XEL - Earnings call transcript Q4 2018

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Operator

Good day, and welcome to the Xcel Energy 2018 Year End Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Paul Johnson, Vice President of Investor Relations. Please go ahead, sir.

Paul Johnson

Good morning, and welcome to Xcel Energy's 2018 year end earnings conference call.

Ben Frenzel, President Chief Executive are Officer; Chief Financial today Bob and Vice me Fowke, and Chairman, Executive Officer. Joining President and

team regulatory question. we to and review update addition, have recent members that results the In business on and other our XXXX answer Slides morning, This management your you we developments. will of available GAAP are metrics website. will discuss we in today's accompany that non-GAAP release. today's are On call reconciliation are available call measures measures. earnings our Favorable ongoing included on earning and our certain

the the As some that call the used reminder differ call our described a Ben. SEC. conference to results earnings over with may cause forward-looking of from I'll factors comments Significant now our during are anticipated and in information. turn today's those to contain release could filings

Ben Fowke

due Well, in good thank say brutally of so hard but as And it and all thank who commitment, gas the held last would their keep I days. few flowing good with worked and these Minnesota and cold to I electricity and morning, you. I on just is few well you probably that’s like men know our remarkably dedication say system and up and you so exceptions here Xcel morning. had thank over the to Paul to women would

guidance. and We our them and consecutive you. exceeding and of XXXX earnings We accomplishments, list our with XXth impressive ongoing let our represents $X.XX an long a long-term $X.XX, benefit plan meeting was year year have a XXXX share few with increased any issuances or was So of and year equity excellent we EPS XXth our this raised me our of in reported of target the our forecast rate growth beyond additional to EPS completed We straight We period reinvestment to year X%. five the dividend. dividend for programs. equity don’t our by dividend which X% increased

of our New price South of of purchase reached secured megawatts of $XX.XX gas X,XXX closing and new $XXX Creek and megawatts Plan high and for Dakota. megawatts for over Energy XXX time Rush of all an megawatts million. completed Mexico, approval $XXX We Colorado in in We on for Texas Mankato budget. to combined agreements hit megawatt construction stock Our wind XXX our December. to in time wind acquire We the cycle under farms natural and repowered XXX plant farm million wind wind XX

to both this be We later expect year. approved acquisitions

Utility to actions while almost Dive. our later a plants Fortune with nuclear in resulting for this very Minnesota. others in of X%. by by Our combined companies for recognized in proceedings by consecutive reducing electric noticed of and year. North awards that the Year been Dakota as have also including fifth by pilot resolution the vehicle final named consecutive year honored one world’s XX% Military achieve tax We capacity a the filed Best being numerous proud We jurisdictions O&M Times cost magazine an of am the the most in by fifth as Utility for almost factor employer reform I Vets being being admired resolved expected most program year,

bills our customer’s Xcel the Energy’s for us great our focused XXXX priority energy we strategic we’re priorities, customer to trusted year, to vision a on and transition us helping achieve and preferred two be Leading was XXXX other but keeping continues provider customer So experience. a also and now beyond. low the energy enhancing strategic be as to clean carryout

which bills. renewables the adds a same for We’re wind our through lowering at national time energy steel leader strategy, in while fuel

the to set a even we outstanding emissions XXXX do more, XX% we with from our as why expect reduce carbon to and term, customers policy, emissions carbon our energy want proposed legislators XXX% As goals we electric within We're the ambitious entered in levels. be reduction provide into progress XXXX. XX% our interim can by But bills while vision a very and product Technologies we also me Google achieve a stakeholders carbon carbon on we Longer to Minnesota. well. the to Earlier to carbon public implement month, center to the and jurisdictions come to electric on result, serve. property a in our across years goal made we achieving confident We can most are These by in we I which gives affordable XXX% free keeping data that our supportive plans the adjacent a am by new ten service look deliver XX% XXXX. this to reliable. and bill met with Sherco our long last way is our free agreements power forward industry it focused confidence our working located customers. regulators, plant

centers may announced will development Sherco And needs renewable economic transition, benefit you our even As energy, our the the believe will location consistent the state time. our of all data to customers. lead over I lead units. particular with leadership opportunities close energy new of in to two the create back we environmental attention more for center our the bring to jobs, we with are goal to and remember, data and planning This to energy XXXX, serve clean coal XXX% investment

at needs popular another way Renewable commissioned Connect been expand renewable Colorado add customers does customers. recently us This is Minnesota. Minnesota, and Xcel. not non-participants. of Renewable our our impact expansions bills and sources, importantly, renewable future that we create Google Connect in yet energy ownership and of will opportunities how And also comes renewable meet for to of in Renewable choose allows and program in pilot the negatively potential anticipate the Wisconsin. to We connect program to for And much approval has energy filed has renewable their Connect extremely from

call me results over So financial more detail update. with that, to Bob? provide our on outlook Bob the to and regulatory a and let turn

Bob Frenzel

full Thanks, My to XXXX morning focus Ben, will year results. on today and good everyone. comments

quarter details results, our our earnings release. For fourth see of please

As annual we a year earnings to per performance. representing per discussed, realized $X.XX share top-end XXXX, per ongoing share. normal our $X.XX compared of with original was $X.XX to operational Ben share strong per in of contributing of We range $X.XX $X.XX the share and in XXXX recorded certainly results. compared financial of guidance our factor Weather positive another

additional benefit. incurred also the offsets O&M which We expense, weather

expense growth per reflecting earnings capital favorable significant G&A share, expenses, decreased electric and sales increased other by and Partially of by investment our per which equity, and margins, by due riders by earnings increased $X.XX a property recover share, as to share as by which per reduce earnings our income rate $X.XX. and offsetting natural per most Looking investments. natural at gas increases drivers these AFUDC to taxes which items $X.XX electric in $X.XX expenses, reduced interest the capital weather well and strong for program, $X.XX investments higher drivers gas result O&M and higher year increased share, positive higher statement, largely as share earnings earnings to higher the include were capital which the and per combined

as economies to commercial in as increased adjusted solid electric favorable states our industrial sales strong to sales, and customers growth. weather reflecting XXXX, residential well sale X.X% the in we Turning sales and serve

continued industrial SPS at as X.X% sector growth in sales growth the was a Basin. the result Our XXXX strongest electric and natural customer Weather increased gas growth customer sales and oil customer with and largely our in in natural by commercial Permian of increasing use, business driven the adjusted segment. X.X% gas

For growth lower which specific the per anticipating and more expectations natural of are reflect use XXXX, customer relatively large electric in driven flat usage, we sector. sales, customer declines gas and oil residential modest some in

C&I For in natural loads. slightly gas, continued residential and growth expect positive reflecting we and XXXX sales

by efficiencies our of taking and and and increased the vegetation Turning spend business of improve as customer our the to to business well reflecting maintenance and as enhance processes hot systems We to and out X.X%, Business additional costs costs. service prevention benefit remain management or cost objective the damage for improving expenses, investments to million, $XX long-term due committed customers. system operating summer. O&M of remediation for

strategic and in we renewable delivering customer including While O&M expenses XXXX generation, rising at the security are costs in focused to adding the enhancing incremental improving of that cyber XXXX. levels areas, impacts certain aggregate continue experience, with on face we are consistent

planning XXXX. anticipate We or that, I'll these delivered November that great rate summer. cases summer XXXX, Colorado year rates we're effect file spring, will the We another and and multiple quick up. cases rate new and go in Energy. from With New to in provide was busy In Next, the in XXXX cases resolve addition Texas Xcel let plan summary, Minnesota for wrap states. a into the for year. period. we issuance of ongoing in time for XXth our in the very our rate electric in reform case to above completed case year straight a Minnesota the a all within productive Mexico XXth year a We in resource the which regulatory proceedings update. our range increased tax in dividend a and In consecutive guidance filed me year. earnings equity our for We in We had five and

Energy New Gas wind South wind Minnesota. execute in Dakota well for steel Natural Mankato and megawatts on our the PPAs Plant in XX new for buyout into megawatt Colorado fuel as receiving acquire to We and Plan. entered agreement the We continue strategy, as to regulatory and approvals Texas Mexico XXX of

some ongoing deliver growth our earnings per are our prepared our This X% dividend to to And We to XXXX growth take well we’ll $X.XX guidance of positioned operator, X% on concludes our now remarks. range and objective earnings X% to share, objective. $X.XX questions. X%

Operator

Thank Dumoulin-Smith of We'll of [Operator go Bank from question Please Instructions] you. our Julien America. ahead. first take

Julien Dumoulin-Smith

Can hear morning. good Hey, you me?

Ben Fowke

Julien. are little morning, but good Yeah, you a faint,

Julien Dumoulin-Smith

morning. on well, I Congratulations Good appreciate it. the results. Excellent, again

Ben Fowke

Thank you.

Julien Dumoulin-Smith

little legislative just I to three… just there's specifically something through up well of there Texas, you a a touch them the state in more by regulatory, know bit, I little as Colorado know – on importantly difference a litany this angles came base and Minnesota? across Can to for since base go year. status touch bit the Maybe

Ben Fowke

it's There things. There's So there's pretty busy a a whole agenda. legislative bunch lot of them. is – of

Julien. that Starting on It's that $XX regulatory in I that forecast legislation one, at we important. to get period, would that the and don't that CapEx million a we're allow in and course concurrent in Texas, follow-up anticipate about ERCOT that’s we're of ask recovery companies AMI. receive there it spend CapEx treatment companies touch important the the note question, our to particularly why I same AMI in few non-ERCOT the if of miss basically So interested please looking a

Over that. in capital wouldn’t Mexico, we're So recovery bell and would but see the to that increase as of too well. there, course, great. New standard Julien, RPS about where securitization the we're And the much the be following goes watching optimistic

is a Colorado, proposed number things Moving The up bill to Colorado. in securitization that we're is one following. different there of

Our be thought things community employees. something taking the said, that we've I'm toolbox could those you you particularly keeping our care there transition leading know, care another tool some That of flat energy already of, while of the clean of accomplished is our will. in the it if taking proud

I think was would most that great. we of become can the stages. community gardens. bills Most things details, addresses some be in tool. can pretty the of Minnesota, voluntary number a That and in we've the I remarkable – in securitization those going achieve of just Well, solar Minnesota always legislation shown a that valuable but is will it earlier results. the around; are say do there's

you're missed a I in? up. interested just something Minnesota, there's interested in I specific that anything, if everything Did catch follow Julien? Or So you're in,

Julien Dumoulin-Smith

out some more are you No, you you out, if I know Colorado a you that capital or wanted would otherwise, focused to from mean, think get I any playing lot, the of you specific think that on priorities did. items coming there's I why the there of be about that's but these will. I'm these curious as I

Ben Fowke

transport. – be am bills bill and the If to any incremental basically would to of us EV the development there’s seating of I to what I mean, capital, us no. very drive those going future storage electrification much Well, that's more and that with helpful in could do interesting a be I the think will allow is

So CapEx, that dollars put table, but little to hard anything could the Julien. on a early some drive

Julien Dumoulin-Smith

And a if I Great. quick can. just clarification

an Is provided additional investment dollars capital the EEI the you're in capital. On forecast you Obviously, billion that read changing there slides to into incremental around every case anything that? of update.

Ben Fowke

roughly we put and in believe base still that XXXX spend the think overall we overall – same things farm from Mankato I timeframe. and Well, I our now, mean wind the is I shifted into XXXX, some we and the but but forecast the

So still in about that incremental of I are in we those would rate different a achieved grow there have base by get out case, looking ways. years, we to can And which think number X%.

course, opportunities Of PPAs and to look buyout we other continue things. for to opportunistic

that as forward So to Julien, become the fact that out the intensive years history, if at you and tend capital years. be more years the out look

Julien Dumoulin-Smith

Excellent. that. for clarifying Thanks

Ben Fowke

Thank you.

Operator

We'll our Ali now Agha go take from question Please of next SunTrust. ahead.

Ben Fowke

morning, Ali. Good

Ali Agha

Thank morning. you. Good

First mentioned Mankato you megawatt I happen. and by wanted the third expecting you're I approval to the Ben, wanted question, think I buyout are say quarter? have just to XX that. clarify. the when expecting clarify Did both just to you you

Ben Fowke

of quarter the Yeah, that's good early I quarter. timeline think end think about, third or second a to

Ali Agha

billion rate correct? $XX.X that you us. Is previously as five CapEx had CAGR the with to And base year does that X.X% equate shown Okay.

Ben Fowke

Correct.

Ali Agha

dollars, And to the - aspiration of X%, high of I end billion think that incremental that would to about, if does that that hit goal you get earnings to X% long-term the Okay. achieved the X% assume think the can based laid end you CapEx base high rate you X% just today? could or also have be on as rate so out growing do that at be growth

Ben Fowke

I helpful, outcomes, well. levers Improvement other be – be in would year Sales, incremental think but we helpful. we've are good mean, would regulatory very XXXX. got the there a as specifically in a that certainly ROEs, had higher also I CapEx

of XXXX be bit a would there and for flatter look And we got that We cost the but beyond, we business. if in little helpful. pickup to continue some in course it efficiencies to be expect

multiple So there's one. being CapEx levers. The incremental just

Ali Agha

that. growth another should Ben, get the – a looked just about CapEx. assuming X% expect way guess change as you think I easier result rate X% make that Is we mean higher to the it? not to would do to to end. way, That incremental of Should But I Okay. hit the it that perhaps we

Ben Fowke

I Ali, mean but good that, is always mean look said assumption. we I we just at know, – you you as a take think what a I

Ali Agha

elaborate why XXXX. you're more in guess, your And with more in little electric to XXXX? mentioned bit are which normalized just, XXXX you you assuming of can a detail X% growth last as little this growth slowdown you Can Okay. question, XXXX, north my that give load – you I versus weather in just a flat on expecting

Bob Frenzel

obviously some mentioned flat upside industries earnings. be don't those Ali, and in expect was in had oil as We aggressive know, oil some would good growth instances in lower saw discrete expectations, if of where from our Obviously, by XXXX. couple we solid we XXXX in we it we we growth You exceeded a we C&I lot of growth SPS gas year-over-year have our XXXX, as think and in demand a had we upside gas some of driven Ben and it the large the forecast, know demand we the a that customers business. if growth sales of to C&I have for and

Ali Agha

And does program, million sort modeling issuance? see. run $XX good Is that purposes? of support annual about the for I rate lastly that DRIP a for equity

Bob Frenzel

that's million to $XX a million Yeah, number. $XX good is

Ali Agha

you. Got Thank you.

Ben Fowke

Ali. Thanks,

Operator

you. Thank

Please We next our Christopher will go Turnure take question of Morgan. JP ahead. now from

Ben Fowke

Good morning.

Christopher Turnure

questions earlier capital on to I the Good plan. the morning, up of one wanted follow on guys. incremental

where looking at there. we And PPA mentioned in thing see information buyouts kind anything there that You near-term? we could else you're there next process? milestone one at some looking are see that you're that might that is the of What's

Ben Fowke

of think, obviously case and opportunities by the to I universe going it's Well, case. be about talked we've

looking the customers. sure hard and team’s as and that development at buyer there's making for good opportunities work our a Our for deal and those seller the corporate just importantly

that So but there transactions there on optimistic in be that, to timeframes the really future. talk aren't we about will are

Christopher Turnure

we and And rate think the on CapEx the CapEx XXXX within model then we And wind then XXX Colorado in and Okay. for year? from to growth feeding megawatts base, potentially when of XXXX behind PSCo the that? was that What how Plan, the should Energy XXXX XXXX. earnings about and from modeling shift

Bob Frenzel

Bob. it’s Chris, Yeah,

us quarter the to of it fourth and On the in and originally CPCN Through process ourselves. construct we at and developer COD. there, Plan transfer in with the project the the the we filed and build-own-transfer by developer, would for Colorado build we negotiations contemplated had where our the shift, when farm to being the rights step land opted that Energy it development wind a the

So the pull farm. forward wind shift from just in that capital is a

capital capital the XXXX less then for So XXXX slightly you an in in same farm. Colorado in incremental and probably see wind

Christopher Turnure

Got you.

the between a the just well? change, pull potentially and forward net net, really So as total no CapEx power years two of earnings

Bob Frenzel

CapEx amount. in across We'd That's right. AFUDC years pull the pull have forward, interest but forward slight expense total and in two forward, aggregate pull same the

Christopher Turnure

there? got of kind you quarter on also assumption and Is you like a flat takes project, the the looks at you growth guidance puts correct XXXX the just year bit have a to days of for third guess, since had kind the in maybe so. that the put Okay, weather earnings, the the introduced elsewhere, since you. And then, at and around first you here about and summarize to think little impact year way repowering originally positive benefit I of guidance kickoff that that load XX or it wind least Mankato out

Ben Fowke

January. We'll certainly comes the the upper the Yeah, but system across of rest our you is levers the The upside the for in some been of Midwest certainly jurisdiction month. cold, it see relatively of very in. talked actually entirety about benign had how

Bob Frenzel

– above, to XX Sunday, degrees that’s and not so below. be going It’s on here

Ben Fowke

year. the for think you of I the positive some sensitivities yeah, But, hit

Christopher Turnure

Okay, great. guys. Thanks

Operator

Please Miller Travis question We'll now ahead. take our go next Morningstar. of from

Ben Fowke

Travis. Hi,

Travis Miller

you. Thank morning. Good

Bob Frenzel

Good morning.

Travis Miller

level a bit question, but I wondering of strategy transmission idea if westward SPP your higher there. expansion, thoughts of was on could give you the your take Just a the area

Ben Fowke

is. your you I'm what do sure not David, question quite have? No.

Travis Miller

just guess I Transmission Mountain West discussions… Group, the

Ben Fowke

you're Oh, more talking you? Colorado about aren't now,

Travis Miller

Colorado your Texas, would western it'd and of Yeah, part I Texas believe involved. be be

Ben Fowke

benefit we know, for looked that analysis at Travis, pencil customers the you at So, at West. round. the really probably not our were didn't benefit way day, Mountain those It joining least in the of mean didn't out cost the to the in And we end the the would. this for at things it math but future, we're looking us doesn't hoping open of work

Travis Miller

be in Is big that… a of renewables Would that that? involved Okay. part

Ben Fowke

Well, at it’s sorry, certainly something we were I'm looking – Travis.

off. You ahead. you I cut go

Travis Miller

No, just if – the you’re SPP for The in idea that there? part saying that correctly. that you heard – of general, renewables is

Ben Fowke

joining it seeing Yeah, West of offs, benefit of not pros was good their the need be the again, when we’re with larger the renewable other for other we what Mountain that's Again, that cons, of up regions. added to and and do. be our I thought But potentially a move we'll forward integration. with to revisited enough the we advantage customers MISO and which it. Certainly, would is trade cost mean, footprint, for and benefits things a periodically these

Travis Miller

of you view terms spending looks the in say part in And about get later What's the five about system potentially? even Renewable that there, three system. question. of operating and your Connect years great. capital have and spending pilot, Okay, as obviously renewables you’ve level in to EV and your the how talked think the you your state through programs in there’s Minnesota another higher then on the and When you

Ben Fowke

how quickly It's absolutely amazing renewables.

of renewables our XXs, the all Midwest by renewables and the Minnesota. of that will will think I around not we crossed line if states includes And be across of the mix. the and I XX% eight energy XXXX, our biggest be it's believe mid upper and energy source XXXX,

for I a Travis, I creating about And last that phenomenal. remarks, well. to excited also doing the state the become which able strategic we're think in this brand data and clean other affordable. is helping transition for development. asset we’re don't I be economic absolutely leading And what center a it's Google. state, energy that mentioned think will my We're is the So prepared as the as to really our think attract states with It's I do obtain. can

Travis Miller

Okay, great. I appreciate it.

Ben Fowke

Thank you, Travis.

Operator

ahead. Evercore. We’ll our now question go Please from next Gordon Greg of take

Ben Fowke

Hi, Greg.

Greg Gordon

time answered Hey, guys. guys you. you prior give back. Thank I'll so analyst, questions you the all Actually, my from

Ben Fowke

Thank you.

Bob Frenzel

Thanks, Greg.

Operator

Please next you. from our now Thank take ahead. Storozynski go We’ll question Macquarie. Angie of

Angie Storozynski

Thank you.

I really picture a So question. have big

PPAs is $X of as I'm And CapEx same type utilities answer off. before to rule your the of opportunity witnessing thumb discussion PPAs. of And of O&M that anywhere we're thumb, wondering mentioned a same sense, with looking thumb off. So, allow for at you PPAs PPA see have these now potential CapEx. let a Thanks. $X of spend California and EEI for I I'm can with how some I'm inflated that the slide bills. instance, instance, if roll there to just any do you what expiring O&M the mentioned this applicable now given power wondering is whole give it, I those of customer it the between – deck of of buyouts roll kind we the renewable about has just us savings just PPAs? rule heard the Is early of in from rule what kind for you $X of you expensive some that a us And if if of

Bob Frenzel

half – could the base, of agreements. in It thumb that something of a the out deck. might a and mean, and about it EEI at. have you’re thumb. you're PPA fossil universe a slide look I good that a putting of would those We've believe, rule There of PPAs wind, power that front rule But it from we I megawatts other half that's I and don't at Well, me renewables now. hold if purchase a in true in of X,XXX CapEx we probably rate of be large got anticipate buying to would the fuels. looking in is

roll that – with it has it – Angie, you And transaction it most us, the now. we work to seller market to not prices success. and higher But we've them than anticipate or these work when at future customers. whether that some we has be and got to what can again for pull dollars off, would PPAs had has for success work the are for either of to Now way, the

that to And for least objective at very very create with is talking going us of help low that the so at point investment our important that headroom bills and you're about. keeping leverage

of really for it's of if you will. fuel, version steel So, kind a

So, might have years. quite that have we I don't prices reality energy over PGE last the same high price is fallen type think the the But PPAs have. XX

low So the customers, XX as to ago buying either of it's very opportunities at did years we bills off, or which good. is things all roll least keeping going for create for

Angie Storozynski

Okay. you're that again, right not I'm and hence know just I'm I looking it going at slide, But it. back seeing now to

showing So pricing I'm us is guys and PPAs just rough are simple I PPAs. as those at that as, it basically see of the of looking you those expiration

multiplying basically that by the that's six that so I spend. the times CapEx and And in say I'm incremental can absence benefit and of expense, seven

Ben Fowke

look we don't it that quite I think way. Bob, at will

Bob Frenzel

bills how we the headroom think its that our higher-priced about create factors think rolling the we capital When on impact customer investment program. off PPAs about of into and

afford about degree We we says, like. Ben should the same throttled the a and talk a we customers look replacement or of grid as that in by We're increase deck. would our think to what we the talk significant replacement pace we that little As would costs at costs in capital could what for infrastructure bit plan. usually grid about the invest what like

benefit while bills So, and in fuel invest power reductions capital enable the customers low. our company purchase keeping to the of to

a Angie, using I thesis your correct. if So don't but we're is there, multiplier know specific

Ben Fowke

negotiate you'd I the think you Angie, that wind base Then XXXX you'd put think maybe to it has is the a rate I it. in I it math power is we can to some with can that off to offline, CapEx. look be. megs how of look That's in mind. and customer, the look opportunity but could I – transaction that universe of at you we and have the megs way way Then earnings on at this probably think is it. of if of NPV where you have roughly think and would And putting that for the take we fossil, XXXX – of the would the the we get positive would – do be and

Angie Storozynski

understand. I Okay,

Just one up.

So versus can any competitive of point finding or give for sites us you farms cost is a issues a winds? close sense wind into you're where you're becoming a future reaching good if solar running incremental and to with attractive

Ben Fowke

and I mean had available. finding there there in for – sites think speak success sites those there we think are results good out I will themselves continue pretty sites and I we've and the to be

And continue reductions – my like of off fall As with fuel. solar offsetting, is wind Wind solar opinion, more Angie looking ITC. up than at that far the as is we're cost significant planning because solar more is in my plant the the becoming nicely far know to see higher I think going capacity more to competitive, marries retirements you're I does. absolutely right. the thought really And that than actual think you coal as has

a mixture of kind is of two. the Solar

So very I think the well regard. aligning stars us are for that in

Angie Storozynski

Great, thank you.

Ben Fowke

Thank you, Angie.

Operator

And next Deutsche of go take Jonathan Bank. Arnold we’ll our ahead. question Please from now

Ben Fowke

Jon. Hey,

Jonathan Arnold

Well, good morning guys.

Ben Fowke

morning. Good

Jonathan Arnold

Hello.

Ben Fowke

hear you us? Can

Jonathan Arnold

hear Can I you can hear you. can. me? I

Ben Fowke

Yeah, loud hear and we you can clear.

Jonathan Arnold

you Hello. now? hear Can me

Ben Fowke

you. can We hear

Jonathan Arnold

I off a little bit back. came right, for then was All call – we and got the Okay. kicked

this you apologize to one. going already I'm answered So if

Ben Fowke

Jonathan. behavior, bad been have Must

Jonathan Arnold

sensed. – It's was something

the you're I face levels, flat of of numbers. read getting to sort So down XXXX the back O&M, which to billion as targeting means just $X.X under

– that be out level. you've through to awhile and – been saying flat kind you So X XXXX of for want X, that at though

that it in are to can speak is So of guidance. plan, curious to the having something better Or down XXXX? than back bit XXXX then starting – if maybe you of a XXXX a you in to precursor you is kind be flat? kind a number been over Just – for to just little getting and may the reduction push that's

Ben Fowke

significant retiring advance one about O&M we of in causes onto any of Jonathan, new pressures. are upward a and things our the wind adding system wind is legacy generation of think to amount new that

business So the balance that base we the of O&M I to business wind. the from would incremental continue is while base the the we cost absorb the say curve bend on

absorb generation, O&M. we we've had as in lots some new cost of So pressures

it curve generally us think is the I cost for wind adds. flat the keeping new bending except

Jonathan Arnold

So a changed or that through that out little like is program the billion forecast still $X.X numbers bit? the has

Ben Fowke

our a That's good that's – still Yeah, I think still guidance. that's good a assumption.

Jonathan Arnold

it. was Thank That you. great. Okay,

Ben Fowke

Jonathan. welcome, You’re

Operator

We'll our now Patterson next Please ahead. Paul Glenrock take Associates. of question from go

Paul Patterson

Good morning.

Ben Fowke

are how Paul, you?

Paul Patterson

Nice.

Bob Frenzel

Good morning.

Paul Patterson

indicating? a just here. one – tools as bit of toolbox one you could might in how the we quick follow-up on you about the you were by think of that? guys should of that being securitization the just to sort the use were you if might little guys mean as how pass, use question legislation The happen that do what So terms of What in with or

Ben Fowke

in Well come as to been of the important our that has things the goals Paul keeping in Colorado that's technically and things than we've is at written two, that earlier, tool to efforts. look of we the includes of bond what securitized. our securitization voluntary that a in utility at. achieved do least like one at But and and we'd ownership I If bills you employees one things and care securitization way be actually the both It thing, and has it communities two the be general, mentioned something flat a own Colorado and is we've in might there think I it's achieved. of off through has. taking things can programs the it together employee community generation remember of it. the those be is that's And then, in looking And

securitization that, don't need So we to it we're if more makes that – doing attainable it's keep for it. but something even then all it

Paul Patterson

on thinking apologize Okay. of that Mexico, securitization is like, sort case address wondering, of, this. I'm any I of I'm particular with see New can sort sort just dense I'm would like, PNM that mean, are missing? project the about. I people for I issue what just or I there in guess, just being of,

Ben Fowke

would might today. think the but I down we’re look no, mean, anything it's about why no. be that's that there toolbox. Again the specifically isn't something No, it at, road to it's just tool I in thinking want we

Paul Patterson

Okay, great. warm. for me. it That’s Keep

Ben Fowke

We will. Thank you.

Bob Frenzel

Thanks, Paul.

Operator

time. appears Thank this no are questions at further you. It there

So, conference any like you to additional Mr. for back Frenzel, or the remarks. to closing would turn I

Bob Frenzel

Well participating as follow-up this all call with any Investor thank team contact Please for always earnings questions. our you in Relations our morning.

Ben Fowke

Thank you.

Operator

This all concludes Thank participation. your call. for today's you

disconnect. now may You

Xcel Energy (XEL) 31 Jan 192018 Q4 Earnings call transcript