of any utilities we ours just places. this on pleased adjustment wildfire or both be would in O&M the clause with May, litigation, all, costs, automatic in whether and region allowing that

do Northwest. we dry have forward, conditions as across very Pacific the then And we move

on alert. say, And as we’re lot unusual. a heightened very season. on in early news Canada You’ve the a the I’d company, of probably in wildfires seen That’s

of We to I think it look and at start several major wildfire buckets.

weather our system wildfire cameras and how deploy transmission high-definition, we run management and The made that technologies, that’s aspects. first one everything distribution ongoing big a we and AI-focused have of system, of vegetation is difference, our to mitigation monitoring, how prevention sorts all of those to from

glove we communities, we make local sure And hand with information. that firms our work the to have best in first responders,

also the Department Forestry, working We’re of U.S. with Oregon

Service Forest basis. regular a and on BLM

Shahriar Pourreza

Yeah.

Maria Pope

response. really And the come that that’s rapid in bear. the The on make around are able quickly. next and and That’s if detection out those bucket any then to where where is to relationships them response we’re the technology really sure that that there sparks quick put to

So operating we’ll it’s a work. year-round is process as that changed have and environment a definitely a lot of we It’s we and have today forward. move

Shahriar Pourreza

guys. Perfect. time, and taking Joe, enough is appreciate I it. congrats spot. on Thank you, It the

Joe Trpik

All right. Thank you.

Maria Pope

Shahriar. Thanks,

Operator

moment And comes Richard from And question. Sunderland you. thank J.P. one our next for Morgan. question our And next from

now line Your is open.

Richard Sunderland

hear me? Hi. Good you Can morning.

Maria Pope

Yeah. morning. We can. Good

Joe Trpik

Yeah.

Richard Sunderland

Great. Thank you.

cleaning a here. items few Just up

You budgeted Curious, the should XXXX years comments. that CapEx CapEx for to they well rate? versus XXXX forward passed trends of the Is latest you’ve in prepared those relative in the as bit raise a and beyond. the continue what little in bias upside

Maria Pope

up and I’ll take let this Joe handle one. Yeah.

that recognize CapEx think of I one the we customer should things that of reflective needs. that is the is have we

that have We of road-widening, impressed the municipal have in rates particular, connects work, in as gone meant continued well his have number want prepared amount interest with Joe and up, little as Joe, large been bit of as one? our customers, that on remarks. in But to address semiconductor to you do addition new we see in a region. our growth digital more to continue the

Joe Trpik

good morning. Richard, Sure.

capital. you -- it, Maria’s is $XXX we could base million. capital incremental items will to customer that as we’ll comment To million has that see, as be here, call amount of for long-term what $XXX look I’ll demand continue or out an reevaluate and further growth-related our customer that continually call what Our we

adjustment We to long-term here plans. will an do to our look

watch to continue customer to to see where goes. going We’re growth

budget do Of course, volume at and can we update needs we else a a road need at take hold will annual will a if include or trend variable then, watch the be trend widening, continue something obviously, at that the forward. that. Those to as evaluate And if be extent next a type that things items displace to that in something to our for of keeping look we’re long-term a forecast continues to million rate. We’ll customers. and rate, it of within be on at will room is we like do either there that with our we higher that we do to here we to do higher go of $XXX connections, that

Richard Sunderland

Understood. just Understood. switching gears then NVPC And there. the Very to outlook. helpful

think clear, wanted I the down drill but bit commentary to-date XQ very little to XQ. just a versus on of was kind further I

gets sounds like of you versus year. and you far XH relative on year, been that dynamics you you versus need the what versus things how of that in half first lot a have so I better you’ve the seen XQ in to it if XQ? the your XQ and to curious in effectively came So there Is XQ kind in much or baseline then outlook see guess the normalize get what versus where I’m challenges about is what last to

Maria Pope

the last have where area we an couple over is seen of this years. So rapid change

us time than a period have they’ve come while and underlying of of think more us faster. issues, at I forecasted the would much short expected in we any

last exceptions I’ve been how more Clearly, change with better are and hydro really and each time conditions impressed time, tools. year have learned period our with more river big we to Columbia. into in it’s the few through this a run with you Northern because has almost third all excess the folks quarter, had prepared from this impact. the year flexible British a down how in hydro, never of with capacity any have maybe systems going But

we’re look we would going that The quarter. into at say -- I where third as

our be event also whether overall with would that just set clearly particularly weather region. to are risk, but keep which of online well We’re up. heat, particularly We conditions, have plant own the operations, extreme hard

last our quoting extreme in of step gas our weeks two unusual quarter. pep But saw other natural repeat $XX into year. moving the the we and $XX, prices as we the more truly hope we not are have we issues leaders past as third feel one December this and certainly in day, of to the And

Richard Sunderland

Thanks clear. the congrats Joe, Very and it. well. time today, Got as for

Joe Trpik

Thanks.

Maria Pope

Thank you.

Operator

for Instructions] [Operator next moment our next you. thank question. from from Anthony our And And Crowdell Mizuho. comes One question

Your line is open. now

Anthony Crowdell

expect Joe, I a an slides, the our get rate morning. job. on just Good this rate deck, the highlighted when do here. I that’s I removed. -- congrats new -- you In base update base first, X.X% guess, an CAGR. on growth? slide previous mean, Hey. you quick couple guys questions of to

Joe Trpik

Anthony. morning, Good

a growth long-term. a look like an call and with So case to -- or slide up in talking we come that, RFP to what also both what us We’ll relates update reflected I -- changed our have what more to we’ve year illustrative update on it cause we given to win favorable the next reduce and continue with rate we what has base is We’ll update you’re as outcome. we a XX% will a as on are guidance we’ll then could potential believe, that that is, thinking would rate -- case our that. our what base the into Anthony. on a Nothing on

type and reflect call, call the small the, in for what really in have was as updates attachment. periodic. reminder, what But there we’ve there, We changes. which both the you materials of where small base presentation, adjustment. longer a see our what is there term do will just any without the that Anthony, then to soft -- I’ll But those materials, we call again, the the have label -- -- a Hopefully, will that can here investor do you that out update made in changes soft in that as And set a of the see reflects I also an distributed. I’ll we update second

Anthony Crowdell

is a hard this EEI be third our quarter get to is like or going an likely Apologize, another to call of it update end update year more the update?

Joe Trpik

period. will October capital hard when update Historically, we do have new We we our issue the do -- -- we a in forecast that our XXXX. done when for full our

Anthony Crowdell

Are else. the and partial as markets have when a spoke and in kind struggles once that and more power it zone Okay. changes maybe Great. challenging PCAM and have issues intervenors I maybe hurdle then, including the more with that’s And some that the about region settlement? the Maria, the the is around, guess, even maybe to the to volatile PCAM highlighting of include and already the renewables, of jumping that impacted everything Western maybe or your was you not higher settlement become modify that as the

Maria Pope

that was read any think to conclusions market past I and than higher the today volatility are early conversations There’s I into question it’s that think no in it them. too is the the and than energy hydro system, higher on was the that conceived there solar through plentiful was when and PCAM conditions. certainly renewables particularly with energy excess fluctuate wind reliance when less and ongoing

transformation I energy would that good say overall, They’re markets. understanding clearly high pretty at the a level of wide. of a there’s West

between Desert We have and the temperatures given operating Southwest. a different lot conditions ourselves of and offsets the

adequacy needs tremendous You consensus around see the California a market lot further Power or towards of is regard importantly, the System market exceptional. this And there Pool work Independent SPP’s with of -- Markets resource and Western either a in integration, the is most leadership Operator Plus. with

in adequacy. region that big some there’s of more one this really entities We the capacity the day. and head a resource that period a difference. August to issues lot we coordinated are it can as additional with the transparent And into towards making It’s don’t do work you no is reasons working are necessarily do financial that of there’s and significant. the question But every do intervenors. They see

Anthony Crowdell

rate already the of maybe, that assuming maybe then full target a outcome believe the a -- company’s settled. case achieve I has to has just accelerate capital litigated, would case is the in that And structure the already settlement Great. lastly, proceeding structure been XX-XX that -- reach whatever the Joe, But ratio? you capital the rate

Joe Trpik

Obviously, so. what to on mean constructive consistent think don’t positive our eye capital. I stay to I a aligned call a outcome we keep are movement towards going on to path XX-XX a major always I’ll our is and long-term financially. us

go or us deviate one I from is think trying a other item way think mean I long-term the So short-term towards. structure what would we’re that don’t a to really I

Anthony Crowdell

Thanks, my for questions. spot, thanks this and again. Joe, Congratulations on taking

Joe Trpik

Thank you.

Maria Pope

Thank you.

Operator

am turn back closing you. for questions. to thank to remarks. over now And Maria And no the would further showing Pope I like call I

Maria Pope

to next appreciate and actually conversations interest others for today. further believe all We joining Joe forward us you many and your Portland look General week. We in Electric. are Thank with you meeting I of

then forward very So thank at now to you. EEI. look seeing and Thank between least you much and at you or

Operator

call. conference today’s concludes This Thank you participating. for

You may now disconnect.

Portland General Electric (POR) 28 Jul 232023 Q2 Earnings call transcript