Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: With the Arkansas generation bill, do you feel the state is now fully competitive on the data center front, and have there been any inbounds thus far? A: Andrew Marsh, CEO: We feel that Arkansas is fully competitive now, and we are in discussions with potential customers. There is significant interest in the state.
Q: Regarding the financing updates, does the acceleration of equity imply an improvement in credit metrics or other changes? A: Kimberly Fontan, CFO: There hasn't been a significant change in the timing of equity needs. We contracted forward into 2027, and our credit metrics through 2028 continue to build towards 15%. The forward volume in Q1 was about taking risk off the table amid volatility.
Q: Can you discuss the drivers behind the residential sales increase and any macro factors affecting industrial activity? A: Kimberly Fontan, CFO: Residential sales are expected to grow about 1% for the full year, with overall sales at 5.5%. Industrial sales have shown over 5% growth for 15 years, and recent customer announcements underscore ongoing opportunities despite macro uncertainties.
Q: How quickly can you offer service to new large load customers, and what is the tariff exposure's impact on earnings? A: Andrew Marsh, CEO: We have queue positions to provide generation, with opportunities for customers in the 2028-2029 timeframe. Kimberly Fontan, CFO: Most tariff exposure is tied to new generation components in 2027-2028, giving us time to mitigate impacts, so we don't see a significant earnings effect.
Q: Are you trending higher in the fiscal 2025 plan given the strong start, and what about the potential for settling issues in the new customer generation transmission filing? A: Kimberly Fontan, CFO: We had a good start, but we use that flexibility to manage business uncertainty. We are comfortable with our outlooks. Andrew Marsh, CEO: There is potential to settle, and we prefer that, but we are confident in managing the process for a beneficial outcome.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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