Shahriar Pourreza

Shahriar Pourreza of Guggenheim Partners asked for details on transmission capacity within the ComEd and PECO zones and inquired about the realistic timeline for regulatory clarity on behind-the-meter (BTM) tariffs from FERC, especially given potential leadership changes.

Answer

President and CEO Joe Dominguez highlighted that Constellation operates in markets with robust transmission, noting the ComEd zone has significant export capabilities that are expanding with new projects. Regarding the FERC timeline, Dominguez acknowledged there is "not a quick fix" but stated that many parties are interested in moving forward. He believes the issue of powering AI is of critical national importance that transcends politics and expects FERC and other bodies will have to clarify rules quickly as the energy around the issue intensifies.

Shahriar Pourreza asked if the FERC technical conference on data center colocation would prolong the timeline for a deal announcement and inquired about Constellation's view on PJM utilities potentially rate-basing peaker plants.

Answer

CEO Joseph Dominguez stated that while the FERC process could affect timing, deals are not contingent on its conclusion, as contracts can manage potential outcomes. He emphasized that the economic viability of projects remains strong. Regarding PJM, he expressed confidence in market-based solutions, noting that key states prefer competition over re-regulation. EVP Kathleen Barron added that the FERC conference is a constructive, educational forum and that the narrow scope of the related deficiency letter is a positive sign.

Shahriar Pourreza with Wells Fargo inquired about the likelihood and timing of NRG Energy announcing a data center agreement involving new development through its GE Vernova-KeyWatt partnership in 2026. He also asked for more details on how NRG's announced data center deals and their margins compare to those of peers, especially given generation linkages.

Answer

Larry Coben, Chair, President, and CEO, confirmed confidence in announcing such a deal in 2026 but noted the complexity makes specific timing difficult. Regarding margins, Mr. Coben highlighted that NRG's deals, similar to previous announcements, achieve premium margins due to factors like land, commercial acumen, and the ability to flexibly meet customer needs, as detailed in the presentation's appendix.

Shar Pourreza asked about the likelihood and timing of a 2026 data center agreement involving new development through the GEV-Kiewit partnership, and how recently announced data center deals compare to peers regarding margins and generation linkages.

Answer

Larry Coben, Chair, President, and CEO of NRG Energy, confirmed a 2026 data center agreement with new development is expected, though specific timing is hard to predict. He noted that current deals offer premium margins, similar to previous announcements, driven by factors like land, commercial acumen, and flexible customer solutions, with further details in the appendix.

Shahriar Pourreza of Guggenheim Partners inquired about the strategic shift that led to the major acquisition in Eastern markets, whether any large customer deals are tied to the new assets, and how the company plans to unlock the stated $500 million in collateral efficiencies.

Answer

Chair, President and CEO Lawrence Coben stated that positive developments in PJM, including data center demand and capacity market tightening, provided comfort, noting the deal is highly accretive even without significant price increases. He confirmed no customer deals are currently tied to the assets. CFO Bruce Chung added that collateral efficiencies will be realized internally by matching the new generation with the existing C&I book.

Shahriar Pourreza sought confirmation on whether the 5.4 GW of new generation capacity planned by 2032 would be fully contracted or include merchant exposure. He also asked about the funding strategy for this substantial capital investment.

Answer

Lawrence Coben, Chair, President and CEO, affirmed that the intention is for the 'vast majority' of the new capacity to be contracted, aligning with NRG's strategy to avoid significant merchant risk. He explained that the projects are expected to be funded through a combination of internally generated cash flow and leveraged contracts with partners, while also remaining open to accretive partner capital.

Shahriar Pourreza of Guggenheim Partners inquired about the timeline and process for monetizing NRG's development sites for hyperscalers, asking if an update is still planned for the fourth-quarter call and how this optionality will be reflected in financial guidance. He also asked for details on the variability and cost to achieve the new five-year organic growth targets.

Answer

Chair and CEO Lawrence Coben confirmed an update on the development sites is scheduled for the Q4 call, noting significant interest in both PJM and Texas. He explained that value from these deals might be incorporated into raised guidance rather than specific announcements due to potential confidentiality. Regarding the growth plan, Coben expressed high confidence in achieving the $750 million annualized EBITDA target, which requires a total investment of $1.6 billion, and stated the company sees upside potential across all initiatives.

Shar Pourreza inquired about the current status of tax leakage related to the Sempra Infrastructure Partners (SIP) transaction and sought clarification on the components of Oncor's 30% capital expenditure increase, specifically how much is allocated to 765 KV projects versus base system needs, and its relation to the previously identified $12 billion upside.

Answer

Jeff Martin, Chairman and CEO of Sempra, confirmed that 20% remains a good guiding number for tax leakage on the SIP transaction, acknowledging the complexity of international implications. Regarding Oncor's CapEx, he clarified that the 30% increase is primarily driven by the accelerated Permian plan, now due by 2030, and that Oncor's total capital opportunity through 2030, including a similar $12 billion in additional upside, is projected to be $55-$60 billion.

Shar Pourreza asked for an update on the estimated tax leakage for the Sempra Infrastructure Partners (SIP) transaction, specifically regarding the 20% assumption. He also sought clarification on the components of Oncor's 30% capital expenditure increase and how it compares to the previously identified $12 billion upside.

Answer

Jeff Martin (Chairman and CEO, Sempra) confirmed that 20% remains a good estimate for tax leakage, acknowledging the complexity of international and Mexican assets. He explained that Oncor's 30% CapEx increase is primarily driven by the accelerated Permian plan, and with additional upside, Oncor's total capital opportunity through 2030 is estimated at $55 billion-$60 billion.

Shahriar Pourreza asked for a reconciliation of the revised 2025 EPS guidance, questioning the impacts from California rate base growth, Texas cost recovery, and Sempra Infrastructure's natural gas price assumptions. He also inquired if the new 7-9% long-term growth target implies that Sempra can exceed a 9% CAGR within the current 5-year plan.

Answer

CEO Jeffery Martin and CFO Karen Sedgwick explained the 2025 guidance revision was driven by several factors, including a lower-than-expected California GRC final decision, the removal of the FERC CAISO adder, the strategic decision for Oncor to file an early base rate review, the previously announced delay of ECA LNG Phase 1, and higher parent-level interest expense. Martin confirmed that Sempra expects to achieve a CAGR of 9% or higher within the 2025-2029 plan, exceeding the long-term guidance range.

Shahriar Pourreza followed up on the equity financing, asking if the $3 billion ATM would fully fund anticipated CapEx increases or if more could be needed, especially for Sempra Infrastructure. He also questioned if the California GRC proposed decision presents a headwind and could lead to reduced CapEx at the California utilities.

Answer

Jeffery Martin, Chairman and Chief Executive Officer, affirmed that the company feels 'very comfortable' with the $3 billion ATM size. Regarding the GRC, he stated that while some aspects are constructive, there are opportunities to improve the decision on safety and reliability, such as wildfire mitigation and integrity management. He emphasized a collaborative approach to reach a constructive outcome without suggesting a CapEx pullback.

Shahriar Pourreza asked about the impact of the ECA LNG project's commercial operations delay on 2025 earnings guidance and whether Sempra could mitigate the timing drag. He also inquired about the likelihood of a timely California General Rate Case (GRC) decision in 2024 and if a proposed decision would be sufficient to firm up 2025 financial plans.

Answer

Chairman and CEO Jeff Martin acknowledged disappointment with the ECA schedule change but reaffirmed that the project remains on track to meet its mid-teen equity return targets and that the company is reconfirming its 2024 and 2025 EPS guidance ranges. EVP and CFO Karen Sedgwick added that mitigation levers include asset optimization and incremental growth opportunities at Sempra Texas. Regarding the GRC, Mr. Martin expressed high confidence in a final decision by year-end, noting the retroactive nature of the rates, and stated the company will be able to provide a strong guidance update on its Q4 call.

Shar Pourreza asked about the Kentucky CPCN case, specifically the rejection of tracking mechanisms for Mill Creek 2's stay-open costs and Mill Creek 6, inquiring about missing information and near-term EPS impact. He also questioned the progress of resource adequacy legislation in Pennsylvania and the potential for a middle ground with IPPs.

Answer

President and CEO Vince Sorgi clarified that there is no near-term EPS impact, noting AFUDC treatment for Mill Creek 6 and that Mill Creek 2 costs are being addressed in the pending rate case. He suggested the Commission likely preferred rate mechanisms to be handled in a rate proceeding rather than a CPCN. Regarding Pennsylvania legislation, Mr. Sorgi mentioned the state budget impasse and Reggie as gating issues, but highlighted legislative support for new generation and PPL's openness to solutions with IPPs to incentivize new generation and stabilize capacity prices.

Shar Pourreza asked about the Kentucky CPCN case, specifically the rejection of tracking mechanisms for Mill Creek 2's stay-open costs and Mill Creek 6, inquiring about missing information and any near-term EPS impact. He also asked about the resource adequacy topic in Pennsylvania, the two bills in the House and Senate, and the possibility of wires companies striking a middle ground with IPPs on long-term resource adequacy agreements versus rate-basing generation.

Answer

President and CEO Vince Sorgi stated there was no near-term EPS concern, noting Mill Creek 6 has AFUDC treatment until its 2031 in-service date. For Mill Creek 2, costs (incremental O&M of $30 million and CapEx of $40 million until 2030) are being addressed in current rate case hearings, as the Commission likely preferred rate proceedings for such mechanisms. Regarding Pennsylvania legislation, Mr. Sorgi explained that movement is tied to the state budget and Reggie resolution. He confirmed legislative support for new generation due to data center load and capacity auction cost increases, expressing openness to solutions where utilities and IPPs agree to incentivize new generation and stabilize capacity prices.

Shahriar Pourreza inquired about the proposed resource adequacy legislation in Pennsylvania, asking about the advantages of regulated utilities building generation versus IPPs and whether the goal is direct ownership or incentivizing others through PPAs. He also asked about PPL's equity issuance strategy, questioning if a block trade is being considered over the current ATM program.

Answer

CEO Vincent Sorgi explained that the regulated utility model offers more stability and predictability for power prices on long-term assets compared to the competitive market's short-term signals. He affirmed PPL is ready and willing to build and own generation in Pennsylvania. CFO Joe Bergstein stated that while the ATM program is the base case for equity needs due to its efficiency, the company remains opportunistic and will assess all options to achieve the most efficient cost of capital.

Shahriar Pourreza inquired about the resource adequacy challenges in Pennsylvania, the implications of the delayed PJM auction, potential legislative solutions, and the capital requirements for data center growth in Kentucky.

Answer

President and CEO Vincent Sorgi explained that the auction delay reinforces the need for a state-level legislative solution in Pennsylvania, which he hopes will proceed in early 2025. He noted that direct utility investment in generation would be the most impactful solution. For Kentucky, he clarified that capital needs are primarily for generation, not transmission, as new power plants can be sited opportunistically near existing infrastructure, unlike in Pennsylvania.

Shar Pourreza inquired about the Yankee Gas regulatory outcome, specifically the motion to adopt an alternative resolution and its embedded assumptions. He also asked about the Massachusetts DPU's denial of the NSTAR Gas PBR adjustment, the reasons behind it, and the implications for a potential rate case filing amidst DPU scrutiny.

Answer

Chairman, President, and CEO Joe Nolan noted that the commission's order for Yankee Gas was just released and requires review, promising more details later. Executive Vice President, Chief Financial Officer, and Treasurer John Moreira added that the decision appears in line with their plan and better than the draft. Regarding NSTAR Gas, Mr. Moreira explained the $160 million component, including a GSEP roll-in, the approved PBR adjustment, and the denied rate base roll-in. He confirmed filing a motion for reconsideration and intent to file a general rate case, expressing hope for collaboration with new DPU commissioners.

Shar Pourreza inquired about the outcome of the Yankee Gas alternative resolution, asking what was embedded in the plan and if the company was conservative in its embedding. He also asked for an update on the NSTAR Gas PBR adjustment, specifically why the Massachusetts DPU denied it, if there's an opportunity for future recovery, and if a rate case filing is imminent, considering the governor's warnings on high rates.

Answer

CEO Joe Nolan stated that the commission's order for Yankee Gas was just released and the company needed to review the details, promising more answers later. CFO John Moreira added that the decision appeared in line with their plan and slightly better than the draft decision. Regarding NSTAR Gas, Mr. Moreira explained that the DPU denied a $45 million rate base roll-in, part of a $160 million component, due to performance metrics related to subjective opinion surveys. He confirmed that Eversource filed a motion for reconsideration and an intent to file a general rate case, expressing hope for collaboration with the new DPU commissioners.

Shahriar Pourreza inquired about the legislative situation in Connecticut regarding the potential expansion of the Public Utilities Regulatory Authority (PURA) and the path for broader reforms. He also asked for clarification on the FFO to debt target for 2025-2029 and the assumptions for Connecticut storm cost recovery.

Answer

Chairman, President and CEO Joseph Nolan stated that Eversource is indifferent on the number of PURA commissioners, emphasizing the need for a fair and transparent process. Executive VP and CFO John Moreira clarified that the financing plan keeps the FFO to debt ratio 'well above the Moody's downgrade threshold of 13%' and that a significant portion of storm cost recoveries are factored into the long-term forecast.

Shahriar Pourreza inquired about Eversource's involvement in regional clean energy discussions concerning the Millstone nuclear plant and sought clarity on the company's financial obligations for the Revolution Wind project following Orsted's recent impairment.

Answer

Chairman, President and CEO Joseph Nolan confirmed active, high-level discussions among New England states regarding clean energy assets but was not privy to specific pricing details. EVP, CFO and Treasurer John Moreira stated that Eversource's previously announced loss on the offshore wind divestiture already accounted for the known construction issues with Revolution Wind.

Shar Pourreza asked about Exelon's broad thoughts on Maryland's resource adequacy RFP, including process, timing, and views on competing options. He also inquired about discussions in Pennsylvania regarding resource adequacy legislation, the potential for a middle ground with IPPs, and the possibility of striking a deal.

Answer

Calvin Butler, President and CEO of Exelon, commended Maryland's RFP but noted the disclosed capacity fell short of the state's goal, emphasizing the need for solutions to control energy costs. Mike Innocenzo, COO of Exelon, discussed ongoing legislative discussions in Pennsylvania, the state's role as an energy exporter, and the PUC's third-party study, anticipating more activity in the spring.

Shar Pourreza inquired about Exelon's perspective on Maryland's resource adequacy RFP, including the process, timing, and competing solutions, and then shifted to Pennsylvania's legislative efforts on resource adequacy, asking about the potential for a middle ground between wires companies and IPPs on long-term agreements.

Answer

Calvin Butler, President and CEO of Exelon, commended Maryland's RFP but noted disclosed capacity fell short, emphasizing the focus on affordability and reliability. Mike Innocenzo, COO of Exelon, and Calvin Butler discussed Pennsylvania's legislative efforts, highlighting ongoing discussions with the governor's office and the PUC's third-party study, anticipating more activity in the spring.

Shahriar Pourreza of Guggenheim Partners inquired about the status of discussions regarding the Carbon Mitigation Credit (CMC) roll-off in Illinois and asked about any progress on Artificial Island, including potential bill impacts and connection speed for a data center.

Answer

CFO Jeanne Jones explained that Illinois is addressing the CMC roll-off as part of broader state-level discussions on energy security, similar to efforts in their other jurisdictions. Regarding Artificial Island, Jones reiterated their position that any colocation must be treated as network load with appropriate cost allocation. Executive Michael Innocenzo added that for any large connection, they work creatively with customers to meet their timelines, depending on the specific load and location, and are almost always able to find a solution.

Shahriar Pourreza of Guggenheim Partners asked about the drivers for Exelon's 205 filings on network load treatment, the status of plans for the CMC roll-off in Illinois, and the company's alignment with peers on solving resource adequacy issues, particularly regarding regulated generation.

Answer

CEO Calvin Butler and EVP Colette Honorable clarified the 205 filings were made to proactively seek clarity from FERC on cost responsibility for co-located load, ensuring policy isn't set by one-off contracts. On Illinois, CFO Jeanne Jones noted that conversations are starting early to find solutions for reliable generation post-2027. Regarding resource adequacy, Mr. Butler stated there is alignment with peers on the core problem of reliability, but Exelon believes multiple solutions exist beyond regulated generation and will work with stakeholders on jurisdiction-specific options.

Shar Pourreza from Wells Fargo inquired about the quality of the data center customer, specifically if it's a hyperscaler or co-locator, and how the broader 1-3 GW pipeline's counterparty quality might impact the company's compound annual growth rate (CAGR). He also asked about the credit downgrade thresholds in light of the new integrated business model.

Answer

CEO Lloyd Yates confirmed the customer is a large investment-grade data center client, emphasizing the Genco model as a blueprint for future transactions. CFO Shawn Anderson stated that active engagement with rating agencies and thoughtful risk management provisions mean no change in downgrade thresholds is expected, with adequate cushion already in place.

Shar Pourreza from Wells Fargo inquired about the credit quality of the data center customer, the broader pipeline for 1-3 gigawatts in negotiations, and the potential impact of counterparty quality on the company's compound annual growth rate (CAGR).

Answer

Lloyd Yates, CEO and President, confirmed the customer is a large investment-grade data center client served via NIPSCO's transmission network. He emphasized the GenCo model as a blueprint for future transactions. Shawn Anderson, EVP and CFO, added that thoughtful risk management provisions in the contract provide protection similar to the existing base business, and the current FFO to debt guidance of 14-16% remains unchanged.

Shahriar Pourreza of Guggenheim Partners inquired about the NIPSCO Genco filing, asking if a customer deal could be announced before the regulatory outcome, how PPA pricing would be structured, and if the $2.2 billion upside plan includes data center investments.

Answer

Executive Michael Luhrs clarified that a special contract with a customer could be announced before the Genco structure is finalized, as it allows flexibility to meet customer needs with PPAs between Genco and NIPSCO subject to commission approval. CEO Lloyd Yates confirmed that the $2.2 billion upside plan is for regulated utility projects and any data center capital would be incremental.

Shahriar Pourreza followed up on data center timing, asking for more precision on when a deal could be signed in 2025, and questioned the financing strategy for incremental CapEx, wondering if the ATM program is sufficient or if other avenues like minority sales would be considered.

Answer

CEO Lloyd Yates declined to narrow the 2025 timeline for a data center deal but affirmed his optimism and stated that conversations are progressing very well. EVP and CFO Shawn Anderson addressed financing, stating the most efficient source is outperformance on cash from operations, which will be the first avenue. He noted the successful use of junior subordinated notes in 2024 provides another option not currently required in the base plan. Anderson confirmed he is absolutely comfortable that the current ATM, internal cash flow, and junior subordinated notes are sufficient to fund higher CapEx without needing additional equity.

Shar Pourreza inquired about the SB 254 Phase Two process, specifically viable options for eliminating Edison International's wildfire liability, anticipated data points for the legislative session, and how the process will be tracked. He also asked about the company's capital allocation strategy for 2026, including potential buybacks or increased dividends, given the binary nature of Phase Two outcomes.

Answer

President and CEO Pedro Pizarro detailed the California Earthquake Authority's (CEA) public process for SB 254 Phase Two, with deadlines for abstracts and papers, and Governor Newsom's executive order directing agency contributions. He emphasized the goal of equitably allocating catastrophe costs, noting the current system is unsustainable. Regarding capital allocation, Pedro Pizarro stressed the focus on customer costs and maintaining credit ratings. EVP and CFO Maria Rigatti added that Edison International has no equity issuances in its forecast, is managing holding company hybrids efficiently, and maintains a long-standing practice of increasing dividends within a 45%-55% payout ratio, positioning it differently from peers.

Shar Pourreza inquired about viable options for eliminating Edison International's wildfire liability in Phase 2 of SB 254, and how the public/private process for tracking legislative developments will unfold. He also asked about the company's capital allocation strategy, including potential buybacks or increased dividends, given the binary nature of 2026 outcomes from Phase 2.

Answer

Pedro Pizarro (President and CEO, Edison International) highlighted the California Earthquake Authority's (CEA) public process for abstract and paper submissions (deadlines Nov 3, Dec 12) and planned open discussions, noting Governor Newsom's executive order. He stressed the goal is to reform how the state addresses catastrophic risk, moving beyond utilities as insurers. Maria Rigatti (EVP and CFO, Edison International) stated the company maintains a measured, efficient capitalization approach, with no equity issuances in the forecast, and aims for cost-efficient hybrid refinancing while targeting a 45-55% dividend payout ratio.

An analyst on behalf of Shahriar Pourreza at Guggenheim Partners questioned the impact of the GRC rate case delay on capital execution and asked how incremental CapEx for programs like ERP and AMI would be financed.

Answer

CFO Maria Rigatti explained that the company can continue executing its capital plan despite the GRC delay by adjusting spending in the later years of the four-year cycle. For incremental CapEx, she stated that financing would align with the authorized capital structure and that she does not foresee a need for capital structure waivers, as the company has significant financing capacity.

Shahriar Pourreza asked if the balance sheet flexibility from the TKM settlement and memo account recovery could allow for retiring equity-like instruments, and sought clarification on the drivers behind the 2025 operational variance offset to the ROE change.

Answer

EVP and CFO Maria Rigatti explained that the company would first consider reducing the planned $100 million annual equity issuance and would evaluate retiring hybrids closer to their reset dates. She noted the operational variance benefits come from a combination of favorable financing costs and flexibility in the timing of O&M reinvestment. President and CEO Pedro Pizarro reiterated the commitment to meeting financial targets.

Asked about Oncor's capital upside from recent CPCN filings and the 765 kV standard, incremental investment opportunities in California outside the GRC, and whether the SIP sale process could be shorter than 12-18 months.

Answer

The recent regulatory decisions in Texas firm up the need for the $12B in incremental Oncor CapEx and may require even more. In California, there are multiple investment opportunities outside the GRC, including compressor station modernization, electrification, and battery storage. A constructive ROFO indication in the SIP process would shorten the transaction timeline.

Shahriar Pourreza inquired about the status of Vistra's data center deal conversations, specifically whether the company is waiting for colocation rule clarity or could proceed with other structures like front-of-the-meter PPAs. He also asked if the finalization of Texas Senate Bill 6 (SB6) is a key catalyst for unlocking a deal at Comanche Peak.

Answer

President and CEO James Burke explained that deal structures are dictated by unique customer needs and that Vistra's team remains highly engaged in discussions. He noted that from Vistra's perspective, colocation is still viewed as a speed advantage and it's too early to say pricing is harmonizing between different deal types. Burke stated that regulatory clarity from SB6 would unlock numerous deals across Texas, not just one, by making long-term contracting more straightforward.

Shahriar Pourreza asked about Vistra's investment plans for new gas or storage in PJM following the recent capacity auction, the resilience of the 2026 outlook amidst falling power curves, and whether the FERC Technical Conference has slowed data center colocation discussions.

Answer

James Burke, President and CEO, stated that while the PJM auction result is a positive signal for investment, it's still early and one data point. He affirmed confidence in the 2026 outlook, noting that hedging and portfolio diversity provide resilience against softer power curves, and the PJM results position them strongly above the $6 billion+ figure. He also confirmed that data center customer conversations have not slowed, emphasizing the complexity and long-term nature of these deals.

Shahriar Pourreza inquired about the timeline for disclosing incremental CapEx opportunities beyond the current plan and when Duke might provide more specific credit metric targets.

Answer

CEO Harry Sideris noted the capital plan was just updated in February. CFO Brian Savoy added that while major updates are typically annual, they would inform investors if a catalyst emerged. Regarding credit metrics, Savoy indicated that a more defined target range could be provided in the next update cycle, possibly in February.

Shahriar Pourreza asked for clarification on the 'higher in the range' commentary for the EPS growth rate, a more specific target for credit metrics, and the impact of AI efficiency gains on data center load growth.

Answer

CFO Brian Savoy confirmed the company is alluding to earning in the top half of its 5-7% EPS growth range, particularly in 2027-2029, and will provide more specific credit metric targets as the plan progresses. President Harry Sideris added that hyperscaler customers are proceeding 'full speed ahead' with projects, as efficiency gains may increase overall AI demand, and that near-term growth is driven by cloud computing before generative AI load accelerates later in the plan.

Shahriar Pourreza from Guggenheim Securities inquired about Duke Energy's credit position following recent hurricanes, the specific FFO impact from the storms, the status of the tax credit monetization program, and the potential for an upward revision to the long-term load growth forecast.

Answer

CFO Brian Savoy explained that while storms would temporarily impact credit in 2024, FFO to debt is projected to be in the "high 13s" and recover to 14% in 2025. He noted that without the storms, the metric would have been 14% or higher. Savoy also confirmed the tax credit monetization is on track for the upper end of its $300-$500 million target for the year. Regarding load growth, both Savoy and CEO Lynn Good indicated that while the 1.5%-2% CAGR is maintained for now, it is trending toward the high end and is expected to be revised upward in February, with acceleration in 2027-2028 due to significant economic development projects.

Shahriar Pourreza inquired about the progress of the West Virginia rate case, specifically regarding settlement talks and the securitization option, and asked about conversations with hyperscalers following Microsoft's decision to delay projects in Ohio.

Answer

William Fehrman, President and CEO, expressed optimism about the West Virginia case, highlighting that securitization could reduce the bill impact for customers by nearly 75%. He noted that while the decision rests with the commission, discussions are ongoing. Regarding hyperscalers, Fehrman stated that overall demand remains robust, with a backlog of over 500 customers requesting to connect 180 gigawatts, ensuring that any single customer's delay does not impact their strong growth outlook and capital plan.

Shahriar Pourreza inquired about AEP's balance sheet strength, the sustainability of its FFO improvement targets, and the specific methods planned for raising the remaining $2.5 billion in equity. He also asked for details on the 20-gigawatt load growth, particularly the portion in Ohio and the status of dual tariff settlements.

Answer

Trevor Mihalik, EVP and CFO, affirmed the 14% to 15% FFO to debt target, noting a potential near-term dip due to a Moody's calculation change but remaining above the 13% downgrade threshold. He explained the $2.8 billion transmission sale significantly reduces the equity need, with the remainder to be addressed via securitization, hybrids, and judicious equity issuance. President and CEO William Fehrman added that significant load growth is occurring in Ohio, Texas, and Indiana, and emphasized that new tariffs are designed to ensure incremental costs are borne by the new customers.

Shahriar Pourreza asked about potential tailwinds for the 2025 guidance, whether the 20 gigawatts of new load could be further accretive, and the specific sources and timing for the company's $5.35 billion equity need.

Answer

President and CEO William Fehrman highlighted ongoing transformation and cost-reduction initiatives as potential upsides, noting that while the 20 GW load is in the plan, there's an additional $10 billion in uncommitted infrastructure opportunities. EVP and CFO Chuck Zebula added that 2025 funding needs would be met through a combination of equity, equity-like products, a lower dividend payout ratio over time, and potential asset monetization.

Shahriar Pourreza asked about potential tailwinds for the 2025 guidance, the inclusion of the 20 GW data center load in forecasts, and the sources and timing for the company's $5.35 billion equity need.

Answer

CEO William Fehrman confirmed ongoing cost-reduction efforts and noted that while the 20 GW load is largely in the plan, there is upside potential. CFO Charles Zebula detailed that funding will come from a mix of equity-like products, a decoupled dividend growth rate, tax credit monetization, and potential asset sales, with equity support required in 2025.

Shahriar Pourreza asked about the 2025 financing plan's execution after the recent hybrid issuance and whether it could enable a CapEx pull-forward. He also inquired about evolving energy supply needs for the next IRP cycle and if storm cost offsets would be recurring.

Answer

EVP and CFO Rejji Hayes confirmed about $700 million in financing remains at the parent for the year, with a focus on executing the current $3.7 billion utility CapEx plan, not pull-aheads. President and CEO Garrick Rochow stated that future capacity needs, including natural gas and carbon capture, will be detailed in the 2026 IRP. Hayes clarified that while some cost offsets are one-time, the CE Way operating system consistently delivers recurring savings, which are expected to continue.

Shahriar Pourreza inquired about Michigan's growing appeal for data centers, CMS Energy's grid capacity to onboard new large customers, and whether a new tariff structure is needed. He also asked for takeaways from recent storm and resiliency audits and their impact on the distribution plan.

Answer

President and CEO Garrick Rochow confirmed that CMS Energy's service territory has the necessary electric infrastructure to serve new data centers and highlighted the attractiveness of Michigan's clean energy law. He noted that a tariff filing has already been approved to better reflect the cost to serve data centers, with further work on rate structures expected over the next 6-12 months. Regarding storm audits, Rochow stated the findings are supportive of the company's $7 billion reliability road map and will be incorporated to enhance proactive investments, which are more cost-effective than reactive repairs.

Shahriar Pourreza asked about the potential for upside from demand trends in the upcoming renewable energy plan (REP) filing and the likelihood of a settlement in the current electric rate case.

Answer

President and CEO Garrick Rochow stated that strong economic growth is driving higher demand than forecasted in the 2021 IRP, creating upside capital opportunities that will be reflected in the REP and future financial plans. Regarding the rate case, he noted that while the company is always open to settlement, it is confident in its filing, which is focused on reliability investments.

Shahriar Pourreza of Guggenheim Partners inquired about the timeline for finalizing agreements for 1.6 gigawatts of new load, when Evergy might update its growth rate, and the next steps for the capital structure issue in the Kansas General Rate Case (GRC).

Answer

David Campbell, Chairman and CEO, stated that customer announcements are expected later in the year, and Evergy will update its guidance in tandem with those announcements. Regarding the Kansas GRC, Campbell explained the commission's decision on capital structure was procedural, moving the issue into the main rate case where Evergy will pursue a constructive settlement.

Shahriar Pourreza of Guggenheim Partners inquired about the potential earnings sensitivity from new large load customers relative to the new 4-6% growth target, and asked about the upcoming Kansas capital structure workshop's influence on the 2025 rate case.

Answer

Chairman and CEO David Campbell stated that the current plan, which includes only the three announced customers, provides high confidence in achieving the top half of the 4-6% range. He clarified that landing additional large loads would represent upside opportunity and "real tailwinds." Regarding the workshop, Campbell described it as a non-decisional dialogue to establish a stable framework for capital structure, with outcomes expected to influence the 2025 Kansas rate case.

Shahriar Pourreza asked about the key drivers for the 2025 guidance reset, questioning the impact of interest rates, O&M pressures, and the potential read-through from the Ohio audit report to the ESP VI filing.

Answer

Executive Brian Tierney explained that the primary driver for the O&M change was the committed spending in the Pennsylvania rate case settlement, while O&M is being held flat elsewhere. He stated the management team would be disappointed not to reach the upper end of the 6-8% growth range. Regarding the Ohio audit, he noted the proposed 9.63% ROE is consistent with peers and the company will file its response within 30 days, maintaining its position on capital structure and a higher ROE.

Shahriar Pourreza inquired about the viability of significant new data center load requests, whether the associated spending is incremental, and the financial and procedural impacts of withdrawing the Ohio ESP V filing.

Answer

Executive Brian Tierney confirmed the large load requests, primarily from data centers, are credible and that FirstEnergy has available transmission capacity from former industrial sites. He characterized the ESP V withdrawal as a strategic risk-reduction measure to better align regulatory timelines, not a financially significant event, and noted it simplifies the general rate case.

An associate for Shahriar Pourreza inquired about Avista's confidence in its 2025 guidance and 4-6% long-term growth rate, given past challenges. He also asked for an update on the Idaho rate case proceedings and any key upcoming dates.

Answer

CFO Kevin Christie expressed confidence in achieving the midpoint of the 2025 guidance ($2.62), noting the company has proactively included an expected drag from the Energy Recovery Mechanism (ERM) and set the contribution from 'other businesses' to zero. He affirmed that 2025 serves as a new, solid base year for the 4-6% long-term growth target. Regarding the Idaho rate case, Christie stated it is in the early stages, with a potential technical hearing in late July, but the company is actively working towards a settlement, a strategy that has been successful in the past.

Shahriar Pourreza asked for more color on how the new Wisconsin data center and updated CapEx plan will impact Alliant's position within its 5-7% EPS growth target. He also inquired if the new CapEx would be purely additive or displace other spending, and asked for an update on the timing for Phase II of the Big Cedar data center project in Iowa.

Answer

President and CEO Lisa Barton stated that the Q1 2025 earnings release will provide a clearer line of sight on the growth outlook, incorporating the full 1.9 GW from Cedar Rapids and the new Wisconsin facility. She indicated a current capital allocation focus leaning more towards generation and less on distribution. Barton also clarified that Phase II in Iowa represents the 800 MW portion of the 1.9 GW total, involving two separate data center customers.

Shahriar Pourreza questioned if the company would consider an equity contribution to a potential wildfire fund, asked about the expected earnings trajectory within the 5-7% long-term growth range, and inquired about the timing for implementing a holding company structure.

Answer

Senior Vice President of Finance and CFO Joseph Trpik confirmed openness to an equity contribution for a wildfire fund, provided liability and conduct standards are addressed. He noted earnings would be at the lower end of the 5-7% range in years without major RFP investments and that the 2025 guidance does not assume recovery for the Seaside project. He also indicated a holding company action is likely this year.

Shahriar Pourreza asked for an update on preliminary discussions around wildfire legislation, the durability of industrial load growth given semiconductor industry dynamics, and whether planned transmission CapEx will be sufficient to relieve congestion for 2030 targets.

Answer

President & CEO Maria Pope stated that PGE is actively engaged with state and national partners and expects multiple wildfire-related bills in the next legislative session. She expressed confidence in the durability of industrial growth, citing a diverse ecosystem beyond just one company. Pope also confirmed that more work is needed to relieve transmission congestion, highlighting key partnerships and projects.

Shahriar Pourreza inquired about the timing of a future Analyst Day, whether the significant load growth upside would be included in the updated capital plan, and the company's financing strategy, including ATM use and asset optimization.

Answer

CEO Jason Wells confirmed a commitment to a new 10-year capital plan update in 2024, likely after a May regulatory decision on transmission voltage standards. CFO Chris Foster stated that 2025 equity needs are covered and future needs will be met via the ATM, while also consistently evaluating asset optimization as a funding source. Wells added that a comprehensive financing update will be provided later in the year.

Shahriar Pourreza questioned the confidence in the 2025 guidance given the Houston rate case withdrawal and other variables, and also asked about the increased equity plan, including the potential for pre-funding or asset sales.

Answer

CEO Jason Wells expressed high confidence in the 2025 guidance, citing an 11% rate base CAGR over the last two years and new rates in three other jurisdictions as key drivers. He stated the Houston rate case timing is not a major factor for 2025. Regarding the equity plan, Wells highlighted a track record of efficient capital raising and noted that $3 billion in upcoming cash inflows from divestitures and securitizations provides significant flexibility, suggesting pre-funding is not the immediate strategy.

Shahriar Pourreza inquired about the primary drivers of the $3 billion capital expenditure increase and its connection to load growth, and also asked for specifics on Entergy's 'new nuclear' strategy, including the types of reactors being considered and the status of federal-level discussions.

Answer

CFO Kimberly Fontan confirmed the CapEx increase is predominantly for generation and distribution to support growth, which is factored into the raised outlook. Chair and CEO Andrew Marsh elaborated that Entergy is exploring all forms of new nuclear, from large-scale reactors to SMRs, with a focus on risk profile and value. He noted that while conversations are mainly at the state level, federal interest is growing.

Shahriar Pourreza asked for details on the significant 2026 EPS growth inflection, whether the new Louisiana customer's investment is fully covered by its rate agreement, and the capacity implications of transferring the SERI asset from Louisiana to Mississippi.

Answer

Executive Kimberly Fontan confirmed the growth is supported by capital for a new customer with a signed ESA, and investments are recoverable under existing mechanisms like the FRP. Executive Andrew Marsh added the new customer covers its marginal costs, benefiting all customers. They both affirmed the ~200 MW capacity transfer is manageable within Louisiana's portfolio.

Shahriar Pourreza asked about Ameren's ability to exceed its 6-8% EPS growth guidance given the new 9.2% rate base CAGR and significant sales growth projections, and also inquired about the capacity headroom in the updated resource plan.

Answer

CEO Martin Lyons explained that while the company has strong growth drivers, the significant sales and rate base growth are weighted towards the middle and end of the 5-year plan. He expects to deliver near the upper end of the 6-8% range in the latter part of the plan. Lyons also clarified that the current resource plan is designed to serve 2 gigawatts of new demand by 2032, with potential for more thereafter. EVP & CFO Michael Moehn added that the 10-year capital plan has increased to over $63 billion, underscoring the long-term growth pipeline.

Shahriar Pourreza inquired about the California wildfire construct, specifically whether recent fires have stressed the AB 1054 framework and prompted state action. He also asked about the 5.5 GW data center load growth, its timeline, and potential regulatory accelerators.

Answer

CEO Patti Poppe confirmed that the issue has the attention of policymakers and noted the appointment of Ann Patterson as Senior Counsel to the Governor on wildfire issues as a positive sign. Poppe explained the data center timeline is driven by customer demand and transmission build-out, with 1.4 GW having passed preliminary engineering. She highlighted the company's proactive Rule 30 filing to facilitate this growth.

Shahriar Pourreza inquired if the incremental $1 billion in CapEx was the primary driver for the updated 10% EPS growth guidance in 2025 and asked how this new capital was absorbed without additional equity issuance or impacting the timeline for achieving an investment-grade credit rating.

Answer

CEO Patti Poppe confirmed the $1 billion in capital was the key driver for the increased 2025 guidance. CFO Carolyn Burke explained that the capital was funded by a $1 billion junior subordinated notes issuance, which has 50% equity content, making it a credit-neutral transaction that does not alter the company's existing equity plans or its path to an investment-grade rating.

Shahriar Pourreza inquired about the remaining risks and cost variability for the Coastal Virginia Offshore Wind (CVOW) project, including potential impacts from supplier delays, cost recovery mechanisms, and the company's interest in future wind projects given potential tariff headwinds.

Answer

Chair, President & CEO Robert Blue and EVP & COO Diane Leopold responded. Blue expressed confidence in the current cost estimates, noting that while PJM network upgrade costs are not final, the company's analysis is robust. He stated it's too early to determine the impact of potential tariffs but believes many components are finished goods and may not be subject to them, also highlighting the project's contingency and cost-sharing with Stonepeak. Leopold added that with the project 50% complete, risks are naturally decreasing as permits are secured, contracts are fixed-price, and fabrication is on schedule. Blue concluded that Dominion's focus is entirely on executing the current CVOW project.

Shahriar Pourreza asked for more details on the SMR agreement with Amazon and other potential partners, inquired if hyperscalers have shown interest in offshore wind, and questioned the rationale for the generation mix in the latest IRP.

Answer

CEO Robert Blue explained that interest in Small Modular Reactors (SMRs) is driven by demand growth, carbon-free energy goals, and national security. He stated that any partnership, including with Amazon, must mitigate first-of-a-kind development and cost overrun risks for customers and the company. Blue noted that conversations with hyperscalers have focused on SMRs, not offshore wind, as future projects are still premature. He described the Integrated Resource Plan (IRP) as aggressive, with significant additions across all generation types to meet substantial demand growth.

Shahriar Pourreza sought clarity on the potential timing for a settlement in the Missouri rate case and inquired about Spire's involvement and focus regarding new utility-focused legislation in Missouri, such as forward test years.

Answer

EVP, COO, and acting CEO Scott Doyle explained that settlement discussions can occur at any point during the rate case process. Regarding legislation, he clarified it would not impact the current case and noted that Spire is 'fully vested' in advocating for the gas utility-specific provisions within the proposed Senate Substitute Bill 4.

Shahriar Pourreza of Guggenheim Securities questioned the fiscal 2025 guidance, noting that recurring Q1 results appeared slightly below consensus after adjusting for a one-time gain, and inquired about growth drivers for Clean Energy Ventures (CEV) and potential impacts from IRA uncertainty.

Answer

Roberto Bel, Senior Vice President and Chief Financial Officer, affirmed that the company is trending 'well in our range' for its existing fiscal 2025 NFEPS guidance. Stephen D. Westhoven, President and CEO, added that CEV's out-of-state growth is a deliberate, long-term strategy and that near-term projects are not expected to be impacted by IRA-related issues due to prior safe harbor provisions.

Shahriar Pourreza from Guggenheim Partners asked for details on the Duane Arnold nuclear plant restart, including its timeline, potential costs, and the plant's current condition. He also questioned if the 2030+ timeline for new gas generation was too distant given urgent demand from hyperscalers.

Answer

CEO John Ketchum confirmed that NextEra has filed with the NRC for the Duane Arnold license recommissioning but declined to provide cost estimates to maintain negotiating leverage with potential customers. He positioned nuclear restarts as a near-term opportunity, while new SMRs are a 'next decade' solution. Ketchum defended the 2030+ timeline for at-scale gas generation, citing significant hurdles in siting, permitting, turbine supply, and EPC labor, which have tripled the cost of new gas plants compared to recent projects.

Inquired about the timeline, cost, and condition of the Duane Arnold nuclear plant restart. Also questioned the 2030+ timeline for new gas generation, given urgent demand from hyperscalers.

Answer

The Duane Arnold restart is progressing with regulatory filings and customer discussions, but cost details are confidential to maintain negotiating leverage. The plant is in good condition. The 2030+ timeline for new gas power is realistic due to significant hurdles in siting, permitting, supply chain constraints, and soaring costs for turbines and construction.

Shahriar Pourreza inquired about the potential impact of the Arizona Corporation Commission election results on the regulatory environment and the sustainability of the company's strong 4-6% load growth forecast.

Answer

CEO Jeffrey Guldner stated that if the preliminary election results hold, the new commissioners are likely to align with the current bench on key issues like the regulatory lag docket, suggesting constructive work will continue. On load growth, Guldner emphasized its "stickiness," driven by a pivot to advanced manufacturing and data centers. CFO Andrew Cooper added that the growth is diversified across residential, small business, and large C&I customers, with Taiwan Semiconductor's ramp-up contributing to the 2025 outlook.

Shahriar Pourreza inquired about the progress of discussions with NextEra regarding the Point Beach PPA and questioned the reasons for the CapEx reduction in the energy infrastructure segment.

Answer

Executive Scott Lauber stated that discussions on the Point Beach PPA are constructive and progressing well, with more details expected in the next six months. He explained the infrastructure CapEx was reduced to prioritize significant regulated investment opportunities in Wisconsin, driven by strong economic development, not due to poor returns in the infrastructure segment.

In a follow-up, Shahriar Pourreza of Guggenheim Partners requested an update on the status of discussions with NextEra regarding the Point Beach Power Purchase Agreement (PPA).

Answer

President and CEO Scott Lauber confirmed that the company has had 'good productive conversations' with NextEra about the Point Beach PPA. However, he stated that there was nothing new to report at this time and that discussions are ongoing.

Shahriar Pourreza asked about opportunities at Southern Power, including re-striking contracts at higher market prices and its overall growth potential. He also sought clarity on the potential capital versus O&M split for the $1.1 billion in storm costs.

Answer

CFO Dan Tucker stated that Southern Power has a long-term opportunity to improve returns as contracts renew, noting capacity values have roughly doubled. He confirmed this doesn't curtail growth potential but will be managed with discipline, a point echoed by CEO Chris Womack. Regarding storm costs, Tucker said it was too early for a precise split but expects it to skew more toward capital than historically due to the extensive rebuilding.

Shahriar Pourreza questioned the drivers behind the delay in Montana interim rates and the basis for the company's confidence in a December order. He also asked about the timeline for realizing incremental CapEx opportunities like PPA buyouts and transmission projects.

Answer

CEO Brian Bird acknowledged the commission's workload but expressed confidence in their filing's unique aspects. CFO Crystal Lail added that the electric request is differentiated because it includes a PCCAM base reset and a bridge rate for the Yellowstone facility, resulting in a minimal total bill impact. Regarding upside opportunities, Bird stated that various initiatives are in progress and simply require more time.

Shahriar Pourreza from Guggenheim Securities inquired about the potential for an increased capital expenditure plan beyond the previously mentioned $25 billion, citing generation needs and the recent system audit. He also questioned the funding strategy for any incremental CapEx, particularly regarding the company's minimal equity issuance guidance.

Answer

Chairman and CEO Gerardo Norcia confirmed incremental investment opportunities in generation, driven by strong demand for the voluntary renewables program and new clean energy legislation. President and COO Joi Harris added that while the audit supports their current plan, it could lead to reprioritization and some increased spending in specific areas, governed by customer affordability. EVP and CFO David Ruud stated that while the full funding plan will be updated on the Q4 call, the company does not anticipate changing its minimal equity issuance guidance of $0-$100 million through 2026.

Shahriar Pourreza asked about the potential for a settlement in the DTE Electric rate case, whether rate design proposals were contentious, and the future strategy for the DTE Vantage segment, including its business mix and potential for portfolio optimization.

Answer

Executive Joi Harris indicated that while a settlement is preferred, the company is confident in a constructive outcome if the case is litigated, noting the case is straightforward and not highly contested on rate design. CEO Gerardo Norcia detailed that Vantage's focus is on greenfield RNG and custom energy solutions. He added that asset optimization would only be considered if the non-utility business mix grew beyond 10% or if DTE faced significant equity needs.

Shahriar Pourreza inquired about the timing of capital expenditure updates following new legislation and how DTE plans to fund incremental CapEx, questioning the equity needs beyond the current plan.

Answer

Chairman and CEO Gerardo Norcia and EVP and CFO Dave Ruud explained that the recent $2 billion CapEx increase already reflects the IRP and legislation, with further opportunities expected beyond the current 5-year plan. Ruud affirmed that strong cash flows and IRA tax credits support the plan with minimal equity (up to $100M annually through 2026), maintaining a 15%-16% FFO-to-debt target. Norcia added that recycling capital from Vantage is an option if it creates incremental shareholder value, but it's not necessary now.

Inquired about the potential cost and ownership strategy for the Duane Arnold nuclear plant restart. Also questioned the change in language and timing for the NextEra Energy Partners (NEP) strategic review, asking about potential outcomes, the removal of distribution growth targets, and NextEra's future as the owner.

Answer

The cost for restarting Duane Arnold is still under evaluation, but its design makes it less complex. The preference is to own the asset long-term. Regarding NEP, the strategic review is concluding and will be detailed on the Q4 call. The company is considering a shift towards reinvesting capital for cash flow growth over distributions. The base case is for NextEra to remain the owner of NEP.

Inquired about the strategic options and timing for resolving NextEra Energy Partners' (NEP) cost of capital challenges, and whether supply chain bottlenecks could constrain the strong renewables origination growth.

Answer

The company stated that all options, including private capital, are being explored for NEP, with a resolution expected 'over the next few quarters,' emphasizing they have time and don't need growth equity until 2027. On the supply chain, they feel confident due to their scale, which provides leverage, and their strategy of transferring tariff and other risks to suppliers.

Asked for an update on long-term financing solutions for NextEra Energy Partners (NEP) and whether the recent FEC matter concerning FP&L is fully concluded.

Answer

Discussions about a private capital raise to address NEP's financing needs are ongoing, but no updates will be provided at the upcoming Analyst Day. The FEC matter is considered closed and behind them.

Shahriar Pourreza of Guggenheim Partners asked if the FERC protest against the Susquehanna ISA could delay PSEG's plans for a data center deal at its Artificial Island site. He also inquired about the progress on other nuclear fleet upsides, such as uprates.

Answer

Ralph LaRossa, Chairman, President and CEO, stated that PSEG's plans would not be held up by the protest, as each deal is unique, and reiterated the company's focus on supporting New Jersey's AI initiatives. He confirmed that other nuclear upside projects, including fuel cycle changes and upgrades at the Salem units, are progressing on schedule without any identified issues.

Konstantin Lednev, on behalf of Shar Pourreza, asked if the behind-the-meter data center opportunity is scalable in New Jersey and whether PSEG would update its guidance as power prices rise above PTC levels.

Answer

Chair, President and CEO Ralph LaRossa and CFO Daniel Cregg addressed the question. Cregg noted that behind-the-meter projects are inherently built at scale, while LaRossa highlighted PSEG's unique 3-unit nuclear site as a key advantage for scalability. Regarding guidance, Cregg stated that the company prioritizes predictability and will only incorporate upside opportunities into its forecast once they are contractually secured, not based on cyclical market price movements.