American Electric Power (AEP) 30 Apr 242024 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. My name is Abby, and I will be your conference operator today. At this time I like to welcome everyone to the American Electric Power First Quarter 2024 Earnings Conference Call. [Operator Instructions]

Thank you. like President the of now Darcy over would Vice Reese, Investor I to conference turn to And Relations.

You may begin.

Thank welcome to Call morning, join us. everyone, Quarter today taking Good Power. Earnings you Electric for you, XXXX American to appreciate time the Abbie. First We and

Our presentation related slides financial on are available earnings website at release, our aep.com. and information

our to Today, SEC Please that may factors There are we will many discussion statements. a be for these making future filings forward-looking differ results of statements refer from to during the call. factors. materially cause these

for Joining me Chuck remarks this President and President our Fowke, President Executive Utilities. our our Interim morning and Officer; opening Executive Simmons, are Financial Officer; Vice Peggy Ben Chief Chief Vice and Executive Zebula, of

remarks. their following questions your take will We

over I the Ben. now turn call to will

morning, more Electric followed regulatory financial a Quarter welcome Power's will Shortly, provide good update, Call. and American will First detailed Peggy who to Earnings XXXX give review. by Chuck, Well,

earnings on can our of today, first sum found operating financial first AEP's Beginning we The share, of And of earnings over business a ago. operating announced results, year per quarter were $X.XX reaffirming X% $X.XX AEP's growth year full to X also $X.XX. rate quarter earnings highlights today's the $X.XX XXXX with XXXX presentation. X%. long-term be We Slide of increase of guidance to XXXX X

a to range. during debt achieved FFO this is XX.X% we stated note, within which to our pleased I'm quarter,

the I've working financial team customer together that achievability. and the AEP's reviewed fully to assure you strategy value. and confidence have on total targets, and as Let and well investor AEP's experience in I is me plan's remain track engaged, energized direction this enhance

right days. of of it X leaders, it's the I've customers, and, believe different had I course, to CEO, investors with team elected opportunity XX busy at many been regulators, stakeholders, has AEP. and to here interim since meet officials, and into months, the productive including community a hard the It's just stepped been role

useful initiatives meetings helping All of discuss shape very have the been these in shortly. I will

want you we're for a certain will the permanent that lead I AEP. the am business, and the other right looking into that talent to dive on I brief update we on at based well pool find a I give process underway, CEO. person is The to Before search

As when to I X XX first the we the will at of probably mentioned, February, between talked months. search take end

the informed. We necessary you to candidate, the we're will time find best and committed to take keeping

of from need capital staggering end amount commercial addition across to of between in load from to So to of service the hundreds the many, request growth, gigawatts the system, and investment resiliency of is the spend. to the XX Specific XX inquiries. the related gigawatts decade, see loan incremental ranges more truly in I data growth spend to increase and including centers incremental AEP future, many by low

The and examples great growth parties And work data territory. of commercial Northern I&M's in all real fair key course, is to capturing self-funded. tariffs are and and is growth contracts customers the of with are to to that sure to secure this commitments commercial, that industrial make from evidenced Web centers last Google announcements can by new service week's and met. of large Amazon build be can load Services couple to Indiana commitments the A be both

we high-voltage a system AEP, in States transmission backbone At the with have United the in largest Midwest. the

substations by connections. driven this and possibilities specifically center investment transmission more in customer data growth, expect We

the at like XX.X% note, and to over which load to I'd first of grew a last AEP's the As side year. commercial of quarter quarter first attention in XXXX call

in course, related quarter XXXX, and grid, management vegetation legislation In of than to modernizing passed to of this related addition, our resiliency investment will the later we Texas, file and, in including system hardening expanding third no year, plan wildfire the mitigation.

as critical fund we thing. is I strong increased a capital positive needed believe smart equity fund look to a spend. sheet potential incremental is to Clearly, And growth capital balance

open to portfolio staying to On at at efforts we through a achieve on constructive said, our focused That while regulatory equity same optimization, price alternatives are the looking time, meets opportunities a segment. execution, note, outcomes. Resources similar now update both the AEP brief are and Energy which the of our I'd Generation in AEP on of On-site like and to provide Retail Distributed sales businesses, included Marketing where

that working final to expect by the earnings conclude We call. of through second process process and are quarter our phases

to last combustion or on rules on gas Now EPA let's federal CCR, greenhouse residuals standards, published or Limitation ELG. week's coal move Effluent newly Guidelines

legal with reviewing AEP's is challenges, compliance expensive pursue rules, the while These require provide new and unproven some cases, commitment energy. and affordable the will of extremely states others, our who likely use reliable with our regulations technologies customers unreasonable to Although are working schedules. still including we in team aligned are established with

the when needs new add grid We these have but nation to are at to closures, generation reliability being potential accelerate plant only our not also built. and to time, a prematurely rules dispatchable from and growth, discourage dispatchable generation support

taking this Now turning to effect program voluntary a Labor Management. We X. month, July severance announced earlier

our this inflationary mitigate from us million footprint rates. us in cost and redeploy will customers, cost our will initiative regulated and impacts and labor expect managing pressures assist to to our better allow interest save We of finally, $XXX resources locally serve approximately in

that our is we of will all way a equitable employees. fair in valued to and course, it Of do so

more targets. as stakeholder in drive confidence you year our the and mentioned, So further financial our I'm as for it's productive move about to our team. months, I positive investors. excited been and strategy in forward create to look have updates solidifying the in ahead and couple value busy We opportunities growth providing we confidence of even a forward

am of of to for updates, that regulatory and aware additional turn Peggy we now I Before challenges. some AEP's successes our

compacts the continue and past for Peggy? plans as We ready strengthen regulatory we through review work our to are to future. the

good Thanks, and Ben, everyone. morning,

let's several update regulatory on Now go an AEP's initiatives. ongoing to of

at local resources in investing We level, people particularly legislative and more regulatory the are currently in focused areas. on

now appendix beginning company changing leaders this on are than mind utility in we be enhance our The is XX. critical and the in related that can engagement spotlight our activity us. environment. it's Slide of and a more ever, costs regulatory found dynamic shines business of for details state our More engaged industry with on cases builds regulators. Higher and affordability frequency are AEP's the top of materials for operating customer running and

investors. We for which states are are economic our from and focused the load in includes brings our work outcomes creates across achieve This communities on our service each larger headroom of perspectives. operate that advancing interest territory, we our and good development jobs to customers,

I'm We're to our quarter points and is authorized X.X%. reduce continue approximately doing the report this conditions. settlement AEP pleased Staying Ohio's ROE commission ROE basis approved obtained XX Plan summer month. slightly excuse -- Even this work was X recent improved with our Security We versus developments, Electric earlier weather September mild the the by me, last this to measure considering gap. to by positive from actual last depressed

of May This June a through XXXX ESP covers term XXXX. X-year

and decision this filed shared the cases year. settlement, December, the in In new we in latter reached by was in previously, half base As Michigan and which June Indiana expect filed we XXXX. of commission Indiana, we of we

a relief February. January Last APCo and in PSO case rate the been from statute in we Michigan, and base has in so we in AEP that busy July. Virginia case required filing legislative XXXX an Texas schedule The procedural in changes far, month, Oklahoma In team completed expect case by filed in biennial an the for attained review, XXXX.

Earlier Louisiana in jurisdictions annual plan. formula this SWEPCO, rate Arkansas month, and the we filed

the to resource additions. regulated on Now

state $X.X commissions billion PSO our of advance to plan have regulated X-year, SWEPCO. APCo, continue at and I&M, total a We approved renewable billion and by capital $X.X

As we're making great you can progress. see,

are and of adequacy we also our well customers. the needs as input, meet considering evolving local reserve We market the margins as renewables resource as

transformation are are supported fleet advancing with by plan. our aligned targets, resource We and toward our integrated which

additional for and Power, diverse We other proposals SWEPCO to a operating APCo. with have including of pending resources I&M, generation for Kentucky from requests PSO come at more companies, set

broader These on investments focused an regulated XXX% integral of is program, generation which our capital assets. are part

in constructively strengthening as forecasted to our know more look our to regulated forward XXXX and we ahead, engage with to We of a relationships. done achieve ROE is to Looking be advance regulatory X.X%. there we regulators continuing strategies work

pass and details to our I'll Chuck over that, financials. to performance supporting With drivers the walk through it

and and finish load I'll first review the Today, build for financial service metrics everyone. our commentary our morning, quarter, Peggy, results on territory our about with financial good on management Thanks, Ben's activities. portfolio comments and

earnings quarter, were on is Slide to the go share a X, GAAP the operating compared per for last per to to GAAP to $X.XX Let's detailed There share shows first which Page presentation $X.XX reconciliation quarter. of the comparison of earnings of GAAP XX year. earnings today. the operating for

onetime received positive the the related a of for taxes, stand-alone purposes. of want GAAP I item excess taxes to earnings million, operating walk the liability our from primarily highlight remeasurement One the in significant to ratemaking is to treatment due $XXX for to of guidance recently regulatory deferred IRS, for adjustment

of performance our per $XXX earnings $X.XX or million Operating Let's in in increase first compared per share walk $XX quarterly million through million, for $X.XX totaled $X.XX by were quarter-over-quarter results per segment share X. XXXX. quarter earnings on operating the to Slide a share. $XXX This or

being per taxes. These the changes rate earnings weather included Utilities the case and other year-over-year were items and partially $X.XX. PSO across for income with in higher Operating taxes. favorable share, significant Vertically higher base multiple $X.XX by up depreciation proceeding jurisdictions Virginia were Integrated drivers interest, and changes Positive most offset the

interest. rate share, in Distribution earned Positive drivers Texas, included segment to The the other recovery last and changes, These Transmission higher partially in cost load per factor segment increased up the Distribution Ohio, this primarily year-over-year from $X.XX and weather. items year. distribution and depreciation, revenue, Utilities compared and changes investment $X.XX normalized by favorable taxes offset rider were higher in retail transmission in

was the is weather, quarter segments. the mild. note which T&D and very although Please Compared normal Weather about quarter-over-quarter, to weather estimate $X.XX share. variance of roughly for variance was Vertically $XX the in is XXXX a our positive that Integrated unfavorable, both per million first

growth contributed largely generation to taxes. per share, These margins and to Marketing to included wholesale of the Positive of prior produced expense. by Generation up income $X.XX offset lower drivers The XXXX. the partially generation with quarter $X.XX AEP year, by year, and Holdco were favorable lower the Transmission in favorable third items due $X.XX last up universal along income per sale year. last driven renewable compared $X.XX share, higher interest primarily distributed assets scale retail compared segment from margins, investment and the and and results taxes higher

Corporate compared driven year, Other by was higher primarily and to prior interest the costs. down Finally, $X.XX

footprint. our due as well data the expectations. as economic Slide rapidly Load accelerate to finding to development, demand a home our centers Overall ongoing within the This is of to continues increasing Moving many Retail ahead success in from X.

growth Weather grew several trend Load to normalized quarter, where continue remarkable boost our of commercial projects Ohio and center increase additional the that the have over Texas. expect is data technologies some next load and demand XX.X% with in largest by AI anticipated, we more the years first our which the X.X% need existing Driving a is and of first in data Retail load, ramped the classified. in especially as is highlighted a customers new the than up and processing. for quickly other storage This our

evolving refine data those are manufacturing despite load Outside industrial our amongst in Ben of full line the in economic this load in we next, comments. manufacturing outlined quarter, of had X.X% the helping nationally. move by rapidly remainder reflect grew roughly increased growth efforts as our higher centers, development in year. forecast activity to expectations expect to maintain also our first in customers. was As tire projections year the for primarily for driven his and that plastics, with Industrial softness the activity paper us and This situation,

for keeping industrial on customers, rates the close given are higher a eye We environment. interest our longer

of number loads for steady in years, that new online in any demand challenges existing large confidence to with our will anticipated the provides come the next the However, of customers. remain economic X us face

our across on continue the significant growth however, we load, large takeaway that to main bring The in footprint. online is customers

the additional for projections, guidance this later lookout I year. earlier, mentioned higher As provide as we beyond load

last see Let's the from Slide year-end ended to the alignment calls. XX, with I for discuss discussed to move in metric, increase the months capitalization to point top the is XXX and which liquidity a position. you debt can March stands what earnings the and basis left at on XX XX FFO company's In table, on XX.X% X

is remains year-end to supported that billion and debt by liquidity. and of strong Our $X our from quarter slightly the upsized lower $X.X to credit our and slide, at billion cap you recently summary. in by end. Which was support XX.X% at decreased liquidity facilities left In $X can at see this renewed were part billion

funding the the at relatively remained pension front, the qualified our of on flat, Lastly, end first ended year has quarter status and the since XXX.X%.

Slide Let's for message. up of XX go wrap today's to a

provided the experienced the The quarter first rest we this year weather $X.XX foundation despite the a per of conditions in earnings first year increase a compared has the last solid to mild quarter winter. for that of with share,

on We opportunity development utilities, improving include objective, embracing remain due to by loads. to serving our offsetting economic the electricity bring to our performance communities achieving cost our and keep which inflation focused large increases affordable financial to the of

OnSite phases proceeds AEP the Mexico process. February, for of As and an sale update, Partners in work million the of solar to final the closed our New on Energy continue we AEP in successfully we and assets cash $XXX through

process We expect earnings quarter our call. results by the to second of announce the

us our interest range long-term of and operating the committed Power. to to $X.XX remain per American growth quarter of to appreciate guidance rate range. Electric X% XX% confidence your earnings investment first to to Our share. reaffirm solidly XX% to in results and We $X.XX give FFO debt We X% the in our

we Operator, so address open questions? you call can your the can

Jeremy And Tonet first Instructions] [Operator from your JPMorgan. comes question with

Just provide figure to there. center the see how the laid data And little wanted the that ability mean maybe there aligning? wondering AEP to X out the matches how you connects. points more on time forecasts against how system's versus want trying that plan? we a out the in line to What you for some in bit of we're wondering, there just and to time lot power just peel of quick come on see those And does market, to that over out a

do right that about, how way burden? guess, just bear I so more rates a think in rate structuring payers don't And you of other the

mean, really our know, I thinking this say, all, work here been all accommodate I transmission we've we're wave questions, like that wired to has making through. investments really of to Jeremy. first good are for you those done were a and And I And think, Yes, data of amount seeing team tremendous AEP years, us, at centers. as going to the significant from this growth growth. that's first allow over of

of it. on, capital spend And next years, -- in spend see you'll our the the that capital coming so and X -- you see will incremental some support load to

As we to the further all. perhaps be it I in built going decade, a get to get think to additional of it's an even function out and transmission generation, they'll meet need

is team really this But hard. working

seeing, economic We we've to of in data have ramp very you're a team, supportive this also at ourselves business position. great groundwork up in load same community done the a development put Jeremy, time. center And lot States and

trend, natural too. So that's a

and growth all fair fact, news in one Now to on. is the our I've rates customers this that across be your believe focused been all of question, us keep will load affordable jurisdictions. the latter good our And keenly help that be to on, we is coming will will

new building the to the require expectations deliver commitments, developing are cetera. require that obviously, et credit load on data longer-term for tariffs quality, that centers that we're We tariffs tariffs

growth that And keep do and this when then that's customers. myself will really what do the that. was rates you that because I'm just team all that the about growth important we and load benefits affordable really to And excited math, do

sensitivity about your dive as of Got we about demand it. in if you we lines that That's as center just load sensitivity. along more the sensitivity, a And forecast? provided data think more guidance think the thinking outstripping maybe be to or helpful. little industrial in Should commercial bit

Chuck. ahead, Go

Yes.

more Jeremy, there. industrial So I think sensitivity an like that and customer it, would of

helpful. I last Got just And then it. That's one, could. if the

search. As to it the relates external CEO

to candidate? wondering, with the be pool the Just point? how wondering share going? able that has might you Just characteristics other is anything that this I are changed any regards if a in on guess, to, for building the color process focus at is How there's

that we're on looking from just first described the can and the you call. attributes remain tell I I the unchanged qualities quarter Well, for what

got impressive there's some It all underway We've takes other well And it we really to good that look are out. to time obviously, sort at. now. candidates, things We need candidates.

I that X ago to XX. was a timetable of outlined you the months But for just couple

we'll truncate and said, of that as So but get X -- X And the confident we'll XX. that, as and off do that. it's months right much in very time need person to to that take I'm place, just we

sneak could one in. if actually, I And one it. just last Got

wondering Just corporate the maker levels. things could align at where to more closely local end overall decentralization AEP efforts. And on kind for you stand the P&L to talk strategy, looking of about decision more

that's Just how progressing? wondering

I detailed of to a one has want going in to it's turn the the developing ours. stakeholders. And just plan. Peggy, to do communities. I'm And think a focus -- -- developed put -- But Well, know the thing this things I and that's those resources she's over to local of is our do, it right talking one to of is we

It costs want did anything. those to forward we to of Peggy, up you investments one why money which if those to I don't in voluntary add we is severance, the know critical so our do going reasons communities. the can make some that. resources of free

much I think covered. Ben, you pretty Yes,

can get boots a more perspective, from worked team have some regulatory those -- looking the how and We the having the legislative with and more at on we enhance resources ground. of

the ongoing our out really a statements, industry and in these is lot there there's opening important. in having change I conversations folks As of mentioned having

that through come we're working topic. and on So that to more process

Research. will we question next from our with take And Fleishman Steve Wolfe

X company, are week, that recent are these those? announced you And in there you've wires in to I your Texas, so think related last to got of past generation the in be the Indiana, -- Generation well? you So And a deals supplying need just some generation as these in going is but Ohio announcements, X. Indiana and where

have do Well, that? outstanding. Peggy, to RFPs we take do you want

focused do the have those and our would with Integrated outstanding I&M. Vertically like RFPs have Ben generation we earlier, and We our will are well. us at And are coming to Indiana, But that serve as question, large that on what answer as your like. and also redefining tariffs Yes. mentioned are looking look in we working yes, loads to to we component, on,

of our So part that be will strategy.

Okay. And question. of to clarify just just to -- back initial the kind

and capacity term. take there customers to this built is these grid needed? So the near X it Transmission years? even has is more is is on still capital this up Or after more of near But there term,

within more long needed, will don't get Steve, could lot time a a We be it on team but our footprint, built. has the XXX be done mass capital can working that it of believe No, load take others. and PJM there'll think how of I lines, with those accommodate we work to

but yes, be to will the so manageable spend, more there'll And be point. doable it and

Okay. you're year? you timing are any it And any is in Or now. the range Is that's target do it Is that there was in debt, there expect FFO you're about for now? and to there in -- of in good, to throughout the be anything there that then kind -- on the think you reason?

range. We're in the

us to expect our internally in range. being we that the We range and agencies forecast show with that that be now, in review

and plan that. we the plan, defend that's to So

next our take will Partners. Guggenheim from Shar with question We Pourezza

on Shar. of for road on and to here. that he's the couple questions for He's but regrets Ward you it's today, join a you not have actually able we Jamieson

Does data XXXX, annual anticipated to to into the as through increases the to bill first could pace just growth? The account we it there, reduced that revised on support be infrastructure you is increase, future customer that already needed any Or X% center which great see investment well? take number see. the year per was

level in bit. stuff that drive keep I and mean, and not X. Transmission to Well, drop but going If even not it it's perhaps -- we're the anything, not be investment, it the answer about to that, included to the going incremental should is from -- it's a incremental it's X it talking

customer actually there's over inflationary -- of if investment But factors, need we've that the we work, a I that's things to of other very making that at supply Obviously, rates sure go cetera. would it. moving into time the that lot pressures, other et incremental mentioned, forward this as I'm with X-year confident And is level done affordable. chain a accretive, forecast make why to the you is that frame will, keeping that

how may those an Got presented the it. want And expanding approaching for question, data issues you who on emergency earlier still want the by then to centers, of meter more have behind Terrific. socialize some have example, data there. tariff be or centers, unique Jeremy's are to but mentioned, rate just utility the not get interconnection to If we . major economic the which, you but can want more bit through of as impact. with a a all cost detail classes which

It's But looking self-funded deal. to that's I'm all possible. to that as to big we'll going okay? to and with Peggy turn this a fair the think at. in a needs to second. it be mean analysis deal. over what other get growth got it's exciting close listen, And I of customers tariffs But these we're is an to big some now, I as be

Yes.

tariffs, are on Ben's minimum system. asking form add that, Most of if wanting at demands to the would planning. of So But part are self-generation, loads are large what so comment are as can include we the our to be want there we connected understand what are. of that some is that to our we we I and that, looking they

and balanced that So make paying all share, end fair that customers Ben as everyone appropriately and it's all on so to get mentioned. for has customers their can front of the information and we're is serve we sure fair that trying

especially when the built peak for. -- we're up, basis, energy Peggy's with that and Yes. we show the consistent up is preventing what scenario, low to a point, infrastructure. doesn't does this And I it the is use, mean the how doesn't we on worst what show case built

have control -- be -- by but loads the jeopardize we don't way, that, to large that too, which, these you also -- think are careful, reliability. So I large, very if and good

And so address too. tariffs that, these

things, growth those all for we're for. pushing is And then that's do you good all. what If

That's later IRPs should that EEI the coming very maybe updated the level, at for? watch on high we driving would are could this or other clear. come And forecast particular or proceedings that before load means there assume we then year, EEI a say, growth Which that should that? that be out

the to I that's -- mean will on might I that, the EEI we're but understand EEI the well, and update or planning released third on come the that right unless be I in think come same, now. big get third would quarter's either before call earnings what it do there quarter right but drabs drips

Understood. deck, remaining simplifying the the with Last processes. us committed In on mentioned Got question sale term you just business in a is you. asset on execution to focus immediate of from sales. the the continued

second following announcements, potential additional conclusion Retail sales in process should how the the and businesses? the about the of think Resources any So for the quarter for Distributed we current

ideas. It would on good I paper, opportunistic them. sound and the be to We ideas a at We're but team always while. around on we're basis. on can't know you going open have and been execute that look sometimes to good -- Chuck an

process, can So through we the do imagine. you filter screening as regulatory that

assets. our like And then we

execute and If can about So arises we But opportunity obviously, that preannounced kind the of us and to we're not right. review, be -- has too, on the going it, looking is what at. strategic you're things it. see price then hear you'll to like from

good is keep equity strong, the CapEx But I CapEx, to smart think, -- growth additional plan, CapEx, era think plan. I I enter, so our extent we'll our pretty darn an you important incremental a this for which to and of quo sheet fund in be And meantime, as going we growth. is think, the good all issue status is balance to extended that higher

next question from Carly take And Davenport we with will Sachs. Goldman our

just the balance Maybe back going sheet. to

update us you you see relative As can just the for remainder rates we've move to an financing you year, think plan of about give your needs if there? seen to the And the any your initial year-to-date? expect in that impact with

than been the think by and at equal amounts. that laid a Other plan, in plan securitization, at we out had replaced that EEI, the Verginia West Yes. I Kentucky still the intact. Carly, securitization has is nearly EEI of we

the changes, There's is significant proceeding and that we're still plan So intact. plan. on no been

going to the just centers. back And commercial and data load Great. then

about you As consumption and just that the a be raise upside plant existing economic Could sort little of would to thus later Is just the front more bit helpful. what of development success year. to more that expectation materially you color think far? or the this the on talk it sort on surprised about any customers? from so Just

up the rapidly of Yes. the hooked on Carly, ramp come it customers anticipated. have just mainly that have rates more than we

through And . here. so that's why go the you're we seeing those big bumps as in commercial quarters load,

Nicholas Campanella take question with will Barclays. we from our And next

keep I'll try to X. it to

guess needs. then year in I $XXX you what walk a anticipate would you And about Can you be? financing elaborate $XXX part of of million I this I when here just growth you need to needing that think, equity. just And for talked X-year equity So this million, guess, have your do plan that?

maybe that Just knock us thoughts go a review something of about I know and X, to not do but thinking why like on presents out you into kind additional that. the you're said, later if want sooner some itself? kind of you you strategic can to how than around opportunity don't preannounce give

Chuck. it turn here, my over colleague esteemed I'll to

look, said how that. formulating right? the plan our We're question. a as it's Nick, we going affect I to and to ultimately, mean, changes right, earlier, financing No, good right, is how

right. are You

X in in million the amounts following $XXX We years. followed year, equity this in have $XXX equal by million

to We're tried look, maintain So I think going make our earlier to a balance credit. Right? we're strong defend sheet. going the I BBB debt, point to FFO to on that

that capital forecast, balance think strong right, sheet remain intact. is assume, out put you additional I as So we to going could

just update that pretty figure kind be to clearly. So of wait for out and should that you on CapEx, able

but in normal, is Chuck, also Okay. of weather these And then items you at a tax know of that I VIU that. as well. versus I drag there kind some appreciate have $X.XX

the normalizing think Just item we kind in onetime year? tax Or is is of last 'XX? benefits, that year-over-year as into about from that on nature,

Yes.

normalize half So year. that 'XX will 'XX. again that in Jeremy, things in happened happen throughout and about the won't half is that of the a other onetime

it's increase. true So a

take from Durgesh our Chopra ISI. next with question will Evercore We

On optimization, portfolio financing your new on plan. Ben, commentary,

we search? the Just the think that -- then they think Is clear, to X and that load updates, your updates. that as your somehow the the board CEO about process separate I'm the of parallel about? plan thinking independent should X CapEx CEO new sort tied? be are those I'm and about search? of of plan, Or a just and processes should financing the the we update, cadence are thinking

I mean? understand things the question your CEO in Is new until if holding that are gets place? what back you right, mean, I we

That's right. Yes.

But moving I mean in we all I -- -- not -- we at in there's no. you as -- know, sorts mean, I and mean mean we're No, of forward. not update our those typically no, major give And updates. this obviously, No. company neutral. EEI. I if financing plans all CapEx typically and we time of we're really things the something I you between, is we

We share they here. it's we it. need this growth to accommodate sure and about talk We need is that fair need my all. team make to This to belief is to it,

local on I level, at that. Focused control resources local more of strategy the So level. at putting more we're on, really, the think, the really focused

So voluntary severance. a we just announced -- and

I your type permanent it CEO the not question? there. But from. in we're ultimately that new and think are will decisions coast of no in did benefit a putting I all neutral gets honestly these a just answer kind CEO So regret and until

retirements? You like you second response. more color Just exactly can you you wanted a referring accelerated can again, then little you proposed then And challenging a that I ask are there? did. you bit carbon plant mentioned EPA Is question there. That's to color any very capture what then, that clear And to? ruling. it the Was technology mentioned the share towards coal? Maybe directed share the you

came market that -- which I Steve the reshoring responsible this our built want great of it. trillion, can. where Yes. we're it's if And aggregate going our has build to a in easy I industry, again, we around intelligence, harken do back all of months out industry have to couple are to of Well, -- artificial ago, it's centers, to something. we being cap a to somewhere our you about talked we not transmission manufacturing. And $X.X report plug And going he onshore question. to Fleishman's just That's but get possibly to data that either, for

energy. renewable I'm know, in you as advocate for former And big my role, a

it's think when great, I particularly economic. it's

overnight. like Now need it's to happen to time willing and of see But have don't changes can't going realistically. things And dispatchable that some we we move over regionally. think other to but generation, it. not and to love things SMRs meanwhile, I'd forward -- the And that we need in to -- I they're mean, develop, be we

the at require a CCR into And the there's all yes, by the and it's other only which rules. that spent we're ELG just rules, was would which years carbon rules, different a that, couple it's completely way, not role, money And I ago. the the different of we rules, now lot on compliance -- a of technologies. coming just looking mean capture

to do about reduction. So do to mind. willing use reliability much passionate to And so customers have single and it's never we're has really far affordability, defend do has going with day. our just our in we have be think I'm industry -- but that come it that. sue, I grid And I'm to in our every carbon -- so to grid resiliency to to And we're but more, what you like that and

Scotiabank. question take with will Weisel Andrew we our next from And

here, Two quick please. ones

filings about that to the on soon new assume the elaborate bit Ben, doubt is, Integrated expected Vertically load you XX how no identified the entire include on to that's quickly. is the IRPs. you the talk through think mentioned utilities? load, I incremental growth. current there First, by see to XX the more You about have the might Can which I decade. end portfolio. of the commentary My gigawatts we a XX gigawatts coming across question

Yes.

biggest exact I that you PJM to getting Indiana although the have So give RFPs that . to those Ohio, of the we incremental suspect I can't it, And loads, will of is its would mean, do within Ohio I timing driver footprint, load. at is when share. when definitely look be. incremental I the capture

to we so be the that's as load coming to some -- come to things of well. process IRP going start that's those have it process. we as accommodate using an how We types up we see of this be Indiana, But -- as start we of so have in look November. be later that on to at part We'll will

of constrained we is doesn't know a outside It But got sure we've as tremendous the maybe look have. you at load load data won't. very adequate a centers, make do meantime, the they if serve that's growth of down got in amount right haven't we SPP, to now. just seen center mean They today. And data to region that it we've

Ohio, Ohio Ohio, investment In lot here in and of don't to don't to in again, generation need community There's I Utilities the business incremental be the will Regulated state we know. the talk so have the in game. generation back level at be Transmission.

but require and we've not I be think before. least at we'd that of legislation. we're think potentially I risk that assured be from we wouldn't cost take of legislation, out good that probably to perspective, would -- stranded Doesn't any so seen would play open because it honestly, recovery mean kind our it, --

needing ERCOT, a ERCOT ultimately own to need but of we transmission generation, building we to something plug lot obviously, into. and be would don't

it? be onetime separation finance how Okay. Great. And with so, meaningful any program. that? cash on of outflow there would one one would That's the associated And very you if kind quick voluntary helpful.

Yes.

would and And I go And annual offset on -- we think okay, July would I'll -- so about course, effect would of again, that. and then and so beyond midyear, yes, see is would cost. this savings then, annualized severance an about from -- that the X, into basis, the just benefit it this 'XX year the just stop there.

our And Citi. we Levine next with Ryan question take will from

load duration design customers? jurisdictions On you rate commitments rate assuming is or appreciated. between center ramp, on differences are Any data protect color to help out? for to call for looking what load and Any residential design

Yes.

long-term Thank need assets. we'd that. have take you the -- building for question. I I'll mean, So to we generally, be

So we that some nature. longer in need commitments are

think would somewhere around the but XX-plus working you range, think we're I year now. plus XX So through that process

higher about half And seeing are -- Any outside that to potential tools of you then in back terms of the you're opportunity? remarks, potential in how investments. prepared most execute advantageous load in that are potential plan. the funding what thinking or new investments and new on

Ben as our we is is we underlying that will credit. mentioned, the Well, I Everything But defend would table. the everything. tenet on consider think BBB

with we take from our question Associates. will And Glenrock Patterson Paul final

the ongoing I understood the a that? associated it. gain fully -- the that that -- on and impact XX-Q wanted to read just but wanted to with I elaborate on more And section letters ruling or make of bit you What's back you circle onetime did just of little the I could PLR I got. it, the that sure

Yes.

question, the thanks for Paul. So

tax of taxable for purposes created for some and tax ratemaking others Really generate So on us. has which our kind time really that really from today has some now. issue income of the results our kind of affiliates generate losses, for radar stand-alone been

kind is last X as depreciation over program bonus And capital well really, has extended of the years, as compounding our significant that that dynamic.

have if that, we a issue. that address concerned were did not may we we So normalization

Interestingly, in other support of IRS approach utilities a the well. either making. jurisdictions own as And and legislation the use for letter rate also in asked the we endorsed stand-alone our So or ruling their some private approach, stand-alone

base. quarter. So of we be PLR kind is must boil X received And is the down key PLRs the NOL the the stand-alone One rate first in really facts. included in

our is calculation of included the be the must NOL in from that GAAP in The to adjustment the ADIT. second, addressed gain which excess operating

that then overall regulatory ADIT, And reform. of the a offset So normalization excess was would NOL course, which, the reduced to to created due adjustment tax violation. for liability constitute any

took normalization include regulators to violation. And rates that that so to corrective glad we plan make our action. now to work going did we to with that is forward. adjustments we the So We're appropriate can a avoid

Okay.

regulators forward, So the going assuming that a agree? should be positive

rates. and jurisdictions our through go to able get into Yes. it we're Once

And agreed they've when read I to Virginia was -- the XX-Q, that a is it the -- In been approach, little correct? bit West past, they've the stand-alone said right?

correct. that's Yes,

I'm you, long-awaited sort if then stuff in was you just wondering planning has it's had a about, any Transmission, idea -- you reforms. And coming and of out FERC have about few with Okay. if what talking some weeks. to respect the know I what And

see sort technologies. do question have those guys your that? on might the see you related And to what large sense might Do -- how of with effect you Do enhancement any a -- then transmission system? you have any we thoughts you grade as of there? Just with playing you

Yes.

in-house as us. far the of one. quite experts I not having on planning, As I'm The sure that anticipate much grid-enhancing told am technologies. don't that about from my we impact experts an

been use do for our things planning of I team to that mean, I relates and we FERC. nature. has And very they're looking think at as I technologies. longer information at enhancing the So it involved mean, planning in horizons it.

FERC time table us whole joining team on for has the our So the on been today's working call. with at you those. Thank

you to please Abby, have. team available questions answer information? always, you will may IR give be additional the replay As the any would

Thank you. the X number We disconnect. and of and access XX:XX now for be conclusion to Time. replay available you may participation, This will will call conference at is appreciate replay the ID your -XXX-XXX-XXXX run today or Tuesday, -XXX-XXX-XXXX. call. you, concludes Eastern is the hours X ladies XXXX access XX-XX-XXX#. This gentlemen. The replay Thank The May and today's approximately call p.m. X through after the to X,