XEL - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the Xcel Energy Second Quarter 2020 Earnings Conference Call. Questions will only be taken from institutional investors. Reporters can contact media relations with inquiries, and individual investors and others can reach out to Investor Relations. [Operator Instructions] At this time, I turn the conference over to Paul Johnson, Vice President of Investor Relations. Please go ahead, sir.

Paul Johnson

to XXXX welcome conference quarter and call. morning, Xcel second Energy's earnings Good

call are and Van Fowke, Bob me President Officer; Ben Joining today Executive Rome, Chairman President Chief and Vice Operating and Amanda and our our The managing we're through around Vice COVID. we'll General Frenzel, Chief Counsel. results, recent Chief how Officer; Executive This review morning, on business discuss share that Brian are accompany Abel, today's and and slides quarter Financial website. President second and Officer; available regulatory developments uncertainty Executive

metrics reminder, the different and that some could As in in those will are make GAAP ongoing a earnings factors certain margins. contain filings. items, including our natural to results described included we comparable Information electric of on measures, release from during may are our today's earnings SEC earnings, call cause Significant anticipated we reconciliations Today, non-GAAP information. and measures release. and gas that forward-looking are comments discuss our

turn call Ben to the over Fowke. I'll Now,

Ben Fowke

share Well, year. morning XXXX, had booking quarter, compared strong quarter per everyone. $X.XX the of thanks, $X.XX with per good a earnings share of We for and Paul second last

our Our mitigating year-to-date are financial on of COVID-XX. plan, with earnings and are impact we track the

our As a reaffirming result, we XXXX guidance. are

charitable We to help and our the protect our customers stepping continue up giving help pandemic. our to our employees We're during communities.

announced that Minnesota in well. that economy. in state docket jobs safe, help investment We're would continuity Commission to under we distribution repowering, wind capital projects billion that XXX billion approximately plan the we're a billion PPAs. employees create projects through about for the submit providing restart incremental expanded extremely EV wind business service the been expect infrastructure a opened that We a customers. and keeping megawatts repowering facility, gas investment. this by recovery utilities economy executed projects and programs relief commission of This recently capex communities. a investments. potential the to of capital accelerated June, either to Energy estimate XXX-megawatt And includes a jump-start natural $X or $X.X to Our Xcel transmission, $X.X solar and proposes jobs create recommendation and helping megawatts filed make solicitation plans potential for owned to of have reliable repowering In invited while our and our Earlier by X,XXX our of and We are year-end. year, of

has customer to very the options positive, are been look to and forward feedback the Overall, proposing We process also we bills. through mitigate with commission. working

end might complete the recently level. as you have XXXX the until extension Harbor in announced of renewable XXXX projects. PTCs construction the construction a now the heard, have Wind US received and projects Treasury Safe began that Now, one-year to at for of XXX%

confident regardless us were our XXXX. we PTC slip projects for for change, would projects benefit qualify XXX% our should that into extension assures of any While customers this the a level

PTC XX% move presents opportunity level. the planned XXX% Range also change this to to level from Importantly, originally the a Dakota PTC

second significantly leading of impact co-owners strategic our we announced and the this the clean will customers. transition, our earnings, unit our not will coal early reduce at for Advancing is the While outcome which great priority of retirement it energy a costs, recently Craig.

drive coal recently in to another and improve retirement stake TCFD Craig, results enhanced Xcel ownership a our and the disclosures in to risk describes TCFD of the this unit. are full significant our compliance strategy small climate our We resilience report a The assessment, have only addition help ESG of which disclosure. of using Energy. scenarios. and for issued different report We're strides also making early we transparency proud we While

Another strategic priority bills low. is to keep our customer

very Global. to meet the by a was recently August, and effect November. the country of it by and that electric and into satisfying City will referendum approved, XXXX result agreement include for New approval S&P If lowest options XX the the to a XXXX. service goals. new that as in result, by in We're reliability reported proud in with people Providing vote settlement Energy, Boulder in see will SPS's grid Mexico customer for also in a also Boulder recognition. ballot explore that The franchise rates will a at hallmark were go attractive agreement and Texas strong site reached this in after vote an process Council of and years, a and a price we've is the partnership excited carbon settlement very to franchise As we're our a of Xcel January

is to Finally, related time, I COVID-XX in was My ongoing customers will and I Chairman elected an EEI. an industry from and recovery pandemic. to challenging and of It response the to the the important industry's priority recently honor be the such focus areas. on lead first workforce, three intend

federal carbon to intend marketplace proposals to into I and asking technologies innovation. energy clean Second, that the focus to the carbon enable will our policy develop to state bring I'm meet goals. industry on EEI long-term dispatchable zero

to from can has commitment promote entire first increasing our miles Like Finally, and protest city do diversity asked headquarters, the EEI focus few our widespread experience George industry to only Mr. and death inclusion. our what I've by racial Minneapolis to corporate to and the shaken on advance a Floyd and died of rioting. our Floyd. industry been was country, our justice

hard need business work confident that some hard biases I and to communities. asked our and a our improve I I'm our our diversity. can We role in Energy a positive to lot questions we country change unconscious can play think, about how as society, practices. a we our have driving Xcel for leadership look at ourselves, of do.

Brian? our the and that, with more turn our Brian call over will outlook. So provide me let financial to on detail results who

Brian Van Abel

higher declining booking with our share, impact $X.XX rate increased year. had per which compared expenses XXXX, driven $X.XX last by quarter share; earnings good share drivers increased primarily margins for by finally, management by largely most negative higher Thanks, share and the the effective and per sales lower earnings from $X.XX earnings per efforts include the reflects cost significant rate $X.XX increased riders everyone. O&M per following: that tax per morning quarter $X.XX increases share; $X.XX share. quarter, earnings due lower by second electric $X.XX earnings and equity offset share The Ben, increased by to of AFUDC COVID-XX; per a the for strong We per our

reflecting production the to customers were back earnings an electric which in these capital items, program majority However, and flow interest drivers share. other $X.XX combined positive the margin of tax to credits, lower is depreciation ETR which and is investment through largely and due reduced per Offsetting our expense, earnings increased increase neutral. by

discuss status efforts. and impacts to the want COVID-XX mitigation of I Next,

a had quarter expected, sales. on COVID-XX As impact major second

weather-adjusted Our X.X%. sales by second quarter electric declined

the economic case these This May However, electric in further X.X%. basis, improvement started and mid-March as in impacts in are better monthly April economy a gradual June. improvement is guidance June May showed scenario, sales projected retail On and opening that which assumptions. reflects retail declined X.X%. sales shutdown of retail weather-adjusted up showed and base X.X%, than trend the in our the electric as electric our embedded declined sales declined

our projected and for than C&I true-up sales quarter debt customers for base electric case scenario, non-demand better and in of reminder, came mechanism have should we cushion Conversely, We're in electric in economic with decoupling than all to if our in a covers continue come we in bad sales plans have classes accordingly. sales the occur a and will expected, better Colorado. sales. working our payment lapse residential we or about classes expense total monitoring faltered. on second closely additional retail adjust As This recovery also the electric XX% plans. Minnesota small Since contingency

project land, While as bad debt difficult million in where it expense we'll approximately $XX time period the increased reference point. to XXXX-XXXX a is

have New Minnesota, pandemic-related to commission orders to Mexico Wisconsin, and defer Michigan expenses. issued Our Texas,

us the expense, reached also in to with pending We that commission debt settlement bad a COVID-XX-related would Colorado Staff decision. OCC allow and a

also strong a we in and are we to X% providing also reduce negative our North there impact prepared short-term O&M and in on We're to expect and the and case remain I which of Based decisions limitations COVID-XX. XXXX, the customers planned case cover topic contingency we to issuances review. our offset. decline finished and or debt to our were scenario. we customer that not South Finally, discussed X% COVID-XX make in offset will expenses will the local access remain at can first if strong on implement scenario. able base efforts should want the filings cost the impacts And to for last have reliability, plans, we've shareholders. We've service additional The on bonds markets quarter, made plans, our what COVID-XX in We commission issued terms base annual strong the impacts under in liquidity. contingency to as O&M long-term exceed year, mitigate focused impacts our is Dakota Dakota on We bonds. progress our to record capital

the contributions. carving million $XXX sale cash of Energy the charitable of We closed on gain Mankato after also approximately for which the provided proceeds out Center,

later last And finally, we bringing year, this year, liquidity $X.X our equity liquidity result, approximately have settle billion. now a an As through available we $X.X of to approximately forward issued billion. which total expect we

blackbox decision of our reached in an COVID-XX. ROE increase of update. rate a our rate in me of for test of We historic the year and preference X.X%, to we million, ROE rate for of Mexico, million, to increase discussed our Commission a of especially Tolk of equity ratio earlier million, year. XX.X% and reflects a in ratio Black case, constructive which we avoid we On the an Texas, an a the approved Hawk $XX XX.X% XX.X%, commission coal retirement. ratio of project. of commission also Tungsten a plant AFUDC of let In accelerated a in In as which Colorado purposes, in settlement, call, acceleration and increase to our ROE gas reflects quick electric the last the settlement impossible, life Next, natural adjustment the a constructive unopposed plant. a of an light later of July, a depreciation cases reflects decision coal depreciation equity X.XX%, an constructive equity X.XX% reflect net this We rate third and of provide quarter. that Tolk reached New anticipate And regulatory $XX $XX a rate anticipate settlement

of we filed keep had all case. this The our rate Minnesota would and investments grid discussions, recovery cover wildfire interest part to wrap seeking provide of avoid recently rider through flexibility. a outcome in an we case our parties. filing express in comprehensive and rate riders for be alternative and you initial think of and a We've we'll XXXX this path our relief We another advanced And So for filing With up. will filing, recovery regulatory Colorado, as posted. that, I'll year. constructive XXXX

effectively mitigating are We impacts. COVID-XX

another create filed provide riders. of customer coal in rate our our Texas municipalization to while employees We the to should and and settlement benefits. our by local and reached which customers, will Boulder wildfire and Minnesota, an in case in TCFD our end continue our avoided reached We for and advanced achieved service communities. and proposal of that recovery economies filing Colorado grid significant rejuvenate ensuring We full help reliable in settlements We well-being efforts. plant cases. with announced We relief earlier an result a electric compliance. energy rate and Colorado safety We constructive retirement jobs,

XXXX range and $X.XX solid on reaffirming We share results progress our on plans. are per guidance $X.XX year-to-date based contingency to of our

to long-term This committed within take we and range. concludes Operator, remarks. our X% questions. Finally, we growth prepared remain earnings dividend to will objective now our delivering X%

Operator

Jeremy Thank you. question our with And Tonet take we'll [Operator JPMorgan. first Instructions] from

Jeremy Tonet

more what color. somewhere point. are at Just far data had wanted know wondering and if shaping to you if initially third could guys touch this from us trended so case any provide be if can between retail guess, those you scenarios? quarter It you I'm you between expectations quarter, base July, seems two could the mild see sales give up far from so on Didn't the the second any in us base, your how I case. might guess, any just I you feeling, the

Ben Fowke

Yeah, happy we don't to. AMI. But as you have know,

data look So information, that in the gas seeing we closely. some into at we in slight we have C&I particularly slowed have of something some watching specific is some SPS, what we're oil as seen down July we some we're customers. on sample improvement, improvement visibility we're have. seeing the a side and the And We've

there, below look from C&I. good bottomed of there. the results May, see at was our down improvement we've you out If and about Colorado levels, still improvement but kind X% the it C&I the pre-COVID relative watching We're to seen in also where

If we much some that presentation, see that on our April May, you we as so continuing earnings still trends you look are from as at can and to residential, XQ. to there. in that sales our focusing but from In saw QX, I the are we're release C&I strength improve seeing the in that positive June did didn't May they to think see

depths in look scenario, trends at to positive our did base significant the improvement have QX. if overall, but QX, in QX we So going you into

some, are So watching we closely.

Jeremy Tonet

And recovery share Thanks. received to wondering be you able kind expectations far as just or point. more so any going just regards I'm far feedback if have helpful. that early you very relief That's it. forward this proposal, Minnesota with just as any at to and might the might Got of

Bob Frenzel

the Bob. through the question. pandemic. really a our meeting planning Minnesota Jeremy, interesting this community with to and commission some and try Recovery think solve it's investor-owned actually talk had is yesterday and problems Thanks utilities political communities a department Relief between for Coincidentally, of of the Act. example to Hey, we the the and from affecting are We that coordination the the

feel was a like tone. resolution had interest of timeline. kicked special Governor the commissioners tone with by positive I Lieutenant positive some I to and think some the we with a from an yesterday commentary expeditious off

So but we'll the felt we know timeline, work rest through I yesterday's planning more as positive. of of the in meeting summer think fairly terms

Jeremy Tonet

equity, was it wondering D&A I Yeah. drivers. just here, guide, It's interest with if kind sneak little like you bit one help your could a encouraging. Thanks. AFUDC of the in And of some That's a I all changed great. last could if us seems and there.

Brian Van Abel

out Yeah, expense, certainly. takes, year. low changes cases. that Puts our we XX-year impacts all bit rider line, in Obviously, utilities, the for other of bond it of the were implementation so impact X.X%, depreciation bond We had really when depreciation When team. out some at bottom implemented. is the the issued record little you then, which set put a lowest coupons you good results coming altogether a mortgage there delays just And XX-year first them interest immaterial right, on farms, pretty of for changes in of take are Minnesota. rate but revenue, of We rate and a together. immaterial them pieces wind net-net, pretty

Jeremy Tonet

much. Thanks so Great.

Operator

Julien Next, Bank with we Dumoulin-Smith go to America. will of

Julien Dumoulin-Smith

thanks Hey, for the time Hey, team. guys. morning. Good

Jeremy let was other So of the me what about. take talking just side

staying and talking of going in your out and reductions, to prospects you a cost but that I forward means means these and you about that about the progress context sustainability given let's in talk bit instance, about leveraging hear more, future X% and Let's give guys this right? what then, bit for in years, and X% little the talk are little of in where the year-to-date the stay articulated to plan states? what context against a us out riders Colorado, for

Ben Fowke

obviously, a to our of different done COVID-XX, Xcel us me what really I you entire in and just most business. impressed Let but up technology that of has innovation to to me number the workforce drilling, -- And the of let providing details on team still ways, the we Brian stepped to deliver. proud say, and use that product improve I'm let the how give while mitigate me creativity going impacts -- really of entire important, is but we've

details. a that I'm -- as lot So more a With of to us this some lot XXXX. will that optimistic a of of Brian I'll lot got through, but momentum go into we we've ask give work that, to give

Brian Van Abel

Julien. We've the Yeah, morning, Brian. plans of the in contingency from rate, end sense March, And run the of saw Thanks, the as a Yeah. good fit. in put we so right?

We're from at a of our over plans when we slightly perspective. And nine what year-to-date are for QX. just a months about executing plan ahead ahead XXXX, $XX look little million so, out so of had we

good of that the a for puts year. in us balance position So the

case we've adjust beyond. sales XXXX better, regulatory But forecast the those talk a equation this turned Now, can And in attention sales, XXXX. and and of sales everything plans contingency plans impact year, got sales come -- we're done about what I year. of obviously, we've of to incorporating incorporating if side in job rate the the we think well. is the those and from developing we've past bit sustainable when over great The flexibility that into for months and and our forecast XXXX little executing the team you -- for learned for in our said COVID-XX we're also other it is few our has really is for Ben a

looking the And equation. so, we're sides at both of

a so, perspective, guidance for in And O&M big in that. QX will sustainability the deliver from further team an which and QX focus on clarity

Julien Dumoulin-Smith

Got successful to consistently it. these levels that that Colorado? cases at to confident the of, earn the for staying inclusive extent out fairly instance, But you're which in authorized net-net,

Ben Fowke

Yeah.

assumption. think a fair I that's

a broke You up little bit.

with you correctly. said the you I you regulatory think would sure I another to expect make proceedings, levels authorized just heard

Julien Dumoulin-Smith

Yeah.

Ben Fowke

exactly are you, Where Julien?

Julien Dumoulin-Smith

that about We will talk later.

Ben Fowke

We notes the enjoyed from your Julien. road, have

Julien Dumoulin-Smith

go. you There

mirroring Minnesota? think are the stimulus So you prospects about -- your in here for Colorado what potentially in your and speaking of as Colorado, efforts

Bob Frenzel

Bob. Hey, Julien; it's

out in We've good a warm summer. having weather we're Colorado, if had So nice you're there.

in you think our of weather-adjusted some pretty saw I were sales strong Colorado.

Minnesota goes, plan and customers. partner that for we lot a other what the certainly can we're the jurisdictions. open that. find the we and relatively recovery if to has the are leadership department for looking do to and the done getting been we've their and trying utilities And and on partnership, I'll give to the we in and and state of with and unique believe up in credit of our but ideas relief to in communities administration the help us their to the far try and commission partnership As Minnesota kind country, as our in and R&R step absolutely willing

in us -- continues opportunities rule see road if for or more may down out. resurgence, As similar we it pandemic there the jurisdictions. the if something We some on be wouldn't other

Julien Dumoulin-Smith

luck. Great. guys. travel. Thanks Nice Best of

Bob Frenzel

you wherever safe are. Stay

Operator

to we'll go Morningstar. Travis Miller next, And with

Travis Miller

little you you in Minnesota, cycle I wonder if like of one that the filings? could talk a look might when more full bit year path, said rate alternative three in what the

Ben Fowke

of stay Travis. it Yeah, XXXX. plan, out potential we relief put in is recovery alternative at and looking path And a kind our as really the for

of into able key constructive relief components. components which we -- amortization, a of the annuity plan. starting recovery put the focused we the with just And couple really the were reach we're of sales and deferral was now, stay true-up that to Going to a XXXX, and in around a couple and approved in out that parties, key commission

is just can will there that that. path the started certainly, constructive we've there, and find another see customers good think we if our I we initial and works a us. for And discussions to settlement look around

Travis Miller

base allowed the include or you you that potentially well ROE? like like Okay. a something What or allowed are slightly there true-up, below we other as keep do that mechanisms something that rate

Brian Van Abel

least two here have rider, components, with our riders renewable -- sitting investments. for we And have similar Well, for amortizations. rider. settlement year and sales component then, covers which investments big that -- transmission We recover do to as our true-up today, you if of some big to cost the renewable investments some of similar we of our lot look long-term the a reach the at deferral this Minnesota, the out

So we have investments recover customers. help that our for the mechanisms rider we're making

Travis Miller

for capex. those Okay. Got just you $XX Any growth rate that still for confirming then, and it. numbers? And X% billion changes on track five-year guys are base the that

Ben Fowke

and capital when you -- we're the that on on forecast, say Travis, track, the all is targeting you would pleased we're quarter what we I think We'll with update Ben. update half. but third we Yeah, will in this upper projecting. I five-year our are be of

Travis Miller

just that quick, in $X Okay. or real Minnesota And incremental? then that be billion would does include the

Brian Van Abel

but first necessary to That well, would mean, be is is yeah, I other the incremental; -- $X.X an acceleration, not of -- that's for all, billion us.

incremental. be So that would

Travis Miller

Okay. much. Thanks so Great.

Operator

we to Fleishman Research. go Next, Wolfe with will Steve

Steve Fleishman

morning. good Hi,

the Ben hear of just So being your good to have EEI. Chair and voice fun

the So make jobs on basis or commission terms versus they the decisions kind the they the the give based make just in to of on created impact to of investment, has recovery decision? amount like, on rate the are it going is Minnesota some that of indication how are going of

Ben Fowke

strategy and consideration. think they number factors capital for I will Well, you think of our rate. investment, a accomplishes into helps take know as But I with fuel job steel growth

So. solicitation to the that, those bring will the There be. we can I we'll and think a emphasize will extent better be in. projects

want We we we're the Brian that point good I you know that add for to will are a else. if Bob, solar anticipating very planning. anything and have don't price And

Bob Frenzel

think little package. I a early I Steve, level as the mechanisms, economic mentioned is job comfort But coupled think think opportunities with with stay rates it's innings. portfolio I and the the big Brian a the investment, that out creation, still relief Yes, on development, the bit

a was with yesterday, had positive some big even a full comments the got which line them. haven't time commission We We planning of from administration. the out and favorable meeting

of sit. details so lot than other you And we're that right don't to have a where comfortable with we now. confident share We and

Steve Fleishman

and impact sense $X have rate bidding right. waiting Do your see the that? kind All to billion. any of you're Or of all you of the

Bob Frenzel

know will people which put we some what know think make we of into And other as I through solicitation pretty would still impacts well. of we we need run do September portions, the the things the for before that decisions. But we would renewable to and we're run the August on little process forward. sure, through a confident bit

the with So side of that. we're comfortable pretty cost

Ben Fowke

positive wind our it put the consumer. wouldn't repowering we NPV if forward to wasn't Steve,

and will will, through spend that offset the likely of to the but acceleration transmission run think will talking numbers. about, think and I distribution the of it we we're point, real those some I that -- So Bob's

Brian Van Abel

just commission some savings or customer now color hopefully QX We approved the and end repowering show long on we in is this the the should front and got now Steve, upfront really in you repowering be environment. have Yes, and had the further repowering. road which the those good

we're that working on good currently think similar so would that. farms candidates And through analysis for our wind be owned we

Steve Fleishman

of most pre-assuming to these since that gets investment? would And are it it things actually things make related be you Okay. you approved who own you're would or like likely highly some pretty

Ben Fowke

Yes. That's correct.

parties. Third

Brian Van Abel

that's... think I

Steve Fleishman

question. And related yes... is last just last Yes, if question that all so okay. -- true, And is to

Brian Van Abel

there One that -- clear are thing either those to or submit PPAs BOT. a a for be PPA parties extension could on

others. investment of combination some our plus So

Steve Fleishman

how apologize. this about on Great. time... And plan I as is should we for financing you question know, just as Last which more the think much incremental,

Brian Van Abel

billion is filing, the talked really find expect is think we they about in through But plans commission same incremental and developing a through through part, capital to roughly our other $X.X billion $X.X Steve five-year the pretty about 'XX the go process, this way we at accelerated. 'XX. this that time as move before the indicated for quickly. And the we're we Yes. to look we as yesterday

incremental capital by matters enough with what will plan all five-year spoke size before, that But timing put together generally, this have October. our out fund capital that our for five-year roll if include capital, we and enough lines financing so, clarity our about and generally plan we and up, and And in if significant it's we structure. to consolidated we'll

quality the it's and that about strength Now, maintain to as spoken we've important the of company. financial credit before,

Operator

Sophie to Karp Next we'll KeyBanc. go with

Sophie Karp

and Congrats quarter Hi, taking on question. thank the you for morning. good my

Ben Fowke

you, Thank Sophie.

Sophie Karp

build about being questions just I'm stay we your this that, to from the year you rates a of while, see around and kind kind this I periodically on overall from the a to and basis more, the wondering That's to on of -- of on strategy out move just of for So strategy a consequences period since be COVID mechanisms guess alternative think could if But pivot question. the we here rate obviously outflow for away and rate longer? if case the strategy effective and where paying continues a will this the COVID more in of situation. -- is permanent to my away ongoing stay Thank more is a move for you. given switch to and a economic filer kind the case be decision right cases say the

Bob Frenzel

Sophie, Good hear your voice. to it's, Bob.

and around we're little strategically about and which we You we keep in takeaway. rider the think transition let were to is, have utility grid billions I clean states the of and and but is do mechanisms have term healthy. sort various And infrastructure context in know, and in think financially of of behalf modernization a a question, lot also my how broke of our me you up making dollars the cases the investments try address on there, of energy customers of pandemic you our longer rate

backdrop that we So that's the work with.

and our stakeholders file we're with Colorado. mechanisms with need actively conversations by in in cases We are now working regulators obviously which rate to and we engaged would Minnesota on right

a saw that file in well. electric on in true-up our and execute in and in think as helpful you've continue areas If would allow our mechanisms businesses real us a in sales rider case us time have I that's you bit of invest the decoupling we couple case strategy. and riders, gas to of seen recovery, we stay settle think then us Colorado out our that's which to of

customers, which for And mitigate the I that to our in our we're infrastructure so to right strategically, invest can bills low our for to. we mechanisms cost the think places. we look need keep structure, by we We're going always in keep while

with cases, we'll commitment rate the continue but we to the and our goal be keep if to be them, into creative, have balance to that. So all we financially utility not and avoid go of could we probably healthy would so

Ben Fowke

bills for bottom And customer our what rate that's on to our is line to of riders on CPI. on whether mean, and all track Bob levels we're total and combination, expansion improvements reliability while going clean it's or in That's the experience traditional we or building what said, I customer our what remain objectives, think still And energy of pace Yes. forecast that's of our just achieve objective. are keeping do. below cases some we the Sophie, I

make -- product that's affordable. because the key our while -- keeping to is So while not investments, thing, these

Sophie Karp

Thank on if follow-up I may, And O&M. you. a then the

and cost that year basically into ramp give to shape Could going find throughout Are we then well. seems year. the entered kind in offset sense that much and think some you us cuts run guiding to trying pretty year-over-year it rate the and about throughout it the and situation had O&M we point the growth of the this? should it's second for of O&M and like kind this impact you trajectory you right at even a half up flip steady of the are this of How So year? should plan you to or expect COVID now a you

Brian Van Abel

Hey, is Sophie, this Brian.

pretty you said quarter. it, ratably assume over I steady the think a you the way run rate

continue we see So I it to right, thinking that think you're rate. run about

Operator

Glenrock Associates. go we'll with Paul to Next Patterson

Paul Patterson

Just a few quick follow-ups.

guys how of I'm -- Minnesota to this that? you to capex in didn't it. parties much going guys that you did -- completely sorry is third and total How understand or the much be back if were I subject So might contracts, saying

Brian Van Abel

grid power purchase come end our is take -- our of we agreement acceleration that saying result can projects, our covers plant wind solicitation, expansion in $X.X do own, CapEx as which that solar they have in transfer, BOT's, a that ownership the at Paul of the think we incremental But a we'll of at could facility and bid own all that in look But we but and that's at look that and wind own will we're or incremental billion perhaps was our talking we Minnesota, spend. an spend. -- we'll in infrastructure. incremental they projects advances about we that those. well at a our and bid into I with the from in when the own EV would perhaps independence a in coal also The is and billion day, ownership then $X.X our will of And encourage bid of the bid Becker, to as either and build, what

Bob Frenzel

we're not get August. know parties not are to which process, build the we going more be going going of to we're other end until towards what to -- Paul the through would

Paul Patterson

otherwise. then of And doesn't happen capex it clear. This something it in think now. the -- bringing in occurred not an something we in to future. it it? when It's about have incremental, you that from anyway, incremental, words When it -- future would say suggest. words, mean moving just doesn't to from other Is as the the from wouldn't would the your to think wouldn't trajectory just That outlook Okay. are accelerated incremental, change other you way is be

Brian Van Abel

Paul. Yes, that's about think the it, to way

Paul Patterson

Okay.

I think respect then And to I the... with understand.

Brian Van Abel

that billion an it Paul, already just we're that's the on in the forecast. is, our calling our forecast. would existing $X.X something acceleration think not be billion to think way about that's I the $X.X not in -- The of I incremental, look, mean,

of defining course the how XX over might years, it we're Yes, that's Now happen. have that.

Paul Patterson

really that goal, to it. is with CPI That's the then And respect still appreciate I X%? helpful.

Brian Van Abel

by Yes, extends that... a I it I mean jurisdiction. Is little think bit

Bob Frenzel

good Xcel think That's Yes. about way roughly at to level, a it.

Paul Patterson

If I just weaker we if road, any people, this, things other by discussion potential mean, than potential bigger a maybe jobs a I'm been then, any is this if idea see could a this -- of maybe upsize follow wondering of is stimulus I'm in touched general, just this? on economy. we do but or continues down something economic Okay. there like, good have maybe there if idea a and has -- the is saying, what this you hey, And sort to

Ben Fowke

I I'll I think but the other weigh jurisdictions. would think in on let this probably come it's from Paul, team

Paul Patterson

of And that. Okay. addressed you sort already

Okay. so I appreciate it. you really Thank much.

Ben Fowke

good Thank day. you. Have a

Operator

We'll go Kim Insoo to Sachs. with Goldman

Insoo Kim

end year assumption, making base question. assumption of costs? Thank what type your for case quick on have one you. I treatment just In of COVID-related deferral you are the guidance

Brian Van Abel

deferrals. debt Brian. is Around Insoo, -- yes, Hey this bad

QX, at expense, talked million everything constructive that's and we $XX look we what have And for XXXX our that of going consistent in think with this. and regulatory we in we increase our if seen we and deferral about the As months bad that we businesses around it orders, roughly we our impacts our deferrals. think about of about XX% assume about the six we thinking we've the for as three happened When into remains covered have get right, XXXX treatment debt pretty about waiting are two Dakotas.

those of the deferral go evaluate like deferrals as constructive through we place a and continue we've you reached orders year. the to So with the we'll balance feel

Insoo Kim

it. Got

bulk making So happened guidance of of what's approvals least embedded in the at bulk the somewhat the of terms were in then. -- that

Brian Van Abel

That's Yes. correct.

Insoo Kim

it. That's all. Got Thank you.

Operator

now additional Abel over any today's the concludes closing Van or to back I turn question-and-answer will for session. remarks. call That Brian

Brian Van Abel

all questions. in day. Relations Please Thank this Have Yes. call for a our morning. good team any our you follow-up earnings participating Investor contact with

Operator

thank participation. And today's you for conclude that We your does conference.

may disconnect. You now

Xcel Energy (XEL) 30 Jul 202020 Q2 Earnings call transcript