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    Michael Lonegan • Evercore ISI

    Michael Lonegan's questions to Hawaiian Electric Industries Inc (HE) leadership

    Michael Lonegan's questions to Hawaiian Electric Industries Inc (HE) leadership • Q1 2025

    Question

    Michael Lonegan of Evercore asked if the authorized securitization would be for earnings-generating investments, about the potential for opportunistic equity financing, and for details on the upcoming rate case filing.

    Answer

    Executive Vice President and CFO Scott DeGhetto clarified that SB 897 directs the first $500 million of utility CapEx for wildfire mitigation to use securitization. President and CEO Scott W. Seu noted that while they would consider opportunistic pre-funding, there are no near-term plans to finance future settlement payments. Scott DeGhetto and Hawaiian Electric President and CEO Shelee Kimura explained the upcoming filing will rebase target revenues for the PBR framework using a 2026 test year in a "rate case-like" proceeding.

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    Michael Lonegan's questions to Hawaiian Electric Industries Inc (HE) leadership • Q4 2024

    Question

    Michael Lonegan inquired about the confidence in the Maui wildfire settlement proceeding without insurer interference, future capital expenditure levels and FFO to debt targets, and potential financing strategies for a proposed shareholder contribution to a state wildfire fund.

    Answer

    President and CEO Scott W. Seu expressed high confidence in the settlement's finalization following a favorable Hawaii Supreme Court ruling, outlining the next procedural steps. Hawaiian Electric CFO Paul Ito detailed a multi-year CapEx forecast, projecting spending to rise from a $350-$375 million range in 2025, driven by baseline needs, wildfire safety, and other projects. HEI CFO Scott DeGhetto stated the company will target investment-grade credit ratings rather than a specific FFO to debt metric. Regarding legislation, Scott Seu noted it is very early in the process and that the shareholder contribution amount in the proposed bill was currently blank, indicating ongoing debate.

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    Michael Lonegan's questions to Hawaiian Electric Industries Inc (HE) leadership • Q3 2024

    Question

    Michael Lonegan of Evercore ISI inquired about the ongoing strategic reviews for Pacific Current and the bank, the potential for a negotiated settlement with insurers, the option to accelerate wildfire settlement payments, and the company's outlook on the 2025 review of the Performance-Based Regulation (PBR) framework.

    Answer

    President and CEO Scott W. Seu confirmed strategic reviews for both the bank and Pacific Current are ongoing. CFO Scott DeGhetto stated the current plan is to pay the settlement in four installments but noted an option to prepay exists. Regarding the PBR framework, SVP of Regulatory Affairs Joe Viola explained that the comprehensive review is already in progress and will consider the Maui wildfires in designing the next multiyear rate plan, which is scheduled to begin January 1, 2027.

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    Michael Lonegan's questions to Pinnacle West Capital Corp (PNW) leadership

    Michael Lonegan's questions to Pinnacle West Capital Corp (PNW) leadership • Q1 2025

    Question

    Michael Lonegan of Evercore ISI asked about the expected level of regulatory lag in 2026 while the next rate case is pending and requested an update on the pipeline for high load factor customers.

    Answer

    CEO Ted Geisler stated that a key goal of the upcoming rate case and the proposed formula rate plan is to minimize regulatory lag. He confirmed the committed high load factor customer pipeline remains at 4 gigawatts, with an additional queue of at least 10 gigawatts being actively assessed for timing and capacity needs.

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    Michael Lonegan's questions to Pinnacle West Capital Corp (PNW) leadership • Q4 2024

    Question

    Michael Lonegan from Evercore questioned if Pinnacle West might raise its 5-7% EPS growth target and asked for an update on legislative support for a proposed wildfire mitigation bill in Arizona.

    Answer

    CFO Andrew Cooper stated the immediate focus is on achieving a smoother earnings profile within the existing 5-7% EPS growth range by implementing formula rates. President Ted Geisler commented on the wildfire bill, noting the company's support but emphasizing it is too early in the legislative process to predict an outcome.

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    Michael Lonegan's questions to Edison International (EIX) leadership

    Michael Lonegan's questions to Edison International (EIX) leadership • Q1 2025

    Question

    Michael Lonegan from Evercore ISI inquired about the prospects for new wildfire legislation in California and whether the company's previously stated 88% wildfire risk reduction figure has been re-evaluated with Moody's following the Eaton fire.

    Answer

    President and CEO Pedro Pizarro expressed confidence that state leaders understand the need to enhance the AB 1054 framework but noted it's too early to guarantee legislative action this session. Executive Steven Powell clarified that the risk reduction model is comprehensive, covering both distribution and transmission systems, and the extensive grid hardening work already completed remains the primary driver of that risk reduction.

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    Michael Lonegan's questions to Edison International (EIX) leadership • Q4 2024

    Question

    Michael Lonegan asked about the specific operational steps being taken to strengthen equipment bonding processes and the basis for the company's confidence in sustaining the presumption of prudency for the Eaton fire. He also questioned if the fire could negatively impact the GRC outcome.

    Answer

    CEO Pedro Pizarro reiterated confidence that SCE can demonstrate it acted as a reasonable operator, which is the standard for prudency. He and executive Steven Powell explained that the company continuously learns and improves, citing a risk-prioritized approach to hardening the grid and enhancing inspection and vegetation management practices. CFO Maria Rigatti added that the GRC and Woolsey cost recovery proceedings are very far along and are expected to continue on their established paths without being impacted.

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    Michael Lonegan's questions to Edison International (EIX) leadership • Q3 2024

    Question

    Michael Lonegan inquired about the General Rate Case (GRC) in the context of affordability concerns in California and also asked about the company's strategy for managing accelerated load growth through CapEx prioritization or alternative funding.

    Answer

    President and CEO Pedro Pizarro addressed affordability, noting the rate trajectory is expected to be at or below local inflation through 2028 and that total customer energy bills are projected to decrease long-term. He also stated the company is focused on the GRC outcome before considering other capital avenues. EVP and CFO Maria Rigatti added that even intervenor positions support a 6% rate base growth, reflecting the company's focus on affordability in its filing.

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    Michael Lonegan's questions to Portland General Electric Co (POR) leadership

    Michael Lonegan's questions to Portland General Electric Co (POR) leadership • Q1 2025

    Question

    Michael Lonegan asked about PGE's preparedness for a potential slowdown in industrial load growth, options for capital reallocation, expected capital inflation, and the financing plan's reliance on tax credit monetization.

    Answer

    President and CEO Maria Pope expressed confidence in the industrial growth forecast, citing a diverse customer base and moderating inflation. SVP of Finance and CFO Joe Trpik clarified that the base financing plan does not heavily rely on tax credits, except for the Seaside project. He added that future tax credits are primarily a tool for customer affordability but also ease financing pressure, noting strong market interest for monetization.

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    Michael Lonegan's questions to Portland General Electric Co (POR) leadership • Q4 2024

    Question

    Michael Lonegan asked about the company's willingness to commit to a rate case stay-out period in exchange for a tracker for the Seaside project. He also sought clarity on equity needs beyond 2026 and the target FFO to debt metric.

    Answer

    President and CEO Maria Pope acknowledged the OPUC's request and mentioned they are considering it alongside discussions for multiyear regulatory solutions to find a durable outcome. Senior Vice President of Finance and CFO Joseph Trpik reiterated the plan to maintain a 50-50 capital structure, projecting equity needs in the low-to-mid hundreds of millions beyond 2026, exclusive of RFPs, to maintain balance sheet strength.

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    Michael Lonegan's questions to Portland General Electric Co (POR) leadership • Q3 2024

    Question

    Michael Lonegan inquired how the potential for higher ownership in the current RFP positions the company within its 5-7% EPS growth target and whether regulatory mechanisms withdrawn from the current rate case might be proposed again in the future.

    Answer

    SVP & CFO Joe Trpik stated that a successful RFP outcome, regardless of the final ownership percentage, is consistent with achieving their 5-7% EPS growth guidance. He also indicated that proposals for mechanisms like investment recovery trackers will likely be brought forward again in future proceedings, possibly within a multi-year framework, to help meet clean energy goals.

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    Michael Lonegan's questions to PG&E Corp (PCG) leadership

    Michael Lonegan's questions to PG&E Corp (PCG) leadership • Q1 2025

    Question

    Michael Lonegan asked what ROE and equity ratio are embedded in the long-term EPS forecast and whether the company sees an opportunity to raise its growth rate. He also asked for a narrower view on the approach to the $2.8 billion of capital in the SB 410 filing.

    Answer

    CFO Carolyn Burke reiterated that the company plans conservatively but declined to share the specific ROE assumption embedded in their financial plan. CEO Patti Poppe addressed the SB 410 filing by stating the priority is connecting new customers who need electricity in a timely manner and that this growth is reflected in current and future plans.

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    Michael Lonegan's questions to PG&E Corp (PCG) leadership • Q3 2024

    Question

    Michael Lonegan asked why asset sales were not mentioned as a source of efficient financing and if they have been ruled out. He also inquired about the timeline for formally incorporating the 'amplified' simple affordable model elements, like higher O&M savings, into the financial plan.

    Answer

    CFO Carolyn Burke confirmed that asset sales are not considered a primary source of financing for the company's future plans. CEO Patti Poppe explained that the amplified model is already materializing, with the $1 billion capital addition being a key proof point. She noted that future O&M savings and load growth forecasts will be formally reflected in the next General Rate Case (GRC) filing.

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    Michael Lonegan's questions to FirstEnergy Corp (FE) leadership

    Michael Lonegan's questions to FirstEnergy Corp (FE) leadership • Q1 2025

    Question

    Michael Lonegan inquired about the status of settlement discussions in the Ohio base rate case and asked for an update on the potential upside to capital expenditures from the growing data center pipeline.

    Answer

    Brian Tierney, Chair, President and CEO, described the Ohio settlement discussions as "productive and constructive," noting they are focused on typical items like ROE and capital structure. He added that while data center interest remains strong, particularly with Meta's new AI-focused facility, the long-term CapEx outlook for this segment has not changed from previous disclosures.

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    Michael Lonegan's questions to FirstEnergy Corp (FE) leadership • Q4 2024

    Question

    Michael Lonegan asked if the 6-8% core EPS growth forecast assumes the targeted 9.5-10% consolidated ROE and what the projected ROE for Ohio is. He also inquired about the potential size, timing, and funding for the West Virginia generation opportunity and incremental data center capex.

    Answer

    Executive K. Taylor confirmed the forecast assumes a 9.5-10% consolidated earned ROE and an Ohio ROE in the 9.5-10.5% range. Executive Brian Tierney estimated the West Virginia generation opportunity could be a $4-6 billion investment over 12-15 years, starting in the outer years of the current plan. He added that such incremental capital would be funded with a traditional mix of cash flow, debt, and equity instruments.

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    Michael Lonegan's questions to FirstEnergy Corp (FE) leadership • Q3 2024

    Question

    Michael Lonegan asked about the potential need for equity to finance incremental investments beyond the current plan and inquired about the expected year-end FFO to debt metric compared to the company's target.

    Answer

    Executive Jon Taylor stated that the company has cushion in its credit metrics for additional CapEx and that the current financing plan remains comfortable, with no new equity needs anticipated. He projected the year-end FFO to debt ratio would be just under 13%, below the target due to one-time settlement payments and storm costs, but would be near 14% on a normalized basis.

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    Michael Lonegan's questions to Entergy Corp (ETR) leadership

    Michael Lonegan's questions to Entergy Corp (ETR) leadership • Q4 2024

    Question

    Michael Lonegan inquired about the timing and scope of the Phase 2 resiliency program filings and asked about Entergy's commitment to its 6% annual dividend growth target in light of the expanding capital plan.

    Answer

    CEO Andrew Marsh indicated that filings for the next phase of resiliency investments are expected around the end of the year to ensure a seamless continuation of work. CFO Kimberly Fontan added that capital for Phase 2 would be added to the plan upon regulatory clarity. Regarding the dividend, she affirmed the 6% growth expectation, noting the payout ratio might decline from its historical 60-65% range due to high earnings growth.

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    Michael Lonegan's questions to Entergy Corp (ETR) leadership • Q3 2024

    Question

    Michael Lonegan asked why 2025 EPS guidance was maintained despite favorable weather and O&M flexibility, and inquired if there is a long-term target for the dividend payout ratio given the higher EPS growth outlook.

    Answer

    Executive Kimberly Fontan explained that O&M is flexed within a year and that conservative planning principles support maintaining the 2025 outlook, as no major business drivers have changed for that year. She noted the payout ratio will decline to just under 60% but that no specific target has been set, with the focus remaining on 6% dividend growth.

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