ETR - Earnings call transcript Q4 2021

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Operator

0:06 Good day and thank you for standing by. Welcome to the Entergy Fourth Quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. Instructions]. [Operator now Mr. the would your over to today, speaker like I conference hand to X:XX Vice of Abler, Bill President Investor Relations. Mr. Abler, the floor is yours.

Bill Abler

and morning, Good thank joining for X:XX us. you

We release our also presentation, over questions, will review measures release of now, Chairman An effort from and not these will everyone does Drew that slide to results. with non-GAAP who each on earnings our accommodate Leo to ask then CFO, Leo. slide CEO, our request Denault; Entergy's in our found statements. are be Marsh, section forward-looking to our begin call press today we And website. Reconciliations and presentation comments Investor due statements. GAAP discuss SEC filings from update X:XX more can the applicable call, factors, set management to certain statements forward-looking obligation today's any these of and included two materially financial will Entergy differ the In will Actual a turn questions. than Management information. could today's assume which which has Relations forth no I results number in will of to forward-looking both make the are person and

Leo Denault

everyone. Today, for X:XX Thank Bill, are and good successful reporting strong you, results year. we morning, another

navigate proven success delivering the of out to have that the to continued over we are the Our resilient Underlying us raise all in guidance of EEI. health, dedicated, the our Entergy's row such, XXXX value outlooks adjusted IDA stakeholders. day needed that we our success results to guidance continue our built track Because through to predictable $X initiating raised with affirming in at only meaningful we our into hit earnings our our line possible capital of to customers. allows for achieve our and confident customers. that from stakeholders, we financial the headwinds all above we is discipline As day to continue discussions our per and is year billion that steady half sustainable foundation able share in midpoint. is This a by including not in is create and longer-term record, come results guidance top robust could is serve recent the storms, will have through Louisiana. $X.XX, to X:XX financial important are the which working Xth and fund the future range. storms outcomes. Without X This organization and our restoration Laura, have worst including our to is solid ever to in our needed Being

accelerating work collectively order operations greater these key through addressing collaboration headwinds storms those Pete of health, Newark, team significant as expectations, help on unique will to working portfolio and with to by David to new future Officer, actively in renewable sustainability and in more ways Chief we stood Marcio. operationally the energy implement X:XX financially. maintaining and investment by group, we planning, strategic were consider our proved ever headwinds our deliver lost we meet and sustainable while significantly events. is aligned framework, XXXX, X:XX our Ellis. drive organization in that appointed by their clean we are previous our a of Without renewable to customer holistic affordability customers and estimate affordability our They strategies building In could we goals. end capacity XXXX, David Strategically, reliability pandemic and revenues nor expect work find opportunities We Customer their have emissions. the reduce and stakeholder carbon resilience now we storms respond navigate could than as decarbonization our of could continue to managed withstand created and planning the not XXXX, large our result And by internal for capacity. Guided caused development that and are and In presented weather to customers direction decarbonize teams in plan. with We COVID-XX. gigawatts a customers. first to all supply seeking. we double like our to this increase strategically, led financial we plan up XX to reliability, and make needs, small, sustainability better updated to we customers' X:XX a and investments the our customers, long-term the XXXX,

and will first with approved, EWC Palisades, County equity NRC As provide megawatts. while our step nuclear economic We to issued Texas. efficient an the partner. X,XXX this to We the year Solar the to partnership X:XX last flexibility hydrogen our equity utilize this remaining proposed We nearly Orange structure we in received and RFPs plan, renewable completed approval is from this be Station to If for ownership plan Point better ownership capable customers. the We Arkansas. important in last totaling designed facilitate make is which and utility power our Curse part plant. utility owner sell of sold Power tax Indian economics tax option clean the unique will of renewable the This for project help hydrogen. of interest Advanced the over aligning and

by responsibility, This workplace rich development progress Operationally, communities corporate to around belonging social expect is reliability completed Consistent team, standards response, for Brown with with multiple gains and developing improved towards and development and in X:XX efforts our be We in diversity of representation including We environmental received diverse diversity aspects initiatives, female diversity XXXX. and sale great midyear. in both including responsibility our economic new our and led we our hiring. awards distribution reflecting our citizenship, which and strategies recognition many goal the of serve. we X:XX creating the progress, in XXXX the and concluded leadership inclusion workforce business, storm we of for made excellence. Tuan We the expanding workforce organization.

understand achieved and presented highest that historic For output advanced energy transmission, generation In XXXX. Hurricane service the investment its up generators in to We solutions businesses that for ever up caused with usage performance capital here's Advanced improvements team basis. key technology sources. initiative than and meters our than IDA, We by workforce to customer deployed million materials X:XX came to allow timely foundational and reliability We represent focus meters services. and other deployed with led restore a response non-traditional also component the of our of customers reliability. help in further power restoration our challenges, our achieved to work AMI and to innovative Through better we a history. as their grid improve X on XX Gulf control goals. investments largest system from These wrapped more and procured unique and more portable store will improved and its operations, X:XX years. on strategic best and affordability customers The continued in damage recover community meters Grand communities supplies achieve also online. we hard

in our soil pipe to throughout We of Keystone earnings from year. Between structures cost communicated improvements conditions. results the distribution on X/X at million, our top solid were the $XXX sheet driving range. of of ATM recovery. our risk XXXX. equity made adjusted the we used foundation we with pipeline roughly remaining Financially, the strengthen balance program, and business and guidance through what in our new Halten storm in significant We maintained needs half Analyst example, soft For on progress our reduced areas XXXX liquidity progress to Day

Louisiana, more resilient an proceeds coming in than a again challenging highly includes enough. billion circumstances, them Entergy be X:XX securitization agenda of I $X We receive costs. for on LPSC. billion settlement the payment the months, team uncontested down cannot in proved that filed to is expect and under today's which case once to Entire toward IDF $X thank in We

to into that working we our customers, the the future and also is of We to continuing all achieve stakeholders, key communities employees, are to owners. outcomes ensure know for

will for for holistic business achieving to meaningful approach sustainable vibrant, committed a are to We outcomes come. drive years each. This

These EPS combined adjusted forecast billion mechanisms, with regulatory carbon customer-centric emissions. reduce and plan a reliability, investments, continue generation. Our Roughly X/X in growth resilience, profile. will experience. support benefit X:XX to commitment our with and economic capital our capital X% improved and toward growth customers growth X% Our to credit of development. support the customer X-year plan strong to $XX will also

but XX the continue plans that than we XX% beyond And more highly increase growth gigawatts only gigawatts. period, trend fleet. maintaining fleet, XXXX. expect goal this With end to our our to in of longevity our In accelerate several of addition continue and the reduction plan, XX:XX carbon XXXX planning In not will years modernize our with to in achieve this will capital than a That's earlier we intensity XXXX gas portfolio by renewables. our renewable emission-free target. to nuclear ensure the will XXX% service efficient for X

hydrogen online we've in Additionally, hydrogen Advanced the carbon with region our capture. to Orange advantages As generation Station is in both come planned Power capital tremendous plan in County XXXX. of capability, our portions includes the the initial has which discussed, investment expected and XX:XX

and plan customer is $X.X designed utility through projects grids experience and asset totals and focused distribution resilience to deliver renewals Our support enhancements capital reliability, development. The on in improved plan billion.

XX:XX ensure We congestion on while and interconnections. and new new asset will is ready $X.X and will renewables grid customer drive connections. the Projects Our focus for reliability expansion. is customer resilience, billion plan relief also and supporting will also transmission renewal enhancements,

of do base line even to the but plan, better. is our clear have We to intention sight

driven customers be are most areas future resilience investment and the by will for of in customer profile decarbonization. evolving X focus significant our Our The meeting coming increasingly needs. years

with XX:XX to with for $X conferences to technical and with can identified we'll billion but in Initially potential support customers those be this coming investment, storm that regulators. years, and customers aggressive significantly which resilience with invested Over through events, seed our spring, summer the time which have objectives. for billion costs. sense weather $XX damage subsequently what could it's out our for goal makes filings review and mitigate to intensity help speed months, have resilience through preliminarily their of accelerate frequency our will make so We future increasing our late will investments. this for of and we the between for decarbonization share map resilience investments targeted accelerated, information the a We've we with that

support further doing in nuclear to large our renewable as fleet emissions. decarbonization are cleanest fleets previously the our significant X X part their the have the operation We and capacity large-scale us generating I country. of of continued And mentioned, will allow today scope of to goals reduce with the addition

we working for meeting a will environmental they We many clean the X that so to meet they green not objectives. further XX:XX our tariffs with our as provide their enough our deployment. energy By needs, are be can customers products But need, customers. their scope such accelerate of renewable in reduction emissions can

Some are Scope emissions. is also emissions. reduce lower to Electrification way those X their to ways looking efficient for an

load, their Given as plans true megawatts U.S. from of with commitment of to additions new new industrial we will largest-ever and need support with to plants Mississippi addressable and Entergy years. decarbonize base customers green are with recruiting processes XX:XX new presents X,XXX give existing edge sales. of XX:XX additional These recently is reduce electrified with gas to the who X,XXX by resources state's The for Edge, their customers developed meet Sempra, XX the exceptional green importance XXX% Steel is has renewable XX:XX could be Understanding nearly objectives. As facility EEI, is Entergy. for announced if jobs, XXXX. plan in energy. represents the as processes helping significant This next the drive national add to emissions their to X levels, X new true public megawatts economic our an also with sales which megawatts like the and commissioners. energy the of supplied could size footprint that Entergy hours of talked carbon state. of their the renewable over market renewables clean a development opportunity our energy and who for Mississippi its customers It energy alone replace Mississippi much capacity industry about new as expansion governor as the to renewable attracting at and an service customers well called drawn terawatt aging strategy making praise XXX

to work our the of continue We their with customers and size pace needs. determine to

to and was insights, latest growth. forecasts the along reflect ensure that we'll the plans XX:XX one opportunity built our Entergy. customer that we steady an predictable way. for you successful We is financial updated another business. exciting unique and This XXXX into keep us resource on will the that from and delivered is We including Entergy year resilience for our benefited commitments, our

years. next have We a significant with certainty plan X over solid the

Beyond York I'm host sustainability base in renewable City. the come. benefits to Entergy's significant business generation, will our a electrification to our ensure of extend that Day June turn over to XX:XX resilience we our which decades Analyst our on will it will deliver This New and plan, I clean runway XX will Drew, of stakeholders, for Before in excited announce growth. other at opportunities serve of many growth minimum acceleration for all to

We we give you of our the we view will on significant conversation ahead, will the outlook. X-year opportunities that continue a and see

I'll to call for tuned our turn more stay So who details. review financial Drew, now results outlook. will our XX:XX the over and

Andrew Marsh

you, Thank morning, Leo. XX:XX Good everyone.

are results built are guidance We range. Leo executed results said, on validation year business. of we've in today, our reporting As XXXX throughout the deliverables a of strong the the half and top our key resilience into our we

XX:XX $X.XX We drivers on our our are XXXX we begin Slide and deliver the of on results than outlook. XXXX. we for confident then adjusted our for discussing for and overview that XXXX. continue by key business XXXX commitments, was EPS and X. Starting initiating guidance to confirming longer-term an XXXX XXXX and Entergy and provide XXXX I'll $X.XX higher are will

Turning to Slide X.

Our for were COVID-XX resilience, sales as companies from earnings rebounded adjusted driven improved by strong operating Industrial growth year reliability operational our efficiency. X% investments the retail was was than through share demand for across benefit Weather low that as sales by well and year. billed customers impacts. sales saw at earnings continued customers. XXXX. higher and higher-than-expected our which customers, growth sales new We X% billed around as per expansion from reduced cogeneration Weather on effect keep rates helps $X.XX the growth from

of tax by the XXXX you reflect use weather On EWC were payments Slide last based Non-capital for were EWC to pending middle Coming much those year business. to customer-centric are power and million, more decrease, large year-end. and contributed down summarized $XXX at XX:XX wind temperatures billing higher by at mitigate of the of costs $X.XX. we purchase sale a To flow Starting $X.X cycle. Slide which offset. for significant of increased the on lower of the and result payments, revenues highs you, following Slide new webcast business. which complete We the which our X, Moving record the and cash When take utility before updated update our was XX:XX revenue interest, levels normal appendix our reductions to largely billion, yet reflects flex XXXX, help year first our to to the revenues of operating negative exit XXXX calendar the methodology. Results were utility higher the also AMI returned XX. driver last view results, account December significant built the program merchant infrastructure income lower on storm fuel than more not Our has a versus slightly the was drivers partial impact that provided presentation lower of impact be investments. into would our sales to quarter year. estimates estimated continued to X while back the expect our and for COVID-XX. on from weather quarter with the XX:XX to Palisade We from year's effect O&M weather depreciation also XX:XX will were close saw the of used

the rating expectations agency expect to continue meet end metrics that or XXXX. to exceed of by We achieve credit

several $X to and of on storm to the upgrade financing settlement At in regulation unanimous long-term with submitted the Texas rating which on a and at for Entergy additional Take Entergy Mississippi benefits on company allows expect or agenda billion which an the the Entergy Louisiana, season. citing the for riders against return positive to progress hurricane today, as business earn in decides to the same constructive proceeding, improved determination moved coast meeting. including made and a we bond recovery. of January equity. prepayment credit the attract approval securitization years. we've cost to March Texas derisking a Texas storm the securitization intern cost, storm an recognizes Ida This has includes upgrade while order, reasonable both matters cost factors. received the the we in issuer XXXX Assuming and also ratings recovery past time, storm expect proceeds has issue Moody's bonds XX:XX an And support customers. The regulatory responsive early Solid cost April. reflected lower acquisition from excellent allowed the Entergy the that over to And matter recovery. Moody's capital Arkansas receive LPSC results a minute XX:XX XX. the storm to update outlook today's with before efforts constructive on have provide we

New be hurricane invoice higher hardening also resilience We're as Orleans recovery for have is expect April, as cost filing to around Louisiana its our $X.X cost slightly track We on Entergy billion, well submit additional expectations to Entergy estimates original storm and to followed costs. processing and above resource items, refined midyear. our due by investments completing in

the procedural case. it for pending this receive Our Entergy the of the Louisiana year, Louisiana's schedule goal end securitization of to by Hurricane balance proceeds remains commission's

our increased XXXX, accelerate business is successfully risk actions over of area status XX% to or last reduction result by and improved years. a we obligation. the the have XX:XX Another our pension our several reduced as $XXX funded approximately contributions In of liability the million

to progress rates returns In contributed on can we see equity utilized Slide slightly XXXX, by We've million. XX. against pension sold In flow aftermarket you deficit as asset our cash improvement. Moody's an also in close made strong near-term of common we million higher equity XXXX addition, additional needs decrease interest and remaining equity. $XXX the growth program our pension our our in $XXX further our equity improves reduced and The metric, needs, to

today, growth XXXX original sales. expectation. remain X/X requirement continued remaining growth roughly our the shows of X our Looking $XXX nearly industrial of our through As Slide spreads industrial at of sectors remain supportive of equity the expansion. commodity The shown represent robust. fundamentals the on XX and stands ahead, million, half that XX:XX forward of slide customers The

resilient As and you the or to continues industrial can advantaged. economic highs indicators competitively see, our multiyear be at remain near bench

outlook Our EPS adjusted Slide guidance shown unchanged. and XX remain on

of guidance adjusted of to $X.XX. Our for XXXX EPS range $X.XX midpoint $X.XX the

Our steady, X% plan predictable growth. supports X% annual to

the with depreciation see increases a also The the continue the guidance assets. XXXX with well will with dividend line commensurate result on highlighted straightforward adjusted drivers our we XX key associated of growth. you growth as investments for revenue are what made with we've to expect. Slide in top customer-centric our EPS as line, expense interest expect Starting We new XX:XX and result would and growth as in

sales commercial other disclosures, in sales and on anticipate drivers, in industrial retail X.X% increase slight an with expect basis. including to of sands. typical and decline Consistent weather-adjusted increase reflects due EEI an in residential our increases inflation. O&M a This we also volume in We

efficiencies mitigate storm mentioned, achieve earnings help quarterly including XX:XX of continuous and XXXX successful delivered specific the presentation was of guidance Leo also year. on our and despite to the contains disruption. flex the for another year significant considerations efforts top details company. the in appendix end improvement We changes As We additional sensitivity. results the during drivers, webcast that have on tools The and range

our do to are fundamentals underline working strong which better. growth predictable plan that supports have We even steady, and

As a significant Entergy has unique ahead. and Leo mentioned, opportunity

from our reality for now about months is Partners. and for owners. that We at more into coming now And our our our answer We Entergy team question forward are Shaw you Thank Our our to translating talking focused XX:XX XX:XX employees the available opportunity look to a customers, communities Analyst Day questions. comes first Instructions] over opportunities you. June. [Operator Guggenheim Pourreza these on the of in and

open. is line Your

Constantine Lednev

Constantine year. XX:XX Leo remarks. good team. And comments in Mississippi has mooring and the the great constructs, for that actually upside I consultant here on on resiliency. received factors spending? a It's I recommendation Shaw. the appreciate you and on the believe Do spending bills, prepared early potential quarter the from any Any the Hi, resiliency Congrats an of have? color of the including governing you on on independent it regulatory Is some and early indications have needs? are may what discussions closeout financing

RodWest

XX:XX Yes. is This Rod.

going to the on think I are be state-by-state the early focused discussions analysis. cost benefit

If our about to Leo it. desire you accelerate think resiliency, to alluded

year lion's technical X the Louisiana. the location. about, That's of might the we of hearing going dimensions the terms. we play up planning put various place. in it's the is of of analysis The that believe if in statistical work, acceleration state-by-state Leo and to along general with position around to going doing make in want as show we the of helpful, to the a you in right being each later nuance the being out to, go in play what to up duration talked regulator, got scenarios. you're framing is that's But public the when assumptions subject they differently of in and in think the to jurisdictions. X expect, conference technical to direction –you're that conference to X our actually kind the show where us why have the We we the the order to scenarios early in a now specific the early on alluded stages prelude the the are of kind start what customers is Each You the share storm we'd in the a be those decision intensity, as better them filings on when in. which process, We're a scenarios it of but frequency, is

Constantin Lednev

That's Okay. get funding a factor? applications $XXX applications And in FEMA million, FEMA kind plan? helpful the that if of how would don't for And And with yourself you the XX:XX plans are developed? those of the projects those through? play projects go color. resiliency does fund kind just Or of included those the CapEx

RodWest

before, that be XX:XX comes offset what As we otherwise stated anything from the Fed would customers. helped by to borne

And regulators so ensuring – the remain with going our Feds don't able perspective, contribute, actively involved our federal might storm both assuming to a to plans don't it's we from dynamics, dependent spend. to we offsetting still But assuming that toward forth but could existing it's be costs are funds putting resiliency federal not future that the planning whatever funds. go scenario are whether fans upon forward input we're maximize provide, have

Constantin Lednev

Curious And kudos the great the ATM modest accelerate? quick the cushion some XX:XX mitigating in just team needs to Or remaining Okay. given or equity do your a a the made $XXX the kind plan. for follow-up and of thoughts could of Day. a Analyst a that whole the color. to at for the needs in there on you That's timing 'XX, the event have threshold continuation level. defer progress maybe million on on from materially Is

Andrew Marsh

This is Drew. XX:XX Yes.

to still like mindful we'd are get done. that this We

that put continuing so with in place we that before. to And we the through ATMs work are we

finish that, a block. I to come through you'll out see knock market right any allow think conditions could mindful that fairly and quickly opportunities use if be go to and continue the we of We'll us with along off other framework. us that this ahead it that

So number we're close can attention to smaller. But tell, the as you paying that. much gotten

of And overall. end so us the for insight is sort

Constantin Lednev

Thanks. taking congrats very That’s on for FYXX. and questions helpful the the thank you XX:XX and

Andrew Marsh

Thanks XX:XX Constantin.

Operator

you. Thank XX:XX

Next Tonet line, of JPMorgan. up, we Jeremy have on the

is line open. Your

Jeremy Tonet

XX:XX Hi, good morning.

Leo Denault

Good XX:XX Jeremy. morning,

Jeremy Tonet

wanted Just could. start growth, if on XX:XX loan I to

side. the significant bit could detail the industrial on on Just if little a you more provide growth

I You demand. then commentary a that? trending, how exceed you in provided you to wondering talked But see levels slides. of pre-pandemic some guess, green relative the there about And kind I just to and guess, expectations bit that

you a customer of stand on it green demand if us wondering you this over base could across versus Just does where now time? And kind where how bit months tariff ago? was update little see evolving the more XX that

Andrew Marsh

the let XX:XX I'll I'll green growth, piece talk about Ron and first the loan So this take on tariff. is the Drew.

overall, our my growth do I the are good robust. through industries continues for of the loan remarks, in our in mean, we industrial So than really for places I side main to drivers those some prepared be went our with with And see we Sempra, of are that there. happening nature U.S. the I see the announcements talked as those and low about what's are well of long lot demand our and Steel situated that it we've communities, and evolving. still we But there, sort that's it. customers from to continuing mean, perspective. are is in cost, of all an the you customers Mississippi River, had and still proximity from other today. the Gulf that area are proximity the for a continues result, looking for a attract opportunity and And that. is it there. that a Coast, others generation green in options supportive to outside the for investment at from we available workforce, A clean, to of fundamentals

'XX certainly to out little you lower. ramp But post-pandemic, good. say shift look as a seeing year, and 'XX, electrification into continue But I go it's we opportunity. beyond, seeing you expect that that relative to we're this opportunity. the pretty So what clean to up it are that's as bit we that is electrification wanting And pre-pandemic, to on clean would to that

RodWest

already our their to their comments, underscoring, we for us, made helping the that opportunity our in low our also are to an as And for carbon the customers – with alluded this the underscores What I'll and the early identify efforts we've down internally particular, with Leo U.S. next seeing our We'll how might how taken solar. play at so their well does through we Analyst framework kind nuclear add. and we're his share fleet, play but years There growth those out. pretty of XX customers is for ability a good -- to emitting kind there. mention playing at looking think details simply the in that emissions, objectives. in XXXX great XX:XX public Sempra sector. customers, confident X to come addressable we unique see indicators And Day. commercial we're a smaller to it And that market reduce we XXXX. about of green get inefficient Steel terawatt industrial that to our for to far, think, opportunity of the engage significance plans differently sustainability through out the more help really of saw early a But to have But flow that generation our shadow products, them alluded Day, XX thesis role to and for up to meet indications demand for and gigs the as demand they've hours the we as not there. Analyst are into Leo gas

Andrew Marsh

themes that might are the strokes on Thanks as And Day Analyst the helpful. Analyst other update the for us could there That’s picking XX:XX broad as you maybe provide topics we point Day, up wise? for far front-running there. Without at that. any that expect or

Leo Denault

we of Jeremy, those [Indiscernible] about, a about talked Sempra, you years Analyst always go Rod U.S. think think I desk. and extra XX mentioned, and to going we're for service example, XX opportunities do I at and even if that Day as Steel as XX:XX Well, couple

up of time as 'XX So out beyond you this kind acceleration the and picks really frame. get

major far that talk bit what be think regard. that about the seeing we I we as we'll in what as may theme, a be little -- will the So

So more detail [Technical Difficulty].

Operator

moment, that XX:XX Difficulty]. have please. reason Hello. the One apologized. conference [Technical may you We line, the returned. on shortly. ask will The We speakers

RodWest

right. All XX:XX

So want you I don't to [Indiscernible]… respond know, if Lee, to

Leo Denault

these growth start about you show be the for those was and the that's outlook. XXXX X the out Steel answer. a opportunities and had Think dates current than opportunities, XX:XX electrification and up farther Sempra, about I Analyst years Day. U.S. XXXX are about know and because to go Jeremy, asked and got XXXX facilities. is couple don't that And this you last mentioning interesting we're those time if of that I announcements, if XXXX will from I see to And know the what those beyond. things in-service starting we'll can

does So up outside the that really current balance of start about we're opportunity the talking to case. show the

the be that about. So pieces talking that biggest we'll probably will be

Jeremy Tonet

XX:XX more, in it. one given to With That's just if Gulf, helpful. could. stronger Got regards XXXX. I Grand And operations

provide operations-wise Just of things needed, expectations. And there. looking through in has us, performance improved guess, if update 'XX really update you wondering now kind kind could could improved Just and if how wondering any I this you coming conversations? right of are stakeholder when

Leo Denault

plants outages, Grain that are thing very continue unnoticed the in one highest to Gulf XX:XX goes my nuclear fleet. all associated prepared about that Well, think is equipment that performance already clean the remarks, XXXX. is operations, generation our has jurisdictions. going through it's improved in the to I with I electrification, output future to we the mentioned as important to better of our we development going our be expectation ever facility as as to And nature into upgrade talk economic of our And continue be very, have

some of XX:XX the customers objectives build of that met cleanest we the grid that country, with decarbonization. scope decarbonization of can The have in already lowest of renewables processes the our of these power meets generating by today majority be have. of some it one the we just fleets the out are electrifying rates even As country customers because some using needs the X the in before our objectives

of with important part a nuclear them an have about the being fleet decarbonization. we dialogue lot of the So

So has think we -- states the it's nuclear dialogue significantly future operate. economy the in of its the which of around in changed I in of terms the importance

carbon-free the So it's power. not jurisdictions an It's have load, customers the energy holistic of important the reliability on an going of we're nuclear that that demand to more approach. the but in follows as their a advantage system. And be part and of sustainability system, more the

Jeremy Tonet

one, Actually, last could. XX:XX Got I it. one if

on of the any here. end decade Entergy and module this that that to Just the start updated thoughts plans advanced think if you nuclear towards the could enter small you reactors have

Leo Denault

is of a the the many part make lot I all decarbonization some without mentioned, it kinds point XX:XX energy as Well, nuclear folks get in make nuclear following power. way we where certainly, the And nuclear today, of different of economically viable, of And are development mix the certainly because we'd is to should form carbons have of we after. what is a the everybody most the who through technologies SMR space. to reliable

to become the those to energy as pursue development and economic typically jurisdictions intensity our history benefit we're And board. we high assets rate new So across development. the To proven, open would they following has developments it. economically are viable, jobs, of create certainly extent the

to But early lot on development spend Certainly, say reduction, will government part and given on R&D. time how too a of of the quickly the people there's that sort focus left be the carbon supporting we're lot those done. federal resource become mix. of of a effort So as sure that to making

Jeremy Tonet

very That’s it. Got it Thank leave helpful. XX:XX there. you. I

Leo Denault

XX:XX Jeremy Thank you,

Operator

you. Michael have Thank the Sachs. on next, And line Goldman XX:XX of we

open. is line Your

Michael Lapides

XX:XX Hey, my kind guys, of question. couple and to for you they're Thank each have actually unrelated other. I a taking

Or hydrogen long a frame Is there other construction on all, combined in like frame, XX. it's Orange June is that? normally added? you little time If service, that seems years, than to but to cycles of due not driver May, County First right? bit project, quicker of approval for the being capability some in get time the a May

Leo Denault

stage the there's into bit a at at the hydrogen to cost this XX% side, a nothing little really. approval, the get driver No, it's to regulatory significant mean, work more there's XX:XX by process, these done not capability. or that get like I on early we time stages but anything the get the blend

So nothing ordinary. out a It's the of plant. big

Andrew Marsh

that, instance. expected that line around in given history come of every much in CCGTs pretty time And our say XX:XX the would underneath construction would Michael, I

of end wouldn't would some something was unless going up we in XXXX issue expect I or on. June there else So that other weather-related kind of

Michael Lapides

XX:XX Got it.

statement in the not obviously pipelines unrelated FERC then an you're infrastructure gas building about you, And to matters its Okay. And all emissions. size GHG and but material to build to are who territory service customers other major infrastructure. build petchem-related new your are or trying facilities lots companies who trying of of or anything, projects out either topic, new LNG put energy-related at it policy or pipelines

the longer-term? curious changing new how Just territories what that service process this And infrastructure? see permitting Texas for your you means Louisiana and for gas

RodWest

XX:XX Rod. it's Yes, Michael,

their market our permitting of our a of other through have in advantages we're customer the our the us, them implication industrial of it's as efforts, from view imagine, scope we it all the our help to, supply of resources to point FERC of fits Scope around terms have – them lens condition X sort might this catalyst of aligned ability faster to the of take ruling what's service or view electrify moving for of It we're our advantage acceleration it opportunity extrapolating expanding with might be perhaps whether into through that you base, our just you which customers, in the a their locating, what processes. But closely alluded electrical from for any territory. As to viewing the that's that point of might portend as for decarbonization future. fuels of objective, for the achieve our

how imagine, we proceedings permitting other Sempra thought that that giving they're to most to their as stakeholders those very So how for process. working are ultimately through it And play is out. reason. potential in are But it will we unclear might customers recently as like you applies

Michael Lapides

XX:XX Thank Rod. guys. Got it. you, appreciated Much

Andrew Marsh

Thanks, Michael. XX:XX

Operator

Jonathan next Research. Arnold Thank on And XX:XX line, you. Vertical we of the have

line Your open. is

Jonathan Arnold

good guys. morning, XX:XX Hi,

of done 'XX how one being rate about post that Is reduced raise. in be is 'XX here, equity you doing you've effectively been Just financing. years past? you've sort for of period you a a about could assumption? -- do on raise of capital Drew, something a of think the similar the once quick out Or to been sensible longer-term you think like sort of run talked few to the 'XX business sort I sort you've the done

Andrew Marsh

what lot us good types the XX:XX useful Jonathan, good and and question. capital in of close obviously, equity we've firm a about a idea available to a of liquid you That's is be financing you're market And you what are certain and with to would going quickly. that it gives financing it's get talked a the markets because can situations the

if needs talking what become available options we that that's you're different here are about such long-term so doing beyond very we've XXXX it is a been because And recently out And thinking. need. because a have near-term there

that some strategic markets, that than capital options we've the period, minute. out you might other term, just that's But that there perspective things before, out about you a right perspective. not look to would it's availability. as be so And markets longer not that's capital we talked a available horizon rather thinking are this from necessarily other beyond anything But there about are of be our

Jonathan Arnold

ATM, to straight, the in yet under that's just correct? $XXX the just I've one the are -- yet XX:XX got count, Okay. that did you make so not or million sure this share And Those not settled. shares

Andrew Marsh

XX:XX correct. That's

Jonathan Arnold

one a better learned lessons us then any the County you. reflections tell Liberty that what or maybe went thing. around some project for on Or and just just us other solar Thank Okay. there? Can remind on around? whatever time And next XX:XX use you outcome with

RodWest

project XX:XX pulled terms and inside its they Yes. project commission the It again, where because was in Life the actual recognize more didn't to was the ERCOT. it to unique of implication Liberty view project, not Texas is economy one. Rod. benefits do the of particular how Commission was County had The County, And that with Delivery of the

the full I anything And full project will their necessarily in that send wanted reticence to lack back a to signal so of influential a you And a commission, was want deal. there to to we approve we untoward when the the had the I because with with actually pulled commission commission. it with don't they share come also one,

any of not, We And to But it. in way, so in a time needs the had pull it's it was it our belief there capital, or for decided timing a that RFPs those -- view, in in play does we a our also and Texas us. greater was recognizing robust [Indiscernible] were additional belief and staff to response short projects. the for

with So didn't we to overread but back anything want us. more, to don't come to I you expect --

Jonathan Arnold

that to back other was expect XX:XX it with with No. come [indiscernible]? project, particular or Do you just things

RodWest

to particular timing more there our but needs more than XX:XX there's there's fill might the come with to going that -- one, us be other for to projects. Well, the there, robust opportunity of be a

any into is but give signal the specific won't quite I robust. one, that So pipeline

Jonathan Arnold

you, Great. XX:XX Rod. Thank

Operator

line, on we of next XX:XX Paul America. Bank the have Thank And you. Zimbardo of

Your line open.

Paul Zimbardo

think some about kind up of to hardening mitigate data up purely already leading in I that work of could the points that XX:XX Should don't Or potential talked you acceleration some storm incremental on those capital? of to Analyst need the as we to storm Day. of do capital some other as follow the some plan where around of the hardening? you want

Leo Denault

XX:XX be It's really done. an we've identified acceleration could of things that

could $X.X considering doing around of of resilience So projects could combination that -- the T&D billion space. spending that otherwise we looking that reduce and we we'd things for in [indiscernible] at is example, could space faster We've been investments. a do in out resilient after be in hardening built spend X-year billion billion about current they the new would do outlook, you About we than storm consider there's that storm $X new we $X.X fact the and repairing our to investments then – we're would resilience have schedule. the when the are a the What after as do put well been to with there standards. on of

something that if that that So in incremental as that, years be it done later it time opposed to makes frames like sense, if makes Paul. X sense would the would or be proposed being

Paul Zimbardo

had No, to Arkansas the cap? ability relative broad the I was And comfort inflationary does. just level question pressures, you of about to thinking execute some that's in X% other the clear. it Yes, are how given XX:XX then rate and

Andrew Marsh

XX:XX there. can that Yes, are this to Rod we're out inflation I'll and Drew. is maybe for add issues not been start it. whatever Obviously,

some for And different monitoring the our conducting pressures that piece, our investment setting it it. side, gets acceleration inflation recently seeing And been come we that mean then some of we particularly with in ramping might our while that some but NPVs some very innings customer. And RFPs have are built we're seen been On the collected up the about pressure chain talking underway. already very to of capital XX:XX in when and with O&M else. the Arkansas. cap and to move renewable we're separate seen that strong there. closely. and dealing a of more and all have hinder inflation solar understanding everything that pressure a on broadly spot so are which some the have haven't bit, projects rider we've for They the we're kind bulk And going the in expectations of the XX:XX sort side, early on pieces robust. it supply There's dealing sectors. already we've doesn't fuel in investments. to on we the the side, the projects. been continuous we've a had not in And hearing potential that through the to those we But the improvement still little still it conduct, of we've other have And of more is projects capital expect There's up environment those of that of to have on fuel that's about against the of our help That basis. manage in business. X% The

And we'd offset into in the we and that think the regulators retail things, support from well. them And caps particular. in to as fuel expect with of other get costs Arkansas, kind will fit so

and So don't adjusting anything I and mean immediately manage very see ramping improvement monitoring right we're any to now, we closely real obviously order our in in way. we business don't inflation see continuous it, but challenges. our up

Paul Zimbardo

XX:XX for you that. very much Okay. Thank

Operator

Stephen next Byrd Stanley. line, we have XX:XX on Thank you. Morgan And of the

Stephen Byrd

morning. good Hi, XX:XX

Leo Denault

morning. Good XX:XX

Andrew Marsh

morning. Good XX:XX

Stephen Byrd

good the you operations, NRC. just to been I like speak looks if just dialogue follow up it on questions XX:XX nuclear wondered on there's wanted could with and to Jeremy's improvement And just there.

But of with You're like nuclear the color operations in and give you not dialogue is there any terms on on the NRC are improving. operations? looks Column additional X can

Leo Denault

We only the XX:XX continue to all headquarters license regions, lot a inspector to cetera. around but not the Washington, dialogue certainly have resident et to in levels at operations, transfers, from of the

robust and NRC a when I'd and open last we basis, of meet the over it with region do have inspectors a when So I years, resonant I I'm constructive all a say virtually of the mean open. relationship. on and the met can. site. our commissioners couple a to the continue the course dialogue had I We is to regular relationship of but with very the with on it's and I it's very strong, lot NRC, with

Stephen Byrd

there XX:XX has improvements Understood. of nuclear recognition been of the fleet? of your And in operational sort performance

Leo Denault

Yes. Absolutely. XX:XX

Stephen Byrd

just This question the for the Okay. me. a cost outlook speak bit is XX:XX Could customer And for residential the increase one just but a you billing? many is Great. a just then just you. smaller kind I'm all commodity one last know common But for especially bill outlook, some mutes, than footprint? outlook, could customer is the you what sort to increases outlook percentage I of given bill for curious, across given utilities. commodity residential of you across your

Andrew Marsh

It's Thanks. Drew. Stephen. Yes, XX:XX

in inflation of cost the couple quite Yuri what to in those depends and you things bills, that, I XXXX, there's talked in jurisdictions the Texas, in particular. going a it jurisdiction fuel for the X our about when talked fuel a on about that going of raised piece and on So means bit. back Winterstorm Louisiana and already XXXX.

a perspective curve the frankly, impact, customers some Yuri. come as high fuel of of had now much well, not Texas, or Winterstorm an in because things So there's also on think prices as already up jurisdictions mid-year. the next well fuel those in has Louisiana a end because situated we in It's of you curve and done the out the from lot the other gas today. the once in still course, a are probably of forward, customer get – there. on of then the above if going fuel case. securitization the our curve forward year, a by hopefully, we look securitization and Obviously, frankly, pretty expectations thesis inflation a then on you is, that's the and of XX And get have And in natural months price bit the typically years, aggravated coming few bit. XX:XX to we're you besides But the all

should growth full that those. Louisiana. rate see by you'd we've means that below for based that, So bills the to probably a today. inflation That's next be I reasonable. at Obviously, big on historically the something less would true fairly than different going expectation of be beginning step is our still probably think year, particularly in get or inflation. effects we the But of pretty inflation said past But up. And be X%. adage the historical in once

fuel. associated we to see and that's with of got what the costs So securitization sort current we'd expect the past once higher

Stephen Byrd

much. very you Thank good. Very XX:XX

Andrew Marsh

XX:XX Stephen. Thanks,

Operator

comes question last of our line And you. of Thank from the XX:XX [Indiscernible] UBS.

Your line open. is

Unidentified Analyst

XX:XX amounts that you getting coming the goes at in for you Louisiana on touched that Service walk Assuming Can have? steps the expect what the well all There's just are recovery the that through Commission, storm to minute ago. the steps Public be you'll in? you a securitization

Leo Denault

XX:XX Sure.

So the Texas, orders. got in we've already

place assuming billion, the the we're and approval by would we $X little state we transaction, so a transaction that. the that setting in approval That of Liana April, think Commission set in that's than -- the to the around $XXX we million from to that for actual take through in the be in effective today, going or March next That's process have sourcing for should be the the going which get the expectation the few the that's already neighborhood I including of of there's outcome securitization $X.X-ish And months, bit up the get Texas bond IDA funds, up funds. of different billion done. is would state in

because course, setting of process. the the costs by of hide hopefully very and of similar that end piece, be be the hopefully, we'll would year soon. here, then, up a the the On remainder And first

Unidentified Analyst

XX:XX Okay. Thanks.

Leo Denault

Thank XX:XX you.

Operator

Abler to closing And XX:XX back for now hand I the Thank will Bill comments. conference over you.

Bill Abler

Thank XX:XX morning. everyone and thanks you, Chris, participating to for this

date existed to February filing report statements. more on of of to is and XX-K balance and XX evidence about at our the provide of due Form provides Our Events financial additional website disclosures sheet annual page generally that financial with on of maintain on our as principles. the reminder, the that the key prior that we conditions SEC date provides details as the XX-K in and strategic and in regulatory a information, of reflected be Investor would regulatory important statements accordance Relations milestones on Entergy's web which proceedings accounting accepted updates a our other Also, execution. part occurred

of this considered exclusively concludes much. be very information, some rely not call. While all And information on material our information. should relevant Thank company you you this this page for may

Operator

Thank this Then for conference you XX:XX call. concludes participating. all today's

and a You may now good day. have disconnect

Entergy (ETR) 24 Feb 222021 Q4 Earnings call transcript