PGE's 2024 Success: Clean Energy Investments Drive Growth

Portland General Electric (PGE) reported strong financial results for the full year 2024, driven by its strategic investments in clean energy resources and battery storage. The company's long-term strategy of diversifying its energy portfolio and improving grid reliability has contributed to its solid performance, despite milder weather conditions compared to 2023.

PGE's 2024 Year in Review

Key strategic accomplishments in 2024 included:

* Invested $1,262 million in capital projects to support grid modernization, hardening, and resiliency, customer growth, renewable and non-emitting dispatchable capacity integration, and wildfire risk mitigation.
* Achieved commercial operations of the 311 MW Clearwater Wind Energy Facility, enabling multiple days of 1 gigawatt-wind production from PGE's wind fleet.
* Integrated 292 MW of battery storage, including the 75 MW, PGE-owned Constable Battery Energy Storage System (BESS).
* Received acknowledgement of the 2023 Request for Proposal (RFP) Final Shortlist from the Oregon Public Utility Commission.
* Announced intent to join the California Independent System Operator's Extended Day-Ahead Market.

PGE's investments in clean energy resources and battery storage have contributed to improved power cost conditions in its region. The company experienced a 64% increase in favorable power cost conditions, driven by increased renewable and battery integration and hydro availability. This has helped PGE reduce its power cost to $0.68, which is $0.04 lower than the previous year.

For future earnings, PGE's investments in clean energy resources and battery storage are expected to have the following impacts:

* Reduced operating costs by diversifying its energy portfolio and reducing reliance on expensive peak power generation.
* Improved grid reliability and resilience, better withstanding extreme weather events and other disruptions.
* Increased customer satisfaction by providing more reliable and sustainable energy, potentially attracting new customers and leading to increased revenue.
* Regulatory support and approval for its capital investments, leading to increased rate base and earnings.

PGE's regulatory strategy has evolved in response to the 2025 rate review decision, with the company invited to make a new filing to recover the investment in the Seaside battery project outside of a rate case with an expedited review. PGE is currently weighing its options and will keep stakeholders informed of its regulatory strategy as it finalizes its evaluation.

In conclusion, PGE's long-term strategy of investing in clean energy resources and battery storage has contributed to its strong financial performance in 2024. The company's investments have helped improve grid reliability, reduce operating costs, and increase customer satisfaction, all of which can lead to increased revenue and earnings. PGE's regulatory strategy is evolving to meet the needs of its customers and the changing energy landscape, with the company committed to providing safe, reliable, and efficient energy while delivering value to its communities, customers, and shareholders.