PORTLAND GENERAL ELECTRIC CO /OR/
For the period ended Dec 31, 2023. Filed Mar 6, 2024.
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Dec 31, 2023 · Filed Mar 6, 2024
Contents
Performance
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2023 PERFORMANCE
We are focused on leading the clean energy future and our business is centered on three long-term imperatives: Decarbonize, Electrify and Perform. We reflect our customers, Oregon's values and our Guiding Behaviors of customer focus, valuing differences, always learning, accountability, collaboration and instilling trust. Our #1 focus is to deliver safe, reliable, affordable, and clean electricity. We are enhancing our electric grid to improve reliability and integrate new, clean technologies.
Our 2023 results reflect continued industrial load growth, dynamic weather and power cost conditions, execution of our capital plan, and the strengthening of our growth foundation. While financial results were lower-than-expected for the year, we remain confident in our growth trajectory of 5% to 7% long-term EPS growth and achieved important milestones that have set the stage for 2024. We invested over $1.4 billion in capital assets, executed $500 million of Green Bonds supporting clean energy investment, and secured 475 MW of battery storage, 275 MW of which PGE will own, and 500 MW of hydropower contracts to bolster grid flexibility and reliability. Since 2018, we have had total shareholder return of 15.7% and continue to provide returns to shareholders by growing our annual common stock dividend, which has increased from $1.50 to $1.86 per common share from 2019 to 2023, a compound annual growth rate (CAGR) of 5.5%.
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Sustainability is an integral part of our strategy to achieve a clean and reliable energy future, which is aligned with Oregon's ambitious, economy-wide goal to combat climate change. We believe our strategy is aligned with the following stakeholder interests:
Clean and renewable energy
Contribution to economic growth and community development
Increasing grid security, resiliency and reliability in the face of extreme weather, cyber and physical threats
Effective operations and ability to meet short-term and long-term objectives
We are taking a holistic approach that balances our commitment to reducing greenhouse gas (GHG) emissions with core values that define our culture, and high standards of operations, financial management and corporate governance. We continue to implement our strategic goals: Decarbonize power, Electrify the Economy, and Advance Our Performance to address broader sustainability commitments which are reflected in our priorities and practices, described in our 2023 Environmental, Social and Governance Report.
Our 2023 Environmental, Social and Governance Report also describes and illustrates our progress on our long-term commitments including 1) clean and renewable energy and GHG emission reductions, 2) workforce engagement and development, 3) community support, 4) environmental stewardship and 5) sustainable green financing. Our Environmental, Social and Governance Report includes our Scopes 1, 2, and certain Scope 3 emissions, as well as disclosures referencing the Sustainability Accounting Standards Board (SASB), Edison Electric Institute (EEI) Template, Task Force on Climate-related Financial Disclosures (TCFD) framework and United Nation Sustainable Development Goals (UN SDGs).
Our top sustainability priorities
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Our top sustainability priorities have been informed by an extensive stakeholder-centered and inclusive analysis. The priorities are not listed in accordance to their relative importance or the impact that they have on PGE.
Our Environmental, Social and Governance Report and additional sustainability information and reports are available at https://investors.portlandgeneral.com/esg. These reports and any other information on our website are not part of, nor incorporated by reference into, this Proxy Statement. Additional information about how we will execute on our strategy can be found on our website at https://portlandgeneral.com/about/who-we-are.
Highlights
| 475 MWInvestment in Battery StorageMaximizing the potential of renewable energy resources | OUR CLEAN ENERGY AND GHG EMISSIONS REDUCTION GOALS•Our Integrated Resource Plan articulated our strategy to meet our long-term clean energy needs. •We continue to work towards our own company-wide goals to achieve net zero emissions by 2040 across our operations, which include fleet and facilities, as well as power generation and supply. •Our path to meet our goals will be achieved through: •Increasing non-emitting energy resources and capacity in our portfolio. In 2023, we acquired 475MW of battery storage, which is the largest single acquisition by a utility outside of California. Over 230,000 residential and small commercial customers are enrolled in PGE's Green Future Program and the 311MW Clearwater Wind Facility came online in January 2024.•Continuing to evaluate the possibility of exiting the ownership of Colstrip Units 3 and 4 as part of meeting our regulatory and legislative requirements.•Supporting decarbonization in other sectors of the economy through energy efficiency, electrification and smart energy use.•Investing in our generation facilities to reduce emissions.•We support our customers’ call for clean energy through our voluntary customer programs. For the 14th year, PGE has held the U.S. Department of Energy’s National Renewable Energy Laboratory’s No. 1 ranking for the largest participation of business and residential renewable energy customers in a renewables program of any U.S. electric utility.11 NREL did not release rankings in 2011. |
| 233,000+Residential and Small Commercial customers enrolled in PGE's Green Future Program |
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WORKFORCE ENGAGEMENT AND DEVELOPMENT•We are committed to pay equity, and offer a wide range of market-competitive benefits to our over 2,800 full-time employees. •We provide employees with benefits that address their needs holistically and support their wellness, including competitive salary, medical, dental and vision insurance, ongoing training opportunities, mentorship and professional development programs, paid vacation, retirement savings with company match, and tuition reimbursement.•We continue to follow a flexible workplace model providing our employees with in-person, hybrid, and remote working options based on organization and employee needs.•Our Guiding Behaviors give everyone a single set of standards to follow, and define our culture as customer-centric, purpose-driven and results-oriented.
| 18%spent with diverse-owned suppliers in 2023 | DIVERSITY, EQUITY AND INCLUSION•18% of our total spend with suppliers was with diverse-owned suppliers in 2023. •We continue to lead in diversity, equity and inclusion (DEI) practices:•Black, Indigenous and People of Color (BIPOC) comprise over 27% of our employees and nearly 27% of our management.•33% of our employees and 35% of our management, including our CEO, are female. •Our pay equity practices, racial equity training and development opportunities for women and people of color to advance into management are hallmarks of our commitment to an inclusive workforce.•Our Business Resource Groups (BRGs) allow employees to form connections, build professional networks and learn. In 2023, two of our BRGs sponsored in-person sessions with members of our Board of Directors focused on career advice and professional growth. •We once again received two notable recognitions that reflect our ongoing dedication to creating a diverse, equitable and inclusive workplace.•For the 10th year in a row we scored a perfect score on the Human Rights Campaign Foundation's Corporate Equity Index as a Best Place to Work for LGBTQ Equality.•Bloomberg LP recognized PGE by including us for the fifth time in its annual Gender-Equality Index, which tracks the performance of companies committed to supporting gender equality through policy development, representation and transparency. |
| 27%of employees are BIPOC | |
| 33%of employees are female |
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| $4.6Mcontributed to non-profitsby the PGE Foundation, employee/retiree donations and the Company | MAKING A DIFFERENCE FOR OUR COMMUNITIES•We reached over 60,000 students though Project Zero, an innovative and award winning program that empowers young adults and students to create cleaner, greener and more equitable communities. •The PGE Foundation, employee/retiree donations and PGE contributed close to $4.6 million to non-profits. The PGE Foundation improves the quality of life for Oregonians and has awarded approximately $30 million to community organizations across the state since its inception in 1997. •Our employees and retirees volunteered in the community, contributing over 23,000 volunteer hours.•PGE Foundation launched the first ever Career Pathways grants, resulting in 26 organizations receiving grants allowing them to create access to family-wage jobs in trades, STEM and green sectors, promoting job readiness for working-age individuals; addressing employment barriers through wrap-around services and supporting business ownership for entrepreneurs of color and women-owned small businesses.•Through the Oregon Clean Fuels Program, PGE Drive Change Fund supported 20 electric transportation grants in the community, and PGE Electric School Bus Fund supported electrified school buses in seven districts. |
| 279kWRenewable Development Fundawarded grants to five projects in 2023 that will add 279 kW of renewable energy in the community |
| Invested in Habitat RestorationPGE is committed to caring for natural habitat and creating conditions that are safe and restorative for fish and wildlife in the 11,000+ acres of wildlife habitat that we manage under various project licenses and site certificates | ENVIRONMENTAL STEWARDSHIP•We have worked over 17 years together with our partners in the Clackamas River Basin to enhance habitat for fish and wildlife that depend on a thriving river ecosystem. For the first time, the team at the Westside Hydro generating facility successfully passed more than 25,000 adult salmon and steelhead upstream of the North Form Dam. This is one of several other fish return records broken in 2023.•Our Avian Protection Plan, which includes partnerships with the U.S. Fish and Wildlife Service and the Avian Power Line Interaction Committee, works to make our infrastructure safer for birds and increasing reliability for our customers. In 2023, we added or replaced more than 6,750 poles and more than 2,000 transformers with ones that feature avian-safe protective covers or design features. •Our Pelton Round Butte Project was recently re-certified by the Low Impact Hydropower Institute, recognizing the project’s compliance with rigorous environmental stewardship criteria in categories such as water quality monitoring, efforts to safely pass fish upstream and downstream, and protection of cultural resources. |
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| AffordabilityPGE is committed to making energy accessible to all | ENERGY AFFORDABILITY•We launched PGE+, usage dashboards, rebates and incentives for energy efficiency.•Our energy management programs such as Smart Thermostat, Time of Day, EV Smart Charging, Peak Time Rebates and Energy Tracker allow customers to manage their energy usage and bills.•As of December 31, we had over 69,000 customers enrolled in our Income Qualified Bill Discount Program, which offers discounts of 15%, 20% or 25% based on household size and total household income. Beginning in 2024, we offer discounts of 40% and 60% based on the same criteria.•We secured $300 million+ in federal grants to offset the costs of clean energy projects, including grants for critical transmission upgrades, a regional clean energy hydrogen hub and for investments in grid edge computing to help maintain resilient grid operations.•We achieved customer delight of 56% among PGE residential customers, remaining in the top quartile of utilities nationwide according to Escalent’s national Utility Energy Benchmark |
| Working Together with Our CustomersFocus on community outreach and engagement | WORKING TOGETHER WITH OUR CUSTOMERS•We developed a Strategic Tribal Engagement Plan to provide an enterprise-wide framework for our teams to develop and maintain successful Tribal partnerships•We convened a Community Benefits and Impacts Advisory Group (CBIAG) to build understanding of our clean energy goals and engage with community members as collaborators on issues of energy equity and access. The CBIAG meets monthly and includes members within our service area including low income and environmental justice communities•We partner with community organizations to inform our customers about our clean energy programs, bill assistance and to connect our customers with resources to manage their energy and savings. Our website as well as PGE's mobile app are available in both English and Spanish, while our call center offers customer support in over 200 languages |
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