Xcel Energy (XEL) 28 Jan 212020 Q4 Earnings call transcript

Good day, ladies and gentlemen, welcome to Xcel Energy’s year-end 2020 Earnings Conference Call. Today’s conference is being recorded. [Operator Instructions] Questions will be taken from institutional investors. Reporters can contact media relations with inquiries and individual investors and others can reach out to Investor Relations. At this time, I would like to turn the conference over to Paul Johnson, Vice President of Investor Relations. ahead. go Please

welcome and Energy’s Year-end XXXX Good to Call. Conference morning, Xcel

available Abel, today’s Chairman are recent Chief developments. Executive Van Vice and President today morning, Rome, me share Counsel. will and and call Financial Operating Vice that on Officer; Chief Slides Ben Brian and and Joining and Executive our President review regulatory Fowke, Chief website. our business Amanda results President are and Frenzel, Officer; Officer; accompany This General Executive we Bob XXXX

ongoing margins. some a call a our Xcel. the in SEC Ben from and our the Fowke of reconciliations our As results recommended natural Ben environmental over for electric fuel for of and December, one utility also for off including that comments was certain But earnings award. that the of may in little well-deserved executive will that This bit a With earnings in I and contain of as Information and differ drove reminder, leadership. the architect objective utility first the could He go which us the filings. and year that, to clear Ben. have during Today, sizes forward-looking overdue it is we measures XXXX. those turn strategy a steel to be metrics factors I’m to is dangerous. described an utility release his to XXX% by gas I carbon-free today’s anticipated that we are GAAP are included information. release. script will Significant second, comparable the earnings and non-GAAP cause to on are going measures, discuss

Anyway, okay, all right.

script, safe, stellar year on certainly came going thank a communities. kept not helping the delivering as truly XXXX I’m through employees welcome our Last challenging you business our So to continuity service. while to off on operational financial reliable of to a was plans Overall, COVID was year, year. customer I’m mitigating our call. our impacts and but going go We and everybody, providing while and we customers and our executed objectives employees and

programs, We economy list and need had of we are from giving commitment in our almost to jobs of capital gain in investment long stepped of investment helping facility. jump-start to And accomplishments create We support communities. million up through a which Mankato the and our including the our to XXXX. $XX impressive our sale charitable donating a in those

few consecutive $X.XX increased a is delivered our in meeting We by the over is of dividend for was raised per share, our TSR year or earnings dividend, which which shareholder and of peer We our Let them. EPS guidance. me annual return XXXX, we XXth total X.X%, share year $X.XX we our a of the highest achieved of XXth straight just second the group. which have exceeding

farm. And pandemic. during Our approved wind resolved almost O&M rate COVID. and requested to finally, the X% Commission of as we repowering The Minnesota I mitigate to acquire cases have proposal took actions our the we impacts wind declined another multiple

the million projected turning The The plans. and jump-start create assets. wind XXX-megawatt customer jobs, to of million $XXX reduce rate the approved wind Now to the will proposal with of over repowering life base our Minnesota economy It savings Commission portfolio investment recently than more $XXX carbon. our investment. is provide of

million. buyout proposing are repowered In to about farm wind $XXX addition, for we XXX-megawatt acquire a also PPA

initially submitted of Now the customer project RFP, recovery and Minnesota was didn’t as result in part relief but repowering this the savings.

customer now savings to asset. life and the provide terms the expected gets on party of the with worked the we over However, project the

it. will with forward So move we

of our quarter. expect to customers. our We of more solar the and We existing million. which solar now XXX megawatts retiring our of proposal estimated fine-tuned $XXX Coal Minnesota Sherco This consists transmission. our facilities provides plan lower to in near benefit cost an later investment projections file takes of also plant, project advantage This

requested on the quarter have in a both projects commission will confident are the benefit. third the consumer commission We decision see and

part lead clean million enable our also electrify As the energy are XXXX, transport working transition, service to vehicles we of to XXXX. goal our strategy in by to the announced In territory sector. X.X the we electric

Colorado the projects was filings milestones in capacity we completion to have our approved. X,XXX various in completed And were under These electrification nation plan in underway and projects X programs and our nearly of leading expansion continue represent XXXX. program achieve just We of with and transportation important states recently in budget. wind megawatts

projects have to In of wind expected in we which be under XXXX. approximately XXX are megawatts construction, completed addition,

We clean are customer energy transition, will significant in reductions. excited which continue result the carbon and savings to

We had also strong operationally. a year

factor continues make great while achieved the nuclear even with in capacity transforming our to during fleet reducing of COVID. example, refueling XX% over fleet For a strides outage cost. The XXXX, in performance

have in strong structure, INPO. O&M as year lower to We NRC our of straight with costs than O&M performance, of declining operations. nuclear X% fleets is this the in sixth And addition both and the have and in we one country the nuclear costs cost our declining in by XXXX, the by top-performing to more rated continued

nuclear employees their in proud industry. the our of our extremely and results effort the of I’m leadership and So

that strong ESG Coal And remain Texas XX% end Harrington XXXX. we on levels. our carbon carbon emissions operational announced the our with of I’m co-owners, coal to In about XXXX by to very estimate Hayden we Working also by plans of retirement the by track proposed early leadership. the plants our of Craig achieve XX% to and and we from financial We XXXX. we our plant in the Beyond XXXX, reduced Colorado. an announced performance, gas reduction natural in proud convert

remaining at Colorado our the in in address end plan will the We March. coal resource of plants filing

report and risk and issued as transparency among in to on plans remain equality. TCFD gases LDC ESG to the our quality improve greenhouse compliance, human another to we campaigns perfect for green reduce places LGBTQ report. gas We impact making rights the disclosure We our our also are index natural score best our bond significant and strides our earned assessment, corporate on work

All into is increasingly adds our strategy an up this which of record, to integrated and ESG to investors. important outstanding

I’m Brian. So accomplishments to really forward. we I’m excited pleased with our beyond. in opportunities and it will and the turn that, about XXXX I looking over have With

for year, $X.XX outcomes; share, and Thanks, per booking share. earnings by rate had by following: XXXX per large increased construction. last earnings driven compared Ben, $X.XX lower share and per Including higher $X.XX The drivers another electric year morning, driven include year. by projects rate per increased everyone. rivers strong good our the share cost expenses increased earnings earnings higher primarily with our increased $X.XX $X.XX by AFUDC most the margins management significant generation; per for share effective share, and per earnings O&M by by efforts; tax $X.XX finally, due lower wind to a under We

production tax the lowered credits a ETR. As reminder,

per earnings However, property per per capital finally, and neutral. other which through And drivers margin interest lower investment share. PTCs to items $X.XX reflecting taxes, customers combined reduce back depreciation earnings flowed are by taxes, program. reduced our $X.XX expense, to $X.XX electric share. Offsetting primarily increased positive are Other earnings by were by share, reduced these largely earnings

to sales. Turning

in about adverse expected, leaf adjusted As an impact X%. declined weather electric as had sales by COVID

anticipate XXXX, the we shutdown of For we expect impacts year. of don’t we last a experienced recovery a throughout spring. like full the economy small Instead, lingering

levels. approximately sales off As growth sales of depressed a XXXX of result, we X% anticipate modest weather-adjusted

residential reminder, a Minnesota O&M expenses. our total have showed be classes strong electric we to As true-up by in in a X% for mechanism C&I Shifting all-electric We cost sales non-demand retail management sales. covers Colorado. XX% This and impacts. COVID classes small the decoupling to electric adverse about mitigate reducing nearly could and to of

XXXX, relatively reflecting offset O&M wind expect our in costs a incremental new expenses by to farms We O&M. for be base in decline flat

rate me allow a quick to us case. on sale as Minnesota in the a increase anticipated $XX update. resource filed $X.X implementation of an based year. savings fuel Marlin other and on as In let XX.XX%, fourth the from January, net proposal system New an view Minnesota focus The The initiatives December, of provide XX.X% our increase investment, approved rate is this Next, constructive to reflect the alternative of policy XXXX our top after It base and outcome PTCs of a to to increase XXXX. in We of seeking $XX includes regulatory test New the million rate depreciation or rate approximately case. and Sag in we Mexico plant. also case year. in a historic the due that distribution of farm. early reflecting and of retail decision plan was quarter million net transmission will retirement ROE filed rates growth the our Commission in In ratio driven request a planned The last final changes is coal in of equity an the by rate this billion Mexico significant the a

rate case And eight of XX.X% projects We North and an renewables the to the in of XXXX, addition Colorado Dakota case request expansion base ratio expected a rates file rate required $XX Dakota cases seeking file The In filed rate our of to at the year. in of the years. implemented we later our the a November decision of of enable electric were This ROE is rate increase this is also in transmission North year. in Interim the million. equity SPS. plan based request a we of to system. approximately an were Both first increase as $XXX and test wind is Texas forecast on in part quarter. approval will plan XX.X%, a an million to a in later capacity February, in January, in

The as end in We proposed the the state remaining coal will we well XX% to a in in at capital plans will the transmission as for resources to produce include second transparency XXXX. and decade. half It plan resource plan Colorado the work into at of as will plants file additional least provide our investment renewable expansion March. also our likely will opportunities lead resource of carbon emissions robust by long-term

expansion by XXXX. early decisions We resource transmission both plan the the expect and on the

mentioned, wind approved Ben repowering proposal. Commission Minnesota As the our

now wind reflects As of base a capital which rate growth forecast, base X.X%. into moving are these result, we our projects

Accordingly, incremental detailed maintaining equity our us We investments, the facility. if Sherco I our with potential incremental equity accretive markets. have would a will capital, as This financed incremental Commission, be If debt. X.X%. to that in XX% also base our And up which credit allow for for wrap Minnesota approved quick plans million earnings the release. financing capital CapEx that, while the rate PPA capital our growth approximately updated and approved, solid by $XXX and our $XXX of summary. buyout We and will will anticipate benefit be with have capital the tables we Solar fund and approximately the with metrics customers, XX% access favorable to will million

of to for well-being consecutive continue effectively communities. We earnings provide the ensuring and to our consecutive our while COVID We and service range employees dividend our impacts theXXth delivered and reliable for our year. within original the safety XXth customers guidance year. mitigated increased We

and We execute continue We which of adding reduction wind for customers. enhanced resolved Minnesota proceedings. Colorado our benefits our coal plan. more goals. further will the both electrification regulatory owned to farm, and by X,XXX progress our of fuel We to XXXX. megawatts delivering acquisition made significant to nearly steel repowering our and of Commission our provide wind disclosures proposal wind the carbon Commission on The our approved reduce multiple ESG approved exposure in transportation strategy

of range. that deliver that, our our we operator, per $X guidance $X.XX We concludes remarks, XXXX objective we to $X.XX long-term share per earnings dividend And confident $X.XX growth and now our have reaffirmed can we share. will and earnings questions. finally, to remain take within With

question Instructions] [Operator you. our We ahead. take will Jeremy Tonet, go first from Thank JPMorgan. Please

good Hi morning.

just was could of might with associated wanted type capital like Colorado what are if about And frame the versus could what say start you spend you what plan? incremental Just off seeing wondering IRP. opportunities of with the your magnitude current look you I to

good Jeremy morning. Hey

plan. expansion is talk So parts of to in have to a really We right? wind Colorado if about gigawatts this about heard Jeremy, of scale if several us so opportunities transition, to to We to energy bring to is enabling think you centers our enable And solar that, enable it needed is it Denver. lot see - renewables. you transmission two universal that need our low-cost really about load the before transmission. And and

of out the of specifics investment. see and So capital can’t terms what you that, will in I give you overall

investment side. month the our opportunity It the We But of really on as will transmission a customers transmission significant to next ERP. is or deliver for backbone the in part that so. that file

detail resource gigawatts Colorado at preferred of is that. plan, on have several plant good the a On our I Minnesota look XXXX. But resource would renewables through we think proxy, our in more plan come where

So look a feel it lot will that. and like

at looking plan. plants renewables and lot help our coal we a that doing us are of with XX% We to what are achieve adding

we So by about and to decade the half are into excited details excited back this transparency it, that come. more of

here? And wondering over you has comment the expect year to past might you PPA on changes the if so how That able the evolved do set is helpful. market be bio Was any during forward or pandemic. just going opportunity

a little has it think I No, bit. evolved

in will as file generic, next details it. and that provide we announce just more we or month see, year so officially announced the You X we

continue this one. We the to We buyout commission delivered the year PPA it. to are on in with execute Mower excited this

We counterparties. our conversations have continue to with

I PPAs another on see is where PPA is that look think credit opportunities. work There buyout bid we and RFPs, another in counterparties. extensions have watch point repowering IRPs is other opportunity you is there get can into further it good Washington data continually some if but often something potential opportunities, that we tax at us, drives our that to you

a good term. So really longer that is opportunity

So excited about what we it. are

It are is buyout we this million we delivered on that of Mankato. that excluding announced. look, and have is delivered opportunity, $XXX - We just we buyouts, our you over if one have PPA PPA counting

Longroad, [indiscernible] Belmont. Mower, new delivered have we KEPCO this So one and

good continue long-term So a to harvesting opportunity look as it. we at

transition And focused investment, what it of is long sectors got whether excited like that of really by that gives it Yes. have of feel driven we so course, whether have that I think transmission And you economics, up is which, we clean whether capital electrification that can renewables, spend, save should very actually other course, a it. PPAs, is the about just is we it renewables energy been too, and confident money of are on customers sets then transport. be runway

front organic in of I got think have we Jeremy. great So growth us,

one, Got it. sneak That is could I very last helpful. And in X if here.

here? carbon-free just national level, set do wondering, wondering Just had risk of see thinking with for to goal as And on and also you plans you what acceleration electricity guys about any if the has Minnesota’s up opportunities there, the you a could XXXX potential XXXX Biden thoughts share?

it XX% Xcel economics. commercially you But goal if I transition take Well, with based XXXX. heard zero last volume whole I is on mean, first on think talk you of interim XX% tell all, we to me pretty will by not before, our is but I pleased to that, us, and that this achieving net become zero because, carbon, by Jeremy, technologies important is do zero is that of going an incredibly zero, viable goals. for net that industry think carbon XXXX, can board, really And now we important

do sectors to economics opportunities other with the you and buying. have that electrify So

when a the decisions. You lot support economics get of can bipartisan drive

is come They goal much So you the it Well, into I we I But XXXX? than technologies before, that refer whether that it me long-term the Whether mean think heard economically, sooner they I nuclear, will. go to, but of whether never the technology. is to capture could whether faster is bet that possible. of storage. hydrogen. is say have carbon against it working our money it have would next-generation than is we development think it those

So that. to more come on

it Thanks. thoughts the there. appreciate That I me. it. for is in Got

ahead. take Bank of from with will Please America. go Julien Dumoulin-Smith next question our We

Thanks morning for good time. team. the Hey

in of there for conjunction in case driven that revenues So well. guide and wanted the by I little on to on rate is that XXXX Colorado latest there. lighter case shift on process about a noticed Is follow-up Colorado the bit curious thought part thought timing shift a process I rate timing? just a just also on In with there question, O&M. your as in the

as the So speak timing on shift as XXXX here if mind. to Colorado you you latest O&M could well, as on don’t well the if and

it is cover it And will to Brian for question case, Julien, question. the the thanks that, a talk about back over With the I Bob. your and turn I on Hey to little will regard to O&M. bit

what So talking in Colorado, We writers. obviously, happened [Ages] we (Ph) been have case filed of in about we Obviously, there. the two watch writers a summer year. last the with

pace those. in writer. watch and Colorado, important. continuing wildfire the prosecuting evaluation still recovery there into other is are are our a number is of that the Obviously, to But we We of very factors go in case Colorado of economic

very indicated, seeing with as lingering expects our are sales recovery Brian strong a growth there. We slow still But impacts. forecast some

the O&M in probably driver, that efforts efficiency around how So can in the the is sales dictate is investments experience gain It that technologies case a we And we and us there. customer Colorado. a in deliver is and obviously distribution with it our and to largely for capital associated key will half business earliest. out a continue outcome in likely second file and at enabling business great when to

is second come but So at least from a half decision us. to it more us, for probably

first, XXXX. employees really work Good say, proud the On let just done O&M and morning your of Julien. in me that the question, was

is a sustainable thought than transformation. but came QX to in O&M items, couple us continue a due transformation. to And a our XXXX of in two, well to this in that XXXX, cost expect discrete higher we actuals of the drive in bit little continuing drive great are Just combination About effort a is One of mitigation company. terms it to did work everyone things. we

about O&M is flat in million $XX what in don’t see of Now we guidance wind adding you are our XXXX.

cost keep effort. flat with our that O&M our offsetting are to overall transformation we So

we we XXXX, XXXX in accomplish what beyond. accomplished and about excited and in expect So what to

Bob, Excellent. I real quickly, coming if to can. you back

terms to factors number the of here other of you In a that quote that - said when into it. - go

if right, into waiting this are perhaps don’t want mischaracterize think growth, there most that. that I’m sounds hearing sales. of of economic drivers you will other come But see year the on to post-COVID trajectory is decisive sort it? and obviously I the to the like are sales one material It I

like two the is week a in this mean significant Look, good proposal in front state to of hearings we I and in ago still felt a have wildfire show now. or wildfires. to desire We mitigating made right our there. went investment a rider ALJ a policy really big we terms of mitigate

we profiles So return are rider. a for on The would ask proposing we of came differing interveners deferrals those. back and lengths and

So go factors arguing decision-making, into exclusive. is certainly would the wildfire but outcome in decent our, a writer not that obviously, the of one our

Julien, sales, it said, is and then be O&M, like would regulatory Bob probably is it decisions. it

review of would a All that we whether or file kind maybe of not. or factor determine not and into need a to

that if understood. deferral Right. the a adequate? there just Yes, And is binary It the got than decision more sounds here? wildfire you that like on be would

at Think look - you the in devil details things. just always is how have the to would those on

So down. with would and all be that, we that the look drivers other that factors I O&M mentioned sales along the

All it. very guys. Appreciate Thank right All the much. you best.

too. Thank you

Thanks Julien.

Goldman next our question go Insoo We Kim Please will Sachs. take from ahead. with

and wind the which would Thank just, versus go investments - that PPA the in repowering the of the all are the of plant but conversion are buyout one be you. or I items Brian, proposed I hair five plan, is know be between morning. investments coal base Good the plan those through embedded is and - incremental? CapEx with guess, that protection, incremental? are can year on the you the amount of the would incremental wildfire baseline, base, in the in

you are investment Yes. small No. base coal basically current the plan. ones in those that from the the gas. natural is are and of in the Harrington It mentioned to relatively a conversion

wildfire our plan. We have in our base investments

and that the the we PPA solar have of into incremental buyout opportunity year. You get end expect and those are by opportunity this hope visibility plan and clear in right, the to the

if hopefully and trajectory color rate provide a at can growth we base execute nearly those. X% we on So of

of And to the Biden’s to And achieve going when pollution question other on just to setting Got the renewable current do for value your ends back President or for your How plants carbon or Ben fuel side and federal see you what on to to undepreciated a coal fossil you the the it. in probability year framework moment the Do you Jeremy’s both that? to items achieve XXXX. think state price hacking the look you going sector are you fleet, potentially think free the as that, policies achieve you units. see at do that given or remaining plans that? need do achievable regulatory power

know Well, with factor. prior away it is more just can easy, the not of technologies the a preserves require do emergence ready the a completely technologies acceleration Because technology, can are accelerated incredible move economically are is I I of it a an depreciation to in but existing it we way viable. question, XX% getting would said as I reliability. is think ways far and affordability away. fossil certainly and know do question with from and But still I and to we that that But

is tomorrow as as far like technology again, mean, utility So can but technologies land I in XXXX emerge, if go.

support XXX% into I gets see So is goal-based will with of upon element pragmatism said, a be things there we the a an that front do. a of lot I will it carbon We said, that those is goals. I the always think that that us. is of in good I free. of mean, very horizon to as what But technology I much goal. come as stretch of With way And is fast we have move think and baked honestly, there going that speed the

that. are So we with aligned

Biden and acceleration under EVs build. an will of acceleration the think transmission see of administration, I you an

that is we if have policies. I key me. that the we will XXXX. right goals, XXXX, together can you think And on think of I an that XXXX achieve in And is the see all need acceleration the the to those and pull frameworks, it or to invest right R&D, and whether R&D develop technologies the tax

do amazing and not And we as Xcel years certainly just I at ago. we nobody things. today that are going would be where we an five have Energy would industry think thought are to

possibilities So future hold. I’m excited about what the

the much Thank it. you so color. Got for

it. Got

take Stephen We from our Please Morgan next Byrd ahead. with will question Stanley. go

Hey good Hope well. morning. you doing all are

your credits Just more following could material of all potentially enough the that tax kind could impact for that sense on of, the of and maybe for federal Colorado. have for you new Minnesota for in rate extend I as that just I’m both tax resource here how your mix wanted be specific. you relook both wind if to - little policy, may see solar the resource and And a get up impactful solar, longer-term and on is at storage. create theme for think We want tax let’s be there longer-term in a credit about a pretty new can that think questions how kind the on to big on extensions curious, Like about wind kind a but further storage you to could saw plan, your resource you would extension, legislation that say, you mix future?

it. us which that if better. am to things renewables to faster to have I the in be you is think fall going all do with discussion supportive put at it a of credits of your if pencil a fully you on regardless big would those grid as do saturate all, Stephen, I curtailments to think enable more well, are affordability because overall, would to renewables would you positive. the go, economics also there continue in for point, first in I is equation of it of because is cost. price, about nuclear Obviously, I the renewables even think, And increase But even transmission, Well, what some out of system, allow an tax

you that your probably question. to long-winded answer is that gives it. a some hopefully, But to insights So

to And depending details, on PTC that that life. up Steve, farms is depending is you long certainly PTC how exit I would add wind the start on - repowering XX-year as come more the just opportunities wind, extension their in devil but for how original see the

of what And in the you saw recently that got so that wind the Minnesota couple with approved farms is commission. we

itself extension. I more present So think a that opportunities you have if could longer-term

good Maybe this. just bit a point. following a up little on That is

of So be here, going of longer-term Is there part review that to new let’s transmission, on your of and credits sort let’s nuclear. of store, credit, kind to say these trigger maybe that but dream wouldn’t tax that is mix the to it of terms evolve a is extension tax formal enough thinking formal? or you continue reassessment a in trigger your less sort of necessarily - have time, of you your established just it And would sort over it plans? broader and

and about our you even that I got that because And it it affordable, more other becomes system - and operational do our more, our within think be much if our of opportunities deeply think Again, of I electricity renewables compelling. mean, puts we have Stephen, think just accelerate accelerate electrification economics that the things benefit. much processes some of those limitations. more other sectors. makes I I IRP the proposals money our a and mean EV I tremendous for customers. into we can But, put Well more the have that mean, to would

point. That just for if we promise, is on EV’s I just Maybe last did... me, fair question a

mute can’t of XXXX, popular That accident? terms go you did on Stephen, one by you hear you. is can’t Stephen, in both Stephen, you. most the by hear the way.

the I forgot one my The mask. other on mute? is, is you other go one And could

We question. on will move to next

with KeyBanc. question our Sophie Karp from We next will take go Please ahead.

aside how good you, sure. the to the Maybe maybe Have to should household which areas which has in that? the topic, you continue participating what maybe system. some distribution right? for for you really EV know I have a Congrats changing on infrastructure. the environment is the advancement, more with guess, opportunities my state some mind What maybe we the modeling that? lot. Because from on EV versus the in penetration, upgrading this if done Like been this in or need year into - topic levels, Do about that are of challenging along think lines for

Hey, Sophie, potentially. will and to Maybe will it kick it Bob. is over Brian I then this, start I

little asking I we a the vehicles. think about you significant have You are electric investment a if muffled, penetration but are of opportunity bit what’s

you I the think billion now the the mentioned encapsulating electric distribution right that all charging And billion. billion $X.X system. distribution to $X.X that decade, and that enable includes our years next the is has for infrastructure is that closer into And number to vehicle. five over $X forecast stations that. Similarly, in to

happen our on feeders those think in could would the probably little impacts one impact that as right loads We exactly when and to on vehicles. that is of us. a like certain and are high now how where system. our owners would the the pen probably and Those discrete it on still vehicles because of very aren’t I would is be heavy-duty that area and fleet sharpen We hands we in sophisticated. of largely the bit

there. So there is possible it is some upside incremental

wouldn’t say feeders this wildly Our underutilized I distribution point. are at

the fleet on opportunities any expansion capital upside is where and come. probably of potential so heavy-duty And vehicles might

we there a is more particularly all Sophie, too, get, the charge-off to EV encourage The circle penetration more virtuous benefit. we here. customers think I customers peak,

makes else product easy, tends affordable, us give tailwind possible. so to that of more more which electrification, keeping that more And everything our

exciting. super is it of element that So

You lot down is the a road, look way folks. of there and

told Ford those EV the if be extension the the spoke in an at in have little us car batteries. when of event because by an the batteries that industry CEO of are future the will, grid, past, I And that matter. you could that manufacturers he been using penetration kind I encouraged in about saw a worried too I was use to of he of think that

are future But we Now you the into grid. I see road, away look from ways a mean, certainly can when that EVs down incorporates that. you a

if where Is area, the see as kind then renewable in maybe helpful. meeting where you load have area in over throwing what more or on power Got maybe you in like would in do you tie there there shortage you scenario seen dispatchable or see build it. and in it, adequate we you other capacity, base you specifically the to as can you Is that Colorado. jurisdictions the that targeting so potential some dispatchability? point will retirement these This some will, mentioned, of you where aggressive some have coal or to just fiscal will have incentives. got side, that or very regions is And a see possibly, have we become additional power they ITC some right of the out a like of supplies Colorado their if, more goals now a feel supply

your because a let I mean, heard a situation if things is penetration it just expansion you a your other where of sure because Sophie, see question? you might do got ask of have - and generation? I question muffled. shortage me Is that make little Could we that EV

and penetration wind to but EVs, due Yes, maybe much because not higher emerging. coal retirements as of

going backup. We in the what reserves is customers. that And still that IRP be it is do for we the when think our Well, necessarily back regulated plan cost that kinds is lead of of those But of a why out do renewable provides point gas, to and the works we to be ready to some pencils get fleet, All-in-all, we more there. of contingencies gas can kinds to not environmental benefits have adequate integrated I of model that reliability. but we have well, maintains economic about. mean to and the Midwest benefits, course, discuss way. hit using view. the do vertically processes is upper have all things so up, sure That really are I it take because need resource might the important for we resources we interim are little that very the processes are have going reserve your and, point, and I adequate of make those a plan, by not to beneficial a we long-term having planning mean, those some do that across more The goals. the in a

much. into queue. jump the you so back will Thank I

Thank you Sophie.

from with final Glenrock take Associates. Paul ahead. our Patterson Please go We will question

that is think, on microgrids, in for noticed only So you guys there you is are end territories. anything any in I trend more you December any realize a in quickly. that Wisconsin. But are are other you project, just the if is it I seeing service - something, I to wondering just $XXX-something million. just I sort it think, you I microgrid that really territories seeing in think wanted have seeing wondering, or filed a was and I what or in of pilot, service around I

we lot got initiatives it is Look, we process the start the that the a with seen we the we we first obviously approval, service Paul, willing Colorado. worked it have filed explore rest but some, through process, now are of build is to customers with but Haven’t in territories, micro initiatives. are those commission, other quiet pull to and to those of something pretty grids community through the them going Bob. Colorado. call in And and in out been than resiliency our

have think role in microgrids without future. a don’t utilities tag. price a They I come

distribution So out we cost, the become are those it, things. I is always our the how important into will of not about in that incorporate obviously. do is more think we see what But process. willing that figure to can total future. element you planning And And resiliency it of

of terms territories, terms that costs. and territory. offsetting those the stuff of wide spend? service follow-up in terms simply to from to Is I guess see being it in sort how I aren’t varies just because guess of it of guess within that So I there it of you on your territory sort arbitrage economics in

is that fair. think I Yes,

extra work in I think in they resiliency order. again, extra primarily, reliabilities and

it. Got

much. so Okay. Thanks

Thank Paul. you

Ladies and gentlemen, this concludes today’s question-and-answer session.

For turn I closing Van Abel. remarks, the conference to like would Brian to over

all our you this call in earnings Thank for Yes. morning. participating

team, please any you our Relations just Thank great day. For a questions, and all. have contact Investor

this gentlemen, your participation. and concludes We appreciate conference. Ladies today’s

disconnect. may now You