Portland General Electric Co

Good morning everyone and welcome to Portland General Electric Company's third quarter 2025 earnings results conference call. Today is Friday, October 31st, 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 would like to withdraw your question, please press star 11 again. If you do intend to ask a question, please avoid the use of speakerphone. For opening remarks, I will turn the conference over to Portland General Electric's Manager of Investor Relations, Nick White. Please go ahead, sir.

Thank you, Michelle. Good morning, everyone, and thank you for joining us today. Before we begin, 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. We delivered another strong quarter in Q3, and we maintain our laser focus on execution, driving value, and advancing our five strategic priorities. Starting on slide four. 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 in the region's economic development. Fourth, reducing risk through operational execution, system hardening, and wildfire policies. And fifth, promoting an investable energy future. Our industry and Portland General are seeing tremendous growth. Since 2019, high-tech manufacturing and infrastructure investments have resulted in over 8% industrial growth, which is expected to only increase, driving our overall load growth of 3% through the end of the decade. Portland General's customers and our region remain focused on clean energy. We are also focused on affordability as we work to keep our cost structure flat and customer prices as low as possible, in turn providing stable, competitive returns to shareholders. I will cover the progress we've made in each of these five priorities before highlighting this quarter's results. Clean energy. Given the dynamic policy and market environment for clean energy, our state and company are accelerating to meet the moment Earlier this month, Oregon Governor Tina Kotek issued an executive order aimed at accelerating renewable energy development before federal tax credits expire. An important step that supports continued progress for the state's goals. This dovetails with the multi-pronged procurement strategy PGE deployed in July to maximize the approximate 30% of federal tax credits that directly lowers costs for customers. As part of the 2023 RFP, we undertook a price refresh to capture the impacts of the One Big Beautiful Bill and trade tariffs, which culminated in an updated shortlist filed with the Commission earlier this month. The shortlist reflects rigorous least-cost, least-risk approach designed to yield reliable, affordable outcomes on timelines responsive to evolving legislative requirements. In parallel, we sought community-based renewable energy and bilateral PPAs for energy and capacity, which are yielded additional projects. Finally, we took a critical step forward in the 2025 RFP was also lost in July. All bids have been received and we are now evaluating projects and building towards contract execution in 2026. Every element of our strategy prioritizes reliable delivery of energy to customers while maximizing the window of federal clean energy tax credits. To date, We have secured over $1 billion of PTCs and ITCs for our own clean energy portfolio, and we estimate as much as another billion from long-term third-party energy contracts. This is just one part of our approach that enables clean energy affordability, allowing our customers to receive the full benefit of high-value clean energy resources at the lowest cost possible. Customer affordability. The customer affordability commitment. Our multi-year management program continues to deliver great results. This work touches every corner of our company as we focus on safe, reliable service while keeping customer prices as low as possible. Joe will cover more about our progress in detail shortly. Customer growth. We continue to see significant load growth, with total load of over 5% compared to the same quarter last year. Our industrial customers, led again by data centers and semiconductor manufacturers, grew their energy usage by over 13%. As these customers expand their existing facilities and develop new sites, This builds upon over a decade of high-tech manufacturing and infrastructure expansion in the region. We're continuing to plan and execute alongside our customers as they scale and ramp their operations. The passage of Oregon's data center legislation which will be implemented through regulatory proceedings concluding next March, provides rate making clarity, improved cost allocation, and importantly, margin expansion from PG's fastest growing industrial customers. Building on this supportive policy, we're investing in new transmission and utilizing a combination of system upgrades. These include dynamic line ratings, AI data analytics, and customer-sided solutions to maximize new investments and leverage existing infrastructure. TGE recently completed a project with AI startup GridCare that leverages flexibility in data center usage, applying generative AI forecasting to unlock additional system capacity. We also achieved a first-of-its-kind solution alongside distributed storage provider Calibrate Energy and digital infrastructure provider Align Data Center. The agreement will deliver a battery system to Align's campus, enabling the facility to come online and scale operations years earlier than previously expected. High-tech manufacturing. and digital infrastructure are important contributors to the strength of Oregon's economy. I'd like to reiterate that for Portland General Electric, this load growth isn't theoretical. For years, we have been meeting this significant and growing customer energy usage, quarter over quarter. Today, we're working with regulators and parties to ensure that costs are fairly allocated across customer groups. Industrial growth is helping us spread fixed costs of our system across a larger base. Support affordability for all customers. Risk management. Wildfire season has officially ended in our service area. Our comprehensive year-round mitigation programs continues as we work to deliver results. hardening the system, enhancing situational awareness, and deploying technology to protect our communities and improve reliability. We recognize that more is needed to address the collective risk presented by wildfires and extreme weather. We remain committed to working with policymakers to find meaningful answers to these complex issues. Wildfire risk is a societal-wide problem and we are working on operational, legislative, regulatory, and other outcomes to deliver societal-wide solutions. An investable energy future. Lastly, an update on our regulatory proceedings and proposed update to our corporate structure. Last week, we received the order on the Seaside Alternative Recovery Mechanism for the largest standalone battery on our system. The order represents a constructive outcome and was supported by the memorandum of understanding reached with parties back in the spring. This is an important step forward in our ongoing cooperation with the regulatory stakeholders. We appreciate the careful consideration of the commission and the collaboration with staff and intervenors. The distributed system plan arm remains on track and we continue to expect resolution in the first part of next year. The proceedings for PGE's proposed creation of a holding company and transmission company are also progressing as expected. The docket now includes a procedural schedule with a target date of June 2026. The proposed holding company update aligns PGE's corporate structure to industry standards. Both the holding company and the transmission company enable improved financing flexibility that will yield benefits for customers and shareholders. We look forward to continued engagement with stakeholders to reach outcomes that encourage investment in Oregon and advance our customers' and state's long-term goals. I'll now turn to slide five for our financial results. For the third quarter, we reported GAAP net income of $103 million or $0.94 per diluted share. On non-GAAP basis, net income was $110 million or $1 per share. This compares to third quarter 2024 GAAP net income of $94 million or $0.90 per diluted share. Similar to Q2, our non-GAAP results exclude business transformation and optimization expenses from the customer affordability commitment. and updates to our corporate structure results this quarter underscore the mission of our company and my commitment to executing with discipline advancing our strategy on delivering value to customers communities and shareholders our team is laser focused on execution and results finishing 2025 strong and building off our momentum of our continued success in the years ahead with that I'll turn it over to Joe.