SEC Filing | Portland General Electric Company

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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): February 14, 2020




PORTLAND GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)


Oregon	001-5532-99	93-0256820
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

121 SW Salmon Street, Portland, Oregon 97204

(Address of principal executive offices, including 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))

Securities registered pursuant to Section 12(b) of the Act:



(Title of class)	(Trading Symbol)	(Name of exchange on which registered)
Common Stock, no par value	POR	New York Stock Exchange
9.31% Medium-Term Notes due 2021	POR 21	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Item 2.02 Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02.

On February 14, 2020, Portland General Electric Company (the Company) issued a press release announcing its financial results for the quarter and year ended December 31, 2019. The press release is furnished herewith as Exhibit 99.1 to this Report.

Item 7.01 Regulation FD Disclosure.

The following information is furnished pursuant to Item 7.01.

At 11:00 a.m. ET on Friday, February 14, 2020, the Company will hold its annual earnings call and webcast, and will use a slide presentation in conjunction with the earnings call. A copy of the slide presentation is furnished herewith as Exhibit 99.2 to this Report.


Item 9.01	Financial Statements and Exhibits.



(d)		Exhibits.
99.1		Press Release Issued by Portland General Electric Company dated February 14, 2020.
99.2		Portland General Electric Company Fourth Quarter 2019 Slides dated February 14, 2020.
104		Cover page information from Portland General Electric Company’s Current Report on Form 8-K filed February 14, 2020, formatted in iXBRL (Inline Extensible Business Reporting Language).

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 thereunto duly authorized.



			PORTLAND GENERAL ELECTRIC COMPANY
			(Registrant)

Date:	February 14, 2020	By:	/s/ James F. Lobdell
			James F. Lobdell
			Senior Vice President of Finance, Chief Financial Officer and Treasurer

Exhibit

Exhibit 99.1



		Portland General Electric One World Trade Center 121 S.W. Salmon Street Portland, OR 97204 News Release

FOR IMMEDIATE RELEASE
Feb. 14, 2020

Media Contact:		Investor Contact:
Andrea Platt		Chris Liddle
Corporate Communications		Investor Relations
Phone: 503-464-7980		Phone: 503-464-7458

Portland General Electric announces 2019 financial results and initiates 2020 earnings guidance


•	Full-year 2019 financial results of $2.39 per diluted share within guidance range


•	Initiating 2020 earnings guidance of $2.50 to $2.65 per diluted share


•	Providing long-term earnings per diluted share growth guidance of 4%-6% on average

PORTLAND, Oregon -- Portland General Electric Company (NYSE: POR) today reported net income of $214 million, or $2.39 per diluted share, for the year ended Dec. 31, 2019. This compares with net income of $212 million, or $2.37 per diluted share, for the year ended Dec. 31, 2018. Net income was $61 million, or $0.68 per diluted share, for the fourth quarter of 2019. This compares with $49 million, or $0.55 per diluted share, for the comparable period of 2018.

“I am pleased with our financial results and the progress that we continue to make on our strategic objectives to decarbonize our power supply, electrify other sectors of the economy and operate efficiently,” said Maria Pope, PGE president and CEO. “In 2020 we are focused on investments that enhance reliability and resiliency.”

2019 earnings compared to 2018 earnings

The increase in full-year 2019 earnings was driven by an increase in revenues from higher retail prices and increased loads from industrial customers when compared to 2018. Largely offsetting the increase in revenues were higher distribution expenses due to higher vegetation management and wildfire mitigation efforts, a gain from the cash settlement of the Carty litigation in 2018 that did not recur in 2019, higher labor and benefit expenses, higher depreciation and amortization expense resulting from capital additions, and an increase in income tax expense attributable largely to fewer production tax credits.

Company Updates

Integrated Resource Plan (IRP)

In January 2020, PGE filed its final public comments with the Public Utility Commission of Oregon (OPUC) in its 2019 IRP. PGE responded to comments from stakeholders on a wide range of topics and proposed modifications to the Action Plan including delaying the acquisition of renewable resources from 2023 to 2024 to align with PGE’s capacity need and the extended production tax credit availability afforded by House Resolution 1865. PGE also proposed a modification to its capacity action to allow for concurrent consideration of existing resources through bilateral negotiations and new non-emitting capacity resources through a request for proposal.

Page 1

Capital Projects

Wheatridge Renewable Energy Facility

Construction is on schedule for the 300 megawatt wind generation component of the overall facility that is located in Morrow County, Oregon. PGE will own 100 megawatts of the wind generation component and purchase the balance of the wind output under a 30-year power purchase agreement. The facility will also include 50 megawatts of solar generation and 30 megawatts of battery storage. The wind component of the facility is expected to be in service during the fourth quarter of 2020, and the solar generation and battery storage in 2021. The facility will be incorporated into customer prices through PGE’s Renewable Adjustment Clause. As of Dec. 31, 2019 the estimated cost of the project totals approximately $150 million, excluding allowance for funds used during construction (AFDC). Construction crews mobilized to the site in January and work has begun on initial site preparation.

Integrated Operations Center (IOC)

Construction is on schedule for the IOC, which will centralize key operations in a facility designed for enhanced resilience against seismic, cyber and physical security risks. The facility is being designed for negligible structural damage under a maximum considered earthquake event using seismic (base) isolation. It is expected to be in service during the fourth quarter of 2021 at an estimated cost of approximately $200 million, excluding AFDC. Site preparation began in the third quarter of 2019. Construction permits have been granted and construction of the new facility is in progress.

2020 earnings guidance

PGE is initiating full-year 2020 earnings guidance of $2.50 to $2.65 per diluted share based on the following assumptions:


•	An increase in retail deliveries between 0.5 and 1.5%, weather adjusted;


•	Average hydro conditions for the year;


•	Wind generation based on five years of historical levels or forecast studies when historical data is not available;


•	Normal thermal plant operations;


•	Operating and maintenance costs between $590 million and $610 million; and


•	Depreciation and amortization expense between $415 million and $435 million.

Fourth Quarter 2019 earnings call and webcast — Feb. 14, 2020

PGE will host a conference call with financial analysts and investors on Friday, Feb. 14, 2020, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Friday, Feb. 14, 2020, through 1 p.m. ET on Friday, Feb. 21, 2020.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of Finance, CFO, and treasurer; and Chris Liddle, director, Investor Relations and Treasury, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited consolidated statements of income, consolidated balance sheets, and consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

# # #

Page 2

About Portland General Electric Company

Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon, serving 895,000 customers in 51 cities. For 130 years, PGE has delivered safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. With approximately 3,000 employees across the state, PGE is committed to helping its customers and the communities it serves build a clean energy future. For more information, visit PortlandGeneral.com/CleanVision.

Safe Harbor Statement

Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in 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 facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or liability for third party property damage; and cyber security breaches of the company’s customer information system or operating systems, which may affect customer bills or other aspects of our operations. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise. Prospective investors should also review the risks, assumptions and uncertainties listed in the company’s most recent annual report on form 10-K and in other documents that we file with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time.

POR

Source: Portland General Company

Page 3

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions, except per share amounts)

(Unaudited)



	Years Ended December 31,
	2019		2018			2017
Revenues:
Revenues, net	$	2,121	$	1,988		$	2,009
Alternative revenue programs, net of amortization	2		3			—
Total Revenues	2,123		1,991			2,009
Operating expenses:
Purchased power and fuel	614		571			592
Generation, transmission and distribution	323		292			309
Administrative and other	290		271			260
Depreciation and amortization	409		382			345
Taxes other than income taxes	134		129			123
Total operating expenses	1,770		1,645			1,629
Income from operations	353		346			380
Interest expense, net	128		124			120
Other income:
Allowance for equity funds used during construction	10		11			12
Miscellaneous income (expense), net	6		(4		)	1
Other income, net	16		7			13
Income before income taxes	241		229			273
Income tax expense	27		17			86
Net income	$	214	$	212		$	187

Weighted-average shares outstanding (in thousands):
Basic	89,353		89,215			89,056
Diluted	89,559		89,347			89,176

Earnings per share:
Basic	$	2.39	$	2.38		$	2.10
Diluted	$	2.39	$	2.37		$	2.10

Page 4

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)



	As of December 31,
	2019			2018
ASSETS
Current assets:
Cash and cash equivalents	$	30		$	119
Accounts receivable, net	167			193
Unbilled revenues	86			96
Inventories, at average cost:
Materials and supplies	56			53
Fuel	40			31
Regulatory assets—current	17			61
Other current assets	104			90
Total current assets	500			643
Electric utility plant:
In service	10,928			10,344
Accumulated depreciation and amortization	(4,095		)	(3,803		)
In service, net	6,833			6,541
Construction work-in-progress	328			346
Electric utility plant, net	7,161			6,887
Regulatory assets—noncurrent	483			401
Nuclear decommissioning trust	46			42
Non-qualified benefit plan trust	38			36
Other noncurrent assets	166			101
Total assets	$	8,394		$	8,110

Page 5

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share amounts)

(Unaudited)



	As of December 31,
	2019			2018
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	165		$	168
Liabilities from price risk management activities—current	23			55
Current portion of long-term debt	—			300
Current portion of finance lease obligations	16			—
Accrued expenses and other current liabilities	315			268
Total current liabilities	519			791
Long-term debt, net of current portion	2,597			2,178
Regulatory liabilities—noncurrent	1,377			1,355
Deferred income taxes	378			369
Unfunded status of pension and postretirement plans	247			307
Liabilities from price risk management activities—noncurrent	108			101
Asset retirement obligations	263			197
Non-qualified benefit plan liabilities	103			103
Finance lease obligations, net of current portion	135			—
Other noncurrent liabilities	76			203
Total liabilities	5,803			5,604
Commitments and contingencies (see notes)
Shareholders’ equity:
Preferred stock, no par value, 30,000,000 shares authorized; none issued and outstanding	—			—
Common stock, no par value, 160,000,000 shares authorized; 89,387,124 and 89,267,959 shares issued and outstanding as of December 31, 2019 and 2018, respectively	1,220			1,212
Accumulated other comprehensive loss	(10		)	(7		)
Retained earnings	1,381			1,301
Total shareholders’ equity	2,591			2,506
Total liabilities and shareholders’ equity	$	8,394		$	8,110

Page 6

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



	Years Ended December 31,
	2019			2018			2017
Cash flows from operating activities:
Net income	$	214		$	212		$	187
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	409			382			345
Deferred income taxes	6			(17		)	70
Allowance for equity funds used during construction	(10		)	(11		)	(12		)
Pension and other postretirement benefits	21			30			24
Decoupling mechanism deferrals, net of amortization	(2		)	(2		)	(22		)
(Amortization) Deferral of net benefits due to Tax Reform	(23		)	45			—
Stock-based compensation	9			5			7
Other non-cash income and expenses, net	34			16			24
Changes in working capital:
Decrease (increase) in receivables and unbilled revenues	30			(29		)	(3		)
(Increase) in margin deposits	—			(5		)	(3		)
(Decrease) increase in payables and accrued liabilities	(16		)	51			5
Other working capital items, net	(12		)	(11		)	1
Contribution to non-qualified employee benefit trust	(11		)	(11		)	(8		)
Contribution to pension and other postretirement plans	(65		)	(12		)	(5		)
Other, net	(38		)	(13		)	(13		)
Net cash provided by operating activities	546			630			597
Cash flows from investing activities:
Capital expenditures	(606		)	(595		)	(514		)
Purchases of nuclear decommissioning trust securities	(8		)	(12		)	(18		)
Sales of nuclear decommissioning trust securities	13			15			21
Proceeds from Carty Settlement	—			120			—
Other, net	(3		)	1			(3		)
Net cash used in investing activities	(604		)	(471		)	(514		)

Page 7

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS, continued

(In millions)

(Unaudited)



	Years Ended December 31,
	2019			2018			2017
Cash flows from financing activities:
Proceeds from issuance of long-term debt	$	470		$	75		$	225
Payments on long-term debt	(350		)	(24		)	(150		)
Debt extinguishment costs	(9		)	—			—
Dividends paid	(134		)	(125		)	(118		)
Other	(8		)	(5		)	(7		)
Net cash used in financing activities	(31		)	(79		)	(50		)
(Decrease) increase in cash and cash equivalents	(89		)	80			33
Cash and cash equivalents, beginning of year	119			39			6
Cash and cash equivalents, end of year	$	30		$	119		$	39

Supplemental disclosures of cash flow information:
Cash paid for:
Interest, net of amounts capitalized	$	116		$	117		$	110
Income taxes	33			25			18
Non-cash investing and financing activities:
Accrued capital additions	76			61			53
Accrued dividends payable	36			34			31
Assets obtained under leasing arrangements	210			24			87

Page 8

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS

(Unaudited)



	Years Ended December 31,
	2019				2018					2017
Revenues (dollars in millions):
Retail:
Residential	$	981	46	%	$	948		48	%	$	969	48	%
Commercial	636		30		647			32		652		32
Industrial	196		9		185			9		192		10
Direct Access	44		2		43			2		37		2
Subtotal	1,857		87		1,823			91		1,850		92
Alternative revenue programs, net of amortization	2		—		3			—		—		—
Other accrued (deferred) revenues, net	22		2		(45		)	(2	)	10		1
Total retail revenues	1,881		89		1,781			89		1,860		93
Wholesale revenues	170		8		159			8		105		5
Other operating revenues	72		3		51			3		44		2
Total revenues	$	2,123	100	%	$	1,991		100	%	$	2,009	100	%

Energy deliveries (MWh in thousands):
Retail:
Residential	7,471		31	%	7,416			31	%	7,880		34	%
Commercial	6,653		28		6,783			29		6,932		30
Industrial	3,181		13		2,987			13		2,943		13
Subtotal	17,305		72		17,186			73		17,755		77
Direct access:
Commercial	665		3		$	647		3		623		3
Industrial	1,490		6		$	1,389		6		1,340		6
Subtotal	2,155		9		2,036			9		1,963		9
Total retail energy deliveries	19,460		81		19,222			82		19,718		86
Wholesale energy deliveries	4,669		19		4,290			18		3,193		14
Total energy deliveries	24,129		100	%	23,512			100	%	22,911		100	%

Average number of retail customers:
Residential	779,673		88	%	772,389			88	%	762,211		88	%
Commercial	109,521		12		108,570			12		107,364		12
Industrial	193		—		203			—		199		—
Direct access	632		—		604			—		559		—
Total	890,019		100	%	881,766			100	%	870,333		100	%

Page 9

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS, continued

(Unaudited)



	Heating Degree-Days					Cooling Degree-Days
	2019		2018		15-Year Average	2019		2018		15-Year Average
1st quarter	1,992		1,766		1,830	—		—		—
2nd quarter	467		471		653	102		116		88
3rd quarter	83		69		75	462		575		440
4th quarter	1,623		1,396		1,582	—		1		3
Total	4,165		3,702		4,140	564		692		531
Increase (decrease) from the 15-year average	1	%	(11	)%		6	%	30	%

Note: “Average” amounts represent the 15-year rolling averages provided by the National Weather Service (Portland Airport).



	Years Ended December 31,
	2019				2018				2017
Sources of energy (MWh in thousands):
Generation:
Thermal:
Natural gas	8,342		36	%	7,515		33	%	6,228		28	%
Coal	4,416		19	%	3,106		14		3,344		15
Total thermal	12,758		55		10,621		47		9,572		43
Hydro	1,407		6		1,474		7		1,774		8
Wind	1,706		8		1,875		8		1,641		8
Total generation	15,871		69		13,970		62		12,987		59
Purchased power:
Term	5,882		25		6,714		30		7,192		33
Hydro	1,048		5		1,603		7		1,648		7
Wind	284		1		286		1		264		1
Total purchased power	7,214		31		8,603		38		9,104		41
Total system load	23,085		100	%	22,573		100	%	22,091		100	%
Less: wholesale sales	(4,669	)			(4,290	)			(3,193	)
Retail load requirement	18,416				18,283				18,898

Page 10

a2019q4ex9922019ecslides

Exhibit 99.2 Portland General Electric Earnings Conference call Fourth quarter and full-year 2019

Cautionary statement Information current as of February 14, 2020 Except as expressly noted, the information in this presentation is current as of February 14, 2020 — the date on which PGE filed its Annual Report on Form 10-K for the year ended December 31, 2019 — and should not be relied upon as being current as of any subsequent date. PGE undertakes no duty to update this presentation, except as may be required by law. Forward-looking statements Statements in this presentation that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding earnings guidance; statements regarding future load, hydro conditions and operating and maintenance costs; statements concerning implementation of the company’s integrated resource plan; statements concerning future compliance with regulations limiting emissions from generation facilities and the costs to achieve such compliance; as well as other statements containing words such as “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon,” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including reductions in 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 facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the company’s inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy markets conditions, which could affect the availability and cost of purchased power and fuel; changes in capital market conditions, which could affect the availability and cost of capital and result in delay or cancellation of capital projects; the outcome of various legal and regulatory proceedings; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or liability for third party property damage; and cyber security breaches of the company’s customer information system or operating systems, which may affect customer bills or other aspects of our operations. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this presentation are based on information available to the company on the date hereof and such statements speak only as of the date hereof. The company expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this presentation, whether as a result of new information, future events, changes in assumptions or otherwise. Prospective investors should also review the risks, assumptions and uncertainties listed in the company’s most recent annual report on form 10-K and in other documents that we file with the United States Securities and Exchange Commission, including management’s discussion and analysis of financial condition and results of operations and the risks described therein from time to time. 2

Leadership Maria Pope presenting today President and CEO On today's call • Financial performance • Accomplishments • Economic and legislative update • 2019 Integrated Resource Plan • Earnings guidance Jim Lobdell • Financial update Senior VP of Finance, CFO & Treasurer 3

2019 earnings results Q4 2019 Q4 2018 FY 2019 FY 2018 Net income (in $ millions) $61 $49 $214 $212 Diluted earnings per share (EPS) $0.68 $0.55 $2.39 $2.37 $0.82 $0.68 $0.72 $0.61 $0.59(1) $0.51 $0.55 $0.28 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 Diluted EPS: 2018 Diluted EPS: $2.39 $2.37 4 (1) Includes $0.10 related to the Carty Generating Station cash settlement

2019 accomplishments Delivered exceptional Advanced our Continued to customer service and integrated grid decarbonize our power products initiatives supply Launched our Peak Time Furthered engineering and Executed contract for the Rebate Program with over construction on our Field Wheatridge Renewable 75,000 customers enrolled Area Network Energy facility Introduced Green Future Broke ground on our Received Q1 2020 approval Impact Program signing 17 Integrated Operations Center of transportation participants and 165 MW of electrification plan demand Advanced energy storage projects throughout our Launched smart grid testbed system in three cities 5

Economic and legislative update Economic • High tech manufacturing and digital services continue to contribute to revenue growth • Unemployment rate of 3.2%, below the national average of 3.5%(1) • Oregon ranked 10th in the rate of net in–migration for 2019(2) Legislative • Cap and trade: SB 1530 • Transportation electrification: HB 4066 (1) PGE-3 County Average, December 2019, Source: State of Oregon Employment Department 56 (2) State of Oregon Employment Department

2019 Integrated Resource Plan Regulatory timeline July 2019 Q3-Q4 2019 Q1 2020 IRP filed Comments filed by Staff/ Staff memorandum and Stakeholders/PGE final order expected Action Plan: • Renewable resource actions ◦ Renewable resources of up to 150 MWa estimated online in 2024 • Capacity resource actions ◦ Evaluating mid-term capacity procurements through bilateral solicitation ◦ Seeking new non-emitting dispatchable capacity • Regulatory process for RFP design and independent evaluator selection with RFP(s) to follow 7

2019 earnings bridge $0.03 $0.23 $(0.09) $(0.04) $(0.02) $2.39 $2.10$2.37 $(0.07) $(0.02) 8 er s ty ts er 9 1 h e r i h 1 20 l, t s a d r d t 20 e a en C n e re O fu e p a th c , W x n o x s d e io d a e an g t n t u r in ia a n en e g t c n io v w n ra re o ct e o li e p ti u R p p p e za d d u O D ti ro e co r P as e o h d am rc u p Note: Values shown represent diluted earnings per share 8 (1) Revenues include retail revenues, wholesale revenues and other operating revenues

2020 earnings guidance 2020 EPS • Increase in retail deliveries of approximately 0.5% - Guidance: 1.5%, weather-adjusted • Average hydro conditions for the year $2.50 • Wind generation for the year based on five years of - historic levels or forecast studies when historical data $2.65 is not available • Normal thermal plant operations Long-Term • Operating and maintenance costs between EPS $590 million and $610 million Guidance: • Depreciation and amortization expense between $415 million and $435 million 4% - 6% 9

Liquidity and financing Total Liquidity 2019 Ratings S&P Moody's (as of 12/31/19) (in $ millions) Credit Facilities $ 500 Senior Secured A A1 Letters of Credit 165 Senior Unsecured BBB+ A3 Cash 30 Commercial Paper A-2 Prime-2 Available $ 695 Outlook Positive Stable Financings Q1 2020 Q2 2020 Q3 2020 Q4 2020 First Mortgage Issuing up to Issuing up to Issuing up to Bonds $120 million $100 million $180 million 10

Appendix 11

Capital planning $890 800 700 600 $595 $500 $500 $500 500 400 300 200 100 0 2020 2021 2022 2023 2024 Ongoing capital expenditures Wheatridge Renewable Energy Facility Integrated Operations Center Investments include: • Updating, replacing aging generation, transmission and distribution equipment • Building a smarter, more resilient grid • Investments to construct the Integrated Operations Center • Adding 100 MW of wind generation at Wheatridge Renewable Energy Facility 12 Note: Capital expenditures for 2020 through 2024 exclude allowance for funds used under construction. Dollar values in millions.