Portland General Electric(US:POR)2023-02-16 22:15Financial 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]