Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 31, 2026 · Beat 4 of last 7 quarters
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POR's strong industrial load growth and contracted data center pipeline underscore the accelerating electricity demand from AI infrastructure. The new large load tariff aligns infrastructure costs with data center customers, supporting continued investment in grid capacity and clean energy resources needed for the AI buildout.
Q2 non-GAAP EPS was $0.64, in line with guidance, with GAAP EPS of $0.59. Industrial load grew 11.2% YoY, and total retail deliveries rose 3.9% (2.7% weather-adjusted). The OPUC approved the New Large Load Tariff, raising data center prices ~30% while lowering rates for other customers. The OPUC acknowledged the short list for the renewable RFP, and the company reaffirmed its 2026 load growth guidance of 1.5% to 2.5%.
Management reaffirmed full-year 2026 EPS guidance of $3.33 to $3.53 and long-term earnings and dividend growth of 5% to 7%. They expect improved power costs in H2, no recurrence of the Q4 2025 weather detriment in the second half of 2026, margin benefit from the New Large Load Tariff, and continued regulatory recovery. The 2027 general rate case will be filed next week, seeking a 4.8% overall increase (3.9% residential) with a 9.75% ROE. The holding company final order is expected by end of August, and the Washington acquisition remains on track for mid-2027 close. Industrial load growth of approximately 10% CAGR through 2030 is supported by contracted customers already energized or under construction.
“The tariff also creates greater certainty for large load customers by providing a clear pricing framework, which supports investment decisions and continued economic development across our region.”
on New Large Load Tariff
“These are contracted customers. These are customers who are already either have constructed facilities or facilities that are under construction currently. So this ramp is really about this contracted and constructed assets here for us, which I feel makes it a little different is we don't have -- there is not a speculative queue here.”
on Data center demand visibility
“We have a strong case, good benefits for customers and the discussions are ongoing.”
on Holding company settlement
What investment would be needed to support the 1.7 GW data center pipeline? Is it generation and part of the '25 RFP?
The 1.7 GW is mostly in permitting with land ownership; it will be under UM 2377. Additional generation is not included in the forecast; some transmission investments are included but some are beyond 2030.
Does the Salem data center pullback change how you think about the 1.6 GW large load queue?
The 1.7 GW is upside not in guidance. The state land issue is only a portion; most investment is on non-state land. Most upside customers are already in permitting and grandfathered.
What are the prospects for continuing the reliability contingency structure and the O&M reduction plan?
The RCE expired after its 2-year term; staff viewed it as an experiment and prefer broader power cost reform. The O&M program has yielded $25M in benefits and will continue for another couple of years.