Portland General Electric (POR) 30 Jul 212021 Q2 Earnings call transcript

Good morning, everyone, and welcome to Portland General Electric Company's Second Quarter 2021 Earnings Results Conference Call. Today is Friday, July 30, 2021. 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. [Operator Instructions] For opening remarks, I will turn the conference call over to Portland General Electric's Senior Director of Investor Relations, Treasury and Risk Management, Jardon Jaramillo. sir. ahead, go Please

Good us I'm today. Chelsea. able that to join morning, you, pleased everyone. you're Thank

to actual which Before to call. at we presentation remind begin The you our we this on that have morning, materially to Referring slides are forward-looking of inherent prepared our throughout be We our you caution some and statements. statements risks referencing this involve we'll I'd available differ remarks investors.portlandgeneral.com. like our supplement the X, results uncertainties expectations. and that from Slide discussion, constitute morning website may a such will

For and Forms Vice materially, of Pope, of please of XX-K Jim are available and could recent website. release that differ our a and Ajello, to Senior most description press XX-Q, our Maria earnings which the actual Treasurer. are factors our discussion today refer and President CFO on to on some Leading CEO; reports results and President our cause periodic Finance,

remarks, prepared their line questions. we your the Following will open for

Now over to it's Maria. the call turn pleasure to my

Good all us. wave heat June the economy for story a morning rebounding you The and tells quarter. joining us thank and for

XX% wind demand, guidance of $X.XX advance growth results deliveries, to recovery, earnings X% and resiliency detail. to light revenues the energy wildfire X% the diluted X, higher our capital economic earnings result accelerated the This administrator $XX per income rest or and higher up outlook power revising purchased year. will of net more additional Total we've diluted $X.XX in also of Slide Jim to higher by $X.XX across expenses. to greater our for of guidance. expenses season, or compares million of as increased a investment quarter of energy as million updates In share from $X.XX, high reaffirming growth the second quarter $XX to Turning increased provide the with we and usage heat in are will XXXX. reported net of we discuss for the were retail Later and and second XXXX. as as other by $X.XX income this second the driven low Operating the share per He and of well $X.XX as prices during well hydro as the compounded conditions for region. in quarter To at recent meet wave. well call, the review regulatory long-term as

have unprecedented third its late in For also to the we experienced last was not In wave temperatures in winds weather but intensity, caused June, Record months, a events. historic XXX time unique XX heat only soar within the degrees. heat duration. to

the heat we that and do system. not the strong most our It I also these challenge importance what challenge acknowledge is communities. to impact we reliability. maintained training, business was times, our and in event human and we a of X,XXX day, to more as ago. of the a as two over processes, improved our dedication co-workers served management decades it Through megawatts hottest than the previous just record ongoing of disaster On X,XXX generation, grid well evident. of for who the In a compared record want work just full live investments our and in preparation for the infrastructure, load all megawatts, to was and thanks people

partners. team cannot delivered. my communities and and focus is I out our will our the events, well to responders everyone our extraordinary as of be June priority. This safety serving at Looking overstate other weather our always for and gratitude customers PGE, and as first community

so Pacific this year, early Northwest unprecedented is to the the spiking temperature's prepared. in While we particularly extreme in were

and resiliency system prioritized more building smarter payoffs see a continue to hardening from we and have resilient We grid.

our to system. isolated especially preparedness distribution Our the also of not improved We've weather. under extreme reliability, generation focus stress on is

these times. our agreements across role and renewable surplus regional and in energy to supply also with Our a also saved Oregonians us megawatts ensuring customers needs. peak to Partnerships enabled reliability. demand through exemplify in these meet off critical response leverage extraordinary played partnerships standby Partnerships our needs. significantly flexibility these together Together will as spirit the and their work and like reliability generation XX programs we growth expand of

including near is areas, top highly The majority of the stark six X, everyone for example. burning a Oregon’s our area bootleg of wave live The urban Southern in wildfire. of California in Slide cities. heat largest mind people is developed to in wildfire extreme border following five currently the vast Turning Oregon service

Our region is climate, not Oregon. also have vegetation forest do we terrain. historically, And geographically or same Southern different from California and the

local, climate is a gets Oregon's central agencies. reduce state more Prevention, is analysis, including partnerships top than risks detection Oregon customers to are strong with PGE comprehensive hotter keep Wildfire and ever federal as well doing response and to as investments, approach, risk priority. and As and safe. drier, our infrastructure and

We and are deploying imaging as areas. and to such increasing LIDAR hyperspectral high-risk technologies prioritize management vegetation

grid, on situational collaboration, monitoring, others. To in And fire our prevention alert zones. improved iron our transmission focus and ductile resistant with clearances areas. PSPS investing also is awareness. were shutoffs public undergrounding automation, line systems, we've distribution and three-wire, We is of miles better and transmission detection and enhance safety or lines which and we're wildfire We in power our and modifying sensors, expanding in installing monitoring remote expanding certain while of are areas, poles use early priority reclosers and

As of our work is the serve. improve and lives to we we communities our property coworkers, number priority one customers, continuously protecting the our and

urgent taking in to XXXX recently us we're conditions lawmakers end, legislation provide climate need gas power the XXXX. clean to underlying of significant driving shared Oregon emissions to an goals safe, XX% and energy To XXX% change. our reliable that There's reduction essential. address greenhouse passed advance by actions the by enabling While

enables support opportunity EV and to us our us community extend we While affords key programs tariff infrastructures the bill the further continue the behind the and transportation IRP work bill processes, to electrification adoption, up to to through green meter. this the

social low-income efficiency chart Overall, customers, to and modifications this the the community, decades. and important justice expanding well Additional integrating focus a and working session among traditionally organizations, energy of than business forward the of groups these as in the as distributed purchase on social energy areas justice, important our years We and reliable and the challenges, laws past aspects energy together, to Well stakeholders look well. public the once outdated collaboration this in behind, again sector, presented resilient more and public dating renewable continuing two across is clean investment those us energy legislation left standards back this in environmental continuing community, from partnerships, resources equity significant prepared most invest resulted energy to country. quarter, pre-planning portfolio, grid. industry,

I'll high-tech As region, and migration. we we by look over more continued digital turn forward, to were expanding in and growth for Jim of sectors it encouraged our now the detail.

pandemic to load on Thanks, making of unprecedented Maria. this further morning But of year impacts we I'll growth. from and of challenges our the as showing is events, economy position again. the the and certainly economy commentary once This the business. on recover ahead. climate signs weather vitality been us the begin also a change underscores investments Oregon's emerge we’re to how which continues with highlights tackle

and end if least safety economic vaccine one XX% Oregon June, decades, is generations”. July XXth, not first fully XXXX stated, shot, unemployment the eligible approximately May in the the Oregon at from improvement have reopened revenue June X% strongest for quarter. are of lifted. economic in Tri-County was near-term Oregonians had of over and X.X%, I of in growth at outlook The in of just the quote area and “the Through protocols the Portland and As is and forecast

a to year-over-year in with services growth. contributor brisk the place high digital commercial The of continue taking segment growth We see to pace. strong our recovery recovery commercial load at and a tech was

of cover Slide which X, diluted I'll to performance to as June per period comparable Slide said, XXXX. on of financial share XXXX. compared we in Turning $X.XX, $X.XX Year-to-date in second is earnings reported share the $X.XX our share $X.XX per X. to quarter compares the per quarter-over-quarter Maria

serve for heat the the these market experienced. quarter higher power weather loads. a costs. the and resources the very we XX% due procured Purchase increases more event, extra had demand saw we the weather. with to gross both Offsetting due recovery to strong $X.XX power quarter power we in preparation extreme XXXX, due First during expensive higher and and fuel high these regional power ready XX%, ensure COVID-XX were industrial margins for experienced costs customers reliability. increased to our we at commercial costs of increased where of second a In June Revenues for higher in to to low we acceleration the higher decrease in usage primarily

And effort partially fewer by resources the legal $X.XX benefits to the due to reduced system Our our storms generation to fixed work during expense by increased the maintenance expenses lower restoration plan was and This related were we that and to O&M the wave earnings was prepare delayed higher activities February as offset at in distribution heat expenses advance of decrease wind did respond of credits tax June was thermal not production these decreased Administrative expense higher $X.XX, or result from in expenses. events. less a finally, from of wildfire as We and system. spare to $X.XX tax a PTCs there expenses earnings generation. facilities.

rate general review with X. in new Turning Oregon to this to case effect commission take cost, public we the prices the service filed our to Earlier providing utilities and approve Slide month XXXX.

this in overall our not X.X% timing consideration me, deliver to on impact electricity billing filed packs, investment to We a and customer well the and of our billion COVID-XX since of middle of pardon as of delay, was reflects clean XXXX, to reliable, to price increase as customers. rate case nearly year of upgrade the $X The safe, community. decision filing the of into system the have

months costs proposed keep the our expected May open safe of modernize, T&D and we stakeholders individual in resilience. to established and investments Technology be have hydro resilient docket the this weeks. set customer process, prices with this coming and should to our procedural our to XX operations to the is of our integrated for made schedule complete most crises. enhanced wildfire And and We’ll including year, in approximately The weather take with from to related effective upgrade small our center grid, importantly, new strengthen large of work this and facility. include projects, expected system hundreds reliability system by in for in growth, protections be XXXX. upgrade of which to to the end Faraday disaster Specifically regulatory recovery repowering for

with is process selection independent new scheduled. evaluator RFP as renewables Our in forward for progress moving

the on more November into bidding this RFP still process. issuing planning resources upcoming and or benchmark are the We one

to continue in we OPUC a we Regarding storms, February storms. approval XXXX. of June to decision Through from the expect million these the related our $XX to deferred expenses deferrals related the February on the XXth, have

these response their respective We’re as Cost COVID-XX confident prudently costs were in recovery unique expenses the in wildfires storms. to and of they incurred of recovery remain these in unprecedented of approval nature and and dockets. the

X, Slide XXXX. to through Turning our capital which shows forecast

strong by will issue Our the continue I June heat ratings, track On sheet, in a demonstrated and accompanied we grade have outlook. including to investments the and Slide have capital grid to need not that investment and remains stable their wave. we liquidity in And solid reaffirming maintenance during we XXXX. to reliability XX, equity plan value balance am on a made maintain customers

with expenditures capital to cash is XXXX and $XXX long-term $XXX fund to from million million. maturities to operations from which expected during debt expect range XXXX, We

revising the $XXX deferrals. regulatory to difference million are cash timing $XXX represent to downward of from this We range million

in more and our system order capital than have additional investments. to adequate our access capital and We to planned support

satisfy $XXX are the still issuance refinance a requirements. earlier year long-term to note will our up issued debt year on this and short-term million, planning which We XXXX this later

Slide XX. to Turning

X% first XXXX track well XXXX been we and has half X% base strong earnings performance to growth Our guidance achieve year. long-term on to are of the from

at and territory from X% deliveries anticipate to into continue to from annual to growth and X.X%. pandemic, accelerated home. our XXXX than XXXX This quicker with quarter economic year-over-year anticipated. third energy X% declines in at residential reflects our raising time We fourth from as guidance slight X.X% usage an recovery are less individuals in robust a recovery service pace the We spend

we to average forecast. and in due season conditions dry the heat wildfire anticipate seasonal region, potential the and above and this the hot extended drought ahead, Looking

increasing of Pacific O&M of expense a resiliency year conditions, Northwest series management, September. the is these We which expect we this and peak to the in system. and increasing August In and the reliability by invest for during items, other are forecast wildlife our operating our and full fire and of in $XX for mitigation anticipation to vegetation maintenance million

In on business. $X.XX half year, the in expectations new And we the $X.XX half I’m a optimistic earnings performance per share. from for in our diluted guidance long-term we’re second guidance the for our I’m the of are confident of second our raising of to summary, Given $X.XX for this outlook and operator, to the now year, to of ready prospects $X.XX the level questions.

[Operator Instructions] comes of Your Goldman Insoo Sachs. first line the question Kim from with

Hello, Insoo.

Maria. How the My are you first financial Hey, Jim for on side. here guys? question just

that of you’re demand the you had some the of is this just I like tax as in the of benefits decoupled, what it Is given items of – the the raising but into, quarter here. Just the you’ve want you all regulatory had gives a guidance know as to know that talking the combination well making from first that high which demand robust what timing understand of higher were forecasted. about experienced, part industrial above assuming demand, range? is I’m confidence you’ve I

Insoo. Thanks, Yes.

I right got think you’ve trend here. the

the benefit were. in quarter $X.XX it we have of first did So the as

the are expense I’ll what about that and that some that this the whether about. account prior call there offsetting $X.XX, with So at we $X.XX, took off headwinds looked guidance. into Plus midpoint talked O&M obviously was some we of additional just additional that we demand

takes, some of in net-net, but this, So new lot puts around this done range. a so we’ve comfortable we’re sensitivities and there’s

pretty it got think covered. you’ve well I

lot rate to And to reliability. related operating we there’s O&M that, some year of moving there’s it. there’s the think given XXXX, the XXXX out just the increase sometime way will of XXXX XXXX a you’re obviously types just items. and given think some different about doing when of that increased that to which do on the – parts, could and power, Got I’m EPS, case, this outcomes of of that thoughts play the still expense different that’s right operating your to that on off feel about with like it X% you X% wondering earnings growth the out come the in vacation

Yes.

see we we’ll into little discuss February I which before of more guidance we think to year. need in line XXXX that of sight do a that range,

So even raised years at you’re good in factor, is reasons, look to on will though we level guidance hit important XXXX, I have same O&M you just note come quite back that were where you’ve this to O&M year’s another very later. right. that expect three a the point. I we for O&M if in at two

O&M terms I’m got So in But would with different if reasonable this I it’s in of think performance O&M. own keeping spot holding We’ve in we’ve weather. almost our And it to XXXX. got the on year be, grid strong we’re at where right levels. terms about in and challenges, obviously of

actually. about So pretty good I that feel

had for every of or one than reliability? broad with this not if just thought over curious what Maria, time be the maybe some more the just more bit You’ve if that type And quarters, are natural make normal whatnot, maybe like it’s could. you stakeholders type event. expectations, we’ve doing and general utilities the what been your few another and unprecedented undergrounding lower there. hanging beyond a already to past a of having event it. happened as and Got even on of you’re if investments call, above more, but hopefully you conversations this a type But that’s could mentioned it on fruit the that’s I proves seems frequent, there’s

work. with at disaster we our we We believe who a work stronger. do we of risks And that the are and the responders, and as and crises those assess professionals, specialists with XX of how the and we’ve we we collaboratively taken to that one variety work regulators. had, as which continue even first our planning Anyways, that much well in hard risks. others, to and And we’ve immediately We’ve people will months haven’t with recovery seems firefighter and stakeholders really emerged work our go experienced, we have look forward Sure. last do to given we’ve still as them each learnings reflected had.

Understood. much. you Thank so

Thank you.

Your America. Bank question with next from Dumoulin-Smith of Julien of line the comes

Good me? morning. Can you hear

Yes.

on here. the Excellent. Congratulations outcomes Truly exceptional.

range end, just that out back I special the And through seen this I’m clearly year, neighbors in growth California, understand, some fits to on insinuates very cetera. because of word you themselves, using growth of competence fact and exceptional this your certainly I’m outside low of your exceptional In to territory trend here, obviously mean, trying really pointing not it’s rather that. of your as et But yesterday. a level service trend about low – place guidance purpose, your more we’ve structurally, the what’s just think

how et this of So multi-year a a curious, thinking consequences. about and of does basis that cetera? a Just business perspective, affordability from on I’m from CapEx, accrue rate to picture just how do sort about the of you bigger sort think a the sort

So, been service a And the you. talking Julien, our of for second years territory. thank robust of we’ve all, nature of first couple about

moving to operate We where are to to we are digital particularly to. tech, people people in area they an see very where expanding and fortunate be high want businesses, their where serve interested and in

but and a the further future passed energy the as was the region. in not demonstrates that just own So future. wanting we’re than enhance well as the state in was a Oregonians different is would opportunity very to the instances on within to are this And very I invest company fortunate of And too session, resiliency. note the energy clean to as clean that have reliability, clear growth in which interest many centered legislation a serve some that additional also goals our

we Got to this type I’m a Excellent. And bit it. fashion. ability just these the in then, more issues a backdrop and case to on the settlement I can know little rate sharper and speak resolving question. But evident cost I especially case. some we’re is this certainly any of suspect the management efforts, low considering considerations growth your early, an obviously, the around that curious,

work know, with with just have glove cases. case our rate and but and into going you selling there economy as still our much traditional of in a We in and rate this many still We are – stakeholders, processes, other dockets. not very with history interveners So, felt we collaboration in by and still fragile is of COVID that feel we are many rate case while robust are strongly still very things our have, struggling. that hand impacted

we keep our as low So down. as and to affordable keep possible worked hard to number increases and also the price issues very as of

lot that importance strategic a commission. have our have of We of front issues in

we to and couple with. associated we’re our on so exiting then for mechanisms future mechanism really outage regards of Colstrip And restoration planning on that decoupling generation coal of focused any and really and the with a

Let Jim time a me, that here. important spend more component because let that’s on little an bit

nearly XXXX exception depreciation the depreciation agreement, the we yesterday agreement earlier this one study of into which of year entered with settlement case. unanimous our filed course, in which into in filed a study, PUC, was with come the So, new regarding rates, will party our we

XXXX, coal investment And accelerated future of to expense have a this any date. case. that demonstrated think the earlier of in we One in Colstrip of get an already, here and I that to course, to important our desire the features related so much the to way we’ve of the at important Colstrip depreciation exit

talk this that’s really caught development that the I development. important you one. first vis-a-vis case, So if It’s Julien, we think about can an

sorry in I’m squeeze one. And it. Got to another

time really we've Coast, ramped and decades to same acute – in going when on mean, on growth hydro West a as seen perhaps comes this. position peers rate in lot we is on mitigation you’ve I a resource concerning and seen efforts this basis? spending here really it got and exception and review Coast, to their your several a at wildfires adequacy as really is West to no as comprehensive can more be the clearly You’ve back across

mean, have timing although as important. and the all a that, an Ultimately, it resource get I were of and myriad if sort procurement spending considerations, facts summarize we do underway to earnings comprehensive and in stands when view that integrated growth? on You I already. is how

a XXXX. rate this of on topic. hitting as you're prepare look at very end think for towards I of Yes, year the important we We'll growth the

I one growth. identified is important the think of you've which already variables,

differently, For I got of is watch and the me, of value the is bit. economy into mean, a allow regular to probably sustaining load and a probably was that little us is little growth very something of to that about growth really and referred matter COVID-XX hardest. in load we've industrial which to about This to is growth a little the is hit is dip perhaps our structural you I to think going this I that it's economy. should stay load. the and Commercial – business. increasing I that was Insoo look a here out rapidly. transitional future important, transition CapEx think a think residential as equals of a growing sector differently, little the this think differently, then And which The perhaps composite think at

the watching weather the very we're volatile conditions. out table, load So not we're watching pandemic, of because a transition And on very right. volatile that's today numbers,

account that And end and these the we've growth that so, pleased weather got. year to to more with of frankly just manage towards into But that the fully February. going very conditions. all in grid talk about the we're the got We've and take volatile I'm

So and against and There puts tailwinds are headwinds here. question are your takes there some there.

you if could be So we'll this sort out. patient,

the I best luck. Excellent. wish you of

you. Thank

Julien. Thanks,

with Mizuho Bourdon next of Your the Securities. comes from line question Peter

question. for taking thanks Hi, my

Thank you.

Sure.

follow-up the that updated growth kind rate reflective that, view view? of just was more a that is regard case the long-term to the filed, is or that of in X% on So of

nature. noted in was best what information the a reflects It and volatility unprecedented that tremendous of we have. Jim an that probably say I amount would

inflation the things coming higher out as side. both the as on that's side, us well other wage One is material clearly the of

complex But front are other all supply of with through are We forward. as we're there a chain that number no implications we to our move us with clearly a of managing operations. dealing issues in

Let the so March in timeframe. the with a we load best filed is so just without will intervener. and Maria Peter. update normal load as based as in me case had add, detailed, in What getting the hand on was – forecast, too said, proceed that we the timeframe cases in here these What what is regulator happen the the and September forecast will discussions

So there a up is of a bit catch there.

is that of so up case for sort it And picks as infused into the momentum discussions.

then certainly Jim, guidance? clarify, updated Okay. $X.XX in you. is that or That had you tax the Thank benefit helps. to And the That's included inclusive just first quarter correct. mentioned that

That is correct.

thank you. Okay,

Sure.

next question line Karp the Sophie comes KeyBanc. Your of from with

morning. good my guys here. was us volume Thank a curious you if quarter. little question. for on could Hi, growth you taking a color Congrats give on good I more the

a have So, do of last how year? growth, is you in disruptions strong but that cyclicality as COVID to of moving people accounts much opposed coming clearly, been bound just off of businesses very quarter, a sense that and/or it's from in

you so, and thank Yes, morning. Sophie, good

a we So gross cite right adjusted weather numbers and course right. hard Because of yes, to this is now, in fashion. our what parse bit little

that not this we've in deliveries weather So increased jurisdiction. adjusted got that I've seen – X%. retail

in. to new quite but fairly industrial would that's I'm course, coming Of got, of I say, high. historically a We've speaking that's growth lot it,

rapidly, to third said ago net commercial in And moment I in terms of but the residential largest pin it's migration a to also as in we're that our to of Peter hard now. growth, terms a of right folks. region is think I rebounding

will forecast like that maybe some of you that? long-term you can data growth so that, think Or and of any about something? of kind able Got it. we do the at expect point do But do to you reflect be how update to extrapolate the

you able lot will Absolutely, been we have you we into us, like true a be under a see extreme events have be When experiencing, of trends. what important Sophie. upon. data few to get to more quarters is put tail don't we'll rely And

what we're with terms commercial it's to so, happen be to behind growth And a Jim of of a to in few seeing more terms noted helpful think put what is quarters migration. high-tech determined. digital going I really in still in residential versus us is

trends early are looking too to far it's but call. So the good,

Yes.

just Sophie, to June. it's power this we April had to along volatile in said pretty work be the purchase in quite well situation terms of highlight into June, at market, different enter expected. the given steaming saw and additional we and point, June I which end hit a a May. maybe caused at transition the field, the than moment, even I some the to to of one expectations and as We're other in We the distribution economy. resources had earlier, very earnings month we

weather higher and been So all It's one had one you I'm could the all priority, the field, in this just referring work but procurement necessary. power the even our have shows which to could of back of do the month volatility for but and in be. sort volatile considerably better, signaling is how that we job the distribution it quarter

a you. more before said, we can we'll update time results little the So want see to to look we'll more some longer and we'll – but as Maria trends,

season that September and guidance? choice sort thank But to particular to I you. situation, something also we you, watch guess got or said, grade. what relates as you you, and guidance it wildfire And maybe in then a your August Got that items some peak the go to rating relates of noted. this as on kind would of with and – into your guidance be as this

have. we calculate Well, way. we When obviously recent the learnings I guidance, mean, some take I would into answer at we the of this account only

in in I but will We what costs, side will other weather, accurately I So anticipating that costs the that and tell can additional like with for happen tell you reflects the of terms power the new the build calculate sensitivities costs, you on we O&M guidance this. can't sensitivities.

We out our control. of have four events

Let's way. that put it

as embedded the O&M weather result. a could the costs there power is and notion occur additional of in our expense guidance So volatility, this – that

All right.

So let's fairly for quiet season, a in say the it then for to some numbers had will potential because we be upside you if that. baked a your wildfire contingency

to Well, say contemplates I that. range that of would our the you top

much. so Thanks you. Got

Your the from line Peters Wolfe next question comes Research. of with David

Yes, hi. Good guys. morning

Hi, David.

lead the company, just your some clean line maybe you would legislation that that opportunities and was of additional was could are to color there versus of see you processes outlined this signed. incremental was wondering the fruition. some with I that areas maybe that goals you plan a on think have as currently in to could what you energy I kind if through need recent just before work investment know you but come provide to

Sure.

it on overall. reliability And an reduction is on legislative in the the gases headline the was grid, clean look greenhouse XXXX, energy really as by So XX% resiliency at extensive you part more think on focus XX% But I this innovation. by important strategy time. by XXX% General’s XXXX, with alignment Portland XXXX latter obviously technological it's that for knowledge and and dependent that us is aspirational, some upon

regulators clean energy stakeholders we be So future. our with working accelerate we'll and with collectively as

on environmental It XXXX it's up dates support things focus cleaned some and other some and provisions. we restructuring from also addition, justice includes back that to language In laws a community like strong that.

many this We've an the energy tariff. had cities electrification. allows I expansion tariff to interested collaboratively clean and green worked programs others this further and gave expand to transportation note then are going just with than saw customers done. We also would green of in place also and while, to you. We in faster with sooner And for a community dates a get community who us the I XXX% our

that this number adjustments. in Western one sector. do charge, the and versus now issues in energy Governor the Brown’s energy leading faster And – of traditionally leader to work a then Oregon program through past XXXX we the the you clean And was transition tenure year. the it really most extending we're more Governors transportation Oregon of trust As to which is a and one – public infrastructure the up of country be prior there's they the the know, transportation a purchase But centerpieces XXXX. its in around do making enabled supported good to enabling some will of that so finally this It meter, efficiency is importantly, legislation expiration of through Kate electrification. to terms really behind

that parts moved particular, our traditionally focused all say comprehensive. who behind inclusive, clean community that are those energy it's makes would I in It left have So on future. as been a we it's of we sure to

more are the We in and dialogue. relationships the partnerships with built things out importantly, ongoing very turned how pleased and

learn. in probably much have of We’re that just beginning and to the

just David, cap that to off.

to our the and So out products step think new we to out, for this the figure implement back us I well for very how and cost execution sets now want table, of strategy them. provide

of at really and point we're the sort what execute We're stage. comprehensive by So want beginning we pleased where that? it. we can of the it, we're that nature make now the investments against we how But do just of shape say, do at to

any just or has movement you. curious, And share? know Wyden I there Thank could anything that on bill the been initially, then recently Maria, Great. on of you testified Senator front you behalf

there's gone. terrific think I conversation

think be adequately to participants provisions forecast playing of to legislation regulated a lots all. able not level of the really energy how of the at will and think tax a face to But that customers changing forward. is, normalizations think others, the for future, in to investment And bringing our going I utilities movement. of the between I and recognize going fix accelerate benefit clean to we additional energy key credits there's I'm field that table.

it. obvious of save the meaningful respond that be way or we November. it's This anticipating – think the in to say the anyway. to I I'll terms RFP we're that implement And probably in could it

this in this and hopeful. industry are in Senator and the leadership hoping moves that really with others Maria's forward we're So

Great, thank guys. you

on comes Russo question next Your Brian with Sidoti.

need the give Yes, substations for Most referring electrification charging to or bill and front electricity more new to you're deliver some pursuing examples? and areas my and in been EV? Are you good service support of morning. just EV various questions that that to have the territory, within answered. transport can you're to stations talking you your the strategy meter, But on asked us behind

Yes.

of All the above.

in and cabling to it be will and stations more two it additional charging out will themselves. get will So charging be and our and It system making stations of robust. be infrastructure expanding

sector, that will largest electric legislation to is economy the it sector a we is help and emitter expanding really the transportation more know gases more of enable piece to into the broad So which to of the in us efficient greenhouse transition our rapidly and being cleaner.

Hey, in been Brian, even before this recently, legislation we've implemented was discussions.

owners, behalf. various rollouts a good fleet team a on discussions very their dedicated at larger looking been have team, We with in

I would that And now. that as right think you know C&I active these very on sector quickly opportunities. very we're probably space well moves the as in

interesting I nothing kind this an this in will years have announce, the amounts is opportunity. also segment. be future capital increasing think allocate We to going be a This'll of of that to place to but where

think over it and for really a be changer very could the term. important a us I game strategy longer

going dollar and EV the very And be, type that curious especially which right occur. opportunity what in there's CapEx Right. I My in was this just now. any support with was could to suppose, might timeframe Governor’s then little to of I be, follow-up involved time investment, of know, of

backbone Yes, we're we'll ready about work out it's not more but at of And do as now. the transactions. make right the sizing as more ready that roll we'll that fleet talk that we system today, increasingly we do something

hear that. on and us more You'll from more

as to will industry helpful system be able of battery to and homes, charging, system There's with it some businesses being to reliability overall work regular we on bi-directional do and updating to stores increasing the customers, very much reliable business the move very, more because synergies stability this that the equipment really our amounts nice we use Also, infrastructure. serving of we support of as transportation renewable. for bring in grid invest and makes the as that

point, I here resources the but And up in recent belabor the XX not demand to most event. heat showed megawatts that would add also with while

out transportation to think be dramatically be dots, want to will there our DERs increase that systems that more increasingly, we and battery use with the connecting and of the roll out we TE that. as those going strategies I of one symbiotic electrification is

And just XX-Q. half when the the just look second of year, Great. clarification, disclosures at we in per then the

that the June, costs the below you're you're I the But net dead think $X above. million in and within is of of PCAM, power forward look variable but end of sharing. man, the terms going be As to for the the year

So of implies half some that the costs second is way look meaningful the swing that it? in year, the the power way favor at to of in

I you're I see it way. same the think directionally correct.

baseline. I above $X there's same the get there. a million So the benefit

correctly. think sized it I So you've

is nor does the benefit your midpoint it of zero So power for assume guidance, balance, adamant on neither costs?

Yes. that's minor about I degrees Yes. certain right, say would within of difference.

we're in at would change I margin. And a looking really is what say

So lower you revenue. lower costs, power higher have but may revenue. may we we have costs, have We also power may have may higher

I to look at differently that the we'll the beginning of weather to we've this events we're So think see. continue seen and given volatility likely

As noted, significant remain transition the and the for lot volatility. a resource a period Julian west. we're more And Pacific Northwest in adequacy entire issues of and just

Understood. it. Thank Got you very much.

you. Thank

Hedge. Levi Andrew HITE Your with from next question comes

hear you Hey guys, me? can

Yes, Andy.

Good.

the I first make concerned. touched you've as on, is of mean, economy really to my was Couple far and territory is of stuff Okay. going been more, as a well, sure of I on question that touched of I that. but guess, around service kind lot it's questions. the

within territory in continental the So maybe XX. the you're and like it unique very our industry seems within a situation probably service best

are will purchase that on well. touch kind fact that. you you maybe that top Colstrip So of have on power, have looking can opportunities you a growth you of needs for the And also a around, as the have at what lot of

change this So the on upside? can the I how the But you continues of in know idea plan kind going give later – growth file an this if may you're for to year. us your plans

I we've, So no, year yes, it. that I think got Andy given the

take load the see ability we've innovate unique that going need really in growth customers with XXX, collaboratively to the that tremendous work And it's and agility. of residences, we take energy And work talking think have that renewables clean appreciation for integrate and year will businesses, their RFP a customers or a their period I it's energy a to future, ways of that want a a to of to as say distributed it's XXX for capacity continue make we whole stable and options to we're of look been coming, forward, I it's our all going investments. what opportunity able above it's and on been energy the for arrive. of resources, all if we're the take be then and think value stable, to those a for affordable we of through; megawatts about our stakeholders deliver particularly would each the grid. and fortunate. nice for a clearly and will for with need grid, And and integrate word kinds set collaboratively flexible long we that's going we've different support learned our I We've who solutions. to a the given it time our new to of transition When look at have variety average of reliable to and sure

and right? a decarbonization going see fulfill say referring would to of renewables to really growth to in Maria XXX, I the our lot goals but Andy, XXX traunch, that this region. we're is The to the terms next in more like

looked new XXXX So I more renewable as Colstrip think I XXXX, beyond right. that we an We this will of to beyond hundreds delivery, do from many, see go. IRPs megawatts power exit many the add

As I mentioned has XXXX filed hopeful earlier, about the depreciation I'm that. and been

see this a more accommodate a I see growth. lot to renewables I here, and So on coming strong transition

sustained more opportunities; not pointed and the to next I'm this of of – decade, seeing we as traunch have I'm looking just Julian I'm looking resources that towards will sustained the add So and growth that out, you end and require the growth system.

transportation the electrification have only more now the that is going energy of increase have. we resources; to We many opportunities distributed growth

and very line. positive resources I I the a for down it's – outlook So growth look think as

softens also that? the also obviously follow-up the rate Not that then I And within top-line then... of And Jim, increases. the a like but Maria increases offset period, and growth growth have helps need rate it for service is that beauty territory

on ability to customers right. important really on and I absolutely resiliency serve provider all that energy continue in invest have ability reliability You're system. a be that does synergistic it's and point, their our think recognized and just the to Andy we that our customers of impact to

tend also in And system. down what's at view different as company risk. of, but the But happening at get a Oregon. kind look and and as out a close obviously take you kind territory the Southern is I and reliable happening in And of as customers to look other people, pointed to large opportunity see important, Oregon people guess should I service for then a wildfires your what's you in for a California more a that's opportunity importantly, very your Southern I that, more that in I

put Have kind power no a always intended. Portland internally been it, that's as reliable state. area going but talked people, the whether Oregon imported brokers reliability parts keep from be it's it's with around that with to California depend about that of growing – power the way as better and growth pun being the regulators and other it's your grows, other grows important, of to and guys just and obviously is with So to or on grid the to needs you to grid

end done around the whether lot we sense take June know, event? a some as you risk Within fire supply the up it's away in centers has to in of state to June or the you whatever in Oregon be that that that saw, the of load of as this a and generation that installing – far renewable as

strategy resources. So, which is articulated be of integrated Andy, that what distributed our to to able center, core is more to our just generation you've around operations manage

include some we develops as as well resilient. more reliable, storage to make will battery more others technology As increasingly

have company when become, we pandemic, and we it's every and people came we that have months. community overall as care never about past collaboratively so we've correct. future. of up absolutely the waste. we've XX that really this we that And as a the you're a work emerged We've crisis its into the who But of term with responders with. I together and go partner's, expression event company; customer's, good out can we many first region, Never our tell have dealt Oregon our stronger a that you, would come thought we an prices leaders, team that going So see with and let would to and

Got growth rate after policy. refresh it. may kind When in the on case or And my just an is we really are that it's And then get that? we fourth guess last quarter get call a, it maybe do when update well? I goes look, we become – step around the refresh, dividend rate of assuming type as policy update CapEx some question any or kind the of to dividend of whether I look things whatever be may at assume get the positive, there'll be lock

our, here at at to our look to add and growth Yes. pending our dividend. what's I your look rate that question would is,

we a competitive, now. X.X% over been multiple years think CAGR dividend provide know, I a very of today. at you We've

saw dividend it were I yesterday's ratio quarter we the that payout XX%. announcement. XX%, the we at call see You at a from – dividend

determined. factors, few a the yet exactly see will dividend absolutely in to other to does for affair a clearly the I we're it that be It be on there. it growing strong depending future, for I rate a and been that but is think case here how around steady So much us, important we've but experiencing as the pretty position is CAGR average X.X% going be

way. dividend is important we the our on expect to that total to think part return a shareholders, I of carry and So

you very right next for go trailblazers Thank much year. Okay. and guys

Okay.

you. us We you. and you very you interest company, Yes. appreciate and next we near all thank future, joining connect with your see in our quarter. for the in we'll And hope Thank least, at today. you to Thank

participating. for conference today's concludes This call. Thank you

now disconnect. may You