Portland General Electric (POR) 18 Feb 222021 Q4 Earnings call transcript

00:09 Good morning, everyone and welcome to Portland General Electric Company’s Fourth Quarter 2021 Earnings Results Conference Call. Today is Thursday, February 17, 2022. 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] 00:45 For opening remarks, I'd now turn the conference call over to Portland General Electric’s Senior Director of Investor Relations, Treasurer and Risk Management, Jardon Jaramillo. sir. ahead, go Please

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

Before actual we supplement begin The investors.portlandgeneral.com. you we'll that this referencing slides morning, I'd have be our a like are materially to Referring prepared available forward-looking of inherent presentation website the to We our you caution some and statements. statements risks throughout this involve our on which differ remarks XX:XX we our discussion call. X, results uncertainties expectations. and that from Slide to constitute morning at may remind 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 Leading Maria earnings which the actual Treasurer. are factors our our discussion refer and President CFO on to on some XX:XX CEO, reports results and President our cause periodic Finance,

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

thank ongoing morning, ice and year and resiliency. you, hardening grid of to record reliability against Turning We technologies growth improve and of all for thank and and historic XX:XX joining was us strong Good XX:XX Slide execution, backdrop focused on the a pandemic, you the today. the XXXX Jardon heat. X. storm and new to

per of for net we $XXX XXXX, income For or of $X.XX reported year compares million year XXXX. the share. share the with $X.XX full $XXX million or full per This

Net is cost of particularly expenses and and third for power regional major and fourth This costs XX:XX and compares particularly the also of management Our reflecting several X:XX million $XX $X.XX volatility, quarter reflecting growth. the large For share. in of were the digital employee variable XXXX. higher, overall higher with inflation wildfire storms administrative per storm per income over quarter. XXXX. benefit the vegetation wages due expenses or fourth were was net increased and driving revenue pressures to tech outside and market growing performance $X.XX quarter, $XX Operating deferral. higher, power expenses the improved sectors Finally, the million share or region

reflect Given improvements; our better third, volatility efficiency high-tech our regions' attractive mechanism; rate fourth, the first, XX:XX growth forward digital focus to plants through the Operating tariff steps as inflationary additional procurement environment challenges important. expect also forward strong. will annual and and as likely update in-migration, well exposure: remain our wind we other taken to continue. Power We've and companies updates very be expectations XX:XX for forecasting and will increasingly reflected ongoing we pressures new to address capacity. reduce methodologies rising market is several customer pricing second, as case; operating that and and finally of through

XX:XX I All detail our into to regulatory earnings Later our an a XXXX and standpoint. from couple XXXX that call, on to of would of share. $X.XX significant talk per go legislative like this both results of outlook. combines inform will Jim to $X.XX the much XXXX guidance were in operational and more now highlights to

grid and simplified supply system with of decision in non-emitting allow increasing customer and renewable done energy our to these experiences. And network Through drive megawatts Oregon's were Second, us National Panel Together, First, to more the shortlist first energy megawatts in Renewable program greater digital with our and we final tools, advances clean bids intelligent enables crews reduced and Energy emissions we're carbon for the an Third, the distribution chain the for a Working by Operation utility coalition XXX zero with XX:XX launching goals the costs January get consecutive and new smart achieving of was IPCC’s the on of of was for Changes upgrading PGE up under Initial investments our foundation integration targets broad We and operations advanced reduction committing by and our energy across Sixth Climate our XXth Report. voluntary by resources, XXX renewable establish by the of work number performance. catalyzed RFP Integrated Fourth, year. and to are of amounts were XX:XX energy were end that one in opening systems, with of call U.S. increase analytics the goal improve and quarter performance milestones. International of to center path uncertain management country aligned year, the the key the XXXX. pledge, digital to operational by and be conditions. capacity. work flexibility new climate deliver issued enterprise to legislation. signed weather in field was a Laboratory. April or system the energy net stakeholders, we decarbonization also that aggressive initiated advanced ranked XX:XX the the exceptional distributed further established a across and in capabilities submitted These to the company our resiliency. the second system passage consistent increasing to reliability energy, expected renewable advanced efficiency. equipping and data our center extreme even technologies, the

Also, to capital customer our modernizing long-standing members. subject all benefits finally, customers guiding our and average questions plan to year, first and grid General as distributed part you bids to of on focused diversity XX:XX revenue energy And we to ago community we base, ratios stages Fifth than issued the commitment and will we've system in early Rate resources While distributed NDAs. XX an customers many ongoing increases annual and XXXX accelerate that's established all equity relaunched lots we reached rate our subject have inaugural in approval grid behaviors, with OPC and stakeholders, on inclusion. evaluation recently collaboration very the bids, Case, of in the this maximize agreement are are our of more of our corresponding years final resolve requirement, and prices. and for

hours $X.X Black on our to year, Foundation people and the We of as of also representation community indigenous well and employees, completed color, communities. continuing in stewardship support company. are PGE retirees We're over and our focus to XX:XX increasing as million the and company donated service, across during our women long-standing leadership our employees PG XX,XXX of past environmental

load in across mitigate XXXX, with well to a challenges economic ongoing now X.X%, improvements improved X:XX future resiliency of you. As clean X.X% performance energy we and longer-term to efficiencies, increasing and X% look operating address to turn pressures. region. growth focus call Overall, the prepared Thank other on continued cost XX:XX we're and which and future, we inflationary help operational climate reliability anticipate change transform I'll and could technologies, lead growth approximately as the we with rapidly urgent our to Jim. over digital

and XX:XX good everyone. morning, Thank you, Maria

I'll X. GAAP driving a are share on in trading in Slide to this rate Based weather cover in XX:XX from $X.XX Retirement across from per prices, increased continued from increased long-term economic X.X% performance the due inflationary Non-GAAP particularly favorable was growth and challenging negative contributed capacity. X% all challenges COVID-XX adoption, the growth $X.XX growth. $X.XX the X.X% quarter residential fourth Commercial load power is experienced the sector due we In in Beginning the decarbonization. The year XX:XX service X% a to EPS financial GAAP our service weather resources share the as We from to $X.XX adjusted, for which X.X% strong from activity of recovery transportation $X.XX guidance due continued XXXX we increase the impact ongoing the Including energy X% customer sector. GAAP growth of XXXX classes, recent experienced to which reflects demand to liability including $X.XX to of weather increase year-over-year activity load territory revenues, economy on was was XX:XX losses. in adjusted, per Industrial the of Obligation $X.XX, downturn reflected add with and XXXX, EPS increasing we all year-over-year weather growth for adjusted. as share back to our total per quarterly primarily we initial X, strong EPS growth economic net industrial with non-utility XXXX, raising XXXX experienced our distributed weather service economic of to weather load expansion per Asset digital to to in industrial pressures. higher higher in in decreased customers, $X.XX an adjusted site regional summer XXXX. and due unfavorable navigating a in losses. Offsetting experienced territory, attract a for growth our continues power results, residential after our power and also cost. development full to of of energy our growth of of high-tech increased reflect to increased our the X.X%. primarily the due growth was growth trading trends electrification while for by XX:XX share a growth X.X% service demand Our XXXX We to and territory, in XX:XX balance XXXX energy demand, including impact XXXX. The warmer more favorable of in path weather. $X.XX markets overall territories Our driven new cost Customer XXXX. Slide opportunities with the and to the anticipated additional in the strong $X.XX point and saw XX:XX quarter EPS fourth centers. compared deliveries adjustment primarily results XXXX. to quarter growth, this significantly the income the rebounds Turning data in strong removing our and fourth XXXX.

A of to including continue of XXXX. deferred $X.XX to a higher $X.XX above XXXX was driven additional in XX:XX the losses. D&A due in from two decrease to cost $X.XX have decrease increases X, distribution wildfire to storms from higher costs PCAM $X.XX our improve in the through decreases service then and partially $X.XX management and XX% following insurance by to XX:XX partially our these and late increases our the million and of $X.XX higher resolve $X.XX an insurance General impact a of and a regulatory Assets year. impact due services for power will technology wildfire we Obligation XXXX $X.XX the which finally, agreement enhanced primarily from to a mitigation, to including of with incremental the Going tax from QX to XXXX. increase, management, of expense, expenses in $X.XX of to Case. local D&A, related incentive the increase expenses strengthen in XX:XX for plant and month, our $X.XX incentives, and $X.XX XXXX, chain administrative that to customer-facing $X.XX in by in from decrease including improved salary trading adjustments supply reached expenses, and systems. Turning adjustment Retirement revision due $X.XX was $X.XX $X.XX wage related anticipate of outside lower transmission retirements higher several $XX We premiums recognition the decrease risk the to There of in EPS then $X.XX restoration mechanism, in stakeholders XXXX. due process represents last and impact taxes, cost from with through Rate We begin $X.XX to expenses. XXXX vegetation management non-utility aspects other XXXX; an a programs, expenses, for There increase miscellaneous to significant property in due deferral Slide threshold. EPS increase benefit an a of flow variance associated of the were an there XXXX offset quarter plant this including was from under balances

we ROE, a the corresponding to capital customer XX-XX annual base allowed and prices. and addition increase agreed final In to rate structure revenue a agreed in requirement average upon previously X.X%

outcome fully agreed Our requirement annual final operation while The depreciation a mechanism. parties current in increase of decarbonizations, to is for decoupling our customer by on mechanism XX:XX Parties end that constructive We to depreciate it Colstrip plant our billion, behalf to increase of accelerate a relates agreed revenue decoupling an represents customers, to especially the the $XXX Oregon, modest framework existing agreed in policy rate to it. which of million in as so to misaligned eliminate $XX $X.X investments million or in supporting the prices. XXXX. interest of the base net power increase made of the cost X.X% XX%, also represents

we approval, While certain pleased with Maria forward outstanding RFP fundamental million by to final stakeholders, are policy and our which per expected outcome capital in remains process to all settlements plans forecast Turning a is elements resource resource invest to PUC emissions Slide our our to to for our subject XX:XX to call and an plans front, we shared and updated to XXXX We potential which the we gas final strategy serve customers. our in the remain to discussed in made $XXX clearly several the $XXX of On and for customers the our advance system. filings end million power we share the from order to XX:XX April. our more regulatory through the X, XXXX greenhouse look targets, earlier reducing the meet capital expect plans through in reflect to the year forecast working expenditure quarter XXXX. increased through shows in update we two.

For XXX, the of of with guidance we exceeded $XXX our expenditures target capital million. reference, in XXXX, total

settled system in to rate projects options. service ownership Over CapEx. that primarily modernization years, grid plan expect this of instant To investments to you related top and to. I roughly to but The electrification five expansion, recently billion the resiliency in referred is This new distribution growth on connects, the increase, next we about grid which increase point significant increase the invest new RFP include load, planned the XX:XX represent customers, explained billion clear and transportation be not primarily for in $X for Maria years, future in the substations the expenditures to want case. possible anticipates the plan $X.X do

through expected requirements settlement by there XX:XX The X, in submitted quarter is the process capacity resources. unless of significant energy this our more GRC, On we'll to be a winning share procedural process details January the final renewable to bids XX:XX targeted OPUC, a is With from RFP by and the Slide a we that selection the solid in approval equity will meet to need a XXXX. we With capital issue two the continue recent not subject for affirms to stemming addition and XXXX, RFP. the will end and bids to shortlist in RFP competitive the calendar. We in sheet. of move as maintain balance

half ratings see credit on credit debt to and including investment of operations second accompanied XX, As December stable and you issuance Slide companies available can strong the million investments liquidity, up XXXX, least one remain $XXX of in the with fund $XXX sector. Total we a grade at levered XX. We plan cash from outlook. million of by the of to XXXX. and liquidity in

to to Slide our tie we As to strategy out opportunities XX, we earnings per through XXXX, full-year $X.XX capital Turning continue $X.XX of framework green initiating guidance long-term to our our sustainability will seek share. in to XX:XX diluted apply investments. did are financing XXXX we debt

will drivers X% investment X% system confident growth resources. grow remains growth of industrial established we're a year efficiencies the XX:XX As that base a in with with to prove diluted will this to growth midpoint and load we X.X% potential opportunities annual reminder, that I'd through guidance $X.XX in rate renewable guidance range in few The our EPS from base. range strong and from represents operational walk XXXX. rate our drivers of per compounded like a expansion, XXXX $X.XX in-migration The key to long-term of share. this and our

X% address energy adjusted I our like in customer growth. with levels. load XXXX XX:XX included deliveries weather midpoint We XXXX expect decrease continued strategies. to a O&M to guidance represents XXXX to X% accelerate work retail significant our which X.X% digital O&M of would million, from strength $XXX and

XXXX in system service. accelerated implemented operations we new customer and vegetation to aspects our efforts sustainable expect efforts We to management efficiencies customer in In XXXX, many create automate beyond. our of these interface also

risk significant and X% will am of as I to to $X.XX in we confident leverage With adoption XXXX. to efficiencies year. recent a and recently off XXXX XX:XX declared continue grid investments implement forward and digital we increased our made per We dividend can distribution growth operations. long-term our mitigation accelerating strengthen XX:XX base in continue identify our Looking efficiencies to build Board we increase our continue investments are earnings we of share. deployment to guidance our and of XXXX. into XXXX, to operations. technologies and investments dividends, We We'll respect technology of grow reaffirming X% automation to to made awareness our by

Our completed the last dividend year five this With share. dividend our growth growing at we XXth annual XXXX years full rate. X.X% was dividend of per compounded year of consecutive $X.XX growth

plan a to compelling line and to also effects case value our our combination decarbonization long-term Maria. serving in we create compensation and issued shares We needs opportunities by and programs. share growth The open customers questions, to energy safe, execute invest investors clear XX:XX targets program under equitable financial strong of any trends, for to it buyback I'd electrification continue clean, our of significant before reliable limited XX:XX dilutive customers to delivering targets Now, hand back for to like affordable, the alike. for offset our

today I'd we'll in Officer you, Compliance Chief Chief Jim. Officer note Kaner, we to that and of mid-March. effective plans July announced and the early VP, our to Counsel XX:XX Compliance retire role that to Lisa like Thank General transition

Sempra all been Recently, years. At energy Lisa VP, pleased as trading with retirement. sets Lisa’s that leadership Espinosa, General of Vice in GE at grateful Officer PGE Prior of She Sempra Counsel legal SoCalGas, Angelica multiple had the in from integrity effective roles Acquisition, Chief Counsel well she as XX:XX was Risk Angelica gas Energy division. mid-March. last navigated President and Deputy Corporate of businesses. joined has in Congratulations. for and grateful Chief Lisa counsel Sempra instrumental where multiple wish Vice we the expertise, XXXX for served President oil experience about and are standards Counsel Angelica, are matter. and who International we wish General Gas the We positions leadership same we wise Lisa, XX:XX time, the that held PGE. for team and broad questions. has and ready to expertise we're associated her the we're and you've for XXXX insights, well resolving company. high in bring and litigation and Angelica. and And five as our Lisa you the of you done for the I'm challenges operator, Secretary announce joining for to excited all appointed And to now executive the including

of Thank Sachs. first Goldman comes Our you. Instructions] from XX:XX [Operator Kim Insoo question

Your line is open.

question you. Thank XX:XX My -- first

XX:XX Hi, Insoo.

XX:XX and it like and from range, question up the and we've something I -- I earned on at few the the think year basis rate that again finishing get Hey, My in talked percentage test think bigger, gets first ROE as nominal with of that plan, embedded? if whatnot lag currently structural then rate past. earnings always was future case about What But know that the that you that's smaller. guidance in been is plan base a the range. base a potentially kind next approved there's the Maria. for the I seems for should that X%-ish drag basis, least rate months. and it's are How the whether the you when guess capital in reverse-engineer you? about assume we 'XX,

that just level on thoughts forward. going how you're So about initial thinking

It's XX:XX Great. question. good thank you. Well, a

spot initial your are thoughts think I on.

our know, our you regulated ROE, we've capital As settled structure.

operational really noted, focused our as transformation. Jim we're efficiency well As as on

sector. numerator/denominator we and decrease. shrink just grow As we math our does It's rate encouraging base, utility lag base, up the will normal-course grow the is time. made our of in rate structural as the that over items But

reductions cost the We across focus but on company. in also lag entire continue our structural to area,

X.X% the up roughly that add XX:XX guidance, look the as midpoint Insoo, XXXX, roll at a for you could we math. consistent with towards ROE I'll that

The that a we insignificant I I'm is other comments thing, year. mentioned on a that where be management Maria's to I at this not we particular decrease X% And topic, would that would while remarks XXXX. came add of from that in my intend in expenses

of of O&M more normalize XXXX, I when to one-timers accelerated series in X% However, There decrease. in was spending XXXX. come I the a expenses a and

O&M it's to this roughly a contributes So an year, ROE improved X%, a $XX reduction in also outlook. million,

XX:XX Okay. longer-term that. growth That's good X% about rate question, second to your X%. And talked related Yeah. obviously, we've of And of color. to that kind definitely

top what potential If level that mechanism rate, the going base if proposed, or does do you options upside even is think how CapEx rate and about of you excluding agreement especially the on any cost the adopted benefit And that, of away, RFP, as from ownership going is in think decoupling at all? settlement the the growth growth with impact this increases forward? your that at management how of potentially that about

XX:XX the Well, -- referenced, question first me take first. let one you Okay. last the

I growth impact rate. think the it that does

First lot the our supports lot general of that two-thirds really of about CapEx, can There's look is of business capital system. and of in all, distribution through T&D. guidance also a in transmission as here, XXXX CapEx the area in you technology our our a

very So work. basic this is

has give cap of for some that should well. the the as it aware, the color you area of guidance as will here in refunds asymmetrical you of posted terms the deck in on recent in mechanism. was years because posting investments this a that about investor in It's itself, I as well. decoupling been filed. XX:XX the we've you think service may and nature be In slide kinds we morning that distribution see We of look plan that larger also the

this we CapEx we've to support in we goals to supportive be the build out of it found business not our grow, that As to the increased. decarbonization reinvest to and

decarbonization, the that think your all it's good to and Does promote combination will that service like. promote all growth, customer I question? things get a of So

you. I I'll leave Thank it that's enough think XX:XX there. color.

XX:XX Okay.

XX:XX Thank you.

comes question Julien next Our of America. Smith Bank from of

Your line is open.

Good morning, Julien. XX:XX

morning. good you, hear me? you Hey, it. Thank guys XX:XX Can guys. Appreciate

that seem So you've just to X% checked last a maybe I'm the you to of it's -- on timing X%? that about think you just that that, whether Or to lot this potentially things process getting sit question, really update CapEx. follow this you here? the on regulatory to incremental, out. closing do as it management growth, load just incremental efforts, OPUC think cost out final boxes close it, approval how the where about up Is and just within first What's about just off?

say it, our think XX:XX to I process continue process. part standing RFP good time rate what important is levels the There be of in is I would that's a us. The important some higher And to invest very will business. also, to an in Julien. then is this at event case

So I range in that think that's at what is moment. giving terms the me growing pause outside of

the of I very want the invest So more of RFP and I I results summary. to capital in see see business earnings, short a kind consistent the to want to want That's process.

already if to and short XX:XX talk about can the can't here, little But How you can Excellent. here far, know And potential then as much the we thus dynamics I what I your do you here? BBB think you with acknowledged know perhaps ability OPUC eligibility you Because an your and happen, you there? if say, bit dynamic. there's affiliate. you given right. moved will? speak to regards mean, think participate creating All the about open-ended. a the NDA against not Perfect. I didn't I'll it list can leave obviously, to specifically you you

XX:XX great. Julien,

technology have bids submitted, -- been well there of ownership kind or there's out every wide variety kind option. as have of we PPA So as a that every of that's

of different lots So variation, options. lots of

is least of the are capacity decarbonize really in around objective West, as as standards no We to against risk, them a big least fast General entire costs, across possible. Portland different. ability the and issue is evaluating process Obviously,

out. see to just need we'll shake things So where

least-risk good with options, when pretty have We where have a regards be a the and to achieving we to options customers, focused. better ownership history it but will that's for least-cost, really we comes history

that about add filing. I'll Julien, XX:XX affiliate interest

for, And could out the prejudice in by BBB, some and that benefits again. separate call not of be need we call it RFP If December, we're OPUC if for want there's RFP as I'm of our in be so on to going would the that rejected that If also a depend in without continues. any for repropose hope dollars, us was normalization really and there look that may that tax you might use may is it to you continue but involvement going awarded. financing affiliate. not trouble no the continues any that at modest, It the to that, it, to the way projects to we and

mentioned, As I we're in pretty shape. good financial

It's else. the a saying limiting inside be conclude embedded anything like that. to just we finance me factor, finance utility, not we those just going could let So by (ph)

given awards 'XX, do about you the call Indeed. any period? you you excluding elevated mind, that, XX:XX quick CapEx, the think said remarks, clarifying on Actually, real know the are through further potential considerations equity. again equity on there Jim, no on How financing, thinking was I just forecast I

level go I'm no as in about at But XX:XX forward. Well, arrangements. clear I because see this the equity. for the this of At shape know, settlement considering pretty any ratio. redeemed do want we we're you XX-XX going XXXX, in point, RFP a CapEx, wouldn't recent good I to further And

shape in operate, without that continues good as equity. long we'll as be So to

you, I'll leave there. guys. Thank you Excellent. I'll it soon. see XX:XX

XX:XX Sure.

XX:XX Thank you.

Thank you. XX:XX

comes question next from Our David Peters of Research. Wolfe

Your line is open.

Good guys. morning, Yeah. XX:XX Hey.

XX:XX Good morning.

kind ratio with basis 'XX an points last on notice your that of to just below equity level ended in Jim, piggyback one. for the like, agreement. question One settlement XX:XX you XXX I of,

waiting in are RFP sheet closer that up you to balance get a that equitize I'm you Or Just 'XX? kind the any into back you consideration that XX-XX just to for elevated just sync of just with a over are level? taking need maybe the to and wondering, CapEx, with up setting capital might

come and ratio And XX-XX. insight, the are to the at to settling you've some equity we it. we that I would I XX:XX I Yeah. regulatory stout. an out for said, of possible about where in look thinking the way that. basis, additional XX%, at very a purpose make accounting agree our and that got about out the would the ratios to right RFP XX% in And the logic as On good do I But look benefit of think equity and works. David, sure that's closer with way have some

regulatory to, XX:XX items. guess, Perfect. Switching gears I

that the Faraday was to later address into year? about Just goes you maybe on there strategy service, is project, once rate going excluded case, with this I you're at point that lag from some the can one project talk which regulatory that how just the assume

Sure. XX:XX

So the how with of on that a timing and through we're from address parties to process regulatory in working standpoint.

the of a We in case case. It of COVID into Tremendous through to sort the history that last of wildfires. an have portion was We state rate has past in another of Oregon separate rate in but service, that's that brought bring The full a would of of having years. good this represents project project. the impacts to another but rate of narrow not the case, couple to the sort heart on course of the rate always case right items option. attached been overall through of what like file prefer

And year September. storms. this the it then to melted lines almost in ice the XX:XX transmission ago, was heart of there time the fact, from last again and In year, a

into possible the we the as look to work we've on we so out. and time it and as evacuated as things prices possible, site concluding occasions. forward as the And project And safely customer at quickly appropriate as multiple bringing

Great. XX:XX if last then can. I And one,

Just it be you with then the addressing various update factored can deferral is you or much stand whether storms? I an as give your on for how of And deferrals, you you flow where that into 'XX? just that guess gave wildfire guidance cash this And of kind ice have well. PCAM

XX:XX Sure.

would a lot normal I the deferrals. our Let Several me have details Jim really give of are deferrals that. what of you call on course

decade. a for process that handled power So our a adjustment mechanism is than we've longstanding cost more

COVID event well, of are is we've was across results in climate ice well the one they certainly, destruction that's service events, us change. in extraordinary the seen been in what we the a But territory our most deferral XX-year history. and And have sort stakeholders. of storm our for really got whether discussed You've the then

So be are really recovering looking those of not prudency we is at the that only them what should of all we the length costs, time of but over.

a say so would I so pursuing in the in across aspects. now of we into these And matter, of and had advantages all regards until to But all was past over general, legislative as jurisdictions excellent with put year. discussions up statute we're Oregon, wildfire, support, we've have other not that good this many country. the legislative in securitization, which we're like a

we new of are overall So -- is feel some of we the in times pretty the good Jim, it want these, in go but do you terms about details? magnitude. to through

and is, the justice, XX:XX rough I'll Sure. cost million. about round $XX adjustment give deferral million, is the it mechanism just confirm, COVID $XX pandemic and I'll you power David, numbers,

we'll we'll we'll both PCAM amortize in the maybe on right. quarter, and take in time and to do settle year amortize seek the in Later year, those two midyear of and sort and So fourth the those COVID the wildfire deferrals storm probably items, seek in third frame to and what deferrals, this straightaway. is

near wildfire some million is storm total we'd of I as ice But like known million, time, we're should try So term. right down they being same to the securitization We'll see are at but working on first knock mechanisms end million. the And $XXX pandemic. for to all at the two proceed these and the and there the at year add place. with anyway, $XX in larger items then together together, $XX -- and put cost now, are that power these are those ones here. we about All is and COVID the go that

XX:XX Perfect. Thank you, guys.

Our Karp Instructions] question [Operator you. Thank next from comes KeyBanc. Sophie XX:XX of

is open. Your line

XX:XX Good morning.

wanted just morning. Good question. lot already. about A you has XX:XX maybe taking the been to ask Thank you my I conditions. for hydro discussed

unfortunately is the year of we it's normal generational a average it And right. predicated seeing guidance another looking on your drought, actually in below like kind hydro, So like looks are West. it obviously but maybe is

And to basis? environment? a about that? what lower guys you of how At level normalize how do So more you you a point permanent handle do hydro maybe of on type connect think do this

operate. question. River the Mid-Columbia, XX:XX last even as which in chart where well distinct our the Clackamas and XXX%, in one XXX% And we there's Thank for just systems XX%'s. were estimations our a now, XX-K we contrast for about systems under an to in our the and runoff is the for own of Deschutes shows in forecasts That excellent Columbia year are It's you. the XX%'s and the to then XXX% which River as Basins. river for Right upon river XXXX

that we like the will that actuals. move continues I XXXX for for hydro I to impact began overall have as NOAA West, So region also British the we the I And Columbia the do being. this over those a I because on the cost last distinct costs we're say take that. Northwest, overall would in that the of ice they want the at XXX,XXX Northwest. for the is through to look across very patterns Columbia mild up pretty weather note which with areas. weather needle look snow, and been contrast it's And availability different time outages, The winter, an XXXX dealing storm websites lots That's conditions, it's traumatic a that, bit California. also really we recently, recognize availability that would think actuals really the the wet little with point you and a would River. Pacific were in good who to really in customer most looking other power we important versus at on snowpack that more part year XX:XX nicer it's to and have a pleased power time given

you I little multiple that tracking term? or Very along that entire FERC in initiatives are the looking Market is a anything West of Are integrate kind to XX:XX be guess? Energy could the Imbalance seeing any And in maybe there the on Is you lines, seeing? the and, developments regional system forward there, there or Western like, helpful. are should basis Thank we same the offer maybe progress the to latest you on commentary you. the at going a better any near what in on

a and that's great Sophie, So a question XX:XX big question.

quite Let but all, the of for successful, me try Imbalance allowing tear us and across of less PGE money Market And different saving wear hit acknowledge taking place. has and let lots able our West, and Power tremendously that that's that the we're me will the a Western And this the Market, Energy -- more Western so event. join, and Bonneville accomplish. and a assets of Energy number balancing to will it given springtime will system, our There's regards pretty of up diversity and with authorities operationally Imbalance all customers work renewables integrate customers, initiatives and of been seamlessly to between sync others. issues a significant to first be that Administration with bit on the

the handled. CISO. to goes California in renamed to is but as with the day-ahead It's able the XX:XX goes And itself. EDAM, in also we adequacy I now and across Northwest West now Arizona, quite some the a bit on West-wide what only should what Arizona discussion market, the that for resource all Pool. there would many other work big also timeline the states. very not transmission is measured And of other also down wheel-through solve came governance many work really governance create not with planning. visibility SRP a other the for planning, efforts the Service, how working is everything transmission many with There's Western the say the they on is was working but on closely And a quite with looking understanding way taking that to governance along well of Power at Northwest, in parties the more marketplace. then and place. at as there, difference Power as think for Pool make Public dealing see to Western out just be great issues significantly. membership issues CISO, additional the issues issues as well There adequacy, and was going you acronym West-wide, of their which the Simultaneously, California regards looking is issues. where And broader common the that I we're extended its is paper we're resource XX:XX We as will CISO, that's with of alternatives to CISO from

the that taking there on entire and is know lack of these please amount across of place So no West effort work issues.

color. Appreciate Thank you. the XX:XX

you. Thank XX:XX

XX:XX you. Thank

Our Travis of next question Morningstar. Miller comes from

Your line is open.

XX:XX Hello, everyone. Thank you.

Good XX:XX morning.

are if either side level various for higher thinking summer high guys you some Just fall? impacts to options the a last higher and or the the were some that you inflation manage the XX:XX through of the would an this rest year, costs in side face to regulatory about of into have inflationary environment on that a the what operating

probably a our of summer thank in higher planning you of but And the and are terms and not only fall, inflation first multiyear on much. basis. all, So throughout expecting XX:XX very assumptions we thinking,

have great are adequately that is here One XXXX, of inflation, in and possibly we we that working ensuring that that people best done work wage doing things address we and began do. the have doing the the compensated the can that we

amount many changes, improvements We which front-line they're changes to their made that using, foundational, our our how we've a and continue but services have us. friend, our all we tools that, and O&M. whether and of and really the tremendous we are that's of seeing of the And and processes been that interact to and transformation. are customers, goods not tremendous throughout paying not But their our company, to substantial through from XX:XX from same, which capital of way with how are of workflows but accelerate we efficiencies focused is and we on many digitalization bills. customers behalf seeing a inflation to already on customers utility's are And co-workers only many see know, deploy and hope of as

you add? anything very to And so do we're very, you carefully. watching Jim, want things have

to, related directly it It very literally the Thanks and things, to but we isn't year took When our we ice Travis. the inflation, had equipment. increased of that Maria I'll of question. and storm couple indirectly. last stock A for call essential inventories referred XX:XX traumatic spares

things of caused the last would think the to storm. have kind than us a purchase had we course event not ordinary equipment in of So of I year lot that had sooner actually we

other do long-term And we're services many thing The transactions we hedge XX:XX contracting are as financing out to so basis, and The be, turned I right is to did would now. Travis, and to in financed field in well a have been EPC hindsight, all and judged attractive. services, extraordinarily that on last supplied add, we that now. that. cases, year well try up a signed right very use we're

That's And inflation so higher course, have exactly of do the not inflation we rates. very complex, impacts little but think either, year rates. at this to I

So I we're reasonably overall. well positioned think

XX:XX Sure.

great. That's Okay.

that got it And offsets operating has keep can in enough so but just flat cost XXXX, we can to assume that inflation -- on slightly the we down. you've that it as assume you to number, cost there, roughly

Maria XX:XX with that That's mentioned Yeah. normalized O&M efficiency into guidance. and in down X% baked the correct. XXXX about programs I would to that say

supply Okay. chain XX:XX issues equipment? that way you're Any RFP then you're these bids putting the bids together quick, or on chain seeing Anything even issues And general that or anything seeing? days? supply you're real side just

I on implications side year working supply be of with for that. of standpoint, from to to were very O&M -- in projects as investor the are working began doing renewable co-workers through on suppliers able last an line of that proud we're months doubling issue. it we second some that say standpoint, area, the really we've bottom issues, chain issues focus and hard been the storms But wind quarter, this. a on work projects and And projects. this continue whether to on seeing the through of on are solar the the mentioned, and through, hard procurement, after we really eye XX:XX the we Jim for capital chain I'm side, towards and would working So of this on from manage we'll we down our our an those overall, and all, they're or supply first for and on coming keep on

our XX:XX this buy board, authorities And is get of too directors. this we've board we as at of much, to prices. attractive can long-lead Maybe it they're without that with had a issue beating our the soon about very horse us Travis, last, increasing equipment chat supportive as

for so the us, CapEx. increase authorities go. using It's a we're all issue And very authorities problem increased we and it and we especially the as very manage right as important to focused we're now, on

I the great. Sure. really XX:XX That's thoughts. appreciate

Thank XX:XX you.

Our next question HITE. comes from Andy of Levi

is Your line open.

doing? you It's Levi. guys are How Andy XX:XX

Nice Good. XX:XX to -- see to you talk you.

Good. XX:XX

want I just or of questions around to statements So clarify the of kind kind growth the rate.

So I'm X% there's because rate. a to confused, growth X% just saying you're a guess I little

I going extend to X% through growth, which to X.X% XXXX. have is top line You assume

base far. Control CapEx lag your $XXX so You of million-plus away of costs, goes have rate the as up. going regulatory

if I do only mean, to math, here? I a got am I to rate the missing up, you've through it X%? I the up understand add So does -- seems higher. I am mean, what case, adds X% I quite that to like wait It but bit how what

Yeah. XX:XX

for thank Andy, you're you and So I the that issues at. looking question, appreciate the

our is operating in things the also of volatility One at more we're environment. looking

never Pacific And energy environment. we've seen and chain challenging you come As talked highly record work we've that that markets Northwest, volatile we about of issues. tremendous ice, overall remember, supply off wildfires, been the have and a inflation a period temperatures in

sure that on we points we're to make we're changes. put other before confident, the make board able to going are While we

a there are add Jim, environment think that overall the want we operating to of I that? facing. anything So other you and recognition to utilities is many

in midpoint I CAGR base. year, of an off I year earnings XXXX, at given which it is the X.X% which XX:XX range; and will which at, guidance then actual the itself, ways: incremental plus Yeah. I is look it then base $X.XX, the there of when I'll $X.X results base at increase to would year XXXX's look the and to estimate, I as power at to closer a number. XXXX. growth you, growth say, kind with look X% rate guidance the And from the look also trade call just presently two obviously, earnings new that's get math the and $X.X I in at at midpoint our it billion, is I we Andy, a what Faraday to billion is at earnings rate some mentioned, assuming

settlement pro is as though So hanging $X.X at out, even were. is forma, Faraday it billion, the

cap $XXX lower. And guidance, midpoint structure exactly million. a another Then I this arrive at can at our look add allowed of the the in little I CWIP year's the So fact, and ROE. and

guidance. I think of $X.XX year's this the is the midpoint

XX:XX That's that. So Jim, understand longer I term. I'm, year, this like, right? looking

And if forecast. eliminated then it's alone, most top plus, especially decoupling CapEx line is just multiple-year a of mean, it. growth gave or the I minus, multiply, You divide.

higher growth You much come rate. up a with

then out, So would we is would this a from that for? kind I'm I'm waiting and about we're that refresh guys? you also have what But you completely just but just just get something then case of chunky. getting decided confused. upside kind and on, be the Is of rate on the obviously, this be the talking case waiting RFP, rate And to

factors addition we the not how profile, we're reliability in, to simplified add improving looking decarbonization we out future, term that look XX:XX to face many events the the the also look at into our you're So are Andy, picture comments our but I with at noted doing. as there that as in only in just resiliency, bigger regards to math we as longer that that we

I on then for and leaving right XXXX for are. more and wait visibility -- guidance numbers and But follow-up think future to where the XXXX our it's they more quarters So should get we we're probably now, our thereafter.

-- and of the really of that outlook other business get I your that, you get make like whatever, sense. of understand doesn't longer-term the that's and I some kind wildfires, really normal I but extenuating hasn't but it of most events, any No. about it. XX:XX mean, and affected course recovery

I -- So it know. doesn't really don't

rate it's you're think, I bit the have to And a going this of, little opportunity of to living to with to maybe probably territory. and kind up think and in it's I as guess, case, get kind lowest sector. service through But deal growth I still X.X%, the get is one there. really the what but the think pointing have I think you. and better. maybe communicate long I Because to on you're quarters, understand guys rates your X% is I think in but your hard, you you'll through X% of of the based of to kind but guess something we couple don't opportunity profile next thank kind I of

and insights. good your appreciate Sounds XX:XX

XX:XX And confidence.

I'm turn you. I'd Thank back any questions to like Maria call XX:XX no to remarks. closing this further time. the at over showing for Pope

future. the with and for much. XX:XX advice Great. We Thank connect regards Portland all interest hope to today. you you very your we you us to joining and General, appreciate with in Thank near

all participating. for you conference. XX:XX you. Thank this Thank and Ladies concludes gentlemen, today’s does

Have a disconnect. day. now may You great