The paragraph provides an introduction to Entergy's First Quarter 2024 Earnings Conference Call. It mentions the operator, Bill Abler (VP of Investor Relations), and Drew Marsh (Chair and CEO) who will be discussing the company's financial results for the quarter. It also mentions the company's progress on growth opportunities and risk reduction efforts. The adjusted earnings per share for the quarter is $1.8, slightly below expectations, but the company is still on track to meet its annual commitments.

The speaker expresses confidence in the team's ability to deliver results and mentions the recent recognition for customer-centric progress. They also discuss new electric service agreements and efforts to secure federal support for projects that would benefit customers. The nuclear fleet is also making progress and operational excellence is a continuous effort.

Waterford 3 is recovering from a shutdown caused by a transformer failure. The plant is using a spare transformer until a replacement arrives. Grand Gulf had a successful refueling outage due to the team's focus on safety and operational excellence. Stakeholder engagement is important and they reached a settlement with the New Orleans City Council for $116 million. This is consistent with previous settlements and resolves 85% of their litigation risk. The Louisiana Public Service Commission approved Entergy Louisiana's resilience and grid hardening plan, which includes 2,100 projects totaling $1.9 billion to provide resilience benefits and encourage growth in the service area.

Entergy Louisiana has received approval for a forward-looking recovery mechanism that allows for customer investment and transparency. They have also filed for approval of several projects, including a new power station and grid hardening plan, to improve resilience and meet power needs in challenging areas. The company is also seeking to expedite the approval process for these projects in order to begin work as soon as possible. The sale of their gas LDC is also progressing smoothly.

The stakeholder engagement process is going well and the transaction is expected to close in the third quarter of 2025. Entergy Mississippi filed its annual FRP and interim rates became effective in April. The company is excited about their upcoming Analyst Day in June and will discuss their multiyear strategy and outlook. The first quarter saw solid progress and execution across key areas, and the company remains on track to achieve their long-term growth outlook. The first quarter adjusted earnings per share was $1.08, affected by mild weather and other factors, but the company is confident in achieving their 2024 results and long-term growth.

The article discusses two adjustments that were excluded from the company's adjusted earnings in the quarter. These adjustments include a regulatory asset impairment and a regulatory charge for income tax benefits. The company's first quarter adjusted EPS drivers are also mentioned, including regulatory actions and higher depreciation expenses due to investments. Sales volume was not a significant driver for earnings, as mild weather and lower sales to commercial customers were offset by higher sales to residential customers. Utility other O&M expenses were higher due to various factors, but the company expects them to balance out over the year. The company's operating cash flow for the quarter was lower than the previous year.

In the third quarter, customer receipts were the main driver of operating cash flow, with deferred fuel costs declining by $350 million compared to last year. The company maintains a strong focus on credit and has received a positive credit update from S&P. The company's equity needs remain unchanged and they have locked in more than 30% of their equity need for 2025 and 2026. The company is affirming its guidance and adjusted EPS outlook for the year, despite weather and lower sales to cogeneration customers being a headwind. They are also on track to meet their full year expectations due to sales to additional industrial customers offsetting the headwind.

In the paragraph, the speaker discusses the timing and variability of utility operations and maintenance (O&M) spending. They expect O&M to be higher in the second quarter compared to last year, due to factors such as flex spending in the previous year and prescription rebates. They also mention an acceleration in vegetation spending in preparation for storm season, which will reduce spending in the second half of the year. However, they assure that O&M will balance out over the year and they are confident in meeting their financial commitments. The speaker also mentions their upcoming Analyst Day in June, where they will provide more details on their long-term plans. The team is available to answer questions from analysts.

Kimberly Fontan discusses the updated CapEx plan and how the recently approved $1.9 billion will impact it, with $700 million going towards Louisiana. She also addresses charges taken in the quarter and how they will not affect the need for equity issuance. Finally, Rod West provides an update on the FRP and rate case processes in Louisiana and the potential for settlement discussions after direct testimony.

The speaker discusses the potential outcomes for the settlement discussions and the progress being made. They also mention a revised weather-normal sales forecast of plus $0.15, which is attributed to strong industrial activity in various sectors such as data centers, metal, and ammonia. There is also mention of the AWS transaction in Mississippi and interest in carbon capture projects.

The company plans to discuss its growth outlook and provide more details at Analyst Day. They expect growth from various sectors and will give more clarity on their investments, sales, and earnings. The event will also provide an opportunity to meet with the company's management team.

The speaker discusses the progress made in addressing SERI risk and mentions that this may help with negotiations in Louisiana. They also mention an upcoming resiliency filing in Texas in the second quarter, which may be influenced by state grants and recovery mechanisms.

Drew Marsh and Michael Lonegan discuss the Texas resilience investment and the Bayou Power Station. The resilience investment was pushed back due to growth and the grant piece will help with this. The Bayou Power Station is expected to be resilient to severe weather and is on land in a canal. Nick Campanella asks questions about the investment and power station.

The speaker discusses the impact of the new data center on the company's gross margin and EPS. They clarify that the investment in infrastructure will offset some of the gains in the bottom line, but the overall growth opportunity is still significant. They also mention that the company has been above the 14% FFO-to-debt target and address Moody's negative outlook.

The speaker is discussing their regular conversations with rating agencies and their efforts to hit the 14% threshold for 2023 and work towards 15%. They also mention their strong FFO and the issuance of more debt, which they believe will balance out over the course of the year. They are working towards settling both the Louisiana Public Service Commission and formula rate plan issues, and there is nothing preventing them from pursuing a settlement on both regardless of Federal versus State jurisdiction. There is no update on the gas sale approval timeline at this time.

The gas LDC is on schedule and there are no current obstacles to completing the transaction. The Waterford trip will not have a new transformer by summertime, but an interim one should be ready. The MISO transmission for the Entergy zone area is expected to be released late this year.

The speaker is discussing the potential impact of data center load on T&D tariffs and how it may affect residential customers. They are working with legislators to ensure proper pricing and infrastructure to support this load without burdening other customers.

The speaker discusses the benefits of adding customers to the system, both for the company and for the state of Mississippi. They also mention considering signing long-term contracts with data centers in order to mitigate potential litigation risks. The speaker is also asked about attracting data centers in other states and mentions that Arkansas and other states are being considered, with regulatory attractiveness being a factor.

The example of Mississippi serves as a blueprint for other states in terms of shaping legislation, contractual guarantees, and regulatory outcomes to meet the needs of AWS. This includes focusing on job creation and economic development, rate protection for other customers, and addressing green or clean dynamics. Mississippi's success has caught the attention of other states, who are now trying to replicate their framework. These potential investments are welcomed by regulators and communities due to the large investments, tax revenue, and job opportunities they would bring.

The speaker discusses the potential for data centers to bring economic growth and job opportunities to rural areas in Central and Northern Mississippi, Northern Louisiana, and Arkansas. They also mention the overlap between wildfire mitigation and resilience investments in these areas and the potential for future investments to manage wildfire risks. A question is asked about the Texas resiliency filing and the speaker confirms that wildfire mitigation will be a part of the conversation and potential investment in the future.

Kimberly Fontan discusses the anticipated split in CapEx between transmission and generation for new industrial customers, with a heavier weight towards generation for data centers. She also mentions that in Mississippi, legislation has given them the authority to build what is needed for data centers without an RFP process. She notes that it ultimately depends on the customer's timeline and working with stakeholders to meet their needs.

Kimberly Fontan discusses the data center and how the planning principle is the same for all customers. The quarterly report on Form 10-Q is due on May 10th and provides more details about the financial statements. Entergy's Investor Relations website has a page called Regulatory and Other Information which provides updates on regulatory proceedings and strategic execution. The call concludes.

This summary was generated with AI and may contain some inaccuracies.