Potential Fines and Legal Issues
Q: Any impact from potential OOCIC fines and investigations?
A: Management acknowledged they may need to pay a small amount to resolve investigations by the Ohio Organized Crime Investigations Commission (OOCIC) and the Ohio Attorney General, but they don't expect it to be material. They want to put these issues behind them and move forward. " "

Ohio Rate Case and Low Rate Hike
Q: How is rate hike request so low after being out so long?
A: They are moving costs currently recovered through riders into base rates, so customers won't see an increase for those. They anticipate a gross increase of less than $100 million and a net impact on customer rates of less than 5%. " "

Data Center Growth Opportunities
Q: What's the outlook for data centers and related CapEx?
A: Dialogue with data centers is positive, with significant growth opportunities, especially in Ohio, Maryland, and Pennsylvania. They are investing in infrastructure to support this, including $800 million for PJM Open Window 3 and seeing interest from large customers like Quantum Loophole. " "

Energize365 CapEx Plan and Clean Energy
Q: Can you detail the clean energy part of Energize365?
A: They are investing in grid enhancements to support the energy transition, including over $1 billion in projects like PJM Open Window 3 and New Jersey offshore wind transmission. They are also pursuing $500 million in projects under the DOE GRIP program. "

Resource Adequacy and Generation Assets
Q: Will you build generation assets due to resource adequacy concerns?
A: Management acknowledges increasing discussions about resource adequacy but notes that in most of their states, they are wires-only utilities and would consider building generation only if asked by regulators on a regulated basis. "

Interest Rates and Investment Grade Rating
Q: How does interest rate environment affect growth plans?
A: They planned for a 5.75% coupon rate for new debt this year and are monitoring rates. The recent upgrade to investment grade eliminates prior interest rate step-ups, saving less than $10 million annually. " "

Pension Volatility and Proposed Mechanism
Q: How will pension tracking mechanisms affect volatility?
A: If approved, the mechanisms would reduce volatility by deferring changes to the balance sheet. They're pursuing this in rate cases and had a pension lift-out last year, reducing volatility by 5–10%. "

Signal Peak Potential Shutdown
Q: Impact if Signal Peak mine shuts down in 2025?
A: Management anticipates minimal earnings impact beyond 2025, with contributions becoming de minimis. They've planned for $0.12 EPS contribution this year and $0.03 in the first quarter. " "

Strategic Initiatives and Cultural Change
Q: Progress on organizational realignment and culture?
A: New leadership hires are making an impact, and they're managing by business units. They're shifting from a break-fix CapEx model to one that improves reliability and customer experience. "

Grid-Enhancing Technologies
Q: How are you deploying grid-enhancing technologies?
A: They're advancing pilot projects worth $500 million under the DOE GRIP program, including smart grid, storage, and DER management systems, to enhance grid resilience. " "