Steve D'Ambrisi

Stephen D'Ambrisi asked about the sales growth trend, noting nine consecutive quarters exceeding guidance and acceleration in Q4, and how this trend compares to the 4%-6% 2026 sales growth and long-term guidance. He also inquired about the EPS sensitivity to residential customer growth outperforming expectations by 50-100 basis points.

Answer

Senior Vice President and CFO Andrew Cooper explained that sales growth has been diversified and consistent, with residential growth at the high end due to strong customer growth and small offsets from distributed generation. He expects 2026 to be dominated by Extra High Load Factor customer ramp-up. Cooper provided a rule of thumb that 1% residential growth impacts gross margin by over $25 million, while 1% Extra High Load Factor growth is in the $5 million-$10 million range.

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.

Answer

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.

Answer

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.

Steven D’Ambrisi asked about Evergy's equity issuance plans, specifically the absence of planned issuances beyond 2029, and sought clarification on the potential size and customer count within the 2.0-3.5 GW advanced discussion pipeline for new ESAs.

Answer

David Campbell, Chairman, President, and CEO, and Bryan Buckler, EVP and CFO, Evergy, explained that the lack of equity needs in 2030 is due to greatly improving FFO, driven by growing served capacity from ESAs. They noted that future capital opportunities from additional ESAs could reintroduce equity needs. David Campbell clarified that they expect at least one more sizable ESA in 2026, with the bulk of its impact anticipated after 2030, extending the growth trajectory.

Steven D’Ambrisi asked about Evergy's equity issuance plans for 2030 and beyond, seeking clarity on steady-state equity needs and the potential impact of additional large customer ESAs. He also inquired about the number of customers or sites represented by the 2.0-3.5 GW potential in advanced discussions.

Answer

David Campbell and Bryan Buckler explained that no equity issuances are planned for 2030 due to improved FFO, but acknowledged potential future needs if upside capital opportunities arise from additional ESAs. They clarified that the 2.0-3.5 GW opportunity represents multiple sizable customers, with at least one more ESA expected in 2026, primarily impacting growth after 2030.

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'.

Answer

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 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.'

Answer

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.

Stephen D'Ambrisi followed up on the potential for additional large load customers beyond Customer X, acknowledging the company's conservative approach but noting substantial load opportunities in the service territory, and asked about the timeline for updating the street on these potential customers.

Answer

CEO Sean Trauschke reiterated the substantial generation additions (2.3 GW by decade-end, plus 1.9 GW from RFP) and stated that the company will announce large load customers as they materialize and have a clear line of sight to the finish line, similar to Customer X. He acknowledged ongoing discussions for more opportunities.

Steve D'Ambrisi asked for clarification on the proportion of data center load growth embedded within Duke Energy's 3%-4% enterprise load growth and 4%-5% Carolinas load growth, and how incremental ESA signings might impact future projections. He also inquired about how additional pipeline projects would layer into load growth projections, considering timing. Finally, he sought a net rate-based CAGR figure, accounting for the impact of minority interest investments, specifically the Duke Energy Florida (DEF) transaction.

Answer

Executive Vice President and CFO Brian Savoy stated that data centers comprise about 75% of the economic development load growth by 2030, with residential and existing customers accounting for roughly one-third of the 3%-4% enterprise load growth. He explained that incremental ESAs provide a tailwind, extending the load ramp into the 2030s, with President and CEO Harry Sideris adding that pipeline projects will ramp later in the plan. Savoy clarified that the 9.6% rate-based CAGR includes minority interest investments, and if the Florida minority investment were excluded, the CAGR would be 8.8%, with Brookfield proceeds offsetting Holdco interest expense.

Steven D'Ambrisi from RBC Capital Markets asked about WEC Energy Group's plans for replacing the Point Beach PPA generation, specifically concerning interconnect agreements, MISO queue slots, or participation in the 'arrows' process.

Answer

Scott Lauber, CEO of WEC Energy Group, expressed confidence in the generation team's ability to replace the power by 2030 and 2033, emphasizing a focus on economic solutions for customers and working with developers to balance renewables, batteries, and natural gas generation.

Steve D'Ambrisi asked about the company's plans for replacing the Point Beach PPA, specifically inquiring about the availability of generation interconnect agreements, MISO queue slots, or participation in the arrows process for new generation.

Answer

CEO Scott Lauber expressed confidence in the generation team's ability to replace the power for 2030 and 2033, working with a strong energy developer. He emphasized that the company will balance the economics for customers and capital investments to determine the best approach.

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.

Answer

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.

Answer

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 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.

Answer

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.