Q2 2025 Entergy Corp Earnings Call
Greg: Good morning. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to Entergy's second quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's 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. Once again, star one. And if you'd like to withdraw your question, press star one again. Thank you. I will now turn the call over to Liz Hunter, Vice President of Investor Relations for Entergy Corporation. Liz.
Good morning.
My name is Greg and I will be your conference operator. Today at this time I would like to welcome everyone. To energies second quarter 2025 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 1 on your telephone keypad. Once again, star 1, and if you'd like to withdraw your question press star 1 again, thank you.
Liz Hunter: Good morning. Thank you, Greg, and thanks to everyone for joining this morning. We will begin today with comments from Entergy's Chair and CEO, Drew Marsh, and then Kimberly Fontan, our CFO, will review results. 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 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.
I will now turn the call over to Liz Hunter, Vice President of Investor Relations for Energy Corporation. Liz.
Good morning. Thank
You Greg and thanks to.
Joining this morning, we will begin today with comments from introduce chair and CEO through Mars, and then Kimberly Fontaine, our CFO will review results.
In today's call, management will make certain forward-looking statements.
Actual results could differ materially from these 4 looking statements, due to a number of factors which are set forth in our earnings release, our slide presentation and our SEC filings. Energy does not assume any obligation to update these forward-looking statements
Management will also discuss non-gaap financial information.
Of our website. And now I will turn the call over to Drew.
Kimberly Fontan: Thank you, Liz. Good morning, everyone. Today, we are reporting second quarter adjusted earnings per share of $1.05. Our progress through the first half of the year keeps us firmly on track to achieve 2025 results in line with our guidance. We are raising our outlooks driven by our higher capital plan to meet customer expectations. We aspire to be the premier utility and to create sustainable value for each of our key stakeholders: our customers, employees, communities, and owners. Our customers are listed first, so I'll start there. We have over 3 million customers, and most of them are residential. For the first time since we began tracking Net Promoter Score, we achieved a result that ranks in the first quartile for utility residential service over the past 12 months across our enterprise and using JD Power data.
Thank you, Liz. Good morning, everyone.
Today we are reporting second quarter adjusted earnings per share of a dollar and 5.
Our progress through the first half of the Year, Keeps Us firmly on track to achieve 2025 results in line with our guidance.
We are raising our outlooks driven by our higher Capital plan to meet customer expectations.
Expired to be the premier utility and to create sustainable value for each of our key stakeholders: our customers, employees, communities, and owners.
Customers are listed first, so I'll start there.
We have over 3 million customers. And most of them are residential for the first time since we began tracking net promoter score, we achieved the result that ranks in the first quartile for utility residential service over the past 12 months.
Kimberly Fontan: We are not first quartile in every jurisdiction or in every category. Still, we are excited about our progress, and we are energized by the opportunity ahead to further improve our service to our customers. Our industrial growth opportunities remain robust. We continue to work with state and local leaders to attract businesses to our service area with our economic development model driven by our vertically integrated, customer-focused electric company with welcoming communities and the economic advantages of the Gulf South. We provide one-stop shop technical solutions while we bring key parties together to rapidly meet the needs of new customers. At the same time, we ensure strong protections for our existing 3 million customers and maintain our credit. Today, we are pleased to announce that we have secured significant new growth in Arkansas that will bring benefits to existing customers as well as communities in the state itself.
Across our Enterprise and using JD Power data.
We are not first quartile in every jurisdiction or in every category still, we are excited about our progress and we are energized by the opportunity ahead to further, improve our service to our customers.
Our industrial growth opportunities remain robust.
We continue to work with state and local leaders to attract businesses, to our service area, with our economic development model, driven by our vertically integrated customer focused Electric Company.
with welcoming communities and the economic advantages of the Gulf South.
We provide 1-stop shop, Technical Solutions while we bring key parties together to rapidly meet the needs of new customers.
The same time, we ensure strong protections for our existing 3 million customers and maintain our credit.
Kimberly Fontan: With this addition, we expect our four-year industrial sales growth rate to be approximately 13%. Consistent with our practice, we aren't commenting further on specifics or customers, although we anticipate making regulatory filings soon, which will include additional details. We are updating our four-year capital plan to $40 billion, which will enable us to serve increased load and grow our renewable portfolio across our jurisdictions. As a point of reference, we have signed roughly 8 gigawatts of electric service agreements since the beginning of last year. As a result, our four-year capital plan includes significant investment for customer-driven generation, including approximately 3 gigawatts of solar, 1.4 gigawatts of battery storage, and 8 gigawatts of highly efficient gas units. Some of these resources are planned to come online beyond our four-year plan period.
Today, we are pleased to announce that we have secured significant new growth in Arkansas that will bring benefits to existing customers, as well as communities in the state itself.
With this Edition, we expect our 4-year Industrial Sales growth rate to be approximately 13%.
Consistent with our practice. We aren't commenting further on specifics or customers although we anticipate making regulatory filings soon which will include additional details.
We are updating our 4-year Capital plan to 40 billion dollars which will enable us to serve increased load and grow our renewable portfolio. Across our jurisdictions.
At the point of reference, we have signed roughly 8, gigawatts of electric service agreements since the beginning of last year.
As a result, our 4-year Capital plan includes significant investment.
For customer-driven Generation, including approximately 3, gigawatts of solar 1.4 gigawatts of battery storage and 8 gigawatts of Highly efficient gas units.
Kimberly Fontan: During the last quarter, we disclosed that we entered into an exclusivity agreement for power island equipment, including 15 combined cycle combustion turbines and two simple cycle combustion turbines. That is in addition to the Orange County Delta Blues and Legend projects. Collectively, these turbines provide 15 gigawatts of capacity. That leaves 7 gigawatts for future customer growth needs with deliveries for commercial operations between 2029 and 2031. Our strategy to use standardized equipment and designs helps us effectively manage costs and schedule for our customers. Our customer pipeline continues to be robust, including our data center pipeline, which remains in the 5 to 10 gigawatt range. And significant interest remains in our traditional industrial segments as well. Our economic development model attracts large new customers that contribute to our community's growing jobs and tax base. They also share in costs that would otherwise be covered by existing customers.
Some of these resources are planned to come online beyond our four-year plan period.
During the last quarter, we disclose that we entered into an exclusive agreement for power Island equipment including 15 combined cycle, combustion turbines and 2 simple cycle combustion turbines.
As in addition to the Orange County, delta blues and Legend projects.
Collectively. These turbines provide 15 gigawatts of capacity.
That leaves 7, gigawatts for future customer growth needs with deliveries for commercial operations between 2029 and 2031.
Our strategy to use standardized equipment and Designs helps us effectively manage costs and schedule for our customers.
Our customer pipeline continues to be robust.
Including our data center pipeline, which remains in the 5 to 10 gigawatt range.
And significant interests remain in our traditional industrial segments as well.
Our economic development model attracts large new customers that contribute to our communities, growing jobs and the tax base.
Kimberly Fontan: The economic impact of these projects on our communities is substantial and yet another sign to existing customers and potential customers that great things are happening in Entergy's service area. While we've made progress on our customer service, storms create moments that matter. We spoke to you at our analyst day last summer about our plans to better manage storms. One year removed from that conversation and in the heart of storm season, take a moment to review our progress. To start, we are executing phase one of our accelerated resilience program. We have more than $2 billion approved, mostly in Entergy, Louisiana.
They also share and costs that would otherwise be covered by existing customers.
The economic impact of these projects on our communities is substantial and yet another sign to existing customers and potential customers that great things are happening in our service area.
While we've made progress, on our customer service, the storms create moments that matter. We spoke to you in our analyst day last summer, about our plans to better manage storms 1 year, removed from that conversation and in the hardest storm. Season take a moment to review our progress.
Kimberly Fontan: To date, we've invested roughly $400 million, and that includes energizing nine new substations designed to sustain both flooding and hurricane-force winds, installing over 8,000 hardened poles, while another 10,000 pole upgrades are in process, which is on top of the average annual run rate of 75,000 poles replaced system-wide. And in the coastal region of Texas, we've rebuilt two short transmission lines to harden standards. Earlier this month, Entergy Texas submitted its application for the Texas Energy Fund to support $200 million of resilience projects. We expect to complete about 30% of our phase one projects by year-end. As a reminder, we prioritize projects with the highest benefits, so these earlier projects will have a relatively higher impact. We plan to file later this year for the next phase of accelerated resilience to support continued progress.
To start. We are executing Phase 1 of our accelerator resigns program. We have more than 2 billion dollars approved mostly in energy, Louisiana,
Substations designed to sustain both flooding and hurricane-force winds.
Stalling over. 8,000. Hardened poles while another 10,000 pole upgrades are in process.
Which is on top of the average, annual run rate of 75,000 polls.
Replaced systemwide.
and in the coastal region of Texas, we've rebuilt 2 short, transmission lines to harden standards
Earlier this month energy Texas submitted its application for the Texas energy fund to support 2 million dollars of resilience projects.
We expect to complete about 30% of our Phase 1 projects by year end.
As a reminder, we prioritize projects with the highest benefits. So these earlier projects will have a relatively higher impact.
Kimberly Fontan: In addition to our accelerated resilience program, new transmission investments built to today's more stringent standards also improve the resilience of our grid. For example, we have several large 500 kV transmission projects in front of regulators in Louisiana and Texas that will provide resilience benefits while also supporting growth. The Mount Olive to Surretta line in North Louisiana, a line along the west bank of the Mississippi River in Louisiana through a growing industrial corridor, the Southeast Texas Area Reliability Project, or CTEX, and the Cypress to Legend line that will support strong growth in the Port Arthur area. These projects and the Babel to Weber line in Louisiana to be filed later this year total 460 miles and will represent about 20% of our 500 kV system once completed.
And plan to file later this year. For the next phase of accelerated resilience to support continued progress.
In addition to our accelerated resilience program, new transmission Investments built to today's more stringent standards, also improve the resilience of our grid.
For example.
We have several large 500 KV transmission projects in front of regulators in Louisiana and Texas that provide resilience benefits while also supporting growth.
Amount. All of this left a line in North Louisiana.
A line along the west bank of the Mississippi River in Louisiana through a growing industrial corridor.
The Southeast Texas area, reliability project.
Or CeX.
And the Cypress to Legend line that will support strong growth in the Port, Arthur area.
Kimberly Fontan: These projects will also loop existing transmission lines such that in the event if an event occurs at any point in the loop, power will be automatically diverted in another direction, avoiding customer outages. Altogether, we are planning $8 billion of transmission investment in our four-year capital plan, including $5.6 billion reviewed through MITOS MTEP process. In addition to system improvements, we ensure that we are prepared for storms through planning drills and vegetation maintenance. Technology is also part of the journey, and we've been experimenting with cameras and information systems on planes and drones and soon helicopters that fly power lines to gather data with a plan to ultimately feed AI, more quickly assess damage, and optimize the productivity of our teams on the ground. Capital deployment is critical, but it takes more than that to be premier.
These projects and the Babel to Weber line in the Louisiana to be filed, later this year. Total 460 Mi and will represent about 2. 20% of our 500 KV system once completed.
These projects will also Loop existing transmission lines such that in the event occur if an event occurs at any point in the loop power will be automatically. Diverted in another Direction. Avoiding customer outages
Altogether. We are planning 8 billion dollars of transmission investment in our 4 year Capital plan including 5.6 billion dollars reviewed through mitoses mtep process.
In addition to system improvements, we ensure that we are prepared for storms through planning drills, and vegetation maintenance.
Technology is also part of the journey and we've been experimenting with cameras and information systems on planes and drones and soon helicopters that fly power lines to gather data for the plan to ultimately feed AI.
More quickly assess damage and optimize the productivity of our teams on the ground.
Kimberly Fontan: To that end, our power delivery team is launching PD Strong, short for Power Delivery Strong, to transform our power delivery team. This includes everything from work management and capability building to behaviors and culture, all with an eye towards better serving our customers every day, but especially in moments that matter like storms. Our regulators are also supporting our storm response improvement efforts. In addition to approving resilience investment, Louisiana and Texas implemented new processes to expedite storm securitization, allowing operating companies to request recovery based on estimated storm costs and accelerated commission timelines for decisions. Those commissions, of course, retain their authority to determine the prudence of utility storm costs, and estimated costs would be trued up to actual costs once available.
Apple deployment is critical but it takes more than that to be premiere.
To that end. Our power delivery team is launching PD, strong short for power delivery strong.
The transform, our power delivery team.
This includes everything from work management and capability building to behaviors and culture, all with an eye towards better serving our customers every day. But especially in moments that matter, like storms.
Our Regulators are also supporting our storm response Improvement efforts. In addition to approving resilience investment, Louisiana and Texas implemented. New processes to expedite storm securitization allowing operating companies to request recovery based on estimated storm costs and accelerated commission timelines for decisions.
Those commissions, of course.
Retain their authority to determine the Prudence of utility storm costs.
Kimberly Fontan: Louisiana's expedited process for 2025 storm costs includes a commitment to review the storm cost-related financing order request at the subsequent commission meeting after the utility's filing. Accelerating storm cost recovery reduces carrying costs for our customers and supports the operating company's credit, which also keeps the cost for capital lower for our customers. This new process also gives confidence to vendors and mutual assistance partners that support storm recovery. Finally, as we deploy our capital plan throughout our service area, a smaller and smaller percentage of our infrastructure is exposed to storms along the coast, reducing our relative financial risk, which benefits our customers as well as our owners. These actions continue to build on our improved balance sheet and strong liquidity.
An estimated cost would be trued up to actual costs once available.
Louisiana's expedited process for 2025 storm. Costs includes a commitment to review the storm costs related. Financing order requests.
Subsequent commission meeting after the utilities filing.
Accelerating storm cost. Recovery reduces carrying cost for our customers and supports the operating companies credit, which also keeps the cost for Capital lower for our customers.
This new process also gives confidence to vendors and mutual assistance partners that support storm recovery.
Finally, as we deploy our Capital plan throughout our service area, a smaller and smaller percentage of our infrastructure is s is exposed to storms along the coast.
Reducing our relative Financial Risk, which benefits our customers as well as our owners.
Kimberly Fontan: We have made good progress over the last year reducing storm risk through accelerated resilience, hardening of our grid, financial readiness, and regulatory changes to improve outcomes for customers. And we have more plans for improvements still ahead. Meanwhile, we stand ready to respond for anything that comes our way. We have some other operational achievements that I'd like to also highlight. On July 1st, we completed the sale of our gas LDC businesses to Delta Utilities. The transition for customers was smooth because of the hard work and planning by many employees, including those who have moved to Delta Utilities, and we are extremely grateful for their efforts. The sale of that business allows us to focus on our core electric business. Safe and effective nuclear operations also remain a cornerstone for all stakeholders. This year, Waterford III and Grand Gulf are proudly celebrating 40 years of operations.
These actions continue to build on our improved balance sheet and strong liquidity.
We have made good progress over the last year in reducing storm risk through accelerated resilience, enhancing our grid's financial readiness, and implementing regulatory changes to improve outcomes for customers.
And we have more plans for improvements still ahead.
Meanwhile, We Stand ready to respond for anything that comes our way.
On July 1st, we completed the sale of our gas. LDC businesses to Delta utilities.
The transition for customers was smooth because of the hard work and planning by many employees, including those who have moved to Delta Utilities.
We are extremely grateful for their efforts.
The sale of that business allows us to focus on our core electric business.
Safe and effective nuclear operations also remain a cornerstone for all stakeholders.
Kimberly Fontan: The Waterford III refueling outage wrapped up in June on time and on budget. Work included replacement of all three low-pressure turbines, which will improve reliability and pave the way to increase the capacity of the unit by an estimated 40 megawatts in the fall of 2026. We've already filed the upgrade request with the LPSC. Additionally, planned turbine rotor replacements in ANO1 in the fall of this year will set us up for future upgrades there. We continue to engage with customers, regulators, vendors, and others regarding new nuclear, though we don't have any updates to report at this time. Turning to regulatory, we are making progress on important matters to meet customers' growing needs and drive improved customer outcomes.
This year Waterford 3 and Grand Gulf are proudly celebrating 40 Years of operations.
The Waterford 3, Refugee, outage wrapped up in June, on time. And on budget.
Work concluded replacement of all 3. Low pressure turbines which will improve reliability and pave, the way to increase the capacity of the unit by an estimated 40 megawatts in the fall of 2026.
We have already filed the upgrade request with the LPSC.
Additionally planned turbine Road, Replacements, and an 01. And the fall of this year will set us up for future upgrades there.
Continue to engage with customers Regulators vendors and others regarding new nuclear, though we don't have any updates or report at this time.
Kimberly Fontan: In early July, we reached a stipulated settlement with the Louisiana Public Service Commission staff and a number of parties recommending approval of our request to invest in assets to support adding Meta's transformational Hyperion data center to our system. The hearing was held in mid-July, and we presented extensive evidence of the significant benefits to our customers and communities for making these investments, as well as through bringing Meta online as a customer. These benefits are in addition to the transformative benefits that Meta will create through its billions of dollars of investment in Louisiana and the high-paying, good-quality jobs it will provide. The procedural schedule supports a commission decision no later than October of this year. The Mississippi Public Service Commission approved Entergy Mississippi's formula rate plan settlement, which did not result in a rate change.
Turning to regulatory, we are making progress on important matters to meet customers, growing needs and drive improved customer outcomes.
In early July, we reached the stipulated settlement with the Louisiana, Public Service Commission staff, and a number of parties, recommending approval of our request, to invest in assets of support, adding medicine, transformational Hyperion data center to our system.
the hearing was held in mid July and we presented extensive evidence of the significant benefits to our customers and communities for making these Investments as well as through bringing meta online as a customer,
These benefits are an addition to the transformative benefits that meta will create through its billions of dollars in invest of investment in the Louisiana and the high-paying good quality jobs. That will provide
The procedural schedule supports commission decision, no later than October of this year.
The Mississippi Public Service Commission approved Entergy Mississippi's rate plan settlement.
Kimberly Fontan: Also, Entergy Louisiana and Entergy New Orleans filed their annual formula rate plans, and new rates are expected in September. Entergy Arkansas filed its annual formula rate plan with new rates expected to be in place at the beginning of next year. This is the 10th and final projected year in the current cycle. And on February 26, we will file a base rate case, which will include a proposal for a new formula rate plan tariff. At the federal level, FERC approved MITOS' expedited resource addition study, or ERAS, proposal last week. We appreciate FERC's work to temporarily facilitate customer growth across MITOS, while we all work together to improve MITOS' existing Q processes. Last quarter, we covered Arkansas legislation that allows for a rider to support investment for economic development.
Which does not result in a rate change.
Also energy, Louisiana and energy, New Orleans filed, their annual formula rate plans, a new rates are expected in September.
Energy Arkansas, filed, its annual formula, 8 plan with new rates expected to be in place, at the beginning of next year. This is the 10th and final projected year in the current cycle.
And in February 26, we will file a base rate case, which will include a proposal for a new formula rate plan tariff.
At the federal level furk approved, mysos expedited resource Edition study or eras proposal last week.
We appreciate perks work to temporarily temporarily, facilitate customer growth myso while we all work together to improve mysos, existing queue processes.
Kimberly Fontan: This quarter, the Texas legislature passed and the governor signed three bills that will provide benefits to our customers and communities. One accelerates storm securitization, which I mentioned earlier. Another allows rider recovery of MITOS-related capacity costs that are currently included in base rates. The rider may be filed annually beginning in 2026. The third is a wildfire bill that provides a potential path to improve wildfire liability. While our likelihood of experiencing wildfires is lower than in other parts of the state, we take the risk seriously and intend to use the new tools that are available. Finally, our communities are a key stakeholder, and actively supporting them beyond economic development is an important part of our strategy. Entergy has once again been named a top 50 most community-minded company and the leader in the utility sector by the Civic 50, an initiative of Points of Light.
Last quarter, we covered Arkansas legislation, that allows for a rider to support investment for economic development.
This quarter, the Texas legislature passed and the governor signed 3 bills that provide benefits to our customers and communities.
1 Accelerator Storm Securitization, which I mentioned earlier.
Another allows write and recover; write a recovery.
Of Mysore related capacity costs that are currently included in base rates.
The writer may be filed annually, beginning in 2026.
The third is a wildfire bill that provides a potential path to improve wildfire liability.
While our likelihood of experiencing wildfires is lower than in other parts of the state, we take the risk seriously and intend to use the new tools that are available.
Finally, our communities are a key, stakeholder and actively supporting them, Beyond economic development, is an important part of our strategy.
Kimberly Fontan: In 2024, our employees and retirees contributed more than 122,000 volunteer hours across our service area valued at over $4 million. Before I wrap up, I'd like to highlight that Louis Roth has been elected to our board of directors. A Louisiana native, Louis brings extensive investment experience from his years of work at Barrow Hanley, historically one of our largest active investors. At Barrow Hanley, he worked as their lead equity portfolio manager and also served on the executive committee. Combined with his prior work experience, Louis has tremendous familiarity with utilities as well as industrial companies, many of which are part of our customer base. We are very excited to have Louis join our board. It's been an exciting quarter and continued to make progress on creating value for our customers, communities, employees, and owners.
Energy has once again, been named a top 50, most community-minded company, and the leader in the utility sector by the Civic. 50, and initiative of points of light,
In 2024 our employees and retirees contributed more than 122,000 volunteer hours.
Across our service area, valued at over $4 million.
Before I wrap up, I'd like to highlight that Lewis Rock has been elected to our Board of Directors.
Barrow, Hanley, he worked as their lead Equity, portfolio manager, and also served on the executive committee.
Combined, with his prior work experience, Lewis is tremendous familiarity with utilities, as well as industrial companies, many of, which are part of our customer base.
We are very excited to have Lewis join our board.
Kimberly Fontan: Our teams are working very hard to foster community and economic growth and customer growth in our states, while also delivering on commitments made to improve resilience and reliability. I'll now turn the call over to Kimberly, who will review our financial results for the quarter.
It's been an exciting quarter, and we continue to make progress on creating value for our customers, communities, employees, and owners.
Our teams are working, very hard to Foster community, and economic growth, and customer growth in our states. While delivering on commitments made to improve resilience and reliability.
Unknown: Thank you, Drew. Good morning, everyone. Today, I will review our financial results for the quarter, our capital plan update, and our guidance and outlooks. I will also cover effects from the final budget reconciliation bill. Starting with earnings, our adjusted EPS for the quarter was $1.05. This result keeps us firmly on track for our guidance for the year. Adjusted EPS is shown on slide five. Primary drivers were the net effect of investments made for our customers, higher retail sales volume, and higher other income. These increases were partially offset by higher other O&M, consistent with the estimate we provided last quarter, and higher MITOS capacity costs at Entergy Texas, which are currently recovered in base rates. New legislation allows those costs to be recovered through a rider beginning in 2026.
I'll now turn the call over to Kimberly, who will review our financial results for the quarter.
Thank you drew. Good morning, everyone. Today, I will review our financial results for the quarter, our Capital Plan update, and our guidance and outlooks, I will also cover effects from the final budget, reconciliation bill,
Starting with earnings are adjusted EPS for the quarter was a $15.
This result keeps us firmly on track for our guidance for the year.
Adjusted EPS is shown on slide 5.
Primary drivers were the net effect of investments made for our customers, higher retail sales volume, and higher other income.
Unknown: Earnings contribution from retail sales volume was positive, despite weather being milder than the second quarter of last year. Weather-adjusted retail sales growth for the quarter was very strong at 4.5%. Industrial sales were the largest contributor with close to 12% growth, primarily from new and expansion customers that continue to ramp up their operations. Slide six summarizes our credit ratings and affirms that our credit metric outlooks remain better than agency thresholds. Over the past several years, we have strengthened our balance sheet to support our operations and the growth opportunity before us. Our liquidity as of June 30th is very strong, including $2.3 billion of unsettled equity forwards, which are available if needed. Turning to tax credits, with the passage of the most recent budget reconciliation bill, we now have better clarity on renewable tax credits, and we have adjusted our cash flow forecast accordingly.
These increases were partially offset by higher other onm consistent with the estimate we provided last quarter and higher myso capacity. Cost at entry Texas, which are currently recovered in base rates, new legislation allows those costs to be recovered through a rider beginning in 2026.
Earnings contribution from retail sales, volume was positive. Despite whether being milder than second quarter of last year,
Whether adjusted retail sales growth. For the quarter was very strong at 4 and a half percent, Industrial Sales, were the largest contributor with close to 12% growth, primarily from new and expansion, customers that continue to ramp up their operations.
Slide 6 summarizes our credit ratings and affirms that our credit metric outlooks remain better than agency thresholds.
Over the past several years, we have strengthened our balance sheet to support our operations and the growth opportunity before us.
Our liquidity as of June 30th, is very strong, including 2.3 billion dollars, of unsettled Equity forwards, which are available if needed.
Unknown: Our forecast includes updates to the timing of monetization of investment tax credits associated with projects that we expect to safe harbor. The changes include shifting our expected tax credits out one year. We now have approximately $175 million of cash benefit in 2028 and additional cash benefits beyond our outlook period. We continue to monitor for Treasury guidance that could affect these cash flows. As you may recall, we previously had not included the cash benefits from nuclear PTCs in our forecast. However, based on our current analysis, in the quarter, we recorded nuclear tax credits of approximately $570 million across our five nuclear units. We treated the recognition of these credits as an uncertain tax position, pending either guidance from the Treasury Department on the calculation or final determination on audit. We expect to monetize the nuclear PTCs and receive the cash benefit later this year.
Turning to tax credits with the passage of the most recent budget reconciliation Bill, we now have better Clarity on renewable tax credits and we have adjusted our cash flow forecast accordingly.
Our forecast includes updates to the timing of monetization of investment tax credits associated with projects that we expect to Safe Harbor.
The changes include shifting our expected tax credits out 1 year.
We now have approximately 175 million of cash benefit in 2028.
And additional cash benefits beyond our Outlook period.
We continue to monitor for treasury guidance. That could affect these cash flows.
As you may recall, we previously had not included the cash benefits from nuclear ptc's in our forecast.
Ever, based on our current analysis in the quarter, we recorded nuclear tax credits of approximately $570 million across our 5 nuclear units.
We treated the recognition of these credits as an uncertain tax position, pending either guidance from the Treasury Department on the calculation or final determination on audit.
Unknown: We are working with our regulators on how and over what time period we provide this benefit to customers. As you can see from the chart on slide seven, the nuclear PTCs are highly dependent on the average revenue per megawatt hour, which includes both capacity and energy revenues, and therefore we are not counting on these credits for future years in our outlooks. Our credit outlooks provided include these changes, and our estimated Moody's metric continues to grow to 15% over the forecast period. As Drew noted and as shown on slide eight, we are increasing our four-year capital plan by $3 billion, including new renewables and battery storage to meet customer needs. We're also providing updates on retail sales growth, rate base, credit metrics, and operating cash flow, as well as operating company capital plans in the appendix of our presentation.
We expect to monetize the nuclear PTCs and receive the cash benefit later this year.
We are working with our regulators on how and over what time period we provide this benefit to customers.
As you can see from the chart on slide 7, the nuclear ptc's are highly dependent on the average revenue per megawatt hour, which includes both capacity and energy revenues. And therefore, we are not counting on these credits for future years in our outlooks,
our credit outlooks provided include these changes and our estimated
metric.
Used to grow to 15% over the forecast period.
As Drew noted and is shown on. Slide 8, we are increasing our 4 year, Capital plan by 3 billion dollars, including new Renewables, and battery storage to meet customer needs.
Unknown: As you can see on slide nine, our equity needs are unchanged despite the higher capital investment. Higher operating cash flow, including monetization of nuclear PTCs and utilization of Arkansas' new infrastructure rider, allows us to maintain our financial metrics and current equity needs. As a reminder, we've contracted approximately two-thirds of our equity needs through 2028. In the second quarter, we settled approximately $800 million of equity forwards, or about 15.6 million shares, and we are using those funds to continue to invest for our customers. As shown on slide 10, we are affirming our adjusted EPS guidance and updating our longer-term outlooks. For 2025, we're firmly on track. Positive year-to-date results allow us to flex other O&M to manage the business.
Operating cash flow, as well as operating company capital plans, are included in the appendix of our presentation.
As you can see, on slide 9, our Equity needs are unchanged despite the higher capital investment.
Higher operating cash flow, including monetization of nuclear PTCs, and utilization of Arkansas's new infrastructure writer allows us to meet our financial metrics and current equity needs.
As a reminder, we've contracted approximately two-thirds of our equity needs through 2028.
In the second quarter, we settled approximately 800 million dollars of equity forwards or about 15.6 million shares. And we are using those funds to continue to invest for our customers.
As shown on slide 10, we are affirming. Our adjusted EPS guidance and updating our longer term outlooks.
Unknown: Looking ahead to the third quarter, we expect other O&M to be roughly 5 cents higher than the third quarter of last year, partly due to the timing of vegetation maintenance and non-nuclear plant outages. And we expect Entergy Texas to have higher MITOS capacity costs in July and August, totaling approximately 6 cents. We remain confident that we will deliver on our 2025 guidance. Looking past 2025 at our longer-term outlooks, we continue to see growth as evidenced by our higher capital plan. Our adjusted EPS for 2026 remains unchanged, and we are increasing 2027 by 5 cents and 2028 by 10 cents, while maintaining strong credit metrics throughout the forecast period. Our results in the first half of this year have been solid, and we are once again raising our capital plan to support our growing customer needs.
For 2025, we're firmly on track positive. Year-to-date results. Allow us to flex other onm to manage the business.
Looking ahead to the third quarter, we expect other OnM to be roughly $0.05 higher than the third quarter of last year, partly due to the timing of vegetation maintenance and non-nuclear plant outages.
and we expect energy taxes to have higher miso capacity costs in July and August totaling, approximately 6 cents,
We remain confident that we will deliver on our 2025 guidance.
Looking past 2025 at our longer-term, outlooks, we continue to see growth as evidenced by our higher Capital plan.
Our adjusted EPS for 2026 remains unchanged. We are increasing 2027 by $0.05 and 2028 by $0.10 while maintaining strong credit metrics throughout the forecast period.
Unknown: We still have significant opportunities before us, and we remain well-positioned to execute and deliver successful outcomes. And now the Entergy team is available for questions.
Our results in the first half of this year have been solid. And we are once again, raising our Capital plan to support our growing customer needs.
We still have significant opportunities before us and we remain, well, positioned to execute and deliver successful outcomes.
And now, the energy team is available for questions.
Greg: Thanks, Kimberly. And again, 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. Once again, star one. And in the interest of time, we ask that you please limit your questions to one primary and one follow-up question. Thanks in advance. And we'll pause just a moment to compile the Q&A roster. All right. It looks like our first question today comes from the line of Jeremy Toney with JPMorgan. Jeremy, please go ahead.
Thanks, Kimberly.
And again at this time I would like to remind everyone in order to ask a question. Press star, then the number 1 on your telephone keypad. Once again, star 1 and in the interest of time, we ask that you please limit your questions to 1 primary and 1 follow-up question. Thanks in advance and we'll pause just a moment to compile the Q&A or roster.
Drew Marsh: Hi. Good morning. Good morning.
All right, it looks like our first question. Today comes from the line of Jeremy tan with JP Morgan Jeremy. Please go ahead.
Hi, good morning.
Good morning.
Greg: Exciting update there. A lot of interest in this new Arkansas customer and appreciate somewhat limited in what you could say at this point, but just wondering if there's any color you could share with regards to the industry of the customer or even the ramp. And so it seems like not a lot of change to sales growth through '28, but just curious any shades of color you could provide in the post '28 ramp, what that might look like.
Drew Marsh: Yeah. Well, I think I don't think we can talk specifically about the customer or any customers, I guess. It's consistent with where we've been, Jeremy, and our previous announcements. We are sticking with the filings, and the filings should be out in the next two to three weeks is where we're aiming, and that'll have a lot of the kind of detail I think that you would be looking for with that question.
Um, exciting update there, uh, a lot of interest in this new Arkansas customer, and appreciate it. Somewhat limited in what you can say at this point, but just wondering if there's any color you could share with regards to the industry of the customer or even the ramp. And so it seems like not a lot of, uh, change to sales growth through 2028, but just curious if there are any shades of color you could provide in the post-2028 ramp with what that might look like.
Yeah, well, I think I don't think we can talk specifically about the customer, um, or any customers. I guess it's it's, uh, you know, we consistent with where we've been Jeremy and our previous, uh, announcements. Um, you know, we are, we are sticking with, uh, you know, the filings and the filings should be out in the next 2 to 3 weeks. Um, is, is where we're aiming and and that'll have a lot of the, the kind of detail, I think that you would be looking for with that question.
Greg: Got it. Makes sense there. And I just want to pivot, I guess, to the gas generation picture that you have there. And I think you referenced seven gigawatts of gas generation available for new load. Is this after the Arkansas project or some of this be dedicated to Arkansas? Just trying to understand how that falls out.
Got it makes sense there. Uh, it it just went to Pivot, I guess to the, the gas generation, um, you know, uh, picture that you have there. And I think you referenced 7, gigawatts of gas generation available for new load.
Drew Marsh: So that is related to projects that we have not announced to date or that you aren't aware of. So if you think about the projects that are out there, we have three projects in Texas, two in Arkansas, three in Louisiana, two in Mississippi. And then I think there's one more that's in our capital plan that isn't publicly announced. So the seven gigawatts would be other projects beyond those that are not in our capital plan but are out there and available for us to serve new customer growth that we anticipate will be an opportunity for us going forward given our strong pipeline.
Is this after the Arkansas project or some of this be dedicated to Arkansas, just trying to understand how that falls out.
So, that is related to projects that we have not announced today or that you aren't aware of. Um, so you know, if you think about the projects that are out there, um, you know, we have 3 projects in Texas to in Arkansas 3 in
Anticipate will be an opportunity for us going forward, given our strong pipeline.
Greg: Got it. Makes sense. We'll wait for more details. Thank you very much.
Drew Marsh: Thanks, Jeremy.
Got it, makes sense. We'll wait for more details. Uh, thank you very much.
Greg: Thank you, Jeremy. And our next question comes from the line of Nicholas Campanella with Barclayt. Nick, please go ahead.
Thanks, Jeremy.
Thank you, Jeremy.
And our next question comes from the line of Nicholas Campanella with Barkley. Nick, please go ahead.
Kimberly Fontan: Hey. Good morning. Thanks for all the updates. A lot of stuff here.
Greg: Good morning.
Kimberly Fontan: So yeah. Just wanted to ask, just you talked about Meta a little bit in the prepared remarks. Have you already started the regulatory approval process for the upsizing of Hyperion to the 5 gigs like they've been talking about, or is that still on the come?
Drew Marsh: We haven't started any process, and we couldn't comment on that anyway. You'd have to ask Meta on their exact plans. The filings that we have are related to the previous announcements that we've already made starting last fall. So that's where we sit overall today. We are excited that Meta is talking publicly about the potential for expansion at that Hyperion site. That's one of the reasons why they chose that site. And so we're excited to hear, and not just us. I'm sure Richland Parish is excited to hear that. The state of Louisiana is excited to hear that. But we don't have anything else to say about the potential for expansion today.
Hey, good morning. Thanks for all the updates. Um, a lot of stuff here, so yeah. Um, just wanted to ask, just um, you talked about Meta a little bit in the prepared remarks. Um, have you already started the regulatory approval process for the upsizing of Hyperion to the 5 Gigs like they've been talking about, or is that still on the comp?
Uh, we haven't started any process and when we couldn't comment on that, anyway, you'd have to ask meta on their exact plans, um, you know, the, the filings that we have are related to the, to the previous, uh, announcements that we've already made, uh, starting last fall.
So, that's where we sit. Overall today, we are excited that Meta is talking publicly about the potential for expansion at that High Period site. That's one of the reasons why they chose that site.
And so we're excited to hear, and not just us, I'm sure. Richland Parish is excited to hear that; the state of Louisiana is excited to hear that. Um, but, uh, you know, we don't have anything else to say about the potential for expansion today.
Kimberly Fontan: Okay. No, I appreciate that. Thank you. And then just on the new nuclear side, just outside of the upgrades, I know you said no major updates, but just has the conversation pulled back a little, or where would you kind of put that now or frame that now if you had to kind of mark to market it? And what is the ideal framework in your mind if you were to kind of move forward with this? Are you expecting a hyperscaler or a large load customer to take on construction risks before this could be transferred to rate base, or just how do you kind of think about the ability to grow this generation while keeping the risk profile acceptable to the various constituents? Thanks.
Drew Marsh: That's a great question, Nick. I mean, the way that we're thinking about it is that our operating companies aren't big enough to take on the kind of risk that may occur during construction of new nuclear units. And so we are looking for ways to manage that risk. It could be in part from the customers, but the customers don't want to take on a whole lot of uncertainty either. So we're working through that. There's the potential for state or vendor or federal support to help with the risk profile there. There's even some conversations that we've been a part of about sovereign funds and others picking up some of those risks. But you get the idea that you need a really large balance sheet in order to make that happen.
Okay, no, I appreciate that. Thank you. Um, and then just on the new nuclear side just outside of the uprights you know, I know you said no major updates but just has the conversation. Pulled back a little or where, where would you kind of put that now or frame? That now, if you had to kind of Mark to Market it and like, what is the ideal framework in your mind, if you were to kind of move forward with this? Are you? Um, expecting a hyperscaler or a large load customer to take on construction risks? Before? This could be transferred to rate based, or just, how do you kind of think about the ability to grow this generation while keeping the risk profile acceptable to uh the various constituents? Thanks.
Uh, it's a, that's a great question, Nick. I mean, the way that we're thinking about it is that our operating companies aren't big enough to take on the kind of risk, uh, that that, uh, you know, may occur during construction, uh, of the nuclear units. And so, we are looking for ways to, to manage that risk. Um, it could be in part from the customers, but the customers don't want to take on a whole lot of uncertainty either. Um, so we're working through that. Um, you know, there's the potential for
State or vendor or federal support to help with the risk profile there. Um, there's even some conversations that we've been a part of about sovereign funds and others, you know, picking up some of those risks.
Drew Marsh: And there are people that are thinking about it, and so we're working through those conversations, but it's taken a while to put it all together.
You get the idea that you need a really large balance sheet. Um, in order to make that happen, uh, and there are people that are thinking about it. And so we're working through those conversations, but it, it's taking a while to to put it all together.
Kimberly Fontan: Understood. Thank you so much.
Drew Marsh: Thank you.
Understood, thank you so much.
Thank you.
Greg: Thanks, Nick. And our next question comes from the line of Julian Dumelin-Smith. Julian, please go ahead.
Thanks Nick.
Liz Hunter: Hey. Thanks, Robert. Thank you, team. Nicely done again. Maybe to follow up on the earlier question Jeremy was kind of posing to you, I mean, it seems like you have these 15 combined cycles and two CTs secured with deposits, it seems, versus what's in the plan. Maybe to press a little bit further, there's upside outside of the plan that you're alluding to, but it seems like you guys have made tangible actions. So if you can elaborate maybe as best you understand and see it from your customers, the timing and magnitude of some of these opportunities, it does seem as if you're certainly advanced, and I appreciate why you would be advanced considering the commercial needs of your customers decisively. But I'd love to hear how you think about this coming together, if you will.
And our next question comes from the line of Julian uh dumolin Smith Julian please go ahead.
Drew Marsh: Well, I mean, the timing of that would be such that we would have plants online with that additional, I mean, the 8 gigawatts of the 15 is very clear. That's in our capital plan. You can see that. The additional 7 gigawatts would be for COD between '29 and '31. And that's consistent with the disclosures that we'd previously made. The turbine deliveries themselves would be a little bit before that, and then the plants would come online 9 to 12 months after the turbine deliveries. So that sort of gives you a framework for what we're talking about. So you could see incremental capital should all this stuff come together as we are aiming for near the back end of our forecast period.
Hey, thank you Governor. Thank you team, a nicely done again. Um, maybe to follow up on on the earlier questions. Jeremy was kind of posing to you. I mean, it seems like you have this these 15 combined Cycles in 2 CTS secured, um, with with deposits, it seems versus what's in the plan. Maybe the press a little bit further that there's, there's upside outside of the plan that you're alluding to, but it seems like you guys have made tangible actions. So if you can elaborate maybe as best you understand and see it from your customers, the timing and magnitude, um, of some of these opportunities, it does seem as if you're certainly Advanced and I appreciate why you would be Advanced, considering the commercial, um, needs of your customers to act decisively. But I, I'd love to hear how you think about this coming together if you will.
Well, I mean, the timing of that would be such that we would have plants online with that additional. I mean, the 8 gigawatts of the 15 is very clear; that's in our capital plan. You can see that. Um, the additional 7 gigawatts would be for COD between 2029 and 2031.
And that's consistent with the disclosures that we had previously made. Uh, the turbine deliveries themselves would be a little bit before that. Um, and then the plants would come online, uh, you know, 9 to 12 months after the turbine deliveries. So
That's, uh, that sort of gives you a framework for what we're talking about. So you could see incremental capital.
Forecast period.
Greg: Excellent. And just to reconcile, I know you guys are updating here on the nuclear PTC benefits, and that seems to go hand in glove with some of the updates you're providing here. How do you think about that fitting into the financing plan, if you can speak to it, not just in terms of what you're recognizing here with the 570, but writ large across the opportunity of the PTCs, how that fits into the pie chart that you show about equity needs?
Unknown: Yeah. Good morning, Julian. It's Kimberly. As you know, we have worked to use a variety of ways in order to manage the equity that we need. And as we add capital, we would look to do the same thing. So we've done that through incrementing cash flows, through mechanisms that, for example, throw cash out during construction that actually save costs for customers over the longer run, but also support our credit in that period. We've done that with customer support as they ramp up, and there are a variety of ways that we've done that. But we will continue to look to do that and manage our equity needs, but we'll evaluate each of the finances as we add capital and see what we need to do there.
Excellent. And and just to reconcile, I I know you guys are updating here on the the nuclear PTC benefits and that seems to go hand in glove with some of the updates you're providing here. How do you think about that fitting into the financing plan? Um, if you can speak to it, not just in terms of what your recognizing here with the the 570, but large across the opportunity of the ptc's how that fits into, you know, the the pie chart that you show about Equity needs.
Unknown: Our plan does continue for what we have here to target that same 10 to 15 percent run rate that we've had for the last couple of years.
Yeah, good morning, Julie. It's it's Kimberly. As you know we have worked to use a variety of ways in order to manage the equity that we need. And as we add Capital we would look to do the same thing. So we've done that through incrementing. Cash flows through mechanisms that for example, throw cash out during construction that actually save costs from for customers over the longer run but also support our credit in that period. Um, we've done that with customer support as they ramp up. And there are a variety of ways that we've done that, but we will continue to look to do that and manage our Equity needs. But we'll evaluate each of the finances as we add capital and see what we need to do there. Um, our plan does continue for what we have here to Target, that same 10 to 15% run rate that we've had for the last couple of years.
Greg: Got it. Yeah. Understood. All right. Well, look, I'll leave it there. Nicely done. Congrats again. Incredible. Looking forward to more.
Drew Marsh: Excellent. Thanks, Julian.
Got it. Yeah, understood. All right. Well, look, I'll leave it there. Nicely done. Congrats again. Incredible. Looking forward to more.
Greg: Yes. Thank you, Julian. And our next question comes from the line of Bill Apocelli with UBS. Bill, please go ahead.
Yes. Thank you Julian. And our next question comes from the line of bill apicelli with UBS bill. Please go ahead.
Liz Hunter: Hi. Good morning. Just following up on that equity needs question, I mean, as we think through the updates today and the CapEx increase with no additional equity, I mean, how much additional headroom would you say you have before you would need to contemplate issuing equity in terms of the CapEx upside?
Hi, good morning, uh, just just following up on that Equity needs question. I mean, as we think through, you know, the update today and the capex increase with no additional Equity, I mean, how much additional Headroom would you, would you say you have before you would need, uh, to contemplate issuing equity?
Unknown: Yeah. Good morning, Bill. Again, we have assumed in the base plan that run rate that I referenced about 10 to 15 percent and any additional capital that we would increment, we would look at what that means relative to the cash flows that are showing off, any other mechanisms, and then what that equity need is. So I think about it less as what specific room and more about that's the framework and how we think about our equity, and we'll continue to think about it that way.
In terms of the capital, the CapEx upside.
Yeah, good morning, Bill. Again, we would have assumed in the base plan that run rate that I referenced about 10% to 15% in any additional capital that we would increment. We would look at what that means relative to the cash flows that are thrown off any other mechanisms and then what that equity need is. So I think about it less as, you know, what specific room, and more about that's the framework and how we think about our equity, and we'll continue to think about it that way.
Greg: Okay. And then on the tariff structure in Arkansas for the new large load customer, I mean, maybe you could speak to that, the structure of that relative to how the customers and the tariffs work in Louisiana, maybe just any color there in terms of you spoke to the favorable mechanisms in Arkansas.
Okay, and then and then on the, um, you know, the Tariff structure or in Arkansas, uh, for the new large load customer, I mean, maybe you can speak to that the structure of that relative to other customers and the tariffs work in Louisiana. Um,
Maybe just any color there in terms of, uh, you know, you spoke to the favorable mechanisms in Arkansas.
Unknown: Yeah. We won't speak specifically to customers, but as it relates to the infrastructure rider, that may be what you're asking about. The Arkansas legislation did issue legislation around a new infrastructure rider that provides for timely recovery of large transmission and generation. It provides for good credit support during the period, and it also enables Arkansas to continue to grow from an economic development perspective beyond its 4% cap. So really nice mechanism there for all parties as we think about how to use that.
Yeah, we won't speak specifically to customers. But is it really?
What you're asking about, they are consulting legislation that did issue, um, legislation around the new infrastructure, right? Or that provides for timely recovery of large transmission and generation. It provides for good credit support during the period. And it also enables Arkansas to continue to grow from an economic development perspective, beyond its 4% cap. So, really nice mechanism there for all parties.
Um, as we think about how to use that.
Greg: Okay. Great. And then just on the mentioned nuclear, but specific to the upgrades, just remind us if there's anything in the plan for that and what would be the magnitude of in terms of megawatts or CapEx opportunity associated with the upgrades.
Unknown: Yeah. The Waterford upgrade is not significant capital dollars, and those capital are you can assume those are in the forecast.
Okay, great and and then just on the mentioned on nuclear, but specific to the up rates. Just remind us that there's anything in the plan for that and and what would be the magnitude of in terms of megawatts or capex opportunity associated with the upgrades,
Yeah, the Waterford upgrade is not significant Capital dollars in those Capital are. Are you can assume those are in the forecast.
Greg: Okay. But anything in terms of beyond that, I mean, what is sort of the opportunity set that's out there?
Unknown: Yeah. As we said, each of those upgrades needs to stand alone from a business case perspective, and to the extent that some are more expensive than others, and to the extent that there are significant capital investments, if the decision is made to move forward, there could be some incremental capital there.
Drew Marsh: Yeah. And I'll add to that, Bill, that we are talking with potential customers about those upgrades, and so we would be looking for customer support for them as we go forward at the same time.
Okay. But anything be, you know, in terms of beyond that. I mean what is sort of the opportunity set that's that's out there. Yeah, as we said, each of those upgrades needs to stand alone from a business case perspective. And to the extent that they are, some are more expensive than others. And to the extent that there are significant Capital Investments. If the decision is made to move forward, there could be some incremental Capital there.
Yeah, and I'll add to that uh, bill that we are talking with potential customers about, uh, those uprights. And so we would be looking for customer support, uh, for them. Uh, as we go forward at the same time.
Greg: All right. Great. Thanks very much.
All right, great. Thanks very much.
Drew Marsh: Thank you.
Greg: Thank you, Bill. And our next question comes from the line of David Arcaro from Morgan Stanley. David, please go ahead.
Thank you. Thank you, Bill.
Liz Hunter: Hey. Thanks so much. Good morning.
And our next question comes from the line of David araro from Morgan Stanley, David, please go ahead.
Hey, thanks so much. Good morning.
Greg: Good morning.
Liz Hunter: I was wondering if you could elaborate on what boosted the cash flow, the operating cash flow outlook cumulatively through 2028. Was that all the Arkansas rider and the nuclear PTC one year of that?
Um, I was wondering if you could elaborate on what boosted the cash flow, the uh operating cash flow Outlook. Uh cumulatively through 2028 was that all the Arkansas Rider and the uh nuclear PTC, um, 1 year of that.
Unknown: Yes, David. Those are the primary drivers, riders or mechanisms that enable good credit support during the construction period, and then obviously the large nuclear credits that were earned in '24 and we expect to monetize this year. Those are the two primary drivers.
And the construction period and then obviously the large, uh, nuclear credits that were earned in 24. And we expect to monetize this year. Those are the the 2 primary drivers.
Liz Hunter: Okay. Great. Thanks. And then maybe just looking ahead a little bit in Arkansas, as you think about the next rate case filing, would you anticipate major changes at this point in terms of what you'd be requesting for the next kind of iteration of formula rate plans? Any reflection on the current plan and how it's worked, and if anything major needs to be changed looking ahead? Thanks.
Drew Marsh: Yeah. So we are starting to gear up for that. I don't think we're in a spot to start talking about it just yet. The teams are thinking through what our needs are going to be moving forward. But I will say, you know, generally, the formula rate plan that we have in Arkansas has been pretty successful. And so we've been, you know, and then these latest legislative changes that support economic growth have really helped us out in ways that weren't really contemplated in the original order. But I think those are probably the starting points for us, a pretty good mechanism to begin with that's forward-looking, and then the component that we've recently added through legislation to support economic development within the state. But more to come on that one.
Okay, great. Thanks and then um, maybe just looking ahead a little bit in Arkansas. As you think about the next, rape case filing? Um, would you anticipate major changes at this point in terms of what you would be requesting? For the next uh kind of iteration of formula rate plans, any uh reflection on the current plan and how it's worked. Um, and if anything major needs to be changed, uh, looking ahead, thanks.
Yeah, so we are, you know, we are starting to gear up for that. I don't think we're in a spot to start talking about it just yet. The teams are thinking through, you know, what our needs are going to be moving forward. But I will say, you know, generally, uh, uh,
The formula for a plan that we have in Arkansas has been pretty successful. Um, and so we've been, you know, and then these latest legislative changes that support economic growth, uh, have really helped us out in ways that weren't really contemplated in the original order. Um, but, uh, I think those are the, uh,
Liz Hunter: Okay. Understood. Thank you.
Those are probably the starting points for us, uh, a pretty good mechanism to begin with, that's for looking. Um, and then, uh, the component that we've recently added through legislation, uh, to support Economic Development within the state. Um, so but more to come on that 1.
Drew Marsh: Thank you.
Okay, understood. Thank you.
Thank you.
Greg: Thanks, David. And our next question comes from the line of Ross Fowler with Bank of America. Ross, please go ahead.
Thanks David.
Liz Hunter: Morning, Drew. Morning, Kim. Drew, you highlighted a lot of transmission CapEx that's in the plan, and that's moving through that MITOS MTEP process. Can you remind us what the next phase of that process is and when we get updates on that and kind of some color around what the CapEx upside could be there?
And our next question comes from the line of Ross. Fowler, with Bank of America Ross, please go ahead.
Morning, Drew morning. Kim. Um,
Through you, you highlighted a lot of transmission capex that's in the plan. Uh, and that's moving through that MSO MTEP process. Um, can you remind us what the next phase of that process is and when we get updates on that, and kind of some color around what the capex upside could be there?
Drew Marsh: Well, the next submittal will be this fall, and so we probably have some updates on what we put in at that point. I think there's probably an approval coming up, but I don't have that timing off the top of my head from previous filings. But our next submittal would probably be this fall.
Um, you know the next submit will be this fall. Um, and so we probably have
Some updates on what we put in at that point. I think there's probably an approval coming up, but I don't have that timing off the top of my head from previous.
Greg: Okay. Perfect. And then following onto Nick's earlier question a little bit, you know, the Meta approval process in Louisiana, you're expecting that decision to come in October. As we look to not necessarily Hyperion, although that would be great if that's out there, but as you look to other large load opportunities in the state, can you kind of just contextualize, give us some color around what were, from your perspective, the main intervener concerns through that process?
From previous, uh, filings. But uh, our next the middle would probably be this fall.
Okay, perfect and then phone on the Knicks earlier question a little bit. Um, you know, the Meta Meta approval process in Louisiana. You're expecting that decision to come in October. Um, as we look to not necessarily Hyperion, although that would be great if that's out there but as you look to other large load opportunities in the state can you kind of just contextualize give us some color around what we're from your perspective, the main intervener concerns through that process.
Drew Marsh: Yeah. The main intervener concerns are the traditional ones, right? What are the impacts on customer bills, and are there going to be reliability impacts or resilience impacts associated with that? You know, when we look at the Meta project, and I made these comments in my earlier remarks, you know, we see strong benefits for existing customers that come from a number of different places. First of all, just from a cost perspective, you know, these are standard tariffs, so they're picking up a big chunk of costs that our existing customers would always already otherwise pick up: you know, costs associated with storms, costs associated with some of the MTEP transmission that I was talking about, costs associated with overheads. Those things are going to be helpful for our existing customers.
The main interviewer concerns are the traditional ones.
Right. What are the impacts on customer bills?
Um, and are they going to be reliability impacts or resilience impacts associated with that? You know, when we look at, uh, the meta project and, and I made these, uh, comments in my earlier remarks, you know, we see strong benefits for existing customers, um, that come from a number of different places.
Drew Marsh: And then the other thing that I wanted to make sure that we were pointing out was the resilience benefits that come from the building of these new assets. You know, particularly, you know, we talked about the CTEX and the Babel to Weber lines. And that's a 500 kV system that basically is going to come from the north side of Baton Rouge across Louisiana into Texas and then basically down into the north side of Houston, the Conroe area. And that is a big line, it's 500 kV, so it can carry a lot of capacity. It's going to be built to modern standards. It's going to loop all the transmission that's along the coast that's traditionally been pretty exposed to hurricanes, and it'll give a very, it'll create a very robust grid for our customers along the Gulf Coast.
First of all, just from a cost perspective. Yeah, these are standard tariffs so they're picking up a big chunk of costs that are existing customers that always already otherwise pick up you know costs associated with storms cost of code associated with some of the mtap transmission that I was talking about uh costs associated with overheads. Um, those things are going to be helpful for our existing customers. And then the other thing that I wanted to make sure that it's
That that we were pointing out, uh, was the resilience benefits, uh, that come from the, uh, the building of these new assets. Uh, you know, particularly, you know, we talked about the CeX.
Drew Marsh: So we're excited to get that, and it's a really big benefit for our existing customers. But those are the kinds of questions that our customers have been asking.And
In the Babel to Weber lines and that's a 500 KV system that basically is going to come from the north side of Baton Rouge across Louisiana into Texas, and then, basically down into the north side of Houston, the Conroe area. And that, uh, is a big 1, 500 KV. So it could carry a lot of capacity and it's going to be built to Modern standards. It's going to Loop all the transmission that's along the coast. Uh, that's traditionally been, you know, pretty uh, exposed to hurricanes uh and will give a very it'll create a very robust grid uh for our customers along the Gulf Coast. So we're excited to get that and it's a really big benefit for our existing customers.
Greg: then in the regulatory processes, pretty much across the board.
Operator: Okay, thanks, Drew, for that. I very much appreciate it.
That, uh, you know, our customers have been asking. Um, and then in the regulatory processes, uh, pretty much the board.
Greg: One other thing.
Operator: Oh, go ahead.
Greg: I'd like to add one more thing to that, Ross. The, you know, in our various regulatory approval processes, no one is disputing the need for new capacity, or really the need for new transmission. in the transmission space, you know, the risk, or it's not even a risk, the conversation is around what's the best route to pick. That's what most of the conversation has been about. In the generation space, it's about who is actually picking up the cost and what are the benefits associated with that investment. So, you know, there is strong agreement that these assets are needed. It's more of a question around, yeah, how are we going to manage them? Where are they going to go? Those are the primary questions.
Okay, thanks for that very much. Appreciate 1 other thing, let me just add 1 1, more thing to that, Ross. The uh, you know, in our various regulatory approval processes. No 1 is disputing. The need for new capacity, um, or really the need for new transmission. Um, in the in the transmission space, you know, the con-vers the risk or it's not even a risk, the conversation is around. Um,
What's the best route to pick? That's where most of the conversation has been about.
In the generation space, it's about who is actually picking up the costs and what are the benefits associated with that investment? So you know there's there is strong agreement that these assets are needed.
Um, it's more of a question around.
Operator: So more about the how and the where than the what we need.
How are we going to manage them? Where are they going to go? Those are the. Those are the primary questions?
Greg: Yes.
Operator: Thank you, Drew. Very much appreciate it.
Some more about the how and the where than the what we need. Yes.
Greg: Thank you.
Thank you very much, appreciate you.
Operator: All right, thank you, Ross. And our next question comes from the line of Steve Fleishman with Wolf Research. Steve, please go ahead.
All right. Thank you, Ross.
And our next question comes from the line of Steve fleshman, with wolf research, Steve, please go ahead.
Greg: Yeah, hey, good morning. Thanks for the updates. So just, could you, Drew, you went quickly through the changes on the storm recovery, and I guess particularly the Louisiana. Could you just kind of go through that again quick? And also, just is it something that the, you know, rating agencies have said anything on in terms of kind of further risk reduction?
Yeah. Hey, good morning. Um,
thanks for the updates. So just uh, I could you drew, you went quickly through the changes on the Storm uh recovery. And I guess particularly the Louisiana could could you just kind of go through that again quick and and also just is it something that the, you know, rating agencies have said anything on, in terms of kind of further risk reduction
Drew Marsh: I'll defer the question about rating agencies to Kimberly. But in terms of the things that in Louisiana, so I think it was maybe last month or the month before, there was an order from the bench that did not go through a regular process. We have a request out there for regular, through sort of regular order, to consider a long-term solution for more rapid securitization. But from the bench, to get it in front of 2025, they created a mechanism that would allow us to recover our securitization costs more quickly. And the mechanism will allow us to submit estimated costs for securitization prior to, or in a meeting, make a filing, and then the filing would be considered by the commission at the subsequent meeting. So very fast turnaround is what the expectation is.
For.
Kimberly.
In terms of the things that that in Louisiana, so, uh, I think it was maybe last month or the month before. Um, there was an order from the bench that did not go through a regular uh process. We have a, we have an a request out there for regular through sort of regular order, uh, to consider a long-term, uh, solution for, uh, more rapid security. Um, but
From the Bench to get it in front, uh, of 2025. Uh, they created a mechanism that would allow us to recover our securitization costs more quickly. Uh, and the mechanism will allow us to submit. Uh, estimated costs,
for securitization, uh, in, uh, prior to or NA meeting, uh, make a filing and then the
Drew Marsh: And the point of that is to create benefits for customers because that reduces the carrying costs for our customers because the full weighted adverse cost of capital would not be the carrying cost anymore. It would be the securitization rate, which of course is a AAA rate, which is going to be a much lower rate. And then the other benefits that I mentioned were the potential for a lower cost of capital because the agencies should see that as very positive. And then lastly, you know, we have a lot of vendors, you know, particularly for a large storm that may be concerned about the creditworthiness of the company. But this should give them a lot of confidence that the company is going to be able to stand behind whatever the storm costs are. So I'll turn it over to Kimberly. She can comment about the credit piece.
Uh, filing would be considered by the commission at the subsequent meeting. Um, so very fast turnaround, um, is what the expectation is and, and the point of that is to create benefits for customers, uh, because that reduces the carrying costs.
For our customers. Because the full weighted address cost of capital would not be, uh, the carrying cost anymore. It would be the securitization rate, which of course, is a AAA rate, which is going to be a much lower rate. And then, um, the other benefits that I mentioned, uh, were um,
Liz Hunter: Yeah, as we talked to the rating agencies about the improvements in the financial space regarding storms, they view that as very positive in the ability to return that cash quicker, much quicker than what we have had previously. So positive outlook there.
The potential for a lower cost of capital is significant because the agencies should see that as very positive. Um, and then lastly, you know, we have a lot of vendors, particularly for a large storm, that may be concerned about the creditworthiness of the company. But this should give them a lot of confidence that the company is going to be able to stand behind whatever the storm costs are. So, I'll turn it over to Kimberly; she can comment about the credit piece.
Drew Marsh: That should also help us with our credit metrics too, because, you know, as you know, Steve, historically when we've had a very long time between the time of the storm and the time of the securitization, you know, our credit metrics will dip. And this should shorten that quite a bit.
Yeah, as we talked to, the rating agencies about the improvements in the financial space regarding storms, they view that as very positive and the ability to return that cash quicker, um, much quicker than what we have had previously. So, um, positive outlook there,
As you also help us with our credit metrics to, uh, because, you know, as you know, Steve, historically, when we've had a very long time between the time of the storm and the time of the securitization, you know our credit metrics will dip. Um, and this should shorten that quite a bit.
Greg: Great. And then one other question just on the gas build. I mean, you're probably going to be the largest builder of new gas plants late this decade. So just aside, in addition to the turbines that you've locked up, how are you feeling about the EPC and just overall ability to get all these projects done on time and budget?
Great. And then 1 other question, just on the, uh, gas build. Uh, I mean, you're probably going to be the largest, uh,
Builder of new gas plants, uh, late this decade. So just
Aside, in addition to the turbines that you've locked up, how are you feeling about the EPC and and just overall ability to get all these projects done on time and budget.
Drew Marsh: Yeah, that's a great question, Steve. So we've been working hard to be prepared for that. A couple of things that we've done, certainly we have strong relationships with EPCs, and we have a lot of actual working experience with them, given the building that we have done recently with the Jane Wayne Linnard Plant, Lake Charles Plant, and the Montgomery County Plant. And of course, the Orange County project is under construction right now, expected to be online, hopefully next spring, certainly before next summer. And so we have a lot of good existing relationships. We have a lot of working experience on getting this stuff built and online. So we're leveraging that. We are also utilizing a simpler standard design. So we're using, you know, we were building two-on-one stations. We've simplified it to one-on-one. We're using Mitsubishi's larger turbines, which allows us to do that.
And we have a lot of actual working experience with them, given the the building that we did. We've done recently with, uh, the J, Wayne Leonard plant, uh, Lake Charles plant in the Montgomery County plant and, of course, the Orange County, uh,
Project is under construction, right now, expected to be online. Uh, hopefully next spring.
Um, certainly before next summer.
And, uh, so we have a lot of good existing relationships. We have a lot of working experience on getting this stuff built and online. Um, so we're leveraging that. Um, we are also utilizing a simpler standard design. Um, so we're using, you know, we're building 2-on-1 stations; we've simplified it to 1-on-1. We're using Mitsubishi's larger turbines.
Drew Marsh: So there are probably more projects, but they're easier to build. And so we expect to, as we go through, we expect to learn more and pick up speed and find ways to lower costs at the same time. And then the last piece I'll mention is, you know, we are working hard through the supply chain. So we have access to other critical equipment, you know, things like transformers, large high voltage breakers, and other pieces of equipment that are critical for us to maintain our timelines. So we have line of sight on all of that. The things that we don't have 100% locked up generally are available to us in many different ways. So we have confidence that we'll be able to get that done. So those are just a few of the things that we're thinking about.
Um, that allows us to do that. Um, so there are probably more projects, but they're easier to build. Um, and so we expect to, as we go through, learn more and pick up speed, and find ways to lower costs.
At the same time.
Um, and then the last piece I'll mention is, uh, you know, we were working hard through the supply chain. So we have access to other critical equipment, you know, things like Transformers, uh, large, uh, high voltage Breakers and other pieces of equipment that are critical, uh, for us to maintain our timelines. So we have line of sight on all of that. Um, the things that we don't have 100% locked up, generally are available to us, um, in in many different ways.
Drew Marsh: But, you know, we have confidence that we can manage through making all of this happen.
Okay, so we have confidence that that uh, that we'll be able to get that done. So those are those are just a few of the things uh, that we're thinking about. But, uh, you know, we we have confidence that we can manage through, uh, making all this happen.
Greg: Great. Thank you.
Drew Marsh: Thank you.
Great. Thank you.
Operator: Thank you, Steve. And our next question comes from the line of Sophie Karp with KeyBank Capital Markets. Sophie, please go ahead.
Thank you, Steve.
And our next question comes from the line of Sophie. Karp with keybanc capital markets, Sophie, please go ahead.
Kimberly Fontan: Hi, good morning. Thank you for taking my question and congrats on a great update here. My question is about, I guess, how storms and data center customers are going to coexist in your territory. Clearly, that doesn't seem to be a huge concern for them because customers are willing to, you know, come into your territory. But is there an incremental opportunity for you to address here because presumably they would need very reliable power, right? Maybe, or are they interruptible? Maybe like how do you think about it? How do your customers think about that? Is there an incremental opportunity for storm hardening or some backup generation that you might be providing for them?
Hi, good morning. Thank you for taking my question, and, uh, congrats on a great update here.
Um,
My question is um about a store I guess how storms and data center customers are going to coexist in your territory. Clearly that doesn't seem to be a huge concern for them because um if customers are willing to um you know go comment to your territory but is there an incremental opportunity for you to address here? Because presumably they would need um very reasonable power. Right? Maybe or other interruptible maybe like how how do you think about it? How do your customers think about that? It's an incremental opportunity for storm hardening or some backup uh generation that you might be providing for them.
Drew Marsh: Thanks, Sophie, and good morning to you as well. Yeah, that's a great question. I think the customers themselves start by locating further away from the coast. So where these data center customers are showing up, and you know, we have two examples at this point, Meta and Amazon in Mississippi, they're further away from the coast. So, you know, the Meta project is in northeast Louisiana and the Amazon project is on the north side of Jackson, Mississippi, you know, in two locations. And so they are further away from the coast. And then, of course, we're building a generation to support them, which is further away from the coast as well, along with some of these 500 kV lines that we're talking about, which are further away from the coast. I gave you the example of the CTEX and the Babel to Weber line.
Thanks. Thanks Sophie. And good morning to you as well. Um, yeah, it's a great question. I think the the customers themselves start by locating further away from the coast, um, so where where these data center customers are showing up and, you know, we have 2 examples of this point, meta, and Amazon and Mississippi. Um, they're further away from the coast. So, you know, the The Meta project is in Northeast Louisiana and uh, the
Drew Marsh: Those are further away from the coast. So that's really the strategy right now. It's to use modern, more, you know, I guess, modernized equipment that is built to the more stringent standards that we have for storms and wind loadings and things like that. And to build it just simply further away from the coast where the risk is going to be reduced.
Amazon projects on the north side of Jackson Mississippi, um, you know, on and 2 locations. And so they are, they are further away from the coast and then of course, we're building, uh, generation to support them, uh, which is further away from the coast as well, uh, along with, uh, some of these 500 KV lines that we're talking about, which are further away from the coast. I gave you, the example of this, the CeX and the uh,
Babel, the Weber line. Those are further away from the coast.
So that's really the the strategy right now is to, to use modern uh, you know, more uh, you know, I guess uh modernized equipment that is built to uh the more stringent standards that we have uh for storms and and wind loadings and things like that.
And to build it, just simply further away from the coast where the risk is going to be reduced.
Kimberly Fontan: Got it. Thank you. That's all for me.
Drew Marsh: Thank you.
Got it. Thank you. That's all for me. Thank you.
Operator: All right, thank you, Sophie. And our next question comes from the line of Anthony Cradle with Mizuho. Anthony, please go ahead.
Unknown: Hey, good morning, Drew. I just have a follow-up from Nick's question, probably very easy. I think Nick had asked about like a new nuclear deal, and you mentioned the importance of a bigger balance sheet throughout maybe a state solution, a federal solution, or maybe the hyperscale or even sovereign wealth. If you had to pick of those options or the options you spoke about, which one's in a leader? Which one do you think is more likely to go ahead with a new nuclear deal? Or like what builds the next nuclear plant in your jurisdictions?
All right. Thank you, Sophie. And our next question comes from the line of Anthony crudele with Missoula, Anthony, please go ahead.
Hey, good morning. True. I just have a follow-up from Nick's question. Probably very easy. I think Nick had asked about like, a new nuclear deal and you mentioned the importance of a bigger balance sheet throughout, maybe a state solution, a federal solution, or maybe the hyperscale, or even Sovereign wealth.
If if you had to pick of those options or the options, you spoke about which ones in a leader, which 1 do you think is more likely to go ahead with the new nuclear deal?
Drew Marsh: You know, I wish I knew that I could give you a good answer for that. We are talking with all of the above on that stuff. But yeah, I do not have one that I would lean on at this point. We're looking for one of them to come through for us is basically the conversations that we're having. But we're stretching the boundaries in order to see if we can find somebody that can step up to help us with that particular risk by bringing in other kinds of folks that have the kind of balance sheet that we would need to make sure that this happens. But we haven't cracked the nut yet. So I don't have a good answer for you, Anthony. We're still working on it.
Like what builds the next nuclear plant in your jurisdictions?
Talking with with, uh, all of the above on that stuff. Um, but yeah, I do not have, uh, 1 that I would lean on at this point. Uh, we're looking for 1 of them to come through for us is is basically the the conversations that we're having. Um, but they're, they're we, you know, we're stretching the boundaries in order to see if we can find somebody, they can step up to help us with that particular risk, uh, by bringing in other, you know, kinds of of folks that have the kind of balance sheet that we would need to make sure that this happens.
Operator: Great. That's all I had. Nice quarter. Thanks for taking my question.
But we haven't cracked the nut yet, so I don't have a good answer for you, Anthony. Uh, we're still working on it.
Drew Marsh: Thank you.
Great. That's all I had. Nice quarter. Thanks for taking my question.
Thank you.
Operator: Yes, thank you. And our next question comes from the line of Angie Sturdzinski from Seaport Research Partners. Angie, please go ahead.
Kimberly Fontan: Thank you. So I have two questions. One about residential sales being weak, weather normalized residential sales being weak this quarter and basically flattish year to date despite some uptick in the customer account count. And I'm just wondering if, you know, we're seeing this from other companies as well. You know, the residential sales typically have a higher margin. And so I'm just asking, you know, is it a weakening economy? Do you incorporate that in your, you know, future earnings trajectory? And then secondly, just wondering, you know, we're seeing this inflation in the cost of new build for gas plants. You know, you have this, you know, basically, you know, framework of an agreement for the equipment supplier, for the equipment supplier. And I'm just wondering how you're managing the cost and its reflection in any future data center deals. Thank you.
Yes, thank you. And our next question comes from the line of Angie. Stoinski from Seaport research Partners. Angie, please go ahead.
Thank you so much. Um, two questions; one about...
Um, residential sales are weak, uh, whether normalized residential sales.
Being weak, this, this quarter and basically flattish year to date despite some, uh, uptick in the customer account count. And I'm just wondering if, uh, you know, we're seeing this, uh, some other companies as well. Um, you know, the the residential sales typically have a higher margin and so, I'm just asking, you know, is it a, a weakening economy uh,
Do you incorporate that in your, you know, future earnings trajectory? And then, secondly, just wondering, you know, we're seeing this inflation in the cost of new builds for gas plants.
Um, you know you have this uh um you know, basically you know framework of an agreement for the equipment, uh, supplier for their witness Supply and I'm just wondering how your managing the cost and Its Reflection in any future data center deals.
Drew Marsh: Good morning, Angie. I'll start with your residential sales question. You may recall in the first quarter, our residential sales were really strong. And when we saw that, we looked at how those came out over the course of the year. And what you've seen is a little bit of that coming back a little softer in the second quarter. But over the full year, we're about flat. And so I think you're just seeing some volatility in the data, not a real pattern. Nothing that we have baked in or expect to see over the long term. So you're just seeing some variances month over month that isn't an indicator of an overall weakness. As it relates to inflation on the cost of new build, we certainly have continued to work to manage the cost of increases related to all of our investments.
Drew Marsh: We have a lot of continuous improvement efforts, both on the capital and on the O&M side to try to manage those costs. And we have mechanisms within various contracts that enable us to manage those costs. It depends by customer. But obviously, we are very focused on affordability for our customers and working to manage the overall cost. And we continue to be quite competitive on our new build cost relative to what you're seeing as sort of the industry estimates.
Morning, Angie, I'll start with your residential sales question. You may recall in the first quarter, our residential sales were really strong. And when we saw that, we looked at how those came out over the course of the year. And what you've seen is a little bit of of that coming back, a little softer in the second quarter, but over the full year, we're about flat. And so, I think you're just seeing some volatility in the data not a real pattern, um, nothing that we have baked in, or expect to see over the long term. So, you're just seeing some, some, some variances month over month. Um, that isn't, that isn't an indicator of an overall weakness, as it relates to inflation on the cost of new build, we certainly have continued to work to manage the cost of increases related to, um, all of our all of our investments. We have a lot of continuous Improvement efforts both on the capital A and on the on inside, to try to manage those costs and we have mechanisms within various contracts that enable us to manage those costs.
It depends by customer. But obviously, we are very focused on affordability for our customers and working to manage the overall cost and we continue to be quite competitive on.
On our new build cost relative to what you're seeing as sort of the industry estimates.
Kimberly Fontan: Great. And just one quick follow-up. I'm just looking at the re-rating of your stock and how it should have impacted your dilution mass and your growth rate. And I'm just wondering if you've already captured it in this updated plan for the EPS growth, the fact that you're basically issuing equity at a much higher price than likely initially anticipated.
Great, and just one quick follow-up.
Drew Marsh: Well, Angie, as you know, we've sold forward into 2027. So we've got what our forward contracts are assumed and then what we need in '27 and '28. We have a price assumption. But certainly, to the extent that the price moves in a positive direction, that's helpful relative to dilution on an ongoing basis.
I'm just looking at the the rewriting of your stock and um how it should have impacted your dilution Mass uh in your growth rate. And I'm just wondering if you've already captured it and this updated plan for the EPS growth, the fact that you're basically issuing Equity at a at a much higher price than likely initially anticipated.
Well, Angie, as you know, we've sold forward into 2027. So we've got.
What are our forward contracts assumed?
And then what we need in 27 and 28, we have a price assumption, but certainly to the extent that the price moves in a positive direction, that's helpful relative to dilution on an ongoing basis.
Kimberly Fontan: Great. Thank you.
Great. Thank you.
Operator: All right, thank you, Angie. And our final question today comes from the line of Paul Patterson with Glen Rock Associates. Paul, please go ahead.
All right. Thank you. Angie, and our final question today comes from the line of Paul Patterson with Glenn Rock Associates. Paul, please go ahead.
Kimberly Fontan: Hello. Good morning. Just following up on your comments about safe harboring and the way the build is currently constructed. And just on the July 7th executive order, have you guys had any sense as to what we might see coming out of that? And if you have, could you share it with us? And also, how do you think about any potential changes that the executive order might cause? How are you guys managing that, or how are you thinking about that in terms of going forward and your activities?
Hey, um, good morning. Uh, just um, following up on your...
uh, comments about uh, safe harboring and um,
And the way the bill is currently constructed.
And, uh, just, um, on the July 7th executive order, uh, have you guys had any senses to what we might see coming out of that? Um, and if you have,
Changes, uh, that the, um, executive order might cause how are you guys managing that? Or how are you, how are you thinking about that in terms of um, going forward and and your activities?
Drew Marsh: We're certainly engaged, Paul, with our industry partners and other companies around understanding what could come out, but I don't have any specific insights that I can share on that. As far as safe harboring, we have worked within the existing rules to do what we need on the projects in order to safe harbor those. If the executive order and the outcome of that changes that, we'll obviously need to make adjustments, but we'll have to see what those are specifically. But we've been working for the last couple of months to make sure that we could meet as much of our renewables could be safe harbored as possible under the rules that we have. And we continue to watch for what else may change there. And we'll adjust as we need to, Paul.
Kimberly Fontan: Okay, great. Thanks a lot.
We're certainly engaged Paul with our with our industry partners and and other other companies around understanding. What could come out. But I don't have any specific insights that I can share on that. Um, as far as safe harboring, we have worked within the existing rules to do the what we need on the projects in order to Safe Harbor. Those, if the executive order and the outcome of that changes that will obviously need to make adjustments. But we'll have to see what those are specifically. But we've been working for the last couple of months to make sure that we could meet as much of our Renewables. Could be safe harbored as possible under the rules that we have and we continue to, to watch for what else, may change their and we'll adjust as we need to Paul.
Okay, great. Thanks a lot.
Drew Marsh: Thank you.
Operator: Thank you, Paul. And that does conclude our Q&A session today. So at this time, I will turn the call back over to Liz. Liz.
Thank you. Thank you, Paul.
Liz Hunter: Thank you, Greg, and thanks to everyone for participating this morning. Our quarterly report on Form 10-Q is due to the SEC on August 11th and provides more details and disclosures about our financial statements. Events that occur prior to the date of our 10-Q filing that provide additional evidence of conditions that existed at the date of the balance sheet 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 Entergy's 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 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.
And that does conclude our Q&A session today. So at this time, I will turn the call back over to Liz Liz.
Thank you, Greg, and thanks to everyone for participating this morning. Our quarterly report on Form 10-Q is due to the SEC on August 11th and provides more details and disclosures about our financial statements.
Events that occur prior to the date of our 10-Q filing that provide additional evidence of conditions that existed at the date of the balance sheet 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 Entergy's investor relations website called "Regulatory and Other Information," which provides key updates on regulatory proceedings and important milestones related to our strategic execution.
While some of this information may be considered material information, you should not rely exclusively on this page for all relevant company information. This concludes our call. Thank you very much.
Operator: Thanks, Liz. And again, this concludes today's conference call. You may now disconnect.
Thanks, Liz. And again, this concludes today's conference call, you may now disconnect