Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights on the impact of renewable permitting and siting on your projects, and what's embedded in your plan from a transferability perspective? A: Robert Frenzel, CEO: We support broad energy strategies and permanent reform to build necessary infrastructure. Our projects are not on federal lands, and our permitting needs are light for wind, solar, and storage. We expect our capital plan for 2025 and beyond to remain intact. Brian Van Abel, CFO, added that they have $700 million annually in transferability embedded in forecasts.
Q: How do you view the potential for federal wildfire policy changes and their impact on Xcel Energy? A: Robert Frenzel, CEO: The California fires have highlighted the need for solutions at both federal and state levels. We are engaged in active dialogues to protect customers and communities. Federal efforts may focus on setting standards and insurance backstops, while state discussions involve roles and responsibilities for wildfire mitigation.
Q: What are your thoughts on adding incremental gas-fired generation to meet higher-than-expected load growth? A: Robert Frenzel, CEO: We continue to focus on achieving 80% carbon reduction by 2030, but dispatchable resources like gas are necessary. We plan to add peaking gas resources and convert some coal stations to gas, maintaining a sustainability footprint while addressing load growth.
Q: Can you elaborate on the tone of conversations with data center customers and the impact on your sales growth outlook? A: Brian Van Abel, CFO: We have signed contracts for about 50% of our new data center capacity and expect to execute the remaining contracts by fall. The tone with data center customers remains positive, with no slowdown in demand. We anticipate a data center in every operating company, contributing to our long-term sales growth.
Q: How are you addressing labor availability for your capital projects? A: Robert Frenzel, CEO: We are actively working with trade organizations and educational institutions to secure the necessary talent. Our efforts include partnerships with vendor partners and recruitment at various educational levels to ensure we have the human capital needed for our build-out.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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