Evergy(US:EVRG)2024-05-09 19:05Financial Data and Key Metrics Changes - For Q1 2024, the company reported adjusted earnings of $0.54 per share, down from $0.59 per share in Q1 2023, primarily due to higher operations and maintenance expenses, depreciation, and interest expenses [24][68][70] - Weather-normalized retail sales decreased by 0.5% compared to Q1 2023, driven mainly by lower commercial and industrial demand [46][47] Business Line Data and Key Metrics Changes - The company highlighted significant demand from three major customers: Google, Panasonic, and Meta, which collectively represent approximately 750 megawatts of load [26][40] - The ongoing effects of changes in transformer labor capitalization approaches were noted, with a year-over-year decrease of about $0.02 [8][22] Market Data and Key Metrics Changes - The overall economic development pipeline in Kansas and Missouri shows promise, with over $10 billion in projects considering locating in the service territories [40][41] - The company extended its weather-normalized demand growth forecast to 2% to 3% through 2028, reflecting a strong local labor market [41][70] Company Strategy and Development Direction - The strategic focus remains on affordability, reliability, and sustainability, with plans for significant capital investment to support economic development [27][66] - The company is preparing for the impact of new EPA rules in its Integrated Resource Plan (IRP), which will include considerations for carbon capture and storage [60][99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of industrial demand, anticipating that large customers from recent economic development wins will begin to come online later this year [48][124] - The company reaffirmed its adjusted EPS guidance range for 2024 and long-term adjusted EPS growth target of 4% to 6% through 2026 [113][49] Other Important Information - The passage of House Bill 2527 in Kansas is expected to mitigate regulatory lag and support infrastructure investment, with an estimated impact of $0.03 to $0.04 per share in the first year following a rate case [28][63][85] - The company has reduced carbon emissions by 53% since 2005 and aims to continue its responsible transition of the generation fleet [44][62] Q&A Session Summary Question: What is the expected impact of House Bill 2527 on earnings? - Management indicated that the bill would reduce regulatory lag and improve returns, estimating an impact of $0.03 to $0.04 per share in the first year following a rate case [85][102] Question: How does the company view the current retail sales trends? - Management noted that while retail sales were flat last year, they expect a recovery driven by strong residential and commercial sectors, alongside new industrial customers coming online [88][124] Question: What are the implications of the new EPA regulations on resource planning? - The company stated that the new EPA rules would be factored into future IRPs, impacting the analysis of gas unit additions and coal retirement timelines [99][100]