-- PGE partners with Manulife Investment Management for acquisition of 
      PacifiCorp's Washington utility operations for $1.9 billion 
 
   -- Reached agreements to construct two solar and battery hybrid projects for 
      a total of 615 MW, with 425 MW Company-owned 
 
   -- Initiating 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted 
      share and reaffirming 5% to 7% long-term earnings per share growth 
 
   -- Full-year 2025 GAAP financial results of $2.77 per diluted share; 
      full-year 2025 non-GAAP adjusted financial results of $3.05 per diluted 
      share, reflecting 14% year-over-year industrial demand growth, offset by 
      historic fourth quarter weather that reduced earnings by 17 cents 
 
   -- PGE to host a conference call and webcast today, February 17, at 8:00am 
      Eastern Time 

PORTLAND, Ore., Feb. 17, 2026 /PRNewswire/ -- Portland General Electric Company $(POR)$ today announced an agreement to acquire select Washington state generation, transmission and electric utility operations from PacifiCorp for $1.9 billion, representing a purchase price multiple of 1.4x estimated 2026 rate base. The acquisition will enable PGE to extend its long-standing commitments to reliability, affordability, economic development and a customer centric approach to approximately 140,000 Washington customers. PGE expects accretion in the first full year upon closing and overall enhancement of PGE's long-term EPS and dividend growth from the transaction.

"We are excited for the opportunity to continue to grow, expanding into Washington and building upon PGE's foundation of operational excellence and customer service," said Maria Pope, president and CEO. "We look forward to our partnership with Manulife Investment Management, who brings a track record of investment success across the utility sector and Pacific Northwest agriculture and timberland industries."

Under the agreement, PGE will acquire three generation facilities: the Chehalis natural-gas plant (477 MW), the Goodnoe Hills wind facility (94 MW), and the Marengo I and II wind facilities (234 MW). The acquisition also includes 4,500 miles of transmission and distribution lines, and local utility operations across 2,700 square miles.

Central to this acquisition is PGE's partnership with Manulife Infrastructure Fund III, L.P. and its affiliates including John Hancock Life Insurance Company $(USA)$, which will collectively be a minority owner of the Washington utility business. Manulife Investment Management is an experienced, long-term investor in infrastructure, agriculture, and timberland with roots in the region - having managed farms and forests in the Pacific Northwest for more than two decades.

PGE will manage the Washington operations as a separate company through a newly formed subsidiary regulated by the Washington Utilities and Transportation Commission. PGE expects the state and federal regulatory reviews of the acquisition to close 12 months after submission of regulatory filings.

Lazard served as lead financial advisor and provided a fairness opinion to Portland General Electric. Barclays, J.P. Morgan and Citi also served as financial advisors to Portland General Electric. Latham & Watkins served as legal advisor to Portland General Electric. Goldman Sachs & Co. LLC served as financial advisor to Manulife Investment Management. Simpson Thacher & Bartlett LLP served as legal advisor to Manulife Investment Management.

Find more information on Manulife Investment Management, visit https://www.manulifeim.com/institutional/us/en

2025 Financial Results

Today, PGE also reported net income based on generally accepted accounting principles (GAAP) of $306 million, or $2.77 per diluted share, for the year ended December 31, 2025. After adjusting for the impact of business transformation and optimization expenses, 2025 non-GAAP net income was $336 million, or $3.05 per diluted share.

This compares with GAAP net income of $313 million, or $3.01 per diluted share, for the year ended December 31, 2024. After adjusting for the impact of the January 2024 winter storms, 2024 non-GAAP net income was $327 million, or $3.14 per diluted share.

GAAP net income was $41 million, or $0.36 per diluted share, for the fourth quarter of 2025. After adjusting for the impact of business transformation and optimization expenses, fourth quarter 2025 non-GAAP net income was $53 million, or $0.47 per diluted share. This compares with GAAP net income of $39 million, or $0.36 per diluted share, for the fourth quarter of 2024.

2025 Earnings Compared to 2024 Earnings

On a GAAP basis, total revenues increased, driven by continued demand growth from data center and high-tech customers and improved cost recovery. Purchased power and fuel expense declined slightly, reflecting stable market conditions and lower commodity prices. Operating and maintenance expenses remained largely flat. Depreciation and amortization expense and interest expense increased due to ongoing capital investment. Income tax expense increased primarily due to lower production tax credit benefits.

Additional Company Updates

High-tech and Data Center Growth

In 2025 and the first part of 2026, PGE executed five contracts with data center customers for 430 MW. The contracts build on PGE's track record of strong industrial demand, which has grown at a 10% compounded annual growth rate from 2020 to 2025, and forecast to continue at this rate through 2030.

Resource Procurement

2023 Request for Proposals (RFP) - After a robust and competitive bidding and negotiating process as part of the 2023 RFP, PGE has entered into agreements to construct two solar and battery hybrid projects for a total of 615 MWs. Agreements for the PGE-owned resources include:

   -- Biglow Optimization - 125 MW solar facility and 125 MW BESS located in 
      Sherman County, Oregon, with an investment of approximately $540 million, 
      excluding AFUDC. The project has an estimated commercial operation date 
      at the end of 2027. 
 
   -- Wheatridge Expansion - 240 MW solar facility and 125 MW BESS located in 
      Morrow County, Oregon. PGE will own 110 MW of solar and 65 MW of BESS 
      production capacity with an investment of approximately $490 million, 
      excluding AFUDC. NextEra Energy, Inc. will operate the facility, own the 
      remaining 130 MW of solar and 60 MW of BESS production capacity and sell 
      their portion of the output to PGE under a 30-year PPA. The project has 
      an estimated commercial operation date at the end of 2027. 

Additional Procurement Activities - PGE has also entered into the following agreements:

   -- Meadowlark BESS - a 20-year storage capacity agreement for a 200 MW BESS 
      located in Washington County, Oregon. This project will be owned by 
      Copenhagen Infrastructure Partners, LLC and has an estimated commercial 
      operation date at the end of 2027. 
 
   -- Nottingham BESS - a 20-year storage capacity agreement for a 200 MW BESS 
      located in Washington County, Oregon. This project has an estimated 
      commercial operation date in 2028. 

2025 Request for Proposals - PGE plans to file a request for acknowledgement of the final shortlist of bidders for the 2025 All-source RFP to the Public Utility Commission of Oregon (OPUC) on February 17, 2026. The final shortlist, which totals approximately 5,000 MW, is made up of both renewables and non-emitting capacity projects.

PGE is proceeding to commercial negotiations with projects on the final shortlist, prioritizing those that include renewable generation, have a viable pathway to achieve commercial operations earlier in the 2028 - 2030 eligibility period and to maximize tax credits to reduce project costs. The ultimate outcome of the RFP process may involve the selection of multiple projects for both renewable and non-emitting dispatchable capacity resources, which PGE expects will be approximately 2,500 MW in total.

Quarterly Dividend

As previously announced, on February 13, 2026, the board of directors of Portland General Electric Company approved a quarterly common stock dividend of $0.525 per share. The quarterly dividend is payable on or before April 15, 2026 to shareholders of record at the close of business on March 23, 2026.

2026 Earnings Guidance

PGE is reaffirming 5% to 7% long-term earnings per share growth using a base of $3.08 per diluted share, the mid-point of original 2024 adjusted earnings guidance.

PGE is also initiating full-year 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share based on the following assumptions:

   -- An increase in energy deliveries between 2.5% and 3.5%, weather adjusted; 
 
   -- Execution of power cost and financing plans; 
 
   -- Execution of operating cost controls; 
 
   -- Normal temperatures in its utility service area; 
 
   -- Hydro conditions for the year that reflect current estimates; 
 
   -- Wind generation based on five years of historical levels or forecast 
      studies when historical data is not available; 
 
   -- Normal thermal plant operations; 
 
   -- Operating and maintenance expense between $820 million and $840 million 
      which includes approximately $155 million of wildfire, vegetation 
      management, deferral amortization and other expenses that are offset in 
      other income statement lines and $15 million of business transformation 
      and optimization expenses; 
 
   -- Depreciation and amortization expense between $560 million and $580 
      million; 
 
   -- Effective tax rate of 15% to 20%; 
 
   -- Cash from operations of $1,000 to $1,200 million; 
 
   -- Capital expenditures of $1,655 million; and 
 
   -- Average construction work in progress balance of $850 million. 

Business Update, Fourth Quarter and Full-Year 2025 Earnings Call and Webcast -- Feb. 17, 2026

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February 17, 2026 05:00 ET (10:00 GMT)