Portland General Electric Company
) has come up with an approximately $1 billion investment plan in
a new gas-fired power plant in Central Oregon and a new wind farm
in Southeastern Washington.
The utility plans to construct a natural gas-fired power plant
near Boardman, which would cost around $440 million to $455
million. The plant will use a Mitsubishi turbine that is capable
of generating 440 megawatts (MW), enough power to serve about
300,000 residential customers. Portland General will own and
operate this new facility, which is scheduled to be online in
2016. It is expected to create around 500 jobs during the
The utility also agreed to spend as much as $535 million for
development rights to Phase Two of the Lower Snake River wind
farm near Dayton, WA, north of Walla Walla. It is currently under
development by Puget Sound Energy. The project comprises 116 wind
turbines manufactured by Siemens Energy Inc. Each wind turbine
will have a capacity to generate 2.3 MW bringing the total
capacity to 267 MW.
This new wind farm project will be built by RES Americas
Construction Inc., a renewable power developer, and would
generate up to 300 jobs during construction and about 18
full-time operating positions upon completion. The transaction is
expected to close in August this year and will facilitate the
utility to comply with state renewable energy mandates. State
standards entail the company to generate 15% of their energy from
renewable resources beginning 2015.
Portland General has also clinched a non-binding agreement with
the Bonneville Power Administration (BPA) to buy 1,500 MW of
transmission capacity. The company has thus decided to suspend
the proposed Cascade Crossing transmission project.
Upon accomplishment of the final deal with BPA, the utility
says that this option will be more cost effective as well as
environmentally friendly than its original proposal. Portland
General will record an after tax loss of $31 million for the
second quarter 2013 for costs related to its project.
ALLETE INC (ALE): Free Stock Analysis Report
CPFL ENERGI-ADR (CPL): Get Free Report
COPEL-ADR PR B (ELP): Free Stock Analysis
PORTLAND GEN EL (POR): Free Stock Analysis
To read this article on Zacks.com click here.
Meanwhile, the company has lowered its previously disclosed
full-year 2013 earnings guidance of $1.85 to $2.00 per diluted
share to $1.35 to $1.50 per diluted share as a result of these
Based in Portland, OR, Portland General Electric is a fully
integrated electric utility electricity company that caters to
nearly 830,000 residential, commercial and industrial customers
in the state.
Portland General Electric has progressed on its strategic
initiatives, including starting construction on Port Westward 2.
These initiatives will help the company to enhance its production
capabilities and remain competitive. In addition, the projected
capital expenditure of $505 million to $525 million for the year
will help in continuing development activities.
Portland General Electric Company currently retains a Zacks Rank
#2 (Buy). Companies like Zacks Ranked #1 (Strong Buy)
Companhia Paranaense de Energia
CPFL Energia S.A.
), along with a Zacks Ranked #2 (Buy)
) also remain well positioned.