XEL - Earnings call transcript Q3 2024

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Operator

Hello, and welcome to Xcel Energy's Third Quarter 2024 Earnings Call. My name is Melissa, and I will be your coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions] I'll will be connected to an operator. I'll now turn the call over to Paul Johnston, Vice President, Treasury and Investor Relations. ahead. go Please

Paul Johnson

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

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

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

non-GAAP comments As the Today, outage of today's GAAP to on earnings a reminder, disallowed In and we the metrics included that will Minnesota XXXX. are power in quarter replacement our Sherco comparable costs some of factors described $XX cause are may release. the reconciliations Significant forward-looking extended Commission discuss results in certain of that at earnings with anticipated could 'XX during information. our our are third plant releases in filings. million contain SEC measures. those from differ Information measures call and associated

to $X.XX third the of As $X.XX $XX the or a in of XX quarter quarter an second matter. charge or addition a which that charge $XX million that in was was in result, recorded we million accrued to related

both been from excluded and have earnings. these charges Given the nature items, of nonrecurring third quarter year-to-date

in this third or our discussion GAAP will the our $X.XX earnings quarter our All earnings, share, As earnings. on for share. ongoing today call for $X.XX ongoing charge, $XX result, excludes focus of while a earnings per per which the were

please our disclosure this, in earnings the release. For more information on see

the over call I'll Bob. turn now to

Robert Frenzel

another us and of thank Good quarter that Paul. solid delivered today. we morning, joining you, Thank and operational progress. to pleased report financial I'm for you everyone,

quarter, products and our enable cleaner intelligent a most and a benefit communities. future capital resilient to meeting customers the economic more billion $X reliable fuels delivered storm provided to customer and of with our $X.XX for most to development, in services per our partner In of continue the response stakeholders resilient conditions, We by we capable energy invested power deploy customers' We owners. encourage communities. and reliability share infrastructure. of measures and earnings provide grid. needs. for We and And we and safer industry-leading risk recent important and wildfire and challenging ongoing despite reduction accelerated we strong more resilient enable We our we

communities leader. core and anchored a investment clean our as Energy's commitment is investors to by our thesis energy Xcel

For plans, wind more years, delivered this on year. than expect X best one to the the decades, leading our of looking a our we've for make it been we filed with and XX resource that in position. provided stay in of industry -- records guidance to and we've straight We've earnings energy provider XX

a transparent our growth and efficiently. investments have our We've support and and economic grids programs generation, vitality. commitment community's to long-term new in customer support and We energy clean deepened serve enhanced to development plan, needs making

have and programs billion expense operating improvement improving saved while reducing continuous in our XXXX, outcomes almost since example, For $X.X risk. O&M

more XXXX. we've And customer addition, years. fuel our of XX steel below the over in In last has strategy costs savings since rate our fuel-related significantly kept inflation the delivered for $X O&M than billion

guidance updated which initiating rate share, $X.XX XXXX our fossil electrify provides investment policies and of bills we our ahead customers and $XX introducing of X and XXXX in away homes emissions loads heating with gas per enable energy as $X.XX X-year earnings customers residential plan, We're range transportation average businesses generation reaffirming that transitioning are clean and key we which clean a share. a our discipline, Energy, states us capital inflation. electric under of and year-to-date while And and $X.XX to continues earnings, centers result, future our investment to guidance are of the billion goals. their areas. meet our we're on growth this natural secure XX% $X.XX to the fuel Clean of ambitious and which customers keep today, and from policy XXXX fuel power reduce fossil $X.XX needs, per Customer and state helps alongside industry their and well below XX% electric finally, loads. electrification, converting And support helping to federal and

focus our and which over our gives expands New ensure severe requirements in And on domestic imperative decarbonized and The system and Energy across which lasting that agreements to in centers. national growth, the negotiate protecting load onto all to safe reliability, system of benefits next increasingly customers continued customers. communities to and industry. support safety important pipeline It in brought There's Xcel data weather. customer growth the opportunities that's a the data energy our to data customers new in regarding deliver capacity delivers surging decade pipeline beyond. megawatts and us and thoughtfully our country system, has our while risks load with customers, of and XXXX. economic industry center scale to operations hardens this a vitality its nearly lot generates demand data our X,XXX center of drives growth ability address before the and from the modernizes load our our electric and customers increasing relationships ensuring to that support energy new region system center Energy Xcel and needed ensures

will we principles, this guiding in period. about of forecast these X-year secure contracts of result anticipate the pipeline with XX% we a As

these and previously opportunities with well signing including entities, decade. party. facilities. new a our extends signed Meta the grow to stages to center to and contracts that we're customer the need past support final October, a acquisition service Microsoft expect next continue and with in service center We new the land completed completed data In also with and sales We agreements data land QTS territory, in of

the supply equation. the side to of Turning

during Upper And a and our that battery Midwest continued resource transition processes. of our part megawatts the plan. of on selected. We progress clean in RFP investments were natural CTs We multiple settlement, company-owned gas settlement resource and through quarter energy planning XXX reached as

yield of on and plants state of We demand and new filing to first phaseout quarter megawatts to In X,XXX solar customer an our from energy of which of we and RFPs on a In decision in to our SPS projections And with X,XXX which decision could dispatchable XX,XXX increasing made called megawatts filing need indicate for expected ultimately and of our the the XXXX addition, coal for to XXXX. goals. fall generation to we Just in resource approvals portion Transition more up a a the XXXX. megawatts the than in new expect issued Colorado in reflects due solicitation and Commission, generation. in storage the incremental need anticipate that of firm accommodate October, be next existing solicitation, meet which The renewable in solicitations. wind, are data of agreement Minnesota in RFP a XXXX. and emissions is is the commission included year, pending of by the centers These we're is early settlement working achieve January

miles heavy threats customers and our and remains power continue thunderstorms of Energy. Energy extreme that from rain, Xcel over safely priority. and promptly service the Minnesota expect XX to hour contractors weather employees contractors those customers during Wisconsin. in over winds an August, of our XXX,XXX who and the hail for they top customers from and communities restored also a Protecting to employees brought Xcel In We're service that ensure dedication to our safe thankful lost reliable have and storms. of severe that

mutual assistance recovery to tirelessly and the to other to thank and who've Milton. efforts devastating provide we'd hurricanes addition, restoration aid support utilities crews In like Helene from worked our to

progress on wildfire resiliency as risk as which In And in mitigation mitigation accelerated Texas the include we Colorado our our quarter, efforts the to our anticipate will reduction, wildfire well filing continue filing. plan, wildfire mitigation we plan regarding Southwest. wildfire fourth make

that Finally, a very proud. turning tradition to I'm

dedicated and states. grateful Xcel put for influences energy in that that nonprofits from into communities quarter, across neighbors. annual fuels XXX X,XXX projects third We're organizations action service. of XXth took support our Volunteers our come our to good X,XXX to growth nonprofits the action Energy during day almost of support year-after-year to During nearly to nonprofit our volunteers together volunteers thousands the up change X lifts and hours

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

Brian Van Abel

for Thanks, amortization O&M decreased these per per positive significant Bob, charges and decreased increased earnings interest $X.XX earnings $X.XX financial and by share. and The expenses for XXXX. earnings capital depreciation items most following: and earnings other $X.XX nonfuel increased in by per levels share, capital the from increased cases share. share and $X.XX good share rates included Outcomes of morning, higher the $X.XX by XXXX Offsetting by AFUDC quarter $X.XX and our driven by Energy per quarter share, earnings earnings investments by interest higher rising drivers per Xcel third had everyone. riders the decreased Higher by increased to earnings earnings reflecting rate of investment per with fund programs. earnings share. our compared ongoing ongoing share to per $X.XX debt $X.XX per Starting were of results. drivers Higher

sales. weather Year-to-date and electric leap increased adjusted to X.X%. year Turning sales

a we X% are on reaffirming adjusted in increase weather-adjusted weather quarter electric based of our third full However, sales forecast, guidance increased sales. year X.X%, our

plan new centers Our approximately of gas is growth year electric growth EVs. oil from industry from XX% per and and with data X% other includes X-year the sales which coming

assumes only Our high-probability sales forecast data centers. contracted or

continue Year-to-date, and maintenance, wildfire primarily is increased center by low also increased what We and driven $XX million, growth upside to beyond data will included. plan, have we that prevention, large damage our mitigation expect generation X-year expenses. O&M storm there

insurance increased we recent are facing liability excess costs addition, renewal. our from In

X% are O&M full XXXX. As to increase revising such, forecast X% relative to we our to year

based decision year gas month, and During original of a includes to average of of a The capital cost an not historic million in ROE range November. million deliberations will also estimated in and X.X% rate equity approximately of effect XX% cases. ratio an XX%. of completed rate X.X% the $XXX was increase Earlier average was Colorado into this on several the an natural with incremental X%, Rates test Commission which to rate go quarter, rate base weighted of made request. our an in our on reflecting which reflects depreciation $XX included we case, progress that

X electric case, We're is ROE seeking expected In rate $XXX of a we plan in early file ratio. to a November, over rate XX.X% equity effect January requesting of of increase $XXX XXXX. also to XXXX. and interim decision rates Minnesota million an final in go million XX.X% in years on based a The of

claims, which make positive process. We view We've progress continue have XX to been lawsuits as the Creek submitted a we XX Smokehouse claims outcome. also wildfire in XXX constructive settled of and filed. the

there addition, our In to $XXX of accrued is estimated no liability change million.

to $XXX reliability. These X-year we to insurance growth million are liability updated As this of a Shifting annual and $XX clean reminder, ensure serve expenditure capital X.X%. for forecast, reflects coverage growing fire. electric base investment plans. approximately energy goals our which We excess billion demand, provided system have an and rate of critical base investments meet safety

additional plans, and transmission, potential Southwest plus and data opportunities low $XX from X an which additional and centers electrification capital resource Pool. significantly investment, higher. be have the from could including view MISO We conservative and beneficial we from reflects Power Tranche of additional as pipeline generation ] This growth and [ billion RFPs

mix plan financing base to we've our be credit equity balanced any debt a billion debt debt. approximately We $X.X will maintained recognize while billion a and XX% includes and anticipate strong refreshed always that funded fund and capital also equity. financing reflects of approximately maintaining sheet and strategy, a important equity investment XX% incremental of which to accretive It's of balance growth metrics. which $XX We by

the part credit and a you'll program equity 'XX commitment we reflects billion via notice our issued our our markets financing $X.X are equity this delivering long-term financial our and and access to bills to ratings fund issuance to favorable of result, clean shareholder keep is solid plan strong critical year. This returns while of ATM energy As not to capital Maintaining transition, 'XX deliver quality low. objectives. credit customer on

in earnings ongoing share. XXXX $X.XX our to earnings range X% our $X.XX of of midpoint per to XXXX also guidance Key $X.XX growth our initiating assumptions per $X.XX share, reaffirming We're release. XXXX earnings. detailed of which reflects to guidance. the range guidance from earnings We're are Moving

confidence reflects objective X% in pipeline our our expectations of are our the We X% with in to range. investment and significant the deliver growth The updating rate long-term to EPS to EPS upper earnings financial increase growth in the half outlook.

allows to with of We funding flow at our retain low expectation range. growth dividend rate the to equity to be lower and to and to modified X% dividend growth A growth fund the end also lower objective cash X% the additional us needs.

a that will and payout summary. that, time, greater wrap I'll drive We lower to ratio for driving with the In customer which our and lead Colorado transition, addition, power resource our over provides affordability us up resource and growth. economic in reached allow dividend Minnesota financial reliability energy our filed quick plan, ensuring a which With settlement plan while the future. clean flexibility latest

fund wildfire balance customer We from and accretive strong transparent investment which extreme announced value. plans, mitigation program continue and provided risk balanced that base growth to weather. provides an metrics. strong, We a our updated to a credit maintaining reduced make progress sheet financing on growth significant while rate plan We capital

meet and low XXXX will earnings range guidance dividend of This growth prepared we revised objective to ongoing we questions. earnings to X% concludes the And guidance track have Operator, to X% consistent take of investment now the range. half on to the our growth and our long-term are which X% our indicative with X% XXXX capital our objectives. We is to significant upper provided pipeline. end our of objective remarks. the growth

Operator

is [Operator Nicholas with first question from Instructions] Our Barclays. Campanella

Nicholas Campanella

Or talked wanted in included one. consolidated -- the in term Was to more lot pressure land rate of in we customer ask, in exactly? that And was do design you prepared where higher? that provide on you acquisition. had I for details Or And What just remarks, know think growth kind you that? that then then that load make is I large X% long this a outlook your a specifically could how that's there? is a company? about Minnesota?

Brian Van Abel

in we in was on and discussions about progress the, as but it that's agreement. services been, customer, probability X you imagine, loads. active yes, undisclosed And high with call as them of think Nick, Minnesota. it, We've can significant

to center continued great on data the see So we progress the have front.

of into part it's but negotiations, our how also drive as our the think Bob from And of you it we laid terms it and about on so getting design mean, I and growth state, large but all benefits benefit ensuring all guiding rate pricing, we're helps in think into the principles our customers come that economic that important out I and of customers. loads as of these get for

something on not planning Commerce, it, that we at data support front. do about I'm significant if sure caught and think talking faster just Department how there other on IBEW, but centers, us I center it's Tuesday the people was session a the move the of and Commission data Minnesota stakeholders included

opportunities. our not pretty It's to we're so those these look And really constructive conversations. with working excited and forward commission on about

Robert Frenzel

X-year forecast, that land And acquisition projects question a in would Nick, of would our just we've to in be included we reasons, continue Obviously, regions a forecast to sales in transition time. to think our trend that's to is in lot we regions as confidence see continue as growth have for our over to that X-part forecast. sales included probably X,XXX so think, megawatts it one be answer, and about X forecast. meet the our of I well part that ability part got real that X/X our of a is are a was, This of of that into this likely

Nicholas Campanella

I to mind? this what's on the great. appreciate the plan you've that in one-part maybe financing, the year? you billion, And are you But X-year the the that. right Would for point? do your a That's know Okay. $X.X And I done at mechanisms priced question. derisk

Brian Van Abel

billion thanks see, we Yes, of can Nick, issuance about ATM did $X QX. as you the in question. for Yes.

very fulfill us. for the certainly, that for year. quarter That's needs equity year. And strong So a plan our the does our for

of think it anything the we be through the of end actually, that we we like end can't to the through mean something, don't Now but do year. year, doesn't opportunistic we the we -- if need

mean question, of one. part efficient we've look to move talked won't at and this, about we products we as always forward. is get your an it an issuances view our and doesn't on all look, ATM, the Second table options But it's equity we other mechanism

Operator

Wolfe question Our comes from next Research. from Steve Fleishman

Steven Fleishman

Good.

the increase CapEx up about $X up went to $X.X just the I we billion. equity So of reconcile think equity wanted with CapEx because went and billion

of lot So it's that kind a less XX%, than XX%.

we that is getting So $X billion? think cash with that because you this prefunded how just some that? because should just Is Or better? flows about

Brian Van Abel

for gives mix. thanks couple that question. bit I that that as is a if we the the the but the X-year, benefit dry little in very how a the a us Steve, timing talked and we metrics, rate about also kind XX% that about we you investors helps credit bit One, our XX%, stable. things, it's together when you're of we of of longer of a at we put But credit guide are really do cash slide term. flow of right. to growth more lower and Part Yes. the around it, design get dividend powder metrics the and capital Generally, little look

but we little as and but need to going much as we -- mix, flexible equity that we So it forward able we our generally, not XX-XX still have be expect X-year. here roll a as bit forward, were

Steven Fleishman

happen. question, end it of just Great. helpful. near knock haven't wildfire Okay. totally we hopefully, That's ends, and And anything we're if on season, getting, ever then separate wood, the seen

of else talk are And in how deferral 'XX? that guidance? talk including could they're have and taken related, to in yes, what to And Or you insurance you helpful. be Or assuming -- you amount? the it then the would actions you that mitigation, feel clarify maybe on maybe just are expense you working, do? could just your just that So you've you to might just you Bob, wildfire

Robert Frenzel

Yes, before, accomplishments great and communities it. and I've activities our of since questions. frame. I'm to executed our protect Appreciate that very the proud said customers the time has company March the the

really we've a of built think muscle protection our wildfire I lot mechanisms. around

with enhanced PSPS our our line the helps power and in is abilities safety First in communities that our protect both and so first foremost of and minds what foremost and process. safety operating execute capabilities in and is system customers settings our to

terms take the a think and to from or to time, they've alert of coming lot there. or harden muscle built situational what muted sooner, ability know learned we confidently more California in in to customers and system, awareness, the we whether that we and the peers EPSS we their PSPS that mitigated segment are of in and that ability the of impacts have the ability lot Over and I in faster lessons done see system to segment so our capability system the their of a process.

other in in that learnings and system installed We've the huge they've look AI here been working with that. of of side, the We're plant plan decade working at data had from benefits -- on this frame. dealing again, time moving Texas. intelligence cameras. a And -- to kind we've We've on and Colorado weather being the then on we're fast starting in regulatory a over to a incorporate wildfire starting what of in been resiliency ground stations, on with have our side other obviously, people follower plowed forward And risk. this to feeds with

accelerate more there, will that inspections, vegetation help to those of pole aggressive out replacements we management. of see accelerated All us anything

be go over have going customers So resilient the and we've as system how safe much very we long system And we that sure think the a we term. into our mitigate on making actions our term a short the in done impacts the think to on I to lot future. the are forward focused I and protect

Brian Van Abel

part this We us Steve, triple that question of alluded premiums deferrals. are higher some. did the I'll month, around our of premiums QX. capacity in is second on significantly insurance we completed shrink We kind just handle insurance saw to renewable as

of in the utilities do the get schedule premium. in year, discussions -- liability So front Commission sudden have Colorado the have in the by around end we peer have Texas a a around issue of they with decision deferral regulatory and to we where industry our we're and increasing docket staff expedited excess

part our 'XX. regulatory our mitigation constructive included So cost is plan recovery do -- we deferrals and regulatory recovery in constructive outcomes for around that of getting our outcomes wildfire guidance, an XXXX of constructive our and include is overall

Operator

Our Carly from Goldman from next Davenport question comes Sachs.

Carly Davenport

of that the function Maybe Or the forward to a Thanks anything of increase think other just on updates. basis $X base Is should the we base kind else how in guess for points rolling new I capital the plan, should be that increase CAGR. effects keeping we capital rate about just the there? in years? mind XX in billion the plan relative

Brian Van Abel

forward the just bigger and No, Carly, It's of X to a having forward we you're exactly right. years. function a base next roll rolling as

that's nothing all a it is of else on. going So function

Carly Davenport

Got it.

coming follow back-end on data the Okay. load timing Great. And to of that just X% to in. then of slides you mentioned up, the being sort maybe forecast, new center the loaded in growth load due

So sort is of when expect granularity in inflection and more of that there? there magnitude provide you the significant to other you sense load in terms can any see of any

Brian Van Abel

think X% we there combination, see the for like the as of X% in have really that we in effects of the what to which the we're expect it in and view by, we if guidance, to up have you driving really as data beneficial out said, I BE peaking part the growth region other the But Permian driven SPS a in kind and centers. gas electrification a go guidance that growth. X% of and other see kind Yes, to around EVs XXXX sales Colorado is and of also starting in sales that from great I oil X% it the that's to years Basin, to that of diversity. 'XX of Half at coming growth and helps significant is our is our and look of XXXX after Carla,

end think also this of having the I is but helpful more kind kind in overall back middle growth diversity we in to see plan. So weighted, of

Operator

next is Jeremy Our JPMorgan. with question from Tonet

Jeremy Tonet

all Happy on the you you provided Halloween. for that details Thank the call today.

thought come that to but recently, you of back that array talked to Historically, all noted of with to X% X% the EPS want conservative more here. Just to process these there's stuck about. you've opportunities CAGR high-level plus the new kind

wanted so it your guess, point. get, it on at end still I the X% this high you're to X% thought process just And to moving sounds like And to at CAGR there.

just that kind I So little bit more a to walk possible. of if through wanted

Brian Van Abel

it's Jeremy, I think about safety it our and wires of that in in X ways is base right? one, focused if is business, you the of plan, kind investing resiliency business, just capital We're -- look plan at then base wires majority growth. our in projects that on and all our that we talked additional our the X% and But coal base as on percent steel plants, deliver executing about, Bob X-plus on underground to retiring rate the X.X% to about related need drives growth. electric

those there's over -- plans about resource When flight. to opportunity. call megawatts XX,XXX that through tremendous view our up, we talked Bob a our customers to talked We've add we generation need XXXX. serve of XX,XXX in between all add system to the So our you as nearly and

a that think through the demonstrated can So priced. opportunity. projects very are top-tier a procurement bring recently, internal the processes regulated have that we that is development competitive be team can competitively extremely other part process these in And we've generation huge RFP I that

only an build that's here longer of above now, those sitting potentially And to say, X and the billion expect executing going upper I it. why we're at we projects. next half a very pipeline $XX confident at the term least but years, and of of range And about would so not

Jeremy Tonet

there. That's helpful it. very Got

it early comment a potentially dive might ask there, I more. but with wanted So going to above I bit to too last thought in that be it, just little

more some you I be plan? feed what guess, buckets think CapEx the kind move over into next incremental take that I you Can that into of the opportunity. the would and weigh could XX what to out talked of milestones it about of X months

Brian Van Abel

Yes.

hit need That's of through the roughly let's ITP the MISO was approval We to first just near need about opportunities. the $X by get of the awarded years. year. got regulatory billion are we reliability-driven by we few So approved this that we'll term. billion another end projects which to that's ones tranche the is $X of But decision go Then more X.X, a be the projects, within the processes. month. a of transmission expect about meaning Board because SPP, to that that us that should

So to those probably get transmission January. in preferred bucket, RFP New of The X,XXX We'll file big investors is probably first kind look SPS the buckets. bids And the get megawatts. when are of roughly XX,XXX in, Mexico. our year QX will next we is another of portfolio

into for at that that will approvals into So some insight going get with least XXXX that.

mentioned, a and on with related call working we're resource megawatts excited RFPs. then RFPs The with file there, through. and to we're plan, which some resource get additional about Minnesota pretty then storage of plan, filed resource CTs includes, in the Colorado. just along which Colorado year, within the that we'll commission plan, it, Bob megawatts our work as that we XXX should a We of QX out overall And we'll XX,XXX through finally, decision plan, resource of upwards in

months So will to continue that us. a for XX see be little to the But you'll dated longer throughout on execution XX opportunities the opportunities. bit next all

Robert Frenzel

pathway, them XXXX team to new has in I in-house, been the steel country. if past Jeremy, line miles I'd the right, transmission And terrific mentioned the starting very to provider the some Southwest. for company company. to development where the add transmission as about is the We've cases, we start here, the replacing lower whether build got a as for we and to the cleaner projects our from plan with Power across working development system and, over for really resources. have a the capabilities. really years. fuel an we all to country. transmission been talking Brian's of execute in we're X.X ITP and a lot billion Colorado cost of strategic our a in our We've see incredible just remiss and we've we've the coal on construction I'm about Obviously, the us XX asset talk for Brian starting plants LRTPX.X, on We're periods start with transmission to get the it's the whether that on and built process last been the asset generation helping be this company transition energy accelerate to of are here X excited. it's years didn't removing comments, the that company. with leading proactively team

Operator

from Our Smith from is next Julian Jefferies. question Dumoulin

Julien Dumoulin-Smith

implicit Keep super in up follow going. X%. Look, backdrop to with growth an impressed does on say here. he is I the here. on But timing And X% the accelerating obviously to read that I'm of your as anything sales again, wildfire confidence you what anything wanted developments about this? here front coincident I obviously, outcomes I'm in curious unknowable, mean, recent can. if litany well an the just a there on in here, in somewhat into but of if mind? Is you there's see that

Robert Frenzel

it's Jerry Bob. question. sorry, Thanks suggest Look, for -- Julien, the I'd

customers. if confident Colorado in would we're an But pertains X% think There's our it the of on and proceedings, that's proceedings long customers feel Southwest the didn't current both have is to to ongoing obviously our as both we'd to outcome wildfire wildfire we that And Marshal and Creek, protect needed forward. earlier in long-term has Creek. litigation right position and X% the comments the our harden regarding in term, the doing that. is about -- work unchanged unexpected our investment think earnings an in system number. as from our Smokehouse and we I accommodate protect position, to as as some I in well in we had things I and as in community any matters, I our well there. we're Smokehouse the it suggest the doing -- position act in been outcomes our all, going didn't systems of negligently obviously litigation my as First to what states.

limits getting our with to those forward time resiliency and of we with we starting our insurance us behind our partner communities consistent our are really look proceedings accruals move to and Our within forward and plans. as and working quarter-over-quarter through in

Julien Dumoulin-Smith

for enough, all actually, Fair question earlier Okay. time. for get All and the the just I right. Jeremy And back Steve's going Bob. record, to

obviously mean of seems this what Just terms some about like you know time achieving a EPSS PSPS. on said, being are quickly right, kind the you from kind can here? these we -- mentioned mean mean [indiscernible], of at? how you talked I well meaningful of I and some what California. I readily given terms looking in implemented mean, fast fairly of solutions. system derisking are of frame it I be we implemented,

Robert Frenzel

-- in PSPS the mean I I look, and do the the quickly, today. -- think a to that So capability have we

the up on we the and capability the to set breakers assessment do do how We our system on single across system, controls. set all decisions we today position have think every EPSS as -- we make we up how states day, conditions and a how X we risk and across wildfire

line I line. more instead can level, think peers able segment the in of we mild much come manageable, XX-mile goal distribution is that our to do which said, difference granularity so long the more an targeted is and might of be customers. chunk feeder can one maybe the and the of in our entire into that. where chunks with be where our with at more of which protections we one be to between some future a that XX-mile may stretch protective distribution California sit we protection probably

So the is scalpel in systems. need -- -- great sledgehammer got I say, to with a a time. would the today. that than we future, over little And need great need. we we protection of bulk think a and lot We have from a that the like. takes of investments I It's capabilities mechanism, we've analysis bit we're sort true protection we'd blunter as just working a But final get I have we think

Operator

Our from is ISI. Durgesh next question with Chopra Evercore

Durgesh Chopra

or for the over that in on color ratable you Maybe Ben, loaded? the how about back-end is -- any same annually timing the quarter, year good we this amount maybe think the of year, to strong $X.X plan? like of that over Just equity basically billion see the way Is out mentioned. a should the just Just there?

Brian Van Abel

the heard to look the necessarily comment as is few at equity, way CapEx larger our to -- a I good it shape about annual years. we Yes, or mean in guidance years, of our the you but it I assume on our don't of you've think on kind us give annual CapEx shape timing before, that's that Yes. the the think over first way of here's is next follows if X

think it. I'd that's So how about

Durgesh Chopra

helpful. That's

to portion in XXXX? are is for the you transferability. that and Maybe versus what out something you, help annual there And doing the transferability, just plan the how your is target near dear of CFO

Brian Van Abel

Yes, in credit in give of the demand. working customer for it all then up terms and XXXX, sales really, of of what to And seeing tax on in out, the line. it's we've right, pick XXXX executed significant revenue kind offset we our used the and on

discussions cash our So of out, we we've flow have large -- in opportunity. about to companies this. working terms the Fortune this, we in I from and well. Also XXX that have helpful XX many as buyers we leaders It's in of the a had in know backyard with this here extremely lost perspective think

And longer-term also the so looking at only we pricing we're but and 'XX, deals getting expected. not

it's there, going we'll of markets tool So be to annually a and $XXX-plus great and have. million I the we think, overall, expect forward monetizing credits been

Durgesh Chopra

quickly? year? this How much do remind do Can just you you us

Brian Van Abel

to million million. $XXX Roughly $XXX

Operator

is next Ross from from question Our Bank Fowler America. of

Unknown Analyst

XX little bit. saw on the September So We just a margin the winding judge's things. the XX trial. fire back order a of on to Maybe couple

from that, obviously, multiplier bucketed from can talking different tell. of of it So X sort and what we're in we now pieces I a level

settlement any from calendar given is So think here that out? that? of how or the reduction that, is order we do there claims related to about Or

Robert Frenzel

it's Bob. Ross, Okay.

Marshall, know ignition is, think first I with, think don't the acted we negligently. we called structure of judge's the believe we ago. trial negligently orders of Let the the and there, and don't ignition we tribes the your the occurred We the that started second architected month what in start and on obviously, notwithstanding, persists in all, our we question let's about me the try in first of XX was the address that we acted the property, report a shares system was operation litigation fire dispute

first a as if And so or fire. to of number we're each necessary, the have of and determine trial, the We'll issue a equipment determine ignition individual not damages is have the -- is to blanket a challenges. their did way own claim to claimant blanket start overall they've the the a constructed then any second to trial going process and of part prove second use up liability and to Xcel going damages, will applied Energy's sort it

that from we judge's perspective. Yes, So the think structure the trial constructive was

happened So I your in I'm what not that's if answered September. or not. question certain

Brian Van Abel

multiplier Yes. in award a and part And you're terms actual think I each would jury other the effect have -- can a the I damages about is across the plaintiffs. hear have multiplier just think little that of asking to all bit

in that regard. So helpful. I'll come

Unknown Analyst

then here for And of sort for steps, process? what thing as watch the the to in next next look we calendar should

Robert Frenzel

diligence, heavy of for diligence in for we're couple next September right So a the trial weeks. set now,

while got trial the before forward. milestones a going So are we've there I in think any real

Unknown Analyst

then slides Slide in Okay. on today And go you XX. the through

jurisdictions You're the well below national average most on bills. in

Have really customer the builds out sort would forecast? be in good course over there's of of CapEx laid lot here contextualize, rate what maybe increase that of the the a and base you So increase growth.

Robert Frenzel

host impacts as Yes. obviously. think a advantaged we and really And are in that bill We through for you forward reasons, is we I actually Look, sit as think the in mentioned, incredibly that sit well. renewables. as good position, a benign we it's move for a region of starting time, relatively

this of so we've a in expenses of to the keep customers. helps and decade mechanisms. below maybe clean of us over generation managing other in cost there's low prudent opportunity really keep been fractions bills and average. is the see But that operating our other a that very And bills invest our the parts country helps even couple Obviously, what for well

which programs, demand manage think and helps usage the customers to I size efficiency very and and obviously, productive energy energy management our we access their help have the way. of proactive the along lower-cost energy

the So programs keep think help these build down. that we are

we've linear in yielded about that solicitation that plan the X.X% proceeding, just bill investment in incorporates of and done duration. think filed filed I expected Colorado those over but ups relatively and long that period through. the to be probably our that Colorado And best way, it is thing number we it's a all management. types from It transition we a increase Colorado XX-year think always even increases the that's over customer of ways will in and we're downs won't be we along Again, very mitigate cost for manageable. aggressive looking

Our delivered to XX real remarks, line. fuel costs to avoided expense line program operating in has mentioned our and my LNG Way I benefits our and

Brian Van Abel

add, just of. proud really Yes. something we're think that's I I'd

we're You the really is wallet but of share proud mentioned slide that XX, around of. residential something Slide all before

Our bills Minnesota of country wallet. X in Colorado's look share you the fifth biggest country of on inflation-adjusted lowest if in at wallet, a second the are lower loss then than is our they And share jurisdictions, ago. decade were of in

investment place significant really think from the too, good starting about we're So we a as cycle.

question So that. I appreciate the on

Operator

Sophie from comes Our KeyBanc. Karp next question from

Sophie Karp

Congrats here. great update of couple on around a questions A for me.

couple settlements Any approval? front One reason Minnesota kind maybe case. settlement the gas is controversial a of in of that some the You resource in caused Commission. some X plan in think items delay guys have to those of the and rate

Brian Van Abel

this so think, of case, I Sophie, unanimous straightforward. in recommended settlement, The our very ALJ is sort settlement gas let take month. X me of approval first

QX. the expect commission we in decision so And

approved. certainly So it be that optimistic will

plan, major resource with interveners in settlement resource the I think, again, that the those On document. a stakeholders

into settlement I X also forward, not only our but of outstanding. with think it is resolves an stakeholders see, plan our of great which really manner, that going RFPs a expeditious really kind our demonstrates the resource to addresses work

stakeholders So excited overall, in resource and partnership a pretty be and with the QX would I about the work Commission, hopeful our the think which event, Minnesota too. we're plan

Sophie Karp

I'm up where come have to for right of there states which any and wildfires, other may in like the states or just And that session? West Is industry kind talking solutions points of while I into on you [indiscernible] maybe Great. now? that you that. a any kind curious data about then legislative operate take if insight have Great. Great. been know on

Robert Frenzel

Sophie, Colorado will decision we proceeding think sorry, August of obviously, next in August year. -- up, expect our in regulatory it's and take Bob. of From We we perspective, wildfire year. a a this

those working through Our resiliency plan has been dockets commission in very Texas. The efficiently.

expect we as outcomes So next year well. in Texas

move burn that all I'm do states. a states I'd making the probably a On lot the candle, think as longer suggest think outcomes lot that's in the of topical at communities we all those XXXX, I how it's of not and we a certainly expect I Western -- in states, for front, the but legislative protect look in around sure there's legislation through certain time. we dialogue customers we

Brian Van Abel

on Texas working I'll address. also terms legislatures issues of our that lot just partner add, with EEI's stakeholders in and primary Yes. also of stakeholders looking our to of talking with focus Colorado, front topics a they're to and pure on education one and we're on utilities our in in It's Texas. that

continue topical So work for see if there's with we'll industry, to our longer-term solutions. to and states our very

Operator

comes with from Travis question next Moringstar. Miller Our

Travis Miller

least for update on Good I any where hydrogen had this morning. in hydrogen pluses the That show or you know plan, wondering is the longer the new but stand? green show no you a minuses up several hot big quarters just I it generally up at ago. you topic, initiative hubs, was green initiatives? all investment hydrogen, updates Does in any if on

Robert Frenzel

for Thanks the Yes. question.

approved molecule. of it's get one COX been country progress that sort green something fuel, hydrogen a a combined to burner the probably company is more in hydrogen for made most energy and Europe for hydrogen. a on the big with as Germany. make the And This the saying methane. and cleaner the big green DOE, probably seen. a clean for whether been it's like as needs I around a still well. seeing been complex pipeline on priority It's has right. pure saw I've And bit You're record in the country We're form or used that we've like flexible its in back a

going grant continues, a DOE down the its like that It molecule the work were a I slowed with to in has initiatives. for We a hydrogen albeit and we're slowly. think recipient in that processes. that need fairly industrial of country

for And we're coming final regulations that still of hydrogen. be would XXQ treasury production really tax the out credit waiting on regulations on on

going on And need a It's wind combustion a in over batteries short to back firming still So you in And promising the for term. look cleaner forward. a longer maybe I to little terms technology. of country to a and is solar as across I growth the up and happen. us. bit likely burner think increase -- term, at gas the the happen fuel electricity, we're think it's the turbine that fired seeing with is in path

acceleration see because like we're might to green you seeing in the think curve and be some move we acceleration the nuclear going cost in need forward is time. as in higher so advancements I the R&D, hydrogen, in R&D And

Travis Miller

included is nothing in our hydrogen? capital for And forecast

Robert Frenzel

Nothing.

Travis Miller

is you that Nothing . -- Did hear right? I

Robert Frenzel

Correct.

Travis Miller

Okay.

kind expect you any of then to And resource of it's Okay. my hydrogen. but question, then plans, kind green too early the answered

Robert Frenzel

Yes correct. that's

Operator

question next from Associates. is from Patterson Our Glenrock Paul

Paul Patterson

the, to back I Just Ross's question I trajectory, guess, guess. rate on the

-- just guys You next thing. long-term I guys Is guys that in a And of few X.X% offset what over a would you terms a that have I'm That would and the I you sales years? wondering difference Colorado. assume think in you. mentioned sounds growth few have expectation obviously, in neighborhood? next like area just is thinking so But the next that years or your about years, of should be territories that expecting what around rough just that just be over the we should we vary. roughly service to in going is of this X it's kind of lot the kind in know

Brian Van Abel

Colorado our period XX-, plan, it that filed longer-term rate over we Brian. encompasses growth a that Bob all expected time is -- XX-year X-, was numbers where this a the XX- and rate XX-year over X.X% Paul, period. mentioning mentioning of Bob was our trajectory a in was What investments was resource you had

inflation. that that growth with loads And to investment. of in right time growth retail of significant roughly And that, line and the X% headroom bill the helped provide a customer large is base is rate for was X%, offset headroom all so sales their frame customers. can those really help of point for which So included

a good So included piece resource Colorado we our of that plan. analysis in

I years, think X to going look, by it's jurisdiction. over the vary next

the industries. X% longer-term across a kind years, growth to opportunity large in from think we're the of to X% significant Colorado impact X we very as the resource customer bill which next the created Over to showed headroom manageable plan is seeing -- bill different have we're we have roughly seeing

Paul Patterson

of Okay. And and just sort the potential there Slide the centers. data on then X on

These means. mean, and the that between the see two. Just you remind -- I we sort in delta terms I requests could just just of might guess what customer of a there's that me cadence huge

could Just -- bit elaborate if I'm you that. sorry, little could more on just if what of you sort that, a

Brian Van Abel

what then next land lowered acquired think maybe Sure. through economic or in in and the to little projects, of probability our it's -- we signed talked That's a down us close agreements they've about as from our that is our actually is from purchased we've -- whether we the XX publicly bit we're how Bob months. we announced signing of that get pipeline -- high to taken development But then -- requests team.

if X.X% how also first we it. that there's of growth include to kind significant we pipeline a high bring What that's probability that demonstrates on, So load a behind to this come that a down that is on doesn't slide.

also think We extending to beyond long the XXXX. sales center data do these only continue and conservative, not is So where help growth we we to serve a expect focused customers growth on we're you this continuing X-year see our to opportunity that in that's in we number, give build but just term.

Robert Frenzel

sort of the very specific company the answer. That's

an is in a load. double and we, we generation our for on a obviously what on And come country. meaningful to highlights that be to load need, serve the come. little these more it loads which face a and seeing, lot demand And need develop a transmission the across generation big though, both accelerating to but think different we as the you're think as as counting a requests I inbound is industry, of know ability there's the it's large It's people's it, transmission of concentrated. we, service, is looking country,

provide it into very that's If it as of load it speed comes across needed. specific lot the you manageable of with get lot can and a you entire a seems pockets, country, need

stakeholders about and think country, local we make need country we can the with of a and coming we regulators, so as as And communities, meet both pace together solve it. that a legislators and scale see opportunity sure a to investments to as company partnerships this a this for and our

And factor the as tide have we all lifts rising system, unit down you per our cost mentioned, that load everybody. higher brings a If on for ships.

all loads, high an other with excited very to into the like the transmission these with generation increases opportunity some our has to intensive factor we it. a high so as It's excited new people load it. people EVs and the have charging about an XX% energy night think both with entire and that the and next us And customers the table, to about if really today, I'm that we're at I of in going cost footprint am. step generation. quickly across lot partnership a to in country for for I'm but load at of opportunity country transition mitigate factor I XX% is with

Operator

very you Thank much.

would to closing Abel, Brian any have questions we Van the like remarks. As it back in CFO, turn further I no queue, for over to

Brian Van Abel

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

Operator

Thank you concludes very conference. much. That today's

disconnect. may You now

Xcel Energy (XEL) 31 Oct 242024 Q3 Earnings call transcript