PORTLAND GENERAL ELECTRIC CO /OR/ Q1 FY2025 earnings call

• Financial Results: Q1 2025 GAAP net income was $100M vs $109M in 2024; non-GAAP net income was $123M. Load growth from high-tech/data center (4.6%) and industrial (16.4%).
• Wildfire Mitigation: Plan to spend over $120M in 2025 on wildfire mitigation. Working on legislation for utility wildfire mitigation standards and safety certificates.
• Affordability: Growth helps spread costs; cost management efforts underway to reduce O&M costs.
• Capital Forecast: Seaside battery on track for June; advancing regulatory strategy for it. Ongoing 2023 and 2025 RFPs and 2025 IRP update.

For the first quarter, reported GAAP net income was $100 million or $0.91 per diluted share, compared to $109 million or $1.08 per diluted share in Q1 2024. Non-GAAP net income was $123 million or $1.21 per share. Load growth from high-tech and data center customers drove 4.6% total load growth, with industrial load growth at 16.4%. High-tech and data center customers, including five large semiconductor customers and over 10 significant data center providers, make up nearly a quarter of total deliveries.

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

• Wildfire risk and related legislation progress; potential delays or issues in wildfire mitigation funding and liability solutions.
• Impact of federal policy landscape, tariffs, and inflation on costs and revenues.

Q: Just wanted to come back on the and just wildfire context. Obviously, you know, you you heard the comments earlier. How are you thinking about the progress? And and more importantly, just where you're making progress, where you aren't specifically in setting expectations, whether this year or next year, just to to lay the groundwork?

A: So it you're you're spot on with regards to the timing. With regards to progress that we're making, one of the things I think that has really been evident is there are a lot of legislators that really were not aware of the extensive wall mitigation plans that we put in place, the extensive increase in vegetation management and work that we've done in system hardening over the past number of years. And so there was a lot of discussion over really what it takes the costs, and the significant increase in costs over the last couple of years for wildfire prevention and mitigation. One of the things that I think is also interesting is that wildfire presents itself very differently in different parts of state. So we've had a lot of discussions by experts as well as others Where we have really excelled is with regards to a certificate process. And that has been very important in terms of establishing a well known and well understood standard of care. Not unlike what you would see in the medical field or in engineering fields or in many other fields. And then where we have much more work to do is with regards to a fund and then also limitations of liabilities associated with accessing that type of fund to the customers can get access to funds much faster than they would through other processes. We have a lot more work to do there. And I think you'll see that the continuation of discussions, even after the legislative session should be very productive.

Q: Good morning. Morning. Thanks for taking my question. You have obviously, you've seen strong industrial sales growth driven by semiconductors and data centers. Now you reiterated your 3% long term load growth forecast. But given the tariffs and concerns about economic development, just wondering, are you prepared for a potential slowdown in this load growth and a slowdown in capital projects? Just wondering if you could talk about the options you have for you know, capital, potential reallocation, and then and then also what you're expecting in terms of capital inflation.

A: Yes. So so first of all, with regards to our industrial base, it's it's primarily, three areas. The first is a quarter of it is really traditional industrial customers. A quarter in our fastest growing area is semiconductors excuse me, is data centers. That's the fastest growing area by far. And then about half is semiconductors. We are watching the global market for semiconductors very closely. And between all three of those sectors, we remain very confident in our growth as we move forward. In terms of overall inflation, we've actually seen a moderating of inflation in terms of costs that are impacting us. Would imagine that our customers are seeing somewhat of the same thing. Obviously, does not come and take into consideration all discussions with regards to tariffs that are taking place nationally and globally.