Core Insights - The article emphasizes the importance of identifying companies with consistently growing income as potential investment candidates [1] Group 1: Company Insights - The author has been involved in dividend investing since 2009 and has been documenting their journey towards financial independence through dividend growth investing since July 2018 [1] - The author contributes to various financial platforms, indicating a commitment to sharing insights on dividend growth stocks and growth stocks [1] Group 2: Investment Philosophy - The focus is on dividend growth investing as a strategy to achieve financial independence, highlighting its significance in the author's investment approach [1] - The article reflects a personal narrative that connects the author's investment journey with the broader community of investors [1]

Core Insights - The article emphasizes the importance of identifying companies with consistently growing income as potential investment candidates [1] Group 1: Company Insights - The author has been involved in dividend investing since 2009 and has been documenting their journey towards financial independence through dividend growth investing since July 2018 [1] - The author contributes to various financial platforms, indicating a broad engagement with the investment community [1] Group 2: Investment Philosophy - The focus is on dividend growth stocks, which are seen as a means to achieve financial independence [1] - The article reflects a personal investment philosophy centered around the reliability of income growth from investments [1]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1] - The energy demands of AI technologies are immense, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for supporting the anticipated surge in energy demand from AI [3][7] Investment Opportunity - The company in focus is not a chipmaker or cloud platform but is positioned to benefit significantly from the increasing energy needs of AI data centers [3] - It operates in the nuclear energy sector, which is crucial for America's future power strategy, and is capable of executing large-scale engineering projects across various energy sectors [7] - The company is debt-free and has a substantial cash reserve, equating to nearly one-third of its market capitalization, making it financially robust compared to other energy firms [8] Market Position - The company is involved in U.S. LNG exportation, which is expected to grow under the current administration's energy policies, positioning it favorably in the market [7] - It has an equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities in the AI sector [9] - The stock is currently undervalued, trading at less than seven times earnings, which presents a compelling investment case [10] Industry Trends - The AI infrastructure supercycle, driven by onshoring trends and tariff policies, is creating a unique investment landscape [14] - The influx of talent into the AI sector is expected to lead to rapid advancements and innovative ideas, further solidifying AI's role as a transformative force in various industries [12] - Companies that adapt to and embrace AI technologies are likely to thrive, while those that resist change may struggle to survive [11]

Core Viewpoint - The article highlights Portland General Electric (POR) as a strong value stock, supported by its favorable valuation metrics and earnings outlook [4][8]. Valuation Metrics - POR has a P/E ratio of 12.86, which is lower than the industry average of 14.42. Its Forward P/E has fluctuated between 12.04 and 15.41 over the past year, with a median of 13.05 [4]. - The stock's P/B ratio stands at 1.22, significantly lower than the industry's average of 2.66. Over the past year, POR's P/B has ranged from 1.13 to 1.44, with a median of 1.21 [5]. - POR's P/S ratio is 1.34, compared to the industry average of 2.36, indicating a more favorable valuation based on sales [6]. - The P/CF ratio for POR is 5.69, which is substantially lower than the industry's average of 12.63. This ratio has varied between 5.28 and 6.49 over the past year, with a median of 5.71 [7]. Investment Outlook - The combination of POR's strong valuation metrics and positive earnings outlook suggests that the stock is currently undervalued, making it an attractive option for value investors [8].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a Free Two-Week Trial for potential investors to explore top ideas within exclusive income-focused portfolios [1] Group 2 - There is a potential for initiating a beneficial Long position in POR through stock purchases or call options within the next 72 hours [2] - The article expresses the author's own opinions and does not involve compensation from any mentioned companies [2] Group 3 - The article is intended for informational purposes and does not constitute financial advice, encouraging readers to perform due diligence [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [4]

Core Insights - Portland General Electric (PGE) has completed three new utility-scale battery energy storage systems, adding 475 megawatts (MW) and over 1.9 gigawatt hours (GWh) of dispatchable capacity to serve the Portland metro area [1][5] - The new facilities can power approximately 300,000 homes for four hours during peak demand or when power is limited [2] - These battery systems enhance PGE's ability to respond to sudden changes in the grid, providing more stable and reliable power at the lowest possible cost [3] Company Overview - PGE serves over 950,000 customers in an area of 1.9 million Oregonians and has been operational since 1889, focusing on safe, affordable, reliable, and increasingly clean electricity [6] - PGE aims to reduce emissions from its retail power supply by 80% by 2030 and 100% by 2040, and has the No. 1 voluntary renewable energy program in the country [6] - In 2024, PGE employees and the PGE Foundation donated $5.5 million and volunteered nearly 23,000 hours to over 480 nonprofit organizations [6] Project Details - The three new facilities include Seaside (200 MW), Sundial (200 MW), and Constable (75 MW), strategically located at key substations [7] - The facilities were developed through PGE's 2021 All-Source Request for Proposals (RFP) process, with Eolian, L.P. being a key developer [4][7] - The completion of these facilities brings PGE's total large-scale battery storage capacity to 492 MW, including the previously completed 17 MW Coffee Creek Battery Storage system [5]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported GAAP net income of $62 million or $0.56 per diluted share, compared to $72 million or $0.69 per diluted share in Q2 2024 [15] - Non-GAAP net income for Q2 2025 was $73 million or $0.66 per share, down from $72 million or $0.69 per share in the same quarter last year [15][16] - Total load increased by 4.9% overall and 6.1% weather adjusted compared to Q2 2024 [18] Business Line Data and Key Metrics Changes - Industrial load, particularly from data centers, saw a significant increase of 16.5% on a nominal and weather-adjusted basis [18] - Residential load decreased by 2.3% quarter over quarter but increased by 1% when weather adjusted [18] - Commercial load increased slightly by 0.3% overall or 0.7% weather adjusted [18] Market Data and Key Metrics Changes - Sustained growth from data center and high-tech customers was reported, with over 16% growth compared to the same quarter last year [11] - The Oregon legislature passed the Power Act, which enhances regulatory flexibility and supports growth in the data center sector [12] Company Strategy and Development Direction - The company is focused on five strategic priorities: investing in clean energy, keeping customer prices low, supporting data center growth, reducing operational risks, and promoting an investable energy future [7][8] - A proposed corporate structure update aims to reduce investment costs and improve regulatory predictability [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a solid performance for the year, reaffirming 2025 adjusted earnings guidance of $3.13 to $3.33 per diluted share [29] - The company is committed to safe, reliable, and efficient operations while advancing strategic priorities [29] Other Important Information - Total liquidity at the end of Q2 was $980 million, with credit ratings remaining stable [27] - The company plans to issue a 2025 RFP in the coming weeks, anticipating a final shortlist in 2026 [25][26] Q&A Session Summary Question: How does the MOU inform the path for the seaside and distribution recovery proceedings? - Management indicated that the MOU allows for better understanding and shared outcomes before entering a rate review proceeding, leading to certainty and predictability [35][36] Question: Can you discuss the business transformation efforts and their costs? - Management confirmed that business transformation costs will continue into next year, with benefits expected to materialize later this year and into 2026 [42][43] Question: How do you see ROEs trending until the next base rates? - Management expects to maintain the current ROE range despite the timing of the next base rate case, supported by cost management actions [64] Question: What impact will the industrial demand growth have on power costs? - Management noted that long-term contracts with key customers will help reduce power cost pressures and improve financing for infrastructure investments [120][121] Question: What is the anticipated timing for the next rate case? - The MOU specifies that the earliest filing for the next general rate review would occur after Q2 2026 [125]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported GAAP net income of $62 million or $0.56 per diluted share, compared to GAAP net income of $72 million or $0.69 per diluted share in Q2 2024 [15][16] - Non-GAAP net income for Q2 2025 was $73 million or $0.66 per share, reflecting a decrease from the previous year [15][16] - Total load increased by 4.9% overall and 6.1% weather adjusted compared to Q2 2024 [18][20] Business Line Data and Key Metrics Changes - Industrial load, particularly from data centers, saw a significant increase of 16.5% on a nominal and weather-adjusted basis [20] - Residential load decreased by 2.3% quarter over quarter but increased by 1% when weather adjusted [18] - Commercial load increased slightly by 0.3% overall or 0.7% weather adjusted [18] Market Data and Key Metrics Changes - Sustained growth from data center and high-tech customers was noted, with over 16% growth compared to the same quarter last year [10] - The Oregon legislature passed the Power Act, which enhances regulatory flexibility and supports growth in the data center sector [12] Company Strategy and Development Direction - The company is focused on five strategic priorities: investing in clean energy, keeping customer prices low, supporting data center growth, reducing operational risks, and promoting an investable energy future [6][7] - A proposed corporate structure update aims to reduce investment costs and improve regulatory clarity [13][14] - The company plans to file for a holding company to enhance flexibility and efficiency in financing [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a solid performance for the year, reaffirming adjusted earnings guidance of $3.13 to $3.33 per diluted share [30] - The company anticipates continued demand growth from industrial customers, underpinning long-term growth expectations of 3% through 2029 [20] - Management highlighted the importance of tax credits in reducing clean energy costs and maintaining customer affordability [8][102] Other Important Information - Total liquidity at the end of Q2 was $980 million, with credit ratings remaining stable [27] - The company is focused on cost management and optimization to reduce overall expenses [29] Q&A Session Summary Question: How does the MOU inform the path for the seaside and distribution recovery proceedings? - Management indicated that the MOU allows for better understanding and shared outcomes before entering a rate review proceeding, aiming for predictability and value [34][36] Question: What are the dynamics between the 2023 and 2025 RFPs? - Management noted that the repricing of the 2023 RFP will open opportunities for bidders and aims to drive certainty in project execution [37][40] Question: Will business transformation costs continue into next year? - Management confirmed that costs related to business transformation will persist into next year, with benefits expected to materialize later [41][42] Question: How will the Fair Energy Act impact rate timing? - Management explained that the Fair Energy Act allows for multi-year rate making, aligning customer prices with less challenging months [46][48] Question: How will industrial demand growth affect power costs? - Management stated that long-term contracts with key customers will help stabilize power costs and reduce pressures on all customers [112][114]

Company Overview and Financial Performance - PGE serves approximately 950,000 retail customers within a service area of approximately 19 million residents[15] - The company's 2024 revenue was $34 billion[15] - 2024 diluted earnings per share were $301 GAAP and $314 adjusted non-GAAP[15] - The company anticipates long-term EPS growth of 5% to 7%[20] Clean Energy Transition and Investments - PGE is committed to 100% clean energy by 2040, with interim targets of 80% reduction in greenhouse gas emissions by 2030 and 90% by 2035[15] - In 2024, PGE brought online 311 MW of wind energy and integrated 292 MW of battery storage[20, 67] - The company plans to procure an additional 3,500 to 4,500 MW of non-emitting resources through 2030[20, 71] - The company's total liquidity as of June 30, 2025, was $980 million, including $56 million in cash and $750 million in credit facilities[61] Service Area and Demand Growth - Residential customers accounted for 36% of retail deliveries in 2024, commercial 32%, and industrial 32%[25] - The company experienced strong industrial load growth, with an 82% CAGR from 2019-2024[25, 27] - PGE forecasts energy deliveries growth of 3% per year through 2029[25] Capital Expenditures and Rate Base Growth - The company's five-year base capital expenditure forecast of $65 billion drives 7% average rate base growth from the 2024 base year[42] - Illustrative incremental RFP opportunities potentially increase average rate base growth to 9% from the 2024 base year[42]

[Executive Summary & Q2 2025 Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Financial%20Highlights) PGE reported Q2 2025 GAAP net income of $62 million and non-GAAP net income of $73 million, reflecting solid operational execution and significant industrial load growth [Q2 2025 Financial Performance (GAAP & Non-GAAP)](index=1&type=section&id=Q2%202025%20Financial%20Performance%20(GAAP%20%26%20Non-GAAP)) For the second quarter of 2025, Portland General Electric reported GAAP net income of $62 million ($0.56 per diluted share) and non-GAAP net income of $73 million ($0.66 per diluted share), adjusted for business transformation expenses. This compares to GAAP net income of $72 million ($0.69 per diluted share) in Q2 2024. Total revenues increased due to demand growth, partially offset by lower average prices, while various operating and non-operating expenses also rose Q2 2025 Financial Performance (GAAP & Non-GAAP) | Metric | Q2 2025 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (GAAP) | | :---------------------- | :------------- | :----------------- | :------------- | | Net Income | $62 million | $73 million | $72 million | | Diluted EPS | $0.56 | $0.66 | $0.69 | - Total revenues increased due to continued demand growth from semiconductor manufacturing and technology infrastructure customers, partially offset by lower average price of deliveries from changing customer mix[3](index=3&type=chunk) - Operating expenses, including purchased power and fuel, operating and maintenance (due to wildfire mitigation, vegetation management, business transformation), depreciation and amortization, and interest expense, all increased[3](index=3&type=chunk) [CEO Commentary & Operational Overview](index=1&type=section&id=CEO%20Commentary%20%26%20Operational%20Overview) CEO Maria Pope highlighted Q2 2025 as a period of solid execution, focusing on safe and reliable customer service, stakeholder engagement, efficiency, and corporate structure updates to reduce costs. The quarter saw significant industrial load growth, particularly from data center customers - Maria Pope, President and CEO, stated, "The second quarter was a period of execution and solid progress at Portland General Electric. We are focused on safely and reliably serving customers, engaging with stakeholders, driving efficiencies and updating our corporate structure to lower costs and deliver results"[3](index=3&type=chunk) - Second quarter financial results reflect **significant demand growth from data center customers**, driving **16.5% industrial load growth quarter-over-quarter**[6](index=6&type=chunk) [Company & Regulatory Updates](index=1&type=section&id=Company%20%26%20Regulatory%20Updates) PGE is pursuing a corporate structure reorganization for financial flexibility, filing for cost recovery on key projects, refreshing its 2023 RFP, and announcing a quarterly dividend [Corporate Structure Reorganization](index=1&type=section&id=Corporate%20Structure%20Reorganization) PGE is seeking Oregon Public Utilities Commission (OPUC) approval for a holding company reorganization. This structure aims to enhance financial flexibility, support new transmission asset construction, improve reliability planning, and foster economic development by placing a non-operating corporate entity over the existing structure and forming a subsidiary for transmission assets - PGE is submitting a formal application to the OPUC for approval of a holding company reorganization[4](index=4&type=chunk) - The reorganization intends to provide benefits to customers and shareholders by taking advantage of financial flexibility, and to support construction of new transmission assets, reliability planning, and economic development[4](index=4&type=chunk) [Regulatory Filings & Approvals](index=1&type=section&id=Regulatory%20Filings%20%26%20Approvals) PGE has filed requests with the OPUC for cost recovery related to its Distribution System Plan (DSP), seeking a $72 million annualized revenue increase effective April 1, 2026, and for the Seaside Battery Energy Storage System, requesting a $46 million annualized increase effective October 31, 2025. A memorandum of understanding has been established with intervenors to define the scope of these recovery mechanisms - PGE is submitting a request to the OPUC for recovery of costs associated with PGE's Distribution System Plan (DSP), including an **annualized revenue requirement increase of $72 million**, with a proposed rate effective date of April 1, 2026[7](index=7&type=chunk) - PGE submitted a request for recovery of the revenue requirement associated with the Seaside Battery Energy Storage System (Seaside), including an **annualized revenue requirement increase of $46 million**, with a proposed rate effective date of October 31, 2025[8](index=8&type=chunk) - PGE entered into a memorandum of understanding with intervenors, which establishes the scope of recovery mechanisms for both Seaside and costs associated with PGE's DSP[9](index=9&type=chunk) [2023 Request for Proposals (RFP)](index=2&type=section&id=2023%20Request%20for%20Proposals%20(RFP)) Following the One Big Beautiful Bill (OBBB), PGE plans to allow 2023 RFP bidders to refresh their pricing. The company expects to finalize contracts in the second half of 2025, with projects in service by the end of 2027, to maximize federal tax credits and minimize customer prices - PGE plans to provide an opportunity for all conforming 2023 RFP bidders to refresh their pricing following the passage of the One Big Beautiful Bill (OBBB)[10](index=10&type=chunk) - PGE continues to expect finalization of contracts in the **second half of 2025**, with projects in service by the **end of 2027**, to maximize federal tax credits and keep customer prices as low as possible[11](index=11&type=chunk) [Quarterly Dividend Announcement](index=2&type=section&id=Quarterly%20Dividend%20Announcement) PGE's board of directors approved a quarterly common stock dividend of $0.525 per share, payable on or before October 15, 2025, to shareholders of record as of September 25, 2025 - The board of directors approved a quarterly common stock dividend of **$0.525 per share**[12](index=12&type=chunk) - The quarterly dividend is payable on or before **October 15, 2025**, to shareholders of record at the close of business on **September 25, 2025**[12](index=12&type=chunk) [2025 Earnings Guidance](index=2&type=section&id=2025%20Earnings%20Guidance) PGE reaffirmed its full-year 2025 adjusted earnings guidance, providing key assumptions for energy deliveries, operating costs, and capital expenditures [Guidance Reaffirmation](index=2&type=section&id=Guidance%20Reaffirmation) PGE reaffirmed its full-year 2025 adjusted earnings guidance, projecting $3.13 to $3.33 per diluted share - PGE is reaffirming its estimate for full-year 2025 adjusted earnings guidance of **$3.13 to $3.33 per diluted share**[6](index=6&type=chunk)[13](index=13&type=chunk) [Key Assumptions](index=2&type=section&id=Key%20Assumptions) The 2025 earnings guidance is based on several key assumptions, including an increase in energy deliveries, effective power cost and financing plans, controlled operating costs, normal weather and plant operations, and specific financial targets for O&M, D&A, tax rate, cash from operations, and capital expenditures 2025 Earnings Guidance Key Assumptions | Assumption | Range/Value | | :------------------------------------------ | :---------------------- | | Energy deliveries increase (weather adjusted) | 2.5% to 3.5% | | Operating and maintenance expense | $795 million to $815 million | | Depreciation and amortization expense | $550 million to $575 million | | Effective tax rate | 15% to 20% | | Cash from operations | $900 million to $1,000 million | | Capital expenditures | $1,215 million | | Average construction work in progress balance | $595 million | - Other assumptions include execution of power cost and financing plans, execution of operating cost controls, normal temperatures in its utility service territory, and normal thermal plant operations[14](index=14&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) PGE utilizes non-GAAP financial measures, such as adjusted earnings and EPS, to provide a clearer view of ongoing operating performance by excluding infrequent or non-recurring items [Definition and Purpose](index=3&type=section&id=Definition%20and%20Purpose) PGE uses non-GAAP financial measures, such as adjusted earnings and EPS, to exclude significant, infrequent items not related to ongoing business activities. This provides a more meaningful representation of comparative earnings and helps investors and management evaluate the company's ongoing operating financial performance, serving as supplementary information to GAAP - Non-GAAP financial measures (adjusted earnings, adjusted EPS, adjusted earnings guidance) exclude significant items generally not related to ongoing business activities or infrequent in nature[16](index=16&type=chunk) - PGE believes these measures provide a meaningful representation of comparative earnings per share and enable investors to evaluate ongoing operating financial performance[16](index=16&type=chunk) - Items impacting comparability and not representing ongoing operating financial performance include business transformation and optimization expenses (strategic advisory, workforce realignment, corporate structure update costs)[17](index=17&type=chunk) [Q2 2025 Reconciliation](index=3&type=section&id=Q2%202025%20Reconciliation) For the second quarter of 2025, PGE reconciled its GAAP net income of $62 million ($0.56 diluted EPS) to non-GAAP net income of $73 million ($0.66 diluted EPS) by adding back $15 million in business transformation and optimization expenses, offset by a $4 million tax effect Non-GAAP Earnings Reconciliation for Q2 2025 | (Dollars in millions, except EPS) | Net Income | Diluted EPS | | :------------------------------------------------- | :--------- | :---------- | | GAAP as reported for the quarter ended June 30, 2025 | $62 | $0.56 | | Exclusion of business transformation and optimization expenses | 15 | 0.14 | | (1) Tax effect | (4) | (0.04) | | **Non-GAAP as reported for the quarter ended June 30, 2025** | **$73** | **$0.66** | [Company Profile](index=4&type=section&id=Company%20Profile) Portland General Electric is an integrated energy company serving over 950,000 customers in Oregon, committed to reducing emissions by 80% by 2030 and 100% by 2040, and recognized for its customer experience - Portland General Electric (PGE) is an integrated energy company that generates, transmits, and distributes electricity to over **950,000 customers**, serving an area of **1.9 million Oregonians**[21](index=21&type=chunk) - PGE is committed to reducing emissions from its retail power supply by **80% by 2030** and **100% by 2040**[21](index=21&type=chunk) - PGE was ranked the **No. 1 utility in the 2024 Forrester U.S. Customer Experience Index**[21](index=21&type=chunk) [Forward-Looking Statements & Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section outlines the company's forward-looking statements, which are subject to various risks and uncertainties, including regulatory, operational, supply chain, and environmental factors [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements, which are estimates and assumptions about future plans, objectives, and expectations. These statements are subject to risks and uncertainties, and the company assumes no obligation to update or revise them - Statements relating to future plans, objectives, expectations, performance, and events constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995[22](index=22&type=chunk) - These statements represent the Company's estimates and assumptions as of the report date, and the Company assumes no obligation to update or revise them[22](index=22&type=chunk) - Forward-looking statements include those regarding full-year earnings guidance and other statements containing words such as "anticipates," "expects," "plans," and similar expressions[23](index=23&type=chunk) [Key Risks and Uncertainties](index=4&type=section&id=Key%20Risks%20and%20Uncertainties) Investors are cautioned that forward-looking statements are subject to numerous risks, including regulatory and legal actions, changing customer demands, operational disruptions, supply chain issues, environmental regulations, market volatility, capital market conditions, climate change impacts (e.g., wildfires), cybersecurity threats, workforce factors, and geopolitical events. Actual results may differ materially from projections - Risks include the timing or outcome of legal and regulatory actions, governmental policies, and regulatory audits concerning rates, financings, and facility operations[24](index=24&type=chunk) - Operational risks relate to generation and battery storage facilities, including hydro/wind conditions, fuel supply disruptions, and unscheduled plant outages, leading to unanticipated costs[24](index=24&type=chunk) - Other significant risks include supply chain delays and increased costs, failure to complete capital projects on schedule or within budget, changes in environmental laws and policies (especially regarding carbon emissions and wildfires), volatility in wholesale power and natural gas prices, and cybersecurity attacks[24](index=24&type=chunk)[25](index=25&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, and cash flows, detailing the company's financial position and performance for the reported periods [Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For Q2 2025, net income decreased to $62 million from $72 million in Q2 2024, and for the six months ended June 30, 2025, it decreased to $162 million from $181 million in 2024. This decline occurred despite an increase in total revenues, primarily due to higher operating expenses, interest expense, and income tax expense Condensed Consolidated Statements of Income and Comprehensive Income | Metric | Three Months Ended June 30, 2025 ($M) | Three Months Ended June 30, 2024 ($M) | Six Months Ended June 30, 2025 ($M) | Six Months Ended June 30, 2024 ($M) | | :---------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Total revenues | 807 | 758 | 1,735 | 1,687 | | Total operating expenses| 689 | 642 | 1,449 | 1,409 | | Income from operations | 118 | 116 | 286 | 278 | | Interest expense, net | 57 | 52 | 113 | 103 | | Income tax expense | 12 | 7 | 34 | 20 | | Net income | 62 | 72 | 162 | 181 | | Diluted EPS | $0.56 | $0.69 | $1.47 | $1.77 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased slightly to $12,681 million from $12,544 million at December 31, 2024, primarily driven by an increase in electric utility plant, net. Total liabilities also rose to $8,829 million from $8,750 million, with long-term debt increasing while current liabilities decreased. Shareholders' equity saw a modest increase Condensed Consolidated Balance Sheets (Selected Items) | Item | June 30, 2025 ($M) | December 31, 2024 ($M) | | :---------------------------- | :----------------- | :--------------------- | | Total current assets | 890 | 1,025 | | Electric utility plant, net | 10,645 | 10,345 | | Total assets | 12,681 | 12,544 | | Total current liabilities | 913 | 1,119 | | Long-term debt, net | 4,663 | 4,354 | | Total liabilities | 8,829 | 8,750 | | Total shareholders' equity | 3,852 | 3,794 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities significantly increased to $567 million from $364 million in the prior year. Net cash used in investing activities slightly decreased, while net cash provided by financing activities decreased due to lower proceeds from debt issuance and common stock. Overall, cash and cash equivalents increased by $44 million Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2025 ($M) | 2024 ($M) | | :-------------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | 567 | 364 | | Net cash used in investing activities | (609) | (639) | | Net cash provided by financing activities | 86 | 276 | | Change in cash and cash equivalents | 44 | 1 | | Cash and cash equivalents, end of period| $56 | $6 | [Supplemental Operating Statistics](index=12&type=section&id=Supplemental%20Operating%20Statistics) This section provides detailed operating statistics, including revenues by customer class, energy deliveries, average retail customer numbers, sources of energy, and weather data, offering insights into operational performance [Revenues by Customer Class](index=12&type=section&id=Revenues%20by%20Customer%20Class) For the six months ended June 30, 2025, total retail revenues increased, primarily driven by a significant rise in industrial and commercial revenues. However, wholesale revenues experienced a notable decrease, leading to an overall modest increase in total revenues Revenues by Customer Class (Six Months Ended June 30) | Category | 2025 ($M) | % of Total | 2024 ($M) | % of Total | Change ($M) | Change (%) | | :------------------------ | :-------- | :--------- | :-------- | :--------- | :---------- | :--------- | | Residential | 740 | 43% | 722 | 43% | 18 | 2.5% | | Commercial | 476 | 27% | 446 | 27% | 30 | 6.7% | | Industrial | 255 | 15% | 206 | 12% | 49 | 23.8% | | Subtotal Retail | 1,490 | 86% | 1,389 | 83% | 101 | 7.3% | | Wholesale revenues | 188 | 11% | 275 | 16% | (87) | -31.6% | | **Total revenues** | **1,735** | **100%** | **1,687** | **100%** | **48** | **2.8%** | [Energy Deliveries](index=12&type=section&id=Energy%20Deliveries) Total energy deliveries for the six months ended June 30, 2025, increased by 4.3% to 15,427 thousand MWhs, up from 14,794 thousand MWhs in 2024. This growth was primarily driven by significant increases in industrial and direct access customer deliveries Energy Deliveries (Six Months Ended June 30) | Category | 2025 (MWhs in thousands) | % of Total | 2024 (MWhs in thousands) | % of Total | Change (MWhs) | Change (%) | | :------------------------ | :----------------------- | :--------- | :----------------------- | :--------- | :------------ | :--------- | | Residential | 3,797 | 25% | 3,851 | 26% | (54) | -1.4% | | Commercial | 3,178 | 20% | 3,176 | 21% | 2 | 0.1% | | Industrial | 2,814 | 18% | 2,390 | 16% | 424 | 17.7% | | Direct access (Commercial)| 264 | 2% | 247 | 2% | 17 | 6.9% | | Direct access (Industrial)| 956 | 6% | 847 | 6% | 109 | 12.9% | | **Total energy deliveries** | **15,427** | **100%** | **14,794** | **100%** | **633** | **4.3%** | [Average Number of Retail Customers](index=12&type=section&id=Average%20Number%20of%20Retail%20Customers) The average number of retail customers increased by 1.4% to 953,603 for the six months ended June 30, 2025, compared to 940,231 in 2024. Growth was observed across all segments, with direct access customers showing the highest percentage increase Average Number of Retail Customers (Six Months Ended June 30) | Category | 2025 | % of Total | 2024 | % of Total | Change | Change (%) | | :------------------------ | :-------- | :--------- | :-------- | :--------- | :------- | :--------- | | Residential | 838,516 | 88% | 826,297 | 88% | 12,219 | 1.5% | | Commercial | 114,211 | 12% | 113,223 | 12% | 988 | 0.9% | | Industrial | 217 | —% | 206 | —% | 11 | 5.3% | | Direct access | 659 | —% | 505 | —% | 154 | 30.5% | | **Total** | **953,603** | **100%** | **940,231** | **100%** | **13,372** | **1.4%** | [Sources of Energy](index=13&type=section&id=Sources%20of%20Energy) For the six months ended June 30, 2025, total system load increased by 1.8%. Total generation increased by 9.5%, primarily driven by a 15.6% rise in natural gas generation. Conversely, total purchased power decreased by 7.2%, mainly due to a significant reduction in unspecified and natural gas purchased power, partially offset by increases in hydro and solar purchased power Sources of Energy (Six Months Ended June 30) | Source Category | 2025 (MWhs in thousands) | % of Total | 2024 (MWhs in thousands) | % of Total | Change (MWhs) | Change (%) | | :------------------------ | :----------------------- | :--------- | :----------------------- | :--------- | :------------ | :--------- | | **Total generation** | **8,458** | **58%** | **7,726** | **53%** | **732** | **9.5%** | | Natural gas (Generation) | 5,396 | 37% | 4,669 | 32% | 727 | 15.6% | | Wind (Generation) | 1,465 | 10% | 1,538 | 11% | (73) | -4.7% | | **Total purchased power** | **6,180** | **42%** | **6,658** | **47%** | **(478)** | **-7.2%** | | Hydro (Purchased) | 3,772 | 26% | 3,415 | 24% | 357 | 10.5% | | Solar (Purchased) | 593 | 4% | 497 | 3% | 96 | 19.3% | | Natural Gas (Purchased) | — | —% | 94 | 1% | (94) | -100.0% | | Source not specified (Purchased) | 1,170 | 8% | 1,846 | 13% | (676) | -36.6% | | **Total system load** | **14,638** | **100%** | **14,384** | **100%** | **254** | **1.8%** | [Weather Data (Degree-days)](index=13&type=section&id=Weather%20Data%20(Degree-days)) For the six months ended June 30, 2025, both heating and cooling degree-days were below their 15-year averages, indicating milder weather conditions. Heating degree-days were 8% below average, and cooling degree-days were 3% below average Year-to-date Weather Data (June 30) | Metric | 2025 | 2024 | 15-year Avg. | (Decrease) from Avg. | | :---------------- | :--- | :--- | :----------- | :------------------- | | Heating Degree-days | 2,236 | 2,302 | 2,425 | (8)% | | Cooling Degree-days | 106 | 108 | 109 | (3)% |