PORTLAND GENERAL ELECTRIC CO /OR/ Q3 FY2024 earnings call

• Operational Performance: GAAP net income for Q3 2024 was $94 million ($0.90 per diluted share), up from $47 million ($0.46 per diluted share) in Q3 2023, driven by improved power cost performance, cost/risk management, and robust demand growth.
• Renewable Initiatives: Added 500 MW of new renewable hydro capacity, Clearwater Wind Development commissioned in September with high capacity factor, and Constable/Seaside battery storage projects upcoming.
• Rate Review: 2025 rate review in progress, with settlement discussions ongoing; focus on keeping customer prices low via operational efficiencies.
• Grants/Tax Credits: Received $700 million federal grant for North Plains Connector, leveraging ITCs/PTCs for clean energy projects.
• Safety: Priority on wildfire risk mitigation through investments and agency collaboration.
• Demand Growth: Industrial demand up over 9% year-to-date, led by semiconductors/data centers, enhancing service territory attractiveness.

For the third quarter, residential load in Q3 2024 decreased 1.2% year-over-year but increased 0.9% weather adjusted; residential customer count rose 2.1% but energy efficiency led to lower usage per customer. Commercial loads were relatively flat with a slight 1% decrease (0.1% weather adjusted) due to energy efficiency. Industrial load increased 15.7% (16.4% weather adjusted), driven by digital infrastructure and semiconductor customers, contributing significantly to year-to-date growth.

• 2024 adjusted earnings guidance narrowed to $3.08 to $3.18 per diluted share, expecting upper half of original range.
• Reiterated 2024 weather-adjusted load growth guidance of 2%-3% and long-term load growth guidance of 2% through 2027.
• Reaffirmed long-term earnings and dividend growth guidance of 5%-7%.

• Extreme weather/wildfires posing risks to operations/safety.
• Regulatory uncertainties in rate review/RFP processes.
• Market volatility impacting power costs/financial performance.

Q: About storm deferral release and O&M trends.

A: Joe Trpik said storm deferral mainly driven by NVTC favorability; Maria Pope discussed O&M efficiencies from wildfire resilience and spreading fixed costs.

Q: On wildfire legislation and industrial growth.

A: Maria Pope talked about wildfire legislation advocacy; discussed industrial growth with semiconductor and data center diversification.

Q: On rate case settlement and RFP CapEx.

A: Joe Trpik mentioned ongoing settlement dialogue; discussed RFP CapEx incremental nature and ITCs aiding affordability.

Q: On RFP milestones and tax credits.

A: Joe Trpik and Maria Pope discussed RFP milestones and tax credits monetization for reducing equity needs.

Q: On rate case differences and load growth.

A: Maria Pope and Joe Trpik talked about rate case settlement differences and load growth updates in IRP.

Q: On customer growth and power cost derisking.

A: Maria Pope discussed customer growth from industrial segments; talked about power cost derisking through generation, procurement, and virtual power plant.

Q: On RFP costs and load growth opportunity cost.

A: Maria Pope balanced RFP resources with reliability, affordability, and clean energy transition.

Q: On capital spending and equity needs.

A: Joe Trpik discussed capital spending timing and equity need evaluation; Maria Pope talked about partial settlements in rate cases.

Q: On EPS growth base and settlement partiality.

A: Joe Trpik and Maria Pope discussed EPS growth base evaluation and partial settlement possibilities.