Entergy Louisiana LLC Q2 FY2024 earnings call

• Hosted Analyst Day in June, outlining business strategy, macro drivers (shoring, clean energy, electrification, technology) and customer-first approach.
• Entergy Louisiana reached agreement in principle on FRP extension, resolving outstanding base rate-making proceedings and providing $184M in customer credits.
• System Energy Resources (SERI) reached agreement in principle with LPSC staff on long-standing FERC litigation.
• Hurricane Beryl affected Texas customers; Entergy's response was timely, safe, cost-effective with early cost estimate $75M-$85M.
• Entergy Texas submitted future-ready resiliency plan ($335M first phase, ~$200M contingent on Texas Energy Fund grant).
• Entergy New Orleans held technical conference for Phase 1 plan, targeting council decision by year-end.
• Hosted Southeast Texas Leadership Summit, outlined energy plan with filings for 2 new generation resources and 2 solar projects.
• Signed joint development agreement to accelerate 4.5 GW solar/energy storage projects; Louisiana PSC approved renewable RFP process for 3,000 MW capacity.
• Entergy Mississippi's FRP filing approved; New Orleans and Arkansas filed annual FRP, new rates expected in Sept and Jan.
• Gas LDC sale progress: Louisiana staff report recommends approval, New Orleans hearing in Sept, expected decision early 2025, on track to close by Q3 2025.

No detailed breakdown of product segments with revenue contributions provided in the transcript.

• Affirmed adjusted EPS guidance for 2024, firmly on track. EPS contribution from volume higher than guidance due to hotter weather and new industrial customers.
• Sales growth for remainder of 2024 largely weighted to 4Q; up to 90% of remaining O&M savings expected in 4Q. Settlements in Louisiana support long-term outlook, setting stage for growth story from Analyst Day.

• Potential differences between actual results and forward-looking statements due to factors in earnings release, etc.
• Weather outside normal could require further spending plan flexing.
• Vegetation outside right-of-way causing grid damage during storms, needing proactive measures and regulatory approvals for right-of-way expansion.

Q: Further updates on Louisiana and FERC processes, potential catalyst for capital allocation and CapEx plans?

A: Roderick West mentioned filing SERI settlement with LPSC, still subject to approvals; Kimberly Fontan noted settlements considered in EPS and cash flow outlooks.

Q: Scope of FRP and SERI settlements, what's left to address?

A: Roderick West said settlement addresses FRP extension and prior issues, cleans up 8 related dockets; SERI settlement clears deck of major litigation.

Q: LPSC meeting on 8/14, expected votes?

A: Roderick West expects commission to take up FRP settlement, SERI settlement, and gas LDC sale staff report.

Q: Data center opportunity set updates?

A: Roderick West said having actual conversations with prospective customers, stakeholder engagement ongoing, but details not disclosed until ready.

Q: Renewables RFP progress, utility-owned assets?

A: Kimberly Fontan said capital view shared, periodic updates at EEI; Andrew Marsh said large RFP expected in fall for Louisiana.

Q: Hardening plans, Texas Phase 1 amendment or Phase II pull forward?

A: Andrew Marsh said post-Beryl reflection, plan submitted, open for conversation, legislative session opportunity to address.

Q: Industrial sales growth tracking, long-term outlook?

A: Kimberly Fontan said on track for 4% full-year growth, most in 4Q, strong pipeline supporting 8%-9% long-term outlook.

Q: Pension lift out, volatility reduction, opportunity for more?

A: Kimberly Fontan said pension plan 96% funded, using smoothing mechanisms; Andrew Marsh mentioned sensitivity chart in appendix.

Q: Lessons from Beryl, addressing vegetation outside right-of-way?

A: Roderick West said proactive and communication, embedded in capital plan, stakeholder engagement to show benefits; Andrew Marsh said design and acceleration of resilience investment.

Q: AWS facility regulatory approvals, CapEx?

A: Roderick West said Mississippi Commission reapproved CCN process; Kimberly Fontan said no specific CapEx number broken out for AWS.

Q: Legislative session potential around Beryl and storm issues?

A: Roderick West said Texas legislative session opportunity to revisit legislation for accelerated resiliency spend.