Earnings call transcript Q4 2022

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Operator

Good day, ladies and gentlemen, and welcome to today's Xcel Energy Year End 2022 Earnings Conference Call.

For your information, today's conference is being recorded. Questions will be taken from institutional investors, reporters can contact media relations with inquiries and individual investors and others can reach out to Investor Relations.

At this time, I turn the conference over to your host today, Mr. Paul Johnson, Vice President, Investor Relations and Treasurer. sir. ahead, go Please

Paul Johnson

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

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

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

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

the turn now Frenzel. Bob I'll over call to

Bob Frenzel

our Thanks welcome morning, everyone, good and to call. fourth Paul, quarter and

execute Energy, very another had We and operational strong to successful strategy performance. at Xcel while delivering financial continuing on year our

investors, we delivered meeting for the of straight dividend year initial our at our exceeding increasing per share raised $X.XX $X.XX X.X%. of year our we consecutive guidance. or XXth earnings XXth representing annual or In EPS February, For

ranked average. recently, residential We below XX% a capital in which extended are and the outlook customer national More in quartile or rate our bills XX-year CAIDI growth. we top plan features more with X% the a November, long-term investment base an reliability electric approximate than in

factor and XXXX. $X wind commodity in industry-leader be farms fuel-related $X X,XXX backdrop Xcel of the in performance, owned almost Energy's XXXX billion approximately an significant savings of of year, to since this generated customer amidst billion And net capacity increases continued megawatts

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

billion add nearly cases resource Solar Uri Commission approved Minnesota project in transmission us XX,XXX our transmission now Commission We through coal leadership megawatts to The an will active coal scale energy accelerated our for utility our and our Colorado transitioning approved expect MISO end $X.X plans Minnesota recovery Pathway of out approved and our project, free customers. rate of storm year timeline billion multiple we our XXX Commissions renewables resolved and to Colorado cost that of clean regulatory and systems contribute $X which awarded the in projects decade. the had and proceedings. by this megawatts to all XXXX, Sherco be transition for in of of Power

lead emissions the carbon XXXX, reduction to carbon XX% below on estimated track remain achieve reduction well. in as our XX% to carbon company by XXXX across continue and We were levels approximately we XXXX.

Reduction Inflation metrics flow improves the the to on Act and the our our execute electric credit of of enhances competitiveness our cost company renewables and will of vision, for cash new customers, programs reduce customers. renewable implementing passage multiple The for the our for Continue vehicle offerings.

also approval. in that filed transportation Minnesota Wisconsin comprehensive and commission are We plans pending

among goals, operational, really well the all that being proud disability as rating we by in for most ESG recognized recognized employer from to our workplace. environmental the lead financial, and for entities, finally, MSCI been and And advanced and an on deliver upgraded our and We've multiple veteran can companies inclusion the leadership we're admired AA by responsible remain have best AAA. simultaneously. including ethical, team world's I'm a to diversity

resource additions retire ahead, coal in transmission growth our Looking transitions the plans, including enable for resources carbon-free over we responsible decade, organic affordable sustainable community we're those needed renewable to plants. well-positioned the and next as

been at proposals portion X,XXX have generation, jurisdiction. approved of renewable the megawatts for Colorado a Minnesota, in SPS requests XX,XXX approximately and a that new seeking megawatts in issued recently our We've of

of assets second portfolios this half recommended by our this of year in decisions our year. We'll the middle to commissions and submit the anticipate of generation

and and in to expect needs. RFPs this Colorado also approved year additional next year remainder issue We Minnesota of for our the

believe the the the also further and more of strong a projects, As territory. clean we geographical should energy past, give hydrogen the Infrastructure due support we've IRA. a solar advantage are our in advantage clean to Jobs result This green in to and transition that low we developing energy other the which wind in federal becoming have as from resources us access fuel and Act cost discussed renewable in feasible service and

the favorable Midwest from Late notice compete the the submit encouraged December, Rocky in last Department for billion received from In Upper concepts hub hub we the of to both year, we Energy hydrogen DOE submitted we're concept the and to $X papers regions our Mountain to awards April. applications full for hydrogen and program. for

generating addition, nuclear Island hydrogen In pink pilot be our is our operational production station Prairie this to year. at expected

to our in hydrogen clean both and and utilize at Finally, Home green generation heating. gas forward for bring year this stations gas-fired we fuels blending network expect Building to and our opportunities

business, to in to to future. we investment decarbonize innovative the As utilize take we hydrogen advantage opportunities well-positioned continue capital of are our technologies potentially significant

energy electric penetration renewable also excited to new pilot advanced system a partnership needs. Energy to to storage of increases, our Form opportunities the in long-duration balance two assets projects. As we're storage in announce Today, develop interested states pursuing with our we're

in need could coal projects the be XXX-hour as system are to as significant providing and Energy's our and XX to These early portfolio. a deploy renewable plan both we We that technology support resiliency critical expected battery a system online Minnesota component a storage to our on strategy be megawatts the multi-day to Colorado. retiring XXXX. reliability Form plant decarbonization at

I who warm snow, several to recent on wrap worked and the of keep the in sustained zero heavy thank lights high up, our employees houses And below temperatures, as the feet want thousands winter we wet, during in of winds storms.

our dedicated I and employees are with Xcel that values our what exemplify believe our trustworthy company safe, committed, efforts and distinguishes Your of connected, partners customers. and Energy

over it turn I'll Brian. that, to With

Brian Van Abel

all. Good morning, Bob. Thanks

another growth above X%. slightly per strong to of earnings riders $X.XX our natural share rate This regulatory The following; compared long-term and XXXX year growth gas year with the X.X%, per by X% driven had per recording $X.XX of share earnings to for target represents by of in and XXXX. $X.XX We drivers outcomes for earnings recover capital primarily margins increased included the most higher significant share, electric investments. EPS

ETR, effective mind, to flowed lower a in increased margin per addition, customers are lowered $X.XX earnings back through PTCs share, are keep lower In tax tax earnings by rate production the neutral. credits electric but largely

share higher capital other were taxes, share, reduced by to which by increased expense expense taxes, these by share investment $X.XX $X.XX decreased earnings and per O&M share. interest which expense property earnings primarily drivers reduce program, Offsetting combined and $X.XX earnings per per higher $X.XX depreciation earnings items by reflecting positive our decreased per other

due sales Turning with We to service driven activity economic by higher our a largely growth in sales, anticipate territories. C&I XXXX. of our X.X%, strong in modest electric by to sales sales X% increased weather-adjusted our of slowing

O&M due storms, to driven cost year, technology expense, expenses actions vegetation and customer the weather. and million increased for additional programs, inflation $XXX to Shifting by management to related

ensure we also in retained talent. top We our our invested employees,

increased continuous inflationary to remain, focus improvement expect productivity drive we pressures and expect our to we programs, on efficiency. to which we While continue

will result, a in O&M decline expenses anticipate approximately X% we As XXXX.

decision reflects recommended commission proceedings. case, tax which the rate the made Minnesota In Natural and We of commission equity anticipate Gas and We the progress XX.X%, rate of number tracker. ALJ property ROE of a our an regulatory million, on increase settlement a the later decoupling of year. approve a mechanism X.XX% ratio $XX this a

requests our Hearings we In the continue see the reach to the and can MISO were if commission our revenue December constructive Minnesota rate electric our settlement. reduce a establish from in and case, we parties proposal capacity completed meet with to accepted to tracker.

have We later litigated absent we with case are and in XXXX. However, comfortable decision a strong anticipate settlement. a a this outcome fully commission

filed rate ratio of In a forward an case in We XXXX, XX.X% and a increase of in commission of equity year. an rates November decision final Colorado electric third a net based the on anticipate $XXX seeking implementation test and of XX.XX% we in million XXXX quarter. ROE of

million the here ratio We fourth XX.XX%, coal Tolk also rates rate Mexico anticipate in a of commission a touch case retirement We of New in on the the the early XX.X%, quarter. ROE equity plant. rate decision and of $XX based increase a of filed final of forecast electric seeking an implementation

As far and Texas quarter as file our to in Wisconsin filings, we future quarter. in later plan rate the second the case

this later key in territory the cash enter we Reduction elements include the significant As bilateral have billion and reducing provide transferability tax sale met credit liquidity our into increasing with to benefits, $X.X companies customer following; will We've tax the needs. in equity flow credit discussed Act and contracts of provides service expect Inflation past, year.

projects the XX% solar the debt due customers is to as we tax embark and we XXX improved in forecast will projects to extended basis new XX% solar by to this to for anticipate and during and in decline of FFO bids competitiveness credit improve on the energy by transferability credits, great by the Our XX% PTC pricing our our tax points metrics which XX% clean renewable wind transition. period,

of our balance material any impact a as sheet. AMT don't credits we makers' and Finally, existing result from anticipate on tax depreciation

of range reaffirming guidance with are X% consistent to is objective our of $X.XX long-term growth earnings which X%. We share, our $X.XX per XXXX EPS to

our earnings reflect to our release. actual year-end updated in results which have We detailed assumptions are key

wrap We XX,XXX the in for earnings Minnesota, plans a results We With XXXX our that, approval year summary. had financial new consecutive renewables. a dividend delivered which received up our with of year of guidance strong within XXth year. consecutive operational Colorado our I'll in We research increased and quick megawatts approximately in XXth XXXX. and the and range,

for has our significant in passed The company. a Reduction Inflation benefits the Act customers

growth transition upper confident of range We consistent rate. continue for earnings long-term as the lead energy to X% X% the we objective our with long-term growth our remain and We customers. earnings guidance, to keep and can we within our dividend clean are reaffirming deliver low XXXX bills half

now Operator, remarks. take prepared will our concludes This questions. we

Operator

question Mr. Nick from Campanella [Operator Credit Suisse. calling Instructions] is from First ahead. go coming Please

is open, line Your sir.

Nick Campanella

taking for Hi, thanks the question.

more one-time O&M more guess the little Can you. Thank and guide and that's a continuous stuck levers comments talking and -- you're the your in some to 'XX through prepared nature on remarks we just us about or maybe this just really of improvement. leading bit are us 'XX heard you just O&M plan? what the in that So, at out reduction to I give that sustainable is I pulling on the

Brian Van Abel

question. kept updating terms we're bit our we really O&M the make a of for a continuous and our I'm XXXX a good is actuals XXXX had me of of of efforts from we've Yes, a our doing little let that's to one good ended Nick. improvement up something in couple proud function points but flat underway proud for that Hi, of to been guidance, employees in out, -- they've In a where O&M and long-time of customers. XXXX, really really and benefit XXXX couple underway

We XXXX did is actions to similar with given in good reinvest have in but also XXXX year and our this employees. inflationary weather took pressures the

scheduling I we have some lot couple investing As of which use us factory is, we're reactive, we do technology real in how opportunities make now of call in is think to plants in the more one about time plants, to more things, AI efficient operations AI. and a XXXX, We're our move in investing really maintenance. significantly proactive digital our in, from using it, other

broader coal the to will in we but provides to energy down think starting lead a year a are we terms get end plants, which of decade of also down this in as our us a this basically we unit 'XX clean through that have as tailwind start We treadmill shutting shut of transition. only with coal on not a

then example, call for see in number some year had normal quintuple days we And it, that storm high we costs, was diesel the also had abatement the of a storm we above of, do December. in XXXX,

that are So that in things help us happened there it. happen in should 'XX won't some achieve 'XX that

answer, and hopefully but color a provide a lot unpack helped some to it. long on that there So,

Nick Campanella

into on more it about full the And the settlement great. distance where this docket just sounds Yes, taking on so this electric and wanted taking be like to of, but much. I how you helpful. the we in you're that in point we are thinking be that's order Minnesota the confident at unlikely case, to should consideration, today? clear, That's Thank is

BobFrenzel

capacity we asset in the revenues actively dramatically filed we Bob, it's and of we reduced parties sales MISO and initial the probably the over thanks for working the a year-ago, remarks, ask in actual extension And the down as through experienced state. lives question. said since with case September Nick, prepared timeframe the for that through our we this total we've bringing

data case, reduced day us his Minnesota recent revenue think mentioned the in some Power our we in for prepared gas remarks there's in decisions a really Brian but we're as opportunity case points this, in and that tailwind say, settlement that pretty to Southern the all settlement, always engaging the -- a with probably is move open decent is the we you with ask forward Minnesota, to So an confident other taking in so. are we feel do that think way, there all would if parties certainly to

Operator

sir. much, calling Arcaro Stanley. you from We now Please Thank David go to go very Morgan ahead.

David Arcaro

there filing additions this whether preview new be might if be of investments for I technologies opportunities be we invest the there? was much you and might the give Heat later any from Plan taking and what plan my questions. to to expect in CapEx wondering year to so Thanks that Colorado, could might potential able Clean what

BobFrenzel

Hi, excited I'm our a share the as zero the Heat of business. future certain opportunity, That's Look, an with I opportunities the that strategy multipronged it's align David, more on a to formal our think not commissions Plan for and that of investment decarbonize see a I it's great opportunity vision amount significant really our to new business for about question. of to Bob. but to us process, expect an would we're way. in on align part net a opportunity Clean gas sort gas really

methane tighten we're we've providers to done that purchase there customers. upstream our We're working buy the gas programs working big methane it, encourage we more system, for with to remarks. prepared switching decade own system that over opportunity the a on up encourage reduce on energy As in for from beneficial about job our maybe terrific leak investment the an think around then is customer been always that I work on I is then think have we fuel reduction, fuel there, electrification and my we clean and and own really comments past but the to our perspective efficiency work I made in

Western we jurisdiction in Colorado working on with We been and Mountain it's think the and states really multistate parties with working governors of the the all attractive are a Rocky of multiple the the energy a MOU hub, together. has a project, signed are hydrogen several officers states

gas us think So a advance and to clean fuel's in net zero the customers a opportunity transition for our clean to for I real and the energy realize help business. us future

Brian Van Abel

Yes, David just five-year a in anything current our of couple hydrogen related is, investment add points to there. One have and plan opportunities. don't I'd we

over we faster an five move pull it opportunity the upside to there's point, think about on to forward absolutely hydrogen, So if and opportunity as that the an next years.

into volatility industry a blending price certainty and certainty overall LDC it think the discussion opportunity we customers think gas so the and hydrogen natural renewables also and of, as we and we more that cost customers creating But now bills. for I lot gas it, our call about longer-term us out, our owning commodity green our natural longer-term do of how that's think volatility benefit about improve and help the takes creates

BobFrenzel

which in exports rest or Mountain And low the we're of or help that's wire we having saying low at creating then of by states whether sit the broadly be via region you're be which our cost we Midwest transmitted for but remarks the that prepared energy making should backlogs pipe to green electricity upper not the for well. customers destination as via I worth product where be cost to to a in and we great in installations again, our development whether is, a economic this country mentioned only do geography to hydrogen should wind just can or centers that's that the and opportunity looking was beneficially regions, should this trucking, employment my are add overtime those access and benefited Rocky able we broadly, probably solar,

David Arcaro

make sense. and you might storage Wondering long-duration that Is of to initiatives, scale with related wondering of it storage, system I Energy might are up that might might sense that on much make have a over separately nice your announcement if the how That's time? like really through see you'll megawatts long-duration for your proportion And there certain or fleet here. color. then on initial to Form the lot number a a regulatory projects sounds to it successful process? rolling it's be the out. to the see make that generation was extent these that, how for Thanks sense helpful crystallizing relative program you and

BobFrenzel

Yes, thanks, David.

As each states, have and with clean for and we are for, combustion synthetic we'll like of resources, with we hydrogen call, need need have turbines we go increasing higher through gas. find energy fired resource fuel we those increasing our maybe or a historically, they been natural have as of penetration renewables would plans that what dispatchable

as Over but in see several to I if thousand being we our time do of fly, and long-duration you might feasible the and megawatts to and this math had I'm resource realizable in we lithium-ion for utilization that if so an but projects, our These are out. technology the probably plans there's resource XXX interesting and storage. systems, if next the proves five long-duration they XX -- have be can become long-duration cost on years do And megawatts within add-up storage the generation. XX dispatchable our going more several think a effective, asset, to duration a plans were that storage for I firm solution, part batteries have are could

Brian Van Abel

about is we on really to that we're about the last providing transition talked our out know to always carbon of XX% we've reduction this how and clean I solutions. one get taking about that, technology, this to energy leading just XX% forefront goals we're demonstrating stack this XX% the shows plus so add that and to XXXX and of we're really that of really excited would Yes, the and of and

if look of XXXX, need what of our one be in that storage size that do terms beyond capabilities in we you So about at can do resource you to you think will start solutions. and to that the when mix

Operator

JPMorgan. now Thank Please you from ahead. so sir. Tonet Jeremy go go We much, to

Unidentified Analyst

actually Maybe changes It's morning. parse your range already with in just for one changes are I time putting out you you're the Jeremy. can starting time? true-ups good O&M 'XX, are full today. we but versus to at this effectively of what guidance Hi, drivers. on in or the Rich lower for [indiscernible] 'XX for you Thank curious know if point new these any of higher for range the of within actuals expectations had

BobFrenzel

really range, read right, is is up X% terms in and midpoint of up landed where we year on be gas feeling still in where in just early change. a a and $X to right, a I'll guidance specific bit, of of the gas we're us the for less start, to sales million but the year-end than is really function sales that's we our expect little of changes, terms

good in had in wind benefit lower. function rider so The little relatively and of of bit revenue depreciation a interest do a PTC increase expenses a in see a that's we XXXX, year neutral, the earnings that's we

look rates the year. months now our it goal XXXX range at puts to having is relatively Let's XX see we takes midpoint discussion now for and think and overall, But now and of is looking-forward deliver a lower are we're neutral targeting QX. straight about than to forecasted the for from XXth as we guidance and the the so in

Unidentified Analyst

this lot curious bit on and there. operations your the electric And turning I'm then higher thanks focus Colorado this to your equity you color but in well? the Great, in little gas excited, plan might back impact the of as state for thoughts level their addressed system quite on a a how perspective, for

BobFrenzel

some very design deliver did of believe minus asset a home I need valuable as for for has we days decarbonizing planned the happen whether of which that Colorado the significant system Bob. Heat still energy efficient climate, heaters XX, so it's has on is value pipeline distribution of Clean coldest beneficial mentioned that our in it's we the is we Colorado, behalf but customers our incredibly to to strategy the amount Look, that Rich, customers water believe temperature amount in for system of electrification part that's long-term ability we Plan the a our or very on a cold Hi, there. is expect delivery system do or and cooking a in weather our of our for heating,

both green part I presents sustainable, business think But can that's electrically, and at fuels -- we by growth an Now, affordable a there's that customers electric future to important. strategy our with also natural of the price, there the realize opportunity as gas put we at it's aspects. do probably synthetic for of as our good that's electrification EV's hydrogen that and driven look to about product in of those is think beneficial our and and Colorado, clean

Operator

of Thank you Dumoulin-Smith much, to Please now move sir. Bank of America. We'll ahead. go very Julien

Julien Dumoulin-Smith

opportunity, good time the team. the for Thanks Hi, nicely morning, and done.

on I want the on some given winter little bit here, talk just cresting And of -- can the in just that up rate bit that understand side? think are on this bills, cadence setting commodity get the customers, to also of about just to your the if then ultimately the bills, back on you a is we've to first you the your a seen programs? in itself how just little to so, Brian on especially customers increases So of gas what trajectory reflected hedging the prices

Brian Van Abel

customer because Good about bit think little overall the on side of the think talk from we really Hi, about -- well-positioned and Yes. we a I'll sides question, electric about Julien. business perspective. bill both

talked the right, sold out saw given went environment hedge at electric statement Now in per on out our of we're, about XXXX, see the modest side it, a inflationary into call look and goods is the build that it, XX% the about just the Bob XXXX customer we a XX% -- you really income in residential commodity talked our cost bill. impacts if wind to it's being it's electric fuel we've really on and and And year, lower perspective. been on that's customer from costs played than always we for average, good also national and rising bill more and

So, gas lot on good place to side. and LDC the natural a place assets. good on the be you a have side, electric Obviously, and lot fewer fewer levers

XX% saw you not any XX% past lowered by to because that so see twice QX our -- feel impacts collected, going. prices customers' impacts we've is in to in you And headlines appreciative about going the caught of we bills our to clause where was gas that over start XX% commodity right And to natural are we gas if starting bill obviously, the and we're few months, absolutely will but it, QX to that we you're of portion some with subside proactively so that updated did just, the of of the the for actually customers, commission in like of that magnitude, commodity be the do sort that. bill Colorado relative which gas of to

we that our can customers. to costs commodity every reflecting So in lower opportunity make we taking the we're sure certainly have

XXXX the customers. beyond for bills delivering where doing what inflation the of really think good at see, that's IRA is about we and and really as longer-term, us So we level for we and think our about I feel

we and So both as we it. think good near-term longer-term feel about

BobFrenzel

said into Hi, and over you XX the and history Julien. of at add, if years years. everything agree the last look-forward I'll the XX with Brian long and look arc next

or inflation hands this into the that level getting gas actively heap the that consistent and we're record gas at we've and significant side, electric of federal amounts empathetic on that is why -- tough most. think then side, with government I and a people's the amount the around worked of needed on enable year comment been the to hard below bills has

advantage lowest customers of have national position, Longer-term, more three across I clean-energy XX% we we gas cost-effectively we in business, residential one are starting do good your country. this of transition, And our the or in said, the because areas. the very point country bills in we feel can gas think strategically and total below our you the this I do we can as top in our businesses and what in electric our two think one highlighted reports average this is or a

starting good empathetic who work increases mean bill fuel to don't obviously rents we're everything So customers it at grocery but pump, store, we the mortgage and point, are at doesn't the our have do feeling to else. always and at and payments

So, opportunity for the talk to about thanks but it.

Julien Dumoulin-Smith

Yes, absolutely.

just You one of earlier. going bet, hi the from listen, to questions back

we statements without to given in current fingers will cases instance here, versus you seeing litigated conversations bit settlement expectations the On could settle Can point curve altogether. what increases are you talk a broadly speaking challenges again obviously more the isolated little ideal cases fully be here with about pointing or backdrop is broadly, specific an for data having rate necessarily? an current extent the pattern Minnesota fact at

BobFrenzel

Well, he's got I'll add-on can if anything start and to add. Brian Julien

we generally, for think settlements. look I

even think the for as I look settlements. at think we're the settlement. Minnesota, encouraged is recent for some to you look looking of commission data in I points

path reach with do So and to maybe as case this so. that the the encouraged to think we're we maybe a I with being settlement saw is backdrop, parties isolated,

credit we most we know preserving credit deliver the are the to important make really on reliability, make that healthy need broadly is of delivering that capital we're to profile and as to companies we metrics sure are to to we customers need customers for but jurisdictions, most need our operating capital also seek do. think staff, our that's speaking, for and sure keep we I delivering we a of and our advantageously operationally, we financially case for cost utility, that and metrics investment our raise critical our

your long and So, of as that comment is would where and got we've think again to going-forward. a happens take the debate think record cases settling settle continue to so track there going I we're to I think encouraging I

Operator

now very take from much, calling We'll Travis Thank questions go ahead, Miller you from sir. Please sir. Morningstar.

Travis Miller

had bit? C&I in what's demand, X% big outlook moderate Obviously wondering year year we does see you that good or your total another with a that for the C&I a sales

Brian Van Abel

I we SPS in residential one. we C&I in in -- XXX saw out, see X% C&I we in sales, you parse No, in negative, in helped about actually continue it that I saving see XXXX decline XXXX the is saw but make the just Hi, if Travis. growth state in similar Yes, adjustment, look we jobs I customer from the at C&I decline C&I Colorado. about when is what take you ensure under an to where Colorado what levels the a C&I, think X% large in a that the that particularly that rate, megawatts think increase we're strong to we up if the COVID and I you ensure numbers, and those can installed have good expecting residential. for Colorado, continued solar growth to XXXX farm

for the Colorado have And X% so actually if been would a year. you C&I adjustment made plus that

there. service growth So a remain all strong across in in to of little our that albeit XXXX expect economic activity but of bit slowing territories, C&I we

Travis Miller

Okay, is great. it in what proposal at get you you to discussion, April And some spending? where of you for correctly, for it on the a CapEx was file then potential getting I sense start more think a that non-approval or I the there which up next your point a is point hub follow proposal heard later given information, hydrogen if

Brian Van Abel

full the I think it, think innings dozen. Travis, I'll looking with plans, Energy around Yes, filing I date probably next Department for, two April of the at it's call is the departments. is early

a that So for going to while them take I'm perspective. it's award that forward from the guess that going six to grants to move through parse -- in four to

year lots at to department regional We multiple applications get longer. sources But a and me is both before going incredibly users, at. we the are if interesting, our I from end next guess, criteria think to of benefits projects say you're clarity is going least April any ask think provide I'd potentially look multiple it's those which of to of on that

BobFrenzel

in our we side hub be decarbonize side side Yes, Innovation and we a very through Clean about significant XX% in the hydrogen great participants, gas as to also concept, XX% Colorado, do the forward to us electric in we and our I us in opportunities but think on working to Plan about the how electric both expect last have the stack. Act Heat move our as Minnesota hydrogen and and pilots also Natural the but which then we're think think on Gas expect we that's with opportunity interested

Travis Miller

okay. Sure, being of next year XXXX? End

BobFrenzel

Correct.

Travis Miller

on that, partners Okay. just proposals, many Mountain, how those And then proposals? quick Midwest real are in two Rocky

Brian Van Abel

but in I to I'm specific each think back the XX going number, region. to in five it's Travis, guess we'll get the to

Travis Miller

a number. for just Okay, let's looking rough

I Okay, had. very good. That's all Thanks.

BobFrenzel

Appreciate it.

Operator

Thank you Associates. Mr. very take We'll much, questions go from Patterson Please sir. now Paul Glenrock ahead. from

line is open. Your

Paul Patterson

fuel you little But surprised trajectory you just thing the those the policy. national just industrial's -- So, of one everything, have of on about danger have on because how by wondering, the I've to it's some I I rates in what you that think question, that's I been memory about about could refresh and I or following-up see forward, and And average is saying much changes sort moving keep goal -- policy what thing could was just is -- and in state being below that X% about? we to hearing. sort line this not frankly performance with up the they're just moderation just in I of prices just of that sort are you of some do a going-forward the sort you made hear about that being I guess wall talking not there wondering by within hard my state was speed filing I'm articles Julien's goal were of you're on or are I'm environment, regulatory pretty pieces just track what if and sort going Minnesota it's

Christopher Clark

a Clark. have Hi, of goal Paul, be within the company. there prices average. Chris the is this and of seeks national Yes, commercial to that industrial XX% President in statue our is our for I'm class, Minnesota our

simply you'll for great gets is C&I and class, actually been for that's and is really we data I bills one our point customers flat that because the a a they've our period, that pulled at think a see component think our I some over at that starting got provide EIA attention XX-year relatively only the total is the the rates the of look value if that look But you here look rate. bill.

those our rates in job customers competitive, credits, of if take and successful, that be at account leading see business you class been think C&I done in to have other our our we into new really here conservation you'll attracting programs I fact, class, a that C&I we nation that great what to the for Minnesota you do So state. and achieved when things have are and look

important we're confident have of really those it's as CPI. that value. think take we rates with and into clean we then And to how C&I said, when think look and that And this, in deliver when I our a affordable at we So, our that for plans we the transition, I energy over can keeping account. navigating for customers we're and the we've the Bob delivering doing picture look shown at in company our can great or less continue successful be long-term, rates results line Brian

Paul Patterson

great Okay, answer also a that.

little associated just of these you deployment, economics own flavor more The second are iron cost apologize you just give missed bit I interrupted and this them battery apologize here. this the but question, you've what's I a two if -- with I going could guys discussed The the these I or I already projects? if have got to and of

Brian Van Abel

of the these Yes, good cost question. batteries, we yet. No, disclosed haven't

the we to think on and yet We grid carbon-free. a to look commission, to how to as certainly technologies valuable important are deploy start and regulatory looking the about think haven't we new made O&M a these we our and asset as stakeholders and we us filings forward discussion are we there do O&M, having but will we decarbonizing into harm's

also with but it and the obviously, you something that's scale. metals, battery if right, this think are more is $XXX we about to expensive, and available that think new is this cost rare ability as iron there we see solutions readily So chains the technology don't out oxide, any what's of viable about that other supply a

overall, pretty this. So we're about excited

leadership come commissions, I with as to think it innovative demonstrates an terms clean our excited our in certainly to of but cost. disclosing tech company work the and we're more

Paul Patterson

great. Okay,

Just roughly might you filing regulatory when guys speaking? any make idea

Brian Van Abel

be this year. this Later will it year,

Paul Patterson

right, deploying you mean, XXXX, so? guys I are Okay. in

Brian Van Abel

Yes.

Operator

sir. Thank much, so you

next Crowdell question sir. Mr. is of from Please Our Mizuho. Anthony go ahead,

Anthony Crowdell

me squeezing for Thanks here. in

Just do is points hopefully forward ones. they're XX I and think asking guys basis all When for year. quick look two beyond, from rate the major a reasonable structural reduced guess XXXX at what like, XX, look say assumption for at we can you you you have, four when a or filings a to XXX that test XX? be

Brian Van Abel

question. good Anthony, Hi,

'XX COVID we're As back we had earned regulatory it a right, to then ours, hit think and had hold in XXXX successful. in bps always been And XXXX, a we it filings. and that's an scale ROE from goal on about of from perspective, goal we XXX and some then

some is we our success that XX think to albeit about from look and close to I goal had bps. modest XXXX, XXXX forward, as we

is improving benefit we always continue XX about the that on point about and as good customers, now on think plans really to goal is constructs price it I basis really focused either so or getting probably going something the range think of work something forward longer-term providing to that as you through. important goal we'll our a multiyear focus is that continue mentioned And we're as closing think near to plans regulatory and in we

Anthony Crowdell

question. Great. up top Julien's And just of on one follow

and lately may general. frequency, greater settlement? specific at the use I just occurring I Minnesota, achieving be settlement you some in that tinkering Bob think you your but It like does with seems to maybe prefer settlements seems pause commissions had not term, it if just or route on mentioned that that's you a give

BobFrenzel

Great Bob. Anthony, the in inbox today. Hi it's name to your see

Now, pause we've a it history here. doesn't long think I me had look, give

We continue proactively to staffs and work commission. with

I the encouraged settlements are without ALJs before go understand to and always they that that but we respect need tinkering. I them of entirety the there's and edges, sometimes speaking around commissions generally to be think things that they think And settlements encourage want important, are

you think in that the seen I of some some thinking about might to been have commentary you've fact. jurisdictions

Operator

additional you. Brian to I'd remarks. sir. closing Thank And it questions, much, the further or as so you back like appears to Thank no to any conference for have over you

Brian Van Abel

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

Operator

conclude you sir. Ladies attendance that Thanks now much, will Thank for may so you gentlemen conference. you and and today's disconnect.

Xcel Energy (XEL) 26 Jan 232022 Q4 Earnings call transcript