ML20052F163
| ML20052F163 | |
| Person / Time | |
|---|---|
| Site: | Trojan File:Portland General Electric icon.png |
| Issue date: | 03/31/1982 |
| From: | PORTLAND GENERAL ELECTRIC CO. |
| To: | |
| Shared Package | |
| ML20052F161 | List: |
| References | |
| NUDOCS 8205120185 | |
| Download: ML20052F163 (38) | |
Text
itsM%M ),f.wWh >MWwN4% Wni%dG:ZNCw:p.>x c:MQ y.7, Q.(ll. Q.9 j.y p g, q y 4.p,g f f S $ 'j._ Q..j g *K, 4.; : ?.,f,f,. p.' i
'.{ C C ' g"S-4 j
. 33.. h ;.,..
[
S.M...
..>.y y.s.. y...,.-.5
_ a, c,...
.3,..,. 4 -
. e,; w
,f QN. e.. ~,/ * :
..a'
- ., [ ', q - ~
w q ' f-;;
4 ( (-....
', y
-N g-,-j
.... g
.4
't s
.-; _- 0,
. x:. 3 4
, ge.
T'.
- l. 4 ~ -- l.
+
+
} ~*
_fl '._
c.
. l h: $ ' ; ;
-). ; ?,. u -
' y, _ f..;,'.
i ' l. O._
s.-
U. l f %,:
~
=
i c
~
- -+
,e
+
y.
' 9,
.d... _
.y' ;
<.)
,, r V
- ^' - '.
, m. \\ >
.t 4-y
.~.,.
p,
s.
- 9 9..,.
_ ~,
1
+,
b g..-,' 'l.'
. jC,
., _, y%
,\\:
L.n h ;.
.',s gw.%
. 3 u.
,e
,. e
~. ~,.
, - j..,,.
g.
T,. :
.y.u.-,
x 4
.6 1
.e
.i
-e
(
As_
p.,;.. ' -
' (.' ~
,7 1,-
t %.
I-M
,..-, $. ':.eL 3
'.,,, -- [
4, s
c e
(e,%
4
?,3., 9,
~,
w
. w
, 4...
, c j,
i -,,,,
f4 -
s.-
.- - f '.. ;,.i.K y3 c.
., 'p L
.4 '..,
"s..
..?
...a
- 'p. e.
'r4-.. *
,,'y 1
. 4 6 : *,',
t
(.. - y
'f g
r -(
- i b
b h?.
Y.l
' 3, <.
1 "4
.:1 g
.r ' g
_v.
..q. = n_
v,.
g-,.
3
' 5 L',
4 '(.
f
+
z ll v
_ m.
,8 ' y ;h F" f. j.
F,.
't f..w.
~!
4-.
cr
.,a
.w.
/..-
., ~
, =
),,
.,+
.l
.) _,
- 1
., s t,. ~,
J
= ?
ff g a_~ %, _
p(m s4 3 : x -', = Q....
g*
-3 l.
a,.
- x,
_,p..,.-
,s%
-g-y t..
m.-
.. a.
4 pg
'F._',
~ _[
++
i s
f w.' _f
, j;
<.,.['
2 e
g..
s c -o.,
. g, s e, n.,.... ;,
~-
,, -..,s A a 1
.t
, g?.*
e g
- l;
~
4 ye r. s
_ +.
y
.=. *
-.. t -
n.
3' 'ty.,.,
,, t..
c
.V a.:
. y,L ' '
.c e
s
- p.-Y^
A 3
., -,q,
~
.y 1
~
.x z.
y;.,., X.. ~. ; v}
~
y :.
- t.
g
..?
'y 4~...
y..
~ y g
p
,.. ~
- p..
-Q.,.M. " ^. ;f,f
. '),. '
J.-.y 'y, '
J,q j. e.
+
c a"..WJ. _g., s 1,-
. ; n
- m.,.
.; 9 t
.a, y. - g,r.,
.e - *,
}-_
4 s-e
. s -
..q.
I... y 7
...n f.
&,s
. ~ '
%y.
p:}.
J '. ~,_
,e,
s.
. ~
~. :.
...,~;.
,i...s
.c
~
f,] t
' :Y '
Y..,
~
- g.
p e,
5
( k.1 E,. 3 '*i.
l
[ [..
r r
MS.,.....c.;.
.. :2
} 74 ~
l
' ~
- e~
/
,._s
.m
'h 4,,
4,,-9
- q,,
e.
- P, ey
, ~.
p ?,N 2
5.
,^"
- M' y ?; & R - : ~.* ; . n ; ~
~:
l-n ;
- 3. - -
w
+c p_..
. g..... '..
-. " h,'1 - R N i..
.3,-
fy,,,y{q. h... -
. :.n.
- s. ;;..
u
,'ysY;.I# 1-f..+$ y-A I'
.. (
i,.
l" 7.., - '.
1
- i.
v c._ g ;g.,p 3 w.
f.MW.i.. y. a
~f ? ;. ' E
- : 6. ?. :<. ' j"p
),p Z 4 ' b.,
_}.418i@%.~. ;. C.,
- a A&l..; '....
. N',
f 7
- _/
1 I
I I
HIGIILIG HTS
- m_nm, Operating revenues
$ 594,789,000
$ 400,237,000 21.3 Net income
$ 112,341,000 86,200.000 30.3 Income available for common stock 98.968,000 72,593.000 36.3 Earnings per average common share
$2.54
$2.03 25.1 Dividends declared per common share
$1.71
$ 1.70
.6 Net utility plant
$2,010,107,000
$ 1,842,207,000 9.1 Gross utility construction expenditures
$ 294,651,000
$ 292,833.000
.6
^"
Kilowatt-hours sold v
+/
(in thousands) to ultimate customen 12,995,000 12,832,000 1.3 g
Customers served at year-end 501,710 490,375 2.3 q
Average kilowatt-hour use d
per residential customer 12,181 12,910 (5.6) e t
~
TABLE OF CONTENTS
\\
/
,}
/,-
Highlights Inside Fmnt Cover N
Report to Stockholders 2-4 y './><s j
' 0 i
Reb onal Power Acc 5
/'
Growth & Conservation 6-7 7
Service Area Map 7
Power and Fuel Supply 8-9 Construction 10-11 Rates and Our Customers 12-13 6eMaintaining reliable service Financial Review 14 helps keep PGE on the upswing.
Selected Financial Data 15 Customers appreciate the extra effort we put out and that Management's Discussion and Analysis of Financial Condition 15-16 makes everybody feel good M Consolidated Statements of Income and Retained Earnings 17 Lu.ow.r. w weg tr..mremu
~-- ~
~
Consolidated Balance Sheets 18-19 Uonsolidated Statements of Capitalization 20 Consolidated Statements of Chan;;es in Financial Position 21 Notes to Financial State _ments _ __ _ _ __ _ _ _ _ 22-28 Report of Independent PuhUc Accountants 29
)
Supplementar,f nformation to Disclose Effects of Changing Prices 30-31 I
Eleven-Year Summary 32-33 parhand Dyfend Info _rnlagen _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
34 MBT Y_Compmison for 1981 and 1980 _ _ _ _ _ _ _ _ _ _ _ _ _ _.
I 34 Stockholder Information 35 Management Comndttee 36 Senior Ot!icers and Board of Dinxtors Insida Back Coverj itotert H. Shes t ti~ht, Chairmam T
of the Bond and C.us f Fiemtiv@
ofHm{F WiHiant.; Lindblad. standing, Presiden8 i
I
~ ~~
.,-s.
w.s
_.,n
,y.s 7u__c
, TO OUR STOCKHOLDERSI.
-. =. _
i Theupswing continuedin 1981 j
Lastyear at this time we mported to you thatyour Companywas movingin the right direction. Earn- !
ings wem up. Our power supply f
impmwd. Major reorgamzation was implemented and the Regional Power Act was signedintolaw.
Good things happened at PGE.
We are pleased to tell 'ou that we have mamtained upw momen-tumin 1981. Improvement has con-tinuedin a numberofimportant amas. A glance at the farright col-l umn highlights a few.
This certainlyisn't to say the yearwas without pmblems.The lumber and housingindustries i
which am so important to the i
economy of Oregon were severely
{
hurt by highintemst rates.Unem-ploymentis up. Implementation of portions of the RegionalPower Act is lagging, and of couise, the finan-cialpmblems of the Washington l
Public PowerSupply System plants
!{
- 4 and #5 have caused the entim mgion concern.We believe that 1982 willbring favorable progmss in allof these problem amas.
i I
t t
f I
I f
2 3-
1 1
There are several reasons ments to ment a portion of the major forour25 percentincre se variable powercosts, msulted m overall mductions in rates for in camngs customers due to favorable power The $2.51 earninds per average conditions and virtually no opera-common sham wem the best the tion of combustion turbm, es.
Company has experienced. The
~
pnncipal masons were a good The major benefit of the power supply and responsive regu-Regional Power Act in 1981 was a latory actions.
27% percent rate reduction Water conditions wem excellent, for our residentialand fam
... Revenues rose to enabling us to serve 38 pertent of customers
$595 million.Up 21 percent our total requirements withlower On October 1,1981 we wem able to over 1980.
cost power from our own eight decrease rates for our msidential hydmelectric projects and fmm power ruceived from mid-Columbia and farm customers by 27% per-
... Net income increased hydm plants with whose owners cent. It was a long awaited benefit we have long-term puithase that we have vigorously pursued 30 percent and earnings for a number of years. Until pas.
Per average common contracts.
sage of this Act, our customers share mcreased to $2.54.
All necessary modifications of the'Rojan Nuclear Plant control were denied their rightful sham of Up from $2.03 a year ago.
buildmg wem made and received firm low-cost federal power, the benefits of which flowed almost appmval fmm the Nuclear Regula-entimly to publicly owned utilities ay commonh-tory Conunission(NRC).The plant idendincreased from 42 supplied 31 percent ofour 1981 elec-and to industries served directly by BPA cents to 43 cents per trical requimments. The Boardman We am disappointed, however,in sharein first quarter of Coal Plant pmvided nearly 10 per-cent of the power needed. When the delay and lack of clarityin the 1982.
acquisition contract proposals additional power was needed,it which would providelowercost was available for purchase from financing for qualifying generating
". Construction expendt-Canadian or other western utilities tures were held to the pmjects. Likewise, the conservation or from the Bonneville Power Adamustration (BPA).
programs and conditions for par _
same level as 1980.
ticipation by PGE am filled with
'Ibtal sales to PG&E exceeded uncertainties.
... Regional Power Act 2.3 billion kilowatt-hours Powersupplylooks good enabled one-time rate Favorable power supply conditions tor next 10 years reduction avera ing 27W 7
g enabled us to sellenergy to Pacific Barring substantial and unfomseen and farm customers.
Gas & Electric Company (PG&E) at 3.9 cents per kilowatt-hour (kwh) changes in the economy and the dunng the year. Tlus produced rev-energy mquimments of our custom-enues of $91 milhon.
ers, we have enough generating
... Net utility plant now capacity on line or under construc-exceeds $2 billion.
The Company entered into this Sales and Exchange Agreement tion to meet our projected customer with PG&E in November 1980. It load requimments into the 1990's.
... Customer count moved not only benefits our customers Our majority ownership of thm and stockholders from a financial
'Rojan Nuclear Plant and the Past the 500,000 mark, standpoint but it also has a provl-Boardman Coal Plant along with sion for return of the energy t our participation in Colstrip #3
...NRC approved meet our needs m the event of an and #4 and the Washington Public Trojan control building Power Supply System #3, under m dif'
' ns. The unanticipated outage of the hjan plant.
construction, aru the major masons.
P antis oper-l The fomcasted reduced rate of RateIction helpdmeet load growth is anotherimportant ating well.
revenue needs factor. With industrialgmwth and housing down, and higherenergy Responsive rate action which in-costs stimulating customer conser-cwased autimrized annual revenues vation, we are fomcasting annual came in thme steps during the load growth for the next 10 yeam of year. They wem:
2.8 pertent. Our most recent 20-Matrh 1,1981 -4.4% incmase, $21.9 yearload fomcast, completed in million annual mvenue increase.
January 1982, projects annual May 7,1981-10R% increase, $54.9 growth during that period of 2.3 million annual mvenue increase.
pement. That's down from our 2.9 July 3.1981 -2.5% increase, $14.2 percent fomcastjust a year ago and million annual mvenue increase.
down fmm 7 pement 10 yeam ago.
The quarterly power cost adjust-Fomcasting 20 years in the futum J
3
is obviously dependent onlong-Our guidelines to maintain our range asstunptions which may upward momentum in the years change. However, as energy costs ahead are firm continue to rise we see continued consumer attention towards con-
- 1. We am going to defer construc-servation and the wise and efhcient tion of additional majorgenerat-use of electricity.The percent may ing facilities until they can be vary, but the lower long-term financed under acceptable growth trend appears solidly conditions.
established.
- 2. When we do construct future Region's nuclear options kept generating facilities,we wish to do so underthe shelter and bene-open for the future fits offered by the Regional
~
Keeping expenses to a minimum, Power Act.
the Company continued licensing
- 3. We will continue to pmvide the efforts to establish the suitability of best service we can within the g
the Oregon Pebble Springs nuclear financialconstraints on our site, should the project be devel-business.
?+g oped in the futum Likewise, Puget
- 4. We willcontinue to sharpen Sound Power & Light Company, the the operations planning and sponsor of the Skagit/Hanford nu-budgeting program which maxi-C LMu&,
clear pmject at Hanford,is continu-mizes results and minimizes p* % '
M%'
ing to seek necessary permits and spending,while maintaining the W'.
site approval, flexibility to meet changing e
~:
N Wnat will happen to the Wash-pnonties.
_ M ~ ffi b b
'H.
ington Public Power Supply Sys-
- 5. We will be cmdible in all com-tem's (WPPSS) termination plans mumcation to the outside com-N M g, A
forplants #4 and #5is stillun-munity and involve them in the known. We do not have any own-decision making process.
k ership in those two plants, but we
- 6. We willbe sensitive to our moru QQ.
do own 10 percent of the WPPSS than 3,200 employees and will
- 3 plant which could be increased maintain a quality work e
in costifinvestmentin property environment.
common to both #3 and #5 is I
transferred to #3. Negotiations
.We are dedicated to these goals gQ, continue and we shall do every-with, full expectation that th,ey will provide quality service and,m-thing possible to protect the Com-creased benefits to our stocxhold-pany's interests.
ers, customers, and our employees.
- 3 New budget and accounting We thank you foryour confiaence management system to increase and continued support.
control teWe are involving customers and other groups in energy.
A acw Budget and Accounting M M db i
study projects and usan their Managementinformation system Robert H. Short opinions to help in our ecision has been developed which will Chairman of the Board making. Listening enables us maxim 2ze the usefulness of our and Chief Executive OfIicer to serve them better.e9 computer and integrates existing Ruthann Mogen, Citizen Involvement finanCialinformation systems for mom efficiency and improved con-
'~"c9 jj trol.1983 budgeting submittals will be developed m mid-1982 utilizing William J. Lindblad the new chart of accounts with President actual recording of transactions under the new system beginningin January 1983.
March 1982 4
REGIONAL POWER ACT built and operated by others.The contracts, called acqu,sition con-i Implementation of the Regional change if BPA's rates everexceed tracts, guarantee BPA will pay the our average system costs. With the costs associated with construction Power Act will take years-but the potential benefits are rising BPA mtes, and the costs of and operation o,f an acquired plant, termmatingWPPSS nuclear plants yvhether or not it produces electnc-worth the effort g4 and #5, many public utility dis.
ity This regionalizes the nsk of Dominating 1981 was our effort to tricts project their rates might soon
{8 0I[mj S{ mad ng the ensure provisions of the Regional equal, or excee. PGE s.
which should lower the cost ofen-Power Act were properly im-Centralized load forecasting and ergy fmm new power plants.
plemented. Our lawyers, analysts, planning by an independent At this time, among those pro-economists and engineers spent Councilis a major part of the Act jects BPA is considering acquiring thousangis of hours on tlus pmject.
from PGE am the 280 megawatt Other utilities in the area made
% guide BPA and the region in de-(mw) share of Colstrip #3 and #4, a simdar efforts. It is a huge mgional termining the need for new enorgY proposed small hydroelectric pm-challenge.
msources, the Act established ject, and a proposed wood-fimd Passed by Congress as the Pacific an eight-member Northwest Power cogeneration project.
Northwest Electnc Power Planning Planning Council. Each state-and Conservation Act, and signed Omgon, Washington, Idaho and We shall continue to seek into law in December 1980, this Montana -has two representatives resolution of problems legislation will shape PGE's, and on the Council.The Councilis in the There is much yet to be done befo$
the mgion's, energy future. Like the process of producing a plan, due in U.S. Constitution,it establishes a April 1983, that will fomcast the re-power plannmg, pro,ect financing, j
framework. But the interpretations gion's electricity needs during the nd conservation programs can be am left to others. This is where the next 20 years. In addition, the developed and implemented as intended.
difUcultieslie. The Company has a Councilis to recommend what re-We shall contm, ue to work with number ofimportant concerns sources BPA should acquim to meet about the interpmtations; some am the need.
BPA and the regional plannmg almady the subject oflawsuits. The Utilities can arrange to have council for resolution, smce clearly Act covers almost every area of BPA meet their future electricity m.
how the RegionalPower Actis im-electric power planning and supply.
quim,ments. % do this, BPA will l
ted haV a
on p
}ans e
re.
Lower rates-the first acquire the output of energy re-sources and sell the power back to tangible benefit utilities at wholesale rates. Because As we mentioned earlier, on Octo.
of uncertainties with the wholesale
'" W ber 1,1981 we reduced msidential rates, PGE has not yet contracted to
~ -
have BPA meet it tum energy requu,s customers' fu-l and farm customers' rates 27 %
rments.
e pen:ent. At that time, BPA began supplying us with 60 perrent of Priority in meeting energy needs thosecustomers electncalenergy is given to energy conservation needs. That amount increases 10 and renewable or i-.
perrent a year until it reaches 100 A
3 percent in 1985. In exchange, we sell tinconventional resources BPA an equivalent amount of elec-Under the Act, Congress authorized
' he tricity at our average system cost.
BPA to invest as much as $1.25 BPA power for this exchange cur-billion to aid in this effort.
4 j trutly costs 1.2 cents per kilowatt-BPA's initial conservation pro-s i hour. Our contspondmg average grams largely duplicate p-ograms V
system cost is 3.3 cents per kwh.
PGE has already undertaken. We L
/
We pass the savmgs on to our qual expect to participate in BPA's con-tiled customers in the fonn oflower 1
servation programs when there aru rates.The more expensive electric-mom significant benefits for our ity BPA receives in this exchange is customers and stockholders.
put into the rate pool forits direct Researth and development funds service industries.
for mnewable resoumes are also 66Perhaps more than anythm.g The price of BPA power available from BPA. The federal else, the, Regional P,ower Act emP asizes collective planning, h
is rismg rapidly agency is considering several pm.
ject proposals from the Company f recastmg and building to meet the region s future power i c s
r ei Act offers lower cost financing requirements. I just has to be a t.o cover the cost of the three Wash.
f r approved new generation big step orwar.99 John Frewing, Policy Analysis Manager mgton Public Power Supply System
% meet its customers' energy nuclear plants still underconstruc-needs, the Regional Power Act au-tion, as well as mflation. % protect thorizes BPA to enterinto contracts our stockholders and customers, to buy the output of power plants PGE can withdraw from the ex-5 i
l L
GROWTH & CONSERVATION Growthin the Company's service Strong encouragement of
~ '
area was rapid from 1970 to 1980 energy conservation expected o
waste of energy Emplo ent expanded 45 pertent; twice nationalrate during the Dunng these inflationary times 1970-80 period. Population grew as delaying the need for building any well, increasing 26 percentin the 10 major new generation facilities year period.
not aheady undenvayis desirable
'~
The Portland metmpolitan area, so encouragement of customercon-mostly served by PGE,is among servationis of gmatimportance.
the most diversified economic amas The Company's programs am in the country Manufacturing already saving nearly 200 million is spmad among allindustrialclas-kilowatt-hours a year. By 1990, sifications except tobacco. As we project our conservation, re-a crossroad for air, sea and land newable resourtes and cogeneration x,
transportation, Portland is also an pmgrams willmpresent1.5 billion
/'#
important trade and distribution kwh annually. This is equalto one-F center.
half the Company's share of energy r
/yv_". ;/
~
T.
nationalrecession has hit Omgon's
~
- 2. S M Like everywhem else,the cuirent fmmthe Boardman CoalPlant.
g:;
+-
PGE has financed 2
j ',
f.g 3~
~ v economy. The lumber and housing c; f,'. I d i %
high intemst rates and the general residentialunits s
industries am depmssed due to weatherization of 22,574
(
$D.4
]g Q.;j
~]
yal$e communitiesdependent
'Ib help our customers take this
- 4(
NUT largely on forest products indus.
important conseIvation step, PGE te f
.vv.x tries are the most affected. Personal has implemented one of the most s
y
..N ncome in Omgonin 1981 increased mnovative programsin the nation.
Af C&
3 pertentless than the national Energy a adits arranged by PGE,
Yd average. Average unemployment are first performed on eligible rest-D?
,a~.
was 2.5 to 3.0 pertent higher than dences. When the most cost effec-s - -
tive conservation measures am
-jn.
f.~;T the national rate.
y-n In 1981 only 8,356 new residences identified,the customers deciding F'
to weathenze select a qualified con-were connected to the PGE system; 4
e tractor or do the work themselves.
i down fmm 12,291 in 1980 and from f-the mcord 20,359 connected in 1972.
PGE then finances the work,
i s'
\\
1
'Iburist expenditums of $1.3 bil.
thmugh zero interest orlowinter-
- (~
lion wem up 13 percentin 1981 over estloans,or provides a rebate of up 1980. Retail sales hit an estimated to S350. 'Ib date, the Company has eellike showing customers
$13 billion in 1980 and gmss farm performed 50,462 energy audi,ts, and has finan d weathenzation how to conserve electricity and income was estimated at $1.6 bil.
use it wisely. It saves them lion in 1981, the second highestin for 22,574 of those hymg units. The money and delays our need to Oregon history.
cost of these, conservation services is recovered in our rates.
build expensive plants,w PGE sees the economic problems as cyclical and expects impmve-97,000 electric water heaters Kathy Thomas. Energy Management Department mentinthe months andyears ahead wrapped for customers because of the basic stmngth of our service area.
This is anotherimportant PGE conservation program.We hope to Electric heat and water heatmg eventually wrap all280,000 resi-remained popular choice dential electric water heaters in our Electricity is still the pmfermd heat service area. The insulating blanket source, selected by 79 perrent of put around each one saves approx-multiple-family dwellings and imately 540 kwh a year. A sumlar 42 percent of single-family homes.
Program for commercial water Most water heatingin new resi.
heaters is undenvay.
dences continues to be by electric-Solar water heating catching on ity About 61 percent of new single-family and 85 percent of new Even in rainy western Omgon, the multiple-family residences chose use of solarenergy to help with electricity for water heating in 1981.
water heating is becoming popular.
So is a new type of water heater heat pump. Use of either system saves about 2,400 kwh annually per 6
customer P(;F off ers finant ial m n oun ens.n m a ta r.o saa s m r m varusnen ns centives for either type of wms.no mstallation.
(_,
s ws-.
Solar assiste<: water heaters have been installed by 1,843 customers since the program began m ()ctober 1980 Our customers can chot se either a $300 rebate or an advance L-on their state and f ederal tax cred its The 177 customers who in stalled water heater heat pumps all received the $300 rebate as there e
are no tax credits available f or this
( h >v!('t -
Advice f or conunercial and indust nal ('ustA >mers (H1 h()w tri conserve elect ricity is provided tbrough a PGE energy audit y
program The number of audits doubled in 1981 'veh 215 per
-s tormed durir.g tne year We are helping the City of Port g
land with,;eneral conservation programs as well as st n'et!ighting.
R__-
Mercury vapor streetlights are p
being replaced with high pmssur" sodium lamps using one half the
-g v
energy u hile producing the same OUR SERVICE AREA amount of light; PGE has provided the city wit h a financial incentive PGE's compact and efficient tor ead of the more than 10'000 3,330-square-mile service area is located in the heart of Oregon's lan1ps converted since 1980.
population center. Service is pro vided to S4 incorporated cities and We even buy electricity from hlN.
our customers ME AVE
..s g4
() cent)n is blesst>(i wit h ablindant natllral restilln t's an(l stImt> P(;F
~@
customers are taking advantage of t hose it i operate small pt >Wer proj ects. PGE purchases any electricit) t he customers produce The 14
.g projects operating in 1981 eight Wlnd pt)Wt'rt4l and slX hydri)
Q N e====
t 'lt TI n(
Mt'Ilt*raled 54,14(i kWll v
- O LN%p t it elect ncit v.
N m
.,,,,,,,,,d
- '**"1 b
""C w. ;",.ew
"=
.,.,,, w~; :s; n~
'ii.saa k ""E#
4
.C +D.,,.
aame-se s
"'a 4,;.m.
- ?
o.
neoam==
- '"r %.
.=
4,sI l".
ys-r
O POWER AND FUEL SUPPLY factor of more than 85 percentin Power supply conditions were the last five mo,nths of 1981. Resolu-excellentlast year tion of the turbme problem should Net system load and obligations occurin early1983.
totalled 14.0 billion kwh dudng Fuel supplylines for the 233 the year. Our hydmelectdc projects megawatt liarborton combustion and long-term hydro contracts, turbine plant wem disconnected in the'IYojan Nuclear Plant and the May1981 as part of an agmement Boardman Coal Plant, combined with the City of Portland to mnder with purchases from other utilities, the units inoperable. PGE is pursu-met these needs. Operation of our ing relocation or sale of the units.
mom expensive oil or gas-fimd A second cogeneration unit to combustion turbines was minimal.
produce steam forindustrialuse Federal Energy Regulatory and electricity, was added at Pub-Commissionlicense renewal condi-lishem Paper Company's Newberg, 3,
tions were met on PGE's Oak Grove Omgon millinlate 1981. The millis 8'#
and Bull Run hydroelectric projects.
one of ourlargest customem. PGE 2
F Bull Run'slicenseisin effect until is negotiating the pu chase of elec-J 2004 and Oak Gmve's until 2006.
tricity from the project which is y
Energy from two City of Portland now capable of generating 40
@F Sgk '
3
. S hydroelectric power plants began megawatts.
flowing into the PGE systemin De-Fuel oil and uranium inventories g<
- A cember 1981 and January 1982.The were reduced in 1981
- m g
p 'j combmed 36 megawatt project
.K1 should be available for commercial The sale of 600,000 barrels of oil g
/ % j opemtioninearly1982.PGE oper-from the combustion turbine pro-j" ates and maintains the project and jects left about 370,000 barmls s
has the rights to all the electrical in storage at year-end.This brings 7
/
l output.
oilinventories to thelevelwe be-x i
The 1080 megawatt'Irojan Nu-lieve prudent under pmsent supply M( ati clear Plant performed well, generat-conditions.
ing 6.4 billion kwh in 1981. New
/
emergency msponse procedures were successfully tested with a full b.
y~
scale drillin March 1981. A Nuclear
^ ^
t Regulatory Crnmission ofIicial i
14 monitoring the test called it"the best plan I've seen." The 186-simn
~
public alert system was also suc-e6New technology and equip-cessfully tested in 1981.
ment makes our dispatching Management and operation of n
system more reliable than ever.
'IYojan wem audited in 1981 by the Our customers like that, and we independentInstitute of Nuclear g
do too.**
Power Opemtions(INPO). The audit p
Doug Parker. System Dispatching found'IYojan is being safely oper-ated by a qualified and competent staff. INPO's report also contained a number of positive mcommenda-
/
r tions for improvements.This inde-7 pendent review has been a valuable tool to us in insuring'Irojan has a
/
stmng operatmg management.
The 530 megawatt Boardman Coal Plant experienced shakedown problems for the first half of the year. Ibrbine blade difficulties kept the unit down much of the time.
o The manufactumr of the turbine mplaced the faulty blades with baf-fles while design modifications am 77 7,
g being made. Although the change reduced the plant's output by 35 megawatts until new blades amin-stalled, Boardman ran mliably themafter. It operated at a capacity a
(
{
The sale <it all uranium f or the Skagit Hanf ord pre > ject was J
7" negotiated in 1981. Our share was J
5(XL(XX) pounds. In additjon. be Q
~
cause of the extended tit,e trame jw v
f or additional major nuclear pro 1,b -
'A jects. PGE sold its share 5501XX)
[.x
- 7 pounds. of uranium being held for
, -y the Pebble Springs project
?;<
There was no change in tuel f
r" lated contracts f or t he Trojan p[
V Nuclear Plant. Fuel f or the next re
- v.,
fs*
tueling is stored on site. The Com
?
h
'7 7$ 1 *, 4 pany has i onu acts to cover Rojan i
y (iti M operations into the late 1980's.
h'Edj h
At Boardman. the Company took
'4.
+; U rf% g ew deliveg of almost 1.2 million tons
.I ]f${[h}k of coal f rom AMAX Coal Company
. ~ '
J). G t NM?&dnt#b Unit train:,.100 cars long, carry the
~
4
' f i; i 7$7 MM (W ?)(Zt;W "M,, i[!h c(>al st)me 12(X) miles t.) Boardman
- f --
f.i trom tne AMAX mines near Gi!]et'e.
f Wyoming.
M i, *,
. %}p; 4 %
- ' 4 -,4
p,,, ','
9.'
yy m.
t_
p*
'n g
- da ;j s ll; g x
. 3.5 w
," g..n
.,+
. Wh% ;
g%.
x l,'
i
- QLTpag it ht 0 t'111):
it/O p H ;,.
' W m
!] %,, jgj w
.. s
'9
- r hiiADb.,
L s L mac
> > n{,,; kew ti ne y
- 'yr: ^l 5 > R bc +
w.4 q.4
-y s
2*a p+
1.- di N. [u,p
,t s
9-
&; [
Q s
+
a.i.4k 8: w ;
4,. n:
1
+
+
! F 5 ~ ' d._!g* 1 D *t"
- 4. Q l
',f y
J 4
- }P w{hbQ#
.Qq y.
F y,
t m S1 4
2 i
f M5
!T Lp r Li y/
t ee Nearly 1 million persons
[
3=-
n+.
vis ted our 10 park areas last l/
1
~.
year. Project lands and waters provide excellent opportu nities for leisu re enjoyment.**
5
'd 1
hhfkr4 m, c.3
. 5 ?4_
The Troian Nuilear Plant supphed
, - y
(
H pere ent of ou r Uml elect ru al m
regtu reme nt s w$
~
~
E g
kel
CONSTRUCTION Constniction of conventional Springs sit,e sometime in 1982. PGE is sponsonng the project and has a resources proceeded wellin 1981 47.1 percent ownerslup. The Com-The next generating projects pany continues to examine ways to scheduled to supply electricity for msolve the mgulatory pmblems our system am the twin 700 and is, keeping project expenditums megawatt Colstrip coal-fimd plants to a mimmum.
bem,and #4 in Montana which are Skagit/Hanford nuclear project
- 3 g built by The Montana Power Company. PGE owns 20 percent of Pursues permits each unit. Construction went well Pmgmss is being made by Puget in 1981 and unit #3 should bein Sound Power & Light Company, the commercial operation,in January pmject sponsor,to mlocate the 1984. Unit #4 is to begin commer-Skag,it/Hanford project to the Han-g cial operation in mid-1985.
ford Nuclear Reservation near While the financial problems of Richland, Washington. NRC hear-
/g Washington Public Power Supply ings on the formal application
/
System plants #4 and #, were the shou?d begin in late summer 1982.
5 f ggyg top energy news stones m the PGE owns 30 percent of the project.
region, construction contmued on
'o.
., ri
,. m.m plant #3. Overall construction ad.
Additional hydroelectn.c vanced from 24 percent complete to capacity exanu,nca 43 percent complete by year-end.
Under a relicensing agreement for PGE owns 10 percent of the 1240 its Bull Run hydmelectric project, I
megawattprojectwhichissched-FGE is required to improve fish uled for commertialoperationlate passage at the Marmot Dam on the m 198E upper Sandy River. Marmot diverts Pebble Springs activity water for use at PGE's Bull Run P ant. One proposal considemd was l
kept at minimum level g
to build a 3.25 megawatt power-E Faced with numemus regulatory house and a new fishladder at the delays and restrictive Omgon laws, Marmot site.
itis stillimpossible to determine Following a publicinvolvement the futum of the Pebble Springs pmcess, the Company chose the nuclear pmject.
option to reconstruct the existing Pebble Springs has undergon7 ladder to fulfill its mlicensing com-nine years of state and federal pm-mitment. The additional plant with ceedings. In April 1982, the Nuclear a new fish ladderwere acceptable Regulatory Commission is sched-to the public and appeared finan-uled to hold a hearing and mview cially feasible but we decided not to possible alternative sites for the pursue this generating project un-project. It is possible the NRC will less itis acquimd by BPA under the issue a partialinitialdecision on provisions of the Regional Power the suitability of the Oregon Pebble Act.
S sTTo Y e$ '
uniis unorn s oF NE" "
14 LOCAnoN G ATTS E Es FUEL
)
)
Colstrip #3 Colstrip, Montana 700 20 Coal 1984
$157,070 1985
- 4 700 20 Coal WPPSS #3 Montesano. Washington 1240 10 Nuclear $134.709 1986
$116.216 1990@s Skagit Hanford #1
- Hanford. Washington 1275 30 Nuclear ea
- 2 1275 30 Nuclear Pebble Spmgs #1 Arlington. Oregon 1260 47.1 Nuclear
$145*491
- 2 1260 47.1 Nuclear 1990's m tic =encap w w..nime.
tage o mna. =ncun enti..w w.mnie nigmum re am.cno cuna g mi = sa sunam anis chagig a uca.m.mmummisinaan n
to m
yfp fff
^ 5 NNtf&gg4&
m y 3 x q'e..
gog ne mv w{
f.
- M;T Research and development g.
J Q.
g_ pMl k%
c>ntinues in a number of areas WWW-
% -g$
%rd,vave. solar and biomass are
$ MUV pist a few of the renewable and un
' ' h..
conventional energy resources the Tc 4"
Company is actively pursuing to V
f meet tuture energy needs.
7 Substantial financial support for projects t hat appear most leasible
'~
may come f rom HPA in the f orm of procuntment contracts. cooperative agreements and loan guarantees or
$$.[?Q.$N[$kh'%4 power purchase contracts made a s we ' pje
. ND, - M$ i DW WO possible by the Regional Power Act.
N N
The Company has subnutted to W3 7%NVf HPA a list of projects f or considera 3$$$h/fkM[d*
Nfh hb f}p
[k tion We expect several to be ap proved ior developnu nt One of the f %i8 k^ % %yy@Whl$[bdEMy*
MN most promising, projects l'GF u m
- FM p
M'M W pn.posmg is a f arm of 32 windmills 0 4 Rt" Cry
- on the southera (ireg(>n n as: Each
(,Q ~
. g.
windmil! would be 154 h et ta!i and
~
.gl
-~
able to generate 2 5(X) kdowatts kk
.3 p --
{jg g
" g' s PGE h iined with vo ot.her util.tles tu P
x md Windtarns. l'u of San I ran E
h$c risco. to pn)poce h" propet in
- NNQ((y?hsiyo
,.y-m e
m h ;a
.~
December l %.
w %GC &2: [k N bg i
()ther projects include a 3 500 kw kh f
- iS wood burning biijmass plant. solar l d d y (( " $ @ % 5 thermal and solar photovoltaic jF I
projects. an 11.500 kw f uel cell t hat
/
h 49fhM;eu
- Mf 1 would also generate heat f or indus j
o
@A d y
~
methane gas f rom landfills and tnal process use. two plans to use fMW
?
?#
a proposal to convert ocean wave y
energy into electricity Research in the renewable areas, as well as ways to make present soun es and distnbution tech niques more efficient is being coor dinated with the Electnc Power He search Institute t EPHIL PGE is one of 584 utilities nationwide sponsor ing this organization In 1982. we will contribute $2 3 milhon to its g u.a programs EPhl is non at wi,rk < >n gs,"
st)me l,2OO n'st an h inn (i W'velrip ment projects valued at $13 bilhon W[~r.A.c At Iht' Iitca} lt' vel. P('h plans r
r to invest some $200 000 m n sear h
' ' ~
4 pn >]ects rany,inp, in im a st udy a >t Wf x)d pf de dt'('ay Il1 tish pn >te< t u in all(l IIlt' (!t've} iip!nt'nt t d a si)ldr hf %it jy
" *Gl h pump U[iMNZ.hnhbuhW %@ MA
,,~
Wind is one alternate energy Wr' v
pg.,
avwf%
.E souri e development being pro m
A+
posed Pr otot ype show n is m f eet I
tah and can produi e up to 1500 1:h k ilow at ts e-W'"?
((G
'?-
w
RATES AND OUR CUSTOMERS 1981 saw rates go up and down f1981.The adjustment was zero in the third quarter. In the fourth In late January 1981,the Omgon quarter, residential and farm cus-Public Utility Commissioner asked tomers received a 1.4 mill credit the Company and Pacific Power &
while other classes of customers Light Company not to file the rate received a 3.6 mill cmdit.The credit cases he knew they wem preparing.
to residential and farm customers Instead, he ordemd an investigation waslower because of the erchange by'Ibuche Ross & Co., an account-contract with BPA.The power cost
[
ing firm,into the Oregon rate adjustment for the first quarter of hearing procedures and into the 1982 is zeru.
financialconditions and rate needs of both utilities.He asked for study 1982 to be busy yearin rate area completion by April 1,and in the Inflation and increases in BPA's j
interim allowed the Company to rates willmake 1982 another busy raise rates 4.4 percent, effective yearin the Company's mgulatory
- g March 1,1981.
and rates amas.
[
Results of the'Ibuche Ross study In February 1982, the Company or o m o - u n.
were pmsented to the Commis-filed for a generalrate incmase g+/ (', y y '
sioneron April 3,1981. Afterreview-averaging 13% percent to cover mg the study, the Comnussioner incttases in capital costs and m, u,
said he wouid allow the Company higher operating and maintenance an additional 10.8 percentincmase expenses.The capitalor fixed costs pmvided it did not file for another have risen because of continued general increase in 1981. This condi-upward pmssure on all money tion was not to affect any tracking costs and the further normalization rate adjustments due to memases ofincome taxes mlating to depre-in BPA's rates. PGE agreed with the ciation as required by the 1981 condition and filed for a 10.8 per-Economic Recovery'Ihx Act. The centincmase which became effec-operating and maintenance ex-tive May 7,1981, penses haveincreased due to A BPAincmase in the costs of generalinflation, regulatory re-services and power did occurJuly quirements, and pricing changes Company requu,t effect on the 1,1981. The cos for fuel and purthased power.
I rd a 2.5 percent The 62 to 80 pertent proposed tracking rate increase which BPA rate increase announced in n
n n
so si was granted on July 3.1981.
January 1982,will mquim a Com-Power exchange permits rate Pany trackingincmase effective when the BPA increaseis allowed.
decreases The Company will participate m Successfulcompletion of an ex-the BPA rate hearings to repmsent change contract under the Regional its stockholders' and customers' Power Act allowed the Company to intemsts. From the information tv-announce on September 1,1981 that ceived thus far,it appears that the it was filing for a rate decmase of tracking incmase for our residential 27W percent forits residential and and farm customers will be be-farm customers, tween 10 and 20 perrent.
The dectrase became effective on October 1,1981 when BPA began Public ownership activity exchanging with the Compan reduced in 1981 sNr t 1and The Columbi,a River People's Utility o
hn farm customers' usage.
District continued its at, tempt to in 1981, favorable power supply take oyer PGE distribution prop-erties in the small PUD area. It costs allowed the Company to use its power cost adjustment tariff to Passed a $300,000 tax levy tn May, m st of which will go to fmance provide cmdits to bills in three of condemnation effbrts. Whether the the four quarters. The power cost PUD can raise funds for buyout adjustmentis designed to mflect tluuugh condemnation is stillin changes in power costs other than those anticipated in setting base serious question,. The trial court decision upholdmg the bond elec-rates.
All PGE customers received a 2.3 ti n is being appealed.
millcmditin the first quarter and a 3.6 millctrdit in the second quarter 12
Miters in Yanthill and ni>rthern Pt'[k counties.,oundly detedled ani >ther attenipt t(i f orm a Pe< >ple's Utility District. On Septemirr 15.
1981. over 62 percent < >t' t he voters said "no" to the proposed take< >ver of PGE's service territory in the ttvo ct)untleS.
Due to t.he pr()hlerns t ht> ptiblic.
po\\ver agenClt's dre en('olllllt'FlHM in the Washington Public Posver Supply Systen1's cost situation we expect little or no public osvnership activity in 1982 O
-e IL w-
[
~
W)
Y sW
~,. _
f
% tdQ 6eInflation is particularly hard on senior citizens and the handicapped. There are five of us who spend full time helping them with budgeting and energy assistance.99
!.y nda !)a n ris< r. % ra r un H presettata"
('onservation programs su( h as Port land's st reet light i onversion are a< i ommodated in rates Hulbs are being used that burn only half as mu4 h energs but provide t he same hght
- 4
FINANCIAL REVIEW Common stock investment plan raises $11 million in 1981 Improved financial performance 1981 financial results achieved During the year the Company's mntinued through clear plans and strong Common Stock Investment Plan controls was modified to allow PGE's cus-The Company's financial perform-tomers to participate and to pro-l ance improved sigmficantly m 1981, Financial objectives established for vide a five percent discount on continum, p, the trend started m 1981 were achieved through strict stock purchased in the plan.These 1980. Net income increased 30 per-contml of capital and operating changes stimulated an enthusiastic l
cent from $86 milhon to $112 expenditures.
response with plan participation million ar'd earmngs per average Financial success m. today,s ncreasing to a tom 1 of about 19,500 common sham mcreased 25 percent economic envimament depends on stockholders and customers at from $2.03 to $251. 'Ibtal operating effective planning and budgeting.
December 31,19'21.The plan raised revenues grew to $595 milhon, an At PGE we beh, eve the flext'bility t
$11 million for PGE in 1981,an in-increase of 21 perrent.
take opportunities and defend.
crease of 27 percent over 1980.
agamst unforeseen adversities in The Economic Recovery Tax Act 4
1981 was the product of clear objec-of1981 includes a provision which tives, good plans, and our commit-may offer tax benefits to partici-ment to achieve them.
pants in our Common StockInvest-
, Operations plannme and budget-ment Plan. Although mgulations e souncts mg is an emphasized discipline at
~*
pertaining to, and perhaps limiting PGE. We were able to mspond t the Tax Act benefits have not yet volatile and expensive capital mar ~
been issued,we believe that our om kets m 1981 by mducmg planned stockholders will qualify for a tax
,g capital spendmg ny $58 mill.on.*I.he deferral of up to 3750 annually Company's 1981 operattnp plans
=
l
,,1) were achieved within budgeted ex-($1,500 on ajoint tax mturn)on
_x common and prefermd stock divi-penditures. Understanding our dends reinvested toward the pnonties and contmlbng spending purthase of common stock.This was the key to our success.
maximum deferral would include 1981 internal funding the total dividends minvested fmm contributed to improvement all common and preferred stock inverments in qualified utility Continued improvement in internal companies.
funding of capital expenditures contributed to our positive finan.
Future financing designed to cial performance last year. Internal muumize cost funding provided 39 perrent of our We expect volatile capital markets 1981 capital trquirements,up from to continue through 1982.The um 18 pertent in 1980.
Company's 1982 external financing
'Ib fund the mmainder ofits 1981 needs are estimated at $210 million capital requimments and to reduce including a debt refinancing of$40 short-term debt, the Company million. The Company estimates raised $139 million through the sale 35-40 perrent of 1982 capital ex-of debt and equity securities. 'Ib penditures will be funded inter-
,,,c m mum ws achieve the lowest overall cost of nally. The balance will come from a capital we sought out and suc-platined sale of two million shares cessfully completed several non-of $25 par value preferred stockin o3 2
traditional financings including a early 1982 and from long-term debt y---
2 sale of tax benefits permitted bY and common stock sales planned y
the Economic Recovery Tax Act of for later in the year. We will con-s r.
j 1981. The Company's capital re-tinue to take advantage of opportu-
.,.....)
. Nwt qturements and sources of funds nities to minimize the cost of are shown in the graphs at the left.
capital.
M PGE continued to pursue the11-Dividend increased
[{.
t '
? ;1 nancial benefits provided by the p p.t qtg..
fgn Regional Power Act. This complex In December 1981 the Board of Q [g y. d ' j N.
legislation offers the potential to Dimctors increased the quarterly gg sigruficantly lower f mancmg costs common dividend to 43% cents
%y v.g. ; x n xy for major construction projects by per share for an annual rate of $1.74 a
Nw p 4y.-
sharing risks regionally. While the per share.
final outcome of this legislation will Dividends paid on both common not be known for severalyears, we and preferred stock in 1981 am fully am committed to making the Act taxable. 'Ihxability results fmm work positively for our stockhold-both the improved quality and ers, our customers and the mgion.
quantity of our 1981 earnings-a tmnd we intend to continue.
14 m
Portland General Electne Company and subsidiaries SELECTED FINANCIAL DATA Years Ended December 31 1981 1980 1979 1978 1977 (Thousands of Dollars)
Operating Revenues
$ 594,789
$ 490,237
$ 349,981
$ 303,678
$ 253,073 Net Income 112,341 86,200 46,122 48,784*
36,988 Long 'Ibrm Debt" 1,110,834 1,097,685 799,441 781,619 706,224
'Ibtal Assets..
2,242,011 2,061,683 1,821,328 1,588,038 1,374,839 Earnings per Average Common Share
$2.54
$2.03
$1.06
$1.40*
$1.09 Dividends Declared per Common Share.
$1.71
$1.70
$1.70
$1.70
$1.70
- Excludes the cumulative effect t$7,845,000 or $.32 per share) of a change in accounting policy of accruing estimated unbilled revenue.
" Includes cumulative preferred stock subject to mandatory redemption requirements.
Pordand General Eu ctric Company and Subsidiaries MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION RESULTS OF OPERATIONS Net income and earnings per sham The addition of Boardman gives the August 1980 -19.6% it. crease to coven for 1981 increased 30% and 25%,
Company increased diversityin Boardman respectively, over 1980. Earnings im-power sources, a larger load capabil-being placed provement resulted from a slight in-ity and an increased earnings base.
in service.
crease in sales to ultimate customers Despite recurring operating prob-July 1980
- 3.2% increase to cover and a substantialincrease in sales to lems during the first half of the year, BPA wholesale other utilities. Favorable hydro con-Boardman performed well during rate increase.
ditions in the region and increased 1981 supplying almost 10% of the January 1980 -17.7% generalincrease.
output of the Trojan Nuclear Plant Company's r.et system load. Opera-January 1979 -11.6% generalincrease.
fIYojan)and the Boardman Coal Plant tion of the plant places,the Company On October 1,1981 an avera e rate (Boardman) enabled the Company to into a, temporary position of surplus reduction of 27%% for resi ential incmase its sales to other utilities by capacity.The Company has an agree-and farm customers became effective.
I15% from the previous year. Also ment for the sale of surplus power This rate reduction was the result of improving earmn s were favorable which includes a provision for the power exchange provisions of the and timely rate re ief granted by the return of energy when needed by Pacific Northwest Electric Power Public Utili,ty Commissioner of Ore-the Company Planning and Conservation Act(Act).
gon (Commissioner) and strict con-In 1981 'IYojan continued its excellent The reduction should not affect fu-trol of costs.
performance, generating 31% of the tune earnings since the reduction in Net income and earnings per sham Company's net system load.The revenues is offset by lower power for 1980 had increased over 1979 plant experienced no unscheduled costs provided through a power pur-primarily due to the outstanding per-down time during the year.The chase and sale contract with BPA.
formance of'Irojan, good hydro con-combined operation of'nojan and Operating revenues and purchased ditions, and general rate relief. In Boardman and favorable hydro con-power costs for 1981 were reduced by addition, net income and earnings ditions enabled the Company to approximately $18 million as a result per share for 1979 included a fourth utilize an economic mix ofinternal of the power exchange agreement.
quarter loss incurred due to excess generation and purchase,d power and The e'rects ofinflation on the Com-power costs resulting from the ex-thereby avoid the operation of ex.
pany can be seen in the steady in-tended outage of Trojan and adverse ensive combustion turbine facilities crease over the past three years in hydm conditions.
r the second consecutive year, administrative expenses, main-Effective November 15,1979 the Operating revenues for 1981,1980 and tenance and repairs, and interest Commissioner granted the Company 1979 have increased primarily as a charges. Rate relief enables the a power cost adjustment tariff (PCA).
result of the following rate incmases.
Company to partially recover these This taritinow provides for 80% re-rising costs but present ratemaking covery of variable power costs in July 1981 - 2.5% increase to cover practices do not produce utility rates excess of those m existing general Admm.ev.ille Power that specifically recover increases re-Bonn istrati Bp 9}e ale I ting to the rapi,dly escalating costs taritis. The taritr also provides for re-costs when they are less than those of plant and equipment. For addt-fimds of 80% of savings m power tional discussion of the effects of used to set existing general taritrs.
MaY 1981 - 10.8% Eenera increase-mflation, see Supplementary Infor-The PCA effectively eliminates ex.
March 1981 - 4.4% generalincrease*
mation to Disclose the Effects of tmme fluctuations in camings which Changing Prices on pages 30 and 31.
may be caused by unanticipated changes in power costs.
15
Portirnd Gener:1 Electric Comp ny tad Subsidiaries CAPITAL RESOURCES AND LIQUIDITY The Company's 1982 capital expendi-Reduced externalfinancing needs ture programis estimated at $340 provided a degree of financing flexi-
. selective in type and tinu,any to be bility allowing the Comp millionincluding Allowance for ng of Funds Used Durmg Construction (ADC). The Company's 1983-84 pro-financing and enabling us to mduce gramis estimatedin the range of our reliance on traditional markets.
$700 million to $750 million, includ-Instead, the Company focused on ing ADC. Approximately 60% of these
- smaller, specialized transactions estimated expenditures are for which included $43 million proceeds -
generating plant facilities,25% for :
from the sale of tax-exempt pollution transmission, distribution and gen-
. control bonds, $11 million sale of eral facilities, and 15% for the con-tax benefits under the Economic Re-servation program, nuclear fueland
. covery'lix Act of1981 and a $25
,enditures. Cost estimates million intermediate-term European other ex)d on the Compa,ny's present are base bankloan.These transactions also -
plans forjoint ownerslup of certain
- enabled the Company to obtain funds.
future generating facilities and pm-at alowercost than alternatively sent construction schedules and are available through traditional financ-sub ect to further revision as a result ing methods and, thereby, mduced of caanges in such plans and poten-interestexpense from previously 1
tial effects of the Act.The Company
- anticipated levels for the year.
currently has sufficient generating In addition, the Company sold three -
capacity and resources to meetits million additionalshares of common projected customer demand untilthe stock in March and 869,000 addi-early 1990's. Accordingly, the Com-tionalshares throughout the year pan does notintend to undertake underits stock purchase plans for the mancing of any additionalmajor net roceeds of $35 million and $11 generating facility until the mid-1980's. mill on, respectively. The cumulative Due to the size of the Company's 1982 effect of1981 financing activity was a capital expenditure program, a por-decrease in the Company's long-term tion of the related cash requirements debt as a percent of total capitaliza-must be met through external sources.
tion to 56% at December 31,1981 The Company expects that approxi-compared to 58% in 1980.7'he Com-mately 60% to 65% ofits 1982 cash -
pany plans to continue to gradually capital expenditures will require ex-decreaseits debt ratio as a percent ternal financing to be provided from -
of total capitalization with the objec-the sale of debt and equity securities, tive of reaching and maintaining a and mayinclude other financing ar-
- capitalization structure of about 50% -
rangements.The issuance of addi-long-term debt,38% common stock.
tionalpreferred stock and first and 12% preferred stock.
mortgage bonds requires the Com-The Com any's primsryinternal pany to meet certain earnings cover-soun:e o7liquidityis cash flow from age provisions. Presently the Com-~
current o rations. Externally bor-pany has sufficient earnmgs cover-
. rowings [om banks and under bank-age to issue either preferred stock 5 supported financin
. are used as a normI agreements first mort age bonds.The Company s -
part of day-to-future abi ity to meet these earmngs
- day operations to meetinterim cash coverage rovisions depends primar-
'needs.In 1981 the Company entered.
11 upont eadequacyandtimeliness into a new $25 million revolving o raterelief, credit agreement with a group The portion of the Company's capital -
. of foreign banks, giving us a total of -
expenditures requiring external
$215 million in short-term commit-financing decreased to 61%in 1981 ments and lines of credit from var-compared to 82% in 1980.The de-ious domestic and foreign banks.
crease was due to alarger rate base (Boardman in service), improved operating conditions and the sale of certain fuel-related assets.
IG L '
Portland General Electric Company and Subsidiaries I
CONSOLID ATED STATEMENTS OF INCOME For the Years Ended December 31 1981 1980 1979 (Thousands of Dollars)
$594,789
$490,237
$349,981 Operating Revenues (Note 1)
Operating Expenses Purchased power (Note 1).
73,495 106,755 75,111 Production...
94,693 62,434 69,522
'IYansmission and distribution....
15,958 13,116 12,805 60,611 47,865 38,728 Administrative and other.
Maintenance and repairs 28,530 23,006 18,418 Depreciation (Note 1).
54,991 43,176 33,642
' Paxes other than income taxes.
31,213 24,945 24,166
'Ihxes on income (Note 2).
50,819 36,747 12,300 410,310 358,044
. 284,692 Operating Income 184,479 132,193 65,289 Other l'1corte and Deductions 1
Aliowance for equity funds used during construction (Note 1) 26,505 32,017 27,445 Other--net ofincome taxes.
(3,212)
(6,526) 1,270 23,293 25,491 28,715 Interest Charges Interest on long-term debt 119,469 93,886 70,326 Interest on short-term borrowings.
7,751 12,060 9,096 Other..
3,814 1,744 1,030 Allowance for borrowed funds used during construction (Note 1).
(35,603)
(36,206)
(32,570) 95,431 71,484 47,882 Net income.
I12,341 86,200 46,122 Preferred Dividend Requirement 13,373 13,607 13,830 Income Available for Common Stock
$ 98,968
$ 72,593
$ 32,292 Common Stock Average shares outstanding
. 39,024,435 35,788,621 30,403,911 Earnings per share
$2.54
$2.03
$1.06 Dividends declared per share.
$1.71
$1.70
$1.70 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS For the Years Ended December 31 1981 1980 1979 (Thousands of Dollars)
Balance at Beginning of Year
$ 85,796
$ 74,080
$ 94,918 Net income.
I12,341 86,200 46,122 198,137 160,280 141,040 Dividends Declared Common stock 67,640 60,877 53,130 Preferred stock.
13,373 13,607 13,830 81,013 74,484 66,960
'3alance at End of Year
$117,124
$ 85,796
$ 74,080 The accompanying notes are an integral part of these statements.
17
1 I
Portland General Electric Company and Subsidianes CONSOLID ATED BALANCE SIIEETS ASSETS At December 31 1981 1980 (Thousands of Dollars)
Electric Utility Plant-Original Cost in service Production...
$1,054,332
$1,011,139
'IYansmission.
147,189 144,621 Distribution.
437,667 412,601 General,
81,693 67,854 1,720,881 1,636,215 Acct.mulated depreciation (Note 1).
(292,086)
(244,016) i 1,428,795 1,392,199 Construction work in progress (Note 6) 529.415 377,919 Nuclear fuel, less accumulated amortization of $74,089 and $48,957 (Note 1).
51,897 72.089
_ 010,107 1,842,207 2,
Other Property and Investments Conservation program 32,350 22,552 Other.
17,767 10,586 50,117 33,138 Current Assets Cash 1,188 3,394 Receivables Customer accounts-net 42,253 33,604 Other accounts and notes..
22,652 15,859 Estimated unbilled revenues (Note 1).
32,082 30,098 Inventories-average cost Fuel oil 12,243 34,597 Coal..
6,089 6,846 Materials and supplies..
19,258 18,792 Property taxes applicable to subsequent periods.
10,193 8,415 Prepayments.
7,703 7,852 Deferred power costs (Note 1) 3,897 153,661 163,354 Deferred Charges 28,126 22,984
$2,242,011
$2,061.683 18
CAPITALIZATION AND LIABILITIES At Dccember 31 1981 1980 1
(Thousands of Dollars)
Crpitalization (see accompanying statements)
Common stock equity.........................
$ 703,990
$ 627,069 Cumulative preferred stock Subject to mandatory redemption........................................
41,993 43,500 Not subject to mandatory redemption.
105,000 105,000 Long-term debt.
1,068,841 1,054,185 1,919,824 1,829,754 Current Liabilities Long term debt due within one year...................................
69,216 17,878 Short-term borrowings (Note 4).
18,750 37,000 Accounts payable and other accruals............................................
76,936 72,213 30,382 27,559 Accrued interest..
Dividends payable....
20,694 18,695 A ccru ed ge ne ral taxes.....................................................
25,897 20,248 Accrued income taxes.......
10,072 1,069 Deferred income taxes (Note 1)..........
13,165 12.602 265,112 207,264 n:r
" red i nco me taxe s ( No te l ).................................................
17,603 19,075 ucierred investment tax credits (Note l)...........
22,882 2,215 Deferred tax benefits (Note l).
10,409 Miscellaneous.
6,181 3,375 Commitments and contingencies (Notes 6 and 7).....
57,075 24,665
$2,242,011
$2,061.683 The accompanying notes are an integral part of these statements.
19
Port!tnd Genera 1 Electric Comoany end subsidirries CONSOLIDATED STATEMENTS OF CAPITALIZATION At December 31 1981 1980 (Thousands of Dollars)
Common Stock Equity (Note 3)
Common stock. $3.75 par value pcr share,100,000,000 shares authorized,39,930,291 and 36,060,802 shares outstanding.
$ 149,739
$ 135,228 Other paid-in capital 441,277 410,123 Capital stock expense.........
(4,150)
(4,078)
Retained earnings............
117,124 85,796 703,990 36.6%
627,069 34.3%
Cumulative Preferred Stock (Note 3)
Subject to mandatory redemption
$100 par value per share,2,500,000 shares authorized ll.50% Series, 149,934 and l65,000 shares outstanding........
14,993 16,500 8.875% Series,270,000 shares outstanding.
27,000 27,000 41,993 2.2 43,500 2.4 Not subject to mandatory redemption 9.76% Series, 100,000 shares outstanding...........
10,000 10,000 7.95% Series,300,000 shares outstanding.
30,000 30,000 7.88% Series,200,000 shares outstanding.
20,000 20,000 8.20% Series,200,000 shares outstanding.....
20,000 20,000
$25 par value per share,6,000,000 shares authorized
$2.60 Series, 1,000,000 shares outstanding...................
25,000 25,000 105,000 5.5 105,000 5.7 Long-term Debt (Note 5)
First mortgage bonds Maturing 1982 through 1986 10% Series due April 1,1982 40,000 40,000 3%% Series due November 1,1984 6,426 6,886 9%% Series due June 1,1985 27,000 27,000 4%% Series due September 1,1986.
9,920 10,240 Maturing 1987 through 1990-4%%5%%....
16,600 17,100 Maturing 1991 through 1995-4%%5%%..
64,756 65,719 Maturing 1996 through 2000-5%W13%%...
244,651 244,801 Maturing 2001 through 2005-7%%I1%%
142,000 142,000 Maturing 2006 through 2010-8%%-13%%
175,000 175,000 Pollution control bonds, Port of St. IIelens Oregon,7%%, due 2006..
12,735 12,735 Port of Morrow, Oregon,6%%, due 2008 34,000 34,000 Port of Morrow, Oregon,8%%12%, serially duc 1984 to 2011 25,450 City of Forsyth, Montana,8%%, due June 1,1984 80,000 Amount held by trustee....
(62,150) 10% notes due March 1,1984.
50,000 50,000 16%% bank loan due November 13,1986.....
25,000 14%% notes due 1987 47,709 50,000
'IYojan trust agreement.
98,600 96,222 Bank credit agreement 100,000 100,000 Other 360 360 1,138,057 1,072,063 Long term debt due within one year.
(69,216)
(17,878) 1,068,841 55.7 1,054,185 57.6 "Ibtal capitalization.
$1,919,824 100.0% $1,829,754 100.0%
The accompanying notes are an integral part of these statements.
20
Pmtland General Electric Company and Subsidiaries CONSOLIDATED STATEMENTS OF CliANGES IN FINANCIAL POSITION For the Years Ended December 31 1981 1980 1979 frhousands of Dollars)
Source of Funds Funds provided internally Net income
$112,341
$ 86,200 $ 46,122 Non cash charges (credits) to income Depreciation and amortization.
81,023 61,757 46,840 Deferred income taxes-net.
42,247 33,409 11,293 Allowance for equity funds used during construction (26,505)
(32,017)
(27,445)
Other-net 4,785 8,563 2,799 213,891 157,912 79,609 Proceeds from external financing Long-term debt 93,490 325,282 102,672 Common stock..
45,512 63,817 93,834 Short-term borrowings-net (18,250)
(93.000) 59,000 Sale / leaseback of assets (Note 7) 10,393 20,246 Sale of tax benefits (Note 1).
10,573 131,325 306,492 275,752 Proceeds from disposition of nuclear fuel 21,054
$366,270
$464,404
$355,361 Application of Funds Gross utility construction.
$294,651
$292,833
$254,289 Allowance for equity funds used during construction (26,505)
(32.017)
(27,445) 268,146 260,816 226,844 Conservation program 9,798 16,366 5,994 Dividends declared 81,013 74,484 66,960 Retirement oflong-term debt and preferred stock.
29,003 61,690 45,119 Miscellaneous-net.
12,763 1,435 7.990 Increase (decrease) in working capital excluding current maturities and short-term borrowings Cash..
(2,206)
(1,515) 522 Receivables.
15,442 16,952 4,684 Estimated unbilled revenues.
1,984 8,317 1,572 Inventories..
(22,645) 18.457 24,525 Accounts payable and accruals.
(24,760) 11,649 (41,516)
Other-net (2,268)
(4,247) 12,667
$366,270
$464,404
$355,361 The accompanying notes are an integral part of these statements.
4 e
21
,,m Portland General F.lectric Company and subsidiaries NOTES TO FINANCIAL STATEMENTS NOTE 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES The Company's accounting policies conform to generally accepted accounting princi-ples for regulated public utilities and are in accordance with the accounting require-ments and the ratemaking pracFces of the regulatory authorities havingjurisdiction.
Consolidation Principles-The financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany balances and trans-
~
actions have been eliminated.
Revenues-The Company accrues estimated unbilled revenues for services provided to month-end.
Purchased Power-The Company credits purchased power costs for the net amount of benefits received through a power purchase and sale contract with the Bonneville Power Administration. Reductions in purchased power which result from this ex-change are passed directly to the Company's residential and small farm customers in the form oflower rates for services.
Allowance for Funds Used During Construction (ADC)- ADC represents the pretax cost of borrowed funds used for construction purposes and a reasonable rate for equity funds. ADC is capitalized as part of the cost of utility plant and is credited to income but does not represent current cash earnings (see Note 9(a)-Subsequent Events).The maximum ADC rates used are determined by a formula established by the Federal Energy Regulatory Commission and were 13.32%,12.25% and 11.50% for the years 1981,1980 and 1979.
Depreciation-Depreciation is computed on the straight-line method based upon the estimated average service lives of the variour classes of plant in service. Depre-ciation expense as a percent of the related average depreciable plant in service ap-proximated 3.4% in 1981,3.3% in 1980, and 3.0% in 1979.
Depreciation of the 'ITojan Nuclear Plant ('lYojan) includes provisions for estimated decommissioning costs. The Public Utility Commissioner of Oregon (Commissioner),
in his May 1981 order, allowed the estimate of decommissioning eqsts to be increased to $117,000,000. The sinking fund method is used to determine the current provision that is included in rates to customers.
The costs of renewals and replacement of property units are charged to plant, and repairs and maintenance are charged to expense. The cost of property units retired, other than land, is charged to accumulated depreciation.
Amortization of Nuclear Fuel-Amortization of the cost of nuclear fuelis based on the quantity of heat produced for the generation of electric energy. The Commissioner has allowed increased revenues to provide for the estimated cost of permanent stor-age. The accumulated cost of permanent storage at December 31,1981 is $19,847,000, and is included in accumulated amortization of nuclear fuel.
Retirement Plan-The Company has a noncontributory pension plan covering substantially all of its employees. The total pension expense for 1981,1980 and 1979 was $5,631,000, $4,593,000 and $3,865,000, including amortization of prior service costs over not more than 30 years. The Company makes annual contributions to the pl"i equal to the amounts accrued for pension expense. A comparison of the actu-anel present value of accumulated plan benefits (using an assumed interest rate of 7 %%) and net assets available for benefits is presented below.
January 1, January 1.
1981 1980 (Thousands of Dollars)
Actuarial Present Value Vested..
$43,648
$38.859 Nonvested.
2,176 1.564
$45,824
$40.423 Net Assets.
$4s,710
$37.669 The present value of accumulated plan benefits and net assets available for benefits have not changed materially.3 of December 31,1981.
22
l l
Deferred Power Costs-The Company has a power cost adjustment tariff (PCA).
The PCA, which is adjusted quarterly by the Commissioner, permits 80% recovery of variable power costs in excess of those used for setting existing general tariffs. The PCA also provides for refunds of 80% of underruns in power costs from those used in setting existing general tariffs. Allowed costs are collected or refunded through an adjustment to customers' bills and costs greater or less than the total monthly adjustment are deferred.
Income ' nixes-Deferred income taxes are provided for timing ditTerences between financial and income tax reporting to the extent permitted by the Commissioner for ratelnaking purposes. Deferred taxes are not provided for a portion of accelerated depreciation which has the effect of passing such reductions on to the Company's customers. Portions of deferred income taxes are classified as current liabilities to the extent the related assets are current.
The net proceeds from the sale of tax benefits under the provisions of the 1981 Economic Recovery Tax Act are deferred and are being amortized to income over the estimated lives of the related properties.
'n.x reductions resulting from investment tax credits are defened and amortized to income over a 30 year period, the approximate life of the related properties. The Company estimates it has $72,000,000 ofinvestment tax credit earcyfatwards avail-able for application against any future Federal income tax payments.
NOTE 2.
INCOME TAX EXPENSE The following table shows the detail of taxes on income and the items used in computing the differences betwcen the statutory Federalincome tax rate and the Company's effective tax rate.
Years Ended December 31 1931 1980 1979 (Thousands of Dollars)
Income Tax Expense Currently payable.
$ 9,066
$ 204 $ 408 Deferred income taxes Capitalized interest.
20,273 24,987 7,943 Acreierated depreciation.
7,667 9,422 3.361 Deterred power costs (1,202)
(1,810) 1,810 Jnbilled revenue.
563 3,020 207 Nuclear fuel-negative salvage value (4,973)
(3,492)
(931)
Capitalize <1 payroll taxes and other employee benefits.
1,695 2.804 580 Other (3,635)
(163) 442 Investment tax credit adjustments 22,422 (151)
(102)
$51,876
$34.821
$13,718 Utility.
$50,819
$36,747
$12,300 Nonutility.
$ 1,057
$ 11,926) $ 1,418 Effective Tax Rate Computed tax based on statutory Federal income tax rates applied to income before income taxes.
$75,541
$55,670
$27,526 less reduction in taxes resulting from Accelerated depreciation..
6,738 6,904 6,019 Allowance for equity funds used during construction.
12,547 14,728 12,699 state and local taxes.
14,790)
(2,891)
(975)
Investment tax credits.
6,438 151 102 Other 2,732 1,957 (4,037)
$51,876
$34.821
$13,718 EtTective tax rate 31.6%
28.8%
22.9%
23
Portl:nd G;nertl Electric Compiny tnd Sub idi:ri;s NOTE 3.
COMMON AND CUMULATIVE PREFERRED STOCK The following changes occurred in the common stock, cumulative preferred stock -
subject to mandatory mdemption and other paid-in capital accounts (dollar amounts in thousands).
Cumulative Preferred Stock Subject to Common Stock Mandatory Redemption Number
$3.75 Number
$100 Other of Par of Par Paid-in Shares Value Shares
~ Value Capital Outstanding, December 31,1978 25,995,935
$ 97,485 495,000
$49,500 $290,197 Sales of stock......
5,439,921 20,399 73,434 Redemption of stock (30,000)
(3,000)
December 31,1979..
31,435,856 117,884 465,000 46,500 363,631 4,624,946 17,344 46,471 sales of stock.....
Redemption of stock (30,000)
(3,000) 21 December 31,1980 36,060,802 135,228 435,000 43,500 410,123 Sales of stock......
3,869,489 14,511 31,002 Redemption c,f stock (15,06G (1,5076 152 Lecember 31,1981 39,930,291
$149,739 419,934
$41,993 $441,277 (a) Common Stock At December 31,1981, the Company has reserved 2,494,453 authorized but unis-sued shares of common stock for issuance under its common stock investment plan and 175,641 authorized but unissued shares of cominon stock forissuance under its employee stock purchase plan.
(b) Cumulative Preferred Stock Subject to Mandatory Redemption Mandatory sinking fund requimments on the 11.50% Series and 8.875% Series preferred stock are $1,500,000 through 1982 and $3,300,000 from 1983 through 1992. The Company is required te mdeem annually the following number of shares of each Series at $100 per share: 11.50% Series-15,000 shares; 8.875% Series-18,000 shares (beginning in 1983). At its option, the Company may redeem, through the sinking fund, additional shares each year. The sinking fund may be satisfied in whole or in part by purchasing shares in the open market. No dividends may be paid on common stock or any class of stock over which the preferred stock has priority unless all amounts required to be paid for dividends and sinking fund payments have been paid or set aside.
Cumulative preferred stock subject to mandatory redemption is redeemable at the -
option of the Company at the following prices: 11.50% Series at $108 per share to January 15,1985 and 8.875% Series at $107 per share to April 30,1983. Each Series is redeemable at reduced amounts after such respective dates.
(c) Cumulative Preferred Stock Not Subject to Mandatory Redemption Cumulative preferred stock not subject to mandatory redemption outstanding is redeemable at the option of the Company as follows: 9.76% Series at $107 to November 1,1983; 7.95% Series at $106 to July 1,1982; 7.88% Series at $106 to April i
1,1983; 8.20% Series at $106 to July 1,1983; and $2.60 Series at $29 to April 1,1986.
Each Series is redeemable at reduced amounts after such respective dates.
l NOTE 4.
SHORT-TERM BORROWINGS I
The Company has $180,000,000 in commitments under various domestic and foreign l
credit agreements and $35,000,000 in lines of credit from domestic banks. Borrow-l ings are available at the prime commercial rate or some increment above such rate, or l at the London interbank offemd rate plus a margin. One of the cmdit agreements to-l taling $100,000,000 provides for an extension of the 1984 expiration date via a 3-year I
term option. All of the commitments and lines of credit currently require various fa-l cility fees and commitment fees, but no compensating cash balances.
l l
24
Short. term borrowings and related interest rates were as follows (dollar amounts in thousands).
December 31 1981 1980 1979 As of the end of the period:
Aggregate short-term debt outstanding
$ 18,750
$ 37,000
$130,000 Weighted average interest rate nn short-term debt outstanding...
14.8%
20.5%
15.7%
Unused commitments!!ines of credit.
$196,250 $153,000 $ 45,000 For the twelve months ended:
Average daily amounts of short-term debt outstanding.
$ 36,170
$ 71.381
$ 55.876 Weighted daily average interest rate..
18.3%
14.6%
13.2%
Maximum amount of short-term debt outstanding during the period.
$ 74,000 $165,500 $130,000 The interest rates exclude the effect of commitment fees and facility fees.
NOTE 5.
LONG-TERM DEBT The Indenture securing the Company's first mortgage bonds constitutes a direct first mortgage lien on substantially all utility property and franchises, other than explessly excepted property.
Under a $100,000,000 agreement with a trust, the Company finances its feel for Trojan. In addition, the trust can provide funds, not to exceed 40% of the trust's as-sets, to the Company on its promissory note issued to the trust. The fuel notes are re-paid as the fuel is consumed and all borrowings, including those on the promissory note, are due March 1,1984 at the earliest or March 1,1988 at the latest. At December 31,1981, the weighted average intemst rate on outstanding notes was 12.8%. The un-used portion of the agreement at December 31,1981 was $1,400,000. The estimated current portion of the fuel notes ($18,699,000) is included in curmut liabilities.
The Company has a bank credit agreement for a maximum $100,000,000 oflong-term financing. Under the agreement, the banks provide support for commercial paper sales or make leans directly to the Company. The agreement, which expires on Au-gust 31,1985, can be extended annually for an additional year with the consent of all the parties thereto. At December 31,1981, borrowings are represented by commercial paper sales at a weighted average interest rate of 13.7%. There is a commitment fee of % of 1% per annum on the unused support and loan commitment.
The following principal amounts oflong-term debt become due for redemption through sinking funds and maturities during the years 1982 through 1986.
Sinking Funds Maturities iThousands of Dollars) 1982..
$ 8,801 5 63,116 1983..
9,301 24.139 1984.
10,737 132,344 1985.
10.551 127,200 1986.
14.968 33,520 Tt e sinking funds include $2.701,000 in 1982, $3,201.000 in 1983 through 1985, and $3,951,000 in 1986 which. in accordance with the terms of the Indenture, the Company anticipates satisfy.
ing by pledging available additions equalto 166%% of the sinking fund requirements.
NOTE 6.
INVESTMENTS IN UNLICENSED NUCISAR PROJECTS
'Itvo nuclear projects in which the Company is a participant have been significantly delayed due to regulatory proceedings and litigation relating to Federal and state laws and regulations, including environmental considerations. For additional details see construction table on page 10.
(a) The Company owns a 30% interest in the Skagit/Hanford nuclear project (Skagit),
consisting of two units sponsored by Puget Sound Power & Light Company (Puget).
Puget has announced publicly that it has decided to mlocate Skagit from the site in Skagit County, Washington to a site at the U.S. Department of Energy's Hanford Reservation near Richland, Washington. After extensive site and environmental studies, Puget has applied to the Department of Energy to purchase approximately 640 acres of land on the reservation. Puget believes that Skagit can be brought on line with fewer licensing risks and other uncertainties at the Hanford site than at the former site. The Nuclear Regulatory Commission (NRC) application has been amended to substitute the Hanford site for the Skagit site. An application has been made to the Washington State Energy Facility Site Evaluation Council to begin 25
Portland General Electric Company and Subsidiaries evaluation studies related to relocation to the Hanford Reservation. Puget is limit-ing expenditures for the project to preconstruction and licensing activities. Until there is reasonable assurance that the political and regulatory climate will allow construction, once started, to be completed within a reasonable time and at a rea-sonable cost, Puget does not expect to proceed with actual construction.
Although the outcome of regulatory proceedings and litigation cannot be pre-dicted with certainty, management presently believes Skagit will ultimately be built. At December 31,1981, the Company's investment in Skagit totaled
$116,216,000, including $41,003,000 of ADC.
(b) The Company is sponsor of and has a 47.1% interest in the Pebble Springs nuclear project (Pebble Springs) located in Oregon. Applications have been filed with the appropriate state and Federal agencies for the necessary site and construction permits, licenses, and certificates. There has been intervention by environmental and antinuclear groups in both the state and Federal proceedings on such applica-tions. No Federal work authorization, construction permits, or licenses have been issued for Pebble Springs. The Company is currently considering alternative sites in the state of Washington for, and alternative sources of generation to, Pebble Springs as a result of the delays in licensing and the passage of Oregon Ballot Measum No. 7 (see below).
Management cannot presently determine if the project will ultimately be built because of uncertainties discussed herein (see Note 9(a)-Subsequent Events). If Pebble Springs is cancelled, the Company will seek regulatory authorization to amortize its investment over a reasonable period and to recover such amounts through rates. The Company believes that those costs should be recovered through the ratemaking process; however, there is no assurance that such ap-proval will be granted (see below). At December 31,1981, the Company's invest-ment in Pebble Springs totaled $145,491,000, including $54,960,000 of ADC.
(c) Ballot Measure No. 7 was approved by Oregon voters at the November 4,1980 gen-eral election. The measure conditions the siting of any new nuclear plant on the finding by the Oregon Energy Facility Siting Council (EFSC) that a permanent dis-posal facility for spent nuclear fuel and high level radioactive waste has been licensed to operate by the Federal Government. At present, no such facility exists.
The measure also requires statewide voter approval before the issuance of a site certificate.Thus, the issuance of a site certificate for Pebble Springs in Oregon cannot occur until such a finding is made and Oregon voter approval is obtained.
In addition, the measure prohibits the Commissioner from authorizing the is-suance of securities to finance any nuclear power plant for which a site certificate was not granted before November 15,1980, until the EFSC has found that such a repository for radioactive waste has been licensed. Although Ballot Measure No. 7 has not yet been interpreted by the Oregon courts, the Attorney General of the State of Oregon has issued an opinion that the measure does not apply to nuclea:
plants located outside Oregon.
A similar measure adopted in California in 1976 was declared unconstitutional by the United States District Court. Tnat decision was appealed to the Court of Ap-peals for the Ninth Circuit. On October 7,1981 the Court of Appeals overturned the District Court decision and held that the measure is constitutional. At this time, the Company is awaiting the outcome of Pacific Legal Foundation's attempt to have this decision reviewed by the United States Supreme Court, but does not know whether the Supreme Court will agree to such a review, or the outcome of any such review.
If any of the Pebble Springs or Skagit units wem moved to another site, there may be investments by the Company attributable to the former site which may not be considered to be a part of the cost of the unit being constructed at the new site.
AdditienM!y, if any units were ultimately cancelled, there would be cancellation charges borne by the Company. In either case, the Company would seek regulatory authorization to amortize the amount of any cancellation charges or investments over an appropriate period and to recover the amount through its rates. If any can-cellation charges or investments could not be recovered through the ratemaking process, the Company would have to write them off.
The Commissioner, in an order involving minor expenditures of another Oregon electric utility, stated that Ballot Measure No. 9 (adopted by the voters of Oregon in the 1978 general election) requires the shareholders to assume the risks associated with a new plant until it is placed in service. In addition, the order stated that if a 26
plant is not completed and is abandoned, the related costs would not be allowed for ratemaking purposes. The Company and its legal counsel do not agree with this interpretation of the ballot measure and would contest any attempt to applyit to any projects abandoned prior to being placed in service.
NOTE 7.
COMMITMENTS AND CONTINGENCIES (a) Purchase commitments outstanding, relating principally to construction, totaled approximately $157,000,000 at December 31,1981. Cancellation of the purchase commitments could result in substantial cancellation charges. Other substantial commitments have been made underlong-term agreements to provide nuclear fuel for Trojan and coal for the Boardman Coal Plant (Boardman). Such agreements may be terminated and would requim payment of termination charges.
(b) The Company has entered into long-term power purchase contracts with certain public utility districts in the State of Washington and with the City of Portland, Oregon (the Bull Run project). Annual costs to the Company are based on its pro-portionate share of the operating and debt service costs of each hydroelectric project whether or not operable.
Significant statistics regarding those projects are as follows (dollar amounts in thousands).
Rocky Priest '
Bull Reach Rapids Wanapum Wel Run Revenue Bonds Amount sold to finance pmjects.
$313,100
$166,000
$197,000
$207,600
$55,000 outstanding at
$217,379
$100,536
$127,260
$187,105
$55,000 December 31,1981 Company's current share of output, capacity and cost Percentage of output 12.0%
15.6%*
20.4%*
28.4%*
100.0%
Capacity in megawatts, based on nameplate rating..
145 123 170 220 36 Annual cost, including debt service 1981
$ 2,700
$ 2,200
$ 2,900
$ 4,300
$ 2,600
$ 2,200
$ 2,900
$ 4,300 1980.
. $ 2,600
$ 2,300
$ 3,000
$ 4.600 1979..,,
Completion date 1971 1961 1964 1969 1982 Date oflong term contract expiration 2011 2005 2009 2018 2017
- The Company's percentage of output of Priest Rapids and Wanapum will be reduced to 13.9% and 18.7% by 1983 and Wells will be reduced to 20.3% by 1988.
The Company's sinking fund obligations under the above long-term power pur-chase contracts are shown below. The interest portion of debt service on the proj-ects is not fixed and determinable and is, therefore, excluded from the table below.
(c) The minimum annual rental commitments under noncancelable leases and sinking fund obligations under long term power purchase contracts at December 31,1981 are as follows:
Iong-term Rental Commitments Contracts Non-capitalized sublease sinking Basic Financing Rentals Fund Rentals Leases (Credit!
Total obligations (Thousands of Dollars) 1982
$ 12.545
$ 6,082
$ (1,360) $ 17,267
$ 2.215 1983 12,407 5,847 (1,255) 16.999 2,553 1984 12,367 5.089 11,064) 16,392 2.621 1985 12,369 4.962 11,000) 16,331 2,721 1986.
11,999 4.458 (981) 15.476 2.846 Remainder,
242.192 54,334 11,600) 294 926 144.785 Total.
$303.8_79
$ 80.772 $ (7,260) $377,391
$157,741 During 1979, the Company entered into a sale / leaseback for its share of the coal-handling facilities at Boardman for a basic lease term of 25 years. The Company has an option to renew the lease for five years at one-half the average lease rate paid during the basic lease term and an additional 15 years of renewal options at the then fair rental value. The Company has options, commencing in 1990, to re-purchase the facilities for the greater of fair market value or a stipulated loss 27
Portirnd General Electric Comptny tnd subsiditries value specified in the lease. The lease represents $63,152,000 of basic lease com-mitments in the table above, During 1978, the Company entered into a sale / leaseback ofits headquarters com-plex for a basic lease term of 40 years with up to 25 years of renewal options. The Company has options, commencing in 2003, to mpun:hase the complex for fair market value as encumbered by the lease. At the end of the basic lease term, the Company must offer to purchase the complex for $15,000,000. The mortgage on the complex, which is guaranteed by the Company, was assumed by the lessor and currently represents $31,073,000 principal outstanding. This lease represents
$186,333,000 of basic lease commitments and $7,260,000 sublease rental credits, for a net rental commitment of $179,073,000 in the table above.
Commitments on two combustion-turbine leases, expiring in 1998 and 1999, mpre-sent $75,271,000 of noncapitalized financing leases in the table above. In the event of certain contingencies, the Company may be required to purchase the turbines at a maximum price of $52,752,000 in 1982 and at decreasing amounts thereafter. At the expiration of each lease, the Company has an option to mnew the lease for five years at the then fair rental value or to pun:hase the turbines at the then fair mar-ket value.
Substantially, all other leases with renewal options provide for negotiation of the rental amount at the time such options are exercised. Other leases with purchase options are not material.
Certain leases presently accounted for as noncapitalized financing leases meet the criteria for classification and accounting as capital leases, but in accordance with ratemaking treatment, are accounted for as operating leases. If such leases had been accounted for as capital leases, assets and liabilities would have increased by $39,240,000 and $47,870,000, respectively, at December 31,1981. The capitaliza-tion of such leases would not have a material effect on net income.
NOTE 8.
SUPPLEMENTARY INFORMATION Years Ended December 31 1981 1980 1979 Incomo Items (Thousands of Dollars)
Taxes other than income taxes Property.
$l8,682
$14,575
$15.798 Payroll 3,970 3,006 2,448 City taxes and license f ees.
7,721 6.674 5.340 other.
840 690 580 Total
$31,213
$24.945
$24,166 Rentals charged to expense Basic rentals'...
$10,093
$ 8,207
$ 7,093 Contingent rentals" 3,043 1,236 809 Noncapitalized financing leases
- 6,133 6,158 5,939 sublaase rentals *
(I,831) 12,148)
(2,135)
Total
$17,438
$13.453
$11,706 Amortization of nuclear fuel,
$26,032
$18.581
$13.198
- sce Note 7(c) for details concerning the Company's long term lease commitments.
- Based on kwh of gross generation at certain Company hydroelectric projects.
The amounts for maintenance and repairs, depreciation and taxes other than income taxes included in the Consolidated statements of Income but not set out separately therein are not material. The amounts of amortization of intangible ussets and advertising costs are not material.
Effects of Changing Prices-For detail see pages 30 and 31.
NOTE 9.
SUBSEQUENT EVENTS ta) Beginning January 1,1982, the Company has decided to exclude from earnings the capitalization of ADC on the Pebble Springs project. This decision was made due to the growing regional uncertainty surrounding electrical load growth and the resources needed to meet that gmwth, as well as the licensing of new nuclear generation in the State of Oregon.The projected effect on 1982 earnings is a reduction of $13,000,000.
(b) The Company filed a registration statement with the Securities and Exchange Commission during February 1982 for the sale of 2,000,000 shams of $25 par value, cumulative preferred stock.
(c) During February 1982, the Company filed for a net 13.5% average rate increase with the Public Utility Commissioner of Oregon.
28
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
'Ib the Board of Directors and Stockholders of Portland General Electric Company:
We have examined the consolidated balance sheets and statements of capi-talization of Portland General Electric Company (an Oregon corporation) and subsidiaries as of December 31,1981 and 1980, and the related consolidated statements ofincome, retained earnings and changes in financial position for each of the three years in the period ended December 31,1981. Our examina-tions were made m accor lance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considemd necessary in the circumstances.
As discussed in Nota 6, Oregon voters approved a ballot measure on November 4,1980 which requires that a radioactive waste disposal facility be provided by the Federal Government before a site certificate for construction of a nuclear plant in Oregon can be issued. In addition, the ballot measure requires voter approval of any site certificate. Management cannot predict what impact this ballot measure will have on the ultimate construction of the Pebble Springs nuclear project (Pebble Springs). However, if Pebble Springs is ultimately can-celled or relocated, recovery of the investment and any cancellation cost 's subject to the Company receiving adequate rate treatment. Accordingly, the recoverability of the Company's mvestment in Pebble Springs cannot presently be determined.
In our opinion, subject to the effect of such adjustments, if any, as might have been required had the outcome of the uncertainty mferred to in the preceding paragraph been known, the financial statements referred to above present fairly the financial position of Portland General Electric Company and sub-sidiaries as of December 31,1981 and 1980 and the results of their operations and the changes in their financial position for each of the three years in the period ended December 31,1981 in conformity with generally accepted ac-counting principles applied on a consistent basis.
Portland, Oregon, k
h gnpk February 17,1982.
29 j
e Portland General Electric Company c nd Subsidiaries SUPPLEMENTARY INFORMATION TO DISCLOSE THE EFFECTS OF CHANGING PRICES (Unaudited)
Financial statements presented in accordance with generally accepted accounting principles report historical costs which do not reflect the changing value of the dollar which occurs during periods of rapidly changing prices. Accordingly, such statements do not adequately measure the impact ofinflation on busmess enterprises. In recognizing the need to assist readers of financial statements in assessing that impact, selected information on the effects of changing prices is presented.
'Iwo methods of measuring the effects of changing prices are presented in the tables.
The first method provides data which has been adjusted for general price changes by using the Consumer Price Index for all Urban Consumers as a broad based measure of general inflation-ary effects. This method provides financial information in dollars of equivalent value (constant dollars).
The second method provides data reflecting the effects of changes in specific prices (current costs) by indexing the existing plant using the Handy-Whitman Index of Pubhc Utility Construc-tion Costs. This measure reflects the curren: cost of replacing existing plant, rather than the historical cost. Current cost amounts differ from constant dollar amounts to the extent that specific prices have increased more or less rapidly than prices in general.
Depreciation expense is the only item of the historical income statement which has been ad-justed in arriving at constant dollar and current cost amounts ofincome. Revenues and other amounts are considered to reflect the average price levels for the year, and accordingly have not been adjusted.
STATEMENT OF INCOME FROM OPERATIONS ADJUSTED FOR CHANGING PRICES For the Year Ended December 31,1981 Conventional Constant Dollar Current Dollar liistorical Costin Average Costin Average Cost 1981 Dollars 1981 Dollars (Thousands of Dollars)
Operating revenues.....
$594,789
$ 594,789
$594,789 Purthased power and production..
168,188 168,188 168,188 Other operating and maintenance 136,312 136,312 136,312 expenses...
Depreciation expense.
54,991 110,000 130,000 Income tax expense.
50,819 50,819 50,819 Allowance for funds used....
131,034 131,034 131,034 Interest expense...
during construction.
(62,108)
(62,108)
(62,108)
Otherexpense 3,212 3,212 3,212 482,448 537,457 557,457 Income (excluding reduction to net
$112,341
$ 57,332*
$ 37,332 recoverable cost).
Increase in specific prices (current cost) of plant, held during the year *
$356,000 Reduction to net recoverable cost.......
$(110,000)
(130,000)
Effect of increase in general price level..
(316,000)
Excess ofincrease in general price level overincrease m specific prices (after reduction to net recoverable cost)...
(90,000)
Gain from decline in the dollar's purchasing power on net amounts owed.
I11,000 111,000 Net 1,000
$ 21,000
' Including the reduction to net recoverable cost, the loss from operations on a constant dollar basis would have been $(52.668,000).
- At December 31,1981, current cost of electric utility plant, net of accumulated depreciation, was
$3,929,160,000 while historical cost (net cost recoverable through depreciation) was $2,010,107,000.
30
- Depreciation was determined by applying the Company's actual depreciation rates to the corresponding constant dollar and current cost plant amounts.
No adjustments have been made to the income tax expense as tax regulations give n,o effect to inflationary gains and losses.
Under Public Utility Commissioner of Oregon (Commissioner) regulations, only the historical cost of plant is recoverable in revenues as depreciation (with the exception of decommissioning costs; see Note 1 of the Notes to Financial Statements).'Ib reflect this limitation the current cost and constant dollar cost of plant which is not pmsently recoverable in rates as depreciation is shown as a " reduction to net recoverable cost".
'Ib properly reflect the economics of regulation by the Commissioner, the reduction to net recoverable cost should be offset by the " gain from decline in the dollar's purchasing power on net amounts owed". Since only the historic cost of depreciation is recoverable, present deprecia-tion provisions are inadequate to maintain the cash flows needed to replace plant. However this factor is offset by debt which will be repaid in dollars having less purchasing power. The " gain from decline in the dollar's purchasing power on net amounts owed" is primarily attributable to the substantial amount of debt which has been used to finance plant.
The following information should be viewed as an approximation rather tl'an as a precise measure of changing prices.
SELECTED FINANCIAL DATA ADJUSTED FOR CHANGING PRICES For the Years Ended December 31 1981 1980 1979 1978 1977 (Thousands of Average 1981 Dollars)
Operating revenues..
$ 594,789
$ 541,088
$ 438,523
$423,346 S379,819 Historical Cost Information Adjusted for GeneralInflation (Constant DollarInformation)
Income from operations
$ 57,332
$ 41,253
$ 27,270 Income per common share after preferred dividend requirement 1.13
.73
.33 Netassets atyear-end.
$ 681,000
$ 661,000
$ 654,000 IIistorical Cost Information Adjusted for Changes in Specific Prices (Current CostInformation)
Income fmm operations
$ 37,332
$ 30,216
$ 17,246 Income per common share after preferred dividend requirement
.61
.42 0
Excess ofincrease in general price level overincrease m specific prices (after reduction to net recoverable cost)..
$ (90,000) $(161,000) $(207,000)
Net assets at year-end
$ 681,000
$ 661,000
$ 654,000 GeneralInformation Gain from decline in the dollar's purchasing poweron net amounts owed.........
$ 111,000
$ 153,000
$ 168,000 Cash dividends declared 1.71 1.88 2.13 2.37 2.55 percommon share Market price percommon share at year-end 12.10 12.25 15.40
$ 22.49
$ 28.36 Average Consumer Price Index.
272.4 246.8 217.4 195.4 181.5 31
)
Portland Genertl Elxtdc Comp ny and Subsiditries
]
ELEVEN-YEAR
SUMMARY
1981 1980 SALES AND Kilowatt-Hours Sold (millions)
CUSTOMERS Residential...
5,349 5,526 Commercial 3,844 3,717 Industrial.
3,695 3,479 Miscellaneous.
107 110 Sales for resale.
2,312 1,042 15,307 13,874
'Ibtal.
Operating Revenues (thousands)
Residential....
$212,463
$201,192 Commercial 149,507 127,165 Industrial.
116,295 94,482 Miscellaneous.
17,888 21,431 98,636 45,967 Sales for resale...
$594,789
$490,237 Total.
Average price per kwh 3.73' 3.34' (sales to ultimate customers),
Customers (at year-end)
Residential..
443,414 433,527 Commercial.
56,698 55,279 Industrial..
197 193 Miscellaneous..
1,397 1,373 Sales for resale 4
3 Total........
501,710 490.375 Residential Service (average per customer)
Annual use(kilowatt-hours).
12,181 12,910 Annual revenue..
$483.82
$470.01 Price per kilowatt-hour..
3.9 78 3.64' ELECTRIC Kilowatt HourOutput(millions)
OPERATIONS Generated (net)-hydro.
2,205 2,271 Generated (net)-thermal.
5,888 4,941 Purchased-primarily hydro 8,196 7,779 16,289 14.991 Losses and company use.
982 1,117 Tbtal..
15,307 13,874 Average Cost per Kwh Generated (exclusive of fixed costs) 1.33'
.98' Purchased (net of exchange credits).
.90' l.37' UTILITY Gross Additions (thousands)
$294,651
$292,833 PLANT Net Plant (thousands)
$2,010,107
$ 1,842,207 STOCKHOLDERS
- Common Stock Equity (thousands).
$703,990
$627,0S9 EQUITY AND Book value per share
$17.63
$17.39 LONG. TERM Dividends paid pershare.
$1.70
$1.70 DEBT (December 31)
Average shares outstanding..
39,024,435 35,788.621
$2.54
$2.03 Earnings per sham....
Preferred Stock Equity (thousands)....
$146,993
$148,500 Dividend requirement (thousands)..
$13,373
$13,607 Embedded cost 9.0%
0.1%
Long 'Ibrm Debt (thousands)..
$1,068,841
$1,054,185 Interest (thousands).
$119,469
$93,886 Embedded cost 10.5%
11.5%
EMPLOYEE Number of Employees (December 31) 3,244 3,106 DATA Operating Payroll (thousands)..
$57,809
$46,590 Construction and Other Payroll (thousands) 533,134
$32,701 32
s t
1979 1978 1977 1976 1975 1974 1973 1972 1971 5,731 5,365 5,120 5,024 4,982 4,700 4,685 4,624 4,414 3,711 3,403 3,175 3,045 3,169 2,632 2,649 2,500 2,235 3,585 3,251 3,486 3,439 2,699 3,364 3,285 3,135
'2,788 112
.113 109 107 104 106 113 119 134 513 1,173 44 394 530 600 829 1,781 1,391 13,652 13,305 11,934 12,000 11,484 11,402 11,561 12,168 10,962
$159,135
$143,829
$130,052
$109,571
$ 88.351 5 73,124
$ 63,007
$ 57,142
$ 54,249 96,462 77,000 64,695 56,027 53,628 41,881 36,691 31,983 29,155 72,839 -
52,662 47,721 39,654 24,504 20,888 16,806 14,294 13,106 9,414 12,107 6,996 7,073 8,898 6,970 5,235 5,444 5,639 12,131 18,080 3,609 5,462 4,561 3,138 3,094 3,580 2,770
$349,981
$303,678
$253,073
$217,787
$179,942
$146,001
$124,833
$112.443
$104,919 2.54' 2.30' 2.08' l.8 08 1.55' l.29' l.1 l' l.02' l.04' 423,389 407.056 389,700 371,315 358,438 347,671 338,188 323,729 318,132 i
54,029 52,107 49,883 47,071 45,547 44,143 41,521 40,373 38,076 l
184 187 192 192 187 199 188 186 164 1,367 1,347 1,444 1,367 1,370 1,397 1,047 1,125 1,906
_2 1
2 3
3 1
5 2
1 478,971 460,698 441,221 419,948 405,545 393,411 380,949 365,415 358,279 13,814 13,459 13,455 13,787 14,139 13,733 14,144 14,334 14,197
$383.54
$360.81
$341.76
$300.68
$250.74
$213.67
$190.22
$177.14
$174.49 2.78' 2.68' 2.54' 2.18' l.7 78 1.56' l.34' l.24' l.23' 2.285 2,313 2,114 2,537 2,693 2,753 2,282 2.779 2,685 4,523 1,307 4,675 1,147 170 152 328 7,754 10,819 5,936 9,214 9,613 9,465 9,806 10,463 9,265 14,562 14.439 12,725 12,898 12,476 12,370 12,416 13,242 11,950 910 1,134 791 889 992 968 855 1,074 988 13.652 13,305 11,934 12,009 11,484 11,402 11,561 12,168 10,962 1.12'
.7 88
.52'
.46'
.33'
.39'
.25'
.10'
.12' i
.97'
.71'
.688
.34'
.4 38
.28'
.31'
.24'
.24'
$254,289
$278.265
$201,896
$191,475
$182,513
$153,580
$152,198
$110,431
$50,298 a
$1,658,797
$ 1,482,862
$1,245,532
$1,088,253
$946,165
$785,312
$668,336
$529,724
$430,474 i
$551,612
$478,759
$410,323
$361,070
$283,938
$241,965
$187,746
$182,823
$157,052 l
$17.55
$18.42
$18.45
$18.94
$18.32
$17.92
$17.88
$17.41
$16.53
$1.70
$ 1.70
$1.685
$1.625
$1.565
$1.51
$1.465
$1.41
$1.36 30,403,911 24,709,977 21,414,344 17,687,431 14.333,333 12,125,000 10,500,000 9,666,667 8,666,667
$1.06
$1,72
$1.09
$2.27
$2.52
$2.17
$2.04
$2.11
$2.00
$150,000
$151,500
$154,500
$130,500
$108,500
$80,000
$80,000
$40,000
$10,000
$13,830
$14,175
$13,657
$11,812
$9,818
$6,577
$5,247
$2,196
$976 9.1%
9.2%
9.2%.
9.3%
9.1% '
8.2%
8.2%
8.4%
9.8%
$754,441
$735,119
$656,724
$533,450
$444,991
$335.344
$326,403
$277,669
$261,529
$70,326
$58,206
$48,528
$40,711
$28,519
$20,734
$18.591
$15,132
$13,667 9.3%
934 8.3%
8.0%
8.1%
6.3%
6.2%
5.8%
5.6%
2,789 2.579 2,441 2,311 2,116 2,008 1,881 1,767 1,704
$37,105
$31,631
$27,808
$22,798
$18,498
$15,703
$13,982
$12,879
$12,151
)
i
$25,183
$21,293
$19,647
$18,564
$18,033
$14,493
$12,117
$10,039
$8,748
[
]
33
i Portland General ElMtric CompCny MARKET AND DIVIDEND INFORMATION
]
COMMON STOCK The Company's common stock is principally traded on the New York Stock Exchange.
The following table shows the high and low sales prices of the common stock on the composite tape (as reported by The WallStreet Journal) during the respective periods.
1981 1980 ouarter ist 2nd 3rd 4th 1st 2nd 3rd 4th High.
13 %
14 %
13%
13%
14 %
14%
14 %
14 %
Low.
11 %
12 %
11 11 %
10 %
11 %
12 %
11 %
Ouarterly cash dividends paid per sham were at the rate of 42%* iJanuary, April, July and October of 1981 and 1980).
NEW YORK STOCK The approximate number of stockholders as of December 31,1981 is 97,821.
EXCHANGE OR PACIFIC STOCK EXCHANGE I
PREFERRED STOCK nading symbol: PGN The 11.50% and $2.60 series of preferred stock are listed on the New York Stock Ex.
change. The following table shows the high and low sales prices of these two series l
on the composite tape (as reported by The WallStreet Journal) for the respective periods. The remaining five series are traded infrequently over the counter and dis-closure of quarterly price ranges is not meaningful.
1981 1980 ouarter ist 2nd 3rd 4th Ist 2nd 3rd 4th
$2.60 lligh.
10 %
19 17 %
18 %
21 %
22 21 19 %
Inw 16 %
16 16 %
16%
17 17 18 %
16%
l l.50% Ifigh 84 92 90 %
85 95 95%
97 91 %
Low 78 80 %
83 %
78 82 %
83 92 78 %
Ouarterly cash dividends wem paid on each class of the Company's preferred stock at its stated rate during 1981 and 1980.
Portland General Electric Company and Subsidiaries GUARTERLY COMPARISON FOR 1981 AND 1980 March 31 June 30 September 30 December 31 (Thousands of Dollars) 1981 Operating revenues..
$161,545
$129,981
$139,317
$163,946 Operating income..
$ 50,955
$ 33,458
$ 40,076
$ 59,990
$ 31,750
$ 17,494
$ 23,909
$ 39,188 Net income Income available for common stock.......
$ 28,383
$ 14,141
$ 20,580
$ 35,864 Common stock Average shares outstanding.
37,208,941 39,384,404 39,617,496 39,886,806
$.76
$.36
$.52
$.90 Earnings per share 1980 Operating revenues.
$131,349
$ 96,746
$120,044
$142,098
$ 38,009
$ 18,059
$ 30,951
$ 45,174 Operating income...
Net income......
$ 32,256
$ 10,764
$ 17,325
$ 25,855 Income available for common stock.
$ 28,838
$ 7,353
$ 13,914
$ 22,488 Common stock 35,551,321 35,705,398 35,859,528 36,038,237 Average shares outstanding Earnings per share
$.81 S.21
$.39
$.62 34
STOCKilOLDER INFORA4ATION Stock Investor Exchange Publications Listings Copies of PGE stockholder re-The common stock of the Com-ports and of the Company's Fact Book panyis listed on the New York and may be obtained by wntten mquest Pacific Stock Exchanges andis to the Investor Relations Department quoted in the daily stock tables car-at the home office.
ried by most newspapers under die notation PortGE.
The 11.504 and $2.60 Series Common Stock Cumulative Pmfermd Stockissues Investment are publicly traded and listed on Plan the New York Stock Exchange.
Those newspapers which list these PGE offers a Common StockIn-stocks use the notations PoG and vestment Plan for stockholders of PorG respectively.
mcord and our customers. Plan en-rollment and withdrawalinquiries Notice of should be dimcted to United Annual Dividend States NationalBank of Omgon, Meeting Payment 503-225-6474.
Dates The 1982 annual meeting of Portland General Electric The Company's Board of Di-Form 10-K Company stockholders rectors has traditionally declamd willbe held at 2:00 p.m. on quarterly common and prefermd PGE's annual mport(Form 10-K)
Wednesday, May 12,1982 stock dividends payable on the fif-to the Securities and Exchan e Com-at,the, Company's Western teenth of the mondis of JanuaIy, mission willbe available wi out Division ofhce,14655 S.W.
April, July and October.The record charge to stockholders upon written Old Scholls Ferry Road, dates for these dividends m 1982 mquest to CD Hobbs, Vice Pmsident Beaverton, Omgon. Stock-holders of mcord at the will be Mamh 25, June 25, Septem-and Controller,at our home office ber24 and December 28, address
- close of business on March respectively.
25,1982 willbe entitled to -
vote. All stockholders am Honm Oh N"
Investor Services Portland GeneralElectric Company 121 S.W. Salmon Stmet
. All dividend check, proxy mate ~
Portland, Omgon 97204 nal an,d transfer of stock rtificate 503-226-8333 mquines am processed by our transfer agent, United States Na-tional Bank of Oregon. You may Transfer Agent and Registrar l reach them at 503-225-6474.
Common and Preferred Stock i
United States NationalBankofOmgon l
Stock'IYansfer Department P O. Box 3850 Portland, Oregon 97208 503-225 6474 35
.y
~ J-
- 4, ' g.
- W.
..y,- :.. '..
1~
1
+
)
I M ANAGEMENT COMMrITEE
+
.y
-J 7 -
-,_ y,'
4,_.
4-(
g.
4,
- -.t y --
g
'g,
e t
- 7.,
o *.
r.
'y (N
s e.
e-8
,p O:
r
's:-
' y-
~
V--
3
. +.
ri.'_,;.
5 2
p y
vg
, t
..f. '
_.;. z.
v b
a e- -..
d: '. 's
- t..' -.,
" 7 -
. +
w.
p.
4 f
gi-
. l
.. n s
'[
N,
j
- 4.. - *.- '
p.
'* '..,/
e J
. s t.
' ~.
-'. g',, _
4
~,, * *,.NY T
3
'.at j
{-
+
S g
s? l~
~
'g
' ^
4 s-
~
L'
,...,. - t
.. 4.-;,
hl 4,*
4 e
. O 6*
3 W* -
h-
,,C' s
4 m
?
,e
.4 4e y
q
w r
~
v e
. & {& _
~
~;-
r.
Oa%W' ~
~ ~ ~ '
~ - J.
.- ~
a 1 ..
y,y
- ~
T
/**ma s-k
'_,,,, -.).
3:
. m.. w__ _
w,,. g 9,"
- w y..-
s g.
.4 s
[ panamY'cD h.j
~
l.
e, 4'-
t q
N
' 4Wf*
=3..
~
e t*
^.
4
- 1
- j..,
s.f
., y.
~
s.
, - * ),. *,
(
?
+'
.4 a
1
}
SENIOR OFFICERS BOARD OF DIRECTORS
-,.r...
! RobertII.Short Warren W. Braley 1957 j Chairman t,f the Board and Partner. Brsley & Graham Co.. Portland - Buick acd Isuzu automobile dealer i Chief Faer uuva off ker Gwyneth E. Gamble
- 1981 i
l WilliamJ.Lindblad Co anchor, producer, reporter-KoAP; producer, on air host-EPW i "'" *"'
William J. Lindblad 1980 l Jose h L Williams President. Portland General Electnc Company-electric utilaty
- '""*"*'""d William E. Love 1977 James W Durham Ch'ir"*" and Chief Executive tric er. Equitable Savmgs & Loan Association. Portland and its subsidianes. NuPacific and Sherwood & Roberts.
Senior Wre President, j
G'""' ' C""""' * " d S" " 'Y Ernest II. Miller 1963 President. Mortgage Bancorporation. Salem - real estate loans and investments
, Ken L IIarrison throughout oregon l
l 5enior Vic e President - Finance Wade Newbegin" 1948 j and Chief Finan< tai orricer Charles L liem.rlCh President and Chairman of the Board. R M. Wade & Co., Portland-manufacturer and di,tndutor or pumping. farm and irngation equipment.
Senior Wt e President - Regu,stion i
and Administrauon Robert W. Roth 1972 President and Chief Executive officer. Jantzen. Inc.. Portland, a wholly owned subt,idiary of Glen E. Bredemeter Blue Bell. inc - manuracturer of sportswear and swimwear Wre President - Power operations i
John L Schwabe 1977 Charles Goodwin, Jr.
Partner. Schwabe, Williamson. Wyatt. Moore and Roberts - Portland atterneys i Yke Prestdent-Thermal operations i
Robert H. Short 1971 i W. E. Gordont Chairman of the Board and Chief Executive officer. Portland General Elecide Company, f
%< e President - Admannstrative Services Portland-electric uulity Douglas E. liefder Eberl{ Thompsem" 1960
%re President - Public Aff airs Portlan personalinvestments W. T. 'niplett, Jr.
1969 CD llobbsi formerly Pa esident and Chief Executive officer. Daza'r. Inc., Portland Mre Preudent and Controller l
i L E Ilodel James J. Walton" 1948 C n= una cw engmm mund. Salem l vue Preudent --Engineenng, j Constacuo" Earl Wantland 1973 President and Chief Executive officer. Tektronix. Inc.. Beaverton - manufacturer of Wayne A. liuddleston i i
eiectronic equipmeni
. Wre tresident - Administrative Services Frank M. Warren 1949
- William June P. tired Chairman of the Board and Chief Executive officer. Portland General Electric Company.
l Vice President -Corporate Planmng Portland-electric utihty l Ilillman Lueddemann,Jr.
William W. Wessin r 1968
' Vire President and Assistant to the Chairman of the Board,B t Weinhard Company. Portland-a wholly owned subsidiary of
) Chairman of the Board Pabst Brewing Co.
l Don R. Miller Robert J. Wilhelm 1973 l Vice President -Operating Services President. Rudie Wilhelm Warehouse Co.. dba Wilhelm '1 Tucking Co.. Portland -trucking and warehousing l h,fp7,ihPP Joseph L Williams 1980 n o m,n,,,oo,,,,
l Vice Chairman of the Board. Portland General Electric Company-electric utility E D. Wieden Ralph E. Williams 1963 Mce President - Public Relations President. Willia ms Investment Co.. Portland - person al investments E. E Wildfon Mce President - avisior, operation,
- Elected May 20.1981 j
" Advisory Bart D. Withers l' wre Piesident--- Nuclear James N. Woodcock
%ce President and 'IYeasurer James L Staines*
l Controller I
i ' Retired March 1.1982 l 4 ffective Sept 1,19R1 k.)
i
'E tteruve March 1.1982 6
i
- Retired oct.1.1981 4
%e -
l V __?
,.,h NEW DIRECTOR elected in 1981, J
fg Gwyneth E. Ga mble. is an active j
1
(
well as a television producer-community and civic leader as l
I host.
m J
=
==
- se Portland General Electric Company 121 S.W. Salmon Street Portland, Oregon 97201 L
- -