Total Revenue

+10% (from $991,574K in Q4 2023 to $1,095,408K in Q4 2024)

**Total Revenue grew by approximately 10% YoY, driven by underlying business factors such as improved customer acquisition and possibly enhanced pricing strategies compared to the prior period, which saw lower revenue. This growth reflects positive market demand and strategic initiatives to boost retail sales. " " **

Operating Income (EBIT)

+23% (from $74,380K in Q4 2023 to $91,323K in Q4 2024)

**Operating Income increased by about 23% YoY, suggesting that the company not only achieved higher revenues but also improved its cost control and operational efficiency relative to the previous quarter. These factors indicate that the business managed to convert additional revenue into higher operating profitability. " " " **

Net Income

Turned positive from a loss of ($12,941K) to $43,516K

**Net Income’s reversal from a loss of ($12,941K) in Q4 2023 to a profit of $43,516K in Q4 2024 signals a significant turnaround. This improvement likely stems from the revenue uptick and operational improvements; however, the reversal also reflects a change in underlying cost structures and effective management of expenses relative to the previous period. " **

Basic EPS

Declined to -$0.07 (diluted -$0.08)

**Despite improvements in net income, Basic EPS turned negative in Q4 2024, a contrast from previously positive figures. This discrepancy may be due to dilution effects, potential one-time adjustments, or higher per-share expense allocations that more adversely affected the EPS calculation in the current period. " **

2024 EPS

FY 2024

$5.00 to $5.20 per share "

no guidance

no current guidance

2024 Sales Growth

FY 2024

4% to 6% "

no guidance

no current guidance

2024 O&M Expenses

FY 2024

$1.01 billion to $1.03 billion "

no guidance

no current guidance

2024 CapEx

FY 2024

$2.05 billion "

no guidance

no current guidance

2025 EPS

FY 2025

$4.40 to $4.60 per share "

no guidance

no current guidance

2025 Customer Growth

FY 2025

1.5% to 2.5% "

no guidance

no current guidance

Weather-Normalized Sales Growth

FY 2025

4% to 6% with 3% to 5% contributed by C&I "

4% to 6% with C&I customers contributing 3% to 5% "

no change

Long-Term EPS Growth

FY 2025

5% to 7% "

5% to 7% "

no change

Capital and Financing Plans

FY 2025

no guidance

Over 40% of future capital investments will be tracked via system reliability benefit surcharges or FERC formula rates "

no prior guidance

Customer Growth

FY 2024

no guidance

2.1% "

no prior guidance

Regulatory Lag / Formula Rate Plan Implementation

Earlier calls (Q1–Q3) discussed challenges from using a historical test year, held workshops and docket progress sessions, and explored potential remedy options such as forward test years and formula rates. " " " "

Q4 emphasized active efforts to reduce regulatory lag with a clear policy statement from the ACC in December 2024 and detailed plans to file a mid‑2025 rate case that incorporates a formula rate plan. " " " "

Consistent focus with a more definitive, optimistic regulatory direction in Q4.

Capital Expenditure Opportunities and Strategic Investments

Q1–Q3 calls outlined plans for incremental CapEx financing, competitive RFPs, large-scale generation, transmission, and distribution investments; detailed financing moves such as bond issuances and equity planning were also shared. " " " "

Q4 renewed focus by highlighting targeted investments in generation, transmission, distribution, IT infrastructure, and the largest transmission/generation expansion in company history, with plans to adjust CapEx allocation post-formula rate authorization. " " "

A sustained strong investment focus that has evolved into more refined priorities and larger-scale planning.

Sales Growth and High Load Factor Customer Demand

Across Q1–Q3, the company reported robust weather‑normalized sales growth (around 5.5%–5.9%), strong C&I performance, and an expanding pipeline of high load factor customers (data centers and semiconductor firms, including TSMC) driving growth. " " "

Q4 reported full‑year sales growth of 5.7% with continued strong demand from data centers and semiconductor projects (e.g., TSMC and Amkor), and reaffirmed 2025 sales guidance. " "

A steady, bullish trend with persistent and even expanding high load factor customer demand.

EPS Growth Guidance and Conservative Financial Outlook

Q1 provided limited explicit discussion; Q2 mentioned unchanged guidance with attention to trends; Q3 reaffirmed a 5%–7% EPS growth target with emphasis on smoothing earnings via rate base growth and effective operational management. " " " "

Q4 once again reaffirmed the 5%–7% EPS growth guidance and stressed a conservative, smoother earnings profile supported by regulatory reforms and broad-based initiatives. " "

A consistent, conservative outlook that has been reinforced and clarified over time.

Regulatory Uncertainty and Rate Case Dynamics

Q1 highlighted challenges with the historical test year and related cost recovery; Q2 discussed workshops, the evolving timing of the next rate case, and the need for better credit metrics; Q3 addressed planned mid‑2025 filings and concerns around allowed ROE. " " " " " "

Q4 detailed plans for a mid‑2025 rate case featuring the formula rate plan, with ongoing attention to allowed ROE concerns while leveraging a supportive policy statement to reduce uncertainty. " " " "

Persistent challenges being incrementally addressed – Q4 offers clearer timelines and stronger regulatory alignment.

Inflation‑Driven Operational Cost Pressures

Q1 called out impacts on O&M and higher depreciation from IT investments; Q2 noted a lower inflation backdrop regionally; Q3 offered a detailed discussion on rising O&M costs, the lag in cost recovery, and plans to manage these pressures. " " " " " "

Q4 mentioned increased costs (O&M, D&A, and debt financing) that partly offset positive drivers, without a deep‐dive but implying the ongoing pressure. "

Cost pressures remain a concern though Q4 treats them more as a factor integrated into overall cost management rather than as a standalone focus.

Potential Equity Dilution Risks from Capital Raising Activities

In Q1 the company described a significant $750M equity offering and highlighted future incremental external financing needs; Q2 discussed block equity drawdowns and the exploration of ATM programs; Q3 noted lowered expected annual equity run rates and explored various financing alternatives. " " " " " "

Q4 noted that share dilution from equity issuance partially offset positive financial drivers and continued to use block equity and ATM programs in line with capital investment needs. " "

A consistent focus on managing dilution risk, with evolving financing strategies suggesting a moderated risk profile over time.

Operational Challenges (Planned Outages and Increased O&M Costs)

Q1 described planned outages at Palo Verde with minor O&M delays and higher IT-related depreciation; Q2 highlighted the major Four Corners outage and a modest overall increase in O&M costs; Q3 provided more detailed planning for outages and noted deliberate O&M cost increases offset by cost management actions. " " " " "

Q4 referenced increased O&M, D&A, and financing costs as headwinds that offset some positive factors, with fewer operational specifics provided compared to earlier periods. "

Operational challenges have been consistently managed through proactive planning; recent calls rely on broader financial offsets rather than detailing individual outages.

Previously Emphasized Topics No Longer Prominent (Energy Efficiency, Distributed Generation Adoption, Wildfire Risks)

Q1 featured active discussion on energy efficiency trends, impacts of DG adoption on residential sales, and comprehensive wildfire risk mitigation strategies, including community engagement and technological deployment. " " "

Q4 showed minimal mention of energy efficiency and DG, with only a brief reference to wildfire risks in the context of a new legislative measure (House Bill 2201). "

A marked decline in prominence – these topics have largely receded from focused discussion in recent periods.