Portland General Electric(POR) - 2023 Q3 - Quarterly Report

Load Demand and Capacity - PGE's peak load demand reached 4,498 MW in August 2023, surpassing the previous summer peak by nearly 6%[165] - The Green Future Impact Program has an approved capacity of 750 Megawatts (MW) nameplate as of September 30, 2023[163] - PGE estimates a total resource need of approximately 3,500 to 4,500 MW of renewable energy and non-emitting capacity to meet its 2030 emissions reduction target, with a remaining need of approximately 2,700 to 3,700 MW after procuring 311 MW of wind resources and 475 MW of capacity[167] Emission Reduction and Clean Energy Goals - PGE aims to reduce greenhouse gas (GHG) emissions by at least 80% by 2030 and achieve 100% clean electricity by 2040, in line with Oregon's House Bill 2021[160][161] - The company is committed to being net-zero in annual carbon emissions by 2040, a decade ahead of the Paris Agreement's goal[164] - PGE's Clean Energy Plan (CEP) was filed with the OPUC on March 31, 2023, outlining strategies to meet emission reduction targets over the next 20 years[166] Financial Performance - Total revenues for the nine months ended September 30, 2023, increased by 12% to $2,198 million compared to $1,960 million in 2022[240] - Net income for the nine months ended September 30, 2023, was $160 million, a decrease of $22 million or 12% compared to $182 million in 2022[242] - Retail revenues increased by 12% to $1,830 million for the nine months ended September 30, 2023, driven by higher prices and a 3% increase in total retail deliveries[243] Capital Expenditures and Investments - PGE has entered into agreements to acquire a 311 MW wind energy facility with an initial expected investment of approximately $415 million, and a 200 MW Battery Energy Storage System (BESS) with an investment of approximately $360 million[173] - PGE plans to make capital expenditures of $1.5 billion in 2023, funded through cash generated from operations, debt securities, and share issuances[269] - PGE completed approximately $26 million in capital projects related to wildfire mitigation and resiliency in the current year[178] Regulatory and Rate Cases - PGE filed a General Rate Case (GRC) on February 15, 2023, requesting an annual revenue requirement increase of $340 million for 2024[198] - The adjusted annual revenue requirement increase is $391 million, which includes $183 million related to Net Variable Power Cost (NVPC)[203] - The OPUC is expected to issue a final order on the 2024 GRC later this year, with new customer prices effective January 1, 2024[208] Customer and Market Dynamics - The average number of retail customers increased to 928,638 for the nine months ended September 30, 2023, compared to 923,376 for the same period in 2022[226] - PGE's total retail energy deliveries for the nine months ended September 30, 2023, increased by 3% compared to the same period in 2022, driven by growth in demand from the industrial customer class[226] - Wholesale energy deliveries increased by 30% to 2,446 MWhs in the three months ended September 30, 2023, compared to 1,875 MWhs in the same period in 2022[226] Risks and Challenges - PGE's operations are influenced by various risks, including regulatory changes, economic conditions, and extreme weather events[150][151] - The company is exposed to various forms of market risk, including fluctuations in commodity prices, foreign currency exchange rates, and interest rates[291] - There have been no material changes to market risks or credit risk affecting the Company since the last Annual Report[291] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period for September 30, 2023, were $47 million, compared to $18 million at the end of September 30, 2022[265] - Operating activities generated $331 million in cash for the nine months ended September 30, 2023, down from $574 million in the same period of 2022[265] - PGE's common equity ratio was 46.5% as of September 30, 2023, compared to 43.3% at the end of 2022, reflecting the company's financial objectives to maintain a ratio of approximately 50%[285]