Portland General Electric (POR) 27 Oct 232023 Q3 Earnings call transcript

Good morning, everyone, and welcome to Portland General Electric Company's Third Quarter 2023 Earnings Results Conference Call. Today is Friday, October 27, 2023. This call is being recorded. [Operator Instructions] For opening remarks, I will turn the conference over to Portland General Electric's Manager of Investor Relations, Nick White. Please go ahead, sir.

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

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

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

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Thank our outlook you, Slide the by well key our good start as for balance all the quarter I'll X, Beginning you discussing us drivers Thank today. year. for speak joining to with the as and the Nick of for results morning. and

resulted I in touch power usage, energy event or major costs significant issues overall. residential offset cooler key tough second, For Slide in in from in growth per of This a volatile turn.Turning $X.XX million first per results will diluted weather costs. customers GAAP compares and congestion heat XXXX was commercial the X. diluted in and share. include a by it quarter.The a with each driven net transmission quarter, spike $X.XX reported reductions on $XX continued third to $XX industrial by mid-August, of share. we Clearly, income million or which drivers third partially load from quarter And

centers. particularly see from industrial to growth solid customers continue data We

growth X.X% with grown Oregon and much fourth growth Overall, industrial we both years X the is other focused to is We the of has continued XXXX. this quarter $XXX the first Act, only government to growth of and from in XX legislative through months CHIPS the potentially territory. over grants the through support in quarter. compared allocated the coming semiconductor Federal semiconductor but in State level. the from tailwinds our on the and growth load benefit strong at However will incentives state, higher The even PGE saw chunky has in There foresee third within industrial manufacturing semiconductor Federal significant and largely Legislature us occurs companies. sector.XX% sector the service that the million not year

investments, officials Recent X,XXX and As made announcements have saw we rooftop in distributed commercial reductions as energy summer, cooler quarter, are jobs. weather a by the been Oregon the result compared as announcements solar well state of new $XX projecting late modest third, new to and energy over adoption. projects energy last also driven in Intel, by use Microchip efficiency, overall year, and in billion residential these Devices.In over expansion and Analog

PGE of from Given the third adjusted, previous that peak higher revised long-term heat load weather consistent set year summer with surpassed planned X% we was full new XXXX X%. second guidance expectations.The growth stemming costs loads, lower our a power have than by our to driver our quarter peak quarter record-breaking third event. results

given per in megawatt issues day, hour During Mid-Columbia significant of this had pricing time, nearly we also and $X,XXX constraints. this transmission peak

generation energy performed with Our well, contracted well, and plants very our well integrated we're supply.

reliable that and still, recognize our ensure helped power receive our customers thank fuel response throughout who PTE overall purchase heat significantly.I customer safe, meaningful increased demand and wave. want colleagues saw unrented the We expense Even power and continue to also to reductions. to

to the year. mid-sea $X.XX share. XXXX a per to We gas we $X.XX $X.XX XXXX result results, reminder, for a previous range to now are hour. of conditions.Just of our narrowing compared per as results peaked rose per power prices third fourth anticipate expect $X.XX guidance power per the share the prices to MMBtu $XX cost range quarter quarter normalized of fourth our improve and results the We as to as quarter megawatt $XXX range of Given to regional impact over to on costs be average in power

risk of including more support addition start power announcement that and conditions weather of resource in construction. technologies enable will with capital to progress as reliability has conclude and from and Federal our we highlights transmission favorable anticipate as with base other challenging year been well well Joe to the on expenses the we order will continued quarter capital online to new AUT, our pleased continued our in PCAM very and important hit These our walk and on which XXXX touch we to are addressing with I'll the update extreme and the investments, negotiations coming third which mechanism, or and significant quarter. remarks. notably framework. projector GRC, year-to-date finally, as rate a Overall, as track expected focused our and several performance on include and parties our and we previously are XXXX while cost recovery reduction to work management his power recovery acceleration Overall, Wind battery grants, resilience.Two the operating our of in fourth customer quarter announced through the commission case expected step way in effective in which first vitiation grid An maintenance costs safety capital targets.Joe detail. weeks. Additionally, ongoing projects. cost importantly, storage in settled fourth improvements, wildfire management expect programs this market for later through mix tariff are more O&M a will relative Clearwater our come the growth And our greater annual on cost

also We ROE. capital and structure a a maintained XX-XX X.X%

cause.Lastly, received under costs the we deferrals approval automatic $XX wildfire million forecasted mitigation in collect adjustment Federal Additionally, to grants. amortize wildfire and

with are and to clean with We the that the partners. transition upon build doing in announcements our the energy X regional advance Department collaboration pleased Energy work and of we're excited

grant the Utilidata million been consortium NVIDIA of Deschutes announced Butte XXX grant support a Line partnership Bethel-Round to project and reliability overall Pelton DOE Pacific the for X to tribes site hydro and DOE. And that rights with and The First, the management. have grid improve have Coal Warm nationwide our projects to upgrading million co-owner for the in $XXX along negotiations a KV step green Tribes Springs. facility. and Northwest hydrogen CHIPS XXX decades.Second, PGE, Hydrogen is awarded water smart River Round production to Butte the Transmission next Confederated visibility, and Plant to for Hub partner grid the $XX the contributing forward Boardman with of PGE a of is XXX-megawatt from our move the projects one was lastly, former Association's

cost million have $XX capital the generation. pursuing over working XXXX the that key an are award to and pipeline. made the negotiations We just in also create for the to in benefits for challenging and have progress projects as look represent towards incremental power These support still recovery region selections take additional in operating as part momentum in other come.In on represent These million important projects well will Near-term growing proceed.We settlement. as grants and strengthening years third meaningful and summary, communities be conditions we projects GRC in submitted determined as will green to of hydrogen additional the despite in customers projects quarter, another opportunities forward constructive mechanisms $XXX start. off agreement

laser-focused of the on remainder the execution is for year. team entire Our

growth underpinned by customer established, to plan needs, and energy is ensuring transition. the long-term Our resilience meet increasingly investments growing leading clean grid well

and to walk progress results. earnings investment our over in ongoing it who capital X% through Joe, will XXXX that, rate Our you beyond.With in our growth recent I'll you. long-term reinforces turn X% Thank confidence our to of and financial regulatory

on results I'll capital rate and to before Maria, providing our updates liquidity and Thank everyone. and good financing.Moving you, X. Slide case, morning, QX our cover investments

load grid third on in composition, results economy plan. to service of continued strength. capital our continues conditions, quarter The and market our dynamic power territory execution and reflect and display emphasis customer weather resiliency Our challenging

increased loads deviation manufacturing. weather XXXX of witnessed short-term Maria as industrial semiconductor XXXX. the was in high-tech noted, economic have which signaled year-over-year benefits our for was focused moderate could As non-weather-adjusted to severe QX On continued, economists full see long-term the August.QX quarters, result XXXX compared in in regional region.Unemployment footprint the by quarter Total September, were the a our we a second hottest particularly Many Industrial anticipate growth as region average X.X%. national significant growth and load X.X% on on average X.X% first albeit large a of in in basis, temperatures our more record on decreased investment region. QX projects growth than the trend. less a despite in third area, across that sizable weather-adjusted quarter our load a companies as total rate hotter to at below X.X% our upcoming

growth resource contributed also efficiency cooling significant this of X.X% XXXX. compared increased cooling XXXX. X.X% commercial weather-adjusted and September, witnessed to in increasing X.X% adoption load and see had penetration X.X% weather-adjusted increased this DERs and Residential decreased we days to increased X.X% which as decreased Industrial among X.X%.Commercial or heat continue We days load than load energy degree but distributed QX or QX fewer we energy efficiency to weather compared growth a customer X.X% XXXX, summer, milder Residential weather Fewer decrease. XX% degree or customers. adjusted. in continued energy saw to

to have compared years. as the continuation mentioned, observing we this that growth Maria been temporary view a As cycle of we quarters anticipate moderation in previous and recent

decrease our having power and decrease impact peak to XXXX remained in resource XXXX that the quarter.I'll we higher a the experienced was net cover quarter heat operating than with We year that $X.XX by normalize on due and conditions quarter-over-quarter. driven higher change earnings of the price generation headwinds annual loads. during costs quarter, scarcity conditions unfavorable were surrounding QX driving total in the attributable in primarily update commercial cost in elevated, August from EPS also changes EPS our this is an items, a driven for in anticipated costs. of event also deferral-related period were were by challenging challenging costs in There reflecting financial to Third performance $X.XX residential power deliveries now $X.XX $X.XX lower tariff. acute average decrease maintenance market higher grid expenses, the power quarter-over-quarter combined power X.X% in comparison.Current revenues in decrease and deliveries, with cost total 'XX a of the

higher $X.XX of reoccur, decrease not did which part X a in due by $X.XX draws summary XXXX projects quarter. expense which due of to to amortization We equity a of in for also prior benefit to impact from trust approval. $X.XX and medical to balances increase items.Turning saw higher from income on the included higher of expense short-term our year-over-year. interest items, and $X.XX last to and had year other to a plant we nonqualified Page balances decrease case capital impact remains from and A the increase which AFUDC OPUC balances of miscellaneous construction energy and due $X.XX debt $X.XX gain decrease long-term partially dilutive forward date, from carried a impact subject other to base rate the the from other decrease depreciation general clean a from for A debt offset due occurred returns on $X.XX sale, third higher buyout the under mid-July.Finally, planned higher

resiliency. earlier, highlighted maintain investments are recent a reliability settlement Maria and including recovery system on remaining the operating to we the costs As pleased of constructive and items, reach capital to

have and Given This impact the weather the resource cost been in event, update and the climate regional including that region, change represents markets experiencing. heat solution reflects of recovery to a the constructive frequency and historically our magnitude constraints better framework. of event we August provision reliability contingency dynamic extreme power our

January the forecast docket annual coming effective A XXXX. including in steps power updates is Slide decision capital XXXX.On cost in by December November. will but to rates our commission X, come weeks, current expected could which Additionally, through sooner continue the shows X, in for

scoping QX to project continuing transmission call capital call in PGE projects not to ongoing. provide that are and the robust update will portion mentioned of is QX receiving yet the evaluate February. forecast as We negotiations I plan that grant a note in figures also funds and and I reflected on the Maria these are in emerging

plans officially final in in project a once place administrative first submissions half our in a are early to XXXX, to year. forecast steps selection the our in Its to liquidity the coming worked expected summary through the Project financing. crystallized.The for in will projects take have launch these X XXXX reflect will We with of weeks. shortlist market is and submission has preliminary and of RFP anticipated Slide after next mid-XXXX.Turning of expected shortly

from while strong and additional liquidity sheet, ratings to also Total credit balance $XXX $XXX unchanged outlook to mid-August, is disclosures. remains our September facility of Our million available investment-grade as from $XXX extend to stable credit upsizing XX, existing credit amended provide our we flexibility. the maturity revolving previous million. In XXXX, million

over remaining be XX, September to the third availability feature have said confident XX-XX ability debt continued markets August, strong the Equity program. capital Careful financing focus has our the $XXX our towards Forward we ATM first $XXX as a executed we under working previously, time track remains in thesis diligently the continue in recent the that million ATM structure in into our of remain for to of and as sturdy to capital issued also management for million an options.Our We quarter.As a PGE. quarter. the the also to in through as flexibility in under draw of our delayed the market $XXX manage reflect growth are sheet dilution our facility $XXX entered million sales late authorized continue we important reflect million access PGE remaining investment fourth including and that $XX that interest total equity was agreements we to execute issued and both results third to year and million establish continue $XX ongoing in July, from the investors we equity offerings. of and bond purchase all year-end. We quarter of a They issued challenges in maintain million as with under foundation balance agreement mortgage to I forward

of the the X Some XX dissipate power in Slide cost.Turning headwinds quarter. our months including are of the QX faced in for have through last to year, we to fourth the expected for outlook

and saw gas Maria earlier, Northwest in As extreme weather, to gas to touched these conditions, compared levels. the pipeline to factors, cold fourth power costs which especially higher in anomalies is prices power the chart. on a XXXX, storage more market point power reasonable Pacific AUT indicators quarter QX disruptions Due were which to regional meaningfully baseline, drive represented considered and than

We expect of corners year-to-date cost and of are our component to and depreciation, of to observed leaning a growth, execution in remains savings all plan critical drive business impacts continue.Operating load results. expense dilution and interest our

expectations expectations, strategic of in to optimization we to fleet. annual position. our third This year Due come results improved generation allows better dispatch our expect are portfolio full resources, our we which long-term full in quarter mix revising plant in quarter the with and we our guidance being expectation. from line includes to ground resource efforts, expectations O&M these improved in growth weather-adjusted current that generating of load load X.X% below cost is up to allow our compared X%, run to Given year rate.Finally, fourth to X% below XXXX outage our us will availability make our an expect that AUT power

have and continue which growth continuing strong concentrated to among We projects path. digital their incoming customers, are high-tech visibility to

to per reiterating in growth cost XXXX.As power guidance such, narrowing third through we area noted confident $X.XX the in to to share of guidance our $X.XX remain full are and we the our load reflect earlier, diluted year Maria challenges profile long-term earnings experienced our quarter. in are As load X%

clarity, service a results have shareholders. and expectations and range.XXXX power give in X% We a pivot guidance fundamentals and our customers sharpened and and beyond. growth capital for reaching key pipeline costs of renewed direction earnings confidence achieve our investment in XXXX us sustained represent and O&M X% regulatory value load our to for point Constructive territory necessary execution anticipate QX drive robust continues this towards solid growth will to to for

enter the energy to months affordable core mission, XXXX, customers, we reliable we ongoing our clean, of remains enable will ready for questions. furthering this focus and and final our unchanged. for forward We communities As providing prolonged look of which shareholders.And operator, now, value are

Instructions] [Operator comes from question of Our first Guggenheim Partners. Pourreza of line the Shar

the of we're obviously, in you've a on the rate months few materially? I we're mean, weeds you update is I spending and slides. guess, about Just the RFPs. $XXX Joe, the how now, been looking you longer-term up a assume for at should what and it we on get by still seat just know, directionally, will that I declining it more mean maybe into CapEx fourth profile in run fair kind head of but an elaborate the as going getting, to think Can you robust? right, discussed profile bit that we rate, quarter? run XQ, on regardless step to CapEx in the little million

So a on some at grants. grants as that's transparency -- opposed for possibilities more we've and through be that of to to I'll for part capital call longer not plan. clarity more opportunities, more little well. 'XX IRP can has the relatively what to upward way weigh also that give the when to that there. business, that a the to come waiting that base the transparent our Shar, flat the we're pressure and it what we how is most as the base we it get transmission base, unreasonable of say relates what is there, would spoken I and be it would as there's as to a we well I hopefully the you think here little potential into the as as renewables see look like I the will more through we recent get supporting and outcome But we mentioned work In as our the say, should view RFPs the It of provide Maria that that transmission impacts as years further case say a out rate relates the plan is had robust, as is, it before

just then Joe. the And side, financing on

how guess the of for I you under at an RFP it's I right? think the obviously, that wins any at point? So Just next this have next round, financing think should kind equity the avenue about forward sort Is we ATM awarded to of you're look going now? year,

ATM the a from to the business these the it evaluate that significant But RFP. we But much think expectations episodic about are right? issue, based I starts far. ATM to with and We cash continue -- our I a that supporting will an approaches. and having from relates support currently, and from continue right? think still, haven't I so the to others as the to us, base base of size of the ATM on on basis we an left transmission The of any Well, Yes. an we'll on as based yielded from approach RFP we come outcomes evaluate wins that could any evaluate the of come to $XXX million as it mean, then flows an have

of power volatility? impacted maybe me the And August? mechanism like aspect is it cost do got event past would say [indiscernible]. a EPS you into deeper for and place lastly, how For the How if haven't just for extreme then see example, bit just the that the tie insulating you actually let just you little

All right.

itself event X come is understanding, finalized PGE's And was on balancing not But the based there an an of declared into price assistance event. if neighboring resource be that's request day be so would our eligibility so a evaluating yet. mechanism play and would authority items the that which -- would definition would the there event, as publicly Mid-Columbia of that the ahead to as then adequacy index

be. the in would August sort So heat believe we event applied that those we occurred if definition. definitions those, triggered what we that would do believe the Shar, are of have

declaring events our We if also 'XX, meet to impact have defined consider believe But that we we just been that We're be. believe haven't But down, are there into order, events significant value incurred or the once the that there to that. would average hasn't years, the we that that of discussing clarity. because as finalized, that.So not Yes. have event not a that to 'XX that is of an costs year been were heat least something look here, would -- are these Yes. events there? the over was have not this point the a several or at we're to do were orders that what years last current average come annually to of and that at of in commission what portion We'll if would pull we and we number looking collection prior we there Are so? occur would issued something potentially get the year-end.

question next the from line of JPMorgan. Richard of Sunderland Our comes

correctly. precise And does 'XX A that lot kind just of to you're more Is Maybe how I then savings XXXX were was term? specifically more well. the I that helpful and this structural starting of I color XQ Are just standing of up to start the of And here It you at O&M, quarter planning on flow help looking but guess, the versus of sounds year. to as effectively, be sure this the make and through these beyond. into the case? any year? long versus, the like savings kind [indiscernible] on some wanted at on

one? to want take you do Joe, this

Sure.

O&M. So to relates as it

benefits that call some a beyond, what we the for as think expectation the year, quarter, I'll in at We reduction So throughout to overspend over. were financially us yield third throughout I the will been see the work doing a some believe to do in full our When and us we're April but yes, more still our sort run year. reducing we've that O&M benefits we of currently year. below to expect have fourth O&M so expect yield cost. our savings the in going structure the management items more we same would forward like meant run we business be we in Those These the some mean, are onetime but the to we going But year, not for structural to I as savings. manage a achieve place. and forward. quarter, structural will to relate we are of rate our our, did costs items say changing way to our

So we expect continue. to would that

Richard, one of that of our couple I the it's at look we on. statements, that a external things going as you think important there's acknowledge things

see storm really in put our are order The an minutes is was was from efficiencies, and U.S. our the scheduling years deferrals were the increasing overall, first were some line. [Indiscernible] customers And our events And do, saved most the Joe system, output that alignment duration events was recently mechanisms frankly, all forest We're others. PCAM had improvement is interaction of see we've better.You really place. X.X And of prior of through XX%. first important our XX% priorities. mitigation restoration case, around a what availability We the can prevention that wildfire seeing amortization service and work rate entities, there customer just the a combined that this X.X%. was from to crew alignment see the third we quarter. we do XX for of rate status of technology management with in distribution in you were XXXX. speaking other improvement work, and outage so million O&M particularly contributor and the quite ongoing year-over-year. using That impacting wildfire percentile. But huge ongoing driving costs, reduction plant with terms just can of are can our things local vegetation just the ice That in as

with customers real that So and amounts they serving better area. there's a to cost reliably seen expect increasing to throughout more our we've operations, extreme power our only of come to to as but not events structure impact our

out a zooming the work. level, this speak your this is years. what prior focused little and on bit overall? work It's summer the of you on It's sort up focused Maria, issue. terms high obviously brought you're an to could wildfires been with and in in wildfire topical Maybe what to and for terms of future of you a industry industry But

share where if there's you anything front of curious on you terms EEI currently? are Just can focused in and this

Sure. It's me ourselves And first a question. to turn let good internally.

We had that debris through permit access parties, of conjunction with The an practices, particular in U.S. are the the basis.We've the I removal forest its the way have local expedited Ag in we where working and timber absolutely working bill a technologies share with it to improved think, better use example also on entities management. cutting-edge reform technology vegetation and state that's Congress, is truly and really whether where able good other some be our where agencies, on includes national, we've we're

collaboration years months. practices. down permits to And reducing our several Service, and Forest from our accelerated improved really

well need to across do level the industry more. priority As look at clearly, and level, with the as we high a It's as Federal both the we State regulators.

actions important that really think see coming ongoing And so support service I you'll the reliability increased that provide. and utilities

maybe recently And outlook is your that Is that you update. State it? work refreshed then some last that are harmonized? one all have additive latest that of me. industry around to IRP the one semiconductor cited and even The as you there emerged elements Federal this and for Or

is term. of word use the really harmonized think I interesting So the a

and smart the the partnerships change. Department way of has of use grid the of We are seeing NVIDIA supports you and of Federal out appropriation pace take all through then Energy done that a tribes, we've are difference. million CHIPS a semiconductor what And the State between Act come the clearly, the legislature's the force of Government $XXX programs at the making seen Oregon task funds. transmission, better and to look But of a of really our matching that

ranging from majority that just funds for the you a a is the region. those a million of just about dollars Portland company of XX% opportunity $XXX this combined You some are forecast, of projects in can And in And in companies technical semiconductor projects important to an decade, at our million. on workforce XX manufacturing as but General for which look receive the focusing Electric country. universities, also is the service list, website as not. investment of will re-shoring a extensive included pretty on if find the couple the of next support in state our And actually really XX% Those that are tremendous with the strength our territory.So region. for is a in and it are reminder,

a real state strength for and it's [indiscernible] So our company.

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

to talked getting Perhaps on up do a the addition in to here in mouth. line CHIPS same around to of commentary X% there don't in term? sales with previously, the the to want between see that weather-adjusted you you the sales current about itself I confidence How about that sustaining mean do the the the profile really of kind we long for, customer more itself question sort the I earlier, benefits and moment having having the here think, time, your sustaining when growth connected the let's of of X% and tying at think put words that year of strong term? higher quickly. some some you I on growth, sort pick last how of and sale time that a Act still medium levels up growth some just in ago normalized

blocks, change so look Yes. and of and been I period of at time there's No, no. We much It's interesting. building opportunity. really a as it think

So has most paused from has like blocking a a seeing and first economic are expansion. What And see benefited we tackling in-migration. all, we centers growth to territory. we that state while region the of also is service digital are that and continued really recently, our data increased continue and across strong

those are important about is things that not out. built One built that's of yet the of many that facilities but

opportunities those down from things. significant term finally, a the a really of the quite you'll even longer with graphics the coming well over the Lam built And out so in and for utility today side [indiscernible] to really will to cutting and And tools us infrastructure who -- comes for development number see changing a semiconductor all be manufacturers of is game the this quarters, which serving. research is as some silicon to as growth. over the or It's able to already we truly the helping will years as see much like of quarters.And then State of capacity of way months opportunity the such out and are manufacturers there, everyone manufacturing serve that the the or come can which And there's others. bit and decade. are actually a and through And and

Yes. Maybe that. just to clarify

XX... confident your light on pulling back in of any not earlier of You're the

higher underlie No, we with we in aligned think our XXXX -- And X% it's very growth our of that. optimism even really long-term think confident my for And guidance feel comments number, X%. than I I the number.

enough. it's here, keep in just just in know reconciling aware 'XX, hold read direct about for? be should I alluded the I to O&M if a levers litany read I'm to right. Fair we terms lower there near And be provided long the you otherwise or you longer of remarks. you But is can, whether there we pressures mean, to any ready 'XX kind pull here. forward 'XX in to you trying the Is of? How commentary that speaking should weather-related some here kind or as through, term. of of I 'XX, guess earlier. end that the the despite term it then term [indiscernible] at of about All the to more and Okay.

year. on outlined, X%. efficiencies I long-term XXXX really we confident organization. But think No, across growth said, management as in cost efforts focused we X% have Yes. very the always business, how was constant remain drive and to to we've we customer rate And an investment prices Joe of the manage stay our as

in on tell? turn I hesitation can from no what But 'XX

No, not at all.

next of Campanella the Our Nicholas comes from of question line Barclays.

$XXX power what's a and that's simplistic? of too pieces the XXX that million. there's is to for Or increase, just you X the with line? I that of the numbers, net lot costs. is the those power called revenue falling guess But I on bottom the moving know out costs

talking we're dialogue. I'm growth rate line what would of fits And the the here. bottom a we're XXXX it satisfied fall call about think, I that we obviously net really itself the case But on I that the calculus overall to we I our power do comments our pretty will what constructive is and costs. I within not return as net was our sure specifically, I'll math 'XX. to the performance Maria's outcome And our long-term -- think on to build of our recovery, plan. the load case assets have, mean that the here

little and quarter? an mix if third but And just what's you load level driving a I quarter, demand then I'm could your missed expand on fourth confidence for the issue why just was sorry that. for

Yes.

from that to commercial relates really specifically one it in third more the summer One things heading as and X think was efficiency. the mix overall. I larger. more, to residential And quarter, is the occurs the occur right, away due So it's that period the shift energy the one towards

customer that efficiency I penetration But continues occurring energy summer that We energy was X.X% and that item, as pushing at But level down are more efficiency from commercial have also that and the commercial the customer penetration little we we rooftop more level. it. of that both solar that the there overall just driving penetration on had residential load. was growth. anticipated, at a the and pressure to that The residential be that believe growth it's was DER had and

the aside, there we But about? about the be by your thinking on pull need to Or you on get XX%? how more, me. ATM just full thought I'm And of correct Joe, you please down If one the that just then equity. an the just wrong, end the year. said would that I as that equity than plan ability with the do of you announced current to more kind to is CapEx to date, think this

relates So on as pulled specifically, have to full. not the we the it ATM as down ATM, a

have entered disclosed upon. we we million into we entered we closed into of believe what the of on, have none about agreements So is have ATM I we which -- $XX have

could cash is the -- don't million of with market.As right, a sure it the part entire $XXX-ish standpoint, into to answer from make ATM it you outstanding capital. I it relates your relates flow take to the second to So, as your question? say left is to And just

just of it down 'XX sure, to the year? could further are pull Or not I or you would that be into whether beyond? end by to wanted that the you and leaving open be feathered

I obviously ATM ATM. at open and that any the our have we and the any We have are would for say needs. not needs the ATM always be do with we next year. our least have be opportunistic don't would equity. equity current this that And for needs complete would current for But year, we

Our next the Orrill Gregg UBS. of question from line comes of

So X parts.

place? of ownership are for in how current do gets just First, driver about just to a you number, you you I power ownership, you level -- What the range secondly, there? $X.XX but renewables kind guess? appetite $X.XX thinking how year in of And the sort How not think do putting then your regarding and maybe variable about in on the costs. at that RFP of

Okay.

let do first Joe then And if fill take me your So don't adequate question your I job, an in. can second. and

can I about that can in already $X.XX what see of So the to in place regards the with to sort half of sort would structural. of power quarter. for that, numbers, we have roughly it $X.XX, costs, AUT in call see And the we you

of work The and to that can work fourth regards would see RFP not to lot that those unusual the do. be that we other we issued we'll those yield challenging shortly. We get every activities of do part is and RFP, confident feel there.With we day. be pretty a the have And that is what really the quarter for kind of that a work for to will results kind

there able out the will full in. bit to Those to We of company by list be of looking a this have the end to would that the but timing short put be just of we're in opportunities hope that make RFP participate is transparency, different year. a final sure for a to little

very The lease by that lowest ownership has time. first that with And be we able competitive we cost risk costs, XXXX. to our We the half, customers.And some drive partners move that to by as that obviously an hope sure been negotiations, of And And will frankly, so we make probably by forward. evaluator are short good have projects. been driving projects being manage risks. fortunate company's we've be finished pretty list for submitted independent would really the the end have far would to quite regards to overseen the able

same would there's as So of have circumstances opportunities. lot into beyond. we Clearly, hope we and to the enter a XXXX

of Our Instructions] [Operator question Asset next line Levi Management. Hedge comes the Hite from of Andrew

Just few mind. a questions, if don't you

for the hurt Just quarter. August bit the little on [indiscernible] a things that

have of the about think guesstimate PCAM would event, more just would just I'm numbers? by for but a kind the had place, in the you not you settlement that how we guys, curious. Again, that And for quarter, this that If event, it's on just for how of but played out?

on the like this sure been. quarter, we'd signing be of believe and though August I could the would not and that be sort I unique, so so for we're would make year what Yes. we're commission's earlier, be are definition meet but to if have that we Andy, to event or result and was the right would days.So event the is But would even comment, the numbers yet, here results definition. now, for each the to it ordered events to been see but your that over about some definition and -- would meets was vague, here we is although before event we if to believe this so there were there believe there of there And our impact say impact treated results definition, -- order. this about event the over XX last 'XX we back -- But to some to Andy would aligned not XX -- calculation positively? not positive the we with hate uncommon would said 'XX, declare commission meet from wait that finalized by RCE the Each I be still have what to an is the definition some do unique.

Andy, this have country. to cost utilities that is mechanism across we is were a solid first power other comparable step as to the

Okay. the we obviously, And as the fourth rate is question something improve I second filing to have CapEx. my And wait guess next once And for to transmission try that's around quarter. again. well to for

in strategy the and kind on of and talk the play much about deploy But one may no with a the transmission are other involved. from Because how CapEx robust there about bit update talked capital how being more ultimately to you to a want that RFPs RFPs CapEx transmission general. just You into your can you little predictable? obviously,

our thank you. look countries. important Well, and our territory of of other rights looking utilities of way. existing electricity at component. the transmission to within across particular, service reconductoring. the We Most use in core at service projects similar them When or we're strategy, transmission And use, adjacent an territory growing actually of we our Sure. that Many renewable them look are at are we're territory. clearly, service our is to increased development

overall facilitating we have And line relatively we the projects more have all to will as at territory permitting Federal Warm Springs in a the encouraged work. to do. the competitor the will will reliability. easier the There's to Pelton with important we front our the move no with with regards within Butte It's lower And level risk And forward. and partnership forward. in discussions And Round whether projects.And as opportunity build really transmission. we so enhance and decade that we we're we to a tries move question and build us growth as it or as siting of of well out execute service usage, those better reconductoring they're very understand the faster significant announcements by customer of transmission need easier that making is in

because up back right? I'm hit pretty of to honestly, me And get PCAM wondering couple my just ID. here A Okay. people on honest, to

no there's sure make to want just confusion. I So

or variable power hit $X.XX the net from $X.XX So negative variable costs. quarter-over-quarter

-- helped people because just have it's it, it that, should and that think not we that has some like saying I simple. Or of PCAM where details $X.XX? and modified the that getting how negative that's PCAM? not but are You're is at of Without into $X.XX that by been not apples-to-apples that guessing kind apples-to-apples, mechanism straight not looking only I'm

quarter Andy, baseline know, really year, so our we as PCAM, the each year-over-year relative you to set just $X.XX is the our performance in baseline. that and the

way So it is that quarter is but performance, potentially any power the that in inside to meant design the variable net performance. heat cost just impact no overall the identified by how to identify even of the that. of AUT of It our is

So yes, there's no direct linkage [indiscernible].

and there's year. part was reason year, last fourth a Right. because And benefit as such that's a getting the you hit a you're of the recovery of large this get such into large there now that why quarter, then

Right.

above relates resource in being some a disclosed amount year. we baseline baseline the the that is of the through will we it we reminder, an fourth move drives the mix so quarter by year-to-date, below that are expectation baseline, million As $XX as to end the availability to above what part XX-Q, from the as the of

For of right the right? Okay. And then as quarter, is well, guess, fuel I part fourth also it [indiscernible]?

expectations the to all -- consider between that what within Right. PCAM optimize call market of to to band allow block. fourth what and help That is wind, normal we'll move we'll will us key the and mix, is above pricing, us the to the weather, here normal our normal portfolio -- to quarter resource

are like have gets rate you've I shape 'XX. you great mean that I hopefully heading into seems this case mean settlement -- in modifications. it approved, had you guys beyond

the guys very You've side. any been on line CapEx don't if working and I them. you commission see it negative opportunities I you differently, guys robust know but... that's I mean, top do can got growth, don't supportive with and well anything

grants investment would it with longer-term very, the either through supported. out opportunities have growth the of constructive. to we spoken of through sort -- and plan, that outcome, the The continue the clearly that the say there's a came growth validate previously And to continue side, agree growth case was facts some that I recent during we on most rate IRP update to point. very we opportunities the be Andy, when that the quarter are or our continue

getting have ask hearing are so me weekend, a great But People questions, guys. Okay. tired I'm [indiscernible].

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

that The third how this the of was earnings mechanism in or would decoupling just of follow-on in settlement, the affected the the discussion and in quarter? some A that to general the some financials variability have year quick early.

It's energy where residential and would And had in the question. lower did quarter good small an see have third it we impact. a usage, commercial

in had say third a have it's improving previously, been is I'd had on and the has decoupling a good included. not that looked. decoupling weather mechanism We quarter, mechanism also have how step significant and that this first impact a would

the good. those And Very of extreme variability events the then capital investments variability thoughts? can that Okay. over you the either next some couple or again, capital Any reduce might related, in cost side? years are on there that of general, in make power

on invested also Yes. side, power the significantly PCAM. regards our We've a Absolutely. look in the cost we I at first our to had we solid step mentioned processes, people, with as our And systems.

don't and it have a we annually is update our update a work to able with to tariff more we're when case. have but those do, making We difference, annual rate

capacity our stability certainly, But our days, significant quite longer-term which provide battery impact X additional will storage around not have a contracts We the costs. balance power reliability. ability also able have necessarily more to and be well, between on progressing projects, to price are

move All resource region important.And them ahead well are discussions day market to as the of I as continues add through [indiscernible]. discussions that with the would adequacy forward

those will improve the of all together taken situation. things So

to to closing Pope turn now remarks. call for over the would Maria Madam? I back like

the much. you couple particular, Electric. with We in [indiscernible]. everyone weeks. weekend conference those to at soon, this who Thank be Have We look good us morning. very for in you appreciate General of EEI Portland connecting forward in interest your will Thank a a joining

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

disconnect. now may You