PORTLAND, Ore., Sept. 2, 2020 /PRNewswire/ -- Portland General
Electric Company (NYSE: POR) ("PGE" or the "Company") today
announced that it no longer has net market exposure from the energy
trading positions that led to previously announced losses, and that
total third quarter 2020 losses on these positions are $128 million. As previously disclosed, this
amount had been estimated to be up to $155
million, subject to market conditions.
The increase in net variable power costs due to this trading
activity will be recognized in PGE's results of operations in the
third quarter 2020. The Company reiterates that there will be no
impact to customer prices, as the Company will not pursue
regulatory recovery in connection with the losses. The losses do
not impact PGE's ability to serve customers.
The Company continues to have a strong balance sheet and ample
liquidity, and does not plan to issue additional equity in
2020.
In light of no longer having net market exposure from these
energy trading positions, PGE is updating its previously revised
full-year 2020 guidance to $1.40 to
$1.60 per diluted share. This
guidance reflects the impact of the $128
million third quarter 2020 losses on these positions and is
based on the following assumptions:
- Annual retail deliveries flat, weather adjusted, year over
year;
- 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 $550 million and $570
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.
The review being undertaken by the Special Committee of the
Board of Directors is ongoing.
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 approximately
900,000 customers with a service area population of 2 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 press
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
the Company's full-year earnings guidance (including expectations
regarding annual retail deliveries, average hydro conditions, wind
generation, normal thermal plant operations, operating and
maintenance expense and depreciation and amortization expense) 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, without limitation: the
outcome of the review being conducted by the Special Committee; the
impact of the recommendations of the Special Committee on the
Company and its operations; the time and expense incurred in
implementing the recommendations of the Special Committee; any
reputational damage to the Company relating to the matters
underlying the Special Committee's review; 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 press 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 the Company files 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.
Media Contacts:
Brianne Hyder
503-464-8596
PGE
Dan Katcher / Jamie Moser / Arielle
Rothstein
212-355-4449
Joele Frank, Wilkinson Brimmer
Katcher
Investor Contact:
Jardon
Jaramillo
503-464-7051
Investor Relations
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SOURCE Portland General Company