XEL - Earnings call transcript Q4 2021

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Operator

Good day, everyone, and welcome to Xcel Energy's Year-end 2021 Earnings Conference Call. Today's conference is being recorded. Questions will only be taken from institutional investors. Reporters can contact Media Relations with inquires and individual investors and others can reach out to Investor Relations. And now at this time, I'd like to turn the call over to Mr. Treasurer Relations. President, Vice Johnson, and Investor Paul Please sir. go ahead,

Paul Johnson

welcome Xcel morning, year-end conference Good XXXX call. to Energy's and

Joining me Vice today Chief Financial Executive are Bob Frenzel, and Officer. Van Chairman, Brian Abel, Executive President Chief Officer; and President and

website. that addition, available share here help team regulatory recent have. morning, business answer our our on review Slides might to we you and we will have accompany questions XXXX In are from This management our today's others call any results developments. and

and reminder, the significant call we that our that differ of certain a and metrics in may will that, Information contain earnings described could to our are today's release. Today, As made during release And on are turn some comments discuss results our Bob. are anticipated GAAP forward-looking to reconciliations factors it over with from included measures. filings. measures earnings SEC in I'll non-GAAP the information comparable those cause

Bob Frenzel

everyone. Thank you, Paul, morning, and good

results, lives reflect Before before through want through It's homes people and New County, tragedy resulted Colorado our weeks this damaged. ravaged buildings on that or X,XXX their wildfires in historic been we destroyed tour Year. since year-end losing the the long just devastating and communities four over Boulder walk I a and two to being

and customers in damage safe our thoughts employees, exercised incredible I'm with families. of a suffered and including other partners and keeping were who or communities our weekend back own their each and homes, XX a the all for in are sustained their displaced, employees hearts of who and within and Our members of a diligence get truly of customers more lost these was contractors with hundreds XX grateful our areas. fresh XXX,XXX on to service outage below clock especially and lights the electric restored temperatures than around the More working some largely foot hours. experienced snow than zero heat holiday over while

Our to once turn as off natural manually went with we service precaution. days. wildfire And was to protocols just it our assistance gas lights, within customers employees XX,XXX door-to-door safety pilot aid relight over safe, require restoring service that three a mutual

thanks employees so to community In addition extend our members proud space heartfelt how who our and I our emergency responders, out many crews, volunteered want of my clothing heaters collecting bottles water to I'm extreme donations. confirmed alongside to down handing and team and with partners and cause time area. need. power and no deliver led continue investigate of Officials there in our this were communities lines the they for but fire, compassion customers the ignition to in of the and

due as wildfire Our continued focus systems the our hour mitigation winds on fires approved propelled remain resilient plan even and to per excellence. XXX-mile our when operational previously

four guided our values we the As committed, team to and rallied do, call by safe. our connected, trustworthy always

on our Moving strategy XXXX operational our another while successful delivering We to results. on performance. financial very to had execute year, strong and continuing

XXth dividend case representing provide our rate $X.XX We support First North reached throughout We year New and to Mexico, settlements our in annual per we Texas, $X.XX raised continue Wisconsin, employees and and guidance. we earnings for and meeting service the customers our of by share. straight Michigan. exceeding it XXth increasing constructive our Colorado, year, the Dakota or Financially, EPS consecutive delivered to safe, to communities. foremost, reliable pandemic, our of

on by these end reached Colorado, including our also settlements in recovery, storm proceedings commission transmission the first decisions we project, regulatory cost the plan and several in quarter. additional the and anticipate settlements Yuri We of constructive resource pathway

of over XX% Our a the nuclear fleet achieved in year. remains the country, top-performing factor fleet last capacity

XXXX, reduction the grid remain XX% to XXXX. part our country X estimated of Continue carbon to million reduction, emissions in smart more track install over program installed XXX,XXX XXXX. lead approximately we meters in achieve and XX% than and levels, below by also XXXX as carbon our on to We advanced in were plan carbon

As benefits wind planned, megawatts cost we completed our four environmental and provides farms customers. for savings which with of XXX capacity, significant

our now by and expect XXXX deliver emissions and clean gas reduce for our service XX% We energy for natural line be zero transitioning gas committing of business, XXXX X out our time end emissions. and XXXX, of accelerated by Scope the leadership extended X, gas X net also natural coal coal-free greenhouse we by to XXXX. to by to

employers to both customers and of states. ethical our plan named customer among preparing in environmental, across introduced for can workplace. levels recognized disability world's on electric new companies, on our veteran our on Xth goals Index electric simultaneously. the eight vehicle programs execute we financial, increased the vehicle vision, adoption also and perfect and implementing continued for for the lead And ESG deliver for for best our diversity that approval compensation-based metric I'm a and continue Mexico our proud We earned receiving inclusion the team New to XX for operational, year. Equality We're the a leadership, finally, score diversity Corporate consecutive a

Looking natural Comanche nearly maintaining our in Colorado over the resources reduction megawatts our XX% to next that add The December, of our XXXX, and reduced approximately reached accelerate as Pawnee resource plan settlement to ahead, our needed those XX% enable resource our renewable we're we in our Together, responsible will XX,XXX Colorado to the XXXX. our XXXX. to proposed to retire Minnesota add renewables coal by XXXX resource of renewables well conversion in of including will positioned X,XXX and system transmission carbon and an megawatts affordable advance carbon plans coal by plants. unit In additions retirement while carbon-free plans. a for sustainable X we achieve decade, and plans to gas organic plant growth transitions

X,XXX a the lines of a in provide Colorado. in the recovery The XXX for pathway region. with enable additional potential megawatts XXX project rider renewables the extension pathway enable double-circuit of reached an of resources our wind access to certificate The in of in $X.X also XX-mile a some We million and of investment billion $XXX to richest a settlement to transmission will new miles kV line state. includes settlement need,

expect both Minnesota project We resource quarter and and the pathway the the first plans the transmission year. of decisions in Colorado the on

As discussed, our not investment we've in changes federal capital previously plan is policy. dependent on

would energy However, were provisions enable clean included legislation that better help the the energy in build benefits the substantial and customer transition. provide

energy discussion with that the could to forward and nuclear solar, include credits. for stalled, Continue for advocate provisions, beneficial more tax option I'll price credits President, suggested some that Brian. version hydrogen, modest extended and year. turn modest for will direct With and to storage, as than a more for congressional original which with pay climate move could Biden has there that, be over wind, bill these This legislation this be build-back the tax it While bill. a potentially and our may tag support has there is better for customers a transmission along new

Brian Van Abel

riders for $X.XX following: natural and outcomes We share to $X.XX gas XXXX. regulatory drivers include had $X.XX earnings capital margins Bob, morning, by earnings per for in higher most booking year, XXXX another everyone. per strong The by electric and Thanks, year recover significant good with and primarily the per driven the increased our investments. share, compared share

year. to ETR, increased by share. In $X.XX rate largely $X.XX earnings earnings through Offsetting drivers investment share, neutral. our however, $X.XX earnings addition, margin Production which service by expense, last per positive Lower other a per flowed the capital earnings reflecting property wind back lower are decreased by to reduce lower due primarily credits reduced program. these and share. AFUDC and $X.XX share, $X.XX taxes were per other per large lowered earnings Higher earnings PTCs customers share per effective by to taxes, combined placing tax several increased farms tax are into electric items decreased by depreciation largely

electric expenses. Weather-adjusted recovered by the to sales sales Shifting increased We growth X% the Turning approximately as from to in economy X.X% XXXX. weather-adjusted XXXX in anticipate pandemic. of sales.

our capital was significant investment. we continues flat in This since O&M trend XXXX, an XXXX. flat as existing adding Our and renewables spend while kept O&M

increase will wind additions, other X% expect and We driven to XXXX, spending increased in vehicle O&M programs customer X% on electric farm by initiatives.

which our we the March. we on and equity XXXX test this is net based parties. ratio and ROE case, unopposed based constructive of year. $XXX a an week, an feel in rate Hearings increase XX.X% in outcome of We in million provide Turning electric settlement Every all to X.X%, for compromises, reached commission a of regulatory. on settlement decision an last Colorado will is completed expect were the

later this plant Texas The We agreement settlement increase also box million. life also of commission principle coal Electric approximately accelerates the depreciation the case, provides a reached XXXX. in anticipated The $XX rate is black decision to a of our year. which

a equity Minnesota. $XX approved natural decisions of for as and Colorado, gas and electric gas our lowered is million increases and customer based million a for our million requested gas to operations request rates $XXX in natural in of rates incremental for filed interim the December, current Moving reliability was ROE, The but capital XXXX. commission XXXX customers. In natural in in XXXX we increase for customers commission seeking granted electrical an year. of and commission pandemic on significant request to CenterPoint mid-XXXX. release, in adjustments included $XX Minnesota and this in of Power. $XX the both They lingering residential ratio cases impacts net million expect with XX.X%, schedules The the million investments the million week, case by $XXX XX.XX% XXXX driven The for on of and are in a due $XX the test made similar customers. by earnings Earlier step rate growth, we resiliency safety, for interim

in later Our actual in natural to release. below implemented country. commission rates earnings XXXX. results. national year We've We largely XXXX among assumptions bill average Details the our earnings. to XXXX lowest this average included was updated anticipate XX% to be the a residential decision in gas the guidance November in are our reflect Colorado and customers' final XXXX, Shifting

long-term of per reaffirming increased EPS With and that, summary. the consecutive with dividend growth wrap are addition, for delivered with XXth to We guidance In year consecutive which objective. earnings to $X.XX our within up XXXX a guidance XXth our X% XXXX earnings share, we I'll range, consistent is year. quick our $X.XX range guidance the our X%

to by Texas, to reached by our execute We Wisconsin, settlements strategy to by on to constructive Michigan. be We XX% in We steel-for-fuel wind XXX-megawatt North track Colorado, and continue achieve rate our system. plan Mexico, XXXX adding case and carbon New remain XXXX. reduction on coal-free Dakota

long-term regulatory We since we earnings We XXXX. and settlements in reaffirmed We've also including deliver resource and Yuri upper our cost kept half and guidance, range. transmission X% several in plan expenses XXXX X% pathway recovery, growth our to and Colorado, reached flat of confident our the dividend project. proceedings the additional O&M constructive storm we our remain can earnings objective

our now We clean remarks. and prepared our concludes continue we energy questions. the leading take well transition customers. this for Operator, This will keeping

Operator

Instructions] our with Kim [Operator question We'll the take from line Sachs. of first Insoo Goldman

Insoo Kim

we the keep cost some included to you drivers are Brian, that or X% that's O&M had that Just earnings. first growth forecast of third on X% to on those in you inflation you for think confident demand-driven in how impacted more driving now And on question, little versus it's getting get comment other the more of quarter X% maybe here? bit whether impact Could elaborate your offsets pace? some touching could also a what's you given this, seeing you you've

Brian Van Abel

for if and that's the guidance the Good And exactly at start XXXX year-end Yes, versus actuals changes. for updating at is updates look it just morning, O&M. when look -- are to Insoo. XXXX. the gave with just we guidance most on we we QX And I'll in what our

Our O&M O&M was. year change. number it is end in happened But of ended what up XXXX for the lower didn't than the our

an update costs weather had So through of to some impacts benefits lower manage that QX also of just We saw in what XXXX. XXXX you're actuals. seeing in the is and we

guidance X%, where said, with like just in X% of our landed. a that to function I 'XX O&M is So, we're XXXX comfortable

Insoo Kim

were And I XXXX that. still 'XX see think Yes, level. the I did below levels the

So sense. makes that

Okay.

fit like or have laid pay of it up you it given don't provisions, reduce will And fourth seems lot five-year did that back said -- to equity million the of better million direct meaningfully of the seems we with your a what the frontiers, in loading, energy-related your that provision know healthy needs. pretty out the happen up or just into on $XXX in you could of $XXX especially the equity does you've past of front a spill any Thanks. so. that but amount ATM out? plan question, equity, Second quarter, How

Brian Van Abel

to plans look Good XXXX capital Yes. just question, And and the Insoo. plans five-year. our at is financing XXXX I at

if transparent in about billion last but so rolling think financed, -- plan, call of about generally 'XX where we were is we've the $X.X meaning incremental And our last been 'XX terms of through And year, you added forward, capital. five-year XX-XX. capital we we

think $XXX our because And and opportunistic in the million I so issuing was way it and $X.XX the some we're about both, yes, it it today billion. the equity in to plan same add DRIP that equity in was of is, about

added, So $X.X we kind it's the capital. incremental of line right talk if right about of you on financing in at with so look capital we billion how

plan you're over makes So plan. right. But hopefully, that sense look absolutely of kind is and

to rings and needs if that without terms incremental or able that vice for still true the we the And could versa, does we reduce accelerate potential investment pass. our forward us As absolutely about think in legislation clean energy equity. being that opportunity potentially significantly of equity really need going gives the for

So, lot I gives a think of it flexibility does happen. forward if it going us

Operator

Next, with to America. Julian go Bank we'll of Dumoulin-Smith

Julien Dumoulin-Smith

pathway in $X alluded should that out it's to like, for you here, that settlement further come but the could the could up for And network something especially we for, what I how that you that wanted also that bring to guys there. deal I'm looking on upside else also, this pending Congrats to billion just curious into a fits it's 'XX. just the potential kudos Colorado. you if you be incremental on earlier, X.X, you? Is you the to this project, potential clarify, settlement asked on 'XX continued if progress here upgrades. seems or articulated what $X.X of have billion potential elaborate to

Bob Frenzel

transition Pathway It's great and XX% state reduction XX% Bob, very Appreciate of renewables Project. decade. this obviously than greater end interest for to we to in that Julien, the Colorado us, to as an it's strategic you morning. hear the look the by carbon the

you to the the $X.X That access back would billion to almost of billion original wind at project. a in if is asked plan of was call we the extension best the resources and for about enable I in it went in also what filings that the enable $X.X looked think XXX-mile we filings filings, an base capital state. that had

whether have that in it I that our it's that or we the up of projects think that about was, in $X.X in that conditional laid it couple think I and capital show incremental somewhere would approval based higher. we'll program region RFP on out, there's not whether pathway we a When build or billion, take the pieces not.

the upgrades we've one is the happen with are system and the the voltage $XXX support on transmission assets don't in stability. Colorado happen that's as that's projects first we -- we some money. projects what get And at could they'll and just us of out happen. then, proposed is this that picked. We it come said those know the project, Eastern cost may those of until don't And enable are The final on -- the of more to depending know to, that the some interconnect since interconnections the of ultimate could extension. going point, the We planes exactly it where have those million And the And Metroplex. exactly picked, will in in to additional RFP. all know be ultimately Pathway outset locations where that to

expect where the be we comes to it from, capital needed. incremental So that's but

Julien Dumoulin-Smith

clarify to that... just Maybe

Brian Van Abel

the be resources be and second said, and yet. into just incremental visibility this of year spend, and located, kind we once will half the really process just terms the of it's We be what RFP five. going where through happen. get probably have say needed upgrades visibility and know they'll the then good they're it needed, the solar, to in the a to of we'll early plan what identified this in of actual in latter I know when don't Bob or five-year type needs timing have and whether timing like would wind transmission we later But

Julien Dumoulin-Smith

billion get quarter edging you've But more the talked transmission remarks, view billion CapEx? an like if the upside coming of view? get $X alluded sounds or this about be I a piece. said baked maybe end kind more higher push time, this five-year that's mean, Colorado first to know sounds to it's considering update clarify cetera, you current in you to et towards year when the billion fully that ultimately, IRPs, whether in your incremental but next like plan. bit It this more this, further, Colorado in Minnesota at that, on that the even that we then on it $X to do $X.X RFPs, I you're I can little of the to And or a of EEI here, fleshed or may a the fully you

Brian Van Abel

Yes.

billion. be that's sure just want me to I opening mean, why billion beneficial approval call and settlement, our at it, that's his approval. goes appearing think And the extension of that first we in really $X.X said well, for projects conditional region -- really that resource-rich Bob it's remarks, around, look get we the wind transmission a to your really, in helpful that that that customers. is as very make would parties when the that's there, certainly $X answer I that, And of a to conditional $XXX let question million,

that be will question incremental if your already see to the higher. On opportunities midpoint there's of billion, $XXX that $X assume closer to that's part million the second -- push really timing. will So number around or how could you you

get phase, the the we Minnesota on to move to decisions then those Colorado months four the plans beyond in going and that have is RFP resource QX. two, be three, And what's happen, process. which likely through then, we'll going we'll commission in to both So work into and decisions, from

kind as from a bit get will be than there quicker terms the But filings the could through opportunities little there'll So be it getting visibility around that of we process. Minnesota where in Colorado work and through we Colorado make later process. clarity throughout that. as bit a be and move commission phase about more of RFP might with think

Operator

All right.

question Next of with Jeremy the from will come Tonet Morgan. JP line

Jeremy Tonet

morning. good Hi,

with MTEP you plan? here. any seeing process fruit Or Just share the just of come is wanted off on for in that current could where for start the thoughts MISO kind And time potential And other what to to the bear the process if could future? line? in, the

Bob Frenzel

allocation us that MTEPXX cost call XXXX of our Bob. to to mechanisms of to in future to penetration expectation MISO's projects proposed and Colorado, a our our on MTEP very tariffs, deliver been opportunity expansion for what transmission it's we've the release for they in for we active is Recently, the MISO it transmission by, Thanks next we've In MISO, the steering new in a regions puts deliver particular, which MISO included about question. the subset owners. as committee enable Similar customers. I'll excited really month, expect additional and all it, would will the Jeremy, renewable are can which with that we're And MISO midyear. say ones. across agreed is we to MISO schedule for

billion document, to MISO future original futures was then in goalpost Future to really about back was the footprint. three So three MISO carbon investment enable of three. transmission about or And reduction MISO billion largely Upper a if of all talking and released throughout been expansion future about was across world. one $XXX you We've $XX a one significant the other source region. future the the needed Midwest go

a transmission included Our probably are one. as expectation get likely for future one company, to that XX% is of in the that we're future about opportunities

smaller subset the than $XX MTEPXX of one, subset We a expect future of billion a so worth be to projects.

Paul Johnson

point to too, first five-year probably any it's forecast. have out, transmission our important Jeremy, MISO we that in material And don't

Jeremy Tonet

to this the any you was helpful. very then, if thoughts I provide or Minnesota That's And you the pivoting And able does takeaways Got might it. there, any related there? maybe that. provide rate for Minnesota indications to over to proceeding and yearly case? Thank be comments just wondering or

Bob Frenzel

I those between certain a not I'm of linkage would Bob. it's two Yes, put lot proceedings.

the I work I we what that last event and our to with and And As Minnesota the we'll about between it's wouldn't the commission disagree at Minnesota reliability the February. would we proceeding. investments just particular, the the unprecedented think testimony of say rebuttal enable think have I lot OAG on that testimony. unexpected a extensive case, a positions I regulatory And obviously we -- proceeding, parties the department last cases. with that the of the in Minnesota, about time. they put Yuri happened filed in Yuri not But question, the look, through week, working is to proposed. system electric and through filed continue In so gas made the We proceeding linkage disallowances to or

Jeremy Tonet

Got Understood. it.

here. Just me one for a last

You might expect to the should could be on be provide XXXX. Pawnee to gas over color converting natural to what for the by this cost frame and conversions what for occur? we time potential more And process able

Brian Van Abel

be of small. convert Pawnee expect in this of because the conversions that. relatively reasons the versus why expect the one I back conversion costs the to cost five-year are half I Comanche XXXX, that right to that's in really forecast. And propose conversion be And to just Yes, we really

not So is get to it, that's converting that we it have the gas having path ensure pony in conversion, it we is to approval assuming that. right reliability really and we But significant. terms think with of the -- system for certainly

Operator

go Instructions] ISI. with Chopra Durgesh We'll Evercore [Operator to next

Durgesh Chopra

team. kick for have two Bob, maybe I my morning, questions. good taking question. to just off, Thanks Hey, things

macro, on better. on the bill, the just commentary back I First, appreciate

of think last thoughts of that AMT. your of last missed the I'm perhaps few I if Is lobbied comes against out sort something but wondering leaders you are industry touch negotiations process sort in as in Sorry on latest there? I or what you if didn't weeks, know that few it. it, months just the --

Brian Van Abel

morning, the good for and thanks Durgesh, question.

the of Let's pay is energy clean really for size But then and -- assuming the question provisions. there what good clean the good revenue to seems support is being heard be depends raiser You've drug right? provision the provisions, to and pretty billion package -- I energy get is can is Medicare/prescription seems the what forth. what's which pretty a number the something size this around think billion. $XXX-plus for a of also the for done is support change, There it put climate be of about $XXX

think -- from is really from have table. I certainly So we haven't the I not is off what AMT heard

package. But they strongly terms more support They about come more we this they so how as minor. all to But I could package cash your think provisions in do the for included clean relatively that, metrics on remarks, if affordably. clean that basis really depends of about it overall as in actually points, is for this we to from. wasn't the AMT said can like -- overall have support the and play smaller size great we Bob out talk I just AMT, flow think passed XX were are energy mean those AMT improves look the by us, opening question, paying better just that and if for us how think impacts clean the certainly, meaning what energy provisions. probably his to provisions we get able didn't for of climate it about I our if transition, customers but is plus in driving our of

Bob Frenzel

and Brian more credits concluded to impactful think is. I what itself add the existing allows it. we've Xcel all just that isn't the it AMP fund of that for Energy in I'd Dugresh, to as one One, thing said of use renewable

the And come you the the AMT would development though, of hand, lot requirements, a some think federal fact you then those that, other on that an of in tax industry almost funding with to assets. other the giving government on one tax incentivize look we that really if an credits. is I the mitigating of credits you're the hand, renewable notifying as to, is have thing incentives AMP

I credits ultimately, clean So offset is tax we and where think think our the customers. energy AMT in provisions lawmakers paid if by go for about to funded you our discussion the use the provisions. industry, with can it's would AMT And

in And that so an our with negotiate would increase well. that think -- as And just I to an existing tax customers. it's be lawmakers would it's area we

So we in what it's all the plan, back, in build, still included negotiation. subject better as provisions but to see

Durgesh Chopra

may. then if Got you Thank for just color. And one that clarification, it. quick I

On the MISO process, you mentioned mid-XXXX.

we've think I expecting sort still in that some we announcements some or CapEx move project Did are of seen May? bids May. of around sort announcement,

Bob Frenzel

about but maybe probably saying just I slip. going is -- -- and think to month might hedging May talking target. it's hedging I own we're saying Well, was my it's the been I I'm slip to -- June, a into I by not think have a bit comments. I it could

Operator

right. All

Byrd Stanley. with will Morgan question from come Stephen Next

Dave Arcaro

so Dave catastrophic changed risk that Colorado, of And much It's for light you Arcaro fires make wondering mitigation are to wondering in if state? in was your fire on the the of question. Thanks I might saw? Stephen. plans taking there have in or we consider adjustments views your for my wildfire

Bob Frenzel

we ways with improve there's to wildfire want Hey, are the that it. on we under proceeding question. might future, focused in in strategies in resiliency tragedy on and in Colorado, commissions for for open The thanks approved our Fire and these on long from early climate-driven the time, a things your like that learn to followed been as sure. actively exploring can risk always the that in program but and consider in -- exact and back we're We've everything and them we're participate and Colorado that the that, Obviously, the mitigation a plan the company for we're learned we things with wildfire question customers going and we executing XXXX, a for Marshall I'm a sure Steve, from program. stages that.

Dave Arcaro

that quarter, sales And for to down the sales I able if level curious and you just was weather a then comfort around outlook XXXX comment the you amount. on today? color. Thanks be growth normal I sit with decent Understood. saw resi just in that might wondering where sales growth was

Brian Van Abel

Yes.

I it look of of at think year balance XXXX. the I kind over of the

up into saw What we basis. be year, C&I you And expected to was really, a on about of recall, residential thought was ended at And than going close. our stickiness what residential sales the ended side. X%. forecast through higher is going weather-normalized X.X% pretty we was growth XXXX. most the If We was that -- on

a So of think give look bit back the in some QX, of saw Q-over-Q over you numbers. when that weakness little you that I

was to continued I think as even that our into going C&I So strength. about XXXX, expectation XXXX

our forecasted economies, GSP territories have GDP. than national Our the service stronger

forecasting have growth. strong We job

we expect little a So to good And the I return more, on C&I bit a bit more little feel decline as normal. you residential call return go side. to to do those it, numbers to

offsetting where for with So, sales we comfortable feel of the on stronger the residential we're C&I decline. sitting some XXXX overall basis do with

Bob Frenzel

weather of more versus comfortable process, with in bit is that more some The feel impact. kind weather the it determine we And fourth a have normalization weather pretty quarter. makes when other the our point to little it sales to did make, while extreme, extremes too, get we the the extreme difficult weather

be could bit little there of noise So, a there.

Operator

right. All

Fremont Paul with to Mizuho. go we'll Next,

Paul Fremont

incremental it equity to basis? fair And additional wanted just you on that spend sort you that somewhat identified of least with CapEx the that equity at would infer of issuance go-forward that is at the a into be issuance. guys I look have to Great. sort additional

Brian Van Abel

at it equity the have about plan Paul, equity. always funding And plan. five-year end us us, that kind I that we've just XX% if the the plus five-year 'XX when it last strength plans, front balance about way at for did added think of plan we think we we when the of And plants equity about look of if two to is with forward explain of credit is QX, equity related that capital under the capital. needed really, that in the of year $X.X kind to important. about million talking was -- sheet I QX is you ATM the in little we bit. the we 'XX the $XXX what together. and Is last and rolled And did XX% that look billion I'll a gets plan, at talked funding you And you're we incremental for quality

quality So have credit I credit strength capital. to to comfortable think Xcel important our Like access said, operating and we're us. I and important companies. for It's is at there

certainly, current we'll going said, financing. in forward, that something terms like on so at provision, when lot revisit if energy more a I true. financings plan that equity those of hold And clean happens look five-year federally, the gives And flexibility you our right, as us

Bob Frenzel

XXXX what did part recognize plan. to our in we 'XX important it's Paul, was always of

we not envisioned to any had it's what change going So forward.

Paul Fremont

opportunities? update Or then -- in about on contract of guess, any be within 'XX focus you guys to buyout you period? buyouts. on But to sort give Okay. And have seems less talked you that do any the 'XX past, can us that. see I There contract

Brian Van Abel

I team directly don't as to and -- reports characterize developers. constant I we're development less it The focus. any corporate in discussions me, think wouldn't with

today, major and what a in here our focus in plans to if see that we're RFPs bring could to talked always think We it has always is resource an bring a I projects we doesn't jurisdictions, forward up, bit opportunistic proceedings on those and little have about talked coming we then to I see coming think the we it'd I opportunities for working our I've preference an to in won't commissions customers' it. within our those our to two And think any -- bid it and And through those be I've in will they'd you opportunistic. But it being we work potential avenue -- be customers. and because those have that's RFPs. sitting if RFPs. they forward, them be opportunity as that given for RFPs our it had up, had commissions, money. save developers prefer as if

Bob Frenzel

Paul, strategy. been successful we've in the

in are, of I billion some and there's processes $X.X us, but Colorado strategy. than And said, as they the I or capital more to we billion through deployed so. planning and more see opportunistic think as resource very likely to opportunities billion that the think Brian year over in we've go $X.X another this for $X next

Paul Fremont

you this Great. this growth be beyond a sort And about talk more question. sales a year, of my what of -- normalized years? outer X% When on normalized expectation, last year, would you then for basis would an the expectation

Brian Van Abel

are this pre-COVID we below term, where to levels. continue as our still we were longer think recover, I beyond year sales it's and

We our our with pick adoption increase XX% EVs of it's starts that is over X/XXth and territory see a term, a longer we'll EV flat to of goal some in I think about the growth. XXXX, exception adding sales see percent by as decade. EV of to start up, service relatively

relatively start penetration the see it's think some EV to term. I more we longer in until numbers larger over flat So,

Operator

from Miller Your will Travis next question be Morningstar. with

Travis Miller

morning Thank Good you. everyone.

question the my Colorado on answered wildfires. You

follow-up the discussions climate or that been Is energy following the clean involved energy transition, the quick change clean of Have wildfires? accelerated that to such you whole or give one discussion? and of Just to that. enhanced kind in more mean, heard some momentum I

Bob Frenzel

Bob. Look, stakeholders energy Company itself, think it's pushing a including in Colorado, been transition. clean Travis, our the very aggressively I have

in in decade end the our the XX% business us our the gas by and on of reducing In electric on be gas And gas decade emissions on then Colorado the to have the footprint by by side of zero fact, end we the just business. carbon the mid-century side. goals by natural November, the net committed natural in reduce

in and the talk stakeholders change aligned climate But think with Colorado we're absolutely on about in continue on things conversations policyholders and front path like with backdrop. as that think is the the paper seen I in I've Colorado. that. So I the that articles that the

I on So, is there the we're discussion, think may that increased trajectory one. be but right the

Travis Miller

Sure.

get that type up? jump Okay. difficult structures, closer the quarter, it, early nine-plus Great. that case percent? there first Does Once does quarter, that in in it's et just X% question get where range And you is the to we're low to in call to in there, allowed? see earned second something in ROEs same for to rate you X% the you a year very, electric the of second then Or the get cetera, rate Colorado, for range. very there a Colorado,

Brian Van Abel

effective into improvement won't April be until Travis, on I XXXX. don't significant the electric side. is no One see rates

file case regulatory us 'XX. face being a do see kind still did with -- the side test of here gas the midyear we there lag on You year very recently. really a electric And we're

side, with on see ROE but the don't we'll and stakeholders our I significantly improving in work continue commissions So the that to XXXX.

Travis Miller

Okay. And a the XXX basis just test makes historical points is so? year it that or big difference,

Brian Van Abel

investing historical transition drive year, historical mean that but your I when I energy pressure this system, of particularly on math, haven't you're year capital some significant helping into put does the test in done earned amount that the test ROEs. clean

Operator

looks it at no questions further like there right, All this time. are

So, I'd to like any it Brian over Van additional to remarks. Abel or closing turn back Mr. for

Brian Van Abel

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

Operator

their conclude does that for today's participation. And conference. thank everyone again We

Xcel Energy (XEL) 27 Jan 222021 Q4 Earnings call transcript