Equity Content Financing
Q: What type of equity content financing are you planning?
A: We are exploring different versions of hybrids to increase equity content in our plan. We're pulling forward $250 million into 2024, which doesn't change the overall guide of $1.75 billion total from 2024 to 2030; it's just a pull forward. This positions our balance sheet until we get the anticipated securitization proceeds, expected by end of next year.

Credit Ratings Impact
Q: How are rating agencies reacting to the storm costs and your updated plan?
A: We're in ongoing conversations about our aggressive 2024 plan and revised resiliency filing. Texas has a consistent construct for utilities to securitize costs above $100 million, and we're sharing that history with the agencies. There's fluid dialogue given how quickly we're moving on several fronts.

Storm Costs and Securitization
Q: What's your confidence in the $1.6 to $1.8 billion storm cost estimate and its impact on customers?
A: We have a good understanding of costs from both the derecho and Hurricane Beryl, primarily driven by asset-based costs and labor for nearly 15,000 workers. This informs our high-end estimate of $1.8 billion. The impact on customer bills would be around 2% over 15 years, aligning with Texas's statutory requirements.

O&M Reduction Goal
Q: Can you achieve your 1–2% O&M reduction despite increased vegetation management spending?
A: We continue to find efficiencies to support the 1–2% O&M reduction. We increased vegetation management spending by over 30% in 2023 and still achieved this reduction. We'll always invest to improve service but believe we have opportunities across our operations to meet the consolidated reduction goal.

Vegetation Management Challenges
Q: How can you address outages caused by trees outside your right of way?
A: 60% of trees impacting our lines were outside our right of way, and we currently lack authority to trim them without homeowner permission. We're working with property owners and considering legislative solutions to address hazardous trees that threaten our system.

Legislative Outlook
Q: Are there legislative initiatives to improve resiliency?
A: Possible areas include gaining authority for vegetation management outside our right of way and obtaining customer contact information to improve communications. Discussions are ongoing, and we expect these topics to come into focus approaching the next legislative session.

Mobile Generation Program
Q: How are you adapting your mobile generation program in light of recent events?
A: We maintain a diversified mobile generation portfolio to manage risks like load shed events and storm response. If policy objectives change, we'll adjust accordingly, but currently, we believe our program meets the state's expectations.

System Resiliency Plan Scope
Q: Can the accelerated resiliency efforts be accomplished within your $2.7 billion plan?
A: Yes, the aggressive acceleration in 2024 fits within the high end of our $2.7 billion system resiliency plan, as we aim to do more work on the system.

Return to Target Credit Metrics
Q: When do you expect FFO to debt ratios to return to target levels?
A: We anticipate adjustments upward from S&P upon securitization proceeds' receipt, expected around Q4 next year, which would improve FFO to debt metrics back into target ranges.

Undergrounding Distribution Lines
Q: Does undergrounding become more of a solution after the recent outages?
A: Undergrounding will likely play a more prominent role in our resiliency efforts. While about 60% of our customers already receive service through underground lines, focusing on overhead feeder lines that are points of failure is crucial. We'll balance undergrounding where it makes sense with hardening overhead lines.