Q3 2025 Portland General Electric Co Earnings Call

October 31, 2025

Over 31st 2025. This call is being recorded and as such all lines have been placed on mute to prevent any background noise.

<unk> first 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 numbers one one on your telephone keypad.

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.

If you would like to withdraw your question. Please press star one one again if.

If you do intend to ask a question. Please avoid the use of speaker phones.

For opening remarks, I will turn the conference over to Portland General Electrics manager of Investor Relations. Nick White. Please go ahead Sir.

Speaker #1: Good morning, everyone, and welcome to Portland General Electric Company's third quarter 2025 earnings results conference call. Today is Friday, October 31st, 2025. This call is being recorded, and as such, all lines have been placed on mute to prevent any background noise.

Thank you Michele good morning, everyone and thank you for joining us today.

Before we begin 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, referring to slide two some of our remarks. This morning will constitute forward looking statements. We caution you that such statements involve inherent risks.

Before we begin 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 Dot com, referring to slide two some of our remarks. This morning will constitute forward looking statements. We caution you that such statements involve inherent risks.

Speaker #1: 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 numbers 11 on your telephone keypad.

And uncertainties and actual results may differ materially from our expectations.

Speaker #1: If you would like to withdraw your question, please press star, 11 again. If you do intend to ask a question, please avoid the use of speakerphones.

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 #1: For opening remarks, I will turn the conference over to Portland General Electric's manager of investor relations, Nick White. Please go ahead, sir.

Turning to slide three leading our discussion today are Maria Pope President and CEO and Joe <unk> Senior Vice President of Finance and CFO. Following their prepared remarks, we will open the line for your questions now, it's my pleasure to turn the call over to Maria.

Speaker #2: Thank you, Michelle. Good morning, everyone, and thank you for joining us today. Before we begin, I would like to remind you that we have prepared a presentation to supplement our discussion, which we will be referencing throughout the call.

Good morning, and thank you all for joining us today.

Speaker #2: The slides are available on our website, and investors.portlandgeneral.com. Referring to slide two, some of our remarks this morning will constitute forward-looking statements. We caution you that such statements involve inherent risks and uncertainties and actual results may differ materially from our expectations.

We delivered another strong quarter in Q3, and we maintain our laser focus on execution.

Driving value and advancing our five strategic priorities.

Starting on slide four.

First.

Speaker #2: 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.

Investing in customer driven clean energy goals.

Second working to keep customer prices as low as possible.

Third supporting data center and high Tech growth in the regions economic development.

Speaker #2: 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.

Fourth reducing risk to operational execution.

Fourth reducing risk to operational execution system, hardening and wildfire policies and fifth promoting an investable energy future.

Some hardening and wildfire policies and fifth promoting an investable energy future.

Speaker #2: Now, it's my pleasure to turn the call over to Maria.

Our industry and Portland General are seeing tremendous growth.

Speaker #3: Good morning, and thank you all for joining us today. We delivered another strong quarter in Q3, and we maintain our laser focus on execution, driving value, and advancing our five strategic priorities.

So 2019 high tech manufacturing and infrastructure investments have resulted in over 8% industrial growth, which is expected to only increase.

So 2019 high tech manufacturing and infrastructure investments have resulted in over 8% industrial growth, which is expected to only increase driver.

Driving our overall load growth of 3% through the end of the decade.

Speaker #3: Starting on slide four, first, investing in customer-driven clean energy goals. Second, working to keep customer prices as low as possible. Third, supporting data center and high-tech growth in the region's economic development.

Portland General customers and our region remained focused on clean energy.

Portland General customers.

And our region remained focused on clean energy.

We are also focused on affordability as we work to keep our cost structure flat and customer prices as low as possible.

We are also focused on affordability as we work to keep our cost structure flat and customer prices as low as possible in turn providing stable competitive returns to shareholders.

Speaker #3: Fourth, reducing risk through operational execution. System hardening and wildfire policies. And fifth, promoting an investable energy future. Our industry and Portland General are seeing tremendous growth.

In turn providing stable competitive returns to shareholders.

I'll cover the progress we've made in each of these five priorities.

I'll cover the progress we've made in each of these five priorities before highlighting this quarters results.

Before highlighting this quarters results.

Clean energy.

Given the dynamic policy and market environment for clean energy.

Given the dynamic policy and market environment for clean energy, our state and company are accelerating to meet the moment.

Speaker #3: Since 2019, high-tech manufacturing and infrastructure investments have resulted in over 8% industrial growth, which is expected to only increase. Driving our overall load growth of 3% through the end of the decade.

Our state and company are accelerating to meet the moment.

Earlier this month, Oregon Governor <unk> issued an executive order aimed at accelerating renewable energy development of our federal tax credits expire in.

Earlier this month, Oregon Governor <unk> issued an executive order aimed at accelerating renewable energy development of our federal tax credits expire.

Speaker #3: Portland General's customers and our region remain focused on clean energy. We are also focused on affordability as we work to keep our cost structure flat and customer prices as low as possible.

An important step that supports continued progress towards the state's goals.

This dovetails with the multi pronged procurement strategy PGE deployed in July to maximize the approximate 30% federal tax credits that directly lowers cost for customers.

Speaker #3: In turn, providing stable, competitive returns to shareholders. I'll cover the progress we've made in each of these five priorities before highlighting this quarter's results.

As part of the 2023, RFP, we undertook a price refresh to capture the impacts of the one big beautiful Bill and trade tariffs, which culminated in an updated shortlist filed with the commission earlier this month.

Speaker #3: Clean energy. Given the dynamic policy and market environment for clean energy, our state and company are accelerating to meet the moment. Earlier this month, Oregon Governor Tina Kotek issued an executive order aimed at accelerating renewable energy development before federal tax credits expire.

The shortlist reflects our rigorous least cost least risk approach designed to yield reliable affordable outcomes on timelines responses to evolving legislative requirements.

The shortlist reflects our rigorous lease cost least risk approach designed to yield reliable affordable outcomes on timelines responses to evolving legislative requirements.

Speaker #3: An important step that supports continued progress for the state's goals. This dovetails with the multi-pronged procurement strategy PGE deployed in July to maximize the approximate 30% federal tax credits that directly lowers costs for customers.

In parallel we saw community based renewable energy and bilateral ppas for energy and capacity, which are yielding additional projects.

Finally, we took a critical step forward in the 2025 RSP was also launched in July.

Speaker #3: As part of the 2023 RFP, we undertook a price refresh to capture the impacts of the One Big, Beautiful Bill and trade tariffs, which culminated in an updated shortlist filed with the Commission earlier this month.

All bids have been received and we are now evaluating projects and building towards contract execution in 2026.

Every element of our strategy.

Prioritizes reliable delivery of energy to customers, while maximizing the window of federal clean energy tax credits.

Right.

To date, we have secured over $1 billion of Ptc's and Itc's for our our own clean energy portfolio and.

We have secured over $1 billion of Ptc's and Itc's for our own clean energy portfolio.

And we estimate as much as a another $1 billion from long term.

And we estimate as much as another $1 billion from long term.

Third party energy contracts.

This is just one part of our approach that enables clean energy affordability.

This is just one part of our approach that enables clean energy affordability, allowing our customers to receive the full benefit of high value clean energy resources at the lowest cost possible.

Allowing our customers to receive the full benefit of high value clean energy resources at the lowest cost possible.

Customer affordability.

The customer affordability commitment are multi year management program continues to deliver great results.

The customer affordability commitment our multiyear management program continues to deliver great results.

This work touches every corner of our company as we focus on safe reliable service, while keeping customer prices as low as possible.

This work touches every corner of our company as we focus on safe reliable surface, while keeping customer prices as low as possible.

Joe will cover more about our progress in detail shortly.

Customer growth.

We continue to see significant load growth.

With total load up over 5% compared to the same quarter last year.

Our industrial customers led again by data centers and semiconductor manufacturers grew their energy usage by over 13% as these customers expand their existing facilities and develop new sites.

Our industrial customers led again by data centers and semiconductor manufacturers grew.

<unk> grew their energy usage by over 13% as these customers expand their existing facilities and develop new sites.

This builds upon over a decade of high tech manufacturing and infrastructure expansion in the region.

We're continuing to plan and execute alongside our customers as they scale and ramp their operations.

The passage of Oregon's data center legislation.

The passage of Oregon's data center legislation, which will be implemented through regulatory proceedings. Concluding next March provides ratemaking clarity improved cost allocation and importantly margin expansion from <unk> fastest growing industrial customers.

It will be implemented through regulatory proceedings concluded next March provides ratemaking clarity improved cost allocation and importantly margin expansion from p&g's fastest growing industrial customers.

Building on this supportive policy, we're investing in new transmission and utilizing a combination of system upgrades.

These include dynamic line ratings, AI data analytics and customer sided solutions to maximize new investments and leverage existing infrastructure.

These include dynamic line ratings.

Data analytics and customer sited solutions to maximize new investments and leverage existing infrastructure.

<unk> recently completed a project with AI startup grid care.

<unk> recently completed a project with AI startup grid cure that leverages flexibility in data center usage applying generative AI forecasting to unlock additional system capacity.

That leverages flexibility in data center usage.

<unk> generative AI forecasting to unlock additional system capacity.

We also achieved a first of its kind solution alongside distributed storage provider calibrate Angie and digital infrastructure provider aligned data centers there.

We also achieved a first of its kind solution alongside distributed storage provider calibrate Angie and digital infrastructure provider aligned data centers.

<unk> will deliver a battery system to aligns campus, enabling the facility to come online in scale operations years earlier than previously expected.

The agreement will deliver a battery system to aligns campus, enabling the facility to come online in scale operations years earlier than previously expected.

Building on this supportive policy, we're investing in new transmission and utilizing a combination of system upgrades.

Yes.

Hi Tech manufacturing and digital infrastructure are important contributors to the strength of Oregon's economy.

I'd like to reiterate that for Portland General Electric this load growth isn't theoretical.

These include dynamic line ratings, AI data analytics, and customer-sighted solutions to maximize new investments and leverage existing infrastructure.

For years.

Four years.

We have been meeting this significant and growing customer energy usage quarter over quarter.

The recently completed a project with AI startup Grid Care that leverages flexibility in data center usage.

Today, we're working with regulators and parties to ensure that costs are fairly allocated across customer groups.

Applying generative AI forecasting to unlock additional assistance capacity.

Industrial growth is helping us spread fixed costs of our system across a larger base.

We also achieved a first of its kind solution alongside distributed storage provider, calibrate energy and digital infrastructure provider aligned data centers.

Support affordability for all customers.

Risk management.

Wildfire season has officially ended in our service area.

The agreement will deliver a battery system to align campus. Enabling the facility to come online and scale operations years earlier than previously, expected.

A comprehensive year end mitigation programs continues as we work to deliver results.

Our comprehensive year end mitigation programs continues as we work to deliver results.

Hardening the system, enhancing situational awareness and deploying technology to protect our communities and improve reliability.

Hi-Tech. Manufacturing and digital infrastructure are important contributors to the strength of Oregon's economy.

We recognize that more is needed to address the collective risks presented by wildfires in extreme weather.

I'd like to reiterate that for Portland General Electric. This load growth isn't theoretical.

We recognize that more is needed to address the collective risks presented by wildfires in extreme weather.

For years.

We have been meeting this significant and growing customer energy. Usage order over a quarter.

We remain committed to working with policymakers to find meaningful answers to these complex issues.

Wildfire risk is a societal wide problem and we are working on operational legislative regulatory and other outcomes to deliver societal wide solutions.

Today we're working with regulators and parties to ensure that costs are fairly allocated across customer groups.

Industrial growth is helping us. Spread fixed costs of our system across a larger base.

Support affordability for all customers.

And investable energy future.

Risk management.

Lastly, an update on our regulatory proceedings and proposed update to our corporate structure.

Wildfire season has officially ended in our service area.

Last week, we received the order on the fee side alternative recovery mechanism for the largest standalone battery on our system.

Last week, we received the order on the C side alternative recovery mechanism for the largest standalone battery on our system.

Our comprehensive year-round mitigation programs continue as we work to deliver results.

The order represents a constructive outcome and was supported by the memorandum of understanding reached with parties back in the spring.

Hardening the system, enhancing situational awareness and deploying technology to protect our communities and improve reliability.

This is an important step forward in our ongoing cooperation with our regulatory stakeholders.

We recognize that more is needed to address the collective risks presented by wildfires and extreme weather.

We appreciate the careful consideration of the commission and the collaboration with staff and Intervenors.

We remain committed to working with policy makers, to find meaningful answers to these complex issues.

The distributed system plan arm remains on track and we continue to expect a resolution in the first part of next year.

The distributor system plan arm remains on track and we continue to expect resolution in the first part of next year.

Wildfire risk is a societal wide problem and we are working on operational, legislative Regulatory and other outcomes to deliver societal wide solutionz.

The proceedings for Pge's proposed creation of our holding company and transmission company are also progressing as expected.

An investable energy future.

Lastly, an update on our regulatory proceedings and proposed update to our corporate structure.

The docket now includes a procedural schedule with a target date of June 2026.

The proposed holding company update aligns pge's corporate structure to industry standards.

Last week, we received the order on the seaside alternative recovery mechanism for the largest Standalone battery on our system.

The proposed holding company update aligns pge's corporate structure to industry standards.

Both the holding company and the transmission company enable improved financing flexibility that will yield benefits for customers and shareholders.

The order represents the constructive outcome and was supported by the memorandum of understanding reached with parties back in the spring.

Both the holding company and the transmission company enable improved financing flexibility that will yield benefits for customers and shareholders.

This is an important step forward in our ongoing cooperation with the regulatory stakeholders.

We look forward to continued engagement with stakeholders to reach outcomes that encourage investment in Oregon, and advance our customers' and states long term goals.

We appreciate the careful consideration of the commission and the collaboration with staff and interveners.

The distributed system plan remains on track.

I'll now turn to slide five for our financial results.

And we continue to expect resolution in the first part of next year.

For the third quarter, we reported GAAP net income of $103 million or <unk> 94 per diluted share.

The proceedings for PGE's proposed creation of a holding company and transmission company are also progressing as expected.

A non-GAAP basis, net income was $110 million or $1 per share with.

A non-GAAP basis, net income was $110 million or $1 per share. This compares to third quarter 2024, GAAP net income of $94 million or <unk> 97 per diluted share.

This compares to third quarter 2024, GAAP net income of 94 million or <unk> 97 per diluted share.

The docket now includes a procedural schedule with a Target date of June 2026.

Q2, our non-GAAP results exclude business transformation and optimization expenses from the customer affordability commitment and updates to our corporate structure.

Similar to Q2, our non-GAAP results exclude business transformation optimization expenses from the customer affordability commitment and updates to our corporate structure.

The proposed holding company update aligns PGE's corporate structure to industry standards.

Results this quarter underscore the mission of our company and my commitment to executing with disciplined advancing our strategy and delivering value to customers communities and shareholders.

Both the holding company and the transmission company, enable improved financing flexibility. That will yield benefits for customers and shareholders.

Results this quarter underscore the mission of our company and my commitment to executing with discipline.

Dancing, our strategy on delivering value to customers communities and shareholders.

We look forward to continuing engagement with stakeholders to reach outcomes that encourage investment in Oregon and advance our customers' and state's long-term goals.

Our team is laser focused on execution and results finish.

Our team is laser focused on execution and results.

I'll now turn to slide 5 for our financial results.

Finishing 2025 strong and building off our momentum of our continued success in the years ahead with that I'll turn it over to Joe Joe.

For the third quarter, we reported gaap net, income of 103 million or 94 cents per Google share.

You Maria and good morning, everyone Q3 was another solid quarter and reflects the strength of our strategy. We are serving significant demand growth and executing our cost management program with discipline and focus.

Thank you Maria and good morning, everyone.

On non-gaap basis. Net income was 110 million or a dollar per share.

Q3 was another solid quarter and reflects the strength of our strategy, we're serving significant demand growth and executing our cost management program with discipline and focus.

Turning to slide six.

Total load increased five 5% overall and seven 3% weather adjusted compared to Q3 2020 for.

Q2, our non-GAAP results exclude business transformation and optimization expenses from the customer affordability commitment and updates to our corporate structure.

Residential load increased two 2% quarter over quarter, but increased six 7% weather adjusted residential customer count increased by one 2%.

<unk> increased one 3% overall or one 9% weather adjusted.

Results. This quarter underscores, the mission of our company and my commitment to executing with disciplined, advancing, our strategy, and delivering value to customers communities and shareholders.

<unk> load increased one 3% overall or one 9% weather adjusted.

Our team is laser focused on execution and results.

Industrial load again saw significant growth with Q3 demand, increasing 13% or 13, 2% weather adjusted led again by our diverse group of datacenter and high Tech customers Dave.

Industrial load again saw significant growth with Q3 demand, increasing 13% or 13, 2% weather adjusted led again by our diverse group of datacenter and high Tech customers.

Finishing 2025 strong and building off our momentum of continued success in the years ahead, I'll turn it over to Joe. Thank you, Maria, and good morning, everyone.

Our robust loan growth.

Given our robust load growth.

We have observed that in our forecast for Q4 demand we are updating our weather adjusted 2025 load growth guidance to three 5% to four 5%.

We've observed in our forecast for the Q4 demand we are updating our weather adjusted 2025 load growth guidance to three 5% to four 5%.

Q3 is another solid quarter and reflects the strength of our strategy.

We are serving significant demand growth in executing our cost Management program with discipline and focus.

Turning the slide 6.

Now I will cover our quarter over quarter earnings drivers, we experienced a 44 increase in total revenues driven by a 16% increase from our five 5% demand growth and a 28% increase due to our higher average price of deliveries from improved recovery.

Now I will cover our quarter over quarter earnings drivers, we experienced a 44.

The increase in total revenues driven by a 16% increase from our five 5% demand growth.

Total load increased 5.5% overall and 7.3% weather-adjusted compared to Q3 2024.

And a 28% increase due to our higher average price of deliveries from improved recovery.

Residential loading increased 2.2% quarter over quarter and 6.7% year over year, while the adjusted residential customer count increased by 1.2%.

A decrease from power cost of 24, driven by a 38 said from.

A decrease from power cost of 24, driven by a 38 said.

Commercial load, increase 1.3% overall, or 1.9% weather adjusted.

<unk> power costs in 2024 that reverse for this comparison and a 14th <unk> benefit from the cost to serve load in Q3, 2025, driven by stable market pricing empowered cost recovery timing.

From favorable power cost in 2024 that reverse for this comparison and a 14th benefit from the cost to serve load in Q3, 2025, driven by stable market pricing and power cost recovery timing.

Industrial load again saw significant growth in Q3 demand, increasing by 13% or 13.2% weather adjusted, led by our diverse group of data center and high-tech customers.

<unk> <unk> EPS increase from lower operation and maintenance expenses, driven by our continued benefits from our cost management work as our teams drive efficiencies and realize savings across our business.

A <unk> <unk> EPS increase.

Lower operation and maintenance expenses, driven by our continued benefits from our cost management work as our teams drive efficiencies and realized savings across our business.

given our robust load growth, we've we've observed that and our forecast for the Q4 demand, we are updating our weather adjusted 2025, load growth, guidance to 3.5% to 4.5%

The 23% decrease from impacts in support of our ongoing rate base investments and execution of our financing plan made up of 14 cents of depreciation and amortization.

Now, I'll cover our quarter-over-quarter earnings drivers.

The 23% decrease from impacts in support of our ongoing rate base investments and execution of our financing plan made up of 14 <unk> of depreciation and amortization.

<unk> <unk> of dilution.

<unk> of interest expense.

<unk> <unk> of interest expense.

We experienced a 44% increase in total revenues, driven by a 16% increase from our 5.5% demand growth, and a 208% increase due to our higher average price of deliveries from improved recovery.

The <unk> increase from other items, including an 11% increase from our prior year deferral reserve that did not recur in <unk> of various miscellaneous items and lastly, a 6% decrease from business transformation and optimization expenses.

A <unk> <unk> increase from other items, including an 11% increase from our prior year deferral reserve that did not recur in <unk>.

Various miscellaneous items, and lastly, a 6% decrease from business transformation and optimization expenses.

Our GAAP EPS of <unk> 94 per diluted share after adjusting for this impact we reach our Q3 2025, non-GAAP EPS of $1 per diluted share.

A decrease from Power cost of 24 cents. Driven by a 38 Cent from favorable power cost in 2024 that reverse for this comparison and a 14 Cent benefit from the cost to serve load in Q3 2025 driven by Stable, Market pricing and powered cost recovery timing.

Turning to slide seven for our capital forecast.

A 6 and EPS increase from lower operation and maintenance expenses driven by our continued benefits from our cost management work as our teams Drive efficiencies and realize savings across our business.

<unk> continues to focus on expanding our transmission capabilities.

Plan continues to focus on expanding our transmission capabilities, optimizing our distribution system and maintaining reliable generation fleet.

Optimizing our distribution system and maintaining reliable generation fleet.

As Maria highlighted in 2023 RMB continues to advance towards resolution and we are pleased with the over one gigawatt of solar and battery projects on the updated final shortlist.

As Maria highlighted in 2023, RMB continues to advance towards resolution and we are.

A 23 Cent decrease from impacts in support of our ongoing rate-based, Investments, and execution of our financing plan made up of 14 cents of depreciation and amortization.

5 cents of dilution.

And 4 cents of interest expense.

Pleased with the over one gigawatt of solar and battery projects on the updated final shortlist.

We have requested <unk> acknowledgment in the fourth quarter and we continue to expect the projects will be in service by the end of 2027.

We will update our Capex plan for the income in 2023 RFP projects as those negotiations finalize and contracts are executed in the coming months.

Overall these projects bolster our rate base growth trajectory as we serve the significant demand we're experiencing in support Oregon's clean energy goals.

A 7-cent increase from other items, including an 11-cent increase from our prior year, deferral reserve that did not prepare, and 4 cents of various miscellaneous items. Lastly, a 6-cent decrease from business transformation and optimization expenses. Bringing our GAAP EPS to 94 cents per diluted share, after adjusting for this impact, we reach our Q3 2025 non-GAAP EPS of $1 per diluted share.

Onto slide eight for our liquidity and financing summary.

Total liquidity at the end of Q3 was just over $1 billion.

Turning to 57 for our Capital forecasts. Our plan continues to focus on expanding our transmission capabilities optimizing, our distribution system, and maintaining a reliable generation Fleet.

Our investment grade credit ratings and outlook remained stable since the last quarter.

We continue to see strength in our cash flow metrics, including a trailing 12 month CFO to debt metric of above 20%.

As Maria highlighted, the 2023 RFB continuous Advanced towards resolution. And we are pleased with the over 1, gigawatt of solar and Battery projects on the updated final short list.

Refinancing during the quarter, we completed our ATM pricing activity for 2025 and supported by our base equity need for the year in August we drew $49 million and earlier. This month drew an additional $72 million both for rate based investment and general corporate purposes.

Refinancing during the quarter, we completed our ATM pricing activity for 2025 and supported by our base equity needs for the year in August we drew $49 million and earlier. This month drew an additional $72 million both for rate base investment and general corporate purposes.

We have requested opuc acknowledgement in the fourth quarter and we continued to expect the projects will be in service by the end of 2027.

We will update our capex plan for the incoming 2023. RFD projects, as those negotiations, will be finalized and contractor executed in the coming months.

We now have $137 million of equity price, but not drawn under our ATM, which satisfies our needs through the end of the year.

Overall these projects bolster our rate. Based growth trajectory, as we serve the significant demand, we're experiencing and support Oregon's clean energy goals.

We will carefully assess our equity needs for the 2023 RFP projects as negotiations proceed and we will provide financing clarity in tandem with our final capex expectations.

On this slide 8 for our liquidity and financing summary.

Total liquidity at the end of Q3 was just over 1 billion.

We are also continuing to work closely with key stakeholders on the proposed holding company formation aimed at creating important flexibility as we seek the most efficient financing options for our customers and shareholders.

Our investment grade credit ratings and Outlook remains stable since the last quarter.

We continue to see strength in our cash flow metrics including a trailing 12 month, CFO to debt metric of above 20%.

This structure can help reduce costs increase and create optionality in how we fund critical grid investments with the potential to displace future equity needs for both base and RFP Capex.

This structure can help reduce costs increase and create optionality in how we fund critical grid investments with the potential to displace future equity needs for both base and.

RFP Capex.

As we look back at our progress over the last three months or three quarters and turn to Q4, we are proud of our results and disciplined execution.

As we look back at our progress over the last three months or three quarters and turn to Q4, we are proud of our results and disciplined execution we.

We drew $49 million, and earlier this month drew an additional $72 million, both for rate-based investment in general corporate purposes.

We are optimizing our business, while advancing important regulatory items, all while remaining laser focused on serving the growth in our area and delivering value to our customers and shareholders in.

We now have 137 million of equity price but not drawn under our ATM, which satisfies our needs through the end of the year.

In Q4, we expect the continued impacts of low growth moderately favorable power cost capex supported financing and benefits from our cost management work given our results through Q3 and line of sight to Q4. Our plan remains on course, we're reaffirming our 2025 adjusted earnings guidance of $3 30.

In Q4, we expect the continued impacts of low growth moderately favorable power cost capex supported financing and benefits from our cost management work given our results through Q3 and line of sight to Q4. Our plan remains on course, and we are reaffirming our 2025 adjusted earnings guidance of $3 13.

We will carefully assess our equity needs for the 2023 RFP projects as negotiations proceed, and we will provide financing clarity in tandem with our final capex expectations.

We are also continuing to work closely with key stakeholders on the proposed holding company formation aimed at creating important flexibility. As we seek the most efficient financing options for our customers and shareholders.

The $3 33 per diluted share.

Our progress in 2025 underpinned by a rate based investment pipeline sustained competence in our service territory and sharpened operational performance has also solidified our long term expectations and therefore, we are reaffirming our long term EPS and dividend growth guidance of 5% to 7% and our long term growth.

Our progress in 2025 underpinned by a rate based investment pipeline sustained competence in our service territory and sharpened operational performance has also solidified our long term expectations. Therefore, we are reaffirming our long term EPS and dividend growth guidance of 5% to 7% and our long term growth.

This structure can help reduce costs and create optionality in how we fund critical grid investments, with the potential to displace future equity needs for both base and RFP capex.

<unk> of 3% through 2029.

As we looked at the balance of the year and beyond we are excited to continue delivering on our strategic plan.

As we look to the balance of the year and beyond we are excited to continue delivering on our strategic plan.

As we look back at our progress over the last three months, or three quarters, and turn to Q4, we are proud of our results and disciplined execution. We are optimizing our business while advancing important regulatory items, all while remaining laser-focused on serving the growth in our area and delivering value to our customers and shareholders.

Safe reliable and efficient service advancing the priorities of our company communities and region and maximizing value for our customers communities and shareholders.

Safe reliable and efficient service advancing the priorities of our companies communities and region and maximizing value for our customers communities and shareholders.

Now operator, we are ready for questions.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.

In Q4 we expect the continued impacts of load growth moderately, favorable power costs capex supported financing and benefits from our cost management work, given our results through Q3. In line of sights, Q4 our plan remains OnCourse. We are reaffirming our 2025 adjusted earnings guidance of 3.13 to 3.33 cents per diluted share.

To withdraw your question. Please press star one again, the first question will come from Julien Dumoulin Smith with Jefferies. Your line is open.

Good morning, Julien Good morning team Hey, good morning. Thank you guys for the time I. Appreciate it let me just start off on this energy deliveries trend here I mean, three perhaps four five thats a solid trend.

Good morning, Julien Good morning team Hey, good morning. Thank you guys for the time I. Appreciate it let me just start off on this energy deliveries trend here I mean, three months Thats a solid trend.

Our progress in 2025, underpinned by our rate, based investment pipeline sustained confidence in our service territory and sharpened operational performance. Has also solidified, our long-term expectations. Therefore we are reaffirming our long-term Epps and dividends growth. Guidance of 5 to 7% and our long-term growth guidance of 3% through 2029

Full year, obviously, we've seen some gyrations over the years, but given what you are describing here data center.

Full year, obviously, we've seen some gyrations over the years, but given what youre describing here data center.

As we looked at a balance of the year and Beyond we are excited to continue delivering on our strategic plan.

Data center centric driven how does that impact or revise any kind of longer term thoughts. What are you seeing on this front clearly adjacent states also seeing kind of positive revisions as well.

Data center centric driven how does that impact or revise any kind of longer term thoughts. What are you seeing on this front clearly adjacent states also seeing kind of positive as well.

Save reliable and efficient service, advancing the priorities of our company, communities, and region while maximizing value for our customers, communities, and shareholders.

Now, operator, we are ready for questions.

So thank you and Julian yes, we've been very fortunate to have both a.

So thank you and Julian yes, we've been very fortunate to have both.

Robust and diverse of semiconductor manufacturing in this region and growing number of data centers.

Robust and diverse semiconductor manufacturing in this region and growing a number of data centers.

Most of the data center forecasts that we have our folks that already have built out their facilities as well as those who are turning dirt and have existing sites. So we have our pipeline is really solid and we are firms that we're confident in our 3% long term growth.

And to withdraw your question, please press star 1 1 1. Again, the first question will come from Julian Dumoulin Smith with Jeffrey, your line is open.

Got it okay. So no gyrations yet.

Morning, Julian. Hey, good morning, team. Hey, good morning, Maria. Thank you guys for the time; I appreciate it. Look, let me just start off on this energy deliveries trend here. I mean, 3.5 to 4.5 — that’s a solid trend for the full year. Obviously, we’ve seen some generations over the years. But given what you’re describing here, data center...

Just maybe if I can go back to the the Holdco opco, but how do you see that progressing here, but any updated thoughts on this front and as much as that could impact obviously, Joe the financing strategy as you think about heading into 2006 being a month out but separately just any feedback in that process et cetera.

Understood.

Maybe if I can go back to the the Holdco opco, but how do you see that progressing here any updated thoughts on this front and as much as that could impact obviously, Joe the financing strategy as you think about heading into 2016 being a month out but separately just any feedback in that process et cetera.

Uh, data center Centric driven. How does that impact? Or, or, or revise? Any kind of longer term thoughts? What are you seeing on this front? Clearly, adjacent States. Also seeing kind of positive Vision as well.

Big deals you think about 2006 priorities.

Big deal as you think about 'twenty six priorities.

Sure, let me take the Holdco timing and what we're seeing from our parties and then Joe can talk a little bit more about financing.

We're getting lots of questions on the transmission company.

In particular, the discussions around what's jurisdictional into the open UC versus what's jurisdictional to FERC.

In particular, the discussions around what's jurisdictional into the op UC versus less jurisdictional to FERC.

It will take us.

A while to work through all of these questions.

So thank you and Julian. Yes. Uh we've been very fortunate uh to have both uh robust and diverse semiconductor Manufacturing in this region and growing uh a number of data centers. Um, many most of the data center forecasts that we have are folks that already have built out their facilities as well as those who are turning dirt and have existing sites. So we have a our pipeline is really solid and reaffirms, um, that we're confident in our 3% long-term growth

But we are getting.

Very few questions with regards to the holding company. This may give us a window of opportunity to separate the filings.

A few questions with regards to the holding company. This may give us a window of opportunity to separate the filings.

Probably maybe extending that transmission company filing a little bit and pulling in the holding company filing.

Note that our filing was very similar to others in the region.

I would note that our filing is very similar to others in the region.

Northwest natural a little while ago was able to conclude their holding company filing earlier than the statutory a lot of time.

Got it. Okay, so new generations yet and understood um just maybe if I can come back to the the the whole Co outcome and how how do you see that progressing here? I mean any updated thoughts on this front and as much as you think about heading into 26 and being a month out but separately just any you know feedback in that process Etc. Obviously it's a big deal as you think about 26 priorities.

Joe do you want to talk a little bit about financing as it provides us with some opportunities yes.

Joe you want to talk a little bit about financing because it provides us with some opportunities yes.

Julien good morning, as it relates to the Holdco, we anticipate understanding your filings proceeding that we will operate the holdco and use it as financing very consistent how virtually all the other utilities in our sector have and operate that holdco.

And good morning, as it relates to the Holdco, we anticipate understanding your filings proceeding that we will operate the holdco and use it as financing very consistent how virtually all the other utilities in our sector have and operate that holdco under.

Under the right scenarios, we agree will be will have the ability to displace certain equity needs. Youll. Currently we have a strong financing metrics and I mentioned that were above our CFO our metric.

Under the right scenarios, we agree will be will have the ability to displace certain equity needs. Youll. Currently we have strong financing metrics I mentioned that we're above CFO our metric on a CFO to debt is above 20% and we'll be thoughtful as we work towards the RFP outcomes and the Holdco.

I voted that is above 20% and we'll be thoughtful as we work towards the RFP outcome and the Holdco project our process matures as Brian mentioned to really align that to our financing plan as we have more clarity.

Project, our process matures as Brian mentioned to really align that to our financing plans.

As we have more clarity.

In the holding company filing, I would note that our filing is very similar to others in the region, and Northwest Natural, a little while ago, was able to conclude their holding company filing earlier than the statutory allotted time.

Excellent. Thank you guys very much I appreciate just quickly lastly on the refresh and the 25 RFP obviously ongoing in parallel here.

Alright. Thank you guys very much I appreciate just quickly lastly on the refresh and the 25 RFP obviously ongoing in parallel here.

The scale and scope the refresh seems to be fairly similar.

The scale and scope the refresh seems to be fairly similar and opportunity set for you guys, but you've got these things in parallel I mean could we see an acceleration or how do you think about the timing given the way. This is all kind of backed up a few of them.

<unk> said for you guys, but you've got these things in parallel I mean could we see an acceleration or how do you think about the timing given the way. This is all kind of been backed up if you will.

Think about forward looking capex ultimately chose translator.

Think about forward looking capex ultimately chose translating.

So first of all I, just want to remind us of why we're doing this.

So first of all I just wanted to remind us of why we're doing this.

With the one big beautiful Bill we continue to have investment tax credits and production tax credits that have been very important to reducing the overall cost of clean energy and battery storage on our system and as I noted between our projects as well as third party contracts, it's about $2 billion.

What's the one big beautiful Bill we continue to have investment tax credits and production tax credits that have been very important to reducing the overall cost of clean energy and battery storage on our system and as I noted between our projects as well as third party contracts, it's about $2 billion.

So you want to talk a little bit about financing because this provides us with some opportunities. Yeah, I need Julian. Good morning, you know, as it relates to the whole Co, you know, we anticipate understanding the filings proceedings that we will operate the whole Co and use it as financing. Very consistent. How you know virtually all the other Utilities in our sector have an operate that that holds go, um, under the right scenarios. We agree. We, we will have the ability to, uh, to displace certain Equity needs, you know? Currently we have, you know, strong financing metrics. You know, I mentioned that we're above CFO, our metric on a, on a CFO that that is above 20% and, you know, we'll be thoughtful as we work towards the RSP outcomes and behold code project or process matures. As Ria mentioned to really align that to our our financing plans. You know, as we have have more clarity

Roughly what we can estimate.

A benefit that we've brought back to this region.

So we are we're refreshing the 2023.

RFP as you noticed there is a lot of tariff issues.

Then also we have a PPA focused RFP as well as the 2025 RFP. So any more you want to talk about in terms of timing of when we can see resolution forget what Julian I think really what you get you sort of talk to the size here of the two rfps. Obviously this R&D dollars to 'twenty three we mentioned has.

Then also we have a PPA focused RFP as well as the 2025 RFP. So any more you want to talk about in terms of timing of when we can see resolution forget what Julian I think really what you get you sort of talk to size here of the two rfps. Obviously this R&D to 'twenty three we mentioned has.

Excellent. Thank you guys very much. Appreciate it. Just quickly, lastly, on the refresh and the 25th, I mean, the refresh seems to be fairly similar in in in opportunities that for you guys. But you know, you've got these things in parallel. I mean, could we see an acceleration or how do you think about the timing given the way that this is all kind of been backed up if you will. Uh as you think about

Looking capex, ultimately trans translating.

Well, first of all, I just want to remind us of why we're doing this.

Just over a gigawatt of power between the solar and the batteries will be used as a foundation for that.

Just over a gigawatt of power between the solar and the batteries will be used as a foundation for this R&D and a 25 RFP that we're accelerating.

This R&D and a 25 RFP that we're accelerating.

<unk> action plan that was filed last updated at midpoint would say overall, we need 4000 megawatts before the end of the decade understanding you have to back out.

This 23, RFP result, and some Ppas I mean, you you would expected as you work to the next RFP both in size and the timing hopefully to accelerate you could see something.

Although 2000 megawatts something maybe even a plus there will have to see if there is a lot of factors to that again.

<unk> 2000 megawatts, something maybe even a plus there will have to see if there is a lot of factors to that again.

Other ppas get entered into how demand moves how the clean energy policy and plans plans evolve.

Other ppas get entered into how demand moves how the clean energy policy and plains plans evolve, but yes.

It would expect to be a more meaningful and robust RFP than the one that we have currently.

We would expect to be a more meaningful and robust RFP than the one that we have currently that we're working to contract.

We're working to contract.

Alright, guys I'll leave it there. Thank you so much.

In production tax credits that have been very important to reducing the overall cost of clean energy and battery storage on our system. And as I noted, uh, between our projects as well as third-party contracts, it's about 2 billion dollars. Um, of roughly what we can estimate, um, a benefit that we've brought back to this region. Um, so we, uh, we're refreshing the 2023, uh, rfps. You notice there's a lot of, uh, tariff, uh, issues. Um, and then also, we have a PPA uh, focused RFP uh, as well as the 2025 RFP. So any more you want to talk about in terms of timing of when we can see resolution? Okay? Well let's Julian. I I think really what you get to you. You sort of talk to to size here of the 2 RF is obviously this RFC. The 23 we mentioned has, you know, just over a gigawatt of power between the solar and the batteries. You know, we use as a foundation for this RFP and the

Thank you Julien.

Hey, Julien.

And the next question will come from Sophie Karp with KBC M. Your line is open.

Hi, Good morning, guys. Thank you for taking my question.

A couple of things is there a scenario where you get your holdco, but not the transco.

A couple of things.

Scenario, where you get your holdco, but not the transco.

Given that the you know.

You, you're saying that the questions seem to be concentrated on the transco side.

You're saying that the questions seem to be concentrated on the transco side.

Yes, so good morning Sophie.

Yes, so good morning so.

As it relates to and I think it's more a matter of timing is there a scenario, where the holdco and the Transco approval process gets separated in the Holdco occurs more more properly I think the answer is yes under right circumstances, we could see that see that occur we would anticipate over time that ultimately both are approved.

That we're accelerating the the IRP action plan. That was filed that, that last updated at midpoint would say, overall, we need 4,000 megawatts. Before the end of the decade, understanding you have to back out the this 23 RP result and some ppas. I mean you you would expect it as you work to the next RFP both in in size and and the timing hopefully the accelerator you could see something you know of a need of you know 2,000 megawatts something, maybe even a plus there will have to see. There's a lot of factors to that again. What what other people can enter into, how demand moves, how the clean energy policy implants plans evolve, but is, you know, it would expect to be a more meaningful. And, and robust RP than than the 1 we that we, we have currently, um, that, we're, we're working to contract.

All right, guys. I leave it there. Thank you so much.

Have a nice weekend. Thank you, Julian.

But could you could see a longer path on the Transco.

Yeah regarding each again.

Yes regarding each again.

And the next question will come from Sophie karp, with kbcm. Your line is open.

Just as we relate to our finance lease.

Just as we relate to our finance.

<unk> is a very different financing functionality and for us.

The Holdco is we think drives more value both for the customers and shareholders more currently in the Transco does does have a little more time and therefore, it's okay to have a little more time to evolve.

The Holdco is we think drives more value both for the customers and shareholders more currently in the transfer does does have a little more time and therefore, it's okay to have a little more time to evolve.

Hi. Um, good morning, guys. Uh, thank you for taking my question. Um, a couple of other things. Is there a scenario where you get your hold call, but not the trans code?

Got it that's Super helpful. And then just a more strategic question on that transmission or either with current I guess dovetails into the Transco conversation what would it take for you to direct Capex and your efforts away from generation Rfps and more into transmission like is there a case to be made that this.

Got it Super helpful. And then just a more strategic question on that transmission or either with credit I guess dovetails into the Transco conversation what would it take for you to direct Capex and your efforts away from generation Rfps and more into transmission like is there a case to be made that this.

Just a given that, you know, the— you were saying that question seemed to be concentrated on the TransGo side.

Just a better approach.

As a better approach.

The growth rate, just given the recovery mechanisms or demand.

Gross branches given recovery mechanisms or demand.

A variety of factors that you may consider.

Yeah. So good morning, Sophie. Yo, as it relates to, and I think it's more of a matter of timing is, is there a scenario where the home Co and the trans go approval process gets separated and, and the whole Co occurs more more promptly? I think the answer is, is yes. You know, under the right circumstances, we could see that see that occur. We would anticipate over time that ultimately both our approved, but, you know, could could see a longer path on on the transcript.

Uh huh.

Currently as you can see in our plan right, we have $1 8 billion in transmission spend including 2020.

Currently I mean as you can see in our plan right, we have $1 8 billion in transmission spend including 2025.

I do think.

I do think so.

We do have a relatively balanced growth to your question. If there would be a reason to shift more towards that transmission if that really facilitated the needs of our customers in the clean energy plan and also drove to.

We do have a relatively balanced growth to your question. If there would be a reason to shift more towards that transmission, if that really facilitated the needs of our customers and the clean energy plan and also drove to.

Again, you know, just as we relate to our finance, you know you know the each is a very different financing functionality and for us you know the the old code is we think drives more valuable for the, the customers and share shareholders more currently. And and the transfer does, does have have a little more time? And therefore, you know, it's okay to have a little more time to evolve

Portability that that could be a case, where you drive more day transmission, but right now we are driving to serve the overall needs of our customer which has really been a balanced transmission and generation.

Approach.

And so the long term.

As well as in the past that we have found is that it's really important to have a robust competitive environment.

Well as in the past that we have found is that it's really important to have a robust competitive environment.

For generation build and we need to continue to move forward to drive customer prices is absolutely lowest possible.

Strategic question on transmission, right? And it kind of gets those tails into the transcript conversation. What would it take for you to direct capex in your efforts away from generation RFPs and more into transmission? Like, is there a case to be made that this is a better approach for growth, right? Just given recovery mechanisms or demand, a variety of factors that you may consider.

Sounds good thank you.

So.

Yes.

And the next question will come from Greg oral with UBS. Your line is open.

Yes. Thank you. Good morning question, so on the year to date.

Yes. Thank you good morning, guys and so on a year to date.

Sure.

<unk>.

On the on the financing plan.

Just.

Just what are your <unk>.

What are your thoughts.

Assumptions within.

The growth rate guidance as it relates to.

Your commitments around.

<unk>.

You know currently I mean I I as you can see in our our our plan, right? We have 1.8 billion in transmission spend including 20205 you know I do think you know and so we do have a relatively balanced growth to your question. If there would be a reason to shift more towards that, that transmission, if that really facilitated the needs of our customers and that the clean energy plan and also drove to a you know, affordability that you know, that could be a case where we would drive more to transmission. But right now we are driving to serve the overall needs of our customer, which is really been a balanced transmission and generation approach.

Rfps and assumptions around tax.

Our rfps and assumptions around <unk>.

Tax credit monetization versus equity how do you think about that.

Sure so as it relates to the financing plan.

Again this is.

We assume that 50% or 50 50 financing structure on the Rfps currently and that is net of a tax credit and monetization, which has historically been at this 30%.

We assume that 50% or 50 50 financing structure on the Rfps currently and that is net of of tax credit and monetization, which has historically been at this 30% credit. This year alone, we've monetized about $150 million of tax credits to offset our findings.

And so, if the long term and and um, as well as in the past that we have found is that it's really important to have a robust competitive environment, uh, for Generation build and, uh, we need to continue to move forward to drive customer prices is absolutely low as possible.

Sounds good. Thank you.

And the next question will come from Greg Oral with UBS. Your line is open.

This year alone, we've monetized about $150 million of tax credits to offset our our financing needs.

Yeah, thank you. Congratulations on the year-to-date.

Um,

<unk> needs.

And then to your to your comment or historical.

hey, on the, on the financing plan, uh, just what are your

Apologize for using another 50% radar outcome on Rfps has historically been at about a 50%.

assumptions with Within

Apologize for using another 50% radar outcome on Rfps has historically been at about a 50% debt 50.

you know, the the growth rate guidance, as it relates to

50% of the overall project.

um, your commitments around um,

Okay.

Maybe another question as well.

Maybe another question as well just.

Yes.

What are your thoughts around the extension of the reliability contingency event.

Our RFPs and assumptions around, uh, tax credit, monetization versus equity. How do you think about that?

Framework.

How is that proceeding.

Yes. So currently within the the PJM filing we are we are having discussions on the <unk>.

Our reliability contingency event, we feel has been a pretty consistent and effective moved to date.

Sure. So as it relates to to the to the financing plan, you know and again this is uh we we assume that a 50%, a 50/50 financing structure on on the RFP is currently and that is net of of tax credit monetization which has you know historically you know been at this 30%.

Our reliability contingency event, we feel has been a pretty consistent and effective moved to date.

We are we continue to focus in dialogue with them would we like something like that to proceed to further align the energy cost, yes, because it helps.

We continue to focus in dialogue with them what would be like something like that to proceed to further align the energy cost, yes, because it.

Credit, you know, this year alone, we we've monetized about 150 million dollars of of tax credits to offset our, our financing needs.

Help support our.

It helps support our.

Or just overall approach to a more efficient pricing of energy.

It's an open dialog right now I don't know that I really want to handicap. It I know that it's more of a broader discussion on how to address energy costs here I will just say it is a it is a nice tool. It works effectively for US now and we will continue to work towards.

That's an open dialog right now I don't know that I really want to handicap. It I know that it's more of a broader discussion on how to address energy costs here I will just say it is a it is a nice tool. It works effectively for US now and we will continue to work towards.

And then, you know, to your to your comment, you know, our historical if I apologize for using another 50%. Right. Our outcome on rfps, has has historically been at about a 50% uh, 50% of the overall projects.

Okay. Maybe another question as well just, um,

What, what are your thoughts around the extension of the uh, reliability contingency event?

As modern and effective in energy recovery mechanism as we can with our with our regulators.

As as modern ineffective and energy recovery mechanism as we can with our with our regular.

Uh, framework and uh, house that proceeding.

Craig let me add a little bit to that.

The.

Yes.

Mark.

Events that we saw in January of 2024.

That we saw in January of 2024.

We're also impacting other utilities in the region and we saw a similar issues across the entire Pacific northwest and the West coast in terms of energy markets.

We're also impacting other utilities in the region and we saw a similar issues across the entire Pacific Northwest and West Coast in terms of energy markets.

So where we are.

Were pretty similar in terms of the impact of the storms to other utilities longer term, we are working towards joining the energy day ahead market with the California independent system. Operator, we're expected to go live with that in October of next year.

Pretty similar in terms of the impact of the storms to other utilities.

Longer term, we are working towards joining the energy day ahead market with the California Independent system. Operator, we're expected to go live with that in October of next year.

And that will very much change, our overall energy procurement and knott's.

That will very much change, our overall energy procurement and knott's.

Not so sure that the pecan mechanism with the RPE will be the best going forward, we're going to need to align the state's policies to the broader market is as we are doing more scheduling of energy and.

Not so sure that the pecan mechanism with our CE will be the best going forward, we're going to need to align the state's policies to the broader market is as we are doing more scheduling of energy.

Yeah so so currently within the the pcam filing we are uh you know we are having discussions on the RC the RC um the r reliability contingency event we feel has been a pretty you know consistent and effective tool to date of you know we are you know we continue to to focus and and dialogue with them. Would we would we like something like that to proceed to further, align the energy costs? Yes, because it it, you know, it helps support our, you know, our our just overall approach to more efficient pricing of energy. Um, you know, that's an open dialogue right now. I don't know that I really want to handicap it. I I know that, you know, that it's more of a broader discussion on how to address energy costs here. I will just say it is a it is a nice tool. It works effectively for us now and we'll continue to work towards, you know, as as modern and effective and energy recovery mechanism as we can with our with our regular.

And optimization.

And optimization versus energy management and purchases.

Versus energy management and purchases.

Thank you.

Thank you for the color.

Okay.

And the next question will come from Shar <unk> with Wells Fargo. Your line is open.

Morningstar Hi, good morning, Good morning team is actually a constant theme here for sure. Thanks for taking the question.

Maybe just a little bit of cleanup.

Just with the kind of quarter.

<unk>, 5% load growth and the full year step up.

Is that significant enough to incorporate in financial planning and kind of what's the threshold for some of those higher load growth to start kind of making more impactful than the kind of base financial plan.

Is that significant enough to incorporate and financial plan and kind of what's the threshold for some of those higher load growth to start kind of making more impactful than the kind of base financial plan.

Good morning, Steve, Yes, so as it relates to the load growth to your question of how does the.

Good morning, Steve, Yes, so as it relates to the load growth into your question of how does the.

How does it drive more to plan it will be as we clarify and get the tariff as it relates to margin right now the new datacenter tariff is with B b.

Um, versus um, energy management and purchases.

How does it drive more to plan it will be as we clarify and get the tariff as it relates to margin right now the new datacenter tariff is with B b.

Thank you. Thank you for the caller.

On the regulatory side to get drawn out.

And so being able to take advantage of that that growth at a more balanced margin. We'll do two things one it will balance out the cost to our residential and other other customers that then to also to the extent you see this growth will incrementally drive further value so that for us were a bit Nate a wait and see we expect that that tariff.

Come from Sharp, Pereza with Wells Fargo. Your line is open.

And so being able to take advantage of that that growth at a more balanced margin, we'll do two things one it will work.

Balanced out the cost to our residential and other other customers that then to also to the extent you see this growth will incrementally drive further value so that for us were a bit Nate a wait and see we expect that <unk> will.

Morning, sir. Hi, good morning. Good morning. The team is actually a conference team here for Char. Uh, thanks for taking the question.

Get that tariff when we get that tariff that will be a nice data point to be able to.

Get that tariff when we get that tariff with that one.

B, a nice data point to be able to.

Capture some value I believe that scheduled for March.

Uh maybe just a little bit of clean up uh just with the kind of quarter up 5% load growth and the full year Step Up kind of is that significant enough to incorporate into Financial plans and kind of what's the threshold for some of this higher load growth to start kind of making more impact within the kind of Base financial plan.

Okay, and that's kind of when you would start incorporating some of that into the forward looking financial plans.

Well I think thats, the place where you'd start to be able to identify to the extent that you've continued to see that growth you would start pricing that growth a little bit differently and you'd be able to start to determine if there is incremental value there.

Yeah. Good morning, Constantine. So, you know, as it relates to the load growth, to your question of how does the...

Okay, perfect, you'll have you'll have a clear cost structure structure.

Okay, perfect, you'll have you'll have a clear cost structure infrastructure.

And then just one follow up on the 25 RFP process, you kind of noted that.

There's some lessons learned kind of being incorporated there just maybe given the cyclical nature of the RFP process and generation needs is there.

There are some lessons learned kind of being incorporated there just maybe given the cyclical nature of the RFP process and generation needs is there.

Kind of.

Any changes in the framework that we should be thinking in terms of long term assumptions volumes ownership just in light of the 23 outcomes.

Any changes in the framework that we should be thinking in terms of long term assumptions.

Volumes ownership just in light of the 23 outcomes.

How does it drive more to the planet? It'll be as we clarify, and get the, the Tariff, as it relates to margin, you know, right now the, the, the new data center tariff is with the, the, uh, with the on the regulatory side to get get drawn out. And so being able to take advantage of that, that growth at a more balanced margin will will do 2 things 1, it will will balance out the cost to our our residential and other other customers that send 2. Also to the extent. You see this growth will incrementally drive further value. So that for us, we're a bit in a, a wait and see, we expect that that tariff, you know? Well, we'll, we'll get that tariff when we get that tariff, but that, that will be a nice measure point.

I don't think as it relates to the ownership and anything like that no. I mean, we continue to work with the with the commission on a multi pronged approach here I mean, I do think like the key message. If you ask me right now what is it for 25 it is yes.

I don't think as or as it relates to the ownership or anything like that no. I mean, we continue to work with the with the commission on a multi pronged approach here I mean, I do think like the key message. If you ask me right now what is it for 25 it is yes.

Be able to, you know, capture some value, and I believe that's scheduled for March.

okay, and that's kind of when you would start incorporating some of that into the forward-looking financial plans

We've accelerated the process right. The change this time is instead of having a consecutive RFP process. We have a concurrent process that is looking to optimize the credits that are out there and thats part of it.

We've accelerated the process right that change. This time is instead of having a consecutive RFP process. We have a concurrent process that is looking to optimize the credits that are out there and thats part of it.

Well, I think that's the place where you start to be able to identify, to the extent that you continue to see that growth. You would start pricing that growth a little bit differently, and you'd be able to start to determine if there's incremental value there.

Okay, because you you'll have a you'll have a clear cost structure structure.

Design, we will continually work to balance the procurement both between ownership and Ppas, but for right now the main changes.

Design, we will continually work to balance the the.

The procurement both between ownership and Ppas, but for right now the main changes.

Drive as much of the benefit is we can tax credit wise out of these projects that could either be the acceleration of projects from what is the requested date within the within the RFP.

Drive as much of the benefit is we can tax credit wise out of these projects that could either be the acceleration of projects from wood is the requested date within the within the RFP.

And then just one follow-up. On the 25th RFP process, you kind of noted that, uh, you know, there's some lessons learned kind of being, uh, incorporated there. And just maybe given the cyclical nature of the RFC process and generation needs, is there...

Kind of any changes in the framework that we should be thinking in terms of long term assumptions, like volumes ownership just in light of the 23 outcomes.

Other than that I don't think we will see any other changes or other than to continue this work with all the constituents to continue to align to the market.

Other than that I don't think we will see any other changes or other than to continue to work with all the constituents to continue to align to the market.

Perfect. Thank you.

And our next question will come from Paul Fremont with Ladenburg. Your line is open.

Thank you very much.

You gave sort of a $150 million of tax credit for 25, and I think you've talked about sort of $2 billion.

Can you give us sort of an annual estimate of Av.

What.

Tax credits do you expect to realize.

You know, I don't think as you as it relates to to the ownership of anything like that. No, I mean, we continue to work with the, with the commission on a multi-pronged approach here. I mean, I do think like, the key message. If you ask me in that right now, what is it for for 25? It is. You know, we we've accelerated the process right to change this time is instead of having a consecutive RFP process, we have a concurrent process that is looking to optimize the the credits that are out there and that's part of it. This design we will continually work to balance the the procurement both between ownership and and ppas. But for right now the the main changes

But what we're really looking at is anywhere from 30% upward.

Renewable energy projects battery storage and so we will continue to focus on maximizing all of <unk>.

<unk> and PTC is really we make a determination on which one based on the net present value batteries and solar tends to lean a little bit more towards itc's and wind tends to lead a little bit more towards ptc's, but this is an important.

To drive as much of the benefit as we can tax credit wise out of these projects. And you know that could either lead to the acceleration of projects from what is the requested date within the within the RFP you know. The other than that I I don't think we'll see any other changes or other than to continue to just work with all the constituents to continue to align um to the market.

Excellent, perfect. Thank you.

And our next question will come from Paul Fremont with ladenburg. Your line is open.

The way that we're bringing federal dollars back to reducing customer prices for renewable energy and creating investment opportunities with the state of Oregon and regionally.

Uh, thank you very much. Um, you gave, uh, sort of $150 million of tax credit for $25, and I think you've talked about sort of $2 billion.

Paul just to add.

<unk>.

There is a bit of a cyclicality as we have these cash flow. So as we have these projects the itc's will come through for the RFP. Obviously, what we were talking about here and Youre seeing the cash flows. This year Youre seeing are both the the remaining itc's. It came from the console project last year and then the Itc's from the <unk> project this year on an annualized basis.

Um, can you give us sort of an annual estimate of of of of what, uh, uh, tax credits, you expect to realize?

There is a bit of a cyclicality as we have these cash flow. So as we have these projects the itc's will come through for the RFP. Obviously, what we were talking about here and Youre seeing the cash flows. This year youre seeing are both be the remaining itc's. It came from a comparable project last year and then the itc's from the fee side project. This year on an annualized basis.

So, what we're really looking at is, uh, anywhere.

uh, uh,

Foundation that we come from is the Ptc's as it related to our wind projects call that around $58 million a year and then the cyclicality would be the itc's that come from RFP projects at least currently the way cash flows.

Yes.

Then with respect to the wildfire.

Then with respect to wildfire.

Battery storage. And so, we will continue to focus on maximizing all of the available, um, IPCs and PTCs. And we'll really make a determination on which one based on the net present value. Um, batteries and, uh, solar tend to lean a little bit more towards ITCs, and wind tends to lean a little bit more towards PTCs. But this is an important, uh, way that we're bringing federal dollars back to.

Actions by the legislature last year I think.

<unk> by the legislature last year I think.

There was a proposal that would have created a fund I think it was $800 million.

The reducing customer prices for renewable energy and creating investment opportunities with the state of Oregon and regionally. And Paul, just to add, you know, the...

Are you.

Number one I mean is that amount an amount that you would feel is adequate and and is that what you would like to see.

The legislature due to create sort of a wildfire fund of 800 and what other action would you hope for out of the legislature.

Sure. So we are still actively engaged with our legislators and stakeholders across the state and the region, but this isn't just a legislative strategy. It's also a regulatory strategy as well. This next coming year, we have a short session. It's just about five weeks and there are a number.

Responsible project last year and then the ITCs from the seaside project this year on an annualized basis. The foundation that we come from is the PTCs as related to our wind projects, call that around $50 million a year. And then the cyclicality would be the ITCs that come from RFP projects. At least that's currently the way of cash flows.

<unk> of statewide priorities.

We could see more results out of the legislature in 2007 versus 26 on the regulatory side, we continue to work with regulators and staff.

We could see more results out of the legislature in 27 versus <unk> 26 on the regulatory side, we continue to work with regulators and staff.

Then with respect to the Wildfire um action by the legislature last year, I think uh, there was a proposal that would have created a a fund of I think it was 800 million.

um,

On solutions.

First of all starting with all of the work, we do operationally to reduce wildfire risk and that's all detailed in our wildfire plan and obviously the recovery associated with that as well as standard of care and then also mechanisms for self insurance and other sorts of things.

First of all starting with all of the work, we do operationally to reduce wildfire risk and that's all detailed in our wildfire plan and obviously the recovery associated with that as well as a standard of care and then also mechanisms for self insurance.

Are you uh number 1? I mean is that amount an amount that you would feel is adequate and and is that what you would like to see, uh um the legislature due to create sort of a wildfire fund of 800 and what other action would you hope for out of the legislature?

Sure. So uh, we're still actively.

Engaged. Um,

And other sorts of things.

Great and then last question for this year.

Can you give a sense of.

Are you expecting to experience any regulatory lag in terms of Ernie.

Your authorized Roe or or.

What would if there is lag how many basis points would you expect that to be this year.

So Paul you use.

Just to legislative strategy. It's also a regulatory strategy as well. This next coming year, we have a short session. Um, it's just about 5 weeks. Um, and there are a number of Statewide priorities, uh, meaning that we could see more results out of the legislature in. 27 versus 26. On the regulatory side, we continue to work with

So the palio.

Using are you sort of approach this year with with the with the seaside with battery program as well as the cost management. We have we've tried to put some downward pressure to squeeze that lag and we believe we're down to something around 70 basis points or less that we expect to see here and into the future as we.

Using are you sort of approach this year with.

With the with the C side with battery approach as well as the cost management. We have we've tried to put some downward pressure to squeeze that lag and we believe we're down to something around 70 basis points or less that we expect to see here at into the future as we balance.

Balance <unk>.

Regulators and staff, um, on Solutions. Uh, first of all, starting with all of the work we do operationally to reduce Wildfire risk and, uh, that's all detail in our Wildfire plan and obviously the recovery associated with that, as well as, uh, standard of care. Um, and then also mechanisms for Self Insurance, um, and other sorts of things.

Collection of regulatory filings and cost management.

A selection of regulatory filings and cost management.

I'm, sorry, you said three basis points.

70, 70, 70 I'm sorry.

I said 70, 70, 70, I'm sorry, Jeff.

Yes.

Yes, yes, yes.

Just as a reminder of that is that is a compression from from what we had experienced historically.

Right and then you would expect then to achieve on a go forward basis sort of a maintenance of of that level of about 70 basis points go forward.

Right and then you would expect then to achieve on a go forward basis sort of a maintenance of of that level that 70 basis points go forward.

Great. And then last question, uh, for this year. Um, can you give a sense of um, are you expecting to experience, uh, any regulatory lag in terms of, uh, earning your authorized Roe or or? Um, uh, what would if there is lag? Uh, how many basis points? Uh, would you expect that to be this year?

Yes, we expect to do that and we expect to continue to apply downward pressure on that as it relates to our cost management work.

Yes, we expect to do that and we expect to continue to apply downward pressure on that as it relates to our cost management work as it continues to mature and so we expect to.

<unk> to mature and so we expect to we expect to see at least somewhat of a little bit more compression there as we execute.

We expect to see at least somewhat of a little bit more compression there as we execute.

Fully into the cost management program in 2006.

Fully into the cost management program in 20 countries.

So that could be in other words that could be diminished, let's say to what level.

We haven't disclosed what that level is I mean, the way we look at it is a balance to where we think the next year using the DSP is our regulatory approach as well as the cost management and others, we sort of think of it as a basket of.

So, you know, probably using our sort of approach this year which, you know, with the with the seaside with um, battery approach as well as the cost management. You know, we have you know, we've tried to put some downward pressure to squeeze that that lag. And, and we believe we're down to something around 70 basis points or or less that, that we expect to see here and into the, the future as we balance, you know, a selection of regulatory filings and and cost management

We haven't disclosed what the what that level is I mean, the way we look at it as a balance to where we think the next year using the DSP is our regulatory approach as well as the cost management and others, we sort of think of it as a basket of.

I'm sorry. You said 3 basis points? No, I said 70, 70, I'm sorry. Yeah. That's that is and just as a reminder that is that is a compression from from what we had experienced, you know, historically.

Items to help us continue to drive to our within our earnings range.

Items to help us continue to drive to work within our earnings range.

Okay.

It is it a goal of ours to Disabuse studies, we can.

It is it a goal of ours to Disabuse guide as we can.

Thank you very much that's it for me.

Right. And then you would expect, then, to achieve, on a go-forward basis, sort of a maintenance of that level, that 70 basis points, going forward.

Thank you.

And the next question will come from George synonymous with Mizuho. Your line is open.

Hi, Good morning, Thanks for taking my question good morning.

So I know that <unk> was filed in July but I'm. Just wondering if you had any preliminary discussions with parties ahead of that filing and.

Yeah, we expect to do that and we we expect to continue to apply downward pressure on that as it relates to our, our cost management work as it it continues to to mature. And so we we expect to or we we expect to see at least somewhat of a little bit more compression there as as we execute and get fully into the the cost Management program in 2026.

So that could be, in other words, diminished. Let's say, to what level?

Given the <unk> proceeding resulted in a balanced outcome do you think we could see that in the DSP proceeding.

So good morning George.

As it relates to the DSP consistent with the <unk> filing we did have an Mou, we do have an mou in place.

With them so the Mou does govern the DSP as well.

With them so the Mou does governed the DSP as well.

We haven't disclosed to what to what that level is. I mean, the way we look at it is is a balance to, you know, when we think the next year using the, the DSP as our regulatory, you know, approach, as well as the cost management and others. We, you know, we sort of think of it as a basket of of of items to help us, you know, continue to drive through our within our earnings range.

Just as a reminder, that the reason we took the approach with the DSP here was really to drive clarity.

And just as a reminder, that the reason we took the approach with the DSP here was really to drive clarity.

But but we it is a it is a goal of ours to just be as tight as we can.

Thank you very much. That's it for me.

Parties right. The DSP is a filed and accepted docket from that that lays out our sort of our action plans for new distribution.

Thank you.

Parties right. The DSP is a file the NDA and accepted docket from that lays out our sort of our action plans for the distribution.

And the next question will come from George senales with meizuo, your line is open.

We felt it.

Get to the clarity to say, we'll have a case that focuses on projects that are agreed to have benefits.

Morning. Thanks for taking my question morning.

For the customers so.

And then so that that using that and then looking to see side right. The seaside we felt that the Mou really and having an mou and spending the time before really allowed us to have a focused dialogue and have had a constructive dialogue and outcome. When we look to both the the.

And then so that that using that and then looking to see side. The <unk> side, we felt that the Mou really and having an mou and spending the time before really allowed us to have a focused dialogue and have had the constructive dialogue and outcome. When we look to both the the testimony and the <unk> and.

So, I know the DSPR was filed in July, but I'm just wondering if you had any preliminary discussions with parties ahead of that filing.

Given the C5 preceding, resulting in a balanced outcome, do you think we could see that in the DSP proceeding?

Testimony in the.

And some of the intervenor intervenor, Oregon, we would expect that to continue here with the DSP.

Great. Thank you for the clarity and can you talk a little bit about how you plan to use utilize great care and one initial tests you Don or you plan to do and when do you expect to see measurable impacts to unlock additional system capacity.

Great. Thank you for the clarity and can you talk a little bit about how you plan to use utilize great care.

One initial tests, you Don or you plan to do and when do you expect to see measurable impacts to unlock additional system capacity.

Sure. So first of all we're really excited about the opportunity that we've seen with our partnership with the Petcare. It comes out of the work that we've done with other startups and innovative companies that are silicon Valley.

Sure. So first of all we're really excited about the opportunity that we've seen with our partnership with the pet care. It comes out of the work that we've done with other startups and innovative companies that are silicon Valley.

And Stanford.

School of engineering.

The program is essentially all it takes a lot of enormous amount of data AI analytics. It actually takes compute that exceeds most capabilities in which we actually went to Stanford to do the work right. Now we have about 80 megawatts unlocked, but that's just in a pretty narrow portion of our system.

The program is essentially on it takes a lot of enormous amount of data AI analytics. It actually takes compute that exceeds NAS capabilities in which we actually went to Stanford to do the work right. Now we have about 80 megawatts unlocked, but that's just in a pretty narrow portion of our system.

Parties, right? The DSP is a a filed and an accepted docket from that that lays out our, our sort of our action plans for the distribution. And so we felt that, you know, you get to the clarity to say we'll have a case that focuses on projects that are agreed to have benefits, um, for for the customers. So, you know, and then so that then then using that and then looking to to see side, right? The seaside we felt that the the mou really and having an mou and spending the time before really allowed us to have a focused dialogue and have a have a constructive dialogue and outcome, you know, when we look to both the, you know, the testimony and and the uh and some of the intervener work, and we would expect that to continue here with the DSP.

So we would expect to.

We would expect to.

Advance I would also say, it's not just the AI analytics.

It is also the dynamic line ratings, which gives us much more information on temperature and wind speeds that can unlock additional capacity and then having battery storage in different places across our service territory.

Great. Thank you for the clarity. And can you talk a little bit about how you plan to utilize great care? And what an initial test you've done or you plan to do and when you expect to see measurable impacts to unlock additional system capacity,

Further enhances the work that we're able to do to get the maximum amount of capacity out of existing and new transmission infrastructure.

Great I'll leave it there thank you.

Thank you.

I show no further questions in the queue at this time.

Sure. So first of all, we're really excited about the opportunity that we've seen with our partnership with the good care. It comes out of the work that we've done with, um, other, uh, startups and Innovative companies, that will Silicon Valley, um, and uh, Stanford's, um, School of Engineering, uh, the, uh, program is, uh, essentially, uh, takes a lot enormous amount of data, AI analytics. Uh, it actually takes

I'd now like to turn the call back over to Maria for closing remarks.

Thank you and thank you all for joining US today. We appreciate your interest in Portland General and we hope to connect with you soon in particular.

Thank you and thank you all for joining US today. We appreciate your interest in Portland General and we hope to connect with you soon in particular with I assume that we will see many of you at <unk> certainly in Florida. So thank you very much have a great day and a nice weekend.

Whom that we will see many of you at <unk> certainly in Florida. So thank you very much have a great day and a nice weekend.

This does conclude today's conference call. Thank you for participating and you may now disconnect.

Compute that exceeds most capabilities and for which we actually went to Stanford, uh, to do the work. Uh, right now we have about 80 megawatts unlocked but that's just in a pretty narrow portion of our system. So we would expect to uh, Advanced. I would also say it's not just the AI analytics. Um, it's also the dynamic line ratings, which gives us much more information on temperature and wind speeds that can unlock additional capacity, and then having batteries storage and different places across our service territory, uh, further enhances the work that we're able to do to get the maximum amount of capacity out of existing and new transmission infrastructure.

Great. I'll leave it there. Thank you.

Thank you.

I show no further questions in the queue at this time. I would now like to turn the call back over to Maria for closing remarks.

Thank you, and thank you all for joining us today. We appreciate your interest in Portland General. And we hope to connect with you soon. In particular, I assume that we will see many of you at eeei uh shortly in Florida. So thank you very much. Have a great day and a nice weekend.

This does conclude today's conference call. Thank you for participating, and you may now disconnect.

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