XEL - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to Xcel Energy's First Quarter 2021 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions]. At this time, I would like to introduce your host for today's call, Paul Johnson, Vice President of Investor Relations. Please go ahead.

Paul Johnson

you. Thank welcome XXXX and Conference Quarter Xcel Call. to morning, First Energy's Earnings Good

are -- Chief Abel, Fowke, Frenzel, me and Ben Joining today Vice Executive Chairman, and Financial call website. regulatory Counsel. are Chief developments. This President 'XX Officer; Amanda slides will Rome, are President share our President and that review we Operating Executive General Brian results recent today's Vice Van Executive Chief Officer; and Bob Officer; available There on and our accompany morning, XXXX business and

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

Ben Fowke

performance event. not strong any during that outages our during systems material morning, start, you, out by Uri. reaffirming electric our XXXX thanking our with Today, last start to thank proud guidance and our employees We're and for our share of their But experience $X.XX good a share quarter everyone. $X.XX gas that are and Paul, first customers per we Winter outstanding work power reported compared to off I want year. and earnings serious to of we Well, did good natural ensure I'm plants, strong per range. Storm our of

in need increased have that XX/X are learned mind. of lessons come few resiliency, gas sectors between to dispatchable and from there the to Uri, to the think available generation a need electric and lot are the the a interdependency I invest

X recovery hedging recognize customers. life on important winter customers impact during of over in Well our for investment X wind turning So our We're defer the of billion of regulators our that natural buy repowered while the policies year cost The we'll to incremental despite February, plans. save we or seeking as costs and It's we and performance, operational all PPA our our the storm. fuel for out we and in regarding to ALLETE approved process to resource. XXX-megawatt recovery strong the fuel to incremental mitigate followed will purchasing buyout extending propose cost by from the procedures our proposal incurred $X to states. energy the $XXX million. a filed money renewable In gas

increase of Sherco high-paying filed advantage local economic to year bring build The to the of economy. in $XXX operations investment plan Comanche project our projects X Pawnee megawatts of beginning of plan XXXX the construction the retirement retirement confident early X and XXXX, XXXX both XX% at plant XX% In to XXXX, takes good, We gas reduced units customer includes a near and in coal in for and XXXX. commission later facilities will this estimated in mix our plans and see the of transmission Coal requested We jobs will details Colorado, proposal resource on early our commission XXXX. March, million. solar also Hayden our carbon conversion XXX natural benefits. the which decision by of retiring in to an existing are with The emissions renewables by filed we and our our fuel reduce of to

storage, XXX our resources megawatts distributed and of megawatts megawatts megawatts X,XXX programs. scale universal resources plan, the of through megawatts of X,XXX solar under of flexible Now add X,XXX X,XXX solar, we of will renewable wind, energy

make XX,XXX Minnesota to Minnesota of we expect continuing resource adding and are goal resource by decision renewables our plan nearly the this the plans, on a anticipate year. megawatts Colorado to XXXX. In and addition, reduction carbon Between to later progress we system XX% meet our

of transmission miles plan We filed that Colorado approval addition megawatts request will pathway The and in and $X achieve kV $X.X work. renewables up its Colorado. with backbone billion goals. interconnection voltage estimated incremental the our for XXX an and reduction The lines build to carbon of network enable a investment incremental proposal to transmission of expansion also XXXX creating is line billion, of X,XXX cost upgrades, transmission backbone XXX help support

this project year. decisions later on Colorado expect the We pathway

roadmap Turning billion of which MISO for expansion. future on planning investment. its conceptional transmission options constrained regional a projects This for system investment rollout based development scenarios which recently to and $XX presented NSP of the long-range could of roadmap, transmission the footprint, system. identified set potential $XXX in in MISO billion full result an highlighted drive initial up could and to areas

transmission conceptual significant and for the second XX framework, this of decade. will highlight The the does plans level into opportunities transparency expansion high resource a long-term the preliminary, our likely half robust lead very to years. in is it investment this over and transmission provide will next While need capital

racial Now and ensuring as my you is highest know, force of Xcel reconciliation. Energy one a for is justice positive priorities

all actions. advancing are together, But our solution. in the receiving disproportionately work recognition a community, that and for our we proud continue black equity, organizations We are our to we a by proud a addressing communities and following we're is a We've are creating can having more and a real community also of supporting company, the of We're affect investing unrest just a country to racial I'm in rebuilding communities. part towards deeply got that dialogue do impact. which working COVID-XX committed be company as impacts, to more civil society. in engaged

XXXX be admired cited a Best to Energy as continue among for rights fifth the named consecutive and for Index gas was for Work Corporate to Equality LGBTQ score Fortune a designation Place top company earning perfect a companies. And for LGBTQ Xcel the ranking by year. year, the Equality equality, in consecutive human example, campaign's eighth most among For electric the Magazine world's companies we second and

So with Brian. that, I'll it over to turn

Brian Van Abel

Good small capital morning, natural following: for year, a by Most per Ben. higher from everyone, margins $X.XX $X.XX share earnings operation, year. the for booking increased to electric the riders by us. Thanks, share thanks per share, last and margin drivers earnings driven joining and higher good to gas and include market increase recover investments outcomes $X.XX prices. significant We our to start compared primarily had the reflecting rate trading per year and our

per earnings a addition, share. In lower increased tax $X.XX effective rate by

depreciation service though, reduced the larger are and PTCs to which investment electric drivers into ETR. back largely share, flowed lower wind per to our tax Offsetting customers through interest a production neutral. are credits farms largely were placing positive lower earnings reminder, earnings these decreased year. earnings expense As share, capital margin and Lower program. $X.XX per several reflecting by due by last AFUDC $X.XX increased

$X.XX items addition, share. decrease earnings by combined In per other to

Turning year adjusted sales Weather declined to and first sales. by electric leap the X.X% quarter. in

and was expected Our slight a sales forecast QX. assumed a in that decline lingering we impact from there COVID-XX,

year. of starting in COVID However, felt on last second largely were of quarter the the sales adverse impacts

expenses. result, the the weather-adjusted we we quarter. of increased a And anticipate quarter. year, modest to quarter-over-quarter continue Shifting O&M comparison for growth slightly anticipate approximately As sales for a to sales next positive X%.

for wind base relatively flat offset decline a be to in O&M. new XXXX, expenses incremental O&M reflecting annual farms, expect by We costs in

significant in ROE XX.XX% a November of a request the of New in PTCs electric to the are customer, million In fuel this XX.X% rates distribution savings the million $XX decision and of are an were reflect and turning wind of and equity Sagamore an reflecting Dakota of electric wind filings. decision $XX of million year. Now seeking January, a a Mexico after fourth farm. XXXX. we this rate PTCs rates the implementation regulatory final on growth, from and case and equity a implemented The rate in North filed Texas reflecting commission a our we rate an XXXX, approximately is increase seeking surcharge and back March quarter savings seeking XXXX requested in of of investment ratio loss In to coal fuel by net of in filed cases New ROE depreciation Interim we farm, later ratio farm. and is retirement rate wholesale In of electric case year. rate the from commission a early the filed XX.X%. planned wind the February, Mexico rate XX.X%. quarter requested due after plant, A a driven A transmission decision net the based increase January expected anticipated of to first increase of our Sagamore to changes expected $XX and in Texas Sagamore with a

future going into filings we go, rates as Colorado electric effect first XXXX. the anticipate a half of with in rate far this filing summer As case

We case into rate Shifting with in case. with XXXX. agreements in our rates reach November, also Minnesota Wisconsin electric finally, to are of effect working rate regarding And parties for filing plans anticipate settlement to a interim going we January renewables.

March, to closed of our wind on important buyout repowered continue farm. strategy. acquisition In the achieve the PPA we milestones XX-megawatt We in Mower

$X.XX expect we recovery reaffirming significant interest a Storm guidance gotten share. provide savings fuel $X our due associated incremental for the in reduction great will to lag in Winter the with our for to updated Mower start assumptions, costs expense billion and of expect to earnings customer guidance are off and We've We've of the customers. $X We carbon year of unplanned per our Uri. XXXX

our manage to the as costs, work from fuel commissions to carrying impacts. overall bill the to costs we recover the seeking our we're we with As customers, not recover help

guidance around quick I'll expect summary. that, of with the a We range. midpoint deliver continue to the to With wrap up earnings

our lead the will finally, buyout deliver take in we confident PPA to our of buyout. long-term into remarks. our Mower We we filed we execute transparency half investment X% filing can objective continue filed robust capital range. our which and We and the and Colorado strategy plan, Operator, the expansion plan to We remain in acquisition to PPA elite now Minnesota. will range growth our will opportunities our and earnings wind solar proposal of on questions. prepared We the resource within second long-term transmission and decade. likely provide of reaffirmed our concludes farm with the This dividend guidance X% repowering

Operator

[Operator Jeremy JPMorgan. Instructions]. with with begin Tonet And we will

Jeremy Tonet

transition overall? Given rest I you there investments evaluating this transmission, type on your what you're proposal? was your does needs the across expect footprint? wondering, transmission attention national are do currently, of receptivity Colorado similar how just of And generation the impact to

Ben Fowke

XX% almost been of affordable the Colorado, from Well, And are to that. very to if to reduction we're might the that out recognition I the out you need comes of still it the a we're policies And achieve, energy, an an backbone with coming favorable. I there's case it think yes, be XX% a Jeremy, Biden for quite be point that able that do affordable price our going response carbon Infrastructure of think mean, with Plan. of the going when customers, all the frankly, has I more to strong in all in price which made in that, some of incredibly factor coming renewable

create about in you when If plan, of our referring investments of headroom you transmission, customers. XX,XXX -- grid, solar, for of for affordable And make product that the to megawatts extension the transmission if renewables, refundability, if much affordable, think additional for for you like direct more our PTCs, we that an the normalization promises you're course, which, to. the keep it, your ITC opt-out includes the

opportunity really by in tremendous a the our regions. that of that got front keep I'm I optimistic point aided in us So transmission the And that's of price mentioned with that policies low. an And will The all but for helpful some opportunity. that I you the attached we've hopefully, in that's build think see studies slides MISO that, of where demonstrating preliminary, you could can happen. are are investment enormous we've

Jeremy Tonet

this about over laid a And great there a how period as opportunities should it wondering lot very of CapEx And That's of out you helpful. time. CapEx we long you out there. just think outlined

think growth this this kind As could firming see rates, some Just that X% you the there mind. wondering X% time comes in at to of do together over of a point? you your how upside your up to it relates all be do longer period? kind Or

Ben Fowke

to a only you talk can be mean The firmly that But growth half upper I'm to made X% great we we long-term describing X% rate, we believe about for X of a long in talking that. we're about range. not Well, about helpful X years, a the time. we're point. things are talking When I

we So of give right. that got you us comfort I'm that of in plans And again, we we quite confident that hit upper have you in range, should that. the be that transparent to give we've front the range opportunities -- can will upper half, believe

Jeremy Tonet

Got it. That's helpful.

one, one could. last Just I if

could sales the sales impacting year and reopening recent you If over SPS do territories, trends to particularly trends balance speak across see of here? you how the

Brian Van Abel

Yes. good question. Jeremy. Yes,

I monitor from broader. they're when talk pre-pandemic we specifically, some talk in say those -- customers about oil serve We're major bit I'll we touch they're think a that SPS little -- our substations optimistic. cautiously a specifically, of about I with patch area, levels. and and reaching talk And we would about in the our loads

they big as focus them look -- So ways that electrifying there's the carbon hearing they footprint. majors, a and improve a that can at rigs oil that's a also pumps there's on their good from sign. from We're

we're So at territories, have in we're optimistic starting Colorado capacity starting restrictions. Texas, COVID Overall, and out a no restaurants. I we're In our restrictions in XX% ease to I Minnesota say, down here, for would Dakotas bars to with of think Minnesota are and And hearing Wisconsin up. come there. and and the the what about we

economies. we think this feel for good And the on look at And our side. signs leading year. So our all the growth I growth positive would there's we in X% say indicators in sales year-over-year electric about I pretty

Operator

hear Morgan with will now from We Byrd Stanley. Stephen

Stephen Byrd

prior on So some the on thinking transmission, more just building of questions.

was potential impact here. just the and Just of CapEx this over time? from about in if you out process I additional And sort some MISO your MISO laid this will little time? just in bit could curious growth. a talk thinking the you steps your How over develop might How

Robert Frenzel

TOs at goal expect of work you. Stephen, with we to it's through renewable recommended year, of by owners, over as MISO XXXX. the transmission series the Ultimately, plan, of owners end of service being lot areas Bob to process in the those MISO, a one projects particularly projects are with over and Obviously, in be hear out coming high-density here. largest their territory those the a MISO territories to in course since well. Good territory. MTEPXX Look, our the from areas, all transmission expect the all a of of we'd the with the

for to as of Those capital and we But clean that growth lines forward. projects the forecast. the long-dated energy see in make Ben So the about shared investment that going we generally our back items, half we this transmission MISO of that goes that the and talks profile when that's the earlier. X-year industry perpetuate growth the have needs decade are in transition, don't our new major elongation to

Ben Fowke

renewables, very already Stephen, even build, the which that throttle is advantage mentioned the customers. I'd mean, would just still earlier, just that the consumer. as add add been our for I transmission a low-cost we taking -- question that of I And always cost affordable has great had plan. I to an to with

even passed. the policies think, more -- good I which headroom really administration that have You -- then focus are like with really tax our that's get excited expensive, of Biden creating ramped make for shot pretty less And for Xcel it. a proposal. while It electrification, is great bullish I'm of the keeping product a investment, very, is, to things with and to for affordable think under about our our that Energy also us up on customers. going allowing very I affordable, getting lot that

Stephen Byrd

Bob, saying... you were

Robert Frenzel

as Ben haven't earlier, the as mentioned aren't the opportunity rich, the need that's to outspoken on the the more and of to has that an side, renewables as probably country is and to as country, transmission And while one Add process, they energy region investment. been be long SPP opportunity, right? going exporter

a And capital have either going the to a So to resource-rich lot it, to to West regions this think will in are regrets the the we the some, export SPP we projects East have MISO MISO of provide place. Coast. longer-dated enable lot But call or also I'll and ROFRs country early. more studies of no projects

thing. So you as of have our that's the key right of first in really some we -- other We know, states. refusals, probably

So excited Yes. about it.

Stephen Byrd

those So tax get it, cost kind so combination the for MISO of the if visibility place adding of these support an credits tax because up credits with transmission more could of kind half anyway the decade for form reduce that spending you the I maybe on in of together. credit. first have in the second of and helps a together, That like really guess, potentially, extension solar, in federal in you half, of already wind the that example, new and tax work lines storage

Robert Frenzel

I and mean, think I what on be plans had Yes, the -- it's price in how affordable. pretty point conservative our resource numbers would we some XXXX, by very

this, creating that which you have and much in to affordable, do more sectors. if those grid keep we'll Now able the opens the again, our to, opportunities be in becomes make investments headroom it electrification affordable, that other up product

Stephen Byrd

One helpful. really just That's follow-up.

your You've you've talked plans, energy generation. sort resource -- often storage role of of in the role versus about the peaking of

kind periods storage, less would towards little that potential all the a you little for points are for you trade-offs the You've to limited through sort how a you of of really more for technologies? between bit ride peaking bit example. peaking? duration, for Or federal generation raised the thinking of has balance think storage, cost the the about about sort where of do of as But tax extended two tip credit a storage, evolution output a be was renewables low, storage need I about good and just lot a might curious,

Ben Fowke

Colorado think resource of storage. think why, addition megawatts -- the Well, for megawatts example, of called of for flexible we we in identified one plan, reasons I resources. That's it's X,XXX in to XXX the I

gas we'll still for Storm said, it's like Winter how durations, term there much the going are let longer or That to it's batteries. if you So economics if limitations can rely to Uri. batteries on aside, be

battery You our even X definitely extent mean, batteries than to need I affordable, or storage have we will becomes X-hour system. more hours. on more But it the that

Robert Frenzel

duration of now, Colorado of around long zero-carbon one any in our pilot X, hour organizations technology innovative gas a what's you or solve in with market, over for but short available opportunity customers. that's needs on out stuff X long-dated EEI decade. and legislation other Right there's reliability assets, next the Stephen, dispatchable, -- or that's and a duration at and storage, fired affordability storage, that the storage work and CTs, comes working can programs find the of on those we that we're hydrogen might opportunity look moving energy

can against point. We flexible we're this to build today. have we stuff not But it. with time, be So don't betting at technology, over that

Operator

Chopra Now question we'll take ISI. a with from Durgesh Evercore

Durgesh Chopra

I one just Brian. clarify thing, wanted to

guidance the depreciation explained XXXX I it it correct. have I the slide, On expense, you well, so but lower just think

the to And going lower expense you're expense recovery get driving and deferring that you're essentially that's balance what's over the on? the going So what's depreciation term? the longer on sheet. of it Is

Brian Van Abel

this revenue really Texas by it and with expense get you'd Previously, we Durgesh, it. Yes, the year, so recognize the rate case is thought the we'd end order timing. the of just the

this because just a QX defer laid we that so back given for next that is year, expense have year March. date Now we schedule in to procedural in

expenses in a there. change just our earnings neutral, So but

Durgesh Chopra

it. Got

got, Okay. maybe your for just mean, of for for maybe line you believe, recovery? terms those can storm what Uri And costs comment and I asking time just of authorization dollars. line impacts. not you're look recovery opcos, But of the time on It like there on carrying for but sounds in the one line you've just then in time to I recovery?

Brian Van Abel

Yes.

X-month So the generally, really customers. X our a yes, is mitigate right. impacts we've In Minnesota you're and help bill looking Colorado Wisconsin, period. years and proposed on what it's over But to in over

through trying recover the think a our not two of because to we'll over over work here we're I proceedings costs of And the anywhere to have those So it's from mitigate to summer. we And next there in carrying the overall years, $X customers couple that bill asking years, in slide help really they're where the impacts. also it's $XX.

can looking really help here. customers our how So at we

Durgesh Chopra

Got it.

decision summer? during on the So you is Minnesota sort a said of Colorado,

Brian Van Abel

It this yes, should be, yes, later summer.

Operator

Miller question a Moving from on with Morningstar. to Travis

Travis Miller

transmission of earlier know put it projects. the it. getting was being that And week then words don't of getting how know as don't what But other with you I can anointed think to you list? this even probability I saw that, probability yes, kind the this on, the the pathway, of does the investment discuss that list change call Back Colorado about top that how regulators, project incremental on of that what I I nationwide approved. beyond

Ben Fowke

been think Well, for as that I know very the interim to the think, our I ability to helps, hit much mentioned those, how goals much mean, but we're favorable I shooting it remarkable I I in mean reception, very to Colorado. -- it's has don't tied before, and project, I

So or know to that. I have if you Bob, to add anything don't Brian

Robert Frenzel

No. well reception the filing Look, received. to I the think initial was

not It's we move right our going calls in this to and expect other the that in state, supportive. and for over that had think plan, renewable supportive, this think pathway goals. they've alongside are right to excited the asset. which But more point, us, of Colorado. ownership the very or declined the the to We owners could of that as transmission operation I of point, to transmission construction expect That we're goals, mentioned, participate able in only owners for to state filed expectation we our I energy providers our forward. very renewables goals of we owners But to And when time. the at that for build are to our megawatts in with that's X,XXX to -- now, change state At own us access Colorado how we're Ben be -- help plan, but proceed X,XXX hit going than being transmission the that state resource other going now. opportunity, of and alongside their about its hit filing

Travis Miller

Okay.

one clarification on Just that additional real quick investment.

plan $X would $X.X then that and $X.X billion does -- what just the in $X remind billion, filed or billion is there included billion? the be that's could for So you've again, be that me another extra

Brian Van Abel

to Colorado, carbon how pathway, rate transition might that renewables, take at where in take cost. again, all bills to at specifically in Yes. southeastern most I part said, with But The to where There's Really it of Colorado. at the located of is, million that down Travis, we that it, voltage XX% we resource circuit it's about going about for of billion. incremental loop on located, $XXX think would are the once get on approved, is couple we an to Plains assets, that and the firmly to base keep low able $X going it support you XX% Colorado. way renewable much and be you back our Ben That's call initiative to dollars, state I'll billion look double those come additional we exciting be an drop reduction, the get the they're need plan another Colorado penetration and and as costs. then capital comes assets the extension going inflation an loop hundred then And need of Eastern XXX below probably $X.X into million. or that the know to

Travis Miller

on project. I Okay. investment federal-backed that What are high one more your suggestions are could terms projects about support? your What there thoughts credits the in in if sneak loans? thoughts tax Great. of or for certain transmission on priority And

Robert Frenzel

a in reliable -- either and with for like keeping the affordable make to in the captured come accelerate to energy Yes. opportunities we've portfolio vehicles opportunity that states and and look electric own very got Ben potentially that incentives accelerate customers' more at lower. our customers. then affordable bills or other and stuff that's conversation, it it early our Any I think the Look, but plan more plan,

And So federal on at a can passing do it's I level. contingent we we it without But legislation or think it's price helpful. balance, the on very think with it. affordable not at

Operator

question a of we'll Now take America. from with Bank Dumoulin-Smith Julien

Julien Dumoulin-Smith

rehash MVP quick on we and to just sure just make it of clearly this. proposal being future to to projects you like underway? With times. of decade I want respect hear have being more your get X this just the protracted level of fairly versus Obviously, a at I'll process, effort make these what's the fairly the last transmission start this looking confidence this to discrete point, been contentious MISO on these

want just projects. of reflection near-term confidence sense a sort I around of of to understand processes So your these in

Ben Fowke

you the process. not Well, I mean, be take quicker I'll that's -- and mean, in let RTO, an -- can Julien, when of advantage of I you're that's to Brian move mean, it's time. RTO -- Bob in but we going definitely comment, but Colorado, that's I part ultimately might in an

So it need compelling, and built it's the I it gets and how will time, to allocated. how it's but take get recognize is And going done.

a transmission think think a right we've mind And to cost. And I record a Minnesota. keep track in in think very I demonstrated of at good building of have important that first I refusal it's helpful. that's we got very do

I'm if answering your question know don't fully. I So

Bob I any So if commentary have share. don't know like Brian and additional they'd to

Robert Frenzel

Julien, it's Bob.

about probably MTEPXX. regret some come in stuff of think it no tranches. out that I There's

expansion through mentioning. transmission we'll that I of probably will maybe as you're the harder planning see get stuff some MISO think more to

well. So projects a and lined the time in very up point were MVP

we'll I year. the owners MTEPXX. the that And in that out hopeful see working recognize there's think needed or some sooner transmission the come MISO of later. see MISO And am that end MISO I and think in rather the that's with I than projects of the those you'll by stuff

But might little this there's the think stuff it said, could state's goals, a billion, be and $XXX company's they need large will bit $XX and as -- more that Ben happen. contentious. talk positively I numbers, a take longer, think more meet I little billion, absolutely when about to goals

Julien Dumoulin-Smith

to walk decision open-ended. be earning follow-up, guys, And bit? especially do Excellent. you right. on to in ROE. It the want might further leave little can. but file if a that All And I I'll somewhat it through one Colorado here, evident, your

Brian Van Abel

filed look on Yes, AGIS our we really, had we're I originally still a our We putting a a deferral Julien. CPCN things, we balance an our costs, wildfire right? deferral sheet. for AGIS mean, those couple have on at wildfire investments. and have But rider. of on rider We and

You to don't large. those get want deferrals too

one lag we jurisdiction. have But electric So regulatory some Colorado of the piece that's it. also in

investments how are it first we're year deploying and kicking economies it really And our road. look up the in there so about down time I our look that the to add to we this in COVID making in putting the we're we're Colorado, And the really ramping and deferral as of it's sheet can to XXX,XXX think at really advanced kind I we that getting that and that it's is cash of large And meters, the about meter kind on about coming at talk and and on door versus deployment. again, balance it terms that, out the the at starting file. see of of of that and strength look

Julien Dumoulin-Smith

future, to you the way, may to earn relatively right. I'll your it land? expect this into wherever Great. be close that All But to able put authorized

Brian Van Abel

I mean, an expect outcome we'd close summer, This next right? get that but -- file this case this would won't I gap, until year. we here we'll

those year in improvement we rates and some see as lag year this Colorado into So effect. you get regulatory will next

Operator

Fremont to Mizuho. from on Paul Moving question a with

Paul Fremont

when Is $XXX investment? allocate Number pathway, I million it 'XX you just would look for period at Colorado want I how the if to loaded? be of a sense $XXX two, number even of it the fairly would million that hit. back-end 'XX? get through Would Congratulations, one.

Brian Van Abel

think the a loaded. kind more Paul, bit -- little it back-end Yes. more of I of in

bit we little a have You'd of through late recovery get through go the as an -- spend year. go we proceeding, approval this the

X-year back And next is of year, so spend in our the but you ramp-up to start forecast. really half the

Paul Fremont

Great.

the last be it So lion's like most years, share? the -- two would is

Brian Van Abel

about it. Yes. That's a fair way to think

Operator

Levine, from Next question is Ryan Citi.

Ryan Levine

tax in And PPA for and Biden bill, of the opportunities Curious the I the accelerate if the future there pace how some context of the or infrastructure some follow-up of comments buyouts. been progressing was on decelerate on transactions the any just those ties? what of hoping Biden to PPA provisions is? could have potential plan and the the

Brian Van Abel

yes, question. good Ryan,

step have customer $XXX approval a or savings, it's of we've we've -- we've and if to buyouts. And that's is CapEx look what take If say, I related about to that. think, delivered. the I delivered PPA back pending of at amount million we look comparable at you and

our could helps and counterparties for it's infrastructure we've now wind still customers great years look up us we $XXX PPA continue I of And they for million I of been customer out PPA our of buyout about credits, potential longer-term heard were to think at repowering strategy billion see farm PTCs additional me in of the deliver been. a an we'll plan buyouts XX now buyouts contact projects So have what the a $X a to The And in affordable repowering, about, with that we savings. coming and with and strategy X think are extension talk stay what with to absolutely and with you've PPA great Minnesota, us. possible. approved that opportunities

of presents I a long-term longer-term get the so absolutely we if And credit. that think opportunity extension an over

look the customers for works when to continue opportunity we it we'll So our an opportunities shareholders. where we'll find transact and for and our works for

Robert Frenzel

present in I'll resource the we through are Bob. move Minnesota, process and proceedings. Ryan, as just during both Colorado that planning themselves say those other opportunities those it's that

strategy, on to execute Brian goal think we as there's so we said, And got and a opportunity. still this

Ryan Levine

incentives a federal some those rolled thoughts that on in And your some of could mandates of if the vein the or context of then EV business service to territories build-out, to out? curious impact your on how were and be federal broader impact the some similar of

Ben Fowke

if Well, I that all comes would you we think plan. of the it's goal know XXX,XXX things charging so, the getting very proposed with EVs supportive consumers And anxieties had of that. the certainly for there the that one and everything is the under justifiably road stations be diminished that out have, range as that we on have

that be and are great encourage And to to helpful, peak. but pioneering subscription only the load prices only the that just rates are needs, transport minimize us, customers all for they minimizes customers, I customers. it's infrastructure not low. benefit and encourage, economics And other think So we'll for is will that. to I really, charge the required, things And associated going pretty that think I off -- And going this think we're but again accelerate have the keeping it benefit electrification with of EVs of all compelling. and help

positive. very it's So

Ryan Levine

that infrastructure EV were can numbers the if to any be there potential deploy additional to may CapEx to support put programs, around you Xcel passed? federal they the have around Is

Brian Van Abel

it, forecast. our about Then I Minnesota and EV EVs have states Yes, our we $XXX the in would stated for our we that in we think million EVs. really have by carbon of And capital have that's we emissions territory kind accomplishing X.X Ryan, about industry-leading some with the of penetration we're the X-year XX% of is we half back goal that, in reduce right, our forecast. Xcel transport million current -- with say And sector. what And and service XXXX. way helping programs to Colorado of in pivot

about in up. kind if incentives penetration So you that of And faster, XX% that's ratably, say, for can billion it's penetration. help another that federal that I scale drive $X.X estimates. would terms of the And

is. So emissions longer-term how it and here transport our with a clean the opportunity as take from fleet carbon help we good we view as pivot out the really sector

Ben Fowke

to increase you us low, keep that the and denominator our tends I investments. keeping to helps from all don't contributed costs EVs, with virtuous other own allows cycle, which, again, customers too. because, does that the to that, if one, All even prices will make again, the mean, low, somebody that's and programs, benefit

Operator

will Abel, gentlemen, will CFO, the conclude your back session. call question-and-answer to and Van I Brian remarks. Ladies turn this closing for

Brian Van Abel

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

Operator

do now participation, conference and And disconnect. We this may for ladies conclude for gentlemen, your does your and thank you you today.

Xcel Energy (XEL) 29 Apr 212021 Q1 Earnings call transcript