Portland General Electric Company (NYSE:POR) Q2 2023 Earnings Call Transcript

Maria Pope: I think that the conversations are ongoing and I think it’s too early to read any conclusions into them. There’s no question that market volatility is higher today than it was in the past and certainly higher than when the PCAM was conceived when there was plentiful excess energy through the system, particularly hydro energy and less reliance on renewables that fluctuate with wind and solar conditions. I would say that overall, there’s a pretty good understanding at a high level of the transformation of energy markets. They’re clearly West wide. We have a lot of offsets given the different temperatures and operating conditions between ourselves and the Desert Southwest. You see a lot of work towards market — further market integration, either with the California Independent System Operator or with SPP’s Markets Plus.

And most importantly, there is a tremendous consensus around resource adequacy needs and the leadership of the Western Power Pool in this regard is exceptional. And one of the reasons that you can see some additional capacity in the region as we head into the August period is that entities are really working towards more transparent and coordinated resource adequacy. It’s making a big difference. But there’s no question that there’s a lot of work to do with intervenors. We do this every day. They don’t necessarily do it and the financial issues are significant.

Anthony Crowdell: Great. And then just lastly, maybe, Joe, I believe that the capital structure has already — the capital structure in the rate proceeding has already been settled. But assuming that rate — you reach a full settlement whatever that case is litigated, would the outcome of the case accelerate maybe the company’s target to achieve a 50-50 ratio?

Joe Trpik: I don’t think so. Obviously, a constructive outcome is always positive to us financially. I mean we are going to stay on a long-term path and keep our eye on a consistent movement towards 50-50 aligned to what I’ll call our major capital. So I mean I don’t think a short-term item would deviate us one way or the other from what I think is really a long-term structure that we’re trying to go towards.

Anthony Crowdell: Thanks, again. Congratulations on this spot, Joe, and thanks for taking my questions.

Joe Trpik: Thank you.

Maria Pope: Thank you.

Operator: And thank you. And I am showing no further questions. I would now like to turn the call back over to Maria Pope for closing remarks.

Maria Pope: Thank you all for joining us today. We appreciate your interest in Portland General Electric. We look forward to further conversations and I believe many of you are meeting actually with Joe and others next week. So thank you very much and look forward to seeing you between now and then or at least at EEI. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.