Xcel Energy Inc (NASDAQ:XEL) Q2 2018 Earnings Conference Call - Final Transcript

Jul 26, 2018 • 10:00 am ET


Xcel Energy Inc (NASDAQ:XEL) Q2 2018 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Xcel Energy Second Quarter 2018 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Paul Johnson, Vice President of Investor Relations. Please go ahead, sir.

Paul Johnson

Good morning, and welcome to Xcel Energy's 2018 second quarter earnings release conference call. Joining me today are Ben Fowke, Chairman, President and Chief Executive Officer; and Bob Frenzel, Executive Vice President and Chief Financial Officer. In addition, we have other members of the management team in the room to answer your questions.

This morning, we will review our 2018 second quarter results and update you on recent business and regulatory developments. Slides that accompany today's call are available on our website. As a reminder, some of the comments during today's conference call may contain forward-looking information. Significant factors that could cause results to differ from those anticipated are described in our earnings release and our filing with the SEC.

I'll now turn the call over to Ben.

Ben Fowke

Well, thank you, Paul, and good morning, everyone. Today, we reported another solid quarter with EPS of $0.52 per share compared with $0.45 per share last year. We're off to a great start this year and have raised our EPS guidance range to $2.41 to $2.51 per share from our original guidance range of $2.37 to $2.47 per share. Bob will provide more detail on our financial performance as well as the regulatory update. I will now briefly discuss some important recent developments.

In May, we received approval in Texas for our SPS wind proposal. We now have final approvals from both the Texas and the New Mexico Commission to add 1,000 megawatts of new wind generation at SPS. Construction on the Hale site began this month and we expect it to achieve commercial operation in 2019. We're currently working on permitting and waiting for the transmission interconnection study for Sagamore, which is expected to go into commercial operation in 2020. As a reminder, the total capital investment for these two wind projects is $1.6 billion and it is included in our base capital plans.

In addition, our 300 megawatt Dakota Range project was approved by the Minnesota Commission during the quarter. The estimated $350 million of capital investment is also included in our base plan. In June, we filed our Colorado Energy Plan, the most ambitious utility renewable plan in the country. It would allow our Colorado company to achieve a 55% renewable energy mix. We propose to add 1,100 megawatts of wind, 700 megawatts of solar and 275 megawatts of battery storage and retire 660 megawatts coal generation under our preferred CEP portfolio.

The PSCo would own 500 megawatts of new wind generation, acquires 380 megawatts of existing natural gas generation and invest in new transmission for a total investment of about $1 billion. And please note that this capex is not included in our base capital forecast and represents incremental investment to our plans. Our preferred portfolio is