XEL - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to Xcel Energy's Second Quarter 2022 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. Today's conference is being recorded. At this time, I would like to turn the conference over to Paul Johnson, Vice President, Treasurer, Investor Relations. sir. ahead, go Please

Paul Johnson

welcome Energy's and Earnings Second Call. to morning, XXXX Xcel Quarter Good

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

today's addition, our business room answer we and Slides the will regulatory have team This XXXX website. our accompany if to members the developments. your of In management call we results, on in review needed. questions are available morning, other share that recent

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

Robert Frenzel

Good legislative minute. XXth was morning, just a certainly Thanks, evening, It to in interesting get last we'll news an everybody. that Paul. in twist hour but

start had quarter, $X.XX We of earnings XXXX 'XX. another share in our with in share recording with per financial compared solid $X.XX Let's per results.

XXXX as to Our track on with reaffirming expectations, of $X.XX guidance result, earnings we are and our per share. are earnings $X.XX a

utility add of conversion will of coal in of have of During The achieving plan plant X megawatts resource settlement, and We the Colorado. XXXX, our constructive on by of by the coal XX,XXX our system to We our end the XX% retirement end the quarter, will plan, and receiving of plans, XXXX, resource be Commission we the by X,XXX Minnesota approved our retirement an which additions. renewable achieve reduction renewables early recommended the Pawnee decisions which which of the utility-scale portfolios later made unit commission carbon gas of XXXX. the plant clean mid-XXXX our in natural together submitting final regulatory year, RFPs our to our and by anticipate Comanche megawatts approval June, energy scale coal XXXX. second issuing our Colorado good progress approximately both Colorado half outcomes. and In now this includes

-- We the recommended self-build, will the portfolio transfers recommended purchase generation we and portfolio expect expect include of power build-own agreements. assets

valuable plans with against Our commodity for consistent are our steel strategy, hedge customers a provides fuel which prices. for our rising

information of expansion excited a identified $X.X owned alone Our farms an generate opportunity. fuel-related investment transmission are of Futures XXXX of wind nearly X billion about long-term savings our total planning MISO's projected estimated We're with XXXX. since X and recent X, in in awarded Energy tranche to approach $X within that tranche customer billion projects billion most in which projects. MISO week, Based we from the investment in for a anticipate discrete X. on MISO, will $XX $X.X billion the board includes Earlier this be billion $XX opportunity approved tranches. Xcel

XXXX, our in to vehicles. electrification progress goals. achieving Turning We're on goal their our X.X power electric states by million EVs to supporting making

introduce all commercial proposals bus to bucket file school early fleet, include Wisconsin are August. well to we We and pilot. electric multifamily in in expect and state residential plans company single programs a first transportation U.S. to the to and trucks be Minnesota energy as offerings, as These excited our comprehensive customer

clean to reflect direct EV and and to cost and bring that savings a programs the exemplary the approximately received through upgrade XXXX, which Prairie want communities. enabling providing Earlier energy looking Operators to proposed Power The employees of to the thank distribution another serve XXXX. contractors Manson to our development operations. the in and was of source significant reliable charging through inflation Reduction Nuclear other sustainable our In that high-speed impact. to teams, our a infrastructure. with customers dedicated Energy's our and of helping affordable support load the agreement this it addition, Minnesota, we our demonstrating reached also foster does include Wisconsin and and we're adoption of employees, for partnering infrastructure, excellence Act announced leadership, grid $XXX improve capital had of keep continued million including for The top Plant. needed track all X a proposals passion states is to Xcel growth congratulate record commitment carbon-free not Senator of all fuel distribution remains public reduction of I customer customers very their more Power to Institute of carbon from nation. We're accelerate bills be performance month, our XXXX suppliers investment Nuclear Yesterday, Islan in important our and drivers of Nuclear from result on nuclear EV investments will of rating utilization affordability, organizations. energy. the long-standing grid. efficient operators for for and proud We've Schumer the efficiencies,

the wind, While the to all the nearly appears of tax and to we and including include new clean credits, broader analyze all tax credits solar, it to details understand act, nuclear. still need hydrogen extended energy for of the storage nuances

unavailable. an for it pay transferability as all pay does option direct direct all taxpayers credits, include for include tax tax is when credit doesn't While

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

Climate account for with Award of change. the climate recognized Humphrey Hubert the sustainability different act National exemplary help which However, benefits Fame, while transition EEI received also groundbreaking across substantial goals optimistic we're inducted happen executives we to could the corporate and the provide Accounts providing country lot leadership Award into offerings bills Hall Key This energy honored for quarter, H. enable customers. among in response can which for engagement, become and and Leadership first Public of customer excellent turns bill that outstanding to our customer affordable. support in were in their the recognizes but finally, would We're the There's organizations the still a companies And customer in keeping companies to Leadership long. and included for past provisions clean our be we that twists the our Minnesota. energy recognizes Washington,

everything it organizations partners do. And achieve employees, Our heart at be it great I work to And it's stakeholders them want that, turn are I'll with recognized the goals. we over with of who these their helping along to customers for recognition, to our make possible. thank our for and the and Brian.

Brian Van Abel

compared share most rises in quarter recording earnings another Bob, significant for Thanks, everyone. XXXX. $X.XX quarter, natural solid earnings for of per $X.XX regulatory with good share, per The XXXX, investments. and increased earnings following: had share gas the We by quarter the drivers of included the higher recover morning, per driven and by $X.XX primarily our capital to outcomes and electric margins second

effective In in per lowered increased by earnings But addition, $X.XX production tax lower mind, credits tax a share. rate keep the ETR.

taxes, $X.XX to earnings reduce electric case, per items previously customers per investment margin earnings higher increased capital earnings decreased $X.XX drivers expense, PTCs decreased share. per by related are through share. primarily other per by these flowed share, rate O&M expense earnings largely recognition deferred electric $X.XX program property by lower Offsetting to combined neutral. are were positive reflecting by and Texas share, of earnings costs However, taxes to which the And higher reduced and $X.XX interest the our and back depreciation expense, other which

our activity Weather-adjusted increased driven in C&I higher sales. by X.X% to of the economic sales months for electric Turning largely strong X XXXX, service sales by first due to territories.

In addition, is basis rate the our below points average. unemployment XX national

previously now expenses assumption Texas our X%. for by to we of to O&M the million case, As second increase technology for for XXXX and X%. recognition approximately expect businesses, revised primarily facing a driven vegetation increased the and inflationary investments sales are increased management. additional pressures result, related rate Like $XX in an expenses have electric O&M growth annual programs quarter, we customer of the deferred and other storms costs and

made plan euro-related the million. all various including Colorado The all plant conservation the Rates number XXXX. In later $XX approved other of $X increase ALJ our summer. the XXXX, were uristorm accelerates to full rate to commission a commission with this fuel addition progress also approved of recommended of on life agreement of electric million year-to-date The income In our settlement, related full to anticipate Minnesota, Texas, and coal which statement. some case the approval, Colorado of costs. an we effective of you a March a the in costs rate an see exception decision primarily to back also expense of recovery lines revenue Tolk Commission isone why regulatory recovery provides settlement, depreciation which is strong We the proceedings. In messaging. resource true-ups

on XX.X%. in an equity $XXX case gas over of of natural a testimony XX.XX% ROE an million rate and staff of of intervener test historic In years, June, pending X ratio The year. seeking a have X%, of ratio XX% increase an ROE We recommended filed. an based was Colorado, in approximately a equity

are X% testimony test filed for scheduled recommended UCA later Hearings in rebuttal We commission XXXX. filed this our of July, the in ROE, our ratio equity year. position. a In an While XX.X% historic of file the support providing we additional for South a November electric since final rate year We decision Dakota August. implemented year. case this in anticipate first with recently late rates

ratio based increase of ROE of in a the year. seeking historic and $XX are on XX% We XX.XX% equity revenue test an million

XXXX. decision We first in expect final rates in the quarter a implemented of

natural in Minnesota. We electric rate gas and also pending cases have

XXXX. in and are Shifting reflect our guidance in fall, We are release. We've commission updated in to XXXX decisions our in earnings. are assumptions these earnings on latest earnings the schedules our Details discovery intervener information. the this and followed cases testimony release. included expect included to phase by Details

Minnesota that, Storm Urico settlement. quick up resource earnings per is our ALJ interest costs share, our plan in related for a EPS growth recovery an full X% wrap to We which summary. approved $X.XX $X.XX Commission with received We are The to reaffirming objective. long-term to recommendation and XXXX fuel I'll our range Yuri. Storm With recovery of consistent Colorado guidance X% with of

Commission Midwest shortly. Texas The our case filing be will We rate plan settlement. our approved EV

our our earnings prepared X% reaffirming to upper for long-term our objective take and are bills will of can we continue X% We our remarks. This range and we dividend deliver we now to guidance, confident the questions. XXXX half customers. Operator, keep lead and transition concludes as within well energy growth remain we clean the earnings

Operator

will from Suisse. Nicholas Instructions]. first right. Credit Campanella All our with [Operator come And question

Nicholas Campanella

the Act, just upfront for I the So guess Reduction inflation thanks color -- on helpful.

Just is how remind business you minimum alternative an there? us if is your just tax, there can positioned

Brian Van Abel

Good Yes, good Hey, This a morning. it's is question. Brian. Nick.

is ways. we different a of about -- that So we look book couple think AMT in it at

at look the have AMT we that's when the impact. can is ultimately, available then you this us. those included when that credits in First transferability book that put accretive where for see cash that we of X And as we legislation, together, XX% we also flow offset

came yesterday Now text. I'll that. pages of legislative and This the XXX caveat out

still working it. we're view that's So the through book AMT. But on our

Nicholas Campanella

helpful. year that Okay. second has then this the And is like your That's to near for electric guess time, this Great. changed the on year the think, positive. forecast I I sales, sales

what is kind of that how So to that talk just going for about forecast? long-term demand year, long-term seeing maybe trends you? type higher see tailwind forward? kind you're of structurally are And starting your of you of to kind compares a And for this

Brian Van Abel

say the question. year. that's as the balance we've the look seen we've in good QX, probably -- into And QX you're increased for opportunity would and So right, both sales our some of more I year. there we a guidance there's And

C&I Now you it's but is And doing, see even the occur the is, what meter. strong you the sales customer are that this in we major in sales. C&I if there large on the look macro with Colorado, adjustment is solar could that dependence we an certainly, helped at Colorado that's Colorado where the sales normalize Fed this strong, with better too. -- a farm impacts when C&I behind

And reduction. seeing at We're than C&I on we with expected. expected higher seeing we residential call our good economic that that strength, rebound. residential it across the on we're territories our when that, service actually look budget, we're we So it, side,

structurally, the think across in economy seen So half I manufacturing sector, of the sector in first in board. the we've the year is the certainly strong energy a and

see we're potential obviously, there's But happens have how headwinds and So as term could some when think interest think term, we the bullish longer if to start processes. an about impact rates of industrial see to or of about big recession think to I EV when start what longer a electrification I electrification penetration, when opportunities, have. you start you we

I about as Permian, extremely discussions down have ESG We've They tailwind longer there longer-term goals ensuring capacity seen Permian strong in a their customers compressors just at there's we're our distribution and the zero But electrify and and and talking them. investments growth. look our example to net And think their rigs have you in another on I in so and So the own term, the goals of we're that pumps service Basin. and and how territories. electrification. we transmission serve to system the in

So there term, I and rebound have see the C&I sector. think longer tailwinds that to it's are we great the in

Operator

Tonet All question with next right. Jeremy our JPMorgan. come And will from

Jeremy Tonet

Just touching little developments on $X.X that your we a bit have dive MISO more and want into now to here billion. some

guess, a I that preliminary in of versus make what terms could if the this but of could in? And Just way into wondering possibly way this? could guess greenfield the in just this fall what what's I through competitive characterize Is Just still bit scope, some to this processes is estimate, incremental trying feel you brownfield. a our mean. could more

Robert Frenzel

Yes. about identified Colorado power transmission have. past and between about and excited Bob. and, now Good tranche morning. been we think you the the the where opportunities have approved. as cases, This transmission MTEP from quarter Minnesota transmission this And first me Look, $X.X just in the Plan, projects on comment about all, very needs that's the pathway, broadly. we've MISO let feel that large-scale We of some billion we've of confident transmission build-out is Resource

It's XX%, to carbon and Colorado enable megawatts and continue to going to us. vision. legislation XX,XXX in renewables opportunity X feel the from with South ability think need Minnesota, and reduction about Particularly to important we best MISO portions out MTEP in what about XX%, certainly of $X.X pretty plans, our confident the our MTEP. terms forward that estimate is process, billion X add class the to the We've ROFR opportunity the So different in XX% investment regard around of Minnesota we -- execute different North to to I on projects. Dakota, of the our of for put got put we've in Dakota terms resource

Brian Van Abel

bid. our like to point the just I'd they're and Jeremy, feel deemed Bob expected that, competitively And we estimate add be Wisconsin said, upgrades, were so about projects not good to

that's earnings and ours you as we put we right what to our now. presentation, expect estimate good see our what are So be in owned, and

Paul Johnson

include And competitive any the does not bid. estimate

So if billion. to and bid be that be we choose competitively we're successful, would $X.X incremental to the

Jeremy Tonet

Got it.

there's billion this but that $X.X replaces processes still fair competitive could it? So this X the about to to think potentially to add way a X range, is

Paul Johnson

Yes.

Jeremy Tonet

something of you CCS now? and thought be that's see to Got any largest off and points could long on we back policy the term? wondering that the it. opportunity But far And comments more press. impact there, so in the I do hot items noting there's plan onion all more, for what as if climate your near the this and particular potential is mean, just the thanks peel about if

Robert Frenzel

question. Financial Again, night But have you get minute EEI since third of to we've Brian a about great a out a since as strokes it talking fall. the page of all call kind broad through It's Conference lot and these about absorb last last to text. the came been quarter said,

to increases production in solar, is for things interesting seen really ITC. solar we've here Some an interesting PTC is really in relative the

differentiations You PTCs might ITCs. using see on some regional versus people

could bring who Obviously, down, is of and and interesting. is important owned There's are think very overall as transition. make And real that particularly to to equity. company those I but pretty the interesting. for and tax builds some and we account, there challenges storage of embedded. friction Dakota has the this -- North things, table the for We're renewable not financing then for about our goal Stand-alone neutral continue really governor think with again, but on We've interesting is carbon put the both the them CCS as with This storage. storage PPA some piece North aggressive cost our transferability really solar assets the benefits assets this stand-alone just pairing really our of makes is we everybody made a costs Dakota. credit customers work,

as haven't country as and vehicles think going all bits to really and pass and I the stuff end of and find to into. hopefully we're built that, the dug this across in across into and electric and before pieces our of look year. we notwithstanding the all So the security, you're I But terrific the us around this excited of And piece interesting. for we think energy that company, resiliency see Senate legislation this great portfolio, of to of be all it's a even fiscal House dig there's a

Brian Van Abel

the add heat clean And that, Minnesota and in PTC. LDCs I have to mean, Yes. I'll Colorado just a in our our middle Bob. developing as hydrogen plans we're and gas for of

or long-term hydrogen So for gives solar, you green jump really it a should that couple wind give with PTC -- start. a

excited And that. we're so about

terms And in and from as on look looks And of some But it, cash number I ultimately, this so talked the of we accretive to bill. great last we beneficial. the reductions slightly, look and impacts similar slightly a become EPS it's flow QX think what slight year things there's really tax we to in in us. more I about feel ultimately, at there's rate efficient, of base but

this, on we're This transferability the as at not into about, our plan we And sure package, even important our make our caveat, our talked with we as and and X-year Great more run. current it make this makes is just for Our transition with better current were around point customers. our current research but approved Now particularly even that's when right? plan look built again, we energy whole everything, digging plans this affordable. long that's a plans we long-term tax clean law. plan, customers for understand

about excited and that this we're it passed. So optimistic gets

Jeremy Tonet

Got on back here. last X could would think of share you go -- you any much of Real thoughts to to be Of willing do helpful. there, could competitive it. that quick circle process? super you just If $XX.X MISO. I real quick, a That's billion through the how capital

Paul Johnson

estimates the think $X are I about I've seen billion.

Jeremy Tonet

it Got leave it. there. I'll

Operator

with Bank from Our Dumoulin-Smith next question will come of America. Julien

Julien Dumoulin-Smith

for morning. here. the Hey, Thanks to good and appreciate connect it. opportunity Really time the

this going the front. same to keep on going So on I'm

Let's a on the prior transferability target more [indiscernible] to first take IRA how moment under elements, bit the under talk debt the improvement compare specifically ago little called legislative, direct prepared out provisions in your does factoring your BBB the [indiscernible] your right? You that with in remarks. of a

Brian Van Abel

sure Hey I we -- understand of morning. it so text, said Julien. hot And and in nuances. and it our said, press like XXX it Good making was off is pages Bob the legislative

there's flexibility But our FFO in think lot unpack QX. what work. higher take think would we again, potential ultimately, we with how points So as ultimately in look But a initial the capital there's road line talked about to to it. talked a remember about if we basis I as at around QX transferability best it, XX financing or which about absolutely about in But and the gives bit is down is little us headroom. that improvement what we that XXX to in to caveats think to it, maybe way debt you CFO

but for more for this about can for customers. our how even affordable us, great So really as our energy we make transition customers ultimately good clean we think

Paul Johnson

didn't Brian to also night. noted It that bed go last be

doing on So all math the this. he's

of with that grain take So a salt.

Julien Dumoulin-Smith

what math from nonetheless, is you're third in Yes, that -- though, the too totally. quarter? described broadly his expectation you your delirium the affirming not Correct? different the In

Paul Johnson

still With that understanding. understanding. the we're caveat

Julien Dumoulin-Smith

completely. Let's right? that unpack what but start that that step your just do With can does take for that. a if Totally, asteric, we also, equity needs, further to

Brian Van Abel

gives so about us flexibility. Look, more talked we it

by certainly QX going all rolling we're forward know this unpack not release. we'll or passes we're updated lot our capital sooner But plans passes to should full October or in a more we're so. not, We'll because whether going we I know financing can provide is this give include We in earnings release then. those you flexibility. think that that update plans us how it will whether and how a does to our and and capital this finance

Julien Dumoulin-Smith

then quick FERC know versus transmission, talked on here, the bit Excellent. X already. any a -- FERC? a and is Again, angle I know it. frame? then recent last ROFR I about time super Got guess this challenges I And the All perspective right. we FERC What at thoughts Again, here? also more but states on here. that's

Robert Frenzel

Julien, it's Bob.

ROFRs I in think challenged them have court these and federal been and up, we and held expect state have the both to.

Operator

question Our Sachs. Insoo Goldman from next comes with Kim

Insoo Kim

and in My look there. get of first the options ahead ahead the and and guess, could do 'XX higher one, guess, just O&M get you for that the just Like you we into to beyond financing regarding impact costs it, now I you some to as I 'XX? inflation 'XX have on are any position levers, try what

Brian Van Abel

pressures, continually inflationary this different we're year. a we've flat impact and other no of looking than has that But customer to is proud bills. XXXX, O&M direct because had very we're offset it Certainly, on since any and

it's year us you continuous adjusted drive you factory year, and we with investing but by efficient. digital the operations costs can to that certainly a that X% And have what if and more reduce have the looking. feeling team up is in year we of helps areas. else, how this and to technology terms the called regularly everyone take see O&M Now through something working make unfolds, business business improvement into year We're areas our the pressures in O&M technology the year as set up like actions our this see inflationary we're how go we next

long see of our part just and you that of term. on culture how we've stood over we've up, that's the can DNA part our and So in managed

a financially to and We the why more going for We're year our balance you of of to we we'll should inflationary we pressures think same through So terms the what now. some deliver bit continue deliver as, the I our customers. going that's right? that's guidance. future. really But year, see expect this in and operationally, expect of focus our increased to the and do We're in deliver

Insoo Kim

one, one, and just second the My be building I could the your does the table over it. given for I or but on this the here on know to on, what others? it's change think Got in X- more, legislative answer I nuclear maybe to next thoughts that plan XX-year front on nuclear, guess, a small module

Robert Frenzel

Hey existing Insoo, case, owners from it's credits as our is Bob. beneficial legislation the the existing who starts with the in any would it production Look, customers associated I within legislation. new think really for the and nuclear nuclear tax receive embedded the benefits

I a stalwart role, that identify not to country, dispatchable I role that. it's think a longer and new are Xcel saying carbon-light economy. think clean carbon-neutral in as certainly term, carbon-free any to a play I has energy we, resources to nuclear we've that in economy this a at eye. think can enable active been we be don't for need the new decade pretty or a transition And but Energy to

nuclear in they've as been been with diligently working stand We up new permission and there first get development We've process. to new build reactor. to are their scale active trying the

very dialogue. watch we So in the engaged we're We're -- closely.

I it's issue beyond next and opportunity or as for think a decade us company.

Insoo Kim

Got I expected. what it. That's

Operator

All right.

Stanley. Morgan with Arcaro David from question next our take we'll on, Moving

David Arcaro

question pathway XXXX? you into after that to where whether that the Is could sense some done at be there you potential basically there. color the and of the of that sense could upside in something opportunity get I quick crystallize are that and point we had the a the plan a a place get added get coming projects on RSPs

Brian Van Abel

you're out yes, the are located of to we these Once David, a and upgrades call that also where time be with projects the able we lag $XXX radial show of to lag to see call same did projects, support what that, that at we'll million exactly it voltage the expect we we need. come commission Yes. call fully network right. kind mix expect too. basically conditionally up and approve it, And there, the that projects

on be we to at -- make we'll probably middle which year time, if transmission investments of incremental color play see renewable point the, both probably our that So able to we that in we it, next give final opportunity be plus will call this once expect portfolio. out the

David Arcaro

sense. That Yes. makes

Minnesota rate And window case, does you've the proposed any on given on and I settlement? areas wondering, of a was of the potential when the kind what for open And focus thoughts prospects here? Okay. settlement

Robert Frenzel

Yes. the regulatory the David. It's Look, Thanks, cases are process. progressing Bob. through

I categories alignment at cases, stakeholders. lot reflect of I the policy a think when our they investment look and the with and

So we been testimony don't Typically, settlement there. received. expect any their until we counterparties don't talking start with contentious issues after has

at the the the on case of and that's So that's August expected end gas in electric case, early October.

QX So probably or in more QX. late for discussions ripe into

David Arcaro

Great. Okay.

Thanks Sounds much. so good.

Operator

with Karp question will from next Sophie KeyBanc. come Our

Sophie Karp

follow And come X, for of foot it. the X.X opportunities in much sort then low-hanging the MISO of tranche that where will? here and you could is you how I if behind ways the basically shovel-ready, question right on up If may potentially of same your competitive have

Robert Frenzel

Yes.

in we're think of in I early development of those the look, lines. terms So innings

of concluded greenfield some of lines processes. substations, I them think going the that are and but to into siting themselves are existing be and require most local permitting

the Midwest, that we did we think this and strength XXXX an upper did the company as up MVP do plans for area plans. this. the I We of the CapEx in is execution

the really think that And Grid perspective, from right we with Group execution something team partnership and North we've Partners is a got this that an so in a good that's strong our wheelhouse.

Brian Van Abel

the of need processes processes, I'll with regulatory go we'll just certificate Sophie, is our And through add, commissions.

get through year, and take final determine final routing everything. X.X to years work And we'll X that on so will processes those permitting, where

Sophie Karp

Right, right.

remind is that you your long-term And of plan, so anything, baked -- how into much capital can us? is already if that

Brian Van Abel

in we XXXX. a X-year had called in to So it, our expected little some by plan. look we bit at But be these when are -- states right, service

baked forward be plan we'll forward start we we to. plan it as our as XX-year we'll that -- roll spend start forward of we include it to our that see October. roll see in our plan in So that how you'll plan roll -- is kind in And is new X-year bring X-year XX-year you'll will

Paul Johnson

did We have of captured years our... the some of second in it X

Sophie Karp

made way had the sticking I on rates Xs in kind the the that can I board be Do right? next arguments look bit of But up? pretty that trend And and down, a Or that right? question on this you sticky So higher to? that of low a with ROEs, were are they are not appreciate see would Interest the forward is maybe across going structure up, the should Another rates the fact much in at something this in keep decade. they picking of being your territories. reverse is the kind we little too, being higher and level. ROEs the kind Xs and

Brian Van Abel

good a that's question. Sophie,

in and way for the decision look Tail it, points was last gas, Otter XXX. we XXX recent a a the CenterPoint electric And And a -- have then now. Minnesota right and couple late kind of at ROE at has look we a an gas year there's and think settlement Armin's Minnesota. X.XX%. we side, points, business at ROE there's One a is pending data XXX data Minnesota I some with a of then in in

authorized inflationary that national jurisdictions, they average. the So but a think see very do across work I We to to our no, were we we pressures, are up get ROEs closer have to and like do think operator. go down, go rates sticky good I average national we'd those most to think we of the below as interest

terms hopefully, see goals. aligns future. helping it we in decarbonization them policy a reflective outcomes commissions, of aligned their are policy some our We in And achieve with in can the with be the states our of

Operator

we'll Paul take next, And from with Associates. a Glenrock question Patterson

Paul Patterson

can potential the the So be I just like could XXX what -- know affordability to have might rate I as completely sense late-night the from you how beneficial potentially But you be bill. pages mentioned any to experience. Do relate the bill? from impact

Brian Van Abel

to while a long-term as a looking saw a basis ago is provisions. modeled when the about were customers We about. we when on X% analysis, at long of and this at done So this we longer term is term a benefit a some very thought we it, We haven't we it our over model. look the earlier the CAGR

caveats are Our at of we is us have. this of in drive bill at inflation, and inflationary long-term renewable we lot type terms a customer right? there's what Now But impacts there looking deployment target of that. below helped

So I of the think magnitude. that's kind

the depend And of we long-term credit our would significant well believe But certainly really an see we're nuances for better that and I because term, Now of extension that has there's PTC type the longer backyard do. add wind and that. this don't a IOU in nuclear terms a I benefit we combination I hydrogen. some on of positioned think to will just of solar than in

plans tax extension And so our any of credits. without approved commissions our

bills is forward matter. with top community and Now of long term our to customers to have make transition this on our more customer for customers for And this on more to for no, good look us in we working really it deliver puts commissions. our this And view position affordably is transition through a great, our just us to affordably. even

Robert Frenzel

Yes, I I'll Brian just said, what and add completely. with to him on agree

to country, adjacent and the think resources low-cost think energy have the the Midwest attracted that solar in and that hydrogen the Southwest to And opportunity I and other and than with middle areas. can clean long business to more When a those located drive clean transition is wind wind we'd cost country, make of footprint they've across because driver we've in that cost solar green fuels places been I clean the in interesting and energy. an as should you've we and really reliable fuels effective, here the the becomes the production engine. economic of Businesses seen expect energy and clean if parts. got the our to have development drivers concentrated about clean more term. capability transition continued the in we energy are economic production those effective and in the make And we've our that

Brian Van Abel

And on X%. a talk just going to then about clarify, Yes. CAGR to That's basis.

you customers. it So significant our over accumulate as very time, becomes for that

even it. are look faster. built this it plans So passed, I we not but our driving does, But plans our like forward to on if optimistic forward gets said,

Paul Patterson

the was have And pretty that sounds you being large you situations guys of of you guys there terms with then significant your are footprint, But you're were significantly, parties farms about Do that of and you. familiar curtailments in I from with how any counties potentially story perhaps, very wind I positioned any a Minnesota. and And jurisdiction. are seeing are you in specific pretty and Awesome. part also are know perspective other well, tax -- any there some well seeing? what there revenue in a a you're Southern you. southern mean, local occurring article wind Minnesota. very see in production But curtailment the are with more at situation guys the impacted around issues

was that? if had So I any on wondering just you insight

Robert Frenzel

source significant we the I for for us Look, Southwestern the last amount in that and region. Yes. seen curtailment It a a of have think build-out Minnesota. over was wind of decade

that of X and so think program short and led In term, the In X that resources longer the I able on the wind think the But a with that about it's need our built something certainly the conversations into taxes property think think we're And I communities that's that local but I curtailments is for or out implications plans, impact and desire of load congestion. curtailment our frees the and manageable there. to of and think get great identifying recognize and load. in cost driven And we up is owners lot the customers, need the the concentrated farms, is transmission production deliver. move for energy clean to sometimes the terms well. that in we about as some don't we locating to MTAP in it's any has and payments. it's as of resource entity the it's for it's term, just by stakeholders that our to the to things X of

Operator

additional turn for Brian I'll questions. have remarks. We Van back to the call Abel CFO, no closing

Brian Van Abel

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

Operator

We thank for again call. today's your you conclude does participation. this And

may disconnect. now You

Xcel Energy (XEL) 28 Jul 222022 Q2 Earnings call transcript