Q1 2024 Portland General Electric Company Earnings Call

Operator: Good morning, everyone, and welcome to Portland General Electric Company's first quarter 2024 Earnings Results Conference call. Today is Friday, April 26, 2024. This call is being recorded, and as such, all lines have been placed on mute to prevent any background noise.

Good morning, everyone and welcome to Portland General Electric Company's first quarter 2024 earnings results Conference call. Today's Friday April 26, 2020 for this call is being recorded and as such all lines have been placed on mute to prevent any background noise. After this.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, you simply press star one one on your telephone keypad. If you would like to withdraw your question, please press star one one again. If you do intend to ask a question, please avoid using the speakerphone.

Speakers' remarks, there'll be a question and answer session.

If you would like to ask a question. During this time simply press star one one on your telephone keypad. If you would like to withdraw your question. Please press star one again, if you do intend to ask a question. Please afford you the use of the speaker phone for opening remarks, I'll turn the call over to Portland General Electrics manager.

Nick White: For opening remarks, I'll turn the call over to Portland General Electric's manager of investor relations, Nick White. Please go ahead. Thank you, Norma. Good morning, everyone. I'm happy you can join us today. Before we begin this morning, I would like to remind you that we have prepared a presentation to supplement our discussion, which we will be referencing throughout the call. The slides are available on our website at investors.portlandgeneral.com. Referring to slide two, some of our remarks this morning will constitute forward-looking statements. We caution you that such statements involve inherent risks and uncertainties, and actual results may differ materially from our expectations.

Of Investor Relations Nick White. Please go ahead Sir.

Nick White: Thank you Norma good morning, everyone I'm happy you can join us today.

Nick White: Before we begin this morning, I would like to remind you that we have prepared a presentation to supplement our discussion, which we'll be referencing throughout the call. The slides are available on our website at investors that Portland General Dotcom.

Nick White: Referring to slide two some of our remarks. This morning will constitute forward looking statements. We caution you that such statements involve inherent risks and uncertainties and actual results may differ materially from our expectations.

Nick White: For a description of some of the factors that could cause actual results to differ materially, please refer to our earnings press release and our most recent periodic reports on Form 10-K and 10-Q, which are available on our website. Turning to slide three, leading our discussion today are Maria Pope, President and CEO, and Joe Trpik, Senior Vice President of Finance and CFO. Following their prepared remarks, we will open the line for your questions. Now, it's my pleasure to turn the call over to Maria. Thank you, Nick.

Nick White: For a description of some of the factors that could cause actual results to differ materially. Please refer to our earnings press release and our most recent periodic reports on Form 10-K, and 10-Q, which are available on our website.

Nick White: Turning to slide three leading our discussion today are Maria Pope President and CEO, and Joe <unk> Senior Vice President of Finance and CFO.

Nick White: Following their prepared remarks, we will open the line for your questions now, it's my pleasure to turn the call over to Maria.

Maria MacGregor Pope: Thank you Nick and good morning, everyone. Thank you for joining us.

Maria MacGregor Pope: And good morning, everyone. Thank you for joining us. Portland General Electric is on track in 2024, and the stage is set for steady, normalized growth. After tough weather and extensive customer restoration in January, our results this quarter speak to strong execution. Beginning with slide four, I'll speak to our financial results and key drivers. For the first quarter, we reported a net income of $109 million, or $1.08 per diluted share.

Maria MacGregor Pope: At Lynn General Electric is on track in 2024, and the stage is set for steady normalized.

Maria MacGregor Pope: After a tough weather and extensive customer restorations in January our results this quarter speak to strong execution.

Maria MacGregor Pope: Beginning with slide four I'll speak to our financial results and key drivers.

Maria MacGregor Pope: For the first quarter, we reported GAAP net income of $109 million or $1 eight per diluted share on a non-GAAP basis, net income was $123 million or $1 21 per diluted share.

Maria MacGregor Pope: On a non-gap basis, net income was $123 million, or $1.21 per diluted share. This compares with first quarter 2023 gap net income of $74 million, or $0.80 per diluted share. First quarter 2024 gap results excluded the 20% non-recoverable cost of the reliability contingency event incurred in the January storm. Results this quarter, which Joe will discuss in his remarks, were driven by robust low growth from semiconductor and data center customers and our focus on operational execution. This focus was evident throughout the quarter and no more so than during the January storm.

Maria MacGregor Pope: This compares with first quarter 2023, GAAP net income of $74 million or <unk> 87 per diluted share.

Maria MacGregor Pope: First quarter 2024, GAAP results excluded the 20% non recoverable costs of the reliability contingency events.

Maria MacGregor Pope: In the January storm events.

Maria MacGregor Pope: Results this quarter, which Joe will discuss in his remarks were driven by robust loan growth from semiconductor and data center customers and our focus on operational execution.

Maria MacGregor Pope: This focus was evident throughout the quarter and no more so than during the January storms.

Maria MacGregor Pope: Our PGE team members navigated regional resource constraints, gas network disruptions, and severe winter conditions that resulted in hundreds of thousands of customer outages. I'd like to again commend and thank my colleagues for their extraordinary work during this challenging event. As we look ahead to the balance of the year and beyond, we remain focused on three main areas. First, the rapid transformation of our energy system propelled by continued investment in our service territory by semiconductor and digital infrastructure customers.

Maria MacGregor Pope: Our pega team members navigated regional resource constraints gas network disruptions severe winter conditions that resulted in hundreds of thousands of customer outages.

Maria MacGregor Pope: To again commend and thank my colleagues for their extraordinary work during this challenging event.

Maria MacGregor Pope: As we look ahead to the balance of the year and beyond we remain focused on three main areas.

Maria MacGregor Pope: First rapid transformation of our energy system propelled by continued investments in our service territory by semiconductor and digital infrastructure customer.

Maria MacGregor Pope: Second, executing our capital plan to meet customers' priorities for clean energy and increased grid resilience. And third, delivering on our ongoing commitment to operational discipline by reducing risk, controlling cost, driving efficiency, and managing customer affordability. This is a period of rapid growth and transformation for both our energy system and our region. The robust growth of the semiconductor and digital sectors will enable system-wide infrastructure and reliability investments. And we'll continue to engage our customers, regulators, and other stakeholders to ensure that this growth benefits all customers, industrial, commercial, and residential alike.

Maria MacGregor Pope: Second.

Maria MacGregor Pope: Executing our capital plan to meet customers' priorities for clean energy and increased grid resiliency.

Maria MacGregor Pope: And third delivering on our ongoing commitment to operational discipline by reducing risks controlling costs driving efficiencies and managing customer affordability.

Maria MacGregor Pope: This is a period of rapid growth and transformation for both our energy system and our region there.

Maria MacGregor Pope: Robust growth of the semiconductor and digital sectors.

Maria MacGregor Pope: Sectors will enable systemwide infrastructure and reliability investments.

Maria MacGregor Pope: And we will continue to engage our customers.

Maria MacGregor Pope: Our regulators and other stakeholders to ensure that this benefit is growth benefits all customers.

Maria MacGregor Pope: Industrial commercial and residential.

Maria MacGregor Pope: We continue to see significant residential transformation in our region as well, with strong growth in rooftop solar and electric vehicle adoption. Together, these changes are requiring us to think differently and innovate as we build and upgrade transmission and energy infrastructure on a scale reminiscent of when our industry first electrified the West. Moving to slide five, industrial growth. First, industrial load growth increased 4.9% compared to the first quarter last year. State and federal investments are bolstering semiconductor expansion in our service area. This quarter, Intel announced investments across four states, backed by $8.5 billion in federal funding. Intel expects that $36 billion will be spent in Hillsborough, Oregon, in the western part of our service territory.

Maria MacGregor Pope: We continue to see significant residential transformation in our region as well with strong growth of rooftop solar and electric vehicle adoption.

Maria MacGregor Pope: Together these changes are requiring us to think differently and innovate as we build upgrade transmission and energy infrastructure on a scale reminiscence of what our industry first electrified the west.

Maria MacGregor Pope: Moving to slide five.

Maria MacGregor Pope: Industrial growth.

Maria MacGregor Pope: First industrial load growth increased four 9% compared to the first quarter last year.

Maria MacGregor Pope: State and federal investments are bolstering semiconductor expansion in our service area.

Maria MacGregor Pope: This quarter, Intel announced investments across four states.

Maria MacGregor Pope: By $8 5 billion in federal funding.

Maria MacGregor Pope: Intel expects the $36 billion will be spent in Hillsboro, Oregon in the western part of our service territory.

Maria MacGregor Pope: This is in addition to the significant semiconductor investments by analog devices, Microchip, and many others. This will drive economic growth for years to come, hoping to cement Oregon's Silicon Forest as the premier hub for semiconductor manufacturing, research, and development. These investments will have broad benefits across our state, strengthening our communities, creating jobs, providing workforce development, and higher education opportunities. Moreover, Oregon continues to reinforce its position as a hub for the digital infrastructure that underpins our global economic growth fueled by generative AI. A recent study by Cushman & Wakefield ranked Oregon as the 5th largest data center market nationally and 8th globally, with this mature digital ecosystem in our area.

Maria MacGregor Pope: This is in addition to the significant semiconductor investments by analog devices microchip and many others.

Maria MacGregor Pope: This will drive economic growth for years to come helping to cement, Oregon Silicon for us as the premier hub for semiconductor manufacturing.

Maria MacGregor Pope: Research and development.

Maria MacGregor Pope: These investments will have a broad benefits across our region strengthening our communities creating job.

Providing workforce development and higher education opportunities.

Maria MacGregor Pope: Moreover, Oregon continues to reinforce its position as a hub for the digital infrastructure that underpins, our global economic growth fueled by generative AI.

Maria MacGregor Pope: A recent study by Cushman and Wakefield ranked Oregon as the fifth largest data center market nationally.

Maria MacGregor Pope: And eight globally.

Maria MacGregor Pope: With this mature digital ecosystem in our area, we've been fortunate to enable growth.

Maria MacGregor Pope: Observed emerging trends and plan accordingly.

Last year as part of our combined clean energy and integrated resource plan, we increased our expectations for industrial energy usage in our service territory by over 40%.

Maria MacGregor Pope: We've been fortunate to enable growth, observe emerging trends, and plan accordingly. Last year, as part of our combined clean energy and integrated resource plan, we increased our expectations for industrial energy usage in our service territory by over 40 percent, anticipating the rapid growth that we are seeing today. Additionally, these plans emphasize the need for expanded transmission investment, which we highlighted in our recent capital plan update.

Maria MacGregor Pope: Anticipating the rapid growth that we're seeing today.

Maria MacGregor Pope: Additionally, these plans emphasize the need for expanded transmission investments, which we highlighted in our recent capital plan update.

Maria MacGregor Pope: As industry continues to reinsure and expands we recognize the importance of electric infrastructure clean energy supply and reflecting our region's focus on sustainability economic security and transformative operational opportunities.

Maria MacGregor Pope: As industry continues to reshore and expand, we recognize the importance of electric infrastructure, such as Clean Energy Supply, and reflecting our region's focus on sustainability, economic security, and transformative operational opportunities for our next generation. Capital Plan Execution. The ambitions and clean energy goals of our customers underscore the importance of Portland General Electric's commitment to transform our energy system, to pursue clean energy resources, expand transmission, and invest in grid resilience. These investments not only position us for long-term growth but also create significant benefits for all.

Maria MacGregor Pope: For our next generation.

Maria MacGregor Pope: Capital plan execution.

Maria MacGregor Pope: The ambition and clean energy goals of our customers underscore the importance of Portland General Electric's commitment to transform our energy systems.

Maria MacGregor Pope: To pursue clean energy resources, and expand transmission and invest in grid resilience.

Maria MacGregor Pope: These investments not only position us for long term growth.

Maria MacGregor Pope: Also create significant benefits for all customers.

Maria MacGregor Pope: Our generation battery storage and grid infrastructure projects are great. Examples.

Maria MacGregor Pope: Our generation, battery storage, and grid infrastructure projects are great examples. The forthcoming Comstable and Seaside Battery Storage Project play a critical role in matching variable renewable production with customer demand. The flexibility these batteries provide will allow us to navigate increasingly frequent and costly periods of power cost volatility.

Maria MacGregor Pope: The forthcoming comfortable and <unk> battery storage projects.

Maria MacGregor Pope: A critical role in matching variable renewable production with customer demand.

Maria MacGregor Pope: The flexibility. These batteries provides will allow us to navigate increasingly frequent and costly.

Maria MacGregor Pope: Our power cost volatility.

Maria MacGregor Pope: Similarly, the Clearwater development that came online in January has allowed PGE to generate more wind energy than ever before and.

Maria MacGregor Pope: Similarly, the clear water development that came online in January has allowed PGE to generate more wind energy than ever before and will lead to customer price reductions while providing important geographic resource diversity. We're also continuing to modernize and harden our grid, to accommodate emerging technologies and to improve resilience in the face of severe winter and summer weather. These investments on behalf of, from battery storage to grid modernization and resiliency projects, are at the center of our 2025 general rate, filed in February.

Maria MacGregor Pope: And will lead to customer price reductions, while providing important geographic resource diversity.

Maria MacGregor Pope: We're also continuing to modernize and harden our grid.

Maria MacGregor Pope: To accommodate emerging technology and to improve resilience in the face of severe winter and summer weather.

Maria MacGregor Pope: These investments on behalf of customers.

Maria MacGregor Pope: Some battery storage to grid modernization and resiliency projects are at the center of our 2025 general rate case.

Maria MacGregor Pope: In February which Joe will touch on shortly.

Maria MacGregor Pope: Operational discipline.

Maria MacGregor Pope: As we advance critical investments to strengthen our system affordability remains squarely in focus.

Maria MacGregor Pope: This show will touch on shortly Operational Discipline, As we advance critical investments to strengthen our system, affordability remains squarely in focus. This means finding opportunities to drive efficiencies and savings through power cost management and operations, and Mark. CIGI announced plans to join other Western utilities in the KISO Extended Day Ahead Market.

Maria MacGregor Pope: This means finding opportunities to drive efficiencies and savings through power cost management.

Maria MacGregor Pope: Operational discipline.

Maria MacGregor Pope: In March.

Maria MacGregor Pope: <unk> announced plans to join other western utilities, and the queso extended day ahead market.

Maria MacGregor Pope: EDAM offers us a larger operational footprint.

Maria MacGregor Pope: That will enhance reliability and help alleviate power cost pressure.

Maria MacGregor Pope: E-DAM offers us a larger operational footprint that will enhance reliability and help alleviate power cost pressure on the operational level. CGE teams are deploying technology to prioritize work, optimize business processes, and focus on key risks like cybersecurity and wildfire mitigation, for example. As we progress through our year-round wildfire program, we are enhancing our vegetation management and investing in System Hardening, Situational Awareness, and Operational Practice. This includes AI-equipped cameras, weather stations, re-closers, fire mesh pole wraps, and early fall detection.

Maria MacGregor Pope: On the operational front.

Maria MacGregor Pope: <unk> teams are deploying technology to prioritize work optimize business processes and focus on key risks like cyber security and wildfire mitigation.

For example, as.

Maria MacGregor Pope: As we progress through our year round wildfire program, we are enhancing our vegetation management and investing in system hardening situational awareness and operational practices.

This includes AI equipped cameras.

Maria MacGregor Pope: Other stations re closers.

Maria MacGregor Pope: Fire mesh pull ramp and early fall detection.

Maria MacGregor Pope: As we look ahead.

Maria MacGregor Pope: We have a solid first quarter.

Maria MacGregor Pope: And we are focused on execution and delivering on expectations.

Maria MacGregor Pope: Our plants are exciting.

Maria MacGregor Pope: <unk> and we're going to get it done.

Maria MacGregor Pope: With that I'll turn it over to Joe who will walk us through our financial results in more detail.

Maria MacGregor Pope: As we look ahead, we have a solid first quarter, and we are focused on execution and delivering on expectations. Our plans are exciting, achievable, and we're going to get it done. With that, I'll turn it over to Joe, who will walk us through our financial results in more detail. Thank you. Thank you, Maria, and good morning, everyone. Turning to slide 6, our Q1 results reflect continued demand growth from industrial customers, dynamic weather, and ongoing efforts to de-risk our operations. Weather in our area was variable throughout the quarter, with colder conditions in January, followed by more mild conditions in February and March.

Joe: Thank you.

Joe: Thank you Maria and good morning, everyone.

Joe: Turning to slide six our Q1 results reflect continued demand growth from industrial customers.

Joe: <unk> weather and ongoing efforts to de risk our operations.

Weather in our area with variable throughout the quarter with colder conditions in January followed by a more mild conditions in February and March overall heating degree days for the quarter were eight 9% lower than in Q1 2023.

Joe: Q1, 2024 loads decreased by <unk>, 9%, but increased by one 2% weather adjusted compared to Q1 2023.

Joe: 2024 residential load decreased three 6% year over year due to mild weather, but increased by 5% weather adjusted residential customer accounts increased one 3%.

Joseph R. Trpik: Overall, heating degree days for the quarter were 8.9% lower than in Q1 2023. Q1 2024 loads decreased by 0.9%, but they increased by 1.2% weather adjusted compared to Q1 2023. 2024 residential load decreased 3.6% year over year due to mild weather, but it increased by 0.5% weather adjusted. Residential customer accounts increased 1.3%, commercial load decreased 2.1%, for 1.3% weather adjusted, driven largely by lower commercial activity during the January winter storm

Joe: Commercial load decreased two 1%.

Joe: Or one 3% weather adjusted driven largely by lower commercial activity during the January winter storm.

Joe: The industrial class sustained its momentum.

Joe: Load, increasing four 9% or five 2% weather adjusted.

Joe: Demand growth for digital and semiconductor customers supports this growth trend reinforced by the ongoing investment Maria highlights.

Joe: We maintained good visibility to our robust pipeline of incoming projects and remain confident in the strength of our service territory.

Joe: Given these factors we are reiterating our 2020 for weather adjusted load growth guidance of 2% to 3%.

Joe: Our long term growth guidance of 2% through 2020.

I'll now cover our financial performance quarter over quarter.

Joseph R. Trpik: The industrial class sustained its momentum, with load increasing 4.9% or 5.2% with weather adjustment. Demand growth for digital and semiconductor customers supports this growth trend reinforced by the ongoing investment in Maria Heilig. We maintain good visibility into our robust pipeline of incoming projects and remain confident in the strength of our service territory. Given these factors, we are reiterating our 2024 weather-adjusted load growth guidance of 2% to 3% and our long-term growth guidance of 2% through 2027. I'll now cover our financial performance quarter over quarter. We observed a 3-cent decrease in revenues primarily due to weather-driven decreases in delivery.

Joe: We observed a recent decrease in revenues, primarily due to weather driven decreases in deliveries.

Joe: An 18% increase resulting from the right sizing of our cost structure and improved recovery of wildfire mitigation vegetation management, other O&M and capital assets serving customers.

Joe: Power costs drove a 30% increase in EPS driven by a 13.

Joe: <unk> increased due to power cost Detriments in Q1, 2023 that reverse for this comparison.

Joe: The 17% increase in EPS from lower power costs and anticipated in the annual update tariff driven by Derisking actions taken throughout the quarter.

We had a <unk> <unk> decrease in other items, including the dilutive impact of recent equity draws.

Joe: Lower regulatory program interest and higher property taxes, partially offset by higher AFDC and lower income tax expense generally from PTC effects.

Joe: And lastly, a 13% decrease the GAAP EPS, resulting from the 20% portion of non recoverable January storm RPE costs, bringing us to a GAAP EPS of $1 eight per diluted share.

Joseph R. Trpik: An $0.18 increase resulting from the right-sizing of our cost structure and improved recovery of wildfire mitigation vegetation management, other O&M, and capital assets serving customers. Power costs drove a $0.30 increase in EPS driven by a $0.13 EPS increase due to power cost detriments in Q1 2023 that reversed for this comparison, and a $0.17 increase in EPS from lower power costs than anticipated in the annual update paragraph driven by de-risking actions taken throughout the quarter. We had a 4 cent decrease in other items, including the dilutive impacts of recent equity draws. Lower Regulatory Program Interest and Higher Property Tax, partially offset by higher AFUDC and lower income taxes, generally from PTC.

Joe: After adjusting for this <unk>.

Joe: Impact we reach our Q1 2024, non-GAAP EPS of $1 21.

Joe: Per diluted share.

Joe: On to slide seven for our current capital forecast.

Joe: Our plan for 2024 remains on track, including progress on the comfortable and CCI battery project as well as our transmission and base system investments.

Joe: The ongoing RFP is moving ahead as we seek additional resources to serve customer growth and made progress on our clean energy targets.

Joe: Bid submissions will conclude in April and we will then move to the evaluation and scoring fees as selection criteria continue to focus on lease cost and least risk.

Joe: Submission of the short list for acknowledgment by the <unk> is expected in early Q3 and bid selection is anticipated in the third or fourth quarter. We will keep you updated as the RFP.

Joe: As we've noted previously the figures and our capital plans do not include any potential forthcoming RFP projects.

Joseph R. Trpik: And lastly, a $0.13 decrease to GAAP EPS resulting from the 20% portion of non-recoverable January storm RCE costs, bringing us to a GAAP EPS of $1.08 per diluted share. After adjusting for this 13 cent impact, we reach our Q1 2024 non-GAAP EPS of $1.21 for being the chair. On to slide seven for our current capital four. Our plan for 2024 remains on track, including progress on the Constable and Seaside Battery Project, as well as our transmission and base system investment.

Joe: Turning to slide eight for a summary of the 2025 general rate case filed in late February.

Joe: This filing is largely focused on the recovery of our incoming battery storage projects.

Joe: Continued system investments for reliability resiliency and grid modernization.

Joe: A procedural schedule has been posted for the rate review docket, and we look forward to engaging stakeholders at upcoming settlement discussions.

Joe: First beginning next week.

Joe: Review of the filing will continue through the year and all items remains subject to PUC approval, new customer rates are anticipated at the beginning of 2025.

Joe: On to slide nine for a summary of our liquidity and financing.

Joe: Total available liquidity at March 31 is $1 1 billion.

Joe: Our investment grade credit ratings.

Joe: Okay outlook and balance sheet strength remains static since our last disclosure.

Joe: In late February we executed $450 million in long term debt issuances and in March we drew $78 million previously priced under our ATM program.

Joseph R. Trpik: The ongoing RFP is moving ahead as we seek additional resources to serve customer growth and make progress on our clean energy target. Bid submissions will conclude in April, and we will then move to the evaluation and scoring phase as selection criteria continue to focus on least cost and least risk.

Joe: On rate base investments.

Joe: The ATM continues to provide adequate capacity and flexibility to support our ongoing base capital plan and our access to both equity and debt capital markets remained strong.

Joe: Capital structure maintenance careful dilution management and capital deployment for accretive rate based investments remain the pillars of our financial strength.

Joe: We continue we will continue to calibrate our approach as investment opportunities evolve, including from the RFP and we will keep you informed as we proceed.

Joseph R. Trpik: Submission of a short list for acknowledgement by the OPUC is expected in early Q3 and bid selection is anticipated in the third or fourth quarter. We will keep you updated as the RFP progresses. As we noted previously, the figures in our capital plan do not include any potential forthcoming RFP projects.

Joe: Reflecting on Q1.

Joe: Our results represent a solid step forward in our long term growth trajectory.

Joe: This plan is underpinned by a continued focus on operational efficiency.

Joe: Full cost management and strategic capital investments.

Joe: The strength of our region highlighted by the continued load growth expectations I noted earlier as well as our focus on consistent execution and performance gives us confidence in our performance for the year and beyond.

Joseph R. Trpik: Turning to slide 8, this filing is largely focused on the recovery of our incoming battery storage project and continued system investments for reliability, resiliency, and grid modernization. A procedural schedule has been posted for the rate review docket, and we look forward to engaging stakeholders at upcoming settlement discussions, the first beginning next week. Review of the filing will continue through the year, and all items remain subject to OPUC approval.

Joe: As such we are reaffirming our 2024 adjusted guidance of $2 98 to $3 18 per share and our long term earnings and dividend growth guidance.

Joe: Two 7%.

Joe: Regarding dividends, we recently announced a 10% annual dividend increases in line with our targeted growth range, and our 60% to 70% payout ratio target.

Joe: As we turn to the balance of 2024, we remain centered on our strategic plan that will deliver results and value for our customers shareholders and the communities we serve.

Speaker Change: And now operator, we're ready for questions.

Speaker Change: Thank you.

Speaker Change: As a reminder to ask a question you will need to press star one on your telephone.

Joseph R. Trpik: New customer rates are anticipated at the beginning of 2025. Now on to slide nine for a summary of our liquidity and financing. Total available liquidity at March 31 is $1.1 billion; our investment grade credit rating, stable credit outlook, and balance sheet strength remain static since our last disclosure. In late February, we executed $450 million in long-term debt issuances, and in March, we drew $78 million previously priced under our ATM program, focused on rate-based investing. The ATM continues to provide adequate capacity and flexibility to support our ongoing base capital, and our access to both equity and debt capital markets remains strong.

Speaker Change: A question. Please press star one again, please wait for your name to be announced please standby, while we compile the Q&A roster.

Speaker Change: Our first question comes from the line of Richard Sunderland with Jpmorgan. Your line is now open.

Richard Wallace Sunderland: Hi, Good morning can you hear me.

Richard Wallace Sunderland: Yes, we can.

Richard Wallace Sunderland: Great. Thank you for the time today.

Richard Wallace Sunderland: Appreciate the color on the RFP process I'm curious as the projects come through at the pace, you expect what could that potential equity need be.

Richard Wallace Sunderland: And just for comparison sake, how should we think about that equity versus equity for the base plan as it stands today.

Richard Wallace Sunderland: Sure. Let me have Joe talk to you about our financing plans and how we have reflected them.

Joe: But overall with the RFP process, we expect a really robust pipeline of renewable and capacity projects.

Speaker Change: We should probably have.

Joseph R. Trpik: Capital Structure Maintenance, Careful Dilution Management, and Capital Deployment for Accretive Rate-Based Investments remain the pillars of our financial strategy. We continue to, and we will continue to calibrate our approach as investment opportunities evolve, including from the RFP, and we will keep you informed as we pursue, Reflecting on Q1. Our results represent a solid step forward in our long-term growth trajectory. This plan is underpinned by our continued focus on operational efficiency, thoughtful cost management, and strategic capital investment.

Speaker Change: Good short listed as well as.

Joe: So the conclusions around the second late second quarter, beginning of the third quarter, and we would hope to be able to have contracts executed towards the end of the year, maybe even spilling into the first quarter.

Speaker Change: Joe with regards to equity.

Joe: Good morning, Richard.

Joe: As it relates to equity any equity need coming from the RFP would be incremental to our plan.

Joe: And we have said that we expect to finance that in both a.

Joe: Dilution management approach matching the cash flows to the needs as well as as possible as well as maintaining a 50 50 cap structure balance.

Joe: As it relates to pricing.

Joe: We will we will wait and see how the sizes out I mean, I think our our guidance that we are I am sorry, our illustrious presentation that we gave on rate base growth.

Joseph R. Trpik: The strength of our region, highlighted by the continued low growth expectations I noted earlier, as well as our focus on consistent execution and performance, gives us confidence in our performance for the year and beyond. As such, we are reaffirming our 2024 adjusted guidance of $2.98 to $3.18 per share and our long-term earnings and dividend growth guidance of 5% to 7%. Regarding dividends, we recently announced a $0.10 annual dividend increase in line with our targeted growth rate and our 60 to 70 percent payout ratio target.

Joe: Our investor deck is probably our best proxy to build off of as it relates to.

Joe: Two equity units.

Speaker Change: <unk> comment we do.

Speaker Change: We anticipate a pretty active RFP process and timing wise and cash flow like as you think about it we are looking for projects that are able to come online by the end of 2027 that also aligns with what is our our preferred portfolio.

Speaker Change: Okay understood. Thanks for the color there and then turning to the rate case I appreciate its early but how has the process unfolding so far.

I'm, hoping you can frame the revenue ask here versus the prior few cases thinking across size and composition of capital O&M and power and then given this follows last year's case.

Operator: As we turn to the balance of 2024, we remain centered on our strategic plan that will deliver results and value for our customers, shareholders, and the communities we serve. And now, operator, we are ready for questions. Thank you. As a reminder, to ask a question, you'll need to press star 1-1 on your telephone. To withdraw your question, please press star 1-1 again.

Settlement.

Speaker Change: Expected outcome here, how should we think about that.

So sure I'll I'll start us off on the on the rate case so.

The rate case focus that we have this case is mainly about capital. So I would think of it as a 65% of this KC capital and then 25% O&M and 10% for our power costs. This is a change from our last case, our last case upon ultimate settlement.

Over half of the case was power costs. So we really look at this this cases, making sure that we're as efficient as possible and really looking for recovery of putting these assets in service, including the battery projects that we've talked about that really drive benefits for the customer.

Operator: Please wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from the line of Richard Sunderland with J.P. Morgan. Your line is now open. Hi, good morning. Can you hear me?

Speaker Change: And then as it relates to suddenly the settlement processes.

Operator: Yes, we can. Great, thank you for your time today. You know, I appreciate the color on the RFP process. I'm curious if the projects come through at the pace you expect, what could that potential equity need be? And just for comparison's sake, how should we think about that equity versus equity for the base plan as it stands today? Sure, let me have Joe talk to you about our financing plans and how we've reflected them.

Speaker Change: Starting next week as I mentioned previously.

Speaker Change: And we hope to get aligned with with parties to be able to settle but each case stands on its own.

Speaker Change: And we just we hope to have a pretty open and productive dialogue with with all interested parties studies.

Speaker Change: Okay got it that's I'll leave it there for now thank you very much for the time.

Speaker Change: Thank you. Thank you one moment for your next question.

Speaker Change: Our next question comes from the line of Sharper Raza with Guggenheim Partners. Your line is now open.

Sharper Raza: Hey, guys.

Operator: But overall, with the RFC process, we expect a really robust pipeline of renewable and capacity projects. We should probably have a good short list as well as some conclusions around the late second quarter, beginning of the third quarter, and we would hope to be able to have contracts executed towards the end of the year, maybe even spilling into the first quarter. Joe with regard to equity. Good morning, Richard.

Sharper Raza: Good morning, Brian.

Sharper Raza: No. This is this is this year has a kind of a shorter session for the legislature can you give us any updates on efforts around maybe a state wildfire fund and what the groundwork if any it looks like for the longer legislative session. Ed I mean, given what you know today is this something you could see get done by <unk>.

Sharper Raza: 25.

Sharper Raza: Sure.

Ed: We are working on solutions.

Ed: Solutions, both at the state and the federal level.

Maria MacGregor Pope: You know, as it relates to equity, any equity need coming from the RFP would be incremental to our plan, and we have said that we expect to finance that in both a solution management approach matching the cash flows to the needs as closely as possible, as well as maintaining a 50-50 cap structure balance. As it relates to pricing, we will wait and see how this sizes out.

Ed: And on the state side, we have been talking with a number of parties.

From the horse organization.

Ed: Two representatives senators.

Ed: To our customers.

And two leadership across the entire state clearly.

Ed: Wildfires, a societal risk and we want to address it from a societal.

Joseph R. Trpik: I mean, I think our guidance that we are, sorry, our illustrious presentation that we give on rate-based growth in our investor deck is probably our best proxy to build off of as it relates to equity. To Maria's comment, you know, we do anticipate a pretty active RFP process, and timing wise and cash flow wise, as you think about it, we are looking for projects that are able to come online by the end of 2027 that also align with what is our preferred portfolio. Okay, I understand. Thank you for the color there.

Ed: So as a solution not just one totally focused on the utility, but a broad set of solutions that really works for Oregon, and then also on the federal side Theres a lot of discussions taking place from how our forest lands are managed nationally to the U S Forest service and the Bureau of land management.

Ed: To also ensuring that not only utilities to have access to insurance auto homeowners and others.

Ed: This area is combined with all of the operational work that we're doing the very important operational work we're doing.

Ed: As our number one priority to keep our customers and the communities that we serve.

Joseph R. Trpik: And then it turns to the rate case. Appreciate it's early, but how is the process unfolding so far? I'm hoping you can frame the revenue ask here versus the prior few cases in thinking across size and composition of, say, capital O&M and power. And then, given this follows last year's case, is settlement the expected outcome here? How should we think about that?

Speaker Change: Got it perfect perfect perfect perfect. Thank you for that and then just on power cost I mean, you had a substantial deferral during the storms in January and the Mtbc's otherwise kind of below the baseline can you remind us is there a cap on the amount you could defer under the <unk> construct.

We just I guess can we just put a finer point on what you saw during the event and how it interacts with the <unk>.

Joseph R. Trpik: So, sure, I'll start us off on the rate case. So, the rate case focus that we have in this case is mainly about capital. So, I would think of it as 65% of this case is capital and then 25% O&M and 10% for our power costs. This is a change from our last case. In our last case, upon ultimate settlement, over half of the case was power costs.

Speaker Change: And then secondly, how are things hydro snowpack looking for the summer peak. Thanks.

Speaker Change: Sure. So let me take the first one in terms of the conditions. During the January period of time, it was really extraordinary.

Speaker Change: Early on the <unk>.

Speaker Change: January events, Alberta came very close to a true energy crisis and that spilled over into the Pacific Northwest.

Operator: So we really look at this case as making sure that we're as efficient as possible and really looking for recovery of the cost of putting these assets in service, including the battery projects that we've talked about that really drive benefits for the customer. And then, as it relates to settlement, the settlement processes will start next week, as I mentioned previously, and we hope to get aligned with parties to be able to settle.

Speaker Change: Later on.

Speaker Change: Days later.

Speaker Change: A major storage facility.

Speaker Change: In the Pacific Northwest came offline and so generators throughout the entire region scrambled, we maximize energy flows coming in from the desert southwest and California, but we hit a number of transmission constraint.

Speaker Change: And we also brought in.

Speaker Change: Higher levels of Colorado, British Columbia.

Speaker Change: Most of that was hydro based.

Speaker Change: What we have seen is that our experience with not too different from some other large investor owned utilities.

Operator: But each case stands on its own, and we hope to have a pretty open and productive dialogue with all interested parties. Okay, got it. I'll leave it there for now. Thank you very much for your time.

Speaker Change: Two RC.

Speaker Change: Mechanisms, we are able to defer 20% excuse me.

Speaker Change: We were able to defer 80% and then we retained 20% was closed through the <unk> mechanism.

Operator: Thank you. Thank you. One moment for our very next question. Our next question comes from the line of Shahriar Pourreza with Guggenheim Partners. Your line is now open. Hey guys. Good morning, Maria.

There is no cap on that and we are overall really focused on managing our costs, we've seen them come up quite significantly.

Speaker Change: Big issue for us as well as for others.

Speaker Change: With regards to hydro conditions, there are pretty similar to where they were last year. Obviously, we're in the spring time, and so we will see hydro pick up in the second quarter and quite frankly, we have stronger flows expected in the first quarter.

Operator: Maria, I know this year has a kind of shorter session for the legislature. Can you give us any updates on efforts around maybe a state wildfire fund and what the groundwork, if any, looks like for the longer legislative session ahead? I mean, given what you know today, is this something you could see get done by 25?

Speaker Change: As you look towards the summertime there is very little snow pack in Canada and in British Columbia in particular, where most of our hydro comes and what drives the market price of power through the recent so even though you've seen year to year similarities I think we're setting up for a very tough tower.

Maria MacGregor Pope: Sure. We are working on legislative solutions at both the state and the federal level. And on the state side, we have been talking with a number of parties, from the horse organization, to representatives and senators, to our customers, and to leadership across the entire state. Clearly, wildfire is a societal risk, and we want to address it from a societal solution, not just one that is solely focused on the utility but a broad set of solutions that really works for Oregon.

Speaker Change: <unk> stomach.

Speaker Change: Overall hydro throughout the entire region is about 80% of normal.

Speaker Change: Got it perfect. Thank you Larry I appreciate the color. Thanks, so much.

Speaker Change: Thank you one moment for our next question. Please.

Speaker Change: Next question comes from the line of Paul Fremont.

Maria MacGregor Pope: And then also on the federal side, there are a lot of discussions taking place, from how our forest lands are managed nationally through the U.S. Forest Service and the Bureau of Land Management to also ensuring that not only utilities have access to insurance, but also homeowners and others. This area, combined with all of the operational work that we're doing, the very important operational work that we're doing, is our number one priority to keep our customers and the communities that we serve safe. I got it. Perfect, perfect, perfect, perfect.

Paul Fremont: Ladenburg Thalmann. Your line is now open.

Paul Fremont: Alright.

Paul Fremont: Thank you very much.

Paul Fremont: I guess my first question has to do with some of the demand that youre seeing on the datacenter side.

Paul Fremont: Is that demand fully at this point incorporated into the <unk> that you filed or do you see sort of incremental demand above what youre projecting.

Speaker Change: Sure. So as you know we did our first ever.

Speaker Change: Plan and follow on <unk>.

Maria MacGregor Pope: Thank you for that. And then, just on power cost, I mean, you had a substantial deferral during the storms in January, and the NVPC is otherwise kind of below the baseline. Can you remind us, is there a cap on the amount you could defer under the RCE construct? Can we just, I guess, can we just put a finer point on what you saw during the event and how it interacts with the NVPC?

Speaker Change: Last year.

Speaker Change: This about this time last year.

Speaker Change: We filed a supplemental.

Speaker Change: To that end took up the energy demand.

Speaker Change: Out 40% from what we were projecting previously after you look at.

The efficiency of combined technologies and what we were seeing in some of the new deployments that we have as well as how we're using the distribution system more effectively.

Maria MacGregor Pope: And then secondly, how are things, you know, hydro, snowpack, looking for the summer peak? Thanks. Sure. So let me take the first one in terms of the conditions during the January period of time. It was really extraordinary.

Speaker Change: That came down to about 14% overall.

Speaker Change: 40% increase in demand is a huge.

Speaker Change: Increase and it's certainly got everybody's attention and I think that is absolutely what we're going to be probably it's a floor on what we'll see as we move forward just for perspective of our industrial customer base about 20%.

Maria MacGregor Pope: Early on in the January event, Alberta came very close to a true energy crisis, and that spilled over into the Pacific Northwest. Later on, a couple days later, a major storage facility in the Pacific Northwest went offline. And so generators throughout the entire region scrambled. We maximized energy flows coming in from the desert southwest and California, but we hit a number of transmission constraints, and we also brought in much higher levels of power out of British Columbia. Most of that was hydro-based.

Speaker Change: Our digital data center type customers.

Speaker Change: Bulk of our industrial base is actually semiconductors.

Speaker Change: And about 15% of semiconductors in the U S are actually manufactured in our service territory and most recently the state of Oregon.

Created a.

Speaker Change: Matching funds to the chipset, so about 240 $250 million and 85% of the allocation of those funds because of specific companies or companies, who have operations in our service territory, So we and you'd growth from not only from data centers.

Maria MacGregor Pope: What we have seen is that our experience was not too different from some other large investor-owned utilities' experiences. We are able to defer 20%, excuse me, we're able to defer 80%. And then 20% was retained through the PCAM mechanism. There is no cap on that, and we are overall really focused on managing power costs. We've seen them come up quite significantly, a big issue for us as well as for others. With regard to hydro conditions, they're pretty similar to where they were last year.

Speaker Change: Also from semiconductor manufacturers through the next decade that we'll probably only get higher not lower.

Speaker Change: Hi.

Speaker Change: Great.

Speaker Change: And then I guess.

Speaker Change: The most likely period, if you were to settle.

Speaker Change: In the rate case.

Maria MacGregor Pope: Obviously, we're in springtime, and so we'll see hydro pick up in the second quarter. And quite frankly, we had stronger flows than we expected in the first quarter. As you look towards the summertime, there is very little snowpack in Canada and, in British Columbia, in particular, where most of our hydro comes from and what drives the market price of power through the region. So, even though you see year-to-year similarities, I think we're setting up for a very tough power cost summer. Overall, hydroelectric power throughout the entire region is about 80%.

Speaker Change: Would that be before hearings.

Speaker Change: No I would imagine that we'll probably have a number of discussions and workshops.

Speaker Change: With staff and parties.

Speaker Change: We try and settle before we ever get to.

Speaker Change: Commission order or whatnot.

Speaker Change: We generally are pretty collaborative state as we work through issues.

Obviously.

Speaker Change: Customer prices has always been and will continue to be a major focus for us and we've had some pretty big increases for these conversations are going to be a challenge.

Speaker Change: And then last question for me can.

Can you just reiterate in terms of M&A.

Operator: Got it. Perfect. Thank you, Maria. I appreciate the color.

Speaker Change: Weather.

Operator: Thanks so much. We'll see you soon. Thank you. One moment for our next question, please. Our next question comes from the line of Paul Fremont from Gladdenburg, Thalman. Your line is now open. Thank you very much.

Speaker Change: What the company would be open to or not open to in the future potentially.

Speaker Change: Sure as you know, we don't comment on any sorts of discussions along those lines.

Speaker Change: And we're not changing our policy.

Operator: I guess my first question has to do with some of the demand that you're seeing on the data center side. Does that demand, at this point, fully incorporated into the IRPs that you filed? Or, you know, do you see sort of incremental demand above what you're seeing? Sure. So, as you know, we did our first ever plan and follow-on IRP last year. About this time last year, we filed a Supplement to that and took up the energy demand by about 40% from what we were projecting previously.

Speaker Change: Great I think thats it from me. Thank you.

Thank you.

Speaker Change: One moment for our next question please.

Speaker Change: Our next question comes from the line of Gregg <unk> with UBS. Your line is now open.

Gregg: Alright, great yes, good morning, Thank you.

Gregg: So.

Back to the drivers for the <unk> for the quarter.

Gregg: There was.

Gregg: The management of power cost wood.

Gregg: <unk>.

Gregg: Was the 17th.

Gregg: Benefit how does that.

Gregg: Flow through or the P chem or where is where does the <unk> stand.

Operator: After you look at the efficiency of combined technologies and what we're seeing in some of the new deployments that we have, as well as how we're using the distribution system more effectively, that came down to about 14% overall, but a 40% increase in demand is a huge increase, and it certainly got everybody's attention. I think that it's absolutely what we're going to be, probably the floor on what we'll see as we move forward.

Gregg: Good morning, Greg This is Joseph.

Gregg: Yes.

Joseph: I recall the pecan.

Joseph: A dead band and asymmetric dead band of $50 million below before.

Joseph: A sharing calculation is done under $30 million above where we sit currently so during the quarter really what we saw was.

Joseph: They're pretty productive magnitude of cost and it also a stable market.

Operator: Just for perspective of our industrial customer base, about 20% of our digital data center tech customers, the real bulk of our industrial base is actually semiconductors. And about 15% of semiconductors in the U.S. are actually manufactured in our service territory. And most recently, the state of Oregon created a matching fund for the CHIPS Act, about $240, $250 million.

Joseph: Didn't see the volatility that we've seen in prior periods.

Joseph: Gas prices and things like that so.

We see currently is we are $19 million below the <unk> baseline currently now part of that is due to the shaping of the way that the.

Joseph: Rates are set you automatically adjustment tariffs as as it as it goes through the year, we've disclosed in the 10-Q that we think will be somewhere around.

Joseph: <unk>.

The edge of the baseline by the end of the year, but we do see that $19 million favorable baseline correctly.

Maria MacGregor Pope: And 85% of the allocation of those funds, which goes to specific companies, are companies who have operations in our service territory. So, we see continued growth from not only data centers but also from semiconductor manufacturers through the next decade that will probably only get higher, not lower. Great. And I guess, uh, the most likely period, if you were to settle, in the rate case, would that be before hearings?

Speaker Change: Okay. Thanks, Joe.

Speaker Change: Thank you as a reminder to ask a question you will need to press star one on your telephone and please wait for your name to be announced one moment for our next question.

Speaker Change: Yes.

Speaker Change: Our next question comes from the line of Grainger with Mizuho Securities. Your line is now open.

Grainger: Hi, good morning, everybody.

Grainger: Maybe last one if you can unpack for us a little bit understand those two buckets with costs associated with the January storms, you have the $75 million our CE.

Maria MacGregor Pope: No, I would imagine that we'll probably have a number of discussions and workshops with staff and parties. We try and settle before we ever get to, you know, a commission or order or whatnot. It's, you know, we generally are pretty collaborative as we work through issues. Obviously, customer prices have always been and will continue to be a major focus for us, and we've had some pretty big increases. So these conversations are going to be a challenge.

Grainger: With the RSV event, and then a separate 48 million could you maybe talk to how you're thinking about the timing of the recovery of those dollars.

Grainger: Sure.

Speaker Change: Good morning.

Speaker Change: The reason that they are separate like that and I will talk to you as they are recovered under two different regulatory mechanisms that they are covered on the I'll start with this.

Speaker Change: The $75 million deferral to $75 million deferral is is a <unk> deferral under the pecan as it relates the timing that recovery will be assessed in a process that will go through mid 2025.

Maria MacGregor Pope: And then last question for me, can you just reiterate, you know, in terms of M&A, whether the company would be open to or not open to in the future, potentially? Sure. As you know, we don't comment on any sorts of discussions along those lines. And we're not changing our policy. Okay. I think that's it for me.

Speaker Change: And we would expect currently that the recovery of whatever amount is settled in that process, which started in 2026 and the reason I say expect the RC mechanism is new in the methods will be part of the recovery will be part of that discussion.

Speaker Change: Separately, we incurred $48 million in O&M and capital cost as it related to the the physical restoration of the system during that storm period.

Operator: Thank you. Thank you. One moment for our next question. Our next question comes from the line of Gregg Orrill with UBS. Your line is now open. Good morning, Gregg.

Speaker Change: In Oregon, there are our provisions that allow for the recovery of those costs. When a state of emergency is declared and theres such damage that proceeding has started and that sort of that that cost proceeding has started but it.

Operator: Yes, good morning. Thank you. So, back to the drivers for the quarter, there was, you know, the management of power costs, which was a 17 cent benefit. How does that flow through the PCAM, or where does the PCAM stand? Morning, Gregg. This is Joe Trpik.

Speaker Change: The timeline is not set so there is a filing made there's a timeline on underway.

Speaker Change: If I had to put an expectation at some period in 2025 once its settled there would be recovery, but right now there's not a stay close date for the proceeding for me to be able to say what date that recovery would occur nor do we have until the preceding and with the time period of that recovery could be it could be a short period or uptick several.

Joseph R. Trpik: You know, as you may recall, the PCAM has an dead band, an asymmetric dead band of $15 million below before a sharing calculation is done, or $30 million above. Where we sit currently, so during the quarter, really, what we saw was, you know, pretty productive cost management and also a stable market. You know, we didn't see the volatility that we had seen in prior periods on gas prices and things like that.

Speaker Change: Based on what decisions.

Speaker Change: I.

Speaker Change: We shape the color and then maybe one more on the extended day ahead market proposal.

Speaker Change: Join the Cal ISO.

Speaker Change: Would that allow you to get any sort of FERC at Roe or any sort of incremental transmission build too because of the capital plan and maybe how should we be thinking about that thank you.

Speaker Change: Yes, that's a good question no it would not.

Speaker Change: It does.

Joseph R. Trpik: So where we sit currently is $19 million below the PCAM baseline currently. Now, part of that is due to the shaping of the way that rates are set in the automatic adjustment tariff as it goes through the year. You know, we've disclosed in the 10-Q that we think we'll be somewhere around, you know, the edge of the baseline by the end of the year. But we do sit at that $19 million stable at the baseline currently.

Speaker Change: It's a part of an ISO there is no <unk>.

Speaker Change: In the west and we're probably quite a ways off from that if we ever do get to NRG L.

Speaker Change: It allows us to move from the energy imbalance market, which is essentially a real time market to the day ahead and there is some pretty significant customer benefits.

Speaker Change: That we'll realize from that but also some important operational benefits as we maximize.

Operator: OK, thanks, Joe. Thank you. As a reminder, to ask a question, you'll need to press star 11 on your telephone, and please wait for your name to be announced.

Speaker Change: The diverse renewable resources from the desert southwest and extensive solar.

Speaker Change: To that.

Operator: One moment for our next question, which comes from the line of Willett Granger with Mizuho Securities. Your line is now open. Hi, good morning, everybody. Maybe just one, if you can unpack for us a little bit, understand there are two buckets with costs associated with the January storm. You have the $75 million RCE associated with the RCE event and then a separate $48 million. Could you maybe talk about how you're thinking about the timing of the recovery of those dollars? Sure. Good morning Willards. The reason that they are separate like that, and I'll talk to you about that, is that they are recovered under two different regulatory mechanisms that they're covered under.

Speaker Change: The Pacific Northwest Hydro and all of the wind energy in between so it allows for Julia.

Speaker Change: A more.

Planned full portfolio effect.

Speaker Change: Built upon the really good work that has already been done through the energy imbalance market.

Speaker Change: Great. Thank you.

Speaker Change: Thank you. Thank you.

Speaker Change: I'm currently showing no further questions at this time I'd like to hand, the conference back over to Maria Pope President and Chief Executive Officer for closing remarks.

Maria MacGregor Pope: Great. Thank you for joining us today, we appreciate your interest in Portland General and we look forward to connecting with you soon thank you very much.

This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.

Joseph R. Trpik: I'll start with the $75 million deferral, which is an RCE contribution under the PCAM. As it relates to the timing, that recovery will be assessed in a process that will go through mid-2025, and we would expect currently that the recovery of whatever amount is settled in that process would start in 2026. The reason I say expect is that the RCE mechanism is new, and the methods of recovery will be part of that discussion.

Maria MacGregor Pope: [music].

Maria MacGregor Pope: Okay.

Maria MacGregor Pope: Yes.

Maria MacGregor Pope: [music].

Maria MacGregor Pope: Okay.

[music].

Maria MacGregor Pope: Sure.

Maria MacGregor Pope: [music].

Maria MacGregor Pope: Yes.

Maria MacGregor Pope: [music].

Joseph R. Trpik: Additionally, we incurred $48 million in O&M capital costs as related to the physical restoration of the system during that storm period. In Oregon, there are provisions that allow for the recovery of those costs when a state of emergency is declared and there is such damage.

Maria MacGregor Pope: Okay.

Maria MacGregor Pope: [music].

Joseph R. Trpik: That proceeding has started, and that cost proceeding has started, but the timeline is not set. So there's been a filing made. There's a timeline underway. If I had put an expectation at some period in 2025, once it's settled, there would be a recovery. Right now, there's not a set close date for the proceeding for me to be able to say what date that recovery would occur. Nor do we have until the proceeding ends to know what the time period of that recovery could be. It could be for a short period or up to several years, based on what decisions are taken.

Joseph R. Trpik: Appreciate the color. And then maybe one more, on the extended day ahead market proposal to join the Cal ISO, would that allow you to get any sort of BERC at, ROE at, or any sort of incremental transmission build to the capital plan? And maybe, how should we be thinking about that? Thank you. That's a good question. No, it would not.

Maria MacGregor Pope: It's a part of an ISO. There is no RTO in the West, and we're probably quite a ways off from that if we ever do get to an RTO. It allows us to move from the energy imbalance market, which is essentially a real-time market, to the day ahead. There are some pretty significant customer benefits that we'll realize from that, but also some important operational benefits as we maximize the diverse renewable resources from the desert Southwest and extensive solar to the Pacific Northwest hydro and all of the wind energy in between. It allows for a more planned portfolio effect, and it builds upon the really good work that has already been done through the energy imbalance market.

Operator: Great, thank you. Thank you. Thank you. I'm currently showing no further questions at this time.

Maria MacGregor Pope: I'd like to hand the conference back over to Maria Pope, President and Chief Executive Officer, for closing remarks. Great. Thank you for joining us today. We appreciate your interest in Portland General, and we look forward to connecting with you soon. Thank you very much.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.

Operator: ??? ??? ??? ??? ??? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Good morning, everyone, and welcome to Portland General Electric's Company's First Quarter 2024 Earnings Results Conference Call. Today is Friday, April 26, 2024. This call is being recorded, and as such, all lines have been placed on mute to prevent any background noise.

Nick White: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, you simply press star 1 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 1 again. If you do intend to ask a question, please avoid using the speakerphone. For opening remarks, I'll turn the call over to Portland General Electric's Manager of Investment Relations, Nick White. Please go ahead, sir.

Nick White: Thank you, Norma. Good morning, everyone. I'm happy you can join us today. Before we begin this morning, I would like to remind you that we have prepared a presentation to supplement our discussion, which we will be referencing throughout the call. The slides are available on our website at investors.portlandgeneral.com. Referring to slide two, some of our remarks this morning will constitute forward-looking statements. We caution you that such statements involve inherent risks and uncertainties, and actual results may differ materially from our expectations.

Nick White: For a description of some of the factors that could cause actual results to differ materially, please refer to our earnings press release and our most recent periodic reports on Form 10-K and 10-Q, which are available on our website. Turning to slide three, leading our discussion today are Maria Pope, President and CEO, and Joe Trpik, Senior Vice President of Finance and CFO. Following their prepared remarks, we will open the line for your questions. Now, it's my pleasure to turn the call over to Maria. Thank you, Nick. And good morning, everyone.

Maria MacGregor Pope: [music].

Maria MacGregor Pope: Thank you for joining us. Portland General Electric is on track in 2024, and the stage is set for steady, normalized growth. After tough weather and extensive customer restoration in January, our results this quarter speak to strong execution. Beginning with slide four, I'll speak to our financial results and key drivers. For the first quarter, we reported a net income of $109 million, or $1.08 per diluted share.

Maria MacGregor Pope: On a non-gap basis, net income was $123 million, or $1.21 per diluted share. This compares with first quarter 2023 gap net income of $74 million, or $0.80 per diluted share. First quarter 2024 gap results excluded the 20% non-recoverable cost of the reliability contingency event incurred in the January storm. Results this quarter, which Joe will discuss in his remarks, were driven by robust low growth from semiconductor and data center customers and our focus on operational execution. This focus was evident throughout the quarter and no more so than during the January storm.

Maria MacGregor Pope: Our PGE team members navigated regional resource constraints, gas network disruptions, and severe winter conditions that resulted in hundreds of thousands of customer outages. I'd like to again commend and thank my colleagues for their extraordinary work during this challenging event. As we look ahead to the balance of the year and beyond, we remain focused on three main areas. First, the rapid transformation of our energy system propelled by continued investment in our service territory by semiconductor and digital infrastructure customers.

Maria MacGregor Pope: After the Speakers' remarks, there'll be a question and answer session.

Maria MacGregor Pope: If you would like to ask a question. During this time simply press star one one on your telephone keypad. If you would like to withdraw your question. Please press star one again, if you do intend to ask a question. Please afford you the use of the speaker phone for opening remarks, I'll turn the call over to Portland General Electrics manager.

Maria MacGregor Pope: Of Investor Relations Nick White. Please go ahead Sir.

Nick White: Thank you Norma good morning, everyone I'm happy you can join us today.

Maria MacGregor Pope: Second, executing our capital plan to meet customers' priorities for clean energy and increased grid resilience. And third, delivering on our ongoing commitment to operational discipline by reducing risk, controlling cost, driving efficiency, and managing customer affordability. This is a period of rapid growth and transformation for both our energy system and our region. The robust growth of the semiconductor digital sectors will enable system-wide infrastructure and reliability investments. And we'll continue to engage our customers, regulators, and other stakeholders to ensure that this growth benefits all customers, industrial, commercial, and residential alike.

Nick White: Before we begin this morning, I would like to remind you that we've prepared a presentation to supplement our discussion, which we'll be referencing throughout the call. The slides are available.

Nick White: Available on our website at investors that Portland General Dotcom.

Nick White: Referring to slide two some of our remarks. This morning will constitute forward looking statements. We caution you that such statements involve inherent risks and uncertainties and actual results may differ materially from our expectations.

Nick White: For a description of some of the factors that could cause actual results to differ materially. Please refer to our earnings press release and our most recent periodic reports on Form 10-K, and 10-Q, which are available on our website.

Nick White: Turning to slide three leading our discussion today are Maria Pope President and CEO, and Joe <unk> Senior Vice President of Finance and CFO.

Maria MacGregor Pope: We continue to see significant residential transformation in our region as well, with strong growth in rooftop solar and electric vehicle adoption. Together, these changes are requiring us to think differently and innovate as we build and upgrade transmission and energy infrastructure on a scale reminiscent of when our industry first electrified the West. Moving to slide five, industrial growth. First, industrial load growth increased 4.9% compared to the first quarter last year. State and federal investments are bolstering semiconductor expansion in our service area. This quarter, Intel announced investments across four states, backed by $8.5 billion in federal funding. Intel expects that $36 billion will be spent in Hillsborough, Oregon, in the western part of our service territory.

Nick White: Following their prepared remarks, we will open the line for your questions now, it's my pleasure to turn the call over to Maria.

Maria MacGregor Pope: Thank you Nick and good morning, everyone. Thank you for joining us.

Maria MacGregor Pope: At Lynn General Electric is on track in 2024, and the stage is set for steady normalized well.

Maria MacGregor Pope: After a tough weather and extensive customer restoration in January our results this quarter speak to strong execution.

Maria MacGregor Pope: Beginning with slide four I'll speak to our financial results and key drivers.

Maria MacGregor Pope: For the first quarter, we reported GAAP net income of $109 million or $1 eight per diluted share on a non-GAAP basis net income was $123 million or $1 21 per diluted share. This compares with the first quarter of 2023, GAAP net income of $74 million or <unk> 87 per diluted share.

Maria MacGregor Pope: This is in addition to the significant semiconductor investments by analog devices, Microchip, and many others. This will drive economic growth for years to come, hoping to cement Oregon's Silicon Forest as the premier hub for semiconductor manufacturing, research, and development. These investments will have broad benefits across our region, strengthening our communities, creating jobs, providing workforce development, and higher education opportunities. Moreover, Oregon continues to reinforce its position as a hub for the digital infrastructure that underpins our global economic growth fueled by generative AI. A recent study by Cushman and Wakefield ranked Oregon as the fifth largest data center market nationally and 8 globally, with this mature digital ecosystem in our era.

Maria MacGregor Pope: First quarter 2024, GAAP results excluded the 20% non recoverable costs of the reliability contingency events.

Maria MacGregor Pope: In the January storm event.

Maria MacGregor Pope: Results this quarter, which John will discuss in his remarks were driven by robust loan growth from semiconductor and data center customers and our focus on operational execution.

Maria MacGregor Pope: This focus was evident throughout the quarter and no more so than during the January storms.

Maria MacGregor Pope: Our pega team members navigated regional resource constraint gas network disruptions severe winter.

Condition that resulted in hundreds of thousands of customer outages I'd like to again commend and thank my colleagues for their extraordinary work during this challenging of that.

Maria MacGregor Pope: We've been fortunate to enable growth, observe emerging trends, and plan accordingly. Last year, as part of our combined clean energy and integrated resource plan, we increased our expectations for industrial energy usage in our service territory by over 40 percent, anticipating the rapid growth that we are seeing today. Additionally, these plans emphasize the need for expanded transmission investment, which we highlighted in our recent capital plan update.

Maria MacGregor Pope: As we look ahead to the balance of the year and beyond we remain focused on three main areas.

Maria MacGregor Pope: First <unk>.

Maria MacGregor Pope: Rapid transformation of our energy system propelled by continued investments in our service territory by semiconductor and digital infrastructure customer.

Maria MacGregor Pope: Second.

Maria MacGregor Pope: Executing our capital plan to meet customers' priorities for clean energy and increased grid resiliency.

Maria MacGregor Pope: And third delivering on our ongoing commitment to operational discipline by reducing risks controlling costs driving efficiencies and managing customer affordability.

Maria MacGregor Pope: As industry continues to reshore and expand, we recognize the importance of electric infrastructure, such as Clean Energy Supply, and reflecting our region's focus on sustainability, economic security, and transformative opportunities for our next generation. Capital Plan Execution, the ambition and clean energy goals of our company, underscore the importance of Portland General Electric's commitment to transform our energy system, to pursue clean energy resources, expand transmission, and invest in grid resilience. These investments not only position us for long-term growth but also create significant benefits for all.

Maria MacGregor Pope: This is a period of rapid growth and transformation for both our energy system and our region.

Maria MacGregor Pope: The robust growth of the semiconductor and digital sectors.

Maria MacGregor Pope: Sectors will enable systemwide infrastructure and reliability investments.

Maria MacGregor Pope: And we will continue to engage our customers regulators and other stakeholders to ensure that this benefit is growth benefits all customers.

Maria MacGregor Pope: Industrial commercial and residential.

Maria MacGregor Pope: We continue to see significant residential transformation in our region as well with strong growth of rooftop solar and electric vehicle adoption.

Maria MacGregor Pope: Together these changes are requiring us to think differently and innovate.

Maria MacGregor Pope: Our generation, battery storage, and grid infrastructure projects are great examples. The forthcoming Comstable and Seaside Battery Storage Project play a critical role in matching variable renewable production with customer demand. The flexibility these batteries provide will allow us to navigate increasingly frequent and costly periods of power cost volatility.

Maria MacGregor Pope: We build upgrade transmission and energy infrastructure on a scale reminiscence of what our industry first electrified the west.

Maria MacGregor Pope: Moving to slide five indie.

Maria MacGregor Pope: Industrial growth.

Maria MacGregor Pope: First industrial load growth increased four 9% compared to the first quarter last year Dave.

Maria MacGregor Pope: State and federal investments are bolstering semiconductor expansion in our service area.

Maria MacGregor Pope: This quarter, Intel announced investments across four states.

Maria MacGregor Pope: Similarly, the clear water development that came online in January has allowed PGE to generate more wind energy than ever before and will lead to customer price reductions while providing important geographic resource diversity. We're also continuing to modernize and harden our grid, to accommodate emerging technologies and to improve resilience in the face of severe winter and summer weather. These investments on behalf of, from battery storage to grid modernization and resiliency projects, are at the center of our 2025 general rate plan, filed in February, which Joe will touch on shortly. Operational discipline.

Maria MacGregor Pope: By $8 5 billion in federal funding.

Maria MacGregor Pope: Intel expects the $36 billion will be spent in Hillsboro, Oregon, and the western part of our service territory.

This is in addition to the significant semiconductor investments by analog devices micro chip and many others.

This will drive economic growth for years to come helping to cement, Oregon Silicon for us as the premier hub for semiconductor manufacturing.

Maria MacGregor Pope: Research and development.

Maria MacGregor Pope: These investments will have a broad benefits across our region strengthening our communities creating job.

Maria MacGregor Pope: Providing workforce development and higher education opportunities.

Maria MacGregor Pope: Moreover, Oregon continues to reinforce its position as a hub for the digital infrastructure that underpins, our global economic growth fueled by generative AI.

Maria MacGregor Pope: As we advance critical investments to strengthen our system, affordability remains squarely in focus. This means finding opportunities to drive efficiencies and savings through power cost management and operations, and Mark. CIGI announced plans to join other Western utilities in the KISO Extended Day Ahead Market.

Maria MacGregor Pope: A recent study by Cushman and Wakefield ranked Oregon as the fifth largest data center market nationally.

Maria MacGregor Pope: And eight globally.

Maria MacGregor Pope: With this mature digital ecosystem in our area, we have been fortunate to enable growth.

Maria MacGregor Pope: EDAM offers us a larger operational footprint that will enhance reliability and help alleviate power cost pressure on the operational level. CGE teams are deploying technology to prioritize work, optimize business processes, and focus on key risks like cybersecurity and wildfire mitigation, for example. As we progress through our year-round wildfire program, we are enhancing our vegetation management and investing in System Hardening, Situational Awareness, and Operational Practice. This includes AI-equipped cameras, weather stations, re-closers, fire mesh pole wraps, and early fall detection.

Maria MacGregor Pope: Observed emerging trends and plan accordingly.

Maria MacGregor Pope: Last year as part of our combined clean energy and integrated resource plan, we increased our expectation for industrial energy usage in our service territory by over 40%.

Maria MacGregor Pope: Anticipating the rapid growth that we're seeing today.

Maria MacGregor Pope: Additionally, these plans emphasize the need for expanded transmission investment, which we highlighted in our recent capital plan update.

As industry continues to reinsure and expand.

Maria MacGregor Pope: Recognize the importance of electric infrastructure clean energy supply and reflecting our region's focus on sustainability.

Maria MacGregor Pope: As we look ahead, we have a solid first quarter, and we are focused on execution and delivering on expectations. Our plans are exciting, achievable, and we're going to get it done. With that, I'll turn it over to Joe, who will walk us through our financial results in more detail. Thank you, Maria, and good morning, everyone. Turning to slide 6, our Q1 results reflect continued demand growth from industrial customers, dynamic weather, and ongoing efforts to de-risk our operations. Weather in our area was variable throughout the quarter, with colder conditions in January, followed by more mild conditions in February and March.

Maria MacGregor Pope: Economic security and transformative operational opportunities.

Maria MacGregor Pope: For our next generation.

Maria MacGregor Pope: Capital plan execution.

Maria MacGregor Pope: The ambition and clean energy goals of our customers underscore the importance of Portland General Electric's commitment to transform our energy systems.

Maria MacGregor Pope: To pursue clean energy resources, and expand transmission and invest in grid resilience.

Maria MacGregor Pope: These investments not only position us for long term growth.

Maria MacGregor Pope: Also create significant benefits for all customers.

Maria MacGregor Pope: Our generation battery storage and grid infrastructure projects are great. Examples.

Maria MacGregor Pope: The forthcoming comfortable and <unk> battery storage projects.

Joseph R. Trpik: Overall, heating degree days for the quarter were 8.9% lower than in Q1 2023. Q1 2024 loads decreased by 0.9%, but they increased by 1.2% weather adjusted compared to Q1 2023. 2024 residential load decreased 3.6% year over year due to mild weather, but it increased by 0.5% weather adjusted. Residential customer accounts increased 1.3%, commercial load decreased 2.1%, for 1.3% weather adjusted, driven largely by lower commercial activity during the January winter storm

Maria MacGregor Pope: A critical role in matching variable renewable production with customer demand.

Maria MacGregor Pope: The flexibility. These batteries provides will allow us to navigate increasingly frequent and costly periods of power cost volatility.

Maria MacGregor Pope: Similarly, the Clearwater development that came online in January has allowed PGE to generate more wind energy than ever before.

Maria MacGregor Pope: And we will lead to customer price reductions, while providing important geographic resource diversity.

Maria MacGregor Pope: We're also continuing to modernize and hardened grid.

Maria MacGregor Pope: To accommodate emerging technology and to improve resilience in the face of severe winter and summer weather.

These investments on behalf of customers from battery storage to grid modernization and resiliency projects are at the center of our 2025 general rate case.

Joseph R. Trpik: The industrial class sustained its momentum, with load increasing 4.9% or 5.2% with weather adjustment. Demand growth for digital and semiconductor customers supports this growth trend reinforced by the ongoing investment in Maria Hiley. We maintain good visibility into our robust pipeline of incoming projects and remain confident in the strength of our service territory. Given these factors, we are reiterating our 2024 weather-adjusted load growth guidance of 2% to 3% and our long-term growth guidance of 2% through 2027. I'll now cover our financial performance quarter over quarter. We observed a 3-cent decrease in revenues primarily due to weather-driven decreases in delivery.

Maria MacGregor Pope: In February which Joe will touch on shortly.

Maria MacGregor Pope: Operational discipline.

Maria MacGregor Pope: As we examine critical investments to strengthen our system affordability remains squarely in focus.

Maria MacGregor Pope: This means finding opportunities to drive efficiencies and savings through power cost management and operational discipline.

Maria MacGregor Pope: In March <unk>.

Maria MacGregor Pope: <unk> announced plans to join other western utilities, and the queso extended day ahead market.

Maria MacGregor Pope: EDAM offers us a larger operational footprint.

Maria MacGregor Pope: That will enhance reliability and help alleviate power cost pressure.

Maria MacGregor Pope: On the operational front.

Maria MacGregor Pope: The teams are deploying technology to prioritize work optimize business processes and focus on key risks like cyber security and wildfire mitigation.

Joseph R. Trpik: An $0.18 increase resulting from the right sizing of our cost structure, an improved recovery of wildfire mitigation, vegetation management, other O&M, and capital assets serving customers. Power costs drove a $0.30 increase in EPS driven by a $0.13 EPS increase due to power cost detriments in Q1 2023 that reversed for this comparison, and a $0.17 increase in EPS from lower power costs than anticipated in the annual update paragraph driven by de-risking actions taken throughout the quarter. We had a 4 cent decrease in other items, including the dilutive impacts of recent equity draws, lower regulatory program interest, and higher property tax, partially offset by higher AFUDC and lower incompatibility, generally from PQC.

Maria MacGregor Pope: For example.

Maria MacGregor Pope: As we progress through our year round wildfire program, we are enhancing our vegetation management and investing in system hardening situational awareness and operational practices.

Maria MacGregor Pope: This includes AI quipped cameras weather stations re closers.

Maria MacGregor Pope: Buyer mesh pull ramp and early fall detection.

Maria MacGregor Pope: As we look ahead.

Maria MacGregor Pope: We have a solid first quarter.

Maria MacGregor Pope: And we are focused on execution and delivering on expectations.

Maria MacGregor Pope: Our plants are exciting.

Feasible and we're going to get it done.

Maria MacGregor Pope: With that I'll turn it over to Joe who will walk us through our financial results in more detail. Thank you.

Joe: Thank you Maria and good morning, everyone.

Joseph R. Trpik: And lastly, a $0.13 decrease to GAAP EPS resulting from the 20% portion of non-recoverable January storm RCE costs, bringing us to a GAAP EPS of $1.08 per diluted share. After adjusting for this 13 cent impact, we reach our Q1 2024 non-gap EPS of $1.21 for being the chair. On to slide seven for our current capital forecast. Our plan for 2024 remains on track, including progress on the Constable and Seaside Battery Project, as well as our Transmission and Base System Investments.

Joe: Turning to slide six our Q1 results reflect continued demand growth from industrial customers.

Joe: Gamic weather and the ongoing efforts to de risk our operations.

Joe: Whether in our area with variable route quarter with colder conditions in January followed by a more mild conditions in February and March overall heating degree days for the quarter were eight 9% lower than in Q1 2023.

Joe: Q1, 2024 loads decreased by <unk>, 9%, but increased by one 2% weather adjusted compared to Q1 2023.

Joe: 2024 residential load decreased three 6% year over year due to mild weather, but increased by 5% weather adjusted residential customer account decreased one 3%.

Joe: Commercial load decreased two 1%.

Or one 3% weather adjusted driven largely by lower commercial activity during the January winter storm.

Joseph R. Trpik: The ongoing RFP is moving ahead as we seek additional resources to serve customer growth and make progress on our clean energy target. FIDS submissions will conclude in April, and we will then move to the evaluation and scoring phase as selection criteria continue to focus on least cost and least risk.

Joe: The industrial class sustained its momentum with.

Joe: Load, increasing four 9% or five 2% weather adjusted.

Joe: Demand growth for digital and semiconductor customers supports this growth trend reinforced by the ongoing investment Maria Highway.

Joseph R. Trpik: Submission of a short list for acknowledgement by the OPUC is expected in early Q3 and bid selection is anticipated in the third or fourth quarter. We will keep you updated as the RFP progresses. As we noted previously, the figures in our capital plan do not include any potential forthcoming RFP projects.

Joe: We maintained good visibility to our robust pipeline of incoming projects and remain confident in the strength of our service territory.

Given these factors we are reiterating our 2020 for weather adjusted load growth guidance of 2% to 3%.

Joe: Our long term growth guidance of 2% through 2027.

Joe: I'll now cover our financial performance quarter over quarter.

Joseph R. Trpik: Turning to slide eight, for a summary of the 2025 general rate case filed late, This filing is largely focused on the recovery of our incoming battery storage project and continued system investments for reliability, resiliency, and grid modernization. A procedural schedule has been posted for the rate review docket, and we look forward to engaging stakeholders at upcoming settlement discussions, the first beginning next week. Review of the filing will continue through the year, and all items remain subject to OPUC approval.

Joe: We observed a recent decrease in revenues, primarily due to weather driven decreases in deliveries.

Joe: An 18% increase resulting from the right sizing of our cost structure and improved recovery of wildfire mitigation vegetation management, other O&M and capital assets serving customers.

Joe: Power costs drove a <unk> increase in EPS driven by a 13.

Joe: <unk> increased due to power cost detriment in Q1 2020.

Joe: Three that reverse for this comparison.

Joe: And the 17% increase in EPS from lower power costs and anticipated in the annual update tariff driven by Derisking actions taken throughout the quarter.

Joseph R. Trpik: New customer rates are anticipated at the beginning of 2025. On to slide nine for a summary of our liquidity and financing. Total available liquidity at March 31 is $1.1 billion; our investment grade credit rating, Fable Credit Outlook, and Bound Cheat String remain static since our last disclosure.

Joe: We had a <unk> <unk> decrease in other items, including the dilutive impact of recent equity draws.

Joe: Lower regulatory program interest and higher property taxes, partially offset by higher AFDC and lower income tax expense generally from PTC effects.

Joe: And lastly, a 13th decrease the GAAP EPS, resulting from the 20% portion of non recoverable January storm RPE costs, bringing us to a GAAP EPS of $1 eight per diluted share.

Joseph R. Trpik: In late February, we executed $450 million in long-term debt issuances, and in March, we drew $78 million previously priced under our ATM program, focused on rate-based investments. The ATM continues to provide adequate capacity and flexibility to support our ongoing base capital, and our access to both equity and debt capital markets remains strong. Capital Structure Maintenance, Careful Dilution Management, and Capital Deployment for Accretive Rate-Based Investments remain the pillars of our financial strategy.

Joe: After adjusting for this <unk> impact we reach our Q1 2024, non-GAAP EPS of $1 21 per.

Joe: Per diluted share.

Joe: Onto slide seven for our current capital forecast are.

Joe: Our plan for 2024 remains on track, including progress on the comfortable and CCI battery project as well as our transmission based system investments.

Joe: The ongoing RFP is moving ahead as we seek additional resources to serve customer growth and make progress on our clean energy targets.

Joe: Bid submissions will conclude in April and we will then move to the evaluation and scoring phase has selection criteria continue to focus on lease cost and least risk.

Joe: Submission of the shortlist for acknowledgment by the <unk> is expected in early Q3 and bid selection is anticipated in the third or fourth quarter. We will keep you updated as the RFP progresses.

Joseph R. Trpik: We continue; we'll continue to calibrate our approach as investment opportunities evolve, including from the RFP, and we will keep you informed as we proceed. Reflecting on Q1. Our results represent a solid step forward in our long-term growth trajectory. This plan is underpinned by our continued focus on operational efficiency, thoughtful cost management, and strategic capital investment. The strength of our region, highlighted by the continued load growth expectations I noted earlier, as well as our focus on consistent execution and performance, gives us confidence in our performance for the year and beyond.

Joe: As we've noted previously the figures and our capital plans do not include any potential forthcoming RFP projects.

Joe: Turning to slide eight for a summary of the 2025 general rate case filed in late.

Joe: This filing is largely focused on the recovery of our incoming battery storage project.

Joe: Continued system investments for reliability resiliency and grid modernization.

A procedural schedule has been posted for the rate review docket, and we look forward to engaging stakeholders at upcoming settlement discussions.

Joe: First beginning next week.

Joe: Review of the filing will continue through the year and all items remains subject to PUC approval, new customer rates are anticipated at the beginning of 2025.

Joe: On to slide nine for a summary of our liquidity and financing.

Joseph R. Trpik: As such, we are reaffirming our 2024 adjusted guidance of $2.98 to $3.18 per share and our long-term earnings and dividend growth guidance of 5% to 7%. Regarding dividends, we recently announced a 10 cent annual dividend increase in line with our targeted growth and our 60 to 70% payout ratio target.

Total available liquidity at March 31 is $1 1 billion.

Joe: Our investment grade credit ratings.

Joe: Credit outlook and balance sheet strength remains static since our last disclosure.

Joe: In late February we executed $450 million in long term debt issuances and in March we drew $78 million previously priced under our ATM program.

Joe: On rate base investments.

The ATM continues to provide adequate capacity and flexibility to support our ongoing base capital plan interactive to both equity and debt capital markets remained strong.

Joe: Capital structure maintenance careful dilution management and capital deployment for accretive rate based investments remain the pillars of our financial strength.

Joseph R. Trpik: As we turn to the balance of 2024, we remain centered on our strategic plan that will deliver results and value for our customers, shareholders, and the communities we serve. And now, operator, we are ready for questions. Thank you. As a reminder, to ask a question, you'll need to press star 1-1 on your telephone. To withdraw your question, please press star 1-1 again. Please wait for your name to be announced.

Joe: We continue we will continue to calibrate our approach as investment opportunities evolve, including from the RFP and we will keep you informed as we proceed.

Joe: Reflecting on Q1.

Joe: Our results represent a solid step forward in our long term growth trajectory.

Joe: This plan is underpinned by a continued focus on operational efficiency.

Joe: Full cost management and strategic capital investments.

Joe: The strength of our region highlighted by the continued load growth expectations I noted earlier as well as our focus on consistent execution and performance gives us confidence in our.

Operator: Please stand by while we compile the Q&A roster. Our first question comes from the line of Richard Sunderland with J.P. Morgan. Your line is now open. Hi, good morning. Can you hear me?

Joe: Performance for the year and beyond.

Joe: As such we are reaffirming our 2024 adjusted guidance of $2 98 to $3 18 per share and our long term earnings and dividend growth guidance.

Joe: Two 7% rig.

Operator: Yes, we can. Great, thank you for your time today. You know, I appreciate the color on the RFP process. I'm curious if the projects come through at the pace you expect, what could that potential equity need be?

Regarding dividends.

Joe: Recently announced a 10% annual dividend increases in line with our targeted growth range, and our 60% to 70% payout ratio target.

Joe: As we turn to the balance of 2024, we remain centered on our strategic plan that will deliver results and value for our customers shareholders and the communities we serve.

Maria MacGregor Pope: And just for comparison's sake, how should we think about that equity versus equity for the base plan as it stands today? Sure, let me have Joe talk to you about our financing plans and how we've reflected them. But overall, with the RFP process, we expect a really robust pipeline of renewable and capacity projects. We should probably have a good short list as well as some conclusions around the late second quarter and beginning of the third quarter, and we would hope to be able to have contracts executed towards the end of the year, maybe even spilling into the first quarter. Joe with regard to equity. Good morning, Richard.

Speaker Change: And now operator, we are ready for questions.

Thank you.

Speaker Change: As a reminder to ask a question you will need to press star one on your telephone.

Speaker Change: I had a question. Please press star one again, please wait for your name to be announced please standby, while we compile the Q&A roster.

Speaker Change: Our first question comes from the line of Richard Sunderland with Jpmorgan. Your line is now open.

Richard Wallace Sunderland: Hi, Good morning can you hear me.

Richard Wallace Sunderland: Yes, we can.

Richard Wallace Sunderland: Great. Thank you for the time today.

Richard Wallace Sunderland: I appreciate the color on the RFP process I'm curious as the projects come through at the pace you expect what could that potential equity need be and just for comparison sake. How should we think about that equity versus equity for the base plan as it stands today.

Joseph R. Trpik: You know, as you know, as it relates to equity, any equity need coming from the RFP would be incremental to our plan, and we have said that we expect to finance that in both a solution management approach matching the cash flows to the needs as closely as possible, as well as maintaining a 50-50 cap structure balance. You know, as it relates to pricing, we will we will wait and see how this sizes out.

Richard Wallace Sunderland: Sure. Let me have Joe talk to you about our financing plans and how we have reflected them.

Joe: But overall with the RFP process, we expect a really robust pipeline of renewable and capacity projects.

Joe: We should probably have a good shortlist is as well as sort.

Joe: So the conclusions around the second late second quarter, beginning of the third quarter, and we would hope to be able to have contract executed towards the end of the year, maybe even spilling into the first quarter.

Joseph R. Trpik: I mean, I think our guidance that we are, I'm sorry, our illustrious presentation that we give on rate-based growth in our investor deck is probably our best proxy to build off of as it relates to equity. To Maria's comment, you know, we do anticipate a pretty active RFP process, and timing wise and cash flow wise, as you think about it, we are looking for projects that are able to come online by the end of 2027 that also align with what is our preferred portfolio. Okay, I understand. Thank you for the color there.

Joe: Joe with regards to equity.

Joe: Good morning, Richard.

Joe: As it relates to equity any equity need coming from the RFP would be incremental to our plan.

Joe: And we have said that we expect to finance that in both a.

Joe: Dilution management approach matching the cash flows to the needs as well as as possible as well as maintaining a 50 50 cap structure balance.

Joe: As it relates to pricing.

Joe: We will we will wait and see how this sizes out I mean, I think our our guidance that we are I'm sorry, our <unk> presentation that we gave on rate base growth.

Our investor deck is probably our best proxy to build off of as it relates to.

Joe: <unk> to equity <unk>.

Joe: His comment we do.

Joe: Anticipate a pretty active RFP process and timing wise and cash flow like as you think about it we are looking for projects that are able to come online by the end of 2027 that also aligns with what is our our preferred portfolio.

Joseph R. Trpik: And then turning to the rate case, I appreciate it's early, but how is the process unfolding so far? I'm hoping you can frame the revenue ask here versus the prior few cases in thinking across the size and composition of, say, capital, O&M, and power. And then, given this follows last year's case, is settlement, you know, the expected outcome here? How should we think about that? So, sure, I'll start us off on the rate case.

Speaker Change: Okay understood. Thanks for the color there and then turning to the rate case I appreciate its early but how has the process unfolding so far.

Speaker Change: Hoping you can frame the revenue ask here versus the prior few cases thinking across size and composition of capital O&M and power and then given this follows last year's case is.

Joseph R. Trpik: So, you know, the rate case focus that we have in this case is mainly about capital. So, I would think of it as 65% of this case is capital and then 25% O&M and 10% for our power costs. This is a change from our last case. In our last case, upon ultimate settlement, over half of the case was power costs.

Speaker Change: Settlement.

Speaker Change: Expected outcome here, how should we think about that.

Speaker Change: So sure I'll I'll start us off on the on the rate case so.

The rate case focus that we have this case is mainly about capital. So I would think of it as a 65% of this KC capital and then 25% O&M and 10% for our power costs. This is a change from our last case, our last case upon ultimate settlement.

Joseph R. Trpik: So we really look at this case as making sure that we're as efficient as possible and really looking for recovery of putting these assets in service, including the battery projects that we've talked about that really drive benefits for the customer. You know, and as it relates to the settlement, the settlement processes will start next week, as I mentioned previously, and we hope to get aligned with parties to be able to settle.

Speaker Change: Over half of the case with power costs. So we really look at this this cases, making sure that we're as efficient as possible and really looking for recovery of putting these assets in service, including the battery projects that we've talked about that really drive benefits for the customer.

Speaker Change: And then as it relates to settle the settlement processes.

Speaker Change: Starting next week as I mentioned previously.

Speaker Change: And we hope to get aligned with with parties to be able to settle but each case stands on its own.

Joseph R. Trpik: But each case stands on its own, and we hope to have a pretty open and productive dialogue with all interested parties. Okay, got it. I'll leave it there for now. Thank you very much for your time.

And we just we hope to have a pretty open and productive dialogue with with all interested parties studies.

Speaker Change: Okay got it I'll leave it there for now thank you very much for the time.

Operator: Thank you. Thank you. One moment for our very next question. Our next question comes from the line of Shahriar Pourreza with Guggenheim Partners. Your line is now open. Hey, guys. Good morning, Maria.

Speaker Change: Thank you. Thank you one moment for your next question.

Shahriar Pourreza: Our next question comes from the line of sharper Reza <unk> with Guggenheim Partners. Your line is now open.

Shahriar Pourreza: Hey, good morning.

Shahriar Pourreza: Good morning, Brian.

Operator: Maria, I know this year has a kind of shorter session for the legislature. Can you give us any updates on efforts around maybe a state wildfire fund and what the groundwork, if any, looks like for the longer legislative session ahead? I mean, given what you know today, is this something you could see get done by 25?

Reza: No. This is this is this year has a kind of a shorter session for the legislature can you give us any updates on efforts around maybe a state wildfire fund and the groundwork if any it looks like for the longer legislative session. Ed I mean, given what you know today is this something you could see get done by <unk>.

Maria MacGregor Pope: Sure. We are working on legislative solutions at both the state and the federal level. And on the state side, we have been talking with a number of parties, from the horse organization, to representatives and senators, to our customers, and to leadership across the entire state. Clearly, wildfire is a societal risk, and we want to address it from a societal solution, not just one that is solely focused on the utility but a broad set of solutions that really works for Oregon.

Reza: 25.

Reza: Sure.

Ed: We are working on solutions.

Ed: Solutions, both at the state and the federal level.

And on the state side, we have been talking with a number of parties.

Ed: From the horse organization.

Ed: Two representatives senators.

Ed: To our customers.

Ed: And two leadership across the entire state clearly.

Ed: Wildfires, a societal risk and we want to address it from the silo.

Ed: So as a solution not just one that totally focused on the utility, but a broad set of solutions that really works for Oregon, and then also on the federal side Theres a lot of discussions taking place from how our floor plans are managed nationally to the U S Forest service in the era of land management.

Maria MacGregor Pope: And then also on the federal side, there are a lot of discussions taking place from how our forest lands are managed nationally, through the U.S. Forest Service and the Bureau of Land Management, to also ensuring that not only utilities have access to insurance, but also homeowners and others. This area, combined with all of the operational work that we're doing, the very important operational work that we're doing, is our number one priority to keep our customers and the communities that we serve safe. I got it. Perfect, perfect, perfect, perfect.

Ed: To also ensuring that not only utilities to have access to insurance auto homeowners and others.

Ed: This area is combined with all of the operational work that we're doing the very important operational with clear Julien.

Ed: Our number one priority to keep our customers and the communities that we serve.

Speaker Change: Got it perfect perfect perfect perfect. Thank you for that and then just on power cost I mean, you had a substantial deferral during the storms in January and the MTBC is otherwise kind of below the baseline can you remind us is there a cap on the amount you could defer under the <unk> cost.

Maria MacGregor Pope: Thank you for that. And then just on power cost, I mean, you had a substantial deferral during the storms in January, and the MVPC is otherwise kind of below the baseline. Can you remind us, is there a cap on the amount you could defer under the RCE construct? Could we just, I guess, could we just put a finer point on what you saw during the event and how it interacts with the MVPC?

Speaker Change: Can we just I guess can we just put a finer point on what you saw during the event and how it interacts with the NBC and then secondly, how are things hydro snowpack looking for the summer peak. Thanks.

Maria MacGregor Pope: And then secondly, how are things, you know, the hydro snowpack looking for the summer peak? Thanks. Sure. So let me take the first one in terms of the conditions during the January period of time. It was really extraordinary.

Speaker Change: Sure. So let me take the first one in terms of the conditions. During the January period of time, it was really extraordinary.

Maria MacGregor Pope: Early on in the January event, Alberta came very close to a true energy crisis, and that spilled over into the Pacific Northwest. Later on, a couple days later, a major storage facility in the Pacific Northwest went offline. And so generators throughout the entire region scrambled. We maximized energy flows coming in from the desert southwest and California, but we hit a number of transmission constraints, and we also brought in much higher levels of power out of British Columbia. Most of that was hydro-based.

Speaker Change: Early on the <unk>.

Speaker Change: January events, Alberta came very close to a true energy crisis and that spilled over into the Pacific Northwest.

Speaker Change: Later on a couple of days later.

Speaker Change: Major storage facility.

Speaker Change: In the Pacific Northwest came offline and sell generators throughout the entire region scrambled, we maximize energy flows coming in from the desert southwest and California, but we hit a number of transmission constraint.

Speaker Change: We also brought in.

Speaker Change: Much higher levels of Colorado, British Columbia.

Speaker Change: Most of that was hydro based.

Maria MacGregor Pope: What we have seen is that our experience was not too different from some other large investor-owned utilities. Through the PCAM mechanism, we are able to defer 20%, excuse me, we're able to defer 80%. And then 20% was retained through the PCAM mechanism. There is no cap on that, and we are overall really focused on managing power costs. We've seen them come up quite significantly, a big issue for us as well as for others. With regard to hydro conditions, they're pretty similar to where they were last year.

Speaker Change: What we have seen is that our experience with not too different.

Speaker Change: Some other large investor owned utilities.

Speaker Change: So you are seeing.

Speaker Change: Mechanisms, we are able to defer 20%.

Speaker Change: We were able to defer 80% and then we retained 20% was closed through the <unk> mechanism.

Speaker Change: There is no cap on that and we are overall really focused on managing power costs, we've seen them come up quite significantly.

Speaker Change: Big issue for us as well as for others.

Speaker Change: With regards to hydro conditions, there are pretty similar to where they were last year. Obviously, we're in the spring time, and so we will see hydro pickup in the second quarter and quite frankly, we have stronger flows expected in the first quarter.

Maria MacGregor Pope: Obviously, we're in springtime, and so we'll see hydro pick up in the second quarter. And quite frankly, we had stronger flows than we expected in the first quarter. As you look towards summertime, there is very little snowpack in Canada, and in British Columbia, in particular, where most of our hydro comes from and what drives the market price of power through the region. So even though you see year-to-year similarities, I think we are setting up for a very tough power cost summer. Overall, hydroelectric power throughout the entire region is about 80%.

Speaker Change: As you look towards the summertime there is very little snow pack in Canada and in British Columbia in particular, where most of our hydro comes and what drives the market price of power to the region. So even though you're seeing year to year similarities I think we're setting up for a very tough tower.

Speaker Change: <unk> stomach.

Speaker Change: Overall hydro throughout the entire region is about 80% of normal.

Maria MacGregor Pope: Got it. Perfect. Thank you, Maria. I appreciate the color.

Speaker Change: Got it perfect. Thank you Larry I appreciate the color. Thanks, so much.

Operator: Thanks so much. We'll see you soon. Thank you. One moment for our next question, please. Our next question comes from the line of Paul Fremont from Landenburg-Salmon. Your line is now open.

Speaker Change: Thank you one moment for our next question. Please.

Next question comes from the line of Paul Fremont.

Paul Fremont: Ladenburg Thalmann. Your line is now open.

Maria MacGregor Pope: Thank you very much. I guess my first question has to do with some of the demand that you're seeing on the data center side. Does that demand, at this point, fully incorporated into the IRPs that you filed? Or, you know, do you see sort of incremental demand above what you're. Sure. So, as you know, we did our first ever plan and follow-on IERP last year. About this time last year, we filed a Supplement to that and took up the energy demand by about 40% from what we were projecting previously.

Paul Fremont: Alright.

Paul Fremont: Thank you very much.

Paul Fremont: I guess my first question has to do with some of the demand that youre seeing on the datacenter side.

Paul Fremont: Is that demand fully at this point incorporated into the <unk> that you filed or do you see sort of incremental demand bump what youre projecting.

Speaker Change: Sure. So as you know we did our first ever.

Speaker Change: Plan and follow on <unk>.

Speaker Change: Last year.

Speaker Change: This about this time last year.

Speaker Change: We filed a supplemental.

Speaker Change: To that end took up the energy demand.

Speaker Change: Out 40% from what we were projecting previously after you look at.

Maria MacGregor Pope: After you look at the efficiency of combined technologies and what we're seeing in some of the new deployments that we have, as well as how we're using the distribution system more effectively, that came down to about 14% overall, but a 40% increase in demand is a huge increase, and it certainly got everybody's attention. I think that it's absolutely what we're going to be probably the floor on what we'll see as we move forward.

Speaker Change: The efficiency of combined technologies and what we were seeing in some of the new deployments that we have as well as how we're using the distribution system more effectively.

Speaker Change: That came down to about 14% overall, but it's a 40% increase in demand is a huge.

Speaker Change: Increased and it certainly got everybody's attention and I think that is absolutely what we're going to be probably as a floor on what we'll see as we move forward just for perspective of our industrial customer base about 20%.

Maria MacGregor Pope: Just for perspective of our industrial customer base, about 20% of our digital data center tech customers, the real bulk of our industrial base is really actually semiconductors. And about 15% of semiconductors in the U.S. are actually manufactured in our service territory. And most recently, the state of Oregon created a matching fund for the ChIP PACS, about $240, $250 million.

Speaker Change: Our digital data center type customers.

Speaker Change: Bulk of our industrial base is actually semiconductors.

Speaker Change: And about 15% of semiconductors in the U S are actually manufactured in our service territory and most recently the state of Oregon.

Created a.

Speaker Change: Matching funds to the chipset, so about $240 million to $250 million and 85% of the allocation of those funds discuss a specific companies or companies who have operations in our service territory. So we renewed growth from not only from data centers, but.

Maria MacGregor Pope: And 85% of the allocation of those funds, which goes to specific companies, are companies who have operations in our service territory. So, we see continued growth from not only data centers but also from semiconductor manufacturers through the next decade that will probably only get higher, not lower. Great. And I guess the most likely period, if you were to settle..., in the rate case, would that be before hearings?

Speaker Change: Also from semiconductor manufacturers through the next decade that we'll probably only get higher not lower.

Speaker Change: Uh huh.

Speaker Change: Great.

Speaker Change: And I guess.

Speaker Change: The most likely period, if you were to settle.

Speaker Change: In the rate case.

Speaker Change: Hmm.

Speaker Change: Would that be before hearings.

Maria MacGregor Pope: No, I would imagine that we'll probably have a number of discussions and workshops with staff and parties. You know, we try and settle before we ever get to, you know, a commission or order or whatnot. It's, you know, we generally are pretty collaborative as we work through issues. Obviously, customer prices have always been and will continue to be a major focus for us.

Speaker Change: No I would imagine that we'll probably have a number of discussions and workshops.

Speaker Change: With staff and parties.

Speaker Change: We try and settle before we ever get to.

Speaker Change: Commission order or whatnot.

Speaker Change: We generally are pretty collaborative state as we work through issues.

Speaker Change: Obviously.

Speaker Change: Customer prices has always been and will continue to be a major focus for us and we've had some pretty big increases. So these conversations are going to be a challenge.

Maria MacGregor Pope: And we've had some pretty big increases, so these conversations are going to be a challenge. And then last question for me. Can you just reiterate, you know, in terms of M&A, whether the company would be open to or not open to in the future, potentially? Sure. As you know, we don't comment on any sort of discussions along those lines. And we're not changing our policy. Great. I think that's it for me.

And then last question for me can.

Can you just reiterate in terms of M&A.

Speaker Change: Weather.

Speaker Change: What the company would be open to or not open to in the future potentially.

Speaker Change: Sure as you know, we don't comment on any sorts of discussions along those lines.

Speaker Change: And we're not changing our policy.

Speaker Change: Great I think thats it for me. Thank you.

Operator: Thank you. Thank you. One moment for our next question. Our next question comes from the line of Gregg Orrill with UBS. Your line is now open. Good morning, Gregg. Yes, good morning.

Speaker Change: Thank you.

Speaker Change: One moment for our next question please.

Speaker Change: Our next question comes from the line of Gregg <unk> with UBS. Your line is now open.

Gregg: Alright, Greg.

Gregg: Good morning, Thank you.

Operator: Thank you. So it... Back to the drivers for the quarter, there was... you know, the management of power costs, which was a 17 cent benefit. How does that flow through the PCAM, or where does the PCAM stand? Morning, Gregg. This is Joe Trpik.

Gregg: So.

Gregg: Back to the drivers for the for the quarter.

Gregg: There was.

Gregg: The management of power cost, which.

Gregg: <unk>.

Gregg: Was it 2017.

Gregg: Benefit how does that.

Gregg: Flow through or the PJM or where is where does the <unk> stand.

Gregg: Good morning, Greg This is Joseph.

Joseph R. Trpik: You know, as you may recall, the PCAM has an dead band, an asymmetric dead band of $15 million below before a sharing calculation is done, or $30 million above. Where we sit currently, so during the quarter, really, what we saw was, you know, pretty productive cost management and also a stable market. You know, we didn't see the volatility that we had seen in prior periods on gas prices and things like that.

Joseph: As you may recall the.

Gregg: Pecan.

Gregg: A dead band and asymmetric dead band.

Gregg: <unk> million dollars below before.

Gregg: A sharing calculation is done under $30 million above where we sit currently so during the quarter really what we saw was.

Gregg: Pretty productive unit cost is also a stable market, we didn't see the volatility that we've seen in prior periods on gas prices and things like that so where we sit currently is we are $19 million below the <unk> baseline currently now part of that is due to the shaping of the way.

Joseph R. Trpik: So, where we sit currently is $19 million below the PCAM baseline currently. Now, part of that is due to the shaping of the way that rates are set in the automatic adjustment tariff as it goes through the year. We've disclosed in the 10-Q that we think we'll be somewhere around the edge of the baseline by the end of the year, but we do sit at that $19 million stable baseline currently.

Gregg: That the rates are set you automatically adjustment tariffs as as it is.

Gregg: It goes through the year, we've disclosed in the 10-Q that we think will be somewhere around.

Gregg: The edge of the baseline by the end of the year, but we do see that $19 million favorable baseline currently.

Joseph R. Trpik: OK, thanks, Joe. Thank you. As a reminder, to ask a question, you'll need to press star 11 on your telephone, and please wait for your name to be announced.

Speaker Change: Okay. Thanks, Joe.

Yeah.

Speaker Change: Thank you as a reminder to ask a question you will need to press star one on your telephone and please wait for your name to be announced one moment for our next question.

Operator: One moment for our next question. Our next question comes from the line of Willett Granger with Mizuho Securities. Your line is now open. Hi, good morning, everybody.

Speaker Change: Our next question comes from the line of Grainger with Mizuho Securities. Your line is now open.

Grainger: Hi, good morning, everybody.

Grainger: Maybe last one if you can unpack for us a little bit understand those two buckets with costs associated with the January storm, you have the $75 million our CE.

Operator: Maybe this one, if you can unpack for us a little bit, understand there are two buckets with costs associated with the January storm. You have the $75 million RCE associated with the RCE event and then a separate $48 million. Could you maybe talk about how you're thinking about the timing of the recovery of those dollars? Sure. Good morning, Willards.

Grainger: Associated with the RSP event, and then a separate 48 million could you maybe talk to how you're thinking about the timing of the recovery of those dollars.

Speaker Change: Sure good.

Speaker Change: Good morning.

Joseph R. Trpik: The reason that they are separate like that, and I'll talk to you about that, is that they are recovered under two different regulatory mechanisms that they're covered under. I'll start with the $75 million deferral. The $75 million deferral is an RCE deferral under the PCAMS. As it relates to the timing, that recovery will be assessed in a process that will go through mid-2025, and we would expect currently that recovery of whatever amount is settled in that process would start in 2026.

Speaker Change: The reason that they are separate like that and I will talk to you as they are recovered under <unk>.

Speaker Change: Two different regulatory mechanisms that theyre covered on the I'll start with the $75 million deferrals of $75 million deferral is is it are seeing deferral under the pecan as it relates to the timing that.

Recovery will be assessed in a process that will go through mid 2025.

Speaker Change: And we would expect currently that the.

Speaker Change: Recovery of whatever amount is settled in that process, which started in 2026 and the reason I say expect the RC mechanism is new in the methods will be part of the recovery will be part of that discussion.

Joseph R. Trpik: The reason I say expect is that the RCE mechanism is new, and the methods of recovery will be part of that discussion. Additionally, we incurred $48 million in O&M capital costs as related to the physical restoration of the system during that storm period.

Speaker Change: Separately, we incurred $48 million in O&M and capital costs as it related to the the physical restoration of the system during that storm period.

Joseph R. Trpik: In Oregon, there are provisions that allow for the recovery of those costs when a state of emergency is declared and there's such damage. That proceeding has started, and that cost recovery proceeding has started, but the timeline is not set. So there's been a filing made. There's a timeline underway. If I had to put an expectation for some period in 2025, once it's settled, there would be a recovery. But right now, there's not a set.

Speaker Change: In Oregon, there are our provisions that allow for the recovery of those costs. When a state of emergency is declared and theres such damage that proceeding has started and that sort of that that cost proceeding has started but in.

Speaker Change: The timeline is not set so there is a filing made there's a timeline underway if.

Speaker Change: If I had to put an expectation at some period in 2025 once its settled there would be recovery, but right now there's not a stay close date for the preceding for me to be able to say what date that recovery would occur nor do we have until the preceding and with the time period of that recovery could be it could be a short period or uptick in several years.

Joseph R. Trpik: The closed date for the proceeding for me to be able to say what date that recovery would occur, nor do we have until the proceeding ends what the time period of that recovery could be. It could be a short period or up to several years based on what decisions are taken.

Speaker Change: Based on what decisions are made.

Maria MacGregor Pope: Appreciate the color. And then maybe one more, on the extended day ahead market proposal to join the Cal ISO, would that allow you to get any sort of BERC add, ROE adder, or any sort of incremental transmission build to the capital plan? And maybe, how should we be thinking about that? Thank you. That's a good question. No, it would not.

Speaker Change: I appreciate the color.

Speaker Change: Then maybe one more on the extended day ahead market proposal.

Speaker Change: To join the Cal ISO.

Speaker Change: Would that allow you to get any sort of FERC add Roe adder or any sort of incremental transmission build too because the capital plan and maybe how should we be thinking about that thank you.

Speaker Change: Yes, that's a good question no it would not.

Maria MacGregor Pope: It's a part of an ISO. There is no RTO in the West, and we're probably quite a ways off from that if we ever do get to an RTO. It allows us to move from the energy imbalance market, which is essentially a real-time market, to the day ahead. There are some pretty significant customer benefits that we'll realize from that, but also some important operational benefits as we maximize the diverse renewable resources from the desert Southwest and extensive solar to the Pacific Northwest hydro and all of the wind energy in between. So it allows for a more planned portfolio effect, and it builds upon the really good work that has already been done through the energy imbalance.

Speaker Change: It's a part of an ISO there is no <unk> in the west and we're probably quite a ways off from that if we ever do you get to <unk>.

Speaker Change: It allows us to move from the energy imbalance market, which is essentially a real time market to the day ahead, and there's some pretty significant customer benefits.

Speaker Change: That we'll realize from that but also some important operational benefits as we maximize.

Speaker Change: The diverse renewable resources from the desert southwest and extensive solar.

Speaker Change: Two.

Speaker Change: The Pacific Northwest Hydro and all of the wind energy in between so it allows for Julia.

Speaker Change: A more.

Speaker Change: Planned full portfolio effect.

Speaker Change: Built upon the really good work that has already been done through the energy imbalance market.

Operator: Great, thank you. Thank you. Thank you. I'm currently showing no further questions at this time. I'd like to hand the conference back over to Maria Pope, President and Chief Executive Officer, for closing remarks. All right. Thank you for joining us today. We appreciate your interest in Portland General, and we look forward to connecting with you soon. Thank you very much. This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.

Speaker Change: Great. Thank you.

Speaker Change: Thank you. Thank you.

Speaker Change: I'm currently showing no further questions at this time I'd like to hand, the conference back over to Maria Pope President and Chief Executive Officer for closing remarks.

Maria MacGregor Pope: Great. Thank you for joining us today, we appreciate your interest in Portland General and we look forward to connecting with you soon thank you very much.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.