Q1 2026 OGE Energy Corp Earnings Call

April 29, 2026

Operator: Good day and thank you for standing by. Welcome to OGE Energy Corporation 2026 Q1 Earnings and Business Call Update. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Casey Strange, Investor Relations Senior Manager.

Speaker #1: Good day, and thank you for standing by. Welcome to OGE Energy Corporation 2026 first quarter earnings and business call update. At this time, all participants are in listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Operator: You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Casey Strange, Investor Relations Senior Manager.

Speaker #1: I would now like to hand the conference over to your first speaker today, Casey Strange, Investor Relations Senior Manager.

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

Casey Strange: Thank you, Stephanie, good morning, everyone, and welcome to our call. With me today, I have Sean Trauschke, our Chairman, President, and CEO, and Charles Walworth, our CFO. In terms of the call today, we will first hear from Sean, followed by an explanation from Chuck of financial results. Finally, as always, we will answer your questions. I would like to remind you that this conference is being webcast, and you may follow along at OGE.com. In addition, the conference call and accompanying slides will be archived following the call on that same website. Before we begin the presentation, I would like to direct your attention to the Safe Harbor statement regarding forward-looking statements. This is an SEC requirement for financial statements and simply states that we cannot guarantee forward-looking financial results, this is our best estimate to date.

Kelsey Strange: Thank you, Stephanie, good morning, everyone, and welcome to our call. With me today, I have Sean Trauschke, our Chairman, President, and CEO, and Charles Walworth, our CFO. In terms of the call today, we will first hear from Sean, followed by an explanation from Chuck of financial results. Finally, as always, we will answer your questions.

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

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

Kelsey Strange: I would like to remind you that this conference is being webcast, and you may follow along at OGE.com. In addition, the conference call and accompanying slides will be archived following the call on that same website. Before we begin the presentation, I would like to direct your attention to the Safe Harbor statement regarding forward-looking statements.

Speaker #2: Before we begin the presentation, I would like to direct your attention to the Safe Harbor Statement regarding forward-looking statements. This is an SEC requirement for financial statements and simply states that we cannot guarantee forward-looking financial results, but this is our best estimate to date.

Kelsey Strange: This is an SEC requirement for financial statements and simply states that we cannot guarantee forward-looking financial results, this is our best estimate to date. I will now turn the call over to Sean for his opening remarks. Sean?

Speaker #2: I will now turn the call over to Sean for his opening remarks. Sean?

Casey Strange: I will now turn the call over to Sean for his opening remarks. Sean?

Speaker #3: Thank you, Casey. Good morning, everyone. Thank you for joining us on today's call. This morning, we reported consolidated earnings of 24 cents per share, and the first quarter typically represents approximately 10% of our company's earnings for the year.

Sean Trauschke: Thank you, Casey. Good morning, everyone. Thank you for joining us on today's call. This morning, we reported consolidated earnings of $0.24 per share. Q1 typically represents approximately 10% of our company's earnings for the year. Even with milder weather in Q1, we remain confident in our 2026 guidance and in the foundation we're building for 2027 and beyond. Chuck will discuss the Q1 financial results in more detail shortly. Looking forward, our planned actions for the remainder of 2026 are setting the course for the rest of this decade. I'm pleased to let you know in the coming days, we will file long-term special contracts with Google to serve multiple previously announced data centers in Oklahoma with the Oklahoma Corporation Commission.

Speaker #3: Even with milder weather in the first quarter, we remain confident in our 2026 guidance and in the foundation we're building for 2027 and beyond.

Speaker #3: Chuck will discuss the first quarter financial results in more detail shortly. Looking forward, our planned actions for the remainder of 2026 are setting a course for the rest of this decade.

Sean Trauschke: Chuck will discuss the Q1 financial results in more detail shortly. Looking forward, our planned actions for the remainder of 2026 are setting the course for the rest of this decade. I'm pleased to let you know in the coming days, we will file long-term special contracts with Google to serve multiple previously announced data centers in Oklahoma with the Oklahoma Corporation Commission.

Speaker #3: I'm pleased to let you know in the coming days we will file long-term special contracts with Google to serve multiple previously announced data centers in Oklahoma, with the Oklahoma Corporation Commission.

Speaker #3: Google is the customer previously referred to as customer X, and their expected load and ramp rate is consistent with our 2026 IRP. We work closely with Google to ensure broad customer protections including minimum charges, Google loss of pay 100% of the cost to connect to the grid, and its fair share to power the data center sites.

Sean Trauschke: Google is the customer previously referred to as Customer X, and their expected load and ramp rate is consistent with our 2026 IRP. We work closely with Google to ensure broad customer protections, including minimum charges. Google will also pay 100% of the cost to connect to the grid and its fair share to power the data center sites. We've also secured capacity from two solar facilities currently under construction. We look forward to creating similar opportunity for communities in the future as we leverage our low electric rates to drive investment and foster economic growth for many years to come. As discussed last quarter, we are continuing to add generation to a thoughtful, measured approach.

Speaker #3: We've also secured capacity from two solar facilities currently under construction. We look forward to creating similar opportunities for communities in the future as we leverage our low electric rates to drive investment and foster economic growth for many years to come.

Sean Trauschke: We've also secured capacity from two solar facilities currently under construction. We look forward to creating similar opportunity for communities in the future as we leverage our low electric rates to drive investment and foster economic growth for many years to come. As discussed last quarter, we are continuing to add generation to a thoughtful, measured approach.

Speaker #3: As discussed last quarter, we are continuing to add generation to a thoughtful, measured approach. We commissioned the 98-megawatt tinker power plant in February, and expect 450 megawatts of new CTs at Horseshoe Lake to come online in the fourth quarter.

Sean Trauschke: We commissioned the 98 MW Tinker power plant in February and expect 450 MW of new CTs at Horseshoe Lake to come online in Q4, while also breaking ground on two additional 450 MW units. We're still advancing the 300 MW Frontier Energy Storage Project. Including the aforementioned capacity agreements, this 1.7 GW of capacity strengthens our system today and positions us well for continued growth ahead. These investments reflect a disciplined strategy to support customer growth while maintaining reliability and competitive rates. Continuing on the regulatory front, 2026 remains an active year. In Oklahoma, we are finalizing the standalone large load tariff and expect to file it with the Oklahoma Corporation Commission no later than 1 July, providing a clear, durable regulatory path for future large load activity.

Speaker #3: We'll also be breaking ground on two additional 450-megawatt units. And we're still advancing the 300-megawatt frontier energy storage project, so including the aforementioned capacity agreements, this 1.7 gigawatts of capacity strengthens our system today and positions us well for continued growth ahead.

Speaker #3: These investments reflect a disciplined strategy to support customer growth while maintaining reliability and competitive rates. Continuing on the regulatory front, 2026 remains an active year.

Sean Trauschke: These investments reflect a disciplined strategy to support customer growth while maintaining reliability and competitive rates. Continuing on the regulatory front, 2026 remains an active year. In Oklahoma, we are finalizing the standalone large load tariff and expect to file it with the Oklahoma Corporation Commission no later than 1 July, providing a clear, durable regulatory path for future large load activity.

Speaker #3: In Oklahoma, we are finalizing a standalone large low tariff and expect to file it with the Oklahoma Corporation Commission no later than July 1st.

Speaker #3: Providing a clear durable regulatory path for future large load activity. We continue to prepare for a rate review filing later this year, with new rates anticipated in '27.

Sean Trauschke: We continue to prepare for a rate review filing later this year, with new rates anticipated in 2027. In August, we expect pre-approval of the Frontier Energy Storage Project. As projects emerging from the RFP process are selected and negotiated, we also expect to seek pre-approvals on a rolling basis rather than waiting for the full portfolio of projects to be complete. We anticipate filing for these pre-approvals throughout the balance of this year. In October, we expect to complete the acceptance of the notices to construct on directly assigned SPP transmission projects. Taken together, these investments underscore a deliberate, forward-looking strategy to support customer growth and demand. The actions we are taking this year establish a clear foundation for the remainder of the decade while leveraging our low rates as a significant competitive advantage.

Speaker #3: In August, we expect pre-approval of the frontier energy storage project. And this project's emergence from the RFP process we are selected and negotiated, we also expect to seek pre-approvals on a rolling basis rather than waiting for the full portfolio projects to be complete.

Speaker #3: And we anticipate filing for these pre-approvals throughout the balance of this year. In October, we expect to complete the acceptance of the notices to construct on directly assigned SBP transmission projects.

Sean Trauschke: In October, we expect to complete the acceptance of the notices to construct on directly assigned SPP transmission projects. Taken together, these investments underscore a deliberate, forward-looking strategy to support customer growth and demand. The actions we are taking this year establish a clear foundation for the remainder of the decade while leveraging our low rates as a significant competitive advantage.

Speaker #3: So, taken together, these investments underscore a deliberate, forward-looking strategy to support customer growth and demand. The actions we are taking this year establish a clear foundation for the remainder of the decade, while leveraging our low rates as a significant competitive advantage.

Speaker #3: With respect to competitive dynamics, we continue to believe our in-state pricing is a meaningful advantage in driving new business that we will protect. Importantly, we have not seen the type of price escalation some have pointed to in other markets.

Sean Trauschke: With respect to competitive dynamics, we continue to believe our in-state pricing is a meaningful advantage in driving new business that we will protect. Importantly, we have not seen the type of price escalation some have pointed to in other markets, and we have the customer protections, oversight, and regulatory framework in place to ensure it does not develop that way here. Last quarter, I updated you on recognition the company and our team received for our culture, and today I can add another one to that list. In addition to being named a top workplace in Oklahoma, we were recently named a national top workplace by USA Today. We operate in a highly competitive labor market, and it's fulfilling to see our people, our culture, drive results, innovation, and belonging. I couldn't be more proud to work alongside my outstanding colleagues.

Speaker #3: And we have the customer protections oversight and regulatory framework in place to ensure it does not develop that way here. Last quarter, I updated you on recognition.

Sean Trauschke: Last quarter, I updated you on recognition the company and our team received for our culture, and today I can add another one to that list. In addition to being named a top workplace in Oklahoma, we were recently named a national top workplace by USA Today. We operate in a highly competitive labor market, and it's fulfilling to see our people, our culture, drive results, innovation, and belonging. I couldn't be more proud to work alongside my outstanding colleagues.

Speaker #3: The company and our team received for our culture, and today I can add another one to that list. In addition to being named a top workplace in Oklahoma, we were recently named a national top workplace by USA Today.

Speaker #3: We operate in a highly competitive labor market, and it's fulfilling to see our people, our culture, drive results, innovation, and belonging. I couldn't be more proud to work alongside my outstanding colleagues; their commitment to our purpose is evident every day, and continues to drive excellence.

Sean Trauschke: Their commitment to our purpose is evident every day and continues to drive excellence. Our commitment to making Oklahoma and Arkansas better places to live, work, and play drives us to our North Star of delivering reliable electricity at low cost. Again, the steps we're taking in 2026 will set the stage that drives our future success. With that, thank you, and I'll now turn the call over to Chuck. Chuck?

Speaker #3: And our commitment to making Oklahoma and Arkansas better places to live, work, and play drives us to our North Star of delivering reliable electricity at low cost, again, the steps we are taking in '26 will set the stage that drives our future success.

Speaker #3: So with that, thank you, and I'll now turn the call over to Chuck. Chuck?

Speaker #4: Thank you, Sean. Thank you, Casey. Good morning, everyone. I'm pleased to review 2026's first quarter results with you and provide an update on our 2026 financial plan.

Charles Walworth: Thank you, Sean. Thank you, Casey. Good morning, everyone. I'm pleased to review 2026's Q1 results with you and provide an update on our 2026 financial plan. Let's start on slide seven and discuss Q1 results. Consolidated net income was approximately $50 million or $0.24 per diluted share, compared to $63 million or $0.31 per share in the same period of 2025. In our core business, the electric company achieved net income of approximately $58 million or $0.28 per diluted share, compared to $71 million or $0.35 per share in the same period of 2025. The decrease in net income was primarily driven by mild Q1 weather and the timing of O&M year over year, partially offset by lower depreciation and interest expense on assets placed in service.

Speaker #4: Let's start on slide 7 and discuss first quarter results. Consolidated net income was approximately 50 million, or 24 cents per diluted share, compared to 63 million or 31 cents per share in the same period of 2025.

Speaker #4: In our core business, the electric company achieved net income of approximately 58 million, or 28 cents per diluted share, compared to 71 million or 35 cents per share in the same period of 2025.

Charles Walworth: In our core business, the electric company achieved net income of approximately $58 million or $0.28 per diluted share, compared to $71 million or $0.35 per share in the same period of 2025. The decrease in net income was primarily driven by mild Q1 weather and the timing of O&M year over year, partially offset by lower depreciation and interest expense on assets placed in service.

Speaker #4: The decrease in net income was primarily driven by mild first quarter weather and the timing of O&M year over year. Partially offset by lower depreciation in interest expense on assets placed in service.

Speaker #4: The holding company reported a loss of approximately 8 million or 4 cents per diluted share consistent with the prior year. Although first quarter weather was soft, there is plenty of runway left in 2026.

Charles Walworth: The holding company reported a loss of approximately $8 million or $0.04 per diluted share, consistent with the prior year. Although Q1 weather was soft, there is plenty of runway left in 2026. We expect to achieve our consolidated earnings guidance of $2.43 per share with a range of $2.38 to 2.48, assuming normal weather for the balance of the year. Our service area continues to perform well, with customer growth just under 1%. Weather-normalized load was stable year-over-year, reflecting temporary outages at a few large customers, particularly offset by strength in the public authority and oil field sectors. Looking ahead, today's announcement reinforces a meaningful growth tailwind, building on a historically strong trajectory with approximately 24% load growth over the past 5 years. Underlying demand remains healthy, supported by strong local economies and our low-cost, reliable business model.

Speaker #4: We expect to achieve our consolidated earnings guidance of 243 per share with a range of 238 to 248, assuming normal weather for the balance of the year.

Speaker #4: Our service area continues to perform well, with customer growth just under 1%. Weather normalized load was stable year over year, reflecting temporary outages at a few large customers.

Charles Walworth: Weather-normalized load was stable year-over-year, reflecting temporary outages at a few large customers, particularly offset by strength in the public authority and oil field sectors. Looking ahead, today's announcement reinforces a meaningful growth tailwind, building on a historically strong trajectory with approximately 24% load growth over the past 5 years. Underlying demand remains healthy, supported by strong local economies and our low-cost, reliable business model.

Speaker #4: Particularly offset by strength in the public authority and oilfield sectors. Looking ahead, today's announcement reinforces a meaningful growth tailwind, building on a historically strong trajectory with approximately 24% load growth over the past five years.

Speaker #4: Underlying demand remains healthy, supported by strong local economies and our low-cost, reliable business model. Against that backdrop, we continue to see strong momentum across our service area.

Charles Walworth: Against that backdrop, we continue to see strong momentum across our service area. As Sean mentioned, we will file energy service agreements with Google to serve its previously announced data center facilities in Muskogee and Stillwater. This is an important milestone and the result of a disciplined approach to structure, terms, and risk allocation. The addition of a large, high load factor customer allows OG&E to spread fixed system costs over a significantly larger customer base, creating downward pressure on rates for existing customers. Equally important, agreements like these include robust long-term customer protections, including multiyear commitments with minimum charges and exit provisions to mitigate stranded cost risk and strong credit support to fully back customer obligations. Working with Google, we've secured generation capacity from two solar facilities that Google had previously announced and that are currently under construction.

Speaker #4: As Sean mentioned, we will file energy service agreements with Google to serve its previously announced data center facilities in Muskogee and the result of a disciplined approach to structure, terms, and risk allocation.

Speaker #4: The addition of a large high-load factor customer allows OG&E to spread fixed system costs over a significantly larger customer base, creating downward pressure on rates for existing customers.

Charles Walworth: The addition of a large, high load factor customer allows OG&E to spread fixed system costs over a significantly larger customer base, creating downward pressure on rates for existing customers. Equally important, agreements like these include robust long-term customer protections, including multiyear commitments with minimum charges and exit provisions to mitigate stranded cost risk and strong credit support to fully back customer obligations.

Speaker #4: Equally important, agreements like these include robust long-term customer protections, including multi-year commitments with minimum charges and exit provisions to mitigate stranded cost risk. And strong credit support to fully back customer obligations.

Speaker #4: Working with Google, we've secured generation capacity from two solar facilities that Google had previously announced and that are currently under construction. These facilities will provide 600 megawatts of nameplate capacity and we will request pre-approval from both Oklahoma and Arkansas commissions for these CPAs.

Charles Walworth: Working with Google, we've secured generation capacity from two solar facilities that Google had previously announced and that are currently under construction. These facilities will provide 600 MW of nameplate capacity. We will request pre-approval from both Oklahoma and Arkansas commissions for these CPAs. Turning to financing, in April, we completed a debt issuance at the electric utility, which satisfies our financing needs for 2026 under the current plan.

Charles Walworth: These facilities will provide 600 MW of nameplate capacity. We will request pre-approval from both Oklahoma and Arkansas commissions for these CPAs. Turning to financing, in April, we completed a debt issuance at the electric utility, which satisfies our financing needs for 2026 under the current plan. As a reminder, we issued equity late last year to support incremental capital added to our long-term plan, and together, these actions position us well from a balance sheet perspective. We have flexibility between now and May 2027 to exercise the approximately 4.6 million shares in the forward equity agreements. We continue to target credit supportive metrics and expect to maintain FFO to debt around 17% over the planning horizon. Turning briefly to credit, last week, Moody's revised the outlooks for both OGE Energy and OG&E to stable from negative and affirmed all ratings.

Speaker #4: Turning to financing, in April we completed debt issuance at the Electric Utility, which satisfies our financing needs for 2026 under the current plan. As a reminder, we issued equity late last year to support incremental capital added to our long-term plan, and together these actions position us well from a balance sheet perspective.

Charles Walworth: As a reminder, we issued equity late last year to support incremental capital added to our long-term plan, and together, these actions position us well from a balance sheet perspective. We have flexibility between now and May 2027 to exercise the approximately 4.6 million shares in the forward equity agreements. We continue to target credit supportive metrics and expect to maintain FFO to debt around 17% over the planning horizon. Turning briefly to credit, last week, Moody's revised the outlooks for both OGE Energy and OG&E to stable from negative and affirmed all ratings.

Speaker #4: We have flexibility between now and May 2027 to exercise the approximately 4.6 million shares in the forward equity agreements. We continue to target credit-supportive metrics and expect to maintain FFO to debt around 17% over the planning horizon.

Speaker #4: Turning briefly to credit, last week Moody's revised the outlooks for both OGE Energy and OG&E to stable from negative and affirmed all ratings. Moody's cited a generally constructive regulatory framework in Oklahoma and Arkansas including improvements to cost recovery mechanisms.

Charles Walworth: Moody's cited a generally constructive regulatory framework in Oklahoma and Arkansas, including improvements to cost recovery mechanisms. They also pointed to balance sheet actions, including the 2025 equity issuance, as supportive amid a growing capital program. Notably, and consistent with our planning outlook, Moody's lowered the parent level downgrade threshold to 17%. Later this year, we also expect additional clarity on several important projects. In August, we anticipate an order in our Frontier battery storage pre-approval case. This October, we plan to accept final notices to construct from SPP for our direct assign transmission projects. As these projects are approved, we will roll them into our capital plan and communicate our financing strategy just like we did last year. In closing, we remain confident in our financial plan and our ability to execute through 2026.

Speaker #4: They also pointed to balance sheet actions including the 2025 equity issuance as supportive amid a growing capital program. Notably, and consistent with our planning outlook, Moody's lowered the parent level downgrade threshold to 17%.

Speaker #4: Later this year, we also expect additional clarity on several important projects. In August, we anticipate an order in our frontier battery storage pre-approval case and this October we plan to accept final notices to construct from SPP for our direct design transmission projects.

Charles Walworth: In August, we anticipate an order in our Frontier battery storage pre-approval case. This October, we plan to accept final notices to construct from SPP for our direct assign transmission projects. As these projects are approved, we will roll them into our capital plan and communicate our financing strategy just like we did last year. In closing, we remain confident in our financial plan and our ability to execute through 2026.

Speaker #4: As these projects are approved, we will roll them into our capital plan and communicate our financing strategy just like we did last year. In closing, we remain confident in our financial plan and our ability to execute through 2026.

Speaker #4: The actions we're taking this year are setting the foundation for the next five years of results. We're advancing a disciplined strategy that balances customer affordability and prudent investment, supported by a balance sheet that remains a key strength.

Charles Walworth: The actions we're taking this year are setting the foundation for the next 5 years of results. We're advancing a disciplined strategy that balances customer affordability and prudent investment, supported by a balance sheet that remains a key strength. With our financing plan for the year complete, important regulatory filings moving forward, and guidance affirmed, we believe the company is well-positioned to deliver results consistent with our commitments. With that, I'll turn back to Sean, and we'll be happy to take your questions.

Speaker #4: With our financing plan for the year complete, important regulatory filings moving forward, and guidance affirmed, we believe the company is well positioned to deliver results consistent with our commitments.

Speaker #4: With that, I'll turn back to Sean and we'll be happy to take your questions.

Speaker #1: Thank you. At this time, we will conduct the question-and-answer session. As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your questions, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Shar Pourreza. Your line is now open.

Speaker #1: To withdraw your questions, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Shar Pereza.

Speaker #1: Your line is now open.

Speaker #3: Hi, good morning, team. This is Whitney Mutalama on for Shar.

Whitney Nestory Mutalemwa: Hi, good morning, team. This is Whitney Nestory Mutalemwa on for Shar Pourreza.

Speaker #4: Good morning.

Charles Walworth: Good morning.

Whitney Nestory Mutalemwa: Good morning. Just to start off with the legislature process. Since the last update, HB 2992 has moved further along in Oklahoma, and now it explicitly requires separate large load tariff and cost causation protections. Does that legislation materially improve your negotiating position with large load customers, or were you already headed towards that substantially the same framework on your own?

Speaker #3: Just. Good morning. So just to start off with the legislature process, since the last update, HB 2992 has moved further along in Oklahoma and now it explicitly requires separate large load tariffs and cost causation protections.

Speaker #3: Does that legislation materially improve your negotiating position with large load customers? Or were you already headed towards that substantially the same framework on your own?

Speaker #4: Yeah, I would Whitney, this is Sean. I think it's clearly supportive of the direction we've been heading and our discussions with not just Google, but other large load providers.

Sean Trauschke: Yeah, I would, Whitney, this is Sean. I think it's clearly supportive of the direction we've been heading in our discussions with not just Google but other large load providers. Protecting the existing customer base has been paramount to us from day one. I think what's important about the legislation is both of the authors of the legislation in the Senate and the House, we have and had for many years good relationships with them. We all want the same thing. We want the protection for customers, and we want the continued economic development and growth for the state. I think there's great alignment there.

Speaker #4: Protecting the existing customer base has been paramount to us from day one. And I think what's important about the legislation is both of the authors of the legislation and the Senate and the House we have and had for many years good relationships with them.

Speaker #4: And we all want the same thing. We want the protection for customers and we want the continued economic development and growth for the state.

Speaker #4: And so, I think there's great alignment there.

Speaker #3: Of course. Thank you. And just like as a mini follow-up, on the regulation side, obviously you've pointed to an Oklahoma rate case review mid-year and then potentially some Arkansas activity later in the year.

Whitney Nestory Mutalemwa: Of course. Thank you. Just, like, as a mini follow-up, on the regulation side, obviously, you've pointed to an Oklahoma rate case review midyear and then potentially some Arkansas activity later in the year. How are you thinking about just sequencing these, rate filings so that you're preserving that, like, constructive recovery?

Speaker #3: So how are you thinking about just sequencing these rate filings so that you're preserving that constructive recovery but you're also avoiding the perception that large load-driven investment is crowding too much on customer bills at once?

Sean Trauschke: Right

Whitney Nestory Mutalemwa: You're also avoiding the perception that large load-driven investment is crowding too much on customer bills at once?

Speaker #4: Yeah, I think your use of the word 'sequencing' is a good one. We're going to take these bids we're getting back from the RFPs.

Sean Trauschke: Yeah, I think your use of the word sequencing is a good one. We're going to take these bids we're getting back from the RFPs. We're going to look at those and try to file those as quickly as we can. As we said in our remarks, we're not going to provide a full portfolio filing. We're going to file them as the negotiation's complete, and then we're going to have to sequence in there those rate filings in Oklahoma and Arkansas as well. There's a full agenda for sure. Again, our intention around the large load tariff is to actually protect those customers.

Speaker #4: We're going to look at those and try to file those as quickly as we can, as we said in our remarks. We're not going to provide a full portfolio filing.

Speaker #4: We're going to file them as negotiations complete and then we're going to have to sequence in there those rate filings in Oklahoma and Arkansas as well.

Speaker #4: So, there's a full agenda for sure, but again, our intention around the large load tariff is to actually protect those customers.

Whitney Nestory Mutalemwa: All right. Sounds good. Thank you, gentlemen.

Speaker #3: Of course. Sounds good. Thank you, gentlemen.

Speaker #4: Thank you.

Sean Trauschke: Thank you.

Speaker #1: Thank you. Our next call is Nicholas Campanella of Barclays. Your line is now open.

Operator: Thank you. Our next call is Nicholas Campanella of Barclays. Your line is now open.

Michael Brown: Well, this is Michael Brown on for Nicholas Campanella. My first question is, since you haven't filed the large load tariff yet, can you discuss what you're looking for in this tariff and what type of upfront capital commitments would you be requiring for your customers? How can that kind of change your financing needs?

Speaker #5: Hello, this is Michael Brown on for Nicholas Campanella. My first question is, since you haven't filed the large load tariff yet, can you discuss what you're looking for in this tariff and what type of upfront capital commitments would you be requiring for your customers?

Speaker #5: And how can that kind of change your financing needs?

Speaker #4: Yeah, Michael, I didn't get the middle part of that you phased out there. You talked about capital commitments. Can you repeat that?

Sean Trauschke: Yeah. Michael, I didn't get the middle part of that you phased out there. You talked about capital commitments. Can you say that?

Michael Brown: Yeah

Sean Trauschke: Repeat that?

Michael Brown: Yeah

Sean Trauschke: Repeat that?

Speaker #5: Okay. Since you haven't filed a large load tariff yet, can you discuss what you're looking for in this tariff and what type of upfront capital commitments would you be requiring for your customers?

Michael Brown: Okay. Since you haven't filed a large load tariff yet, can you discuss what you're looking for in this tariff and what type of upfront capital commitments would you be requiring for your customers?

Speaker #5: And.

Speaker #4: Yeah.

Sean Trauschke: Yeah

Michael Brown: How can that change your financing needs?

Speaker #5: How can that change your financing needs?

Speaker #4: Yeah, so I think we would fully expect any large load customer to pay all those kayak payments, make those in advance. I think our tariff is consistent with the legislation in terms of looking for contract terms and security.

Sean Trauschke: I think we would fully expect any large load customer to pay all those CIAC payments, make those in advance. You know, I think our tariff is consistent with the legislation in terms of looking for contract terms and security, looking for pricing structures and charge allocations such that you do preserve or protect the existing customer base. You know, really setting a threshold around service eligibility in terms of what is a large load. You know, is it 75 MW? Is it 100 MW? Things like that. That's how we're thinking about it. And in terms of the initial upfront, the connection to our system, that wouldn't really change our financing plans.

Speaker #4: Looking for pricing structures and charge allocations such that you do preserve or protect the existing customer base. And really setting a threshold around service eligibility in terms of what is a large load.

Sean Trauschke: You know, really setting a threshold around service eligibility in terms of what is a large load. You know, is it 75 MW? Is it 100 MW? Things like that. That's how we're thinking about it. And in terms of the initial upfront, the connection to our system, that wouldn't really change our financing plans.

Speaker #4: Is it 75 megawatts? Is it 100 megawatts? Things like that. But that's how we're thinking about it. And in terms of the initial upfront, the connection to our system, that wouldn't really change our financing plans.

Speaker #4: Obviously, as we begin adding additional resources to serve this load, that will change our financing plan. And as Chuck mentioned, once we get that approved, he'll share with you exactly how he's going to finance that.

Sean Trauschke: Obviously, as we begin adding additional resources to serve this load, you know, that will change our financing plan. As Chuck mentioned, once we get that approved, he'll share with you exactly how he's going to finance that.

Speaker #5: When taking my next question is, when taking into account the multifaceted piece of the upside with Google, the transmission, and the IRP, how are you thinking about the impacts to your EPS CAGR and when you would be ready to communicate the new plan to investors?

Michael Brown: My next question is, when taking into account the multifaceted piece of the upside with Google, the transmission, and the IRP, how are you thinking about the impacts to your EPS CAGR and when you would be ready to communicate the new plan to investors?

Speaker #4: Yeah, Michael, this is Chuck. It's going to be just like the playbook that we did last year. So these catalysts are some are coming this year and then some coming maybe early next year.

Charles Walworth: Yeah, Michael, this is Chuck. you know, it's gonna be just like the playbook that we did last year. you know, these catalysts are, you know, some are coming this year, some coming maybe early next year. In terms of the transmission, we should have line of sight to that by Q4 of this year, and that's a, you know, pretty substantial opportunity. Coupled with the Frontier battery case as well. As soon as that's buttoned up in terms of having an order on that, we'll be prepared to layer that into our plan and discuss financing and how that impacts our earnings as well. Again, it's, you know, it's not just a this year event, right?

Speaker #4: But in terms of the transmission, we should have line of sight to that by Q4 of this year. And that's a pretty substantial opportunity.

Speaker #4: And then coupled with the frontier battery case as well. So as soon as that's buttoned up in terms of having an order on that, we'll be prepared to layer that into our plan and discuss financing and then how that impacts earnings as well.

Charles Walworth: Coupled with the Frontier battery case as well. As soon as that's buttoned up in terms of having an order on that, we'll be prepared to layer that into our plan and discuss financing and how that impacts our earnings as well. Again, it's, you know, it's not just a this year event, right? I mean, those are two big opportunities. You know, that'll be shortly followed by the outcome of the generation RFP as well.

Speaker #4: But again, it's not just a this year event, right? I mean, so those are two big opportunities. But then that'll be shortly followed by the outcome of the generation RFP as well.

Charles Walworth: I mean, those are two big opportunities. You know, that'll be shortly followed by the outcome of the generation RFP as well.

Michael Brown: My last question is, can you provide the short-term and long-term load update?

Speaker #5: My last question is, can you provide the short-term and long-term load update?

Speaker #4: Yeah, so in terms of short-term, we maintain our guidance for the year at 4 to 6 percent. And then longer-term, that's going to be we haven't given guidance on that.

Charles Walworth: In terms of short term, we maintain our guidance for the year at 4% to 6%. Longer term, you know, we haven't given guidance on that. Clearly from this Google announcement and the knowledge that it was previously Customer X, which was basically a gig in our plan by 2031, you know, in relation to, you know, our system were, you know, somewhere just under a 7 gig system. You know, I think that can kind of give you an order of magnitude in terms of the size of this.

Speaker #4: But clearly, from this Google announcement, and the knowledge that it was previously customer X, which was basically a gig in our plan by 2031, in relation to our system, we're somewhere just under a seven-gig system.

Speaker #4: And I think that can kind of give you an order of magnitude in terms of the size of this.

Michael Brown: Thank you.

Speaker #5: Thank you.

Speaker #1: Thank you. Thank you. Our next call is from Julianne Dumoulin-Smith of Jefferies. Your line is now open.

Operator: Thank you. Thank you. Our next call is from Julien Dumoulin-Smith of Jefferies. Your line is now open.

Julien Dumoulin-Smith: Hey, good morning, Sean, team. Thank you guys very much for the time. I appreciate it.

Speaker #6: Hey, good morning, Sean, team. Thank you guys very much for the time. I appreciate it.

Speaker #4: Hey, good morning, Julian. I got to tell you, Stephanie's doing a great job with the name. She nailed yours. She named Shar. She's doing a great job.

Charles Walworth: Hey, good morning, Julien. I gotta tell you, Stephanie's.

Julien Dumoulin-Smith: Hey

Charles Walworth: Doing a great job with the names. She nailed yours. She named Shar. She's doing a great job.

Speaker #6: Absolutely. I appreciate it very much. Very kind. Well, look, let me take it from the top here. I mean, let me ask you. I mean, the 5 to 7 here, how are you thinking about that?

Julien Dumoulin-Smith: Absolutely. I appreciate it very much. It's very kind. Well, look, let me take it from the top here. I mean, let me ask you. I mean, the 5 to 7 here, how are you thinking about that? You're ready to top end through, you know, 2028 into the base plan, and right, you've got this incremental Frontier, you've got this SPP transmission, in theory, you've got RFP participation, right? You know, and again, I suppose that that's a little bit of an unknown in terms of how far that goes. You want to remind us here, I mean, I didn't hear in your script any comment about 5 to 7. I, you know, I don't mean to needle you here, but it seems like it might have been slightly omitted here.

Speaker #6: You're ready at the top end through 28 into the base plan. And right, you've got this incremental frontier. You've got this SPP transmission. And then in theory, then you've got RFP participation, right?

Speaker #6: So and again, I suppose that's a little bit of an unknown in terms of how far that goes. But you want to remind us here.

Julien Dumoulin-Smith: You know, and again, I suppose that that's a little bit of an unknown in terms of how far that goes. You want to remind us here, I mean, I didn't hear in your script any comment about 5 to 7. I, you know, I don't mean to needle you here, but it seems like it might have been slightly omitted here.

Speaker #6: I mean, I didn't hear in your script any comment about 5 to 7. So I don't mean to needle you here, but it seems like it might have been slightly omitted here.

Speaker #4: Yeah, hey, Julian, this is Chuck. Thanks for the opportunity to address that. So you're right. I mean, we didn't mention that because it's unchanged in the near term.

Charles Walworth: Yeah. Hey, hey, Julien, this is Chuck. Thanks for the opportunity to address that. You're right. I mean, we didn't mention that because it's unchanged in the near term. You know, 5 to 7 and pointing to the upper end, upper half of that through the next few years. You know, really, the catalyst that we're talking about, those are gonna take us beyond that period, right? I think your, you know, your observation is spot on, that this really allows us to extend that runway. Again, you know, keeping with our tone and philosophy, you know, we're not really gonna get into that until those projects are rolled into the capital plan.

Speaker #4: So 5 to 7 and pointing to the upper end, upper half of that through the next few years. But really, the catalyst that we're talking about, those are going to take us beyond that period, right?

Speaker #4: So I think your observation is spot on that this really allows us to extend that runway. But again, keeping with our tone and philosophy, we're not really going to get into that until those projects are rolled into the capital plan.

Charles Walworth: I think your, you know, your observation is spot on, that this really allows us to extend that runway. Again, you know, keeping with our tone and philosophy, you know, we're not really gonna get into that until those projects are rolled into the capital plan. Clearly those catalysts are out there to extend that expectation.

Charles Walworth: Clearly those catalysts are out there to extend that expectation.

Speaker #4: But clearly, those catalysts are out there. To extend that expectation.

Speaker #6: Right. Absolutely. And actually, Chuck, just sticking with the focus here on the financing plan, how do you think about this Moody's FO to debt threshold, right?

Julien Dumoulin-Smith: Right. Absolutely. actually, Chuck, sticking with the focus here on the financing plan, how do you think about this Moody's FFO to debt threshold? kudos finally getting that done. I know it's been in the cards for some time, getting that thing down to 17 from 18. You guys didn't blink. You held your line here. How should we think about the common equity needed to fund the incremental CapEx above the base plan? How do you think about that now and here? How do you think about JSNs at this point? again, obviously kudos on the move here in creating capacity.

Speaker #6: I mean, kudos on finally getting that done. I know it's been in the cards for some time, getting that thing down to 17 from 18.

Speaker #6: You guys didn't blink. You held your line here. But how should we think about the common equity needed to fund the incremental CapEx above the base plan?

Julien Dumoulin-Smith: You held your line here. How should we think about the common equity needed to fund the incremental CapEx above the base plan? How do you think about that now and here? How do you think about JSNs at this point? again, obviously kudos on the move here in creating capacity.

Speaker #6: I mean, how do you think about that now and here? How do you think about JSNs at this point? But again, obviously, kudos on the move here in creating capacity.

Speaker #4: Yeah, thanks for that comment, Julian. Yeah, I mean, it is great confirmation of our plan. But again, I think it didn't just happen overnight.

Charles Walworth: Yeah. Thanks for that comment, Julien. Yeah, I mean, it is great confirmation of our plan. You know, again, I, you know, I think, you know, it didn't just happen overnight. It's, you know, I think underlying that is our long-term track record. You know, that means the onus is on us to extend that track record into the future and be prudent in that aspect. You know, still means we got a lot to live up to, right? Clearly, I think coming at this point when we've got these large opportunities in front of us, you know, that coupled with our reaffirmed balance sheet strength, you know, that's just, you know, it's like a multiplier effect, right?

Speaker #4: I think underlying that is our long-term track record. And so that means the onus is on us to extend that track record into the future and be prudent in that aspect.

Speaker #4: So it still means we got a lot to live up to, right? But clearly, I think coming at this point when we've got these large opportunities in front of us, that coupled with our reaffirmed balance sheet strength, that's just it's like a multiplier effect, right?

Charles Walworth: You know, still means we got a lot to live up to, right? Clearly, I think coming at this point when we've got these large opportunities in front of us, you know, that coupled with our reaffirmed balance sheet strength, you know, that's just, you know, it's like a multiplier effect, right?

Speaker #4: So yeah, really, really pleased with that. And it's just great timing from that standpoint. In terms of your question about forms of equity, look, I mean, we've always maintained that we've got the full toolbox at our disposal.

Charles Walworth: Yeah, really pleased with that and it's just great timing from that standpoint. In terms of, you know, your question about, you know, forms of equity, look, I mean, we've always maintained that, you know, we've got the full toolbox at our disposal. We thought it was very important to do common equity next year. You know, when it comes time for the next round, you know, we'll evaluate that in the context of the market at that time, and we'll, you know, do what's right.

Speaker #4: We thought it was very important to do common equity next year. When it comes time for the next round, we'll evaluate that in the context of the market at that time.

Speaker #4: And we'll do what's right.

Speaker #6: Awesome. Excellent. And then if I can go back a little bit on what you were alluding to earlier, but I just want to clarify this, right?

Julien Dumoulin-Smith: Awesome. Excellent. Then if I can go back a little bit on what you were alluding to earlier, but I just want to clarify this, right? You know, obviously kudos on translating Google into a formalized construct. I feel like that's been in the cards for a little bit here. How do you think about the total gigawatts that are incurred there and the opportunity here? I just want to make sure we're hearing this right here. Inasmuch as, what is the ramp in gigawatts relative to what you guys have discussed previously? Is there something incremental to this, call it 1.9 gigawatts, if I'm adding it up right? I mean, there's a few different ways to read it.

Speaker #6: You obviously kudos on translating Google into a formalized construct. I feel like that's been in the cards for a little bit here. How do you think about the total gigawatts that are incurred there in the opportunity here?

Speaker #6: I just want to make sure we're hearing this right here. And as much as what is the ramp in gigawatts relative to what you guys have discussed previously?

Julien Dumoulin-Smith: I just want to make sure we're hearing this right here. Inasmuch as, what is the ramp in gigawatts relative to what you guys have discussed previously? Is there something incremental to this, call it 1.9 gigawatts, if I'm adding it up right? I mean, there's a few different ways to read it.

Speaker #6: Is there something incremental to this, call it 1.9 gigawatts, if I'm adding it up right? I mean, there's a few different ways to read it.

Julien Dumoulin-Smith: Is there something incremental there that one should be considering that would be ownable? I heard the solar comment about, you know, the capacity contracts that would be, you know, a purchase agreement. Beyond the 19, is there something incremental here with Google that we should be cognizant of?

Speaker #6: Is there something incremental there that one should be considering that would be ownable? I heard the solar comment about the capacity contracts that would be a purchase agreement.

Speaker #6: But beyond the 1.9, is there something incremental here with Google that we should be cognizant of?

Speaker #4: So with this announcement, this announcement is consistent with what's in our IRP, okay? So this one by itself is not incremental. It's just consistent with the plan.

Charles Walworth: With this announcement, this announcement is consistent with what's in our IRP, okay? You know, this one by itself is not incremental. It's just consistent with the plan. In terms of the solar contracts, you know, if you recall, the 1.9 was a winter need. It was the winter of 2031, 2032. You know, the rough math from the SPP is it's gonna be somewhere around a 20% accreditation on solar in the winter. You know, our kinda high level estimate is that's gonna change that 1.9 to a 1.8 for that timeframe. That's just with this contract. You know, obviously anything additional to this would be above and beyond that.

Speaker #4: In terms of the solar contracts, if you recall, the 1.9 was a winter need. It was the winter of '31, '32. And the rough math from the SPP is it's going to be somewhere around a 20% accreditation on solar in the winter.

Charles Walworth: You know, the rough math from the SPP is it's gonna be somewhere around a 20% accreditation on solar in the winter. You know, our kinda high level estimate is that's gonna change that 1.9 to a 1.8 for that timeframe. That's just with this contract. You know, obviously anything additional to this would be above and beyond that.

Speaker #4: So our kind of high-level estimate is that's going to change that 1.9 to a 1.8 for that time frame. But that's just with this contract, obviously, anything additional to this would be above and beyond that.

Speaker #6: Got it. Okay. Excellent. Fair enough. And then just specific, I'd love to hear the cadence of conversations, whether that's expanding Google further or other data center contracts.

Julien Dumoulin-Smith: Got it. Okay. Excellent. Fair, fair enough. Then just specific, I'd love to hear the cadence of conversations, whether that's expanding Google further or other data center contracts. We've heard from some of your peers in adjacent states. Obviously, we saw the Serco update recently. How would you characterize the state of conversations for whether it's further Google expansion or other contracts in as much as you all have been on a roll?

Speaker #6: We've heard from some of your peers in adjacent states. Obviously, we saw this ERCOT update recently. How would you characterize the state of conversations for whether it's a further Google expansion or other contracts, inasmuch as you all have been on a roll?

Charles Walworth: I would characterize it as continuing and consistent.

Speaker #4: I would characterize it as continuing and consistent.

Charles Walworth: I would characterize it as continuing and consistent.

Speaker #6: Okay. All right. Excellent. Well, I'm looking forward to where that goes. Thank you all very much. Appreciate it as always. Sean, team, take care.

Julien Dumoulin-Smith: Okay. All right. Excellent. Well, I'm looking forward to where that goes. Thank you all very much. Appreciate it as always. Sean, team, take care.

Speaker #4: Bye-bye.

Charles Walworth: Bye-bye.

Speaker #7: Thank you. Our next call is from Aiden Kelly of JPMorgan, your line is now open.

Operator: Thank you. Our next call is from Aidan Kelly of JP Morgan. Your line is now open.

Speaker #8: Hey, good morning. Thanks for the time today. I just wanted to go back. Yeah. I just wanted to go back on the large load kind of developments here.

Aidan Kelly: Hey, good morning. Thanks for the time today.

Charles Walworth: Good morning.

Aidan Kelly: I just wanted to, you know, go back. Yeah. Just wanted to go back on, like, the large load kind of developments here, maybe just see if whether you kind of plan to indicate new resources CapEx as they get pre-approved even, or if they wait for full approval to add to the plan.

Speaker #8: And maybe just see whether you kind of plan to indicate new resources, CapEx, as they get pre-approved even, or if they wait for full approval to add to the plan.

Charles Walworth: I'm sorry. I'm not sure I totally follow your question there. Could you repeat that?

Speaker #4: I'm sorry. I'm not sure I totally follow your question there. Could you repeat that?

Charles Walworth: I'm sorry. I'm not sure I totally follow your question there. Could you repeat that?

Aidan Kelly: Like, do you plan to, like, telegraph, like, the new resources CapEx as they get pre-approved?

Speaker #8: Do you plan to telegraph the new resources, CapEx, as they get pre-approved?

Speaker #4: Oh, yes. Yes. 100%. Yeah. Yeah. No, clearly is we are in the middle of an RFP right now. So there's not really any detail.

Charles Walworth: Oh, yes. Yes, 100%.

Aidan Kelly: Okay.

Charles Walworth: Yeah. Yeah. No, no, clearly is. We're, you know, we are in the middle of an RFP right now. You know, there's not really any detail. I mean, the bids haven't even been opened on that yet, but they will be soon. Yeah, once, you know, once those do the evaluation, do the selection, then we'll make the filing. Really, you'll have some, you know, pretty good indication as to what the possibility is, once we make those filings. Then once they're actually formally approved, that's when we'll layer that in. You'll, you know, you'll actually get some pretty good color on that before they're approved.

Speaker #4: I mean, the bids haven't even been opened on that yet, but they will be soon. But yeah, once those do the evaluation, do the selection, then we'll make the filing.

Speaker #4: So really, you'll have some pretty good indication as to what the possibility is once we make those filings. And then once they're actually formally approved, that's when we'll layer that in.

Charles Walworth: Really, you'll have some, you know, pretty good indication as to what the possibility is, once we make those filings. Then once they're actually formally approved, that's when we'll layer that in. You'll, you know, you'll actually get some pretty good color on that before they're approved.

Speaker #4: But you'll actually get some pretty good color on that before they're approved.

Speaker #8: Great. Appreciate the input there. And then just kind of want to go back to the 600 megawatts of nameplate capacity with the solar facilities.

Aidan Kelly: Great. Appreciate the input there. Just kinda wanna go back to the 600 MW of nameplate capacity with the solar facilities. Just like a simple question here. Like, is that in the plan? Is it separate from the IRP filing? Just any color on how that kind of coalesces with the generation opportunities.

Speaker #8: Just like a simple question here, is that in the plan? Is it separate from the IRP filing? Just any color on how that kind of coalesces with the generation opportunities?

Charles Walworth: Yeah, yeah. That's where I was going with on the previous question. It was not included as a resource in the 2026 IRP that showed a need of 1.9. Again, it, since that was a winter number, you know, adjusting for that's going to be, you know, a, you know, lower that to about a 1.8 need. That's kind of the walk forward on that.

Speaker #4: Yeah. So that's where I was going with on that previous question. So it was not in it was not included as a resource in the 2026 IRP that showed a need of 1.9.

Speaker #4: And so again, since that was a winter number, adjusting for that's going to be lower that to about a 1.8 need. So that's kind of the walk forward on that.

Speaker #8: Okay. Got it. That's clear. Appreciate you clarifying all that. I'll leave it there. Thanks.

Aidan Kelly: Okay. Got it. That's clear. Appreciate you clarifying all that. I'll leave it there. Thanks.

Speaker #7: Thank you.

Operator: Thank you.

Speaker #4: Thank you.

Charles Walworth: Thank you.

Speaker #7: Thank you. Our next question is from Paul Freemont of Ladenberg Solomon and Company, your line is now open.

Operator: Thank you. Our next question is from Paul Fremont of Blasingame, Silliman & Company. Your line is now open.

Speaker #9: Hey, thank you very much and congratulations. I guess my questions are sort of mostly focused on the Seminal to Shreveport line. The SPP write-up that came out at the end of last year is suggesting an in-service of mid-2028.

Paul Fremont: Okay. Thank you very much, and congratulations. I guess my questions are sort of mostly focused on the Seminole to Shreveport line. The SPP write-up sort of that came out at the end of last year is suggesting an in-service of mid-2028. Is that sort of a realistic timeframe that this can all be done in, or, you know, should we look for some delay in that?

Speaker #9: Is that sort of a realistic time frame that this can all be done in, or should we look for some delay in that?

Charles Walworth: Paul, it's Chuck. You know, that's part of what we're still, you know, going through. I mean, yes, that was the SPP's date, but that didn't really. That was more of a, you know, from a modeling perspective. That didn't take into account, you know, any expectations on an actual construction timeline. That's part of the process we're going through right now, is firming that up. That's, you know, what we'll have clarity on, you know, by the, you know, early Q4 timeline this year.

Speaker #4: Paul, let's check. That's part of what we're still going through. I mean, yes, that was the SPP's date, but that didn't really that was more of a from a modeling perspective, that didn't take into account any expectations on an actual construction timeline.

Speaker #4: So that's part of the process we're going through right now is firming that up. And that's what we'll have clarity on by the early Q4 timeline this year.

Speaker #9: Great. And would that be built on existing right-of-way, or would you need to sort of put into place new right-of-way?

Julien Dumoulin-Smith: Great. Would that be built on existing right of way, or would you need to sort of put into place new rights of way?

Paul Fremont: Great. Would that be built on existing right of way, or would you need to sort of put into place new rights of way?

Speaker #4: So it's new, and so that's part of the process also, is just doing the line routing on that.

Charles Walworth: It's new, and so that's part of the process also is just doing the line routing on that.

Paul Fremont: My understanding is you're still negotiating, certain things, with AEP. Is that how much of the line is gonna be sort of Arkansas versus Oklahoma or what exactly sort of, you know, remains to be negotiated with AEP?

Speaker #9: And my understanding is you're still negotiating certain things with AEP. Is that how much of the line is going to be sort of Arkansas versus Oklahoma, or what exactly sort of remains to be negotiated with AEP?

Speaker #4: So on this one, it's really Oklahoma and then probably Texas into Louisiana, but that's part of what we're working on is where exactly those where that crosses state boundaries.

Charles Walworth: On this one, it's, you know, it's really Oklahoma and then, you know, probably Texas into Louisiana. That's part of what we're working on is, you know, where exactly those, you know, where that crosses state boundaries. That's gonna play into that.

Speaker #4: So that's going to play into that. So still a work in progress.

Paul Fremont: Great.

Charles Walworth: Still a work in progress.

Speaker #9: And then my last question, with respect to the battery, have you determined whether there's an additional equity need that will go with the battery?

Paul Fremont: My last question, with respect to the battery, have you determined whether there's an additional equity need that will go with the battery?

Charles Walworth: Again, we, you know, since it's not approved yet, it's not in our plan, so we'll, you know, we'll do 'cause again, we'll probably have timing clarity on that right around the same time as the transmission. We'll probably take a holistic view of it at that time.

Speaker #4: Again, since it's not approved yet, it's not in our plan, so we'll do it. Because, again, we'll probably have timing clarity on that right around the same time as the transmission.

Speaker #4: So we'll probably take a holistic view of it at that time.

Speaker #9: So then the CapEx update that we should expect is more likely going to be third quarter versus, let's say, second quarter?

Paul Fremont: The CapEx update that we should expect is more likely gonna be Q3 versus, let's say, Q2.

Speaker #4: Yeah. I think that's fair.

Charles Walworth: Yeah. I think that's fair.

Speaker #9: Great. Thank you so much.

Paul Fremont: Great. Thank you so much.

Speaker #7: Thank you. And at this time, we're going to make a final call for questions. If you would like to ask a question, please press *11 on your telephone and wait for your name to be announced.

Operator: Thank you. At this time, we're going to make a final call for questions. If you would like to ask a question, please press star one one on your telephone and wait for your name to be announced. Our next question will come from Stephen D'Ambrisi of RBC Capital Markets. Your line is now open.

Speaker #7: And our next question will come from Steven Dambrese of RBC Capital Markets. Your line is now open.

Stephen D'Ambrisi: Hey, Sean. Hey, Chuck. Thanks for taking my question.

Speaker #10: Hey, Sean. Hey, Chuck. Thanks for taking my questions.

Speaker #4: Hey, good morning, Steve.

Sean Trauschke: Hey, good morning, Steve.

Speaker #10: Good morning. I mean, Julian took like six of them, so I really only have one question left. And I guess what I would say is just given what's happened with some of, call it, the capacity contracts, how do you think your position to effectively win or what percent what are you messaging to the commission and to stakeholders about the benefits of having the potential incremental generation as opposed to working with developers and securing capacity contracts and just the risks and benefits that come with that?

Stephen D'Ambrisi: Good morning. I mean, Julien took like six of them, so I really only have one question left. I guess what I would say is just given what's happened with some of, call it the capacity contracts, how do you think you're positioned to effectively win, you know, or what are you messaging to the commission and to stakeholders about, you know, the benefits of having or own the potential incremental generation as opposed to, you know, working with developers and securing capacity contracts and just the risks and benefits that come with that? Thanks.

Speaker #10: Thanks.

Speaker #4: Yeah. Thanks, Steve. I think we've been consistent. We've certainly had this discussion with the commissions about this. It's our intent to own and operate these assets.

Sean Trauschke: Thanks, Steve. I think we've been consistent. We've certainly had this discussion with the commissions about this. You know, it's our intent to own and operate these assets. You know, there's reasons from time to time to layer in some of these capacity type agreements to kind of bridge you during construction. You know, thinking about some of the severe weather events going back to Winter Storm Uri, there was no doubt that the assets that we owned and we operated ran and performed very well. I think that's what everyone is looking for. It'd be our expectation that we own and operate these assets, whether we build them ourselves or we were to purchase them from somebody.

Speaker #4: There's reasons from time to time to layer in some of these capacity-type agreements to kind of bridge you during construction. But thinking about some of the severe weather events going back to winter storm Yuri, there was no doubt that the assets that we owned and we operated ran.

Sean Trauschke: You know, thinking about some of the severe weather events going back to Winter Storm Uri, there was no doubt that the assets that we owned and we operated ran and performed very well. I think that's what everyone is looking for. It'd be our expectation that we own and operate these assets, whether we build them ourselves or we were to purchase them from somebody. The, I'm not sure it really, we get too excited about the difference there. What we're focused on is making sure that we're the ones, holding the ball, so to speak, when the severe weather comes in.

Speaker #4: And performed very well. And I think that's what everyone is looking for. So it'd be our expectation that we own and operate these assets.

Speaker #4: Whether we build them ourselves or we were to purchase them from somebody, I'm not sure it really we get too excited about the difference there.

Sean Trauschke: The, I'm not sure it really, we get too excited about the difference there. What we're focused on is making sure that we're the ones, holding the ball, so to speak, when the severe weather comes in.

Speaker #4: What we're focused on is making sure that we were the ones holding the ball, so to speak, when the severe weather comes in.

Speaker #10: Okay. Thanks very much. That's all I had. Appreciate the time.

Stephen D'Ambrisi: Okay. Thanks very much. That's all I had. Appreciate the time.

Speaker #4: Thanks, Steve.

Sean Trauschke: Thanks. Thanks, Steve.

Speaker #10: Yep.

Stephen D'Ambrisi: Yep.

Speaker #7: Thank you. This concludes we don't see any additional questions. So this concludes the question and answer session. And I'd like to now turn it back to Sean Trauschke.

Operator: Thank you. This concludes, we don't see any additional questions. This concludes the question and answer session. I'd like to now turn it back to Sean Trauschke.

Speaker #4: Thank you, Stephanie. Great job today. And thank you all for joining us today and for your continued support. Have a great day.

Sean Trauschke: Thank you, Stephanie. Great job today. Thank you all for joining us today and for your continued support. Have a great day.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Q1 2026 OGE Energy Corp Earnings Call

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