• Continued strong energy deliveries and customer growth amid challenging cost pressures
• Issued RFP shortlist results for renewable and non-emitting capacity resources with project selection targeted by the end of 2022
• Revising 2022 earnings guidance from $2.75 to $2.90 to $2.50 to $2.65 per diluted share, to reflect reductions to 2020 regulatory deferrals

PORTLAND, Ore., April 28, 2022 /PRNewswire/ -- Portland General Electric Company (NYSE: POR) today reported net income of $60 million, or $0.67 per diluted share, for the first quarter of 2022. This compares with a net income of $96 million, or $1.07 per diluted share, for the first quarter of 2021.

"We continued to see strong load growth and remain focused on serving customers with increasing amounts of clean energy and a smarter, more resilient grid." said Maria Pope, PGE president and CEO. "As a result of this week's rate case order from the Oregon Public Utility Commission, we recorded a reduction to our 2020 deferrals for wildfire restoration and COVID in the first quarter of 2022. While this adjustment is significant, the overall order provides regulatory clarity as we continue to advance system reliability and move forward on decarbonization goals. We are also pleased that a highly competitive process has resulted in some PGE investment opportunities being included on the RFP shortlist."

Total revenues were driven by higher retail energy deliveries, due to continued growth in commercial and industrial demand, including high-tech and digital customers, partially offset by milder weather. Purchased power and fuel expense increased to serve higher customer load. Operating expenses increased, driven by grid maintenance, vegetation management and reductions to deferral amounts recorded in 2020 related to COVID and Wildfire expenses as a result of the 2022 GRC stipulation. Administrative expenses increased due to wages and benefits driven by a strong labor market, as well as the cost of materials. Tax expense increased primarily due to a local tax flow-through adjustment that did not recur in 2022.

In October 2021, PGE (the Company) submitted to the Public Utility Commission of Oregon (OPUC) a request for the issuance of a Renewable Request for Proposals (RFP). In December 2021, the OPUC acknowledged the request and, as a result, later in December 2021, PGE issued the RFP seeking to procure at least 375 to 500 MW of qualifying renewable resources and approximately 375 MW of non-emitting dispatchable capacity resources and up to 100 MW of renewable resources in support of the Green Future Impact program's PGE supply option.

Following the robust and competitive process of receiving and evaluating initial bids, PGE plans to submit a request for acknowledgement of a shortlist to the OPUC on May 5, 2022 that includes seven distinct projects submitted by five bidders for renewable resources and six distinct projects submitted by four bidders for non-emitting dispatchable capacity resources. This shortlist is included in Appendix A.

The proposals for renewable resources provide various combinations of wind, solar, and battery storage options that include power purchase agreements (PPA) along with Company-owned resources, as shown in Appendix A. The proposals for non-emitting dispatchable capacity resources provide battery storage and pumped storage options that include PPAs along with Company-owned resources. The ultimate outcome of the RFP process may involve the selection of multiple projects for both renewable and non-emitting dispatchable capacity resources.

PGE will request that the OPUC acknowledge the RFP shortlist by July 15, 2022 to enable the Company to execute definitive agreements. RFP shortlist projects were evaluated and selected based on conditions as of the shortlist date and are subject to risks and uncertainties, including, but not limited to, regulatory processes, inflationary impacts, supply chain constraints, supply cost increases (including application of tariffs impacting solar module imports), and legislative uncertainty. PGE intends to commence negotiations with one or more bidders and finalize negotiations prior to the end of 2022 to allow sufficient time to capture expiring federal production tax credits for the benefit of customers.

On April 25, 2022, the OPUC issued Order 22-129, which adopted all stipulations agreed to by the parties to the proceeding, including the annual revenue requirement, cost of capital, capitalization ratio, and the elimination of the decoupling mechanism. Key elements of the OPUC's Order also included:

• establishment of a balancing account for the Company's major storm damage recovery mechanism;
• denial of PGE's proposal for a secondary phase of the 2022 GRC regarding the Faraday capital improvement project. PGE can pursue recovery in the Company's next GRC;
• establishment of a deferral that would require PGE to defer and refund, subject to an earnings test, the revenue requirement associated with Boardman included in customer prices following plant closure in 2020; and
• creation of an earnings test for the deferrals for the 2020 Wildfire Emergency and the February 2021 Ice Storm and Damage that is to be applied on a year-by-year basis.

As a result of the earnings tests outlined in the OPUC's Order, the Company has released deferrals associated with the year ended 2020, resulting in a pre-tax, non-cash charge to earnings for the three months ended March 31, 2022 in the estimated amount of $17 million. PGE does not expect to exceed its regulated return on equity under the earnings tests for 2021 and 2022.

In March, PGE released its annual ESG report that highlights PGE's programs leading the clean energy future, which includes its commitment to sustainability. The 2021 report showcases key strategic projects that support the company's progress toward a sustainable future and advancing equity for customers, employees, and communities. For more information visit www.portlandgeneral.com/about/who-we-are/sustainability.

As previously announced, on April 22, 2022, the board of directors of Portland General Electric Company approved an increase in the annual dividend of 5.2%, or $0.09 per share, declaring a quarterly common stock dividend of $0.4525 per share. The quarterly dividend is payable on or before July 15, 2022 to shareholders of record at the close of business on June 27, 2022.

PGE is revising its estimate for full-year 2022 earnings guidance from $2.75 to $2.90 to $2.50 to $2.65 per diluted share, based on the following assumptions:

• An increase in energy deliveries between 2% and 2.5%, weather adjusted;
• Normal temperatures in its utility service territory;
• Average hydro conditions;
• Wind generation based on five years of historical levels or forecast studies when historical data is not available;
• Normal thermal plant operations;
• Capital expenditures of $685 million in 2022 and $650 million in 2023 through 2026;
• Average construction work in progress balance of $270 million;
• Revised operating and maintenance expense from between $590 million and $610 million to $620 million and $640 million, which includes the $17 million deferral reduction recorded in Q1 2022;
• Depreciation and amortization expense between $420 million and $440 million;
• Effective tax rate of 15% to 20%;
• Cash from operations of $575 to $625 million; and
• No new common equity to be issued for investment or operations.

PGE will host a conference call with financial analysts and investors on Thursday, April 28, 2022, at 11 a.m. ET. The conference call will be webcast live on the PGE website at investors.portlandgeneral.com. A replay of the call will be available beginning at 2 p.m. ET on Thursday, April 28, 2022, through 2 p.m. ET on Thursday, May 5, 2022.

Maria Pope, President and CEO; Jim Ajello, Senior Vice President of Finance, CFO, and Treasurer; and Jardon Jaramillo, Senior Director, Investor Relations, Finance, and Risk, will participate in the call. Management will respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and comprehensive income, condensed consolidated balance sheets and condensed consolidated statements of cash flows, as well as the supplemental operating statistics, are an integral part of this earnings release.

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Portland General Electric (NYSE: POR) is a fully integrated energy company based in Portland, Oregon. The company serves approximately 900,000 customers with a service area population of 2 million Oregonians in 51 cities. PGE owns 16 generation plants across Oregon and other Northwestern states and maintains and operates 14 public parks and recreation areas. For more than 130 years, PGE has powered the advancement of society, delivering safe, affordable, and reliable energy to Oregonians. PGE and its approximately 3,000 employees are working with customers to build a clean energy future. Together with its customers, PGE has the No. 1 voluntary renewable energy program in the U.S. PGE is committed to achieving at least an 80% reduction in greenhouse gas emissions from power served to customers by 2030 and 100% reduction by 2040. In 2021, PGE became the first U.S. utility to join The Climate Pledge. For the eighth year in a row PGE achieved a perfect score on the 2021 Human Rights Campaign Foundation's Corporate Equality Index, a national benchmarking survey and report on corporate policies and practices related to LGBTQ workplace equality. In 2021, PGE, employees, retirees, and the PGE Foundation donated $4.8 million and volunteered 15,760 hours with more than 300 nonprofits across Oregon. For more information visit www.PortlandGeneral.com/news.

Statements in this press release that relate to future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent our estimates and assumptions as of the date of this report. The Company assumes no obligation to update or revise any forward-looking statement as a result of new

information, future events or other factors.

Forward-looking statements include statements regarding the Company's full-year earnings guidance (including expectations regarding annual retail deliveries, average hydro conditions, wind generation, normal thermal plant operations, operating and maintenance expense and depreciation and amortization expense) as well as other statements containing words such as "anticipates," "based on," "believes," "conditioned upon," "considers," "estimates," "expects," "intends," "needs," "plans," "promises," "seeks," "should," "subject to," "targets," and similar expressions.

Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including, without limitation: the outcome of various legal and regulatory actions; demand for electricity; the sale of excess energy during periods of low demand or low wholesale market prices; operational risks relating to the Company's generation and battery storage facilities, including hydro conditions, wind conditions, disruption of transmission and distribution, disruption of fuel supply, and unscheduled plant outages, which may result in unanticipated operating, maintenance and repair costs, as well as replacement power costs; delays in the supply chain and increased supply costs (including application of tariffs impacting solar module imports), failure to complete capital projects on schedule or within budget, failure of counterparties to perform under agreement, or the abandonment of capital projects, which could result in the Company's inability to recover project costs; default or nonperformance of counterparties from whom PGE purchases capacity or energy, which require the purchase of replacement power and renewable attributes at increased costs; complications arising from PGE's jointly-owned plant, including ownership changes, regulatory outcomes or operational failures; the costs of compliance with environmental laws and regulations, including those that govern emissions from thermal power plants; changes in weather, hydroelectric and energy market conditions, which could affect the availability and cost of purchased power and fuel; the development of alternative technologies; changes in capital and credit market conditions, including interest rates, which could affect the access to and availability or cost of capital and result in delay or cancellation of capital projects or execution of the Company's strategic plan as currently envisioned; general economic and financial market conditions, including inflation; severe weather conditions, wildfires, and other natural phenomena and natural disasters that could result in operational disruptions, unanticipated restoration costs, or third party liability; cyber security breaches of the Company's customer information system or operating systems, data security breaches, or acts of terrorism, which could disrupt operations, require significant expenditures, or result in claims against the Company; employee workforce factors, including potential strikes, work stoppages, transitions in senior management, and the ability to recruit and retain key employees and other talent due to the novel corona virus disease (COVID-19) mandates and turnover due to macroeconomic trends; PGE business activities are concentrated in one region and future performance may be affected by events and factors unique to Oregon; and widespread health emergencies or outbreaks of infectious diseases such as COVID-19, including potential vaccination mandates, which may affect our financial position, results of operations and cash flows. As a result, actual results may differ materially from those projected in the forward-looking statements.

These risks and uncertainties to which the Company are subject to are further discussed in the reports that the Company has filed with the United States Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov and on the Company's website, investors.portlandgeneral.com. Investors should not rely unduly on any forward-looking statements.

POR

Source: Portland General Company

The following table indicates the number of heating degree-days for the three months ended March 31, 2022 and 2021, along with 15-year averages based on weather data provided by the National Weather Service, as measured at Portland International Airport:

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SOURCE Portland General Company