Ryan Levine

Ryan Levine asked about incremental opportunities to add gas storage given the experience of Storm Uri and increased gas demand in the service areas, requesting updated color on this opportunity set.

Answer

Kevin Akers (CEO) explained that the company has 15 storage fields, third-party contract storage, and upstream interstate pipeline capacity storage. He stated that the gas supply and operations teams conduct a rigorous post-winter review of system performance, gas supply plan performance, and customer growth/demand expectations, often with a third-party engineering firm, to evaluate future storage needs.

Ryan Levine asked about incremental opportunities to add gas storage, given recent storm events and increased gas demand in the service areas.

Answer

Kevin Akers, President and Chief Executive Officer, explained that the company continuously reviews its 15 storage fields, third-party contracts, and interstate pipeline capacity post-winter. This rigorous review, including third-party consulting, evaluates system performance, gas supply plans, customer growth, and demand expectations to identify future storage needs.

Ryan Levine of Citigroup questioned the underlying growth assumptions that justify the current APT expansion projects and asked what conditions would necessitate further expansion. He also inquired if the post-winter review of customer demand, which informs these plans, had been completed for the year.

Answer

CEO John Akers described expansion planning as a continuous process driven by city growth models, population forecasts, and anticipated demand. He clarified that the review of demand from local distribution companies is currently ongoing and will be finalized before the next heating season to determine if any adjustments to the plan are required.

Ryan Levine of Citigroup Inc. asked about the potential impact of federal tariffs on Chinese and Mexican goods on the company's O&M and CapEx, and the available regulatory recovery mechanisms. He also inquired about the potential business impact from increased gas consumption related to developments in Abilene.

Answer

John Akers, President and CEO, responded that the company is monitoring the tariff situation but currently anticipates a low impact, and confirmed that annual recovery mechanisms exist in nearly all jurisdictions. Regarding potential growth in Abilene, Akers explained that a new customer on the APT system would likely be served on an interruptible basis, with any upside shared with existing customers via the 75/25 sharing mechanism.

Ryan Levine from Citigroup Inc. asked about the company's assumption for bad debt expense and its impact on the outlook. He also inquired about the customer growth forecast for the Texas market and whether the 4% O&M growth guidance would be lumpy over the forecast period.

Answer

SVP and CFO Christopher Forsythe stated that bad debt expense is expected to be relatively flat year-over-year as it normalizes to pre-pandemic levels. He noted that customer growth assumptions are in line with recent strong trends. Regarding O&M, Forsythe anticipates a gradual 4% increase each year, though some quarterly lumpiness could occur due to the timing of operational work.

Ryan Levine from Citi asked about NRG Energy's assumptions for 2026 standalone smart home business growth and its longer-term trend. He also inquired about changes in the duration (tenor) of hyperscaler data center contracts and the standardization of inflation provisions within these agreements.

Answer

Brad Bentley, EVP, indicated that 2026 smart home customer growth assumptions are similar to the strong performance seen this year, supported by new distribution channels and a "good, better, best" offering strategy. Bruce Chung, EVP and CFO, added that this growth aligns with the higher end of the 5%-6% net customer growth target from the original $750 million growth plan. Regarding data center contracts, Mr. Bentley stated that customers continue to seek at least 10-year tenors, with some even longer, especially for "bring-your-own-generation" models. He also noted that most contracts include provisions allowing NRG to pass through costs and maintain fixed margins.

Ryan Levine inquired about the assumed smart home growth for the 2026 standalone business, the evolving trend in data center contract durations, and the standardization of inflation provisions in these contracts.

Answer

Brad Bentley, EVP, expects strong smart home customer growth in 2026, consistent with the original 5-6% target, driven by new offerings. He also stated that data center contract tenures are increasing, with customers seeking at least 10 years, especially for bring-your-own-generation deals. Most contracts include provisions allowing NRG to pass through costs and maintain fixed margins.

Ryan Levine inquired about the specific PJM regions driving the majority of FirstEnergy's 30% CapEx upside and whether cost inflation for labor or equipment is a significant component of this increase. He also asked about the company's confidence in its load forecast visibility, especially in light of recent commentary from FERC and other Public Utility Commissions.

Answer

Brian Tierney, Chair, President, and CEO, clarified that the 30% CapEx increase is primarily due to incremental work rather than inflationary impacts, and it is broadly distributed across all five of FirstEnergy's states. He expressed confidence in the load forecasts, particularly for the next five years based on contracted projects, and for the next decade, citing criteria like land ownership, building permits, and public project announcements by developers for data center loads.

Ryan Levine inquired about the specific regions within PJM where FirstEnergy is seeing the majority of the 30% CapEx investment opportunity and whether cost inflation for labor or equipment is a significant component of that increase. He also asked about the company's confidence in its load forecasts, especially in light of recent commentary from FERC and other Public Utility Commissions.

Answer

Brian Tierney, Chair, President, and CEO, clarified that most of the 30% CapEx increase is due to incremental work rather than inflationary impacts, distributed fairly evenly across all five states. He expressed confidence in the load forecasts, particularly for the next five-year period, which is largely based on contracted demand. For longer-term forecasts, criteria like land ownership, building permits, and public project announcements are used to assess customer commitment.

Ryan Levine from Citigroup inquired about the impact of the downsized Baker storage project on the Bakken East pipeline's potential scale and asked about the implications of the revised 2025 EPS guidance for the company's long-term earnings outlook.

Answer

CEO Nicole Kivisto clarified that the Baker storage project and the Bakken East pipeline are considered separate, and a successful Bakken East project could even create new storage expansion opportunities. CFO Jason Vollmer explained the guidance revision was due to Q2 weather impacts and higher operating costs, but stated these factors are not expected to represent a longer-term trend impacting the 6-8% long-term EPS growth target.

Ryan Levine from Citigroup inquired about the impact of the downsized Baker storage project on the potential scale of the Bakken East pipeline and asked how the revised 2025 EPS guidance affects the company's long-term earnings outlook.

Answer

CEO & President Nicole Kivisto explained that the Baker storage project and the Bakken East pipeline are considered separate, and a successful Bakken East project could create new storage expansion opportunities. CFO Jason Vollmer attributed the narrowed EPS guidance to Q2 weather impacts and higher operating costs, noting these factors are not expected to represent a long-term trend but made the high end of the previous range unlikely.

Ryan Levine from Citigroup inquired about the implications of a downsized Baker storage project on the Bakken East pipeline's scale and asked how the revised 2025 EPS guidance affects the company's long-term earnings outlook.

Answer

CEO Nicole Kivisto clarified that the Baker storage project and the Bakken East pipeline are currently considered separate projects, and a successful Bakken East could even create new storage expansion opportunities. CFO Jason Vollmer addressed the guidance revision, attributing it to unfavorable weather in Idaho and higher operating expenses. He noted that some expenses are pass-through and that the cost run rate seen in H1 is not expected to continue at the same pace for the rest of the year, making the top end of the previous range unlikely.

Ryan Levine of Citigroup inquired about the impact of a smaller-than-anticipated Baker storage project on the scale of the Bakken East pipeline and asked how the revised 2025 EPS guidance affects the company's long-term earnings outlook.

Answer

CEO Nicole Kivisto explained that the Baker storage project and the Bakken East pipeline are considered separate projects, and a successful Bakken East could create new storage expansion opportunities. CFO Jason Vollmer addressed the guidance, attributing the narrowed range to unfavorable weather and higher operating expenses in Q2, but stated these factors are not expected to represent a long-term trend impacting the 6% to 8% long-term EPS growth target.

Ryan Levine asked about the Bakken East project, including whether a new open season is planned and the impact of tariffs on its economics. He also inquired about how new wildfire legislation affects mitigation plans and sought clarification on the size of the planned ATM program and the baseline for the long-term EPS growth target.

Answer

Executive Jason Vollmer stated the next step for Bakken East involves formalizing agreements with interested parties rather than a new open season, and that potential tariffs are a manageable cost. President and CEO Nicole Kivisto explained that new wildfire legislation formalizes existing mitigation plans and provides liability limitation. Vollmer clarified the ATM program size is undetermined but is for future needs starting in 2026, and confirmed the 6-8% long-term EPS growth rate can be based on either adjusted 2024 results or the 2025 guidance.

Ryan Levine asked if the recent pipeline acquisition signals a more aggressive M&A strategy for the newly focused MDU, particularly within the midstream business. He also requested details on the financial contribution from the gas storage assets during the quarter and the expected duration of their strong performance.

Answer

Nicole Kivisto, President & CEO, stated that MDU's primary focus is on its significant organic growth opportunities but affirmed the company will continue to evaluate acquisitions that create value for shareholders, customers, and employees, consistent with its historical approach. Both Kivisto and Rob Johnson, President of WBI Energy, confirmed this applies to the pipeline business, which has numerous organic projects but remains open to strategic acquisitions. Regarding gas storage, Kivisto explained that the company does not break out the specific financial contribution but acknowledged it was 'outsized' relative to expectations and that strong demand for storage services is expected to continue, with formal 2025 guidance to be provided in February.

Ryan Levine from Citi asked about the reasons for Everus's revenue timing delays, the drivers behind its higher margin outlook, the potential impact of PJM workshops on Ohio data center growth, and MDU's plans regarding an equity stake in the upcoming Everus spin-off.

Answer

Jeffrey Thiede, President and CEO of Everus, attributed revenue delays to a misalignment between new project starts and large project completions, particularly in the Las Vegas commercial market, but expressed confidence in future quarters. He credited the higher margin profile to strong project execution. On the Ohio data centers, he stated there has been no impact from PJM workshops. Jason Vollmer, an MDU executive, addressed the spin-off, confirming a late 2024 timeline and stating that while no final decision on retaining an equity stake has been made, the goal is to ensure both companies are well-capitalized post-spin.

Ryan Levine from Citigroup inquired about Evergy's EPC strategy, labor availability, and contractual protections for its new gas generation projects, seeking confidence in meeting commercial operation dates.

Answer

CEO David Campbell expressed high confidence, noting Evergy is working with a leading, seasoned EPC provider using proven technology. He highlighted the region's access to a skilled workforce and major EPC headquarters. Campbell confirmed that the contractual agreements provide strong commitments and protections, making him feel good about achieving the planned commercial operation dates.

Ryan Levine from Citi asked about engagement with hyperscaler customers, questioning if supply chain realities mean new generation capacity is unavailable until post-2031 and how this timeline affects the pace of negotiations.

Answer

Chairman and CEO David Campbell responded that speed is a primary interest for these customers, involving both generation and T&D availability. He expressed confidence that for the customers in advanced discussions (500-1,000 MW), Evergy can line up opportunities to meet their load needs and timelines, even if customers would always prefer to move faster.

Ryan Levine questioned the risk profile of the anchor shipper agreement for the new pipeline, specifically asking about the risk to shareholders and ratepayers if the anticipated uncommitted growth projects do not materialize.

Answer

President, CEO & Chairman Ted Geisler stated that the pipeline was necessary to ensure long-term, affordable reliability for existing customers and the already committed queue, even without any new uncommitted growth. He asserted that the investment is easily demonstrated as prudent and necessary for the current customer base. He also confirmed the company has commercially secured rights to flex up its capacity procurement on the pipeline if needed.

Ryan Levine from Citigroup inquired whether recent executive orders or commissioner comments would lead to a reassessment of the company's coal plant closure plans.

Answer

CEO Ted Geisler clarified that the comments referred to the Cholla Power Plant, which was retired earlier in the year due to federal requirements and unfavorable economics. He confirmed the plant is expected to remain retired, with replacement generation already procured. The company is now exploring repurposing the site for new technologies like nuclear or gas generation.

Ryan Levine asked about the practical dynamics of the Genco application, questioning if contract terms are pre-negotiated or if an approval would trigger new negotiations. He also inquired about cost recovery mechanisms for potentially extending the operational life of the Schaeffer plant.

Answer

President & CEO Lloyd Yates clarified that Genco declination and counterparty negotiations are separate processes and that they would not renegotiate based on the Genco order. He noted the order is a tool for speed, but other options like House Bill 1007 exist. Regarding the Schaeffer plant, Mr. Yates stated that conversations with state and federal officials about cost recovery mechanisms are ongoing.

Ryan Levine of Citigroup asked about the practical dynamics of the Genco approval, specifically whether contract terms are being pre-negotiated or if approval would trigger new negotiations. He also inquired about cost recovery mechanisms for potentially extending the life of the Schaeffer plant.

Answer

President & CEO Lloyd Yates reiterated that Genco declination and counterparty discussions are separate processes and that the Genco order is a 'tool' for speed, not the only option available. EVP Michael Luhrs added that they are working on multiple parallel streams to ensure success. Regarding the Schaeffer plant, Yates clarified that cost recovery discussions with state and federal entities are ongoing and separate from House Bill 1007.

Ryan Levine from Citigroup asked about the practical dynamics of the Genco application, specifically if a September approval would trigger negotiations or if terms are already being discussed. He also inquired about cost recovery mechanisms for potentially extending the life of the Schaeffer plant.

Answer

President & CEO Lloyd Yates clarified that Genco declination and counterparty negotiations are separate processes and a Genco approval is a tool for speed, not the only option, citing House Bill 1007 as an alternative. EVP & Chief Commercial Officer Michael Luhrs added they are working on multiple parallel streams. Regarding Schaeffer, Yates stated that conversations with state and federal regulators about cost recovery are ongoing.

Ryan Levine from Citigroup asked for the expiration dates of NiSource's labor contracts and inquired what portion of its load, both current and prospective, is tied to the electric vehicle (EV) supply chain.

Answer

A NiSource executive stated that major labor contracts, including NIPSCO and Pennsylvania, are set for renegotiation in 2026. CEO Lloyd Yates noted that load from the EV supply chain is 'extremely minimal.' Executive Shawn Anderson clarified that EV battery manufacturers are primarily large natural gas customers, driving infrastructure expansion.

Ryan Levine inquired about steps being taken to accelerate the time-to-market for critical gas generation and asked for a breakdown of the CapEx increase between inflation and new projects.

Answer

EVP Michael Luhrs stated that while not providing commercial specifics, NiSource has been 'appropriately planning' and 'positioning ourselves effectively' for generation needs. EVP and CFO Shawn Anderson clarified that the CapEx increase is thematically driven by 'additional work, not the cost of the same work,' citing rising compliance and regulatory requirements from bodies like the EPA, MISO, and PHMSA.

Ryan Levine from Citigroup inquired if PSEG would seek another customer bill deferral due to PJM capacity prices, asked for details on the number of projects in the large load pipeline, and questioned if the recent Core Weave announcement was included in the updated forecast.

Answer

Chair, President & CEO Ralph LaRossa explained that any future bill deferral would be a discussion with the new state administration. He characterized the load growth as numerous smaller projects rather than hyperscale facilities and confirmed a portion of the Core Weave development is in their projections. EVP & CFO Daniel Cregg added that the next capacity price impact on bills is not expected to be as significant as the last one.

Ryan Levine of Citi asked if PSEG is considering an extension to its energy efficiency program in light of the load forecast. He also sought clarity on the scope of data center feasibility studies and the influence of legal or regulatory frameworks on them.

Answer

Ralph LaRossa, Chairman, President and CEO, explained that the ongoing settlement discussions for the EE2 filing are the primary policy response to offsetting future load growth. He defined feasibility studies as the engineering analysis phase before a formal new business request is made. Daniel Cregg, EVP and CFO, added that at this stage, the focus is more operational than legal or regulatory.

Ryan Levine of Citigroup inquired about the potential contract duration for nuclear power sales to data centers and whether any state legislative initiatives are being monitored to help attract this new load.

Answer

EVP and CFO Dan Craig suggested that contracts would be long-term, given the significant investment required to build a data center. He also expressed confidence in the region's transmission preparedness. Chair, President and CEO Ralph LaRossa stated that he believes New Jersey already has sufficient tools and economic development programs to attract new businesses and does not foresee the need for additional legislative changes.

Ryan Levine inquired about the potential duration of long-term contracts for data centers, how transmission constraints might affect timelines, and whether any legislative initiatives were underway to attract this type of load to New Jersey.

Answer

Executive Vice President and CFO Daniel Cregg suggested that contracts would be long-term, reflecting the significant, long-life nature of data center investments, and expressed confidence in the region's transmission capacity. Chair, President and CEO Ralph LaRossa added that he believes New Jersey already has sufficient tools and economic development initiatives to attract new businesses without requiring new legislation.

Asked about the company's readiness to respond once nuclear PTC guidance is issued and inquired about the role of time-of-use rates in attracting data centers.

Answer

Management has done extensive modeling of potential PTC outcomes and is prepared to act and communicate its strategy once the final rules are released. The proposed time-of-use rates are aimed more broadly at electrification and encouraging off-peak EV charging, rather than specifically targeting data centers.

Ryan Levine from Citigroup asked for more detail on the implications of the Connecticut Supreme Court's clarification of the 'prudency standard,' particularly how it could affect future investment decisions like the AMI rollout.

Answer

EVP, CFO & Treasurer John Moreira explained the key clarification was that regulators cannot apply hindsight in rate recovery; prudency must be judged based on facts known at the time of the decision. CEO Joseph Nolan added this improves his confidence in making large investments, as it reduces the risk that 'the rules could change down the road.'

Ryan Levine asked for more detail on the Connecticut Supreme Court's clarification of the prudency standard and its potential implications for future investment decisions, such as Advanced Metering Infrastructure (AMI).

Answer

John Moreira, CFO, explained the court's key finding was that regulators cannot apply hindsight; prudency must be judged based on facts known when an investment is made. Joseph Nolan, CEO, added that this ruling improves his confidence in making future capital investments like AMI, as it reduces the risk of rules changing after the fact.

Ryan Levine asked about the cash flow contribution from the Maximo robotic technology, sought clarification on whether the company's gas build-out focus was for data center backup or a broader effort, and inquired about the potential for industry consolidation.

Answer

CEO Andrés Gluski clarified that there is currently no cash flow from Maximo in the financial plan, as it's being used internally before potential commercialization around 2027. He explained that AES has continuously built gas plants (e.g., in Panama, Indiana) and is ready to do more if customers demand it. Gluski also agreed that policy uncertainty could create consolidation opportunities, noting AES has a history of acquiring smaller developers.

Ryan Levine of Citigroup Inc. asked for the timeline for the financial impact from the Colombia drought to normalize. He also inquired about AES's hedging strategy for its Southland gas assets in California, given the recent compression in spark spreads.

Answer

CFO Stephen Coughlin stated that conditions in Colombia are already improving, with Q4 expected to be higher than last year and a return to normal or better hydrology in 2025 due to La Nina. Regarding Southland, he explained that for 2025, the company has already hedged over 95% of the energy at values exceeding the PPA's put option, and the decision for 2026 will be made later based on market conditions.

Ryan Levine asked about the advantages of creating the new wildfire recovery compensation program for the Eaton fire and the logic of its timing during a critical legislative session. He also asked if this action could impact who ultimately receives proceeds from the wildfire fund, referencing discussions about subrogation claims.

Answer

President and CEO Pedro Pizarro asserted that the program's timing is unrelated to the legislative session and is driven by the desire to support the community, given the company has disclosed a probable loss. Executive VP & CFO Maria Riccardi added that expediting claims is beneficial for victims and is also good stewardship of the wildfire fund, as it can mitigate legal fees and cost escalation. Regarding subrogation, she stated that while the fund administrator (CEA) is monitoring the issue, she does not believe their intent is to put utilities at risk of accessing the fund.

Ryan Levine inquired about the advantages and timing of the new wildfire recovery compensation program, especially relative to the legislative session, and its potential impact on fund proceeds and subrogation claims.

Answer

President and CEO Pedro Pizarro stated the program is 'totally decoupled' from legislation and is designed to support the community and expedite claims, which can lower overall costs. EVP & CFO Maria Riccardi added it represents good stewardship of the wildfire fund. Regarding subrogation, she noted that while the fund administrator (CEA) is monitoring the issue, she does not believe their intent is to jeopardize utility access to the fund.

Ryan Levine from Citigroup asked if the company's approach to its wildfire mitigation plan has changed following the recent fires and questioned the potential timetable for accessing the wildfire fund.

Answer

Executive Steven Powell explained that while the core strategy of grid hardening remains, the plan is always evolving, with more undergrounding now planned for the burn-scarred areas. CFO Maria Rigatti noted it is premature to provide a timetable for accessing the fund, as the investigation and potential settlement processes must come first. She also reiterated that a $1 billion self-insurance layer must be used before drawing from the fund.

Ryan Levine inquired about the potential impact of the recent wildfires on future CapEx and O&M costs due to supply chain or labor constraints, and asked about the venue for determining investigation protocols.

Answer

Executive Steven Powell stated that the scale of the rebuild, while massive for the community, is not significant enough to meaningfully impact the company's overall annual plans or broader supply chains, noting the 800 miles of covered conductor installed last year is an order of magnitude larger. CEO Pedro Pizarro added that the rebuild will be a gradual process. He also clarified that the investigation protocols are being determined through a court process, with a judge overseeing discussions among the parties.

Ryan Levine asked about the driver for the updated nuclear decommissioning trust estimate disclosed in the 10-Q and its impact on the financing plan. He also requested more detail on the offsetting items to the 2025 cost of capital adjustment.

Answer

EVP and CFO Maria Rigatti explained the decommissioning trust update is a standard triennial process and has no impact on the financing plan. Regarding 2025 offsets, she cited better-than-assumed financing costs managed over the past four years and flexibility in the timing of O&M reinvestments, such as pulling forward inspection and maintenance projects.

Ryan Levine of Citigroup asked for details on the proposed interim study for a more holistic wildfire solution and how a decision on SB 410 capital funding would affect the financial plan.

Answer

CEO Patti Poppe described the holistic study as a partnership with the state to address the insurance market, building codes, and forest management. EVP & CFO Carolyn Burke explained that additional capital from SB 410 would not necessarily be additive to the plan but could be used to make the plan 'better' by prioritizing affordability projects or 'longer' by extending the 9% growth trajectory.

Ryan Levine of Citigroup asked for details on the proposed interim study for a holistic wildfire solution and how a recent proposed decision on SB 410 capital funding aligns with the company's financial plan.

Answer

CEO Patti Poppe described the holistic study as a partnership with the state to address insurance markets, building codes, and forest management. EVP & CFO Carolyn Burke explained that while the SB 410 decision allows for more funding, new capital would be used to make the plan 'better' by prioritizing affordability projects or 'longer' by extending the growth runway, not necessarily larger.

Ryan Levine asked about any progress in conversations to change the wildfire fund's attachment rate outside of legislation and sought the basis for the 90% completion assumption for certain data center projects.

Answer

CEO Patti Poppe noted that 'lots of ideas are on the table' for the wildfire fund but was hesitant to get ahead of policymakers. She clarified the 90% figure applies specifically to the 1.4 GW of projects in final engineering, which have already completed cluster studies and have signed agreements, providing a strong basis for their expected completion by 2030.

Ryan Levine from Citigroup inquired about BIP's interest in companies with both traditional and renewable energy assets and asked for comment on market speculation regarding AES.

Answer

CEO Sam Pollock explained that collaborations between Brookfield entities are common, allowing them to pursue complex energy deals. He highlighted the growing need to combine conventional fuels like gas with renewables to power data centers as a key opportunity. He declined to comment on market speculation regarding AES, citing the company's policy not to comment on transactions.

Ryan Levine from Citi asked about the potential impact of the Stargate announcement in Texas, whether DeepSeek uncertainty would slow development, and for clarification on contractual protections against lower-than-forecasted demand.

Answer

Roberto Marcogliese, Head of Telecom North America, stated that the impact from Stargate is limited as their Texas campus is fully leased long-term, and that development will not slow as capacity is largely sold out for the next 3-4 years. CEO Sam Pollock and Mr. Marcogliese both confirmed that risk is mitigated through take-or-pay contracts that explicitly do not include 'cancel for convenience' clauses for tenants.

Ryan Levine of Citigroup asked which U.S. regions show the most traction for gas generation and about the impact of the FERC ARRIS decision. He also inquired about the remaining technical milestones for the Duane Arnold nuclear facility.

Answer

John Ketchum, President, CEO & Chairman, responded that gas generation demand is broad-based across the U.S., though some states are more accommodating for new builds. He noted the MISO ARRIS decision could create opportunities but is subject to constraints like labor and equipment availability. For Duane Arnold, he confirmed that typical recommissioning work is progressing well and on track.

Ryan Levine asked about the current status and investor interest in the Centuri separation, the potential financial impact of the System Integrity Mechanism (SIM) on long-term EPS growth, how the shifting PGA balance might affect the company's need for ATM equity issuance, and if there were any changes to internal controls following the delay in the earnings announcement.

Answer

President and CEO Karen Haller confirmed the commitment to separating Centuri, noting that an S-3 filing is now possible, which will speed up market execution. She also stated the earnings delay was a Centuri issue and did not result in any changes to Southwest Gas's internal controls. Justin Brown, President of Southwest Gas Corporation, explained that guidance does not yet include impacts from the SIM, pending its final approval. CFO Rob Stefani clarified that while a faster PGA refund is possible with cash on hand, any need for ATM issuance is primarily dependent on the form and timing of the Centuri separation transaction.

Ryan Levine of Citigroup asked for the drivers behind the updated financing plan, which eliminated the 2024 equity issuance. He also questioned the Q3 O&M increase in the context of the full-year guidance for flat O&M per customer. Lastly, he inquired about the potential impact of the Arizona Corporation Commission election results on the regulatory environment and the ongoing rate case.

Answer

CFO Robert Stefani attributed the financing plan change to strong cash balances resulting from the full collection of the Purchased Gas Adjustment (PGA), obviating the need for equity this year. He clarified that O&M guidance is on a per-customer basis and that the company's optimization program supports its net income goals. Justin Brown, President of Southwest Gas Corporation, stated that the company does not expect the election results to impact the timing or outcome of its rate case, as the results were largely anticipated.

Ryan Levine asked how the Woodside FID decision impacts power availability for new data centers and inquired about the GDP sensitivity of Entergy's load and large customer conversations.

Answer

CFO Kimberly Fontan explained that traditional industrial customers and data centers are planned for separately; traditional customers are in a probability-weighted forecast, while data centers are treated as binary additions, so they are not mutually exclusive. CEO Drew Marsh added that large customers like data centers make long-term, multi-decade investment decisions that look past near-term macro effects like recessions or tariffs.

Ryan Levine from Citi inquired about the potential impact of new Texas wildfire legislation on Xcel's mitigation plans and whether the company had discussed various tax credit transferability scenarios with rating agencies.

Answer

CEO Robert Frenzel explained that they support the proposed Texas legislation, which includes state-wide pole inspection programs and an affirmative defense for utilities with approved wildfire plans, but do not see it leading to significant new investment beyond their existing System Resiliency Plan. CFO Brian Van Abel added that they have not had specific discussions with rating agencies on transferability scenarios, viewing the elimination of the provision as a low-likelihood event, and their annual meetings are in September.

Ryan Levine of Citi asked if human resources dedicated to the project have scaled recently, why the focus has shifted to the Gulf Coast over MISO, and whether a specific opportunity in Northern Indiana is being pursued.

Answer

CFO Akash Patel and COO Brian Allen confirmed that resources have scaled up across NET Power and its partners. CEO Daniel Rice explained the Gulf Coast is prioritized to achieve the lowest LCOE first, leveraging coastal access for modularization, though other areas like MISO remain options. He could not comment on the specific Indiana project but acknowledged the region's potential.

Ryan Levine of Citigroup asked about the company's strategy for pursuing direct PPAs with hyperscalers and sought clarification on what is included in the 'north of $100/MWh' pricing.

Answer

CEO Doron Blachar explained that Ormat is pursuing a dual strategy, negotiating with hyperscalers both directly and through utilities to maximize profitability. He clarified that the 'north of $100/MWh' PPA pricing includes all attributes of the renewable energy, such as RECs, for the full term of the contract. He suggested this comprehensive structure, along with geothermal's emission-free profile, may differentiate it from pricing cited by others.

Ryan Levine asked about potential policy support or tariff design changes in Alabama to attract data center growth, similar to recent changes in Georgia.

Answer

CEO Chris Womack stated he was not aware of any specific legislative efforts in Alabama for data centers beyond general economic development incentives. CFO Dan Tucker added that Alabama Power already has 'tremendous flexibility' in how it contracts with large load customers, and no tariff changes are considered necessary to attract and appropriately price for that growth.

Ryan Levine questioned the company's confidence level in its load forecast and asked about its exposure to potential changes in federal tax policy and tariffs that could affect its generation build-out.

Answer

President and CEO William Fehrman expressed high confidence in the load forecast, noting it is backed by signed customer contracts. EVP and CFO Chuck Zebula stated that the company would need time to evaluate the potential impacts of any changes in federal policy after the election.

Ryan Levine questioned the confidence level in the load forecast and asked about the company's exposure to potential changes in federal tax rates and equipment tariffs.

Answer

CEO William Fehrman expressed high confidence in the load forecast, noting it is backed by signed customer contracts. CFO Charles Zebula deferred comment on potential tax and tariff impacts, stating they would be evaluated as future administration policies become clearer.