Portland General Electric Co

Good morning everyone and welcome to Portland General Electric Company's second quarter 2025 earnings conference call. Today is Friday, July 25th, 2025. This call is being recorded and as such, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. If you would like to ask a question during this time, Simply press star, then the numbers 11 on your telephone keypad. If you'd like to withdraw your question, please press star 11 again. If you do intend to ask a question, please avoid the use of speaker phones. For opening remarks, I will turn the conference call over to Portland General Electric's Manager of Investor Relations, Nick White. Please go ahead.

Thank you, Victor. Good morning, everyone. I'm pleased you can join us today. Before we begin this morning, I would like to remind you that we have prepared a presentation to supplement our discussion, which we will be referencing throughout the call. The slides are available on our website at investors.portlandgeneral.com. Referring to slide two, some of our remarks this morning will constitute forward-looking statements. We caution you that such statements involve inherent risks and uncertainties, and actual results may differ materially from our expectations. For a description of some of the factors that could cause actual results to differ materially, please refer to our earnings press release and our most recent periodic reports on Forms 10-K and 10-Q, which are available on our website. Turning to slide three, leading our discussion today are Maria Pope, President and CEO, and Joe Terpich, Senior Vice President of Finance and CFO. Following their prepared remarks, we will open the line for your questions. Now, it's my pleasure to turn the call over to Maria.

Good morning. And thank you all for joining us today. Starting on slide four, our second quarter has been marked by strong execution across the business and significant advances in each of our five strategic priorities, which we've outlined in previous calls. First, investing in customer-driven clean energy goals. Second, working to keep customer prices as low as possible. Third, supporting data center and high-tech growth and the region's economic development. Fourth, reducing risk through operational execution, system hardening, and wildfire policies. And fifth, promoting an investable Oregon, excuse me, promoting an investable energy future for Oregon, updating our corporate structure, and aligning legislative and regulatory policies. Today, we stand at the intersection of high growth and in Oregon, a continued focus on clean energy, all while driving to meet customer needs reliably and affordably. Let me describe the progress we have made in each area. Clean energy. to align with the one big beautiful bill and take advantage of the changes to investment tax credits and production tax credits. We're undertaking a price refresh in our 2023 RFP and accelerating our 2025 RFP procurement. Our company, region, and customers remain firmly committed to a decarbonized future, and we're adopting to build on our recent progress while also delivering maximum value. We're focused on securing projects that meet the latest timing and domestic content requirements, allowing us to maximize the impact of important federal tax credits. These credits are a significant tool in lowering the cost of clean energy and keeping customer prices as low as possible. Joe will cover this in more detail shortly. Customer affordability. Our customer affordability commitment, multi-year cost management work is underway and delivering results. This quarter, we made the difficult decision to reduce 330 employed and contracted positions and now have process improvement work ongoing across our company. Every aspect of Portland General will be touched and everyone is involved. Customer driven growth. our strong growth continues. Importantly, we're seeing sustained growth from data center and high-tech customers, over 16% compared to the same quarter last year. This comes from over a dozen text manufacturing and infrastructure companies, including the upcoming return of a significant semiconductor company to PGE's cost of service. This robust demand builds on the significant high-tech and data center growth trajectory that we have seen for over seven-plus years and benefits all customers, enabling grid-wide improvements and infrastructure upgrades while spreading the company's fixed costs across a broader base. We're also pleased that the Oregon Legislature passed the Power Act, which furthers growth and brings greater clarity to the rate-making framework, enabling regulatory flexibility to the allocation of costs and direct long-term contracting with data center customers. Risk management. We still have work to do on wildfire policy and are focused on supporting policies that clarify standards for wildfire mitigation, establish financial backstops, and provide timely recovery for victims. Operationally, we're deepening our focus on welfare mitigation and prevention with system hardening and monitoring, quick response and collaboration with first responders, including the U.S. Forest Service and Oregon Department of Forestry, and targeted use of public safety power shutoffs in response to high-risk conditions. and investable energy future for Oregon. And finally, on our last call, we discussed our intent to file for a holding company. That notification was made on May 23rd, and today we completed the filings with the Oregon Public Utility Commission for the approval of a holding company under which the existing utility company and a separate transmission company will sit. This proposed corporate structure update is designed to help reduce the cost of investments and infrastructure as we work to achieve clean energy goals and serve society's rising needs for electricity, while working to keep customer prices as low as possible. We also worked in close collaboration with the customers and the Citizens Utility Board on the passage of the Fair Energy Act. which brings important clarity to future regulatory proceedings. This moves Oregon to a more predictable multi-year rate making and offers additional flexibility and opportunities for securitization, as well as adjusting the timing of when new customer prices take effect. In state regulatory proceedings, we've strengthened collaboration with all parties, and recent MOU with intervenors and staff and both the seaside battery filing made in May and the distributed system plan alternative recovery mechanism, the DSP arm, which we're filing later today. We're very pleased with these outcomes, which incorporate the Fair Energy Act requirements and provide well-defined path forward. This combination of multi-year rate making, the MOU, and other regulatory improvements drive towards regulatory predictability in Oregon while supporting greater precision in our planning and execution capabilities. I want to recognize PG's legislative and regulatory teams for the exceptional work and outcomes achieved this quarter. This includes important progress made on numerous complex topics, Outcomes that move PGE forward in serving our customers. Now let's turn to slide five for financial results, and then I'll turn it over to Joe. For the second quarter, we reported GAAP net income of $62 million, or 56 cents per diluted share. On a non-GAAP basis, net income was $73 million, or 66 cents per share. This compares the second quarter gap net income of $72 million or 69 cents per diluted share. Q2 2025 non-GAAP results exclude business transformation and optimization expenses as part of our customer affordability commitment and the updates to our corporate structure. This has been a busy quarter for Portland General Electric. We continue building on the momentum of the first half of 2025, executing on expectations and delivering results. We remain laser focused on our strategic priorities and continued execution. Thank you to the entire PCE team for your work this quarter, bringing safe, reliable energy to our customers and building upon our strong operational capabilities to deliver a value for our stakeholders and the communities we serve. With that, I'll turn it over to Joe.