Portland General Electric (POR) 16 Feb 232022 Q4 Earnings call transcript

Good morning, everyone. And welcome to Portland General Electric Company's Fourth Quarter 2022 Earnings Results Conference Call. Today is Thursday, February 16, 2023. This call is being recorded. And as such, all lines have been placed on mute to prevent any background noise. there a remarks, Instructions]. period speakers' the will question-and-answer be [Operator After

Relations Jardon opening the Senior General Investor turn I Director Risk call Finance, For would Portland conference remarks, ahead, Please Jaramillo. go over to of and sir. Management, Electric's

Good Towanda. happy I'm everyone. us you morning, join today. you, Thank can

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

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

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

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

year share. the XXXX write was compares per non-GAAP and with XXXX. million of impact share $X.XX full despite the Great, key COVID full earnings for net XXXX. significant results in diluted or per income few $XXX This with $X.XX and joining morning. we a fourth Slide well year thank or first you, results, touch discussing Thank share wildfire $XXX Overall, reported of Beginning the on XXXX Jardon. quarter challenges. for for net us GAAP delivered X, million by per the of today. year Good you After all $X.XX income our I'll for as drivers. start or $X.XX quarter $XXX [Indiscernible] off, We adjusting solid as million

For with and gas market or additional specifically was mitigate net market per quarter, per quarter volatility. and share $XX and times improvements over energy $XXX our what using This made share. average late impacted hedges. compares million and the The December, were $XX Mist power gas into $X.XX as In experienced prices squarely We've fourth modeling severe natural storage GAAP natural in XXXX. to regional at megawatt $XX also in of the by per entered Mid-C X more gas million We're rose facility volatility prices focus. MMBtu storms fourth December we we have XXXX, the risks peaked extraordinary income and market hour, North to actively or of are procurement, to impacts at $X.XX at hubs per volatility. in natural over

year, also approved the was Over upon. last hedging our being program effective and is

prices XXXX only price XX%, at the customers by While increased Mid-C nearly XX%. by for power for the paid our increased

at year and a at pre-COOVID dedication in prouder X.X% a of continues is industrial pace, X% year. this with return be increase efficiencies hard this not XXXX. mix related As our operational a perspective, of impact a to an rapid weather extraordinary price off, in team residential this Offsetting customer High energy operating with tech include and XX.X%. could market navigating load hedges XXXX, driving shift lower Load customers From further I last forecast the are and conditions. increases increasing usage. growing over of work in digital X.X% driving growth roll

inflation management generation, and transmission, to laser we up X.X%, distribution, on of other Excluding year costs. focused as less and the and are impacts items, of X%, was than up impacts O&M increased other wildfire deferral expenses and cost year, administrative mitigation was offset O&M the over

to Moving X. Slide

Our and affordability steadfast to commitment we’ll continue aggressively. costs to manage remains

processes, our productivity. are and work simplifying, We technology leveraging improving streamlining

infrastructure and to our upped regards compliance, and have replacing with installing critical strengthen game We aging our assets reliability. to

front, while efficiencies We're visibility, thousands decreased outage saved automation X.X and giving events of repeatable service. through business deployment the resource customers the hours person and operational to of duration to impacting greater average million and we've digital over customer using forecasting our XXXX. in improve minutes tasks. improved enable machine tools better On technology of learning also We've restoration reduced clarity, we deployed XX% by

as We our responsibility. of broader are social impact well cognizant and

diverse impacts again O&M helping spending our into sustain significantly, to increased more we Jim communities. largely Our excluding filed we or go detail case. and yesterday, increased suppliers be with case, mitigation our are say, I planning XXXX the items. filed in as our wildfire we on rate rate will to and actually XXXX should our flat strengthen deferral expenses XXXX, of Today,

investment, and price gas as natural includes the inflation reflective driven XX% XX% XX% and of financing customer the costs. is and With and higher resiliency reliability, a purchased higher prices which with last capital by XX% well increase. OPUC, as related operating of request is costs acquired to energy compliance our

for is we to important cost addition, adjustment significant of rate general wildfires. against important our and as In our or risks, event are and addressing aspect mitigate climate An mechanism case PCAM. seeking work protect such an authorization power

conditions. balancing a transfer. and power decarbonization better create goals have customers facilitate future current supports cost mechanism. will not fairly by the proposed our is to and more and Rather, costs regulatory operating durable framework the and framework proposal that a Oregon's This benefits overall We modifications improving reflect to risk

you stakeholders, Wind Project, generation bids. significant the and investment. As announced especially in transformation Last the quarter, benchmark capital the Clearwater past, during know, one of period we this collaborative with we as look our and forward to discussions enormous of OPUC

RFP. we We are the optimistic about the opportunities remaining negotiate as ownership potential capacity continue non-emitting dispatchable to

and volatility, resources additional coming in RFP. and our us procure We PGE’s includes the critical megawatts reliability helping benchmark solar XXXX to power in and that the system. variable supporting identified was cost onto that PPAs in be expect wind potential XXX will projects manage need This tools given

We plan plan. energy and our expect half we of negotiations resource in In the to will March, combined this integrated these clean conclude first year. file

As we've overall year, actions. for non-emitting the Oregon's shared PGE’s In and in expect goals with of additional those decarbonization previously, renewable the plans generation associated alignment to and RFPs capacity will we second launch incorporate half plans. these

As will we reliability have to a continue this and future, to be the transformation. way clean to been key energy lead and affordability always

XXX helping Act, the and submitted an we amounts of approximately With submitted In climate entities, federal million XXX million with and large impacts. in six Act local reduce customer bill targeted just federal funding in projects weeks Infrastructure the Investment passage and This secure will XXX forward investments, integrate applications of companies XXXX, papers, to nearly new of working towards transmission. concept XXX million and technologies concept tribal XXXX, and look in for range renewable Inflation we papers. scale in others, concept energy of to and the the of we first to projects, from totaling are grant which Reduction communities, support applications million have partnership Jobs additional in technology ever-increasing papers to and infrastructure that grant

year. to investment headwinds. opportunities And to $X.XX an are expect path reset the balance to year and and be a XXXX RFP investment The sheet our strong range For per our GRC equity in earnings we temporary to established XXXX $X.XX share. issuance of regulatory clear XXXX, the performance. full represents lag

enables decarbonization XXXX, improved load beyond summary, X%, growth are In performance long exceptional operational severe weather. service. advanced market profile, we strong attractive critical laid strong our our that Looking volatility term customer long confident foundation power, to a earnings in of navigated well and face customer executed projects, growth for historic growth. performance in We driven term XXXX and of and in X% by investment and capital

strong that customers, we and financial energy focused confident ahead, on reliable, providing look by will safe, As we results. we all are clean to remaining affordable deliver

to Jim. With that, turn it I'll over

Thank everyone. good morning, you, and Maria,

XXXX impacted the load energy volatility that we weather transformation region power Strong reflect upside Our performance. of as difficult the faced but our severe we undertakes face, and service journey. continued but growth our our the territory challenges market results also also both

winter by temperatures a adjusted in XXXX. contacts XXXX and normalized the height in X.X% periods We the the and extreme X% X.X% increased In for a total as caused continued historically compared load hottest on first load demand driven habits XXXX. on X.X% the summer. warm cold since spring a December saw XXXX, peak weather basis and more patterns usage and time as Overall, decreased adjusted Residential as witnessed record, usage increased non-weather some in increased loads temperatures in for but winter XXXX. new year August First, adjusted. winter of weather growth July Portland have On adjusted a year, changing the to from XXXX operating basis, pandemic to over conditions. well shifted non-weather

the increased X.X% in aftermath X.X% elevated counts weather uses usage The XXXX for high slowed tech with XX.X% loads residential continued on the non-weather XXXX. but segment of as expansion has decreased growth during related or COVID-XX our to X.X% growth sectors, adjusted in as As commercial pandemic whether in adjusted industrial slightly the adjusted a steady customer levels, industrial trends the in Commercial on compared rapid continued. class the the XX.X% adjusted high trajectory moderated year. levels its growth increasing weather region basis increased

territory. of to moderation confident economy. we fundamentals in some sight of regional of and much our load XXXX signals service in of line country, the remain interconnections and A expectations healthy construction pipeline gives to Similar of the have seen in We our us beyond.

reaffirming growth are XXXX. load X% we through term long such, guidance our As of

stretches volatile XX% and Despite prices quarter volatility overcome financial to strategies demand ‘XX. Pacific $X.XX on from could weeks and our decreased EPS entirely XXXX, sustained all historic liquidity strong during fourth non-carbon be but of in quarterly remains relied our financial mitigate in year. impact the to $X.XX closed emitting sources that XXXX quarter in noted, Maria fourth the of this served ‘XX conditions, per available per of during retail having the during high specified these not We in of we cold impacts Northwest closing the created share load weather As share energy from customer the of time. the

unique You $XX will remember we the in the million also comparison. a in band already that creating quarter cost quarter-over-quarter surpassed had PCAM, debt XXXX, upper fourth

driven in to comparison. periods was ‘XX, to digital context, that serve industrial Power the a increase intangible X.X% $X.XX to mitigation, $X.XX $X.XX financial load in turn deferral and restoration by plant and total Higher cover in our mostly ‘XX headwinds from led XXXX. from market severe to composition net serving decrease $X.XX including load year-over-year. XXXX up increase change hardening and due costs a to a outweighing high-tech higher the driven revenues in offset partially are EPS in this growing growth increased to the increased technology performance impact due this and of in was compared scarcity compared depreciation periods and of attributed I'll operating in a and during It driven distribution a experienced the X PCAM EPS, volatility, balances wildfire XXXX efforts market grid higher in by costs XXXX, $X.XX primarily of price volumes by to drove amortization We management net by attributed higher industrial decrease $X.XX transmission, to of incurred to customers, with and XXXX in a driven decrease deliveries, EPS to net that Given part by $X.XX due demand $X.XX EPS a residential due to peak and for PCAM we offset asset increase vegetation load resource expense, primarily to our prices Slide made in decrease, regulatory purchase XXXX, customer compared storm commercial assets. increase changes referral load. normalized $X.XX that for the and in program $X.XX There by XXXX revenue, and increased expenses weather as of settlement. decrease

items. $X.XX lower a decrease quick decrease from plan; $X.XX had a decrease by follows: PGE’s XXXX with taxes, to and lower driven a of local due on to to including as We to balances $X.XX expense, long There miscellaneous higher decrease a due term offsetting XXXX; ‘XX, gain trust AFUDC, to in the driven our by a was balances due non-qualified decrease and a returns issuances. due which payroll XXXX due handful higher items property through the flow in higher a QX impacts XXXX benefit $X.XX interest recognized There other due XXXX; interest decrease reflecting to compared and $X.XX by XXXX. buyout the $X.XX was driven decrease rates, net portion settlement not QX a $X.XX did finally, decrease post-retirement debt throughout and recur debt tax to medical $X.XX the adjustment a of increased in lower

$X.XX EPS GRC order, to Lastly, earnings of test as a of application on we established in the a experienced deferrals EPS final XXXX XXXX of XXXX decrease of deferral per the our major share. to reduction, result GAAP share. which $X.XX GAAP our adjusting brings After us earnings the diluted of the the EPS test XXXX GRC $X.XX non-GAAP $X.XX for diluted we reached per impact

Slide to X. Moving

to includes Faraday GRC $XXX take noted of of As XX% recovery Project, requested of reliability, placed increase debt prices of Oregon deliver a on requests cost Public to and The providing rate to service The a electricity to and Hydro or a billion, general XX%, of essential filing upgrading improve $XXX a capability safe, equity our Commission of debt which the equity, capital January of and and structure was earlier, investments clean grid XX% in nearly to $X.X service filed the of increase of cost in the return approve new reliable review This of million of and of capital we reflects X.X%, X.XX% million customers. rate with base yesterday, XXXX. Utility a X.XX%. and price XXXX. cost resiliency capital case into an January a effect

variances sharing a The debt the discussed, power of cost mechanism. also PCAM. XX/XX Maria a includes modification provides As without of a band filing proposed the proposal

Additionally, full of contingency costs events. specific the during reliability provides proposal recovery incurred for prudently

look credit. months with balanced X.X% the recovery over variance with price with the schedule the engaging customers rate any [Indiscernible] mechanism coming a stakeholders which price for during as each price customer Finally, and recovery annual following company. expected take year's credit the weeks. Meaning fair forward or years is refund or collection XX the continued subject alliance to X.X%. in would limits changes above a the and We or carried causing our of or about recovery cap, to one interests multiple process, case rolling changes is procedural the which impact year to is to publication

project includes the the on Slide Onto Maria of our still RFP. fourth update of remaining is non-emitting estimated completion I XXXX. resources. are for quarter storage negotiations X our will battery XXXX construction in reiterate benchmark going relating capacity, to PEG’s Project announced Clearwater we to this by projects. well the ownership Negotiations the The an under opportunities and about end with touched that continue now dispatchable and ongoing for be optimistic

to hopeful XXXX. in the negotiations of are outcome first of the share We these half

projects renewable negotiations RFP. in the We for part them include of XXXX for are continuing incremental our also would If generation achieved RFP, additional next projects the generation contracts RFP. not we ‘XX are in as

planning the to progress of be in RFP beginning horizon, XXXX needs make the to towards conclusion to notice is decarbonization now RFP the procure resource targets. We attention recently that filed capacity turn XXXX with With OPUC the to procurement XXXX an and and needed resources the we to Oregon's on forecasted are continued processes.

will first XXXX plan. We of under meet along by plan Oregon outlining file with energy the law, strategy PGE’s resource March, a decarbonization clean PGE’s targets end integrated the to

XXXX a to of of XXXX select will quarter request and the and third the the the RFP the OPUC by of XXXX. We recommend the process initiation final by shortlist submit acknowledgement to hope end for

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

visual expenditures do the for not illustration or includes opportunities decade figures XXXX the any current through through to our the Slide meet possible the of emission of RFP RFP XX a end from potential to XXXX remainder a cycles. of related reminder, future investment ownership include XXXX As standards.

critical of context, expenditures invest additional deploy $XXX continued infrastructure. accruals, in and and guidance the For $XXX were our our exceeding including we to efficiencies efforts million, XXXX to technology million, capital modernize drive the as previous optimize grid,

current will enable Turning guidance. growth assumed both earnings at rate, term illustrative opportunities X% as XXXX, and considering through RFP capital see This plus rate considering conservative. the additional capital and you trajectory that achieve ownership to rate of could additional our and reflective to investment an XX% equity expenditures capital based the slide could consummate. to project opportunity an be opportunities, earnings growth opportunities RFP to from which stemming long trajectory RFP not us cycles The Clearwater our X% based requires outlook future the plan is debt XX, and when and

Turning to Slide XX.

at credit liquidity sheet balance strong not include is stable And Total place. our does XX, a of note counting Our credit equity accompanied in I'll XXXX grade that remains by continue maintain the available this XXX December we now and million. to forward is any investment outlook. ratings

up the As in we $XXX anticipate earlier XXXX, in year ahead million $XXX the we this later funded issuance of look a debt to to year. to addition million

We our through our debt whenever will issue to continue tying financings investments. of green under possible practice strategy continue our capital to sustainability financing to debt framework

XXXX the agreement with anticipate equity equity also the agreements forward completed draws beginning million in against executed We XX month end issuing under $XXX equity forward XXXX term. the the of first common will the in quarter. by sale in approximately existing be Remaining

to Slide XX. Turning

year are few of this share. diluted $X.XX us like target key per will We guidance help XXXX a earnings to $X.XX XXXX. to I'd full drivers adjusted walk in initiating achieve that through

XXXX. anticipate previously, in assume digital increases residential high X% the in our the retail more weather to remained mentioned led and of modest commercial tech in growth fundamentals and by we in I X.X% continued confident As load territory and we've Combined, service load. demand, growth with customers adjusted

costs’ of O&M this and $XX in provide customers. and XXXX service the deferral is O&M be to improved O&M yield quality roughly highest included million, our income total significant [work excludes amortization will efforts offset other to XXXX productivity Net the of of cost the O&M work at through with and in help our of guidance amortization, reduction approximately $XXX normalized deferral XXXX flat includes XXXX management million learned hard XXX, our of processes], GRC the and statement revenue. strategy. organization will the XXXX million lines. This that impact which and $XXX offset this storm our While stands will efficiency streamline lessons midpoint

reduce over we and aligning to days; scheduling saving person and program, hours of automation replaced Trimmed thousands productivity of Just and restoration business million examples: we we over risk; priorities; reduction outage a a outage events crew X,XXX automation launched XX poles; X,XXX average repeatable few to minutes; an projects accomplished priority by decreased vegetation to $X.X miles line complete XX of wildfire with in duration power through line ops XX%, of a time we the installed XX%. increased from design work; our customer achieved customer impacting

since O&M XXXX, has back our inflation. deferrals Looking inline core after grown with

actual expenses XXXX, X%. in customers sustained in since investment by in a and flat. accelerating keeping for -- we've range critical and move went that our how our X% Using as XXXX set our scale retail same term and will headcount meaningfully be long XXXX the able XXXX. X% of confident for time earnings the starting our XX% outlook clear, long prospects up XXXX to how are of trajectory we while long Deliveries During unchanged. strengthen rate term timeframe, business, XX% customer to the result the and results. remain increasing growth in point increased in clarity by growth off the significant footprint increases believe PGE growth base calculation reiterate into in provides to we of term year To period we that adjusted our We energy all absorbed while the for how years serve come. more is a by as to wildfire customers reaching represents growth actual based mitigation

to long X% reaffirming of growth also are for dividend XXXX. We our guidance X% term

near top We the above slightly or expect payout be to ratio. XX% of to our XX%

dividends. Regarding

dividend a declared of per recently $X.XXXX board share. Our

dividend X.X% Our growth consecutive $X.XX, to be ratios, dilution compounded expect maybe this XXth XXXX, declared five annual year growth of payout historical years dividend year Due ratio with dividend completed the last but in at rate. a phenomenon. we expected a temporary XXXX higher to was the full which than our

energy undivided remain our delivering our of providing long and goals, turn and we customers, shareholders. value year to financial our detention while our mission we executing committed clean, the term ahead, core community to and to As our our reliable affordable

now, we're And ready questions. operator, for

line Instructions] Bank Our of [Operator with of America. first the question Dumoulin-Smith from comes Julien

bit if say to to of on the baseline but the little crystal I here, you the implications little to here if the X% to kudos just X%? just to of you're actual the that's clearly and the the where I with just of baseline comfortable the I come still you ‘XX make bit. the here. end towards X%, the feel instance press you with really type I came would the what clarify a X% the and to this to range there. of hopefully reset just to reaffirmation cascading fair. against to given so on wanted any ‘XX forward a X% back ‘XX towards moving X%? to want midpoint sure lower actuals extension to a clear would've that came Obviously, outlook with ‘XX, it's But ruling the Again, potential signaling actual range said, about was that question, in as want we're and for here I overall been want in know actuals, respect hear of

quite quarter, this for I here take don't I third I the to earnings you're context actual results. on the in and fair didn't rough off basing the given clear the right? have rebasing. a released had guidance ‘XX is as But volatility. were And think from I that start weather there. and range we the new we actual to of we year ‘XX And it's numbers, midpoint say it hope when end extrapolate implying, of we people the always a so, consider would

range, line if in still be -- I earnings We bit the achieving X% little we'll a very to we is business in even were adjusted to still comfortable a inside opportunity little the be significant. that bit but comfortable X% X% The X% that feel would grow to were bottom have XXXX. the higher, earnings So is range. higher

it's we're question the base the and to did. the hypothetical look, range, confident still to X% in and hypothetical not a even And using you forward pretty I'm X% comfortable while so if pretty

longer So the service long X% term strong also growing is technology area. Julien, increasing [battery] underlining of And on for bidirectional need term, that seeing to both to wind, and really addition, growth our sector the X%. growth then out of infrastructure storage, see aging is and assets smart a battery fundamental our have that But transmission. seeing we're pressure also plant. a our energy, territory also developing distribution we're X% to renewable in terms power for have needs we're putting solar, usage in we we're virtual storage. we're And customer fortunate replacement seeing we serve seeing in But even a very that --

in a all us growth strong those projects X% to term. combined makes So long of load confident with X% the

that in just shaped headlines early seen into here does or some the low et sector, outlook can you too differently for I it much here, the little elaborate that is reading growth talking actually, the just bit? what ‘XX cetera, X% the and we're And about specifically we've a here? since Is mean, considering of tech

in at Near looked something lot customers. built question, of term, ourselves. a feel the that's as is it’s very semiconductor by growth that rate, good we've well the a out as really already digital we because much capacity confident the No,

contract already it's as they customers. So that spent their capital filling continuing to investment out have really they're with

turn seen We and of edge here other the cutting most semiconductor a down in the I work for our that R&D that relates note developments. customers to we would have not area. do semiconductor

in we're So manufacturing in of service well see others, at you territory this commodity very we that the to support Act State of fairly areas Oregon bullsish. And the if states, semiconductor much fortunate. as giving look the having our same not quite from it's R&D you for other the as Intel we're the think the sector is and Lam as investments and of of CHIP Research

the here from the kind And and of a the to mean, then in just on near quite term here. give points you of setup But developments, of are obviously, renewable on perspective procurements developments affirmation own themselves next you on guys of some the I cadence brief of data here, constructive Jim's some you to data terms maybe expectation months? where was ability in stand specific opportunities, here the -- be points here review that these what comments. the that in your we those on in should Can and just few

working now. capacity we're or the towards So sets right battery

call a I of it, We months that But of number by literally, say little months away now. half we're for have the end of taking is first a the the this that that I'll been working a of towards number would given challenging macroenvironment we're longer. it year. in,

may an first be that's the which on But be mid that have also that, But capital that So think Stay finance we're a opportunity very investment. even there. substantial it's soon going the be there. very as not opportunity That lot confidence set. a will as it'll how as will point I next well. into in updates announcing to that some year provide will roll generation closer well. after we this there, of get that. But to still we'll still if begin for tuned There RFP, even

of procurement we're in be to the in going or the constant past, So towards the get decade almost achieve the next discussed we the to cycle four five decarb for as years end we goals. as

particular, see. Slides we've energy you. clean that's XX% couple working here And and I for provided in slides the include show plan numbers these the our also which not that XX, growth, opportunity commentary rate made group financing. based we're embedded we've set the point and about to So that of a added illustrative are the CAGR XX and our in that in are there, you does

to show goes of for investment you front needed not have in Clearwater it's model], here addition [earnings just a us. the we that in it So large capital surrogate to but

a really is optimistic. And we're So at really rate. this XX% ownership

including a on we conservative. bit So I were could folks, looked an think how lot a I illustration of asking think be of yourself, for this that. at And

Our of the KeyBank. line question with Karp next from Sophie comes

I in Slide you particular, the XX wanted about just to ask here referenced. you which

very scenario. I of in it's what terms upside showing me helpful if think,

upside. And think puts here and so how the for into And EPS certain we potential potential clarity and potential of translate have scenarios, but here base in more and about regulatory scenario that into CAGR would just when short equity X.X% CAGR lag takes for the you on guys EPS would needs stopped how and that? like CAGR, assumptions, financing rate some various you outlined this translating curious that upside with under I'm how

think one, projects, done. more that two to actual will adding We'll of. wrap owned I as balance ratio. to that sheet is be taking going a don't you that's fair. enter debt equity assume care be about generation things, rate. plus I'll And a clarity structure. I that by at opportunity, and accretive a couple of incremental we the procurement we This almost I be taken earnings have you as to long cycles which call But financed be into at assume account assume could this DER handicapping presumptuous total of XX%, a into And providing needs it, the way assume It'll up and are based other that XXXX, XX/XX the we the others, too current repair believe, right? so a It'll of growth we equity we're win model on an can the since is present want projects.

So terms XX/XX a the for case. start for bit sheet. a of in balance it's new asked of We've rate growth clean a in ratio this

So not earnings X.X% against I'm we that's if have, were look not from that we illustration, call this model to that illustration it an at guidance. providing But why I this.

at have upon this You'd do debt, least XX% to XX% gives numbers assume equity modeling. to but which the that and you

[Multiple about Speakers] equity And resolutions? far? you so issuing it's about that in sort a as I you similar go say of would gone to were Can it fashion fair

maybe Yes, not.

the that'll we haven't overequitize given built which think, projects, want that they continue. projects That been on mostly these I one, of I day build won't the transfer, think on yet. means to nature because are

delayed more is do place with So bonds what also draws. use we'll likely equity private forward than and

So have delayed both features, opportunities. markets draw both

actually can debt and efficient payments That'll structure we with equity fund the best go. be fund as we projects. the So progress and most to

we have drift. my get arbitrage negative you if So no

certainly like program part go year. we the I as latter of So technique a into this the at as the market

So I'm that's now. right what thinking

guess, question My is philosophical more, other I question.

in you that price So the -- significant as sustained, gas prices you pretty guys power volatility and highlighted. power energy

future? here to region, you the in at evolve plans particularly or the the volatility this to look likely buildout stack is way Would generation electric for the As is say in generation, poised you increase the that right? reduce

fluctuations high volatility as less be particularly caused term I locational we're particularly a those to see that periods which but distributed multi-year XX significant reduce will I longer think hydro is wind storage, help could multi-year not versus more have also the periods. battery the solar what we high you'll hour more seasonal going periods rooftop see think but but periods. drought increase by certainly energy on or a overall changes, based in with solar issues, versus seasonal And precipitation resources, in multi-year drought, we and particular, could necessarily will basis, wind see periods

global west in of in high small it's an solutions. regional integrated most move you're So shock create above and markets, say we entire is we asking going million set dollar The as out. customers, we set is alternative of to great large we're looking higher respond of working at and and sort to what need here, also to the companies, maintain the all the I'd be prudent way terms we're again, we're going an what be across ability of higher I'd -- much all expensive handle question for need particularly every and the at customers. as to cost figure we that, with lowest resources tech between solutions. take hydro look a for that terms forward, partnerships diversity as transition would seeing all say closely those to more have, a and above we're all reliability issues. And reliability We're particularly growth of trying players we're of forward, because of the and to the to we and

line Our Mizuho next Group. of the question Alex comes from the with Mortimer

of seen have Is we've as you So hub? ability your there country. even high to areas other prices from Pacific kind Northwest, gas decreases in across natural from we've seen any the hubs other diversify in

the is cold they Clearly, to across spike the whatever And hot turning very were of December this actually that's of west of without things the is. last sort multiple the happened what had a able re of very facilities interesting many is period things did one that was refill. events. the storage -- really weather you there as confluence quickly Yes,

You pretty dry December. also had

So had, had that market. you unusual sold as Jim actually participants then to contracts, fulfill on weather and and needed the cold had usage pressure hydro mentioned, energy who putting super And many you spiked. those forward

look in create we hedging again, strategies, partnerships, we to of and have as forward part resources, move benefit. going will strategy for all more more as an we diversity additional think I stronger our So diversity, forward, incremental how is

expectations. and The last had other we driven industry, year, other by even semiconductor computing forecast exceeded as But we demand, cloud strong it digital looked at industrial our is, capabilities. very

And customer the reracked about so into XXXX, go customer segments. different our as really we we've way think load and we

throughout entire much that place. more us hedging our so already to strategy will the give that's in that aligned And year is --

and more So have that. already doing of yes, done we're we much

the moment either terms stand Basically any you term, gets or in and within guidance, things the long in what at of both near to just is there and in the then the of the X%. end and X% range? both to term low bias long with high then And then XXXX how with kind over that

I would no say bias moment. particular there's that this at

leveraged that But now guidance when October that increasingly to Really in opportunities tell are first are would actually or have. months. at that last in we increased those comfortably of with could limits just level the where leave say us. even upper we we're since has you range we reach the RFP guidance confident and inside moment that the six this that range. be more We I confidence going of to the are talked about increasing it that we that think I front what's last I'll range our five qualitative more

successful would grants And funding, whether be that grants I resiliency across to the partnerships and whether in customers it’d and to to from federal be reliability our let's and in clean terms We've to customer be it’d a hard areas. a working Oregon also FEMA, transportation organizations BRIC whether add we with it’d through a in as a started are are poised the of energy really in and through infrastructure clean are the reduce being of with and of well applications and say for transition. [otherwise] these Oregon make we the State significant difference, significant bring we IIJA, go number IRA, impact focused energy really price of transition already to

is attacked we've in a available. so that treasury federal promulgated, We're on Reduction the and you're think, way I far papers. going applications on a number the papers paper sure two paper paper point there's Number are and rules concept so not to rejected. given not to upside. rejects I accepted at pleased monetize our your is market far bid. of project the course, Inflation And Maria's we how concept concept no And it one, we so forward. that paper that really right Concept And invited rejections how our one and things credits, point of Act and moving the opportunity. to to had the concept yet I'm are haven't commentary. about our the one. XX% are concept make total think We've number add just the would submit now, all are calculate put that's yet And is is are you that, programs had if one papers works And grant $XXX applications concept against million where

So I sign. think good that's a

I provide some on headwinds just the just across finally, et any of then, when your assumptions be we've natural hoping And just abate industry, on headwinds gas, sort the whether seen rates, of today? you color the reaffirmation of interest these X% it’d was X% going obviously cetera. given may could forward, to inflations,

guess is as your as Well, ours. good

factors very hard our equipment external comes and that capital to see We of when are and of improve XXXX, But continued processes, investment, through electrical our to that efficient in all working base. all of the our it other robust see to continuing transformers it demand, systems to will those of inflation customer our impact deployment equipment, clearly, mitigate expecting we particularly moderate. hoping are and to particular on steep prices

we've count too doing, what just significantly, can't it's the we can business. head been just hard. rate X%, count grown the right? I kept guess, our XX%, we're scale We've pretty in flat. base getting But right, grown So do we've deliveries And customer right?

against macro focus that's a that continued we difficult environment. So the have

next [Operator with of line the comes Our Travis question Instructions] from Miller Morningstar.

rather then that or XX are you you're following up XXX? the and on that to in technology out XXX that that the RFP differences at there come. remaining on XXXX, up then Just and XXX XXXX When remaining, break -- the to looking projects that

about for agnostic, list and It's we'll the call and see it wind now consumers, that's -- We're next There the course, an of call addition solar, And the when that's right? there. more and is Yes, sets managing announce acknowledgement substantial what the We're the pricing for upstorage technologies. some and year, load in middle X for right? July the I'll technology one in project integrating Travis, there to we the of first end and opportunity crank working are, them pointers, to in battery there. wind, So the additional half. turn possibly all right RFP is we hope there by the it, the of on in grid this on efficiently.

So we diversity expect to we as go. see more

renewable for that be, of or lack term, I right? better guess, anything though, traditional like we're would not management those a energy. And load All

dynamics evolve, will so in, decade there's the unfolds. think but procurement that come I evolve going dynamics process. this additional this lot competitive also as a on, could part could necessarily not think of here, we DER as see players of I

for So and tuned that keep you updated. stay we'll

load at X.X are assumptions have underlying And or what's within item, assumption that then out the in the number as are range you to assumption, in same growth? and that term, probably retirements shaping provided X.X. XXXX load thinking other But What range? you one are that there number, embedded I'm type there longer through that that

not it's any more great there's ever have in our assumptions assets. question variability assumptions. and No, industry. we our a of are forward retirements We of than of any of number do those And as a any look we've there probably in seen included

and on our Colstrip to With Oregon. in here of that customers delivered planning of out getting investments are our energy having not the we exception

little also bit to and earlier your have, Jim. a this We relates question to

when are advanced We fairly to a it comes power virtual plant.

will So of incorporating our own we we own, future. and but the own energy some many which distributed increasingly customers resources, in which were of

electric of adoption also hedging load rapidly a of and We help some of number the our of management also have in programs, which looking at this with we're area vehicles.

is service of in Oregon As and our of you top the know, penetration EV one territory the country. leaders five

time. and So asset forecast of are our our forecast items growth number impacting that over there's load a

question Suisse. from Nicholas with of line Campanella the Credit next comes Our

a It's Nathan just to it you I assumed still PCAM Nick. haven't if for Richardson in the wanted ‘XX, already? headwind that baseline there? what's is Is the for covered ask, on it or

As we forecast the PCAM, we our look tariff. annual update at basically at

particular look important XX% XX-K think and you in is hydro hydro based do a I forecast. northwest across look as our XXX%. comparison at conditions. where the you we're see power at over low but disclosures, no you the entire roughly, saw the it's we in it's generated in XX%, and are to the a last others costs roughly that at little to year there's of So low, energy where and the bit can region, it and our you in note and with we're Mid-C that's

for forecast that's into think levels the terms I balancing important of hydro have calibration lower so and XXXX. those we our year risk coming of energy And of in an prices this sort

it we to that the year which of is the to based call the way if it baseline, one AUT, want entered is on So the shorthand flat you PCAM.

of So obviously January that X. reset early But at are are year. essentially things last change. essentially We we the saw beginning reset

James Guggenheim comes Our of the question from Kennedy next line Partners. with

is I the RFP that, for apologize slippage that items is What that the little this would guess for… the were the drive itself? of schedule rebid, but XXXX actually and bids is the deadline I it just driving process. earlier, it if missed the I a RFP what

been want know, supply normal of negotiations You solar time just a in commercial across had projects been it's laid of number We've a have extraordinary a that make of all as as environment and it's recently that And we we there, challenging these that laid certain country they challenges. chain nothing as have the negotiating are projects unusual. delivered to but out expected. it's will be

always grid. in also grid the the we're information Yes. all. what they're at And sense of It's I'm on a So to projects we question unusual we're with that those needed right? have. the is looking concerned vendors to the and these of are projects, latest work around not of [indiscernible] a modular, and able few batteries [indiscernible] at And size James capacity appropriately kind months, the based storage

more information you that. time, But have about talking design as grid timeframe. the differences in you can around modest in So go and further actually we're you very about

ownership XX% I Slide you just question. of the XX, footnotes, kind just like arrive about then And nuance midpoint. of I'm really number? one just at I how kind but of one of that curious, you did guess assumed the

we wanted back, understand provide of is. what the we to this sort and to help illustration So opportunity you stepped

somewhat we PPAs, the solar, rest community But what happening third of DER, name saw conservative. the into market, be it. agreements, you party also wanted mean, in Just account the take to I

look what need to goals we tried possible. would decarb do the to holistic make have So a at we to

of we utility that that. more is a her over successful generation, I in holistic on more have. here add won terms of of pie let percentage, of energy been and XX% onto we've And Maria the think, history time, But because I'll more that so the I this we would scale say piece much a higher this, mix

had overall think take and we've we ourselves of because it's I least the opportunities number builds seriously through cost sure need we very make the that as foremost bids ownership price competitive portfolio. work surprised cost leased and be with sometimes sales the our functionality very the And up or as risk. hard We've first And with set to impacts RFPs. to where customer well are

always costs of a will lowest as challenge we something is vigilant be past. have driving which in a and constantly in need to is their on. transition hopefully, levels, energy we which competitive, important it's through stay successful been we So But to highly as significant the terms

further the to to in queue. call like the remarks. I'm for back showing I’d no questions Maria turn now Pope closing

soon. for much your Thank We to us Portland very We very forward you look General questions. and robust in much appreciate today. you. seeing interest appreciate all the Thank you joining we

conference now [Technical you Thank disconnect. participation for may Difficulty] today's call. and you your