Portland General Electric Company (NYSE: POR) today reported net income of $147 million, or $1.95 per diluted share, for the year ended December 31, 2011, compared to $125 million, or $1.66 per diluted share, for 2010. Net income was $29 million, or $0.38 per diluted share, for the fourth quarter of 2011 compared to $25 million, or $0.34 per diluted share, for the comparable period of 2010.
“I’m very proud of PGE’s accomplishments in 2011. We effectively managed our power supply operations, taking advantage of favorable regional hydro conditions, and successfully upgraded our Boardman and Coyote Springs thermal plants,” said Jim Piro, President and Chief Executive Officer. “Our 2011 performance reflects our continued focus on operational excellence, high customer satisfaction and delivering a competitive return for shareholders.”
Total retail revenues increased by $58 million for 2011 compared with 2010 reflecting a 4% increase in average retail prices and a 3% increase in total retail energy deliveries. Residential energy deliveries increased 4%, primarily due to cooler weather during the heating season. Commercial and industrial energy deliveries increased 3%, primarily due to increases in load from paper manufacturing. Excluding paper manufacturers and adjusting for weather, retail loads for 2011 were up approximately 0.5% from 2010.
Purchased power and fuel expense decreased by $69 million for 2011 compared with 2010 driven by favorable hydro conditions which resulted in an abundant supply of power from hydroelectric projects and lower wholesale power and natural gas prices, with increased energy from wind generation resources also contributing to the decrease. Average net variable power costs (NVPC) decreased by approximately 9% for 2011 compared to 2010. As a result of decreased NVPC, PGE recorded an estimated refund to customers of $10 million pursuant to the power cost adjustment mechanism (PCAM). Additionally, this reflects a 14% increase in energy received from hydroelectric resources and PGE’s economic decision to buy low cost wholesale power instead of generating power with its thermal plants. As a result, thermal generation represented 29% of the Company’s total system load in 2011, compared to 44% in 2010.