PORTLAND, Ore., July 31, 2020 /PRNewswire/ -- Portland General
Electric Company (NYSE: POR) today reported net income of
$39 million, or 43 cents per diluted share, for the second
quarter of 2020. This compares with net income of $25 million, or 28
cents per diluted share, for the second quarter of 2019.
"We achieved solid second quarter financial results, driven by a
combination of favorable hydro and wind conditions and lower
operating expenses," said Maria
Pope, PGE president and CEO. "As an essential service
provider, we will continue working to keep costs low to support
economic recovery and the communities we serve in this
unprecedented time."
Second quarter 2020 earnings compared to second quarter 2019
earnings
Total revenues increased as a result of higher residential,
industrial and wholesale demand, which was partially offset by
lower commercial demand. Power costs increased due to higher
overall system deliveries, which more than offset a decline in the
average cost per MWh due to lower gas prices and surplus hydro in
the region. Operating expense declined due to continuous efforts to
reduce the company's overall cost structure as well as lower plant
maintenance expense. Tax expense was favorable due to higher
Production Tax Credit generation at PGE's wind facilities.
Company Update
Major Capital Projects
PGE's Integrated Operations Center and the Wheatridge Renewable
Energy Facility remain on schedule and on budget. There have been
no significant supply chain or operational disruptions as a result
of COVID-19.
Integrated Resource Plan (IRP)
The Public Utility Commission of Oregon acknowledged the Action Plan in PGE's
2019 IRP in a written Order on May 6,
2020. PGE plans to begin procurement activities for
renewables and capacity later this year and will consider the
potential impacts of economic conditions on resource needs.
2020 Earnings Guidance
PGE is reaffirming its 2020 earnings guidance of $2.20 to $2.50 per
diluted share. This guidance is based on the following
assumptions:
- Revised annual retail deliveries from a decrease of 1% to 2%,
weather adjusted, to flat energy deliveries, weather adjusted, year
over year. This upward revision reflects stronger residential and
industrial demand offset by a decline in commercial
deliveries;
- Net variable power costs for the year ending December 31, 2020 to be below the power cost
adjustment mechanism baseline, but within the established deadband
range;
- 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 expense between $570 million and $590
million, which includes a full-year forecasted bad debt
expense of $15 million due to
moratoriums on collection activities and customer disconnects;
and
- Depreciation and amortization expense between $410 million and $430
million.
Second Quarter 2020 earnings call and webcast — July 31, 2020
PGE will host a conference call with financial analysts and
investors on Friday, July 31, 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, July 31, 2020, through 1 p.m. ET on
Friday, August 7, 2020.
Maria Pope, president and CEO;
Jim Lobdell, senior vice president
of Finance, CFO, and treasurer; and Jardon
Jaramillo, senior director, Investor Relations, Treasury,
and Finance Operations, will participate in the call. Management
will respond to questions following formal comments.
The attached unaudited condensed consolidated statements of
income and comprehensive income, condensed consolidated balance
sheets and condensed consolidated statements of cash flows, as well
as the supplemental operating statistics, are an integral part of
this earnings release.
About Portland General Electric Company
Portland General Electric (NYSE: POR) is a fully integrated
energy company based in Portland,
Oregon, with operations across the state. The company serves
901,000 customers with a service area population of 1.9 million
Oregonians in 51 cities. PGE has 16 generation plants in five
Oregon counties, and maintains and
operates 13 public parks and recreation areas. For over 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. PGE and its 3,000
employees are working with customers to build a clean energy
future. In 2019, PGE, employees, retirees and the PGE Foundation
donated $4.7 million and volunteered
32,900 hours with more than 700 nonprofits across
Oregon. For more information visit
portlandgeneral.com/news.
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; and
widespread health emergencies or outbreaks of infectious diseases
such as the novel coronavirus disease (COVID-19), which may affect
our financial position, results of operations and cash flows. 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
PORTLAND GENERAL
ELECTRIC COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
AND COMPREHENSIVE
INCOME
|
(Dollars in millions,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
Revenues,
net
|
$
|
469
|
|
|
$
|
462
|
|
|
$
|
1,033
|
|
|
$
|
1,032
|
|
Alternative revenue
programs, net of amortization
|
—
|
|
|
(2)
|
|
|
9
|
|
|
1
|
|
Total
revenues
|
469
|
|
|
460
|
|
|
1,042
|
|
|
1,033
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Purchased power and
fuel
|
109
|
|
|
105
|
|
|
262
|
|
|
284
|
|
Generation,
transmission and distribution
|
77
|
|
|
86
|
|
|
150
|
|
|
163
|
|
Administrative and
other
|
74
|
|
|
78
|
|
|
145
|
|
|
149
|
|
Depreciation and
amortization
|
104
|
|
|
101
|
|
|
212
|
|
|
202
|
|
Taxes other than
income taxes
|
34
|
|
|
33
|
|
|
69
|
|
|
67
|
|
Total operating
expenses
|
398
|
|
|
403
|
|
|
838
|
|
|
865
|
|
Income from
operations
|
71
|
|
|
57
|
|
|
204
|
|
|
168
|
|
Interest expense,
net
|
34
|
|
|
31
|
|
|
67
|
|
|
63
|
|
Other
income:
|
|
|
|
|
|
|
|
Allowance for equity
funds used during construction
|
4
|
|
|
2
|
|
|
7
|
|
|
5
|
|
Miscellaneous income
(loss), net
|
3
|
|
|
—
|
|
|
(1)
|
|
|
2
|
|
Other income,
net
|
7
|
|
|
2
|
|
|
6
|
|
|
7
|
|
Income before
income tax expense
|
44
|
|
|
28
|
|
|
143
|
|
|
112
|
|
Income tax
expense
|
5
|
|
|
3
|
|
|
23
|
|
|
14
|
|
Net
income
|
39
|
|
|
25
|
|
|
120
|
|
|
98
|
|
Other comprehensive
income
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Comprehensive
income
|
$
|
39
|
|
|
$
|
26
|
|
|
$
|
121
|
|
|
$
|
100
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
89,489
|
|
|
89,357
|
|
|
89,459
|
|
|
89,333
|
|
Diluted
|
89,625
|
|
|
89,561
|
|
|
89,602
|
|
|
89,537
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.44
|
|
|
$
|
0.28
|
|
|
$
|
1.34
|
|
|
$
|
1.10
|
|
Diluted
|
$
|
0.43
|
|
|
$
|
0.28
|
|
|
$
|
1.34
|
|
|
$
|
1.09
|
|
PORTLAND GENERAL
ELECTRIC COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
millions)
|
(Unaudited)
|
|
|
June 30,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
303
|
|
|
$
|
30
|
|
Accounts receivable,
net
|
204
|
|
|
253
|
|
Inventories
|
109
|
|
|
96
|
|
Regulatory
assets—current
|
12
|
|
|
17
|
|
Other current
assets
|
108
|
|
|
104
|
|
Total current
assets
|
736
|
|
|
500
|
|
Electric utility
plant, net
|
7,301
|
|
|
7,161
|
|
Regulatory
assets—noncurrent
|
526
|
|
|
483
|
|
Nuclear
decommissioning trust
|
47
|
|
|
46
|
|
Non-qualified benefit
plan trust
|
37
|
|
|
38
|
|
Other noncurrent
assets
|
158
|
|
|
166
|
|
Total
assets
|
$
|
8,805
|
|
|
$
|
8,394
|
|
PORTLAND GENERAL
ELECTRIC COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS, continued
|
(Dollars in
millions)
|
(Unaudited)
|
|
|
June 30,
2020
|
|
December 31,
2019
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
134
|
|
|
$
|
165
|
|
Liabilities from price
risk management activities—current
|
40
|
|
|
23
|
|
Short-term
debt
|
150
|
|
|
—
|
|
Current portion of
long-term debt
|
140
|
|
|
—
|
|
Current portion of
finance lease obligation
|
16
|
|
|
16
|
|
Accrued expenses and
other current liabilities
|
289
|
|
|
315
|
|
Total current
liabilities
|
769
|
|
|
519
|
|
Long-term debt, net
of current portion
|
2,676
|
|
|
2,597
|
|
Regulatory
liabilities—noncurrent
|
1,362
|
|
|
1,377
|
|
Deferred income
taxes
|
385
|
|
|
378
|
|
Unfunded status of
pension and postretirement plans
|
249
|
|
|
247
|
|
Liabilities from
price risk management activities—noncurrent
|
145
|
|
|
108
|
|
Asset retirement
obligations
|
265
|
|
|
263
|
|
Non-qualified benefit
plan liabilities
|
101
|
|
|
103
|
|
Finance lease
obligations, net of current portion
|
132
|
|
|
135
|
|
Other noncurrent
liabilities
|
75
|
|
|
76
|
|
Total
liabilities
|
6,159
|
|
|
5,803
|
|
Shareholders'
Equity:
|
|
|
|
Preferred stock, no
par value, 30,000,000 shares authorized; none issued
and outstanding as of June 30, 2020 and December 31,
2019
|
—
|
|
|
—
|
|
Common stock, no par
value, 160,000,000 shares authorized; 89,506,951
and 89,387,124 shares issued and outstanding as of June 30, 2020
and
December 31, 2019, respectively
|
1,224
|
|
|
1,220
|
|
Accumulated other
comprehensive loss
|
(9)
|
|
|
(10)
|
|
Retained
earnings
|
1,431
|
|
|
1,381
|
|
Total
shareholders' equity
|
2,646
|
|
|
2,591
|
|
Total liabilities
and shareholders' equity
|
$
|
8,805
|
|
|
$
|
8,394
|
|
PORTLAND GENERAL
ELECTRIC COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
120
|
|
|
$
|
98
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
212
|
|
|
202
|
|
Deferred income
taxes
|
4
|
|
|
6
|
|
Pension and other
postretirement benefits
|
12
|
|
|
12
|
|
Allowance for equity
funds used during construction
|
(7)
|
|
|
(5)
|
|
Decoupling mechanism
deferrals, net of amortization
|
(8)
|
|
|
(1)
|
|
(Amortization) of net
benefits due to Tax Reform
|
(11)
|
|
|
(11)
|
|
Other non-cash income
and expenses, net
|
46
|
|
|
21
|
|
Changes in working
capital:
|
|
|
|
Decrease in accounts
receivable, net
|
40
|
|
|
63
|
|
(Increase) in
inventories
|
(13)
|
|
|
(17)
|
|
(Increase)/decrease in
margin deposits
|
(9)
|
|
|
11
|
|
(Decrease) in accounts
payable and accrued liabilities
|
(27)
|
|
|
(65)
|
|
Other working capital
items, net
|
18
|
|
|
16
|
|
Other, net
|
(21)
|
|
|
(16)
|
|
Net cash provided
by operating activities
|
356
|
|
|
314
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(370)
|
|
|
(271)
|
|
Sales of Nuclear
decommissioning trust securities
|
4
|
|
|
7
|
|
Purchases of Nuclear
decommissioning trust securities
|
(3)
|
|
|
(5)
|
|
Other, net
|
(1)
|
|
|
(2)
|
|
Net cash used in
investing activities
|
(370)
|
|
|
(271)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from issuance
of long-term debt
|
319
|
|
|
200
|
|
Payments on long-term
debt
|
(98)
|
|
|
(300)
|
|
Borrowings on
short-term debt
|
200
|
|
|
—
|
|
Repayments of
short-term debt
|
(50)
|
|
|
—
|
|
Issuance of commercial
paper, net
|
—
|
|
|
17
|
|
Dividends
paid
|
(69)
|
|
|
(65)
|
|
Other
|
(15)
|
|
|
(3)
|
|
Net cash provided
by (used in) financing activities
|
287
|
|
|
(151)
|
|
Increase
(Decrease) in cash and cash equivalents
|
273
|
|
|
(108)
|
|
Cash and cash
equivalents, beginning of period
|
30
|
|
|
119
|
|
Cash and cash
equivalents, end of period
|
$
|
303
|
|
|
$
|
11
|
|
|
|
|
|
Supplemental cash
flow information is as follows:
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$
|
56
|
|
|
$
|
60
|
|
Cash paid for income
taxes
|
5
|
|
|
20
|
|
PORTLAND GENERAL
ELECTRIC COMPANY AND SUBSIDIARIES
|
SUPPLEMENTAL
OPERATING STATISTICS
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Revenues (dollars
in millions):
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
Residential
|
$
|
502
|
|
|
48
|
%
|
|
$
|
495
|
|
|
48
|
%
|
Commercial
|
299
|
|
|
29
|
|
|
312
|
|
|
30
|
|
Industrial
|
104
|
|
|
10
|
|
|
94
|
|
|
9
|
|
Direct
Access
|
23
|
|
|
2
|
|
|
21
|
|
|
2
|
|
Subtotal
|
928
|
|
|
89
|
|
|
922
|
|
|
89
|
|
Alternative revenue
programs, net of amortization
|
9
|
|
|
1
|
|
|
1
|
|
|
—
|
|
Other accrued
revenues, net
|
6
|
|
|
1
|
|
|
13
|
|
|
1
|
|
Total retail
revenues
|
943
|
|
|
91
|
|
|
936
|
|
|
90
|
|
Wholesale
revenues
|
74
|
|
|
7
|
|
|
53
|
|
|
5
|
|
Other operating
revenues
|
25
|
|
|
2
|
|
|
44
|
|
|
5
|
|
Total
revenues
|
$
|
1,042
|
|
|
100
|
%
|
|
$
|
1,033
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
Energy deliveries
(MWhs in thousands):
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
Residential
|
3,789
|
|
|
30
|
%
|
|
3,782
|
|
|
34
|
%
|
Commercial
|
3,000
|
|
|
24
|
|
|
3,261
|
|
|
29
|
|
Industrial
|
1,638
|
|
|
13
|
|
|
1,510
|
|
|
14
|
|
Subtotal
|
8,427
|
|
|
67
|
|
|
8,553
|
|
|
77
|
|
Direct
access:
|
|
|
|
|
|
|
|
Commercial
|
311
|
|
|
3
|
|
|
341
|
|
|
3
|
|
Industrial
|
725
|
|
|
6
|
|
|
720
|
|
|
7
|
|
Subtotal
|
1,036
|
|
|
9
|
|
|
1,061
|
|
|
10
|
|
Total retail energy
deliveries
|
9,463
|
|
|
76
|
|
|
9,614
|
|
|
87
|
|
Wholesale energy
deliveries
|
2,980
|
|
|
24
|
|
|
1,459
|
|
|
13
|
|
Total energy
deliveries
|
12,443
|
|
|
100
|
%
|
|
11,073
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
Average number of
retail customers:
|
|
|
|
|
|
|
|
Residential
|
788,511
|
|
|
88
|
%
|
|
776,816
|
|
88
|
%
|
Commercial
|
110,116
|
|
|
12
|
|
|
109,470
|
|
12
|
|
Industrial
|
194
|
|
|
—
|
|
|
195
|
|
—
|
|
Direct
access
|
631
|
|
|
—
|
|
|
633
|
|
—
|
|
Total
|
899,452
|
|
|
100
|
%
|
|
887,114
|
|
|
100
|
%
|
PORTLAND GENERAL
ELECTRIC COMPANY AND SUBSIDIARIES
|
SUPPLEMENTAL
OPERATING STATISTICS, continued
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Sources of energy
(MWhs in thousands):
|
|
|
|
|
|
|
|
Generation:
|
|
|
|
|
|
|
|
Thermal:
|
|
|
|
|
|
|
|
Natural gas
|
3,477
|
|
|
29
|
%
|
|
3,318
|
|
|
31
|
%
|
Coal
|
1,504
|
|
|
13
|
|
|
1,713
|
|
|
16
|
|
Total
thermal
|
4,981
|
|
|
42
|
|
|
5,031
|
|
|
47
|
|
Hydro
|
686
|
|
|
6
|
|
|
837
|
|
|
8
|
|
Wind
|
1,193
|
|
|
10
|
|
|
820
|
|
|
8
|
|
Total
generation
|
6,860
|
|
|
58
|
|
|
6,688
|
|
|
63
|
|
Purchased
power:
|
|
|
|
|
|
|
|
Term
|
4,108
|
|
|
34
|
|
|
3,177
|
|
|
30
|
|
Hydro
|
804
|
|
|
7
|
|
|
566
|
|
|
6
|
|
Wind
|
178
|
|
|
1
|
|
|
123
|
|
|
1
|
|
Total purchased
power
|
5,090
|
|
|
42
|
|
|
3,866
|
|
|
37
|
|
Total system
load
|
11,950
|
|
|
100
|
%
|
|
10,554
|
|
|
100
|
%
|
Less: wholesale
sales
|
(2,980)
|
|
|
|
|
(1,459)
|
|
|
|
Retail load
requirement
|
8,970
|
|
|
|
|
9,095
|
|
|
|
The following table indicates the number of heating and cooling
degree-days for the three months ended June
30, 2020 and 2019, along with 15-year averages based on
weather data provided by the National Weather Service, as measured
at Portland International Airport:
|
Heating
Degree-days
|
|
Cooling
Degree-days
|
|
2020
|
|
2019
|
|
Avg.
|
|
2020
|
|
2019
|
|
Avg.
|
First
Quarter
|
1,761
|
|
|
1,992
|
|
|
1,849
|
|
|
—
|
|
|
—
|
|
|
—
|
|
April
|
305
|
|
|
312
|
|
|
375
|
|
|
—
|
|
|
—
|
|
|
3
|
|
May
|
174
|
|
|
109
|
|
|
185
|
|
|
39
|
|
|
28
|
|
|
24
|
|
June
|
75
|
|
|
46
|
|
|
76
|
|
|
60
|
|
|
74
|
|
|
62
|
|
Second
Quarter
|
554
|
|
|
467
|
|
|
636
|
|
|
99
|
|
|
102
|
|
|
89
|
|
Year-to-date
|
2,315
|
|
2,459
|
|
2,485
|
|
|
99
|
|
|
102
|
|
|
89
|
|
(Decrease)/increase
from the 15-year average
|
(7)
|
%
|
|
(1)
|
%
|
|
|
|
11
|
%
|
|
15
|
%
|
|
|
Media
Contact:
|
|
Investor
Contact:
|
|
Andrea
Platt
|
|
Jardon
Jaramillo
|
|
Corporate
Communications
|
|
Investor
Relations
|
|
Phone:
503-464-7980
|
|
Phone:
503-464-7051
|
|
View original
content:http://www.prnewswire.com/news-releases/portland-general-electric-announces-second-quarter-2020-results-301103628.html
SOURCE Portland General Company