For the second quarter of 2012, actual net variable power costs (“NVPC”) were approximately $5 million below baseline NVPC. NVPC for the year ending December 31, 2012 is currently estimated to be slightly below the lower deadband of the PCAM. As the Company’s 2012 earnings are not expected to exceed the regulated earnings test, no estimated refund to customers was recorded as of June 30, 2012. For the second quarter of 2011, actual NVPC was approximately $9 million below baseline NVPC. For the second quarter of 2011, PGE recorded an estimated refund to customers of $8 million for a total refund of $12 million as of June 30, 2011, as a $4 million refund was recorded in the first quarter of 2011.2012 Earnings Guidance PGE’s 2012 earnings are expected to be within the guidance range of $1.85 to $2.00 per diluted share. Guidance is based on the following assumptions:
- Retail energy deliveries approximately 1% higher than weather adjusted 2011 levels, excluding certain paper customers that do not significantly impact the Company’s gross margin;
- Improved hydro generation and power supply operations;
- Wind estimates based on wind studies completed in connection with the permitting of the Biglow Canyon wind farm;
- Operating and maintenance costs in line with budget and estimated from $105 million to $110 million per quarter; and
- Capital deferrals of $17 million for the current year, with $8 million reported in the first half of 2012.