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Financial performance


TAKING A LONG-TERM VIEW Operating a financially strong company is key to delivering on our mission now and in the future.


Strong financial foundation


To provide safe, reliable, reasonably priced power for our customers, we work to maintain the financial health of our company through: • Efficient operations • Achieving a reasonable return on investment for shareholders • Prudent investments for the future • Maintaining strong credit ratings


OPERATIONAL EFFICIENCY Benchmarking our performance We conduct benchmarking across our company every three to five years to identify places we can increase efficiency. Third-party experts help facilitate the benchmarking process to measure how we’re performing compared with peer utilities and other companies with similar organizations and challenges.


ACHIEVING FAIR PRICES FOR OUR CUSTOMERS Like all investor-owned utilities, PGE undergoes a rate case process with a regulatory organization (the Oregon Public Utility Commission) to set or change prices. PGE prices are based on forecasts of what we believe our future costs to provide electricity will be, including a reasonable rate of return.


Included in those forecasts are the costs for PGE to generate and purchase energy — which are affected by prices for raw fuel like coal and natural gas — and how weather will affect the output of hydroelectric and wind generators.


This is a public process, and stakeholders can participate by offering input. We approach each rate case with great diligence, viewing it as an opportunity to hear from our stakeholders.


SUCCESSFUL BUSINESS MODEL EARN TRUST 1 INVEST 5 4 ATTRACT FUNDING


1 – Earn, reinforce customer trust 2 – Secure price adjustments to cover investments 3 – Provide shareholders with a competitive return on investment 4 – Attract capital funding for infrastructure investment 5 – Invest in new energy projects and technology upgrades to meet customer needs


2 3


PROVIDE ROI


SECURE PRICE


2012


2013


2014*


EARNINGS PER SHARE (DILUTED)


2012


2013


2014 SHARE PRICE**


*2014 earnings guidance as of October 28, 2014. **All share prices are as of Dec. 31 of that year except for the 2014 share price, which is as of Oct. 30, 2014.


23


$1.87 $1.35 PROJECTED: $2.10 – $2.20


$27.36 $30.20 $36.41


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