Financial Data and Key Metrics Changes - The company reported ongoing earnings of $0.68 per share for Q2 2025, an increase from $0.57 per share in Q2 2024, driven by successful capital investment programs and higher electric and gas sales due to temperature changes [15][18] - The increase in electric and gas margins was attributed to favorable temperatures in 2025, which contributed an additional $0.02 per share compared to the previous year [16] Business Line Data and Key Metrics Changes - The company is experiencing growth in its capital investment programs, which have supported new electric and gas rates effective from October 1 and January 1 respectively [15] - The company has seen consistent retail electric sales compared to 2024, indicating stability in its core business despite external factors [16] Market Data and Key Metrics Changes - The company is actively engaging in advanced discussions to convert prospective customer opportunities into concrete growth, reinforcing its long-term pipeline [8] - The recent budget bill has provisions that promote customer affordability and support for ongoing renewable projects, which is expected to positively impact the company's operations [9] Company Strategy and Development Direction - The company is committed to supporting economic growth in Iowa and Wisconsin by meeting evolving energy needs, with a focus on sustainable economic development [4][5] - The partnership with QTS Centers for a $10 billion investment in Cedar Rapids is a significant step towards transformational growth in the communities served [6] - The company aims to maintain a flexible resource planning process to adapt to changing market conditions and customer needs [11][12] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the 2025 earnings guidance range of $3.15 to $3.25 per share and a long-term annual earnings growth target of 5% to 7% [18] - The company is optimistic about its ability to navigate potential changes in regulatory guidance and is focused on delivering cost-effective energy resources [10][11] Other Important Information - The company has successfully issued $575 million in convertible senior notes and $600 million in senior debentures, reflecting strong investor interest [18][19] - The company is actively pursuing regulatory approvals for various projects, including energy storage and new natural gas facilities, which are crucial for meeting future energy demands [20][21] Q&A Session Summary Question: Can you elaborate on the timeline for formalizing the QTS project? - Management indicated that they are focused on providing a clear line of sight for investors and expect to update on signed energy supply agreements and associated capital expenditures in Q3 [28][32] Question: Is the $10 billion investment included in the mature opportunities? - Management clarified that the investment is part of the existing plan and that they are in active negotiations for additional projects [40][41] Question: How will incremental load be supplied? - Management stated that new generation resources will be required to support the incremental load, with a blend of resources being planned [42][57] Question: What factors influence the equity ratio range? - The equity ratio will depend on the strength of the funds from operations to debt metrics, allowing flexibility to maintain credit ratings [66][67] Question: How should investors assess the company's mature opportunities compared to others? - Management emphasized that their mature opportunities are characterized by high confidence in closing deals, with an estimated 85% probability of success [70][71]

Financial Data and Key Metrics Changes - The company reported earnings of $0.76 per share for Q2 2025, reflecting a $0.09 increase compared to Q2 2024 [15] - The earnings guidance for 2025 remains between $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [3][20] - The company expects a long-term compound annual earnings growth rate of 6.5% to 7% [4][20] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.16 compared to Q2 2024, with weather positively impacting earnings by approximately $0.04 [15][16] - Retail electric deliveries grew by 1.1%, led by a 1.9% increase in the large commercial and industrial segment [17] - Earnings from the Energy Infrastructure segment decreased by $0.03 due to storm damage losses [18] Market Data and Key Metrics Changes - The unemployment rate in Wisconsin stands at 3.2%, below the national average, indicating strong economic conditions [4] - The company anticipates a demand growth forecast of 1.8 gigawatts to serve the I-94 corridor [5] - The Wall Street Journal reported Milwaukee ranked second among U.S. metro areas for college graduates landing jobs, highlighting a skilled labor market [6] Company Strategy and Development Direction - The company is executing a five-year capital investment plan totaling $28 billion, the largest in its history, aimed at supporting economic growth and reliability [7] - The company is actively working on renewable projects and has received approvals for natural gas generation and storage projects [9][10] - The Very Large Customer tariff is under review, designed to meet the needs of large load customers while protecting other customers [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic development in the region, particularly with significant investments from companies like Yaskawa and Microsoft [4][5] - The company is closely monitoring the regulatory environment and expects a decision on the Very Large Customer tariff by Q2 next year [12] - Management remains optimistic about continued growth in the region and the company's future [21] Other Important Information - The company plans to extend the operating lives of coal units at the Oak Creek plant through 2026 to meet energy demand [10][68] - The company is working on safe harboring renewable projects to qualify for tax credits under new treasury guidance [8][64] - The annualized dividend stands at $3.57 per share, with a target payout ratio of 65% to 70% of earnings [21] Q&A Session Summary Question: Can you discuss the demand from Vantage and how the company plans to procure generation for that? - The company is actively working with Vantage to meet their demand needs, aiming for about 1.3 gigawatts by 2027, while exploring various options for capacity [24][28] Question: How does the company view the capital growth rate and potential adjustments? - Management is optimistic about economic development and will review growth patterns in the upcoming capital plan update [30][32] Question: What is the status of the large load tariff proceeding? - The company has reached a settlement with large customers on the tariff, which is currently under review by the commission [33][34] Question: Can you provide updates on the Microsoft data center site? - The company is confident in the ongoing development at the Microsoft site and anticipates future opportunities as construction progresses [75][84] Question: What is the plan for the Point Beach PPA and Port Washington Unit one? - Discussions are ongoing regarding the Point Beach PPA, with productive talks expected to yield updates by the end of the year [47][48]