Financial Data and Key Metrics Changes - The company reported adjusted earnings of $5.27 per share for 2025, an increase of $0.39 per share compared to 2024 adjusted earnings [3][15] - Weather positively impacted utility earnings by approximately $0.35 relative to last year, with a favorable impact of $0.10 in 2025 compared to a $0.25 unfavorable impact in 2024 [15][16] - The company expects long-term earnings per share growth of 7%-8% annually from 2026 to 2030, with acceleration to the upper half of the range starting in 2028 [9][22] Business Line Data and Key Metrics Changes - Adjusted earnings from utility operations increased by $0.63 in 2025 compared to 2024, driven by rate-based growth and weather impacts [15] - Earnings from the American Transmission Company increased by $0.02 due to continued capital investment [17] - The energy infrastructure segment saw a $0.10 increase in earnings from higher production tax credits associated with solar generation projects [17] Market Data and Key Metrics Changes - Retail electric deliveries in Wisconsin increased by 1.1% year-over-year, with projections for 2026 indicating a growth of 1.6% from 2025 levels [16] - The company is projecting a total of 3.9 gigawatts of electric demand growth in its five-year plan, driven by expansions from Microsoft and Vantage Data Centers [8][21] Company Strategy and Development Direction - The company is focused on executing a $37.5 billion capital plan over the next five years to meet growing energy needs [9][10] - Investments include $7.4 billion in natural gas generation and LNG storage, and $12.6 billion in renewable energy projects [10] - The company aims to maintain a reliable generation mix while expanding its renewable energy capacity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the capital plan and continue growth, citing strong economic growth in the region [4][22] - The company is addressing regulatory matters, including a proposed settlement in Illinois that would resolve several pending cases [12][20] - Management highlighted the importance of transparency and community engagement in attracting new customers, particularly in the data center sector [43] Other Important Information - The board increased the dividend by 6.7% to an annualized $3.81 per share, marking the 23rd consecutive year of dividend increases [20] - The company plans to issue between $900 million and $1.1 billion of common equity in 2026 [19] Q&A Session Summary Question: Can you elaborate on the 500 megawatts related to Microsoft and the additional capital expenditures? - Management indicated that Microsoft is expanding its data center operations, which is expected to add 500 MW of customer demand and $1 billion to the capital plan [24][25] Question: Are there other hyperscaler customers showing interest? - Management confirmed ongoing discussions with other potential customers and emphasized the importance of transparency in addressing community concerns [41][43] Question: What is the status of the very large customer tariff and general rate case? - Management stated that the tariff is undergoing a thorough vetting process and that the general rate case filing is on track for April [55][56] Question: How will the Microsoft ramp impact customer rates? - Management noted that as data center activity increases, it could lead to a reduction in the burden on other customers, but quantifying this impact will take time [74][90] Question: What are the plans for replacing the Point Beach PPA? - Management indicated that they are evaluating options for replacement generation and are confident in their ability to meet future energy needs [80][81]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $5.27 per share for 2025, an increase of $0.39 per share compared to 2024 [3][15] - Adjusted earnings from utility operations increased by $0.63 per share, with weather positively impacting utility earnings by approximately $0.35 [15][16] - Overall, the company achieved an 8% year-over-year growth in adjusted EPS [18] Business Line Data and Key Metrics Changes - Adjusted earnings from the energy infrastructure segment increased by $0.10 due to higher production tax credits from solar projects [17] - The investment in American Transmission Company saw earnings increase by $0.02, driven by capital investments [17] - Retail electric deliveries in Wisconsin increased by 1.1% year-over-year, with projections for a 1.6% growth in 2026 [16] Market Data and Key Metrics Changes - The company is projecting a total of 3.9 GW of electric demand growth in the I-94 corridor and north of Milwaukee over the next five years [8][9] - The capital plan has been updated to $37.5 billion over the next five years, driven by increased demand from data centers [9][21] - The company expects long-term earnings per share growth of 7%-8% annually from 2026 to 2030 [9][22] Company Strategy and Development Direction - The company is focused on executing its capital plan, which includes significant investments in natural gas generation and renewable energy [9][10] - The strategy includes maintaining a balanced generation mix and investing in modern, efficient energy solutions [9] - The company aims to enhance transparency and protect other customers through the proposed Very Large Customer tariff [11][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its capital plan and continue its growth trajectory [10][22] - The economic growth in the region is driving demand, with significant investments from partners like Microsoft and Vantage Data Centers [4][6] - Management highlighted the importance of addressing affordability in light of upcoming rate cases and political considerations [62][64] Other Important Information - The company plans to issue between $900 million and $1.1 billion of common equity in 2026 [19] - A proposed settlement in Illinois is expected to resolve approximately $2.3 billion of open dockets, including a $130 million rate-based reduction [12][86] - The board approved a 6.7% increase in dividends, marking the 23rd consecutive year of dividend increases [20] Q&A Session Summary Question: Can you elaborate on the 500 MW related to Microsoft and the additional CapEx? - Management indicated that Microsoft is expanding its data center operations, which is expected to add 500 MW of demand and $1 billion to the capital plan [24][25] Question: How are negotiations for Point Beach progressing? - Management stated that they are in communication with NextEra and are considering options for replacement power as contracts end in 2030 and 2033 [32] Question: Are there additional interests from other hyperscaler customers? - Management confirmed ongoing discussions with other potential customers and emphasized the importance of transparency and community engagement [41][43] Question: What is the expected impact of the Very Large Customer tariff on general customers? - Management explained that the tariff aims to ensure large customers pay their fair share, which could help mitigate rate increases for other customers [54][87] Question: How does the Microsoft ramp impact customer rates? - Management noted that as data centers grow, corporate allocations will spread across a larger rate base, potentially benefiting other customers in the long term [90]

With a market cap of $64.1 billion, American Electric Power Company, Inc. (AEP) is a U.S.-based electric public utility holding company that generates, transmits, and distributes electricity to retail and wholesale customers across the country. It serves about 5.6 million customers through an extensive network of generation assets and more than 265,000 circuit miles of transmission and distribution lines. Shares of the Columbus, Ohio-based company have exceeded the broader market over the past 52 weeks.  ...

Financial Data and Key Metrics Changes - Adjusted EPS for Fiscal 2025 was $4.44, a 7.5% increase from $4.13 in Fiscal 2024, reflecting growth across all segments driven by infrastructure investments [5][12] - Adjusted earnings for Fiscal 2025 totaled $275.5 million, compared to $247.4 million in the prior year [12][13] - The company invested $922 million in Fiscal 2025, with nearly 90% allocated to utilities [5] Business Line Data and Key Metrics Changes - Gas utilities earned $231 million, up nearly 5% from the previous year, driven by interest recovery in Missouri and new rates in Alabama [13] - Midstream earnings increased to $56 million, up almost $23 million from last year, due to additional capacity and asset optimization [14] - Gas marketing earnings rose to $26 million, an increase of $2.5 million, reflecting a well-positioned business despite higher storage and transportation fees [14] Market Data and Key Metrics Changes - New rates in Missouri became effective in October, and Alabama is undergoing a rate stabilization process [6][18] - The company expects total rate base and capitalization to grow to $10.7 billion by Fiscal Year 2030 from an estimated $8.2 billion at the end of Fiscal 2026 [11] Company Strategy and Development Direction - The company is focused on operational excellence, regulatory engagement, financial discipline, and strategic growth [22] - A pending acquisition of the Piedmont Natural Gas Tennessee business is expected to close in the first quarter of calendar 2026, enhancing operational capabilities [9][10] - The long-term adjusted EPS growth target is set at 5%-7%, supported by a robust capital plan totaling $11.2 billion over ten years [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Fiscal 2026 adjusted EPS guidance of $5.25-$5.45, driven by regulatory outcomes and infrastructure investments [22][23] - The company is committed to maintaining affordability for customers while investing in critical infrastructure [6][15] - Management highlighted the importance of collaboration with stakeholders in Missouri to establish a future test year rate-setting model [7][26] Other Important Information - The Board of Directors approved a dividend increase of 5.1%, bringing the annualized rate to $3.30 per share, marking the 23rd consecutive year of dividend increases [8] - The company is targeting a minimal amount of common equity issuance as part of its financing strategy [10][21] Q&A Session Summary Question: Long-term growth rate and ROEs - Management indicated expectations for continued improvement in earned ROEs, particularly in Missouri, with a future test year rate case planned [25][26] Question: Financing mix and timing - Management confirmed confidence in a balanced mix of debt and equity for financing, with ongoing evaluation of the storage business [31][32] Question: O&M assumptions and integration planning - Management aims to keep O&M expenses below inflation, leveraging best practices during integration activities [33][34] Question: Future test year rate adjustment implications - Management acknowledged potential improvements in earned ROE with the future test year but emphasized caution in making predictions [36] Question: Storage asset sale interest - Management noted strong interest in the storage assets but is still in the evaluation process [37][38] Question: Dividend payout ratios and growth - Management targets dividend growth in line with earnings growth, maintaining a payout ratio of 55%-65% [46] Question: Long-term capital needs and equity outlook - Management anticipates minimal equity needs, estimating $0-$50 million annually to support utility CapEx [47]

Financial Performance & Capital Plan - Q3 2025 actual EPS was $0.81, and adjusted EPS was $0.87, compared to $0.85 in Q3 2024[9] - The company announced a new $28.8 billion 2026-2030 capital plan, the largest in its history[9] - A Q4 dividend increase of approximately 4% was declared, marking 52 consecutive years of dividend increases[9] - The 2026-2030 capital plan is $2.8 billion over the prior plan[12] - The capital plan is expected to support an average annual rate base growth of 7%[18] Capital Allocation & Growth Drivers - Transmission investments account for 46% of the $28.8 billion 2026-2030 capital plan[19] - ITC's five-year capital plan is $9.8 billion, supporting an ~8% rate base CAGR[23] - UNS Energy's five-year capital plan is $5.6 billion, supporting a ~7% rate base CAGR[26] - FortisBC's five-year capital plan is $4.9 billion, supporting a ~6% rate base CAGR[30] Funding & Liquidity - The company issued $750 million in hybrids at Fortis Inc at 5.1% in Q3 2025[55] - The five-year capital plan is funded by 59% cash from operations, 11% equity, and 30% net debt[61]

Core Insights - Fortis Inc. reported third quarter net earnings of $409 million, or $0.81 per common share, a decrease of $11 million compared to the same period in 2024, primarily due to income taxes and closing costs related to the sale of FortisTCI [4][6][10] - The company announced a new five-year capital plan totaling $28.8 billion, an increase of $2.8 billion from the previous plan, driven by higher transmission investments and customer growth [3][12][20] - Fortis expects annual dividend growth of 4-6% through 2030, supported by a robust rate base growth projected to increase from $41.9 billion in 2025 to $57.9 billion by 2030 [3][20][22] Financial Performance - Net earnings attributable to common equity shareholders for Q3 2025 were $409 million, or $0.81 per share, down from $0.85 per share in Q3 2024 [4][8] - Adjusted net earnings per common share increased to $0.87, up from $0.85 in the same quarter of 2024 [8][10] - Year-to-date net earnings increased by $114 million, or $0.18 per share, compared to the same period in 2024, driven by rate base growth and favorable exchange rates [6][10] Capital Expenditures and Investments - Capital expenditures for 2025 are expected to be approximately $5.6 billion, up from a previous estimate of $5.2 billion, primarily due to increased transmission investments [11][12] - The new capital plan includes significant investments in transmission and distribution to support load growth and reliability, with only 21% related to major capital projects [12][22] - Fortis has identified additional growth opportunities beyond the five-year plan, including investments associated with the MISO long-range transmission plan [14][22] Dividends and Shareholder Value - The Board of Directors declared a 4.1% increase in the common share dividend for the fourth quarter of 2025, reflecting the company's commitment to shareholder returns [3][16] - The dividend reinvestment plan is expected to provide common equity proceeds to support the capital plan [13][20] Regulatory and Market Developments - The New York State Public Service Commission approved a three-year rate plan for Central Hudson, which includes a 9.5% allowed return on equity [19] - Fortis is experiencing interest from potential new large retail customers in sectors such as manufacturing and data centers, indicating potential for future energy demand growth [15][22] Environmental and Strategic Outlook - Fortis aims to achieve interim greenhouse gas emissions reduction targets of 50% by 2030 and 75% by 2035, although challenges remain [23] - The company remains committed to a coal-free generation mix by 2032 and a net-zero goal by 2050 [23]

Financial Data and Key Metrics Changes - The company reported third quarter 2025 earnings of $0.83 per share, which is $0.10 higher than the adjusted earnings for the same period in 2024 [4][17] - The earnings guidance for 2025 remains reaffirmed at a range of $5.17 to $5.27 per share [5][21] - Weather positively impacted earnings by approximately $0.01 compared to last year, with a favorable impact of $0.03 in 2025 versus $0.02 in 2024 [19] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.12 compared to third quarter 2024 adjusted earnings [18] - Retail electric deliveries, excluding the iron ore mine, saw a 1.8% increase compared to 2024, driven by a 2.9% growth in the large commercial and industrial segment [19] - Earnings from the Corporate and Other segment decreased by $0.11, primarily due to tax timing and higher interest expenses [21] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.1%, which is below the national average, supporting economic development [9] - The company expects electric demand to grow by 3.4 gigawatts between 2026 and 2030, an increase of 1.6 gigawatts compared to the prior plan [6][9] Company Strategy and Development Direction - The company plans to invest $36.5 billion in capital projects between 2026 and 2030, which is an increase of $8.5 billion from the previous five-year plan [9][10] - The updated capital plan anticipates asset-based growth at an average rate of just over 11% per year [10] - The company will utilize an all-of-the-above approach for generation, investing in natural gas, batteries, and renewables [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic development and load growth in Wisconsin, which is the foundation of the new five-year plan [24] - The long-term projected earnings per share growth is expected to be 7% to 8% annually on a compound basis between 2026 and 2030 [10][22] - Management noted that the growth from large customers is fostering small commercial and residential development throughout the service territory [8] Other Important Information - The company expects to maintain a dividend payout ratio of 65% to 70% of earnings, with a growth rate of 6.5% to 7% consistent with past practices [25] - The proposed very large customer tariff is under review, designed to meet the needs of large customers while protecting other customers [14][15] Q&A Session Summary Question: On the updated growth outlook and its back-end loading - Management explained that the growth is expected to ramp up in 2027, with a compound annual growth rate of 7% to 8% in the outer years [29][31] Question: Timing around Point Beach conversations with NextEra - Conversations are ongoing, but may shift further out; no capital is assumed in the current plan for potential replacements [34][35] Question: Microsoft expansion and its impact on the plan - Management expressed confidence in growth in Southeastern Wisconsin, with Microsoft’s data center potentially scaling up to 2 gigawatts [40][41] Question: Clarification on capital plan increase - The increase in capital plan is primarily due to additional investments in regulated electric generation and transmission [12][22] Question: Engagement with other potential customers - Management confirmed ongoing discussions with other customers but emphasized that Microsoft and Vantage are the main focus currently [95][96] Question: Impact of the very large customer tariff on customer rates - The tariff is designed to ensure large customers pay their fair share without subsidizing other customers [89][90]

Core Viewpoint - Pacific Gas & Electric Company (PCG) is facing significant stock underperformance compared to the broader market and utility sector, despite reporting better-than-expected earnings for Q3 FY2025 and unveiling a substantial capital plan for future growth [2][4][5]. Financial Performance - PCG's stock has declined by 21.7% over the past 52 weeks, while the S&P 500 Index has gained 18.1% during the same period [2]. - Year-to-date, PCG's stock has slid 21.9%, contrasting with the S&P 500's 17.2% gain [2]. - The company's adjusted EPS for Q3 FY2025 was $0.50, exceeding expectations of $0.42, driven by stronger demand and lower operating expenses [4]. - Revenue for the quarter was $6.25 billion, slightly below estimates [4]. - Analysts expect PCG's EPS to grow 10.3% annually to $1.50 for the fiscal year ending December 2025 [5]. Analyst Ratings and Price Targets - Among 18 analysts covering PCG, the consensus rating is a "Moderate Buy," with 12 "Strong Buy" ratings and six "Holds" [5]. - The mean price target for PCG is $21.07, indicating a potential upside of 33.7% from current market prices [6]. - The highest price target of $25 suggests a potential upside of 58.6% [6].

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Core Insights - American Electric Power (AEP) reported third-quarter 2025 GAAP earnings of $972 million or $1.82 per share, an increase from $960 million or $1.80 per share in the same quarter of 2024 [1] - Operating earnings for the same period were $963 million or $1.80 per share, down from $985 million or $1.85 per share in third-quarter 2024 [1] - AEP reaffirmed its 2025 operating earnings guidance range of $5.75 to $5.95 per share, expecting results to be in the upper half of this range [1][9] Financial Performance - AEP's revenue for the third quarter of 2025 was $6,010.4 million, up from $5,420.1 million in the same quarter of 2024, reflecting a change of $590.3 million or 10.9% [8] - Year-to-date revenue increased from $15,025.0 million in 2024 to $16,560.7 million in 2025, a change of $1,535.7 million or 10.2% [8] - Year-to-date GAAP earnings rose from $2,303.0 million in 2024 to $2,998.0 million in 2025, an increase of $695.0 million or 30.2% [8] Growth Strategy - AEP announced a new long-term operating earnings growth rate of 7-9% over the next five years, supported by a $72 billion capital plan [2] - The capital plan is expected to drive a 10% annual growth in rate base, with operating earnings per share anticipated to increase at a 9% compounded annual growth rate over the five-year period [2] - AEP's peak system demand is projected to rise to 65 GW by 2030, up from the current peak of 37 GW, necessitating a $30 billion investment in transmission assets [4] Infrastructure Investments - AEP's capital plan includes over $20 billion in generation resources to meet customer demands in fast-growing regions, with $17 billion dedicated to enhancing the distribution network [5] - The company is confident in securing 28 GW of load additions by 2030, supported by Electric Service Agreements and an additional 190 GW of load requests at various development stages [3] Customer Commitment and Regulatory Engagement - AEP is implementing new tariff structures requiring large power demand customers to make financial commitments based on load forecasts, ensuring fair cost allocation [7] - The company emphasizes listening to regulators and policymakers to improve regulatory outcomes and develop solutions for customer needs [7]