Q1 2025 Portland General Electric Co Earnings Call

April 25, 2025

This call is being recorded and as such all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer period. If you would like to ask a question. During this time simply press Star then the number one one on your telephone keypad.

Speaker Change: If you would like to withdraw your question. Please press star one again, if you do intend to ask a question. Please avoid the use of speaker phones for opening remarks, I will turn the conference call over to Portland General Electrics manager of Investor Relations. Nick White. Please go ahead Sir.

Speaker Change: Thank you Shannon good morning, everyone. We are happy you could join us today.

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 Forms 10-K and 10-Q, which are available on our website.

Speaker Change: 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. These slides are available on our website at investors <unk>, Portland General Dot com, referring.

Nick White: 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.

Speaker Change: 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 were.

Speaker Change: Good morning everyone and welcome to Portland General Electric Company's first quarter 2025 earnings results conference call. Today is Friday, April 25th, 2025. This call is being recorded and as such all lines have been placed on mute to prevent any background noise.

Maria Pope: Now, it's my pleasure to turn the call over to Maria. Good morning, and thank you all for joining us today. Portland General Electric announced advanced key priorities in the first quarter, laying the foundation for solid results, diligent cost management, and strong execution in 2025 and beyond. Beginning with slide four, I'll speak to our financial results and key drivers. For the first quarter, we reported gap net income of $100 million or $0.91 per diluted share. This compares with first quarter 2024 gap net income of $109 million or $1.08 per diluted share and non gap net income of $123 million or $1.21 per share.

Speaker Change: 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 forms 10-K, and 10-Q, which are available on our website.

Maria Pope: 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 Pope: 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 Pope: Morning, and thank you all for joining us today.

Maria Pope: General electric and ask advanced key priorities in the first quarter.

Maria Pope: Laying the foundation for a solid result, diligent cost management and strong execution in 2025 and beyond.

Maria Pope: Our first quarter results reflect the continuation of strong load growth from high-tech and data center customers who drove 4.6% total load growth, an industrial load growth of 16.4% compared to the same quarter last year. PGE serves five large semiconductor customers and over 10 significant data center providers that are spread across dozens of sites, making up nearly a quarter of our total deliveries. This growth is driving important capital improvements and upgrades across our transmission and distribution systems. These investments advance critical energy security and resource adequacy goals shared by customers and the communities we serve, and also address aging infrastructure needs and enable the economic engine of our service territory.

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

Maria Pope: For the first quarter, we reported GAAP net income of 100 million or <unk> 91 per diluted share. This compares with first quarter of 2024, GAAP net income of $109 million or $1 eight per diluted share and non-GAAP net income of $123 million or $1 21 per share.

Maria Pope: 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 Pope: Our first quarter results reflect the continuation of strong load growth.

Speaker Change: Hi Tech and data center customers.

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

Speaker Change: Four 6% total loan growth in industrial load growth of 16, 4% compared to the same quarter last year.

Maria Pope: Morning, and thank you all for joining us today.

Speaker Change: General electric and ask advanced key priorities in the first quarter.

Speaker Change: PGE serves five large semiconductor customers and over 10 significant data center providers.

Speaker Change: Laying the foundation for solid results diligent cost management and strong execution in 2025 and beyond.

Speaker Change: That are spread across dozens of sites, making up nearly a quarter of our total deliveries.

Speaker Change: Beginning with slide four I'll speak to our financial results and key drivers for.

Maria Pope: Many of these customers have aggressive clean energy goals that align with our municipal and residential customers, who make our clean energy program number one in the country, according to NREL. Our strategy drives our work to build the reliable, affordable and increasingly clean grid of the future, including the ongoing 2023 and 2025 RFPs and the forthcoming 2025 IRP updates. Customer prices are central to our strategy and we are paying close attention to the evolving federal policy landscape and advocating for the continuation of renewable investment and production tax credits. credit transferability, and other provisions under the IRA and IIJA, as well as closely following the ongoing tariff situation.

Speaker Change: This growth is driving important capital improvements and upgrades across our transmission and distribution systems.

Speaker Change: For the first quarter, we reported GAAP net income of 100 million or <unk> 91 per diluted share. This compares with first quarter 2024, net income of $109 million or $1 eight per diluted share and non-GAAP net income of $123 million or $1 21 per share.

Speaker Change: These investments enhanced critical energy security and resource adequacy Kohl's shared by customers and the communities. We serve and also address aging infrastructure needs and enable the economic engine of our service territory.

Speaker Change: Our first quarter results reflect the continuation of strong load growth.

Speaker Change: Many of these customers have aggressive clean energy goals that align with our municipal and residential customers, who make our clean energy program number one in the country. According to enroll.

Speaker Change: Hi Tech and data center customers.

Speaker Change: Four 6% total load growth in industrial load growth of 16, 4% compared to the same quarter last year.

Speaker Change: Our strategy drives our work to build the reliable affordable and increasingly clean grid of the future.

Speaker Change: PGE serves five large semiconductor customers and over 10 significant data center providers.

Speaker Change: Including the ongoing 2023, and 2025 Rfps and the forthcoming 2025 ERP update.

Speaker Change: That are spread across dozens of sites, making up nearly a quarter of our total deliveries.

Speaker Change: Customer prices are central to our strategy and our plan and we are paying close attention to the evolving federal policy landscape and advocating for the continuation of renewable investment and production tax credits.

Maria Pope: Our commitment to address system resilience, advance clean energy priorities, and provide safe, reliable, and affordable energy for every customer we serve is as important today as ever.

Speaker Change: This growth is driving important capital improvements and upgrades across our transmission and distribution systems.

Speaker Change: Investments advanced critical energy security and resource adequacy calls shared by customers and the communities we serve.

Speaker Change: Credit transferability and other provisions under the IRA and <unk> as well as closely following the ongoing ongoing tariff situation.

Maria Pope: Turning to wildfire risk. We're actively engaged with key stakeholders, including legislators at the governor's office, the OPUC, the Oregon Department of Forestry, first responders and other utilities, and customers as we work towards solutions that address the societal risk of wildfires and other extreme weather. Our mature year-round wildfire mitigation work is advancing as we deploy lessons learned from recent wildfires and sharpen our practices ahead of summer.

And also address aging infrastructure needs and enable the economic engine of our service territory.

Many of these customers have aggressive clean energy goals that align with our municipal and residential customers, who make our clean energy program number one in the country. According to enroll.

Speaker Change: Our commitment to address system resilience advance clean energy priorities and provide safe reliable and affordable energy for every customer we serve is as important today as ever.

Speaker Change: Our strategy drives our work to build the reliable affordable and increasingly clean grid of the future.

Speaker Change: Turning to wildfire risk, we're actively engaged with key stakeholders, including legislators and the Governor's office. The PUC, the Oregon Department of Forestry first responders and other utilities and customers as we work towards solutions that address the societal risk of wildfires and other <unk>.

Speaker Change: Including the ongoing 2023, and 2025 Rfps and the forthcoming 2025 ERP update.

Maria Pope: In 2025, we plan to spend over $120 million on wildfire mitigation, including capital investments and O&M. We're working with elected officials and stakeholders on legislation to address the financial risk from wildfires. A bill was introduced in February to create a standard of care for utility wildfire mitigation and establishes a safety certificate process to be managed by the OPUC and tied to our wildfire mitigation plan. Creating clear standards for the work utilities do to prevent wildfires and keep communities safe is essential. Our clear standards reduce the likelihood of wildfires being triggered by utility equipment as well as enhanced services liability, lowers customer costs, and provides economic stability for Oregon's communities.

Speaker Change: Customer prices are central to our strategy and our planning and we are paying close attention to the evolving federal policy landscape and advocating for the continuation of renewable investment and production tax credits.

Speaker Change: <unk>.

Speaker Change: Our mature year round wildfire mitigation work is advancing as we deploy lessons learned from recent wildfires and sharpen our practices ahead of summer.

Speaker Change: Credit transferability and other provisions under the IRA and <unk> as well as closely following the ongoing tariff situation.

Speaker Change: In 2025, we plan to spend over $120 million on wildfire mitigation, including capital investments and O&M.

Speaker Change: Our commitment to address system resilience advance clean energy priorities and provide safe reliable and affordable LNG for every customer we serve is as important today as ever.

Speaker Change: We're working with elected officials and stakeholders on legislation to address the financial risk from wildfires.

Speaker Change: A bill was introduced in February to create a standard of care for utility wildfire mitigation and establishes a safety certificate process to be managed by the op QC and tied to our wildfire mitigation plan.

Maria Pope: We're pleased to see continued progress on this important policy.

Speaker Change: Creating clear standards for the work utilities due to prevent wildfires and keep communities safe is essential.

Maria Pope: will propose legislation to create a catastrophic wildfire fund has not moved forward. The ongoing dialogue with stakeholders represents productive progress. Pacific Northwest states are just beginning to grapple with the liability issues related to wildfire risk. And as I said in our last call, these policies may take more than one session to achieve. The work we're doing to address and manage risk by executing on our wildfire mitigation plan and working to find societal solutions for the risk of wildfire and extreme weather helps with affordability and protects customers. When it comes to affordability, there are several areas that also come together to reduce upward customer bill pressure.

Speaker Change: Clear standards reduce the likelihood of wildfires being triggered by utility equipment as well as enhanced services liability lowest customer costs and provides economic stability for Oregon's communities.

Speaker Change: <unk>.

Speaker Change: Our mature year round wildfire mitigation work is advancing as we deploy lessons learned from recent wildfires and sharpen our practices ahead of summer.

Speaker Change: We're pleased to see continued progress on this important policy.

Speaker Change: In 2025, we plan to spend over $120 million on wildfire mitigation, including capital investments and O&M.

Speaker Change: While proposed legislation to.

Speaker Change: To create a catastrophic wildfire fund has not moved forward the ongoing dialogue with stakeholders represents productive progress.

Speaker Change: We're working with elected officials and stakeholders on legislation to address the financial risk from wildfires.

Speaker Change: Pacific Northwest States are just beginning to grapple with the liability issues related to wildfire risk and as I've said on our last call. These policies may take more than one session to achieve.

Maria Pope: growth. Serving a growing customer base allows us to spread out operating costs and investments over larger volumes of business. Cost Management. Our company-wide work to reduce O&M costs is well underway. We're evaluating every program and reducing costs to help keep customer prices as low as possible.

Speaker Change: The work, we're doing to address and manage risk by executing on our wildfire mitigation plan and working to find societal solutions for the risk profile of the fire and extreme weather helps with affordability and protects customers.

Speaker Change: Creating clear standards for the work utilities due to prevent wildfires and keep communities safe is essential.

Speaker Change: Clear standards reduce the likelihood of wildfires being triggered by utility equipment as well as enhanced services liability lower customer costs and provides economic stability for Oregon's communities.

Speaker Change: When it comes to affordability there are several areas that also come together to reduce upward customer bill pressure.

Maria Pope: Joe will cover this work in greater detail in his remarks.

Speaker Change: Growth, serving our growing customer base allows us to spread out operating costs and investments over larger volumes of business.

Maria Pope: As discussed on our previous call, we're working towards updating PGE's corporate structure to enable a holding company. This is a common structure in the industry, in fact, the most common structure, and will help enable increased flexibility in how we finance our business.

Speaker Change: We're pleased to see continued progress on this important policy.

Speaker Change: While proposed legislation to.

Speaker Change: Cost management, our companywide work to reduce O&M costs is well underway.

Speaker Change: Create a catastrophic wildfire fund has not moved forward.

The ongoing dialogue with stakeholders represents productive progress.

Speaker Change: We're evaluating every program and reducing costs to help keep customer prices as low as possible.

Maria Pope: As we look ahead, The Portland General Electric team is focused on managing our business with discipline and foresight. fields only controlling costs and risk management and seeking competitive returns to effectively attract investors. delivering value to customers, communities, and shareholders.

Speaker Change: Joe will cover this work in greater detail in his remarks.

Speaker Change: As discussed on our previous call, we are working towards updating pge's corporate structure to enable a holding company.

Speaker Change: The work, we're doing to address and manage risk by executing on our wildfire mitigation plan and working to find societal solutions for the risk of wildfire and extreme weather helps with affordability and protects customers.

Speaker Change: This is a common structure in the industry in fact, the most common structure and will help enable increased flexibility in how we finance our business.

Joe Trpik: With that, I'll turn it over to Joe. Joe? Thank you, Maria, and good morning, everyone. Turning to slide five in our Q1 results reflect strong energy demand from our industrial customers and ongoing system investment. Q1 2025 loads increased 4.6% overall, or 4.4% weather adjusted as compared to Q1 2024. Q1 2025 residential load decreased 0.8% quarter over quarter, or 1% weather adjusted. Residential customer count increased by 1.6%, which was offset by energy efficiency driving lower usage per customer. Commercial load remained relatively flat with a slight increase of 0.8% or 0.3% weather adjustment. We observed another quarter of choppy growth from the industrial class this quarter.

Speaker Change: As we look ahead.

Speaker Change: Portland General Electric team is focused on managing our business with discipline and foresight.

Speaker Change: When it comes to affordability there are several areas that also come together to reduce upward customer build pressure.

Speaker Change: Diligently controlling costs and risk management.

Speaker Change: Growth, serving our growing customer base allows us to spread out operating costs and investments over a larger volumes of business.

Joe: Seeking competitive returns to effectively attract investment delivering value to customers communities and shareholders with that I'll turn it over to Joe Joe.

Speaker Change: Cost management, our companywide work to reduce O&M cost is well underway.

Joe: Thank you Maria and good morning, everyone.

Joe: Turning to slide five in our Q1 results reflect strong energy demand from our industrial customers and ongoing system investments Q1, 2025 loads increased four 6% overall were four 4% weather adjusted as compared to Q1 2020 for Q1 2025 residential load decreased eight.

Evaluating every program and reducing cost to help keep customer prices as low as possible.

Speaker Change: Joe will cover this work in greater detail in his remarks.

Speaker Change: As discussed on our previous call.

Speaker Change: We're working towards updating pge's corporate structure to enable a holding company that.

Joe Trpik: Industrial load increased 16.4 percent on both a nominal and weather-adjusted basis. as recent load growth trends from data centers and semiconductor customers continue.

Joe: Quarter over quarter or 1% weather adjusted residential.

Speaker Change: This is a common structure in the industry in fact, the most common structure and will help enable increased flexibility in how we finance our business.

Joe: Customer count increased by one, 6%, which was offset by energy efficiency driving lower usage per customer.

Joe Trpik: These results are aligned with our 2025 plan, and as such, we are reaffirming our 2025 weather-adjusted low-growth guidance of 2.5% to 3.5% and our long-term low-growth guidance of 3% through 2029 based on our current expectations.

As we look ahead.

Joe: Commercial load remained relatively flat with a slight increase of <unk>, 8% or 3% weather adjusted.

Speaker Change: Portland General Electric team is focused on managing our business with discipline and foresight.

Joe: We observed another quarter of choppy growth from the industrial class this quarter industrial load increased 16, 4% on both a nominal and weather adjusted basis as.

Speaker Change: Diligently controlling costs and risk management and seeking competitive returns to effectively attract investment.

Joe Trpik: I'll now cover our financial performance quarter over quarter. We experienced a $0.07 increase in total revenues driven by a $0.14 increase from the 4.6% growth in deliveries, partially offset by a $0.07 decrease in revenues due to delivery composition changes. A decrease from power cost of $0.08, driven by a $0.17 EPS decrease due to power cost performance in 2024 that reverses for this comparison, and a $0.09 increase from favorable conditions, which drove lower power costs than anticipated in the annual update tariff. Overall, we are slightly below the PCAM baseline in Q1. An $0.18 EPS decrease from operating expenses made up of $0.04 of O&M, net of improved recovery, and deferral-related items driven primarily by the timing of wages and benefits and professional service costs.

Speaker Change: Delivering value to customers communities and shareholders with that I'll turn it over to Joe Joe.

Joe: As recent load growth trends from data centers and semiconductor customers continued.

Joe: These results are aligned with our 2025 plan and as such we are reaffirming our 2025 weather adjusted load growth guidance of two 5% to three 5% and our long term load growth guidance of 3% through 2029 based.

Joe: Thank you Maria and good morning, everyone.

Joe: Based on our current expectations.

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

Joe: We experienced a 7% increase in total revenues driven by a 14% increase from the four 6% load growth.

Joe: Quarter over quarter or 1% weather adjusted residential.

Joe: Customer count increased by one, 6%, which was offset by energy efficiency driving lower usage per customer.

Joe: Four 6% growth in deliveries, partially offset by a 7% decrease in revenues due to delivery composition changes.

Commercial load remained relatively flat with a slight increase of <unk>, 8% or 3% weather adjusted.

Joe: A decrease from power cost of <unk>, driven by a 17 cents EPS decrease due to power cost performance in 2024 that reverses for this comparison and a 9% increase from favorable conditions, which drove lower power costs and anticipated in the annual update tariff overall were slightly below the <unk> base.

Joe: We observed another quarter of choppy growth from the industrial class this quarter industrial load increased 16, 4% on both a nominal and weather adjusted basis as recent load growth trends from data centers and semiconductor customers continue.

Joe Trpik: $0.11 from higher depreciation and amortization and $0.03 from higher interest expenses driven by higher debt balances in support of the ongoing capital investment.

Joe: <unk> in Q1.

Joe Trpik: And lastly, an $0.11 decrease from other items, including $0.08 from dilution from recent equity draws and $0.03 from other miscellaneous items. Turning to slide six for our five-year capital forecast, which remains consistent with our last disclosure.

Joe: And <unk> <unk> EPS decrease from operating expenses made up of <unk> of O&M net of improved recovery and deferral related items, driven primarily by the timing of wages and benefits and professional service costs.

Joe: Based on our current expectations.

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

Joe: <unk> 11 from higher depreciation and amortization and <unk> <unk> from higher interest expenses, driven by higher debt balances and supported the ongoing capital investments.

Joe: We experienced a 7% increase in total revenues driven by a 14% increase from the four 6% load growth.

Joe Trpik: The incoming Seaside battery remains on track to come in service at the end of June and will complement our existing battery portfolio during peak summer usage. We are advancing our regulatory strategy for Seaside and Q2, consistent with our expedited option introduced in the 2025 GRC order, as we will seek recovery of this important asset that will soon serve customers. Beyond that, we're constructively engaging with parties as we evaluate our long-term regulatory path. While the timing and scope remains fluid, we are focused on options that balance our commitment to affordability while recovering key capital investments serving customers.

Joe: And lastly, an 11% decrease from other items, including eight from dilution from our recent equity draws and <unk> from other miscellaneous items.

Joe: Four 6% growth in deliveries, partially offset by a 7% decrease in revenues due to delivery composition changes.

Joe: A decrease from power cost of <unk>, driven by a 17 EPS decrease due to power cost performance in 2024 that reverses for this comparison and a 9% increase from favorable conditions, which drove lower power costs and anticipated in the annual update tariff overall, we are slightly below the <unk> base.

Turning to slide six for our five year capital forecast, which remains consistent with our last disclosure.

Joe: The incoming seaside battery remains on track to come in service at the end of June and will complement our existing battery portfolio during peak summer usage.

Joe: Advancing our regulatory strategy for <unk> in Q2, consistent with their expedite option introduced in the 2020 by GSE order as we will seek recovery of this important asset will soon serve customers.

Joe: <unk> in Q1.

Joe Trpik: On the resource planning and procurement fronts, we are continuing through negotiations with the 2023 RFP bidders and still expect contract finalization in the second half of the year and projects in service by the end of 2027 under current conditions. Filing of the 2025 IRP update will be made later this quarter and will support the 2025 RFP process, which has advanced through preliminary stages and will fully launch in the second half.

Joe: And <unk> <unk> EPS decrease from operating expenses made up of four cents of O&M net of improved recovery and deferral related items, driven primarily by the timing of wages and benefits and professional service costs.

Joe: Beyond that were constructed engaging with parties as we evaluate our long term regulatory path.

Joe: <unk> 11 from higher depreciation and amortization and <unk> <unk> from higher interest expenses, driven by higher debt balances and supported the ongoing capital investments.

Joe: While the timing and scope remains fluid we are focused on options that balance our commitment to affordability, while recovering key capital investments serving customers.

Joe: On the resource planning and procurement fronts.

Joe: And lastly, an 11% decrease from other items, including eight from dilution from our recent equity draws and <unk> from other miscellaneous items.

Joe: We are continuing through negotiations with the 2023, Rfps bidders and still expect contract Finalization in the second half of the year and project in service by the end of 2027 under current conditions.

Joe Trpik: As Maria mentioned, we are keeping an eye towards federal policy developments, including tariffs, changes in the Inflation Reduction Act, tax policy, and other relevant legislation that may impact our base capital plans for renewable procurement. This is clearly a dynamic situation, but we are engaged on all fronts with suppliers, customers, regulators, policymakers, and other stakeholders as we evaluate collective impact.

Joe: Turning to slide six for our five year capital forecast, which remains consistent with our last disclosure.

Joe: Filling of the 2025 ERP update will be made later this quarter and will support the 2025 RFP process, which has advanced through preliminary stages and will fully launch in the second half.

Joe: The incoming seaside battery remains on track to come in service at the end of June and will complement our existing battery portfolio during peak summer usage.

Joe: As Maria mentioned, we're keeping an eye towards federal policy developments, including tariffs changes in the inflation reduction Act tax policy and other relevant legislation that may impact our base capital plan or renewable procurement.

Joe Trpik: on the slide seven for our Liquidity and Financing Summit. Total liquidity at the end of March was $948 million, and our credit ratings and outlook remain unchanged from the last quarter. We executed $310 million of first mortgage bonds at the end of March and anticipate up to $140 million more of debt financing later this year to support our capital investment plan and general corporate purpose. We priced an additional $87 million under the HTM program in Q1, as we deliberately execute our base financing plan, which remains at $300 million per year for 2025 and 2026.

Joe: Beyond that we're constructively engaging with parties as we evaluate our long term regulatory path.

Joe: This is clearly a dynamic situation, but we are engaged on all fronts with suppliers customers regulators policymakers and other stakeholders as we evaluate collective impacts on.

Joe: While the timing and scope remains fluid we are focus on options that balance our commitment to affordability, while recovering key capital investments serving customers.

On to slide seven for our liquidity and financing summary.

Joe: On the resource planning and procurement fronts.

Joe: Total liquidity at the end of March was $948 million on our credit ratings and outlook remain unchanged from the last quarter we.

Joe: We executed $310 million of first mortgage bonds at the end of March and anticipate up to $140 million more of debt financing later this year to support our capital investment plan and general corporate purposes.

Joe Trpik: The growing needs of customers, clean energy progress, and our commitment to affordability are pushing us towards new solutions that unlock value for our customers and stakeholders. Expanding our financing flexibility remains a priority, and as Maria noted, we are pursuing updates to our structure, including a holding company formation. After making solid headway in Q1, our teams remain focused on advancing key priorities for the balance of 2025. This includes deploying intentional cost management measures to realize lasting efficiencies and the right cost structure. This builds on the foundation we laid in 2024 to identify strategies that improve the efficiency and effectiveness of our work and support lasting strong performance.

Joe: Filling of the 2025 AARP.

Joe: <unk> will be made later this quarter and we will support the 2025 RFP process, which has advanced through preliminary stages and will fully launch in the second half.

Joe: We priced an additional $87 million under the ATM program in Q1, as we deliberately execute our base financing plan, which remains at $300 million per year for 2025 and 2026.

Joe: The growing needs of customers clean energy progress and our commitment to affordability are pushing us towards new solutions that unlock value for our customers and stakeholders.

Joe: This is clearly a dynamic situation, but we are engaged in all fronts with suppliers customers regulators policymakers and other stakeholders as we evaluate collective impacts.

Maria Pope: Expanding our financing flexibility remains a priority and as Maria noted, we are pursuing updates to our structure, including a holding company and coordination.

Joe Trpik: Implementing this plan is challenging, but important as we find ways to streamline our operations, utilizing tools and technology to do high impact work at lower cost. This is critical to support our commitment to customer affordability and bolster our culture to consistently deliver on expectations. Given our progress to date, we are confident in the path forward and our strategy that underpins our near-term and long-term outlook.

Joe: On to slide seven for our liquidity and financing summer.

Maria Pope: After making solid headway in Q1, our teams remain focused on advancing key priorities for the balance of 2025.

Joe: Total liquidity at the end of March was $948 million on our credit ratings and outlook remain unchanged from the last quarter.

Maria Pope: This includes deploying intentional cost management measures to realize lasting efficiencies and the right cost structure.

Maria Pope: This builds on the foundation, we laid in 2024 to identify strategies that improve the efficiency and effectiveness of our work and support lasting strong performance.

Joe: We priced an additional $87 million under the ATM program in Q1, as we deliberately execute our base financing plan, which remains at $300 million per year for 2025 and 2026.

Maria Pope: This plan is challenging but important as we find ways to streamline our operations utilizing tools and technology to do high impact work at lower cost.

Joe Trpik: As such, we are reaffirming our 2025 adjusted earnings guidance of $3.13 to $3.33 per diluted share and our long-term earnings and dividend growth guidance of 5% to 7%.

Maria Pope: This is critical to support our commitment to customer affordability and bolster our culture to consistently deliver on expectations.

Joe: The growing needs of customers clean energy progress and our commitment to affordability are pushing us towards new solutions that unlock value for our customers and stakeholders.

Joe Trpik: We look forward to continued execution for the remainder of the year as we focus on safely delivering reliable, increasingly clean and affordable energy to our customers and the communities we serve.

Maria Pope: Given our progress to date, we are confident in the path forward in our strategy that underpins, our near term and long term outlook.

Joe: Expanding our financing flexibility remains a priority and as Maria noted, we are pursuing updates to our structure, including a holding company formation.

Operator: And now, operator, we are ready for questions. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.

Maria Pope: As such we are reaffirming our 2025 adjusted earnings guidance of $3 13 to $3 33 per diluted share and our long term earnings and dividend growth guidance of 5% to 7%.

Joe: After making solid headway in Q1, our teams remain focused on advancing key priorities for the balance of 2025.

Maria Pope: We look forward to continued execution for the remainder of the year as we focus on safely delivering reliable increasingly clean and affordable energy to our customers and the communities we serve and.

Joe: This includes deploying intentional cost management measures to realize lasting efficiencies and the right cost structure.

Julien Dumoulin-Smith: Our first question comes from the line of Julien Dumoulin-Smith with Jeffreys, your line is now open. Good morning, Julien. Hey, good morning, team. Thank you. Hey, good morning. Appreciate the time, guys.

Joe: This builds on the foundation, we laid in 2024 to identify strategies that improve the efficiency and effectiveness of our work and support lasting strong performance.

Maria Pope: And now operator, we're ready for questions.

Maria Pope: Hey, just wanted to come back on the legislative and just wildfire context. Obviously, you know, I heard the comments earlier. How are you thinking about the progress, and more importantly, just where you're making progress where you aren't specifically, and setting expectations, whether this year or next year, just to lay the groundwork, because obviously, I think that's kind of the linchpin to some of the other subsequent decisions, right, like a hold count. from a timing perspective. And so you're spot on with regards to timing. With regards to progress that we're making, one of the things I think that has really been evident is there are a lot of legislators that really were not aware of the extensive wildfire mitigation plans that we put in place, the extensive increase in vegetation management and the work that we've done in system hardening over the past number of years.

Maria Pope: Thank you as a reminder to ask a question. Please press star one one of your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again please.

Joe: This plan is challenging but important as we find ways to streamline our operations utilizing tools and technology to do high impact work at lower cost.

Maria Pope: Please stand by was how the Q&A roster.

Joe: This is critical to support our commitment to customer affordability and bolster our culture to consistently deliver on expectations.

Speaker Change: Our first question comes from the line of Julien Dumoulin Smith with Jefferies. Your line is now open.

Speaker Change: I think Julian good morning team.

Joe: Given our progress to date, we are confident in the path forward in our strategy that underpins, our near term and long term outlook.

Speaker Change: Hey, good morning, I appreciate the time, guys, Hey, just wanted to come back on the legislative and just wildfire complex obviously.

Joe: As such we are reaffirming our 2025 adjusted earnings guidance of $3 13 to $3 33 per diluted share and our long term earnings and dividend growth guidance of 5% to 7%.

Speaker Change: I heard the comments earlier, how are you thinking about the progress and more importantly, just where youre, making progress where you arent specifically in setting expectations, whether this year or next year just to lay the groundwork because obviously I think that's kind of the linchpin that some of the other subsequent decisions like a holdco it fits from a timing for service.

Joe: We look forward to continued execution for the remainder of the year as we focus on safely delivering reliable increasingly clean and affordable energy to our customers and the communities we serve.

Speaker Change: And you're spot on with regards to the timing with.

Maria Pope: And so there was a lot of discussion over really what it takes, the costs, and the significant increase in costs over the last couple of years for wildfire prevention and mitigation. One of the things that I think is also interesting is that wildfire presents itself very differently in different parts of the state, so we've had a lot of discussions by experts as well as others. Where we have really excelled is with regards to a certificate process, and that has been very important in terms of establishing a well-known and well-understood standard of care, not unlike what you would see in the medical fields or in engineering fields or in many other fields.

Speaker Change: With regards to progress that we're making.

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

Joe: Thank you as a reminder to ask a question. Please press star one one of your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please stand by was how the Q&A roster.

Speaker Change: And one of the things I think that has really been evident is there are a lot of legislators that really were not aware of the extensive wildfire mitigation plans that we put in place the extensive.

Speaker Change: Increase in vegetation management, and the work that we've done and system hardening over the number of past number of years and so there was a lot of discussion of it really what it takes the costs and the significant increase in costs over the last couple of years for wildfire prevention and mitigation one.

Speaker Change: Our first question comes from the line of Julien Dumoulin Smith with Jefferies. Your line is now open.

Speaker Change: Thanks, Julian and good morning to you.

Speaker Change: Hey, good morning, I appreciate the time, guys, Hey, just wanted to come back on the legislative and wildfire complex, obviously I heard the comments earlier, how are you thinking about the progress and more importantly, just where youre, making progress where you are at specifically in setting expectations, whether this year or next year just to lay the groundwork because obviously I think that's kind of the <unk>.

Speaker Change: The things I think is also interesting is is that wildfire presents itself very differently in different parts of the states. So we've had a lot of discussions by experts as well as others.

Maria Pope: And then where we have much more work to do is with regards to a fund, and then also limitations of liabilities associated with accessing that type of fund. So the customers can get access to funds much faster than they would through other processes.

Speaker Change: It depends on some of the other subsequent decisions right like a holdco it fits from a timing for sure.

Speaker Change: Where we have some really excelled as with regards to our certificate process.

Speaker Change: So.

Speaker Change: You're spot on with regards to timing.

Speaker Change: And that has been very important in terms of establishing a well known and well understood standard of care not unlike what you would see in the medical field or in engineering sales are in many other fields.

With regards to progress that we're making.

Maria Pope: We have a lot more work to do there, and I think you'll see that the continuation of discussions even after the legislative session should be very productive.

Speaker Change: One of the things I think that has really been evident is there are a lot of legislators that really were not aware of the extensive wildfire mitigation plans that we've put in place the extensive increase in vegetation management and the work that we've done and system hardening over the number of past number of years and so there was a lot of.

Speaker Change: And then where we have.

Speaker Change: Much more work to do is with regards to a fund.

Speaker Change: And then also limitations of liabilities associated with accessing that type of funds to the customers.

Maria Pope: Excellent, thank you, and then just on the... If I can follow that up real quickly here with where you stand. I mean, you've got the five to seven CAGR out there, and certainly that's dependent on seeing the financing come through with a certain level of dilution. You know, when you think about the decision to follow through on CapEx as we see today, I just wanted to get your sense of confidence, right? We have public statements here from others saying, we're gonna focus on affordability. The same time, we're not seeing the follow through on the wildfire legislation, whether in 25, maybe it happens in 26, but at what point do you say, look, we're gonna pull back on growth because the broader construct is telling us to reassess here?

Speaker Change: Can get access to funds much faster than they would through other processes and we have a lot more work to do there.

Speaker Change: A discussion of it really what it takes the costs and the significant increase in costs over the last couple of years for wildfire prevention and mitigation.

Speaker Change: Youll see that the continuation of discussions even after the legislation legislative session should be very productive.

Speaker Change: One of the things I think is also interesting is.

Speaker Change: Is that wildfire presents itself very differently in different parts of the state. So we've had a lot of discussions by experts.

Speaker Change: Excellent. Thank you and then just almost.

If I can if I can follow that up real quickly here.

Speaker Change: As well as others.

Speaker Change: Where you stand I mean, you've got the 5% to seven CAGR out there.

Speaker Change: We have some really excelled as with regards to our certificate process and that has been very important in terms of establishing a well known and well understood standard of care not unlike what you would see in the medical field or in engineering sales or in many other fields.

Speaker Change: Certainly thats dependent on seeing the financing come through with a certain level of dilution.

Speaker Change: When you think about the decision to follow through on Capex as we see today I just wanted to get your sense of confidence that we have public statements here from others, saying, we were going to focus on affordability at the same time, we're not seeing the follow through on the wildfire.

Maria Pope: I mean, it's a difficult backdrop. I appreciate what you guys are doing, especially from a cost containment perspective, and I wanna highlight that here, but at the same time, so many different pressure points here. Is there a certain moment where you say, we're gonna reassess? Yeah, I think it's a good question, Julien. It's one that we ask ourselves continually. I want just the reminder, and we talked about this pretty extensively on the second quarter, excuse me, on the first quarter call in February, as well as previous. We always thought that the discussion with regards to addressing wildfire in Oregon would take two sessions.

Speaker Change: And then where we have much more work to do is with regards to a fund.

Speaker Change: And then also limitations of liabilities associated with accessing that type of funds. So the customers can get access to funds much faster than they would through other processes and we have a lot more work to do there, but I think youll see that.

Speaker Change: Legislation, whether it's 25% maybe it happens in 'twenty six but.

Speaker Change: The continuation of discussions even after the legislation legislative session should be very productive.

Speaker Change: Cost containment perspective.

Speaker Change: Highlight that here, but at the same time, so many different pressure points here is there a certain moment, where you say we're going to reassess.

Maria Pope: And I'm very appreciative of Representatives Marsh and Mannix for the tireless work that they have done with regards to both bills, but in particular with regards to safety certification. As we move forward, you're right, we're looking at our ability to be able to adequately recover costs and deliver competitive returns and competitive growth for investors. Excellent.

Speaker Change: Yes, I think it's a good question Julien, it's one that we ask ourselves continually.

Speaker Change: Excellent. Thank you and then just almost.

Speaker Change: If I can if I can follow that up real quickly here.

Speaker Change: Just a reminder, and we talked about this pretty extensively on the second quarter or excuse me on our first quarter call in February as well as previous we always thought that the discussion with regards to addressing wildfire.

Speaker Change: Where you stand I mean, you've got the 5% to seven CAGR out there and certainly thats dependent on seeing the financing come through with a certain level of dilution.

Speaker Change: When you think about the decision to follow ups or Capex as we see today I just wanted to get your sense of confidence that we have.

Speaker Change: Oregon would take two sessions.

Speaker Change: And I'm very appreciative of Representatives Marsh and <unk> for their tireless work that they have done with regards to both bills, but in particular with regards to safety certification.

Speaker Change: Public statements here from others, saying, we were going to focus on affordability at the same time, we're not seeing the follow through on the wildfire.

Joe Trpik: Well, look, maybe just the last quick one on timing on the RFPs and any updates there just as far as it goes, because obviously your outlook is pretty sensitive to that. You can just clarify what you're seeing on that front, and I'll leave it there.

Speaker Change: Legislation, whether in 25, maybe it happens to 'twenty six but.

Speaker Change: As we move forward.

Speaker Change: What point do you say look we're going to pull back on growth because the broader construct is telling us to reassess here I mean, it's a difficult backdrop I. Appreciate what you guys are doing especially from a cost containment perspective, and I want to highlight that here, but at the same time. So many different pressure points here is there a certain moment, where you say we're going to reassess.

Speaker Change: You're right we're looking at.

Speaker Change: Our ability to be able to adequately recover costs and deliver.

Maria Pope: So we couldn't be more pleased with the negotiations as they're progressing. Obviously, in the external and global, as well as national environments, there's a lot of noise. But our customer base is growing. Our customer base continues to be focused on clean energy. And we look forward to concluding the negotiations as we go through the balance of the year and bringing on projects in the 2027 time period. I would note that from the last projects we've brought on, we're already seeing tremendous advantages of the battery storage. In fact, we've seen upwards of just under 10% in certain periods of time coming from our battery storage, enabling lower cost energy to be delivered to customers and really taking advantage of the variability across the entire West.

Speaker Change: <unk> returns and competitive growth for investors.

Speaker Change: Excellent well look.

Speaker Change: Maybe just last quick one on timing on the Rfps and any any updates there.

Speaker Change: Yes, I think it's a good question Julien, it's one that we ask ourselves continually.

Speaker Change: As far as it goes because obviously that your outlook is pretty sensitive to that just you can just clarify what you're saying listen I'll leave it there.

Speaker Change: Just a reminder, and we talked about this pretty extensively on the second quarter excuse me in the first quarter call in February as well as previous we always thought that the discussion with regards to addressing wildfire.

Speaker Change: So we couldnt be more pleased with the negotiations as Theyre progressing obviously in the external and global as well as national environments. There is a lot of noise.

Speaker Change: Oregon would take two sessions.

Speaker Change: Very appreciative of Representatives Marsh and manage for the tireless work that they have done with regards to both bills, but in particular with regards to safety certification.

Speaker Change: But our customer base is growing our customer base continues to be focused on clean energy.

Speaker Change: And we look forward to concluding the negotiations as we go through the balance of the year and bringing on projects in the 2027 time period I would note that from the last projects. We've brought on we're already seeing tremendous advantages of the battery storage and in fact, we've seen.

Speaker Change: As we move forward.

Speaker Change: You're right we're looking at.

Speaker Change: Ability to be able to adequately recover costs and deliver.

Julien Dumoulin-Smith: Awesome.

Julien Dumoulin-Smith: Hey, thanks for the time, guys. Hang in there. We'll speak soon, all right? All the best. Great. Thanks, Julien.

Speaker Change: Competitive returns and competitive growth for investors.

Michael Lonegan: Our next question comes from the line of Michael Lonegan with Evercore ISI. Your line is now open. Good morning. Yeah, good morning. Thanks for taking the question. You have, so obviously you've seen strong industrial sales growth driven by semiconductors and data centers, you know, you reiterated your 3% long-term load growth forecast.

Speaker Change: So just under 10% at certain periods of time coming from our vantage battery storage, enabling lower cost energy to be delivered to customers and really taking advantage of the variability across the entire west.

Speaker Change: Excellent well look.

Speaker Change: Maybe just last quick one on timing on the Rfps and any any updates there as far as it goes because obviously that your outlook is pretty sensitive to that you could just clarify what you're saying listen I'll leave it there.

Speaker Change: Hey, Thanks for the time guys hanging there will speak to generate all the best Thanks Julien.

Speaker Change: So we couldnt be more pleased with the negotiations as Theyre progressing obviously in the external and global as well as national environment, There's a lot of noise, but.

Joe Trpik: But given the tariffs and concerns about economic development, just wondering, you know, are you prepared for a potential slowdown in this load growth and a slowdown in capital projects? Just wondering if you could talk about the options you have for, you know, capital potential reallocation and then, and then also what you're expecting in terms of capital inflation. Yeah, so first of all, with regards to our industrial base, it's primarily three areas. The first is a quarter of it is really traditional industrial customers, a quarter. And our fastest growing area is semiconductors, is data centers. That's the fastest growing area by far.

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

Michael: Good morning.

Speaker Change: But our customer base is growing our customer base continues to be focused on clean energy.

Speaker Change: Thanks for taking my question.

Speaker Change: So obviously, you've seen strong industrial sales growth driven by semiconductors and data centers.

Speaker Change: You reiterated your 3% long term load growth forecast.

Speaker Change: But given the tariffs and concerns about economic development. Just wondering are you prepared for a potential slowdown in this load growth and a slowdown in capital projects I just wonder if you could talk about the options you have for <unk>.

Speaker Change: <unk>, so just under 10% at certain periods of time coming from our vantage battery storage, enabling lower cost energy to be delivered to customers and really taking advantage of the variability across the entire west.

Speaker Change: Capital potential reallocation and then and then also what you're expecting in terms of capital inflation.

Joe Trpik: And then about half is semiconductors. We are watching the global market for semiconductors very closely. And between all three of those sectors, we remain very confident in our growth as we move forward. In terms of overall inflation, we've actually seen a moderating of inflation in terms of costs that are impacting us. I would imagine that our customers are seeing somewhat of the same thing. Obviously, that does not come and take into consideration all the discussions with regards to tariffs that are taking place nationally and globally.

Yes.

Speaker Change: So first of all with regards to our industrial base its primarily three areas the <unk>.

Speaker Change: Hey, Thanks for the time guys hanging there will speak to generate all the best Thanks Julien.

Speaker Change: First as a quarter of it is really traditional industrial customers.

Speaker Change: Our quarter and our fastest growing areas semiconductors.

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

Speaker Change: Kidney is data centers.

Speaker Change: That's the fastest growing area by far and then how about half is semiconductors.

Michael: Good morning, Yes. Good morning, Thanks for taking my question.

Watching the global market for semiconductors, very closely and between all three of those sectors. We have remained very confidence.

Michael: So obviously, you've seen strong industrial sales growth driven by semiconductors and data centers.

Michael: You reiterated your 3% long term load growth forecast.

Joe Trpik: Great, thanks. And then, you know, you've talked about monetizing tax credits, you know, to manage your financing plan. Just wondering, how much monetization does your plan currently account for per year? And then, you know, in the event, you know, there was no longer any transferability, what would be your approach to plugging that gap, you know, potentially more equity?

Speaker Change: And our growth as we move forward.

Michael: But given the tariffs and concerns about economic development. Just wondering are you prepared for a potential slowdown in this load growth and a slowdown in capital projects I just wonder if you could talk about the options you have for capital potential reallocation and then and then also what you're expecting in terms of capital inflation.

Speaker Change: In terms of overall inflation, we've actually seen a moderating of inflation in terms of costs that are impacting us I would imagine that our customers are seeing somewhat of the same thing obviously that.

Speaker Change: Does not take into consideration all of the discussions with regards to tariffs that are taking place nationally and globally.

Michael: Yes.

Joe Trpik: General Joe, do you want to address that? So as it relates to our base plan, the only tax credits that are really contemplated in our financing are the ones related to the Seaside project that's about to come online. After that, our base plan and investments in our base plan do not have any additional ITCs or PTCs. We do have, I should say, a small monetization of our PTCs over time, but they're not significant to our financing. As it relates to our growth, when we consider the potential participation in the RFP, we would anticipate, you know, that there can be ITCs in there, but we look at those first as a benefit to a cost reduction to our customers.

So first of all with regards to our industrial base its primarily three areas the <unk>.

Speaker Change: Great. Thanks, and then you've talked about monetizing tax credits to manage your financing plan just wondering how much modernization does your plan currently account for per year and then in the event there was no longer any transferability, what would be your approach to plugging that gap potentially.

Michael: First as a quarter of it is really traditional industrial customers.

Michael: <unk> and our fastest growing areas semiconductors.

Michael: Kidney is data centers.

Michael: That's the fastest growing area by far and then how about half is semiconductors.

Speaker Change: More equity.

Michael: We are watching the global market for semiconductors, very closely and between all three of those sectors. We have remained very confidence.

Speaker Change: Joe do you want to address that so as it relates to our to our base plan. The only tax credits are really contemplated in our financing or the ones related to the <unk> side project, that's about to come online after that our base plan and investments in our base plan do you have any additional itc's ptc's, we do have I shouldnt.

Michael: And our growth as we move forward.

Michael: In terms of overall inflation, we've actually seen a moderating of inflation in terms of costs that are impacting us I would imagine that our customers are seeing somewhat of the same thing obviously that.

Joe Trpik: And then they obviously do have the ability to take some pressure off of our financing. I should say, with the ITCs and PTCs that we've had, that we've monetized to date and the ones that are coming, we continue to see strong interest in the ability to monetize those investments. So, I mean, in short, base plan, you know, other than Seaside, does not rely on the ITCs and long-term that really the ITCs are as much about affordability for our customers and effective pricing.

Speaker Change: I should say, a small monetization of our ptc's overtime, but they're not significant to our financing as it relates to our growth when we consider the potential participation in the RFP.

Michael: Does not come and take into consideration all of the discussions with regards to tariffs that are taking place nationally and globally.

Speaker Change: Would anticipate.

Speaker Change: There are there can be itc's in there, but we look at those first as a benefit to our cost reduction to our to our customers and then they obviously do have the ability to take some pressure off of our our financing I should say with the ITC and PTC is that we've had that we've <unk>.

Michael Lonegan: Great, thanks for taking my question.

Operator: Thank you.

Operator: As a reminder, to ask a question at this time, please press star 11 on your touchtone telephone.

Speaker Change: Monetize to date and the ones that are coming we continue to see strong interest in the ability to monetize those investments.

Richard Sunderland: Our next question comes from the line of Richard Sunderland with J.P. Morgan. Your line is now open. Good morning. Hey, good morning. Thanks for the time today.

Michael: More equity.

Michael: Joe do you want to address that so as it relates to our to our base plan. The only tax credits are really contemplated in our financing or the ones related to the <unk> side project.

Speaker Change: In short based land other than <unk> that does not rely on on the Itc's in long term debt is really the Ics itc's are as much about affordability for our customers and effectively pricing.

Richard Sunderland: Picking up the RFP conversation, do you see any need or potential to pivot resources out of the 2023 RFP and into the 2025 RFP to update pricing for, let's say, tariff or supply chain impact? Good morning. You know, as it relates to pricing, and you know, this isn't very dissimilar from what we saw in 2021, that these type of changes are contemplated. So, we don't, at this point, think there's a need to roll forward. We have a pretty adaptable process. The dialogue that we have with the RFP group right now continues to contemplate these uncertainties.

Michael: To come online after that our base plan and investments in our base plan do you have any additional ITC or PTC, we do have I shouldn't I should say, a small monetization of our ptc's overtime, but they're not significant to our financing as it.

Speaker Change: Great. Thanks for taking my question.

Speaker Change: Thank you Andrew.

Speaker Change: A reminder to ask a question at this time. Please press star one one are intestinal telephone. Our next question comes from the line of Richard Sunderland with Jpmorgan. Your line is now open.

Michael: <unk> to our growth when we consider the potential participation in the RFP.

Richard Sunderland: Good morning.

Speaker Change: Hey, good morning, Thanks for the time today.

Michael: Would anticipate.

Michael: There are there can be.

Richard Sunderland: Picking up the RFP conversation.

Michael: <unk> in there, but we look at those first as a benefit to our cost reduction to our to our customers and then they obviously do have the ability to take some pressure off of our our financing I should say with the ITC and PTC is that we've had that.

Richard Sunderland: Need or potential to pivot resources out of the 2023, RFP and into the 2025 RFP to update pricing for let's say tariff our supply chain impacts.

Speaker Change: Hey, good morning, as it relates to pricing this isn't very dissimilar from what we saw in 2021 that these type of changes are already contemplated. So we don't at this point think theres a need to roll forward, we have a pretty adaptable process.

Joe Trpik: So, at least at this point in time, we believe there are enough vehicles within the actual standing RFP process to adjust as we move in 2021. You know, if you recall, there were some pricing increases, as well as some clarity in the IRA. There was a net increase that we were able to work through subsequent to the RFP process getting into the selection. Got it.

Michael: Monetize to date and the ones that are coming we continue to see strong interest in the ability to monetize those investments.

Michael: In short based land other than <unk> that does not rely on on the Itc's in long term debt is really the icc's itc's are as much about affordability for our customers and effectively pricing.

Michael: Great. Thanks for taking my question.

Speaker Change: The dialogue that we have with the RFP group right now continues to contemplate these uncertainties. So at least at this point in time, we believe there are enough vehicles within the actual standing RFP process to adjust as we move into 2021. If you recall there were some there was some pricing increases as well as some clarity in the <unk> there was a net <unk>.

Michael: Thank you.

Joe Trpik: Does that hold true for the batteries in the 2023 RFP? I mean, are those being sourced from China? As it relates to the batteries, we haven't disclosed where they're sourced from yet, but obviously batteries overall have a majority coming from overseas. But in our dialogue with the parties, we are contemplating ways to address the way that tariffs could impact their batteries, assuming they do have that exposure. And we continue with that dialogue to be on track here to be able to execute here in the second half of the year for these RFPs. Okay, got it.

Speaker Change: A reminder to ask a question at this time. Please press star one one or intestine telephone. Our next question comes from the line of Richard Sunderland with Jpmorgan. Your line is now open.

Richard Sunderland: Good morning.

Richard Sunderland: Hey, good morning, Thanks for the time today.

Speaker Change: Greece that we are able to work through subsequent to the RFP process getting into their selection.

Richard Sunderland: Picking up the RFP conversation.

Richard Sunderland: We need or potential to pivot resources out of the 2023, RFP and into the 2025 RFP to update pricing for let's say tariff our supply chain impacts.

Speaker Change: Got it and does that hold true for the batteries in the 2023 RFP I mean are those being sourced from China.

Speaker Change: Yes.

Speaker Change: Thanks, Good morning.

Speaker Change: As it relates to the batteries.

Speaker Change: As it relates to pricing this isn't very dissimilar from what we saw in 2021 that these type of changes are already.

We haven't disclosed where they are where they are sourced from yet, but obviously batteries overall have a majority coming from overseas, but in our dialogue with the parties. We are contemplating ways to address the way that tariffs could impact.

Joe Trpik: That's helpful.

Maria Pope: And then turning back to some of the comments in the opening script, Maria, I know you mentioned growth as one angle to address affordability. I'm curious if you can speak a little bit more to, I guess, the relationship with that data center customers and how you're getting the right structure with them on minimum guarantees, costs overall, in sort of avoiding that cross subsidization onto existing ratepayers. What's the overall landscape look like in terms of sort of paying your fair share, if that makes sense? You know, it's an excellent question, and it's something that we're spending a lot of time talking about, both in the regulatory and in the legislative arenas.

Speaker Change: Contemplated so we don't at this point I think there's a need to roll.

Speaker Change: Going forward, we have a pretty adaptable process.

Speaker Change: They are batteries, assuming that you have had that exposure and we continue with that dialogue to be on track here to be able to execute here in the second half of the year up for these these rfps.

Speaker Change: Dialog that we have with the RFP group right now continues to contemplate these uncertainties. So at least at this point in time, we believe there are enough vehicles within the actual standing RFP process to adjust as we move into 2021.

Speaker Change: Okay got it that's helpful and then turning back to some of the comments in the opening script.

Speaker Change: Call. There was some there was some pricing increases as well as some clarity in the <unk>. There was a net increase that we are able to work through subsequent to the RFP process getting into the selection.

Speaker Change: I know you mentioned growth as one angle to address affordability I'm curious if you could speak a little bit more to I guess the relationship with that data center customers and how youre getting the right structure with them on minimum guarantees costs overall.

Speaker Change: Got it does that hold true for the batteries in the 2023 RFP I mean are those being sourced from China.

Maria Pope: In fact, there is legislation to address this as we speak. Overall, the impact is in several areas. The first is just overall infrastructure, and as you can see, we've broken out a separate transmission area in our capitalization table. And it's really these new large customers, particularly data centers, that's driving a lot of the need for transmission build-outs, really in the first time and sometimes decades in our service territory. So there is a benefit overall for system reliability. With regards to distribution, some impact there, certainly, but most overall, what you really see is a change in the market price of power.

Speaker Change: As it relates to the batteries, we we haven't disclosed where they are where they're sourced from yet, but obviously batteries overall have a majority coming from from overseas, but in our dialogue with the parties. We are contemplating ways to address the way that tariffs could impact there.

Speaker Change: Sort of avoiding that cross subsidization onto existing ratepayers whats. The overall landscape look like in terms of sort of paying your fair share if that makes sense.

Speaker Change: It's an excellent question and it's something that.

Speaker Change: We're spending a lot of time talking about both in the regulatory and in the legislative.

Speaker Change: They are batteries, assuming that you have that exposure and we continue with that dialogue to be on track here to be able to execute here in the second half of the year up for these these rfps.

Speaker Change: Arena is in fact, there is legislation to address this as we speak.

Speaker Change: Overall, the impact is in several areas that.

Speaker Change: The first is just overall infrastructure and as you can see we've broken out a separate transmission area and our capitalization table.

Speaker Change: Okay got it that's helpful and then turning back to some of the comments in the opening script and Maria I know you mentioned growth as one angle to address affordability I am curious if you could speak a little bit more to I guess the relationship with that data center customers and how you are getting the right structure.

Speaker Change: It's really these new large customers, particularly data centers, that's driving a lot of the need for transmission build outs really in the first time and sometimes decades in our service territory. So there is a benefit overall for system reliability.

Maria Pope: As the increasing demand comes from data centers, whether we are serving them or other utilities in the Pacific Northwest, and we need to be doing more direct procurement for those. And we do have some programs that allow for that already, and we're working directly with customers. I would also say that the data centers bring additional stability to the grid. We have some data centers that are bringing battery stores. We have some that have backup, many of backup generation, and that is something that we have been working on for years and has accelerated our virtual power plant process.

Speaker Change: Sure with them on minimum guarantees costs overall.

Speaker Change: With regards to.

Speaker Change: Distribution some impacts there.

Speaker Change: Sort of avoiding that cross subsidization on to existing ratepayers whats. The overall landscape look like in terms of sort of paying your fair share if that makes sense.

Speaker Change: Certainly.

Speaker Change: Most overall, what you really see as a change in the market price of power as the increasing demand comes from data centers, whether we're serving them or other utilities in the Pacific northwest.

Speaker Change: Yes, it's an excellent question and it's something that we're spending a lot of time talking about both in the regulatory and in the Legislative Arena is in fact, there is legislation to address this as we speak.

Speaker Change: And we need to be doing more direct procurement for those and we do have some programs that allow for that already and we're working directly with customers.

Maria Pope: Great, thank you so much. Thank you.

Speaker Change: Overall, the impact is in several areas.

Nathan Richardson: Our next question comes from the line of Nathan Richardson with Barclays. Your line is now open. Hey everybody, how are you? Good morning. Just a couple of quick questions here. So I just want to clarify. So I believe you said that you intend to do an expedited seaside case. I was wondering if there was any. for details about that.

Speaker Change: The first is just overall infrastructure and as you can see we've broken out a separate transmission area and our capitalization table.

Speaker Change: I would also say that the data centers spurring additional stability to the grid. We have seven data centers that are bringing battery stores. We have some that have backup gen. Many of backup generation.

Speaker Change: And it's really these new large customers, particularly data centers, that's driving a lot of need for transmission build outs really in the first time and sometimes decades in our service territory. So there is a benefit overall for system reliability with.

Speaker Change: And that is something that we had been working on for years and accelerated our virtual power plant process.

Speaker Change: Great. Thank you so much.

Joe Trpik: So, yes, we do plan, as you may recall, in the 2025 GRC that was proposed to us. It's a bit unique as it's not something we've done before. We're in the process of finalizing the details with the party through constructed dialogue, so we would expect that to be filed here sometime in the coming months, days, year or so shortly. And, you know, it's pretty simple as it relates to just clarifying the mechanism on when and how we recover the cost. But we think, you know, the dialogue has been productive to date, and so we look forward to being able to file this and work forward.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Nathan Richardson with Barclays. Your line is now open.

Speaker Change: With regards to.

Speaker Change: Distribution some impacts there.

Speaker Change: Certainly, but most overall, what you really see as a change in the market price of power.

Nathan Richardson: Hey, everybody how are you.

Speaker Change: Morning.

Speaker Change: Just a couple of quick questions here. So I just wanted to clarify so I believe you said that you intend to do an expedited seaside case I was wondering if there was any more details about that.

Speaker Change: As the increasing demand comes from data centers, whether we're serving them or other utilities in the Pacific northwest.

Speaker Change: And we need to be doing more direct procurement for those and we do have some programs that allow for that already and we're working directly with customers.

Speaker Change: Okay, Yes, so yes, we do plan as you may recall in the 2025 <unk> of that was proposed to US. It is a bit unique as it is not something we've done before we're we're in the process of finalizing the details with the party through constructive dialogue. So we would expect that to be filed here sometime in the coming.

Speaker Change: I would also say that the data centers spurring additional stability to the grid. We have several data centers that are bringing battery stores. We have some that have backup gen. Many of backup generation.

Nathan Richardson: Got it, that makes sense.

Joe Trpik: And then last one. So sequentially, the equity layer seems to have gone down a little bit. I was curious where you think you'll be at the end of the year with the current equity issuance of the plan. Part 2 of that is, what do you think the trajectory is to get back to 50% and do you have a rough time? You know, so, you know, as we mentioned before, we've drawn down as it relates to the, I shouldn't say drawn down, we've issued under the ATM up to a hundred million so far, right? Our capital plan to date needs three hundred, you know, current pricing as it relates to the market, although not where we would like it to be, is somewhere that we believe we continue to make pretty, you know, investments that are not dilutive here.

Speaker Change: In the coming months days here so shortly.

Speaker Change: And that is something that we had been working on for years and it's accelerated our virtual power plant process.

Speaker Change: And it's pretty simple as it as it relates to just clarifying the mechanism.

Speaker Change: Great. Thank you so much.

Speaker Change: When when and how we cover the cost, but we think the die.

Speaker Change: Thank you.

Speaker Change: Dialogues been productive to date.

Speaker Change: Our next question comes from the line of Nathan Richardson with Barclays. Your line is now open.

Speaker Change: So we look forward to being able to file this workload.

Speaker Change: Got it that makes sense and then last one so sequentially the equity layer standards have gone down a little bit I was curious where you think you'll be at the end of the year with the current equity issuance in the plan and then part two to that is what do you think the trajectory is to get back to 50% and you have a rough timeline on that.

Nathan Richardson: Hey, everybody how are you.

Speaker Change: Morning.

Speaker Change: Yes, so yes, we do plan as you may recall in the 2025 <unk> of that was proposed to us it's a bit unique as it is not something we've done before we're we're in the process of finalizing the details with the party through constructive dialogue. So we would expect that to be filed here sometime in the coming.

Nathan Richardson: We think as we work forward here, we continue to be committed and think even at these kinds of prices, we can work towards our fifty-fifty cap structure going forward. Got it. Thank you very much. Thank you.

Speaker Change: So as we mentioned before we've drawn down as it relates to the I Shouldnt say drawdown, we've issued under the ATM up to 100 $100 million. So far radar capital plan to date needs 300.

Speaker Change: Current current pricing as it relates to the market, although not where we would we'd like it to be is is somewhere that we believe we continue to make investments that are not not dilutive here.

Anthony Crowdell: Our next question comes from the line of Anthony Crowdell with Mizuho. Your line is now open. Hey, good morning, team. My question to probably follow up on the last one, and Julien on the holding company. I think, Joe, you mentioned about targeting the 50-50. Does it require the holding company to be established before you achieve the 50-50? As it relates to that, no, our financing plan and our strategy to get to 50-50, which would obviously be at the utility, is exclusive of and does not rely upon a holding company strategy. That is just our straight up plan.

Speaker Change: <unk>.

Speaker Change: Coming months days here so shortly.

Speaker Change: And it's pretty simple as it relates to just clarify the mechanism on when when and how we cover the costs, but we think the dialogues been productive to date.

Speaker Change: We think as we work forward here, we continue to be committed to think even at these kind of prices. We can work towards our 50 50 cap structure.

Speaker Change: So we look forward to being able to file this workload.

Speaker Change: Going forward.

Speaker Change: Got it thank you very much.

Speaker Change: Thank you.

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

Anthony: Hey, good morning team my questions I'll, probably follow up on the last one and Julian on the holding company.

Speaker Change: Joe you mentioned about targeting a 50 50.

Joe Trpik: And then when you think about the creation of the holding company, is there a targeted level of debt that you would look to, you know, maintain at the holding company? You know, you know, it's too early to get to specifics on that. Obviously, we want to use the holding company here to give us the flexibility to continue to be able to, you know, efficiently finance and manage our costs for the customer. But, but today, you know, there's nothing specific other than the focus that the holding company will drive flexibility, will continue to support a customer back.

Speaker Change: So as we mentioned before we've drawn down as it relates to the I Shouldnt say dropdown, we've issued under the ATM up to 100 $100 million. So far right. Our capital plan to date needs 300 current current pricing as it relates to the market, although not where we would we'd like it to be in.

Speaker Change: Does it require the holding company to be established before you achieve that 50 50.

Speaker Change: As it relates to that our financing plan and our strategy to get to 50, 50, which would obviously be at the utility is exclusive of it does not rely upon.

Speaker Change: Holding company strategy.

Speaker Change: <unk> is somewhere that we believe we continue to make investments that are not not dilutive here.

Speaker Change: Is there any of that is just our our straight up plan.

Speaker Change: And then when you think about the accretion of the holding company is there a targeted level of debt that you would look to maintain at the holding company.

Speaker Change: We think as we work forward here, we continue to be committed think even at these kind of prices. We can work towards our 50 50 cap structure.

Joe Trpik: And, you know, we expect over this, this process, which I think we've mentioned would take up to a year, we'll get further clarity there just and expect that we will stay within our, with our reasonable norms for those types of those types of structures.

Speaker Change: Going forward.

Speaker Change: It's too early to get to the specifics on that obviously, we want to use the holding company here to give us the flexibility to continue to be able to efficiently finance and manage our costs for the customer, but but to date, there's nothing specific other than the focus that.

Speaker Change: Got it thank you very much.

Speaker Change: Thank you.

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

Joe Trpik: And just, I'm not familiar with Oregon, if there's any issues in the state from a regulatory perspective on double leverage, if the equity and debt ratios at the holding company differ from that of the OPCO. You know, to date, I can't say that there's anything specific there. I do think that as we work through with with the regulator here, we'll clarify through, you know, a set of agreements and stipulations on how the holding company will work. But if you ask specifically to provisions as relates to that, I do not believe there are. Great. Thanks so much for taking my question.

Speaker Change: Hey, good morning team my questions I'll, probably follow up on the last one and Julian on the holding company.

Speaker Change: Holding company will drive flexibility will continue to support.

Speaker Change: I think Joe you mentioned about targeting a 50 50.

Speaker Change: Customer bad and we expect over this process, which I think we've mentioned would take up to a year, we'll get further clarity there just and expect that we will stay within our with our reasonable norms for those type of those.

Speaker Change: It required the holding company to be established before you achieve that 50 50.

Speaker Change: As it relates to that our financing plan and our strategy to get to 50, 50, which would obviously be at the utility is exclusive of <unk> does not rely upon.

Speaker Change: Those type of structures.

Speaker Change: And just I'm not familiar with Oregon, if there is any issues in the state from a regulatory perspective on double leverage.

Speaker Change: Holding company strategy.

Is there any of that is just our our straight up plan.

Speaker Change: Equity and debt ratios at the holding company differ from that of the Opco.

Speaker Change: And then when you think about the accretion of the holding company is there a targeted level of debt that you would look to maintain at the holding company.

Anthony Crowdell: Thank you.

Gregg Orrill: Our next question comes from the line of Gregg Orrill with UBS. Your line is now open.

Speaker Change: Yes.

Speaker Change: To date, I cant say that Theres anything specific there I do think that as we work through with with the regulator here will clarify through a set of agreements and stipulations on how the holding company will work, but if you ask specifically two provisions as it relates to that I do not believe there are.

Gregg Orrill: Morning, Gregg. Yeah, good morning. Thank you.

Speaker Change: It's too early to get to the specifics on that obviously, we want to use the holding company here to give us the flexibility to continue to be able to efficiently finance and manage our cost for the customer, but but to date. There is nothing specific other than the focus that the holding company will drive flexibility we will continue.

Joe Trpik: Maybe you hit this already, just the timing of pursuing the whole code proposal. We'll be filing something in the latter part of the second quarter. Okay, all right.

Great. Thanks, so much for taking my questions.

Speaker Change: Thank you our next.

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

Speaker Change: To support.

Speaker Change: Customer about and we expect over this process, which I think we've mentioned would take up to a year, we'll get further clarity there just expect that we will stay within our with our reasonable norms for those type of.

Gregg Orrill: That's the only question I had. Appreciate it. Great. Thanks, Gregg.

Speaker Change: Good morning, Greg.

Gregg: Yes, good morning.

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

Speaker Change: Thank you.

Maria Pope: I'd like to turn the call back over to Maria Pope for closing remarks. Thank you all for joining us today. We appreciate your interest in Portland General Electric, and we look forward to connecting with everyone soon. Thank you very much.

Speaker Change: Just.

Speaker Change: Maybe you hit this already just the timing of.

Speaker Change: Those type of structures.

Speaker Change: Pursuing the Holdco proposal.

Speaker Change: And just I'm not familiar with Oregon, if there is any issues in the state from a regulatory perspective on double leverage.

Speaker Change: We will be filing something in the latter part of the second quarter.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: Okay.

Speaker Change: Equity and debt ratios at the holding company differ from that of the Opco.

Speaker Change: Right.

Speaker Change: That's the only question I had I appreciate it great.

Speaker Change: Yes.

Craig: Thanks, Craig.

Speaker Change: Today, I cant say that Theres anything specific there I do think that as we work through with with the regulator here will clarify through a set of agreements and stipulations on how the holding company will work, but if you asked specifically to provision as it relates to that I do not believe there are.

Speaker Change: Thank you and I'm currently showing no further questions at this time I would like to turn the call back over to Maria Pope for closing remarks.

Speaker Change: Thank you all for joining US today, we appreciate your interest in Portland General Electric and we look forward to connecting with everyone. Soon thank you very much.

This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Great. Thanks, so much for taking my questions.

Speaker Change: Thank you.

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

Speaker Change: Good morning, Greg.

Gregg: Yes, good morning.

Speaker Change: Thank you.

Speaker Change: Just.

Speaker Change: Maybe you hit this already just the timing of.

Speaker Change: Pursuing the Holdco proposal.

Speaker Change: We'll be filing something in the latter part of the second quarter.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: That's the only question I had I appreciate it thanks.

Craig: Thanks, Craig.

Speaker Change: Thank you and I'm currently showing no further questions at this time I would like to turn the call back over to Maria Pope for closing remarks.

Maria Pope: Thank you all for joining US today, we appreciate your interest in Portland General Electric and we look forward to connecting with everyone. Soon thank you very much.

Maria Pope: This concludes today's conference call. Thank you for your participation you may now disconnect.

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Speaker Change: Good morning, everyone and welcome to Portland General Electric Companys first quarter 2025 earnings results Conference call. Today's Friday April 25, 2025. This call is being recorded and as such all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer period. If you would like to ask a question during this.

Maria Pope: <unk> simply press Star and then numbers one one on your telephone keypad.

Maria Pope: If you would like to withdraw your question. Please press star one again, if you do intend to ask a question. Please avoid the use of speaker phones for opening remarks, I will turn the conference call over to Portland General Electrics manager of Investor Relations. Nick White. Please go ahead Sir.

Speaker Change: Thank you Shannon good morning, everyone. We are happy you can join us today.

Speaker Change: 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 <unk> Portland General Dotcom.

Maria Pope: 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 Pope: 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 Pope: Morning, and thank you all for joining us today.

Maria Pope: General Electric announced.

Maria Pope: Advanced key priorities in the first quarter.

Laying the foundation for solid results diligent cost management and strong execution in 2025 and beyond.

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

Maria Pope: For the first quarter, we reported GAAP net income of 100 million or <unk> 91 per diluted share. This compares with first quarter 2024, GAAP net income of $109 million or $1 eight per diluted share and non-GAAP net income of $123 million or $1 21 per share.

Maria Pope: Our first quarter results reflect the continuation of strong load growth.

Speaker Change: Hi Tech and data center customers.

Speaker Change: Four 6% total loan growth in industrial load growth of 16, 4% compared to the same quarter last year.

Speaker Change: PGE serves five large semiconductor customers and over 10 significant data center providers that are spread across dozens of sites, making up nearly a quarter of our total deliveries.

Speaker Change: This growth is driving important capital improvements and upgrades across our transmission and distribution systems.

Speaker Change: These investments advanced critical energy security and resource adequacy calls shared by customers and the communities. We serve and also address aging infrastructure needs and enable the economic engine of our service territory.

Speaker Change: Our strategy drives our work to build the reliable affordable and increasingly clean grid of the future.

Speaker Change: Including the ongoing 2023, and 2025 Rfps and the forthcoming 2025 ERP update.

Speaker Change: Credit transferability and other provisions under the IRA and <unk> as well as closely following the ongoing tariff situation.

Speaker Change: Dream weather.

Speaker Change: Our mature year round wildfire mitigation work is advancing as we deploy lessons learned from recent wildfires and sharpen our practices ahead of summer.

Speaker Change: In 2025, we plan to spend over $120 million on our wildfire mitigation, including capital investments and O&M.

Speaker Change: We're working with elected officials and stakeholders on legislation to address the financial risk from wildfires.

Speaker Change: Creating clear standards for the work utilities due to prevent wildfires and keep communities safe is essential.

Speaker Change: Clear standards would reduce the likelihood of wildfires being true.

Speaker Change: Record by utility equipment, as well as enhanced services liability lowest customer costs and provides economic stability for Oregon's communities.

Speaker Change: We're pleased to see continued progress on this important policy.

Speaker Change: While proposed legislation to create to.

Speaker Change: Create a catastrophic wildfire fund has not move forward.

Speaker Change: The ongoing dialogue with stakeholders represents productive progress.

Speaker Change: Pacific Northwest States are just beginning to grapple with the liability issues related to wildfire risk.

Speaker Change: And as I said on our last call. These policies may take more than one session to achieve.

Speaker Change: When it comes to affordability there are several areas that also come together to reduce upward customer bell pressure.

Speaker Change: Growth, serving our growing customer base allows us to spread out operating costs and investments over a larger volumes of business.

Speaker Change: Cost management, our companywide work to reduce O&M costs is well underway.

Speaker Change: Evaluating every program and reducing costs to help keep customer prices as low as possible.

Speaker Change: Joe will cover this work in greater detail in his remarks.

Speaker Change: As discussed on our previous call.

Q1 2025 Portland General Electric Co Earnings Call

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