Portland, Ore., – Portland General Electric Company (NYSE: POR) (“PGE” or the “Company”) today announced that it no longer has net market exposure from the energy trading positions that led to previously announced losses, and that total third quarter 2020 losses on these positions are $128 million. As previously disclosed, this amount had been estimated to be up to $155 million, subject to market conditions. The increase in net variable power costs due to this trading activity will be recognized in PGE’s results of operations in the third quarter 2020. The Company reiterates that there will be no impact to customer prices, as the Company will not pursue regulatory recovery in connection with the losses. The losses do not impact PGE’s ability to serve customers. The Company continues to have a strong balance sheet and ample liquidity, and does not plan to issue additional equity in 2020. In light of no longer having net market exposure from these energy trading positions, PGE is updating its previously revised full-year 2020 guidance to $1.40 to $1.60 per diluted share. This guidance reflects the impact of the $128 million third quarter 2020 losses on these positions and is based on the following assumptions:
Annual retail deliveries flat, weather adjusted, year over year;
Average hydro conditions for the year;
Wind generation based on five years of historical levels or forecast studies when historical data is not available;
Normal thermal plant operations;
Operating and maintenance expense between $550 million and $570 million, which includes a full-year forecasted bad debt expense of $15 million due to moratoriums on collection activities and customer disconnects; and
Depreciation and amortization expense between $410 million and $430 million.
The review being undertaken by the Special Committee of the Board of Directors is ongoing.
For more information contact:
Dan Katcher, Jamie Moser, Arielle Rothstein, Joele Frank, Wilkinson Brimmer Katcher