American Electric Power (AEP) 6 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Danica, and I will be your conference operator today. At this time, I would like to welcome everyone to the American Electric Power Third Quarter 2024 Earnings Call. [Operator Instructions] I would now like to turn the call over to Darcy Reese, Vice President of Investor Relations. Please go ahead.

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

presentation of website these refer filings we cause future Our available statements. There are statements Please release, slides to these that financial call. a related for earnings may factors information during on the our SEC be differ at to will Today, results factors. our many aep.com. discussion making forward-looking and are materially from

are and remarks Executive opening Fehrman, Officer. for our Zebula, Chief morning this me and Bill Officer; our President Joining Executive Chief Chuck and Vice President Financial

We will your following over call will their remarks. take turn the now questions Bill. to I

our as key through this before before and cover I'm I'll our the to morning, then pillars to to Thank turning to you, to over of outlook you good morning, customers results Darcy, CEO. for and more be happy enhance detail. and In investors. my financials President in I'll it AEP's and Chuck earnings discuss updates value remarks regulatory strategy for handing everyone. our call with walk my first

our can business highlights of quarter find third presentation. XXXX the X Slide You on summary of

asset but and size interest. base Most recently, also the cover a utility and haven't myself an Britain group energy and I business. XX was today, We ground my briefly in Canada career Great diverse has to of X.Xx has spent Hathaway at entire AEP the first, exciting lot meet to have which in opportunity to I'd like operates of Berkshire of a Energy, regulatory in states, had but I to introduce those yet. I've

investors, our delivering like pivotal companies new the bankers, you. organization regulators, leader and I both many to With time the forward I'm and I AEP most industry. industry While of join for at I'm to a for and with shareholders, the of AEP am that, honored familiar look to players, debt a

to of and CEO, across discussions role stakeholders the the governors the legislators. assuming AEP future. vision built AEP's our foundation over system, XX-state our of has learn and robust critical three a shape XX the about many for for and engage, appreciated We've which months the represents robust our over I've AEP and and growth, I've help stream. Since X strong to total listen met opportunity including our regulators including initiatives, past team footprint, transmission earnings had XX%

communities. reliability, future put best-in-class talented strong and improve with However, company, can operational streamline financially the better local overall the in hands earnings service utilities we in technology I power our of build forward across use the look to success. excellence, to drive and leaders people to many the working growth cost, and

per Building to earnings confident in our $X.XX I'll guidance financial earnings XXXX we report share $X.XX year results. begin on $X.XX, operating with our $X.XX operating momentum third original narrowing strong year, XXXX maintaining range or this of $XXX our million. to quarter Today, midpoint. the we are full

to XXXX also $X.XX. today, As earnings referenced formally range on $X.XX of introduced X, guidance our we Slide operating

in based be is retail role a of likely lower This range, Generation contributions segment activities on and this CEO X earnings We to regulated scope been our to range due for have margins Marketing realized. our thought since guidance robust reduced lot foundation forward reflects wholesale I've The going utilities. in also about growth from especially our range months. just XXXX lower & and of the

processes exercise, coming XXXX, our commitment we you have in over will personnel retool and through months. earnings significantly the in AEP's my range that grows better and do go we after optimization XXXX and While X% beyond an we

growth. customers customer while demonstrating improve is customer as need outages. delivering we our enhanced on which, regulators very a As in as large on and objective relationships, reliability reduce promises growth over focus for I record a to enable stakeholder opportunities upgrades service future regulatory establish to the AEP you our as result time, distribution to My experience and the service, AEP's to new significant CEO as will system. to outcomes vegetation of our we in embrace more are well substantial and load at platform management goodwill to stable the positive opportunity territory and

energy are X% to XXXX delivery billion the efforts capital in $X.XX up go. growth, today, to $XX $XX newly long-term balanced look XXXX. a to through year flexible capital a AEP's off at states All and earnings resource rate unveiling midpoint. to plan plan, support improve affordability over reliability prior by this we and investing in in raised focusing is development our more help on addition I base of XX% new infrastructure this even Because a economic upside more XXXX are We generation address and billion new growth there tremendous to billion adequacy. When to of is which our than plan, from reinforced $XX X%

capture satisfy load significant growth. $XX and of incremental generation all we transmission billion infrastructure the opportunity to in fact, In see investment to

provide EEI details X% at drive more updated regarding will rate base these that CAGR. We opportunities investment our

frame, could bill by due time refer needs. Note Slides on economic a development up to from XXXX to activities of created to customer that new X. during will potential than headroom that also change the generation annually impact rates due less future through rate Please and and generation. effects this expect X we go customer X% Understand basis system-wide XXXX our

associated increased committed critical our capital and responsibly we financing As to remain know, the capital balance needs. rates, sheet you to maintaining a growth is spend with these strong funding

extent price. tools, will to can monetization achieving we explore asset opportunities the In and they to executed addition while the be upon equity equity-like right

you explore them If won't we do sales, they about until asset tell we happen.

forward X-year plans appendix and and rolled be can in the XX on newly financing seen Our capital Slides XX.

Turning to X. Slide

roles for accountability right and and in This changes we execution. change joining and the better is Since the align culture outlook have talent in transforming our to simplify company customers. made the rapidly, a and we serve strategy our need structure August, of to Our right recognize robust will to by achieve financial the be business to underpinned organizational execute objectives. the our have several ensure we

Chief Officer, For President operating me. directly now report our company Nuclear and to example,

While and power plant directly site presidents. report managers operating our company will to

have have customers, by We I'm Service moneymaking move of authority three and eliminating the decision-making in through ensure structure few These our new structure our leadership all performance. need I'd closer layers will confident the to areas streamlined help to actions strategic and reorganizing core accelerate businesses management improved financial spend integrity. areas. a walking growth value they to Corporation. of as these like the we customer advance service each minutes focus: us regulatory drive strength, to

our future and data through AEP's customer updated strength we financial significant have driven center growth gigawatts XXXX. growth of First, XXXX forecast with for commitments and through accordingly demand, is load by potential load XX additions

territories, year-to-date Ohio, of This growth realized In demonstrated in load and quarter third impacts to XXXX in third is in and fact, X.X% results Indiana. large quarter in our are predominantly to the felt XX.X% load last growth commercial XXXX. year service compared in we already of Texas compared being our which

incremental we on supporting to but this also investments. committed costs affordability focused growth by territory, remain ensuring our are new in service associated allocating resulting We fairly load and from

investors, proper the and including we This potential filed in tariff only in the Load related Kentucky benefit modifications Virginia all demand customers FERC tariff Indiana, local communities, large with co-located and cost to Ohio, the data center stakeholders, and West from data a to load low fair proactively center is a but arrangement. why complaint growth has allocation. with and

While anti-data is that think center, some our opposite. complaint FERC may is actually it the

that centers making all help We all territory welcome data to our are service those centers trying to data customers. by sure

area best-in-class customer is of focus second The for service. us

will transforming help and reliability focus meet Business service leverage to innovation discipline technology We efficiency drive through keep affordable will and and our a costs accountability. with rate needs customer reductions energy rates and amid growing and on base. also customers' enhance processes a rising while transformation technology O&M outage to our better

integrity. regulatory pillar The strategy last our of is

the of want of with renewables, investment nuclear, or to with will we or gas to our work policymakers regulatory will We to states operation to and respect we deliver. coal achieve they communities them listen will want regulators, in positive them preferences outcomes. our continued If deliver. If and work

focus we as As preferences. fairly, At long we will work are and to as our our advance To that listen our same earned resiliency and aligned states we time, we state will pay level to states our prioritize ROEs to we for treated structure deliver. what affordability, our reliability, at want strengthen each organizational have and of they the key their with and end, stakeholders improving security. system to we continue the closely

work this fruit, right for headed time While is it will the direction. take bear this to in

X.XX% The with other ALJ companies the on ROE settlement achieved regulatory the with reached and the agreement Texas, the quarter October, recommended modifications. a included X.X% early positive X. developments well. settlement which order of a of ROE. Oklahoma, Continuing major was in operating effective order a October In without Starting and an parties settlement, last third unopposed in commission approval AEP any unanimous issued approving a our comprehensive month, number a as

While on implemented XX. PSO October awaits were rates interim a commission decision,

mitigation investments, week, effect in APCo in to a plant In Virginia going biennial proposed as investment. Virginia, November, includes in the deferrals $XXX.X incremental XX.X% to ELG on required requesting A million of September securitization fuel held $X.X ROE increase. and commission is a refiled while its option January base billion offering securitization primarily CCR rates base storm was a XXXX. in and undepreciated expenses. focusing early concept filing West related into balances, This Last the also rate rate hearing order case with

from of securitizing we impact any how would plant $X.X While on business. would and billion rate investments, redeploy be reduced earnings dependent capital environmental throughout result the quickly balances base the

be should by from been introduced to we indication desire each impacts. Virginia. preferred, the early West filing have is case rejected That to commission plan our meet redeployment Be alternative very have companies' leadership was included was requirements. would in highly to capital said, the by plans that I new assured checks consider bill going driven needed capital mitigate accordingly. But Rather, to not and me filings by metrics. as customer additional and rate all forward, today Securitization and an securitization securitization our implemented of credit our financing and we that of control is is rate hit let X-year ensure that clear. the changes quality initial options operating internal case disappointed not

not happen like rejection of kind I in case this our Virginia, from it did performance rate accept team. Our and won't should West

owned for resources load SWEPCO, request for year-end August in And support growth of XXXX and to updated issued mid-October to I&M diverse by for PPA early the completion formula or region. Louisiana resources both new to and for RFPs, XXXX on proposals, or Moving in generation megawatts into Arkansas. rates X,XXX to new effect seeking for went up secure finally, target

As expect to XXXX. the regulatory such, we filings applicable make in

states at individual making We as look we made level chop. outcomes, do. over our the So transforming the the have by wood local is in and more here have the is achieving regulators line forward short, with have engage the The to progress positive months, significantly to investing and X while resources progress more constructively what relationships, past we our but do outcomes. bottom team to strengthen we to delivering business including focusing on more want regulatory work towards continuing

the like legal the ongoing of about I'd are to of AEP quarter. in SEC's discussions a million we update engaged third briefly the up, $XX investigation, recorded possible and on Commission Securities the you loss wrapping item. contingency in Exchange resolution Before and and

active and into by well tremendous on I'd is further an AEP's plan the this growth to for don't reiterating making comments my confidence this like potential in future. we Given close on strong matter, matter. any now the success

our strategy the work dedication AEP deliver providing advancing reliable of to hard and we continue our the positioned and team, value stakeholders. support, to With affordable long-term safe, are to while well entire service

released and accomplish improving EEI. this floor reliable, in new Related will of financial through a our power, more commitment plans Chuck. We'll with vision newly days seeing execution. you statement to together many I now lives to even affordable the look give to discuss forward detail. of few be to customers' happy I'll in we our at

pleasure a been you months. the It's X Bill. with you, working Thank past over

with we for and that is infectious, the at service operational and Your have us. you looks passion customer everyone incredible to leadership before working and AEP capture excellence to forward opportunities

Good morning, everyone.

$X.XX third for Let the $X.XX GAAP move share quarter the a me for were of earnings last on per compared and Slide with share of the reconciliation results. versus third quarter. on XXXX. There $X.XX are to X third share earnings discussion for $X.XX quarter the GAAP quarter a to operating share GAAP comparison respectively. to earnings shows per detailed Pages per of per the year. operating is and XX results earnings in Year-to-date year-to-date GAAP XX,

utilities higher integrated higher offset up vertically drivers outcomes walk by changes and normalized earnings Operating $X.XX Let's the taxes. and third were segment $X.XX per in earnings quarter the million $X.XX lower share across Indiana, totaled by rate or jurisdictions, compared for driven sales for were partially in XXXX. $X.XX. for included $XXX retail These through per multiple or third to share, quarter income our Slide performance Positive X. O&M. operating million on Operating $XXX earnings share items Virginia by per depreciation and

up per lower investment lower higher growth. compared were per year. Holdco distribution retail driven rate included driven last wholesale year, share along share, compared share income drivers expense. by Generation & These were Marketing Favorable in compared $X.XX factor year. drivers contributed $X.XX margins transmission $X.XX recovery normalized AEP $X.XX retail with to this cost partially segment in Transmission distribution $X.XX last higher Transmission higher $X.XX Ohio The and up investment rider interest the items and higher Positive segment produced by segment last Distribution depreciation. sales lower offset and include margins earned last by from revenue. These Texas and and partially year. offset by the The in to Utilities taxes changes to up primarily per items

The that Other The Page taxes the year-to-date and other share from quarter. $X.XX XX load income growth detail on sales growth driven about retail a increasing of down X% year, shows of of earnings the up Weather-normalized this across Slide primarily per year-to-date. $X.XX share Finally, to prior is year, XXth and year quarter third in to the or per strong are $X.XX X.X% consecutive our XX earnings per Corporate operating was higher Note continued operating expense, interest increase marks load. revenue, compared the XXXX shown in share timing segment this presentation. by on data higher grew O&M. system. $X.XX year-to-date in This operating

offset in have by and sales developments consistently sales, challenging thanks around have overall double-digit our year-to-date, X.X%. retail normalized to And weatherized Also, growth grew of XX.X% grown Declining game-changing centers AI. sales residential for sales economic despite commercial been many the customers. industrial data conditions of our

have X% the nearly growth and and companies grew attracted Texas. to or over in growth quarter, steady a are fruition. sales. pipeline we projects companies development Our to driving industrial economic investing centers, consistent energy, years, see sales primary data the in several also propelled X.X those projects in manufacturing Besides Industrial in past beginning the by of our come metals X%

you'll beyond, presentation. XXXX and to this XXXX projections that updated to ahead notice our out we have in sales Looking

XXXX. at first Looking

commercial this sales In projections integrated and up segment, at year-over-year decade. sales to overall growth is estimate estimate commercial offset by Flat a Ohio in year-over-year. now vertically and of and by next year. segment, years, be the segment. over Indiana growth residential territories. the sales, the nearly later customers Ohio, each is have continue and this not for existing double-digit sales in to projecting T&D XX% this commercial Texas our XX% in increase growth Texas our X.X% will propelled in we AEP our We AEP new and spread service This are in by I&M across an additional several the Note, about mix happening

year will by of powered sales Texas. expected in with growth of be most development projected economic industrial support growth to in increase customer that a New next ongoing X.X% also

have manufacturing large We to year. the and several energy slated next online within loads come

Ohio commitments. years, of are these In While all all for their financial that lot additions power comfort enable backed spread the on customers customer nearly by numbers base all impact to be tariff. these I&M, are next lows AEP and substantial, are of cost fact in a locked over of higher depending take-or-pay loads forecasts higher reflected Also, benefiting we load backed several signed the our that in large by local of these to contracts. take means are over This the fixed amount a will in pay customers. a minimum the

based mentioned, contract expect Bill additional decade. the on As activity system, across we end load online about of to the gigawatts come XX the of through

This projections driving years. is at load peak was our the in next of magnitude sales about year last context, the increase represents XX end a see increase the XX% summer that Slide XX. load six For in gigawatts. in load peak That peak of you in

retail driven increases, double-digit commercial X% over We by above space. gains load not accelerating in years consistent growth industrial X the expect next the only

located half centers PJM of are mostly hyperscale in our and the Ohio in Roughly data footprint additions Indiana.

located The other Texas. are almost half entirely AEP in

opportunity. Texas both have The growth in we growth making and XXXXs of range, load spread to still the this customers. we in seen time music. However, years time Truly, Beetles is data large the and late work our sustained last more industrial The pivotal this processors company for is a a across diverse were as capture transformational and in X%

September quarter. Let's increase from at FFO to XX, the is to the debt left stands see XX move which you top XX.X% can Slide a XX. XX the metric the basis on table, for months In prior ended point

are end. it Our Moody's opinion slightly that credit calculated. AEP was impacts change fuel our the without view last its cap March, align to in metrics how treats consolidated debt understand deferred of from next decreased We subsidiary and quarter at quarter to XX.X% in to company intend how

our in their and of forecasted all periods. will management on not view last we exceed in credit discussions threshold AEP's is of based changing, week, continue Importantly, XX% to annual downgrade our meeting with Moody's

our of We to debt to normal in years. committed to our which this in XX% and are part a facilities. of $X impact Moody's In slide, credit state fuel XX% our not does billion Again, a left will billion on metrics inflows FFO regardless of view our next strong change supported and by is $X.X of to the dissipate can goal profile. the or X the summary, the range remains being importantly, deferred at lower this cash credit see over you liquidity

at stable qualified status on front, pension the Lastly, remained funding our XX%.

year-to-date financial the this share. strong per in summary, and tightening we XXXX completed net in $X.XX note third OnSite the In quarter our to to and AEP range we Partners, are year proceeds $XXX received put our end our meet million And goals results also $X.XX sale quarter, position at the a us guidance I'll September. of of that with to of approximately

estimate. For XXXX, earnings our from share, XXXX midpoint with operating $X.XX guidance guidance guidance $X.XX roughly set to $X.XX, we X% range at have midpoint growth a per of our

guidance Marketing scope in a lower XXXX Our and on as foundation businesses the margins the Generation in is contributions segment. earnings and of well segment expected regulated of activities as based to strong due retail the wholesale reduced in lower our growth &

expect our improved and segment earned in between with ROEs performance and we we our we regulators. our gap have narrow forward, alignment Going work invest vertically where the to integrated utility as authorized

from we related to is long-term XX% more previous to related resulted plan, investments which robust is This also a XXX was to territories base the incremental to rate XX% We supported new rate X-year up footprint by guidance continue infrastructure to are wires industrial in backbone, likely capital and increase activities midpoint. development Future and generation our X% attractive than Bill plan. a to as high-voltage of from as our a our a billion the in of capital $XX transmission more transmission in earlier. to Texas, XXXX well have economic XX% go our nearly generation, see as introduced X% growth due These described that X-year updates CAGR X%.

on and Slide cash the shown flow forecast XX. X-year is plan Our in appendix financing

the the impacts investments over as Note, well as investments to generation large related We will with renewable inter-period our nuclear however, period due the efficiently tax equity-like years generation opportunities loads, forecast time. have over X-year monetizing supported our credits is have and credits in consolidated facility. and to portfolio individual movement equity, explore, instruments, existing tax to optimization plan from as in

XX% in addition, time our from lower range a to we growth In rate rate will XX%. over dividend earnings growth resulting our in decouple ratio payout dividend the of

markets will objectives plan increased is appreciate in protect many fund to capital to the growth competitive we today and maintain while balance additional next finance sheet return. in a maintaining look We sensibly conference of to us This and flow shareholder to forward at to cash solidly Access seeing allow retain market capital our AEP. our will We your week. critical, new category. and time everyone's the interest and investment-grade you EEI the

that address we Operator, can can the you open questions. your call Thank so you.

Your first with Shar [Operator question Pourreza comes Partners. Instructions] Guggenheim from

obviously, about big cleared X% to this the morning and update So as new your thinking we decks rebased a are rate. growth X%

centers. saw maybe Asset at to driven haven't be in side, on like guide, load peers but you range, accretive and of some as can earnings numbers? that material become by incremental Or cost helped, opportunities customer that point thinking maybe this we some your the your plan, we're with season? XX of any tailwinds can the sales commitments the Has could your of gigawatts as about of those have you during longer any the to anything aren't growth data further 'XX

the out costs remove look more the reduce the of all continue out who for management and to opportunities bloat. plan regards team, done effort as put expand at that of this we've to help opportunities company, on for in did number transforming clearly, of look management additional the will We of layers With offset the transformation an was inflation. of business, we're span to a separation for take a control year, expert opportunities, us with many in years and And I to of bureaucracy in help had to the me who's things worked voluntary company. bring company place to reduce across looking

that. And so for clearly, opportunities there's

here just months. X I've been

do. a lot to we've So yet got

around company. noted my yet a wood comments, the chop I lot to As of in

And we so were in but the into to at the end those the at do were remainder we've gigawatts But that sure what numbers the regards made this is confident XX to the looked the and more that with put we able in clearly gigawatts, do we XX the first more to what there. planned years that of towards X of is of we've plan. with essentially opportunities plan out in time, got

As $XX was potential billion deliver there's growth generation on load execute was development. could this ability we fully really I are front by noted, only that say would the of Again, company. that to And understood but more plan through capital I here it that numbers that our as us. to the much sorting limited of we transmission come sure in with the that, for we're billion $XX making opportunities and have, I

Chuck, to add? anything

No, good.

And then funding it. Got just lastly, source. the on

So $X.XX billion in equity needs.

Opcos the an asset? kind obviously transmission on sense the been us and Is timing, the a asset of do give ] has media of reporting Can sense need sales. it you mentioned as opportunity equity? [ a just maybe you You when or just

to comment and to Chuck, going until Yes. sales you add? want of those the us might regards need. potential consider With to we sort happen, all where above clearly to something but we do get to asset stuff, we're won't of on

us give sure. I also pursue we In add equity that. that out equity would will to instruments credit. there, our like Yes, plan, products just

which looking well. far drift our alternatives. and we're well, my holistically Bill lower at any from are rate the would rate in said, ITC PTC looking have as we dividend earnings note growth growth to And asset as monetization our comments, do payout decouple as as opportunities, all We as monetization. You'll ratio

have look talked. will comes, how we I at we need come and and the of that you needs of As any equity the could forms support XXXX timing that just such, in the that it in

Our with Fleishman from Research. Wolfe question comes next Steve

new much? kind of across you seeing of you earning improving over in to of that the are over first, the below. returns earned sense So you the issue you've on had by -- utilities the period the terms period? kind Do that? how the Are have what Any outlook,

regulated we the opportunities, now at plan. as right X.X% our in look looking So we're ROE utilities, at for regulatory the a

would I've work met able to our gone be to comments, in will around and what understand deliver changing And we with ROE then, positive continue also we outcomes then have where As we into relationship have. and that that to want to to turns the that relationship to general with is we -- the regards to hope will I they achieve, focus and improve more them. with then as that the my and the be working them with through to with noted we that regulator states hopefully

of the us part regards we our service. reduce business, to to go relations that, into side service. more our regulatory And that with customer also to put significantly distribution we helping and As customer then have improve of that all investment to of will I've noted have the vegetation management, outage time.

and that. changes meet of So made in to been here we're our I've very made prior West regulators, new in We've filing. on with our those states X the now filing to as relationships we it to disappointed in made very, that. months of the quality continuing I internally we're focused and I've X around very noted to the build the Virginia, correct

And returns. adds get to to much so be those to we'll closer these much very how able know And I we're business as on our focused it rollout.

to what to sheet. want just appreciate or said. the maybe deferred question fuel. and I I on restate the balance clarify other clear the you Moody's the just on commentary One

the XX% So fair? above it's threshold the view general stable. the like going be downgrade sounds and temporarily to to credit make you target that of they FFO adjustment. are might It but below XX% is that the that overall, the Is XX%

an I of said. that's think I representation accurate what

with Our next comes JPMorgan. from Jeremy question Tonet

more. data data on given bit to the the you speak Ohio, in stakeholder, to And the wanted could in to little there, proposal, guess, this? guess, settlement your dynamics Just views all a challenge speak I tariff centers I center given

Sure.

ensure impacted to that fundamental center our As in a Ohio base for being one is the proposed tariff in data negatively that of all not such, in around center Ohio, would increase essentially commission. staff that as that opportunities a on centers put through our been And at There's process. coalition the the that on by significant is been filed for has is ourselves we've well this data more filed state. by load we going pressure including principles they're customer settlements looked existing the system. other the creating on the the costs up as parties, from filing center to as the with data of the And of number the data stand

We right from base definitely this. on would to conversations and that's we X, want But in system now, we want that We want shortly by the And that. after make expect but load get the also going. outcome on still hearing our to our growth, to commission an that existing sure moving is to negatively are be that and customer we wanted see Ohio. impacted not December

seen comes of a at And so in with Iowa, honestly, a on commitments And my need to load we for Berkshire data I base we'll how what base. there. time think, worked we do centers and but had that in are. And the prior long particular, centers protect significant data we customer role customer that I've I've the ensure in

a line potentially is have But in the load. of got to we've to to rest we for sure can the make so place base. out. going customer serve this And if want feeling only everything that how we bottom we pretty good that protect And is play

bit as as or if see guess, And the as others? to the well could versus your this proposal what just you I and it wondering I to AEP. with offering unique transmission you Dominion project. beneficial a On And FirstEnergy JV relates was little talk on

and our we very is So great the partnership go that led there view that potential projects. coalition of by have together the putting together entities forth these was Smyth team, very, and it Antonio of as stronger investment that transmission Obviously, a to pull PJM we're would amount on bid a in team good that and projects. chance these rest significant our and winning was and transmission of a

confidence out well and to year. and working that we're later together really grow really business. our came JV going But strong transmission hearing together, team in and to opportunities next might up excited end our and we're that FirstEnergy come with have I so about where this we're of from the And Dominion well, team some we

quick to I like last if is guidance initial the just seems AEP's and on One could, going 'XX on It G&M. one, midpoint. outperform notably there

other as if also kind next segment them business, indicate G&M could back Do just of that is of likely kind the advance identify to So and not of are them given down the happen? asset lower And of sales of segments underperforming bounce in you next the you're there? said, business there's to year, sales this expectations be more to there specific expect year? others, in you that that scope wondering step that going knowing

lines projects I But my time. other asset a of the that And I So rest of as the going which at contributions G&M $X.XX sense, reflecting those be significant segment, all them. in the seeing at about We're transmission obviously, look lower after we good -- I XXXX the is for potential change also we're us. we'll sales, make again said, if our far business. to take about comments. things as across going over XXXX, opening in we'll will improvement are obviously as talk then and a noted consider But and they

from next Our with Morgan comes David Stanley. question Arcaro

earnings what's those I help businesses maybe follow-up contribution G&M of outlook? there an Just or a a that could bit understood X sale or that. implied of just no else? 'XX Could something Is that. there? to sure me on driving Is the understand so I it exit specifically, EPS And just you make there

at change slide segment looking clear. the that you're make that G&M may not from beyond. the to contribution 'XX 'XX We're there showing just in and would perhaps in still be a And from 'XX,

I touch more generation would has that's terms that the the going plan, lot a clear. be that And thinking you're the then Yes, CapEx of come you how is gas. about assume on to incremental in into new could of

you'd kind that what process that be and and So capital is investing of of to up? where wondering I'm kind when the in firm

I'll West other economic But the to play. say, to a into of out be as to got with come there's at I as as those prices come forward. lot So obviously, that work those CapEx they're projects. some pushing our we the the Virginia, say RFPs be kind of what also those coming states particularly, spread street, we'll continue we gas projects with of mentioned, I&M into in system. number lot yet development on states, a opportunity will do of of a and particularly through regards have for see that sorted We've The in

have talk so of up, And coming meeting we things about our about potential the detail states. the more EEI a to excited these opportunities we're really at but in happy across number

with question next Julien Jefferies. comes Dumoulin-Smith from Our

of real quickly. couple A things

bit know can. the baseline elaborated the moderation on the Is you on more just clarified if that on there, piece, what's expectation you the of there? through plan? component, G&M off, or piece reflected a Again, little X.X know 'XX but static of the course a First I further the you I other utility of the

business that supports would Yes, Julien, the think the that XXXX. in I level see we

some you coalition of related bit lot all provided little adoption ERCOT then understand caught [ you as know has across you what CapEx I sure if this as really in reflected as I again, in across just will? have And And emerge, formalized ]. far new or what's a want baseline this in various more efforts here XXX I can the comparable XXX sort extent of attention on what become PJM. to But goes the a particularly to we make details see footprints. VRTO here, XXX detail of here, say,

they the big that there have that in Permian in proposals we for event put opportunity decide significant to opportunity obviously, the XXX around a So significant the We've in that way. on ERCOT in go our opportunity down area, growth the opportunities We've alone as just is $X SPP $X PJM billion in got XXX the us of well. backbone good good and opportunity for various or potential a Texas. front. XXX also areas on billion for there That

AEP And very how situations. and excited I'm company gives essentially is in the certainly pursue. to XXX a so us to strong the about these that competitive something that only U.S. And build fact advantage knows that operate

that's increase looking growth load by And significantly starting think decision-makers has huge of some That's the kV this the all ability dividends one years frankly, is of right being who move things are XXX seen their now backbone done over ways as the combine. that, is for energy. to because build strategic paying to I AEP strong other out of it's around really the to

very that And opportunity to and a MISO. maybe engage we XXX in I'm SPP experience the so the about bit excited with have, kV and PJM ERCOT, with little

ROE. exciting. that's Yes, Actually, pretty a the on quick clarification utility

a X.X, plan to from You're I imagine disintermediating mean Is that load. despite relationship? accelerating it could earlier if there. was things, there curious but I'm something moderating your there else I the seemingly anything few purposeful

diligently I continue to regulators. trying and really the the we're Nothing purposeful. to mean increase ROE work with

you at component transmission continue X.X. we to want up. to have If frankly, But earn we get our the to of blend way rollouts. this, in up we're Obviously, to our closer

put to to and regulators. corrected Virginia the had with better in significant we've in with a recent now the us got West said, on some steps side we've that work do position service some customer our we've most I filing As

getting So from complaints they're customers. not

got we of reliability improvements we've off we're and continues but and And going area, there essentially sit. blast taken details customer really our board so in tremendous we've it. amount foundation, to where this a a service. we're as focused this accelerate And our from forward, to We've created move the on new to of in to very chop wood through

Our from Barclays. next Campanella question comes Nick with

but for growth. wanted around for I I'm to back The be And generation here come wasn't to Beetles, load excited the I to the comments.

facilitate higher can with and load policymakers about you I outlook. regulators think working talked on this whatever solutions

about But for remarks, fits I your and on nuclear the You prepared gas. lot you expand can know you past the of all? thoughts of AEP talked Bill, nuclear. your nuclear at about kind if also your in how about talked kind And into you maybe talked just a love in of strategy,

the to are number customers need Well, to continue work out our continue projects modular first far as many on nuclear our many, work small plants. with they colocation those of pursue based and a we And are them can then And years reactor and customers. foremost, base to pursuing A type want work power I the we'll if of some to with approach, But ourselves of we'll tell. government, as exposure this. government, mitigation are carrying approach Federal very But the a technologies to state and this developers risk out risk mitigation. will of build a there. customer significant like the is It of that to input take such that going customer with full existing our various require isn't to from something combination

figure progressing. do. we how out as ultimately, if That's want we'll then have new Canada we'll and And we'll we and in customers regards to plant technologies as various But a way our at the what team built Hitachi that our project that's to BWRX scale that deliver -- this nuclear TVA have our are follow continue GE built and to being those this, the here want watch these well follow we'll it. with in being the states with Romania, the are to

a we that but out foreseeable and there'll so through make and push designs built, are be carrying the risk fairly to people not sure base that of that the have NRC start load help will in kind And along. in we can X it I'm figure that. this of broad very favorable make process or this be is X that engaged There that to

really And things X% your appreciate I just to X% on there. off thoughts rate. tie to the growth

base have growth of So drag. some rate X% net financing you

certain trending of you kind hear here, higher the too. in to kind midpoint? to years? be trying term? of CapEx I Just Could in X% think of be that. you over this range you off kind Where you understand X% long also this you're on lower grow the do could raising new billion. $XX or linearly Do You

capital The in And components the like midpoint. expect as the XXXX imagine, load the new of I completely can the Bill X% it to right described, been have it based past. linear may of and plan don't over to of be time. addition kind off as is our you X%

range, but certainly expect our would that in we be to linear, said I guidance years X%. all expect don't just if was have do I So

Our to X%. guidance is X%

long we be to necessarily I expect the that in think would term, there, between over I but average does somewhere mean don't linear. it

with Sachs. Davenport comes Goldman Our from next question Carly

start a transmission on increases as plan. quick we side just plan, to Maybe relative follow-up at obviously, on significant the new that prior the to capital look

of Just of is Or as PJM opportunities any plan all spend those in some related in this are the opportunities? the built there question, think in, back plan? in the I those end you Jeremy's ran to through about upside think that you to

the $XX ERCOT, chasing only additional Yes. transmission generation my new mentioned and to regards be And not plan. of SPP remarks, PJM, well. I This is the just what MISO with is would build-out we all for billion in to potential basically as upside but and as

you in then to the to talk earnings just growth bit relative could rate about little going thinking you're range, the how increase that to long-term lastly, just X% with a X% And growth forward? about range dividend that

Yes.

growth. earnings much pretty growth, dividend matching of pattern a followed have we Carly, with So right, our

to from dividend targeting With from range. the ratio increased earnings payout in the we decoupling, be the would fund right right, XX% help capital growth cash needs, a the growth will XX% And that. the

policy XX%. XX% old to was Our

our right now, in XX% XX%, think I that range. ratio is payout

we our forward. competitive market shareholder return but for opportunity decoupled total provide shareholders, will that will a be So going

next question Scotiabank. with Our comes Weisel Andrew from

at something from to question. a dividend growth? or how what Are that or would on expect roughly roughly are for you it to up able if XX% good follow the said X% first potentially like earnings growing differently, indicate could quickly I go expectation be seen to X% dividend X%, we've you be slower? If XX% to Would

can abrupt you is approves Well, in through won't in time. anything expect as Board drift a just down to we dividend. right, the that know, drift go range you that that would significantly It that's we But there. down And we be Andrew, range. will imagine, that as -- discussion, the

like more way years. could mitigate gradual that this DRIP, of year? million Maybe be would something a should see understand. your we asset hybrid shows billion per an is the just understand something $X.XX I it. the that $XXX fully fairly year the I in and And ATM a -- to if on and of equity. over commentary So block of line or absence that or take slide put you then better like purposes, it one a it modeling maybe guidance a those sounds per fair this straight in give Then to sales want I need. ] But timing for of little terms X alternatives? might [

would Obviously, in in cash hit tell consolidating there's metrics. XXXX options of the a need credit our I equity as and on to XXXX the X-year lot some to indicates you earlier, flow table. form that we support What just I that, said do continue

as equity-like at we you the looking of all on think wouldn't flow. securities, shape in in XXXX year's at did of a And looked look show perhaps the It's fashion. need at to good support options, up because I it which we cash it equity the including So the true and maybe last or think line of some holistically in kind way. form similar in a are way

assumption in Could that more What's for count share for the be direct. indebted XXXX? a little

I talk could that at don't about specifically. that have EEI. We

later. Darcy You with can up follow

from Bill comes UBS. Appicelli with question next Our

this earnings? of funding of to going be credits magnitude question to Or Can to funding? -- the monetization a the you to the about some of about years efficient Just tax the credit. tax utilization is the talked you the over provide transferability speak contributing with is or

years, transferability 'XX projects. some a just neutral with some year. the latter to ITC solar earnings In largely. X roughly It's provide over opportunities And there's to period, Yes. 'XX to It's $XXX the it's funding. million

in next $XXX average about be you'd X an year. some of million So But years, numbers. bigger the per

the And sales outlook residential. on then on

you bit year. expectations next that? assuming been or So that speak slightly are driving flat improvement relatively back little to trailing what's had a can positive behind you some Maybe to

others and seeing the as well. in it's industry trend, mean I Yes. think, we I a that are

inflation wallet As of critical. work, has people in the the and share as returned more have becomes to crept

usage. reduced seeing just you're think I

not time. level some in and is existing seeing point it's customer areas, We other decline Texas in that, are counts and in like increased Oklahoma customer at and but We usage. that Ohio do places offsetting the off think right,

we're energy also there. pretty after assuming some I as see forward in think decline, But going years now efficiency probably -- nonetheless, forecast, flat things our in some it you much. there's continued creeping of we're

can just the you then lastly, issues recently has And FERC co-location speak that just to addressed. maybe

intervene issues think can or You case. more FERC just Maybe policy steps the some your of out next you guys coming you broadly? are the in of highlight what

sure. Yes,

simple issue a is our mind. this in very So

for that an If looking it. co-location our have of It's transmission use is issue an system, with have don't do source. us they the power is a should plants problem data issue don't that simple. gets customers. try it view co-location. issue cost that really you to you use We we transmission into when And an as an energy what for other use we But shifted system nuclear pay that's not pay and for with centers to with the because have

if And decision-making of And so end the day continue We'll And around simple transmission we're through pay concerns where process reiterate as go this for the for continues really at. you the that's it. process. our to us, system, a use to FERC principle cost allocation. it's at the just

Our next Crowdell with from Mizuho. question comes Anthony

Beetles write that Nick, I'm you sorry, reference? did have Chuck,

I think he have. may

I may think he have.

great. that's Well,

Just X cleanups.

time? X.X%. where Or over year? is could bake start a assumption we that that improvement? in certain I that something on should we improvement baking think it Julien's in What's gradual one seeing into question the Is you're a fair ROE in, that

can deck, in X.X% entire you XX trailing the So the regulated we're for complex. see as months,

think I regulated XX.X% into and next the that So range, range averages the going to you think the which about X.X% of that things you year, X.X%. utilities Transco should as think about in in right then

doesn't the about connecting for to be issue. appear the very it or but with this it large even that connect to an company? these supply this all large customers ago. growth, something curious, talked I'm system were coming maybe manageable taking demand, these was center, with where investors just maybe whether tailwinds. as I'm is chain great months customers, you X then to asking all the longer just you it's at the on, about pace But a load And it it's thinking just data know, labor load all

going and Well, to try a many data us. to would centers connect that ways it's this we're out long-term centers to to working to those as that be part to tomorrow for as build-out with while allow they most and we'll at try but us connected get them power the data data get creative to a need, speed options be come certainly the for connected, challenge we build We'll for to they other for is like everyone creative the which is built. transmission get onto centers And can to to try find the up we with continue system.

get this with we certainly side chain it's The high But this. very supply the working we'll well from we can. and construction and with to work of fairly to our is customer, of crowd, quickly significant to don't But hard ability going manage a the can want PJM supply working be I accomplish to they as foresee I the demand out, think an have evolution issues particularly then construction the time. on we done. spread data and try what chain at coming center as

today from our And Levine final with question with Ryan Citi.

when couple. do I load confidence could of evolve? level you think that you and how terms guess you? One, -- your confident the are And forecast, a in

Well, essentially signed load. contracts as earlier, we got for of this stated we've all

coming confidence we're are discussions do number if level about our high. agreements a in across But Certainly, Those signed load in come a for fruition. on. feel of quite opportunities our other is number development very nor clearly confident have the So of know to we we're not we with and economic states. we you, showing what our they'll plan

there flow the through? any and vein, then cash to Is to in expected exposure years, And your on coming with similar federal to recent ownership how plan. terms tariffs guess And you're is election, of changes in free in your I potentially federal build-out generation and that exposed rates outlook tax in credit thinking policy. change your a

it's new is through to we have to here a the administration going question mean going see for what evaluate we're go to I platform the time and as be.

some give to absorb So us that. time

Thank call. you on for today's joining us

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