Xcel Energy (XEL) 1 Aug 242024 Q2 Earnings call transcript

Hello, and welcome to the Xcel Energy Second Quarter 2024 Earnings Conference Call. My name is George. I'll be coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions]. I'd now like to hand the call over to your host, Mr. Treasurer Relations President, conference. begin Vice Johnson, and to Investor this Paul go sir. Please ahead,

Good to Thank Second 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,

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

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

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

long-term remains business Our robust. model

our risk to by communities. Xcel leader. more challenging our anchored customers. and and safer most and a the infrastructure. powered continue as We enable for meeting pure-play storm customers' weather an reduction thesis strong utility despite development, resilient and investment economic is and measures deploy our and communities. clean reliability our quarter, capable our resilient per by integrated energy owners. products wildfire intelligent invested $X.XX services to recent enable a the We accelerated investors We response delivered resilient our commitment reliable energy we more We most We of customers our stakeholders to earnings conditions cleaner and of benefit to We core for encourage and Energy's for communities capital $X.X important fuels billion grid. industry-leading share a with future partner customer we of in and needs. In provided provide

we've wind for years, the For leading U.S. year. of guidance industry, commit and our a our two delivered we of XX earnings straight a we the We it were best to energy customers, to company future. more XX this decades, carbon-free provider first records in than electric to one to been energy look and make our

a plan, making our transparent investments clean have We programs operating economic energy enhanced and $XXX saved improvement support XXXX, reducing in have communities to expense, long-term risk. growth to recurring O&M and while new programs generation grids in vitality. In million our improving and and development continuous enterprise outcomes

and customer XX% Our electric XX% more reaffirming earnings With XX,XXX-plus than savings steel growth gas below commitment billion the residential we guidance. in support reduce for result, we're industry This earnings, are employees a average XXXX the well and our to and below rate state $X.XX emissions as year-to-date and to and strategy our of and customers, of delivered discipline keep federal XXXX. ahead XXXX policies fuel-related inflation. $X alongside us enables fuel since bills of natural serving

we enabling what generation in Since expect megawatts of proud company-owned of we due firm our resources a RFPs issued last ]. March, and to expect been megawatts be a conduct X,XXX daily incredibly for XXXX. Last continued Texas in as locations. safety end and X,XXX solar to intelligence resources situational the pole conditions. commission four recent expands integrates scope, an capacity XXXX. accredited mitigation over monitoring. for has first the our modeling, that now issued and Operational triangulation risk Colorado, our Midwest plan storage of artificial the expect I of cameras our of Texas, by pace of and megawatts continuous camera improved due that in During fire of line Pano mitigations events are X dispatchable we've including We've mapping and other New risk. able X of PSPS resiliency team and I'm and of threatening And experience our incorporates January to ability SPS programs methodologies, filed between remediation, deliver on commissions enterprise-wide 'XX, the the middle processes. information, RFP scale increased Bids the time. miles risk accomplish Colorado, number approved updated poles megawatts of an enhanced awareness, shutoff area are power asset and wildfire and operations programs amount expected settings include solar, sharing to in expanding power XXX generation. and X,XXX RFP primary across resiliency seeking We in improved Pole in of line wildfire meteorology, Mexico our coordination, as have X,XXX short public renewables The include that risk the have And quarter, Priority and Priority inspections, in technology taking with [ customers access over has safety, the more critical megawatts in safety we've hybrid approval real-time XX,XXX and to stakeholders as in and Mexico reduce new Technosylva's by we recently active that's service the and across plan XXXX. We're and initiatives vegetation ] public and and reduce during as In is capability to power upper Midwest. could week, safety an adds and and system clean enhanced assessment well September, commission XXXX industry deployment undergrounding shutoff data proactive and technology management well the than capabilities, We decisions including system replacements, risk. evolving operational rebates. and through rebuilds, as upper to quarter, targeted planning transition through assessment precision resource RFP square to that enterprise it evidenced Energy year. We These responders modeling which AI-enabled replacing visual discussed [ wildfire it with yield progress system. of wind, accelerated ultimately wildfire multiple coverage system energy accelerated enhanced in developed Colorado Xcel to we

year with of developing that file to the include are our wildfire later and expect wildfire plans mitigation mitigation former this plans We rest for SPS resiliency states. will

communities the companies financial the risks weather enhance these that evolving essential protecting integrity to on Finally, level services. state federal we're the while provide stakeholders working of at legislation and both of with our safety from

years relatively Moving seeing our flat a material growth. to shift long-term sales of economic development. in on after We're several system demand electric

Meta XXXX. data of X%. center requests this We adoption, center QTS X-year data by gas oil Microsoft believe deals others. requests sales growth approximately a now X% vehicle our electric Colorado If of well that production, forecast electric given to is Nearly contracted The and current came as driven and beneficial customer sales be megawatts totaling annual of electrification, as data half over in announced electrification and by growth. forecast center of growth X,XXX and economic data high-probability natural Our increasing fruition, Minnesota growth of of is center assumes that driven pipeline by and conservative all CAGR is and previously the load, remainder counts. in including would

infrastructure, center through We with ensuring economic availability secure to the the to and strategically water and we continue power access investment focus have to renewable to both high-quality land to updating market. capital contracts on quarter on our positioned fiber system and sales low-cost call. Xcel generation, load we'll our request resources working customers, and is to unencumbered the safe, data communities. speed economic continue the plan our and due and third same all impacts the provide our partners to on clean of At forecast reliable time, Energy to

necessary there with This Energy the Colorado passed by more process and transportation advocates, During well distributed labor partners, to as environmental was regulatory electrification investments bill result enabling electric extensive quarter, policy that gas others. state including recover Association provide utilities distribution Storage to make Colorado and IBW WRA resilient qualified Solar energy natural distribution outcomes First, two enables system, cleaner supported timely for that and goals, as Colorado electric a the resources. our were stakeholder and the building achieve office, the NRDC and of and and

Colorado. from these the forward Second, approved, plant, We greenhouse million a to Commission distribution primarily was clean to goals which meet sets system. gas which of heat efficiency. our electrification natural starting implement Colorado initiatives our gas for up approved for establishes and working and regulators Full budget natural point long-term sustainability emissions beneficial year in look with gas $XXX the the to stakeholders funding to reducing modified

over Energy. we look and With turn the Finally, deeply for will XXth pursuit Xcel communities. services and employees We're for sustainability report. committed and our our and hard released energy affordable, live And the communities environment and shareholders and to our continue clean energy at vision the energy future. to our change supports that, recently long-term value need We Brian. as of the which relentless in remain in commitment an our work. history deliver I'm of work while to essential delivering to value we forward, to positive driving customers that proud appreciative thankful reliable we and of our we're our and partners I'll it deliver sustainable a

capital $X.XX most for morning, to were for electric to per Bob, depreciation The $X.XX interest other had Higher to cases investments gas O&M compared revenues earnings share. per cases per Offsetting our decreased earnings amortization decreased following: Higher share per financial per per by programs. riders of Higher combined $X.XX increased positive decreased reduce $X.XX and rate rate everyone. the of and per capital by earnings share the reflecting combined share. Xcel by earnings Energy increased and good earnings revenues and $X.XX increase second the to share. quarter these natural in drivers significant our by XXXX. Thanks, quarter per from $X.XX $X.XX XXXX from per share by results. by share, earnings earnings $X.XX Starting earnings $X.XX with earnings higher charges share, expenses share. AFUDC investment and recover drivers factors included by

of oil and reflect weather sales Year-to-date electric along Turning discussion. SPS. C&I and data Minnesota for X.X% the natural in expected Colorado, half a and year in center we C&I updating our term, to gas by sector, increases XXXX loads load forecast second leap X% Longer demand by robust continue and with our electrification increased X.X%. sales sales in to see We're adjusted the natural driven gas sales decreased with year. and our increase in by electric to

progress make uncontested decision end natural a rate case of on with is July. to continued our we September. gas X.X% settlement providing our June, we we XX.X% in In on final a reached rate by quarter, scheduled an and ratio. at There's increase expected million deadline a the based case, year-end. equity relatively a the Colorado $XX received During ROE light calendar. Minnesota a rate settlement The natural commission intervener in for testimony case, August hearing gas In

fourth first the cases. us decision $XX This future will distribution frequency And We the expect allow approved our request. rider Texas represents to it our we Commission of in expect requests distribution in rate commission Texas, million and the July, a rider in reduce quarter.

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

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

liability fire. we insurance As coverage approximately for a of the reminder, excess $XXX have million

our reaffirming to our to is share, are XXXX $X.XX with long-term range EPS objective $X.XX we X%. of Finally, of consistent per growth guidance earnings which X%

are the which addition, we've wrap in that, release. With earnings I'll our detailed to summary. up key with reflect updated In assumptions quick latest a information,

actions reliability XX capital enhancing We and We're our resiliency proactively within communities. investment our our generation, can range deliver expect to to We're above prepared including to in economic and have to continue range take the distribution support development manage customers to of at long-term executing on X% from guidance our mitigation earnings protect to or remarks. we our our earnings top now extreme risk growth end weather. questions. remain transmission plan, and to for our years. to past the confident support XXXX. This clean starting we'll systems deliver X% XXXX the wildfire concludes as Operator, our We we

[Operator question Tonet Instructions] Our coming Jeremy first of is from JPMorgan.

How do the certain right I to wildfires, improve wanted stands there. off wildfire were system? parts the even focus? just do I and Or system kind guess, then there's over could, now? there How seems risk And some mitigation of across start the expect it with in time now. like you risk is you to, if with think finally, are fires I Colorado ] [ plan, in it mitigation

wondering if way? your was of any Just in any equipment involved

a Look, the provide we in focus and on over question. have us and been prepared remarks, I'm But Colorado. and working to of going one four huge to shouldn't I to the our that need appreciate taken on second Texas in to we today the enhancements than I We as around wildfire what years. our Mexico that ahead in Yes, time. reduction plan, system risk there. give said anything necessary plans and we've we're really in we're side Clearly, the system operational also make the over filed real-time accomplish the that time our further proud for resiliency be just other first as hardening my for mitigation

a do have come by Our enterprise, work the on real-time benefited reduction. which to front safety of drives the that as all California. We're company risk operations us capability hard in across and the daily wildfire people entire basis of in PSPS a exists

these all expect risk others been We to some learned of doing backdrop necessary lessons organizations. based reduce a their and and and our of on more continue help the we helping and business. to to pursue from there dramatically our accommodating the and us our than across They've real the wildfire to those is experiences Clearly, us supportive reduce think country. investments need states evidence, there's risk in

And Jeremy, this is Brian.

Just the were about from of our part the in more a assets mile points. second of ignition on question your current away fires those than any Colorado, believed

the center wanted outlined just are data when pivot accelerating little I opportunity, opportunities to there, to the a as market. it you here discussed you the then like And with from bit seems it

helpful. a bit you're you seeing where more if be and just wondering that And across could any that's Just your footprint frame more would what happening? color

Right really in when X capital, territories seeing reasons for Obviously, they're territory deeper low-cost is states attractive in that and all we're questions. materialize access hyperscalers Bob different a speak fiber very Minnesota most across other all I land Yes, believe footprint, across of but all know data [ center other to I again. access water have with Colorado energy, seeing. to Jeremy, service excited of Look, call developers, our infrastructure, your we're if the opportunities backlog, human But of we attractive. and and of service clean our looking what our about makes us for ] have we now, we in we're states. say, don't we all what our them. I of would

Jeremy, on Yes. expand little a I just can bit. that

months a today, pop earnings is could If couple that release center had in slide of we which you we from the slide ago. our updated the data that put

increase You requests. the in can see customer it's a significant

We're Bob and outside now biggest Dakota. and South significant in growing. the opportunity Wisconsin of Colorado opportunity it's seeing even expanding Minnesota said, and now in As Minnesota, was

think And development our long-term updating so sales we're will our forecast roll working with economic right out about now, in as it closely QX. which internally team. We we're

and range in to like that long-term sales now incorporate out X-year range. some more loads I our guidance. that sales forecast these the X% probability is the roll long-term we look our X% Our right expect we X% to into of when X% would high forecast as to base

meet have how benefit both our around communities The our work we we example opportunity and more look Just another planning our here customers opportunity has development how proactively Minnesota provide they commissions. do this Minnesota we sessions publicly for investment. current accommodate for economic commission and how didn't do about of in also good and with to stated, to create all

company. I theme Jeremy, part our I've think And a pertains as this of about broader to much it talking is that been

centers country of that's data costs that are that in those cleaner, footprint almost overly to at for view put green would right parts we at criteria could energy our I some the the where energy-intensive sits that industry and today, and lower be energy co-locate and any straddle. point you are If going that true looking suggest across they're

And of if as energy as direct clean so look in means isn't headquarter and as where get or like could well as critical. carbon itself other in transportation hydrogen probably mitigation, their a production, stuff manufacturing as see to our at you a we backyard capture itself you that of lot locating

forecast we beneficially country serve. that I parts of the to the that are not think our all should development opportunities are those of think economic that areas accrue but we in

to Goldman move Sachs. We'll Davenport Carly of

follow just share there wildfire front, wildfire couple a so of first just you you then is had near on mitigation take far you stakeholders, resiliency can other sort you're you on Can the any where in of wildfire plan on Maybe additional to that most what there. just from might up file Jeremy's Wanted states. term? the mitigation questions filed feedback And and focused Colorado? talk forms in or mentioned the about plans to system plans in

[ this starting in call been discovery It's filing requests. Carly, getting mitigation and the is But see and work plan Brian. now positive. the from, Colorado. in process has overall, wildfire the we're in scope world We're some the about think ] it, we just to the the responders first early community

the Pano to very risk but get protect responders there's helped communities customers. identify is the by recent our and Our utility, our work AI first out some been -- them has fire where investment already not fires the in helped and mitigate started cameras and articles with proactively

been we're our developing on supportive. to pivoting right your is will process. Kind has in our the second next again, the But the question, now is plan. plan part said, it system which of early focusing resiliency of of overall, wildfire Texas, in is incorporate mitigation I what So I kind think like

wildfire this look in like plans. filing similar of the Midwest file the this in which mitigation rate Minnesota about a plan year So that working wildfire New year. a we through in as think it for what Mexico for November can be of in our and then Minnesota mitigation later We look will we'll later will lot and year, incorporate into in multiyear case too, this

just is into data the for then Could you load said is working second a another guess, talk down pipeline broader estimate, about request the for bit center near-term the way, one of estimate? And I that bar on in growth the load pipeline? Or into little your piece. your sort your just growth the process what including goes load which in

Yes.

which, think you bit and for of of a for Meta on have you that's I'll slide near-term called we maybe one, And little parcel consider a if QTS our example, our -- included So probability. earnings have is example, a We X-year we pipeline give to that with in kind of color. in them. contract And them, what we've XX% forecast. highlighted land deck then something we sold is

very everything in into come to do companies our these next our have then sales the sales X team our very our this operating above closely going development that and within forecast we And So forecast. is not it's with probability customers. economic high that with working And years.

So opportunity high we a load. above there's call huge probability what XX%

that's bit a so color. of little And

more some you we included opportunity into view kind that to stuff we [ base we today probability of our continue drop time, of forecast. we what march XX% as think in don't that an becomes and through ] So of the as

of [ will from question be Jefferies. next today Julien Our ] Dumula-Smith coming

that through instance, just here up pick of here. that to lifted your processes? [ For you do probability How know we about think I currently ] off weighting Maybe filtering where on relative much growth as of the do SPS, would more gigawatt centers. into about instance, in filter emphasize context XQ, as data processes like numbers the for you seems the now? didn't working sort of kind guys But that the you that have you for were X the think how to you load even Effectively, and that to updated does be what through right you're here how flight in pro for of with a forma probability there address out need already perhaps update the pressing throwing of weight process getting necessary? the given RFPs need that you procurement number

Brian Yes. I'll and add on. can Julien, so start then

pretty think opportunities capital we've you this opportunities. investment well taken the sales in conservative forecasting approach company I pretty case, generally whether was a to know it

a now and update process Our towards well is alive call. is in third comprehensive earnings and right quarter the geared

the our sales question expect update whether that's results we'd our forecast RFP extent in wildfire and we serve for, Carly's driven well our whether our forecast, sales the growth that capital whether to resiliency and funnel then coming so to through roll customers by needs as see new needs reliability into high probability And investment we needs on as forward the load the all mitigation capital Brian our that's time. plans, on that that's plans or walked as as of

So quarter expect something from end the third of all a at on us look quarter the the into fourth fulsome the parameters. at enterprise-wide

a little just all about example, RFPs in the think flight, to that we for let Minnesota. add me bit. If have Julien, we

We rapidly looking RFPs while this load at evolving. that's flight multiple in new have potential we're

we a load of we're base in what which view, with have we filing kind Commission, view. provided go in we high as we that electrification So resource through call the a but in a these Minnesota RFPs opportunity and also plan

flight SPS. We for have we resources and So over and work capacity. similar move an quickly of our staff X,XXX RFP the just with us that on followed in helps in accredited megawatts secure processes stakeholders,

with that in in range see load we're Mexico because this see Now also working that's our oil megawatt and up New that of customers. to us high working base customers. plan with oil we but gas there, XX,XXX capacity gas about and why plan, our you And SPS talking a X,XXX nameplate resource our a all was on based had plan electrification that

a Minnesota, oil much is in potential in Midwest opportunity. an in the and the SPS of center So electrification more gas Colorado, we're of industry. more is data much there, Down

here. of of on implementation side Colorado legislative this, and nicely ROE the that given basis think you over time? do time you you effort other the line done some just or the basis, said improving the do have How of how of on X% legislation on in trailing a about that this legislation maybe then And from XX number sub earned what think points about here

and really is , Julien, of just this good legislation stakeholders. a say and coalition back take piece now maybe by step a I'll a supported broad just of

As sector, we a of kind we electrification support policy and group it's expectation, advance whether electrification it, this transport around passage broad legislation. home heating of think about how of get the really help do that's state beneficial and to with stakeholders very so of of worked

about investments need their plan a is we legislation can think in of of and this penetration about think to distribution for and capacity [ how ] system basis the we'll this it we the system a it really of different levels above I be. accelerated make do how distribution As that there is it, Colorado, the of of and in kind resource which almost plan November think file some

And so in we'll November, that file that. through work

will past full few implemented we ROE think needed over Colorado the we've in And of earned system our to XXXX drive when the from now so -- forward. And there's about about X% approximately years. perspective, a investments distribution rider be kind the an earned around

achieve about kind that and the closure it's as think said, go really decarbonization XXXX us drive implemented. we recovery fully other this too. renewable policy investments our will to it that investments like when we concur we through significant as could about goals a But as think I we also of help So help drive have making of of transition we're we're state the and the that in state making investments Colorado gap

help investments that that too. will those as up, ramp so gap And close

Karp KeyBanc. Sophie move now We'll to from

the to have going I a back trend. centers question data

a is acceleration what comfortable at sort point which into sales that you guess of leap? would making the the be of earnings trends loan I point there incremental at growth and this growth So translates

Yes.

data our So having mean, in think data new the the adding about benefit data to customers -- having demonstrates going to commission as current One the customers. of really about provide centers opportunity all center that on the it, I the right and that's contracts ways. think is centers system. this really benefit benefit I two to contract getting right? our And demonstrate to with important I

absolutely, these These Now or longer term, large to we are investment here investment customers. need an opportunity there's support loads.

so both a forecast talk loads translate about now, we're into through our high forecast. it, from, probability and And that I sales and as moving the how the perspective planning think I as did process capital right about

So I bolt-on capital a the and expect plan question. broader that that us forecast update your sales and from address QX, plan help in should X-year

types the on And not of for, if soon then in, be generation guess, coming new load level to more do a think generation regulators you going interruptible. this question. With see all is be higher more not I'm sure additions? But or and need load grade would gas-fired to those your interruptible you how I the anytime and receptive do

Bob. it's Sophie,

I sun our sure most that we when do resource or we increasing wind to as our area is for plans, a by think needs reliability for sit storage recent that make that resource turbines our we and the and -- solar. evidenced serve So look, see questions. in resources. up rich the great and But unavailable. wind back have to the or serve incremental customers have combustion storage We

in to sure So increased policy back. have coming up resource of we ERPs Colorado, think I incremental our upper CTs our in the And plan recent in like recent load we're the most Midwest, here insurance backup networks and energy we for almost magnitude reliable of affordable see about, numbers our actually make an would that for generation, all. have talking increased as we with

now? from plans add to But no CCGTs

that again? can you sorry, say I'm

add to CCGTs, cycle? plans combined No

combined any any what today resource evaluate add to the No. don't I probability to we But plans and have network. availability to this At point, load real it. we of have serve to cycles is our the mean,

say that is table. wouldn't I off but anything today, not So the

[ from calling Oral take ] Greg now from questions UBS. We'll

are Just -- are moving fire of way -- groups sort -- going of timing those how working think you're terms of there thinking that and your about do How regarding that in Smokehouse process? kind you you of and resolving precedential? kind whether the are are through about forward, how just the settlements, and any

some Greg, color provide I can on that.

So reached those settlement XXX and we're those XX claims. expeditiously through and on of have settled, claims moving already

I to how spanned, to variety so everything look items, a And at agriculture from fencing personal claims feed, it, property. these call have buildings, homes cattle, it,

but a and it, support I settled good point us so of XX we the point. data is pretty our point reassess encompassing, a think liability gives about important accrual. far the while it is claims not as our help well, And good think data -- so and So all $XXX validate it million

Another And in [ an the was was data the the agricultural covered that point, it -- Texas Agralife that of extension. estimate received report ] report A&M economic losses from QX entire that a feed, agriculture included $XXX for for from very down And report buckets, of And agricultural complex cattle, value large losses. the some million of that there. report structures. fires

that we does and we've at number and our accrual, what assumptions. our And support when look included that it for report, so

And move to we QX, we through so information [ that's try updates the time. latest have we'll and ] through continue as

be question calling coming Campanella Nick from from Barclays. next will Our

point? that fully just to mind settle you're a I'm not you're just hopped ability follow-up. something I progressing to? And repeating gas, through this but your in first, Colorado Or at I this this on pass? taking is one so others, late, what's open Is hopefully that the then have just litigated as

are certainly look our recently. interveners we the [ And yes, deadline with a settlement received a XX. of we attempt August reach We stakeholders to of forward Nick, with and to working to intervenor testimony Yes. ] sort settlement. relatively

be in through Also the in we decision middle need to, few of fully if So cases hopeful go ready end CPUC process the so we're that'd the we we've in reached settlement can this by litigated this that year. September the and hearings reach settlement. Colorado, past to

I guess a on the if priced I year rest then here ask use financing primary I the is of the ATM And needs? quickly. your the in terms vehicle could in know just equity to for quarter. ATM bit the of you of little

CFO the through content We'll But I vehicle. doesn't we overall block. as Yes. look if I debt be look but where ATM the other the mean at our plan. mean of primary time. our will a opportunistic our at there's XX% wouldn't is is potential equity ATM also be right. also to at go products some It we

have issuing metrics, when we strong why as sheet and terms look flexibility a we equity. strong maintain credit given we flexibility, can in that's Now we balance at have of we have

We'll calling Miller Morningstar. go to from now Travis

or the I on there side. any learned on timing any be applied lessons was that tied settlement requests wonder in to electric that, and case update timing could electric gas from the case any Minnesota if or or then a plans takeaways to for the rate

November sort on for Travis. looking multiyear electric the -- a Yes, plan planning side. of we're X on filing we're

X If you remember, year of multiyear now. our in we're plan right

So we've communicated that.

the we to able with see think on to been no, going gas a As settlement we've to reach we parties, constructive if we're about gas side, always side. the look the and

that's So good a I think we data think it. as about point

intervenor through days direct early we I but filing testimony, November the look we'll Minnesota. we an there's settle. it's once testimony opportunity if process kind to the So to think filing, X given of that certainly yet, get see robotic But or longer in haven't made

however it RFPs, process to center, much going is X,XXX to regulatory rig proceedings, And whether or that terms talking planning how about how sensitivity you're then all just in was the it's being up the Minnesota, to ends requests of on potential, proceedings? it's in much regulatory is sensitive that back number what whether that and that data cases,

make make able about sure our as to economically have Travis, system sure us, that today. front load X,XXX of We megawatts obligation is to today. think XX, customers it's opportunity when we Bob. in Look, we don't our as peak fairly. I'll here I the is were the everyone current -- that's well our honest, and of serve is XX be capacity future we're available that don't and have gigawatt treated customers company

We and our add have plans RFPs to stack. we to, the need to part some, more of resource as but would existing generation

resource So take planning and regulatory a that process. would a process

and we've and with can years, do sure make think I efficiency to our or proven that do address X our of that needs X the to expanding customers states. our the that we over last ability

[ to will they needs new the might processes generation we customers market in allow to plans the think the us that the as that as need decade. that we that But through over of today time. need our place I address forecast speed growth So well are the have ] and end

capacity. And then transmission real distribution quick, just

also is Or a about talked enough that T&D? there generation capacity, You would constraint? be

transmission ] customers [ aggressively, largely, our upper approved processes to MISO pretty there. in through Southwest of grid the then got, it's Pool whether we're we've transmission [ needs. And proceedings today. Power transmission LRTP Colorado needs more been grid pathway our transmission on capacity and [ and expanding up customers the work in build largely In as on jurisdictions, these transition the are the down here talk we'll what's meet So other in Fiesco well so the ] U.S. and again, the some today to all power ] in come with our SPS as what's and their

capacity got we've full today available, but the flight. extent think X,XXX. Again, I So of not in the transmission the is

make ramped high sure our the needs. our probability transmission to are what goal to customer according So is generation needs becomes

from question next will Our Levine be coming Citi. from Ryan calling

vein, territories? could center design services, role color mentioned on earlier you economic the rate that signal your a load around of this broadly for class? similar you and data does the in share structure customer In And certain an VPPs across do a what center answer, data opportunity, Any see Xcel you opportunity? more development ability service impacting for rate Colorado

of part about we was but data seemed Ryan, your as it loads. the question, question up rate first part second you the think of around design on the broke like your these center

from be receive than to So the is these so and a comes we to approached far, data need covers being that more that principle that revenue But ] can make the unique. it basis, the incremental centers on that cost sure contract-by-contract [ that system. we we've our

what a type they're don't they that contract. to So the simply going load deliver these. contract, whether our the you they that deliver if not provision said current in by harmed I means a have ratchet adding on that's And mean take-or-pay is are customers or a

wouldn't So to you commission but up. is catch couldn't current to these best that in if is conversations, we the -- of interest are need something that our I fluid the customers. And our principle bring

your broke if be You bit you part on would helpful. question, second so it could repeat the of a it, little

the impacting center Sure. What load see Xcel service to role this ability do of and territories? data service in your you Colorado across VPPs

we Look, tool I it. mean I think demand-side VPPs as can another be think about management almost

be and was in study to our VPPs. work do role So some there we legislation could there. I know distribution part of planning around Colorado think a that

think role play the a in they absolutely I So can future.

if some potential interruptible it have like think you large about Just could period. an of this load you uncertainty load on

of we loan sort about you I that opportunity So overall think significant of address side the of there's umbrella in management more in tools future. our to think growth a demand lot as see this

we And today, almost our demand is load of Colorado management available for have Ryan, XX% tools already. peak in

And so and we'll the work as just Colorado. commission Brian distribution continue was said, bill that to with providers to passed with

an full do Colorado. there's So in in already program opportunity demand have we here, but a existence response very

in And or evolving do implementation has wildfire will risk percentage And coming of years? you of then do the what you have this reduced historical risk current see be by been WMP? how a of quantifying the reduced the way

quantitative a my today. think don't I in But we've as I number remarks. made for prepared you got

operational like in do real-time and we to operational risk mitigation wildfire just piece we over got the some our surgical in what on situational our about system. do plans tools make operational surgical less and we time. so think business. the things and the And that of this that and a We that time affords us hardening customer and we time. that's Today, today enhanced of our place are wildfire to awareness more more daily As blood in over use those they're the use impactful the we'd get reduce mitigations to is them want a tools tools dramatically go have tools some pretty I to in do big enterprise-wide, of then put basis, to

if say leading reduce and that the what wildfire utilities we in Ryan, our in WMP risk [ you ] of plan in plan And our will see investments space. this that mitigation similar Yes. run to the we Colorado,

turn I'll to this further closing back Brian at do questions remarks. We any time. call Abel have the Van not CFO, for

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

Thank may conference. you now and gentlemen, much, concludes wish We Ladies a good sir. day, disconnect. everyone very that today's you and