POR - Earnings call transcript Q3 2024 | Portland General Electric Company

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Operator

Good morning, everyone, and welcome to Portland General Electric Company's Third Quarter 2024 Earnings Results Conference Call. Today is Friday, October 25, 2024. This call is being recorded. [Operator Instructions]

For opening remarks, I will turn the conference call over to Portland General Electric's Manager of Investor Relations, Nick White. sir. ahead, go Please

Nick White

Good Thank Gigi. us for today. morning, you, you everyone. joining Thank

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

Referring to Slide X.

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

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

Pope, of CEO; Vice Turning Trpik, Senior and Joe Finance President and to leading are Slide X, President and our CFO. discussion Maria today

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

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

Maria Pope

morning. us you Nick, happy can and you, join good all Thank I'm today.

focus operational and Our third on excellence results. quarter delivering PGE's reflects consistent

Starting with Slide X.

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

Three our underpin results. key drivers

cost resources stability. of low the power by improved from of quarters third summer several improvement power tough despite hydro This heat. experiencing last driven and renewable First, acquisition conditions and PGE's is performance market regional very Certainly years. significant

year, to a center third XXXX led as and the management related expensed results and as our Due third, semiconductors and across damage risk Second, strong deferral. and the outlook robust operations. to for quarter work well of continued by execution thoughtful solid manufacturers January full and storm growth of cost we data customers. portion costs And the our overall demand performance

test, remarks. share. detail earnings in this quarter of third earnings will of charge resulted Joe in in $X.XX Given the his per a to an cover this application more

upper the original range. results year, to guidance full expect we half For of deliver in the our

We to guidance adjusted our to share. diluted are XXXX $X.XX narrowing earnings $X.XX per

focused by We our wind X. capacity, megawatts Slide generation portfolio integrating solidifying on of entered energy our to optimizing XXX Turning assets. and XXXX new renewable additional hydro adding

Our reflect of these and quarter investments work. results the importance this

and significantly capacity markets, impacts deployed and our hydro the helped record-setting conditions across have strategically hot fleet most steady Western challenging particularly We offset energy periods. energy the the energy even Similar, in West, procured the markets to below additions West-wide across summer temperatures, with July. generation during and

and Our power did teams operations outstanding generation job. an

from capacity in the Development at September, provide a mix. commissioned to important operates our We also Wind Clearwater strong generation officially performance which highly saw factor and diversity

all this nearly than XX more have there serving days X This Clearwater, addition is residential of of power. with customers year equivalent our already Notably, wind-generated energy. to PGE gigawatt with the been wind of generated where

are We Storage to more and success, even excited system. incoming our Clearwater's flexibility Battery Seaside Projects, reliability complement to with and Constable the providing

data and customer a to individual residential municipalities a focus from customers. and remains centers and Energy tech high Clean hospitals priority and

PGE's -- voluntary our program program. future of by and green More XX% chose XXth the NREL. renewable customers than a in volunteered residential enroll rated year PGE business in to was For row, #X our

cost-effective meaningful next of securing made generation reliable, and in also We progress the clean resources.

a battery and OPUC. RFP shortlist independent shortlist are final mix September, XXXX solar of projects Included In that critical provide diversity and we the the with acknowledgment in the on coordination submitted capacity the for resource evaluator, options. by

energy balancing clean while goals, projects help also and advance our affordability. reliability these of All

the top-performing bids, this prioritized We've X negotiations into structured at We A. the groups begun and request list of stakeholders. Group with

if regulatory B process, remaining is necessary. advance projects, shortlist and engagement continue we through Group with negotiations the we'll As determine the

completed late received throughout November the with additions of is numerous future. bids acknowledgment continued the refinement to other by portfolio be be expected XXXX. in could contracts We important expected OPUC shortlist and that are

capacity, file for to XXXX. energy a significant need clean our conduct and RFP an we update integrated Given follow-on in expect and resource to plan

Turning last hearings parties settlement and our appreciate call, XXXX PGE held and participating across productive month. additional exchanged testimony this rate review. earlier the year. the to dialogue the Since in during discussions We multiple have

operational on as possible customers' PGE prices laser-focused as remains our efficiencies. keeping low by driving

progress capital as which wildfire results, grid overall replace and This addresses reliability. storms, as capital reduces across to focused quarter prioritize on shortly, power management approach third particularly costs, Our power cover our that infrastructure, both that and we plan vegetation this winter risk. will T&D includes O&M, gas and aging our optimization reflect systems as enhance storage impacts work and Joe plant well to

the aggressively continue credits project $XXX Energy million and production investment which Grid to transmission and Innovative Resilience North Most upgrades also U.S. of and capture by grants, Department successfully We United a to recently, existing dollars federal and billions a of includes pursue for both of Connector, partners. from the led the credits, Grid with tax the federal tax grant Plains Partnership, ourselves Colstrip received line.

transportation as investment from more. includes advancing powerful our possible, the benefit game-changing workforce These business. clean federal helping projects us innovation. our and accelerating production parts low all grants development is tax assets, prices while as and distribution customer transmission, energy energy as transformation technology This long-lead cuts generation keep well electrification, and of This enhancement, support and as

me our of critical, communities, the our are customers these coworkers, advancements turn While and to priority. safety top now let

Extreme local utility requires at capabilities -- of requires a natural wildfires. Addressing wildfire level. remit also and collaboration and investments in one. federal not sharpening and and weather, our program. risk wildfire legislative year-round state agencies the in particular, a It with our supporting regulatory mature but the continued maximizing national potential across West, the and societal actively disasters These are issue, mitigation and state solutions just

Addressing and risk across utilities a in stakeholders. country the continue affordable reliable is fashion and customers, Oregon holistic working and employees communities, providing to in critical electricity We with ensure partners are shareholders, all on safe, legislation potential policymakers can for this service. that and

and than grown compared years. and base, Extending for territory further energy costs, resilience our Year-to-date, more with data including of Finally, we've of and to service our customers, customer and had trajectory much ecosystem demand market. long-running customers. trends. centers join reinforces improve these these manufacturing of research West. to decision power turning This help resources This X XXXX. energy working the to attractiveness observed across the to access needs informed This energy X% policymakers, demand last our diverse increase strategy. communities a highlights visibility to we've By a our growing lower the an the Meeting and growth. has day-ahead to has industrial clean will semiconductor the diverse closely

focused on transmission also are capabilities enhancing multiple and in areas. phases We our

service clean extend closely a maximizing goals. energy network. we transition second, lines our Western critical performance alleviating and execute the reach This in existing decarbonization collaboration partners customer North adjacent advance as is affordable of like reliable First, and with our bottlenecks continue to working work with way. the to growth support shared and and Plains to the of on the our And territory, rights Connector

significant robust reliable demand and ahead, strong experienced providing power resources, on execution remain We and a clean safe, focused stable amount served customer our base. drove on growth of We quarter's integrated affordable this markets Looking focus renewable and energy. growing performance. our operations

over turn I'll to that, Thank With Joe. you. it

Joseph Trpik

morning, you, Thank Maria, and everyone. good

Turning X. to Slide

demand results improved QX Our our robust customers. cost power and conditions industrial reflect regional continued growth class from

last cooler than quarter, than region but Our summer. were conditions throughout again normal slightly experienced warmer the conditions

XXXX XXXX residential QX and but X.X% weather loads compared X.X%. increased increased decreased XXXX. load X.X% year-over-year increased as by by adjusted. X.X% customer adjusted weather QX overall QX Residential X.X% to count

customer. usage However, driving this was by efficiency partially offset energy lower per

to of and weather driven within with further driven Commercial quarter from These is and largely to growth XX.X% of pipeline infrastructure growing decrease opportunities or last expectations demand as to energy this customers, a slight growth near- reinforce load chunky year. a expansion load in and continued adjusted. relatively well emphasizing across area. by The QX territory. weather-adjusted flat as industrial service the modest our This results X% for experience long-term semiconductor our visibility seen our increase class digital Industrial or remained growth XX.X% increased loads efficiency. compared continues X.X% by

are weather-adjusted As X% guidance to X%. growth our we of load such, reiterating XXXX

reiterating our growth guidance We long-term are low X% also of through XXXX.

We our IRP, potential with will we conjunction to plan next revision file in evaluate in for continue to this which of XXXX. QX

performance $X.XX An EPS our cost the now quarter-over-quarter. power due our of and $X.XX in detriments conditions and EPS increase comparison for increase cost throughout reverse EPS financial observed XXXX this region. from I'll that revenues to our a territory driven a favorable cover of power to power customers. from due seen by in industrial increase $X.XX deliveries costs $X.XX increased primarily increase We to a QX

less XXXX, in were stability day-ahead lower including market a than we factors, Compared handful and peak volatility gas mid-sea lower challenging market and the the very average to far to XX% heat of pronounced spikes. July winter solar of prevalent, which Improved driven a events earlier price environment. and in last more prices to QX operated X,XXX market quarter occurring throughout than new remain and Desert hydro due year. from penetration by levels the megawatts Higher a early were helped and year. throughout Overall, X,XXX saw of prices price higher-than-expected mild storage hydro new storage when significant battery runoff the megawatts Southwest in California void and

We from team that of update anticipated capacity including The renewables and of lower which also contributions the we taken the tariff. drove by added consistently power conditions new our summer. our Clearwater portfolio, hydro the costs Wind, actions than and favorable saw throughout in benefits annual to performed combination

the of tax service the lower benefit deferral and credit from generally heat during trust from tax decrease assets $X.XX primarily higher impacts. $X.XX operating restoration on during nonqualified and increase and A a other income net returns related items, recovery items, from including driven improved events quarter, expense, by expense maintenance

had to mentioned a Maria damaged decrease from deferral. we Lastly, related the an release $X.XX XXXX as January and storm deferral earlier,

that we As test. of deferral ROE our emergency of be forecasted year regulated above used QX, would earnings full the for threshold the XXXX the end storm have X.X%

of will a that been costs third million $XX As decreased that million in our would storm customers the have results, quarter. have expectations to and decrease. means from $XX corresponding XXXX improved deferral from a charge we due likely collected that taking to This result,

applicable earlier It results original we the such we've and and our had the the to actual deferral when our to of had related outlook. a related unique the exceeded and on year. equity performance, reassess January impact test XXXX will the regulated storm this to is became This the on return a quarter became amounts to favorable third relevant when major test deferred we this storm earnings based year. end We for

we the but XXXX On decarbonization X forecast. based for support the our We've we're our year-to-date CapEx We've forecast on customer capital growth, to plan, XXXX headway modestly meaningful thoughtfully in rigor reliability revised to progress. this to made build level have at run. our XXXX in proceeding execute and program long to Slide our elevated and capital and

come remain to battery XXXX end projects, XXXX, on latest and middle online Constable Our in expected at are the of the schedule respectively. and Seaside and of

are and We on battery of pleased shortlist. projects solar gigawatts the the nearly with X.X XXXX RFP

current and does our bid potential contract occur build reminder, RFP include selection project from the forecast forecast a capital projects. transfer to any ownership Updates not RFP would potential execution. our As upon

are the contracts projects in expected course the service with expected by Transfer finalized be We end XXXX. final second in Build XXXX execute agreements of expect over be to half XXXX. of to to All the of

Slide liquidity financing. XX and a of is Total over summary available liquidity September to X as billion. $X On of for just

remains credit outlook and strong sheet from investment-grade rating, unchanged last Our our disclosures. balance

our strong XXXX base that the plan. QX was in equity but amount million focus under plan drew priced to we further The our to the capital we've draw In maintaining reiterate or expect program. structure to capital action unissued satisfied XXXX residual quarter, I'll at end the under we needs long-term metrics of on million financing support credit $XXX facility capital would legacy the third ATM previously $XXX priced September, remainder our management in and support plan. derisking base any our our and

debt up last $XXX to million, expenditures. the expect We capital year issuances quarter of focused in on the the of of funding

last base balance investment our support our million for XXXX approximately through strengthen after the structure We need equity to -- we our anticipate negotiations as years. few continue anticipate as that taper needs base assessing base carefully our from on the potential annual XXXX, over highlighted next the $XXX we equity of to RFP improves. As capital our XXXX capital sheet investments proceed. to call, and annual needs We're contract

in strong opportunities options long-standing capital pursue ratings ownership in RFP financing continue that financing maintain our Consistent with expect we'll accretion minimize maximize line our our dilution, structure. to structure. manage and with continue We our customer value, authorized to capital credit practice,

case, its which proceeding Turning briefly rate to through is the XXXX final stages.

noted, settlement October. the November, for the held end the [ ahead discussions quarter ] October filings As hearing Maria oral GRC and was of for of throughout in arguments continued scheduled early and scheduled are mid-November. early

XXXX with remaining and the filing in have with For all anticipate We and issues principle the occurred we AUT, that discussions all the collaboration reached resolve to and date. in stakeholders a agreement being have remain committed to to engaged stipulation coming appreciate the weeks. parties

setting creating includes Through and in benefits displayed conditions stage our manifestation This and QX, from team power we've through efforts the QX. we quarter the maximize September, on our our certainty the laser-focused plan, to favorable As to reflect results our seen on XXXX been XXXX. turn our long-term the has market results continued strategy. for of executing the

processes on of annual each Our as update an the basis, annual power year cost resetting or operating AUT. part tariff

in While and extreme volatility based established the closer year. our XXXX, on be conditions performance dynamics improved will the to reset weather XXXX next baseline less market and we an in helped reduce recognize AUT may market

and high-impact to and actions both our has the As from have deliver risk elements QX to winter reduce ahead the year. shift value for plan the some such, favorable deployed heating on and strong of of This lock storm caused we service QX. to XXXX provide customer of to positive expectations season in positions

the AUT less favorable have to expectations last power conditions QX also outperformance in XXXX relative XXXX, than year. QX cost market In enabled We assumptions.

Our remain year. deliver that full our With strongly QX to QX indicates the market are the relative in this of AUT. sight we outlook confident given progress, XXXX for conditions moderately to unfavorable our line and to for ability year-to-date

$X.XX from earnings such, to $X.XX we're As range guidance share per XXXX per to the adjusted or $X.XX upper to of narrowing the our $X.XX half share.

projections, a our reaching us such test at in favorability are be deferral favorable results range mentioned current on result authorized ROE could our Based the regulatory the impacted earnings that see that earnings of of current top I our forecasting by to earlier. To extent we the levels. we expectations, would the

strength We execution. our capital of long-term guidance improving are of service to dividend territory, robust also by earnings our and X% growth opportunities and reaffirming supported our operational X%, the

XXXX, of energy, unchanged. while to turn we reliable providing costs as our customer clean focus As low the and closing possible, of keeping ongoing months as remain

deliver We are continuing value the and customers, to serve. prioritize operational we excellence and execution, to allowing communities us maximum to shareholders our

now, be And questions. for we'll operator, ready

Operator

Our [Operator JPMorgan. Instructions] Sunderland first from Richard line the from question of comes

Richard Sunderland

of the topics to couple A deferral on storm different hit release.

this And remaining market X.X% NVPC today's case, that understand like the you to wanted relative driving there just favorability the to sounds release it ROE if earn Or test? expectations this of Just that's quarter above other factors? to a deferral? could drive is are but the improvement

Joseph Trpik

the there by favorable be mainly it's yes, part, would deferral. to were expectations NVPC first in extent commensurate outperform driven continue performance. we that reduction to your our to that So a And to

Richard Sunderland

Very you Understood. O&M the on. the been Maria, you forward. elsewhere? trending expect offset Do there mentioned to Then in how separately, scripts you have that you clear see of executing some continued cost I'm inflation areas Are increases? curious there. work going

Maria Pope

It's great Sure. question. a

is system in safe our high We that risk wildfire our zones. fire ensuring as have and in our been significantly resilience investing particularly

over bit our fixed drive efficiencies more additional that with those we're done seeing, also a to to quite spread we're We growth able customers. have And of the operations. across work costs

are we've good in some seen well. includes absolutely serving count We base had capital as the largely area work while more of efficiencies flat head of growing success our we're keeping opportunities That seeing with across and we're we so the IT also And as operations. our deployment of our customers.

Richard Sunderland

squeeze to Got just it. And last one one. in

with ITCs lower XX-XX that's of You a meaning needs funding out those because you CapEx. know Curious about I funding, ITCs? RFP potentially for talked see the equity helping on been if there while. equity the

Maria Pope

all the the as really farm quite way that we the as an a addition Wind state as clean forward Absolutely. grants received. in that part dollars of those But going bring in Clearwater to it of financing It's that in Oregon battery put and our that online. the customer possible well you should prices know federal we're important as it's and associated queue. storage transition. PTCs of we've to as federal a with And can bringing ITCs we the with bit we lead There's keep energy of low a

Operator

from line question next of the Partners. Guggenheim from Shar Pourreza Our comes

Shahriar Pourreza

in think the point, for this protections. in Can a like session, think at I few legislators December some state is a states to other pre-filing it around long seen you any XX. I the discussions fund we've legislature speak preliminary upcoming deadline legal around or wildfire the sometime be weeks,

So from maybe just your a color bit more prepared?

Maria Pope

have and for work, Sure. well are are we working of and across wildfire of operationally in Shar, appropriate been to that the some to been risk for in how operations both the focus with service and the state in the legislation in to we work with only rights working the and long not federal fire. parties for the know, handled. regards changing We'll way rules our at liabilities reduce particular, our also extensively as continue focused as we as territory you of on national at level that the level level. all state we've do work, advocating But the

lot we and none summer of our And management wildfire, wildfire this really of part saw of we've threat in bills the see as over concern silo territory. land you'll significance the eastern wide companies significant state, service in this a is past our at a there forest fires And session. multiple in important as to state well think because regards with other I agencies. the that's of coming

Shahriar Pourreza

know Got percentage just a is having. mix you it. semiconductors? of Perfect. I of growth. you industrial Can And maybe what bit little the seeing industrial Intel? of Intel of issues XX% on in the that I that light Maria, of guess sort is touched some durability to But of growth the you're is speak

Maria Pope

Sure.

takes speaking, key which operates of capacity. not are broadly semi-analog territory, area on that research. just has state So our digital manufacturing a in XX% Oregon, our in X in There place companies manufacturing of semiconductor the Lam devices, service

of here semiconductor advancements more their and research created see You as the this have that and has Intel. Intel were of that an campus. other ecosystem Intel's any really as expect of changes the and manufacturing those in the half led scientists engineers region we well to manufacturing out that of the resulted patents Microchip in do than About significantly, science that we has state strength supported and in and in not that

We areas to adjacent are manufacturing. seeing also growing are semiconductor that

Mentor that's others. Graphics separation So Synopsys Systems, like development well air EDA research as Cadence companies and to as and companies Design many

also We centers, growth quite know. are in as seeing of bit data a you

About space the but manufacturing, So sort semiconductors, load is a of of centers is this half much it's in balanced today is a fastest XX% very XX% general high-tech growth portfolio. our focus. high-tech and data growing in with

Shahriar Pourreza

then for Got it. one last And me. just one

more increase? potential in spend sufficient CapEx in due docket XXXX it you plan 'XX RFP and in hit that Or just be 'XX is of commentary for to beyond ability interconnect the work impacted kind some Does transmission about as resources we're transmission target. the thinking that? to there relieve your that have Just congestion, to around

Maria Pope

received we And to own congestion, no done. to significant There's Connector. co-own do with enough Plains the of others also a development. I have bring across the leaders company mentioned separated renewable Warm country and more we in you'll of North reservation with where question, million conjunction that's continue region. two one is are that state. to parts facilities expand grants to of important line our spending Absolutely. there we I CapEx that we It's we the the in we see hydro need work Springs transmission are of to between with bring Tribes on reasons will group and transmission $XXX getting continue entities Yes. prepared we that have usages. able that is think across the that focused within that the Confederated are relieve who partner those additional do, and that as because my we one the partnering But to for We're as the projects because that access online here the renewables not well of the many being to customer curtailed remarks, out

many that generation no in So incremental there's network. and costs with construction transmission the of associated building out instances,

Operator

next Nicholas the from of comes Campanella from Barclays. question Our line

Nicholas Campanella

I going just settled rate the to So AUT. to the on the case, you're you -- want ask -- said settle you

covering structure, you to the should is do few Just to willing what's point? my cases? that of it's Are we haven't to of of kind just how at then continue ROE see kind settlements kind settled. components forward route? just one still cap get to settle forward something you the state, about a other Or rate thinking that time next the of you ability take times fully-litigated as that? in and in go you And company, Because in this think of we done the can kind that

Joseph Trpik

Nick, Joe. this is

relates as to it case. So the

reality, apart, settle. the but to we but settlement haven't have dialogue far window we in We is open, been open able haven't to continue and been

or this through a point, we're litigation. to working settlement comfortable at So this either writing

We case evidence have well-structured this built the we have through of gone a as that. in

to hopeful items, we'll So settle here also, same find we of case at of prepared some any and that to taking be planned for other continue are this have we a time, possibility the way the but for commission. to these

Nicholas Campanella

CapEx in wrap thinking prepared add continue see kind to And to new especially -- these of CapEx affordability higher these CapEx purely awards plan Okay. to just CapEx incremental as rate of and that here. a for all higher, you build-own exciting kind bit I these there affordability. you balancing it's about transfers, That's inflect the you continues should your remarks. super the that growth kind of the helpful. about then -- super And in just about one the Is plan? guess How as you we talked it How little kind think offsets one manage in to I of managing that? opportunities. any base Is are is RFP in scale as to

Joseph Trpik

on add Maria may and in. this So start I'll

to So that speaking, generally these relates our incremental lot also RFP, drive course, of benefits. online as But those are the it of to are coming resources plan. do a

example, Clearwater the came online a customer to for that reduction the energy the were bill For assets that they were replacing.

And of RFP as as risk and risk through project, lot deliver we that's we're that them and these execute selecting are evaluating well. the to which cost key on work are to able these we have also being, processes a risk the and course, when based helped on be and affordability to the ITCs drive to as or with customers, reminder, them a back projects PTCs turning then affordability, of

thinking towards XXXX our is and for but affordability beyond, and ensuring working we're the we're that plan clean never policies towards affordability aligning stop the with customers as well. as -- the key energy and working about we So that

Nicholas Campanella

be one last RFP sounds it one the then 'XX. that new on And just in a my like is filing you'll

into understand decade to it -- Just around 'XX the window? it any process could early Just that? in capital make 'XX, awards, the is it is XXXXs of when late of that. end you and time line the it of 'XX to eventually or this kind trying what's terms the for or of get Is

Joseph Trpik

new to RFP. potential current we talk so our -- the So

concurrently we new of fashion. beginning would at sometime RFP we're that or an the in done about, the potential So talking the with either that next linear year, a in file IRP

would XXXX. expectation to assets an be service come by on those have requested that We

could So to needs assets as renewable our RFP guess or they on capacity, go a in whatever expect that next I could period. But XXXX, would delivered the 'XX have we as the system, from so 'XX. energy is considering both to see well we

Operator

comes Our from next of the from Julien question Dumoulin Jefferies. line

Brian Russo

It's on for Russo Julien. Brian

XXXX Just capacity you actually the complete how the remaining upcoming much is after RFP? RFP,

Joseph Trpik

Yes.

that we're a a talking up X,XXX kicked needs that So XXXX as just here. midpoint we off I'll when RFP, were at of as pull But megawatts. the the reminder, IRP

the item. the So growth, that expectation update will potential we of will which has redefine IRP, which

take X,XXX megawatts Group the groups and you had if X,XXX total. that is So of B nameplate of A we megawatts both need,

we as Group will But acting X,XXX need Again, evaluate with for was before the you RFP. understanding, have just they're we an our items. A megawatts B -- and be is so we're needs those discussions and then what will this in group

We have then update megawatts the with X,XXX the of we next and in nameplate IRP of here, quarter that first year. will

Brian Russo

Okay. still And look for [indiscernible] that the Confederated should the North the within all Warm for Great. XXXX? X past years. profile milestones in XX% Is And any Are still also Connector? Springs Plains you Tribes we of is X intact? it the us years then remind of the [indiscernible] or does project extend

Joseph Trpik

the Connector. on with North start I'll Plains So

will be dates point this proceed milestone. stake. -- in at time, our with specific there XX% are, of There to continue We

Will not expand. We disclosures we is that it will Right understanding We binding. now, a have commitments when be memorandum partners. make to our adding continue

that and updates So that proceed -- but there will new be proceeds. . project as partners

Springs, you'll that to as project that a is in this is a the plan a would year would get of be a placed project relates expect that currently Tribes XXXX. multiyear We Warm period out the you forecast years it beyond that project transmission the have we show, few you see that. out of reminder, normal our Confederated we that of first As going in to the current expect

the that to project the this Tribes of tying Confederated is have government. reminder, participating federal where in a the as grant, Just one the -- are back grants the with

Brian Russo

mentioned just financing. on equity Could the means as some Seaside. a tax the just strategy you Constable the and then credits to And with more you Okay. lastly, of specifically offset talk

to case, I wanted think or XX or part is your to evaluated? customers X refund XX over of as years get Just the the thoughts. being rate

Joseph Trpik

which and So Seaside, to ITC, X for million approximately over around are sure, you value time. combined, if the Constable them eligible Specific of $XXX get somewhere you'd

is regulator, with that a over policy our we to to them align the right? customers period So refund

are relates monetize that, also these to with financing being set. say, -- somewhere the to had as for I between And credits tax OPUC long agreement end as of it But It side we as the on refund XX%. front years. period to within you not as discount and to do have should a X XX on these able we it, mentioned, be will be and the the able

-- year, equity be that going these equity So $XX how we've reducing long was and for that tax these monetize and certain generally million need credits approach to do I credits, will this taken this earned, monetization just thereby in we credits reduction are our say where will we is. year, these as well. tax when needs, to have agreements have amortization period future we tied monetized

Operator

next question from Lonegan Evercore. Michael line of the from comes Our

Michael Lonegan

So out the XX% base in you illustrative previously growth, assumed ownership example. you on rate your that RFP, paid

be here like. shortlist final the So could looks XX% towards ownership, it

X% you're spoken how incremental land this Obviously, could that to. thinking range X% EPS equity you to with where about positions come you've wondering additional your in to CapEx of forecast? Just the growth the

Joseph Trpik

align we all earnings obviously, group. you do this we at matter But no us measure how or look Group how this in band continues as currently either of had the mentioned. to think I within it, RFP, A you

expectations these assuming RFPs, earnings of success our band. growth be within execute continue consistent would we with to the the So

Michael Lonegan

investment in can for storage see request Got [indiscernible] some me, you mechanism with related it. that like the you recovery with policy. you revised case, rate some And the and items, then for the further secondly pending

rate you these opportunity next the to ask for in case. an Just see wondering if

going I forward. think you've to filings alluded annual

Joseph Trpik

Yes.

be in case, I we've to on but think that. you stands managing in these stakeholders is responsive the timing each as also affordability by obviously cases of And of what to the things managing been itself. do trying know, cases

So it as over items solely have continue dialogue like to goal. yes, to for to [indiscernible] I storage items to believe we'll continue relates to trackers align their

of So this But out. I been proposals that will work for But yes, think the we've discussions potentially. of pulled type would I forward them multiyear we'll think future. come some case, a in of going forward. framework these There's through

possibility for think And there's I them. so

timing of rate matters. goals like expectations be and to cases the tools think other I clean and meet this needed the meet the energy consistently of will

Operator

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

Travis Miller

of case, do there making questions see rate you've to level rate or what's it is you put difference and several settlement things if where have that there. up certain perhaps the on settle? the to between certain settlement settle? been and this the come and high that to answered what on are case possible Are right able way But the going the and negotiations around lot a Sticking that issues that's less past you it

Maria Pope

overall question. rate this dialogue on say biggest sort in lot that inflationary parties focused of really a and press I'd That's Sure. case that And in the broader have environment? discussions distinction the good is some the the and a

Travis Miller

Okay.

settlements the than [indiscernible] very more -- that worth past is to... again, if So public it's way

Maria Pope

are they I think they've the want that are decided and want that's tools the that go helpful -- to those they where what to to accomplish.

Travis Miller

end oral there or Okay. continue to throughout you period the can Statutory a arguments? to settlement is -- try settle

Joseph Trpik

open remains but once precise when here, get I we not until I would... period, that's we be I the it to believe hearing, the believe believe I won't get,

Maria Pope

we very we've we been discussions. But had I think not likely Overall, have and end a extensive they far, been able I reiterate constructive parties. up. could And Yes, with want far not and so to have where as know, to be reach settlement. that we apart that we're that most

Travis Miller

that Okay. reason system, for are different what them the customers on When are the right, industrial to there about... then telling they easy, as for et grid the to in system, lot of some are you Is -- ask the low you, Perfect. a is area. the cetera, semiconductors, things of these they subject. are really the from ones get choosing they cost and to fact power? your it the coming like What new one access that apart And are saying of

Maria Pope

in have as has on Pacific, the Virginia communications community So this colleges Oregon, power our just power important. it universities are for Atlantic well to and an and of cables very no whom an whether a for data terminate other that the manufacturers significant also our centers been in that really several cables built is there's those over region. the talent, up to impact as terminate question There's That overall from talent starts I consideration and would of as that factors significant from the say environment which decades particularly quality companies. absolutely subsea in ecosystem the

our leader we go there's energy. to think a I further comes energy, it and that of XXX% really to also is focused towards and clean when faster, And options clean been those particularly base much customer on energy have clean delivering those want for customers,

Operator

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

Anthony Crowdell

or assuming the questions. tax know about us much giving detail. a talked quick the ITCs gives of couple When I the lot start forward they're all appreciate a guidance each I year? year will for we've company how company the credits. in Just

Maria Pope

with that the we're projects That's renewable good bringing or we're bringing that will the question. dovetail storage It online. projects a online

amount we tax come more those tax to ability projects, a that of so thumb, of to north In savings And regards the the give XX% with or of color these each reduce those credits. general with investment give the of be savings very as capital will prices associated It's customer with rule projects. you it's happy we'd significant to tax or project. you

Anthony Crowdell

Great. spoke XXXX revisit long for when I X% And X.X%, like the earlier growth to right, on I've it's you're the but think I load -- believe you numbers year, to X% you going it's then that the I and about term, file this hope IRP.

load the potentially the correct, on fourth does cadence, quarter we on long-term if the an call? that's So update just -- that understanding get right, do growth

Maria Pope

complete that will we Yes. time. I if the by don't have of all know analysis

But overall been probably to it as IRP think cost to structure solid update. and say, good, doing closer updates changes. seen cost load have have our significant diverse our for March see customers. We load you'll deliver we the really ability growth. important I that's on suffice look we as to at we for And growth have effectively it our

Anthony Crowdell

guess aligned. is that less question. appears Great. politically and believe getting Oregon last It State I I somewhat Washington green. State are just And Washington my

there's restriction that? going I'm Washington Oregon if less you Are any ballot they're standards. don't like any where bill, I there's get this I revoke gas seeing seeing going on to is some like year's buildings, state, a to curious anti-green of -- on the just some RPS ban in state but new think know may bill characterize if green? I

Maria Pope

Sure.

different I bill utility, on carbon when policies customers a reductions. think, comes as us are to bit guided first XX% energy of have interest. voluntarily pay it and as and to clean little And their for clean energy. all, a we our first guided a their of foremost, and by for more we customers customer, XXX% really our we're really --

well. And many participate high-tech energy municipal as of customers our well customers, as them others for largest in XXX% future as green hospitals our having clean and programs,

economically. So clean one to this very of able key reasons is for have bring new been that resources we on the

As Joe prices look of was contracts, has online. our significant mentioning, part actually battery to how additional build has we portfolio, Wind this we're is customer Project bringing the a the we to forward year date out reduced and Clearwater hydro and as them stores

Anthony Crowdell

on So just ballot on seeing policies to state's any or you're changing any green? initiatives the renewables not recap, of

Maria Pope

aware we're balloting out discussions initiatives. of, don't but see any there be not could There that we

Operator

Ellinghaus Our line next Williams question comes from Shank. of from Siebert Chris the

Christopher Ellinghaus

the of some customers new last talk Maria, that's in that quarters. been your of increasing from? centers, of is where customer employment? you of accelerating Can few And sort about semi coming sort sort growth data has

Maria Pope

Sure.

of first down XX% our have we go between be customer of and seen and overall then fastest it that And is segment the noted is our other is industrial his the data of as he remarks, Joe quarters in at So significant. because centers base X% growing I XX% semiconductor XX% industrial that customer before. is manufacturing. and mentioned It that some that manufacturing. -- is this all, chunky. levels could it mentioned different customer growth is up

new in-migration most counties, to our continued of also continue see and connections. We in

positive. So Overall, but from short that very of is all the growth, term most semiconductor growth the most comes term centers, long of from expectations coming is of data manufacturing.

Christopher Ellinghaus

Okay. Great.

really You've on variable power had effort great cost net a year. this

can a of -- little you Your us color. provide sort

the is factors? sort going AUT supply of about in forward? derisking of more line effort, you the lengthening being we Should year every more year market-related Or You're sort think of with was this your be able strategy. while to AUT reset gets

Maria Pope

Sure.

with operations and So our first starts facilities the all, of and they the exceptionally that generation done. it that have run own work those good folks

Next, of we contracts in is or the partnerships. that either resources with integration in shorter-term procure long-term generation and partnerships our it

wonky plant from a the virtual goals our power have had comes we We what terms, XX% also One of it distribution is system. the out to a call of as build on sort and XXXX and energy ability that put we an time come of into of area. important effort our a provides from that work. us, will for that by capacity have systems And stabilizing lot

higher significantly conditions into allow more Northwest of regions as much that and market their from excess with are flattened others. to the power also significant terrific and overall market. this are past power battery California solar the out the entering entire day-ahead change inflows and region other and success for across independent market and combined a We year, storage and quite seen in from operators of system California power procure generating begin the We've had has into energy flows we Pacific really balance have power solar

We're many system. our Power overall see Pool done Western on through which cost throughout entire that trends that continue capacity negative many actions that's together resource of that future. collectively same quarter, provided have we peer have, the the we saw also more the and utilities ensure significantly the the We the adequacy and of prior could on of the volatile power years, to reverse in results that couple into the third side, working very

Christopher Ellinghaus

expanding exponentially, and RFPs. lastly, is in ahead. the data the you asked sort of Okay. Great. somebody theoretically, almost And have But also balancing about costs electrification

is you extended a that continues also about and period. do thinking potentially there growth load you're costs, RFP resources huge think when for So pretty about

getting wanting the So just behind environment? in do about you kind resources that of to of And think cost prevent the getting curve. opportunity short to add

Maria Pope

a really affordability reliability, as And to of of we're ever-increasing results, the our pace good It's Sure. balancing RFP clean question. and at the amounts we energy. transition look

for set our of them existing broad on brought at important in in look energy it that of as some contracts from of in that is knowing affordability resources, have strategies, We everyone possible those hydro We also River a and PUDs this as transition. with the this operate the keeping the for affordable partnerships and prices service key as and We our others. with transition territory clean and customers. one also our of factors regions that is Columbia all through very is low serve

Operator

Ladenburg comes Our Paul question from next Inc. the Thalmann of Fremont line from & Co.

Paul Fremont

looks there's [ spending $XX It reduction million generation in this like ] year.

some you that seems Some and there? offset of distribution spending. of general of a sort Can looks and that with document to delay technology like happened higher be what

Joseph Trpik

-- talking things items, some So timing we've full as have movements you're land is if for we of lot like you're a talking just things of like some generation executed that year, had to -- purchases a we've Paul, if that.

are saw we what mean, the items to I really our We little delayed. going year effectively work we're So plan. that some a be we continue that to as through we execute pretty

So shifted. we've

get some to If projects the money colored our X. a -- just other timing bit you there's look capital the than There's between of execution. pretty X years between of plan the real update the of to substantive net differently, we much plan, no their as change little but

Paul Fremont

Great.

forecast? certify how to so expected actually the in results going to spending take of that to capital RFP OPUC November, execute for it we you contracts in the is up the the it long see With showing your

Joseph Trpik

second it relates will we the currently of it as specifically transfer half the items, anticipate As be to build XXXX.

changes, the will the into update our parties, obviously, time extent be discussions our will expectation. But that what that and up frame similar in but some past, experience agreements here. applying for party current with to the end the being that started to we we've As seems is the

Paul Fremont

to sort update wouldn't acknowledgment? can of I have OPUC to enough B, information of see guess I with A, sort second get respect bucket after you the but you And

Joseph Trpik

have more relates bit it will as able hopefully, already I down have the your acknowledgment we be, I hey, Yes. down. likely of we to a the mean contract, tighten precision. because only question to provisions, parties. certain But if dialoguing say, dialogue which if I have think and the date we'll to is those? to half we we're with these have as a get once generate certainty it's we having here to able -- continue us agree, the be little more very some updates to we'll lock critical think say, a approval not I we are -- and would second yes, be with to for we'll here

our we're we're moving delay, as of of if this changing contract on expectation dialogue the with time if 'XX. could the that this is to again even the -- talking end delivered moving be But on in we're I nothing the our just -- parties, assets by as will

Paul Fremont

ITCs need tax mean, or of to the And potentially reduce equity company? you credits, then aside from the ways I have other thought of

Joseph Trpik

know So approaches yes, continue them. to evaluate to evaluate we do there's and we other I the products, to at been continue different company. discussion of and times structures financing different

we actions. is way are addressing resolute the like Some to of to take the in what I at being more is broadest issue wildfire like company. this on look the and detailed the some them focused And

to come we then And first and our but taking on and to wildfire into we on take start and be subsequently to financing potentially get different we it designs to light, as evaluate, processes critical aligned we of other evaluating that, some think can these act continue more on and will as action is alignment potential approaches we'll but address growth.

Paul Fremont

selling would company, minority down holding to you then, if a potentially And mean, I were establish utility? you a the in stake consider

Joseph Trpik

come tell give just from would that I to don't know, you that here, I are evaluating Paul, but would as options you transactions, So that. all any we guidance on want

the we can to safely ensure serve growth. manage reliably So on customers and our that and that isn't table nothing our there's

Paul Fremont

in unanimous do could in settlements do you are Oregon, partial And or need be a they Oregon? settlement to

Maria Pope

But We partial end we do in it we're in is common. And not do It's can common times. settlements settling. Oregon. necessarily what up not

Paul Fremont

settlement go is close. better going a you into I wouldn't you and not with that significant standing Well, But that. that a final the I -- think you're said partial number the of you're more with you Why in think put parties, understand what OPUC decision?

Maria Pope

sure that could if thorough have and be an we that solid get resolution. But get to we then a would Commission good Utility discussions, had record have resolution, If that we idea. do Public decision. to even a I'm get not to probably we we could Oregon

Paul Fremont

last Is that growth some still EPS any here? think me. base I the mean, point to of XXXX. there is then question in base thoughts sort are for -- I And your there updating of the at potentially time,

Joseph Trpik

a expectations want get The like said to and here. time, honestly, some pocket, deliver answer that have and right? point at under to would in we time our as some our goals is meet yes, we We company

in middle the doing now. of We of sort that are the right

look evaluate. first showing something first to plan think is before continually that I an item would to it's time decide that rebase. update the or But be So have we the we a execute under we can we

Operator

this now for to would Maria closing like to remarks. back turn At time, Pope the I conference over

Maria Pope

your you great EEI General many upcoming you Financial Conference you day. appreciate see in Thank joining soon. interest look all we'll and probably connecting for month. us a the Electric, have next In morning. this of Portland to We and Thank particular, we at with forward you,

Operator

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

You disconnect. may now

Portland General Electric (POR) 25 Oct 242024 Q3 Earnings call transcript