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Portland General Electric Reports Strong Financial Results for 2024 and Sets 2025 Guidance

On February 14, 2025, Portland General Electric Company (PGE), listed on the New York Stock Exchange under the ticker symbol NYSE: POR, announced its financial results for the year 2024, showcasing a noteworthy net income of $313 million. This translates to earnings of $3.01 per diluted share, which incorporates the impact of $0.13 per diluted share resulting from severe winter storms in January 2024. Excluding these storm-related disruptions, the adjusted non-GAAP net income stands at $327 million, or $3.14 per diluted share.

In comparison, the company had reported a net income of $228 million, or $2.33 per diluted share, for the previous year, 2023, reflecting a positive trajectory for PGE and its operational effectiveness. The full-year comparison indicates healthy growth, providing a solid foundation as the company ramps up for 2025.

The financial performance of PGE in 2024 represents a substantial increase driven by various factors such as a growing customer base, investments in clean energy technologies, and enhanced operational capabilities. "Throughout 2024, we made significant strides with new and returning customers, resulting in heightened operational reliability and resilience. Our focus on sustainable developments, particularly in clean energy resources and battery storage, has underpinned our strong earnings results," stated Maria Pope, President and CEO of PGE.

2024: Key Achievements

PGE’s strategic efforts during the year can be characterized by several key accomplishments:

• - An investment of $1.262 billion in capital projects aimed at grid modernization and resilience.
• - The commencement of operations for the 311 MW Clearwater Wind Energy Facility, which enabled multiple gigawatts of wind production from its wind fleet.
• - The integration of 292 MW of battery storage solutions, including the installation of the 75 MW Constable Battery Energy Storage System (BESS).

In reviewing these achievements, PGE's focus on innovation and sustainability is highly evident, showcasing its commitment to delivering reliable energy while transitioning to a cleaner power mix.

Financial Highlights 2024 vs. 2023

Total revenues boosted significantly owing to demand spikes from semiconductor manufacturing and technology sectors, alongside increases in wholesale sales. However, some offset occurred due to lower residential and commercial usage from weather impacts and energy efficiency initiatives. Meanwhile, expenses linked to power purchases and fuels also rose due to heightened usage and price fluctuations.

Operating expenses were indeed higher, exacerbated by investments in safety protocols, wildfire mitigation, and an expanded workforce, which PGE has deemed necessary as part of its commitment to outstanding service and sustainability. The balance in operational expenditures amid the growth reflects PGE's fine-tuning of resources while managing costs effectively.

Looking Ahead: 2025 Earnings Guidance

Initiating its prospects for 2025, PGE has set an ambitious adjusted earnings guidance which ranges from $3.13 to $3.33 per diluted share. This outlook is predicated on several operational assumptions:

• - Projected increase in energy deliveries between 2.5% and 3.5%.
• - A focus on maintaining rigorous power cost management and operational efficiency.
• - Continuing to adapt hydroelectric generation based on present conditions and trends observed over five years.
• - Achieving normal operating temperatures and thermal plant functions throughout the utility service territory.

In light of its achieving these targets and controlling expenditures, PGE's projection underlines both its strategic vision and alignment towards sustainability and customer satisfaction.

Commitment to Wildfire Mitigation

Amidst these financial updates, PGE also detailed its 2025 Wildfire Mitigation Plan which outlines strategies to further safeguard against wildfire risks. In 2024, substantial resources exceeding $85 million were dedicated to wildfire safety, with plans for additional investments in operations and maintenance costs in 2025 aimed at ensuring community safety and grid integrity.

Future Engagements

PGE will be hosting an earnings call on February 14, 2025, where management will unpack these results further and respond to inquiries from analysts and investors. The company's focus remains on enhancing shareholder value and community contributions through sustainable practices and robust financial health.

Through these developments, Portland General Electric is poised to lead in both operational capacity and community commitment, channeling efforts to meet the modern energy demands while adhering to environmental responsibilities. As it steps into 2025, the foundations laid in 2024 exhibit a promising trajectory for the years ahead.