Entergy Corporation (NYSE:ETR) Q4 2023 Earnings Call Transcript

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Travis Miller: Just a couple of clarifying questions here. So if I could follow-up on the load growth number. That 8% industrial for this year if you could estimate, how would you break that down in terms of the recapture for a lack of better word of what you were expecting in 2023? And what’s a good kind of go-forward two year, three year type of run rate on a core basis. Does that make sense?

Kimberly Fontan: Yes, Travis what we’ve talked about going forward is a 6% to 7% or CAGR through the 2026 outlook period. What you’re seeing as you noted in 2024 is coming off of a base year of 2023. That low will be a little lumpy as it comes in over that period, but we expect a 6% to 7% growth rate on those industrials over that outlook period.

Travis Miller: Okay.

Drew Marsh: And as far as the recapture piece we don’t have a precise number for that. It’s probably 1% or 2% if not — that’s a component of it probably in that range.

Travis Miller: Yes. Okay. Just doing the math there. Okay. Other one on the resilience the new CapEx that you added in is that part of the Louisiana and New Orleans plan that you’ve proposed? Or is that in addition to.

Kimberly Fontan: Yes. As Drew noted, we have a little less than $1 billion of resilience spending in our capital plan over this period. Once decisions are made in Louisiana and New Orleans around the recovery mechanism than the pace around that, then we would — that could be additional capital. But what’s in that capital plan is close to that $1 billion number.

Drew Marsh: And that’s part of those — that$1 billion is part of the filed plans….

Kimberly Fontan: That’s correct [ph]

Travis Miller: It’s part of the plan. Okay. Okay. Got it. So that number would go down in terms of potential CapEx relative to what you’ve added in.

Kimberly Fontan: No, I don’t think so. The filing just to be clear, the filing is more than what we’ve included. What we’ve included is, what we can spend in our given mechanisms that we have. And as you probably know, we requested accelerated mechanisms in both Louisiana and New Orleans, so that we can accelerate that spending. And so, depending on those mechanisms that could provide additional opportunity for capital there.

Travis Miller: Okay. Okay. Very good. And then one other quick clarifying. The $2 billion of solar, how much of that is through the RFPs that are out right now? And how much is that through either traditional ratemaking or future RFPs that you anticipate?

Drew Marsh: I don’t have a precise breakdown of that. We do have quite a bit, which isn’t necessarily going through RFPs. It’s certainly in Arkansas and Mississippi. And so, I think there’s a good chunk of that, but I don’t have a precise number for you.

Travis Miller: Okay. No problem. Thanks a lot. That’s all I had.

Drew Marsh: Thank you.

Operator: [Operator Instructions] And there are no further questions at this time. Mr. Abler, I will now turn the call back over to you.

Bill Abler: Thank you Rob, and thanks everyone for participating this morning. Our annual report on Form 10-K is due to the SEC on February 29, and provides more details and disclosures about our financial statements. Events that occur prior to the date of our 10-K filing that provide additional evidence of conditions that existed at the date of the balance sheet would be reflected in our financial statements in accordance, with generally accepted accounting principles. Also as a reminder, we maintain a web page as part of Entergy’s Investor Relations website called Regulatory and Other Information, which provides key updates of regulatory proceedings and important milestones on our strategic execution. While some of this information may be considered material information, you should not rely exclusively on this page for all relevant company information. And this concludes our call. Thank you very much.

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