UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 13, 2007
PORTLAND GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
| Oregon | Commission File Number | 93-0256820 | ||
| (State or other jurisdiction of incorporation or organization) |
1-5532-99 | (I.R.S. Employer Identification No.) |
121 SW Salmon Street, Portland, Oregon 97204
(Address of principal executive offices) (zip code)
Registrant’s telephone number, including area code: (503) 464-8000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 7 - Regulation FD
| Item 7.01 | Regulation FD Disclosure. |
On August 13, 2007, representatives of PGE will commence presentations to various members of the financial and investment community, at which the presentation attached hereto as Exhibit 99.1 will be used.
Section 9 - Financial Statements and Exhibits
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit | Description | |
| (99) | Additional exhbits | |
| 99.1 | Portland General Electric Company slide presentation dated August 2007 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PORTLAND GENERAL ELECTRIC COMPANY (Registrant) | ||||||||
| Date: | August 13, 2007 | By: | /s/ J. Jeffrey Dudley | |||||
| J. Jeffrey Dudley Vice President General Counsel and Corporate Compliance Officer | ||||||||
2
  Investor Roadshow Copyright © 2007 Portland General Electric. All Rights Reserved. August 2007 Exhibit 99.1 |
 Information Current as of August 3, 2007 The information in this presentation is current as of August 3, 2007 - the date on which PGE filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 - and should not be relied upon as being current as of any subsequent date. PGE undertakes no duty to update the presentation, except as may be required by law. Forward-looking Statements This presentation contains statements that are forward-looking within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are statements of expectations, beliefs, plans, objectives, assumptions or future events or performance. Words or
phrases such as "anticipates," "believes," "should," "estimates," "expects," "intends," "plans," "predicts," "projects," "will likely result," "will continue," or similar expressions identify forward-looking statements. The forward-looking
statements in this presentation include, but are not limited to, events
related to 2007 earnings guidance, statements concerning estimated capital expenditures in 2007, final review of the deferral of excess power costs for the Boardman Plant outage; final
approval of rates for the new Port Westward power plant; completion and rate
treatment of Phase I of the Biglow Canyon Wind Farm and the Advanced Metering
Infrastructure (AMI) project; the expected completion dates of Phases II and III of the Biglow Canyon Wind Farm; statements concerning the estimated cost savings resulting from deployment of AMI;
statements concerning the recovery of costs through future rate increases; changes in weather, hydroelectric, and energy market conditions, which could affect the availability and cost of fuel or purchased power; and the outcome of various legal and
regulatory proceedings. Although PGE believes that the expectations reflected
in any forward-looking statements are based on reasonable assumptions, PGE
can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from those contemplated include, among others, events related to governmental policies; the outcome of legal and regulatory proceedings; changes in weather, hydroelectric, and energy market
conditions; wholesale energy prices; operational factors affecting PGE's power
generation facilities; growth and demographic patterns in PGE's service territory; general political, economic, and financial market conditions; other factors
that might be described from time to time in PGE's filings with the Securities
and Exchange Commission. Any forward-looking statement speaks only as of
the date on which such statement is made, and, except as required by law, PGE
undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.
Cautionary Statement 2 |
 Presenting Team Jim Piro, Executive Vice President, Finance, Chief Financial Officer and Treasurer Bill Valach, Director of Investor Relations Chris Liddle, Analyst, Investor Relations 3 |
 Investment Highlights • Portland General Electric is a well-capitalized, vertically integrated, regulated electric utility • Earnings and dividend growth driven by load growth and investment in regulated assets – Annual capital expenditures are expected to significantly exceed depreciation • Diversified power supply portfolio includes hydro, coal, wind and natural gas-fired resources • Proactive, open working relationship with regulators • Experienced management team with a strong track record • Strong balance sheet and stable cash flow 4 |
 Company Overview • 793,000 retail customer accounts • Service territory population 1.6 million, 43% of state’s population • 52 cities served – Portland and Salem the largest • Net Utility Plant – $2.31 billion (1) – Generation $536 million – Distribution $987 million – Transmission $145 million – CWIP $412 million – Other $227 million • 4,000-square-mile service area • 26,000 miles of T&D lines • 2,374 MW of generation (2) • Summer peak load of 3,706 MW (2006) • Winter peak load of 4,073 MW (1998) • Annual demand of 2,348 MWa (weather adjusted) • 2,635 employees OR WA (1) Source: 2006 FERC Form 1. (2) Includes Port Westward. Note: All numbers updated for year-ending December 31, 2006. OREGON WASHINGTON Beaver Port Westward Oak Grove Portland Bull Run Columbia River Pelton Round Butte (Madras) Colstrip 3 Colstrip 4 (Montana) Salem North Fork Biglow Canyon 5 Boardman Coyote Springs Faraday River Mill T.W. Sullivan |
 Statement of Direction: 2007-2009 Focus Goals: Reliable, reasonably priced power – Design and maintain a reliable energy resource portfolio, maintaining high plant availability and achieving stable,
predictable and reasonable prices. High customer value – Achieve high customer value by doing a great job of understanding and meeting our customers' needs. Strong financial performance – Achieve a return on equity that is at or above our peers. Engaged, valued workforce – Attract, retain and engage employees to achieve a performance advantage for PGE and provide a fulfilling work experience. Active corporate responsibility – Act in a manner true to our values and uphold our core principles as we work with stakeholders to effectively balance
and prioritize operational and policy decisions. 6 |
 (1)
2006 10-K. Attractive and Growing Customer Base Revenue by Customer Group 15% 39% 46% Residential Industrial Commercial Customers (1) Revenues ($ mm) (1) Energy (000s of MWh) (1) Residential 696,779 $628 7,573 Commercial 95,734 541 7,749 Industrial 259 200 4,110 Total 792,772 $1,369 19,432 Retail Revenue and Load Growth 1.7% annualized customer growth from 1996-2006, with 1.7% customer growth in 2006 7 |
 Growing Oregon Economy • Growth in Oregon’s economy is expected to require further investment by PGE to
meet increased energy demand – Growth in Portland and Salem exceeds rest of state – core operational areas for PGE • Taking advantage of steady state population growth, PGE has achieved annual customer
growth of 1.6% since the end of 2002 Population Growth – US vs. Oregon Customers 1.0% 1.3% 1.0% 1.7% '02-'06 US '02-'06 OR '05-'06 US '05-'06 OR 792,772 779,837 767,066 754,028 743,473 2002 2003 2004 2005 2006 Residential Commerical Industrial Source: Oregon office of Economic Analysis, PGE customer database, US Census
Bureau. 8 |
    Investment Opportunities Regulated Growth • Net short utility • Growing customer base • Capital investments outpace depreciation • Potential capital investment of $550 - $650 million 2 for Biglow Canyon Phases II & III across 2007 - 2010 (1) Excludes AFDC and Advanced Metering Infrastructure. Forecasted expenditures are
preliminary and subject to change. (2) Excludes AFDC. 9 $650 - $670 $310 - $330 $525 - $535 $0 $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 ($ mm) Capital Expenditures Range 1 Depreciation & Amortization $180 - $200 |
 Power Supply Strategy • Manage power supply operations to: – Capitalize on PGE’s assets and position in the marketplace – Meet load in most economic fashion to lower costs to customers – Capture the benefits of PGE’s assets and their positioning in real-time
markets – Manage and monitor risks with appropriate systems and processes to assure strategy is prudently implemented • PGE’s Integrated Resource Plan is a road map to provide reliable affordable electricity for the long term – Latest IRP filed on June 29, 2007 – Public process – Acknowledgement standard from OPUC – IRP includes a combination of energy efficiency, renewable and purchased power 10 |
 Power Supply Portfolio 2007E Generation Capacity % of Total Capacity Physical Capacity Hydro Deschutes River Projects Clackamas/Willamette River Projects (1) Hydro Contracts Natural Gas/Oil Beaver Units 1-8 Coyote Springs Coal Boardman Colstrip 298 MW 212 602 1,112 545 MW 243 1,188 380 MW 296 676 7.8% 5.5 15.7 29.1 9.9% 7.7 17.7 Port Westward 400 14.3% 6.4 10.5 31.1 Wind Klondike II Contract 0.7% 2007E Peak Load (2) 3,823 MW 27 MW Net Purchased Power Short-/Long-term 21.4% 820 MW 100.0% Boardman Coal Plant (1) Includes Bull Run located on the Sandy River. (2) Estimated peak as of January 1, 2007. Note: Totals may not foot due to rounding. 11 |
 Generation Expansion – Port Westward Port Westward • Clatskanie, Oregon • CCGT utilizing Mitsubishi G-class turbine • 400 MW gas-fired plant • 6,826 heat rate (without duct-firing) • $280
million
(through June 30, 2007, including AFDC) • Placed into service June 11, 2007 • EPC contractor: Black & Veatch – Fully wrapped EPC contract • Power island mft.: Mitsubishi Power Systems August 2001 March 2006 June 2007 12 |
 Generation Expansion - Biglow Biglow Canyon Wind Farm • Columbia Gorge, eastern Oregon • 400 – 450 MW total installed capacity • Phase 1: 125 MW – $255 - $265
million (including AFDC) – 76 Vestas turbines – 1.65 MW/turbine – 37% capacity factor – 27 year asset life • Expected online December 2007 • Phases II & III under review – Construction 2008 – 2010 13 |
 Generation Growth Opportunity Load Growth PGE’s retail load is expected to grow consistently while selected long-term power purchase contracts expire, driving need for additional generation capacity Assumptions: – 1.9% annual load growth through 2015 – Expiration of certain contract hydro rights by 2012 – Energy supply based on plant capabilities under normal hydro and operating conditions – Most of our Beaver CCT facility is treated as an intermediate (capacity) resource and is not included as an energy resource Load Resource Balance Annual Average Energy (1)(2) Retail Load & Resource Balance Peak Capacity (1) (1) Data as of June 29, 2007. (2) Includes Energy Trust of Oregon energy efficiency. Does not include 5-year opt
out ESS customers. 14 0 1000 2000 3000 4000 5000 6000 2009 2010 2011 2012 2013 2014 2015 Long-term Contracts Generation (Theoretical Availability, Normal Conditions) 1-in-2 Peak Retail Load + 12% Reserves MW MW 1,540 1,842 818 MWa 0 500 1000 1500 2000 2500 3000 2009 2010 2011 2012 2013 2014 2015 Generation (Theoretical Availability, Beaver used for peaking,) Long-term Contracts 818 MWa Retail Load MWa 1,003 |
 Generation Growth Opportunity Proposed Action Plan (1) Expected and potential resource actions, capacity need based on winter season. (2) Assumes normal hydro. (3) Renewable portfolio standard. Note: Data as of June 29, 2007. 15 Energy Capacity Energy/Capacity Actions (1) MWa (2) % of Target MW (2) 2012 Resource Target 818 - 1,540 Additional cost-effective EE 2008 – 2012 45 5% 59 Plant efficiency upgrades 7 1% 13 Hydro 70 9% 170 Biglow Canyon II & III (300 MW nameplate) 105 13% 45 PPAs of up to 5 year terms 180 22% 180 PPAs of 6 to 10 year terms 192 23% 192 Required added renewables to meet 2015 RPS (3) 218 27% 133 Total of Possible Energy Actions 818 100% 792 Dual-purpose (Capacity and Wind following) SCCTs - - 100 Load control, curtailment tariff, DSG - - 140 Seasonal capacity purchases - - 508 Total of Possible Energy & Capacity Actions - - 1,540 |
 Generation Growth Opportunity Proposed Action Plan - Generation Capacity 16% 21% 6% 32% 17% 8% Purchased Coal 2012E Power Sources (1) Total PGE System Capability 3,423 MW 2012E Peak Load 4,127 MW 18% 29% 31% 22% Purchased Hydro (2) Coal Gas Total PGE System Capability (3) 3,003 MW 2007E Peak Load (4) 3,823 MW 2007E Power Sources (1) Non-hydro Renewables Hydro (2) Gas (1) As a percent of peak load, 2012 data as of June 29, 2007. 2012E assumes PGE
ownership of proposed action plan assets. (2) Includes long-term hydro
contracts. (3) Includes 27 MW of capacity from a long-term wind contract.
(4) Estimated peak as of January 1, 2007. 16 EE, DSG & Load Control |
 Forward Capital Expenditures Driving Rate Base Growth Capital Expenditures • Attractive growth opportunities through capital investment in core utility assets
• Earnings expected to grow 4 to 6 percent per year over the long term • Depreciation and amortization of $180 - $200 million (2007 – 2009) (1) Does not include AFDC. (2) Under review; forecasted expenditures are preliminary and subject to change.
(3) Phase II & III timing subject to turbine availability and project
economics. (4) Includes maintenance and upgrades on transmission,
distribution and existing generation as well as new customer connects. 17 $130 - $135 Advanced Metering Infrastructure 2 - - - - $16 Port Westward $150 - $160 Hydro Relicensing 2 - $550 – $650 Biglow Canyon Wind Farm: Phase II & III 3 $245 - $250 - 2009 $210 - $215 $130 - $140 - 2008 - - $200 - $205 Biglow Canyon Wind Farm: Phase I - Boardman emissions controls 2 Ongoing capital expenditures 4 Projects (in millions)¹ $225 - $230 $240 - $245 $185 - $190 2011 2010 2007 |
 Proactive Regulatory Strategy Oregon Public Utility Commission • Three-member governor-appointed Commission with four-year terms • Rates set based on a forward test year PGE’s Approach to Regulation • Communicate constantly – No surprises – Understand our issues; participate in crafting solutions • Seek agreement on goals or outcomes • Propose paths – Internally consistent alternatives – Alignment of interests always preferable • Keep an eye on total result: must be reasonable, in context Deregulation • Oregon’s approach allows direct access for industrial and commercial customers
beginning March 2002 • PGE essentially economically neutral to customers choosing direct access • Estimate that 10 percent of load from largest customers will be served by energy
service suppliers in 2007 18 |
 Strong Management and Engaged, Valued Workforce • Experienced management team with officers averaging 26 years in the utility industry • Dedicated and knowledgeable employee base of over 2,600 • Scorecard-driven and customer-focused culture • Continued cost-effective and reliable plant operations 19 |
 Recent Financial Results • Invested over $800 million in system since 2002 • Operating statistics positive • Solid customer satisfaction • Volatile hydro conditions • 2005 and 2006 Boardman outage • Lack of power cost adjustment mechanism • Senate Bill 408 reserve Key Drivers of Historical Performance Financial Summary Year End 12/31 Year-to-Date 6/30 2005 2006 2006 2007 Revenue $1,446 $1,520 $732 $838 Net Operating Income 126 121 47 120 Net Income 64 71 21 101 EPS $1.02 $1.14 $0.34 $1.61 20 ($ in millions, except for per share amounts) |
 Regulatory and Financial Highlights since 2006 • General Rate Case for 2007 test year concluded • Boardman deferral granted which allows PGE to apply to recover a portion of the replacement power costs • OPUC supportive of adding wind generation to PGE rate base • Reached a settlement that resolves all issues between PGE and certain California parties relating to wholesale transactions in the Western Power markets in 2000-2001 • PGE credit ratings, balance sheet and access to capital remain strong Current Ratings Sr. Secured Sr. Unsecured Outlook S&P (1) BBB+ BBB Negative Moody's Baa1 Baa2 Stable (1) S&P rates the business risk of PGE at “5” on a scale of 1 to 10 with 1 being the least risky. Most integrated utility
companies are rated from 4 to 6 on this scale. 21 |
 2007 Rate Case Results (1) Includes annualized rate base of Port Westward. Power Cost Adjustment Mechanism – 90/10 sharing mechanism after application of ROE deadband; subject to an earnings test Intra-year Power Cost Adj. 10.1% Allowed ROE Annual Power Cost Update Tariff – annual reset of net variable power costs in January of each year Annual Power Cost Adj. 2007 Test Year UE-180, 181 & 184 50% Capital Structure $2.009 billion including Port Westward¹ Avg. Rate Base 22 |
 Regulatory Update • PGE absorbs all costs/benefits within the ROE band irrespective of power cost
variances • After the earnings test and application of the power cost sharing PGE can earn up
to 9.1% and down to 11.1% return on equity Power cost sharing 100 Bps 10.1% 9.1% 11.1% 100 Bps Customer Refund Customer Surcharge 150 Bps of ROE Baseline NVPC 75 Bps of ROE 90/10 Sharing¹ 90/10 Sharing¹ Power Cost Adjustment Mechanism Annual Power Cost Update Tariff • Annual reset of rates based on forecast of net variable power costs for the coming
year. Following OPUC approval, new prices go into effect on or around
January 1 of the following year Earnings test ($11.7) million² $23.4 million² (1) 90 percent with customers, 10 percent with PGE. (2) Sharing deadband for 2007. Subject to change for future years. 23 Customer Refund Customer Surcharge |
 $1,766 $2,009 (2) $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 2002 2007 ($ mm) Rate Base Growth Opportunities Capital Expenditures Approved Average Rate Base 45% 42% 43% 47% 50% 30% 35% 40% 45% 50% 55% 60% 2003 2004 2005 2006 2007E Debt/Capitalization S&P “BBB”: 50% - 60% (1) $167 $194 $255 $371 $529 0 100 200 300 400 500 600 2003 2004 2005 2006 2007E ($ mm) (1) (1) Forecasted expenditures are preliminary and subject to change. (2) Includes annualized rate base of Port Westward. Note: S&P target credit statistic range based on Business Position 5. 24 |
 Regulatory and Legal Update Boardman Coal Plant deferral • $26.4 million granted • File for amortization in third quarter 2007 • Subject to OPUC prudence review, complete process late 2007 / early 2008 Senate Bill 408 (utility income taxes) • Beginning January 2006, implements an annual rate adjustment if the difference between
income taxes collected in rates and income taxes paid to taxing authorities
exceeds $100,000 • OPUC adopted permanent rules using “fixed” methodology for determining income taxes in rates • Recent legislative session did not address “double whammy” impact Trojan Nuclear Plant: Recovery of return on investment • OPUC proceedings – Rate reset phase in abeyance • Class action proceedings – Ordered abated pending OPUC action Bonneville Power Administration: Residential Exchange Credit • May 21, 2007 residential exchange credit suspended • June 1, 2007 residential and small farm customer rates increased reflecting suspension of credit • Working with stakeholders to restore benefits for customers 25 |
 Drivers of Future Performance • Strong economic and load growth in service territory • Continued operational excellence and customer focus drive core utility performance • Investments in prudent rate base assets drive earnings and dividend growth • Work closely with regulators and customer groups to achieve fair regulatory outcomes • New mechanisms for sharing power cost volatility with customers enhance stability of PGE earnings 26 |
 Dividends Dividends • Current annualized dividend of 94 cents per share, increased on May 2, 2007, from 90 cents per share • Current quarter’s dividend of 23.5 cents per share payable on October 15, 2007, to shareholders of record as of September 25, 2007 • Over the long term, we expect a target dividend payout ratio in the
60 percent range 27 |
 Strategy for Success Portland General Electric is a well-capitalized, stable company with on-going growth opportunities Stability • Vertically integrated, regulated business • Strong balance sheet/ credit ratings • Experienced management team • Supportive regulatory environment Growth • Strong load and customer growth • Necessary and prudent regulated rate base investment opportunities • Earnings and dividend growth 28 |
 Investor Relations Contact Information William J. Valach Director, Investor Relations 503.464.7395 William.Valach@pgn.com Portland General Electric Company 121 SW Salmon Street Suite 1WTC 0403 Portland, OR 97204 www.PortlandGeneral.com 29 |