EX-99.1 5 ex99120240630pressrelease.htm EX-99.1 Document

Exhibit 99.1
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Portland General Electric
One World Trade Center
121 S.W. Salmon Street
Portland, Oregon 97204

News Release
July 26, 2024
Media Contact:Investor Contact:
Sarah Hamaker
Nick White
Corporate CommunicationsInvestor Relations
Phone: 435-513-0799
Phone: 503-464-8073

Portland General Electric Announces Second Quarter 2024 Results
•Second quarter results reflect continued focus on execution and cost management, semiconductor manufacturing and data center demand growth, and solid power cost performance
•Reaffirming 2024 adjusted earnings guidance of $2.98 to $3.18 per diluted share

PORTLAND, Ore. -- Portland General Electric Company (NYSE: POR) today reported net income based on generally accepted accounting principles (GAAP) of $72 million, or $0.69 per diluted share, for the second quarter of 2024. This compares with GAAP net income of $39 million, or $0.39 per diluted share, for the second quarter of 2023, which included the $0.05 per diluted share impact from the Boardman revenue requirement settlement charge. After adjusting for the impact of the Boardman revenue requirement charge, second quarter 2023 non-GAAP net income was $44 million, or $0.44 per diluted share.

“Our solid second quarter results underscore the strength of our strategy as we work to position Portland General Electric for long-term value creation in a service territory that’s poised for continued economic growth,” said Maria Pope, PGE President and CEO. “We were pleased to see our system demonstrate strong resilience against the record heat we recently experienced. We remain focused on customer affordability and making thoughtful, high impact investments to harden and modernize our grid as we provide clean and reliable energy to our fellow Oregonians.”

Second Quarter 2024 Compared to Second Quarter 2023
Total revenues increased due to demand growth from semiconductor manufacturing and technology infrastructure customers and recovery of capital, operating and power costs. Total revenues were partially offset by lower residential and commercial usage primarily driven by weather. Purchased power and fuel expense increased due to higher system load, increased prices for purchased power and increased costs for generation. Operating and administrative expenses increased due to higher generation and network maintenance and vegetation management costs. Depreciation and amortization expense and interest expense increased due to ongoing capital investment.

Company Updates
At-the-market Offering Program
In 2023, PGE entered into an equity distribution agreement under which it could sell up to $300 million of its common stock through at-the-market offering programs. In March 2024, the Company issued shares pursuant to the agreements and received net proceeds of $78 million. In the second quarter of 2024, PGE entered into additional forward sale agreements with counterparties, exhausting the $300 million facility. As of June 30, 2024, these additional agreements were outstanding.


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On July 26, 2024, PGE registered a new $400 million at-the-market offering program. Any proceeds from the issuances of common stock will be used for general corporate purposes and investments in renewables and non-emitting dispatchable capacity.

Transmission Progress
PGE is implementing upgrades to existing transmission resources and working with partners to upgrade and expand transmission capacity in our service territory, adjacent areas and our broader region. In May 2024, PGE signed a non-binding memorandum of understanding with Grid United and ALLETE, Inc. in the development of the North Plains Connector, a transmission line to be constructed with endpoints near Bismarck, North Dakota and Colstrip, Montana. These transmission projects, among others, are intended to alleviate congestion, improve regional adequacy and reliability, enable decarbonization, and support growing customer demand.
PGE ranked No. 1 utility for customer experience
In June 2024, PGE received the top national spot for utilities in the 2024 Forrester Customer Experience Index. PGE continues to prioritize growing customer needs and improving system reliability and resilience in order to serve customers with safe, reliable and affordable energy.
Quarterly Dividend
As previously announced, on July 19, 2024, the board of directors of Portland General Electric Company approved a quarterly common stock dividend of $0.50 per share. The quarterly dividend is payable on or before October 15, 2024 to shareholders of record at the close of business on September 24, 2024.

2024 Earnings Guidance
PGE is reaffirming its estimate for full-year 2024 adjusted earnings guidance of $2.98 to $3.18 per diluted share based on the following assumptions:
•Exclusion of the impacts of the January 2024 winter storm, including non-deferrable Reliability Contingency Event (RCE) costs and non-deferred incremental storm restoration costs;
•An increase in energy deliveries of 2% to 3%, weather adjusted;
•Normal temperatures in its utility service territory;
•Hydro conditions for the year that reflect current estimates;
•Wind generation based on five years of historical levels or forecast studies when historical data is not available;
•Normal thermal plant operations;
•Operating and maintenance expense between $800 million and $825 million which includes approximately $150 million of wildfire, vegetation management, deferral amortization and other expenses that are offset in other income statement lines;
•Depreciation and amortization expense between $475 million and $525 million;
•Effective tax rate of 10% to 15%;
•Cash from operations of $700 to $800 million;
•Capital expenditures of $1,340 million; and
•Average construction work in progress balance of $740 million.

Second Quarter 2024 Earnings Call and Webcast — July 26, 2024
PGE will host a conference call with financial analysts and investors on Friday, July 26, 2024, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A webcast replay will also be available on PGE’s investor website "Events & Presentations" page beginning at 2 p.m. ET on July 26, 2024.


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Maria Pope, President and CEO; Joe Trpik, Senior Vice President of Finance and CFO; and Nick White, Manager of Investor Relations, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and comprehensive income, balance sheets and statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

Non-GAAP Financial Measures

This press release contains certain non-GAAP measures, such as adjusted earnings, adjusted EPS and adjusted earnings guidance. These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities, are infrequent in nature, or both. PGE believes that excluding the effects of these items provides a meaningful representation of the Company’s comparative earnings per share and enables investors to evaluate the Company’s ongoing operating financial performance. Management utilizes non-GAAP measures to assess the Company’s current and forecasted performance, and for communications with shareholders, analysts and investors. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP.

Items in the periods presented, which PGE believes impact the comparability of comparative earnings and do not represent ongoing operating financial performance, include the following:

•Quarter ended June 30, 2023: Boardman revenue requirement settlement charge associated with the year ended 2020, resulting from the OPUC’s 2022 GRC Final Order

Due to the forward-looking nature of PGE’s non-GAAP adjusted earnings guidance, and the inherently unpredictable nature of items and events which could lead to the recognition of non-GAAP adjustments (such as, but not limited to, regulatory disallowances or extreme weather events), management is unable to estimate the occurrence or value of specific items requiring adjustment for future periods, which could potentially impact the Company’s GAAP earnings. Therefore, management cannot provide a reconciliation of non-GAAP adjusted earnings per share guidance to the most comparable GAAP financial measure without unreasonable effort. For the same reasons, management is unable to address the probable significance of unavailable information.

PGE’s reconciliation of non-GAAP earnings for the quarter ended June 30, 2023 are below.

Non-GAAP Earnings Reconciliation for the quarter ended June 30, 2023
(Dollars in millions, except EPS)
Net Income
Diluted EPS
GAAP as reported for the quarter ended June 30, 2023

$39 $0.39 
Exclusion of Boardman revenue requirement settlement charge
70.07
Tax effect (1)
(2)(0.02)
Non-GAAP as reported for the quarter ended June 30, 2023

$44 $0.44 
(1) Tax effects were determined based on the Company’s full-year blended federal and state statutory rate.


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About Portland General Electric Company
Portland General Electric (NYSE: POR) is an integrated energy company that generates, transmits and distributes electricity to over 930,000 customers with a service area population of approximately 1.9 million Oregonians. For more than 130 years, Portland General Electric (PGE) has been powering social progress, delivering safe, affordable, reliable and increasingly clean electricity while working to transform energy systems to meet evolving customer needs. PGE customers have set the standard for prioritizing clean energy with the No. 1 voluntary
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renewable energy program in the country. PGE is committed to reducing emissions from its retail power supply by 80% by 2030 and 100% by 2040. PGE is recognized by the Bloomberg Gender-Equality Index for the company's commitment to creating a more equal, inclusive workplace. In 2023, PGE employees, retirees and the PGE Foundation donated nearly $4.6 million and volunteered over 23,000 volunteer hours to more than 400 nonprofit organizations. For more information visit www.PortlandGeneral.com/news.

Safe Harbor Statement
Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent our estimates and assumptions as of the date of this report. The Company assumes no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.

Forward-looking statements include statements regarding the Company's full-year earnings guidance (including assumptions and expectations regarding annual retail deliveries, average hydro conditions, wind generation, normal thermal plant operations, operating and maintenance expense and depreciation and amortization expense) as well as other statements containing words such as "anticipates," "assumptions," "based on," "believes," "conditioned upon," "considers," "could," "estimates," "expects," "forecast," "goals," "intends," "needs," "plans," "predicts," "projects," "promises," "seeks," "should," "subject to," "targets," "will continue," "will likely result," or similar expressions.

Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including, without limitation: the timing or outcome of various legal and regulatory actions; changing customer expectations and choices that may reduce demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the Company's generation and battery storage facilities, including hydro conditions, wind conditions, disruption of transmission and distribution, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; delays in the supply chain and increased supply costs (including application of tariffs impacting solar module imports), failure to complete capital projects on schedule or within budget, failure of counterparties to perform under agreement, or the abandonment of capital projects, which could result in the Company's inability to recover project costs, or impact our competitive position, market share, revenues and project margins in material ways; default or nonperformance of counterparties from whom PGE purchases capacity or energy, which require the purchase of replacement power and renewable attributes at increased costs; complications arising from PGE’s jointly-owned plant, including ownership changes, regulatory outcomes or operational failures; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy market conditions, which could affect the availability, cost and required collateral for purchased power and fuel; changes in capital and credit market conditions, including volatility of equity markets as well as changes in PGE’s credit ratings and outlook on such credit ratings, reductions in demand for investment-grade commercial paper or interest rates, which could affect the access to and availability or cost of capital and result in delay or cancellation of capital projects or execution of the Company’s strategic plan as currently envisioned; general economic and financial market conditions, including inflation; the effects of climate change, whether global or local in nature; unseasonable or severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, third party liability or that may affect energy costs or consumption; the effectiveness of PGE’s risk management policies and procedures; PGE’s ability to effectively implement Public Safety Power Shutoffs (PSPS) and de-energize its system in the event of heightened wildfire risk; cyber security attacks, data security breaches, physical attacks and security breaches, or other malicious acts, which could disrupt operations, require significant expenditures, or result in claims against the Company; employee workforce factors, including potential strikes, work stoppages, transitions in senior management, and the ability to recruit and retain key employees and other talent and turnover due to macroeconomic trends; widespread health emergencies or outbreaks of infectious diseases such as COVID-19, which may affect our financial position, results of operations and cash flows; failure to achieve the Company’s greenhouse gas emission goals or being perceived to have either failed to act responsibly with respect to the environment or effectively responded to legislative requirements concerning
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greenhouse gas emission reductions; social attitudes regarding the electric utility and power industries; political and economic conditions; acts of war or terrorism; changes in financial or regulatory accounting principles or policies imposed by governing bodies; changes in effective tax rate; and risks and uncertainties related to generation and transmission projects, including, but not limited to, regulatory processes, transmission capabilities, system interconnections, permitting and construction delays, legislative uncertainty, inflationary impacts, supply costs and supply chain constraints. As a result, actual results may differ materially from those projected in the forward-looking statements.

Risks and uncertainties to which the Company are subject are further discussed in the reports that the Company has filed with the United States Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov and on the Company’s website, investors.portlandgeneral.com. Investors should not rely unduly on any forward-looking statements.
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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Dollars in millions, except per share amounts)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2024202320242023
Revenues:
Revenues, net$761 $646 $1,701 $1,391 
Alternative revenue programs, net of amortization(3)2 (14)5 
Total revenues758 648 1,687 1,396 
Operating expenses:
Purchased power and fuel275 220 680 524 
Generation, transmission and distribution107 101 206 194 
Administrative and other97 93 192 173 
Depreciation and amortization122 113 243 224 
Taxes other than income taxes41 40 88 83 
Total operating expenses642 567 1,409 1,198 
Income from operations116 81 278 198 
Interest expense, net52 41 103 85 
Other income:
Allowance for equity funds used during construction6 4 11 7 
Miscellaneous income, net9 5 15 17 
Other income, net15 9 26 24 
Income before income tax expense79 49 201 137 
Income tax expense 7 10 20 24 
Net income 72 39 181 113 
Other comprehensive income— 1 1 1 
Net income and Comprehensive income$72 $40 $182 $114 
Weighted-average common shares outstanding (in thousands):
Basic103,034 97,087 102,167 94,478 
Diluted103,232 97,630 102,338 94,950 
Earnings per share:
Earnings per share—basic and diluted
$0.69 $0.39 $1.77 $1.19 
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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(Unaudited)
June 30, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$6 $5 
Accounts receivable, net385 414 
Inventories117 113 
Regulatory assets—current165 221 
Other current assets175 182 
Total current assets848 935 
Electric utility plant, net9,873 9,546 
Regulatory assets—noncurrent617 492 
Nuclear decommissioning trust33 31 
Non-qualified benefit plan trust36 35 
Other noncurrent assets175 169 
Total assets$11,582 $11,208 
































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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS, continued
(Dollars in millions)
(Unaudited)

June 30, 2024December 31, 2023
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$259 $347 
Liabilities from price risk management activities—current142 164 
Short-term debt— 146 
Current portion of long-term debt80 80 
Current portion of finance lease obligation24 20 
Accrued expenses and other current liabilities345 355 
Total current liabilities850 1,112 
Long-term debt, net of current portion4,353 3,905 
Regulatory liabilities—noncurrent1,406 1,398 
Deferred income taxes540 488 
Unfunded status of pension and postretirement plans160 172 
Liabilities from price risk management activities—noncurrent58 75 
Asset retirement obligations274 272 
Non-qualified benefit plan liabilities76 79 
Finance lease obligations, net of current portion283 289 
Other noncurrent liabilities98 99 
Total liabilities8,098 7,889 
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, no par value, 30,000,000 shares authorized; none issued and outstanding as of June 30, 2024 and December 31, 2023— — 
Common stock, no par value, 160,000,000 shares authorized; 103,066,683 and 101,159,609 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively1,833 1,750 
Accumulated other comprehensive loss(4)(5)
Retained earnings1,655 1,574 
Total shareholders’ equity3,484 3,319 
Total liabilities and shareholders’ equity$11,582 $11,208 


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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended June 30,
20242023
Cash flows from operating activities:
Net income$181 $113 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization243 224 
Deferred income taxes27 6 
Pension and other postretirement benefits3 3 
Allowance for equity funds used during construction(11)(7)
Decoupling mechanism deferrals, net of amortization14 (5)
Regulatory assets(118)(10)
Regulatory liabilities(10)12 
Tax credit sales
13 — 
Other non-cash income and expenses, net39 28 
Changes in working capital:
Accounts receivable, net16 82 
Inventories(4)(13)
Margin deposits37 90 
Accounts payable and accrued liabilities(34)(233)
Margin deposits from wholesale counterparties— (135)
Other working capital items, net6 9 
Other, net(38)(21)
Net cash provided by operating activities
364 143 

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued
(In millions)
(Unaudited)
Six Months Ended June 30,
20242023
Cash flows from investing activities:
Capital expenditures$(623)$(573)
Purchases of Nuclear decommissioning trust securities(4)— 
Proceeds from sale of properties— 2 
Other, net(12)(3)
Net cash used in investing activities(639)(574)
Cash flows from financing activities:
Proceeds from issuance of common stock78 392 
Proceeds from issuance of long-term debt450 100 
Payments on long-term debt— (260)
Issuance (maturities) of commercial paper, net
(146)140 
Dividends paid(96)(84)
Other(10)(9)
Net cash provided by financing activities
276 279 
Change in cash and cash equivalents
1 (152)
Cash and cash equivalents, beginning of period5 165 
Cash and cash equivalents, end of period$6 $13 
Supplemental cash flow information is as follows:
Cash paid for interest, net of amounts capitalized$81 $70 
Cash paid (received) for income taxes, net
(10)16 
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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING STATISTICS
(Unaudited)

Six Months Ended June 30,
20242023
Revenues (dollars in millions):
Retail:
Residential$722 43 %$641 46 %
Commercial446 27 393 28 
Industrial206 12 169 12 
Direct Access15 1 13 1 
Subtotal Retail1,389 83 1,216 87 
Alternative revenue programs, net of amortization(14)(1)5 — 
Other accrued revenues, net5 — (3)— 
Total retail revenues1,380 82 1,218 87 
Wholesale revenues275 16 150 11 
Other operating revenues32 2 28 2 
Total revenues$1,687 100 %$1,396 100 %
Energy deliveries (MWhs in thousands):
Retail:
Residential3,851 26 %4,057 30 %
Commercial3,176 21 3,252 24 
Industrial2,390 16 2,211 17 
Subtotal9,417 63 9,520 71 
Direct access:
Commercial247 2 283 2 
Industrial847 6 866 6 
Subtotal1,094 8 1,149 8 
Total retail energy deliveries10,511 71 10,669 79 
Wholesale energy deliveries4,283 29 2,849 21 
Total energy deliveries14,794 100 %13,518 100 %
Average number of retail customers:
Residential826,297 88 %814,18788 %
Commercial113,223 12 112,33312 
Industrial206 — 195— 
Direct access505 — 541— 
Total940,231 100 %927,256 100 %

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PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING STATISTICS, continued
(Unaudited)

Six Months Ended June 30,
20242023
Sources of energy (MWhs in thousands):
Generation:
Thermal:
Natural gas4,669 32 %4,520 35 %
Coal781 5 1,028 8 
Total thermal5,450 37 5,548 43 
Hydro738 5 669 5 
Wind1,538 11 1,083 8 
Total generation7,726 53 7,300 56 
Purchased power:
Hydro3,415 24 2,492 19 
Wind721 5 476 4 
Solar497 3 539 4 
Natural Gas94 1 11 — 
Waste, Wood, and Landfill Gas85 1 81 1 
Source not specified1,846 13 2,023 16 
Total purchased power6,658 47 5,622 44 
Total system load14,384 100 %12,922 100 %
Less: wholesale sales(4,283)(2,849)
Retail load requirement10,101 10,073 

The following table indicates the number of heating degree-days for the three and six months ended June 30, 2024 and 2023, along with 15-year averages based on weather data provided by the National Weather Service, as measured at Portland International Airport:
Heating Degree-daysCooling Degree-days
20242023Avg.
2024
2023
Avg.
First Quarter1,755 1,927 1,838 — — — 
April310 404 364 — 12 3 
May192 105 178 23 87 26 
June45 45 66 85 96 79 
Second Quarter547 554 608 108 195 108 
Year-to-date2,302 2,481 2,446 108 195 108 
(Decrease) increase from the 15-year average
(6)%1 %— %81 %
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