Portland General Electric (POR) 29 Oct 212021 Q3 Earnings call transcript

Good morning, everyone. And welcome to the Portland General Electric Company’s Third Quarter 2021 Earnings Results Conference Call. Today is Friday, October 29, 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. Jardon remarks, Portland to of General Treasury Risk opening call the Investor For and to over Electric’s Management, Instructions] I'd turn like conference Relations, [Operator Jaramillo. Senior Director Please go ahead, sir.

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

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

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

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

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

you and a power all Good And results weather quarter. our our this impact joining Jardon. thank region summer morning, on market us. Hot you, significant for had thank and volatility and on

third quarter volatility per $X.XX XXXX. and we for income earnings energy financial share. performance of million $XX reaffirming per guidance of $X.XX the share is of third track. higher $X.XX our $XX X, quarter for million loss despite, per are net markets the on Slide Year-to-date reported $X.XX the of to compares third quarter XXXX or And with in to of O&M, we XXXX. Turning share This the or

in well unchanged updates versus and business constraints. remains results as while and summer reaffirming investments of energy the our meet year. the up that targets of resources non-emitting clean continued capacity. up and outlook is XXX as are the taking provide in discuss the XX% capital digital and have and part quarter XXXX importance and rest X,XXX goals decarbonization our megawatts the load to strong, XXXX year. ensuring the to XXXX of and guidance. transition X,XXX cover outlook last will of technology to we our detail, hot driven require we more quarter, COVID is additional and the approximately resources. to also megawatts use due that ongoing sufficient change for to regulatory Overall, third will X% actions versus growth weather earnings from our estimate sectors, long-term we for The Jim underscore climate Year-to-date growth elevated impacts carbon-free long-term capacity rapidly revenue of residential XX% that by are a We X% approximately Our future and

In resources removing addition renewables RFP, be seeking X,XXX coal capacity of from of and non-emitting which approximately issued in will our portfolio, we're as our megawatts part to December.

plan to XXX renewables portfolio. megawatts our to we add procurement, this XXX of part As to of

on bring to non-emitting We will approximately also XXX special capacity. of

grid as upgrade plans IRP me, We distributed for XXXX We distributed energy to resources, so with affordable. the participate distributed meet We projects customers opportunities lay to could me, out evaluate need third In only needed our target recent resources of making procuring it RFP to not for to keep resources, use, much and the and supports the resources, energy make the RFP. to manages that estimate emissions this the to more and resource, plan. would demand will need the clean easier these process, such electric as periods. integrate energy our additional panels, and especially for programs, reliable needed about customers of flows a renewables. distributed reductions service We customers in types batteries, parties of and are robust energy sense vehicles. with peak see as meet flexibility during work grid procure solar come submitted our priced. OPUC of the in the energy future to process excuse excuse from that response We We to two-way helping XX% and better decarbonized system future attractively

with megawatts megawatts to worked by to working XX of the equivalent program summer customers XXXX. to grow end of to power XXX the homes. We're heat XXXX During up, powering we XX,XXX significantly save this

selected Energy in placement connect their the this of DE&I We are batteries, energy our communities as been have to EV pleased such clean Department of in of underserved are program solar local to and working on resources, groups communities two-way participate by the and panels charging that customers ensure very as part transition. with

these review of customer business. prices Regulatory with upon program. ESG have working Sustainability partners do, the including examine a recently that In we our number Transmission Organization. Regional of advance $XXX We we'll been part we'll and successfully a our bolster west million adopted Energy and rate for a expansion we to the Commission one in and to wholesale advocating Western balance in fabric and advocate cost these continue report, early As Throughout are planning, placed green the voluntary financing. resource receive PGE adequacy credit. energy Yesterday, of offset is is under building retail green bonds. accelerate benefits strengthening Sustainability customers. our the leader we one new ranked everything framework, for through across we a which to the published reliability the The utility participants the in our foundational a transmission we we markets increase rigorous processes, prices, from market, reliability, of for revenue decarbonization, revenue western financing renewable filed standards. of lower and to integrated to revenue. our third-party case markets, Federal September,

as case We on stakeholders. rate with working cash general as items. at the XX/XX progress forward cost We with and to XXXX look of continue the gives settlements reached and October have on remaining structure. to well equity In stakeholders resolves the that X.X% make our

as I'm welcome Farrell and generation own clean Finally, of in Dawn to of as in advance in based our will transformation. leading energy the her her transforming important company TransAlta Directors. Dawn President experience sector, deep a well March, pleased CEO leadership our renewable a be Board retired thermal as to company we to energy as

like the Now Jim. turn over to I'd to call

you, Maria, morning, Thank and good everyone.

strong hotter same markets energy remained power weather. opportunity The labor higher fundamentals was and fueling from of a are growth in time, continued growth and the in our evident At with market enters third economy results job and as growing in the a ongoing strong demand growth the throughout economy new demand summer. volatility the and the challenge Our reflect quarter We the experienced normal. load the region. strong

This customer deliveries across quarter, we weather. had segments strong benefit additional with our favorable from a

remains services contributed load and Our grow selection high these trends this remote data activity anticipate higher continues. others. to Customers tech continue X% Residential QX has center sectors growth. as developers digital pace a when to and site usage and We an XXXX. significantly strong to continue rapid to uptick elevated by are compared at we’ve our work capacity year-over-year in and seen expanding

loss third third represents for year-over-year and XX% Slide of income to share the increase to income in in share $X.XX third the weather generation. quarter-over-quarter renewable GAAP quarter the This total market reported of a prices I’ll $X.XX increase revenues, in for XXXX on revenues. X. Slide as a driving $X.XX demand our unfavorable territory We Turning $X.XX to XXXX, trading due third We of our experienced substantially one-time the of we impact balance due regional XXXX. warmer in energy Offsetting is total the $X.XX increased warmer after for lower per losses. XXXX, this trading compared impact strong energy cost. a losses. well of We was of as to the a service the Non-GAAP higher per $X.XX cover with financial quarter growth negative capacity, of add primarily experience economy the the power due with in quarter weather. will back $X.XX of GAAP removing X. share performance to loss the of quarter of the Beginning per

customer As begin We in pursuant after a adjustment mechanism. threshold pending have deferral result, are regulatory deferred our represents we rate the to anticipate this cost the power that million XXXX cost forecast begin threshold. to to case sharing above $XX which the variance process XX% be quarter, above the $XX we will of the concludes. related million, to Through

summer were not prices. this impacted gas costs natural power by Our rising materially

gas significant decrease foot EPS attributed be Half cost facility balance can as was trading year-over-year and in a billion to to positioned Our draw increase price prior from attributed we from portfolio incentive X.X bit of There the in is including and we remaining XXXX, energy from to at fluctuation gas that North increase to of were and to have The and $X.XX administrative was improvements long needed. deferral $X.XX an cubic the programs, Mist the that on employee to associated and losses expenses. expense. from for to with other was outside $X.XX COVID-XX EPS expenses well of wildfire expenses, to benefit of during vegetation can bad following support debt in approval focused second quarter, the our $X.XX work including as operating $X.XX for is of storm unique the the $X.XX that $X.XX $X.XX restoration fixed of period $X.XX delayed experience, decrease on adjustments mitigation, miscellaneous expenses. following the items restoration other our including management, expense additional deferral. we to administrative service the enhanced costs a There miscellaneous $X.XX customer services $X.XX storage

this X% improving up we consistent planned the since higher and have digital capabilities our wildfire growing that the to O&M program year-over-year testament compared as and program. fact cost workforce, a management quarter inflation, our we efficiency customer to reduced use effectiveness well increased greatly our efficiency have technology. XXXX, built experience by increased a XX% is as with a into only stood demonstrates The was large increasing year-over-year, O&M and while XXXX. of basis outages of Managing the the resiliency, While on QX our prevention when vegetation wildfire annually

following $X.XX timing the and decrease depreciation in Finally, unfavorable retirements items; miscellaneous from difference due $X.XX of EPS $X.XX there due to to $X.XX of XXXX, lower retirements, and tax expense amortization other a from to higher from benefit plant asset was the items.

Turning on of X. month, capital general case. with cost in reached we an Last our rate Slide XXXX stakeholders agreement to

and constructive outcome a unsettled supports as forward see case. issues debt, of capital discussing parties Our this XX% a agreement and XX% a X.X% remaining equity, structure in ROE. look We with allowed the to

this several interest made shared customers. power entity will our – to our filings, to decarbonization our we advance month, this benchmark in the plans reducing for discussed to earlier We resources saw RFP regulatory which support plans an strategy bids, see earlier for we we shared affiliated in targets serve you call. to bid As the greenhouse in the which we our RFP meet we filed still in Maria process. support our interest. To into that help plan emissions

address structural to the by our intended consequences interest to its would greater utilities The disadvantages benefit portfolio. is certain generation unintended proposal requirements. decarbonizes as due PGE normalization to provide customers of encountered a affiliate tax price tax Our

concentrated is assuming in this X, quarter. updated with our need XXXX million that investments. equity increased We to over XXXX. affirms renewable meet the our settlement XXXX capital With This to RFP. issue expenditure forecast by significant requirements, Slide primarily approval addition our is capital recent to there stemming shows which forecast our by a this and in is unless capital increase associated from grid-based OPC, $XXX through aforementioned the in not the GRC, will we Turning

behind liquidity is solid actions of ratings, as our just fabric in balance that we strong and a investment woven company including Total grade we over We and our continue are accompanied the $X financing by at million At organization, outlook. maintain a through $XXX PGE into stable to including a an stand credit as available sustainability plans. is who liquidity billion. sheet,

we our revolving quarter, and $XXX to This credit include increased sustainability facility renewed linked metrics. by million performance

renewable for six was nearly The financing energy cost Wheatridge We was a under it bond demand green as the also in alignment oversubscribed. our low debt with green with this times framework. facility evident refinanced

Our to to keen are purchase investments. linked debt sustainable investors

tie our our investments. our Going forward, we will Not capital to seek opportunities are toward out sustainability through also debt business, actions they’re good only these good long-term but society. for strategy for

Slide to Turning X.

growth $X.XX to year. and and we remains year-to-date beyond XXXX of remain achieve and long-term of range long-term equitable Our for value strong base X% guidance for X% ready and remains customers for growth execute on way the affordable, reaffirm clean, to financial to XXXX paves we’re track clear, The picture demand and questions. us performance And in deliver our targets from earnings on alike. XXXX $X.XX for and to the investors safe, reliable track energy cost for now guidance on our operator,

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

Your question please.

first question My more in is you. financial nature. Thank

us fourth quarter the Just guidance generally quarter XXXX as help a the piece range to at Jim, the relative to quarter moving seems some that there? Can the gets earnings, and us imply or or together I fourth of XXXX guess, year, year results. pretty think just for fourth if you you you year-to-date look parts healthy we about reiterating rate the results last mix

Insoo. Thanks, Yes.

I are And date to fourth of the trying the walk result question, you’re to your might where effect do what to As in guidance. XXXX in effect understood the we quarter. we from in

So I me try let right? to – get that do

That’s Yes. correct.

perfect. Okay,

Okay.

quarter may Sullivan But recall. share. hydro So the asset XXX also let’s facility, was a we that look earnings a fact. fourth retirement $X.XX in of to for back that’s There share, a obligation were per over facility XXXX. old, our years $X.XX well you recorded And the

incentives were adjusted earnings that fourth We quarter for also the speed as in picking fourth non-GAAP up quarter.

the of and happened what the quarter $X.XX year, about again and walked had gets to normalize which at adjustment gets XXXX, XXXX ARO of way the reality, to fact about reoccur fourth the the the $X.XX in quarter in the we that between in to added about range. fourth to $X.XX. if the the quarter So midpoint, incentive you to of I fourth were that And look I present help? you that was Does to this

Okay.

this. component the ARO So of pretty big is a

would Yes. to date incentive $X.XX $X.XX, fourth – share. normalize the year is of for at The we’re share, to you ARO quarter would you a add as XXXX that right. a $X.XX adjustments And $X.XX to $X.XX, $X.XX know presently,

helps. That for Thank that. definitely Okay. you

Second question Maria, picture. broader just

does is on the Portland’s a State question When it’s and the think component I the about there pending think Oregon’s of and acting the in advocating of And package no out for big energy we leader extensions proposing that a that. clean that and potential investment how been transformation. over in that reconciliation mechanisms impacting of tax those credits and terms some of how opportunities, maybe – come guys? changes do to incremental energy or clean about you how the will creating about for think work, that that you years even next different five

Sure.

it’s the the yesterday also – important to First by you are we’ve in investments of that clean us was discussed we The Wyden and were on as others us, particular significant is of yesterday were great worked very structure energy transmission And particularly tax included reflected bill economy. in question. for a are pleased know, and us credits. see working, normalization to President. with and transition help we tax announcements the tax to the tech to all, credits important what storage. very a with in That’s for neutral normalization. Senator still Those focused on And will

to transition. And standpoint move that components customers take we the continue level cost talked get for to lowest place? this so make important customers can the that filing and from so will forward those Jim about we not around that playing battery a of field goals as for The very ours. remain give with utility us important others, storage Should affiliate our

Understood. me. you. for That’s it Thank

you. Thank

you. Thank

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

please. question, Your

Good Julien. morning,

you But the Dawn know clarifications. team. she’s to I rate well, the don’t real Thank to on congrats and done jump you, Good there. could on Thank bringing case I two quick here, just well quickly If as operator. just more if here. into morning talent

XX-XX to you any clarify, So a to frame settlement then obviously could change process first if ROE, And capital far here? as concerned authorized, how related settle given as you does on items the following just therein. in outstanding that, structure dynamics off, the and that equity other just and the you’re potential cap structure the earlier

I’ll – morning. Jim. I’ll it’s kick Julien, Good off.

does. last XXXX go first, it equity. So it yes, question gives the any to that into without could take issuance of me we And your confidence

standpoint, from in, from we received year next in cost $XXX We’re balance I’ll in million. to may very moment And want good of spoke sheet this a add shape that fund earlier our and moment. $XXX a capital to Maria and comments But able changed program to ago. financing that that We a increased go further I just million even of week.

would those. of part the normal is evaluating a this process. I We’re say that

deferred Just that year a want of we to on community in earlier this filing remind impacts consideration COVID. everyone bit the here

we pretty So We about interest I a of AUT that X.X%. – terms of respected time itself. modest We everybody’s capital last was rates put we frankly case. capital we added feel between million think timing. were It’s largely the in a filed. in were forward $XXX X% of the proposal,

We kept, the company know would ago, of a a O&M our you tight history over remarks in that pretty has of time. as have settling. mentioned And the as I moment period

all. about are it’s to Maria, get where exchange that and add? to outcome, get anything to a will information too we but to predict hopefully process we soon into anything So at

he we on pandemic result made confident No. have those General I gotten particularly done. from that also want of that of do were would efficiencies particularly colleagues the able our about our at In of as impacted entire company. we use work Jim’s say, the all economy been driving that our and digital because most rate better tremendous across I decisions of have efficiencies by emphasize the remarks, technology, Portland the case prepare to the case. talked rate here our to around filing as we have and we’ve delayed that

outages significantly As are a matter XX%. over planned of fact our down

better to assets, cases. done O&M for encouraged of XX no question better compliance the years, that keep that the we in we also our importantly but we getting of are outcomes driving I’m management reliability of delay this past. to months really have in the all and seen allowed have the utilization able really only downs work Capital than And important work We our flexibility last on ups have more And there’s flow. X% to rate through annually. And area. to more two costs, increasing on on and the efficiency us has focus capital. customers We’ve brought were at

Jim are mentioned, and people As protection. digital quite we a we as areas. really then on high have moving vegetation and And expansion focused wildfire to in Oregon tech know, you our management, have bit

have at are so new as economy prices our of that’s expanded the that some on our of a going we of substations. because number people And Portland work built today. of as keep it’s low all particularly in And of been to light able we’ve in good We’ve of General our really other infrastructure. we

Got here pivot can to real just the quickly. I dynamic, affiliate it. if Excellent. And just

You this that winning? focus tax has and been there. given it used you’re pivot in bit this normalization understand brought the might And opportunity that this here up, Can as Or just then I now that this to on you why little seems haven’t opportunity? somewhat the maybe abatement now how confidence a strategic speak your to to you novel. out there of level past? more pivoting expand obviously that

Sure.

Wyden are We’ve on discussions, So it is talking and about seen time is first we is filing focused tax Senator those a the not long much of and debating affiliate hopeful political in normalization this for you’ve issues – not This been new. whatnot the quoted very and all, as it. and in remain play. industry resolving

more increasing So so lowest our will to It similar reliable customers affiliate many cost customers costs that that’s that to of to to ever And tax across allow customers renewables. as you for it’s amounts renewable we transition filings us new see – competition. very utilize to really very allow to reduce other have energy the country. the for advantages can from

as well that is We have important XXXX and many – And we toolbox. have aggressive this very goals. we XXXX think tool in others an as

Julien, in years, question and now I the those credits, us. the the hear producers compared asset independent to tax And of accelerate them disadvantages XX have life you say. addition why and structural power we to over to way why can let’s the asking normalize the

win enter active into very field to couple about and thousand do need that be of of the we level tools to pivot megawatts between a owner why to to renewables. mix. We into now a we of and benchmark we and want tools expect plan and in We’re doing and and a in that’s don’t have significant expect the that. and to want those be now that. the And framework to the end the I And really to playing we’re but need do very assets, We we decade. everything, extremely – competitive to need growth an the be that.

Excellent. enough. you. leave Fair guys. it there, will Thank I

Sure.

you, Thank Julien.

you. Thank

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

Your question, please.

guys. good morning Hey,

Good morning.

first – out you expect that. the And curious along then power have this the magnitude on sizeable Just to time And the just backdrop first breach with the other have is kind just several this of I outstanding that with how variable deferral seems are pending case. play million that to expect exactly? that of because of then kind of unprecedented. think question just you Obviously The deferrals I $XX you just particularly fairly is costs. kind rate the of the question

any are mitigate here creative impacts potential there kind bill of So forward? ways going for customers to

nature of here summertime. with think weather markets agree the look right as we that and about so levels observations. I My Dave, over the experienced here, and I your fairly time is I the back short, you’re the but would the

it. is as can and that there that itself the are objectively is and recorded at deferrals at under we I look believe formulaic. our highly the There calculated I be deferral have level mechanism – deferrals. So one are mechanism This

And I it couple GRC work, very would but so we over I way amortize that would deferral remarks after as is that would is this in discussion mentioned this period say, subject verifiable. straightforward, typically it the have believe adjudicate year starting typically, very the at that I of to we with And OPUC the moment. pending the we particular a

other as could So to nearly which substantial calculate, the you $XXX in that’s are the very one. again to they’re million subject together. debt. the that of deferrals, And being the is I think pretty straightforward all, There’s you debt, a which the But And all deferrals deferral, one then around cost. around complex they’re nature. COVID is they’re which refer more different calculation February biggest bad And storm wildfires of last the XXXX. the

And So least state, of and in at described yet. both we a securitization don’t I in size not fully these complexity. this I I have terms ascending capability since expect think

We probably maybe amortization deferrals I schedule. down the longer those time, from a deferrals, will an a as sit shorter on latter I to so years, And they that of have described of many mentioned agree and over period probably to years. go number will

that’s I how that’s how it forward. think Dave. about And So I going would look at it,

to a Dave, couple me add let that. things

power period gone destructive customers wildfires. have of wild out and of once had year outages. customer more we pandemic, – our had distinct extraordinary had had than over of a through XXX,XXX in half ice obviously We We the very were where storm time. an the We XX we

we of unusual that of think able something Most would that It’s securitization I point well explore important and is an very take had also parties. very use time. has as and low the will really utilities been advantage debt to We we’re dome because cost structure rates. high heat a events with it’s

something pursue. certainly And will we so will that that be

PCAM forward one look the around is I recovery. think we costs important cost of link in power as chain just power really that it’s really the going

kind of think as five step or this I of four a process.

in we is And be that’s some to volatility late one particularly those earlier of variability more our And parties with important assumptions of modeling changes for and modeling. with last to reflected discussions OPUC methodologies. – year, forecasting and this our made changes year, and the allow first our The wind. hydro the with

our would we year. that second each AUT or filing The be cost power do

and as third, be an the job they operation year, are prices working they’re have then at really this reliability up our comes very plants And the fourth go And market strategy closely. plant then to whether This freezing We extraordinary our excellent able heat the area that days we high procurement our year. and power for into PCAM that. chew our storms for making and terms would through And as experienced have done the my of de-risking volatility provides in power I’d temperatures operations say, the be utmost in a on events. challenging we’ve most sure backstop regulatory or and those ice finally, of summer. and prompt

really are think these times. I So unusual

As we look into can AUT. you the around in forward XXXX and been – we’ve discussions with parties

about is increase directly But we’ll roughly the numbers we forward. million that half forecasting of to load. higher as – those related $XX move be to down about We’re locking we’re

Oregon. the the And the to service sure more territory well are making about half related we’re are also moving our in with we that’s that we other people have portfolio the we’re into seeing growth seeing industrial into expansion so be with year prices as reflected. customer reserves a as And adequate either that still pleased de-risking just that couldn’t And and variance. higher with good then sector, the commercial and going capacity into as then

is meaning that that for our One experiencing natural strategy and gas, which decade place prices. in to the of customers really been pleased is, volatility regards a really I’m our almost has not with of things are hedging the natural gas

insulate And practices line difference customers. space. to to every to volatility our a markets And across we’re the make so of bottom see the seeing send these bill out some we’re from nice them energy that it’s in when able we to

Great. that No. detail. Thank you for

the case. and then changes And a to understanding a in obviously you I on accrual week Second saw some history. there’s guys’ of think that proposed your But delta had maybe big question still We this settlement? those could is saw comment testimony inconsistent versus what decoupling? earlier storm just of rate just which you around I back the think staff’s with ask, chances just good and on approved getting there, you chance don’t

start, and may to to want add Maria I’ll it. Dave, Yes.

dockets. You’re mean, the to inconsistent of a these I cases happen I this. should our separated like of separate These that you know, be something try will due don’t view will But you separate that in the and And right. in I things to always with are the case. comment, the forward a tell And the deferrals we and on appreciate that deal set separate We prospects therefore either. as from get that’s but they’ll to to your go be We GRC desire the settlement settlement, things we course. with pursue I we all And not overreact detail. it’s up the should do are here. kinds in in track. here way its are on tracks to that’s think history. deferrals

understand brought Yes. the a create work go be that reliable of I work utility the we I we everyone think and have XX resilient past don’t nature with anything that the address magnitude to And done issues We’ll parties. to collaboratively as months help us think the to add. has to forward. I more have and mother transparent. year good We’ll

right. you, Thank All guys.

Thank you.

Thank you.

you. Thank

the Guggenheim Partners. comes Our next from Pourreza Shah from question line of

question Your please.

good guys. morning Hey,

morning, Good Shah.

higher a just Maybe starting level. at

about the about think X% I in needs it that this understand current XXXX. as laid you should opportunity your and talked past, won’t highlighted pushing you But the necessarily context of prepared utility range. higher obviously maybe owned in Maria, we sort to the in RFP growth. guided all X% energy obviously In be And substantial how remarks. through the out of we’ve guys some pretty You capacity

to enough the need be size So to of the with even overall maybe get higher. guiding you consider

Shah, it’s Jim. Good morning.

will you I fortunate facilities tell next for this the we So that including, our in and for to range is here guidance setup any win may be not compete round. generation enough

on expectations march of or a given would successive IRPs couple this here. we’ve We’ve more upped and to I two our we’re expectations, the fact, resources. In for maybe up three our in recently calls and been encouraged that anticipate decade,

Oregon as here of the interest to also, plant, practicable just X%. Colstrip And clear, to we’re it would in X% make let’s right. the backing So forget, our not as that ownership be none in And that’s accelerate soon this to, we depreciation out approved by have case. settlement finally XXXX. context accelerated the rate PUC it the we of agreed a But needs be there have at to still been in to depreciation

of we’re ownership, guidance making the and laid purchase the the system, is to need significant build a capital perhaps out in terms we’ve assets. nor strong that really including program. to we that’s those capital pivot But So in of not operate to would any the that ownership a

it. Got

I brings – So just guess, just maybe the follow-up.

or the it So is you process, is be current actually in accretive? supportive how of runway guide the could extending as that

If through those additional any I understand Jim additional to our as be ownership your the question X% least mentioned, opportunities projects correctly, IRP growth. be X% any costly risk should – to the would accretive

day, at we’ll end the sure. And expect, for of Yes, appropriately, Sure. the will but those capitalize accretive. be you can we that Shah

Okay.

you you much do associated recovery? be equity? When would you associate the very Okay. thank back just the process, go were the would for successful. would looking In eligible for then automatically you Or you to And in rider of RFP front on have event right. And to GRC? be – an that. for That’s

renewable renewable So that we track allows do to have energy. in mechanism a adjustment us

mechanism it’s used ridge favorable energy we’ve as So numerous occasion the that’s that very recently facility. with on most a and

summer. we would early XXXX Construction into probably would wouldn’t periods take And and place year that know I’ll construction later – about XXXX. place the add the design until and take Shah award that spring and

that such a into financing, to happen would the go the immediately much into way ownership any without position financing leg we could in of liquidity certainly and market that timeframe, for financing. have needing terrific we So in equity

Okay, That’s perfect. I you had. all questions very Appreciate the much. it. Thank

Sure.

Thank you.

you. Thank

comes the Bourdon question next of to Mizuho. Our from Peter line

Your question, please.

for thanks taking my question. Hi,

this color the normal you. Just the quarter? cost to power gives you comfort saw I secondly, then things. that there more Is follow new Thank can side the forward. what of drove on up you what And that guess, going is not, volatility on volatility you any that give

the Sure. scorch over really that Well, the recognize it’s place, the as we and we heat important that the look rest I of high in the trees at you think west had. events even maybe all country,

able were – events, we forecast not future. out created so the And to but into that those far too

in of aligned I power and as less markets real well. that quite a would they the bit run quite We to. in before up ahead generation that highest frequently hydro we would time. that market region the day and the hydro would prices exposed wind fall of created real bit – some also have throughout power is particularly and had then off a during prices with were we actually And saw would the say volatility those in west

integrated. trading across really we that’s As how are integration we’ve manage whether through I say through And of markets more energy or across are the with Pool, the expansion at west, we liquidity additional at we where think how pooling day people and reliability and ahead the would power that working forward. leaders at the really whether resources EIM seen expand through the CAISO looking as going west, we’re is about discussions of Northwest entire and whether the that’s looking Power other forums

We’re costs have update year our annual update mechanism. through to through power fortunate these, to the the every ability walk and I

reflect of year-to-year future to the were we reality So able power and market costs into these our learnings the conditions.

the we’ve you having significant across on. know, have reduced number and As impact of plants that’s a west an thermal

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you. Thank Okay.

you. Thank

line the Miller Our comes of from next from Morningstar. Travis question

please. question Your

Good morning. you. Thank

or increase XXXX last the months that during that you the you led my three to I CapEx raise increase. to about questions that lot led little of factor a types quarter, projects or go to Can two, you appreciate to answered you that factors that. so? You a bit number was what $XXX what and talk the million want back I more the of

build the on prior little Travis, a me around question to bit, reliability in let So the answer I markets. just gave

our really use absorber system. was XX% markets of that's important the things, to of I And shock essentially in toolbox. able of being that tool One prepared sort my capacity in it the of mentioned a the also is and distribution remarks in

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We have the country. one conservation the energy robust in had programs of most

in areas. lead we fact, In those

smart, to as of to needs a this that grid important. of we infrastructure important all combined of Jim a talk integrate not impact important renewables with and volatility really support the please reflect need little markets moving that so reliability. and It's let overall more reduce the more buckets a together quickly to specific realities just but pricing. I'll flexible and And have, capital the It's and bit we try of the the to know is about you to future. our greater new for sustainability carbon-free we're that

matter. as we Hey, that. of it as Largely, think that think CapEx temporal. Travis, long-term I'll is don't short-term, a something of add the In we

higher looking CapEx XXX. at at reference the just So to XXXX, versus the the XXX

and side, in a everyone or work generation have that And more manage massive there. of we you is about part maintenance integrated about activities, then was facilities of That's $XXX-plus New that center, some in great So the Maria that customer got million XXXX. bit imagine, making, of deal some service from finishing chunk the fact, little there into amounts to We're We've just the A adding prove grid investing the other digitization, related Year that investment. point which our flow technology. we're as CapEx improved would data into work really we're as largely over that's of a how up. XX% $XX on operations we're that's million out would collecting. that carries

our systems older, replaced, and be operating are to systems, you. administrative what systems, Some need have of

then work. to years, XXXX and – anything again, grid it's we as the may you So to does XXXX look in exclude those largely out XXXX, that related build, the as generation

just You to it's could $XX topics continuing the really see mentioned. investments the Maria $XXX in million, all million of the that close but technology then

really any is generation, and So than resiliency, about it's not grid other here. included which

Okay, helpful. great. That's

a relative lot about fossil obviously talked question, XXX% even typically a about to source capacity level carbon We higher of of type about world the needs clean think do capacity in as days? you've you world energy one fuel or think reduction capacity these needs. energy Now, How XX% resource.

the the at to the out region. about generation So in overall makes where we of blessed start Northwest XX% up generation Pacific be hydro XX%,

cost. competitive think addition that And of it's natural from So that have much we acknowledge low a to is I advantage important that standpoint. in

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excited to So I to under don't it's And and want this the And uses answers to this these an that to estimate year. as exciting or have challenging reliable are going electricity. next be energy all we're challenge learning sources sound growing in supports we're with be every ever through be around of increasing future. problems, leading is if clean it the really of decade the time. going capacity we If of

a in up of going Yes, that being by and we're the that near-term, how wind just that interested to talking for, megawatts as to auction. about XXXX I'm launching non-emitting here the Travis, cost in XXX this about of saying RFP technology a I'll size. it here of in in called capacity up purchase show battery right system but very pretty see can't for prejudge the terms that's now, big be curves I

that batteries, show we'll it So is see and up from we of have sense and the where will be may but be course, important. pricing will market that very only they goes the not

you Thank very very much. indeed. helpful. Appreciate it. Yes, That's

Thank you.

you. Thank

from HITE line comes the question of next Our Hedge. Andrew from Levi

please. question Your

guys. Hey How you? are

Good morning. He

of Couple questions.

looked pay, First see familiar on that, in kind of correct? and I that that kind you direct what's in going at with guys are is of congress on

Yes.

Okay.

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you absolutely right. question you're for the So all, Andy, first thank and of

equity, direct pay, in that grant our it a for ability all some projects mentioned, we grants tools whether we through from of targeting Energy, received as deploy whether the be tax PTCs, system, ITCs, be of to income Department have, it distribution areas. low Our I

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lessened are get the lack or And requirements, all that to flow, hope the I just honest. the we cash benefits, be the So benefits. cash equity

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should that theoretically by base shrink, rate your grows that as significant especially CapEx lag it? in end adding capacity So shouldn't you definition, up if lag,

ways And a another our Yes, from right. of why number that including sort growth the we're lag, benefit of absolutely yet benefiting reason in growth should us territory in that right.

we accounting accounting we than OPUC would our As differently over percent the punch standpoint, you an on know, mean, calculates an turns I equity nine standpoint. from

terms think ROE, relatively allowed do in the here. short-term they take debt we well, course, the investors of out with of I So

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one question. And it. Got last

the So beginning. as kind benefits to back of circling

by help own for you PCAM the risk your the capacity and me, and just curious or me So as kind to payer – it's you whether obviously as volatility, matters that both over that for weather, get far the year if XXXX eliminating for rate whether for on I'm just jumping excuse And the adding is but as this get contract I'm ahead. I will XXXX, of older. time shareholder especially you extreme strategy just on so it or every

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the of we've taken those days ensuring most first sort things we the strategies with we operations have the are procured an above all actions of is forward. we right starts we of that what really and during And how I and all, and and we seeing so that those increased on. Yes. the of set next call The take power move it of integrate and they run area facilities our year. are that we generation and ensuring our how Well, volatility right across generation of clearly XXX% reserve all capacity for reliable the as margins facilities challenging amount

sure less, the thermal and on modeling are off. modeling with turned quite resources our to market parties We can the commission reality and just reflecting of make also be adjusted having current frankly, worked and that have that techniques is

renewables look are system. out, we those into as so And important our distribution better really farther things integration of

our And help important our And source resources to that helpful able we this the able the transformer west that and areas working a XXXX integration circuit during distributed with we move particularly so our utilities generation. of to and accelerated as at will XXXX head working heat essentially be XXXX, in through then really finally, have dome as some reliability. And was across and were And And all of that's resource others at we outages ensure time. in all working finally, plan. really found breaker to system, the forward. we're system and use a assessing we're well on that around day now move around high the to way mechanisms distribution and measure where further of starting that as event, other on other the and manage down reliability looking us and markets, then to RTOs distributed

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Thank you.

Our Russo line question the Brian from comes from Sidoti. next

please. question, Your

you When that net normal variable you set Yes. Hi, you the AUT and setting the power or and NOAA costs, do when AUT assume is actual when just utilize set? the the which curious forecasts? hydro condition, in date is do

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opportunity in your Understood. infrastructure. addition Is And quickly EV then sizeable supply real or – building owning a owning more on investment to just portfolio? that for

Sure.

legislative within make is systems, that's on lines all, enabling substations, great the first the adoption, whether books electric supportive infrastructure decisions transformers, it is in our So from got needed of to a it of we've vehicle whether utility, pace ready. standpoint, accelerate infrastructure

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a residential vehicle each see essentially customer. to We electric new equivalent

much. very you Thank great. Okay,

you. Thank

Glenrock final Our today from comes Patterson question Associates. Paul of for the from line

Your please. question,

guys you Hey, how doing.

Paul, Good, been? how you

talked while Jim. you, been since It's to a Right. I've

think there to and highlight maybe can they're of of environmental the trade testimony, staff if that's wondering, And about so focus. And where disconnect of seem concerned just an little you just that off be sort and At so have focus surprised, been least could cetera. because costs, which somewhat explain is seems And right answered, just your or is sort know your questions you from, at much least my listen, coming opposite impression. concerned just you et be communications they really this of between in that if I this that you I'm a might or explain about to sort a comments on customer upfront, they the you issue or think, appreciate do you I that. are Maria, if the what guys was can, I some my

works us made, of day pandemic. at I'm we believe technology that future to hold the general We, carbon-free. driving a comments really So are the would the customer of that able it on deliver look of do. increases ice system, first I and first be a during the proud affordable, as the collaboratively proud right in really where better off our whatnot that to terms they're efficiency really proposed, the putting on like were and everything at as price digital to prices to been energy all and together. or think or you made. we our customer company we have who overall we in the out modest at I we quite that worst staff's and storms be heat has the They're our increased seeing we it's to we of investing in whether our in of case I across proposed high And were is don't the able we're as to case. everyone of regulated. all, able And weather have the customers that have hats General at the we've low rate Jim that stab And on coming going day we that reiterate to the work volatility, reliable I'm investments it's from. at take Portland solutions come the regulators, And if got increasing off days that reliability. to rate keep use pressure to able

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Okay. Thanks great so much. Have a I appreciate it. one. Take care.

Thank you.

care. Take Paul. Thanks

you for… very Thank much

the program program. Pope And to the this any Maria for like to I'd today's does hand back remarks. further session question-and-answer conclude of

for Great. just we you hope in Conference we at in interest joining appreciate weeks Thank future. will your a of the Portland in us Thank today. those for see days, of the all that you connect we you. XX And couple and to EEI or Financial us General, with

for This the participation in does today's conference. gentlemen, and ladies your you, conclude program. Thank

now may Good disconnect. You day.