Financial Data and Key Metrics Changes - The company earned $1.58 per share in Q2 2025, a decrease of $0.18 compared to Q2 2024, primarily due to weather, O&M costs, share issuance, pension and OCAD non-service credits, income taxes, and D&A [15][16] - Weather normalized sales increased by 5.2% year-over-year, solidly within the guidance range of 4% to 6% [17][19] - The company experienced a 2.4% customer growth in Q2 2025, with strong in-migration and population growth in Arizona [18][19] Business Line Data and Key Metrics Changes - The company reported strong sales growth from both residential and commercial & industrial (C&I) customer classes, with C&I showing robust growth at 8% for the quarter [17] - O&M costs were higher this quarter due to the timing of a planned major outage at the 4 Corners plant, but the company anticipates balanced spending aligned with O&M guidance in the second half of the year [20] Market Data and Key Metrics Changes - Arizona's economic backdrop remains strong, with a projected 24,000 jobs created and over $31 billion in business investments in the state [7] - Phoenix ranked in the top three among the hottest new home markets for 2025, indicating strong demand for utility services [18] Company Strategy and Development Direction - The company updated its clean energy goal from zero carbon to carbon neutral by 1950, focusing on reliability and affordability for customers [11] - The company is investing in transmission infrastructure to support growth and reliability, with a significant increase in capital investment planned for transmission projects [10][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term sales growth guidance of 4% to 6% through 2027, supported by strong economic conditions and customer growth [19] - The company is focused on reducing regulatory lag and controlling costs while ensuring reliable service for customers [13][14] Other Important Information - The company filed a rate case requesting an increase of annual revenue of $580 million, with rates expected to be in effect in 2026 [12] - The company has secured a critical pipeline project to support natural gas generation and regional energy reliability [9][10] Q&A Session Summary Question: Can you elaborate on the pipeline project and its implications? - The pipeline is a critical strategic commitment for long-term reliable natural gas supply, supporting generation and transmission needed for state growth [27][28] Question: What is the expected timeline for the rate case and regulatory lag? - The rate case is expected to conclude in 2026, with the first ability to file a formula rate adjustment based on updated costs anticipated in 2027 [46] Question: How much capacity can the pipeline serve into the early 2030s? - The pipeline will support close to 4.5 gigawatts of committed customer demand and nearly 20 gigawatts of uncommitted queue requests [49] Question: What are the risks if uncommitted growth projects do not materialize? - The pipeline is essential for long-term reliability for existing customers, regardless of uncommitted growth projects [87] Question: When will the company provide guidance for 2026? - The company expects to provide earnings guidance for 2026 during the third quarter call, following the procedural schedule of the rate case [96]