PORTLAND, Ore., Feb. 14, 2020 /PRNewswire/ — 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.

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.

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.

Media Contact:

Investor Contact:

Andrea Platt

Chris Liddle

Corporate Communications

Investor Relations

Phone: 503-464-7980

Phone: 503-464-7458

POR

Source: Portland General Company

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

 

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

 

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

 

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)

 

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

 

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

%

 

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

 

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SOURCE Portland General Company