Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- WEC Energy Group Inc (WEC, Financial) reported third-quarter 2024 adjusted earnings of $0.82 per share, excluding a $0.06 per share charge related to disallowed capital expenditures.
- The company reaffirmed its 2024 earnings guidance range of $4.80 to $4.90 per share, indicating confidence in meeting its financial targets.
- WEC Energy Group Inc (WEC) announced a significant capital plan for 2025-2029, with an investment of $28 billion, marking the largest in its history.
- The company plans to invest heavily in renewable energy, with $9.1 billion allocated to solar, wind, and battery storage projects, quadrupling its carbon-free generation capacity.
- WEC Energy Group Inc (WEC) is experiencing strong economic growth in its service areas, particularly in Wisconsin, with major developments from companies like Microsoft and Amazon.
Negative Points
- Third-quarter 2024 adjusted earnings were $0.18 lower compared to the same period in 2023, impacted by Illinois rate design changes and higher operational costs.
- The company faces regulatory challenges, with ongoing dockets in Illinois related to safety modernization and the future of natural gas, which could impact future operations.
- WEC Energy Group Inc (WEC) reduced its planned investments in its infrastructure segment by $800 million, indicating a shift in focus and potential missed opportunities.
- The company is reliant on favorable weather conditions to meet its earnings guidance, which introduces an element of uncertainty.
- WEC Energy Group Inc (WEC) has significant financing needs, with plans to issue up to $200 million in common equity for 2024 and additional equity content over the next five years.
Q & A Highlights
Q: Scott, regarding Point Beach, are there viable alternatives if you can't reach an agreement with NextEra?
A: Scott Lauber, CEO: We are making good progress in discussions with NextEra regarding Point Beach. We expect more developments in the next six months, and things are lining up well for both parties.
Q: Why was there a reduction in CapEx on the infrastructure side?
A: Scott Lauber, CEO: The reduction is due to the significant economic development in Wisconsin and reduced capital plans in Illinois. We are focusing on regulated utility investments in Wisconsin due to strong economic growth.
Q: Can you provide more color on the Wisconsin rate case and why it wasn't settled?
A: Scott Lauber, CEO: We are far along in the Wisconsin rate case, with a decision expected soon. We are comfortable with the commission's process and believe they understand the importance of reliability and economic development.
Q: How does the ATC ROE adjustment affect your earnings guidance?
A: Scott Lauber, CEO: The ATC ROE adjustment provides a tailwind to offset some weather-related deficits. We are comfortable maintaining our current earnings guidance.
Q: What is the outlook for rate-based growth in Wisconsin?
A: Scott Lauber, CEO: We expect significant rate-based growth in Wisconsin, driven by economic development. Approximately 40% of our capital is growth capital, supported by large customer demands.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
