Q3 2025 Entergy Corp Earnings Call

[Analyst]: Foreign.

Greg: Hello everyone, my name is Greg and I will be your conference operator today. At this time I would like to welcome everyone to today's Entergy Corporation third quarter earnings call and teleconference. 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. If you'd like to withdraw your question, simply press Star one again. Thank you. I will now turn the call over to Liz Hunter, Vice President of Investor Relations for Entergy Corporation.

Hello everyone. My name is Greg, and I will be your conference operator. Today, at this time, I would like to welcome everyone to Today's Energy Corporation third quarter earnings call and teleconference. 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, that's star 1. If you'd like to address your question, simply press star 1 again. Thank you.

Liz Hunter: Liz, good morning. Thank you, Greg, and thanks to everyone for joining this morning. We will begin today with comments from Entergy Corporation's Chair and CEO, Drew Marsh. 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 Corporation 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. I will now 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 everyone for joining this morning, we will begin today with comments from energies chair and CEO Drew Marsh. 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. Reconciliations to the applicable. Gap 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

Drew Marsh: Thank you, Liz, and good morning, everyone. Today we are reporting strong financial results as well as continued progress on business and regulatory matters. Starting with our quarterly financial results, our adjusted earnings per share was $1.53. With our results to date and our biggest quarter behind us, we are narrowing our guidance, raising the bottom by $0.10. We also remain well positioned to achieve our long-term growth outlooks. Kimberly will review the financial details in a moment. Turning to the business, last quarter we achieved a first quartile net promoter score for utility residential service for the first time since we began tracking this metric. We're pleased to report that we've maintained our first quartile position. We are keenly focused on meeting the needs of our 3 million customers, and we believe our strategy will carry this momentum forward.

Thank you, Liz and good morning everyone.

Today we are reporting strong financial results as well as continued progress on business and Regulatory matters.

Starting with our quarterly Financial results, our adjusted earnings per share was a153.

With our results to date, and our biggest quarter behind us, we are narrowing our guidance. Raising the Bottom by 10 cents.

We also remain, well, positioned to achieve our long-term growth outlooks.

Kimberly will review the financial details in a moment.

Turning to the business.

Last quarter.

We achieved a first quartile. Net promoter score for utility residential services for the first time since we began tracking this metric.

Please report that we've maintained our first quartile position.

Drew Marsh: Our focus on the customer starts with keeping our rates as low as possible. To begin, we aim to maintain our average rates well below the national average through the remarkable commitment and creativity of our employees and a culture of continuous improvement. Today's share of wallet is roughly the lowest our customers have seen over the last 20 years. We expect it to stay in that range over the outlook period. Of course, there is more to it than that. We proactively manage the effect of fuel volatility on customers' bills through fuel hedging programs and mechanisms to defer fuel costs during peak prices. For individual customers, we have developed tools to help them manage their bills, such as approved bill discounts for low-income seniors, payment options like average billing and payment timing, energy efficiency services, and customer assistance programs like Power to Care and LIHEAP advocacy.

We are keenly focused on meeting the needs of our 3 million customers and we believe our strategy will carry this momentum forward.

Our focus on the customer starts with keeping our rates as low as possible.

Average rates well below the national average through the remarkable commitment and creativity of our employees and a culture of continuous Improvement.

Today's share of wallet is roughly the lowest. Our customers have seen over the last 20 years.

Drew Marsh: I'm proud to highlight that our digital LIHEAP platform recently received a Silver Best Practices Award from Chartwell for excellence in serving vulnerable customers. This tool streamlines access to energy assistance and provides real-time app updates for customers in need. As we've worked to attract new hyperscale data center customers, we ensure that they pay their fair share of energy infrastructure investments while bringing other significant benefits to our communities, such as jobs, property tax payments, direct municipal infrastructure investment, and workforce development. This is consistent with their stated intent to be good neighbors. For example, at the recent groundbreaking announcement, Google said that they will protect energy affordability for existing customers by covering the full cost of powering the data center in West Memphis. They are also committed to making a significant community impact, including a $25 million fund to accelerate local energy efficiency efforts and workforce development.

We ensure that they pay their fair share of energy infrastructure Investments while bringing other significant benefits to our communities. Such as Jobs property, tax payments, direct Municipal, infrastructure investment, and Workforce Development.

This is consistent with their stated intent, to be good neighbors.

For example, at the recent groundbreaking announcement, Google said that they will protect energy affordability for existing customers.

by covering the full cost of powering the data center, in West Memphis,

They're also committed to making a significant community impact.

Including a 25 million dollar fund to accelerate local Energy, Efficiency efforts and Workforce Development.

Drew Marsh: In September, Entergy Mississippi announced a new customer focused initiative known as Super Power Mississippi. The initiative includes a $300 million investment to harden the grid and improve reliability with the goal of reducing outages for customers by half within five years. We're able to add this investment for grid improvements at no additional cost to Entergy Mississippi customers because of new revenues from Amazon and other large industrial customers' investments in the state. Haley Fisakerly, our CEO in Entergy Mississippi, recently noted that customer rates would be 16% lower than they otherwise would have been due to these large customers, and that includes the incremental Super Power Mississippi investment in customer growth. News in late September, Sempra reached its final investment decision for Phase Two of its Port Arthur LNG project. In addition, a colocation data center, Avayo, announced an investment in Entergy Mississippi service area.

In September, Entergy Mississippi announced a new customer-focused initiative known as Superpower Mississippi.

The initiative includes a hundred million dollar investment to harden the grid and improve reliability with the goal of reducing outages for customers by half within 5 years.

We're able to add this investment for grid improvements.

At no additional cost to entry, Mississippi customers because of new revenues, from Amazon, and other, large industrial customers investments in the state.

Haley, facily, our CEO and entry Mississippi recently. Noted that customer rates would be 16% lower than they. Otherwise would have been due to these large customers and that includes the incremental superpower Mississippi investment.

In customer growth news and late. September simper reached. Its final investment decision for Phase 2 of its Port. Arthur LNG project.

Drew Marsh: While these were included in our probability weighted sales forecast, these developments continue to build confidence in our long term outlook. As a reminder, we probability weight potential industrial customers in our plans except for very large businesses like hyperscale data centers which we don't add to our plans until there is a signed electric service agreement. Because of our vertical integration, natural Gulf Coast advantages, thoughtful regulation, a long history of successfully working with large industrial projects, and now MISO's expedited connection mechanisms, we continue to see strong demand from businesses looking to locate in our service areas. This includes data centers but also customers from traditional industrial segments. Our data center pipeline has continued to grow and now is ascending from 7 to 12 GW.

Drew Marsh: This is based on active conversations with customers for whom we reasonably could expect to sign agreements within the next year or two with line of sight on incremental opportunities. We've added 4.5 gigawatts to our agreement for the purchase of power island equipment, including steam turbines, combustion turbines, and heat recovery steam generators. This addition represents six units that will be delivered in time to support commercial operations in 2031-2032. In total, we now have secured more than 19 gigawatts of capacity, 11 gigawatts of which is accounted for due to growth or other supply needs. That leaves 8 gigawatts for additional growth. We secured other critical equipment, including transformers and breakers, and we secured 90% of materials required for our planned transmission projects through 2030. We also have agreements with EPCs for the generation projects through mid-2029. We have line of sight for additional projects.

Our data center pipeline has continued to grow. And now is sending to from 7 to 12 gigawatts.

This is based on active conversations with customers for whom we reasonably could expect to sign agreements within the next year or 2

With line of sight on incremental opportunities, we've added 4 and a half, gigawatts to our agreement for the purchase of power Island equipment.

Including steam turbines combustion turbines and heat recovery steam generators.

This Edition represents 6 units, that will be delivered in time to support commercial operations in 2031 to 2032.

In total.

We now have secured more than 19 gigawatts of capacity.

Due to growth or other Supply needs.

That leaves 8, gigawatts for additional growth.

A secured other critical equipment including Transformers and Breakers and we secured 90% of materials required for our planned transmission projects, through 2030.

We also have agreements with EPCs for the generation projects through mid-2029.

We have a line of sight for additional projects.

Drew Marsh: We're also well positioned for solar projects. For our owned projects, we secured approximately 75% of our critical equipment, including generator step-up transformers, high voltage breakers, and solar modules. We also have clear line of sight to the remaining 25% through our existing supplier relationships. In July, FERC approved MISO's expedited resource addition study, or ERAS, process. We have since submitted nine interconnection requests for 12 plants into the new process. Eight of these plants in our ARES submission are in our plan, and four are available for incremental growth. ERAS has worked well to support speed to market for customers trying to come online as quickly as possible, as well as help us respond to the national security priority for rapid energy deployment to win the AI race. Expect to start receiving our first project approvals by the end of this year.

We're also well positioned for solar projects.

For our own projects, we secured approximately 75% of our critical equipment, including generator, step-up, Transformers high voltage, Breakers and solar modules.

We also have clear line of sight. So the remaining 25% through our existing supplier relationships.

In July furk approved mitoses expedited resource Edition study or eras process.

We have since submitted 9, intercessors for 12 plants into the new process.

Eight of these plants in our area submissions are in our plan, and four are available for incremental growth.

Harris has worked well to support speed to market for customers trying to come online as quickly as possible.

As well as help us respond to the national security priority for rapid energy deployment to win the AI race.

Expect to start receiving our first project approvals by the end of this year.

Drew Marsh: With standardized designs for our generation projects and our transmission lines, and our history of successful execution on large projects, we remain confident in our ability to manage our operations and execute on our capital plan. We're also well positioned to serve potential new customers above our current plan.

The standardized designs for Our Generation projects and our transmission lines and our history of successful execution on large projects.

We remain confident in our ability to manage our operations and execute on our Capital plan.

We're also well positioned to serve potential new customers above our current plan.

[Operator]: For.

Drew Marsh: The customer base that continues to grow. Perhaps it is no surprise that our system as well as Entergy Arkansas and Entergy Texas hit new peak loads in July. Our system performed well during these high load periods. Responding to that customer growth, Entergy Texas remains on track for the completion of the Orange County Advanced Power Station next spring. The plant's commissioning is underway and first fire is expected in December. Our other large generation and transmission projects are also on track. Last week Entergy Mississippi broke ground on the Vicksburg Advanced Power Station. We'll also support customer growth, including the large customer that Entergy Mississippi signed this past February. Entergy Louisiana recently announced selections from its baseload generation RFP to support customer growth that includes two combined cycle resources that will be self builds for accelerated resilience.

For the customer base that continues to grow. Perhaps it is no surprise that our system as well as energy Arkansas and energy Texas. Hit new Peak loads in July.

Our system performed well during these high-load periods.

Responding to that customer growth energy, Texas remains on track for the completion of the Orange County Advanced Power Station next spring.

The plant's decommissioning, you know, not decreasing the plant's commissioning. We're just getting started with that. The plant's commissioning is underway, and first fire is expected in December.

Our other large generation and transmission projects are also on track.

Last week entry Mississippi broke ground on the vixs advanced power station.

We'll also support customer growth including the large customer that energy. Mississippi signed this past February.

In Louisiana recently, announced selections from its base load generation RFP to support customer growth.

And that includes 2 combined-cycle resources that will be self-built.

Drew Marsh: We expect to file Phase two plans in Louisiana and New Orleans within the next several months. This timing allows us to maintain operational momentum with our resilience investments. To date, our operating companies have invested about $580 million in approved reserve resilience work. We've completed 32 line hardening projects upgrading more than 13,000 structures and we have hardened 10 existing substations to mitigate the impacts of both hurricane force winds and storm surge. In addition, Entergy Texas was recently awarded $200 million in grant funding by the PUCT from the Texas Energy Fund for resilience projects with no cost to customers. The grant will allow for the hardening of more than 8,000 distribution poles covering 338 miles as well as hardening 16 transmission lines.

For Accelerated Resilience, we expect to file Phase 2 plans in Louisiana and New Orleans within the next several months.

This timing allows us to maintain operational momentum with our resilience investments.

Today, our operating companies have invested about $580 million in approved resilience work.

We've completed 32 line, hardening projects, upgrading more than 13,000 structures.

And we have hardened 10 existing substations to mitigate the impacts of both hurricane force, winds and storm search.

In addition energy Texas was recently awarded $200 million in grant funding by the puct from the Texas energy fund for resilience projects.

With no cost to customers.

Drew Marsh: We appreciate the proactive support from our state regulators and legislative bodies to improve the storm readiness of our system for the benefit of all customers. With the customer growth opportunity before us and excitement throughout our service areas, we continue to work with our stakeholders including regulators, elected leaders, community leaders and local vendors to meet customers' needs and to improve their outcomes. In August, the Louisiana Public Service Commission approved the settlement for generation and transmission resources needed to serve Meta. Meta's generational investment will bring significant benefits including jobs, workforce development, and state and local tax income. In addition, as the LPSC staff highlighted at the business and executive meeting, contracted minimum bills ensure that Meta is paying the incremental cost to serve them during the contract term without imposing costs on other customers.

The grant will allow for the hardening of more than 8,000 distribution. Polls covering 338 me as well as hardening 16 transmission lines

We appreciate their proactive support from our state regulators and legislative bodies to improve the storm readiness of our system for the benefit of all customers.

With the customer growth opportunity before us and excitement. Throughout our service areas, we continue to work with our stakeholders, including Regulators elected, leaders Community leaders and local vendors to meet customers needs and to improve their outcomes.

In August, the Louisiana Public Service Commission approved the settlement for generation and transmission resources needed to serve Meta.

Meta's generational investment will bring significant benefits, including jobs, workforce development, and state and local tax income.

in addition, as the lpsc staff, highlighted at the business and executive meeting,

Drew Marsh: These features provide benefits to support keeping rates as low as possible for Louisiana customers. Last week, the Louisiana Public Service Commission also approved the 200 megawatt Bogalusa West Solar project, which was the first project approved through Louisiana's accelerated solar approval process. In Arkansas, the Public Service Commission approved the Generating Arkansas Jobs Act rider. This rider, enabled by the legislation this past spring, allows recovery for new economic development related and other customer critical generation and transmission investments outside of the formula rate plan's 4% cap. Additionally, it includes recovery of carrying costs on CWIP during construction, thus lowering costs for customers. Under the new rider, Entergy Arkansas filed in early August for the Jefferson Power Station approval.

Is paying the incremental cost to serve them during the contract term without imposing costs on other customers.

These features provide benefits to support keeping rates as low as possible for the Louisiana customers.

last week, the Louisiana Public Service Commission, also approved the 200 megawatt Bogalusa, West solar project,

which was the first project approved through Louisiana's accelerated solar approval process?

In Arkansas.

The Public Service Commission approved the generating Arkansas jobs act writer.

This writer, enabled by the legislation from this past spring, allows recovery for new economic development-related and other customer-critical generation and transmission investments outside of the formula rate plans, with a 4% cap.

Additionally, it includes recovery of carrying costs on sea whip during construction, thus lowering costs for customers.

Drew Marsh: Also under the new rider, Entergy Arkansas filed for approval in September for Cypress Solar, a solar and battery storage facility to support economic development via Google's recently announced data center. Moving to Texas in September, the Public Utility Commission approved the Legend Combined Cycle Power Station and Lone Star, a simple cycle peaking unit. They will provide efficient, reliable power to support the rapid growth in our Southeast Texas service area. While the Commission approved the generation, it also implemented a cost cap in our filed cost estimates totaling $2.4 billion including transmission carrying costs and contingency. As I noted earlier, we have already contracted with the EPC and secured the long lead time equipment, which comprise a significant portion of the construction costs.

Under the new Rider entity Arkansas filed in early August for the Jefferson Power Station approval.

Also, under the new rider entry, Arkansas filed for approval in September for Cypress Solar.

A solar and battery storage facility to support Economic Development via Google's recently announced Data Center.

Moving to Texas.

In September, the Public Utility Commission approved the Legend Combined Cycle Power Station.

And Lone Star a simple cycle, peaking unit.

They will provide efficient reliable power to support the rapid growth. In our Southeast, Texas service area.

While the commission approved the generation, it also implemented a cost cap at our filed cost estimates totaling $2.4 billion, including transmission carrying costs and contingency.

as I noted earlier, we have already contracted with the EPC and secured the long lead time equipment, which comprise a significant portion of the construction costs,

Drew Marsh: The Texas Commission also recently approved two large transmission projects that serve growth and improve reliability and resilience of the system: Seatex, the Southeast Texas Area reliability project at $1.4 billion 500kV line, and the Legend of Sandling 230kV line, which will serve industrial customers in Port Arthur including Phase two of the Sempra LNG project. Separately, Entergy Texas filed for an increase in its DCRF rider. We expect a decision from the PUCT by the end of the year. These are exciting times in Entergy and exciting times for our industry. We are delivering unprecedented growth for our region and economic development that benefits the customers and communities we serve. At the same time, we are answering the call to support our national security through our rapid response to the energy needs of companies working to win the global AI race.

The Texas Commission also recently approved two large transition projects that serve growth and improve the reliability and resilience of the system.

CTX the Southeast Texas area reliability project at 1.4 billion, 500kv line, and the legend of sandling 230 kV line.

Which will serve industrial customers in Port Arthur including Phase 2 of the SRA LNG project.

Separately entry, Texas filed for an increase in its dcrf Rider.

We expect a decision from the Beast, the puct by the end of the year.

These are exciting times and energy and exciting times for our industry.

We are delivering unprecedented growth for our region and economic development. That benefits, the customers and communities, we serve

Drew Marsh: All that while keeping rates as low as possible for our customers. The EEI Financial Conference is in a couple of weeks and we'll share additional color regarding the strong foundations underpinning our differentiated growth story. Notably, our long-term customer sales growth outlook is robust, including continued support from both traditional industrial and data center customers. We are well positioned to support speed to market through our supply chain positioning, design choices, stakeholder engagement, and strong balance sheet, and we are successfully executing on critical issues that our existing customers care about, including keeping rates as low as possible and deploying resilience and reliability investments. We look forward to continuing this conversation with you at the EEI Financial Conference in a couple of weeks. I'll now turn the call over to Kimberly, who will review our financial results for the quarter. Thank you, Drew. Good morning, everyone.

At the same time, we're answering the call to support our national security through our rapid response to the energy needs of companies working to win the global AI race.

All that while keeping rates as low as possible for our customers.

The eei financial conference is in a couple of weeks and we'll share additional color regarding the strong foundations. Underpinning our differentiated growth story notably

Our long-term customer sales growth outlook is robust, including continued support from both traditional industrial and data center customers.

We are well, positioned to support speed to Market through our supply chain. Positioning design, choices, stakeholder engagement, and strong balance sheets, and we are successfully executing on critical issues that are existing customers care about including keeping rates as low as possible, and deploying resilience and reliability Investments.

We look forward to continuing this conversation with you at the eei financial conference in a couple weeks.

I'll now turn the call over to Kimberly who review our financial results for the quarter.

Drew Marsh: We had another great quarter. I'll now walk through our financial results as well as our guidance and outlooks, and I'll provide a look ahead to EEI, starting with earnings. Our adjusted EPS for the quarter was $1.53 as shown on slide 4. Primary drivers were strong sales growth and the effects of investments made for our customers, partially offset by higher other O&M and other operating expenses and an increase in our share count from settling equity forward. Earnings contribution from sales growth was positive even with weather being milder this quarter compared to last year. Weather-adjusted sales for the quarter were once again very strong, increasing approximately 4.5%. Industrial sales were the largest contributor with more than 7% growth, primarily from new and expansion customers that continue to ramp up their operations.

Thank you, Drew. Good morning, everyone. We had another great quarter. I'll now walk through our financial results, as well as our guidance and outlook, and I'll provide a look ahead to EEI.

Starting with earnings, the adjusted EPS for the quarter was $1.53, as shown on slide 4.

Primary drivers were strong sales growth and the effects of investments made for our customers, partially offset by higher other operating expenses and an increase in our share count from settling equity forward.

Earnings contribution from sales growth was positive even with whether being milder this quarter compared to last year.

Were once again, very strong, increasingly 4 and a half percent.

Industrial sales were the largest contributor, with more than 7% growth.

Drew Marsh: Slide 5 summarizes our credit ratings and affirms that our credit metric outlooks remain better than rating agency thresholds in the quarter. S&P issued credit reports on each of our operating companies and Entergy Corporation. Moody’s also issued reports on Entergy Mississippi and Entergy New Orleans. Both agencies affirmed all ratings and outlooks. Last quarter we discussed the nuclear tax credits earned in 2024. Since then we have completed transactions to monetize these which netted more than $535 million after transaction. We continue to work with our regulators on how and over what time period we will provide these benefits to customers. We expect this to happen over an extended period of time. As a reminder, because the value of nuclear PTCs is highly dependent on average revenue per megawatt hour, we do not include cash benefits in our cash flow or credit metric outlooks beyond 2025.

Primarily from new and expansion, customers that continue to ramp up their operations.

Slide 5 summarizes our credit ratings and affirms that our credit metric outlooks remain better than rating agency thresholds.

In the quarter, S&P issued credit reports on each of our operating companies and energy Corp.

Moody's also, issued reports on energy, Mississippi and energy. New Orleans both agencies, affirmed, all, ratings and outlooks.

Last quarter we discussed the nuclear tax credits earned in 2024.

Since then, we have completed transactions to monetize these, which netted more than $535 million after transaction costs.

We continue to work with our regulators on how and over what time period we will provide these benefits to customers. We expect this to happen over an extended period of time.

Drew Marsh: We’ll talk more about our credit at EEI, but I’ll give you a quick preview. Our credit metric outlooks are strong with FFO to debt above our thresholds throughout the outlook period, achieving our 15% target during the period. Our financial health is bolstered by all the work we’ve done including the structure of our new large customer ESAs to protect existing customers and our credit improvement in our pension funded status. Constructive regulatory mechanisms and conservative planning assumptions, all of these have strengthened our balance sheet and created benefits for our customers. We continue to see strong underlying fundamentals and flexibility to meet our objectives. We are rolling forward our outlooks to 2029, shifting our four year capital and equity plans forward. As you can see on Slide 6, our updated capital plan for 2026 through 2029 is $41 billion.

As a reminder, because the value of nuclear PTCs is highly dependent on average revenue per megawatt-hour, we do not include cash benefits in our cash flow or credit metrics outlooks beyond 2025.

We'll talk more about our credited eei but I'll give you a quick preview. Our credit metric, outlooks are strong with ffo to debt above our thresholds throughout the Outlook period, achieving our 15% Target During the period

Our financial health is bolstered by all the work we've done, including the structure of our new large customer Esa to protect existing customers and our credits.

Improvement in our pension funded status constructive regulatory mechanisms and conservative planning assumptions.

All of these have strengthened their balance sheet and created benefits for our customers. We continue to see strong, underlying fundamentals and flexibility to meet our objectives.

We are rolling forward, our outlooks to 2029 shifting our 4-year capital and Equity plans forward, as you can see on slide 6.

Drew Marsh: The equity associated with that plan is $4.4 billion within the 10% to 15% range of the total capital plan. Our capital and equity plans include alternative financing assumptions which shift the capital outlay for some projects beyond our 2029 outlook. This better aligns the cash outflow with when assets are placed in service. We have been proactive in addressing our equity needs, selling forward contracts through our ATM as well as the block transaction we executed in March. We’ve taken significant price risk off the table and have ample time to raise capital including through our ATM program. For our 2026 through 2029 equity need, about 45% is already contracted which takes us well into 2027. Through the third quarter, we have settled approximately $800 million of equity forwards in October. After quarter end we settled an additional approximately $330 million or about 5.7 million shares.

Our updated Capital plan for 2026 through 2029 is 41 billion.

The equity associated with that plan is 4.4 billion within the 10 to 15% range of the total Capital plan.

Our capital and Equity plans include alternative financing assumptions, which shifts the capital outlay for some projects beyond our 2029 Outlook.

if better aligns the cash outflow with when assets are placed in service,

We have been proactive in addressing our Equity needs, selling for contracts, through our ATM, as well as the block transaction. We executed in March,

We've taken significant price risk off the table and have ample time to raise Capital including through our ATM program.

For our 2026 through 2029 Equity, need about. 45% is already contracted which takes us well into 2027.

Drew Marsh: We are using these funds to continue to invest for the benefit of our customers. Our adjusted EPS guidance and outlook are shown on Slide 7. As Drew mentioned, with solid results through the third quarter, we are narrowing our 2025 guidance range, raising our bottom by $0.10 higher than planned. Revenue from weather as well as other planning updates have enabled us to manage the business and flex spending in areas that benefit our customers. Our flex program helps us ensure that we deliver predictable adjusted EPS growth year in and year out while meeting our customer needs. Looking beyond 2025, we continue to see very strong growth driven by our customer-centric capital plan. Our adjusted EPS through 2028 remains unchanged and as we add 2029 to our outlook period, our long-term compound annual growth remains strong at greater than 8%.

Through the third quarter, we have settled approximately 800 million of equity forwards in October after quarter end, we settled an additional approximately 330 million or about 5.7 million shares.

We are using these funds to continue to invest for the benefit of our customers.

Our adjusted EPS, guidance and Outlook are shown on slide 7. As Drew mentioned with solid results. Through the third quarter. We are narrowing our 2025 guidance range. Raising the Bottom by 10 cents.

Higher than planned revenue from weather as well as other planning updates have enabled us to manage the business and flex spending in areas that benefit our customers.

Our Flex program helps us ensure that we deliver predictable adjusted EPS growth year in and year out while meeting our customer needs.

Looking Beyond 2025, we continue to see very strong growth driven by our customer Centric, Capital plan.

Drew Marsh: Drew and I, along with our operating company leaders, will be in Florida in less than two weeks where we will talk about our strong customer growth story as well as our plans to invest in reliability and resilience to better serve our customers. We have a solid base plan consistent with our strategic objectives. As Drew discussed, we have a strong customer pipeline including 7 to 12 GW of data center opportunities and we have secured critical equipment to bring additional customers online. Today, we have provided our adjusted earnings per share outlook and a high-level view of our preliminary capital and equity plans through 2029. At EEI, we will provide more details on these outlooks. We are excited about the opportunities before us and look forward to talking with you at EEI. Now the Entergy team is available for questions.

Our adjusted EPS through 2028 remains unchanged and as we add 2029 to our Outlook period, our long-term compound annual growth remains strong at greater than 8%.

Drew and I, along with our operating company leaders, will be in Florida in less than 2 weeks, where we will talk about our strong customer growth story as well as our plans to invest in reliability and resilience to better serve our customers.

We have a solid base plan consistent with our strategic objectives.

Line including 7 to 12, gigawatts of data center opportunities and we have secured critical equipment to bring additional customers online.

Today we have provided our adjusted earnings per share, Outlook, and a high level view of our preliminary capital and Equity plans through 2029.

At eei, we will provide more details on these outlooks.

We are excited about the opportunities before us and look forward to talking with you at EI.

And now, the energy team is available for questions.

Greg: Thanks, Kimberly. 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. In the interest of time, we ask that you please limit your questions to one primary and one follow up question. Thank you in advance. We'll pause just a moment to compile the Q&A roster. All right, looks like our first question today comes from the line of Shar Pereza with Wells Fargo. Shar, please go ahead.

Thanks, Kimberly. And 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, in the interest of time, we ask that you please let your questions to 1 primary and 1 follow-up question. Thank you in advance and we'll pause just a moment to compile the Q&A roster.

[Analyst]: Hi, good morning, Drew, Kimberly, it's actually Constantine here for Char.

All right, looks like our first question today, comes from the line of sharp. Pereza with Wells Fargo. Sharp. Please go ahead.

Drew Marsh: Good morning.

Hi, good morning, Drew Kimberly. It's actually Constantine here for char.

[Analyst]: Congrats on a great quarter. Maybe starting off on the updated CapEx plan and kind of the 4.5 GW of the power island equipment. Is that directly associated with some of the more visible load in the current pipeline? Do you anticipate any incremental CapEx needs that would require regulatory approval before making into the 2029 plan? Just how should we be thinking about the upside here?

Good morning. Uh, congrats on a great quarter, uh, maybe starting off on the updated capex plan and kind of the 4.5 gigawatts of the power ion equipment, is that directly associated with some of the more visible load in the current pipeline. You anticipate any incremental capacities would that would require regulatory approval before making into the 29 plan.

Drew Marsh: Yeah, good morning, Constantine, it's Kimberly. The $41 billion includes the capital that's needed to support the load that is in the forecast. The 4.5 incremental gigawatts that Drew referenced would support additional customers that could come online. He referenced 7 to 12 gigawatts in the data center. That's up from 5 to 10 in the last quarter. We've added, as you noted, additional plant power island equipment in order to support that. To the extent that those customers in that pipeline reach agreement, we would expect that you would need supplemental capital to support that. That's what we've planned ahead for here.

Just how should we thinking about the upside here?

[Analyst]: Okay, perfect. Maybe shifting to the longer term outlook, with the large load growth solidifying and under contract, you're locking in the CapEx plans and the associated equipment. Do you see any opportunity to potentially guide on a longer term EPS growth outlook beyond 2030, just as you kind of gain that visibility?

Yeah, good morning Constantine. It's Kimberly the 41 billion includes the capital that's needed to support the load. That is in the forecast, the 4 and a half incremental, gigawatts that Drew reference would support additional customers that could come online. So he referenced 7 to 12 gigawatts in the data center, that's up from 5 to 10 in the last quarter. And we've added as you noted additional, um, plant power Island equipment. In order to support that to the extent that those customers in that pipeline reach agreement, we would expect that you would need supplemental Capital to support that and that's what we've planned ahead for here.

Okay perfect. And then maybe shifting to the longer term Outlook, kind of with the large load growth solidifying and under contract or locking in kind of the capex plans and the associated equipment. Do you see any opportunity to potentially guide on a longer term, EPS growth Outlook Beyond 2030?

Just as you kind of gain that visibility.

Drew Marsh: As you know, we added 2029 here, certainly good visibility through that period. If we're able to land additional customers, that will provide you that visibility there. Going beyond that, I think there's good visibility here, including individual outlooks by year, but we do think we have long term opportunity over beyond this period.

As you as, you know we added 2029 here, you know certainly good visibility through that period if we're able to land additional customers that uh, will provide you that visibility there but going beyond that. I think will just you know this good visibility here including individual outlooks by year, but we do think we have long-term opportunity over over

Beyond this period.

[Analyst]: Okay, perfect. Just a quick follow up on kind of the generation needs more broadly, do you see customers agnostic to the resource mix, or is there still a push for some renewable components as we've kind of seen with hyperscalers demanding for nuclear SMRs and other technologies?

Drew Marsh: We talk to our customers about all kinds of supplies. Certainly, we've lined up here. Drew referenced both gas resources as well as renewable resources. We do have a pipeline of opportunity around renewables based on customer needs, but we also continue to look for ways to meet their needs to ensure that we are speed to market as well as meeting clean needs. We think it's an all above the approach over time. Yeah. Konstantin, I'll just add that we are building this gas generation, but we have expectations that we will also do carbon capture at some point and we are working on that actively. We have RFPs out for some of our assets in Mississippi and in Texas to test that. We still have feed studies going on at our Lake Charles power station in Louisiana, and we're exploring various options to figure that out.

Okay. Perfect. And just just a quick follow-up on kind of the generation needs. Kind of more broadly. Do you see customers like agnostic to the resource mix or is there is there still a push for some renewable components? As we've kind of seen with hyperscalers demanding for nuclear smrs and other Technologies.

We talked to our customers about all kinds of Supply. Certainly we lined up here Drew reference, both gas resources as well as renewable resources. We do have a pipeline of opportunity around Renewables um based on customer needs, but we also continue to look for ways to meet their needs to ensure that we are speed to Market as well as meeting clean needs. So we think it's an all above the approach over time. Yeah. And Constantine. I'll just add that, you know, we are building this gas generation, but we have uh, expectations that we will also do carbon capture uh at some point. Um, and we are working on that actively uh we have rfps out um in if for some of our assets and Mississippi and Texas.

Drew Marsh: We're supported by our data center customers that are wanting to achieve those same objectives. We think we're well positioned to figure that out over time, but we don't have anything specific to announce today.

[Analyst]: Excellent. Seems like a wonderful backdrop. Appreciate taking the questions today.

I'll test that, uh, we still have feed studies going on at our Lake, Charles power station in Louisiana. Um, and we're exploring various options to to figure that out. And we're supported by, um, you know, our data center customers that are wanting to achieve those same objectives. So, we think we're well positioned to figure that out, uh, over time. Uh, but we don't have anything specific to announce today.

Drew Marsh: Thanks, Constantine.

Excellent. Seems like a wonderful backdrop. I appreciate your taking the questions today.

Greg: Yes, thank you. Our next question today comes from the line of Jeremy Bryan Tonet with JPMorgan Chase & Co. Jeremy, please go ahead.

Thanks Constantine.

Yes, thank you.

[Analyst]: Hi, good morning.

And our next question, today comes from the line of Jeremy tan with JP Morgan Jeremy. Please go ahead.

Drew Marsh: Good morning.

Hi, good morning.

[Analyst]: Just wanted to dive in maybe a little bit more on the forward outlook as well. I think some of the commentaries might have highlighted the capital shifting out closer to plant COD, and maybe that kind of spills over into past the plan period. Just wondering if you could talk a bit, I guess, on the momentum across the plan and where, you know, how that looks after the plan, given I think you've said in the past how this accelerates into the end of the decade.

Good morning.

The commentaries might have highlighted uh the capital shifting out closer to plant Cod and maybe that kind of spills over into past the plan period. So just wondering if you could talk a bit, I guess on the momentum across the plan and and where, you know how that works after the plan. Um, given I think you've said in the past, how this accelerates into the end of the day,

Drew Marsh: Good morning, Jeremy, it's Kimberly. I guess just to clarify, $41 billion through 2029, I referenced some plant that closes outside the period. Some of that is alternate finance. You don't see the space in this period and all the spend would go out when that closes. That was that reference there. Certainly with the additional equipment that we've secured in the pipeline that we see, we would expect investment to continue well beyond this period. We do have turbine slots that are delivering for, you know, commercial operations in 2029, 2030 that still have not been announced as overall projects. There are still opportunities that could add additional capital in the out part of our current outlook period.

Good morning, Jeremy. It's Kimberly.

I guess just to clarify, $41 billion through 2029. I referenced some plants that close outside the period. Some of that is alternate finance, so you don't see the spend in this period, and all the spend would go out when that closes. So that was the reference there. But certainly with the additional equipment that we've secured in the pipeline that we see, we would expect investment to continue well beyond this period.

Yeah, and and we do have uh, turbine slots that that are delivering for, you know, commercial operations in 2930 that still have not been announced.

Um as overall projects. So there are still opportunities that could add additional capital in the out part of of our current Outlook period.

[Analyst]: Got it. That's helpful. Thank you for that. Maybe just pivoting to Arkansas here, if you could comment a little bit more, I guess, on the ramp for Google there, the project there, and just wondering any more color you might be able to provide as well as local stakeholder views and, I guess, commission priorities, how that all kind of fits together at this point.

Drew Marsh: Yes, that project is obviously in early stages. It was filed in September, but the customer is continuing to move forward with the ramp as we would expect. As you know, there are minimum bills associated with all of these large customers that help support during the construction period. I don't see anything different on that ramp than where we have been similar to all of our other customers. People are excited in Arkansas for that project. At Google's groundbreaking last month, the governor was there and numerous local leaders, including the mayor of West Memphis. There is also the 600 megawatt solar facility and 350 megawatt battery that are going to be part of supporting Google. That investment is traveling through the Arkansas Commission's docket as well. We expect to work through that process with the various stakeholders.

Got it. That's, uh, helpful. Thank you for that. And maybe just pivoting to Arkansas here if you could, uh, comment a little bit more I guess on, uh, the ramp for for Google there, the project there, um, and just wondering any more, uh, color you might be able to provide as well as local stakeholder views. And uh, I guess commission priority is how that all kind of fits together at this point.

Yes, that project is obviously in early stages. It was filed in September, but the customer is continuing to move forward with the ramp as we would expect. As you know, there are minimum bills associated with all of these large customers that help support during the construction period. But I don't see anything different on that ramp than where we have been, similar to all of our other customers.

Yeah. And and people are excited in Arkansas for that project. Um at Google's groundbreaking last month, the governor was there. Um,

Drew Marsh: At this point there's a lot of support in Arkansas for the economic development that this opportunity brings.

Numerous local leaders, um, including the mayor of West Memphis and there's also the 600 megawatt uh, solar facility and uh, 350 megawatt battery. Uh, that are going to be part of of supporting Google. Uh, and that investment is is traveling through the, uh, Arkansas commissions, uh, docket as well. So, we'll we expect to to work through that process, uh, with the various stakeholders. But they're at this point. There's a lot of support in Arkansas for the economic development that this, oh,

Community brings.

[Analyst]: Got it. Thank you for that. Maybe just taking a step back overall, I guess commercial discussions here with hyperscalers at this point, I guess. How would you describe the tone or pace of discussions here? Is there more or less urgency to sign up incremental load at this point given the success that you've had so far?

Got it. Thank you for that. And maybe just taking a step back overall, I guess, uh, commercial discussions here with hyperscalers at this point.

Drew Marsh: I would point to the raise of the from 5 to 10 to 7 to 12 GW around our increased customer conversations. Those conversations cover all the things we've talked about before, speed to market, getting to clean and also how the stakeholders and bringing the stakeholders along. As Drew said in Arkansas, very excitement, very excited about that transaction in Arkansas. We think the conversations continue to be strong and continue to support our incremental increase in that pipeline.

I guess how would you describe the tone or Pace of discussions here? Is there more or less urgency to sign up incremental uh load at this point given the success that you've had so far

well, certainly, I would point to the raise

Around our increased customer conversations those conversations cover. All the things that we've talked about before speed to Market getting to claim. Um, and also how the stakeholders and bringing the stakeholders along as Drew said in Arkansas. Very excitement. Very excited about that transaction in Arkansas. So we think the conversations continue to be strong and continue to

support our incremental increase in that pipeline.

[Analyst]: Got it. One last quick one if I could on the transmission side, just given some of the loadshed events due to storm activity earlier in the year, wondering how you think about the opportunity to deploy more transmission, enhance flexibility, such as increasing connectivity into Mississippi. Just wondering how you see the opportunity set at this point.

Drew Marsh: Yeah, we do still see a robust transmission opportunity, but it'll be customer driven based on how the grid needs to adapt to continued growth in our service territory. Right now we have a very robust, over 400 miles of 500 kV line. We have a lot of 230 kV transmission that we are also building. We're getting ready to file in Louisiana, the Babel to Weber line. I think I talked about that last quarter, which is part of that 500 kV system. We have approvals pending in Texas and in Louisiana on transmission right now. There is the possibility for significantly more. We have quite a bit coming through the MTEP process of seeking MISO approval by the end of this year. Depending on the growth, there could be additional investment opportunities out there. We are expecting continued significant transmission investment going forward.

Got it, 1 last Quick 1. If I could on the transmission side, just giving some of the load shed events uh, due to storm activity earlier in the year. Wondering how you think about the opportunity to deploy more transmission, enhance flexibility, you know, such as increasing connectivity into Mississippi. Uh, just wondering how you see the opportunities to at this point.

Yeah, we do still see a robust uh, transmission opportunity, but it'll be customer-driven. Um, based on, you know, how the grid uh needs to adapt to, you know, continued growth in our service territory. Right now we have a very robust, um, you know, over 400 miles of 500 kV line. Um, we have a lot of 230 KV transmission, uh, that we are also building. Um, we're getting ready to file and Louisiana the Babel to Weber line. I think I talked about that last quarter, um, which is which is part of that 500 KV system and we have approvals pending

um, in, uh, Texas and in, uh,

And in Louisiana on transmission right now. So

[Analyst]: Got it. Very helpful. I'll leave it there. Thanks.

And then uh, you know, depending on the growth there could be additional uh investment opportunities out there. So we we are expecting uh continued uh significant transmission investment going forward.

Drew Marsh: Thank you.

Got it. Very helpful. I'll leave it there. Thanks.

Greg: Thanks, Jeremy. Our next question comes from the line of David Arcaro with Morgan Stanley. David, please go ahead.

Thank you. Thanks. Jeremy

[Analyst]: Hey, thanks so much. Good morning.

And our next question comes from the line of David Araujo with Morgan Stanley. David, please go ahead.

Drew Marsh: Good morning.

Hey, thanks so much. Good morning.

[Analyst]: I was wondering, you might have said before, but I may have missed it. What's the time frame for the 4.5 GW of the power equipment that you secured? I was wondering, is this a stepping stone? Are you still actively working to secure additional power equipment in a similar way?

Good morning. Um it was wondering um uh let's see it. You might have said before but I may have missed it. What's the time frame for the 4 and a half gigawatts? Um, of the power equipment that you secured. And I guess I was wondering is this a stepping stone? Are you still actively working to secure additional um uh Power Equipment in a similar way?

Drew Marsh: The timing for the extra six units would support commercial operations in 2031 and 2032. That is about, you know, we're using our standard design of 750 megawatts. That comes out to a little over 4 gigawatts. That is the plan. I can't remember the last part of your question. David, remind me.

The the, uh, the timing for the extra 6 units would support commercial operations in 2031 and 2032. Um, so that's about, you know, we're using our standard design of 750 megawatts. That's what comes out to a little over 4 gigawatts. Um, so that's the, that's the plan. Um,

and,

[Analyst]: Curious if this is a stepping stone. Are you still actively in discussions and working to increase your access to gas turbine supply beyond that 4.5 right now?

I can't remember the last part of your question. David, remind me.

Drew Marsh: It matches what we see as our customer needs. If there continues to be growth, then we may continue to go into the market and seek additional turbine access. I think that's where I would put it right now. It's meeting our expectations of potential growth that we see in the near term. We're also looking at a number of other things. We continue to monitor new nuclear and look into that and talk to our customers about that. We are also, as you saw with the Google transaction, there's a potential for solar and battery, and then we're also looking at a number of upgrades on our system to provide incremental supply. There are several things that are out there that could still drive incremental generation capacity even beyond just gas turbines.

Yeah, curious, if this is a stepping stone, are you still actively in discussions and working to uh increase your access to uh gas turbine, Supply beyond that 4 and a half? Um, right now, it's it matches what we see as our customer needs. Uh, so, you know, if there continues to be growth and we may continue to, uh, go into the market and seek additional turbine access, um,

But uh I think that's that's where I would put it right now. Um, it's it's meeting uh our expectations of potential growth that we see um in the near term. Uh, we're also looking at a number of other things, you know, we continue to monitor new nuclear and look into that and talk to our customers about that. Um, you know, we are also as as you saw with the Google transaction, you know, there's a potential for solar and Battery

And then, uh, you know, we're also looking at a number of upgrades on our system, uh, to provide incremental supply. So there's.

several things that are out there that, uh, could still drive incremental, uh,

Generation capacity, even Beyond just gas turbines.

[Analyst]: Got it. Great. Yeah, thanks for that. I was curious, just to get your latest thoughts on the potential to expand nuclear capacity in your service territory and any reaction or impacts to your thinking from the recent Westinghouse and U.S. Government announcements that we've seen.

Got it. Great. Yeah, thanks for that. Um,

Drew Marsh: Yes, thank you for that question. We're actually excited to see that there's some investment going in. What the industry really needs is to get to nth of a kind to manage the construction risk. We're excited to see someone moving forward. We certainly applaud the work that Brookfield and Westinghouse and Cameco are doing with the feds to figure this out. Obviously, there's still a lot of details that need to come out about that, so we're anxious to get into that conversation with them at some point about what exactly they're doing and how they're shaping all that up. We are excited to see that it's moving forward and has an opportunity to really move the industry forward. With all that being said, we still have a lot of interest in our service territory from our stakeholders to bring new nuclear into Texas, Louisiana, Mississippi, and Arkansas.

and I was curious just to get your latest thoughts on the potential to expand, um, nuclear capacity in your service territory in any reaction, um, or, uh, impacts to your thinking from the recent, you know, Western house and US Government announces. I mean, announcements that we've seen

Yes, uh we we thank you for that question. Um, we're actually excited to see um, that there's some Investments going in. Um, you know, with the industry really needs is to get to the end of a kind uh, to to manage the uh, the construction risk and we're excited to see someone, you know, moving forward. Um, and so, you know, we certainly applaud the the work that uh, Brookfield and Westinghouse and and Camo are doing with the feds, uh,

To figure this out, um, obviously there's still a lot of details that need to come out about that. So we're anxious to get into that conversation with them at some point about what exactly they're doing and how they're shaping all that up. Uh, but.

Drew Marsh: Each state has some sort of commission or task force or something like that looking at how do we bring new nuclear in. We're a member of all of them, so we continue to actively look at it. We haven't, as we've said in the past, we haven't figured it out yet, but there is a lot of interest from our stakeholders and we continue to explore it.

You know, we are excited to see that it's moving forward and and has an opportunity to to Really um move the industry forward. Um so you know with all that being said you know we still have a lot of interest in our service territory from our stakeholders uh to bring new nuclear into Texas, Louisiana Mississippi and Arkansas. Each state has

Some sort of commission or task force or something like that. Looking at, how do we bring new nuclear in? And, and we're a member of all of them.

So you know, we continue to actively. Look at it. We haven't you know as we've said in the past we haven't we haven't figured it out yet. Um,

And then, but there is a lot of interest from our stakeholders and so we continue to explore it.

[Analyst]: Okay, great. That's helpful. Thanks so much.

Drew Marsh: Thank you.

Greg: Thanks, David. Our next question comes from the line of Agnieszka Anna Storozynski with Seaport. Angie, please go ahead.

Okay, great. That's helpful. Thanks so much.

Thank you.

Thanks David.

[Operator]: Thank you. I was just wondering, we've all read about the Manhattan-sized data center in your Louisiana service territory from Meta. How much of that is currently covered by ESAs and reflected in your pipeline?

Hey, and our next question comes from the line of Angie stoinski with Seaport Angie, please go ahead.

Drew Marsh: Right now the only thing that we have in our outlooks is the signed ESA that we previously announced basically about a year ago almost now. That project has been publicly said by Meta to be 2 GW of compute. Anything beyond that is not currently reflected in our outlooks and we wouldn't comment on any specifics of the size or timing of any project, just like for that potential opportunity, even though we know that they've been posting about it, but we wouldn't comment on it, consistent with our ongoing policy for not commenting on specific customer opportunities.

Thank you. So I I was just wondering, um, you know, we've all read about the uh, Manhattan size, the data center in your Louisiana, service territory from meta. So how much of that is uh currently covers covered by Esa and and reflected in your pipeline?

Basically, about a year ago, almost now. So that, um, that project

Has been publicly said by uh, meta to be 2, gigawatts of compute. Um and so anything beyond that is not currently reflected in our in our outlooks and and we wouldn't comment on any specifics of the size or timing of any project just like for that for that potential opportunity even though, you know, we know that they've been posting about it. Um, but you know, we wouldn't comment on it consistent with our ongoing policy for non commenting on specific customer opportunities.

[Operator]: Is it because the ESA hasn't been signed? Is it because it's beyond the planning horizon when this investment would need to happen?

Drew Marsh: It is not necessarily because the ESA hasn't been signed. We wouldn't comment generally about ongoing negotiations with anybody. As it relates to putting large data center projects into our capital plan, we would need a signed ESA to do that. That's been our policy. Because these projects are so large, they have such an impact. It doesn't really fit with our probability weighting methodology that we've had for forever. We still use that methodology with our more traditional industrial projects like steel mills and LNG terminals and petrochem facilities and the like. For these really large data centers, it's either all in or all out. We haven't included anything in our outlooks to support any large data centers at this time.

And it's but again is it because it's the esa hasn't been signed, is it? Because it's beyond the uh, the planning Horizon when this investment would need to happen.

Clearly, because the ESC.

Generally about ongoing negotiations with anybody, but, um, is there is it relates to putting Pro large data center projects into our Capital plan? We would need a signed Esa to do that. Um, that's been our policy because these projects are so large. Uh, they have such an impact, you know. It it doesn't really fit with our probability weighting methodology that we've had for forever. So um we still use that methodology with our more traditional industrial uh, projects. Like

Mills and LG Terminals, and petrochemical facilities, and, and the like, but, uh, for these really large data centers, it's either all in or all out.

Um, so we haven't included anything uh in our outlooks to, to support, um, any large data centers. Um,

At this, at this time.

[Operator]: Awesome. That's all I had. Thank you.

Drew Marsh: Thank you, Angie.

That's all I had. Thank you.

Thank you, Angie.

Greg: Thank you, Angie. Our next question comes from the line of Sophie Karp with KeyBanc Capital Markets. Sophie, please go ahead.

[Operator]: Hi, good morning. Thank you for taking my question. A couple of questions on the regulatory front. Given all of the demand and from large load customers and all these trends that we know about, do you envision that you will need something more beyond your regular formula rate plan proceedings to accommodate that growth and recovery? Of course.

Thank you, Angie and our next question comes from the line of Sophie carp with keybanc capital markets, Sophie, please go ahead.

Hi, good morning. Thank you for taking my question, a couple of questions for me.

Hi. Yeah, so on the regulatory front. Um, given all of the, you know, uh demand and the from large large large customers. And um, all the strands that we know about do, you envision, that you will need something more beyond your regular formula rate plans proceedings. Um, aging. And to accommodate that growth and Recovery.

Drew Marsh: I didn't catch all of that. Sophie, you're breaking up a little bit. Do we need something beyond what exactly?

Of course.

I didn't catch all of that, Sophie. You're breaking up a little bit. Uh,

[Operator]: Do you think that you will need a regulatory proceeding that goes beyond your regular formula rate plans reviews to accommodate all the growth that you have on the system?

Do we need something beyond? What? What exactly were you talking about? Uh yeah, I

Drew Marsh: Yeah, it depends on the jurisdiction. Thank you for that clarifying. It depends on the jurisdiction. In Mississippi, you know, they have the law that allows for very large economic development projects to move forward with the presumption of the certificate, effectively the presumption of the certificate of convenience and necessity. Of course, we still ultimately have to go back through regulatory approval for formula rate plans and the like in Mississippi. It's not like the commission's not involved, but you'd be able to kind of move forward there. In Louisiana and in Arkansas, you know, Arkansas just passed the Generating Arkansas Jobs Act, which allows for an expedited process. We're actually using those processes right now. We still continue to go through the process in Arkansas and we'd expect the same in Louisiana.

Yeah, do you think that you will need a regulatory procedure? In that goes, like, beyond your regular formula right plans, uh, reviews to accommodate all the growth that you have on the system.

Yeah. Uh,

On the jurisdiction. Uh, thank you for that clarifying. Uh, it it depends on the jurisdiction. Um, in in Mississippi, you know, they have the law that allows uh, for very large Economic Development projects to um,

Uh to move forward with the presumption of uh the certificate the effectively, the presumption of the certificate of convenience and necessity. Um of course we still ultimately have to go back through regulatory approval for formal rate plans and the like in Mississippi so it's not like the commission's not involved, uh but uh you'd be able to kind of move forward there and in the

Louisiana and in Arkansas, you know, Arkansas just passed the the generating Arkansas jobs act, which allows for an expedited process, um, and and so we're actually using those processes right now.

Drew Marsh: I think we'd be using the same processes that we have today, both in Louisiana, Arkansas, and I guess in Mississippi. Although Mississippi is very different for those large economic development projects that we've used in the past, they would all be somewhat expedited given what we've seen and the interest from the various stakeholders in each jurisdiction.

So, we'd still continue to go through the process in Arkansas and we'd expect the same in Louisiana. So

I think we'd be using the same processes that we have today. Um both in Louisiana, Arkansas and I guess in Mississippi, although Mississippi is uh very different for those large Economic Development projects that we've used in the past.

But they would all be somewhat expedited.

What we've seen and the interests from the various stakeholders.

[Operator]: Got it, got it. Thank you. My other question was the 12 GW pipeline. Could you help us and break it down by, I guess, the stage it's in? Like how much of that is in an ESA stage versus slightly earlier maybe in the process.

Each jurisdiction.

Charlotte got it. Thank you. And then my other question was, um,

The 12 gigawatt pipeline, um, could you help us and break it down by, I guess the stage.

Uh, it's it's in like how much of that is in the esa stage versus the slightly earlier maybe in the process?

Drew Marsh: Hi, Sophie, it's Kimberly. I would not think of that as signed ESAs. That is opportunity in the pipeline. It's in various stages, but not all the way to the end. As Drew mentioned earlier, we don't include in our forecast until we get to certainty around a signed ESA. That would not be in that 7 to 12 GW that we gave.

[Operator]: Okay, got it. This is all incremental to ESAs that you have in your plan.

Drew mentioned earlier, we don't include in our forecasts until we get to certainty around assigned DSA so that would not be in that 7 to 12 gigawatts that we gave.

Drew Marsh: That's right, yeah. I would just say that our actual pipeline goes well beyond that. I think these are ones that we feel like we would reasonably see come to fruition in the next year or two.

Okay, got it. So this is all incremental to ESAs that you have in your plan.

That's right.

Just add that our our

[Operator]: Got it. Thank you. I appreciate the answers.

You know, I think these are ones that we feel we could reasonably see come to fruition in the next year or two.

Drew Marsh: Thank you.

Got it. Thank you. Appreciate the answers.

Greg: Thanks, Sophie. Our next question comes from the line of Paul Zimbardo with Jefferies. Paul, please go ahead.

Thank you.

Thanks Sophie.

And our next question comes from the line of Paul zimbardo with Jeffrey's Paul, please go ahead.

[Analyst]: Hi, good morning. Thank you.

Drew Marsh: Good morning, Paul.

Hi, good morning. Thank you.

[Analyst]: I had a clarifying question following up on David's a little bit. Could you explain the comment on the 8 GW for additional growth from the power commitments above the plan? I recall it was 7 GW from the second quarter call, and they said you added 4.5 GW. Does that mean you execute against some of that incremental opportunity? I was just a little confused on that piece. If you could clarify.

Good morning, Paul.

Drew Marsh: Sure, Paul, I would think about in the second quarter call, we said 15 GW. Eight was in the forecast through 2028, seven was for growth. We now have 19.5 GW compared to that 15, and eight is for growth. That delta is what I was referencing earlier. It's either in the forecast or it's in the forecast, but the capital closes outside the period. You're not necessarily seeing that. That's how you get to that 8 GW of incremental growth.

At a clarifying question falling upon David's a little bit, could you explain that comment on the 8 gigawatts for additional growth from the power commitments above the plan? Because I recall it was 7 gigawatts from the second quarter call, and they said you added 4.5 gigawatts. So does that mean you executed against some of that incremental opportunity? Just a little confused on that piece, if you could clarify?

Sure. Paul, I would think about in the second quarter call. We said 15 gigawatts

[Analyst]: Okay, very clear. That's right. Thank you. I know you talked a lot about the renewable side today and obviously Google's doing solar and storage. Are there any, and we focus a lot on the turbines, of course. Are there any commitments in megawatts, gigawatts on the renewable side, solar and storage that we should be thinking about also as kind of upside opportunities to the plan to serve hyperscalers.

8 was in the forecast through 287 was for growth. We now have 19 and 1.5 gigawatts compared to that 15 and 8 is for growth. So that delta is what I was referencing earlier around. It's either in the forecast or it's in the forecast but the capital closest outside the period. So you're not necessarily seeing that. So that's how you get to that 8 gigawatts of incremental growth.

Drew Marsh: Yeah, I think we would expect that there would be additional renewables associated with large hyperscale data center development deployment in some way. We've certainly seen that with each of our announcements thus far. You know, Amazon Web Services had, I think, 600 megawatts of solar associated with Google similarly, and then Meta also had 1,500 megawatts of solar. I would expect that there would be some solar out there commitments as well.

Okay, very clear. That's what I thought. Thank you and then I know you talked a lot about the renewable side today and obviously Google's doing solar and storage. Uh are there any and we focus a lot on the turbines, of course, are there any commitments in megawatts gigawatts on the renewable side, solar and storage that we should be thinking about? Also, as going to upside opportunities, to the plant to serve hyperscalers

Yeah, I think you we would expect that uh, there would be additional uh, Renewables associated with uh, large hyperscaler uh, deployments in some way. Um, we certainly seen that

With each of our, uh, announcements thus far, you know, AWS had I think uh, 600 megawatts of of solar associated with Google similarly. Um, and then meta also had a 1500 megawatts of of solar, so I would expect that there would be some um some solar out there, uh commitments as well.

[Analyst]: Okay, great. We should think of that as kind of upside to the gas gigawatts that you talk about.

Drew Marsh: Yeah, potentially. I mean, there's also, you know, there's a lot of solar projects out there, so there's also still the potential for PPAs. You know, we would want to try to compete to land some of those projects ourselves for our own capital deployment.

[Analyst]: Okay, excellent. Thank you very much.

Okay, great. So, we should think of that as kind of upside to the, the gas Google odds that you talked about. Yeah. Potentially, I mean, there's also, you know, there's a lot of solar projects out there so there's also still the potential for ppas but, uh, you know, we would want to try and compete to to uh, land some of those projects ourselves for our own Capital deployment.

Drew Marsh: Thanks Paul.

Excellent, thank you very much.

Greg: Thank you, Paul. Our next question comes from the line of Anthony Christopher Crowdell with Mizuho. Anthony, please go ahead.

Thanks Paul.

[Analyst]: Hey, good morning team. Thanks for taking my question. I think one just may be a follow-up on the 4.5 GW, I guess, of the additional power equipment. Is that incremental to what's on slide 14 of, I guess, you have seven CCGTs listed? That is incremental to that.

Thank you, Paul. And our next question comes from the line of Anthony crudele with meizuo Anthony, please go ahead.

Drew Marsh: Yes, it would be. I'm looking. Okay, we got Slide 14 pulled up here in the room. Yes, it would be incremental to the ones that are there. There are other ones that are part of our overall 19 GW that aren't on that page before you get to the 4.5 that we added. Yes, the 4.5 would be incremental to what's on that page. Great.

Hey, good morning team. Thanks for taking my question. I I think 1 just may be a follow-up on the 4 and a half gigawatts I guess of um the additional power equipment is that incremental to what's on slide 14 of I guess you have a 7 ccgt is listed. That is incremental to that.

Uh, yes it would be uh, I I I'm looking okay. We got slide 14, pull up here in the room and yes, it would be incremental. Is the ones that are there.

[Analyst]: I think you touched on your prepared remarks on EPC availability. It doesn't seem like there's any issue getting craft labor contracts to build all the generation. Just figured provide any color. Whereas we've seen other large projects that maybe have struggled, and the size of all of these projects, it's kind of tremendous, yet no issues on labor. Just wanted to give any color on that.

Um, there are other ones that we, you know, that are part of the, our overall 19 gigawatts that aren't on that page before you get to the 4 and a half that we added. Uh but uh yes, the 4 and a half would be incremental to what's on that page.

Great. And then just on and I think you touched on on your prepared remarks on, you know, EPC availability. It doesn't seem like there's any issue getting craft labor contracts to to build all the generation just to get providing the color. Whereas we've seen all the large projects that maybe have struggled in the mag. You know, the size of all of these projects, you know, it's it's kind of

Drew Marsh: There are real challenges with labor. I don't think that it's certainly not easy to get the labor lined up. There is a real need for skilled craft of all types and that hasn't changed. The result has been that there are increasing costs associated with these combined cycle projects. We've been hearing about that trend. It is very real. Our projects aren't immune to that, but we're working through it with the EPCs.

You know, tremendous, but yet no issues on labor. I just want to give you a caller on that.

Well, I would say that there are real challenges with labor. I don't, I don't think that, uh, it's certainly not easy to get, um,

Build craft uh, of all types and that hasn't changed. And the result has been that there are increasing costs associated with these combined cycle projects. Um, and so that's the, you know, we've been hearing about that Trend. It is very real. Our projects aren't immune to that, um, but, uh, we're still, we're working through it with the epcs.

[Analyst]: Great. Congrats on a great update and thanks for taking my questions.

Drew Marsh: Thanks, Anthony.

Great, congrats on a great update and thanks for taking my questions.

Greg: Thank you. Our next question comes from the line of Andrew Wiesel with Scotiabank. Andrew, please go ahead.

Thanks Anthony.

Thank you.

And our next question comes from the line of Andrew Weisel with Scotiabank. Andrew, please go ahead.

[Analyst]: Hey, thanks. Good morning everybody. If I can first piggyback on Andy's question about the massive data center build outs. I don't need or expect you to comment specifically on Meta's Hyperion project, but how are you thinking about the potential for some of these data centers to build on site power generation themselves? Have you been talking to them about their interest in self generating versus buying power from your utilities? I know your CapEx and earnings outlooks are based on real signed contracts, but how are you thinking about that going forward?

Hey thanks. Good morning, everybody.

Drew Marsh: In order to manage transmission costs, we are actually building generation in many cases very close to where the customer is located. Maybe it's not on site or behind the meter, but it's very close. You can see that with the Meta project and stuff like that. I think there's, in some ways, a distinction without a difference from a physical grid perspective. Secondly, I would say that these customers, while they certainly have the wherewithal to do their own generation, prefer to put their capital into something else. You even see that with Meta's recent financing of their facility, where they're leasing it back in North Louisiana. They have a lot of capital needs. If they could avoid putting capital into generating stations, I think they would probably prefer to do that.

If I can first piggyback on end his question about the massive data center build outs, I don't need or expect you to come in specifically on meta's Hyperion project. But how are you thinking about the potential for some of these data centers to build on-site? Power generation themselves? Have you been talking to them about their interest in self-generating versus buying power from your utilities? I know your capex and earnings outlooks are based on real signed contracts, but how are you thinking about that going forward?

Um, well, I would say that, uh, you know, in order to manage transmission costs, you know, we are actually building generation in many cases, very close to, uh, where the customer is located. Um, so maybe it's not onsite or behind the meter, but it's very close.

So you can see that with the meta project and and stuff like that. So I think there's you know in some ways there's a distinction without a difference uh from a physical grid uh perspective.

Uh, and then secondly, I would say that, you know, these customers, well, they certainly have the wherewithal to do their own generation.

They'd prefer to put their Capital into, you know, something else. Um and so even see that with, I would say meta's recent financing of their facility where they're leasing it back. Um, in North Louisiana, you know, they have a lot of capital needs. Um,

Drew Marsh: While it is possible that they could go behind the meter, I think competitively we are well positioned to support their growth by putting our own plants nearby, getting essentially the same benefits and supporting the capital. That's not making the capital deployment somewhere else to support them on our books rather than having them have to carry it on their own balance sheet.

So if they could avoid putting Capital into generating stations, I think they would probably prefer to do that. Um, so while it is possible that they could go behind the meter, I think, competitively, you know, we are well, positioned to support their growth by putting our own plants nearby of getting essentially the same benefits and supporting the capital that you know, that's not, you know, making the capital deployment somewhere else to support them.

On our books, rather than having them have to carry it on their own balance sheet.

[Analyst]: Okay, thank you. In Arkansas, I believe you're planning to file a rate case early next year. You talked about the hyperscalers helping with customer affordability and paying their fair share. Can you maybe preview the filing a little bit in terms of customer bill impacts and what role Google might play in that case?

Drew Marsh: Yeah, I can't give you an update today. The team's still working on the case, so I don't want to get out in front of them. I think in Arkansas, as we look out over time, you see similar types of things that you've seen in the other jurisdictions where the benefits associated with the large new customer help out the existing customers. We would expect to lay that out as part of the rate case going forward and, frankly, within the ongoing conversation that we're having right now with the existing processes over the formula, the special rate contract that we filed for in Arkansas for Google.

Okay. Thank you then, in Arkansas, I believe you're planning to file a rape case. Early next year, you talked about the hyperscalers helping with customer affordability and paying their fair share. Can you maybe preview the filing a little bit in terms of customer bill impacts and what role Google might play in that case?

Yeah, I don't, I can't give you an update today, the teams still working on the case, um, so I don't want to, I don't want to get out in front of them, um, but uh, you know, I think in Arkansas, you know, as we look out over time, you see, similar types of things that you've seen in the other jurisdictions where the benefits associated with the large, new customer, help out the existing customers.

And so we would expect to, to lay that out as part of the rate case going forward and and and frankly within the the ongoing, uh, conversation that we're having right now with the existing processes over the, the formula the uh, special special rate contract that that we filed for, in Arkansas, for Google.

[Analyst]: Okay, thank you very much.

Drew Marsh: Thank you.

Okay, thank you very much.

Greg: Thanks, Andrew. Our next question comes from the line of Alex Kania with BTIG. Alex, please go ahead. Hey, good morning. Just maybe trying to tie around this 4.5 GW of incremental. I was just wondering if you could maybe tie that with the comments made a little bit earlier on the ERAS queue as well. Is that 4.5 GW, is that tied to those extra incremental? I feel like four projects in the queue. Maybe more broadly, if the ERAS process right now is working as intended and seemingly should be able to kind of help for the forward needs.

Thank you.

Thanks Andrew.

And our next question comes from the line of Alex. Excuse me, Alex Cano, with btig Alex, please go ahead.

Drew Marsh: Yeah, the 4.5 GW, those extra six turbines are not yet represented in the ERAS queue. Those are the things that are in the air. ERAS queue would be much more near term than those. Those projects are, as I said earlier, are searching for COD in the 2031, 2032 time frame. The projects that we have in the ERAS queue would be coming in much earlier than that. Hopefully that answers your question.

Hey, good morning. Um, just uh, maybe a a trying to tie around this 4 and a half gigawatts of incremental. I was just wondering. If you could maybe tie that with the, uh, the comments made a little bit, um, earlier on the um, eras. Um, you know Q as well or is that 4 and a half? Uh, gigawatts. Does that tie to those extra incremental? I feel like 4, uh, 4 projects in the queue and then maybe more broadly. If, um, you know, the IRS, you know, you know, process right now is working as intended and and seemingly should be able to kind of help for the forward needs.

Yeah, the the 4 and a half. Gigawatts, those extra 6 turbines are not yet represented in the era as Q. Those are the things that are in the air is Q would be much more near-term than than those. Um, you know, those projects are. As I said earlier, are

Greg: Got it. In some ways, those extra turbines in the queue would represent incremental nearer term demand if the opportunity arises.

Drew Marsh: That's correct.

Greg: Okay, great. Thanks very much.

Um so hopefully that answers your question. Got it. So so in in some ways then that those extra turbines in the queue would represent. You know, incremental nearer term demand if if the opportunity arises

Drew Marsh: You're welcome.

That's correct. Okay, great. Thanks very much. You're welcome.

Greg: All right, thanks, Alex. Our next question comes from the line of Steve D'Ambrizzi with RBC Capital Markets. Steve, please go ahead.

[Analyst]: Hi, Drew and Kimberly. Thanks very much for taking my question. Good morning.

All right. Thanks, Alex. Our next question comes from the line of Steve Dan Breezy with RBC Capital Markets. Steve, please go ahead.

Drew Marsh: Good morning.

[Analyst]: Just kind of again, on some of this discussion around the dispatchable generation, can you talk a little bit more about the alternative financing agreements that you guys are using and just can I extrapolate what that is? The sizing of that. If you've gone from 8 GW that I think was committed in Q2 to now the implied 11 GW in Q3, does that 3 GW increase, is that basically what's being alternatively financed and falls outside of the plan? Just can you give a flavor of the timing around that and the magnitude? Because it seems like that would be $6 to $7.5 billion of spend that could come in 2030 or 2031, which would look like it would drive an outsized amount of growth.

Andrew and Kimberly. Thanks very much for taking my question. Uh good morning. Um, good morning, just uh kind of again on on some of the this discussion around the the dispatchable generation. Can you talk a little bit more about the alternative financing agreements that you guys are using and and just can I, you know, extrapolate what that is. Um the sizing of that if you've gone from, you know, 8 gigawatts that I think was committed into a queue to now the implied 11 gigawatts and, and Q3 does that 3 gigawatt increases that basically what's being alternatively, financed and Falls outside of the plan and just can you give a flavor of the timing around that and the magnitude? Because, um, you know, it seems like that would be, you know, a a 6 to 7 and a half billion dollars of spend, that could come in 30 or 31, which

Drew Marsh: Steve, it's Kimberly, I wouldn't think of it as a direct correlation between that alternate financing and that 3 GW that you referenced. First, we added an extra year. You rolled forward to 2029, and you can see the run rate of that is consistent with where we've been in each of the prior years before that. That's your biggest piece. There is some alternate financing. We talked about that actually in our legend filing in Texas as a way to help with the overall cost, but also time that closing with when that asset goes into service and throws off cash. We haven't sized that. We'll have a little more visibility into that at EEI, but I think your numbers are a bit outsized relative to what you have here, and I would think more about the 2029 addition.

Look like it would drive a, an outsized amount of growth.

David's Kimberly. I wouldn't

and,

Greg: Okay.

[Analyst]: All right, that's helpful.

That 3, uh, gigawatts that you referenced, uh, first, we added an extra year. So you rolled forward to 2029 and you can see the run rate of that is consistent with where we've been in each of the prior years before that. So that's your biggest piece. There is some alternate financing; we talked about that actually in our Legend filing in Texas as a way to help with the overall costs, but also time that closing with when that asset goes into service and throws off cash. So we haven't sized that. We'll have a little more visibility into that and EI, but I think your numbers are a bit outsized relative to what you have here. And I would think more about the 2029 edition.

Drew Marsh: Thank you very much. Just to add to that, you know, all of these projects that we are bringing on that we've contracted for for these turbines, we expect to achieve commercial operations by 2032. They're all coming pretty fast, and you can see a number of them on that page 14 that we were referencing earlier. There's a whole bunch more in the next few years just beyond that if everything comes together on the schedule that we've laid out with the turbine orders. There is quite a bit of capital just over the horizon from 2029 to support that kind of potential build out.

Okay. All right. That's helpful. Thank you very much. I'll just add to that. Uh, sorry, Steve. Just just to add to that, you know, all of these projects that we are, you know, bringing on that. We've contracted for for these turbines. You know, we expect to achieve commercial operations by 2032. So they're all coming pretty fast and you know and you can see a number of them on that page 14 that we were referencing earlier.

But there's a whole bunch more, you know, on the in the next few years, uh, just beyond that. Um, if everything comes

[Analyst]: Okay, that's helpful. Thanks very much. That's all I had. Appreciate it.

Together on the schedule that we've laid out with the, with the turbine orders. So there is quite a bit of capital, just over the horizon from 2029 uh, to support that kind of potential build out.

Okay.

Drew Marsh: Thank you.

Greg: Thanks, Steve. It looks like there are no further questions. At this time, I will now turn the call back over to Liz Hunter for closing comments. Liz?

That's helpful. Thanks very much. That's all I had. I appreciate it. Thank you.

Thanks Steve.

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 November 10th and provides more details and disclosures about our financial statement. 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 webpage 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. This concludes our call. Thank you very much.

And it looks like there are no further questions. So, at this time, I will now turn the call back over to Liz Hunter for closing comments. Liz?

Thank you Craig and thanks to everyone for participating this morning. Our quarterly report on form. 10 Q is due to the FCC on November 10th 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 our Investor Relations website called "Regulatory and Other Information," which provides key updates on regulatory proceedings and important milestones in 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.

Greg: Thanks, everyone. Again, this concludes today's conference call. You may now disconnect.

Thank you, everyone. Again, this concludes today's conference call. You may now disconnect.