Portland General Electric Company (NYSE:POR) Q3 2023 Earnings Conference Call October 27, 2023 11:00 AM ET Company Participants Nick White - Manager, Investor Relations Maria Pope - President & Chief Executive Officer Joe Trpik - Senior Vice President of Finance & Chief Financial Officer Conference Call Participants Shahriar Pourreza - Guggenheim Partners Richard Sunderland - JPMorgan Julien Dumoulin-Smith - Bank of America Nicholas Campanella - Barclays Gregg Orrill - UBS Andrew Levi - HITE Hedge Asset Man ...

Forward-looking statements include statements regarding the Company's full-year earnings guidance (including expectations regarding annual retail deliveries, 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," "based on," "believes," "conditioned upon," "considers," "could," "estimates," "expects," "expected," "forecast," "goals," "intends," "needs, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission File Number: 001-5532-99 PORTLAND GENERAL ELECTRIC COMPANY (Exact name of registrant as specifi ...

Portland General Electric Company (NYSE:POR) Q2 2023 Earnings Conference Call July 28, 2023 11:00 AM ET Company Participants Jardon Jaramillo - Senior Director, Finance Maria Pope - President and CEO Joe Trpik - Senior Vice President, Finance and CFO Conference Call Participants Julien Dumoulin-Smith - Bank of America Shahriar Pourreza - Guggenheim Partners Richard Sunderland - J.P. Morgan Anthony Crowdell - Mizuho Operator Good morning, everyone. And welcome to Portland General Electric Company’s Second Qu ...

Financial Performance & Guidance - 2022 Non-GAAP Diluted EPS 为 $2.74[1] - 公司预计从2022年Non-GAAP调整后的基准年起，长期EPS增长率为5%至7%[4] - 公司重申2023年调整后盈利指引为每股摊薄收益 $2.60 至 $2.75[28] - 截至2023年6月30日，公司总流动资金为6.51亿美元，其中包括5.1亿美元的信贷额度，1.28亿美元的信用证和1300万美元的现金[37] Operational Efficiency & Growth - 公司正在提高运营效率，以实现大致持平的运营和维护成本，这得益于新的数字工具和技术部署[2] - 公司预计2023年经天气调整后的负荷增长率为2.5%至3%[12] - 公司将持续负荷和客户增长，并推进额外的可再生、非排放容量和输电资源的计划[5] Capital Investments & Financing - 公司预计将在Q3发行3亿美元的长期债务，并在Q4发行2亿美元的长期债务[18] - 公司在2022年的股权远期销售协议中已结算至今日的总额为4.84亿美元[18] - 公司在2023年第二季度启动了一个“按市场价格发行”计划，已融资3亿美元[18]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) Presents PGE's unaudited condensed consolidated financial statements for Q2 and H1 2023, highlighting decreased net income, higher power costs, and key financial notes [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's financial statements show decreased net income for Q2 and H1 2023, with diluted EPS dropping, and a significant decline in operating cash flow Key Financial Indicators | Indicator | Three Months Ended June 30, 2023 (in millions) | Three Months Ended June 30, 2022 (in millions) | Six Months Ended June 30, 2023 (in millions) | Six Months Ended June 30, 2022 (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $648 million | $591 million | $1,396 million | $1,217 million | | **Income from Operations** | $81 million | $112 million | $198 million | $218 million | | **Net Income** | $39 million | $64 million | $113 million | $124 million | | **Diluted EPS** | $0.39 | $0.72 | $1.19 | $1.39 | Condensed Consolidated Balance Sheet Data | Account | June 30, 2023 (in millions) | December 31, 2022 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $676 million | $1,210 million | | **Electric Utility Plant, Net** | $8,841 million | $8,465 million | | **Total Assets** | $10,370 million | $10,459 million | | **Total Current Liabilities** | $761 million | $1,496 million | | **Long-term Debt, Net** | $3,486 million | $3,386 million | | **Total Liabilities** | $7,170 million | $7,680 million | | **Total Shareholders' Equity** | $3,200 million | $2,779 million | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity (Six Months Ended June 30) | 2023 (in millions) | 2022 (in millions) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $143 million | $451 million | | **Net Cash used in Investing Activities** | ($574) million | ($334) million | | **Net Cash from (used in) Financing Activities** | $279 million | ($78) million | | **(Decrease) Increase in Cash** | ($152) million | $39 million | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details PGE's financial reporting basis, including revenue, regulatory assets, significant contingencies, and recent equity financing activities - PGE is a vertically-integrated electric utility serving **928,000** retail customers in Oregon as of **June 30, 2023**[25](index=25&type=chunk) Revenue by Customer Type | Revenue by Customer Type (in millions) | Q2 2023 (in millions) | Q2 2022 (in millions) | H1 2023 (in millions) | H1 2022 (in millions) | | :--- | :--- | :--- | :--- | :--- | | **Residential** | $279 | $250 | $641 | $558 | | **Commercial** | $196 | $168 | $393 | $346 | | **Industrial** | $87 | $73 | $169 | $142 | | **Total Retail Revenues** | $567 | $503 | $1,218 | $1,067 | | **Total Revenues** | $648 | $591 | $1,396 | $1,217 | - PGE is a Potentially Responsible Party for the Portland Harbor Superfund site cleanup. While PGE's specific liability is not yet reasonably estimable, the total undiscounted remediation cost for the site is estimated to range from **$1.9 billion** to **$3.5 billion**[117](index=117&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) - The company is subject to ongoing investigations by the **CFTC**, **SEC**, and **FERC** related to energy trading losses announced in **August 2020**[125](index=125&type=chunk) - In the **first half of 2023**, PGE issued a total of **9,390,626 shares** under its Equity Forward Sale Agreement (**EFSA**), receiving net proceeds of **$392 million**[104](index=104&type=chunk)[106](index=106&type=chunk) - PGE filed its **2024 General Rate Case**, which includes a request to recover **$188 million** in capital costs for the Faraday hydro facility repowering project[136](index=136&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Details the company's strategy, operational performance, and financial results, focusing on decarbonization, renewable investments, regulatory matters, and rising power costs [Overview](index=38&type=section&id=OVERVIEW) Outlines PGE's business strategy focused on decarbonization, electrification, and performance, detailing climate goals, clean energy investments, and regulatory matters - PGE's strategy focuses on three initiatives: Decarbonize Power (**100% clean by 2040**), Electrify the Economy, and Advance Performance (targeting **5-7% annual EPS growth**)[158](index=158&type=chunk) - Through its 2021 All-Source RFP, PGE is acquiring **311 MW of wind resources** (Clearwater Wind) and **475 MW of battery storage capacity** to meet its **2030 emissions reduction target**[161](index=161&type=chunk)[163](index=163&type=chunk) - On **February 15, 2023**, PGE filed a General Rate Case requesting an overall average increase of approximately **14.0%** in customer prices for **2024**, driven by capital investments and higher net variable power costs[192](index=192&type=chunk) Energy Deliveries | Energy Deliveries (MWhs in thousands) | H1 2023 (MWhs in thousands) | H1 2022 (MWhs in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Residential** | 4,057 | 3,940 | 3% | | **Commercial** | 3,252 | 3,186 | 2% | | **Industrial** | 2,211 | 1,972 | 12% | | **Total Retail** | 10,669 | 10,216 | 4% | [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Analyzes Q2 and H1 2023 operational results, showing a significant decline in net income due to increased purchased power and fuel expenses, and rising distribution costs Key Financial Indicators | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $648M | $591M | 10% | | **Purchased Power and Fuel** | $220M | $168M | 31% | | **Income from Operations** | $81M | $112M | (28)% | | **Net Income** | $39M | $64M | (39)% | - The increase in Total Retail Revenues for **H1 2023** was primarily driven by price changes from the AUT (**$67 million**) and higher retail energy deliveries from customer load growth (**$42 million**)[238](index=238&type=chunk) - Purchased power and fuel expense for **H1 2023** increased by **$154 million** compared to **H1 2022**, largely due to a **$185 million** impact from a higher average variable power cost per MWh (**$40.01** in 2023 vs **$29.43** in 2022)[243](index=243&type=chunk) - Generation, transmission and distribution expenses for **H1 2023** increased by **$19 million**, driven by higher generating facility expenses (**$12M**), vegetation management and wildfire mitigation (**$10M**), and amortization of prior storm costs (**$11M**)[253](index=253&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Discusses PGE's liquidity, capital resources, and financing strategies, highlighting decreased operating cash flow, projected capital expenditures, and equity financing - Net cash from operating activities decreased by **$308 million** in **H1 2023** compared to **H1 2022**, primarily due to a **$197 million** change in margin deposit activity and a **$178 million** change in accounts payable[260](index=260&type=chunk) Estimated Capital Expenditures | Estimated Capital Expenditures (in millions) | 2023 (in millions) | 2024 (in millions) | 2025 (in millions) | | :--- | :--- | :--- | :--- | | **Ongoing Capital Expenditures** | $945 | $810 | $800 | | **Clearwater Wind Project** | $415 | — | — | | **BESS Projects** | $115 | $240 | $155 | | **Total Capital Expenditures** | $1,475 | $1,050 | $955 | - As of **June 30, 2023**, total liquidity was **$651 million**, which included **$510 million** available under its **$650 million** revolving credit facility and **$13 million** in cash[269](index=269&type=chunk) - The company's common equity ratio was **46.9%** as of **June 30, 2023**, below its target of approximately **50%**[278](index=278&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) States no material changes to market risks, including commodity prices, foreign currency, interest rates, and credit risk, since the 2022 Annual Report - There have been no material changes to market risks affecting the Company from those disclosed in the Annual Report on Form 10-K for the year ended **December 31, 2022**[285](index=285&type=chunk) [Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2023, despite a material change in internal control due to a system upgrade - Management concluded that disclosure controls and procedures were effective as of **June 30, 2023**[286](index=286&type=chunk) - In **April 2023**, PGE implemented a major upgrade to its customer information system, which resulted in a material change in the company's internal control over financial reporting[287](index=287&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 8 of the financial statements for detailed information on legal proceedings - For information regarding legal proceedings, the report refers to **Note 8, Contingencies**, in the Notes to Condensed Consolidated Financial Statements[289](index=289&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) States no material changes to the company's risk factors since the 2022 Annual Report - There have been no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended **December 31, 2022**[290](index=290&type=chunk) [Exhibits](index=67&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications - The report lists exhibits filed, including the Third Amended and Restated Articles of Incorporation, Eleventh Amended and Restated Bylaws, and CEO/CFO certifications[291](index=291&type=chunk)

Portland General Electric Co (NYSE:POR) Q1 2023 Earnings Conference Call April 28, 2023 11:00 AM ET Company Participants Jardon Jaramillo - Former Controller & Assistant Treasurer Maria Pope - President, CEO & Director James Ajello - SVP, Finance, CFO, Treasurer & Corporate Compliance Officer Conference Call Participants Shahriar Pourreza - Guggenheim Securities Julien Dumoulin-Smith - Bank of America Merrill Lynch Sophie Karp - KeyBanc Capital Markets Andrew Levi - Hite Hedge Asset Management Anthony Crowd ...

Cautionary statement 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 co ...

[Definitions](index=4&type=section&id=Definitions) This section provides definitions for abbreviations and acronyms used throughout the Form 10-Q, such as OPUC (Public Utility Commission of Oregon), NVPC (Net Variable Power Costs), and GRC (General Rate Case) - This section provides definitions for abbreviations and acronyms used throughout the Form 10-Q, such as OPUC (Public Utility Commission of Oregon), NVPC (Net Variable Power Costs), and GRC (General Rate Case)[9](index=9&type=chunk) [PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) For the first quarter of 2023, Portland General Electric reported net income of $74 million, an increase from $60 million in the same period of 2022, driven by higher revenues. Total assets decreased slightly to $10.15 billion from $10.46 billion at year-end 2022. The company experienced a net cash outflow from operations of $39 million, a significant shift from a $249 million inflow in Q1 2022, primarily due to working capital changes related to elevated power and fuel costs [Condensed Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q1 2023 vs. Q1 2022 Income Statement Highlights | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | $748 million | $626 million | | **Income from Operations** | $117 million | $106 million | | **Net Income** | $74 million | $60 million | | **Diluted EPS** | $0.80 | $0.67 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $766 million | $1,210 million | | **Total Assets** | $10,151 million | $10,459 million | | **Total Current Liabilities** | $751 million | $1,496 million | | **Total Liabilities** | $7,039 million | $7,680 million | | **Total Shareholders' Equity** | $3,112 million | $2,779 million | - The decrease in total assets and liabilities was primarily driven by a reduction in current assets and liabilities, including a significant drop in cash and cash equivalents from **$165 million to $12 million**, and a decrease in accounts payable[15](index=15&type=chunk)[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 vs. Q1 2022 Cash Flow Summary | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net Cash (Used in) Provided by Operating Activities** | ($39 million) | $249 million | | **Net Cash Used in Investing Activities** | ($276 million) | ($154 million) | | **Net Cash Provided by (Used in) Financing Activities** | $162 million | ($37 million) | | **(Decrease) Increase in Cash and Cash Equivalents** | ($153 million) | $58 million | - The significant decrease in operating cash flow was mainly due to changes in working capital, including a **$174 million decrease in accounts payable** and a **$140 million decrease in margin deposits from wholesale counterparties**. Financing activities were positive due to **$300 million in proceeds from issuing common stock** and **$100 million from long-term debt**, which offset a **$260 million debt repayment**[21](index=21&type=chunk)[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Disaggregated Revenue by Customer Type (Q1 2023 vs Q1 2022) | Customer Type | Q1 2023 Revenue (millions) | Q1 2022 Revenue (millions) | | :--- | :--- | :--- | | Residential | $362 | $308 | | Commercial | $197 | $178 | | Industrial | $82 | $69 | | Wholesale | $88 | $56 | | **Total Revenues** | **$748** | **$626** | - The company is involved in several legal and regulatory contingencies, most notably the EPA investigation of Portland Harbor contamination, where total remediation costs could range from **$1.9 billion to $3.5 billion**, and various litigation related to its part-ownership of the Colstrip coal-fired plant[116](index=116&type=chunk)[118](index=118&type=chunk)[125](index=125&type=chunk) - In March 2023, the company issued **7.2 million shares** under its Equity Forward Sale Agreement (EFSA) and received net proceeds of **$300 million**. The proceeds were used to repay a **$260 million term loan**[63](index=63&type=chunk)[102](index=102&type=chunk) - The company's effective tax rate for Q1 2023 was **15.9%**, lower than the federal statutory rate of **21.0%**, primarily due to federal production tax credits (PTCs) from wind facilities[137](index=137&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income for Q1 2023 rose to $74 million from $60 million in Q1 2022, driven by higher retail revenues from price increases and a 5% increase in energy deliveries. This was partially offset by a 50% increase in purchased power and fuel costs due to higher commodity prices. The company is advancing its clean energy strategy with significant capital investments planned for renewables and grid modernization, totaling $1.3 billion for 2023. Key regulatory activities include a 2024 General Rate Case filing requesting a ~14% price increase to recover these investments and higher operating costs [Company Strategy](index=37&type=section&id=Company%20Strategy) - PGE's core strategy focuses on three initiatives: Decarbonize Power, Electrify the Economy, and Advance Performance[152](index=152&type=chunk) - The company is committed to reducing greenhouse gas emissions by at least **80% by 2030** and **100% by 2040**, in line with Oregon's House Bill 2021[148](index=148&type=chunk)[152](index=152&type=chunk) - Through its 2021 All-Source RFP, PGE has entered into agreements for the **311 MW Clearwater Wind development** and multiple Battery Energy Storage System (BESS) projects totaling **475 MW of capacity**[159](index=159&type=chunk)[165](index=165&type=chunk)[161](index=161&type=chunk) [Laws and Regulations](index=40&type=section&id=Laws%20and%20Regulations) - The Inflation Reduction Act of 2022 (IRA) is expected to provide significant tax incentives for energy and climate initiatives, which PGE believes will create additional investment opportunities and result in lower customer prices[173](index=173&type=chunk) - Oregon's House Bill (HB) 2021 mandates GHG emissions reduction targets for PGE: **80% by 2030**, **90% by 2035**, and **100% by 2040**, compared to a 2010-2012 baseline[174](index=174&type=chunk) - As approved in the 2022 General Rate Case, PGE is further accelerating the depreciation of its Colstrip coal plant investment to be fully depreciated by **December 31, 2025**, ahead of the previous **2030 target**[182](index=182&type=chunk) [Regulatory Matters](index=42&type=section&id=Regulatory%20Matters) - On February 15, 2023, PGE filed a General Rate Case (GRC) for 2024, requesting an overall average customer price increase of approximately **14.0%**. The request is driven by capital investments and higher net variable power costs[186](index=186&type=chunk) - The 2024 GRC filing requests a **9.8% return on equity (ROE)**, a capital structure of **50% equity**, and a rate base of **$6.3 billion**[189](index=189&type=chunk) - PGE is seeking recovery for incremental wildfire mitigation costs exceeding the **$24 million annual amount** currently in rates. As of March 31, 2023, the deferred balance was **$31 million**[193](index=193&type=chunk) [Operating Activities](index=46&type=section&id=Operating%20Activities) Energy Deliveries (MWhs in thousands) | Customer Class | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Residential | 2,327 | 2,216 | 5% | | Commercial | 1,657 | 1,634 | 1% | | Industrial | 1,071 | 974 | 10% | | **Total Retail** | **5,620** | **5,368** | **5%** | - Total retail energy deliveries increased **5% year-over-year**, driven by a **10% increase in the industrial sector** and colder weather. After adjusting for weather, retail energy deliveries increased **1.9%**[212](index=212&type=chunk)[213](index=213&type=chunk)[215](index=215&type=chunk) - Generation from company-owned natural gas plants increased significantly, providing **54% of the total retail load in Q1 2023** compared to **42% in Q1 2022**, due to economic dispatch decisions[219](index=219&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Q1 2023 vs. Q1 2022 Results of Operations (in millions) | Line Item | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $748 | $626 | 19% | | Purchased Power and Fuel | $304 | $202 | 50% | | Income from Operations | $117 | $106 | 10% | | **Net Income** | **$74** | **$60** | **23%** | - The **$87 million increase in total retail revenues** was primarily due to higher prices from the Annual Power Cost Update Tariff (AUT) (**$35 million**) and higher retail energy deliveries (**$26 million**)[230](index=230&type=chunk) - Purchased power and fuel expense increased by **$102 million**, driven by a **$119 million increase** from higher average variable power costs per MWh, which rose from **$30.34 to $44.25**[234](index=234&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) Estimated Capital Expenditures (2023-2025, in millions) | Project Category | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | | Ongoing Capital Expenditures | $840 | $780 | $800 | | Clearwater Wind Project | $415 | $0 | $0 | | BESS Projects | $70 | $130 | $160 | | **Total Capital Expenditures** | **$1,325** | **$910** | **$960** | - The company plans to make capital expenditures of **$1.3 billion in 2023**, funded by cash from operations (**$550-$600 million**), long-term debt (up to **$400 million**), and proceeds from the EFSA[249](index=249&type=chunk)[254](index=254&type=chunk) - As of March 31, 2023, PGE had total available liquidity of **$679 million**, consisting of **$582 million** under its revolving credit facility, **$85 million** in letters of credit capacity, and **$12 million in cash**[256](index=256&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risks, including commodity price, foreign currency, interest rate, and credit risk, from those disclosed in its 2022 Annual Report on Form 10-K - There have been no material changes to market risks affecting the Company from those set forth in the Annual Report on Form 10-K for the year ended December 31, 2022[270](index=270&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2023. No material changes to internal control over financial reporting occurred during the quarter - The CEO and CFO concluded that as of March 31, 2023, the company's disclosure controls and procedures were effective[271](index=271&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[272](index=272&type=chunk) [PART II — OTHER INFORMATION](index=60&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the financial statements for detailed information regarding ongoing legal proceedings, which include the Portland Harbor Superfund site investigation, governmental investigations related to 2020 energy trading losses, and various litigation concerning the Colstrip generating plant - For information regarding legal proceedings, the report refers to Note 8, Contingencies, in the Notes to Condensed Consolidated Financial Statements[274](index=274&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) The company reports that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes to PGE's risk factors from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022[275](index=275&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's restated articles of incorporation and bylaws, CEO and CFO certifications, and XBRL data files - Lists exhibits filed with the report, including CEO/CFO certifications (31.1, 31.2, 32) and XBRL data files (101 series)[276](index=276&type=chunk)

Financial Data and Key Metrics Changes - The company reported GAAP net income of $233 million or $2.60 per share for the full year of 2022, compared to $244 million or $2.72 per share in 2021, reflecting a slight decrease in earnings [41] - For Q4 2022, GAAP net income was $50 million or $0.56 per share, down from $66 million or $0.73 per share in Q4 2021, impacted by severe weather and market volatility [41][44] - The company expects 2023 earnings to be in the range of $2.60 to $2.75 per share, indicating a stable outlook for the upcoming year [4][47] Business Line Data and Key Metrics Changes - Total load increased by 2% weather adjusted in 2022, with industrial loads growing by 10.6% [44][60] - Residential usage decreased by 1.4% weather adjusted, while commercial usage decreased by 0.5% weather adjusted [44] - The company experienced a $0.40 increase in total revenues compared to 2021, driven by a 3.4% increase in deliveries [45] Market Data and Key Metrics Changes - Natural gas prices peaked at over $55 per MMBtu in December 2022, significantly impacting costs [41] - Average Mid-C power prices rose to $265 per megawatt hour, over five times the levels experienced in 2021 [41] - The company served 39% of retail customer load from specified non-carbon emitting energy sources during the year [63] Company Strategy and Development Direction - The company is focused on a clean energy future, with significant investments in decarbonization projects and infrastructure improvements [4][46] - A general rate case was filed with the Oregon Public Utility Commission, requesting recovery of nearly $859 million for essential capital investments [46] - The company plans to launch additional RFPs for renewable generation and non-emitting capacity in alignment with Oregon's decarbonization goals [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term earnings growth of 5% to 7%, driven by strong load and customer growth [4][48] - The company is navigating challenges from market volatility and severe weather but remains focused on operational efficiencies and cost management [41][44] - Management highlighted the importance of federal funding opportunities to support climate and infrastructure investments [4][78] Other Important Information - The company submitted $480 million in federal grant applications and concept papers to support various projects [4] - The balance sheet remains strong, with total available liquidity at $938 million as of December 31, 2022 [47] - The company anticipates issuing common equity in 2023 under an existing equity forward sale agreement [47] Q&A Session All Questions and Answers Question: Can you elaborate on the 2% load growth considering early 2023 headlines? - Management indicated that the load growth is primarily driven by high-tech and digital customers, with no significant downturn expected in the semiconductor sector [51] Question: What are the underlying assumptions for the long-term growth range provided? - Management clarified that there are no retirements included in the assumptions, and they are planning to exit Colstrip investments [27] Question: What is assumed for the PCAM in '23? - Management stated that they forecast based on the annual update tariff, indicating a flat entry for the year [28] Question: How do you view the impact of energy price volatility on future generation plans? - Management acknowledged that while there may be less volatility on a daily basis due to increased distributed energy resources, longer-term seasonal issues could still arise [75] Question: What are the expectations for the upcoming RFP projects? - Management expressed optimism about the procurement cycles and the potential for ownership opportunities in renewable projects [61][89]