Nathan Richardson

Nathan Richardson inquired about the specific impact of the recently added third data center in the 'finalizing agreements' category on Evergy's 4-5% sales growth guidance.

Answer

David Campbell, Chairman and CEO, Evergy, clarified that the 2-3% load growth stems from 'actively building' customers, and the 4-5% potential includes the first two data centers in 'finalizing agreements.' He stated that the third data center would be incremental to this 4-5% and its full impact is expected post-2029, with further quantification to be provided in the year-end call.

Nathan Richardson asked for clarification on the impact of the recently added third data center in the 'finalizing agreements' category, specifically whether its load would be incremental to the previously guided 4-5% sales growth.

Answer

David Campbell, Chairman and CEO, Evergy, clarified that the 2-3% load growth is from the 'actively building' category, and the potential to reach 4-5% annual load growth through 2029 is based on the first two customers in the 'finalizing agreements' category. He confirmed that the third data center customer would be additive to the 4-5% annual load growth potential, with the bulk of its impact expected post-2029.

Nathan Richardson from Barclays inquired about Evergy's strategy for managing its equity needs beyond 2025 and the potential impact of a slower-than-expected Panasonic load ramp on the company's overall demand growth forecast.

Answer

EVP & CFO Bryan Buckler, supported by CEO David Campbell, stated that while there's no planned equity raise in 2025, they will consider a ratable ATM program with forward sales in the coming months to address the ~$600M per year need in '26-'27. Campbell added that the company's 2-3% load growth forecast has significant tailwinds from a robust economic development pipeline, which provides a buffer against potential shifts in any single customer's ramp schedule, like Panasonic's.

Nathan Richardson of Barclays inquired about the potential for incremental large customer load growth to reduce future equity needs and asked if the 2025 Integrated Resource Plan (IRP) is designed to accommodate this potential upside.

Answer

EVP and CFO W. Buckler explained that while not providing specific guidance, the incremental load growth could reduce equity needs by "hundreds of millions" over the five-year plan. Chairman and CEO David Campbell confirmed the latest IRP now incorporates the load from customers in the "finalizing agreements" category, which is a key driver for the increased resource needs outlined in the plan.

Nathan Richardson inquired about the drivers behind weaker industrial sales, the outlook for parent company financial drag for 2025, and the company's preference for ownership versus Power Purchase Agreements (PPAs) for future generation capacity.

Answer

CFO & Treasurer Charles Walworth attributed the softness in industrial sales to the intermittent nature of large power users and their maintenance cycles, while highlighting strong overall weather-normalized load growth of 6.5% year-to-date. He also advised that the parent company drag is on track with guidance, excluding a one-time benefit. Chairman, President & CEO Sean Trauschke affirmed the company's strong preference to own new generation assets, using short-term PPAs as a bridge during construction.

Nathan Richardson inquired about OGE's potential investment opportunities with the Southwest Power Pool (SPP) and whether they would be incremental to the current capital plan. He also asked about the potential to raise earnings or rate base growth guidance given the strong load growth environment.

Answer

R. Trauschke, Chairman, President and CEO, confirmed that SPP presents another investment lever and that opportunities will be layered into the plan once finalized. He explained that future capital deployment is directly tied to materializing load growth, emphasizing the company's focus on a long-term, sustainable model rather than a short-term increase in guidance.

Nathan Richardson requested details on the expedited regulatory case for the Seaside battery project and asked about the recent decline in the equity layer, the year-end target, and the timeline to reach a 50% equity ratio.

Answer

SVP of Finance and CFO Joseph Trpik confirmed plans to file an expedited case for the Seaside project soon, following constructive dialogue with parties. Regarding the balance sheet, he acknowledged the recent ATM issuance and affirmed the company's commitment to working towards its 50/50 capital structure target, stating they can continue to make non-dilutive investments.

Nathan Richardson of Barclays inquired about how a potential shift to a high-growth scenario for electricity demand would affect Alliant Energy's 5% to 7% long-term EPS growth guidance. He also asked for details on equity funding contributions for 2026 and beyond, including the potential use of an At-the-Market (ATM) program.

Answer

Lisa Barton, President and CEO, characterized the high-growth scenario as upside potential that extends the company's 5% to 7% growth runway into later years. Robert Durian, Executive Vice President and CFO, added that the updated capital plan necessitates approximately $1 billion in new common equity through 2028, likely issued ratably from 2026 to 2028 at around $300-$350 million per year, for which an ATM program would be a viable option.