Portland General Electric reported higher third-quarter earnings than a year earlier, but unusually mild weather weighed on electricity demand and prompted the utility to lower its 2026 adjusted earnings outlook. The company also highlighted growth in industrial demand, new solar-and-storage investments, a proposed rate increase and progress toward a holding-company restructuring.
Earnings and outlook
- Third-quarter net income was $119 million, or $1.00 per diluted share, compared with $103 million, or $0.94 per share, a year earlier. Adjusted net income, excluding business transformation, optimization and acquisition expenses, was $125 million, or $1.06 per share, up from $110 million, or $1.00 per share.
- Mild weather reduced residential and small-business demand. PGE estimated the weather impact at $0.15 per share compared with the year-earlier quarter and $0.20 per share year to date relative to normal weather.
- Industrial customer demand grew 9% year over year on a weather-adjusted basis, with continued growth from high-tech and data-center customers.
- PGE lowered its 2026 adjusted earnings guidance to $3.18–$3.28 per diluted share, citing the unusually mild third quarter. The outlook assumes normal temperatures in November and December, among other operating and market assumptions. The company said its long-term guidance remains unchanged.
Rates, power costs and customer commitments
- PGE began participating in the Extended Day-Ahead Market on October 1. The company expects the market to help lower power costs and manage energy-market volatility, estimating about $14 million in customer savings in 2027.
- The utility filed a proposed 2027 general rate case with Oregon regulators in August. The request would raise prices by about 4.8% overall, including an approximately 3.9% increase for residential customers. If approved, the rates would take effect July 1, 2027. PGE said lower net variable power costs, handled separately through an annual tariff update, are expected to partly offset the increase.
- After a September 25 state commission order on its proposed holding-company structure, PGE requested clarification and changes to two conditions. The company says the structure is intended to improve financial flexibility while preserving customer protections and the utility’s financial strength. It also said its growth strategy, capital investment plan and earnings outlook do not depend on implementing the structure.
- PGE cited $78 million in customer rate credits and $5 million in other community commitments in connection with the proposal.
Clean-energy plans and projects
- PGE submitted a 2026 Clean Energy Plan and Integrated Resource Plan to state regulators, laying out two possible pathways to meet expected resource needs while maintaining reliability and supporting Oregon’s decarbonization goals.
- The company signed build-transfer agreements for two solar and battery-storage projects:
- Biglow: 200 megawatts of solar and 250 megawatts of battery storage, with an estimated investment of about $900 million, excluding financing costs during construction. The project was selected from the final group in PGE’s 2025 solicitation.
- Salmonfly: 199 megawatts each of solar and battery storage, with an estimated investment of about $853 million, excluding financing costs during construction. It is being developed with the Confederated Tribes of Warm Springs. The project was pursued outside the 2025 solicitation and remains subject to regulatory review, including a request to waive competitive-bidding rules.
Dividend
- PGE’s board declared a quarterly dividend of 55.125 cents per share, payable on or before January 15, 2027, to shareholders of record on December 22, 2026.