John Mould

John Mould asked about Emera's involvement and perspective on the 'Wind West' initiative, particularly regarding transmission opportunities and the broader potential for projects of national importance. He also questioned how federal tax credits and policy uncertainty influenced the timing of generation spend in Florida's capital plan and the potential for further customer-saving investments.

Answer

President and CEO Scott Balfour stated that Emera is interested in supporting the Wind West initiative, specifically in subsea connections and transmission builds, but not offshore wind development. He noted it's early days and Emera will look for clarity from the Budget Implementation Act. Peter Gregg, President and CEO of Nova Scotia Power, added that east-west transmission has real potential for Atlantic Canada. CFO Greg Blunden explained that some planned solar investments in Florida were accelerated to realize earlier customer savings and get ahead of potential policy uncertainty, though it hasn't changed overall plans.

John Mould inquired about Emera's involvement in the Wind West initiative, particularly on the transmission side, and the potential scale and timing of such projects. He also asked about the broader opportunity for Emera from projects of national importance and how federal tax credits and policy uncertainty might affect the timing of generation spend in Florida, especially regarding customer-saving solar investments.

Answer

Scott Balfour, Emera's President and Chief Executive Officer, and Peter Gregg, President and CEO of Nova Scotia Power, stated that it's still very early days for national interest projects like Wind West. Emera is interested in supporting subsea connections and transmission builds to bring energy to broader markets. They are awaiting clarity from the Budget Implementation Act and are pleased with the focus on national infrastructure. Greg Blunden, Emera's Chief Financial Officer, added that the fuel savings from solar are economic for customers, partly due to tax credits. Emera has accelerated some planned solar investments into 2025 to realize earlier customer savings and get ahead of potential policy uncertainty.

Asked if the company would reconsider selling a minority stake in its Florida utility following a similar recent transaction, and inquired about the transmission infrastructure needs for the newly designated offshore wind areas in Nova Scotia.

Answer

The company has no plans to sell a stake in its core Florida utilities, viewing them as essential to its strategy. The potential offshore wind development in Nova Scotia is so large that it would likely require significant transmission upgrades for both local use and export.

John Mould of TD Cowen asked if Emera's stance on selling a minority stake in its Florida utility has changed, given recent industry transactions. He also inquired about the transmission infrastructure needs for the newly designated offshore wind areas in Nova Scotia.

Answer

CEO Scott Balfour confirmed that their thinking has not changed and the Florida utilities remain core assets, though he acknowledged a recent peer transaction as a useful valuation marker. Peter Gregg, President & CEO of Nova Scotia Power, stated that due to the large scale of the potential offshore wind resource, upgrades to the transmission network would likely be necessary for both in-province delivery and potential export.

John Mould sought more detail on the pacing of ITC's connection requests for large loads, particularly the 3 GW growth since last quarter, and when customers are seeking connection. He also asked about the timing required for definitive large load plans in Arizona to be reflected in the broader Integrated Resource Plans (IRPs) and to demonstrate potential rate benefits.

Answer

David Hutchens, President and CEO, deferred to Linda (from ITC) for ITC specifics. Linda explained that while customers want immediate connection, practical realities like facility location, necessary infrastructure, and MISO approval processes mean most requests are looking at the latter part of the existing five-year plan (2028-2030 timeframe), with varying ramp perspectives. Mr. Hutchens clarified that Arizona's IRPs, targeting filing in August 2026, will include different load growth scenarios. He noted that additional data center investments could be treated as mini-IRPs with their own revenue requirements met by those customers, allowing for adjustments outside the main IRP filing.

John Mould asked for more details on the pacing of connection requests for ITC's large load growth, particularly the 3 gigawatts seen since last quarter, and when customers are seeking to get connected. He also inquired about the timing for definitive large load plans to be reflected in Arizona's new IRPs, expected to be filed in 2026, to demonstrate potential rate benefits.

Answer

Linda H. Apsey, President and CEO of ITC, generalized that while customers desire quick connections, practical realities mean most requests are targeting the latter part of the existing five-year plan (2028-2030). David Hutchens, President and CEO of Fortis Inc., explained that the IRP will include various load growth scenarios, but additional data center investments could be managed as 'mini IRPs' with their own revenue requirements, allowing for flexibility beyond the main IRP filing.

John Mould from TD Cowen asked about the potential capacity factors of older coal-to-gas units in a tighter market, the capital needed for them, the expected timing for Phase 2 of the data center strategy, and the role of carbon credits in negotiations.

Answer

President and CEO John Kousinioris responded that a significant load increase would require their fleet to run at high capacity factors, needing only modest sustaining capital. He noted that while Phase 2 discussions are early, they are advocating for clarity by year-end. He described the carbon credit portfolio as a key strategic advantage for ensuring fleet competitiveness and meeting customer needs.

John Mould asked about TransAlta's expectations for the ISO's methodology on allocating data center capacity in Alberta, whether the Western U.S. is the primary focus for growth capital, and for more detail on the gas cost hedging strategy for 2026.

Answer

CEO John Kousinioris stated he expects the ISO to prioritize commercially advanced data center projects and highlighted TransAlta's unique behind-the-meter proposal. He confirmed the Western U.S. is the main focus for growth capital due to market dynamics and operational synergies. He and EVP Blain van Melle also noted that the company actively manages its gas cost exposure in conjunction with its power hedges to lock in favorable margins.

John Mould asked about TransAlta's view on surplus capacity in Alberta, how data center growth could impact the Sundance site's redevelopment, and whether the Restructured Energy Market (REM) progress poses a barrier to finalizing deals. He also inquired about the allocation of business development resources.

Answer

President and CEO John Kousinioris acknowledged the Alberta market is oversupplied but stated it could absorb 1-2 GW of data center load, which would help rebalance supply and demand. He and EVP Blain Van Melle clarified that the REM's progress is not a barrier to signing contracts, as their strategy is to insulate assets through direct contracting. John Kousinioris also noted that the majority of the development team's time is currently focused on legacy thermal site optimization over new renewables to capture the best immediate returns.

John Mould questioned the redevelopment of the Alberta fleet, focusing on how the age and emissions of subcritical coal-to-gas units affect discussions and their potential capacity factor. He also asked about the technology focus for redevelopment (gas vs. renewables) and the impact of Canada's Clean Electricity Regulations (CER).

Answer

CEO John Kousinioris stated that the converted gas units can run reliably with availability in the high 80s to low 90s and are cost-effective. He noted that redevelopment discussions vary by jurisdiction: U.S. opportunities involve a mix of gas, solar, and storage, while Alberta discussions are currently more gas-focused to ensure reliability. Kousinioris believes the company has a mix of levers, including its hydro and wind assets, to create attractive, lower-carbon offerings for customers. He expressed confidence that they can deliver interesting projects at these sites within the next year.