Chariza

Chariza asked if the $25 billion+ upside capital opportunities would overlap with the 2029 timeframe and what offsetting factors prevent this increased CapEx from leading to a higher earnings growth trajectory.

Answer

Garrick Rochow, President and CEO, confirmed that some of the $25 billion+ would indeed move into the next five-year plan. Rejji Hayes, Executive Vice President and CFO, elaborated that all three components (electric distribution, renewables, IRP) would see investments. He explained that the company manages growth within affordability targets (CE way, cost reductions, economic development) and balance sheet efficiency. Offsetting factors include compounding off actuals (targeting 7-8% growth), inherent conservatism, the non-decoupled rate construct, and weather uncertainty, which collectively influence the sustainable growth rate.

Chariza of Wells Fargo & Company questioned whether any of the $25+ billion in additional capital upside would be incorporated into the plan before 2029, and asked for clarification on the offsetting factors that prevent this increased CapEx from immediately accelerating the company's 6-8% earnings growth CAGR.

Answer

President and CEO Garrick Rochow confirmed that some of the $25+ billion would indeed move into the next five-year plan. Executive Vice President and CFO Rejji Hayes elaborated on the "governors" of the plan, including affordability (managed through CE way, cost reductions, economic development), efficient balance sheet funding (minimizing equity needs), and workforce planning. He also cited conservatism, the non-decoupled rate construct, and weather uncertainty as factors influencing the sustainable growth rate.