Steve Fleishman

Steve Fleishman inquired about the $9 billion upside capital opportunity at Oncor, Texas, seeking a timeline for when its likelihood would be known and further color on its contribution to growth.

Answer

Jeff Martin, Chairman and Chief Executive Officer of Sempra, clarified that the $9 billion upside primarily layers into 2028, 2029, and 2030, significantly shaping the longer-term growth profile. Allen Nye, Chief Executive Officer of Oncor, detailed the $10 billion (Oncor's 100% share) incremental opportunities, including ERCOT non-Permian projects, additional transmission upgrades, System Resiliency Plan updates, and LC&I interconnections. He explained that factors like ERCOT approvals and CCNs could shift these projects from incremental to the base plan, expressing high confidence in both the base and incremental opportunities.

Steve Fleishman inquired about the shaping of Sempra's earnings growth from 2028 to 2030, asking if it would be more linear given the drivers like rate base growth and the Unified Tracker Mechanism (UTM). He also sought details on the timeline and likelihood of the $9 billion upside capital opportunities at Oncor Texas.

Answer

Jeff Martin (Chairman and CEO, Sempra) explained that improved certainty in cash flows allows for greater visibility into 2030, with growth trending in line or above the 7%-9% long-term guidance, though not always linear. Allen Nye (CEO, Oncor Electric Delivery) detailed the $10 billion incremental opportunities at Oncor (Sempra's 80.25% share is $8 billion), primarily layering into 2028-2030, driven by ERCOT projects, transmission upgrades, and System Resiliency Plan updates, with high confidence in their realization.

Steve Fleishman of Wolfe Research, LLC sought clarification on the Sempra Infrastructure (SI) asset sale, asking about the timing of the KKR deal, the strategy for matching proceeds with rising Oncor CapEx, and the potential credit rating impact of deconsolidating SI.

Answer

Chairman, President & CEO Jeffrey Martin stated that while progress on the KKR deal is good, a specific timeline for a definitive agreement is not being forecasted. He affirmed the goal is to time the use of proceeds to fund the growing Texas utility capital plan, improve EPS and credit, and minimize future equity needs. Martin detailed that a successful sale could lead to a reevaluation of credit downgrade thresholds and potential deconsolidation of SI's debt, depending on the final ownership structure and governance.

Steve Fleishman asked about Vistra's capabilities regarding equipment and EPC (Engineering, Procurement, and Construction) to meet future new build needs. He also inquired about Vistra's balance sheet targets beyond 2027 and the strategy for allocating future cash given anticipated EBITDA growth.

Answer

Stacey Doré, Chief Strategy and Sustainability Officer and Executive Vice President of Public Affairs, Vistra, affirmed Vistra's strong relationships with turbine OEMs and EPC providers, ample access to high-voltage equipment, and existing development pipeline, stating that equipment or EPC are not gating items for new generation. Kris Moldovan, Executive Vice President and Chief Financial Officer, Vistra, reiterated the commitment to a strong balance sheet and investment-grade ratings, aiming for a net debt to adjusted EBITDA ratio of approximately 2.3 times by year-end 2027. He emphasized a balanced capital allocation framework, including shareholder returns, disciplined growth, and debt paydown, while seeking accretive opportunities.

Steve Fleishman of Wolfe Research asked about Vistra's capabilities regarding equipment and EPC (Engineering, Procurement, and Construction) to meet future new build generation needs. He also questioned Vistra's balance sheet targets beyond 2027 and the strategy for allocating cash given anticipated EBITDA growth.

Answer

Stacey Doré, Chief Strategy and Sustainability Officer and Executive Vice President of Public Affairs, Vistra, affirmed Vistra's strong relationships with turbine OEMs and EPC providers, ample access to high-voltage equipment, and existing development pipeline, indicating that equipment or EPC are not gating items for new generation. Kris Moldovan, EVP and CFO, Vistra, reiterated a balanced capital allocation approach post-2027, focusing on shareholder returns, maintaining a strong balance sheet for investment-grade ratings, and disciplined organic/inorganic growth, with potential for additional debt paydown if opportunities are not immediately available.

Steve Fleishman inquired if the recently noted PJM transmission projects were included in the utility capital plan and if any other planned projects for the 5-year period were awaiting approvals. He also asked about the company's thinking on dividend payout targets relative to peers and the timing of resuming dividend growth, as well as an update on new nuclear technology preference and its inclusion in the 5-year plan.

Answer

CFO Steven Ridge confirmed that awarded PJM transmission projects through 2030 are included in the capital plan, with opportunities for incremental capital to be reflected in future updates. Regarding dividends, he acknowledged the industry trend of reducing payout ratios for capital funding and stated the company would consider this, having time to make a final determination. For new nuclear, Steven Ridge noted that technology evaluation is ongoing, and no capital for Small Modular Reactors (SMRs) is in the current 5-year plan, with deployment expected further out.

Steve Fleishman asked if the recently noted PJM transmission open season awards were included in the current 5-year capital plan and if any other identified projects for the period were awaiting approvals. He also inquired about the company's thinking on dividend payout targets relative to peers and any updates on new nuclear technology preference or capital allocation for new nuclear in the 5-year plan.

Answer

Steven Ridge confirmed that awarded PJM transmission projects through 2030 are captured in the updated plan, with opportunities for incremental capital to be reflected in future updates. He noted that the company is aware of the trend of peers reducing payout ratios for capital funding, which will be considered when revisiting dividend growth. Regarding new nuclear, he stated that the company is still evaluating technology, has authorization for SMR development costs, but does not have capital for an SMR in the current 5-year plan, as deployment is still a ways away.

Steve Fleishman (Wolfe Research, LLC) followed up on the alternative generation solutions for the Blackstone JV, asking if they would primarily be gas-fueled technologies or include options like fuel cells or storage. He also questioned what data center customers were initially relying on for generation for their Pennsylvania projects and the risk of these customers diverting from the region if generation issues are not resolved promptly.

Answer

PPL President and CEO, Vince Sorgi, stated that the alternative generation solutions could encompass various technologies, including gas-fueled, fuel cells, or storage. He explained that data center customers initially expected to procure generation from the PJM market, focusing primarily on speed to grid connection. Sorgi noted that while resource adequacy concerns have increased, PPL is not seeing customers pull out of Pennsylvania; instead, they are engaging more constructively to find solutions, impressed by the region's grid reliability during recent cold spells.

Steve Fleishman followed up on alternative generation solutions, asking if they would primarily be gas-fueled or include other technologies like fuel cells or storage. He also inquired about data center customers' original plans for generation and the risk of them diverting from the region due to generation challenges.

Answer

Vince Sorgi, PPL President and CEO, confirmed that alternative generation could include various technologies. He explained that data center customers initially expected to procure generation from the PJM market, but increased resource adequacy pressure has led to more urgent engagement. Sorgi noted that interest in Pennsylvania is growing due to the transmission network's reliability, suggesting data centers are more committed to staying rather than leaving.

Steve Fleishman requested more details on the 11 GW of publicly announced data centers, how the data center growth compares to PPL's latest load forecast submitted to PJM, and the customer savings from sharing the transmission grid.

Answer

President and CEO Vince Sorgi explained that specific hyperscaler and location details are confidential, but provided capital estimates of approximately $800 million for 11.3 GW and $400 million for 5 GW under construction. He noted that PPL's latest PJM load forecast was about 16 GW. Mr. Sorgi confirmed that customer savings on the transmission component still exist, initially around 10% per gigawatt, and continue to accrue as more load is added.

Steve Fleishman asked for more details on the 11 gigawatts of publicly announced data centers, inquiring about specific pieces. He also questioned how the data center growth profile compares to PPL's latest load forecast submitted to PJM and whether PPL's zone has seen a significant increase. Additionally, he asked for an update on the customer savings ratio from sharing the transmission grid.

Answer

President and CEO Vince Sorgi stated that due to confidentiality, specific hyperscaler or location details could not be provided, but noted capital investments of approximately $800 million for 11.3 GW and $400 million for 5 GW under construction. He confirmed that PPL's latest PJM forecast was about 16 gigawatts. Regarding customer savings, Mr. Sorgi indicated that early pieces showed about a 10% saving on the transmission component per gigawatt, which gets diluted with more additions but still results in savings.

Steve Fleishman asked for clarification on the timing and inclusion of the 3 GW of 'highly likely' load in the current plan, whether the growth rate upside extends beyond 2030, and the company's perspective on data center siting and zoning concerns in Georgia, particularly regarding the 13 GW in their plan.

Answer

CFO David P. Poroch confirmed that the 3 GW contracts are near-term and already 'baked into' the current forecast, extending beyond the planning horizon. He clarified that the current plan includes both the 10 GW signed and the 3 GW highly likely. He also stated that the upside to the growth rate is expected both within and beyond 2030. Chairman, President, and CEO Christopher C. Womack addressed data center zoning, affirming confidence in the 10 GW under construction and the continued advancement of projects despite ongoing discussions.

Steve Fleishman inquired about the timing and inclusion of the 3 GW of highly likely contracts within the current plan, the scope of the projected growth rate upside (whether it extends beyond 2030), and the company's perspective on data center siting and zoning issues in Georgia.

Answer

David P. Poroch, CFO, confirmed that the 3 GW contracts are near-term, baked into the current forecast, and extend beyond the planning horizon, contributing to confidence. He clarified that the growth rate upside is both within and beyond the 2030 plan. Christopher C. Womack, Chairman, President and CEO, stated that the 10 GW of projects are under construction, and despite ongoing conversations, projects continue to advance across their states.

Steve Fleishman of Wolfe Research LLC sought clarification on the 2027 EPS rebasing strategy, the year-by-year trajectory for achieving the 17% FFO to debt target, and the company's stance on potential asset sales, specifically mentioning PowerSecure.

Answer

David Poroch, SVP & incoming CFO, reiterated that the company will re-evaluate the 5-7% growth base as it gains a sustainable line of sight on load growth, likely not before 2027. He noted the path to 17% FFO to debt will be achieved near the end of the planning horizon and may fluctuate. CFO Dan Tucker provided current FFO to debt figures (14.3-14.4% unadjusted) and highlighted the proactive equity issuance. CEO Chris Womack declined to comment on specific rumors about asset sales but affirmed the company continuously evaluates its portfolio.

Steve Fleishman requested more specific details on the West Virginia combined cycle natural gas generating facility approval process, including what needs to be approved (certificate of need, CWIP rate making, cost levels) and the exact timing in the second half of the year. He also asked for clarification on the timing and components of the up to $2 billion equity plan.

Answer

Brian Tierney, CEO and President, explained that the West Virginia Public Service Commission needs to approve a certificate of need and public necessity, interim financing (AFUDC, CWIP), and the overall financing plan, including Department of Energy loan approval. He noted that while the commission has up to a year, they are expected to act much quicker, with a procedural schedule anticipated within the next month. Jon Taylor, Senior Vice President and Chief Financial Officer, clarified that the $2 billion equity plan is expected to be ratable over the five-year period, starting in 2026, averaging about 1% of current market cap annually, and includes the DRIP program and potential equity-like securities or hybrid instruments.

Steve Fleishman sought specific details on the West Virginia generation project approval process, including the necessary approvals for the certificate of need, interim financing, and CWIP rate making, as well as the exact timing. He also asked for more information on the $2 billion equity plan, including its timing and components like the DRIP program and potential hybrid instruments.

Answer

Brian Tierney (CEO and President) explained that the West Virginia Public Service Commission needs to approve a certificate of need and public necessity, interim financing (AFUDC, CWIP), and the overall financing plan. He anticipates approval in the second half of the year, potentially expedited due to state interest. Jon Taylor (SVP and CFO) clarified that the $2 billion equity plan is ratable over the five-year period, starting in 2026, representing about 1% of market cap annually, including the DRIP program, with exploration of hybrid instruments.

Steve Fleishman sought clarification on FirstEnergy's transmission upside, specifically the 18% rate-based growth, asking if the outcomes from the pending PJM open window process are already embedded in this figure or if they would represent additional upside. He also asked for clarification on whether the company's comments referred to the current plan or the next plan to be released.

Answer

Brian Tierney, Chair, President, and CEO, explained that a very modest amount from the pending PJM open window is included in the current plan, and significant incremental awards would lead to a refresh of the plan. He clarified that the 30% increase discussed is for the next 5-year plan, with the modest PJM open window component factored in. Regardless of the open window outcome, FirstEnergy remains confident in its 6%-8% EPS growth rate, targeting the upper half of that range.

Steve Fleishman asked for clarification on the transmission upside, specifically whether the PJM open window outcomes are already embedded in the 18% rate-based growth projection or if they represent additional upside. He also sought clarification on whether the 30% CapEx increase mentioned was relative to the current plan or the upcoming next plan.

Answer

Brian Tierney, Chair, President, and CEO, explained that a very modest amount from the pending PJM open window is included in the plan, but FirstEnergy's practice is to only include projects once approvals are secured. He noted the portfolio's resilience with many projects to fill in as needed. He clarified that the 30% CapEx increase is factored into the plan, giving extreme confidence in achieving the 6% to 8% earnings per share growth range, targeting the upper end, regardless of the PJM open window outcomes.

Steve Fleishman asked about the regulatory approval requirements in Oregon (no harm) and Washington (net benefit) for the acquisition, and how Portland General Electric got comfortable with wildfire risk in the Washington territory, including the nature of the territory.

Answer

Joseph Trpik (SVP of Finance and CFO, Portland General Electric) confirmed Oregon's 'no harm' standard and Washington's 'net benefit' standard, both with an 11-month approval process. Maria Pope (President and CEO, Portland General Electric) explained that Portland General Electric has a mature wildfire risk management program and will leverage PacifiCorp's existing wildfire-approved plan for 2024-2027 in Washington, bringing their expertise and collaborating with regulators.

Steve Fleishman asked about the regulatory approval requirements in Oregon (no harm to customers) and Washington (net benefits), and how Portland General Electric got comfortable with wildfire risk in the Washington territory.

Answer

Joseph Trpik (SVP of Finance and CFO) confirmed that Oregon has a 'no harm' standard and Washington has a 'net benefit' standard, both with an 11-month approval process. Maria Pope (President and CEO) explained that PGE has a mature wildfire risk management program and PacifiCorp also has an approved plan for Washington, which PGE will adopt and enhance with its expertise and collaboration with regulators.

Steve Fleishman inquired about the California Public Utilities Commission's (CPUC) recent views on the CEA process and their potential influence on the legislature.

Answer

CEO Patti Poppe noted that the CPUC supports a 'whole society approach' to wildfire risk, aligning with PG&E's view that the current model is regressive. She expressed appreciation for the CPUC sharing their perspective and hoped their advocacy would support necessary reforms in SB 254 Phase Two. In a follow-up, Ms. Poppe confirmed that increased visibility from data centers provides greater conviction for higher load growth, citing 3.6 GW in final engineering and 18% EV penetration as key drivers for the simple, affordable model.

Steve Fleishman asked for PG&E's perspective on the CPUC's recent views regarding the CEA process and their potential influence on the legislature. He also questioned if the updated simple, affordable model reflects higher growth visibility from data centers.

Answer

CEO Patti Poppe noted that the CPUC's stance aligns with PG&E's view that the current model is regressive, supporting a whole-society approach, and expressed hope for their advocacy. Ms. Poppe confirmed that the updated model incorporates better visibility for higher load growth, citing 3.6 GW of data center demand in final engineering (with 1.8 GW expected online by 2030) and continued EV penetration.

Steve Fleishman asked about the public availability of information regarding the SB 254 process and the status of the cost of capital case.

Answer

Patti Poppe, CEO, outlined the key milestone dates for the SB 254 process but noted uncertainty about which information would be made public. Carolyn Burke, EVP and CFO, confirmed that the proposed decision for the cost of capital application is expected in November 2025, following a strong case presented by PG&E.

Steve Fleishman inquired about the public disclosure timeline for the SB 254 process and the status of the cost of capital case.

Answer

CEO Patti Poppe clarified the key milestone dates for stakeholder submissions and the final CEA study, noting uncertainty about public availability. EVP and CFO Carolyn Burke confirmed the proposed decision for the cost of capital case is expected in November 2025.

Steve Fleishman of Wolfe Research LLC asked for specifics on PG&E's confidence in achieving its growth targets amid various legislative outcomes, particularly concerning securitization proposals and potential equity needs for a new wildfire fund.

Answer

CEO Patti Poppe reaffirmed guidance through 2028, stating the company has the necessary flexibility. She clarified that PG&E opposes securitization as it would increase customer bills. Regarding the wildfire fund, she asserted that an upfront equity payment is not expected and that the company would not issue equity at current valuations to fund it, emphasizing that any new framework must be an improvement for PG&E to opt in.

Steve Fleishman of Wolfe Research LLC asked for specifics on PG&E's confidence in achieving its growth targets amid various legislative outcomes, particularly concerning securitization proposals and potential equity needs for a new wildfire fund.

Answer

CEO Patti Poppe reaffirmed the company's financial guidance through 2028, stating they have the necessary flexibility. She argued against securitization as being more costly for customers and asserted that there is no reason to assume an upfront equity payment would be required for the wildfire fund, emphasizing that any new framework must be an improvement over the status quo for PG&E to opt in.

Steve Fleishman asked if the shift towards more transmission investments would lead to an upward movement within the 9%-10% earned ROE range. He also sought clarity on the expected resolution timeline for the Corporate Alternative Minimum Tax (CAMT), the status of Maryland's 'lessons learned' report, and Exelon's perspective on the new New Jersey governor.

Answer

Jeanne Jones (CFO) indicated that while the average earned ROE since separation was 9.4%, the shift to transmission could lead to 'slightly better' ROEs over time. She expressed hope for a 'final, final resolution' on CAMT in the near term. Calvin Butler (President and CEO) confirmed that Maryland's 'lessons learned' report is expected in 2026, and BGE will file its rate case before its release. Mike Innocenzo (Chief Operating Officer) commented that the new New Jersey governor's executive orders are constructive, with discussions focusing on affordable and efficient supply.

Steve Fleishman asked if the shift towards more transmission investments would lead to an upward movement within the 9%-10% earned ROE range. He also inquired about the expected timeline for clarity on the Corporate Alternative Minimum Tax (CAMT) and the Maryland 'lessons learned' report, and Exelon's initial take on the new New Jersey governor.

Answer

Jeanne Jones (CFO) indicated that the average earned ROE since separation has been around 9.4%, and with the shift to transmission, it could be 'if not slightly better,' but will take time for larger projects to close. She expressed hope for a final CAMT resolution 'in the near term.' Calvin Butler (President and CEO) confirmed that a Maryland 'lessons learned' report is expected in 2026, though BGE's filing will likely precede it. Mike Innocenzo (Chief Operating Officer) commented that the new New Jersey governor's executive orders are constructive, and discussions are focused on bringing affordable supply.

Steve Fleishman sought more clarity on the level of commitment behind the Letters of Agreement (LOAs) in Texas, questioning if they might represent options rather than fully committed projects, and asked for additional details and rough investment figures for the recently awarded transmission projects.

Answer

Trevor Mihalik (EVP and CFO) stated that a significant portion of the ERCOT load, over 50%, is from hyperscalers and data center developers who are deeply committed and putting dollars at risk. He added that the 180 GW backlog provides confidence, as any walk-aways could be quickly backfilled. Regarding transmission projects, Trevor Mihalik detailed approximately $4.7 billion in projects: $2.7 billion in SPP, $1.5 billion in PJM, and $0.5 billion in MISO, with most falling within the 2026-2030 five-year window. He also mentioned the $2.7 billion for Bloom fuel cells, bringing the total to about $7.4 billion. Bill Fehrman (Chairman, President, and CEO) highlighted AEP's competitive advantage in transmission, operating 90% of the 765 kV system, and its partnership with Quanta Services, ensuring equipment and contractor availability.

Steve Fleishman from Wolfe Research sought clarification on the nature of Letters of Agreement (LOAs) in Texas, specifically the scale of customer commitment required for the SB 6 queue and the risk of these agreements being merely options rather than firm projects. He also requested more details on the recently awarded transmission projects and their estimated investment values.

Answer

Trevor Mihalik, EVP and CFO, expressed confidence in the LOAs, noting that over 50% of the ERCOT load comes from hyperscalers and committed counterparties. He also provided a breakdown of the $5 billion-$8 billion capital upside, detailing approximately $4.7 billion for transmission projects across SPP ($2.7B), PJM ($1.5B), and MISO ($0.5B), plus $2.7 billion for Bloom fuel cells. Bill Fehrman, Chairman, President, and CEO, emphasized AEP's competitive advantage in 765 kV transmission and strategic partnership with Quanta Services.

Steve Fleishman asked for more details on AEP's partnership with an infrastructure provider, the timing of turbine orders, and an update on Bloom Energy partnerships and supply chain initiatives.

Answer

Bill Fehrman, Chair, President and CEO, confirmed that AEP is establishing long-term supply framework agreements for major equipment, including significant agreements for turbines and high-voltage transmission transformer equipment. He expressed confidence in the company's positioning to deliver on its plans and mentioned ongoing work with potential customers to deploy additional megawatts with Bloom Energy, with hopes for more updates by the EEI conference.

Steve Fleishman asked for clarification on the growth cadence for 2028-2030, specifically if the 9% or better growth rate accelerates or remains consistent. He also requested a distinction between a Letter of Agreement (LOA) and an Energy Service Agreement (ESA) and sought an update on AEP's partnership with an infrastructure provider, turbine orders, and Bloom Energy deployments.

Answer

Trevor Mihalik, EVP and CFO, clarified that the growth rate for 2028-2030 is expected to be fairly flat at or above 9%, emphasizing a confident, 'under-promise and over-deliver' approach. He explained that an LOA is generally a precursor to a more binding ESA, though both carry financial obligations, and noted that in Texas (ERCOT), only LOAs are signed. Mihalik confirmed the 28 GW load is backed by LOAs or ESAs. Bill Fehrman, Chair, President and CEO, stated that AEP is establishing long-term supply framework agreements for major equipment, with significant agreements already in place for turbines and high-voltage transmission transformers. He added that AEP is still working with potential customers for additional Bloom Energy deployments and hopes to provide more updates by the EEI conference.

Steve Fleishman from Wolfe Research asked for more details on AEP's plans for Small Modular Reactors (SMRs), the ongoing earnings impact from the NOLC accounting change, and an update on the West Virginia rate case.

Answer

President & CEO William J. Fehrman stated the SMR focus is on early site permits with strong regulatory support, emphasizing that further investment requires robust capital protections. SVP & Chief Accounting Officer Kate Sturges clarified the ongoing NOLC impact is expected to be about 3 cents per share annually. Fehrman added that an order in the West Virginia case is expected by early September.

Steve Fleishman asked about the implications of Google's acquisition of Intersect, a renewables developer, for NextEra Energy's partnership with Google and the competitive landscape if other hyperscalers follow suit. He also inquired about data center siting opposition, particularly in Florida, and NextEra's strategy to address concerns about rising rates.

Answer

Chairman, President, and Chief Executive Officer of NextEra Energy John Ketchum stated that Google's acquisition of Intersect has no impact on their partnership, citing Intersect's smaller scale, limited geographic concentration, and potential supply chain/permitting limitations compared to NextEra's broad capabilities. President of Florida Power & Light Company Scott Bores addressed Florida-specific concerns, noting ongoing constructive legislation that aligns with FPL's tariff to protect existing customers from large load infrastructure costs. John Ketchum added that NextEra's national footprint and 'bring your own generation' (BYOG) approach position them well to offer affordable, reliable solutions nationally, shouldering incremental generation costs.

Steve Fleishman inquired about the implications of Google's acquisition of Intersect, a renewables developer, on NextEra Energy's partnership with Google and the broader competitive landscape, particularly if other hyperscalers follow suit. He also asked about concerns regarding data center siting opposition and potential rate increases, specifically in Florida and nationally.

Answer

Chairman, President, and CEO John Ketchum stated that Google's acquisition has no impact on their partnership, citing Intersect's smaller scale, limited geographic concentration, and NextEra's superior position in safe harbor, inventory, supply chain, and multi-technology experience across 50 states. President of Florida Power & Light Company Scott Bores addressed Florida-specific concerns, noting ongoing constructive legislation that aligns with FPL's tariff to protect existing customers. John Ketchum added that NextEra's national footprint, ability to design affordable solutions, and focus on "bring your own generation" (BYOG) position them well to address national data center demands and affordability concerns.

Steve Fleishman inquired about the estimated cost for recommissioning the Duane Arnold nuclear plant and the financial terms of acquiring the remaining 30% ownership interest. He also asked for clarification regarding the 1 GW removal from the project backlog.

Answer

John Ketchum, Chairman, President, and CEO of NextEra Energy Inc., stated that specific CapEx numbers for Duane Arnold would not be disclosed but expressed confidence in efficient recommissioning, noting the plant's good condition and the experienced team. He explained that the 30% buyout of CIPCO and Corn Belt was in exchange for NextEra Energy assuming their decommissioning liability. Regarding the backlog, Mr. Ketchum clarified that 650 MW were removed for development reasons on smaller projects, expected to return in 2026-2027, and 250 MW were shifted from 2025 to 2026 due to permitting delays, with no impact on financial expectations.

Steve Fleishman inquired about the estimated cost for recommissioning the Duane Arnold nuclear plant, the acquisition price for the 30% minority interest, and the reasons behind the 1 GW reduction in NextEra Energy Resources' project backlog.

Answer

John Ketchum, Chairman, President and CEO of NextEra Energy, stated that specific CapEx for Duane Arnold would not be disclosed but expressed confidence in efficient execution, noting the 30% buyout was in exchange for assuming decommissioning liability. Regarding the backlog, Mr. Ketchum explained that 650 MW were removed for development reasons (expected back in 2026/2027) and 250 MW due to permitting delays (shifted from 2025 to 2026), assuring no impact on financial expectations.

Steve Fleishman of Wolfe Research, LLC inquired about the impact of the 'One Big Beautiful Bill Act' (OBBBA) and executive orders on tax credit safe harbor provisions, NextEra's exposure to federal land permitting, and evidence of a 'natural pull forward' in customer demand.

Answer

John Ketchum, President, CEO & Chairman, explained that the term 'begin construction' has a settled meaning, and NextEra has made sufficient financial commitments to cover its development pipeline through 2029. He noted that while new federal permitting rules add a review layer, most of the company's backlog already has permits. Ketchum anticipates a demand pull-forward as customers digest the new law, which could create opportunities for NextEra as smaller developers may face challenges.

Steve Fleishman asked about the potential delay in Constellation's Calpine asset sale process and its implications. He also sought clarification on the broader market dynamics, including new entrants and the 'time to power' challenge, and Constellation's confidence in securing new customers amidst these trends.

Answer

President and CEO Joe Dominguez explained that the asset sale process was initiated without knowing the divestiture timeline, and now Constellation feels confident in having reasonable time post-regulatory approvals. He added that they want to target the exact right assets for divestiture and are not in a hurry, noting a supportive market for asset sales. Mr. Dominguez attributed the excitement around new generation to the durable growth cycle in data centers, emphasizing the enormous investment and the need for all hands on deck, which reinforces his confidence in Constellation's strategy to provide immediately available, scalable power.

Steve Fleishman asked about a potential delay in Constellation's Calpine asset sale process and the reasons behind it. He also sought high-level insights into the influx of new entrants in the power business, the focus on 'time to power,' and the company's conviction in capturing new customers despite lengthy deal processes.

Answer

President and CEO Joe Dominguez explained that the asset sale process was initiated early due to uncertainty regarding divestiture timelines, but Constellation now feels more confident in having reasonable time post-regulatory approvals. He stated the company wants to carefully target the right assets based on DOJ and FERC tests, and is not in a hurry, noting a supportive market for asset sales. Addressing the broader market, Mr. Dominguez attributed the excitement around new generation to the durable growth cycle in data centers, which represents an enormous investment. He expressed confidence in Constellation's ability to execute its strategy, citing increased interest and serious negotiations, and highlighting the company's unique offering of immediately available power with predictable scaling.

Steve Fleishman of Wolfe Research, LLC asked about the timeline and potential risks for the 'late inning' data center deal, particularly concerning utility interconnection processes. He also inquired about Constellation's evolving strategy and willingness to invest in new nuclear projects.

Answer

President & CEO Joseph Dominguez stated he is hopeful the data center deal will be completed this year, noting that while the interconnection process is in the hands of utilities, he is confident in the project's viability. Regarding new nuclear, Dominguez explained that the company's strategy is evolving incrementally, with growing confidence in cost structures and timelines as they continue to refine their analysis of new designs and manufacturing processes.

Steve Fleishman of Wolfe Research, LLC asked about the timeline and viability of the 'late inning' data center deal, particularly concerning utility interconnection, and also inquired about Constellation's evolving strategy for investing in new nuclear projects.

Answer

President & CEO Joseph Dominguez responded that he is hopeful the data center deal will be completed this year, noting the process is with utilities but he is confident in its viability. Regarding new nuclear, Mr. Dominguez described an evolving, incremental strategy where confidence in cost structures and timelines is growing, but the company is not yet ready to announce specific project costs or start dates.

Steve Fleishman asked about Quanta Services' potential partnership with AEP for high-voltage transmission opportunities and the current inclusion of Texas PJM high-voltage transmission projects in the company's backlog, inquiring about their expected timeline.

Answer

President and CEO Duke Austin confirmed a strong, long-standing relationship with AEP and ongoing collaboration on 765kV capabilities, indicating more opportunities are anticipated. He clarified that none of the 765kV projects are currently in backlog, as Quanta is carefully setting resources and training, and has made investments in its transform facility.

Steve Fleishman inquired about AEP's potential partner for high-voltage transmission opportunities and the current inclusion of high-voltage transmission projects in Texas PJM within Quanta's backlog.

Answer

President and CEO Duke Austin confirmed Quanta's strong relationship and collaboration with AEP on 765kV capabilities, noting that none of the 765kV projects are currently in backlog but opportunities are expected. He also highlighted investments in their transform facility.

Steve Fleishman asked for a potential timeline for when the recently approved Texas 765 kV transmission plan could enter Quanta's backlog and inquired about the specific reasons for the full-year guidance increase.

Answer

President and CEO Duke Austin expressed confidence in winning a share of the Texas project, citing Quanta's expertise in 765 kV lines, and projected that work could be booked as early as Q3 or Q4 2025. He explained the guidance was raised to reflect confidence in the business outlook and work flow, adding that he currently leans towards the high end of the guidance range.

Steve Fleishman from Wolfe Research questioned the earnings and cash flow profile of Genco, specifically if the incremental investment net to NiSource would yield more than $0.10-$0.15 by 2030, given the lower equity issuance. He sought clarification on whether the $0.25-$0.45 EPS range for 2033 includes the current deal plus strategic negotiations, and if additional capital beyond the $7 billion is needed for this range.

Answer

CFO Shawn Anderson clarified that the $7 billion CapEx is sufficient for the $0.25-$0.45 range through 2033, which is inclusive of the announced customer, with additional customers potentially pushing to the higher end and requiring incremental capital. He noted that cash flow strengthens as the customer ramps, particularly from 2027 and more significantly around 2030.

Steve Fleishman from Wolfe Research asked about the earnings and cash flow profile of GenCo, the capital investment needed to reach 2033 targets, and how the contract structure helps minimize equity needs.

Answer

Shawn Anderson, EVP and CFO, clarified that the $7 billion CapEx supports development through 2032 and the full $0.25-$0.45 EPS range. He noted that incremental capital would be needed for upside beyond this range. He also mentioned that cash flow strengthens as the customer ramps, particularly from 2027 and more significantly around 2030.

Steve Fleishman sought clarification on the remaining procedural steps for the Genco declination case before an order is issued. He also asked for direct confirmation from the CEO regarding the commitment and timeline for converting the data center opportunity into a reality during 2025.

Answer

President & CEO Lloyd Yates confirmed that the final filings from parties are the last step in the Genco process before an expected order from the commission in Q3. He emphatically reiterated his previous statements, confirming that the data center opportunity is a 2025 event and that NiSource is on track to execute it.

Steve Fleishman from Wolfe Research LLC asked for confirmation on the remaining procedural steps for the Genco declination case. He also sought a direct reaffirmation from the CEO that the company is on track to convert the data center opportunity into a reality during 2025.

Answer

President & CEO Lloyd Yates confirmed that the final filings due this week are the last step before an expected order from the commission in the third quarter. He then emphatically stated, 'Absolutely. I said this is a 2025 event, and we are on track to execute that... We're right where we need to be.'

Steve Fleishman of Wolfe Research LLC sought to confirm the final procedural steps for the Genco declination case and asked for a direct reaffirmation of the 2025 timeline for finalizing the data center opportunity.

Answer

President & CEO Lloyd Yates confirmed that the final filings for the Genco case are the last step before an expected order in Q3. He unequivocally reaffirmed his previous statements, saying, 'Absolutely. I said this is a 2025 event, and we are on track to execute that... We're right where we need to be.'

Steve Fleishman asked for more details on the drivers behind the strong sales growth in Texas, particularly within the industrial sector. He also sought an update on data center activity prospects in Indiana and management's views on the regulatory environment there.

Answer

CEO Jason Wells attributed Texas industrial growth to diverse drivers, including over half a gigawatt of data center activity, strong demand from energy refining/exports, and an 18% increase in Port of Houston exports quarter-over-quarter. For Indiana, he highlighted active data center opportunities due to existing system capacity and efforts to moderate rate increases by canceling $1 billion in renewable projects and delaying coal plant retirement.

Steve Fleishman inquired about the drivers behind the strong sales growth in Texas, particularly the industrial sector. He also asked for an update on data center activity in Indiana and management's perspective on the regulatory environment there.

Answer

Jason Wells, CEO, attributed Texas's throughput growth to diverse drivers, including over half a gig of data center activity, strong demand from energy refining/processing, and an 18% increase in Port of Houston exports. For Indiana, he noted active data center opportunities due to excess system capacity and a constructive environment, while also addressing affordability efforts like canceling renewable projects and delaying coal plant retirement to moderate rate increases.

Steve Fleishman of Wolfe Research asked for an update on the timing of the Ohio gas LDC sale process and closing, and inquired about any new developments regarding data center opportunities in Indiana.

Answer

EVP & CFO Christopher Foster stated the company aims to announce a deal for the Ohio gas LDC sale by the end of the calendar year, with a potential closing about a year later. CEO Jason Wells confirmed that productive conversations about new data center demand continue in Indiana, highlighting the state's abundant land, water access, and available system capacity as compelling factors.

Steve Fleishman of Wolfe Research inquired about the timing of the Ohio gas LDC sale process and asked for an update on data center opportunities in Indiana.

Answer

CFO Chris Foster projected a signed agreement for the Ohio gas LDC sale by the end of the year, with a closing expected about a year later, noting strong initial interest. CEO Jason Wells reported continued productive conversations regarding data centers in Indiana, highlighting the state's compelling advantages like available land, water, and excess power capacity on CenterPoint's system.

Steve Fleishman of Wolfe Research, LLC was called upon during the Q&A session but indicated that his questions had already been addressed by previous analysts and passed on his turn.

Answer

As Steve Fleishman of Wolfe Research, LLC did not ask a question, no response was provided by management.

Steve Fleishman of Wolfe Research LLC asked if reaching the 15% FFO to debt target is contingent on the Florida sale, if the equity funding ratio for new capital will change, and for an update on resource preferences, particularly for new nuclear.

Answer

EVP & CFO Brian Savoy confirmed that progressing through the Florida deal is necessary to reach the 15% target. Both he and CEO Harry Sideris affirmed the 30-50% equity funding range remains a good guide, with the stronger balance sheet adding flexibility. Sideris reiterated an 'all of the above' strategy but stressed that new nuclear requires resolving first-of-a-kind risk, cost overrun protection, and balance sheet safeguards.

Steve Fleishman of Wolfe Research, LLC asked if there were any concerns about federal land issues impacting renewable projects. He also followed up on the Marshall Fire, confirming if Xcel's legal strategy still includes the argument that the first ignition, which they did not cause, was responsible for significant damage, and whether a settlement was still possible.

Answer

EVP & CFO Brian Van Abel provided a direct answer that the company has no projects on federal land. Chairman, President, & CEO Robert Frenzel confirmed their legal case for the Marshall Fire emphasizes that the first ignition caused significant fire spread before any purported second ignition. He reiterated that while they are prepared for trial, a settlement is still possible at any point before or during the proceedings.

Steve Fleishman requested details on the new storm cost recovery mechanism in Louisiana, its reception by rating agencies, and how Entergy is managing EPC and supply chain risks for its extensive gas plant construction program.

Answer

Chair and CEO Drew Marsh detailed the new Louisiana process, which allows for faster securitization based on estimated costs, lowering customer carrying costs and bolstering credit. CFO Kimberly Fontan confirmed rating agencies view it positively. On construction risk, Marsh outlined a strategy of using standardized designs, leveraging strong EPC relationships, and proactively securing the supply chain for critical components.