Portland General Electric Company Q2 FY2025 earnings call

• Clean Energy: Undertaking price refresh in 2023 RFP and accelerating 2025 RFP procurement, focusing on meeting timing and domestic content requirements for tax credits to lower clean energy costs.
• Customer Affordability: Underway multiyear cost management work, reduced 330 employed and contracted positions, with ongoing process improvement across the company.
• Customer-Driven Growth: Sustained growth from data center and high-tech customers (+16% vs same quarter last year), Oregon legislature passed POWER Act furthers growth and ratemaking clarity, enabling long-term contracting with data center customers.
• Risk Management: Work on wildfire policy, focusing on mitigation, prevention, system hardening, and collaboration with first responders like the U.S. Forest Service and Oregon Department of Forestry.
• Investable Energy Future for Oregon: Filed for holding company, completed filings for holding company approval, worked on FAIR Energy Act, signed MOU with regulatory stakeholders for Seaside Battery and DSPARM proceedings to clarify regulatory path.

No specific product segment breakdown provided in the transcript.

• Reaffirmed 2025 adjusted earnings guidance of $3.13 to $3.33 per diluted share.
• Reaffirmed long-term earnings and dividend growth guidance of 5% to 7%.
• 2025 weather-adjusted load guidance 2.5% to 3.5%, long-term growth 3% through 2029.

• Wildfire policy work still ongoing, with need for clarifying standards, financial backstops, and timely recovery for victims.
• Wholesale and environmental credit market conditions could impact power costs, leading to potential decreases in power cost performance.

Q: How do the MOU and the Seaside and distribution recovery proceedings inform the path to progress versus a general rate case?

A: Maria Pope stated they front-loaded discussions on Seaside Battery Projects and Distributed System Plan, allowing shared understanding and leading to certainty, predictability, and value.

Q: How do you think about 2023 versus 2025 RFPs?

A: Joseph Trpik said the 2023 RFP has opportunity to accelerate with reprice opening to original short list bidders, while 2025 RFP will focus on tax credit eligibility to keep customer prices low.

Q: Will business transformation efforts continue over the balance of the year into next?

A: Joseph Trpik said business transformation efforts will continue into next year with costs related to change management and other items, with benefits yielding later this year and into next.

Q: How would you see ROEs trending until new base rates?

A: Joseph Trpik said intention is to continue in the same earnings stand with cost management actions and regulatory plan, expecting performance to remain consistent.

Q: How does the Seaside tracker and distribution recovery affect capital saved and rate cases?

A: Maria Pope said bulk of capital spend is in distribution area, with RAC for wind/solar and AAC for wildfire, creating predictability and enhancing operational planning.

Q: Do you see win rates changing in RFP repricing?

A: Maria Pope and Joseph Trpik said 25% is illustrative in forecast, with recent build percentages around 60% and expecting solid performance in reprice.

Q: How does industrial demand growth affect purchase power costs?

A: Maria Pope said long-term contracting with data centers via POWER Act helps securitize investment, reduce power cost pressures, and joining energy day-ahead market benefits customers by lowering costs.