Portland General Electric (POR) 16 Feb 242023 Q4 Earnings call transcript

Good morning, everyone, and welcome to Portland General Electric Company's Fourth Quarter 2023 Earnings Results Conference Call. Today is Friday, February 16, 2024. This call is being recorded, and as such, all lines have been placed on mute to prevent any background noise. [Operator Instructions] For opening remarks, I will turn the call over to Portland General Electric's Manager of Investor Relations, Nick White. Please go ahead, sir.

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

the would we a you remind website this at referencing presentation on are I begin morning, like throughout be that we'll supplement investors.portlandgeneral.com. discussion, to The our our slides available Before to which call. we have prepared

Referring to Slide X.

will remarks differ uncertainties, We and results forward-looking may caution inherent you of our constitute involve and Some that from risks expectations. our materially this morning statements. such statements actual

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

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

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

good Beginning for quarter for then Thank beyond. and all fourth to you, results you X, and XXXX and year our outlook our Slide morning. discuss turn with Nick, full Thank today. XXXX and us joining I'll

per adjusted and the income $XXX adjusted net For we net share GAAP of in net net million million $XXX million compares share of $X.XX year, income XXXX. share or per diluted non-GAAP per of income per reported $XXX of share. $X.XX and million $X.XX GAAP or income This full non-GAAP with or $X.XX or $XXX

share. million $X.XX the quarter $XX fourth the $X.XX million of fourth reported from up For per of share, of we income per or quarter, net XXXX $XX or

XXXX diluted of X% in our share. to $X.XX remain to these While X% growth long-term confident per we trajectory results, $X.XX are of guidance and lower-than-expected

resulted period production. with wind very weather mild hydro in and low on impacted in low This record. the the To start, second usage energy historically warmest challenging and December the across conditions quarter

case. rate the includes portfolio hydro contingency challenges expense, and power fell improving as agreements, a part As purchase short. introduction power both the of fuel and event our cost provision megawatts to risk we XXXX of reductions of importance underscore This XXX this reliability revenue the faced and general performance the of combination, of result, capacity in as part The PCAM. XXXX our achieved the

actual These steps extreme costs and are solid in reflecting power events.

We more stakeholders also regional towards to look work with commission, and framework to other energy and have holistic working and do solution. a the utilities forward

investment decarbonization. our growth Finally, also associated to reflect customer results with capital grid higher and resiliency, costs continued support

investment customers; capital X third, to operational first, and led this growth clean continued advance reliability investment of Notwithstanding X. of rate have general Turning growth stage will we year. key to said achieved discipline drivers: goals digital outcome constructive organization. faced, energy consistently supported by be our second, our a Slide XXXX important in case. turn. will we the each high-tech these including XXXX milestones challenges touch We resilience; for our an be and that ongoing and I on in would across strengthen enable that the a by XXXX, growth, load year and set

]. federal expansion million was continued growth semiconductor Oregon's territory. at load which are Microchip service $XX for our First, is and CHIPS [ recently million This builds This we an the Brecha the expect for by an and ] on addition $XXX [ projects, others. appropriation their to of strong the of devices XX% investments of by state under multibillion-dollar in industrial facility analog state in supported $XXX million awarded Act federal policies.

to through well detail. as the will renewable includes and you more Our strategic growth capital plan this plan now Joe walk in transmission investments other our customer updates to tech additional enable high development. as

projects lower-risk territory service transmission a level, of high ] are lines. [ existing projects or re-conducting are largely our at within adjacent. our these But Many

Related January we'll RFP and list XXXX of the throughout to are first later XXXX, short the renewable online battery Clearwater storage and with we XXXX. quarter impressive an the forward RFP, project of look to Coming accepting in online into our And present out for currently this XX% last we our bids factor. projects in evaluating capacity development, later the year. and Wind came coming year

crews that support Now combination Utilities dealing and This partners widespread and more weather. damage want restore impacts led January, In the challenging high power moment of country and X,XXX to included storm powerful costs. on their take high X. the increasing thank to face Slide for power hard work a working to critical winds, we than and and are brought teams repair conditions, I of these extreme This across with severe a a ice very of snow of extraordinary all and conditions. in to deployed response. hard staff, our extraordinary acknowledge personnel, an equipment. to

the In us efficiently week, came about great are for customers over million multiple storm a most. This deliver of teams The to weather they to power restored of course and customers. is severe a when in together crews working example single-digit X.X our of temperatures. how phases need

ways in lessons Our we operational the focus improve a showing severe decade storms response up by to continuing learned well. experienced what to in and we're as in used from be is events. was in other informed XXXX, X This

on execution of the in efforts strong thanks to extraordinary team our leverage results our XXXX cost to improve and technology reflect streamline productivity. management, Our processes,

reiterate, our focused operational growth continue to this discipline. progress. we're execution growth; build we first, the As achieve to exceptional second, plan; areas in coming we of ongoing XXXX, year capital third, and beyond: X on to and main on customer look To

it you. long-term we're through achieve positioned you X% to Joe, will growth. who Thank to walk With turn earnings over X% financial such, to that, our results. well I'll As

Thank you, Maria, and good morning, everyone.

acknowledge and the with not through typical that walk our I to our we in I Before morning this practice. did file want results XX-K outlook, line

We for required completing documentation are just finalizing procedures. XX-K associated and the the compliance

new a implementation we software in ERP the know, quarter. may finished you fourth As

with morning. Tuesday on on filings the see holiday SEC With the Monday, you our posted will

Slide to X. turning Now

Our degree our had regions Weather XX% industrial continued with the and in growth, of reflect fewer historically moderate the XX% a of fewer stretches second than plan second on power warmest saw experienced meaningful days and year. load seeing heating impact our cost particularly foundation. had dynamic to heating on fewer Overall, QX execution weather conditions, compared growth degree the XX% degree days XXXX and XXXX. XXXX half the days cooling we results, our XX-year capital average. results We December record. strengthening

in was X.X% power ] QX -- cost XXXX, during XXXX. significant shortfall. decreased expected residential year. to PGE's X.X% of less much slightly the load periods. the residential level in compared PGE's energy weather-adjusted, by mild [ of count for fleet decreased these or these Commercial favorability to Customer XXXX requiring largely costs efficiency. significantly XXXX, X.X% were efficiency, by make driven year. driven versus X.X% or load or impacted down a headwind customer production but wind QX XXXX power thermal was the than XXXX uses these dynamics generation energy the weather were by challenged for weather-adjusted mild X.X% increased loads by year-over-year increased generated weather-adjusted XX% affected X.X% and X.X% achieving energy renewables conditions, as Ultimately, also up farms

continued XXXX, increasing growth industrial Healthy load X.X%. in

industrial growth. X driven have and load demand AI as rate last a tech we've X.X% expansion data the high Over compound observed years, center investments semiconductor and annual in growth

positive development in territory X.X% other our our Unemployment continue a While see our remains XXXX we to and total and sector X.X% growth points national trails region and broader of fundamentals load economic expectations, loads below strong. and private in and were investment load beyond. indicators, our in to outlook XXXX of service continued average public

I'll excluding by costs prices by and the higher higher anticipated to cost were regulatory and reversed a XXXX impact We changes $X.XX a than the load loan. the weather $X.XX decrease increase power increase power key collections, increase the headwinds deliveries to Power generations to on $X.XX driven this and a $X.XX experienced during residential program now decrease decrease cover year-over-year. in industrial performance EPS drove from load of in heat and costs EPS QX from of deliveries a our due factors. mild tariff. revenues, EPS, driven in Serving average update August event lower increase X.X% in a costs and comparison commercial financial due and the power in $X.XX renewable $X.XX annual that for the due in

expenses, drove Operating items, a of net deferral-related $X.XX decrease.

in year-over-year. Our nearly allowed efficiency and us management QX to efforts, cost O&M particularly base keep flat

the capital Next, the interest, execution equity offset on impacts a interest Wind our benefit strategy, including higher driven other a by of We and a depreciation recently returns $X.XX from long-term $X.XX due AFUDC to to dilutive investment, development sale higher driven $X.XX including XXXX Clearwater $X.XX decrease recur. the not by partially increase benefit decrease and of of $X.XX XXXX. in draws higher assets from increase plan decrease from in and ongoing due expenses, that amortization, higher buyout regulatory a did a handful including planned items, forward completed on by impacts the had

$X.XX EPS $X.XX After per EPS for [ GAAP $X.XX bringing diluted diluted impact, $X.XX EPS the settlement XXXX from a share. of Lastly, this GAAP decrease non-GAAP reach of resulting ] refund, adjusting us per to our Boardman we our share. to

XXXX previously and to line to to will million enable Warm by with to X-year which maximize XXXX to now growth. we value the tribes. Confederated meant the the improvements through as transmission PGE's include Roundview be and XXXX which system-wide will decarbonization alleviate disclosed and assisted our adequacy be capital improve $X.X These network project improvements estimates customer upgrade, latest forecast, [ will by This transmission projects emerging the contribution congestion, transmission Slide of estimated Tribes $XXX transmission focus address DOE partner, investments. upsized X, Bethel shows awarded U.S. long-time our Springs. look are with customer projections ] Turning grants also billion the on reliability, undertaken

update scoping and our estimates forecast. other grant-related for will reflect planning we finalized future are in and and this As projects,

support and system technology base have capital also our hardening expectations We investments. refined grid modernization, spend to for

the ownership the to the is bids, and and of to not recently competitive Project this website, submission by bid on on competitive or market process volume and launched as you selection process As which February bidding time went chart complexity submission, in This the a from QX QX. XXXX reminder, update X. schedule, our line we does anticipates dependent the is OPUC shortlist CapEx mid-XXXX. the to expected included reflect RFP the which shortlist The on RFP, related final will continues. selection is possible

a are customer and you with line In continuing for rate our evaluate the to group to benefits incoming a will keep increased the timing, on filing. process, regarding case flexibility put standard case base to battery filing. of improve scale we weight any projects rate deliver CapEx While near-term actions informed we

X, Slide for summary. $XXX and to On at available financing December XX is liquidity million. Total our liquidity

strong Our thus we've credit and under $XX our for balance Through have these sheet, unchanged any the [indiscernible] sale million credit disclosures. outlook agreements entered been forward into in remain XXXX, ratings agreements stable available not There of investment-grade $XXX million ATM. the previous draws December from far.

of practice green of issuing of look to we debt and As possible. the for to to where million year, remainder under XXXX, up our issuances framework we our we $XXX financing plan anticipate the continue

base mix On the including supports dilution and base a remains sufficient our our underway. helpful ongoing the capital provides access the capacity The capital that currently ATM capital battery equity projects ATM financing front, management needs, plan. under of for

over trending and in time and towards accessing maintain Continued our and authorized in necessary. structure when management remains remain competitively ratio confident a options We XX-XX flexibility equity key debt both of markets financing capital priority. our

RFP, capital and the from update on opportunities including will additional our investment strategy we to As our continue financing evaluate plans. you mature,

Turning to Slide XX.

diluted are initiating guidance XXXX to adjusted per $X.XX earnings year share. full We $X.XX of

market standing conditions cost we system million work impact expenses PGE treatment restoration a to under restoration balancing to power earlier, $XX As a on price contingency for the the this multi-day event alerts of MAC spikes, million of cost operating through under of the approximately $XX the million Maria as and trigger emergency filed service the ], adequacy are territory, event. repair Currently, [ to implications assets. reliability capital impacted system. we authority month, January on noted constraints deferral. these a updated of and we saw the first had storm $XX recovery storm framework resource region and our estimate continuing Earlier meaningful deferral The to costs

the RCE in to recovery the Under for pursue of PCAM. the mechanism, is allowed flowing XX% through amounts cost the the XX% with PGE RCE existing the above AUT, remaining the forecasted of

still are $XX between cost RCE These finalized, be being able detail million. the when $XXX report provide estimating XXXX million we results. currently are and QX to but We impacts will we more

from irregular comparability effects financial non-GAAP excluded and nature our improve are guidance results earnings the our the performance. and our of from last storm reflect to better month, to Given and adjusted excluded be XXXX the will of XXXX extraordinary the ongoing

portion expect operating mechanisms. We to nonrecoverable the of RCE nonrecoverable been costs, under which of this have any involve the XX% cost the existing and determined exclusion

drivers I guidance. of will on XXXX now touch other

said I service us territory load a assumptions in remains Combined, XXXX. customers highlighted well projects increases continued As in incoming growth we pipeline commercial by of expectations. as regional dynamics as our for growth load earlier, strong, -- confidence investment load long-run the residential and X% in These confidence weather-adjusted industrial our retail from assume give classes. and continued a continued load X% to modest in

vegetation reiterating XXXX. million, are $XXX we from million neutral net to offsets. and expense of which compound O&M of such, similar earnings offsetting anticipate wildfire ranging base growth load X% long-term rate million to annual guidance and includes regulatory items. mitigation growth We Net deferral of amortizations, $XXX O&M a XXXX through our compared $XXX of As items, represents of costs O&M the these X% range other our management midpoint

optimize We philosophy, managing with plan. also accomplishments customer give the quality tools costs. in committed our confidence while operating deploying to critical This us XXXX to remain the growth right coupled and investments productivity provide service in made continued and highest derisking

X%. growth As growth such, dividend to reiterating X% are earnings of our we long-term and guidance

our ahead, and shareholders. As energy our now and year serving providing operator, our are communities, affordable the ready our remains to focus safely unchanged: value to reliable core clean, shifts our attention for we while questions. customers And

first from our with question Barclays. And Campanella comes Instructions] Nicholas [Operator

a I here. the just in pretty guess material base increase CapEx plan

the of this understand, ATM additional now. EPS And kind new maybe kind where that help then with can So you the slides? beyond in that equity plan? there there $XXX for you've I'll X% just just And to million stand of are then CapEx requirements in you it X% -- us highlighted do CAGR leave

Sure. Well, thank very much. you

as for offerings of we the pulled what in And ATM. one And shown we we we what plan. The as is it or you're that including additions on probably it transmission to past and first, in to our So separated will ATM equity then had that increase and the from the you out our seeing, continue investment move future, where we're regards looking cover for forward foreseeable well. your batteries. the questions will the need

outcome we with case, a see us that to that which waiting projects end the be we that where plan We is really confidence and X% We growth that are require forward as see just up our moving rate. capital with year the rate you'll and given discussed. confident X% to customer in look for solid our potentially the growth of to in, RFP capital. And remain could we coming XXXX, could additional

Okay.

plan change base you to this just plan not. and right that versus base as we'll how funding today. can can the do message? comes Obviously, today, the see needed it's through, equity that own So the much on RFP the current Is

That's Nick. Yes. correct,

Okay. on And I expenses. then storm the guess just

understanding portion of you're that Just a deferring it.

the kind this talked $XX for about of to bucket million million $XX You $XXX million to costs. this then and RCE $XX million

non-GAAP the number is how from Just in simplistically, being excluded versus much actually deferred like 'XX?

Sure.

Joe significant region-wise, markets I to let take want outages this Joe? of And to were restoration with extraordinary on. event not things customer truly the that really efforts for the disarray. one me is Let an energy recognize only but in was the regards

reverse. this answer I'll Nick, so in a sort And bit of

to within be would -- exclusion mentioned expect we be that not operating cost, So the deferred as the and would of $X.XX. the relates deferred everything the $X.XX would talked that that to we've the would amount between that it be previously. we mechanisms X to Maybe X else be

And our Pourreza Shar next question comes Guggenheim Partners. from with

Shar. It's for actually James

just customer AI-specific being providing the side, color kind lot is created or some service is the give specifically term, longer has and customers? AI detail growth in start on across transition just you a Can could So it? incremental of generation data involved what if any centers. those seen in how by as semiconductor of you on are companies of And also us I the backdrop load territory see part your on the classes opportunities manufacturing

Sure. That's a question. great

and So the expect a we service territory, semiconductor on longer-term XX% decades. AI-driven manufacturing are both mega well the in construction longer-term growth. manufactured some as see of the Easier edge to And the computing. of lot side, we been have semiconductors of of facilities terms of is those our centers, center grid certainly, very for and The growth facilities about of some extensive. data construct to in is as near-term

and So we're computer us. shortage amount want are a from these seeing own demand company out XXX% They their interested reliability every as Most of no others. hyperscaler there. for energy. back and in as substation terrific it's frequently of just about small bring clean And cloud well companies transmission up opportunity additional really of infrastructure

allows move growth forward. it as significant we for So

For new our other provides and an taxes important of other for we we and reliability this in strengthening the property and significant resiliency our region, and the communities serve, jobs customers it benefits. overall infrastructure, as invest creates

at time line And I X. then would color more in on over little 'XX, on new X, regulatory Jan timing? rates, next assume or the your Got the a shifting can of this new I you. the get the guess side, your you prepared. filing for to week thoughts you Joe, GRC end hinted just the

XX-month framework in regulatory we you're Well, Oregon, Under on it our finalized so thoughts haven't but a is the window. correct. Sure. timing,

effect filing this end need occur would a we to X, go of want January immediately month. if to rates by So the on

approach thinking of obviously we communicate we'll finalize sort and and have our to continue it. that as We

the As expect, previously, are I other time scale, coming the more we and recover. weight there certain needing items would putting mentioned some items that batteries on of online to

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

PC. just latest And Oregon a on the from up follow-up the just -- following

just I plan. are are here pieces And What Just on in target, a especially words, affordability. to the the short breaking sort follow-up bit, about And to long trying a energy to ongoing? rejection is this relative I then want term of your get partial send obviously, quickly. to a message of of that clean XXX% versus term. the understand I'd sense of Because the out little they love right? different got

Sure. great a No, integrated And all, And and really questions do modeling. There clean our of granular under more energy we plan. it's IRP. want to first to question. this resource acknowledged plan is I and that first forward had recognize are moving admissions acknowledge was around are that our

been -- and they more additional well I day-by-day needs remember, And modeling to see among hour-by-hour Overall, additional to quite have modeling. had as was original energy and in also doing constituents We going like our infrastructure. admissions as upsized IRP as around meet for significantly July you'll stakeholders needs needs. other we're energy the how and renewable additional with capacity think key additional discussion emissions there's

it's around what healthy discussion to growing good here. really So rapidly a dynamic and time environment have a is

on perhaps affordability make takeaway because hearing that what been like for it affordability. there's enabling and this of And it's Yes, want to the that a there's just the there's came clearly long make and seems in ensuring to XXX% maybe pathway more, here an understanding a direction for again, at from. how terms key sure I'm meet focus a on term know sure need rejection about I acute certainly. I you just times, like the there's I broader question here. mean I'm

story the and we're additional modeling, from of to a of for all to clearly It of that really back the wanting sources need emissions usage Julien. pretty came understand seeing here But those changes of the upside significant is procurements. most energy the economics

resources we're not as actually and example, would energy ] be Clearwater As higher [ good we're in the react we bring purchase a seeing renewable displacing prices market. customer on

prices as driving energy customer infrastructure need and we procurement driving so overall actually forward, significant is X much model forward. And development. aging prices more renewables we the additional as than that supporting is it It's move clean customer not as would and as investment for the customer think growth

mean, given think allocating transmission, various being perhaps out X% of recent need really, considering shift -- I periods in I base but given Right. here have to know in point, you -- Or how Do upon been for rate dramatic can of do mean, to in level I think ceiling all you And you I there surprising a But needs. about as about some actually, not spend you X%, you're about incremental I core your the to to potentially here? to mean incremental sort generation in this here tied a we how and capital truly you've incremental? the frame there's of a on about here? investments? Is reaffirming terms at consider generation been much to what out how upside opportunities? this the should should push transmission. do want that the think mean a increase of push we telegraphing have that you that's you maybe continue new we sort transmission as especially of necessarily times,

that I foremost. stays customer and have first pressures, price that to no and affordability and are we have customers of first There's Sure. and customer keep mean very to question foremost. making we prices we interest sure the keep attuned our seen always

competitive One to of generation customers we in capacity very get RFPs and that reasons is the prices the processes. best for competitive renewable have energy for

flexibility. cost, lowest in is there marketdly is those resources done some risk in be to that have We to to to the continue to customers deliver available. With processes able and energy least regards clean we past, well the hope transmission,

transmission Some run our rate. was spend historic of these in

concentric We and circles. Some of this sort is incremental. as new of think

customer by The first being circle really within being our growth. impacted service directly territory

Northwest. customers. across adjacent broader to third from is to area our then The energy our just areas And second the is investments or our bring the to clean

in is $XXX which our One the chart received project you [indiscernible] out existing we line, upsize rights million as will XXXX Springs most of to grant of Tribes the the of increases look over on significantly a Department that on Confederated existing big continue the Warm further existing where of way. Energy of line

if colleagues and So question rights easy execute would projects that existing relatively my to relatively and execute, on of transmission, territory probably transmission we on ever focused we're focused risk look easy lines. is our to lower within service repowering increasing at but

the Wonderful. Excellent. here, housekeeping just And quick ITC on if you don't mind.

Just here in for to reflected and of for the regulated think years? accounting a here the battery, you year going sort is over X land? or that how be about subject like real novel Or in again a storage do single ITCs quickly, the

Julien, receiving next them question sheet, somewhat the will be benefits regulatory from customer we will expect as recognition, we I balance them real coming ITCs out batteries thereafter. what when get since online, it the X I'll in 'XX, we the that of would ITCs, that think have those the is over we'll you filing 'XX monetize battery we recognize the the call those comes be of sheet, put and the will and ITCs, expectation Julien, is our shortly will that to recognize on that a standpoint those to that is once we'll balance lay in them. to amortized

will looking monetize be recognize we transfer, as to and they to of it. them the have So we certainty the ability

concurrently. Pretty it. Got it. Got Excellent.

through statement? and -- income that flow So the will

flow, income from a the be the income will purchase and will The cash to right, as through sale neutral ITCs, statement us. flow monetization of

with Our UBS. next from question Gregg comes Orrill

of or of into regard the case With heading on you thoughts any level on do rate increase thoughts affordability rate up, to coming sort early that? sort of have

thinking think assets our always expect, focused the mean the put the start focus well in the just had case that been service to cost. case, continue amounts I considering is the the be this going expand update mainly advance also to about be truly to affordability. here -- as of have small as previous we've affordability on to We truly a reliability, would I I we system this here. Obviously, capacity both will an customer, plan case in to infrastructure on on batteries,

Fremont from comes [ question next Paul Ladenburg ]. Thalman Our with ] [

because I would storm January, purview looking guess would be is case you're recent? that that that is for too something the rate deferrals of that recover fall first -- it's my you outside to Or in filing given the currently? the

the the storm recovery general fall case. through They'll than X actually processes mechanisms. both Paul, will so separate rate existing be

So -- come rider of filed the be which and costs, costs, those the deferral relates own have it is its operating will as that and to proceeding, a sort the will through will reconstruction bit -- and then RCE the a PCAM it will will -- Each the a of the that go the as the energy event, different relates time and to cost have process. of through frame.

would be the recovery XXXX. into with filed of work itself For example, until that that, not PCAM process would XXXX the

would timing on the that? or time occur the OpEx than year's that within that does then And a recovery, -- normally shorter

-- -- X say, we'll years. And a well. magnitude time The over over what over just are also look recovery will recovery and period. through of recovery recovered was eligibility up the of these an also to Normally, stream recovered the will which we with be to storm had these nature commission. this extended we due would can storms for their I That the discretion will change last the to for obviously significance either as securitization,

your Would be into then of sort about would of be bidding RFP? business in to And the your the of less the base relative the the should RFPs Or terms how renewable given no looking increase? you sort we think that there in CapEx looking win to CapEx, Okay. change at strategy? of higher magnitude

for our projects today, financing. strategy So is our are for the our always bidding least good those and past in competitive customers. to the same, least risk has they're have bidding most been strategy the projects the bidding forward for and that customers, And and cost and strategy for they're going winners, good

at roughly look increase fair $XXX Okay. million spending that there's $XXX as a funded each like we being way to it about CapEx then of Is the million financing? think And incremental with equity? to in Should sort a XX% amount of annual the looks year.

over to when using towards look look think to to long-term to our I we of capital continue XX-XX. sort we financings move the structure, here, flexibility, continue manage

would over would look balance So way be assumption level, it reasonable say you'd it. at that looked time, to that be at a that

big And that. XXXX. just step And then my of a in what and -- transmission of what's spend in I think, last the wondering I Great. sort question explanation is was up,

million That's to Sure. [ to tribes of ] grant from $XXX year for would in long, ] over announced miles the the be and more partnership [ kV Roundview Springs. that the with would cost planned $XXX Obviously, than an that question be we're million. first earlier, Department a it the -- XXX the the It's project, Warmer multiyear to XXXX. answer Energy. confederated a work XXX to previously project anticipating Pelton that's lana's of We increased Juliean's in XXX

level So years? at for the would several higher stay sort of level transmission that spending of

co-own with in Probably for a partnership after transmission with them. the increase XXXX. of of also portion good XXXX, renewable additional the up part in facilities development that The for of and tribes. years a We currently Oregon several line hydro couple the opens central

but and of And XXXX a opportunity really further energy, significant for the will solar beyond. Springs particularly Confederated Reservation, of an through allow the central Oregon of Warm Tribes and this so development expansion, making for part the

with through does of you that percentage basis what 'XX? of question, give the sort type And then in step-up base on a rate last my CapEx,

X% at around sister transmission, So line we that an update [indiscernible] scenarios this growth. would put would put we've update, document mentioned, in Paul, an a that the that a base morning, just in the regarding put at which then in that us includes rate X.X% with the the capital, the 'XX. outcome base also, made that which And for also through right and some XX% includes would base you Maria sort you of rate filed outcome,

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

increase the carryover That Quick spending question some incremental Or on that of XXXX kind the projects? battery that is XXXX? from stuff. is in number,

out. the Specifically, moving XXXX as battery, it to is relates RFP the that

'XX first 'XX smaller battery, more is project the and -- in is which spend larger is console -- that existing one. the the is into and was of seaside set battery than the see is In the from goes the the fact, ] RFP, all the battery that spend then [ spend and XXXX you it or

thinking Okay. update the I million. which from $XXX capital $XXX-and-something think, comp was, to was previous the I about million

These are the same batteries.

We have pricing the for This to the not any batteries. added those projects. same update is

XXXX So some there payments XXXX. that from went to were

Got it.

Okay.

be you'll related in and the to Yes. I CapEx thinking. operational And the get battery on that they're how you correct right, given going payments that of anticipate able I'm specifically, me what to do was case that, not then those done, in rate -- wrong, be into probably much That's Okay. the if given next...

-- when the the future we -- so do of filing, amount filing we rate the we'll When will update a look use base.

of recovery there And would that the we'll a will XXXX we rate when So -- of in in-service use decide their date. base. will file, expect on structure an end to we batteries place we

then first, which date The an right battery ] of also the seaside in XXXX. somewhere that [ battery, XXXX at the constable around and goes then end service has in the in-service

case, will our get may our file we we to in there. go that batteries you file, whatever and As into included adjustment previously we for requested that or we when the RAC had clause allows service, renewable recall address next renewables the prior case

go automatically in just they So service.

into potentially will the look timely to that other our renewable that consider address are We well service again filing to to ensure policy policies other within as similar as batteries assets.

Great. then helpful. really a different Okay. And That's question.

Given back capital to growth do dividend structure, you your the get the what mean the capital the around and that certain does trying to anticipate? spending comments in for increase

to continue as drawing to are is, it as line grow, we we the earnings expectation X% to and relates committed growth. dividend X% that our similar Our to growth

of rate So we have our communicated growth plan. in of previously changes our off no dividend expectation

with earnings? Okay. In line

That's right.

Granger next comes question ] Mizuho. from [ Our Willard with

cap, XXXX you the question, that you'll back cap. closer got think in XX% you to [ allowed finished with around the to sort be do coming Just in a I rate When balance debt last of to you XX% case? see the debt the ] to sheet equity.

Sure.

between that we've period get built to in us X-year a So RFP RFP we the considering without that timing over peers on scenario. or with XX% as we considered the with look flexibility will and -- how towards some that plan, path the considering

work a strategies I'll there call have we what these of will flexible series sort of So that planning. over longer us

about storage, is you load traditional do growth? geared towards that maybe then the battery generation likely see thinking more the that more And think the spend renewables? Understood. just you'd is that something with Or of of some

capacity volatile -- of see with particular, as the we'll think that we Clearly, all Well, I is important in seeing. we're weather both.

through I farther think projects and renewables I power other on. And that see some coming see independent you'll have been you'll and There wind are also batteries So more storage also are some out working that traditional think producers projects pump solar. of through, RFPs. additional

I this as solutions call, set is move think be a I what ] so to And [ going about we forward. all of

closely with generation this flexibility all of their bring on standby and as to energy to usage very bear working also We're well transition. resources through customers as the

time. no showing to Pope at closing this further back questions Maria now I'm to you. for I Thank would it turn remarks. like

Great. appreciate high-tech General continued We in your growth We're very much. in Thank about XXXX, Portland customers. excited interest our you digital Electric.

our continued very us on soon, to plan as forward you well that excellence. focus development operational for joining capital costs to you in support and growth and connecting look renewable with operating Our thank We today. as much

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

may disconnect. You now