Q4 2023 Entergy Corporation Earnings Call
Good morning, My name is Rob and I'll be your conference operator today at this time I would like to welcome everyone to the introduced fourth quarter 2023 earnings Conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question during this.
Time simply press Star followed by the number one on your telephone keypad. If you would like to withdraw your question again prestige Star one. Thank you I will now turn the call over to Bill Abler, Vice President of Investor Relations for Entergy Corporation.
Yeah.
Bill Abler: Good morning, and thank you for joining US we will begin today with comments from <unk>, Chairman and CEO drew Marsh and then Kimberly Funky and our CFO will review results in an effort to accommodate everyone who has questions. We request that each person ask no more than two questions in today's call management will make certain forward looking statements.
Actual results could differ materially from these forward looking statements due to a number of factors, which are set forth in our earnings release, our slide presentation, and our SEC filings Entergy does not assume any obligation to update. These forward looking statements management will also discuss non-GAAP financial information reconciliations to the applicable GAAP measures are included in.
Bill Abler: Today's press release and slide presentation, both of which can be found on the Investor Relations section of our website and now I will turn the call over to drew.
Thank you Bill and good morning, everyone.
We are reporting strong results for another successful year, our 2023 adjusted earnings per share was $6 77.
Andrew S. Marsh: In the top half of our guidance range once again delivering steady predictable results.
Our strategy is rooted in creating value for our four key stakeholders, our customers employees communities and owners.
Andrew S. Marsh: With understanding what our customers need from us to be successful.
Built our investment plan to meet those needs, including new generation transmission and distribution investments to support customer strong industrial growth and de carbonization goals as well as to improve reliability and resilience all the while prioritizing projects with affordability in mind.
Our customer centric approach has served us well.
We're confident we will continue to create meaningful value.
Starting with the customer or 2023 was another strong year for growth.
Last year, we signed 61, new electric service agreements these contracts represent more than one three gigawatts of generation capacity and about $250 million of the annual adjusted gross margin.
Our outlook anticipates, most but not all of these contracted volumes to come to fruition.
Andrew S. Marsh: And our forecast probability weights each prospect.
Data centers are a hot topic and as you know we've seen interest in our service area.
Few weeks ago, Mississippi, Governor Reed called a special session to finalize a legislative package to bring a large Amazon web services or AWS.
Jackson, Mississippi.
AWS is investing $10 billion the largest economic development project in the states history to build two hyperscale datacenter complexes that are expected to come online over a three year period, starting in 2025.
The project will create at least 1000 ongoing high paying tech jobs.
Well, a significant economic benefits to the state and local communities.
In addition, the legislation provides the approval entergy Mississippi's investment in transmission and generation to serve the facility.
Andrew S. Marsh: It also permits entergy, Mississippi to recover carrying costs during construction, which lowers the total cost for customers and supports entergy Mississippi's credit.
In addition to the data centers.
Our growth story continues to develop and diversify for example, two projects supporting production of electric vehicle batteries as well as the lumber facility upgrade were announced in the fourth quarter.
We also signed up new customers in the LNG and blue hydrogen spaces.
The developers for these projects expect sustainable affordable reliable and resilient service from Entergy utilities.
The ongoing interest from potential customers informed and affirms our expectation for very strong growth.
Customer affordability is a key area of focus.
Andrew S. Marsh: Some of the actions we are taking include pursuing loans and grants to offset the cost of much needed investment.
Andrew S. Marsh: Several of our operating companies submitted part one application to the D. L E loan programs office totaling $4 7 billion for a variety of projects related to the clean energy transition.
Our utilities also submitted eight preliminary proposals for grid resilience and innovative partnerships our grip program funding.
Andrew S. Marsh: Additionally, some of our operating companies are partnering with their states to apply for funding from other federal sources. This is building off the successful efforts in 2023, including our Louisiana utilities support for the states hero application.
Which resulted in a grant for Louisiana $500 million strategic energy initiative.
And our Texas utility support to the Iga, a hydrogen hub application, which resulted in a $1 2 billion grant for high velocity.
Andrew S. Marsh: Everything they do starts with safety when it comes to safety. Our work is never done because we believe zero harm is possible.
Andrew S. Marsh: While focusing on safety introduced generation fleet had an outstanding year.
Andrew S. Marsh: Even with challenges from record breaking heat this past summer, we achieved our best forced outage rate since 2011.
Andrew S. Marsh: Not only did we meet our customers' demands, but we also exported power to other utilities in MISO at the moments that matter.
Andrew S. Marsh: That performance has continued into 2020 for winter storm Heather hit our service area in January and we set a new winter peak.
Andrew S. Marsh: Once again, our fleet performed very well and we maintained reserve capacity comfortably above our customer demand.
Andrew S. Marsh: Our power delivery team has also made important strides this year completing work that improves reliability and resilience serve new customers and helps attract new economic development to our region.
Andrew S. Marsh: 2023 we improved reliability performance with the lowest outage frequency in the last decade.
Andrew S. Marsh: [noise] stakeholder engagement also continues to be a focus area.
Andrew S. Marsh: In 2023, we broadened our engagement efforts to expand our conversations with a wide group of stakeholders, including customers employees elected leaders community leaders vendors and of course, our regulators.
Andrew S. Marsh: And each of our jurisdictions, including at the federal level.
Andrew S. Marsh: We want to understand their perspectives and ensure that we communicate clearly what we are trying to do why we are doing it and how it benefits customers and communities.
Andrew S. Marsh: By effectively engaging with stakeholders, we can foster constructive regulatory and policy environment and our customers communities employees win.
Andrew S. Marsh: While we also deliver on our commitment to provide steady predictable earnings and dividend growth for our owners.
Speaker Change: Of course.
Speaker Change: The proof is in the outcomes and we made important progress on our regulatory objectives over the last few months.
Speaker Change: Starting at the federal level in November FERC issued notice of denial of the request for rehearing on the uncertain tax position in sale leaseback case.
Speaker Change: First order explicitly stated that the rehearing request would not be redressed and a future order.
Speaker Change: Both parties have filed appeals with the fifth circuit in a court could come to a decision later this year.
Speaker Change: Turning to the retail level, we have seen progress on accelerated resilience is extremely important for the security of all our stakeholders.
Speaker Change: Especially our coastal customers and communities.
Speaker Change: Entergy, New Orleans shared polling results with the council members to show that the community supports efforts to accelerate resilience and they're willing to pay for it.
Speaker Change: The city Council's climate and sustainability Committee has taken first steps to move in this direction.
Speaker Change: Recommending approval of the $110 million project that was granted 50% matching funds through the federal grip program.
Speaker Change: This is a good first step and improved resilience for one district in New Orleans, but it's far from the final step.
Speaker Change: The Committee has asked Entergy, New Orleans to shorten phase one two or three year period, rather than the five years and our initial proposal to allow the council to evaluate progress sooner before moving to the next phases of the plan.
Speaker Change: The matters on today's city Council agenda.
Speaker Change: Our three year plan will align with the previous finally with project optimized to fit within the shorter timeframe, we expect to submit the updated plan in the next few weeks.
Speaker Change: Yeah.
Speaker Change: Entergy, Louisiana. The hearing was moved to early April to get staff and opportunity to ensure the plan that is consistent with the latest thoughts on the forthcoming resilience rules.
Speaker Change: In the meantime, recent technical conferences have allowed parties to continue advancing the resilience conversation.
Speaker Change: Howard has continued to be supportive of greater resilience and we still expect an L. P. S. C decision on this matter in the second quarter.
Speaker Change: The PUC T finalize the Texas resilience acts rulemaking, which provides a framework that supports greater resilience investments and efficient recovery.
Speaker Change: Did not received everything we wanted in the rulemaking.
Speaker Change: Particularly around credit support for you for utility already stretching to meet significant customer growth needs.
Speaker Change: Still entergy, Texas intends to submit its planned later this quarter. The commission will have 180 days to act on this filing and we expect a decision in late summer of this year.
Speaker Change: In addition.
Speaker Change: Texas voters approved funding for the Texas Energy Fund.
Speaker Change: Of the $5 billion appropriated $500 million has been designated for grant to non ERCOT utilities municipal and co op.
Speaker Change: We intend to participate for the benefit of our customers communities and expect more details in the coming months.
Speaker Change: Yeah.
Speaker Change: In December Entergy, New Orleans received certification of Hurricane idle costs.
Speaker Change: Council's order determined that all restoration costs, where prudent.
Speaker Change: This approval fully resolves recovery of all Ida costs.
Speaker Change: As a reminder, entergy New Orleans received securitization funds in early 2023.
Speaker Change: In advance of the final certification.
Speaker Change: This follows a similar path, where entergy, Louisiana received $1 billion of securitization funds for either well in advance of final costs certification.
Speaker Change: Financial resilience through fair inefficient storm cost recovery is critical for utility credit to ensure low borrowing costs for customers.
Speaker Change: Timely recovery of storm costs also avoids carrying costs and save customers money.
Speaker Change: In addition to affordability strong credit is important for storm response, and making investments to support economic growth in our communities.
Speaker Change: Our gas LDC sale process is moving along nicely and we made the initial regulatory filings to request approval for the sale.
Speaker Change: We are targeting to close the transaction around the third quarter of next year. After a transition period to allow the buyer to setup all support systems.
Speaker Change: The stakeholder engagement process has been going well and the closing timeline could be accelerated if regulatory reviews are completed this year.
Speaker Change: Okay.
Speaker Change: In January the Louisiana Public Service Commission approved two renewable resources totaling 225 megawatts.
Speaker Change: Both projects are expected to come online in 2025.
Speaker Change: And Entergy Louisiana's request to streamline the acquisition of up to 3000 megawatts of new solar resources. All testimony has been filed.
Speaker Change: And we are making progress in settlement negotiations.
Speaker Change: Parties filed a request to suspend the procedural schedule while discussions continue.
Speaker Change: Entergy, Louisiana is optimistic it can achieve a constructive resolution a constructive resolution of this case that will facilitate our ability to expand renewable resources to support customer needs.
Speaker Change: And finally.
Speaker Change: The unanimous settlement of Entergy, Arkansas annual FRP filing was approved new rates were effective in January.
Speaker Change: Turning for a moment to the communities we serve in 2023, we created more than $135 million in economic value for our communities.
Speaker Change: That includes $25 million of direct shareholder contributions primarily for bill payment assistance.
Speaker Change: As well as facilitation for light heap assistance employee volunteer supporting tax preparation and many other activities.
Speaker Change: One current example is our employees, helping our communities celebrate black history month.
Speaker Change: We are very proud of the work of our employees and our corporate social responsibility team as they provide critical health to strengthen the communities, we serve and our efforts haven't gone unnoticed.
Speaker Change: Newsweek recently named Entergy as one of America's most responsible companies.
Speaker Change: We were also recognized as one of the nation's top 50, most community a community minded corporations by the points of light Foundation and the highest ranked utility.
Speaker Change: And Entergy was once again included in the Dow Jones Sustainability Index North America Index.
Speaker Change: The 22nd consecutive year that we've been included on a selective DJ Assai index.
Speaker Change: Okay.
Speaker Change: These are just a few examples of the awards, we've received that recognize our efforts to create value for our customers employees and communities.
Speaker Change: Looking ahead in 2023.
Speaker Change: We continue to lay the foundation for long term growth in customer benefits for entergy and our stakeholders.
Speaker Change: As I mentioned at the start our strategy begins with helping our customers achieve their goals.
Speaker Change: The unique industrial growth opportunity in front of us.
Speaker Change: We plan to invest $20 billion over the next three years to make our fleet cleaner and to make our system more reliable and resilient.
Speaker Change: Just over half of our capital plan $11 billion is for transmission and distribution to improve reliability and resilience and to serve customer growth.
Speaker Change: This includes projects from MISO with annual transmission planning process never approved in December.
Speaker Change: For 2023, <unk> identified 34, new projects in our service area, including including major projects in Southeast, Texas, and South Louisiana to support strong growth in those regions.
Speaker Change: Our transmission and distribution investment plan includes $1 billion for accelerated resilience.
Speaker Change: Which can be accomplished within our current regulatory frameworks, where frameworks and credit requirements.
Speaker Change: Just a reminder, this is less than our recommendation.
Speaker Change: But we can increase our resilience investment as we received approvals from our regulators that include credit supportive recovery mechanisms.
Speaker Change: We are planning to invest $8 billion in generation. This includes roughly $2 billion for new owned solar as well as the remaining investment to complete the Orange County advanced power station, which we expect to be in service in 2026.
Speaker Change: Of course, our customers are focused on clean energy.
Speaker Change: To that end, we are working closely with customers and vendor partners to make carbon capture and sequestration a reality.
Speaker Change: Our plan also balances customer affordability, which is a core tenet of sustainability.
Speaker Change: We are working to improve efficiencies and reduce costs.
Speaker Change: Allowing us to offset the impact of growth and inflation and maintain a flat O&M outlook as well as become more efficient with our capital investment dollars.
Speaker Change: And as I discussed earlier, we are pursuing federal and state grant and loan funding opportunities.
Speaker Change: Bringing new customers into our service area also spreads the cost of customer centric investments over a larger customer base and improved local economies, which helps with the affordability.
Speaker Change: And finally other actions like managing our natural gas inventory and ensuring generator operations at moments that matter.
Speaker Change: Cruise reliability and helps avoid unexpected spikes in fuel and purchase power costs for our customers.
Speaker Change: Yeah.
Speaker Change: 2023 was another successful year for Entergy and given the opportunity ahead of US we still have a lot of work to do.
Speaker Change: Our proven track record gives us the confidence that we will continue to be successful.
Speaker Change: We are keenly focused on execution across key customer operational regulatory and financial fronts.
Speaker Change: By continuing to put customers first we will deliver premium value for each of our key stakeholders.
Speaker Change: Before I turn it over to Kimberly I'm excited to announce that we will host an analyst day on June 6th and seventh.
Kimberly Funky: And this year, we're returning to our home City New Orleans.
Speaker Change: Continue the conversation on the significant opportunity that we see ahead, including a five year view as we've done in the past and now Kimberly will review our financial results for the year as well as our outlook.
Kimberly Funky: Thank you drew good morning, everyone.
Kimberly Funky: As drew said 2023, it was another successful year.
Kimberly Funky: Executed on key deliverables throughout the year and we are confident in our continued success.
Kimberly Funky: We are initiating our 2020 for guidance and affirming our longer term outlooks consistent with what we provided at EI.
Kimberly Funky: I will start by reviewing results for 'twenty, three and then provide an overview of key business drivers for 2024.
Kimberly Funky: Starting on slide three entergy adjusted EPS for 2023 was $6 77.
Kimberly Funky: 35 cents higher than 2022.
Kimberly Funky: Key drivers are shown on slide four our earnings growth reflected the effects of investments, we made to deliver quality service that benefits our customers and communities.
Kimberly Funky: That includes regulatory actions as well as higher depreciation expense taxes other than income taxes and interest expense.
Kimberly Funky: O&M spending was lower compared to 2022.
Kimberly Funky: This was driven by lower compensation and benefits costs.
Kimberly Funky: We're not in nuclear and nuclear generation expenses, and the elimination of myself generate or service cost, which was largely offset by lower generate our ancillary revenues.
Kimberly Funky: Weather was a benefit for the year.
Kimberly Funky: Typically in the third quarter with an exceptionally hot Sandler.
Kimberly Funky: Excluding weather retail sales volume was relatively flat for the year.
Kimberly Funky: Industrial growth was offset by residential and commercial declines.
Kimberly Funky: Industrial sales growth was driven by new and expansion large industrial customers.
Kimberly Funky: Mainly in the primary metals industrial gases and petrochemicals industries.
Kimberly Funky: Industrial sales were strong, but not as robust as anticipated going into the quarter due to outages at customers' facilities and slower ramp ups from new and expansion customers.
Kimberly Funky: We can tell you to be confident in our industrial growth expectations as sector margins and commodity spreads remained strong.
Kimberly Funky: And we continue to grow our backlog of signed electric service agreements.
Kimberly Funky: Full year operating cash flow shell on slide five was nearly $4 3 billion significantly higher than in 2022.
Kimberly Funky: Fuel and purchased power payments were the largest driver.
Kimberly Funky: Higher non capital storm spending in 2022, and our pension contributions also contributed to the increase.
Kimberly Funky: The receipt of New Orleans storm securitization proceeds and the effects of the EWC wind down in 2022 provided partial offsets.
Kimberly Funky: Moving to slide six as we expected we closed 2023 was solid credit metrics.
Kimberly Funky: Our book at <unk> to debt was 14, 3% and we believe our year ended each result will be slightly above this no Moody's will ultimately perform their own calculations.
Kimberly Funky: We expect to continue to be within the rating agencies' expectations every year in our outlook period.
Kimberly Funky: Total healthy credit is an ongoing focus given the capital investment needed to support our customer growth.
Kimberly Funky: We made great progress against our equity needs as shown on slide seven.
Kimberly Funky: We contracted roughly $360 million equal ATM forwards in the fourth quarter, we fully closed out our equity needs through 2024 and by settling 80 million as these new floor, where it's along with $50 million previously contracted forwards.
Kimberly Funky: The remaining $280 million of forwards contracted in the quarter will be applied against the $1 4 billion of equity needs for 2025 and 2026.
Kimberly Funky: In other words as we enter 2024, we have already locked in 20% of our 2025 and 2020.
Kimberly Funky: Okay.
Kimberly Funky: On slide eight we are in most of our 2024, adjusted EPS guidance and affirming outlooks through 2020.
Kimberly Funky: Our adjusted EPS guidance range for 2024, and $7 five to $7 35, with a midpoint of $7 20.
Kimberly Funky: We continue to expect to achieve steady predictable, 6% to 8% annual adjusted EPS grip.
Kimberly Funky: Slide nine highlights the key drivers for 2024.
Kimberly Funky: On a weather adjusted basis, we expect retail sales volumes to be 4% higher than 2023.
Kimberly Funky: We expect residential sales growth of roughly 1%, primarily driven by customer growth and higher weather adjusted usage per customer.
Kimberly Funky: The effects of customer centric investments are also reflected in our guidance, including regulatory actions depreciation expense and taxes other than income taxes.
Kimberly Funky: D. C is also expected to increase with large long term capital projects like Orange County advanced power station.
Kimberly Funky: Interest expense both at the utility and parent is expected to increase due to higher interest rates, while it's higher debt balances to support our capital plan.
Kimberly Funky: Utility O&M. It is expected to return to more normal levels at approximately $2 7 billion.
Kimberly Funky: To achieve this we expect lower spending for nuclear generation and power delivery.
Kimberly Funky: We're maintaining our focus on continuous improvement to manage our spending levels.
Kimberly Funky: To the extent other variables move throughout the year, our O&M they often.
Kimberly Funky: Our goal is to deliver steady predictable results and we can achieve that by managing spending is needed.
Kimberly Funky: The appendix of the webcast presentation will contain additional information on the specific drivers, including detailed quarterly considerations and earning sensitivity.
Kimberly Funky: 2023, it was another successful year for Entergy, our adjusted EPS was once again in the top half of our guidance range as we continue to deliver steady predictable adjusted EPS and dividend growth.
Kimberly Funky: We continue to prioritize the needs of our customers to create value for our key stakeholders.
Kimberly Funky: We're excited about our prospects for the future and are well positioned to execute and deliver successful customer operational and regulatory outcomes.
Speaker Change: And now the Entergy team is available to answer questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad well pause for just a moment to compile the Q&A roster.
Kimberly Funky: And your first question comes from the line of Paul Zimbardo from Bank of America. Your line is open.
Paul Andrew Zimbardo: Paul Your line is open.
Paul Andrew Zimbardo: Hi, Good morning team can you hear me now.
Paul Andrew Zimbardo: Yes, good morning, Paul Hi, great. Thanks.
Paul Andrew Zimbardo: Thanks for taking the time.
Paul Andrew Zimbardo: My first question was about the I know within your GAAP results you favorably adjust out that large tax item from the tax audit.
Paul Andrew Zimbardo: Was that did you receive the cash on that is something that benefits shareholders. I know you have the.
Paul Andrew Zimbardo: The 100 million for customers, but if you could just give some flavor of how that impacts kind of the company's benefit as well as the ratepayers.
Speaker Change: Sure Paul Thanks for the question the tax item was a resolution of the 2016 to 2018 audit it.
Speaker Change: And as you noted on EPS, we adjusted those effects out of earnings from a cash perspective, there's no real cash effect of that is done in a while.
Speaker Change: And the tax deposits had taken care of that so no significant cash effect there.
Paul Andrew Zimbardo: Okay, great. Thank you for clearing that went up.
Speaker Change: And then also I noticed even just since the <unk> update you increase the sales expectations for 2024 pretty much across the customer classes. Just what are you seeing on the ground that made you more confident or change upward. So recently.
Speaker Change: Yes, certainly I have played in its preliminary we continue to adjust and modify that as I noted our industrial customers.
Speaker Change: We expect them to be strong in 2024, and you probably saw the announcement in Mississippi around significant customer there that are.
Speaker Change: That provides economic opportunities in Mississippi, but we continue to refine and modify our forecast as we as we move from <unk> into quarter end.
Speaker Change: Yeah, and I would just add.
Speaker Change: Come to half of this year.
Speaker Change: We were a little lower than expected. So are out looks for 'twenty three haven't changed as much as it might indicate by the big bump.
Speaker Change: But it's the it's the some of the things that Kimberly talked about for 2003.
Speaker Change: With customers, having an unplanned outages and slower ramp rates that is also boosting that number.
Speaker Change: Okay. Okay.
Speaker Change: Great. Thank you and then if I can quickly follow up on that is there any initial estimate or way to think about how much infrastructure you could need to build for that large mississippi customer.
Speaker Change: Sure.
Speaker Change: Yeah, we haven't broken that out specifically you can see that we continue to refine our capital plan and pad.
Speaker Change: <unk> added some capital in Mississippi in order to support that and ensure that we have clean energy for our customers in Mississippi, but we havent given specific estimates related to that customer.
Speaker Change: Okay, great. Thanks, a lot team.
Speaker Change: Thank you Paul.
Speaker Change: Our next question comes from the line of Angie serves this keep from Seaport. Your line is open.
Angie: Thank you. So I guess just following up to Paul's question. So is this capex updates still coming meaning as we head into your analyst day, we should actually expect at this.
Angie: Celebrating load growth translates into higher Capex.
Angie: Yeah, Angie I E. We laid out a capital plan, that's pretty close to what tier it's a couple of hundred million more here.
Angie: And we continue to refine our capital plan prioritized around customers that we're aware of we also show the EI additional capital that could be added there was additional transmission.
Speaker Change: Additional clean energy for to support customers and a couple of other areas and so we continue to work to prioritize those but I would think about this as this is our.
Speaker Change: Capital plan that we're planning for we're continuing to prioritize it as we move into the analyst day I'd expect we'd show you five years of capital and.
Speaker Change: So that would be a view that you would get at that point.
Speaker Change: So some of that capital that we've talked about is coming into this plan.
Speaker Change: And then we are finding ways to manage with all of the capital needs and Thats I think that'll be a key discussion point at the analyst day.
Speaker Change: Okay.
Speaker Change: Hinging topics on <unk>.
Speaker Change: Theory and the.
Speaker Change: And resolution of CRE issues in both New Orleans and.
Speaker Change: And Louisiana is there any timeline on those and if.
Speaker Change: Should we actually linked any resolution of C related issues to the resilience capex, maybe as a way to pay for some of the spending.
Speaker Change: Hi, Angie it's rod good morning, you're touching on I think the heart of the conversations that both Louisiana and New Orleans.
Rod: Around CRE no there is not a ton.
Angie: Timeline by which the parties have to come to some resolution on CRE, but I think the the fact that FERC.
Rod: As already decided with regard to Louisiana as efforts to request to rehearing certainly our settlement with Arkansas, Mississippi has de risks their CRE, but our conversations in new Orleans around settlement.
Rod: Ongoing.
Rod: There is.
Rod: You would think about.
Rod: The ancillary or complementary.
Rod: Regulatory dockets, both in Louisiana, and New Orleans that could be affected by a series settlement.
Rod: I think you were touching on whats been at the heart of the ongoing conversations and that is is there an opportunity for new Orleans or the state of Louisiana to provide benefits to its customers through a series of them much in the same way that Mississippi, and Arkansas and in this case I believe.
Rod: <unk> New Orleans.
Rod: Influence.
Rod: Customers' capacity to pay for.
Rod: For resiliency investments none of those things are settled and I certainly cant.
Rod: Talk about where we are in the negotiations, but but I think it's reasonable to assume that the conversations we're having.
Rod: And to figure out how a series of it might might benefit customers.
Rod: The resiliency front.
Speaker Change: Perfect. Good luck. Thank you.
Speaker Change: Okay. Thanks, Andy.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Your next question comes from the line of Travis Miller from Morningstar. Your line is open.
Travis Miller: Thank you good morning, everyone.
Travis Miller: Good morning.
Travis Miller: Just a couple of clarifying questions here some back to follow up on the load growth number that 8% industrial for this year.
Travis Miller: Could estimate how would you break that down in terms of the.
Travis Miller: The recapture for lack of a better word of what you were expecting in 2023 and what's a good kind of go forward two year three year.
Travis Miller: A run rate on a core basis, so that makes sense.
Speaker Change: Yeah, Travis what we've talked about going forward is a 6% to 7% are <unk>.
Travis Miller: CAGR three the 26 outlook period, what Youre seeing as you noted in 'twenty four is coming off of the base year of 'twenty three that load will be a little lumpy as it comes in over that period, but we.
Travis Miller: We expect a 6% to 7% growth rate on those industrials over that outlook period.
Speaker Change: Okay and as far as the recapture piece you know we don't have a precise number for that is probably yes.
Travis Miller: One or 2% does not.
Travis Miller: The component of it probably in that range.
Speaker Change: Yes, Okay, just doing the math there.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Other one on the resilience the new Capex that you added in is that part of.
Speaker Change: The Louisiana and New Orleans plan.
Speaker Change: <unk> proposed or is that in addition to.
Speaker Change: Yes. It is true that we have been less than a $1 billion of Brazilian spending in our capital plan over this period.
Speaker Change: Once decisions are made in Louisiana, and the ones around the recovery mechanisms and the pace around that then we would that could be additional capital, but what's in that capital plan is as close to that $1 billion number.
Speaker Change: And that's part of the $1 billion as part of the filed plans.
Speaker Change: As part of the plan okay. Okay.
Speaker Change: Got it so that number would go down in terms of potential capex relative to what you've added.
Speaker Change: No I don't think that the filing just to be clear the filing is more than what we have included what we've included in what we can.
Speaker Change: You can spend an hour in our given mechanisms that we have and as you probably know we requested accelerated mechanisms in both Louisiana and New Orleans, so that we can accelerate that spending and so depending on those mechanisms that could provide additional opportunity for capital there.
Speaker Change: Okay. Okay very good and then one other quick clarifying the $2 billion of solar.
Speaker Change: How much of that is through the Rfps that are out right now and how much is that through either traditional ratemaking or fewer.
Speaker Change: Future Rfps that you anticipate.
Speaker Change: I don't have it.
Speaker Change: Breakdown of that.
Speaker Change: We do have quite a bit which isn't necessarily going through rfps.
Speaker Change: Certainly in Arkansas and Mississippi.
Speaker Change: And so I think there's a good chunk of that but I don't have a precise number for you.
Speaker Change: Okay no problem.
Speaker Change: Thanks, a lot that's all I had.
Speaker Change: Thank you.
Speaker Change: And again, if you would like to ask a question press star one on your telephone keypad.
Speaker Change: And there are no further questions at this time, Mr. Abler I will now turn the call back over to you.
Speaker Change: Thank you Rob and thanks, everyone for participating this morning, our annual report on Form 10-K is due to the SEC on February 29, and provides more details and disclosures about our financial statements events that occur prior to the date of our 10-K filing that provide additional evidence of conditions that existed at the date of the balance sheet.
Speaker Change: Would be reflected in our financial statements in accordance with generally accepted accounting principles also as a reminder, we maintain a web page as part of <unk> Investor Relations website called regulatory and other information, which provides key updates of regulatory proceedings and important milestones on our strategic execution, while some of this information.
Speaker Change: It may be considered material information you should not rely exclusively on this page for all relevant company information and this concludes our call. Thank you very much.
Speaker Change: Yes.
Speaker Change: [music].