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    Michael Sullivan • Wolfe Research, LLC

    Michael Sullivan's questions to Vistra Corp (VST) leadership

    Michael Sullivan's questions to Vistra Corp (VST) leadership • Q2 2025

    Question

    Michael Sullivan of Wolfe Research sought clarification on whether the 'update by year-end' comment was specific to Comanche Peak or included other opportunities. He also asked if the pending Lotus acquisition precludes other M&A and about potential market power issues in key grids.

    Answer

    President & CEO Jim Burke clarified that the year-end timeline was not specific to Comanche Peak, as other opportunities across the fleet are also being pursued. Regarding M&A, Burke stated the Lotus deal does not preclude further transactions, noting Vistra has headroom in major markets like PJM and ERCOT and expects to evaluate future opportunities.

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    Michael Sullivan's questions to Talen Energy Corp (TLN) leadership

    Michael Sullivan's questions to Talen Energy Corp (TLN) leadership • Q2 2025

    Question

    Michael Sullivan of Wolfe Research asked how the higher-than-expected PJM auction results impact Talen's deleveraging plan and its capacity for further M&A. He also inquired about the company's strategy for its Brandon and Wagner sites in Maryland, given the state's RFP for new generation.

    Answer

    CFO Terry Nutt and CEO Mark McFarland stated that the strong auction results provide a tailwind, making it easier to achieve the <3.5x net leverage target by 2026 after financing the recent acquisitions. This, in turn, reloads the balance sheet for future opportunities. Regarding Maryland, McFarland confirmed the RMR agreements support grid reliability but noted that converting the plants to gas, a potential long-term solution, faces significant infrastructure challenges.

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    Michael Sullivan's questions to Talen Energy Corp (TLN) leadership • Q1 2024

    Question

    Michael Sullivan asked for more detail on the financial trajectory for 2025 and 2026 relative to 2024, and inquired about the intended use of the company's significant cash position beyond the announced share buyback.

    Answer

    Chief Financial Officer Terry Nutt explained that the 2025 and 2026 outlook can be directionally understood by layering the impacts of the AWS contract and recent spark spread improvements onto the 2024 baseline. Chief Executive Officer Mark McFarland added that while Q2 and Q4 have higher seasonal cash needs, the remaining cash balance could be available for further shareholder returns.

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    Michael Sullivan's questions to NRG Energy Inc (NRG) leadership

    Michael Sullivan's questions to NRG Energy Inc (NRG) leadership • Q2 2025

    Question

    Michael Sullivan of Wolfe Research questioned the slower-than-expected load ramp for the new data center deal and asked if previously mentioned partners Powell and Menlo were involved. He also sought clarity on the cadence for updating the company's financial outlook, including the integration of the LS Power acquisition.

    Answer

    EVP & President of Business & Wholesale Operations Robert Gaudette explained the load ramp reflects a modular, 'edge' data center design. Chairman, CEO and President Larry Coben confirmed they are still actively working with Powell and Menlo under existing letters of intent. Regarding guidance, management indicated a standalone 2026 outlook would come in Q3, with a full long-term plan update incorporating LS Power likely after that transaction closes.

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    Michael Sullivan's questions to NRG Energy Inc (NRG) leadership • Q4 2024

    Question

    Michael Sullivan asked for a cost comparison between the new GE Vernova greenfield projects and NRG's Texas brownfield developments, and how the $70-$90/MWh PPA price aligns with targeted returns. He also questioned if the 80-20 capital allocation framework would hold during this growth phase and what other Texas legislation to watch besides SB6.

    Answer

    Lawrence Coben, Chair, President and CEO, estimated the new build costs would be in the market range of $1,500-$2,000/kW, higher than the sub-$1,000/kW brownfields, but expects their partnership to achieve costs at the lower end of that range. He stated that while the hurdle rate is unchanged, he expects these projects to 'significantly beat' it. Coben confirmed the 80-20 framework remains for the next three years and that SB6 is the primary legislative focus.

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    Michael Sullivan's questions to NRG Energy Inc (NRG) leadership • Q3 2024

    Question

    Michael Sullivan of Wolfe Research asked for clarification on the '10% plus' long-term growth target, the impact of future tax rate changes, the stability of the VPP's different value streams, and the competitive landscape for VPPs in Texas.

    Answer

    Chair and CEO Lawrence Coben and CFO Bruce Chung clarified that the 10%+ growth is a long-term average and that business performance is expected to offset future tax rate increases. Head of NRG Consumer Rasesh Patel and an executive, likely Robert Gaudette, confirmed the VPP's consumer value stream is stable, while the supply value is more variable but represents a consistent insurance value. CFO Bruce Chung highlighted NRG's unique competitive advantage in the VPP space due to its customer scale and exclusive partnership with Renew Home and Google for new Nest enrollments in Texas.

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    Michael Sullivan's questions to PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) leadership

    Michael Sullivan's questions to PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) leadership • Q2 2025

    Question

    Michael Sullivan from Wolfe Research questioned the alternatives for new power supply in New Jersey if current legislation fails and whether PSEG would consider a non-regulated generation joint venture. He also asked for quantification of the benefits from recent federal tax legislation.

    Answer

    Chair, President & CEO Ralph LaRossa reiterated that PSEG is not interested in re-entering the merchant generation business, stating that without state action, New Jersey relies on the PJM process. EVP & CFO Daniel Cregg explained that the tax legislation primarily preserved the nuclear PTC and that the new bonus depreciation provides only a minor cash flow benefit as it applies to the small unregulated business.

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    Michael Sullivan's questions to PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) leadership • Q2 2024

    Question

    Michael Sullivan from Wolfe Research questioned if PSEG is in discussions for an Interconnection Service Agreement (ISA) for its Artificial Island site and why the company has not formally commented on the related FERC docket. He also asked for PSEG's current stance on offshore wind development in New Jersey.

    Answer

    Ralph LaRossa, Chairman, President and CEO, clarified that PSEG has not filed for an interconnection agreement and is not at that stage. He explained their lack of comment on the FERC docket by stating it was not their contract and they trust PJM's process. LaRossa and Daniel Cregg, EVP and CFO, both affirmed that offshore wind remains a high priority for New Jersey, with an ongoing solicitation and no signs of a slowdown.

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    Michael Sullivan's questions to AES Corp (AES) leadership

    Michael Sullivan's questions to AES Corp (AES) leadership • Q2 2025

    Question

    Michael Sullivan requested more detail on the 1.6 GW of PPAs signed during the quarter, asked about the progression of conversations regarding new gas plant construction for data centers, and sought to quantify the regulatory lag in Ohio.

    Answer

    CEO Andrés Gluski confirmed the 1.6 GW of new PPAs were entirely with data center customers, including 650 MW with Meta, and reiterated AES's capability and willingness to build gas plants if customers demand them. CFO Stephen Coughlin explained that the new three-year forward test year framework in Ohio will "significantly largely eliminate" regulatory lag, with a new rate case expected to be filed later in the year for the 2027-2029 period.

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    Michael Sullivan's questions to AES Corp (AES) leadership • Q1 2025

    Question

    Michael Sullivan asked about the company's progress against its long-term asset sale target and what assets remain for sale, and also sought views on the potential timing and scope of legislative changes to the IRA.

    Answer

    CFO Steve Coughlin noted AES is at $3.4 billion of its $3.5 billion target and halfway to its 2025-2027 goal, with remaining candidates including the Vietnam sale, smaller thermal assets, and potential partnerships. CEO Andres Ricardo Gluski Weilert shared that he expects a pragmatic legislative outcome on the IRA, with safe harbor provisions likely to be maintained, and that a bill could emerge before the August recess, driven by the need for energy to support U.S. strategic goals.

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    Michael Sullivan's questions to AES Corp (AES) leadership • Q4 2024

    Question

    Michael Sullivan asked for a specific EBITDA figure for the retained coal assets, questioning how the previous $750 million roll-off figure has changed. He also inquired about interest rate risk on upcoming debt maturities and the timeline for achieving the 5-7% EBITDA CAGR.

    Answer

    CFO Stephen Coughlin estimated that roughly one-third of the previously guided $750 million coal EBITDA roll-off may now continue beyond 2027. He also confirmed upcoming debt refinancings are nearly fully hedged against interest rate risk and stated that AES would see significant, low-teens EBITDA growth in 2026, putting it firmly on track for its long-term CAGR target.

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    Michael Sullivan's questions to AES Corp (AES) leadership • Q3 2024

    Question

    Michael Sullivan of Wolfe Research sought clarity on when AES expects to fall within its 5-7% EBITDA CAGR target, given the near-term headwinds. He also asked about the potential for new natural gas generation at the utility and the company's strategy for adding wind power to its historically solar-heavy U.S. portfolio.

    Answer

    CFO Stephen Coughlin explained that near-term growth is impacted by the front-end loaded effects of the company's transformation, such as asset sales, with a larger growth inflection expected beyond 2025. CEO Andres Gluski stated that decisions on new gas generation would be informed by the upcoming IRP and confirmed that the U.S. development pipeline includes a considerable amount of wind, which will create more balance with solar in future years.

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

    Michael Sullivan's questions to FirstEnergy Corp (FE) leadership • Q2 2025

    Question

    Michael Sullivan inquired if FirstEnergy's West Virginia generation plans are focused on building new assets versus acquiring existing ones, and sought clarification on the company's willingness to consider contracted, unregulated generation.

    Answer

    President, CEO & Chairman Brian Tierney responded that while all options are on the table, the company's preference is to build new dispatchable generation in West Virginia. He clarified that FirstEnergy would consider investments with a regulated-like risk profile, such as fully contracted assets, but is not interested in taking on merchant market risk.

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    Michael Sullivan's questions to WEC Energy Group Inc (WEC) leadership

    Michael Sullivan's questions to WEC Energy Group Inc (WEC) leadership • Q2 2025

    Question

    Michael Sullivan questioned the specific requirements for formally including the Vantage data center load in the forecast, the potential for further extending coal plant operations versus building new combined-cycle gas turbines (CCGTs), and requested more details on the Q2 storm damage charge.

    Answer

    President and CEO Scott Lauber stated he is comfortable including Vantage in the next five-year plan and noted broad economic growth, including residential housing, is also driving load. He clarified that the Oak Creek coal units cannot be extended further and that a new CCGT is likely needed. CFO Xia Liu explained the storm damage charge related to Texas solar facilities, noting that an accounting entry was necessary but some costs may be recovered through insurance.

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    Michael Sullivan's questions to WEC Energy Group Inc (WEC) leadership • Q1 2025

    Question

    Michael Sullivan of Wolfe Research inquired about where tariff impacts are being felt within the capital plan, the cost recovery process for renewables, and the potential effects of a lower corporate tax rate on the company.

    Answer

    Executive Scott Lauber identified the largest potential tariff exposure in materials for generation projects, specifically solar panels and batteries, and noted that any cost increases would go through a regulatory prudency review. Regarding a lower corporate tax rate, both Scott Lauber and CFO Xia Liu explained that while benefits would flow to customers, it would create a smaller tax shield at the parent company but increase the rate base at the utilities over the long term.

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    Michael Sullivan's questions to WEC Energy Group Inc (WEC) leadership • Q3 2024

    Question

    Michael Sullivan questioned the reasons for not settling the Wisconsin rate case and the company's outlook on the final order. He also asked why 2024 guidance was not raised despite the anticipated Q4 benefit from the ATC ROE decision.

    Answer

    Executive Scott Lauber expressed comfort with the Wisconsin rate case proceeding to a commission decision, noting they are far along in the process. Regarding guidance, both Lauber and CFO Liu Xia explained that the $0.05 ATC ROE benefit helps offset headwinds, including unfavorable weather from earlier in the year, keeping them on track for the existing guidance range.

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    Michael Sullivan's questions to WEC Energy Group Inc (WEC) leadership • Q2 2024

    Question

    Michael Sullivan of Wolfe Research questioned how incremental equity needs would be handled with future CapEx increases and asked for the range of potential outcomes from the pending Illinois dockets, including the Safety Modernization Program review.

    Answer

    President and CEO Scott Lauber confirmed that incremental equity would be issued in line with capital spending to support long-term growth. On the Illinois dockets, he noted that intervener testimony for the Safety Modernization Program ranges from a capped, limited restart to an accelerated completion, but importantly, no party has recommended a continued pause. He also mentioned the 2016 QIP Rider reconciliation is awaiting a decision.

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    Michael Sullivan's questions to DTE Energy Co (DTE) leadership

    Michael Sullivan's questions to DTE Energy Co (DTE) leadership • Q1 2025

    Question

    Michael Sullivan inquired about battery storage plans, potential tariff impacts, new gas plant costs, and the status of projects related to the 45Z tax credits.

    Answer

    Chairman and CEO Gerardo Norcia stated that overall tariff risk is manageable at 1-2% of the capital plan and that potential changes to EPA rules could improve the economics of new gas plants needed to replace aging coal units. EVP and CFO David Ruud confirmed that all projects associated with the 45Z tax credits are already online and earning.

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    Michael Sullivan's questions to DTE Energy Co (DTE) leadership • Q3 2024

    Question

    Michael Sullivan from Wolfe Research inquired about the future timing of long-term plan updates, the sustainability of the Energy Trading segment's outperformance, and the specific drivers for the fourth quarter, including potential reversals of prior-year cost-cutting measures.

    Answer

    EVP and CFO David Ruud stated that the timing of future long-term updates will be decided as things play out. He confirmed the Energy Trading segment's strength is based on contracted positions and does not expect a Q4 reversal, seeing reason for optimism going forward due to multi-year contracts. He also noted that some O&M costs have returned in 2024 compared to the prior year's aggressive cuts, and that unfavorable weather has impacted the gas business, which will be factors in Q4.

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    Michael Sullivan's questions to DTE Energy Co (DTE) leadership • Q2 2024

    Question

    Michael Sullivan asked if the strong performance in the trading business was being offset by weakness elsewhere, inquired about a gain on sale at Vantage, and questioned the potential impact of the U.S. election on DTE's resource planning and reliance on IRA tax credits.

    Answer

    CFO David Ruud stated the company feels good about all its businesses and plans to use any outperformance to pull forward maintenance. He identified the Vantage gain on sale as related to exiting a landfill gas project partnership. CEO Gerardo Norcia asserted that state-level clean energy mandates will drive investment regardless of federal politics and that changing the IRA would be difficult, viewing a negative impact as a low-probability event.

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    Michael Sullivan's questions to DTE Energy Co (DTE) leadership • Q1 2024

    Question

    Michael Sullivan delved into the electric rate case, asking about the chances of the storm cost tracker being approved and the potential for the Infrastructure Recovery Mechanism (IRM) to space out future cases. He also inquired if the Q1 Vantage plant outage was planned.

    Answer

    President and CEO Joi Harris expressed optimism for the storm tracker's approval, noting it would have been helpful last year and seems aligned with consumer interests. She detailed the IRM capital amounts for 2026-2027 ($530M and $720M respectively) but suggested it would need to grow over several years to meaningfully alter the rate case cadence. EVP and CFO Dave Ruud clarified the Vantage plant outage was unplanned, started last year, and is now resolved.

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    Michael Sullivan's questions to CMS Energy Corp (CMS) leadership

    Michael Sullivan's questions to CMS Energy Corp (CMS) leadership • Q1 2025

    Question

    Michael Sullivan asked about the potential impact on the financial plan if IRA tax credit transferability were eliminated and sought to confirm the $700 million transferability assumption.

    Answer

    President and CEO Garrick Rochow expressed optimism that transferability will remain, citing supportive political conversations. EVP and CFO Rejji Hayes outlined countermeasures if it were lost, including issuing more junior subordinated notes, incremental equity, or shifting to more PPAs for balance sheet flexibility. Hayes confirmed the $700 million transferability assumption in the current plan is correct.

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    Michael Sullivan's questions to CMS Energy Corp (CMS) leadership • Q3 2024

    Question

    Michael Sullivan sought to level-set expectations for load growth in the upcoming REP filing, asking if it would be a conservative update to the current flat forecast. He also asked for clarification on why the current electric case is likely headed for adjudication and the specifics of the proposed storm recovery mechanism.

    Answer

    EVP and CFO Rejji Hayes responded that while the company plans conservatively, there will be 'significant upward pressure' on the current 0.5% net load growth forecast in the REP. President and CEO Garrick Rochow explained the rate case may be adjudicated to secure the best outcome for customers, specifically on a proposed storm recovery mechanism and other distribution investments that were not fully supported in the staff's initial position. Hayes detailed the proposed storm tracker as a 50/50 sharing mechanism for costs above or below a 5-year average embedded in rates.

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    Michael Sullivan's questions to CMS Energy Corp (CMS) leadership • Q2 2024

    Question

    Michael Sullivan questioned if a recently announced data center project was contingent on state legislation, inquired about the typical timeline for new load, and asked about any potential changes to rate case statutes.

    Answer

    President and CEO Garrick Rochow clarified the 230 MW data center is not contingent on legislation and is proceeding. He stated that a 2-3 year cycle is a reasonable proxy for new load integration. He also affirmed there is no discussion of changing the 10-month rate case law, but the company is exploring ways to streamline the process, such as pre-approving multi-year reliability plans.

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    Michael Sullivan's questions to Evergy Inc (EVRG) leadership

    Michael Sullivan's questions to Evergy Inc (EVRG) leadership • Q4 2024

    Question

    Michael Sullivan from Wolfe Research asked for the timeline and potential impact of Missouri's SB4 legislation and questioned how the planned new generation builds align with the economic development pipeline.

    Answer

    Chairman and CEO David Campbell described SB4 as 'transformative' for Missouri's regulatory framework, citing new provisions for CWIP and an improved IRP process, and expressed confidence it would pass. He clarified that of the 2.4 GW in the advanced pipeline, about 1.1 GW is expected by 2029, with future generation additions available to meet this demand.

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    Michael Sullivan's questions to Evergy Inc (EVRG) leadership • Q3 2024

    Question

    Michael Sullivan from Wolfe Research questioned why an 8% rate base growth target translated to an EPS CAGR in the upper half of 4-6%. He also asked for color on the scale of new equity financing and the estimated cost of the new gas plants.

    Answer

    Chairman and CEO David Campbell explained that capital investments and rate base growth accelerate in the plan's outer years, and the outlook reflects confidence with upside potential. EVP and CFO Bryan Buckler characterized the guidance as conservative. Regarding the gas plants, Campbell confirmed costs have risen in line with industry trends but are justified, with more details to come in future filings.

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    Michael Sullivan's questions to Fortis Inc (FTS) leadership

    Michael Sullivan's questions to Fortis Inc (FTS) leadership • Q1 2024

    Question

    Michael Sullivan of Wolfe Research asked for a comparison of the MISO Tranche 2 opportunity versus Tranche 1, details on the Iowa ROFR legislative outcome, and an update on Arizona's efforts to reduce regulatory lag.

    Answer

    President & CEO David Hutchens described the MISO Tranche 2 opportunity as directionally 'pretty good,' noting the draft map has 'a lot more lines' and the portfolio size is roughly double that of Tranche 1. On Iowa, he said the ROFR bill was a victim of politics and was not brought for a debate, but Fortis would try again next session. He characterized the Arizona regulatory workshops as 'very positive,' with options like a formula rate being explored to reduce lag.

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