Utilities Analyst at RBC Capital Markets
Steve D'Ambrisi is a Utilities Analyst at RBC Capital Markets, specializing in the fundamental research and investment analysis of the utilities sector. He covers major North American utilities, focusing on evaluating operating performance, regulatory developments, and market trends that impact companies such as NextEra Energy, Duke Energy, and Dominion Energy. D'Ambrisi has established a reputation for insightful sector commentary and stock recommendations, contributing to RBC’s coverage since joining the firm and leveraging prior experience from other leading financial institutions. He holds professional credentials in equity research analytics and is registered with FINRA, maintaining relevant securities licenses for industry compliance.
Steve D’Ambrisi asked about any legislative priorities Ameren is advancing in Missouri or pertinent legislative topics expected to arise during the bill prefiling in December.
Senior EVP and CFO Michael Moehn stated there was nothing specific to comment on regarding Missouri legislative priorities, anticipating constructive and balanced outcomes from the legislature and commission.
Steve Dembrisi asked about Ameren's legislative priorities or pertinent topics expected to arise during Missouri's bill prefiling in December.
Michael Moehn, Senior Executive Vice President and Chief Financial Officer, stated there was nothing specific to comment on but expressed expectations for constructive and balanced outcomes, acknowledging the improved legislative environment and thoughtful commission. He noted that it's premature to get into details before the December 1 prefiling.
Steve D'Ambrisi asked for an update on the Large Load Power Service (LLPS) tariff discussions, including remaining sticking points, resolution timelines, and how approvals would facilitate moving customers from 'finalizing agreements' to 'actively building.'
David Campbell, Chairman and CEO, Evergy, clarified that Kansas has a unanimous LLPS settlement with an expected decision later today, while Missouri has a non-unanimous partial settlement with a decision anticipated by year-end. He emphasized that LLPS approval is a crucial enabling step for advancing customer projects and moving them into the actively building phase.
Steve D'Ambrisi inquired about the status of the Large Load Power Service (LLPS) tariff discussions, particularly the main sticking points in the Missouri non-unanimous settlement, the timeline for resolution, and how this impacts moving customers from 'finalizing agreements' to 'actively building'.
David Campbell, Chairman and CEO, Evergy, clarified that Kansas has a unanimous LLPS settlement agreement, with a decision expected from the KCC later today. In Missouri, a non-unanimous partial settlement with similar terms (including customer protections and a higher rate for LLPS customers) has gone through a hearing, with a decision anticipated by year-end. He emphasized that LLPS approval is a critical enabling step for customer announcements and project advancement.
Steve D'Ambrisi from RBC Capital Markets requested more color on the year-over-year change in sales growth as an EPS driver, specifically comparing the 2025 and 2026 guidance. He also asked if the $0.55 transmission benefit would scale linearly with increased transmission spending or if other factors were driving supernormal growth and recoveries.
CFO Andrew Cooper explained that the smaller sales contribution in 2026 is due to year-to-year variability in large load customer ramp rates, though the long-term sales growth (5%-7% through 2030) remains strong. Regarding transmission benefits, Mr. Cooper stated that they should be proportionate to investment over time, with earnings realized quickly. He noted that while scaling will ultimately be linear, there might be lumpiness due to longer build times for larger strategic projects, and the company is exploring sectionalized energization to reduce regulatory lag. He also highlighted the benefit of wheeling revenues offsetting retail customer impact.
Steve D'Ambrosi from RBC Capital Markets requested more color on the year-over-year change in sales growth as an EPS driver, noting a smaller contribution in 2026 ($0.39) compared to 2025 ($0.58), despite similar overall sales growth ranges. He also inquired whether the $0.55 transmission benefit scales linearly with increased transmission spending throughout the plan or if other factors cause supernormal growth and recoveries.
CFO Andrew Cooper attributed the smaller 2026 sales growth contribution to intra-year variability in large load customer ramp rates, emphasizing the long-term confidence in the 5-7% sales growth through 2030. He stated that transmission benefits should be proportionate to investment over time, though lumpiness may occur due to longer lead times for strategic projects versus core CapEx. Cooper also highlighted the opportunity for sectionalized energization to reduce regulatory lag and the benefits of wheeling revenues for customer affordability.
Steve D'Ambrisi inquired about Entergy's alternative financing agreements for dispatchable generation, seeking clarification on their sizing, any correlation with the implied 3 GW increase in committed capacity (from 8 GW to 11 GW), and the timing and magnitude of potential capital spend that might fall outside the current plan.
Kimberly Fontan, CFO, clarified that there is no direct correlation between alternative financing and a specific 3 GW increase. She explained that the updated capacity reflects rolling forward the outlook to 2029, and alternative financing helps manage costs and align cash outflow with asset in-service dates. She indicated that specific sizing would be provided at the upcoming EEI conference, suggesting Steve's initial magnitude estimates were 'a bit outsized.' Drew Marsh, Chair and CEO, added that all contracted turbine projects are targeting commercial operations by 2032, implying significant capital deployment just beyond the 2029 outlook.
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