Xcel Energy (XEL) 27 Apr 232023 Q1 Earnings call transcript

Hello, and welcome to the Xcel Energy First Quarter 2023 Earnings Conference Call. My name is George, and I'll be your coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions]

I'll now hand it over to Mr. Treasurer, Relations, President, conference. begin Vice Johnson, and to Investor this Paul go sir. Please ahead,

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

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

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

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

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

morning, good and everyone. Paul, Thanks,

our systems Let's share in had per earnings compared of energy our per $X.XX first investments earnings to another to revenue customers. share The benefit grid for in start increase $X.XX new recording quarter, quarter and largely XXXX. in of with for recover financial the XXXX solid We reflects our clean results.

Our result, per $X.XX share. business year, we the earnings plan a of is $X.XX to on and are XXXX as track for guidance reaffirming our

We've transition megawatts in across This on and jurisdictions. continue our energy X,XXX for industry-leading plans. a received solicitations electric of nearly we significant quarter, to generation progress of pending make reviewed multiple clean new number proposals our

our of across company-owned plans. 'XX half in proceedings a and third-party beneficial various and mix these second both on decisions deliver commission remain in confident to anticipate of ability those resources We the

Colorado. recently benefits multiparty including and Inflation We We to Investment Heartland clean multiple Jobs Interstate Western Department Hydrogen pursue funding of Act and the the consideration, resilience projects the Hub Act for and Energy Infrastructure energy the Reduction to transition. in the the submitted to grid and opportunities accelerate also by investments provided and continue

for for and recently venture and well-positioned energy receive requests. addition, our grants and in of Colorado are believe storage to we all DOE In some capital Minnesota we or long-duration applied our proposals

new like clean country rise commercialize experienced a we we long-duration geopolitical clean and while the working technologies, to part of and the keenly order energy some a And hydrogen bright, future. challenges like are XXXX, Xcel customers for the driven and need to aware is regions that fuels in Energy, our storage, future serve. actively this company our customers energy to saw prices promise And our clean at with are winter a do Our macroeconomic the financial of by and that of significant we in gas we realize issues. that in

and Xcel record concurrently customer generated Energy to have X,XXX nearly in track of of future be transition bills since benefits than a customer Xcel business, operations. farms sustainability to leader keeping continue and in amongst with more megawatts electric and of and XXXX. reliability of realized and be is $X reduced wind commodity recent XXXX billion to saved and In $X.X policy a capacity that of our to in our increases billion We've that rate of in steps energy number thoughtful can excellent exposure years Energy's below proud performance lowest factor bill the customers' affordability, We owned through believe volatility. inflation. energy country money the long the cleaner taken a fuel-related

which inflation on customers. fossil through flat expenses further and fuels well programs, we've Future reduce benefit and maintenance benefits bills. is investments will that nearly in customers' to renewable our add to accrues operating improvement to kept generation our a and continue fuels XXXX, below reliance Since clean our our and continuous our

average-sized management And we energy avoid federal demand efficiency enough programs a payment across energy XXXX. XX states, approximately to building numerous to to state million customers our and record assistance in saved plants. funds expect record exceed XXXX, and and $XXX power that have in Our we disbursed in

Also, in Outreach income-qualified high to Staff, Office, to Colorado partnership Utility the Colorado Colorado energy Energy burdened Consumer commission increase proposed to funding by Energy Advocate, we costs. with support and the customers

in We natural benefits lowered XX%. gas in customers Xx, throughout Colorado we beyond. proactively with recent to expect increased our XXXX provide our recovery gas costs customers' those to mechanism and And by prices, reducing gas declines

with comparable our In energy of our are in for solutions volatility working fuels multiyear supply customers proposed are the in contracts, and efficiency and benefits. at that regulatory plans, other process. the financial legislation natural renewable affordability, rate finally, generate price to and to physical been Colorado, storage, gas include gas reduce we rate on long-term programs, natural gas stability additional to gas blending use potential long-term we've LDC. could Our relooking hedging, stakeholders cost addition seeing clean deferrals, states And customer energy decoupling natural energy in the natural regarding

actions gas volatility We the are help for confident reduce that in future natural if can implemented, our these customers.

As some company's pleased up, share the I'm I recent wrap recognition. of to

been of by and we've For first overall in amongst companies quality second the the placing in gas admired in most Magazine. management, tenth as year ranked country. world's Fortune a the most electric companies one honored admired the We and responsibility social row, of

business year of most been fourth world's the named and Xcel the of Ethisphere, row, practices. leader one a for a Energy the in defining companies has by global in ethical standards addition, ethical In advancing

be will at of of mission accolades, a rest our proud record reliable track None we will never and our we're provide energy clean, with without on our while contractors customers And and competitive services of our employees, partners. our our to safe, the commitment price. this possible

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

increased with $X.XX good the included most drivers electric $X.XX following: per compared the Thanks, XXXX and morning, rate A per gas share share, clean systems solid reflecting credits The production new and revenues increased mind, another effective earnings tax infrastructure. per earnings lowered natural tax $X.XX quarter, by for earnings gas and $X.XX share share. earnings by investments to in ETR. quarter Bob, had higher the recover energy first in XXXX. reporting the in quarter electric We of natural per and revenue keep for everyone. significant But our of lower

are However, to flowed customers and back margin lower PTCs are through electric earnings-neutral. largely

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

Turning for to X months the sales of increased sales. electric Weather-adjusted by XXXX. X.X% first

XXXX, X% approximately expect We continue electric annual while residential expect be down to year. we driven growth sales, C&I sales the by to slightly sales of in for

the was investments differences increased primarily timing due first recovery $XX with for customer other in emergent programs quarter. to expenses and electric and million The mechanisms, regulatory pressures associated outages inflationary vehicle and products. generation increase O&M work,

million, decoupling which regulatory to and mechanism also expect of O&M to X.XX%, reflects ROE commission of decrease X% made Minnesota of tracker. $XX natural an rate increase case, property equity our XX.X% continue tax recently year. gas with approved the a We approximately ratio number settlement an a rate in of We've on compared in The in the progress proceedings. XXXX last

and XX.X% a received we ROE case, electric implemented decision Minnesota a commission a X.XX% in ratio. a and We constructive ALJ the including in final recommendation the fall. equity June In rates anticipate

an year based final rate historic During first on early in of a seeking test case retirement of the ROE coal of of a We ratio the the of equity the rates in commission a quarter Texas filed $XXX of increase XX.X% quarter, XXXX. Tolk we implementation plant. million electric the XX.XX%, an and rate anticipate decision in

in Our case Colorado early electric in the rate process. is

implementation equity and a final Intervenor parties. Mexico are if see reach due of A in decision anticipate to fall. X.XX% later a to year. of filed the of testimony. recommended and X.X% an to in on Other forward with decision XX.X%. test between recommendations a rates expected million potential and recommended based intervenors In $XX We in an case, rate equity initial increase commission XX% year The of our range and an rate the May, ROEs there's a with staff are ratio New we'll the of electric in a settlement XX.X% ROE X.X%. ratios intervenors

a file rate in a XX.X% natural on XX.XX% we'll and a based an year. increase Wisconsin, of of case a month, million this rate million ROE, later $XX ratio a future test equity seeking approximately increase $X electric gas Finally, and approximately XXXX rate

the these We in cases with Details our on earnings the before in release. included in are commission case decide new on January. rates expect effect year-end to

with our detailed to our release. updated EPS assumptions the earnings to of XXXX We to $X.XX share, $X.XX objective per information, which key in consistent range guidance X%. are of is are which our latest X% growth We've our reflect earnings reaffirming long-term

With that, with I'll a up quick summary. wrap

Our leading while in exposure customers customer to the the energy of have to remain fossil growth in inflation long-term prices. fuel bills continue committed clean the and country, of keeping to we the transition lowest below reducing rate some bill volatility

across outcomes We cases. operating continue multiple regulatory to companies rate with constructive across progress achieve our

number significant additional RFPs received our with generation have RFPs response We forthcoming. of in bids a to

clean objective half energy are we to and and remain of range earnings We long-term upper dividend reaffirming confident, growth the earnings transition. we deliver X% guidance, lead to as continue XXXX X% the our we within our

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

Instructions] first Dumoulin-Smith [Operator question America. Bank Today's of from Julien is of coming

the to time. comments I wanted Can address little some legislation mechanisms issues and out Colorado out that of the And in about guys, obviously, the of a there the and ultimately, address exist you it. just lot set perception Thank different of bit for the avenues a issues? of then efforts the to how affordability, you, proposed there? out and what Look, talk thoughts recovery to Appreciate to there. tools as and your some key

Thursday good your voice hear to Julien, on a morning. Yes.

prices and about been legislation to we've our impacts side on very We've on in aware, of from seen introduced in steps, to the the year So in last said declines price and there legislation question. your week, itself the that side think mitigation session. and The this that that was appreciate occurred the in volatility proposed, around largely do. I Look, we've communications Senate. as in both late introduced the assist Colorado got -- And customers the a remarks more obviously as to taken prepared we've gas last I natural been year. pretty keenly my lot I as the

over idea again, tomorrow. we or in approved by benefit is believe, at year, in requires it's with going saw still to And I and price and volatility this that a mechanisms our volatility. customers the that PUC yesterday, the be we past requires go in the really our today company both -- the to price customers And it Senate, company the and in mind, look with of price look the at on for PUC. the all that maybe But to can the helpful house price the was

front about the of think end back on it, tools gas I procurement As think both end and the it I provides the cycle.

and end of the about So the front -- things think hedging storage, financial and on on and hedging cycle. hedging long-term rethinking tools, front like that physical thinking end, the

a The price takes that look legislation volatility felt event deferrals may we the but determined for in the end volatility And that then saw past year. look at of be a books think being that much that legislation so the the our contemplates not to be exceeds we the in the at I are cycle those mechanisms back it immediately mitigate also forecast, there beneficial customers. of the pocket those the process, mechanisms over to regulatory in very mechanisms

we've beat forecast incentive price the the piece legislation something third our meet at customers. proactively volatility and the which or the to -- mechanism with of that an the on, company incentive working manage for think is been provides looks with I already commission to gas

But over the lots last of mechanisms. saw regulatory the Again, through on to from volatility that regulatory really the worked customers get with year details balance, is to the have we protect process. intention

mean you then just what change this as too And you anything a the early. could on on mean, maybe hear does this, side, feed could some the into procurement? Obviously, And that any that ultimately, conversations. thoughts terms electric this I gas financial perspective, to as front. of about think business, on related mean in initial from of then I those

resources gas our the in and investments study manner. distributed Yes. systems more the gas make procurement to for customers around and those for asked More Look, broadly looks how gas it to cost at energy do LDC electric both applied some side, into the us -- I the ability we business. system future on expeditious it add a to maybe and it also causation the think procurement allows long-term gas a speaking, to

that what So like a little it are capital will there's our electric some the in necessarily think early probably forecasting the be totality. but implications factors state, long-term and the too gas, in on I to say material in don't

I which call process Julien, would scheduled in is that really equate electric add, it clean a on the heat I in August, resource Colorado file And Yes. to a we’re planning to just plant side. –

So really do commission through with and decarbonize working how is we the stakeholders our LDC. our do

with XXXX zero net term. a target legislation in then We and targets have longer

longer decarbonize about real So our that’s opportunity all looking forward our in we for term. and plans a we’re a how as stakeholders put we LDC, think to I working with place

ISI. from be will Evercore question next Durgesh from Chopra calling Our coming

was the I disclosed assuming this an this Colorado, on your from there? efforts going just And through the $X.X question transferability? to activity plan what, then maybe can to the I you of past, you answered. just thanks XXXX. come for update. But the you've tax -- wanted is you ask get transferability remind Maybe funds You you in we to which billion us credit us, what tax that a Team, update think that have, just I going year? the on just can are in in on credits terms from update

the Durgesh, thanks question. for

tax transferability us, we're a that the wind on a but very expect the right? here other guidance, transferability. intended, guidance, we're would issued for in credits We been farms on, the And But to guidance straightforward to transferability for not looking be IRA. we no service. these from Something already specific focused for it have QX seller for clean, of guidance, aspects fairly pun only guidance call of clean in

of the documentation in for certification And looking so requirements, stuff. registration we're so and basic requirements, terms sale, pretty

of really the the looking we're out IRS. for what that's So guidance from

in The about a other talked term. to not interest this XX is purchases our year significant counterparties for a of the is but and longer aspect we've there of credits, already, tax only amount

terms good this our price So a execute ability our pretty we're in confident to at for on of customers.

took We credits million $XXX think about about sell expect get pretty a in I expected financing year, conservative we of what guidance half to we this would so QX, our And this, of QX. executing That's to in approach. us start I And really this tax could in about plan. sell we of year.

with year assume can renewable our So sell in -- we be But tax after. of think as the and about transferability the remainder efficient how then credits. the mechanism we cost we'd great projects think a on we kind it is longer-term tax of the I view that's most those of and and

there going of depending Got on sort sell announcements Or how it. are X-K are And be then that sizable calls? of you to going is will the to how year credits, these type just your announce other just like -- any... you in back half as tax earnings these be

just want be we on counterparty, how thinking energy – by want they’re included counterparties calls. Obviously, the quarterly it they make may they’re about clean supporting about transition some the depending not may to think about thinking to. in they’re announcement I if earnings No, may – other our there

calls. expectation but quarterly – the be our earnings would in So

Arcaro from David from questions take now We'll Morgan Stanley.

if if proposals just of you're cost wondering you seeing are or that of these bit more a in inflationary And you're right comment now, how what increase prices? got competing. could at pressures if is in some project little in was coming RFPs I outstanding terms the attractive Xcel decrease or you've on seeing

the question. for thanks David,

RFP because the on call the through can Colorado amount working incredible we in a and Colorado still XX-day a we've made processes, prices filing in I of that and projects in median the we the comment bid that interest what about seen, So talked process.

you LCOE And perspective. any side, wind we and $XX. the didn't $XX IRA to think closer was be about that's would didn't from that have probably that, credits the an -- tax about if if have On median we price

IRA savings opportunity great with customer seeing. from So a what a we're perspective really the in

ago, CapEx. we Now X that's some inflationary above years that can you the as on slightly RFP see did pressures

price solar about side, is median the the $XX. On

I'm Now a you giving price. median

portfolio stated. portfolio August disclosed our happen have will project recommended portfolio we will We with to think that the filing the in those that But make not project well prices we've our you overall, in come when and commission. median below our

of proven And scheme well and the long price think time been at we up I we've ourselves number that now Circle put overall, from can the side. So we've point very delivered solar in with a we with the we a set perspective. wind for the from be competitive. solar self-build bids [Circle] We've

overall, getting So I RFPs. we're think, excited about these

least the in talked from that's some at Minnesota we've expect filing Colorado May QX. expect a filing in RFP, information. on RFP. Minnesota the SPS, that one the I because about here then a And shared us on

kind opportunities say, and execute excited give this solar benefit of some the to later would the these everyone we're we'll customers. and into of But our transparency in of full I wind on visibility and pretty for projects storage and excited So year. overall,

back any significant more when And the plant? Got popped at and to issues just now online? would what's or color the the What you the cost status inspecting the in was plant the just broader then more Monticello coming Great. then water Okay. also it. leak give it. any repair? related see could you that it up Curious of if of And be

for question. Thanks Bob. the it’s David,

contained water or plant. are from process. planet the process at the about was releases, no think removing in the costs We leak, below aquifer leak in we the the There to people the as significant. risk repaired not of Monticello, have water – the in we pipe repair the were the we As our said

We’re through end close halfway it to finish expect about that next. – of water this removal, halfway probably early year, to

the really increase I before finish out fuel ready about It’s to for pumping go. water expect the planned refueling. The have but We and side. not years. plants more it X cost So do plant, plants. Monticello loading they the they a And refueling every at material X to weeks shut restarting in of down probably is

questions now Jeremy JPMorgan. from Tonet of We'll take

priorities with And pivot other recommendation to Minnesota I could the little want bit, ALJ of to particular any there if address regards could. remaining Are know to case Just points if thoughts in Minnesota perspective? share of didn't to electric you rate there. final a any I this out from your stages

as up the atypical that not litigation Sure. I some that The appreciate that's commission the really or we process. ALJ a look, the we We'll last No, -- take process filed goes, didn't get take Since up, I question. terribly in future We recommended filed the end ALJ exceptions some but got all material the the side. for exception things in the for we say their recommendations at on continues. ALJ filing, wouldn't certainly have March. the our proceeding asked of file together, and we it's

had a rate case general on in side. state the haven't We since prosecuted the XXXX, electric

June, for been second at impact expect as in the put of for a think to out as the ALJ the by from recommendation we recommendation And of the a probably of in having well And argument. look We that the end ALJ's the it and time. expect thoughtful sides pretty for as quarter. mechanisms so take commission all the to mitigation the some mitigate we company the we decision to that was early up the place shall long customers

kind And towards then of pivoting just it. MISO. Got

updated timing concerned, CapEx -- are of Are far on there? side, Just from what for X there? there what as what any you your current thoughts potential expectations thoughts hearing are as initial kind is tranche

the Yes. question, Thanks Jeremy. for

we obviously, I of a announcement I shift we're like And lease we've think as be as MISO, to bigger. a similar tranche next said, we part thinking the or year. bit X, about about of it, moving we're an first potentially next And in tranche in with it this thinking target of as we're X. But expect little to seen. potential right think now. that tranche has big as is the the we'd expecting share at X a kind received as And tranche but

with where MISO move through our But So working we today. and the thoughts that's as the are obviously, stakeholders process.

for That's me. it. Got one helpful. Last

us bit if little able didn't are might you a any great. on now thoughts hydrogen the the Just that be in, applications incremental with be could would you elaborate to hub know just more share

and Certainly, Thanks the for clean country molecules versatile and -- question. the really Bob. I the we It's been needs We some of the hub that hydrogen, why decarbonize those molecule of future that across think think supports harder look, the think think we we've about clean of and as to need to sectors the of we the as IIJA. the future I hydrogen through energy be about the for looking a decarbonization Department hydrogen in appears programs the most Energy at. economy,

So we're the excited process. about application

into future We by of would then end where expect the proceedings. go around decisions we proposals year,

hydrogen whether converted burning Rocky in So fertilizer the region, the and existing into have like both for about consortiums into for be and our users of multiple an our both perspective, from region, molecule -- in blending co-firing process of two, upper and distribution gas that think creating are system producers of one can one goal then both and our as what with the process and involve clean plants. in a the I heat we heat ecosystem states ag, natural Midwest Mountain

excited and the appreciate and we're molecule DOE look we applications We this to year. progressing our doing, forward So versatility that what are around at DOE provides. the Congress the

on more of Yes. I’ll the a color just bit add process. And little

about hydrogen and But of said, forward feel hubs encouraged. ours submitted, X our, it, X concept were multistate and Bob XX that about we papers think in as were call X and Ultimately, moved because is encouraged region. DOE we’ve papers multi-application there with Mountain were good Rocky concept overall, hubs. I XX all the

and Bob it’s out this the to said, forward of play then process going looking forward So process the at as stage awards that. year, after a and end seeing

Sophie now KeyBanc. from We'll question Karp calling take from

you're Just a remind Could be, to also quick what your win expect you into And if bidding those? follow-up on if us do any? the you RFP process. rates

question. submitted self-bid those the for thanks absolutely self-build way we Yes, in own have and do X the Colorado range was of solar is our last the depends our -- and of of Sophie. only RFP. self-build those But and We SPS. the from projects. Minnesota, follow-up XX -- playing wind see to combinations storage solar we projects this each RFP. on on so all And out RFPs, a Minnesota XX working the and to we've months, spent probably

As we decade the a have renewable build-out we our over next know, territories. in massive

potentially do only So projects we with have a Colorado self-build selected, being in own Vestas not Colorado their the good -- with partnership we facility. see our

interconnection plants. some And of blades retiring wind using with so geographical our the around. of and have We're coal lot -- we wind advantages turbine opportunities a there, having have being manufactured we

So we good. really feel

about it. I do And we view Now, a I our we because is me targeting just lot Obviously, about customers. little cost you good think would we our think a to think competitive than that for I X.X as of will that longer-term. of be think steel of think we we'll -- benefit this very this, start to is XX% this to let as XX% show really fuel give a could projects publicly, have we demonstrate talk love think ownership commissions we ownership. more really about and

wind many competitive at because to can below XX% think there a term that's price point are at true can as energy clean over or backyard. this in we And and the the XX% don't transition utilities able I think clean resources we XXXX longer to solar being do And deliver advantage the of in that inflation. energy our

So more we're And jurisdictions. to we'll these these RFPs, continue on in multiple RFPs following do excited our to RFPs. work

So giving call work on as and I'm stakeholders forward the you this process. our looking to through we everyone further updates and

a has that on the as O&M. see been in I O&M Perfect. And $X.XX maybe follow-up, then drag the a like about first the maybe quarter.

larger if year? that repairs by the the wondering the O&M Monticello was do and of the degree? through Just a how outage impacted maybe see you And of shape rest to

Monticello for repair the dollars a question. Yes. No, perspective. Thanks couple of cost a from Monticello -- million maybe

relative to the pretty So immaterial quarter.

deferrals last think O&M year, Part you unwound that as in year, some As so higher year then QX weather of invested of latter in due Texas. were last our it, to we that was got we had than the rates about good year. last regulatory later the is year, if last of year. at the in place part we pattern in also look in it significantly system And our of we

So think continue as we'll we to still and year-end that. our about guidance, it, with good on we're work

long is years. we're Now facing focused where term. something inflationary perspective feel that are a that we for overall, being think But build with XX important I it's we've to deliver year-end expect as pressures is on O&M customer on numbers said, good we are and very from and internally keeping we those done expenses as our down

go to [Mr. Next, we'll Greg of UBS. Orell]

you looking content? looking Is in transferability. is enables you're the move that the the you're Or clarification that basis it around to for of clarification something the forward. a there legal sort Getting Just for? terms of

we're terms of in all at guidance. call the I content. Not more looking would it for administrative

are Now transferability PTCs, we're said, or equity transferring tax very from there clean as may looking parties I but be we're partnerships other involved that perspective. in at ITC, a

to what they like want then need to see they so too, counterparties So do. guidance the registration our what okay, it's requirements know the just more and are

that administrative we that's give beyond getting concern waiting, guidance. our and to out those of the why nothing trigger and So we're just when requirements we'll pull be ready

is Levine question next coming from from The Ryan Citigroup. calling

that the ramp-up to as for the any you of color some regulatory to process the commission commission? QX compared the can or prior to potential change staff? And seeing give given how Mexico, were New new On what is there you're in the with guidance, processes settlement and

thanks Ryan, for the question.

about As of wide testimony. think range we it in Mexico, New intervenor a

starting from Look we the the point, a for staff I the of testimony, it think good at industrials large is think par some course. testimony. call that staff it's

think filed forward standards. I the from is perspective, key test year. think different of which test I one And a forward there's year support from historical construct we the aspects is

and in reach and see So a perspective. parties just have constructive from it, got settlement digested is last we'll an absolutely, a then the work Friday, the testimony opportunity with balanced outcome if to there and

look we the are hearings XX. you If at have June -- schedule

-- now so would in in look parties reached a with in actually a be customers. XX, of rate And New from get looking we've that for opportunities. settlement period on forward their of balanced settlement been it certainly stipulation and we've in and But Mexico terms our it's at to to kind June the native, couple outcome our cases of working a last until

part late second of the guidance. effect guidance. This XXXX into The around year, so on your goes relatively in impact was small question

the to But timeline... risk decision, 'XX Okay. fourth timeline, is that do there's think that you from regulatory quarter any a

a no, do timeline From perspective, not. I No.

In terms getting out. it of pushed

I out mean, the Ryan, a moved has month. already schedule

we it way think So it's fine the is.

that Okay. are seeing weather-normalized And New for load for what then on you Mexico, region?

our for C&I on if in sales strong sales about quarter think – X% side, on C&I the quarter. were right? up sales year-over-year I had particularly the you looked overall, sales very is SPS, plus at Resi So – We X%.

what on than higher with was Commercial pretty line we side the expectations much was in that residential expected. side. Now

really Texas growth, with oil that region the patch and strong what in than weighted Delaware in the Mexico New is we’re seeing growth So more Basin. of towards

the from count X up we in and rig the Lee. serve, XX% are year-over-year rigs counties about Eddy Now

footprint. the have also And Mexico as electrification their overall we’re and can oil New is hitting they’re state they their a working requests carbon large improve own the lot obviously seeing of targets and carbon reduction gas how customers of with then

there, we’re and them to with working and we that with that doing make can we the and So our everything need support sure customers can really to growth distribution investments transmission good we make.

question Paul next Our Patterson coming Associates. from is calling from Mr. Glenrock

Can me? you hear

Paul. Yes,

moving just it? in do the mean guys didn't done I earlier. Tuesday, if guys quickly. you I with Are you apologize are guys you to apologize bill, actually mean, point? amendments were additional I -- look if pretty for you it on but wasn't back guys with that changes this if get I this are you So the is just at Or -- the addressed Colorado this -- I I bill okay

I comment think, make the it -- the Senate there. were workable, amendments concerns perspective. and from as bill Paul, new no it's our bill didn't that We Bob. but I passed earlier provided the the

We work and to to much stands with. watch But the it very a legislation through we for of now, through the the work if implement commission lot it moves that as staff We right some can with process. house continue I regulatory think as that still the CPUC something the process. decision-making, we leaves it's there at it and would think

thoughts associated then And the you of bill the in any wondering given Great. -- feedback or if of proposal But that's sort in and some Okay. something about -- the guys company's more that to you have Colorado of have just of have part you particularly commission in the your experience that. thought a California. bill novel any might of just I'm idea with of any experience California, jurisdictions. income. sort if about at given And management their your least

Paul. Thanks, Yes.

stratification an talking residential from you’re perspective. about income customers think I of

agency And see changes think any I proposing is regulatory lot I process, to think, this in that federal don’t us do this pretty state that at and regard has a assistance through the point, income-qualified mitigate customers. at stratification customer direct we of worked point. programs what to I well. we

additional the questions, closing any Brian remarks. we As further no this have Thank for to time, Van call at over back you. Mr. turn I'll Abel

in participating our with contact morning. earnings team questions. Please this follow-up Investor for everyone, our any Thanks, call Relations

Thank Ladies for Thanks today's conclude your will conference. you and attendance. gentlemen, very that much.

may now a Goodbye. Have good disconnect. You day.