Portland General Electric Co Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Julien Dumoulin Smith - Jefferies - Analyst : Good morning, team. Thank you guys very much for the time. I appreciate it. Nicely done here. Top of the morning to you guys. Maybe just focusing first on the bigger priorities here. Obviously, you've got this wildfire effort here in front of you this coming year. And obviously, you've been building into this for some time. Can you speak maybe one, how the nature of what's happening in California has maybe shifted or evolved any of the dialogues in the state? And then secondly, if you could frame how you envision this coming together and kind of a belt and suspenders approach, you obviously talk about creating sort of a wildfire backstop to our fund. How would that work as far as you're concerned in an effort to try to draw analogs from California in a similar scope of what you would imagine coming out of this year looks like, right? Just what are the conversations looking like at this time? Obviously, you've been spending your -- spending quite some time building this together. What is that starting to look like in a more tangible set if you can? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 14, 2025 / 4:00PM, POR.N - Q4 2024 Portland General Electric Co Earnings Call

Question: Julien Dumoulin Smith - Jefferies - Analyst : Got it. Excellent. And then maybe just to pivot more to the more tangible here on cost structure. Obviously, you've laid out some degree of detail here on your initiatives. And in some response, I imagine recognizing some of the feedback in the last quarter here. Can you elaborate a little bit on what you're seeing out there in terms of relative rate lag. I mean how would you frame that this year in light of fee side and then more prospectively, given the higher sales growth in O&M, can you speak a little bit to kind of maybe more structural lag, if there's any shifts in that as well as if there's anything else that we should know about given some of the commentary around the case in O&M specifically in the last quarter.

Question: Julien Dumoulin Smith - Jefferies - Analyst : Excellent. And that's a lot. Kudos on the cost and good luck the session, speak soon. Thank you.

Question: Richard Sunderland - JPMorgan Securities - Analyst : Thank you for the time today. Picking up on the O&M dialogue from the last question. Just thinking about the durable long-term outcomes you

Question: Richard Sunderland - JPMorgan Securities - Analyst : Got it. That's very clear. And then touching on overall regulatory strategy after the last rate case. How are you weighing the timing of another rate case, the Seaside options? And then I guess, against these O&M efforts as well. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 14, 2025 / 4:00PM, POR.N - Q4 2024 Portland General Electric Co Earnings Call I know you said you were evaluating what to do with Seaside, but could you speak a little bit more to how you're balancing those different considerations and when you might have an update across all of that.

Question: Richard Sunderland - JPMorgan Securities - Analyst : Got it thank you.

Question: Shar Pourreza - Guggenheim Partners - Analyst : Hey guys, good morning. Just a real quick follow-up on Julien's question. If there was some sort of a fund established would you be open at this point to structures that require equity contributions from the company? I couldn't give a strong sense there?

Question: Shar Pourreza - Guggenheim Partners - Analyst : Got it. And then I just want to piece some of the data points that you guys were kind of touching on, but I'd like to just -- I guess if you guys talk a little more on the plan, the different facets. I guess, where do you see yourself, I guess, trending within that 5% to 7% through the planning period? And any kind of considerations we should be thinking about from a year-over-year variability, what does the guidance (inaudible)from a rate case timing? And then Joe, just specifically, I want to make sure I'm crystal clear. On the '25 guide, do you assume you get the tracker for Seaside after the June completion? Thanks.

Question: Shar Pourreza - Guggenheim Partners - Analyst : Perfect. And then just real quick, lastly. With wildfire that process working itself through, any sense on timing, Joe, as far as the holding company structure -- is it still -- let's get through the wildfire process and then we can look at the holdco. Is that this year kind of catalyst? Is it a next year catalyst, where are we in that process?

Question: Shar Pourreza - Guggenheim Partners - Analyst : Okay, perfect. A lot a lot of good moving pieces. I appreciate it guys thanks.

Question: Mike Lonegan - Evercore ISI - Analyst : Hi, good morning, thanks for taking questions morning. So going back to the Seaside tractor, you said you're still evaluating a potential filing. In the written order in the GRC, the commission mentioned that in order to grant you a tracker, they may want a commitment from you not to file a GRC for a certain period of time. I was just wondering your thoughts on committing to this and what kind of timeline you would commit to before the next rate case, if you were to make this tracker filing. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 14, 2025 / 4:00PM, POR.N - Q4 2024 Portland General Electric Co Earnings Call

Question: Mike Lonegan - Evercore ISI - Analyst : Got it. And then on the equity issuance plan, you reiterated $300 million in '25 and '26 and continue to mention tapering off in '27 and beyond, consistent with your prior outlook. I know you've talked about monetization of renewable tax credits to mitigate needs. Just wondering, what are your latest thoughts on equity needs beyond '26 and the FFO to debt metric you are targeting?

Question: Mike Lonegan - Evercore ISI - Analyst : Great, thanks for taking my questions.

Question: Nicholas Campanella - Barclays - Analyst : Thanks for taking the time. I just wanted to clarify on the comments around being at the high end of the 5% to 7%. I think you kind of said that if you have like a meaningful RFP addition kind of put you there and in the prior update, you kind of gave like base rate base growth of 8%. And then I think for the upside opportunities, it was roughly 10% CAGR. What's kind of like the new refreshed RAB metrics with this new outlook you're presenting today that kind of ties you to that high end.

Question: Nicholas Campanella - Barclays - Analyst : Sorry if we missed that. I appreciate that. And then just common equity ratio. I think in the K is 45.6%. And I know you're working to get back to the plan, but just how are you framing the cadence of improvement through the plan at this point? Is it 50 to 100 basis points a year? Or just how should we think about that?

Question: Paul Fremont - Ladenburg Thalmann and Co - Analyst : Hey, good morning, Marie. Just a cleanup from Julien's question. I was wondering on the structural lag, and I may have missed the number, so apologies. Are you able to tell us what structural lag the amount and maybe basis points that you experienced in 2024? And then where do you think that lag could potentially be at the end of your plan? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 14, 2025 / 4:00PM, POR.N - Q4 2024 Portland General Electric Co Earnings Call

Question: Paul Fremont - Ladenburg Thalmann and Co - Analyst : Got it. But you didn't -- you haven't quantified where you think you could end with that of the plan. Is that correct?

Question: Paul Fremont - Ladenburg Thalmann and Co - Analyst : Thank you. Congratulations on a good quarter. My question, I guess, following up on Anthony's question in terms of wildfire legislation. Are you looking to essentially replicate what's in AB 1054 or are you looking for something that's different than that?

Question: Paul Fremont - Ladenburg Thalmann and Co - Analyst : And then as has the state or have the parties sort of come up with a number potentially for the backstop fund that you're talking about?

Question: Paul Fremont - Ladenburg Thalmann and Co - Analyst : Okay. And then the limits of liability would they apply to just regular negligence gross negation. How would they just be absolute limits on liability? How should we think about sort of --

Question: Paul Fremont - Ladenburg Thalmann and Co - Analyst : Okay, great. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 14, 2025 / 4:00PM, POR.N - Q4 2024 Portland General Electric Co Earnings Call

Question: Travis Miller - Morningstar - Analyst : I'm interested in a little more on the federal initiatives. The -- with the new administration, what are you either hearing or anticipate hearing in terms of changes in tone relative to any kind of wildfire mitigation. It seemed like the last administration wasn't too interested in doing a whole lot to help at the federal level. Wondering if that's changing at all that you hear are this [anticipate].

Question: Travis Miller - Morningstar - Analyst : Okay. And is there -- would you anticipate any kind of conflict, either legislative or political conflict between what you're doing at the state or what might develop say within in Utah or within California and what you're trying to initiate at the federal level.

Question: Travis Miller - Morningstar - Analyst : Okay. That makes sense. We're good. And then one other real quick one. How do you think about power costs with your now updated demand forecast and then thinking about wrapping in the projects in the RFPs which (inaudible)have very low variable costs in there. How do you think about total power cost development over the last next few years?

Question: Travis Miller - Morningstar - Analyst : Sure, okay, well I really appreciate all the thoughts.