Q3 2025 OGE Energy Corp Earnings Call

It will be a question and answer session to ask a question during the session I'll need to press star one on your telephone.

Here, an automated message device in your hand is raised to withdraw your question. Please press star. One again. Please be advised today's conference is being recorded I would now like to hand, the conference over to your speaker today, Jason Reilley. Please go ahead.

Thank you, Kevin and good morning, everyone and welcome to our call with me today I have Sean <unk>, our chairman President and CEO.

Our our CFO.

In terms of the call today, we will first hear from Sean followed by an explanation from tax and financial results and finally as always we will answer your questions.

I'd like to remind you that this call. This conference is being webcast emulate all along at <unk> Dot com.

Speaker #1: Good day and thank you for standing by . Welcome to the third quarter 2025 . OGE Energy Corp. Earnings Conference Call . At this time , all participants are in listen only mode .

Charles Walworth: Good day and thank you.

Operator: you for standing by. Welcome to the third quarter 2025 OGE Energy Corp. earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message device and your hand is raised. To withdraw your question, please press star 11 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jason Bailey. Please go ahead.

In addition, the conference call that May slide will be archived following the call on our website.

Speaker #1: After the speaker's presentation , there will be a question and answer session . To ask a question during the session , you'll need to press star one one on your telephone .

Before we begin the presentation I'd like to direct your attention to the Safe Harbor statement regarding forward looking statements.

Speaker #1: You will then hear an automated message advising your hand is raised to withdraw your question , please press star one one again . Please be advised today's conference is being recorded .

This isn't a SEC requirement for financial statements and simply states that we cannot guarantee forward looking financial results, but this is our best estimate to date I will now turn the call over to Sean for his opening remarks John.

Speaker #1: I would now like to hand the over to your speaker today . Jason Bailey . Please go ahead .

Speaker #2: Thank you . Kevin , and good morning , everyone , and welcome to our call with me today . I have Sean Trosky , our chairman , president and CEO , and Chuck Walworth , our CFO .

Jason Bailey: Thank you, Kevin, and good morning, everyone.

Sean Trauschke: Welcome to our call.

Jason Good morning, everyone and thank you for joining US today, it's certainly great to be with you. We again delivered strong results in the third quarter and we remain on track to deliver on our commitments.

Jason Bailey: With me today I have Sean Trauschke, our Chairman, President and CEO, and Charles Walworth, our CFO. In terms of the call today, we will first hear from Sean, followed by an explanation from Charles of financial results, and finally, as always, we will answer your questions. I'd like to remind you that this conference is being webcast and you may follow along at OGE.com. In addition, the conference call and accompanying slides will be archived following the call on that same website. Before we begin the presentation, I'd like to direct your attention to the Safe Harbor statement regarding forward-looking statements. This is an SEC requirement for financial statements and simply states that we cannot guarantee forward-looking financial results, but this is our best estimate to date. I will now turn the call over to Sean for his opening remarks.

Speaker #2: In terms of the call today , we will first hear from Sean , followed by an explanation from Chuck of financial results . And finally , as always , we will answer your questions .

This morning, we reported consolidated earnings of $1 14 per share, including an electric company earnings of $1 20 per share and a loss of the holding company of <unk>.

Speaker #2: I would like to remind you that this call, this conference, is being webcast, and you may follow along at OGE Energy. In addition, the conference call and slides will be archived following the call on that same website.

Our solid performance is driven by continued operational excellence laser like focus on the customer and constructive regulatory outcomes.

Speaker #2: Before we begin , the presentation , I'd like to direct your attention to the Safe Harbor statement regarding forward looking statements . This is an SEC requirement for financial statements and simply states that we cannot guarantee forward looking financial results .

As we head into the remaining two months of 2025, we remain confident in our plans to deliver in the top half of our earnings guidance range.

As you know on the regulatory front, we have approved approval request in Oklahoma and expect an order in a few weeks. This will allow us to move forward with building 450 megawatts of natural gas generation, which should be operational by 2029. As a reminder, we have approximately 550 megawatts of combustion turbines under.

Speaker #2: But this is our best estimate to date . I will now turn the call over to Sean for his opening remarks . Sean .

Sean Trauschke: Thank you, Jason. Good morning, everyone, and thank you for joining us today. It's certainly great to be with you. We again delivered strong results in the third quarter, and we remain on track to deliver on our commitments. This morning, we reported consolidated earnings of $1.14 per share, including electric company earnings of $1.20 per share and a loss of the holding company of $0.06. Our solid performance is driven by continued operational excellence, laser-like focus on the customer, and constructive regulatory outcomes. As we head into the remaining two months of 2025, we remain confident in our plans to deliver in the top half of our earnings guidance range. As you know, on the regulatory front, we have a preapproval request in Oklahoma and expect an order in a few weeks.

Speaker #3: Thank you . Jason . Good morning , everyone , and thank you for joining us today . It's great to be with you .

Speaker #3: We again delivered strong results in the third quarter . And we remain on track to deliver on our commitments . This morning we reported consolidated earnings of $1.14 per share , including electric company earnings of $1.20 per share and a loss of the holding company of $0.06 .

Construction, now, which will be operational next year on time and on budget.

Horseshoe Lake units 13 in 2014 come into service in 2029, we will have added approximately 2000 megawatts over an 11 year period.

Speaker #3: Our solid performance is driven by continued operational excellence , laser like focus on the customer and constructive regulatory outcomes . As we head into the remaining two months of 2025 .

We anticipate more to come.

When filing the pre approval case, we indicated that this was the first step of many.

In the filing we updated our integrated resource plan, which showed we're still solving for our customers future generation needs.

Speaker #3: We remain confident in our plans to deliver in the top half of our earnings guidance range . As you know on the regulatory front , we have a pre-approval request in Oklahoma and expect an order in a few weeks .

We are now negotiating with existing bidders from the remaining remaining from the last RFP and we anticipate issuing more rfps in future filings to address our customers' needs.

Speaker #3: This will allow us to move forward with building 450MW of natural gas generation , which should be operational by 2029 . As a reminder , we have approximately 550MW of combustion turbines under construction now , which will be operational next year .

Sean Trauschke: This will allow us to move forward with building 450 MW of natural gas generation, which should be operational by 2029. As a reminder, we have approximately 550 MW of combustion turbines under construction now, which will be operational next year on time and on budget. When Horseshoe Lake Units 13 and 14 come into service in 2029, we will have added approximately 2,000 MW over an 11-year period, and we anticipate more to come. When filing the preapproval case, we indicated that this was the first step of many. In the filing, we updated our Integrated Resource Plan, which showed we are still solving for our customers' future generation needs. We are now negotiating with existing bidders from the last RFP, and we anticipate issuing more RFPs in future filings to address our customers' needs.

We notified Oklahoma customers. This week that they will see a decrease in their monthly bill with a reduction in the fuel cost adjustment beginning November one the average residential customer bill will be approximately $6 75 since lower per month.

Speaker #3: On time and on budget . When Horseshoe Lake units 13 and 14 come into service in 2029 . We will have added approximately 2000MW over an 11 year period , and we anticipate more to come when filing the pre-approval case .

Our customers benefit from <unk>, having some of the lowest rates in the nation.

We understand the competitive advantage of our low rates offer and it's one reason our demand has grown so consistently year over year, we do everything we can to ensure our rates remained low in the future. So that we can sustain the growth of the company and the communities we serve.

Speaker #3: We indicated that this was the first step of many in the filing . We updated our Integrated Resource Plan , which showed we are still solving for our customers future generation needs .

While the electric power industries entering an exciting new era <unk> is uniquely positioned at the forefront we've been experiencing low growth that far surpasses national trends in data center load will certainly be incremental to our already strong load growth at.

Speaker #3: We are now negotiating with existing bidders from the remaining remaining from the last RFP , and we anticipate issuing more RFPs in future filings to address our customers needs .

Speaker #3: We notified Oklahoma customers this week that they will see a decrease in their monthly bill , with a reduction in the fuel cost adjustment beginning November 1st .

Sean Trauschke: We notified Oklahoma customers this week that they will see a decrease in their monthly bill with a reduction in the fuel cost adjustment. Beginning November 1, the average residential customer bill will be approximately $6.75 lower per month. Our customers benefit from OGE having some of the lowest rates in the nation. We understand the competitive advantage our low rates offer, and it's one reason our demand has grown so consistently year over year. We do everything we can to ensure our rates remain low in the future so that we can sustain the growth of the company and the communities we serve. While the electric power industry is entering an exciting new era, OGE is uniquely positioned at the forefront. We've been experiencing load growth that far surpasses national trends, and data center load will certainly be incremental to our already strong load growth.

At the heart of that growth ROE Genie is affordability.

Not a new concept to us it's key to our community success and central to our planning as we move ahead.

Speaker #3: The average residential customer bill will be approximately $6.75 lower per month . Our customers benefit from having some of the lowest rates in the nation .

Over the past decade, we've delivered a 6% EPS CAGR, which is great news for our investors equally.

Equally important for our customers, it's worth highlighting that our non fuel rates have increased at less than half the rate of inflation. During this time.

Speaker #3: We understand the competitive advantage , our low rates offer , and it's one reason our demand has grown so consistently year over year .

In a period when the cost of living continues to rise we focused on what we can control, helping our customers and communities manage costs, while supporting growth and reliability.

Speaker #3: We do everything we can to ensure our rates remain low in the future , so that we can sustain the growth of the company and the communities we serve .

Speaker #3: While the electric power industry is entering an exciting new era , OGE Energy is uniquely positioned at the forefront . We've been experiencing low growth at far surpasses national trends and data center load will certainly be incremental to our already strong load growth .

As we build on our strong growth and performance, we experienced growing interest in our service area from data centers negotiations and conversations are progressing and we hope to have something to share in the near future.

Turning to economic development, we continue to see diversified business growth, including commercial and industrial and just a couple of weeks ago. We celebrated the grand opening of a major expansion project for plastics manufacturer, which added foreign asked megawatts alone created hundreds of jobs and shiny Oklahoma.

Speaker #3: At the heart of that growth for OGE Energy is affordability . It's a new concept to us . It's key to our community's success and central to our planning as we move ahead .

Sean Trauschke: At the heart of that growth for OGE is affordability. It's not a new concept to us, it's key to our community success and central to our planning as we move ahead. Over the past decade we've delivered a 6% EPS CAGR which is great news for our investors. Equally important for our customers, it's worth highlighting that our non-fuel rates have increased at less than half the rate of inflation during this time. In a period when the cost of living continues to rise, we focused on what we can control, helping our customers and communities manage costs while supporting growth and reliability. As we build on our strong growth and performance, we experience growing interest in our service area from data centers. Negotiations and conversations are progressing and we hope to have something to share in the near future.

Speaker #3: Over the past decade , we've delivered a 6% EPs kegger , which is great news for our investors . Equally important for our customers is worth highlighting that our non-fuel rates have increased at less than half the rate of inflation during this time .

Our economies remained strong with unemployment in Oklahoma, and Arkansas, continuing to outpace the national average for the 48 straight months, Oklahoma City unemployment rate is below 4% and.

Speaker #3: In a period when the cost of living continues to rise . We focused on what we can control , helping our customers and communities manage costs while supporting growth and reliability .

In Oklahoma's overall job growth is driven by gains in education health care and construction.

The council for community and economic Research ranked Oklahoma City is the most affordable among large cities in the U S. A competitive advantage for continued growth and our rates are factor in keeping Oklahoma and Arkansas consistency consistently ranked high for affordability.

Speaker #3: As we build on our strong growth and performance . We experienced growing interest in our service area from data centers , negotiations and consultations are progressing , and we hope to have something to share in the near future .

Speaker #3: Turning to economic development , we continue to see diversified business growth , including commercial and industrial , and just a couple of weeks ago , we celebrated the grand opening of a major expansion project for plastics manufacturer , which added 4.5MW of load and created hundreds of jobs in Shawnee , Oklahoma .

Sean Trauschke: Turning to economic development, we continue to see diversified business growth including commercial and industrial and just a couple weeks ago we celebrated the grand opening of a major expansion project for a plastics manufacturer which added 4.5 MW of load and created hundreds of jobs in Shawnee, Oklahoma. Our economy has remained strong with unemployment in Oklahoma and Arkansas continuing to outpace the national average for the 48th straight month. Oklahoma City unemployment rate is below 4% and Oklahoma's overall job growth is driven by gains in education, health care and construction. The Council for Community and Economic Research ranked Oklahoma City as the most affordable among large cities in the U.S., a competitive advantage for continued growth, and our rates are a factor in keeping Oklahoma and Arkansas consistently ranked high for affordability. As I close, I want to emphasize that the business is doing very well.

As I close O&M to size that the business is doing very well, we've just completed another strong quarter and I am excited about the future we remain confident in our ability to deliver on our commitments, while continuing to grow the business and as I mentioned, we have many positive updates to share in the quarters ahead.

Speaker #3: Our economies remain strong with unemployment in Oklahoma and Arkansas continuing to outpace the national average for the fourth straight month . Oklahoma City unemployment rate is below 4% and Oklahoma's overall job growth is driven by gains in education , health care and construction .

Thank you and I'll now turn the call over to Chuck Chuck Thanks, Sean and thank you, Jason and good morning, everyone. We're three quarters through the year and our steady execution positions us to deliver results in the top half of our 2025 earnings guidance range. It's our execution that will lead us to continued long term success.

I'm excited to review our financial performance with you today.

Starting on slide five for the third quarter consolidated net income was $231 million or $1 14 per diluted share compared to $219 million or $1 nine per share last year.

Sean Trauschke: We just completed another strong quarter and I'm excited about the future. We remain confident in our ability to deliver on our commitments while continuing to grow the business. As I mentioned, we have many positive updates to share in the quarters ahead. Thank you and I'll now turn the call over to Chuck. Chuck, thank you Sean and thank you.

In our core business. The electric company achieved net income of $243 million or $1 20 per diluted share compared to $225 million or $1 20 per share last year.

The main driver of the year over year increase in net income was increased recovery of capital investments.

Charles Walworth: Jason and good morning everyone. We're three quarters through the year and our steady execution positions us to deliver results in the top half of our 2025 earnings guidance range. It's our execution that will lead us to continued long term success. I'm excited to review our financial performance with you today. Starting on Slide 5. For the third quarter, consolidated net income was $231 million or $1.14 per diluted share compared to $219 million or $1.09 per share last year. In our core business, the electric company achieved net income of $243 million or $1.20 per diluted share compared to $225 million or $1.20 per share last year. The main driver of the year over year increase in net income was increased recovery of capital investments. Milder weather this summer compared to last year and higher O&M and income taxes partially offset the increase.

Milder weather this summer compared to last year and higher O&M in income taxes, partially offset the increase.

The holding company reported a loss of $12 million or <unk> <unk> per diluted share compared to a loss of $6 million or <unk> <unk> per share last year. The change was primarily attributed to higher income tax interest expense, partially offset by an income tax benefit.

Let's turn our attention to our 2025 financial plan update on slide six year over year customer growth continued its healthy multiyear pace. It was just under 1% in the third quarter, our weather normalized load growth was historically strong once again at six 5% through the third quarter compared to <unk>.

<unk> to the same period last year.

We expect total retail normalized load growth of approximately seven 5% in 2025.

Our execution keeps us firmly on plan to deliver on our consolidated earnings commitment.

Charles Walworth: The holding company reported a loss of $12 million or $0.06 per diluted share compared to a loss of $6 million or $0.03 per share last year. The change was primarily attributed to higher interest expense partially offset by an income tax benefit. Let's turn our attention to our 2025 financial plan update on Slide 6. Year over year customer growth continued its healthy multi year pace and was just under 1% in the third quarter. Our weather normalized load growth was historically strong once again at 6.5% through the third quarter compared to the same period last year. We expect total retail normalized load growth of approximately 7.5% in 2025. Our execution keeps us firmly on plan to deliver on our consolidated earnings commitment. We continue to expect to be in the top half of 2025's earnings guidance range.

We continue to expect to be in the top half of 2020 Fives earnings guidance range, Sean discussed our local economies and communities are strong and our intentional efforts around economic and business development provide important support for growth.

In each quarterly update we highlight how our sustainable business model works by attracting new customers to our service area with low rates and reliable electric service, helping our communities to grow and prosper.

We've updated our capital plans include the Fort Smith to Muskogee transmission line, which will address reliability and capacity issues in the Fort Smith, Arkansas area. This $250 million project is planned to go into service in three phases in 2027, 28 and 29.

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This higher voltage line will be primarily recovered through our FERC formula rate and we have received approval to utilize seawolf recovery during construction of the project.

Charles Walworth: Sean discussed how our local economies and communities are strong and that our intentional efforts around economic and business development provide.

The updated capital plan is included in the appendix.

Jason Bailey: Important support for growth.

Charles Walworth: In each quarterly update, we highlight how our sustainable business model works by attracting new customers to our service area with low rates and reliable electric service, helping our communities to grow and prosperity. We've updated our capital plan to include the Fort Smith to Muskogee transmission line, which will address reliability and capacity issues in the Fort Smith, Arkansas area. This $250 million project is planned to go into service in three phases in 2027, 2028, and 2029. This higher voltage line will be primarily.

Our financial position remains strong our balance sheet is one of the strongest in the industry and is an important competitive advantage one we're committed to maintaining.

We have requested <unk> recovery on Horseshoe Lake units 13, and 14 the use of <unk> has important dual customer benefits first by reducing the long term cost to customers and second by supporting the balance sheet during the construction phase of projects.

As I close let's review, our guiding financial objectives.

As we grow the company, we will maintain our competitive low rate advantage by focusing on our cost structure.

Jason Bailey: Recovered through our FERC formula rate plan.

Charles Walworth: We have received approval to utilize CWIP recovery during construction of the project. The updated capital plan is included in the Appendix. Our financial position remains strong. Our balance sheet is one of the strongest in the industry and is an important competitive advantage, one we are committed to maintaining. We have requested CWIP recovery on Horseshoe Lake Units 13 and 14. The use of CWIP has important dual customer benefits, first by reducing the long-term cost to customers and second by supporting the balance sheet during the construction phase of projects. As I close, let's review our guiding financial objectives as we grow the company. We will maintain our competitive low rate advantage by focusing on our cost structure, minimize the time between investments and the return and recovery, and grow the company by maintaining a highly credible total return proposition for our shareholders.

Minimize the time between investments and the return and recovery.

And grow the company by maintaining a highly credible total return proposition for our shareholders.

We've made great progress so far this year, our steady execution keeps us on track to deliver on the top half of this year's guidance range or low growth remains historically strong.

We've reached a settlement with a number of parties in the Oklahoma Preapproval request if approved we will move our planned Oklahoma rate review from the end of this year to the second half of next year.

And we will continue to assess the timing of the next rate review in Arkansas.

We have requested C, whip recovery on Horseshoe Lake units, 13 and 14. The use of sea whip has important dual customer benefits first, by reducing the long-term, cost to customers. And second by supporting the balance sheet, during the construction phase of projects,

We've updated our capital plan for the Fort Smith to Muskogee transmission line.

As I close, let's review our guiding Financial objectives.

Additional updates to our capital and financing plans, we will follow a determination in the pre approval case.

As we grow the company, we will maintain our competitive low-rated Advantage by focusing on our cost structure.

And finally, our results keep us as confident as ever in our ability to achieve our consolidated earnings growth rate of 5% to 7% based on the midpoint of our 2025 guidance.

Minimize the time between Investments and their return and Recovery.

Charles Walworth: We've made great progress so far this year. Our steady execution keeps us on track to deliver in the top half of this year's guidance range. Our load growth remains historically strong. We've reached a settlement with a number of parties in the Oklahoma preapproval request. If approved, we will move our planned Oklahoma rate review from the end of this year to the second half of next year and we will continue to assess the timing of the next rate review. In Arkansas, we've updated our capital plan for the Fort Smith to Muskogee transmission line. Additional updates to our capital and financing plans will follow a determination in the preapproval case. Finally, our results keep us as confident as ever in our ability to achieve a consolidated earnings growth rate of 5% to 7% based on the midpoint of our 2025 guidance.

And grow the company by maintaining a highly credible, Total return proposition for our shareholders.

We've made great progress so far this year.

The strength of the current year's plan allows us to focus on the future address our customers' expectations of a safe and reliable system and to deliver power at some of the lowest rates in the nation.

Our steady execution, Keeps Us on track to deliver in the top half of this year's guidance range. Our low growth remains historically strong.

As always the foundation of our success is grounded on the dedication of our employees and their ability to get the job done.

That concludes our prepared remarks, and we'll now open the line for your questions.

We've reached the settlement with a number of parties in the Oklahoma pre-approval. Request. If approved, we will move our planned Oklahoma rate review from the end of this year to the second half of next year.

Thank you ladies and gentlemen, if you have a question or comment at this time. Please press star one on your telephone. If your question has been answered you remove yourself from the queue. Please press star one again, we will pause for a moment, while we compile the Q&A roster.

And we will continue to assess the timing of the next rate review in Arkansas.

We've updated our Capital plan for the Portsmith to Muscogee. Transmission line.

Additional updates to our capital and financing plans will follow a determination in the pre-approval case.

Okay.

Okay.

Yeah.

Our first question comes from Sean <unk> with Wells Fargo. Your line is open.

Hi, Good morning, Chuck Sean Great to hear from you, it's actually Constantine here sure.

Charles Walworth: The strength of the current year's plan allows us to focus on the future, address our customers' expectations of a safe and reliable system, and to deliver power at some of the lowest rates in the nation. As always, the foundation of our success is grounded on the dedication of our employees and their ability to get the job done. That concludes our prepared remarks and we'll now open the line for your questions.

And finally, our results keep us as confident as ever in our ability to achieve a Consolidated earnings growth rate of 5 to 7% based on the midpoint of our 2025 guidance.

Good morning.

Good morning, Greg.

Great to be back.

Maybe starting off on the Capex in ANZ, we have the $250 million a day today and but as we are building to the fourth quarter update.

The strength of the current year's plan allows us to focus on the future address. Our customers, expectations of the safe and reliable system and to deliver power at some of the lowest rates in the nation.

The preapproval settlement out there and another 800 megawatts in the ERP how.

As always the foundation of our success is grounded, on the dedication of our employees and their ability to get the job done.

How quickly do you think those elements start rolling into plan and is there kind of any acceleration in the RFP process that youre seeing and to address some of those needs.

Operator: Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star 11 on your telephone. If your question has been answered, you wish to move yourself from the queue, please press star 11 again. We'll pause for a moment while we compile our Q and A roster. Our first question comes from Sean Pereza with Wells Fargo. Your line is open.

That concludes our prepared, remarks and will now open the line for your questions.

Yes. Thanks Constantine this is Sean.

I like that.

Characterization, they're rolling I think that's how we're thinking about it.

Thank you, ladies and gentlemen, if you have a question or a comment at this time, please press star 1, 1 on your telephone. If your question has been answered, you received yourself from the queue, please press star. 1 1 again, we will pause for a moment while we compile, our Q&A roster.

We're anticipating this approval for under the Preapproval.

And a couple of weeks here and then we're going to layer that in there.

And then we're probably going to make some additional filings as I mentioned in my remarks split.

Constantine Lednev: Hi, good morning, Chuck. Sean, great to hear from you. It's actually Constantine here for sure.

Our first question comes from sharp Risa with Wells Fargo. Your line is open.

Sean Trauschke: Good morning.

Hi, good morning, Chuck, Sean. Great to hear from you. It's actually a Constantine here for sure.

Coming out of the last RFP.

Good morning.

Jason Bailey: It's great to be back.

We will make that filing we get approved for that will layer that in there.

Constantine Lednev: Maybe starting off on the CapEx news, we have the $250 million update today, but as we're building to the fourth quarter update and with the preapproval settlement out there and another 800 MW.

Will probably commence a new RFP to kind of continue down that road and so I think your characterization of Rolling I think you should just consider it a continuous flow of updates.

Good morning, that's great to be back. Uh, maybe starting off on the capex needs you. We have the 250 million update today, and but as we're building to the fourth quarter update,

Sean Trauschke: In the IRP, how quickly do you.

And with the pre-approval settlement out there and another 800 megawatts in the IRP.

Constantine Lednev: think those elements start rolling into plan? Is there any acceleration in the RFP process that you're seeing to address some of those needs?

Okay, so versus kind of the fourth quarter that we've typically seen when we should expect yes. Thanks, Brian Yes, Youll see youll see that the normal update in the fourth quarter that should improve the approval.

Sean Trauschke: Yeah, thanks, Constantine. This is Sean. I like that characterization there, rolling. I think that's how we're thinking about it. We're anticipating this approval under the preapproval in a couple weeks here, and then we're going to layer that in there. We're probably going to make some additional filings. As I mentioned in my remarks with coming out of the last RFP, we'll make that filing, we get approval for that, we'll layer that in there. We'll probably commence a new RFP to kind of continue down that road. I think your characterization of rolling, I think you should just consider it a continuous flow of updates.

The last filing.

And include the customary updates we always do and then in addition to that these generation edge will add those as we receive approval.

Okay, perfect and in terms of the new regulatory constructs that are in place now how significant is the impact on that ROE lag. If you can quantify it at all and do you anticipate including some of these benefits in 'twenty six planning assumptions.

Yes <unk>.

I think we've always had a really good track record on minimizing lag on earned ROE. So this is obviously just accretive to that.

Yeah, thanks Constantine. This is Sean. Um, I I like that. Um, um, characterization there rolling. I think that's how we're thinking about it. Um, we're anticipating this approval for under the pre-approval, um, and a couple weeks here and then we're going to layer that in there. Um, and then we're probably going to make some additional filings. Um, as I mentioned in my remarks, with, um, coming out of the, the last RFP, um, we'll make that filing. We get approved for that, we'll layer that in there. Um, we'll probably commence a new RFP to kind of continue down that road. And so, I think your characterization of rolling, I think you should just consider it a continuous flow of, um, updates.

Constantine Lednev: Okay, versus kind of the fourth quarter that we've typically seen, we should expect more periodic updates, right?

You can see some of those impacts as disclosed in our 10-Q today in terms of some of those benefits and we will definitely lay that out whenever we come up with guidance for next year.

Sean Trauschke: Yeah.

Charles Walworth: You'll see, you'll see the.

Sean Trauschke: Normal update in the fourth quarter. That should improve the approval of the last filing. It'll include the customary updates we always do. In addition to that, these generation ads, we'll add those as we receive approval. Okay, perfect.

And just the last one related to kind of at that 26 update and given the ramp schedules for that C&I load and kind of do you see that 26 load growth and being higher than your planning assumptions as you roll into that year.

Okay, so versus kind of the fourth quarter that we've typically seen, we should expect more periodic updates, right? Yeah, yeah. You'll you'll see, I mean, you'll see the the the normal update in the fourth quarter, that should improve the approval of um the last filing. Um, and it'll include the customary updates, we always do. And then in addition to that, these generation ads will add those as we receive approval.

Constantine Lednev: In terms of the new regulatory constructs that are in place now, how significant is the impact on that ROE lag, if you can quantify it at all? Do you anticipate including some of these benefits in 2026 planning assumptions?

We'll bring you a full update in February but clearly the we don't see any changes in the fundamentals that are driving the results that we see in our service area, but we will address that fully in our February call.

Okay, perfect. And in terms of the new regulatory constructs uh kind of that are in place now, how significant is the impact on that Roe lag? If you can quantify it at all, and do you anticipate including some of these benefits in 26 planning assumptions?

Charles Walworth: Yeah, Constantine, it's, you know, I think we've always had a really good track record on minimizing lag on earned ROE. This is obviously just accretive to that. You can see some of those impacts as disclosed in our 10-Q today in terms of some of those benefits. We'll definitely lay that out whenever we come up with guidance for next year.

Alright, Okay and year to date has been healthy.

Thanks for that I appreciate it.

One <unk> one moment for our next question.

Our next question comes from Julien Dumoulin Smith with Jefferies. Your line is open.

Hi, Good morning, it's Brian and so on for Julien.

Constantine Lednev: Just the last one related to that 2026 update. Given the ramp schedules for that CNI load, do you see the 2026 load growth being higher than your planning assumptions as you roll into that year?

Yeah, Constantine. It's uh, you know, I think we've always had a, a really good track record on minimizing, you know, lag on earned Roe. So this is obviously just a creative, you know, to that um, you know, you can see some of those impacts uh as disclosed in our 10 Q today. In terms of, you know, some of those, those benefits and we'll definitely lay that out. Uh, when whenever we, you know, come up with guidance for, for next year,

Good morning, Brian.

Hey, just.

See you add the SPP project to the Capex could you maybe talk about the upcoming 2025 SPP.

And and just the last 1 related to kind of that 26 update and I've given the ramp schedules for that cni load. And then do you see the 26 load growth, kind of being higher and then you're planting assumptions as you roll into that year?

<unk> plan I think there are expectations that it could be nearly double the 2024 plan.

Charles Walworth: We'll bring you a full update in February. Clearly, we don't see any changes in the fundamentals that are driving the results that we see in our service area. We'll address that fully in our February call.

Just curious it seems as Oklahoma is one of the fastest faster growing states in SPP. So I'm just wondering what your competitive position is there.

Two two.

Sean Trauschke: Right. Okay.

Uh, you know, well, we'll, we'll, we'll bring you a full update from February. But, you know, clearly the we don't see any changes in the fundamentals. Uh, that are driving the results that that, that we see in our service area. But we'll, we'll address that fully in our February call.

Constantine Lednev: Year to date has been healthy. Thanks for that.

Pursuing more projects like the one you just added to Capex.

Sean Trauschke: I appreciate it.

Operator: One moment.

Sean Trauschke: Thanks, Constantine.

Right. Okay and year to date, it's been healthy. So thanks for that, appreciate it.

Yeah, Hey, Brian Good morning, Chuck Hey, it's obviously something that we're.

Operator: One moment for our next question. Our next question comes from Julien Dumoulin-Smith with Jefferies. Your line is open.

1 moment.

1 moment for our next question.

Very closely involved.

With our with our team at the SVP.

In that process, Yes, you are right I think.

Our next question comes from Julian. Dublin Smith with Jeffrey, your line is open.

[Analyst 1]: Hi, good morning, it's Brian Rousseau on for Julien.

They are looking at a pretty robust plan, but there is still a couple of milestones a couple of the SPP board meetings that that's got to go through.

Sean Trauschke: Good morning, Brian.

Hi, good morning. It's Brian for Julian.

[Analyst 1]: Hey, it's nice to see the SPP project to the CapEx. Could you maybe talk about the upcoming 2025 SPP ITP plan? I think there are expectations that it could be nearly double the 2024 plan. I'm just curious, it seems as if Oklahoma is one of the faster growing states in SPP. I'm just wondering what your competitive position is there to pursue more projects like the one you just added to CapEx.

Good morning, Brian.

Before we really have something that we can.

<unk> give you a firm idea as to what the opportunity set really looks like so.

It's an exciting exciting area I think but more to come.

Okay, Great and then I think as part of the pre approval settlement filing you plan to file a large low tariff with your next rate case and I was just curious I assume that the contract negotiations are still going on with the Google Stillwater.

Charles Walworth: Yeah. Hey, Brian, good morning.

Hey, just um, it's nice to see you. Add the spp uh project to the capex. Could you maybe talk about the upcoming 2025 spp ITP plan? You know, I think their expectations that it could be nearly double the 2024 plan. Um, and, you know, I was just curious. It seems as if Oklahoma is 1 of the fastest, fastest growing States in Sp. So I'm just wondering, you know what your competitive position is there, uh to, you know, to um pursue more projects like the 1, you just added to capex.

Sean Trauschke: This Chuck.

Charles Walworth: It's obviously something that we're very closely involved with our team at the SPP in that process. Yes, you're right. I think they're looking at a pretty robust plan. There are still a couple of milestones, a couple of SPP board meetings that have to go through before we really have something that we can give you a firm idea as to what the opportunity set really looks like. It's an exciting area, I think, but more to come.

Project.

Yes, I think.

That was the requirement in the settlement to file that large low tariff.

But to the extent that we finalized an agreement before then we will file it then.

Okay, Great and then lastly.

Is the new load growth outlook of seven 5% for 2025 is that now at the low end of your prior range just wondering what's driving that.

Yeah. Hey Brian. Good morning. This is Chuck. Hey, you know, it's obviously something that we're um, you know, very closely involved uh, with our, with our team at the spp. Uh, in that process, you know? Yes, you're right. I think, um, you know, that they're looking at a pretty robust plan but there's still a couple of Milestones, a couple of uh, spp board meetings that that's got to go through uh before we really have something that we can uh, give, you know, give you a firm idea as to you know what the opportunity.

Yes, so so.

So youre right, but as we've said kind of all along some of these loads that we have are a little chunky and the timing can kind of it's really hard to nail it down whether it's.

looks like so, um, you know, it's an exciting exciting area I think but but more to come

Sean Trauschke: Okay, great.

[Analyst 1]: I think as part of the preapproval settlement filing, you plan to file a large load tariff with your next rate case. I was just curious. I assume that the contract negotiations are still going on with the Google Stillwater data center project.

The start of this quarter or the beginning of next quarter.

And so we've got a little bit of timing.

Going on there we have one customer in particular, that's coming in about a quarter later than they had anticipated so.

Okay, great. And and then, I think, as part of the pre-approval settlement filing you plan to file a large load tariff with your next rate case, I was just curious, I assume that the contract, negotiations are still going on with the the Google Stillwater.

Uh project.

Sean Trauschke: I think that was the requirement in the settlement to file that large load tariff. To the extent that we finalized an agreement before then, we'll file it then. Okay, great.

So just really mainly a timing issue.

Alright, great. Thank you very much.

Thanks, Brian.

Yeah, I I think, um, you know, that was the requirement in the settlement, um, to follow that large load tariff, um, um, but to the extent that we've finalized an agreement before, then we'll file it, then,

One moment for our next question.

[Analyst 1]: Lastly, is the new load growth outlook of 7.5% for 2025 now at the low end?

Our next question comes from Stephanie Dambrosio with RBC capital markets. Your line is open.

Sean Trauschke: Of your priority range?

Okay.

[Analyst 1]: Just wondering what's driving that.

You bet.

Charles Walworth: Yeah, you're right. As we've said kind of all along, some of these loads that we have are a little chunky and the timing, you know, can kind of, it's really hard to nail it down, whether it's the start of this quarter or the beginning of next quarter. We've got a little bit of timing going on there. We have one customer in particular that's coming in about a quarter later than anticipated, so just really mainly a timing issue.

Okay, great. And then lastly is is is the new load growth out Outlook of 7 and a half percent for 2025, is that now at the low end of your prior range, just wondering what's driving that

My apologies.

Apologize.

Tom.

Got it.

And we're going to we're going to enjoy that one for a while.

Hi, Bob.

I Couldnt happens on a better call I'm not going to like doesn't happen on a very solid.

Welcome back good to hear from you.

Thank you very much good to hear from you I. Appreciate you guys, let me add yes.

So just quickly a follow up on how you guys are going to need to 850 megawatts.

Shortfall.

Our capacity.

You have by 2030 just.

Right. But, you know, as we've said, kind of all along some of these loads that we have are a little chunky and the timing, you know, can kind of its really hard to nail it down. Whether it's, you know, the start of this quarter, the beginning of next quarter. Um, and so we've got a little bit of timing, uh, going on there, we have 1 customer in particular, uh, that's coming in about a quarter later than than anticipated. So, um, you know, so, so just really mainly a timing issue.

When I'm thinking about.

[Analyst 1]: All right, great. Thank you very much.

I think you have some of the RFP results still outstanding but.

Sean Trauschke: Thanks, Brian.

All right, great. Thank you very much.

Operator: One moment for our next question. Our next question comes from Stephen D'Ambrisi with RBC Capital Markets. Your line is open.

Thanks Brian.

They feel like they might be a little stale now at this point and I know you are ongoing we have discussions ongoing but do you think it is likely that you can get material capacity out of the prior rfps or do we have to run new rfps to really make up most of that.

1 moment for our next question.

Our next question comes from Stephanie D ambrosi with RBC Capital markets. Your line is open.

Stephen D'Ambrisi: My apologies.

Charles Walworth: I apologize.

Capacity deficit and then just like how long does that take to run a new RFP like what's the timing around.

Sean Trauschke: We're going to enjoy that one for a while. I know you will, Sean.

Stephen D'Ambrisi: I know it couldn't happen on a better call.

Announcements there.

Sean Trauschke: I'm not going to lie.

So great question so.

Charles Walworth: Welcome back.

Sean Trauschke: Good to hear from you. Thank you very much.

The answer to your first question, Yes, we do believe we have some capacity opportunities and the current RFP.

Stephen D'Ambrisi: Good to hear from you too. Appreciate you guys letting me on.

Sean Trauschke: Yeah.

Stephen D'Ambrisi: Just quickly, a follow up on how you guys are going to meet the 850 MW people shortfall or capacity need that you have by 2030. When I'm thinking about where I think you have some of the RFP results still outstanding, they feel like they might be a little stale now at this point. I know you're ongoing, you have discussions ongoing. Do you think it's likely that you can get material capacity out of the prior RFPs, or do we have to run new RFPs to really make up most of that capacity deficit? How long does that take to run a new RFP? What's the timing around announcements there?

And yes, we will file a new RFP.

To meet this need and that 800 megawatts you referenced there that largely depends on the ramp rate.

Quote this customer acts that we disclosed in the.

My apologies. I apologize. It's all good. It's all good. We're gonna, we're gonna enjoy that 1 for a while. I know you will son. I know, I, I couldn't happen to on a better call. I'm not going to lie. I'm not going to welcome back. Good to hear from you. Thank you very much. Good to hear from you, too. Appreciate you guys letting me on. Um, yeah. So just quickly a follow-up on, you know, how you guys are going to meet the 850 megawatt. Um shortfall uh or capacity. Uh needs that you have by 2230. Just um, when I'm thinking about where you I know I think you have some of the, the RFP results still outstanding. But they they feel like they might be

And so.

It's kind of a give or take number two in terms of how quickly or how.

Slowly you get to that number in 2030, but nevertheless, I think it's an answer of yes to both those questions. Yes, we're going to get some amount of that last RFP and yes, we're going to file new RFP and.

Sean Trauschke: Yeah, great question. The answer to your first question, yes, we do believe we have some capacity opportunities in the current RFP. Yes, we will file a new IRP to kind of meet this need. That 800 MW you referenced there largely depends on the ramp rate of, quote, this Customer X that we disclosed in the IRP. That's kind of a give or take number too in terms of how quickly or how slowly you get to that number in 2030. Nevertheless, I think it's an answer of yes to both those questions. Yes, we're going to get some out of that last RFP and yes, we're going to file new RFP. I would expect that this second RFP to move along at a quicker pace. We've kind of got it nailed down now and I think everybody understands the rules.

I would expect that the second RFP.

A little stale now at this point and I know you're you're ongoing you have discussions ongoing, but do you think it's likely that you can get material capacity out of the prior rfps or do we have to run new rfps to to really make up most of that uh capacity deficit? And then just like how long does that take to run a new RFP? Like What's the timing around? Uh, you know announcements there?

To move along at a quicker.

Quicker pace.

Kind of got it nailed down now.

I think everybody understands the rules.

Okay that makes that makes a lot of sense and then just on the cover the sales growth well I kind of figured that it was timing, but just.

Like just looking at where you're at year to date I think sales growth is six 5% year to date, and you're still guiding to 7% or so.

I mean that implies a significant acceleration right until the fourth quarter and then just I guess, how does that set us up for sales growth into 2026, right. Because effectively you are doing in customer. So all things equal that should drive higher sales growth year over year into the back into next year.

Yes, Steve I think I think your points are right I mean, we've seen this chunky growth before.

Yeah, so, um, a great, great question. And so, um, um, the answer to your first question? Yes, we do believe we have some capacity opportunities in the current RFP, um, and yes, we will file a new P, um, to kind of meet this need. And, you know, the 800 megawatts you referenced there, um, that largely depends on the ramp rate of, quote, this customer X, that we disclosed in the, um, um, IRP. And so, you know, that's kind of a give or take number too, in terms of how quickly or how, um, you know, slowly you get to that number in 2030. But nevertheless, I think it's, um, an answer of yes to both those questions. Yes, we're going to get some out of that last RFP. And yes, we're going to file a new RFP. And, um, I would expect that the second RFP, um, to, uh, move.

And how that can impact.

Any particular quarter on an outsized manner, and obviously you can kind of do your own math as to how that plays in the future years.

Stephen D'Ambrisi: Okay, that makes a lot of sense to me. Just on the covered the sales growth, I kind of figured that it was timing, but just, you.

A quicker Pace. Um you know kind of got it nailed down now and um I think everybody understands the rules.

But again, we will we will.

Be prepared to thoroughly discussed that with you at the next call.

Sean Trauschke: Just looking at where you're.

Okay, that makes that makes a lot of sense to me and then just on the I covered the sales growth. Well, I kind of figured that it was timing but just

Stephen D'Ambrisi: Year to date, I think sales growth is 6.5% year to date and you're still guiding to 7.5%. That implies a significant acceleration right into the fourth quarter. I guess, how does that set us up for sales growth into 2026? Right, because effectively you're delaying customers. All things equal, it should drive higher sales growth year over year into next year.

Okay Alright.

Alright, Thats all I had I hope you guys get a kick out of that.

I'm glad that it's going to be tough.

You know, like just looking at where you're at your data. Think. Sales growth is 6 and a half percent your date, and your still guiding the 7 and a half. So

Forever on the Internet so loved that.

Thanks, Dave.

We're looking at now.

One moment for our next question.

The next question comes from Chris <unk> with me.

Your line is open.

Hi team thanks for the time today.

I mean, that implies a significant acceleration right into the fourth quarter. And then, I guess, how does that set us up for sales growth into 2026? Right? Because, effectively, you're delaying a customer, so all things equal, it should drive higher sales growth year-over-year into the back end of next year.

Charles Walworth: Yeah, Steve, I think your points are right. I mean, we've seen this chunky growth before and how that can impact any particular quarter in an outsized manner. Obviously, you can kind of do your own math as to how that plays in the future years. Again, we'll be prepared to thoroughly discuss that with you at the next call.

Good morning.

Gordon I just had a question regarding the dividend growth rate should we be expecting that to be in line with that EPS CAGR.

Yes, Chris.

So we've been very intentional about the dividend growth rate really in relation to the opportunity set that we've had for investments. So the past several years, we have kind of bifurcated the rates of those two with the dividend growing a little lower and we're we're basically tar.

Sean Trauschke: All right, that's all I had.

Yeah. Steve I think I think your points are right. I mean we've seen this this chunky growth before uh, and and and how that can, you know, impact, uh any particular quarter on an outsized Manner and you know obviously yeah you can kind of do your own math as to how that that plays in the future years. Um but you know again we'll we'll be prepared to thoroughly discuss that uh, with you at the next call.

Okay.

Stephen D'Ambrisi: I hope you guys get a kick out of that, and I'm glad that.

Sean Trauschke: It's going to be, you know, kept forever on the Internet.

Operator: So.

Sean Trauschke: Love that. Thanks, Steve.

Getting growing into a 65% to 70% payout ratio.

Operator: One moment for our next question. Our next question comes from Chris Hark with Mizuho. Your line is open.

All right, that's all I had. I, I hope you guys get a kick out of that. Uh and I'm glad that it's going to be, you know, kept Forever on the internet. So love that. Thank you.

And so we're well on our way to.

1 moment for our next question.

Getting to that target.

Once we get to that target, we'll kind of we'll kind of reassess where we are.

Our next question comes from Chris hark with muo, your line is open.

Sean Trauschke: Hi team.

Chris Hark: Thanks for the time today.

Versus versus again the.

Sean Trauschke: Good morning. Morning.

Hi team. Thanks for the time today.

Opportunities that we have out there and make that capital allocation decision at that time.

Morning.

Chris Hark: I just had a question regarding the dividend growth rate. Should we be expecting that to be in line with the EPS CAGR?

Okay awesome. Thank you for the color there and then.

Morning, I just had a question regarding the, uh, dividend growth rate. Uh, should we be expecting that to be in line with the EPS Kerr?

Charles Walworth: Yeah, Chris. We've been very intentional about the dividend growth rate really in relation to the opportunity set that we've had for investments. The past several years, we have kind of bifurcated the rates of those two with the dividend growing a little lower. We're basically targeting growing into a 65% to 70% payout ratio. We're well on our way to getting to that target. Once we get to that target, we'll kind of reassess where we are versus, again, the opportunities that we have out there and make that capital allocation decision at that time.

Next question I had was really just around the cadence of rate filings. So she pushed that back to second half 'twenty.

<unk> six should we be expecting that kind of similar similar time of year for next two years.

Two year period after forecast period.

Yes.

I would I would say that really nothing has changed our philosophy maintains.

What would be the same as it was but clearly this was part of the give and take.

Of the negotiations for settlement agreement. So yes, if approved we would ship that board per the terms of the settlement agreement, but I think going forward from that.

We would still be operating under the same philosophy that we have been.

Several years, you know, we, we have kind of bifurcated, the rates of those 2, with the dividend growing a little lower and, and we're, you know, we're basically targeting growing into a 65% to 70% payout ratio, uh, and so we're well on our way, uh, to to getting to that Target. And, you know, once we get to that Target, we'll kind of, we'll kind of reassess where we are, um, you know, versus versus again, the the, uh, opportunities that we have out there and, you know, make that Capital allocation decision at that time.

Chris Hark: Okay, awesome. Thank you for the color there. The next question I had was really just around the cadence of rate filings. If you push that back to the second half of 2026, should we be expecting that kind of similar, similar time of year for the next two years during the fourth two-year period of the forecast period?

Alright, perfect. That's all I have thank you guys.

Thank you.

One moment for our next question.

Our next question comes from Grant <unk> with Wolfe Research Your line is open.

Hi, Good morning, Sean shocking Jason can you hear me yes.

Charles Walworth: I guess I would say that, you know, really nothing has changed. Our philosophy maintains, you know, to be the same as it was. Clearly this was part of the give and take of the negotiations for a settlement agreement. Yes, we, if approved, would shift that forward per the terms of the settlement agreement. I think going forward from that, we would still be operating under the same philosophy that we have been.

Okay, awesome. Thank you for the color there. And then, um, next question, I had was really just around the Cadence of rate filings. So if you push that back to the second half of, uh, 26, uh, should we be expecting that kind of similar, similar time of year for the next 2 years, throughout the 4, uh, 2 year period off to forecast period. Um,

Yeah, Good morning edition.

yeah, I I guess I would

Hey, good morning, Sean Thank you for taking my questions.

Just maybe starting with the Capex.

Increase to your plan that $250 million, Chuck you've been clear that any capital increases will have an equity component to it and recognize that those set of communicate your financing plans with the Q4 update but are you willing to share sort of a rough rule of thumb.

This $250 million should we assume its 50, 50% lesser than that just any color there.

I would say that, you know, really nothing has changed our philosophy. It maintains, uh, you know, to be the same, uh, as it was. Uh, but, you know, clearly this was part of the give and take of the negotiations for a settlement agreement. So, you know, yes, if approved, we would ship that forward per the terms of the settlement agreement. I think going forward from that, uh, we would still be operating, you know, under the same philosophy that we have been.

Sean Trauschke: Okay, perfect.

Chris Hark: That's all I have. Thank you, guys.

Charles Walworth: Thank you.

Okay, perfect. That's all I have. Thank you guys.

Operator: One moment for our next question. Next question comes from Aditya Gandhi with Wolfe Research. Your line is open.

Thank you.

Yes, it did.

I think the plan remains the same we thought it was was only right to go ahead and roll. This project in now since it's since it's signed up but with the really the biggest of the of the increase still pending out there.

1 moment for our next question.

Next question, comes from a d, your granddaughter with wolf research, your line is open.

Aditya Gandhi: Hi, good morning, Sean, Chuck, and Jason, can you hear me?

Sean Trauschke: Yeah, we can. Good morning, Nadesha.

Hi, good morning, Sean. Chuck and Jason. Can you hear me?

Aditya Gandhi: Hey, good morning, Sean. Thank you for taking my questions. Just maybe starting with the CapEx increase to your plan to $250 million. Chuck, you've been clear that any capital increases will have an equity component to it and recognize that you'll sort of communicate your financing plans with the Q4 update. Are you willing to share sort of a rough rule of thumb for this $250 million? Should we assume it's 50/50, lesser than that, just any color there?

Yeah, we can. Good morning the de.

We're going to we're going to hold and get approval on that and then we will give you give you that clarity that we've been describing all along.

Got it. Thank you and then maybe just one on the data Center front, Sean you mentioned in your prepared remarks that you sort of hope to share.

<unk> soon.

Or sort of in the coming quarters can you maybe give us more color on sort of.

What stage of discussions you are in.

It reasonable to say that.

Discussions are in advanced stages now and then can you just remind us how any potential announcements to make on the data center front with interplay with a special contractor datacenter tariff filing at the Commission and then.

[Analyst 1]: Yeah.

Hey, good morning, Sean. Thank you for taking my questions. Um, just maybe starting with the capex, uh, increase, uh, to your plan, the 250 million Chuck. You've been clear that any, uh, Capital increases will will have an equity component to it and recognize that you'll, you'll sort of communicate your, your financing plans with the Q4 update, but are you willing to share, sort of a rough rule of thumb? Um, for for, uh, for this 2150 million should should we assume it's 50/50 less than that? Just any color there?

Charles Walworth: Aditya, I think that the plan remains the same. We thought it was only right to go ahead and roll this project in now since it's signed up. With really the biggest of the increase still pending out there, we're going to hold and get approval on that, and then we'll give you that clarity that we've been describing all along.

Javier to sort of show.

The capacity needs associated with any potential data center customer.

Yes.

There's a lot in there.

Yes.

Yeah, I did. I, you know, I think the the plan Remains the Same. We, you know, we thought it was was only right to go ahead and roll this project in now. Since it's, you know, since it's signed up but, you know, with the the really, the biggest of, of the of the increase still pending out there, um, you know, we're going to, we're going to hold and, and get approval on that and then we'll give you give you that Clarity, uh, that we've been describing all along.

I think.

Stephen D'Ambrisi: Got it.

Aditya Gandhi: Thank you. Maybe just one on the data center front, Sean, you mentioned in your prepared remarks that you hope to share updates soon or in the coming quarters. Can you give us more color on what stage of discussions you're in? Is it reasonable to say that the discussions are at advanced stages now? Can you remind us how any potential announcement you make on the data center front would interplay with a special contract or data center tariff filing at the Commission, and how you serve the capacity needs associated with any potential data center customer?

I think it's fair to characterize that.

We are in very serious negotiations and.

I think my prepared remarks.

Im optimistic that we would be in a position to announce something soon.

Got it. Uh thank you and then maybe just 1 on the data center Front, Sean. You mentioned in your prepared remarks that um you you sort of Hope to share um updates uh soon or sort of in the coming quarters. Uh, can you maybe give us more color on sort of?

In terms of.

The filing yes, there would be some sort of announcement and we would certainly.

Followed that up with some sort of filing with the commission.

For approval of all of that so I think that that's normal and customary.

In terms of your question about the capacity, how we will fill that need and our last RFP, we did provision for that.

Operator: Thanks.

And then thinking about that again a.

Sean Trauschke: Yeah, there's a lot in there. I think it's fair to characterize that we were in very serious negotiations, and I think my prepared remarks were optimistic that we would be in a position to announce something soon. In terms of the filing, yes, there would be some sort of announcement, and we would certainly follow that up with some sort of filing with the Commission for approval of all that. I think that's normal and customary. In terms of your question about the capacity, how we'll fill that need, you know, in our last IRP, we did provision for that and been thinking about that. Again, a lot of that goes back to kind of how the counterparty contemplates a ramp rate and what they're thinking in terms of that, in terms of meeting that capacity obligation. I feel confident we're going to be able to meet that.

What stage of discussions you're in, uh, is it reasonable to say that the the discussions are Advanced stages now? And and then can you just remind us how any potential announcement you make on the data center front but interplay with a special contract or uh data center tariff, filing at the commission and then um have you sort of serve uh the the capacity needs associated with with any potential data center in a customer. Thanks.

Yeah. Um,

A lot of that goes back kind of how how.

The counterparty contemplates a ramp rate and what theyre thinking in terms of that.

There, there's a lot in there. Um, I, I think, um, um, I think it's fair to characterize that. Um, um,

In terms of meeting that capacity obligation, but I feel confident we're going to be able to meet that.

Great. Thank you.

Okay. Thank you have a great day.

We are in very serious uh, negotiations and um um you know I think my prepared marks were um optimistic that we would be in a position to announce something soon. Um,

Again, ladies and gentlemen, if you have a question or comment at this time. Please press star one on your telephone.

Yeah.

Our next question comes from Nicholas Nicholas Campanella with Barclays. Your line is open.

I just have one question, if you're rolling the preapproval generation and data center.

Possible data center deal.

How would that.

How would that really.

The increase here.

Yes.

Long term EPS CAGR or are you just more confident in the five to seven range.

Yes.

Yes, I think all along we've been looking at our five to seven is in solid shape.

In terms of, um, the filing, yes, there would be some sort of announcement and we would certainly, um, follow that up with some sort of filing with, uh, the commission, um, for, um, approval of all that. So I I think that's, that's normal customary. Um, in terms of your question about the capacity, how we'll fill that need, you know, in our last RP, we did provision for that um, and and been thinking about that again. A lot of that goes back kind of how, how, um, the counterparty, um, contemplates a ramp rate and, uh, what they're thinking in terms of that, um, in terms of meeting that capacity, um, obligation, but I feel confident, we're going to be able to meet that.

Sean Trauschke: Great, thank you. Okay, thank you. Have a great day again, ladies and.

Great. Thank you.

Regardless of.

Okay. Thank you. Have a great day.

Operator: Gentlemen, if you have a question or a comment at this time, please press star one one on your telephone. Our next question comes from Nicholas Campanella with Barclays. Your line is open.

This deal or any other deal and you know our philosophy really is that we take we take a good look at where we are every year.

Again, ladies and gentlemen, if you have a question or a comment at this time, please press star 1, 1 on your telephone,

Before we put guidance out.

And kind of like this year, we might we might choose to.

Our next question comes from Nicholas, Nicholas campanola with barklay. Your line is open.

Sean Trauschke: How are you?

[Analyst 1]: I just have one question. If you roll in the preapproval generation and data center and the possible data center deal.

How are you?

Alter the trend line from the previous year so to speak.

And address it in that manner. So I think thats thats really more indicative of the philosophy that we have.

Constantine Lednev: How would that really?

[Analyst 1]: Increase your long-term EPS payer, or are you just more confident in.

I just have 1 question. If you roll in the pre-approval generation and uh Data Center and the possible data center deal. Um, how would that? And how would that really, uh, increase your

And the way that we've treated it in the past.

So hopefully that gives you a little a little color as to how we're thinking about it.

Sean Trauschke: The 5% to 7% range?

Your long-term EPS carrier or are you just more confident in the 5 to 7 range?

[Analyst 1]: Yeah.

Alright, thank you.

Charles Walworth: I think all along we've been looking at our 5 to 7 is in solid shape regardless of this deal or any other deal. Our philosophy really is that we take a good look at where we are every year before we put guidance out, and kind of like this year, we might choose to alter the trend line from the previous year, so to speak, and address it in that manner. I think that's really more indicative of the philosophy that we have and the way that we've treated it in the past. Hopefully that gives you a little color as to how we're thinking about it.

Okay.

And im not showing any further question at this time I'd like to turn the call back over to Shawn for any further remarks.

Okay. Thank you Kevin well, thank you all for joining us today.

Hope everyone has a great day and look forward to seeing everyone. Soon.

Thank you ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

Yeah. My um, yeah I think, you know, all along, you know, we've been looking at our our 5 to 7 is, you know in solid shape uh regardless of of um you know this deal or any other deal and you know our philosophy really is that we take we take a good look at where we are every year. Um, you know, before we put guidance out and, you know, kind of like this year, you know, we might, we might choose to, you know, to alter the, the trend line from the previous year so to speak and and, and address it in that manner. So I I I think that's that's really more indicative of the philosophy that we have.

Uh, and the way that we've treated in the past. Um, so so hopefully that gives you a little a little color as to how we're thinking about it.

[Analyst 1]: Thank you.

Thank you.

Operator: I'm not showing any further questions at this time. I'd like to turn the call back over to Sean for any further remarks.

Sean Trauschke: Okay, thank you, Kevin. Thank you all for joining us today. I hope everyone has a great day and look forward to seeing everyone soon.

And I'm not showing any further questions. This time, I'd like to turn the call back over to Sean for any further remarks.

Okay, thank you Kevin. Well thank you all for joining us today. Um I hope everyone has a great day and look forward to seeing everyone soon.

[Analyst 1]: Thank you.

Operator: Ladies and gentlemen, that concludes today's presentation. You may now disconnect and have a wonderful day.

Thank you, ladies and gentlemen. Let's conclude today's presentation. You may now disconnect and have a wonderful day.