Q2 2025 Evergy Inc Earnings Call
Good day and thank you for standing by.
Welcome to the Q2 2025 evergy Inc. Earnings conference call at this time, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 1, 1 on your telephone. You will then hear an automated message advising. Your hand is raised.
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I would now like to hand the conference over to your first Speaker today, Peter Flynn senior director of investor relations and insurance. Please go ahead.
Thank you, Shannon. Good morning, everyone. Welcome to evergy second quarter 2025 earnings conference call.
our webcast slides and supplemental, financial information are available on our investor relations website at investors.com evergy.com
Today's discussion will include forward-looking information.
Slide 2 in the disclosures in our SEC filings contain, a list of some of the factors that could cause future results to differ materially from our expectations.
They also included additional information on our non-gaap financial measures.
Joining us on today's call are David, Campbell chairman and chief executive officer and Brian, buckler, Executive, Vice, President and Chief Financial Officer.
Other members of management are with us and will be available during the Q&A portion of the call.
I will now turn the call over to David.
Thanks, Pete and good morning everyone. I will begin on slide 5.
This morning, we are pleased to report second quarter adjusted earnings of 82 cents per share.
exceeding, our internal budget for the quarter and overcoming approximately 9 cents,
Of unfavorable weather.
Our results through June put us on target for the midpoint of full year. 2025 adjusted, EPS guidance.
A 392 to 412 per share.
Ron will discuss the year-over-year quarterly earnings drivers in more details in his remarks.
In terms of reliability, we've demonstrated strong performance to the first half of the year.
Our average outage duration and frequency as measured by Sadi and safety are trending. Favorably relative to our targets, demonstrating the benefits of our continued grid Investments, and the hard work of our transmission and distribution teams.
We achieved several important regulatory, milestones in the second quarter demonstrating the collaborative regulatory environments, in which we operate.
In Kansas the Kansas Corporation Commission approved settlement agreements and our predetermination requests.
To construct new natural, gas plants in, a solar farm and we filed a unanimous settlement agreement, and our Kansas central rate case.
In Missouri, the Missouri. Public Service Commission. Approved settlement agreements for our, certificates of convenience and necessity, or ccns for new natural, gas plants and 2 solar Farms.
These outcomes reflect continued success in finding broad-based alignment with stakeholders to support economic development in advance. Our all of the above generation strategy, always with a focus on our strategic pillars of affordability, reliability, and sustainability for our customers and communities.
We are reaffirming our long-term growth Target of 4% to 6% through 2029 based on the 2025 midpoint of 4.2 cents per share.
From 2026 to 2029. We anticipate being in the top half of this guidance range, relative to the 2025, Baseline with significant additional Tailwind from potential, large new customers and Investments to serve them.
Moving on to slide 6, we were pleased to reach a unanimous settlement agreement with stakeholders in our pending Kansas central rate case, which, if approved by the KCC would provide a balanced outcome for customers and for all parties.
The settlement provides for a net revenue, increase of 128 million.
While the Black Box, settlement does not explicitly address return on Equity or capital structure, it specifies a 9.7% return on Equity to be utilized and transmission, delivery charge filing.
The settlement also includes the provision implementing earnings review, surveillance reports.
Beginning in March of next year, and until the next rate case, Evergy will file annually a surveillance report detailing Kansas Central's earned return.
Similar to the mechanism in place. After the 2018 merger, if our earned return is higher than authorized excess, earnings will be shared 50/50 between customers and the company.
While our returns at Kansas central, have historically, been below authorized levels.
This provision reflects the potential for improvement in earned Roes as Panasonic ramps up its production.
If approved, we believe this settlement achieves, a balanced outcome.
And as we enter a new era of growth and investment, we remain committed to affordability and reliability.
There is a clear need to invest in Grid modernization to replace aging infrastructure and support reliability.
As well as a new generation resources that support higher capacity margin requirements in the southwest power pool and coincide with load ramps from potential. Large new customers. Whose load profiles will allow us to spread system costs over a broader base.
Appropriately timing, our requests to recover, our investments remains critical to our success as a company.
And we will continue to be thoughtful in our pace of capital expenditures relative to our peers and in relation to the low growth coming onto our system.
We'd like to thank KCC staff, curb, industrial customers and many others for their participation. And willingness to work toward this agreement.
We anticipate an order from the KCC by September 29th.
Slide 7 describes our expanding 15 gigawatt-plus Economic Development pipeline in greater detail.
Reflecting the geographic advantages of our region, the overall pipeline is strong in both Kansas and Missouri. We are well positioned to continue to track Economic Development,
Focusing on the top 3 categories from the pipeline. We outline a 4 to 6, gigawatt, opportunity of new large customer load, that represents the most active part of our queue.
Serving these customers will provide Regional and Community benefits in Kansas and Missouri through a robust digital economy. Construction jobs, permanent jobs and a significantly expanded tax base.
And by attracting and serving these large-load customers, we can further enhance affordability by distributing system costs across a broader load base.
Our team is working closely with these customers to develop and Implement transmission and generation solutions to serve their expected Ramp rates over the coming years.
We are confident that we will be successful in winning and serving a large portion of this queue which will in turn transform, the size and growth of our company and enhance the economic prosperity of our region.
The remaining balance of our pipeline of over 10 additional. Gigawatts demonstrates. The significant activity and continued strong interest in Kansas and Missouri.
Many of these customers have acquired land or land rights, completed their site plans, and are engaging in capacity studies with our utility companies. They are eager to move up in our queue.
Slide 8 takes a closer look at the 4 to 6 gigawatts in our Tier 1 large customer load pipeline.
Beginning with the actively building Category 2 of these customers, Panasonic and meta. Have now completed construction and are ramping up their facilities.
Third, customers making steady progress through a heavy construction phase and expects to commence operations in the first half of 2026.
Based on the latest schedules from these customers, we continue to anticipate peak demand of 1.1 gigawatts, with 500 megawatts on Long by 2029, supporting our estimated demand forecasts of 2% to 3% through 2029.
regarding Panasonic, we were excited to attend their grand opening in July and doodle Kansas
Their facility. Their facility stands, as the largest ev battery Factory in the world.
Many of you may have seen headlines from various news outlets regarding production targets and timelines for Panasonic.
Importantly, Panasonic's latest schedule is substantially consistent with the load ramp reflected in our existing 5-year forecast.
Moving to the finalizing agreements category. We are in the final stages of negotiations. With large customers. For 2 Data Center projects, representing 1 to 1.5 gigawatts of peak load,
In the first half of 2025, we executed various service agreements with significant financial commitments, and credit support from these customers.
We are very excited about the economic development that these customers will deliver to our region and remain on track to share announcements regarding their plans later this year.
Subject to final agreements and project announcements. We expect to see an impact on our demand growth from these customers in 27 2027 and 2028 and into the next decade.
Potentially raising the overall company, demand forecasts to 4 to 5% to 2029.
We also remain in advance discussions with multiple customers, whose load would represent a proximately 2 to 3.5 gigawatts of peak demand.
Although these customer projects aren't as far along as others in the pipeline, they have already secured land or land rights, shared site plans and in some cases, reach letters of agreement and provide a financial commitments to move the evaluation forward.
Overall, we see an incredible level of interest in our service territories and we are making progress with potential new large customers across all stages of discussions.
Each category reflects strong, customer interest and increasing, commitments, that will Empower growth investment, and drive prosperity, and affordability for our region.
We achieved several important regulatory Milestones that will describe in more detail on slide 9.
As previously discussed, we anticipate an order on our unanimous, Kansas central rate case settlement.
By September 29th.
On July 7th, the KCC approved settlement agreements in our predetermination requests.
Go in partial shares of 2, new combined cycle, natural gas units.
And a solar farm in Kansas central.
These projects were identified in our IRP preferred plan and reflect our. All of the above approach to meeting growing customer demand and capacity, margin requirements and the spp
We're excited to advance the construction phase and appreciate the feedback and dialogue with interveners throughout the approval process.
In our Kansas, large load power service Terror, preceding. We continue to advance settlement discussions.
Staff. Recently, requested an extension for several dates on the procedural schedule to facilitate continued dialogue.
If the new schedule is approved KCC staff and intervening your testimony would be due August 25th.
With a second settlement agreement date of September 22nd, followed by hearings running, October 8th and 9th.
Pivoting to Missouri, the Missouri Public Service Commission approved settlements for our CCN requests.
Related to 2 solar Farms.
Cycle natural gas units.
And full ownership of a symbol of a simple cycle natural, gas plant.
We'd like to thank mpsc staff OPC and other interveners for their collaboration.
We believe these projects form, a cost-effective package of reliable Energy solutions for our customers.
And this positive outcome demonstrates alignment with the public service. Commission's interest in securing additional generation resources, for our Missouri utilities.
Similar to Kansas a large load, power service tariff proceeding in Missouri continues to progress.
Through rebuttal. Testimony is due by September 12th. Followed by a settlement conference on September 23rd and hearings from September 29th to October 3rd
We look forward to ongoing collaboration with the parties as we work toward a solution that supports Economic Development and its fair and reasonable for all customers.
On slide 10, we highlight legislation and Regulatory mechanisms that firmly position, Kansas and Missouri as Premier destinations for infrastructure investment. In support of new Advanced manufacturing facilities and data centers,
The Pisa and natural gas. Sewer provisions.
Serve to mitigate regulatory lag and support our strong credit profile as we execute on our long-term capital investment plan.
While data center incentives. Packages, bolster the business-friendly environments for which Kansas Missouri. I already known, which have been instrumental in attracting new customers.
All told the support of backdrop, will continue to attract investment of major industry players, and prove that Kansas and Missouri are top destinations for new business and growth.
For our part, average e remains committed to investing to provide safe, affordable, and reliable electric service to our 1.7 million existing customers, and the new customers we are bringing online.
All of our stakeholders stand to benefit from this unprecedented Economic Development and investment opportunity.
On slide 11. We provide a summary of our new generation resources under development in Kansas and Missouri.
Overall, our approach is aligned with our 2025 IRP, preferred plan.
It reflects in all of the above strategy for new generation development that will allow Evergy to take advantage of best-in-class efficiency.
And ensure a balanced generation portfolio for current and future generations of Kansas and Missouri customers.
These projects will expand the tax base of our communities and bring both construction and permanent jobs to our local economies.
These Investments are critical to ensuring. We can affordably and reliably serve, our customers and support growth in our region.
Regarding impacts of the 1, big beautiful, bill act. We believe that we are well positioned to realize the solar tax credits, for the benefit of our customers on all 3 of our approved solar Farms.
For future unannounced Renewables projects that were identified in our 2025 IRP.
Over the balance of the year. We will continue to evaluate a robust set of options, including the results of our pending all Source RFP.
As part of this review, we will also assess the additional natural gas and storage editions that were identified in the most recent RP, as well as Retirement timelines.
Our expectations for the go. Forward plan will be reflected in the capital Plan update that we will provide during the year-end call in February. And if you try RP updates,
As we develop solutions to meet the generation capacity needs of our customers. We are committed to a flexible approach that evaluates multiple scenarios and incorporates, stakeholder feedback.
With an ultimate goal of insurance reliability and affordability for our customers.
I'll conclude my remarks with slide 12, which highlights the core tenants of our strategy.
By prioritizing affordability, we contribute to the robust Economic Development pipeline ahead of us. And lay the groundwork for continued support of the substantial economic potential within our states.
Ensuring reliability is also a core element of our strategy as reflected by Sadi safety grid resiliency and generation Fleet availability.
This Al includes a focus on metrics relating to customer service Safety and all facets of our operations and infrastructure investment.
With respect to sustainability about half the power generated by everybody comes from emission-free resources.
This is 2005. We have reduced carbon emissions by 57%.
And reduced self reduction in nitrogen oxide emissions by 98% and 90% respectively.
Our integrated resource plan Embraces and all the above strategy for future resources supporting and responsible transition of Our Generation portfolio.
We look forward to continuing to advance a balanced mix of resource additions, over the coming years, as part of our constant focus on affordability, reliability and sustainability.
I will now turn the call over to Brian.
Thank you, David. Thank you, Pete and good morning, everyone.
And forecasting to be at the midpoint of our 3.92 to $4.12 of adjusted EPS guidance.
Let's now begin on, slide 14 with the review of our results for the quarter.
For the second quarter of 2025 evergy, delivered adjusted, earnings of 191 million or 82 cents per share compared to 207 million or 90 cents per share. And the second quarter of 2024
as we disclosed in our first quarter slides, we had forecasted approximately 76 cents to 84 cents of adjusted, EPS for the second quarter of 2025. And thus, our results. For this quarter came in a bit higher than the midpoint of our forecast, overcoming the mild weather.
As shown on the slide from left to right. The year-over-year drivers are as follows.
First, a cooler start to the summer, led to a 26%, decrease in cooling degree days, which drove a 15% decrease in EPS when compared to the prior year.
By normalizing weather in both Q2 2024 and Q2 2025. You can see we experienced solid year-over-year, total company earnings growth in second quarter, 2025,
Next, the net impact of pricing and whether normalized demand, which grew 1.4% added 8 cents per share.
Recovery of and return on regulated Investments contributed 9, cents of eps driven by new rates of Missouri, West that were effective in January of this year.
Higher on M, drove a 5-cent negative variance in EPS compared to Q2 2024.
It is important to note that onm came in on plan in the second quarter and we expect to come in under budget for 40 and M for the full year 2025.
Infrastructure investment, resulted in higher depreciation and interest expense, leading to a 7%, decrease in EPs and finally other items netted to a positive 2 cent variance.
I'd also like to touch on our decision to exit our average Ventures business that holds small non-regulated investments, in early stage, clean energy, and energy solution. Companies, this business was launched in 2015, and the majority of the investment commitments were made in the first 5 years.
Given averages focus on our regulated utilities, we have made limited new investments in recent years. And in the second quarter, we initiated a process to sell the portfolio.
We recorded losses related to these investments of approximately $0.08 in the second quarter, which are excluded from adjusted earnings.
The remaining book value of these investments was $100 million as of June 30th, and cash proceeds from the sale of this portfolio will be used to reduce holding company debt.
Importantly, we assume no annual earnings contributions from these investments in our 5 year plan.
Turning to slide 15. I'll provide more detail on our sales trends.
On the left hand side of the screen, you'll see whether normalized demand increased by 1.4% in the second quarter as compared to the to the as compared to last year. This growth was primarily driven by increases in both residential and Commercial usage. Looking ahead, we continue to expect strong commercial load growth for the remainder of the Year supported by meta's data center. Ramping its operations
Additionally, as David mentioned earlier, Panasonic's latest load, ramp schedule remains largely consistent with our assumptions and our 5 year forecasts.
Which should support a pickup in industrial demand through the balance of the year.
In fact, for the month of June, we saw a year-over-year increase in Industrial Sales which we hope portends, well for the rest of 2025.
I will close on slide 16 with the recap of our long-term Financial expectations.
as I previously mentioned, previously, mentioned with solid second quarter, results and strong operational execution, through the first half of the year, we are reaffirming our 2025 adjusted EPS, guidance range a 3.92 to $4.12
And with normal, whether the remainder of the year, we believe we are we are on track to to achieve the midpoint of that range.
We're also reaffirming our long-term adjusted EPS, growth Target of 4 to 6% through 2029. And we continue to expect to grow in the top half of that range off of the 2025 adjusted, midpoint of 4.2
And I want to reiterate that we continue to see strong Tailwind to our forecasts, including potential additional large customer announcements.
Lastly, we expect to provide an update on our 5-year load, forecast capital and financing plans and earnings outlook on our year-end call and February.
Evridges employees and leaders remain focused on consistent business, execution of our operational and financial goals. As we advance our strategic, objectives of affordability, to reliability and sustainability for our customers. And with that, we will open up the call for your questions.
Thank you. At this time. We will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 1 1 on your telephone, and wait, for your name to be announced.
Please press star 1 1 again.
Our first question comes from Nicholas Campanella from Barclays. Please go ahead.
Hi everybody. Good morning, it's Nathan. Richardson on, for Nick
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We hear you now. Thank you. Okay. Okay, go ahead. Next
Hi everybody. Good morning, it's Nathan. Richardson on for Nick.
Good morning. Good morning.
I was just wondering if you could expand a little bit on, um, the higher thing about the timing to de-risk equity needs Beyond 25. And would you do something this year, like a forward or something along those lines? If you saw the opportunity,
Sure, I'll open and hand it to, uh, Brian. You'll recall, uh, from our last quarter, call that we described that no plan, uh, Equity raised in 2025 and roughly 600 million per year in 26, and 27. And we laid out in this, slide deck again the
anticipated, uh, cumulative 2.8 billion need, um, you know, obviously we've seen that our, uh, peers have used variety variety of tools, including ATMs and other. So we, uh, we think we have a lot of flexibility in how we approach it. We probably continue to think about in terms of that size and timeline. But Brian, anything you'd add. Yeah, no, I think that's absolutely right. You know, we we have been patient accessing the equity markets until we made progress on our 2025 initiative and continue to feel confident in the Tailwind for our stock valuation. Uh, but as David said, all that being said, we'll consider chipping away at our Equity needs in the months ahead kind of under our preferred routable ATM program. You know, that would have for itself and as David mentioned, just as a reminder uh we have no need to settle Equity here in 2025.
Thank you, that's helpful. And then on Panasonic you mentioned in the prepared remarks that
um,
The schedule is is on track with with your expectations but if they were to not ramp um within your expectations, how could that impact 4 to 5% load growth and is that still achievable? Um, if they were to ramp at a at a lower level than you expect currently
So we I attended the grand opening of Panasonic in July. It's an extremely impressive facility. Um,
they described as the largest ev battery in the world and having seen it. Um, uh,
Believe it.
uh, our forecast is in line with, uh,
What they've described with those recently in airmed, it's a very big investment that they've made. So obviously they want to, uh, start generating from there but to get it to your question, we've got, as we've described a very robust Economic Development pipeline. Um, and you know when you look across the broad set of our customer base, um we've only included our forward Outlook. And the guidance we've brought up to now at 2 to 3% of load growth through 2029.
We've described how the second category of customers and finalizing agreements. If we add, those would get us to 4 to 5% that we have, not yet, included them in our forward Outlook. So, overall, what I described is, uh, that we've got a lot of Tailwinds overall, with respect to demand growth potential and any given customer if it has a shift in, um, its Ramp rates, or otherwise, we've got a, a robust portfolio and a lot of customers in the queue, of course, who are
Uh, stand, ready, and eager hoping to move up if they can. But overall, I described that we see Tailwind for overall load forecasts on them sized. We've included include up to now is only the 2 2 to 3% load growth to 29.
Understood. Thank you very much for the time.
Thank you.
Thank you.
Our next question comes from Julian Smith from Jeffrey's, please. Go ahead.
it's it's kind of a balance of both what I described because a number of these customers
Um, well first we focused on the the 4 to 6 gigawatts that we described in the Tier 1 larger customers there.
Uh, these are complicated of a multi-billion dollar facilities. So there's a lot of work that we've Advanced, and that they've Advanced and moving these forward. So partially this is a stage of development reflecting the different parts of our queue and partly it's based on who we've kind of advanced to further up in the queue.
But different customers, uh, May for example, be bringing with them. Um,
Potential generation resources, the more flexibility, they have, you know that then that raises potential. So I described it as the first 4 to 6, gigawatts of the ones we're in the most advanced discussions. They're you know we we reach the agreements with them, they've advancing uh, their infrastructure, we're advancing ours, they've posted significant financial commitments to us.
With significant credit support.
And the remainder of the pipeline are folks who stand ready? Um if for whatever reason we don't expect it to happen. If any of those customers are unable to move forward but we the more flexibility they bring the more uh resource potential. They have that's potential upside from there.
Great. Um, and then just lastly, uh, on the earnings review, surveillance with the Kansas central rate case. Uh, you know, as you're improving your earned return profile in the State, uh, prospectively, should we view this kind of 50/50 proportionate share for over earnings as as precedent setting for future proceedings? Or is this a near-term mechanism for this? You know, very current High load growth phase. You're in
It's a astute question so it is uh the way the mechanism formerly works is, it's established between now and the next rate case. So, within the 4 Walls of the agreement, it applies between the next rate, case, sort of inarguably. It is a settlement and it is reflects a precedent. It doesn't mean that it's going to dictate. What's going forward. What I said, it's a positive, is that historically Kansas central has been a jurisdiction that has not achieved its authorized returns. It's, it's had some lag. Um, and in the post merger phase, for example, we had a mechanism like this in place. It didn't end up being operative for campus Central because it wasn't earning. So it would be a, um, a a real positive for uh, that jurisdiction to achieve, its authorized levels. So it's a win-win for all concerned. If we end up in a 50/50 sharing posture,
Fantastic. Thank you very much.
Thank you.
Thank you.
Our next question comes from Travis Miller from Morningstar. Please go ahead.
Good morning. Thank you.
Good morning, Travis.
Uh just a quick 1, I think in terms of the numbers the 8 and a half percent rate based growth. Does that now include those gas plants and solar or is there upside at 8 and a half percent?
Um, so it's a good question. The 8 and a half percent reflects the uh
Rate based growth associated with a 17 and a half billion Capital plan that we've laid out and the details of that by year are laid out in the appendix. You'll see that the
Relative share of that. Capital plan is a little more weighted towards the out years as we ramp up some of our investments.
But relative to our most recent integrated resource plan, it only includes a discrete number of investments. To make that clear to everyone, we've actually laid it out on the slide—it's on slide 21.
Which lays out the different generation projects in our IRP. And there's actually a column specifying whether it's in the capital plan or not. And as I described and as Brian mentioned, is we, uh, get to the end of the year and we finalize agreements with additional customers.
Uh, we'll also finalize the plans relating to what investments are required to serve them. We'll look at the retirement scenarios. There were also included in the last IRP because it's a little bit different environment for some of the assumptions relating to retirements as well.
Um, but overall we expect as part of the year end update and the year, end call in February to talk about our new load forecasts. The increment incremental investments will be required to serve them. So as as part of an updated 5 year Capital plan uh and the related earnings impact, so there's um, you know, it'll change some from what's in the slide in 21 because we'll look at that full set of inputs. But as Brian described, there are significant additional Tailwind with respect to to low growth and they'll be Investments to serve that load. And overall, it's a great story. We think for the prosperity of our region, the growth of our company and the and the growth of our, uh, communities
okay, so so just to summarize here, if I'm looking at those 2 slides, the gas plants and the solar plants are
included.
Uh, the proceedings are also included in the plan or the bulk of the.
Resources that haven't yet gone through approvals are not yet in the plan.
Okay. Okay, very good. And then just conceptually and I know you're going to said multiple times here that you you'll update all this but just conceptually the difference between that 8 and a half percent rate based growth and the 4 to 6% EPS growth.
Is there a big piece missing? And obviously there's a finance drag, but
Should we anticipate an update that brings those closer obviously the earnings going up.
yeah, we we've described and it um,
We describe that from this year onward, we expect to be in the top half of the 46% range.
You'll see in our Capital plan. As I mentioned that the level of capital investment ramps 272829 in particular. That's also laid out year by year.
Uh, in the appendix and slide 22. So our overall average 8 and a half percent rate based growth is higher. Um you know, that's the average rate but it's lower in the early years and higher in the out years. So it's
Partly a reflection of, you know, our our earnings growth Target, we haven't described Kingston the line or otherwise. Um, but we do think as Brian described between the additional customers, we'll see, um, the Investments to serve them, um, some Tailwinds that we, you know, where we are hopeful, we'll be able to describe and that you're in call, all reflecting, you know, growth and and, uh,
Opportunities for our customers and communities.
Um, so it's a, a dynamic that reflects over the pacing and and schedule of the capital Investments, um, and our, you know, wanting to make sure we got high confidence that we're achieving them and having, we've shown an integrated growth rate, but we look forward to giving you an update on that in the urine call.
Sure. Okay, I appreciate that, and then one higher level one.
You got a couple different moving Parts here in terms of the load coming on. Now you've got this pretty pretty good site on the generation build.
At what point?
Is the system it does this now balance the entire system, you know, you you perhaps decide the generation sources? Maybe had a demands over uh, coming on faster than expected it or do you now see the system balanced.
Over the next 3 to 4 years.
Well, we're in a really Dynamic environment. So, obviously,
Even though in a range of 4 to 6, gigawatts, uh, we're a company that total Peak demand in the summer, is in the 10 and a half gig watt range. So we have a 2. Gigawatt range is
Um, a pretty Dynamic element. So we have a really thorough process in our company.
Of looking at the related.
Long-term elements that are going to be important for that balance. So total customer load generation needed to serve the transmission and distribution infrastructure to serve. Those are 3 parallel, long lead time pads that you want to get synced up and I think we've got a robust process for looking at it. Um, so yes, we we anticipate what we described in the urine call is going to reflect a balanced approach to serve the announced customers that we've seen and we built some flexibility in our system to accommodate the ranges that might result, but that's the magic of the situation we're in. And that's the reason why we're hired to do the jobs. We do is to to strike that balance. Its was a simpler process when load growth was a half percent to 1% a year as it was for
You know, we were fortunate to have growth but in some jurisdictions with slat, now it's a more Dynamic environment with a level of growth, we're seeing. But we absolutely believe that we can achieve that balance.
But we also know that we have to stay uh, Nimble and work with our customers at the same time, to strike that balance because 1 of the exciting things is that customers and you've seen 1 of our large customers announced. For example, a renewable investment, they were supporting at the time. If we line up the ca capacity for it, that allows
Uh, some balancing even as we work with our customers on it, now will be important feature, particularly for the folks who are in the in the balance of our pipeline, as we look at options. So yes, it's a system that will be in Balance, but it's certainly a dynamic environment. But we believe that we have a plan. A robust plan will be able to ensure that we can serve the new customers to come on.
Sure thing. Yes, no, I appreciate it. That's all I had.
Thanks, thank you.
Thanks for having us. Thank you.
Our next question comes from Paul Patterson from Glenrock Associates, please go ahead.
Hey, good morning.
Morning Paul. Um,
On the large load. Um,
uh, slides, that you provide us, I'm just sort of wondering, um,
you know, in the, uh, finalizing agreements.
I guess in advance discussions. How much do these large load proceedings?
The Tariff ones. Um,
that the respective commissions play into
We think of the pipeline and the potential impact. I noticed the staff and...
I think it was a Missouri wasn't completely on board. I know you guys are in discussions or it sounds like you guys are. So my question sort of is, is a
How much do these large loads? Look at this thing as a sort of gating factor. Um, and then B,
um,
how do you think about the settlement discussions that you're that are underway in the respective commissions?
That's a great question Paul. Um,
We are far advanced in discussions with a specially, the customers, in the actively building category, but also in the finalizing agreements category, we need to disclose that we've had 200 million of financial commitments.
Um, from the customers and finalizing agreements categories. So they are advancing significant work. We're advancing significant work with backing from the customer so it's not a gating item to starting anything. I think it's an important input, it's fair to say and I we described it that way, really for the last couple of calls that we always expected announcements.
Some of these are incremental, with the additional customers by year-end because one of the inputs is being looked at as a large load of power service, tariff proceeding.
But, as you know, from the broader environment that we're working under in the U.S., there's...
such high demand for power infrastructure to support data centers that they're not waiting. They're moving forward and we're seeing significant activity.
And the financial backing to support it, um, on their side and supporting the work we're doing. So it's an important input um, as it would be for any customer but the work's advancing in parallel. Um, we still anticipate announcements by year end, and we think 1 of the inputs to, that timeline is the proceedings. We are in settlement discussions that are active in the Kansas odd. It's been promising discussions. Um, and uh, we laid out the schedule and in the script and in the slides as to when those will proceed but we think the discussions have been constructive and we're certainly uh going to push forward and see and seek to find a settlement.
Okay. And that's the and Missouri's pretty similar.
It is canceled, a little ahead in the settlement discussion timeline. If neither side, uh, reaches settlements, then the hearings will start getting in a pretty parallel path. But, uh, Kansas is first in terms of the settlement discussion timeline.
Okay. Um, and then
uh,
we spoke to Renewables. Um, I'm just wondering, you know, uh,
As you know, there's been a lot of activity from the new administration in various agencies. Is there any of the stuff that's approved?
That subject to any. I mean, any additional Federal permitting or approvals
Um, you know, whether it's Department of interior transportation.
um, if you follow me it it seems like there's a um
there's a there's a considerable effort at the at the administration that seems to be calling at least some of these projects into question and it seems somewhat aggressive frankly. So I was just wondering if you could comment on how your projects are you know in that slide.
Visa sure.
Visa V, the obba and federal role. Well, these are these. These are the, the the federal activity that we seeing, in other words, I mean, if there's any sort of, you know, permitting or approval process at any of the, uh, um, uh, the the, uh, the respective agencies. And with respect to the treasury, I guess we'll find out what kind of guidance they're going to be giving. I'm sure you guys are aware of that as well. So, um, yes.
So just, you know, how should we think about that and, and, and your pipeline. It sounds like the stuff that you guys haven't that's in the RFP process, Etc. If I'm wrong, if I'm not wrong, is you're very flexible on it. I mean, if things change, things change, and, and you'll, you'll address them accordingly. But I'm just sort of wondering about the stuff that sort of is
Kind of in the, um, the birthing process for lack of a better word.
Yep.
Uh, we believe that the 3 solar projects that have been improved in the uh Kansas and Missouri proceedings will qualify under the obba given the work that's oh bbba given the work that's already. Uh
Advanced so that we believe they'll qualify under the rules.
And so the other projects that are listed on slide 2 21 in the renewals category as you noted and as I mentioned in my comments we do think we have a robust set of options. So we'll respond to
Uh, the evolving rules, the executive order. Uh,
Dictated a follow-up later this summer. So we'll see what, what comes out from the federal government and
And the, uh, we think we've got a robust set of options to respond. So, with respect to our forward plan,
Even in consideration of some uncertainties relating to, uh, renewables, we feel good about the.
Prospects are serving the large new customers and the Tailwind overall, with respect to the potential and the Investments that will be needed to serve those customers and the overall impact on the plan.
Okay. And so with respect to the Solar projects that are approved, there's no there's no more Federal approvals or permitting or anything associated with them. So we is that correct. Yeah we we believe that they qualify under the rules they stand now and I I will not uh I suppose possible. Those could continue to evolve but given the terms of the obba
uh and even of the executive order, we believe those 3 projects qualify, of course, we'll respond to the environment and uh but we we feel good about those 3 projects. And for the rest of the project, we'll respond with the rules are and we've got a lot of alternatives.
Awesome. Thanks so much guys.
Thank you.
Thank you.
Our next question, comes from Amber. Zoll from City. Please go ahead.
I think it's Ryan Levine with City. Um, a couple quick questions just around your gas generation build-out. What's the labor ramp and EPC strategy for the new gas generation building, and any color you could share around confidence to achieve the COD target?
Uh, so we have, um, you know, some of those terms are confidential, but we've, uh, we're working with a leading EPC provider and we feel good about our contractual terms.
Um, the overall approach to building these plants that were part of the predetermination process and laying those out.
um and uh work closely with that EPC provider in their labor strategy, they're very seasoned
Over the lot of experience in building plants across the U.S.
Um, we benefit, uh, in our region from, uh, access to a skilled workforce, a prospective workforce, and...
um,
Geographically. We're positioned in the sort of the epicenter of EPC capability as uh black and Beach Burns McDonald and a keyword's power division are all headquartered here in Kansas city. So we have a
A group that's dedicated to that has advanced those projects.
Moving forward. And we've worked closely with EP EPC provider with the predetermination and CCN approvals in hand, uh, moving forward with them. So, the we feel good about the Cod dates, you know, I've been around new construction build in my past,
um, so you need to have, make sure you've got a robust partnership and oversight process with those eppc providers. We believe, I believe we have that
Um and these are technologies that are known uh they are proven. They've been constructed by other parties so that helps including by our counterparty. So, uh, we feel good about the overall setup for the process recognizing that large project. Execution is a core skill that we're going to have to demonstrate, but we think we've set ourselves up for Contracting in a capability perspective and in our selection of our technology that we're doing to be in a good position to manage these projects. So we're excited about the those prospects and really grateful for the collaboration from staff in both States.
And the different parties as in getting those approvals for the for the gas plants.
and then just 1 follow up in terms of the contractual Arrangement, do the EPC companies have the ability to
Re re prioritize resources if other generation, if they get contracted for other projects or do you have contractual?
You know, we feel good about the overall contractual approach and, uh,
Commitment reflected in it from our EPC provider. So we, we good about the overall terms of the agreement that we have with our
Provider and there'll be a partnership with them, but there are seasoned Enterprises built a lot of these. So we feel good about the Productions that we built in the agreement.
Thanks for the call.
Thank you.
Thank you.
This concludes the question and answer session, I would now like to turn it back to David Campbell for closing remarks.
Thank you for your interest in energy and have a great day, this concludes our call.
Thank you for your participation. In today's conference, this does conclude the program. You may now disconnect