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Earnings Forecast PGG IBIT $161 million, Net Income $57 million PGE IBIT $183 million, Net Income $81 million PGE Operations Customer Satisfaction remains in top quartile Distribution System Operations goals achieved Hydro and thermal plant availability in 90th percentile
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Earnings Forecast PGG IBIT $161 million, Net Income $57 million PGE IBIT$183 million, Net Income $81 million PGE Operations Customer Satisfaction remains in top quartile Distribution System Operations goals achieved Hydro and thermal plant availability in 90th percentile Boardman & Beaver set generation output records Exceeded Energy Efficiency goals 3 year Union Contract Completed 2001 PGG Results
PGE 2001 Initiatives Installed on schedule and under budget the 25 MW Beaver 8 Unit Completed a Rotating Outage Plan for power curtailments Ready to go live with a new Customer Information System Preparing to implement Customer Direct Access on March 1, 2002 Actively involved in the development of RTO West & TransConnect PGE General Rate Case (UE-115) Good ROE - 10.5%, new rates effective 10/1/01 Request for Reconsideration of Order denied by the OPUC Rate Increase - 33% Residential, 53% Commercial Power Cost Adjustment Mechanism approved that includes adjustment for poor hydro conditions and variances in retail / wholesale revenues 2001 PGG Results
Enron / Northwest Natural Transaction Purchase price for PGE of $1.875 billion Strong public support for the transaction Closure expected 3Q 2002 but could close as soon as the end of the second quarter Key Regulatory filing dates and expected approvals 4Q 2001 - OPUC, WUTC, FERC, Hart Scott, & SEC filings 2Q 2002 - OPUC, WUTC & FERC approval 2Q/3Q 2002 - SEC approval 2001 PGG Results
Targets this year for PGG was $185 IBIT and $70 Net Income (2000 performance excluding the Tomas transaction was $353 IBIT and $154 Net Income). The primary reason for the under performance against targets for 2001 was a significant reduction in retail loads due to a down turn in the economy combined with a significant reduction in the price of wholesale power in the third quarter which made the length we carry for reliability & load worth much less than forecast. PGE Operations have performed above expectations and our O&M expenses have come in well below budget. All our thermal plants have performed above budgeted levels which has helped offset the driest hydro year on record in the Northwest. We also did not have any major storms. The new customer information system(Banner) is going through final testing phases with a February 2002 go live implementation. Customer Direct Access for all customers greater than 30 KW is scheduled for March 1, 2002. Direct Access eligible customers must give PGE notice in January whether they want to continue with PGE as their supplier or be served by an ESP. PGE is spending considerable resources to put in systems and processes to make the implementation seamless for customers The OPUC order on denying reconsideration was very favorable to PGE and signaled that this commission is willing to make fair and reasonable decisions that balance all stakeholders needs. The sale of PGE is going very smoothly and we expect that transaction may close by the end of the second quarter with a high likelihood of closing by the end of the 3rd quarter. Notes for Slides