Xcel Energy Q4 2025 Xcel Energy Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Xcel Energy Inc Earnings Call
Operator: Hello, and welcome to Xcel Energy 2025 year-end earnings conference call. My name is Jordan, and I'll be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, your lines will be in listen-only mode. A question-and-answer session will follow the prepared remarks, and questions will only be taken from institutional investors and analysts. Reporters can contact media relations with inquiries, and individual investors and others can reach out to investor relations. I'd now like to turn the call over to your host today, Mr. Rupesh Agarwal, Vice President, Investor Relations, to begin the conference. Please go ahead, sir.
Operator: Hello, and welcome to Xcel Energy 2025 year-end earnings conference call. My name is Jordan, and I'll be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, your lines will be in listen-only mode. A question-and-answer session will follow the prepared remarks, and questions will only be taken from institutional investors and analysts. Reporters can contact media relations with inquiries, and individual investors and others can reach out to investor relations. I'd now like to turn the call over to your host today, Mr. Rupesh Agarwal, Vice President, Investor Relations, to begin the conference. Please go ahead, sir.
Speaker #1: ENERGY 2025 Year-End Hello, and welcome to XCEL Earnings Conference Call. My name is Jordan, and I'll be your coordinator for today's event. Please note this conference is being call, your lines will be in listen-only mode.
Speaker #1: session will follow, and follow the prepared remarks. And questions will only be taken from institutional investors and analysts. Reporters can contact media relations with inquiries, A question-and-answer and individual investors and others can reach out to investor relations.
Speaker #1: I'd now like to turn the call over to your host today, Mr. Rupesh Aggarwal, Vice President, Investor Relations. To begin the conference, please go ahead, sir.
Speaker #2: Thank you, Jordan. Good morning, and welcome to XCEL ENERGY's 2025 Year-End Earnings Call. Joining me today are Bob Frenzel, Chairman, Officer; and Brian Van Abel, Executive Vice President and Chief Financial President, and Chief Executive Officer.
Roopesh Aggarwal: Thank you, Jordan. Good morning, and welcome to Xcel Energy's 2025 year-end earnings call. Joining me today are Bob Frenzel, Chairman, President, and Chief Executive Officer, and Brian Van Abel, Executive Vice President and Chief Financial Officer. In addition, we have other members of the management team in the room to answer your questions if needed. This morning, we will review our 2025 full year results and highlights, provide updated 2026 assumptions, and share recent business and regulatory updates. Slides that accompany today's call are available on our website. Some comments during today's call may contain forward-looking information. Significant factors that could cause results to differ from those anticipated are described in our earnings release and SEC filings. Today, we will discuss certain metrics that are non-GAAP measures. Information on the comparable GAAP measures and reconciliations are included in our earnings release.
Roopesh Aggarwal: Thank you, Jordan. Good morning, and welcome to Xcel Energy's 2025 year-end earnings call. Joining me today are Bob Frenzel, Chairman, President, and Chief Executive Officer, and Brian Van Abel, Executive Vice President and Chief Financial Officer. In addition, we have other members of the management team in the room to answer your questions if needed. This morning, we will review our 2025 full year results and highlights, provide updated 2026 assumptions, and share recent business and regulatory updates. Slides that accompany today's call are available on our website. Some comments during today's call may contain forward-looking information. Significant factors that could cause results to differ from those anticipated are described in our earnings release and SEC filings. Today, we will discuss certain metrics that are non-GAAP measures. Information on the comparable GAAP measures and reconciliations are included in our earnings release.
Speaker #2: In addition, we have other members of the management team in the room to answer your questions if needed. This morning, we will review our 2025 full-year results and highlights, provide updated 2026 assumptions, and share recent business and regulatory updates.
Speaker #2: Slides that accompany today's call are available on our during today's call may contain forward-looking information. Significant factors that could cause results to differ from website.
Speaker #2: Some comments—our ongoing earnings, which exclude this non-recurring charge, were, as a result, our GAAP was $3.80 per share. All further discussion on our earnings call will focus on annual ongoing earnings.
Speaker #2: filings. Today, we will discuss certain metrics that are non-GAAP measures, information on the comparable GAAP measures, and reconciliations are included in our earnings release.
Speaker #2: As a reminder, we recorded a charge of those anticipated are described in our earnings $300 million or 38 cents per share in 2025, reflecting the settlement in principle reached with plaintiffs in the Marshall earnings for 2025 were $3.42 per share, while Wildfire.
Roopesh Aggarwal: As a reminder, we recorded a charge of $300 million or $0.38 per share in 2025, reflecting the settlement in principle reached with plaintiffs in the Marshall Wildfire. As a result, our GAAP earnings for 2025 were $3.42 per share, while our ongoing earnings, which exclude this nonrecurring charge, were $3.80 per share. All further discussion on our earnings call will focus on annual ongoing earnings. For more information on this, please see the disclosure in our earnings release. I will now turn the call over to Bob.
Roopesh Aggarwal: As a reminder, we recorded a charge of $300 million or $0.38 per share in 2025, reflecting the settlement in principle reached with plaintiffs in the Marshall Wildfire. As a result, our GAAP earnings for 2025 were $3.42 per share, while our ongoing earnings, which exclude this nonrecurring charge, were $3.80 per share. All further discussion on our earnings call will focus on annual ongoing earnings. For more information on this, please see the disclosure in our earnings release. I will now turn the call over to Bob.
Speaker #2: For more information on this, please see the disclosure in our earnings release. I will now turn the call over to
Speaker #3: Thank you,
Bob Frenzel: Thank you, Rupesh, and good morning, everybody. At Xcel Energy, we continue to deliver on a once-in-a-generation opportunity to meet the increasing demands of our customers as they electrify more parts of their lives, support the economic development of our communities, to fuel the rapid growth of AI and data centers, and to continue to lead a clean energy transition in the country. Over the next 5 years, Xcel Energy expects to invest in excess of $60 billion to modernize and expand the grid, adding advanced transmission and distribution infrastructure, new natural gas and renewable generation, and smart, weather-hardened infrastructure. These upgrades will strengthen sustainability, reliability, and resiliency while keeping our customer bills as low as possible. We've also continued our decades-long track record of producing strong results for our owners.
Bob Frenzel: Thank you, Rupesh, and good morning, everybody. At Xcel Energy, we continue to deliver on a once-in-a-generation opportunity to meet the increasing demands of our customers as they electrify more parts of their lives, support the economic development of our communities, to fuel the rapid growth of AI and data centers, and to continue to lead a clean energy transition in the country. Over the next 5 years, Xcel Energy expects to invest in excess of $60 billion to modernize and expand the grid, adding advanced transmission and distribution infrastructure, new natural gas and renewable generation, and smart, weather-hardened infrastructure. These upgrades will strengthen sustainability, reliability, and resiliency while keeping our customer bills as low as possible. We've also continued our decades-long track record of producing strong results for our owners.
Speaker #3: Rupesh. And good morning, Bob. everybody. At XCEL ENERGY, we continue to deliver on the increasing demands of our customers as they electrify more parts Support the economic development of our communities, fuel the rapid growth of AI and data centers, and to continue to lead a clean energy transition in the country.
Speaker #3: Over the next decade, a once-in-a-generation opportunity to meet investment in excess of $60 billion to modernize and expand the grid, adding advanced transmission and distribution infrastructure, new natural gas and renewable generation, and smart weather-hardened infrastructure, these upgrades will strengthen sustainability, reliability, and resiliency while keeping our customer bills as low as possible.
Speaker #3: We've also continued our decades-long track record of producing strong results for our owners. In 2025, Xcel Energy delivered ongoing earnings of $3.80 per share, marking the 21st consecutive year of meeting or exceeding our initial ongoing earnings guidance.
Bob Frenzel: In 2025, Xcel Energy delivered ongoing earnings of $3.80 per share, marking the 21st consecutive year of meeting or exceeding our initial ongoing earnings guidance. We achieved that outcome with some of the lowest electric and natural gas bills in the country. This consistency reflects the strength of our strategy, the diversity of our business, and the dedication of our Xcel Energy team, who show up every day with safety, reliability, affordability, and sustainability as their top priorities. 2025 showcased what our people are capable of as we reached several important customer and operational milestones. With our disciplined execution and geographic advantage for renewables, we continue to deliver for our customers.
Bob Frenzel: In 2025, Xcel Energy delivered ongoing earnings of $3.80 per share, marking the 21st consecutive year of meeting or exceeding our initial ongoing earnings guidance. We achieved that outcome with some of the lowest electric and natural gas bills in the country. This consistency reflects the strength of our strategy, the diversity of our business, and the dedication of our Xcel Energy team, who show up every day with safety, reliability, affordability, and sustainability as their top priorities. 2025 showcased what our people are capable of as we reached several important customer and operational milestones. With our disciplined execution and geographic advantage for renewables, we continue to deliver for our customers.
Speaker #3: We achieved that outcome with some of the lowest electric and natural gas bills in the country. reflects the strength of our This consistency strategy, the diversity of our business, and the dedication of our XCEL ENERGY team, who show up every day with safety, reliability, affordability, and sustainability as their top our people are capable of as we priorities.
Speaker #3: operational 2025 showcased what milestones. With our disciplined execution and geographic advantage for renewables, we continue to deliver for our customers. Our residential electric customers in Colorado have the lowest share of wallet out of all 50 states.
Bob Frenzel: Our residential electric customers in Colorado have the lowest share of wallet out of all 50 states, and average electric bills in our other states occupy five of the top 11 spots in the country. Since 2020, residential electric bills in Denver and Minneapolis have grown far less than inflation and less than common expenses like groceries, gasoline, healthcare, insurance, and housing. And when compared to other national electricity providers, these bills have grown 40% and 80% less than other regions. It's a testament to our focus on affordability, our productive regulatory jurisdictions, and importantly, our integrated, regulated utility model that allows for long-term asset investment. It's also a testament to our One Xcel Energy Way continuous improvement program that has realized over $1.5 billion in cumulative savings since 2020, while also improving customer and operating outcomes.
Bob Frenzel: Our residential electric customers in Colorado have the lowest share of wallet out of all 50 states, and average electric bills in our other states occupy five of the top 11 spots in the country. Since 2020, residential electric bills in Denver and Minneapolis have grown far less than inflation and less than common expenses like groceries, gasoline, healthcare, insurance, and housing. And when compared to other national electricity providers, these bills have grown 40% and 80% less than other regions. It's a testament to our focus on affordability, our productive regulatory jurisdictions, and importantly, our integrated, regulated utility model that allows for long-term asset investment. It's also a testament to our One Xcel Energy Way continuous improvement program that has realized over $1.5 billion in cumulative savings since 2020, while also improving customer and operating outcomes.
Speaker #3: An average electric bill in our other states occupied 5 of the top 11 spots in the country. Since 2020, residential electric bills in Denver, Minneapolis, have grown far less than inflation, and less than common expenses like groceries, gasoline, healthcare, insurance, and housing.
Speaker #3: And when compared to other national electricity providers, these bills have grown 40 and 80 percent less than other regions. That's a testament to our focus on affordability, our productive regulatory jurisdictions, and importantly, our integrated regulated utility model that allows for long-term asset investment.
Speaker #3: It's also a testament to our One XCEL ENERGY way continuous improvement program that has realized over a billion and a half dollars in cumulative savings since 2020.
Speaker #3: While also improving customer and operating outcomes. As a result, when looking at our five-year average O&M expenses per megawatt hour, XCEL ENERGY ranked fourth lowest out of our peer utility companies.
Bob Frenzel: As a result, when looking at our 5-year average O&M expenses per megawatt hour, Xcel Energy ranked fourth lowest out of our peer utility companies. Even with some of the lowest energy bills in the country, we know some of our customers still struggle to make ends meet. In 2025, our energy assistance programs reached nearly 200,000 customers and provided nearly $200 million in funding, our highest ever one-year total. Our focus on reliability, affordability, and customer service was recognized by J.D. Power, who ranked Xcel Energy in the top quartile for the Midwest region and had the second highest score for customer satisfaction. Across our 8 states, we continue to build and maintain the critical infrastructure that supports our customers' energy needs. In 2025, we invested nearly $12 billion, our largest one-year total.
Bob Frenzel: As a result, when looking at our 5-year average O&M expenses per megawatt hour, Xcel Energy ranked fourth lowest out of our peer utility companies. Even with some of the lowest energy bills in the country, we know some of our customers still struggle to make ends meet. In 2025, our energy assistance programs reached nearly 200,000 customers and provided nearly $200 million in funding, our highest ever one-year total. Our focus on reliability, affordability, and customer service was recognized by J.D. Power, who ranked Xcel Energy in the top quartile for the Midwest region and had the second highest score for customer satisfaction. Across our 8 states, we continue to build and maintain the critical infrastructure that supports our customers' energy needs. In 2025, we invested nearly $12 billion, our largest one-year total.
Speaker #3: And even with some of the lowest energy bills in the country, we know some of our customers still struggle to make ends meet. 2025, our energy assistance programs In reached nearly $200,000 customers and provided nearly $200 million in funding, our highest ever one-year reliability, affordability, and customer service was recognized by JD Power, who ranked XCEL ENERGY in the top quartile for the total.
Speaker #3: Midwest region and had the second highest score for customer satisfaction. Across our eight states, we continue to build and maintain the critical infrastructure that supports our customers' Our focus on 2025, we invested nearly $12 billion, our largest one-year total.
Speaker #3: energy needs. In September, phase two of In our SURCO solar project started commercial operation. And a third phase 2026. And once complete, SURCO will be the largest solar Midwest.
Bob Frenzel: In September, phase two of our Sherco Solar project started commercial operation, and a third phase will come online in 2026. Once complete, Sherco will be the largest solar facility in the upper Midwest. We also completed the conversion of our 1,000-MW Harrington Generating Station to natural gas, which provides essential energy, resiliency, and reliability to our customers, and we source and deliver that natural gas for Harrington from the Permian region, and that combination will benefit the local community for years to come. We completed 370 MW of wind repowerings at our Border and Pleasant Valley facilities in the upper Midwest and expect $750 million in PTC benefits, which exceeds the investment that we made into these facilities, creating more affordable energy for our customers.
Bob Frenzel: In September, phase two of our Sherco Solar project started commercial operation, and a third phase will come online in 2026. Once complete, Sherco will be the largest solar facility in the upper Midwest. We also completed the conversion of our 1,000-MW Harrington Generating Station to natural gas, which provides essential energy, resiliency, and reliability to our customers, and we source and deliver that natural gas for Harrington from the Permian region, and that combination will benefit the local community for years to come. We completed 370 MW of wind repowerings at our Border and Pleasant Valley facilities in the upper Midwest and expect $750 million in PTC benefits, which exceeds the investment that we made into these facilities, creating more affordable energy for our customers.
Speaker #3: facility in the Upper conversion of our 1,000 megawatt Harrington coal plant to natural We also completed the gas. Which provides essential energy resiliency and reliability to our customers.
Speaker #3: And we source and deliver that natural gas for Harrington from the Permian region. And that combination will benefit the local community for years to come.
Speaker #3: We completed $370 megawatts of wind repowerings at our border and Pleasant Valley facilities in the Upper Midwest. And expect $750 million in PTC benefits which exceeds the investment that we made into these facilities, creating more affordable energy for our customers.
Speaker #3: We placed our $325 megawatt Rocky Mountain solar project in service this year, our first utility-scale solar farm in Colorado. With many come. And we released our updated more to 2026 to 2030 capital plan, which includes relative to our previous plan, an additional $7,000 megawatts of company-owned renewables natural gas generation and storage across our state to transition our fleet and build for growth.
Bob Frenzel: We placed our 325-MW Rocky Mountain Solar project in service this year, our first utility-scale solar farm in Colorado, with many more to come. And we released our updated 2026 to 2030 capital plan, which includes, relative to our previous plan, an additional 7,000 MW of company-owned renewables, natural gas generation and storage across our states to transition our fleet and build for growth. Speaking of enabling growth, over the past 15 years, Xcel Energy has been the leading builder of new transmission line miles in the country. Last spring, we energized our first two segments of the Colorado Power Pathway ahead of schedule, on scope, and under budget, delivering significant value to our Colorado customers. The remaining segments will be energized in 2026 and 2027.
Bob Frenzel: We placed our 325-MW Rocky Mountain Solar project in service this year, our first utility-scale solar farm in Colorado, with many more to come. And we released our updated 2026 to 2030 capital plan, which includes, relative to our previous plan, an additional 7,000 MW of company-owned renewables, natural gas generation and storage across our states to transition our fleet and build for growth. Speaking of enabling growth, over the past 15 years, Xcel Energy has been the leading builder of new transmission line miles in the country. Last spring, we energized our first two segments of the Colorado Power Pathway ahead of schedule, on scope, and under budget, delivering significant value to our Colorado customers. The remaining segments will be energized in 2026 and 2027.
Speaker #3: Speaking of enabling growth, over the past 15 years, Xcel Energy has been the leading builder of new transmission line miles in the country. Last spring, we energized our first two segments of the Colorado Power Pathway.
Speaker #3: Ahead of schedule, on scope, and under budget. Delivering significant value to our Colorado customers. The remaining segments will be energized in 2026 and SPP and MISO in 25 and 2027.
Bob Frenzel: Across SPP and MISO in 2025 and 2026, Xcel Energy has been awarded over 760mi of new 765kV transmission lines. This includes a second 765kV line in SPP that was awarded this week, which gives us line of sight to $1.5 billion in additional investment over our base 5-year plan. These will be the first voltage lines of this class in SPP and constitute 20% of the approved new ultra-high voltage transmission in this country, recognizing Xcel Energy's expertise in building and operating transmission networks. We also reached several milestones as we continue to make investments to protect our customers and communities from the threats of extreme weather.
Bob Frenzel: Across SPP and MISO in 2025 and 2026, Xcel Energy has been awarded over 760mi of new 765kV transmission lines. This includes a second 765kV line in SPP that was awarded this week, which gives us line of sight to $1.5 billion in additional investment over our base 5-year plan. These will be the first voltage lines of this class in SPP and constitute 20% of the approved new ultra-high voltage transmission in this country, recognizing Xcel Energy's expertise in building and operating transmission networks. We also reached several milestones as we continue to make investments to protect our customers and communities from the threats of extreme weather.
Speaker #3: 26, XCEL ENERGY has been awarded over Across $760 miles of new, $765 kV transmission lines. This includes a second 765 kV line in SPP that was awarded this week which gives us line of sight to a billion and a half dollars in additional investment over our base five-year plan.
Speaker #3: These will be the first voltage lines of constitute 20 percent of the approved new ultra-high voltage transmission in this country. Recognizing this class in SPP and XCEL ENERGY's expertise in building and operating transmission networks.
Speaker #3: We also reached several milestones as we continue to make investments to protect our customers and communities from the threats of extreme weather. In 2025, we rapidly accelerated system investments, including completing eight times as many pole inspections in 25 percent more pole replacements than the previous year.
Bob Frenzel: In 2025, we rapidly accelerated system investments, including completing eight times as many pole inspections and 25% more pole replacements than the previous year. We installed over 250 Pano AI cameras and weather stations. In 2025, we received approvals from both Colorado and Texas Commissions for our wildfire mitigation and system resiliency plans, as well as published wildfire mitigation plans in each of our other states. Favorable wildfire legislation passed into law in Texas and North Dakota, and we're working on similar frameworks in other states. We continue to improve and refine operational measures to protect our communities, including daily wildfire risk monitoring, proactive customer communications, wildfire safety operations, and, in very rare circumstances, public safety power shutoff capability. Our investments are paying off.
Bob Frenzel: In 2025, we rapidly accelerated system investments, including completing eight times as many pole inspections and 25% more pole replacements than the previous year. We installed over 250 Pano AI cameras and weather stations. In 2025, we received approvals from both Colorado and Texas Commissions for our wildfire mitigation and system resiliency plans, as well as published wildfire mitigation plans in each of our other states. Favorable wildfire legislation passed into law in Texas and North Dakota, and we're working on similar frameworks in other states. We continue to improve and refine operational measures to protect our communities, including daily wildfire risk monitoring, proactive customer communications, wildfire safety operations, and, in very rare circumstances, public safety power shutoff capability. Our investments are paying off.
Speaker #3: And we installed over 250 pano AI cameras and weather we received approvals from both Colorado and stations. In 2025, Texas commissions for our wildfire mitigation and system resiliency plans as well as published wildfire mitigation plans in each of our other states.
Speaker #3: Favorable wildfire legislation passed into law in Texas and North Dakota, and we're working on similar frameworks in other states. And we continue to improve and refine operational measures to protect our communities including daily wildfire risk monitoring.
Speaker #3: Proactive customer communications. Wildfire safety operations and in very rare circumstances, public safety power shutoff paying off. During winter storm fur in this January, our electric and natural gas operations across NSP, PESCO, and SPS performed exceptionally well.
Bob Frenzel: During Winter Storm Fern this January, our electric and natural gas operations across NSP, PSCo, and SPS performed exceptionally well. Thanks to rigorous winter readiness, proactive fuel management, and strong coordination across our operations teams, we reliably served customers through periods of high demand, strained gas supply, and challenging weather. And we were able to export our generation length when the system needed us most, providing grid stability and incremental customer benefits. Our operators and field crews executed cold weather procedures flawlessly. We maintained system reliability and managed costs responsibly despite record-setting conditions. While I'm very excited about our achievements in 2025, I want to turn to our strong start to 2026. Today, we are advancing our data center pipeline with a new recently signed ESA with a large data center in the upper Midwest.
Bob Frenzel: During Winter Storm Fern this January, our electric and natural gas operations across NSP, PSCo, and SPS performed exceptionally well. Thanks to rigorous winter readiness, proactive fuel management, and strong coordination across our operations teams, we reliably served customers through periods of high demand, strained gas supply, and challenging weather. And we were able to export our generation length when the system needed us most, providing grid stability and incremental customer benefits. Our operators and field crews executed cold weather procedures flawlessly. We maintained system reliability and managed costs responsibly despite record-setting conditions. While I'm very excited about our achievements in 2025, I want to turn to our strong start to 2026. Today, we are advancing our data center pipeline with a new recently signed ESA with a large data center in the upper Midwest.
Speaker #3: Readiness, proactive fuel—thanks to rigorous winter management and strong coordination across our capability operations teams, we reliably served customers through periods of high demand, constrained gas supply, and challenging weather. And our investments are
Speaker #3: And we were able to export our generation length when the system needed us most, providing grid stability and incremental customer benefits. Our operators and field crews executed cold weather procedures flawlessly.
Speaker #3: We maintained system reliability and managed cost responsibly despite record-setting conditions. While I'm very excited about our achievements in 2025, I want to turn to our strong start to 2026.
Speaker #3: Today, we are advancing our data center pipeline with a new, recently signed ESA with a large data center in the Upper Midwest. This brings XCEL ENERGY to over 2 gigawatts of new contracted data center capacity.
Bob Frenzel: This brings Xcel Energy to over 2 gigawatts of new contracted data center capacity. Our goal for 2026 is another 1 gigawatt, bringing our total to 3 gigawatts of contracted data center service by the end of 2026. And while we had length in the upper Midwest this winter and forecast so through the end of the decade, we also know that it's critical that we have the right resources to develop new generation infrastructure to deliver on the opportunities in our 20+ gigawatt large load pipeline. So earlier this week, Xcel Energy announced an MOU with longtime partner, NextEra Energy, to co-develop generation, storage, and interconnections to serve data center projects across our operating companies.
Bob Frenzel: This brings Xcel Energy to over 2 gigawatts of new contracted data center capacity. Our goal for 2026 is another 1 gigawatt, bringing our total to 3 gigawatts of contracted data center service by the end of 2026. And while we had length in the upper Midwest this winter and forecast so through the end of the decade, we also know that it's critical that we have the right resources to develop new generation infrastructure to deliver on the opportunities in our 20+ gigawatt large load pipeline. So earlier this week, Xcel Energy announced an MOU with longtime partner, NextEra Energy, to co-develop generation, storage, and interconnections to serve data center projects across our operating companies.
Speaker #3: for '26 is another 1 Our goal gigawatt, bringing our total to 3 gigawatts of contracted data center service by the end of 2026. And while we had length in the Upper Midwest this winter and forecast so through the end of the decade, we also know that it's develop new generation infrastructure to deliver on the opportunities in our 20-plus gigawatt large load pipeline.
Speaker #3: So earlier this week, XCEL ENERGY announced an MOU with longtime partner NextEra ENERGY to co-develop generation, storage, and interconnections to serve data center projects across our operating companies.
Speaker #3: By engaging early with leading developers like NextEra, we can better anticipate system needs for new data centers. Streamline development timelines, advance innovative grid technologies, and continue to provide the network benefits that data centers bring to all of our customers.
Bob Frenzel: By engaging early with leading developers like NextEra, we can better anticipate system needs for new data centers, streamline development timelines, advance innovative grid technologies, and continue to provide the network benefits that data centers bring to all of our customers. With this agreement, we now expect to have 6 gigawatts of total data center capacity contracted by the end of 2027, with electricity sales and generation investment that will ramp into the 2030s. We will deliver the benefits of 2 of the best development teams in the industry to meet this moment for our country and our customers. As we've talked about over the past 2 to 3 years, execution against our capital and growth plans are critical to our stakeholders. We believe that our scale and our diversity are assets that we can deliver to the benefit of our customers and our regions.
Bob Frenzel: By engaging early with leading developers like NextEra, we can better anticipate system needs for new data centers, streamline development timelines, advance innovative grid technologies, and continue to provide the network benefits that data centers bring to all of our customers. With this agreement, we now expect to have 6 gigawatts of total data center capacity contracted by the end of 2027, with electricity sales and generation investment that will ramp into the 2030s. We will deliver the benefits of 2 of the best development teams in the industry to meet this moment for our country and our customers. As we've talked about over the past 2 to 3 years, execution against our capital and growth plans are critical to our stakeholders. We believe that our scale and our diversity are assets that we can deliver to the benefit of our customers and our regions.
Speaker #3: With this agreement, we now expect to have 6 gigawatts of total data center capacity contracted by the end of 2027. With electricity sales the 2030s.
Speaker #3: We will deliver the benefits of two of the best development teams in the industry to meet this moment for our country and our customers.
Speaker #3: And as we've talked about over the past two to three years, execution against our capital and growth plans is critical to our stakeholders. We believe that our scale and our diversity are assets that we can deliver to the benefit of our customers and our regions.
Speaker #3: We have strategic agreements in place with multiple Tier 1 EPC firms across our portfolio of renewable natural gas generation projects, as well as transmission distribution and natural gas systems.
Bob Frenzel: We have strategic agreements in place with multiple tier one EPC firms across our portfolio of renewable and natural gas generation projects, as well as transmission, distribution, and natural gas systems. And earlier this week, we announced a landmark strategic alliance with GE Vernova to support our growing portfolio of wind and natural gas generation, transmission, distribution, and technology projects into the 2030s. This partnership will focus on delivering key benefits to Xcel Energy's customers and stakeholders through enhanced certainty of supply, operational flexibility, and cost affordability. Key to the partnership is a mutual commitment to innovation and strategic collaboration. We will work together to explore advancements in areas such as artificial intelligence, grid modernization, and joint research and development programs. As a first step, Xcel Energy is purchasing 5 additional natural gas turbines from GE Vernova, bringing our total to 24 gas CTs on order across our vendors.
Bob Frenzel: We have strategic agreements in place with multiple tier one EPC firms across our portfolio of renewable and natural gas generation projects, as well as transmission, distribution, and natural gas systems. And earlier this week, we announced a landmark strategic alliance with GE Vernova to support our growing portfolio of wind and natural gas generation, transmission, distribution, and technology projects into the 2030s. This partnership will focus on delivering key benefits to Xcel Energy's customers and stakeholders through enhanced certainty of supply, operational flexibility, and cost affordability. Key to the partnership is a mutual commitment to innovation and strategic collaboration. We will work together to explore advancements in areas such as artificial intelligence, grid modernization, and joint research and development programs. As a first step, Xcel Energy is purchasing 5 additional natural gas turbines from GE Vernova, bringing our total to 24 gas CTs on order across our vendors.
Speaker #3: And earlier this week, we announced a landmark strategic alliance with GE Vernova, to support our growing portfolio of wind and natural gas generation. Transmission, distribution, and technology projects into the partnership will focus on delivering key benefits to XCEL ENERGY's customers and stakeholders, through enhanced certainty of supply, operational flexibility, and cost affordability.
Speaker #3: Key to the partnership is a mutual commitment to innovation and strategic collaboration. We will work together to explore advancements in areas such as artificial intelligence, grid modernization, and joint research and development is purchasing five additional natural programs.
Speaker #3: gas turbines from GE Vernova, As a first step, XCEL ENERGY bringing our total to 24 gas CTs on order across our Additionally, we're integrating GE Vernova into our renewable energy pipeline, bidding several gigawatts of wind projects with GEV turbines in our pending and upcoming RFPs.
Bob Frenzel: Additionally, we're integrating GE Vernova into our renewable energy pipeline, bidding several GW of wind projects with GEV turbines in our pending and upcoming RFPs. Combined with agreements with other equipment, engineering, and construction firms, Xcel Energy has built scalable, resilient, and flexible engine to ensure delivery of critical system investments. This engine has also enabled us to safe harbor equipment for approximately 20 GW of renewable generation storage, preserving a significant volume of production and investment tax credits for the benefits of our customers. Finally, Xcel Energy's commitment is about much more than energy. The heart of what drives our people is a deep compassion, connection, and commitment to the communities that we serve. That's because these communities are not just customers who receive our energy, it's because our people live in the same neighborhoods, our children attend the same schools, and we attend the same community events.
Bob Frenzel: Additionally, we're integrating GE Vernova into our renewable energy pipeline, bidding several GW of wind projects with GEV turbines in our pending and upcoming RFPs. Combined with agreements with other equipment, engineering, and construction firms, Xcel Energy has built scalable, resilient, and flexible engine to ensure delivery of critical system investments. This engine has also enabled us to safe harbor equipment for approximately 20 GW of renewable generation storage, preserving a significant volume of production and investment tax credits for the benefits of our customers. Finally, Xcel Energy's commitment is about much more than energy. The heart of what drives our people is a deep compassion, connection, and commitment to the communities that we serve. That's because these communities are not just customers who receive our energy, it's because our people live in the same neighborhoods, our children attend the same schools, and we attend the same community events.
Speaker #3: Combined with agreements with other equipment, engineering construction firms, XCEL ENERGY has built vendors. scalable, resilient, and flexible engine to ensure delivery of critical system investments.
Speaker #3: This engine is also enabled to safe harbor equipment for approximately 20 gigawatts of renewable generation storage, preserving a significant volume of production and investment tax credits for the benefit of our customers.
Speaker #3: Finally, Xcel Energy's commitment is about much more than drives our people; it is a deep compassion, connection, and commitment to the communities that we serve.
Speaker #3: That's because these communities are not just customers who receive our energy; it's because our people live in the same neighborhoods, our children attend the same schools, and we attend the same community events.
Speaker #3: And so it goes without saying that the tragic events across the Twin Cities have weighed heavily on our employees. We've engaged extensively and proactively with senior, federal, communities, our customers, and identify a sustainable path forward.
Bob Frenzel: So it goes without saying that the tragic events across the Twin Cities have weighed heavily on our communities, our customers, and our employees. We've engaged extensively and proactively with senior, federal, state, local, and community officials with a goal to de-escalate and identify a sustainable path forward. I was pleased to sign on to the letter with 60 other Minnesota companies urging for a solution. Alongside other peer companies in the Twin Cities, the Xcel Energy Foundation has committed to help fund the Minneapolis Foundation to support local and small businesses impacted by recent events. I know that our Xcel Energy community will continue to do what we do best, making energy work better for our customers, while supporting our teammates and caring for our neighbors.
Bob Frenzel: So it goes without saying that the tragic events across the Twin Cities have weighed heavily on our communities, our customers, and our employees. We've engaged extensively and proactively with senior, federal, state, local, and community officials with a goal to de-escalate and identify a sustainable path forward. I was pleased to sign on to the letter with 60 other Minnesota companies urging for a solution. Alongside other peer companies in the Twin Cities, the Xcel Energy Foundation has committed to help fund the Minneapolis Foundation to support local and small businesses impacted by recent events. I know that our Xcel Energy community will continue to do what we do best, making energy work better for our customers, while supporting our teammates and caring for our neighbors.
Speaker #3: I was pleased to sign on to the letter with 60 other Minnesota companies urging for a solution. And alongside other peer companies in the Twin Cities, the XCEL ENERGY Foundation has committed to help fund the Minneapolis Foundation to support local and small businesses impacted by recent events.
Speaker #3: our XCEL ENERGY community will continue to do what we do best: making energy work better for our customers while I know that supporting our teammates and caring for our neighbors.
Speaker #3: Looking at the broader community engagement in 2025, XCEL ENERGY initiated 15 economic development projects for our local communities, which are projected to create more than $7 billion in capital investment and nearly $1,400 jobs.
Bob Frenzel: Looking at the broader community engagement in 2025, Xcel Energy initiated 15 economic development projects for our local communities, which are projected to create more than $7 billion in capital investment and nearly 1,400 jobs. Additionally, nearly 53% of our supply chain spend was local, and we spent nearly $1 billion with small and diverse suppliers. Xcel Energy employees, contractors, and retirees, supported by the company's foundation, provided over $14 million and over 60,000 volunteer hours to support over 400 local charitable organizations and causes in 2025. And for the 12th year, Xcel Energy was honored as one of the world's most admired companies by Fortune Magazine. We ranked first in social responsibility and placed fourth among the most admired electric and natural gas companies in the country.
Bob Frenzel: Looking at the broader community engagement in 2025, Xcel Energy initiated 15 economic development projects for our local communities, which are projected to create more than $7 billion in capital investment and nearly 1,400 jobs. Additionally, nearly 53% of our supply chain spend was local, and we spent nearly $1 billion with small and diverse suppliers. Xcel Energy employees, contractors, and retirees, supported by the company's foundation, provided over $14 million and over 60,000 volunteer hours to support over 400 local charitable organizations and causes in 2025. And for the 12th year, Xcel Energy was honored as one of the world's most admired companies by Fortune Magazine. We ranked first in social responsibility and placed fourth among the most admired electric and natural gas companies in the country.
Speaker #3: Additionally, nearly 53% of our supply chain spend was local, and we spent nearly $1 billion with small and diverse suppliers. XCEL ENERGY employees, contractors, and retirees supported by the company's foundation provided over $14 60,000 volunteer hours to support over 400 local, charitable organizations and causes in 2025.
Speaker #3: And for the 12th year, XCEL ENERGY was honored as one of the world's most admired companies by Fortune Magazine. first in social responsibility and placed We ranked fourth among the most admired electric and natural gas companies in the country.
Bob Frenzel: I continue to be thankful and grateful for each of our employees and partners who shared their time, resources, and talents this year to make energy work better. With that, I'll turn it over to Brian.
Bob Frenzel: I continue to be thankful and grateful for each of our employees and partners who shared their time, resources, and talents this year to make energy work better. With that, I'll turn it over to Brian.
Speaker #3: be thankful and grateful for each of our I continue to employees and partners who shared their time, resources, and talents this year to make energy work better.
Speaker #3: Brian.
Speaker #2: Thanks, Bob, and good morning, everyone. Starting with our financial results,
Brian Van Abel: Thanks, Bob, and good morning, everyone. Starting with our financial results, Xcel Energy reported ongoing earnings of $3.80 per share for full year 2025, compared to ongoing earnings of $3.50 per share in 2024. The most significant earnings drivers for the year include the following: Higher electric and natural gas revenues due to rate case outcomes, non-fuel riders, and sales growth, partially offset by higher fuel and purchased power expenses, increased earnings by $1.21 per share, and higher AFUDC increased earnings by $0.27 per share. Offsetting these positive drivers, higher interest charges and common equity financing decreased earnings by $0.46 per share, reflecting funding of our infrastructure investments and financial discipline to maintain a strong balance sheet. Higher depreciation and amortization decreased earnings by $0.28 per share, reflecting our capital investment programs.
Brian Van Abel: Thanks, Bob, and good morning, everyone. Starting with our financial results, Xcel Energy reported ongoing earnings of $3.80 per share for full year 2025, compared to ongoing earnings of $3.50 per share in 2024. The most significant earnings drivers for the year include the following: Higher electric and natural gas revenues due to rate case outcomes, non-fuel riders, and sales growth, partially offset by higher fuel and purchased power expenses, increased earnings by $1.21 per share, and higher AFUDC increased earnings by $0.27 per share. Offsetting these positive drivers, higher interest charges and common equity financing decreased earnings by $0.46 per share, reflecting funding of our infrastructure investments and financial discipline to maintain a strong balance sheet. Higher depreciation and amortization decreased earnings by $0.28 per share, reflecting our capital investment programs.
Speaker #2: XCEL ENERGY reported ongoing earnings With that, I'll turn it over to year 2025, of $3.80 per share for full compared to ongoing earnings of $3.50 per share in 2024.
Speaker #2: earnings drivers for the year include the The most significant following: higher electric and natural gas revenues due to rate case outcomes, non-fuel riders, and sales growth, partially offset by higher fuel and purchased power expenses, increased earnings by $1.21 per share.
Speaker #2: And higher AFUDC increased earnings by $0.27 per share. Offsetting these positive drivers, higher interest charges and common equity financing decreased earnings by $0.46 per share, reflecting funding of our infrastructure investments and financial sheet.
Speaker #2: Higher depreciation and discipline to maintain a strong balance $0.28 per share, reflecting our capital investment programs. Higher O&M expenses decreased earnings by $0.25 per share, and other items combined to decrease earnings by $0.19 per share.
Brian Van Abel: Higher O&M expenses decreased earnings by 25 cents per share, and other items combined to decrease earnings by 19 cents per share. Turning to sales, full-year weather-adjusted electric sales increased by 2.2%, driven by increased C&I load and SPS in PSCo. For 2026, we continue to expect full-year weather-adjusted electric sales to increase 3%. Shifting to expenses, O&M expenses increased $190 million in 2025. Increases are primarily due to accelerated wildfire mitigation costs in Colorado, excess liability insurance costs, and higher benefit costs in late Q3 and Q4 2025, and increased costs from generation maintenance. Moving to regulatory activity. During the fourth quarter, in Colorado, we filed both electric and natural gas rate cases. We anticipate commission decisions on each and implementation of new rates by the end of Q3 2026.
Brian Van Abel: Higher O&M expenses decreased earnings by 25 cents per share, and other items combined to decrease earnings by 19 cents per share. Turning to sales, full-year weather-adjusted electric sales increased by 2.2%, driven by increased C&I load and SPS in PSCo. For 2026, we continue to expect full-year weather-adjusted electric sales to increase 3%. Shifting to expenses, O&M expenses increased $190 million in 2025. Increases are primarily due to accelerated wildfire mitigation costs in Colorado, excess liability insurance costs, and higher benefit costs in late Q3 and Q4 2025, and increased costs from generation maintenance. Moving to regulatory activity. During the fourth quarter, in Colorado, we filed both electric and natural gas rate cases. We anticipate commission decisions on each and implementation of new rates by the end of Q3 2026.
Speaker #2: Turning to sales, full-year weather-adjusted electric sales increased by 2.2%, driven by increased C&I load and SPS in we continued to expect full-year weather-adjusted electric sales to increase Piesco.
Speaker #2: 3%. Shifting to expenses, O&M expenses increased $190 million in 2025, increases our primarily due to accelerated For 2026, wildfire mitigation costs in Colorado, excess liability insurance costs, and a higher benefit costs in late third and fourth quarter 2025, and increased costs from generation maintenance.
Speaker #2: Moving to regulatory activity, during the fourth quarter, in Colorado, we filed both electric and natural gas rate cases. We anticipate commission decisions on each in the implementation of new rates by the end of Q3 Mexico electric rate case and anticipate a commission decision in the second half of 2026.
Brian Van Abel: In November, we filed a New Mexico electric rate case and anticipate a commission decision in the second half of 2026. In Wisconsin, we received final approval for our electric and natural gas rate case and implemented new rates in January. As we look to additional investments to our base capital plan, Xcel Energy has 10 to 12+ GW of additional generation RFPs and transmission opportunities in SPP and MISO. These investments align with our approved resource plans and are critical to ensure we have the energy we need to serve our customers, retire legacy generation, and ensure reliability. These RFPs also help capture expiring production and investment tax credits, which will help keep customer bills low. For the recommended portfolio in Colorado near-term solicitation, we are now expecting the commission to review these resources in multiple tranches through early 2026.
Brian Van Abel: In November, we filed a New Mexico electric rate case and anticipate a commission decision in the second half of 2026. In Wisconsin, we received final approval for our electric and natural gas rate case and implemented new rates in January. As we look to additional investments to our base capital plan, Xcel Energy has 10 to 12+ GW of additional generation RFPs and transmission opportunities in SPP and MISO. These investments align with our approved resource plans and are critical to ensure we have the energy we need to serve our customers, retire legacy generation, and ensure reliability. These RFPs also help capture expiring production and investment tax credits, which will help keep customer bills low. For the recommended portfolio in Colorado near-term solicitation, we are now expecting the commission to review these resources in multiple tranches through early 2026.
Speaker #2: 2026. And in Wisconsin, we received final approval for In November, we filed a New our electric and natural gas rate case and implemented new rates in January.
Speaker #2: As we look to additional investments to our ENERGY has 10 to 12-plus gigawatts of additional generation RFPs and transmission opportunities in SPP and MISO.
Speaker #2: These investments align with our approved resource plans and are critical to ensure we have the energy we need to serve our customers, retire legacy generation, and ensure reliability.
Speaker #2: These RFPs also help capture expiring production and investment tax credits, which will help keep low. For the recommended portfolio in Colorado near-term solicitation, we are now expecting the commission to review these resources in multiple tranches through early 2026.
Speaker #2: Additional needs under our approved IRP will be subject to RFPs later this year. In December, we issued an RFP in NSP for 4,100 megawatts of renewable generation and storage to be placed in service by 2030.
Brian Van Abel: Additional needs under our approved IRP will be subject to RFPs later this year. In December, we issued an RFP in NSP for 4,100 megawatts of renewable generation and storage to be placed in service by 2030. Bids are due in March, and we expect a recommendation filing later this year. In October, we issued an RFP in SPS for 1,500 to 3,000 megawatts of additional nameplate generation. Bids were received in January, and we expect a report from the independent monitor in late Q2 2026. And finally, as Bob mentioned... In SPP, we were awarded another 765 kV transmission line, which gives line of sight to $1.5 billion of additional investment over our base five-year plan. We also continue to make strong progress on the Smokehouse Creek wildfire claims process.
Brian Van Abel: Additional needs under our approved IRP will be subject to RFPs later this year. In December, we issued an RFP in NSP for 4,100 megawatts of renewable generation and storage to be placed in service by 2030. Bids are due in March, and we expect a recommendation filing later this year. In October, we issued an RFP in SPS for 1,500 to 3,000 megawatts of additional nameplate generation. Bids were received in January, and we expect a report from the independent monitor in late Q2 2026. And finally, as Bob mentioned... In SPP, we were awarded another 765 kV transmission line, which gives line of sight to $1.5 billion of additional investment over our base five-year plan. We also continue to make strong progress on the Smokehouse Creek wildfire claims process.
Speaker #2: Bids are due in March, and we expect a recommendation filing later this year. In October, we issued an RFP in SPS for 1,500 to 3,000 megawatts of additional nameplate generation.
Speaker #2: Bids were received in January, and we expect a report from the Independent Monitor in late Q2 2026. And finally, as Bob mentioned, an SPP we were awarded another $765 kV transmission line which gives line-of-sight to 1.5 billion of additional investment over our base five-year plan.
Speaker #2: We also continue to make strong progress on the Smokehouse Creek wildfire claims process. We've resolved 222 of the 287 submitted claims, we've reached settlements with 79 of the 83 potential claims presented for mediation by parties represented by attorneys, and finally, 22 of 47 complaints have been settled or dismissed.
Brian Van Abel: We resolved 222 of the 287 submitted claims. We've reached settlements with 79 of the 83 potential claims presented for mediation by parties represented by attorneys. And finally, 22 of 47 complaints have been settled or dismissed. We have updated the low end of our estimated liability to $430 million. We have committed $382 million in settlement agreements, including agreements with the subrogated insurer plaintiffs and the three largest claims by acreage. As a reminder, we have approximately $500 million of insurance coverage. Regarding the Marshall Wildfire settlement, final settlement agreements have been executed with the subrogation insurers and nearly all individual plaintiffs. Xcel Energy is aware of three individual plaintiffs out of 4,000+, who have not yet accepted a settlement or otherwise stopped prosecuting their claims.
Brian Van Abel: We resolved 222 of the 287 submitted claims. We've reached settlements with 79 of the 83 potential claims presented for mediation by parties represented by attorneys. And finally, 22 of 47 complaints have been settled or dismissed. We have updated the low end of our estimated liability to $430 million. We have committed $382 million in settlement agreements, including agreements with the subrogated insurer plaintiffs and the three largest claims by acreage. As a reminder, we have approximately $500 million of insurance coverage. Regarding the Marshall Wildfire settlement, final settlement agreements have been executed with the subrogation insurers and nearly all individual plaintiffs. Xcel Energy is aware of three individual plaintiffs out of 4,000+, who have not yet accepted a settlement or otherwise stopped prosecuting their claims.
Speaker #2: We have updated the low end of our estimated liability to $430 million. We have committed $382 million in settlement agreements, including agreements with the subrogated insurer plaintiffs and the three largest claims by acreage.
Speaker #2: we have approximately $500 million of insurance coverage. Regarding the Marshall wildfire As a reminder, settlement, final settlement agreements have been executed with the subrogation insurers in nearly all individual plaintiffs.
Speaker #2: 4,000-plus, who have not yet accepted a settlement or otherwise stopped prosecuting their XCEL ENERGY is aware of three individual plaintiffs, out of claims. Moving to guidance, we are reaffirming our 2026 EPS guidance range of $4.16.
Brian Van Abel: Moving to guidance, we are reaffirming our 2026 EPS guidance range of $4.04 to $4.16. We remain confident in our ability to deliver 6 to 8+% long-term earnings growth and expect to deliver 9% EPS growth on average through 2030. Updates to key assumptions are included in our slides and earnings release. With that, I'll wrap up with a quick summary. Xcel Energy posted strong ongoing 2025 earnings of $3.80 per share, meeting or exceeding ongoing guidance for the 21st consecutive year. We continue to lead the clean energy transition while ensuring safe, clean, and reliable service and keeping customer bills as low as possible.
Brian Van Abel: Moving to guidance, we are reaffirming our 2026 EPS guidance range of $4.04 to $4.16. We remain confident in our ability to deliver 6 to 8+% long-term earnings growth and expect to deliver 9% EPS growth on average through 2030. Updates to key assumptions are included in our slides and earnings release. With that, I'll wrap up with a quick summary. Xcel Energy posted strong ongoing 2025 earnings of $3.80 per share, meeting or exceeding ongoing guidance for the 21st consecutive year. We continue to lead the clean energy transition while ensuring safe, clean, and reliable service and keeping customer bills as low as possible.
Speaker #2: We remain 8-plus percent long-term $4.04 to earnings growth and expect to deliver confident in our ability to deliver 6 to 9% EPS 2030. Updates to key assumptions are included in our slides and growth on average through earnings release.
Speaker #2: With that, I'll wrap up with a quick summary. XCEL ENERGY posted strong ongoing 2025 earnings of $3.80 per share, meeting or exceeding ongoing guidance for the 21st consecutive year.
Speaker #2: We continue to lead a clean energy transition while ensuring safe, clean, and reliable service and keeping customer bills as low as continue to make progress to realize our possible.
Brian Van Abel: We continue to make progress to realize our $10+ billion pipeline of additional investment opportunities, including a new 765 kV awarded in SPP this week. We've announced two strategic alliances with industry-leading development and supply chain partners to ensure we have the resources, technology, and capacity to deliver on our capital plan. We now have signed ESAs for over 2 gigawatts of data centers and remain on track to contract 3 gigawatts total by the end of 2026. In addition, we have updated our plan to contract 6 gigawatts of total data center capacity by the end of 2027. We continue to maintain a strong balance sheet and credit metrics, using a balance of debt and equity to fund accretive growth. We are reaffirming our 2026 EPS guidance of $4.04 to $4.16 per share.
Brian Van Abel: We continue to make progress to realize our $10+ billion pipeline of additional investment opportunities, including a new 765 kV awarded in SPP this week. We've announced two strategic alliances with industry-leading development and supply chain partners to ensure we have the resources, technology, and capacity to deliver on our capital plan. We now have signed ESAs for over 2 gigawatts of data centers and remain on track to contract 3 gigawatts total by the end of 2026. In addition, we have updated our plan to contract 6 gigawatts of total data center capacity by the end of 2027. We continue to maintain a strong balance sheet and credit metrics, using a balance of debt and equity to fund accretive growth. We are reaffirming our 2026 EPS guidance of $4.04 to $4.16 per share.
Speaker #2: 10-plus billion-dollar pipeline of additional investment opportunities including a new We $765 kV awarded in SPP this week. We've announced two strategic alliances with industry-leading development and supply chain partners to ensure we have the resources, technology, and capacity to deliver on our capital gigawatts of data centers and remain on track to contract 3 gigawatts total by the end of 2026.
Speaker #2: Contract 6 gigawatts of total data center capacity by the end of 2027. In addition, we have updated our plan to maintain a strong balance sheet and credit metrics, using a balance of debt and equity to fund accretive growth. We are reaffirming our 2026 EPS guidance of $4.04 to $4.16 per share, and finally, we remain confident in our ability to deliver 6% to 8% long-term earnings growth and expect to deliver 9% EPS growth on average through 2030.
Brian Van Abel: And finally, we remain confident in our ability to deliver 6 to 8+% long-term earnings growth and expect to deliver 9% EPS growth on average through 2030. This concludes our prepared remarks. Operator, we will now take questions.
Brian Van Abel: And finally, we remain confident in our ability to deliver 6 to 8+% long-term earnings growth and expect to deliver 9% EPS growth on average through 2030. This concludes our prepared remarks. Operator, we will now take questions.
Speaker #2: This concludes our prepared remarks. Operator, we will now take ask a question, press star 1 on your telephone questions. keypad. Your first question comes from the line of As a reminder, in order to Dumoulin-Smith.
Operator: As a reminder, in order to ask a question, press star one on your telephone keypad. Your first question comes from the line of Julien Dumoulin-Smith. Your line is live.
Operator: As a reminder, in order to ask a question, press star one on your telephone keypad. Your first question comes from the line of Julien Dumoulin-Smith. Your line is live.
Speaker #2: Your line is live. Julian
Speaker #3: Hi, good morning. It's Brian Roussillon for Julian.
Brian Roussel: Hi, good morning. It's Brian Roussel on for Julien.
Brian Russo: Hi, good morning. It's Brian Roussel on for Julien.
Speaker #4: Hey, good morning.
Brian Van Abel: Hey, good morning.
Brian Van Abel: Hey, good morning.
Speaker #3: Hey, just I want to just understand more clearly what the upcoming filings in Colorado for the JTS and how that ties into the large tariff filing.
Brian Roussel: Hey, just, I want to just understand more clearly what the upcoming filings in Colorado for the QTS and how that ties into the large tariff filing. Should we expect, as you sign customers to the large tariff, you'll then submit the capacity need to the commission and issue an independent RFP for, like, each? Or will you, you know, I don't know, group them together to, you know, to make the process more efficient? And then how does it tie into that 6 gigawatt target by 2027?
Brian Russo: Hey, just, I want to just understand more clearly what the upcoming filings in Colorado for the QTS and how that ties into the large tariff filing. Should we expect, as you sign customers to the large tariff, you'll then submit the capacity need to the commission and issue an independent RFP for, like, each? Or will you, you know, I don't know, group them together to, you know, to make the process more efficient? And then how does it tie into that 6 gigawatt target by 2027?
Speaker #3: Should we expect as you sign customers to the large tariff, you'll then submit the capacity need to the commission and issue an independent RFP for each? Or will you, I don't know, group them together more efficiently?
Speaker #3: And then how does it tie into that 6 gigawatt target by to make the process 2027?
Speaker #4: Yeah, hey, I can start with that answer. And if I didn't answer, all the pieces of that question just feel free to chime in.
Brian Van Abel: Yeah, it'll. Hey, I can start with that, that answer. And, and if I didn't answer all, all the pieces of that question, just, feel free to chime in. As we think about it, we're aiming to file that large load tariff in Colorado, early in Q2, and work through that regulatory proceeding in Colorado. And once we have that kind of large load tariff and that construct, we'll seek to bring forward large loads within that framework, along with likely a package of generation to serve that large load, right? Really focused on driving customer benefit for all of our current customers. So that's really the timing in terms of getting the large load tariff filing in Colorado. The kind of 6GW, right, we doubled our data center expected contracted capacity from 3GW to 6GW.
Brian Van Abel: Yeah, it'll. Hey, I can start with that, that answer. And, and if I didn't answer all, all the pieces of that question, just, feel free to chime in. As we think about it, we're aiming to file that large load tariff in Colorado, early in Q2, and work through that regulatory proceeding in Colorado. And once we have that kind of large load tariff and that construct, we'll seek to bring forward large loads within that framework, along with likely a package of generation to serve that large load, right? Really focused on driving customer benefit for all of our current customers. So that's really the timing in terms of getting the large load tariff filing in Colorado. The kind of 6GW, right, we doubled our data center expected contracted capacity from 3GW to 6GW.
Speaker #4: As we think about it, we're aiming to file that large load tariff in Colorado early in Q2. And we're through that regulatory proceeding in Colorado.
Speaker #4: And once we have that kind of large load tariff and that construct, with likely a package of generation to loads within that framework along serve that large load, right, really focused on driving customer benefit for all we'll seek to bring forward large of our current customers.
Speaker #4: So that's really the timing in terms of getting the large load tariff filing in Colorado. The kind of 6 gigawatts, right? We doubled our data center expected contracted capacity from 3 gigawatts to 6 gigawatts.
Speaker #4: That 6 gigawatts is contemplated across our system right now. You saw the one we just signed is focused on upper Midwest, and I think that's our focus on the upper opportunities that we're working through.
Brian Van Abel: That 6GW is contemplated across our system right now. You saw the one we just signed is focused on Upper Midwest, and I think that's our focus on the Upper Midwest right now. We have some really good opportunities that we're working through. And as we work through the large load tariff filing, not only in Colorado, but Texas, and New Mexico, we'll seek for opportunities there, too.
Brian Van Abel: That 6GW is contemplated across our system right now. You saw the one we just signed is focused on Upper Midwest, and I think that's our focus on the Upper Midwest right now. We have some really good opportunities that we're working through. And as we work through the large load tariff filing, not only in Colorado, but Texas, and New Mexico, we'll seek for opportunities there, too.
Speaker #4: And as we work through the large load tariff filing, not only in Colorado but Texas, New Mexico, we'll seek for
Speaker #4: too.
Brian Roussel: Okay, great. And then just to follow on that, the $10 billion CapEx pipeline, right? That it only includes kind of that low end of the 5,000 to 14,000-gigawatt range of potential capacity, data center-driven needs in Colorado, right? So there's notable upside even at the $10 billion.
Brian Russo: Okay, great. And then just to follow on that, the $10 billion CapEx pipeline, right? That it only includes kind of that low end of the 5,000 to 14,000-gigawatt range of potential capacity, data center-driven needs in Colorado, right? So there's notable upside even at the $10 billion.
Speaker #3: great. And then just to follow on Okay, that, the 10 billion CapEx pipeline, right, that only 5,000 to 14,000 gigawatts. Of range of potential capacity data center-driven needs in Colorado, right?
Speaker #3: there's notable upside So includes kind of that low end of the
Speaker #4: Yes, that's absolutely a fair characterization as we think about Midwest right now. it. And really that kind of that low end didn't include a significant data center growth in Colorado.
Brian Van Abel: Yes, that's absolutely a fair characterization as we think about it. And really that kind of, that low end didn't include a significant data center growth in Colorado. So as we look at data center opportunities there after the large Meta filing, it would include additional generation to serve those resources.
Brian Van Abel: Yes, that's absolutely a fair characterization as we think about it. And really that kind of, that low end didn't include a significant data center growth in Colorado. So as we look at data center opportunities there after the large Meta filing, it would include additional generation to serve those resources.
Speaker #4: we look to look So as at data center opportunities there after the large load tariff filing, it would include We have some really good resources.
Speaker #3: All
Speaker #3: right, great. Thank you very additional generation to serve those much.
Carly Davenport: All right, great. Thank you very much.
Brian Russo: All right, great. Thank you very much.
Speaker #2: Your next question comes from the line of Jeremy Tonnette from JP Morgan. Your line is live.
Operator: Your next question comes from the line of Jeremy Tonet from JP Morgan. Your line is live.
Operator: Your next question comes from the line of Jeremy Tonet from JP Morgan. Your line is live.
Speaker #5: Hey, good morning. This is Jeremy. So hi, good morning. So my question Diana Niles on for coming online and the coming years,
Diana Niles: Hey, good morning. This is Diana Niles on for Jeremy.
Jeremy Tonet: Hey, good morning. This is Diana Niles on for Jeremy.
Brian Van Abel: Morning.
Brian Van Abel: Morning.
Diana Niles: So, hi, good morning. So my question is: considering data centers coming online in the coming years, how should we think about that ramp to sales CAGR reaching 5% across service territories? And do you still expect 3% of this 5% from data centers?
Jeremy Tonet: So, hi, good morning. So my question is: considering data centers coming online in the coming years, how should we think about that ramp to sales CAGR reaching 5% across service territories? And do you still expect 3% of this 5% from data centers?
Speaker #5: to sales care reaching 5% across service Good morning. territories? And do you still expect 3% of this 5% from data centers?
Speaker #5: to sales care reaching 5% across service Good morning. territories? And do you still expect 3% of this 5% from data centers?
Brian Van Abel: Yeah, thanks for the question. This is Brian. No, we'll update our five-year sales forecast, as we typically do, on Q3. That 5% sales CAGR was based on the 3 gigawatts of data center that we had all tied in our last Q3 update. Clearly, we've updated that from 3 gigawatts to 6 gigawatts. But I think there's some of it, when you look at the timing, and we expect to have these contracts signed by the end of 2027, and the construction cycle, a lot of those may come in kind of that 2029 type period. And then it's really about energizing into 2030 and the early 2030s, and about extending our capital investment opportunity, our generation need.
Brian Van Abel: Yeah, thanks for the question. This is Brian. No, we'll update our five-year sales forecast, as we typically do, on Q3. That 5% sales CAGR was based on the 3 gigawatts of data center that we had all tied in our last Q3 update. Clearly, we've updated that from 3 gigawatts to 6 gigawatts. But I think there's some of it, when you look at the timing, and we expect to have these contracts signed by the end of 2027, and the construction cycle, a lot of those may come in kind of that 2029 type period. And then it's really about energizing into 2030 and the early 2030s, and about extending our capital investment opportunity, our generation need.
Speaker #4: data center that we had all tied in our last Q3 update. Clearly, we've updated that from 3 gigawatts to 6 gigawatts. But I think there's some of that when you look at the timing, and we expect to have these contracts signed by the end of construction cycle, a lot of those may come in kind of in that 29-type period.
Speaker #4: And then it's really about energizing in the 2030 and the early 2030s and about extending our capital investment opportunity, our generation 2027 and the need so certainly significant sales growth opportunity, but we think about it more in this later part of this five-year driving significant growth, significant sales growth and benefit for our other customers into the 2030s about extent.
Brian Van Abel: So, certainly significant sales growth opportunity, but we think about it more in this later part of this five-year, driving significant growth, significant sales growth, and benefit for our other customers into the 2030s, to that extent. So it's really about extending our growth opportunities, sales growth, capital investment growth, and benefit to our current customers.
Brian Van Abel: So, certainly significant sales growth opportunity, but we think about it more in this later part of this five-year, driving significant growth, significant sales growth, and benefit for our other customers into the 2030s, to that extent. So it's really about extending our growth opportunities, sales growth, capital investment growth, and benefit to our current customers.
Speaker #4: So it's really about extending our growth opportunities, sales growth, capital investment growth, and benefit to our current
Speaker #4: customers. Great.
Diana Niles: Great, thank you. And then on the Smokehouse Creek, I saw the low-end estimate rose about the same amount as the finalized settlement agreements. So those, like, estimated losses to the low end stay around $50 million. I'm just wondering how many lawsuits that $50 million might represent and sort of how sticky finalizing those might be.
Jeremy Tonet: Great, thank you. And then on the Smokehouse Creek, I saw the low-end estimate rose about the same amount as the finalized settlement agreements. So those, like, estimated losses to the low end stay around $50 million. I'm just wondering how many lawsuits that $50 million might represent and sort of how sticky finalizing those might be.
Speaker #5: Thank you. And then on the smokehouse creek, I saw the low end estimate rose about the same amount as the finalized settlement agreements. So there end stay around 50 million.
Speaker #5: I'm just wondering how many lawsuits that 50 million might represent and sort of how sticky finalizing those might
Brian Van Abel: Maybe I'll take a step back and try and answer that question. I think we've made really good progress if you look at just the number of claims we've settled. We have over 320 claims settled, and about roughly 420 claims and lawsuits in total. So we've settled on a significant number, only about 90, about 100 outstanding. And I think you look at, and I've talked about it before, is we've settled some of the largest claims. We've settled the three largest claims by acreage, which were high-value ranches. We've settled with our subrogation insurers. So when I think about it, we've made considerable progress from this time last year to today. This time last year, we just had over 100 settlements, and now we have 3x that amount.
Brian Van Abel: Maybe I'll take a step back and try and answer that question. I think we've made really good progress if you look at just the number of claims we've settled. We have over 320 claims settled, and about roughly 420 claims and lawsuits in total. So we've settled on a significant number, only about 90, about 100 outstanding. And I think you look at, and I've talked about it before, is we've settled some of the largest claims. We've settled the three largest claims by acreage, which were high-value ranches. We've settled with our subrogation insurers. So when I think about it, we've made considerable progress from this time last year to today. This time last year, we just had over 100 settlements, and now we have 3x that amount.
Speaker #4: I'll take a step back and try and answer that question. I think we've made really good progress if you look at just the number of claims we've settled.
Speaker #4: We have over 320 claims settled, and about, roughly, 420 claims and lawsuits in total. So we've settled a significant number—only about 90, about 100, outstanding.
Speaker #4: And I think you look at, and I've talked about it before, is we've settled some of the largest claims. We've settled the three largest claims by acreage, which were high-value ranches, we've settled with our subrogation insurers.
Speaker #4: So when I think about it, we've made considerable progress from last year, we just had over 100 settlements and now we this time last year to today.
Speaker #4: have 3x that amount. So we'll continue to evaluate it. We expect to get some additional claims in as we near the two-year deadline. And then we'll evaluate like we do every quarter.
Brian Van Abel: So we'll continue to evaluate it. We expect to get some additional claims in as we near the two-year deadline, and then we'll evaluate it like we do every quarter. But we continue to make really good progress on the overall claims. And again, it's a low-end estimate, but we feel good when we think about. We have $380 million of that, $430 million is already settled. And so it's really our low-end estimates focused on that $50 million relative to about a $120 million of insurance proceeds left when you look at our coverage amount.
Brian Van Abel: So we'll continue to evaluate it. We expect to get some additional claims in as we near the two-year deadline, and then we'll evaluate it like we do every quarter. But we continue to make really good progress on the overall claims. And again, it's a low-end estimate, but we feel good when we think about. We have $380 million of that, $430 million is already settled. And so it's really our low-end estimates focused on that $50 million relative to about a $120 million of insurance proceeds left when you look at our coverage amount.
Speaker #4: But we continue to make really good progress on the overall claims. And again, it's This time the low end estimate. But we feel good we have 380 million of that 430 million is already settled.
Speaker #4: And so it's really our low end estimates focused on that 50 million dollars relative to about 120 million dollars of insurance proceeds left when you look at our coverage
Speaker #4: And so it's really our low end estimates focused on that 50 million dollars relative to about 120 million dollars of insurance proceeds left when you look at our coverage amount.
Speaker #5: Great. Thank you.
Diana Niles: Great. Thank you.
Jeremy Tonet: Great. Thank you.
Speaker #2: Your next question comes from the line of Carly Davenport from Goldman Sachs. Your line is live.
Operator: Your next question comes from the line of Carly Davenport from Goldman Sachs. Your line is live.
Operator: Your next question comes from the line of Carly Davenport from Goldman Sachs. Your line is live.
Carly Davenport: Hey, good morning. Thanks so much for taking my question. Maybe just to start on the partnership with NextEra, could you talk a little bit more about the roles that each of you will play in developing these data center projects? And maybe if there are any time-to-market advantages, given that is still the top priority for data center customers.
Carly Davenport: Hey, good morning. Thanks so much for taking my question. Maybe just to start on the partnership with NextEra, could you talk a little bit more about the roles that each of you will play in developing these data center projects? And maybe if there are any time-to-market advantages, given that is still the top priority for data center customers.
Speaker #5: Hey, good morning. Thanks so much for taking my question. Maybe just to start on the partnership with Nexterra, could you talk a little bit more about the roles that each of you will play in developing these to market data center projects?
Speaker #5: customers?
Speaker #4: Yeah, hey, Carly, it's Bob. Thanks for the question. The last time we got together, maybe it was in the
Brian Van Abel: Yeah. Hey, Carly, it's Bob. Thanks for the question. You know, the last time we got together, maybe it was in the third quarter last year sometime, we talked a lot about executing on a capital backlog plan, executing on a data center, large load plans for the company, and really finding the mechanisms that allowed us to execute in totality across the company. I think what you heard from the team today was execution across all three of those areas. You know, with regards to NextEra in particular, you used a word that I use a lot here, which is speed.
Bob Frenzel: Yeah. Hey, Carly, it's Bob. Thanks for the question. You know, the last time we got together, maybe it was in the third quarter last year sometime, we talked a lot about executing on a capital backlog plan, executing on a data center, large load plans for the company, and really finding the mechanisms that allowed us to execute in totality across the company. I think what you heard from the team today was execution across all three of those areas. You know, with regards to NextEra in particular, you used a word that I use a lot here, which is speed.
Speaker #4: about executing on a capital backlog plan, executing on a data center third quarter last year, sometime, we talked a lot large load plans for the company.
Speaker #4: And really finding the mechanisms that allowed us to execute in totality across the company. And I think what you was execution across all three of those areas.
Speaker #4: With regards to Nexterra in particular, you used a word that I use a lot here, which is increased clock speed as we think through combining to the best sales team, to the best development teams, to the best analytical teams in the country to And maybe if there are any time deliver solutions for a very sophisticated customer set.
Brian Van Abel: So we do think there'll be increased clock speed as we think through combining two of the best sales team, two of the best development teams, two of the best analytical teams in the country to deliver solutions for a very sophisticated customer set. We also think that it brings scale, and the ability to, you know, put an inflection point in the curve of data center delivery, and signed ESAs and contracts, and ultimately, investment opportunities in all three of our big regions. When I think about roles and role clarity, you know, we're still at MOU stage, although I'd tell you a lot of the terms and conditions have been really agreed upon by the organizations. We've got to get to sort of final, you know, joint development agreement type framework, which I think we'll get to quickly.
Bob Frenzel: So we do think there'll be increased clock speed as we think through combining two of the best sales team, two of the best development teams, two of the best analytical teams in the country to deliver solutions for a very sophisticated customer set. We also think that it brings scale, and the ability to, you know, put an inflection point in the curve of data center delivery, and signed ESAs and contracts, and ultimately, investment opportunities in all three of our big regions. When I think about roles and role clarity, you know, we're still at MOU stage, although I'd tell you a lot of the terms and conditions have been really agreed upon by the organizations. We've got to get to sort of final, you know, joint development agreement type framework, which I think we'll get to quickly.
Speaker #4: We also think that it brings scale and the ability, speed, to put an inflection point in the curve of data. So we do think there'll be signed ESAs and contracts, and ultimately investment opportunities. And in role clarity, we're still at organizations.
Speaker #4: MOU stage, although I tell you a lot of the We've got to get to sort of final joint development agreement type framework, which I think we'll get to all three of our big quickly.
Brian Van Abel: I think about us having a great backlog and visibility in conversations with hyperscalers and data center developers. We know NextEra has a national platform of this as well. And bringing those two together and being able to sit in a room and compare notes of who are we talking to, where's the best place to do this as it pertains to our regulated footprint, and then where do we have generation that we can bring to the table that we need to bring to the table, with speed, with certainty, with price transparency, and with competitiveness? I think that's what the teams are going to bring together collectively.
Speaker #4: I think about us having a great backlog and visibility, and conversations—regions, developers. We know Nexterra has a national platform of this as well.
Bob Frenzel: I think about us having a great backlog and visibility in conversations with hyperscalers and data center developers. We know NextEra has a national platform of this as well. And bringing those two together and being able to sit in a room and compare notes of who are we talking to, where's the best place to do this as it pertains to our regulated footprint, and then where do we have generation that we can bring to the table that we need to bring to the table, with speed, with certainty, with price transparency, and with competitiveness? I think that's what the teams are going to bring together collectively.
Speaker #4: And bringing those two compare notes of who we're talking to, where's the together and being able to sit in a room and best place to do this, as it pertains to our regulated When I think about roles footprint.
Speaker #4: And then where do we have generation that we can bring to the table that we need to bring to the table with speed, with with competitiveness?
Speaker #4: I think certainty, with price transparency, and that's what the teams are going to bring together, collectively. It's not an exclusive arrangement, but we expect to do a lot of work through this agreement.
Bob Frenzel: You know, it's not, it's not an exclusive arrangement, but we expect to do a lot of work through this agreement, and it's not fuel type limited. If you think about, you know, where we sit in sustainability goals as a company, where these hyperscalers and data centers and, and customers of data center developers want to be, it's a highly sustainable product. And, and no one's delivered more wind or solar or storage development across the country than NextEra. And we've been twenty-year partners with them. We signed our first PPA with them in 2006, our first PSA for a development transfer in a decade ago. So this is a great working relationship. All we're doing, I think, here is, is codifying it for the purposes of speed and execution certainty.
Bob Frenzel: You know, it's not, it's not an exclusive arrangement, but we expect to do a lot of work through this agreement, and it's not fuel type limited. If you think about, you know, where we sit in sustainability goals as a company, where these hyperscalers and data centers and, and customers of data center developers want to be, it's a highly sustainable product. And, and no one's delivered more wind or solar or storage development across the country than NextEra. And we've been twenty-year partners with them. We signed our first PPA with them in 2006, our first PSA for a development transfer in a decade ago. So this is a great working relationship. All we're doing, I think, here is, is codifying it for the purposes of speed and execution certainty.
Speaker #4: And it's not fuel type limited. If you think about where we sit in sustainability goals as a company, where these hyperscalers and data centers and customers of data center developers want to be, it's a highly sustainable product.
Speaker #4: And no one's delivered more wind or solar or storage development across the country than Nexterra. And we've been 20-year partners with them. We signed our first PPA with them in 2006, our first PSA for a development this is a great working relationship.
Speaker #4: All we're doing, I think, here is codifying it for the purposes of speed and transfer in a decade ago. execution So certainty.
Speaker #5: That's super helpful. Thanks, Bob. And then maybe just the follow-up, just there are a number of elections across your states this year. Any early views in particular on Minnesota and Colorado where you have ongoing rate cases and just sort of the role that you'd respective campaigns?
Carly Davenport: That's super helpful. Thanks, Bob. And then, maybe just the follow-up. Just there are a number of elections across your states this year. Any early views, in particular on Minnesota and Colorado, where you have ongoing rate cases, and just sort of the role that you'd expect affordability to play in the respective campaigns?
Carly Davenport: That's super helpful. Thanks, Bob. And then, maybe just the follow-up. Just there are a number of elections across your states this year. Any early views, in particular on Minnesota and Colorado, where you have ongoing rate cases, and just sort of the role that you'd expect affordability to play in the respective campaigns?
Bob Frenzel: Yeah, great question. Something we pay a ton of attention to, and if you saw my or heard my prepared remarks, I spent a lot of time talking about where I think we sit as a company in terms of affordability. You know, Colorado, first, lowest energy bills, electric and gas in the country. I think that's a great starting spot. We needed to file both electric and gas cases there. We've invested substantially into that state over the last 2 or 3 years. We haven't filed a case. We did file a case at the end of last year, and that'll go through prosecution through the course of this year. You know, the election, it's probably early to tell. There's a lot of great candidates in Colorado for the governor.
Bob Frenzel: Yeah, great question. Something we pay a ton of attention to, and if you saw my or heard my prepared remarks, I spent a lot of time talking about where I think we sit as a company in terms of affordability. You know, Colorado, first, lowest energy bills, electric and gas in the country. I think that's a great starting spot. We needed to file both electric and gas cases there. We've invested substantially into that state over the last 2 or 3 years. We haven't filed a case. We did file a case at the end of last year, and that'll go through prosecution through the course of this year. You know, the election, it's probably early to tell. There's a lot of great candidates in Colorado for the governor.
Speaker #4: great question. Something we pay a ton of attention to. And if you saw my or heard my prepared expect affordability to play in the of affordability, about where I think we sit as a company in terms Colorado, number one, lowest energy bills, electric and gas in needed to file both electric and gas cases there.
Speaker #4: We've the country. I think that's a great starting spot. We invested substantially into that state over the case. We did file a case at the end of last year.
Speaker #4: Last two or three years. And I'll go through. We haven't filed an election; it's probably early to tell. There's a lot of great candidates in Colorado for the governor.
Bob Frenzel: Two big names on the Democratic side, one big name on the Republican side of the ticket, and, you know, probably early innings for us to see how that's gonna play out in November. Certainly, energy and energy goals for the state have been very critical. We know that one of the things the state legislature is gonna look at is 2040 legislation for some clean energy standard that's been a Governor Polis' priority for a long time. So we know that clean energy is gonna be on the table. We're a huge leader here and in Colorado, and I think we've got a great seat at the table when it comes to energy policy in that election.
Speaker #4: Two big names in the Democratic side, one big name on the Republican side of the ticket. And probably early innings for us to see how that's going to play out in November.
Bob Frenzel: Two big names on the Democratic side, one big name on the Republican side of the ticket, and, you know, probably early innings for us to see how that's gonna play out in November. Certainly, energy and energy goals for the state have been very critical. We know that one of the things the state legislature is gonna look at is 2040 legislation for some clean energy standard that's been a Governor Polis' priority for a long time. So we know that clean energy is gonna be on the table. We're a huge leader here and in Colorado, and I think we've got a great seat at the table when it comes to energy policy in that election.
Speaker #4: State have been very critical. We know that one of—certainly, energy and energy goals for the—the things the state legislature is going to look at is 2040 legislation. Been a Governor Polis priority for energy, is going to be on the table.
Speaker #4: We're a huge force for some clean energy standard—that's why we got a great seat at the table when it comes to leadership here, and in Colorado, and I think election.
Bob Frenzel: In Minnesota, obviously, Senator Klobuchar just put her hat in the ring for the governor's election, and there's a crowded field of folks on the Republican side as well. So probably early innings to tell what might happen there. You know, we've got a rate case here in Minnesota that we've been prosecuting for about a year. We expect decisions here by, call it, midyear this year, and potential to settle between now and then. So I'm not certain how much the gubernatorial cycle will affect the outcomes of the cases that we have in front of us in Minnesota.
Speaker #4: In Minnesota, obviously, Senator Klobuchar just put her hat in the ring for the governor's a long time. field of folks on the Republican side as well.
Bob Frenzel: In Minnesota, obviously, Senator Klobuchar just put her hat in the ring for the governor's election, and there's a crowded field of folks on the Republican side as well. So probably early innings to tell what might happen there. You know, we've got a rate case here in Minnesota that we've been prosecuting for about a year. We expect decisions here by, call it, midyear this year, and potential to settle between now and then. So I'm not certain how much the gubernatorial cycle will affect the outcomes of the cases that we have in front of us in Minnesota.
Speaker #4: So probably early innings to So we know that clean election. tell. What might happen there? We've got a rate case here in about a year.
Speaker #4: We expect decisions year. And potential to settle between And there's a crowded now and then. So I'm not certain Minnesota that we've been prosecuting for how much the gubernatorial cycle will affect the outcomes of the cases that Minnesota.
Speaker #5: That's great.
Carly Davenport: That's great.
Carly Davenport: That's great.
Brian Van Abel: And Carly, just a couple of things just to add. I mean, we have echo all, all Bob's points on affordability, and we have a great affordability story while we're driving state energy policy in those two states. And so we're really aligned both on state energy policy and the affordability narrative. And then if you, if you looked at our Colorado electric rate case filing, we put forth an enhanced affordability proposal, really getting at our customers that do have a higher energy burden. And we proposed something for customers that were at a 5 to 6% energy burden, down to 2.5% in a combined electric and gas bill. So really looking at where can we address the affordability ability issues.
Brian Van Abel: And Carly, just a couple of things just to add. I mean, we have echo all, all Bob's points on affordability, and we have a great affordability story while we're driving state energy policy in those two states. And so we're really aligned both on state energy policy and the affordability narrative. And then if you, if you looked at our Colorado electric rate case filing, we put forth an enhanced affordability proposal, really getting at our customers that do have a higher energy burden. And we proposed something for customers that were at a 5 to 6% energy burden, down to 2.5% in a combined electric and gas bill. So really looking at where can we address the affordability ability issues.
Speaker #2: And Carly, just a couple of things to add. I mean, we have echo all Bob's points on affordability. And we we have in front of us in have a great affordability story.
Speaker #2: While we're driving state energy policy in those two states. And so we're narrative. And then if you looked at our Colorado electric rate case really aligned both on state energy enhanced affordability proposal really getting at our customers that do have a higher energy burden.
Speaker #2: And we proposed something for filing, we put forth an customers that were at a 5 to 6 percent energy burden down to 2 and a half policy and the affordability percent in the combined electric and gas bill.
Speaker #2: The affordability issues—so we're really looking at where we can address them. We're pretty excited about where the narrative is, but also looking to address it in the pockets where we can.
Brian Van Abel: So we're pretty, you know, excited about where we sit from affordability story, our narrative, and but also looking to address it in the pockets where we can.
Brian Van Abel: So we're pretty, you know, excited about where we sit from affordability story, our narrative, and but also looking to address it in the pockets where we can.
Speaker #5: Really helpful. Thank you
Carly Davenport: Really helpful. Thank you both.
Carly Davenport: Really helpful. Thank you both.
Speaker #5: both.
Operator: Your next question comes from the line of Steven from RBC Capital Markets. Your line is live.
Operator: Your next question comes from the line of Steven from RBC Capital Markets. Your line is live.
Speaker #6: Your next question comes from
Speaker #6: the line of RBC Capital Markets. Your line is we sit from affordability story.
Speaker #6: Stephen DMBC from
[Analyst] (RBC Capital Markets): Hey, Bob. Hey, Brian. Thanks very much for taking my question. Good morning.
Steven Yunis: Hey, Bob. Hey, Brian. Thanks very much for taking my question. Good morning.
Speaker #7: Hey, Bob. Hey, Brian. Thanks very much for taking my
Speaker #7: Good morning. I just had morning, Bob. I just had a quick one quarter when you rolled out your gigawatts between the two buckets of contracted and high talked about roughly three probability.
Speaker #2: Good morning, live.
Bob Frenzel: Morning, Steve.
Bob Frenzel: Morning, Steve.
Speaker #2: Steve. question.
[Analyst] (RBC Capital Markets): Good morning, Bob. I just had a quick one about just the, effectively, the data center pipeline update. You know, I think on Q3, when you rolled out your formal financial plan, you had talked about roughly 3 gigawatts between the two buckets of contracted and high probability, and that those two buckets would drive 3% of the 5% total sales growth. And so can you just give me a little color about now that that combined bucket looks like it's doubling to almost 6 gigawatts, what does that mean for your sales growth? And then kind of the attendant question would just be, as we get clarity on some of the high-probability pipeline, you know, when do we see updated IRPs that reflect some of this load incremental load growth?
Steven Yunis: Good morning, Bob. I just had a quick one about just the, effectively, the data center pipeline update. You know, I think on Q3, when you rolled out your formal financial plan, you had talked about roughly 3 gigawatts between the two buckets of contracted and high probability, and that those two buckets would drive 3% of the 5% total sales growth. And so can you just give me a little color about now that that combined bucket looks like it's doubling to almost 6 gigawatts, what does that mean for your sales growth? And then kind of the attendant question would just be, as we get clarity on some of the high-probability pipeline, you know, when do we see updated IRPs that reflect some of this load incremental load growth?
Speaker #7: And that those two buckets would drive 3% of the 5% total sales growth. And so can you just give me a little color about now that that combined bucket looks like it's doubling to almost 6 gigawatts?
Speaker #7: What does that mean for your sales growth? And be, as we get clarity on some of the then kind of the attended question would just high probability pipeline, when do we see do we see updated IRPs that reflect some pipeline update.
Speaker #7: Growth? And just how does that filter down into capital, ultimately?
[Analyst] (RBC Capital Markets): Just how does that filter down into capital, ultimately? Thanks.
Steven Yunis: Just how does that filter down into capital, ultimately? Thanks.
Brian Van Abel: Hey, Steve, thanks for the question. And absolutely right, in terms of everything we said on the Q3 call, 3 gigawatts of data centers in our high-probability bucket. We also said on the Q3 call that we would execute on 2 gigawatts by this time, and we did execute on 2 gigawatts by this time. So, want to ensure that we're delivering on what we tell our investors, because I think that's really important. And so, you know, we feel that we have clear conviction by essentially doubling our data center opportunity from 3 gigawatts to 6 gigawatts. And so excited about that. In terms of our sales forecasts, that 3 gigawatts translated to 3% of the 5% growth.
Brian Van Abel: Hey, Steve, thanks for the question. And absolutely right, in terms of everything we said on the Q3 call, 3 gigawatts of data centers in our high-probability bucket. We also said on the Q3 call that we would execute on 2 gigawatts by this time, and we did execute on 2 gigawatts by this time. So, want to ensure that we're delivering on what we tell our investors, because I think that's really important. And so, you know, we feel that we have clear conviction by essentially doubling our data center opportunity from 3 gigawatts to 6 gigawatts. And so excited about that. In terms of our sales forecasts, that 3 gigawatts translated to 3% of the 5% growth.
Speaker #2: A, Steve, thanks for the question. And absolutely right in terms of everything we said on the bucket. We also said on the Q3 gigawatts.
Speaker #2: call that we would execute on 2
Speaker #2: gigawatts by this time. So one, ensure that we're delivering on what we tell our investors because I think that's really clear conviction by essentially doubling our data center opportunity from 3 gigawatts to 6 gigawatts and so excited about that.
Speaker #2: In terms of our sales forecast, that 3 gigawatts translated to 3 of the 5% growth. We'll provide a holistic update in Q3 like we normally do when we roll forward our five-year sales forecast plan.
Brian Van Abel: We'll provide a holistic update in Q3, like we normally do, when we roll forward our five-year sales forecast plan, but certainly an opportunity. Although I do think if you look at the timing and when you'd execute an ESA, if we say through the end of 2027, and kind of think about that cycle, you might see a lot of these coming in, maybe that 2029, 2030, as they energize and then ramp up into the 2030s. So I think is really the opportunity is, how do we think about extending our growth beyond 2030? So some potential sales impact within this five years, but really it's, it's post 2030 as we think about these, particularly with the, call it, the, the very large data centers, the 1 gigawatt plus, where they ramp up over time.
Brian Van Abel: We'll provide a holistic update in Q3, like we normally do, when we roll forward our five-year sales forecast plan, but certainly an opportunity. Although I do think if you look at the timing and when you'd execute an ESA, if we say through the end of 2027, and kind of think about that cycle, you might see a lot of these coming in, maybe that 2029, 2030, as they energize and then ramp up into the 2030s. So I think is really the opportunity is, how do we think about extending our growth beyond 2030? So some potential sales impact within this five years, but really it's, it's post 2030 as we think about these, particularly with the, call it, the, the very large data centers, the 1 gigawatt plus, where they ramp up over time.
Speaker #2: But certainly an opportunity. Although I do think if you look at the timing and when you'd execute an ESA, if we say through the end of 2027 and kind of I think on third important. think about that then ramp up into the that 29, 30 as they energize and 2030s.
Speaker #2: So I think it's really the opportunity is how do we think about extending our growth beyond 2030? So some potential sales impact within this five years, but really it's post-2030 as the, call it, the very large we think about these particularly with And then you would see there's really two ways they could come ramp up over time.
Brian Van Abel: And then you would see there's really two ways they could come in through our-- You asked if they come in through the resource planning process. Certainly could come in through the resource planning process, but I, I think more often you'll see them come packaged with an ESA. You know, in terms of we're going to bring forward a specific data center, and here's the package of resources, that we'll serve it with, serve it with. Because then that can really demonstrate to our commission that we're driving customer benefit for all of our current customers when we're looking at how we're going to serve those data centers. So I think that actually gives us more flexibility than kind of your, your standard resource planning process that can take a significant amount of time if you just go through that.
Brian Van Abel: And then you would see there's really two ways they could come in through our-- You asked if they come in through the resource planning process. Certainly could come in through the resource planning process, but I, I think more often you'll see them come packaged with an ESA. You know, in terms of we're going to bring forward a specific data center, and here's the package of resources, that we'll serve it with, serve it with. Because then that can really demonstrate to our commission that we're driving customer benefit for all of our current customers when we're looking at how we're going to serve those data centers. So I think that actually gives us more flexibility than kind of your, your standard resource planning process that can take a significant amount of time if you just go through that.
Speaker #2: Come in through the resource planning, see them come packaged—process. But I think more often you'll ESA. In terms of, we're going to bring forward a specific data center and here's the package of resources.
Speaker #2: That will serve it with—certainly could come in through the resource planning. Because then that can really demonstrate the benefit for all of our current customers when our commission, that we're driving customer, we're looking at how we're going to serve those data centers.
Speaker #2: So, I think that actually gives us more flexibility than your standard resource planning process, which can take a significant amount of time if you just go through that.
Bob Frenzel: Yeah, Steve, it's Rob. Just to add on to what Brian said, you know, look, we're going to expect some modest sales this decade. We'll have to update our plan accordingly. We'd expect to start investing, probably capital, to build the generation to serve those sales in the later part of this decade as well. We'll update our capital plan accordingly in Q3. And I'd just say, give us a little bit of time with the NextEra partnership to figure out how fast we can get our feet underneath us, how fast we can run, and how fast we can bring this stuff to the table. So give us a little bit of time, and we'll keep this group informed as we go through the year, and certainly a full sub update in Q3.
Bob Frenzel: Yeah, Steve, it's Rob. Just to add on to what Brian said, you know, look, we're going to expect some modest sales this decade. We'll have to update our plan accordingly. We'd expect to start investing, probably capital, to build the generation to serve those sales in the later part of this decade as well. We'll update our capital plan accordingly in Q3. And I'd just say, give us a little bit of time with the NextEra partnership to figure out how fast we can get our feet underneath us, how fast we can run, and how fast we can bring this stuff to the table. So give us a little bit of time, and we'll keep this group informed as we go through the year, and certainly a full sub update in Q3.
Speaker #7: Yeah, Steve, just to add on to what Brian said is, look, we're going to expect some modest sales this decade. We'll have to update our plan accordingly.
Speaker #7: We'd expect to start investing probably capital to build the generations to serve those well. We'll update our capital plan sales. In the later part of this decade as say give us a little bit of time with the accordingly in the third quarter.
Speaker #7: next era partnership to figure out how fast we can get our feet underneath us, how fast we can run, and how fast we can bring And I'd just this stuff to the table.
Speaker #7: So, give us a little bit of time, and we'll keep this group informed as we go through the year, and certainly a fulsome—
Speaker #7: Update in the third quarter. Yeah.
Brian Van Abel: Yeah. And I think about it, you know, we have that $10+ billion pipeline slide. When you look at our current base capital plan, in terms of we have very strong growth in investing for our customers in the front three years, but then it's how do we fill in and strengthen that, that pipeline in years 2029 and 2030 and beyond. So that's a really good way to think about it, deepening our pipeline of opportunities and extending that pipeline of opportunities post 2030.
Brian Van Abel: Yeah. And I think about it, you know, we have that $10+ billion pipeline slide. When you look at our current base capital plan, in terms of we have very strong growth in investing for our customers in the front three years, but then it's how do we fill in and strengthen that, that pipeline in years 2029 and 2030 and beyond. So that's a really good way to think about it, deepening our pipeline of opportunities and extending that pipeline of opportunities post 2030.
Speaker #2: And I think about it, we have that $10-plus billion pipeline slide. When you look at our current base capital plan in terms for our customers in the front three years.
Speaker #2: But then it's how do we fill in and of we have very strong growth and investing strengthen that pipeline in years 29 and 30 and beyond.
Speaker #2: So that's a really good way to think about it. Deepening our pipeline of opportunities and extending that pipeline of opportunities
Speaker #2: post-2030. Great.
[Analyst] (RBC Capital Markets): Great, that's super helpful. And then just one other one quickly. Just, you had mentioned that maybe the Colorado near-term RFPs were going to get bifurcated or tranched out, I guess. And so can you just talk about, you know, I think it was the proposal was 2.1 gigs company-owned across a portfolio of 4.9 gigawatts. And so what does that look like in the, you know, in this tranching out, and what's, like, the timeline around some of these tranche updates, I guess? Thanks.
Steven Yunis: Great, that's super helpful. And then just one other one quickly. Just, you had mentioned that maybe the Colorado near-term RFPs were going to get bifurcated or tranched out, I guess. And so can you just talk about, you know, I think it was the proposal was 2.1 gigs company-owned across a portfolio of 4.9 gigawatts. And so what does that look like in the, you know, in this tranching out, and what's, like, the timeline around some of these tranche updates, I guess? Thanks.
Speaker #7: That's super helpful. And then mentioned that maybe the Colorado just one other one quickly. Just you had near-term RFPs were going to get bifurcated or tranched out, I guess.
Speaker #7: And so can you just talk about I think it was the proposal was 2.1 gigs company-owned across a portfolio of 4.9 gigawatts. the this tranching out and And so what does that look like in what's the timeline around some of these tranche updates, I guess?
Speaker #7: Thanks.
Speaker #2: Yeah. And the commission is working through the deliberation. So kind of what at least as we understand is sitting here today, they approved about 1 gigawatts of projects including our gas then they asked for some additional analysis over the next, call it, one or two months that we're working on going to look at a new portfolio, which could potentially expeditiously.
Brian Van Abel: Yeah, and the commission is working through the deliberation, so kind of what at least as we understand it, sitting here today, they approved about 1 gigawatts of projects, including our gas plant, in the last set of deliberations. And then they asked for some additional analysis over the next, call it, 1 or 2 months, that we're working on expeditiously. And so they're going to look at a new portfolio, which could potentially include up to 1 gigawatt of our company-owned solar plus storage in that next tranche. And then potentially a tranche three, the timing is unclear, but likely in the first half. So we'll work with our stakeholders.
Brian Van Abel: Yeah, and the commission is working through the deliberation, so kind of what at least as we understand it, sitting here today, they approved about 1 gigawatts of projects, including our gas plant, in the last set of deliberations. And then they asked for some additional analysis over the next, call it, 1 or 2 months, that we're working on expeditiously. And so they're going to look at a new portfolio, which could potentially include up to 1 gigawatt of our company-owned solar plus storage in that next tranche. And then potentially a tranche three, the timing is unclear, but likely in the first half. So we'll work with our stakeholders.
Speaker #2: Include up to 1 gigawatt of our—and so they're company-owned—solar plus storage in that next tranche. And then potentially a tranche three; the timing is unclear, but likely in the first half.
Speaker #2: So we'll work with our stakeholders. Obviously, we brought forward this near-term procurement with a number of our key stakeholders in the state to really drive projects, ensure they come online before the tax credits expire.
Brian Van Abel: Obviously, we brought forward this near-term procurement with a number of our key stakeholders in the state to really drive projects, ensure they come online before the tax credits expire. So we'll continue to work with the stakeholders about the importance of that from a customer affordability perspective. But if anything doesn't get picked up in the near-term procurement, it just shifts to an overall resource plan, the Just Transition plan that is in flight. So it's really this is a subset of what we expect to execute in the resource plan, which will be follow on RFPs later this year.
Brian Van Abel: Obviously, we brought forward this near-term procurement with a number of our key stakeholders in the state to really drive projects, ensure they come online before the tax credits expire. So we'll continue to work with the stakeholders about the importance of that from a customer affordability perspective. But if anything doesn't get picked up in the near-term procurement, it just shifts to an overall resource plan, the Just Transition plan that is in flight. So it's really this is a subset of what we expect to execute in the resource plan, which will be follow on RFPs later this year.
Speaker #2: So we'll continue to work with the stakeholders about the importance of that from a customer affordability perspective. But if anything doesn't get picked up in the near-term procurement, it just shifts to overall resource plan to just transition plan that is in flight.
Speaker #2: So it's really this is a subset of what we expect to execute in the resource plan, which will be follow on RFPs later this
Speaker #2: year.
Speaker #7: Understood.
[Analyst] (RBC Capital Markets): Understood. Thanks, thanks very much for the time, guys. Great update. Appreciate it.
Steven Yunis: Understood. Thanks, thanks very much for the time, guys. Great update. Appreciate it.
Speaker #7: Update. Appreciate it. Thanks, thanks very much for the time, guys. Great.
Brian Van Abel: Thank you.
Brian Van Abel: Thank you.
Operator: The next question comes from the line of Nicholas Campanella from Barclays. Your line is live.
Operator: The next question comes from the line of Nicholas Campanella from Barclays. Your line is live.
Speaker #1: Your next question comes from you. Nicholas Campanella from the line. Of Barclays. Your line is
Speaker #8: Can you guys
Nicholas Campanella: Can you guys hear me?
Nicholas Campanella: Can you guys hear me?
Speaker #8: hear me? Hey, Nick.
Brian Van Abel: Hey, Nick, we can hear you.
Brian Van Abel: Hey, Nick, we can hear you.
Speaker #2: We can
Speaker #2: hear you.
Speaker #8: Hello? Hey, hey. How's everything? I'm really sorry—live. I jumped on late from another call, but I just wanted to kind of clarify: the six gigawatts now is pressured higher on the 5% long-term low growth.
Nicholas Campanella: Hello? Hey, hey, how's everything? I'm really sorry I just jumped on late from another call, but I just wanted to kind of clarify, you know, the 6 gigawatts now is pressured higher on the 5% long-term load growth factor. Is that correct?
Nicholas Campanella: Hello? Hey, hey, how's everything? I'm really sorry I just jumped on late from another call, but I just wanted to kind of clarify, you know, the 6 gigawatts now is pressured higher on the 5% long-term load growth factor. Is that correct?
Speaker #8: correct? All these I'm Yeah.
Brian Van Abel: Yes.
Brian Van Abel: Yes.
Nicholas Campanella: Apologies if I'm repeating.
Nicholas Campanella: Apologies if I'm repeating.
Speaker #8: repeating. Okay. Thank you very much. Yeah.
Brian Van Abel: Yeah.
Brian Van Abel: Yeah.
Nicholas Campanella: Okay, thank you very much.
Nicholas Campanella: Okay, thank you very much.
Speaker #2: Yeah,
Brian Van Abel: Yeah, Nick-
Brian Van Abel: Yeah, Nick-
Nicholas Campanella: Thank you.
Nicholas Campanella: Thank you.
Speaker #2: Nick. Yeah, Nick, that's Thank you. correct. And we really think about it. In terms of, like we said, we doubled our data center expectations here from three to six when you peel back from Q3.
Brian Van Abel: Yeah, Nick, Nick, that's correct. And we really think about it in terms of, you know, our like we said, we doubled our data center expectations here from 3 to 6 when you peel back from Q3. Obviously, I have clear conviction because what we put on our slides, we expect to execute on. And so that does provide sales growth opportunity, and that what I would expect more in the 2029 to 2030 timeline, when you look at kind of the schedule and what it takes from an executing ESA to the energization.
Brian Van Abel: Yeah, Nick, Nick, that's correct. And we really think about it in terms of, you know, our like we said, we doubled our data center expectations here from 3 to 6 when you peel back from Q3. Obviously, I have clear conviction because what we put on our slides, we expect to execute on. And so that does provide sales growth opportunity, and that what I would expect more in the 2029 to 2030 timeline, when you look at kind of the schedule and what it takes from an executing ESA to the energization.
Speaker #2: Obviously, I have clear conviction because what we put on our slides, we expect to execute on. And so that does provide sales growth opportunity in that.
Speaker #2: What I would expect more in the 29 to 30 timeline when you look at kind of the schedule and what it takes from an executing ESA to the energization.
Speaker #2: So the way we look at that is really later in this sales forecast, but really prolonged into 2030 when you think about the ramp schedules on some of these very large data schedules, which means a multiple-year generation buildout for deepening the opportunity late in this five-year and extending our opportunity into the—
Brian Van Abel: So the way we look at that is really later in this sales forecast, but really prolonged into 2030 when you think about the ramp schedules on some of these very large data centers, you know, multiple year ramp schedules, which just means a multiple year generation build-out for us, as we think about it. So deepening the opportunity in late in this five year and extending our opportunity into the 2030s.
Brian Van Abel: So the way we look at that is really later in this sales forecast, but really prolonged into 2030 when you think about the ramp schedules on some of these very large data centers, you know, multiple year ramp schedules, which just means a multiple year generation build-out for us, as we think about it. So deepening the opportunity in late in this five year and extending our opportunity into the 2030s.
Speaker #2: 2030s.
Speaker #8: All right.
Nicholas Campanella: All right. That's great. That's great. I'm sorry if I made you repeat yourself. And then maybe just, like, when we kind of look at the earned returns just for 25 actuals. They are pretty, pretty significantly under authorized. So can you just kind of talk a little bit about just the path to authorized and what's embedded in the plan? I'm specifically kind of thinking about, you know, Colorado, as well as SPS, and where you kind of see your earned ROEs trending as you get to, you know, on the other side of these rate cases. Thanks.
Nicholas Campanella: All right. That's great. That's great. I'm sorry if I made you repeat yourself. And then maybe just, like, when we kind of look at the earned returns just for 25 actuals. They are pretty, pretty significantly under authorized. So can you just kind of talk a little bit about just the path to authorized and what's embedded in the plan? I'm specifically kind of thinking about, you know, Colorado, as well as SPS, and where you kind of see your earned ROEs trending as you get to, you know, on the other side of these rate cases. Thanks.
Speaker #8: That's great. That's great. I'm sorry if I made you repeat yourself. And then maybe
Speaker #8: Actuals, they are pretty significantly under-authorized. So, can you just kind of talk a little bit about just the past few authorized and what's embedded in the plan?
Speaker #8: I'm specifically kind of thinking about Colorado as well as SPS. And where you kind of see earned ROEs trending as you get to on the other side of these rate cases.
Speaker #8: Thanks.
Brian Van Abel: Yeah. Yeah, thanks, Nick. I think, you know, SPS is clear. We had pretty challenging weather in the Q4 in SPS and a couple other unique items in 25. So I expect that to get back closer to where it's been the last few years, as we get rider recovery, and we have a New Mexico rate case in flight that we filed last year. Colorado, specifically, yeah, significant under earnings. But I think maybe refresh from that perspective, we really wanted to get through the Marshall trial and get a constructive settlement with that respect, and we did. If you didn't catch the opening remarks, we only have three known plaintiffs left to settle out of 4,000 plaintiffs, so we feel really good about where we are with that.
Brian Van Abel: Yeah. Yeah, thanks, Nick. I think, you know, SPS is clear. We had pretty challenging weather in the Q4 in SPS and a couple other unique items in 25. So I expect that to get back closer to where it's been the last few years, as we get rider recovery, and we have a New Mexico rate case in flight that we filed last year. Colorado, specifically, yeah, significant under earnings. But I think maybe refresh from that perspective, we really wanted to get through the Marshall trial and get a constructive settlement with that respect, and we did. If you didn't catch the opening remarks, we only have three known plaintiffs left to settle out of 4,000 plaintiffs, so we feel really good about where we are with that.
Speaker #2: Thanks, Nick. I think SPS is clear. We had pretty, yeah, yeah, challenging weather in Q4 in SPS and a couple other unique items in '25.
Speaker #2: So I expect centers. that to get back closer to where it's been the last few Multiple year ramp a New Mexico rate case in years.
Speaker #2: flight that we filed last year. Colorado specifically, yeah, As we get ride or recovery and we have maybe refresh from that perspective. We really wanted to get through the Marshall trial and get a constructive significant under-earnings.
Speaker #2: settlement with that respect. And we did. If you didn't catch the opening remarks, we only have But I think three known plaintiffs left. To settle out of 4,000 plaintiffs.
Speaker #2: So we feel really good about where we are with that. We filed the Colorado Electric and the Colorado Gas case here late last year.
Brian Van Abel: We filed the Colorado Electric and the Colorado Gas case here late last year. So from an ROE improvement perspective, you know, those cases play out, and we expect revenue, a decision in revenue late Q3 of this year. So some revenue in the door this year, but you see the full impact and annualization of those rate cases in 2027. So I expect significant ROE improvement from where we landed in 2025 in Colorado, in 2027, as we think about those rate cases.
Brian Van Abel: We filed the Colorado Electric and the Colorado Gas case here late last year. So from an ROE improvement perspective, you know, those cases play out, and we expect revenue, a decision in revenue late Q3 of this year. So some revenue in the door this year, but you see the full impact and annualization of those rate cases in 2027. So I expect significant ROE improvement from where we landed in 2025 in Colorado, in 2027, as we think about those rate cases.
Speaker #2: perspective, those cases play So from an ROE improvement out and we expect revenue, a decision in revenue late Q3 of this year. So some revenue in the door this year, but you see the full impact and annualization of those rate cases in '27.
Speaker #2: So expect significant ROE improvement from where we landed in '27 as we think about those rate
Speaker #8: And then the last one, if I could—and I appreciate all those answers, Brian—just maybe clarify what’s kind of embedded in the low end of this $10 billion-plus incremental for this to be well above that figure.
Nicholas Campanella: Then the last one, if I could, and I appreciate all those answers, Brian. Just maybe clarify what's kind of embedded in the low end of this $10 billion plus incremental bucket. It just seems like there's potential for this to be well above that figure. So is there any way that you could kind of bookend that, if we're thinking about at minimum, what could kind of be coming into the next full year update when you typically do your refresh in Q3?
Nicholas Campanella: Then the last one, if I could, and I appreciate all those answers, Brian. Just maybe clarify what's kind of embedded in the low end of this $10 billion plus incremental bucket. It just seems like there's potential for this to be well above that figure. So is there any way that you could kind of bookend that, if we're thinking about at minimum, what could kind of be coming into the next full year update when you typically do your refresh in Q3?
Speaker #8: So is there any way that you could kind of bookend that if we're thinking about at minimum what could kind of be coming into the next full year update when you typically do your refresh in the third quarter?
Brian Van Abel: Maybe I'll walk through some of the couple of the markers that we're watching, Nick, to help you think about how we're going to roll forward this year into Q3. We have. If I think through the significant RFPs that we have outstanding, we talked about the Colorado near-term plan, which the commission's looking at, approving in tranches. But we should have visibility on that as we work through the next several months. The SPS RFP for 15 to 3,000 megawatts of nameplate capacity, we already received the bids, and we're working through the analysis of those bids, and the independent monitor will make a filing in Q2, so we'll have visibility on that opportunity.
Speaker #2: Maybe I'll walk through some of the markers that we're watching, Nick, to help you think about how we're going to roll forward this year into Q3.
Brian Van Abel: Maybe I'll walk through some of the couple of the markers that we're watching, Nick, to help you think about how we're going to roll forward this year into Q3. We have. If I think through the significant RFPs that we have outstanding, we talked about the Colorado near-term plan, which the commission's looking at, approving in tranches. But we should have visibility on that as we work through the next several months. The SPS RFP for 15 to 3,000 megawatts of nameplate capacity, we already received the bids, and we're working through the analysis of those bids, and the independent monitor will make a filing in Q2, so we'll have visibility on that opportunity.
Speaker #2: If I think through the significant RFPs that we have outstanding, we talked about the Colorado near-term plan, which the commission is looking at approving in tranches.
Speaker #2: But we should have visibility on that as we work through the next several months. The SPS RFP for 15 to 3,000 megawatts of nameplate bids.
Speaker #2: analysis of those bids and the independent capacity, we already received the monitor will make a filing in And what we're working through the Q2.
Speaker #2: So we'll have visibility on that opportunity. And then the significant opportunity in Minnesota with 4,100 megawatts of renewables, all in service by 2030, to really capture the tax customer.
Brian Van Abel: And then the significant opportunity in Minnesota, with 4,100 megawatts of renewables, all in service by 2030, to really capture the tax benefits for the benefit of our customer. And so those were. That's likely a filing later this year. So you'll have visibility, but certainly not regulatory approval on that. But that's a really important filing as we think about accelerating projects for our benefits of our customers in the Midwest. So that's kind of the generation side on the current outstanding RFPs. We just earlier this week received approval of a 765 kV transmission line in SPP, in SPS, set $1.5 billion for a 765 kV line. So clearly, we'll roll that into our plan. That's COD by the end of 2030, all within our five-year plan.
Brian Van Abel: And then the significant opportunity in Minnesota, with 4,100 megawatts of renewables, all in service by 2030, to really capture the tax benefits for the benefit of our customer. And so those were. That's likely a filing later this year. So you'll have visibility, but certainly not regulatory approval on that. But that's a really important filing as we think about accelerating projects for our benefits of our customers in the Midwest. So that's kind of the generation side on the current outstanding RFPs. We just earlier this week received approval of a 765 kV transmission line in SPP, in SPS, set $1.5 billion for a 765 kV line. So clearly, we'll roll that into our plan. That's COD by the end of 2030, all within our five-year plan.
Speaker #2: benefits for the benefit of our And so those were that's likely a filing later this year. So you'll have visibility, but certainly accelerating projects for our So that's kind of the not regulatory approval on that.
Speaker #2: generation side. On the But current outstanding week received approval of a RFPs. 765 kV transmission line We just this earlier this in SPP. In 765 line.
Speaker #2: So, clearly, we'll roll that into our plan. That's COD by the end of 2030, all within our five-year plan. And then we think about all the data center upside we have as we look at bringing on potential data centers and the generation that would come with that.
Brian Van Abel: And then we think about all the data center upside we have as we look at bringing on potential data centers and the generation that would come with that. So, there's a reason why we put a plus next to that $10 billion. We feel really good about these opportunities, and we think about filling in our 2029 and 2030 investment pipeline, and then extending it into 2030 beyond that. So, I don't think there's an upside, a high-end number to put that, beyond we feel really good about these opportunities and the partnership that we talked about with GEV, the data center joint development agreement that we're working on with NextEra, just kind of strengthens that pipeline.
Brian Van Abel: And then we think about all the data center upside we have as we look at bringing on potential data centers and the generation that would come with that. So, there's a reason why we put a plus next to that $10 billion. We feel really good about these opportunities, and we think about filling in our 2029 and 2030 investment pipeline, and then extending it into 2030 beyond that. So, I don't think there's an upside, a high-end number to put that, beyond we feel really good about these opportunities and the partnership that we talked about with GEV, the data center joint development agreement that we're working on with NextEra, just kind of strengthens that pipeline.
Speaker #2: So there's a reason why we put a plus next to that $10 billion. We feel really good about these opportunities. And we think about filling in our 29 and 30 investment pipeline and then extending it into 2030 beyond that.
Speaker #2: So I don't upside a high-end number to put that beyond. We feel really good about these opportunities and the partnership that we talked—GEV, the data center joint development agreement that we're working on with, strengthens that pipeline.
Speaker #2: So I don't upside a high-end number to put that beyond we feel really good about these opportunities and the partnership that we talked GEV, the data center joint development agreement that we're working on with of strengthens that pipeline. Nexterra, just kind And also when we think about these data centers, it's really about driving benefit for our current customers to really important as we think about when we bring forward some of these data center opportunities.
Brian Van Abel: And also, when we think about these data centers, it's really about driving benefit for our current customers, too. Really important as we think about when we bring forward some of these data center opportunities.
Brian Van Abel: And also, when we think about these data centers, it's really about driving benefit for our current customers, too. Really important as we think about when we bring forward some of these data center opportunities.
Nicholas Campanella: Thank you very much. Appreciate you taking these questions.
Nicholas Campanella: Thank you very much. Appreciate you taking these questions.
Speaker #8: much. Thank you very Appreciate you taking these
Speaker #8: questions.
Operator: Your next question comes from the line of Travis Miller from Morningstar. Your line is live.
Operator: Your next question comes from the line of Travis Miller from Morningstar. Your line is live.
Speaker #1: Your next, Miller from Morningstar. Your line question comes from the line of Travis. Travis is live.
Speaker #9: Good morning, everyone. Thank you.
Travis Miller: Good morning, everyone. Thank you.
Travis Miller: Good morning, everyone. Thank you.
Brian Van Abel: Morning, Travis.
Brian Van Abel: Morning, Travis.
Speaker #2: Travis.
Travis Miller: Wonder if you could quickly go over what's the regulatory process for some of these ESAs that either you're signing now or that you're negotiating in the upper Midwest? I understand the Colorado situation, but what about in the upper Midwest?
Speaker #9: Wonder if you could
Travis Miller: Wonder if you could quickly go over what's the regulatory process for some of these ESAs that either you're signing now or that you're negotiating in the upper Midwest? I understand the Colorado situation, but what about in the upper Midwest?
Speaker #9: quickly go over what's the regulatory process for some of these Morning, about with you're negotiating in the upper Midwest, understand the Colorado situation, but what about in the upper Midwest?
Speaker #2: Yeah. announced an additional data center deal just on this call, as regulatory filing in the upper Midwest associated with that. And then commission approval associated with that.
Brian Van Abel: Yeah. So you know, we announced an additional data center deal just on this call, as Bob spoke about in his remarks. There'll be a regulatory filing in the upper Midwest associated with that, and then commission approval associated with that. It's still confidential, so we won't-- we can't speak much about it, but we look forward to bringing those details, and there'll just be a regulatory approval, really important in terms of showing overall benefit. And so think about that. If we have a large load tariff filing in place, we'll align with that large load tariff filing, and that should help from a regulatory approval process. So that's the best way to think about it. Get the large load tariff filings in place, and then move forward with specific ESAs that align with that.
Brian Van Abel: Yeah. So you know, we announced an additional data center deal just on this call, as Bob spoke about in his remarks. There'll be a regulatory filing in the upper Midwest associated with that, and then commission approval associated with that. It's still confidential, so we won't-- we can't speak much about it, but we look forward to bringing those details, and there'll just be a regulatory approval, really important in terms of showing overall benefit. And so think about that. If we have a large load tariff filing in place, we'll align with that large load tariff filing, and that should help from a regulatory approval process. So that's the best way to think about it. Get the large load tariff filings in place, and then move forward with specific ESAs that align with that.
Speaker #2: It's still confidential, so we can't speak much about it. But we look forward to bringing those details and there'll just be a regulatory approval really important in terms of showing overall benefit.
Speaker #2: And so think about filing in place, we'll align with that large that. If we have a large load tariff load tariff filing and that should help from a regulatory approval process.
Speaker #2: So that's the best way to think about it. Get the large load tariff filings in place and
Speaker #2: with that. And Travis,
Bob Frenzel: Travis, those tariffs are in process in Minnesota, Wisconsin, Colorado, Texas..., and I may miss a state in there, but our goal is to get large load tariffs and then sign contracts underneath those tariffs that resemble those, and that should be the sort of regular path for data center contracting.
Bob Frenzel: Travis, those tariffs are in process in Minnesota, Wisconsin, Colorado, Texas..., and I may miss a state in there, but our goal is to get large load tariffs and then sign contracts underneath those tariffs that resemble those, and that should be the sort of regular path for data center contracting.
Speaker #9: Those tariffs are in process in Colorado and Texas. And I may miss a state in there, but our goal is to get large load tariffs and then sign contracts underneath those tariffs in Minnesota and Wisconsin that resemble those.
Speaker #9: And that should be the sort of regular path for data center contracting.
Travis Miller: Okay. Can those data centers come online before those large load tariffs or, or not? It's just under-
Travis Miller: Okay. Can those data centers come online before those large load tariffs or, or not? It's just under-
Speaker #1: Can those data centers come online before those large load
Speaker #1: under in the timing window.
Bob Frenzel: We would-
Bob Frenzel: We would-
Travis Miller: Understanding the timing there.
Travis Miller: Understanding the timing there.
Bob Frenzel: Yes, we would align. And I think it's helpful to understand, we have one data center that's already energized. We have three data centers that are energizing in 2026. And we'll just make sure we align those ESAs with the large load tariff principles. So yes, they can. It's just important, you know, and we've been very clear, not only with our stakeholders, but with our investors, about the importance of those principles and how we manage both benefit for our current customers and manage risk to our customers and the company for these large loads.
Jeremy Tonet: Yes, we would align. And I think it's helpful to understand, we have one data center that's already energized. We have three data centers that are energizing in 2026. And we'll just make sure we align those ESAs with the large load tariff principles. So yes, they can. It's just important, you know, and we've been very clear, not only with our stakeholders, but with our investors, about the importance of those principles and how we manage both benefit for our current customers and manage risk to our customers and the company for these large loads.
Speaker #2: Yes. We
Speaker #2: would align. And I think it's helpful to understand, we have one data center that's already energized. We have three data centers that are energizing in 2026.
Speaker #2: And we just make sure we align those ESAs with the large load tariff It's just important. And we've been very clear not only with our stakeholders, but with our investors about the importance of those principles.
Speaker #2: And how we manage both benefit for our current customers and manage risk to our
Speaker #2: customers and the company for these large
Speaker #2: loads. Okay.
Travis Miller: Okay, got it. Thanks. And then higher level, obviously, hearing a lot around the country, et cetera, about bring your own generation. What's that look like in your area? Are you seeing data centers bringing their own generation, making proposals? And then if you're seeing that, or even if you're anticipating that, what does that mean for your system and reliability? How does that all work together?
Travis Miller: Okay, got it. Thanks. And then higher level, obviously, hearing a lot around the country, et cetera, about bring your own generation. What's that look like in your area? Are you seeing data centers bringing their own generation, making proposals? And then if you're seeing that, or even if you're anticipating that, what does that mean for your system and reliability? How does that all work together?
Speaker #1: Got it. Thanks. And then, how are your
Speaker #1: Level? Obviously, we're hearing a lot around the country about bringing generation. What's that look like in your area? Are you seeing data centers bringing their own generation or making proposals? And then, if you're seeing that, or even if you anticipate seeing that, what does that mean for your system and reliability?
Speaker #1: How does that all work
Speaker #2: Yeah. Hey, Travis, this is Bob. I think the bring your own gen is a maybe a mnemonic construct that is sort of if you're we don't want you to take existing supply out of the stack.
Bob Frenzel: Yeah. Hey, Travis, this is Bob. I think the bring your own gen is maybe a mnemonic construct that is sort of we don't want you to take existing supply out of the stack. It doesn't necessarily mean that data centers are going to show up with their own generation, per se. We think that as you look across the country and the sort of different regulatory frameworks that are out there, you know, we think data centers, by and large, and our conversations with them have affirmed this, that they don't really want to own and operate their own generation. They'd rather have someone own and operate for them. In a deregulated market, that may mean working with a developer to build that generation, sleeve it through a regulated utility and sell it to the customer.
Bob Frenzel: Yeah. Hey, Travis, this is Bob. I think the bring your own gen is maybe a mnemonic construct that is sort of we don't want you to take existing supply out of the stack. It doesn't necessarily mean that data centers are going to show up with their own generation, per se. We think that as you look across the country and the sort of different regulatory frameworks that are out there, you know, we think data centers, by and large, and our conversations with them have affirmed this, that they don't really want to own and operate their own generation. They'd rather have someone own and operate for them. In a deregulated market, that may mean working with a developer to build that generation, sleeve it through a regulated utility and sell it to the customer.
Speaker #2: It doesn't necessarily mean that data centers are going to show up with their own generation per se. We think that as you think as you look across the country and the sort of different regulatory frameworks that are out there, we think data centers by and large in our conversations with them have affirmed this, that they don't really want to own and operate their own generation.
Speaker #2: They'd rather have someone own and operate for them. In a deregulated market, that may mean working with a developer to build that generation, to leave it through a regulated utility, and sell it to the customer.
Speaker #2: That seems a normal path for deregulated market. For our markets, it would be we want to bring incremental generation to the to our networks to support these new large loads.
Bob Frenzel: That seems a normal path for a deregulated market. For our markets, it would be, we want to bring incremental generation to the, to our networks to support these new large loads, and in doing so, when you bring that generation, you price protect your existing customer base from any incremental costs that may come from that new generation. And then the shared benefit comes from taking this big fixed asset, we'll call it the grid, and spreading that across more units of production. And that's where all customers will benefit by bringing large loads in. And if you can protect them from the price side of new generation, which we think we have the capability of in all of our states, I think that's how I think about bring your own generation across the country.
Bob Frenzel: That seems a normal path for a deregulated market. For our markets, it would be, we want to bring incremental generation to the, to our networks to support these new large loads, and in doing so, when you bring that generation, you price protect your existing customer base from any incremental costs that may come from that new generation. And then the shared benefit comes from taking this big fixed asset, we'll call it the grid, and spreading that across more units of production. And that's where all customers will benefit by bringing large loads in. And if you can protect them from the price side of new generation, which we think we have the capability of in all of our states, I think that's how I think about bring your own generation across the country.
Speaker #2: And in doing so, when you bring that generation, you price protect your existing customer base from any incremental costs that may come from that new generation.
Speaker #2: And then the shared benefit comes from taking this big fixed asset—we'll call it the grid—and spreading that across more units of production.
Speaker #2: And that's where all customers will benefit by bringing large loads in. And if you can protect them from the price side of new generation, which we think we have the capability of in all of our states, I think that's how I think about bringing your own generation across the country.
Speaker #2: There will be some people, developers that will build their own generation over time, but we think that's a pretty small set of data center developers in
Bob Frenzel: There will be some people, developers, that will build their own generation over time, but we think that's a pretty small, small set of data center developers and hyperscalers.
Bob Frenzel: There will be some people, developers, that will build their own generation over time, but we think that's a pretty small, small set of data center developers and hyperscalers.
Speaker #2: hyperscalers. Okay.
Travis Miller: Okay, that makes sense. And then one real quick one: The Colorado, if you get that large load tariff in place, is that upside to the 6 gigawatts? I think you had mentioned that you could see more projects or more interest come in once you got that, or is that embedded in the 6 gigawatt?
Travis Miller: Okay, that makes sense. And then one real quick one: The Colorado, if you get that large load tariff in place, is that upside to the 6 gigawatts? I think you had mentioned that you could see more projects or more interest come in once you got that, or is that embedded in the 6 gigawatt?
Speaker #1: That makes sense. And then, one real quick one. For Colorado, if you get that large load tariff in place, is that upside to the 6 gigawatts that you had mentioned? Could you see more projects or more interest come in once you got that?
Speaker #1: Or is that embedded in the 6 gigawatt?
Bob Frenzel: You know, when we think... We have not specified where those-- Well, we have 2 gigawatts under contract. We have not specified those remaining 4, where we're, where they will come from. We have significant interest across all of our service territories and operating companies. I think we're most focused in the upper Midwest in the near term, as we move forward, but interest across all operating companies. And I think, you know, we put that 6 gigawatts out there, but that's through 2027. You don't stop there. You continue to look at how can we drive overall data center development, beyond that. So, I would think, you know, we'll continue to provide updates on that, but it's just we haven't spec-- we haven't given anyone the specificity. We have a large pipeline across all of our territories.
Brian Van Abel: You know, when we think... We have not specified where those-- Well, we have 2 gigawatts under contract. We have not specified those remaining 4, where we're, where they will come from. We have significant interest across all of our service territories and operating companies. I think we're most focused in the upper Midwest in the near term, as we move forward, but interest across all operating companies. And I think, you know, we put that 6 gigawatts out there, but that's through 2027. You don't stop there. You continue to look at how can we drive overall data center development, beyond that. So, I would think, you know, we'll continue to provide updates on that, but it's just we haven't spec-- we haven't given anyone the specificity. We have a large pipeline across all of our territories.
Speaker #2: When we think of we have not specified where those well, we have 2 gigawatts under contract. We have not specified those remaining 4 where they will come from.
Speaker #2: We have significant interest across all of our service territories and operating companies. I think we're most focused in the upper Midwest and the near term.
Speaker #2: As we move forward, there's interest across all operating companies, and I think we put that 6 gigawatts out there, but that's through 2027. You don't stop there.
Speaker #2: You continue to look at how can we drive overall data center development beyond that. So I would think we'll continue to provide updates on that, but it's just we haven't given anyone the specificity.
Speaker #2: We have a large pipeline across all of our
Speaker #2: territories. Sure.
Travis Miller: Sure. Okay, got it. Thanks a bunch.
Travis Miller: Sure. Okay, got it. Thanks a bunch.
Speaker #1: Okay. Got it. Thanks a
Speaker #1: bunch. Your next question comes
Operator: Your next question comes from the line of Paul Patterson from Glenrock Associates. Your line is live.
Operator: Your next question comes from the line of Paul Patterson from Glenrock Associates. Your line is live.
Speaker #4: from the line of Paul Patterson from Glenrock Associates. Your line is live.
Paul Patterson: Hey, good morning.
Paul Patterson: Hey, good morning.
Speaker #5: Hey, good morning.
Speaker #2: Good morning, Paul.
Bob Frenzel: Morning.
Bob Frenzel: Morning.
Paul Patterson: Just wanted to, just had one question left on these PSPSs, these, these power shutoffs and sort of some of the, some of the news that's come out about them on, from the fire districts and from the, and from these lawmakers. Just to-- Could you elaborate a little bit? I know you guys are, are, working hard on this issue, and obviously, it's, it's a safety issue that you guys are focused on. Just any thoughts on this? That we've been seeing a bit of, stuff coming out of Colorado on this.
Speaker #5: Just wanted to just have one question left on these PSPSs, these power shutoffs and sort of some of about them on from the fire districts and from the lawmakers.
Paul Patterson: Just wanted to, just had one question left on these PSPSs, these, these power shutoffs and sort of some of the, some of the news that's come out about them on, from the fire districts and from the, and from these lawmakers. Just to-- Could you elaborate a little bit? I know you guys are, are, working hard on this issue, and obviously, it's, it's a safety issue that you guys are focused on. Just any thoughts on this? That we've been seeing a bit of, stuff coming out of Colorado on this.
Speaker #5: Just to could you elaborate a little bit? I know you guys are working hard on this issue and obviously it's a safety issue that you guys are focused on.
Speaker #5: Any thoughts on this that we've been seeing a bit of stuff coming out of Colorado on
Speaker #5: this? Hey, Paul.
Bob Frenzel: Hey, Paul, it's Bob. Look, let me start with, we are absolutely 100% committed to protecting the communities and our customers from the risk of volatile weather and wildfires. And, we absolutely don't take lightly the need to potentially turn the power off in selected locations, for short periods of time, to protect them. It, it-- we have spent an enormous amount of time, energy, effort, and investment in making our system harder, making our operational intelligence better, and minimizing the scope and the impact and the number of these, these items. And we expect that to continue as we go forward in time. We continue to operate under a wildfire mitigation plan, in, in Colorado and a system reliability plan in Texas.
Bob Frenzel: Hey, Paul, it's Bob. Look, let me start with, we are absolutely 100% committed to protecting the communities and our customers from the risk of volatile weather and wildfires. And, we absolutely don't take lightly the need to potentially turn the power off in selected locations, for short periods of time, to protect them. It, it-- we have spent an enormous amount of time, energy, effort, and investment in making our system harder, making our operational intelligence better, and minimizing the scope and the impact and the number of these, these items. And we expect that to continue as we go forward in time. We continue to operate under a wildfire mitigation plan, in, in Colorado and a system reliability plan in Texas.
Speaker #2: It's Bob. Look, let me start with: we are absolutely 100% committed to protecting the communities and our customers from the risk of volatile weather and wildfires.
Speaker #2: And we absolutely don't take lightly the need to potentially turn the power off in selected locations, for short periods of time, to protect them.
Speaker #2: We have spent an enormous amount of time, energy, effort, and investment in making our system harder, making our operational intelligence better, and minimizing the scope and the impact and the number of these items.
Speaker #2: And we expect that to continue as we go forward in time. We continue to operate under a wildfire mitigation plan in Colorado and a system reliability plan in Texas.
Speaker #2: That's going to help us continue to further segment our system, continue to build out the operational intelligence and the ability to continue to minimize the impact of these occurrences.
Bob Frenzel: That's going to help us continue to further segment our system, continue to build out the operational intelligence, and the ability to continue to minimize the impact of these occurrences. I will share with you, though, that the December outcome in Colorado was some, you know, high winds, and a potentially dangerous situation in Colorado. So we stand by our decision. We took the right action, and all we're trying to do is minimize the impact on our vulnerable customers when we have to do that. And so we're working on a battery pilot for durable medical good customers. We are increasing our collaboration and partnership with our local partners, and we had enormous amounts of support from the broad community, the OEMs, the counties, everybody in the fire districts.
Bob Frenzel: That's going to help us continue to further segment our system, continue to build out the operational intelligence, and the ability to continue to minimize the impact of these occurrences. I will share with you, though, that the December outcome in Colorado was some, you know, high winds, and a potentially dangerous situation in Colorado. So we stand by our decision. We took the right action, and all we're trying to do is minimize the impact on our vulnerable customers when we have to do that. And so we're working on a battery pilot for durable medical good customers. We are increasing our collaboration and partnership with our local partners, and we had enormous amounts of support from the broad community, the OEMs, the counties, everybody in the fire districts.
Speaker #2: I will share with you, though, that the December outcome in Colorado was some high winds and a potentially dangerous situation in Colorado. So we stand by our decision.
Speaker #2: We took the right action. And all we're trying to do is minimize the impact on our vulnerable customers when we have to do that.
Speaker #2: And so we're working on a battery pilot for our durable medical goods customers. We are increasing our collaboration and partnership with our local partners.
Speaker #2: And we had enormous amounts of support from the broad community, the OEMs, the counties, everybody in the fire districts. So we feel good. It's not our preferred choice of action, but we are absolutely going to protect our customers, our communities, from the risk that we cause a catastrophic wildfire.
Bob Frenzel: So we feel good. It's not our preferred choice of action, but we are absolutely going to protect our customers and our communities from the risk that we cause a catastrophic wildfire.
Bob Frenzel: So we feel good. It's not our preferred choice of action, but we are absolutely going to protect our customers and our communities from the risk that we cause a catastrophic wildfire.
Speaker #5: Absolutely. No, I guess my question is sort of like— I guess I'm a little bit surprised by some of this reaction. Is it a communication issue, do you think?
Paul Patterson: Absolutely. No, I guess my question is sort of like, I guess I'm a little bit surprised by sort of some of this reaction. Is it, is it a communication issue, do you think? I mean, I just in terms of-- I mean, obviously, you guys are not, you're not taking this lightly. So I just, you know, in terms of you're doing it to protect people, like. So I guess what, I guess what I'm a little surprised by is this sort of, this, this pushback, or at least, at least the coverage of it. Do you follow what I'm saying? Of, is this an issue of, of, of communication, do you think, that people don't really underst-- That, that's, I promise, that's what my question is.
Paul Patterson: Absolutely. No, I guess my question is sort of like, I guess I'm a little bit surprised by sort of some of this reaction. Is it, is it a communication issue, do you think? I mean, I just in terms of-- I mean, obviously, you guys are not, you're not taking this lightly. So I just, you know, in terms of you're doing it to protect people, like. So I guess what, I guess what I'm a little surprised by is this sort of, this, this pushback, or at least, at least the coverage of it. Do you follow what I'm saying? Of, is this an issue of, of, of communication, do you think, that people don't really underst-- That, that's, I promise, that's what my question is.
Speaker #5: I mean, I just am sort of I mean, obviously, you guys are not taking this lightly. So I just in terms of you're doing it to protect people.
Speaker #5: So I guess what I'm a little surprised by is this sort of this pushback or at least the coverage of it, people, what I'm saying of is this an issue of communication, do you think, that people don't really understand?
Speaker #5: That's what my question
Speaker #5: is. Our year-over-year performance
Bob Frenzel: Our year-over-year performance between, you know, 2024 and 2025 was a remarkable improvement in terms of our coordination, our early warning, and our performance and our restoration times. Certainly room for improvement. We work hard on communication. We work hard on outage maps. We're investing in technology to do that. It's all part of our roadmap. I think one of the challenging things for people just to understand is sometimes you may be in the circuit that gets turned off proactively. Sometimes because of the weather, you might be in a circuit that gets knocked down, that we didn't proactively turn off. And some people are on, some people are off. They don't know why they're on, and they don't know why they're off.
Bob Frenzel: Our year-over-year performance between, you know, 2024 and 2025 was a remarkable improvement in terms of our coordination, our early warning, and our performance and our restoration times. Certainly room for improvement. We work hard on communication. We work hard on outage maps. We're investing in technology to do that. It's all part of our roadmap. I think one of the challenging things for people just to understand is sometimes you may be in the circuit that gets turned off proactively. Sometimes because of the weather, you might be in a circuit that gets knocked down, that we didn't proactively turn off. And some people are on, some people are off. They don't know why they're on, and they don't know why they're off.
Speaker #2: Between 2024 and 2025, there was a remarkable improvement in terms of our coordination, our early warning, our performance, and our restoration times. Certainly, there is still room for improvement.
Speaker #2: We work hard on communication. We work hard on outage maps or investing in technology to do that. It's all part of our roadmap. I think one of the challenging things for people just to understand is sometimes you may be in the circuit that gets turned off proactively.
Speaker #2: Sometimes because of the weather, you might be in a circuit that gets knocked down that we didn't proactively turn off. And some people are on, some people are off.
Speaker #2: They don't know why they're on, and they don't know why they're off. And so we're trying to work through sort of real information sharing with our customers to make sure that we give them the best recovery times and the best reasons for why they may be out in a certain situation.
Bob Frenzel: So we're trying to work through sort of real information sharing with our customers to make sure that we give them the best recovery times and the best reasons for why they may be out in a certain situation, and again, trying to minimize all of those as they happen.
Bob Frenzel: So we're trying to work through sort of real information sharing with our customers to make sure that we give them the best recovery times and the best reasons for why they may be out in a certain situation, and again, trying to minimize all of those as they happen.
Speaker #2: And again, trying to minimize all of those as they
Speaker #2: happen. Okay.
Paul Patterson: Okay, great. Awesome. Thanks so much.
Paul Patterson: Okay, great. Awesome. Thanks so much.
Speaker #5: Great. Awesome. Thanks so much.
Speaker #2: Thank
Speaker #2: you. So
Bob Frenzel: Thank you.
Bob Frenzel: Thank you.
Operator: There are no further questions. With that, I'd like to turn the call over to CFO Brian Van Abel for closing remarks.
Operator: There are no further questions. With that, I'd like to turn the call over to CFO Brian Van Abel for closing remarks.
Speaker #4: there are no further questions. And with that, I'd like to turn the call over to CFO Brian Van Abel for closing remarks.
Speaker #2: Thank you all for participating in our earnings call this morning. Please contact our Investor Relations team with any follow-up questions.
Bob Frenzel: Thank you all for participating in our earnings call this morning. Please contact our investor relations team with any follow-up questions.
Bob Frenzel: Thank you all for participating in our earnings call this morning. Please contact our investor relations team with any follow-up questions.
Operator: That concludes today's meeting. You may disconnect.
Operator: That concludes today's meeting. You may disconnect.
