Xcel Energy Inc (NASDAQ:XEL) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 10:00 am ET

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Xcel Energy Inc (NASDAQ:XEL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Xcel Energy Second Quarter 2020 Earnings Conference Call. Questions will only be taken from institutional investors. Reporters can contact media relations with inquiries, and individual investors and others can reach out to Investor Relations. [Operator Instructions] At this time, I turn the conference over to Paul Johnson, Vice President of Investor Relations. Please go ahead, sir.

Executive
Paul Johnson

Good morning, and welcome to Xcel Energy's 2020 second quarter earnings conference call. Joining me today are Ben Fowke, Chairman and Chief Executive Officer; Bob Frenzel, President and Chief Operating Officer; Brian Van Abel, Executive Vice President and Chief Financial Officer; and Amanda Rome, Executive Vice President and General Counsel.

This morning, we'll review our second quarter results, share recent business and regulatory developments and discuss how we're managing through uncertainty around COVID. The slides that accompany today's call are available on our website.

As a reminder, some of the comments we make during today's call may contain forward-looking information. Significant factors that could cause results to different from those anticipated are described in our earnings release and our SEC filings. Today, we will discuss certain metrics that are non-GAAP measures, including items, ongoing earnings, electric and natural gas margins. Information on comparable GAAP measures and reconciliations are included in our earnings release.

Now, I'll turn the call over to Ben Fowke.

Executive
Ben Fowke

Well, thanks, Paul and good morning everyone. We had a strong quarter, booking earnings of $0.54 per share for the second quarter of 2020, compared with $0.46 per share last year. Our year-to-date earnings are on track with our financial plan, and we are mitigating the impact of COVID-19. As a result, we are reaffirming our 2020 guidance. We continue to help our customers and protect our employees during the pandemic. We're stepping up our charitable giving to help our communities. Our business continuity plans have been executed extremely well. We're keeping employees safe, while providing reliable service to our customers. And we're helping to restart the economy through our capital investment programs that create jobs in our communities.

Earlier this year, the Minnesota Commission opened a relief and recovery docket and invited utilities in the state to submit potential projects that would create jobs and help jump-start the economy. In June, we filed a plan that proposes $3 billion of capital investment. This includes approximately $1.8 billion of incremental capex for wind repowering, a 460-megawatt solar facility, expanded EV infrastructure and about $1.2 billion of accelerated transmission, distribution and natural gas investments.

We recently announced a solicitation for repowering of wind projects that are either owned by Xcel Energy or under PPAs. We estimate 800 megawatts to 1,000 megawatts of potential repowering projects and expect to make a commission recommendation by year-end. We are also proposing options to mitigate customer bills. Overall, feedback has been very positive, and we look forward to working through the process with the commission. Now, as you might have heard, the US Treasury recently announced a one-year extension of the Safe