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Portland General Electric Logo (PRNewsfoto/Portland General Electric)

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PORTLAND, Ore., April 30, 2021 /PRNewswire/ -- Portland General Electric Company (NYSE: POR) today reported net income of $96 million, or $1.07 per diluted share, for the first quarter of 2021. This compares with net income of $81 million, or 91 cents per diluted share, for the first quarter of 2020.

"While the first quarter presented challenges, the team remains focused on supporting customers," said Maria Pope, PGE president and CEO. "I am proud of the way we came together to restore power quickly, and safely, during a once in 40-year ice event. These events demonstrate the importance of continued investment in a safe, reliable and resilient grid."

First Quarter 2021 Compared to First Quarter 2020

Total revenues increased as a result of  higher retail energy deliveries, driven by strong residential demand and growth in the high-tech and digital service sectors, as well as revenues from the recently completed Wheatridge Renewable Energy Facility. Purchased power and fuel expense increased due to lower hydro and wind production and higher than expected market prices. Operating expenses increased, primarily driven by higher storm restoration expense, legal fees and increased employee benefit expenses. Depreciation and amortization expense decreased, partially offset by utility capital additions. Tax expense decreased primarily due to a one-time recognition of a local tax flow-through adjustment.

Company Updates

Strong Energy Delivery Growth

Retail energy deliveries for the three months ended March 31, 2021 increased 1.2%, weather-adjusted, compared to the same period of 2020. This was driven by an increase of 8% in industrial deliveries, powered by the expansion in the high-tech and digital sectors, and 3% growth in residential deliveries as the average number of residential customers increased by 1.3%. These increases were partially offset by a decrease in commercial deliveries of 5%.

February 2021 Ice Storms and Damage

Beginning on February 11, 2021, an historic set of storms involving heavy snow, winds and ice impacted the United States, including PGE's service territory. Oregon Governor Kate Brown declared a state of emergency in response to these severe storms. Through March 31, 2021, PGE has incurred an estimated $87 million in incremental costs due to the storms, of which $33 million were capital and recorded to electric utility plant, net and $54 million were operating expenses associated with transmission and distribution. Beginning in 2019, the OPUC authorized the Company to collect $4 million annually from retail customers to cover incremental expenses related to major storm damages, and to defer any amount not utilized in the current year. In response to the February storms, PGE exhausted its storm collection balance for 2021 of $9 million, which was used to offset operating expenses. After accounting for storm deferral tracking mechanisms already in place, the cumulative incurred costs from the February storm damage are estimated to be $45 million as of March 31, 2021.

On February 15, 2021, PGE filed an application for authorization to defer emergency restoration costs for the February storms (Docket UM 2156). PGE expects to incur and defer additional costs subsequent to the storm.

The Climate Pledge

On April 21, 2021, PGE continued its commitment to advancing a sustainable future by joining The Climate Pledge,  aiming to be net-zero carbon by 2040 — a decade ahead of the Paris Agreement's goal of 2050. As a signatory to The Climate Pledge, led by Amazon and Global Optimism, PGE agrees to measure and report greenhouse gas emissions on a regular basis; implement decarbonization strategies in line with the Paris Agreement through real business changes and innovations, including efficiency improvements, renewable energy, materials reductions, and other carbon emission elimination strategies; and neutralize any remaining emissions with additional, quantifiable, real, permanent, and socially-beneficial offsets.

Quarterly Dividend

As previously announced, on April 28, 2021, the board of directors of Portland General Electric Company approved an increase in the annual dividend of 5.5%, or $0.09 per share, declaring a quarterly common stock dividend of $0.43 per share.

2021 Earnings Guidance

PGE is reaffirming its full-year 2021 earnings guidance of $2.55 to $2.70 per diluted share based on the following assumptions:

  • An increase in annual energy deliveries between 1% and 1.5%, weather adjusted, which reflects year over year:
    • Commercial growth, as economic recovery takes hold; and
    • Strong growth in industrial reflecting customer expansions.
    • These increases are partially offset by a decrease in residential as customers spend less time at home.
  • Normal temperatures in its utility service territory, for the remainder of the year;
  • Average hydro conditions for the remainder of year;
  • Wind generation based on five years of historical levels or forecast studies when historical data is not available;
  • Normal thermal plant operations, for the remainder of the year;
  • Revised capital expenditures of $700 million;
    • This represents a $45 million increase from prior guidance of $655 million, primarily due to capital expenditures related to the February storm;
  • Average construction work in progress balance of $340 million;
  • Revised operating and maintenance expense between $595 million and $615 million;
    • This represents a $20 million increase to original guidance of $575 million to $595 million, of which $12 million is associated with February storm response expense that is offset in revenue;
  • Depreciation and amortization expense between $410 million and $430 million;
  • Revised effective tax rate of 10% to 15%;
  • Cash from operations of $600 million to $650 million;
  • No new common equity to be issued for investment or operations; and
  • Continuation of existing regulatory mechanisms during 2021, including decoupling, the PCAM, the COVID-19 deferral, the wildfire deferral, and the new storm deferral.

First Quarter 2021 Earnings Call and Webcast — April 30, 2021

PGE will host a conference call with financial analysts and investors on Friday, April 30, 2021, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Friday, April 30, 2021, through 2 p.m. ET on Friday, May 7, 2021.

Maria Pope, president and CEO; Jim Ajello, senior vice president of Finance, CFO, and treasurer; and Jardon Jaramillo, senior director, Investor Relations, Treasury, and Risk Management, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and comprehensive income, condensed consolidated balance sheets and condensed consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

About Portland General Electric Company

Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon, with operations across the state. The company serves approximately 900,000 customers with a service area population of 2 million Oregonians in 51 cities. PGE owns 16 generation plants across Oregon and other Northwestern states and maintains and operates 14 public parks and recreation areas. For over 130 years, PGE has delivered safe, affordable and reliable energy to Oregonians. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. PGE and its 3,000 employees are working with customers to build a clean energy future. In 2020, PGE, employees, retirees and the PGE Foundation donated $5.6 million and volunteered 18,200 hours with more than 400 nonprofits across Oregon. For more information visit www.PortlandGeneral.com/news.

Safe Harbor Statement

Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the Company's full-year earnings guidance (including expectations regarding annual retail deliveries, average hydro conditions, wind generation, normal thermal plant operations, operating and maintenance expense and depreciation and amortization expense) as well as other statements containing words such as "anticipates," "believes," "intends," "estimates," "promises," "expects," "should," "conditioned upon," and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including, without limitation:  demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the Company's generation facilities, including hydro conditions, wind conditions, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; failure to complete capital projects on schedule or within budget, or the abandonment of capital projects, which could result in the Company's inability to recover project costs; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy market conditions, which could affect the availability and cost of purchased power and fuel; the development of alternative technologies; changes in capital and credit market conditions, which could affect the access to and availability of cost of capital and result in delay or cancellation of capital projects or execution of the Company's strategic plan as currently envisioned; the outcome of various legal and regulatory actions; general economic and financial market conditions; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or liability for third party property damage; cyber security breaches of the Company's customer information system or operating systems, data security breaches, or acts of terrorism, which could disrupt operations, require significant expenditures, or result in claims against the Company; PGE business activities are concentrated in one region and future performance may be affected by events and factors unique to Oregon; the impact of the recommendations on the Company and its operations based on the review conducted by the Special Committee of the Board of Directors relating to energy trading losses, the time and expense incurred in implementing the recommendations of the Special Committee, and any reputational damage to the Company relating to the matters underlying the Special Committee's review; and widespread health emergencies or outbreaks of infectious diseases such as the novel coronavirus disease (COVID-19), which may affect our financial position, results of operations and cash flows. As a result, actual results may differ materially from those projected in the forward-looking statements.

POR

Source: Portland General Company

 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(Dollars in millions, except per share amounts)

(Unaudited)





Three Months Ended March 31,



2021



2020

Revenues:







Revenues, net

$

612





$

564



Alternative revenue programs, net of amortization

(3)





9



Total revenues

609





573



Operating expenses:







Purchased power and fuel

169





153



Generation, transmission and distribution

80





73



Administrative and other

86





71



Depreciation and amortization

103





108



Taxes other than income taxes

38





35



Total operating expenses

476





440



Income from operations

133





133



Interest expense, net

34





33



Other income (expense):







Allowance for equity funds used during construction

4





3



Miscellaneous income (expense), net

2





(4)



Other income (expense), net

6





(1)



Income before income tax expense

105





99



Income tax expense

9





18



Net income

96





81



Other comprehensive income





1



Comprehensive income

$

96





$

82











Weighted-average common shares outstanding (in thousands):







Basic

89,556





89,429



Diluted

89,703





89,579











Earnings per share:







Basic

$

1.07





$

0.91



Diluted

$

1.07





$

0.91



 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

(Unaudited)





March 31, 2021



December 31,

2020

ASSETS







Current assets:







Cash and cash equivalents

$

135





$

257



Accounts receivable, net

268





271



Inventories

67





72



Regulatory assets—current

25





23



Other current assets

127





98



Total current assets

622





721



Electric utility plant, net

7,616





7,539



Regulatory assets—noncurrent

591





569



Nuclear decommissioning trust

44





45



Non-qualified benefit plan trust

43





42



Other noncurrent assets

153





153



Total assets

$

9,069





$

9,069



 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS, continued

(Dollars in millions)

(Unaudited)





March 31, 2021



December 31,

2020

LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities:







Accounts payable

$

199





$

153



Liabilities from price risk management activities—current

20





14



Short-term debt

200





150



Current portion of long-term debt

20





160



Current portion of finance lease obligation

16





16



Accrued expenses and other current liabilities

319





322



Total current liabilities

774





815



Long-term debt, net of current portion

2,886





2,886



Regulatory liabilities—noncurrent

1,353





1,369



Deferred income taxes

391





374



Unfunded status of pension and postretirement plans

299





299



Liabilities from price risk management activities—noncurrent

118





136



Asset retirement obligations

270





270



Non-qualified benefit plan liabilities

101





101



Finance lease obligations, net of current portion

128





129



Other noncurrent liabilities

74





77



Total liabilities

6,394





6,456



Shareholders' Equity:







Preferred stock, no par value, 30,000,000 shares authorized; none issued and

outstanding as of March 31, 2021 and December 31, 2020







Common stock, no par value, 160,000,000 shares authorized; 89,576,748 and

89,537,331 shares issued and outstanding as of March 31, 2021 and December

31, 2020, respectively

1,233





1,231



Accumulated other comprehensive loss

(11)





(11)



Retained earnings

1,453





1,393



Total shareholders' equity

2,675





2,613



Total liabilities and shareholders' equity

$

9,069





$

9,069



 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)





Three Months Ended March 31,



2021



2020

Cash flows from operating activities:







Net income

$

96





$

81



Adjustments to reconcile net income to net cash provided by operating

activities:







Depreciation and amortization

103





108



Deferred income taxes

(1)





7



Pension and other postretirement benefits

6





6



Allowance for equity funds used during construction

(4)





(3)



Decoupling mechanism deferrals, net of amortization

3





(9)



Amortization of net benefits due to Tax Reform





(6)



Deferral of incremental storm costs

(41)







Other non-cash income and expenses, net

13





19



Changes in working capital:







(Increase)/decrease in accounts receivable, net

(2)





19



Decrease/(increase) in inventories

4





(1)



(Increase)/decrease in margin deposits

(1)





(19)



Increase/(decrease) in accounts payable and accrued liabilities

26





(22)



Other working capital items, net

(14)





(9)



Other, net

(20)





(16)



Net cash provided by operating activities

168





155











Cash flows from investing activities:







Capital expenditures

(153)





(162)



Sales of Nuclear decommissioning trust securities

3





3



Purchases of Nuclear decommissioning trust securities

(3)





(2)



Other, net

(9)





4



Net cash used in investing activities

(162)





(157)











Cash flows from financing activities:







Proceeds from issuance of long-term debt





119



Payments on long-term debt

(140)





(98)



Borrowings on short-term debt

200





20



Repayments of short-term debt

(150)





(20)



Issuance of commercial paper, net





20



Dividends paid

(36)





(34)



Other

(2)





(5)



Net cash provided by (used in) financing activities

(128)





2



Increase (Decrease) in cash and cash equivalents

(122)







Cash and cash equivalents, beginning of period

257





30



Cash and cash equivalents, end of period

$

135





$

30











Supplemental cash flow information is as follows:







Cash paid for interest, net of amounts capitalized

$

16





$

12



 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS

(Unaudited)





Three Months Ended March 31,



2021



2020

Revenues (dollars in millions):















Retail:















Residential

$

310





51

%



$

279





48

%

Commercial

162





26





159





28



Industrial

60





10





51





9



Direct Access

11





2





11





2



Subtotal

543





89





500





87



Alternative revenue programs, net of amortization

(3)









9





2



Other accrued revenues, net

13





2





5





1



Total retail revenues

553





91





514





90



Wholesale revenues

33





5





47





8



Other operating revenues

23





4





12





2



Total revenues

$

609





100

%



$

573





100

%

















Energy deliveries (MWhs in thousands):















Retail:















Residential

2,239





35

%



2,131





31

%

Commercial

1,564





24





1,626





24



Industrial

897





14





810





12



Subtotal

4,700





73





4,567





67



Direct access:















Commercial

150





2





170





3



Industrial

359





6





355





5



Subtotal

509





8





525





8



Total retail energy deliveries

5,209





81





5,092





75



Wholesale energy deliveries

1,245





19





1,693





25



Total energy deliveries

6,454





100

%



6,785





100

%

















Average number of retail customers:















Residential

797,602





88

%



787,095



88

%

Commercial

110,703





12





110,073



12



Industrial

193









194





Direct access

601









627





Total

909,099





100

%



897,989





100

%

 

PORTLAND GENERAL ELECTRIC COMPANY AND SUBSIDIARIES

SUPPLEMENTAL OPERATING STATISTICS, continued

(Unaudited)





Three Months Ended March 31,



2021



2020

Sources of energy (MWhs in thousands):















Generation:















Thermal:















Natural gas

2,383





38

%



2,433





37

%

Coal

582





9





1,186





18



Total thermal

2,965





47





3,619





55



Hydro

317





5





369





6



Wind

532





9





585





9



Total generation

3,814





61





4,573





70



Purchased power:















Term

1,844





30





1,604





24



Hydro

340





5





345





5



Wind

239





4





64





1



Total purchased power

2,423





39





2,013





30



Total system load

6,237





100

%



6,586





100

%

Less: wholesale sales

(1,245)









(1,693)







Retail load requirement

4,992









4,893







 

The following table indicates the number of heating and cooling degree-days for the three months ended March 31, 2021 and 2020, along with 15-year averages based on weather data provided by the National Weather Service, as measured at Portland International Airport: 



Heating Degree-days



2021



2020



Avg.

January

620





588





719



February

641





605





598



March

544





568





530



Year-to-date

1,805





1,761





1,847



Decrease from the 15-year average

(2.3)

%



(4.7)

%





 

Media Contact:



Investor Contact:



Brianne Hyder



Jardon Jaramillo



Corporate Communications



Investor Relations



Phone: 503-464-8596



Phone: 503-464-7051

Cision View original content:http://www.prnewswire.com/news-releases/portland-general-electric-announces-first-quarter-2021-results-301280858.html

SOURCE Portland General Company

This article originally ran on curated.tncontentexchange.com.

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