OGE Energy Corp. (NYSE:OGE) Q3 2023 Earnings Call Transcript

It should carry over in ’24 as well. Some of that is Bitcoin data mining, as you mentioned. But we do have other industries that are expanding. Sean mentioned those on the call. Data centers that are more around the generative AI, which is, as we’ve all seen, is impacting every industry in this company — in this country, sorry. So every industry across the United States are using data centers to do work that they’ve never used before. And quite honestly, the big companies that have — do this in the United States have run out of capacity. So we’re seeing tremendous request for load in our system, tapping into our grid. And so we look forward to serving that in a responsible way going forward.

Tanner James: And then just lastly, I just had more of a procedural-type question regarding Horseshoe Lake in Arkansas. Will the formal CPCN filing occur at — basically, at the level when construction is completed? But what’s the precedent and typical time line for the commission’s review in this situation?

Sean Trauschke : Typically, we go to them, and we’ve already received the approval to begin construction. So that’s the requirement in Arkansas. And then when it’s complete, we will file that in our subsequent filings for recovery, their allocated portion of it.

Operator: Our next question comes from Alex Mortimer with Mizuho Securities.

Alex Mortimer: So as we look for you to file your rate case in Oklahoma next year, I was hoping you could touch a little bit on the Oklahoma regulatory environment. I know you mentioned a potential increase in your CapEx plan in the coming years. So maybe just a little bit more color on the support you see from regulators as you look to continue to expand your spending in the coming years as this has to work its way into rates.

Sean Trauschke : I think we find the Oklahoma Commission very constructive, evidenced by the number of settlements and agreements and constructive orders we’ve received over the last number of years. As I look at things, affordability is front and center. And so when you have that leading the charge, and we spoke to that on our comments here about the fuel reduction, that’s a big tailwind. And we’re going to make this filing here at the end of the year, and that’s going to give us a lot of flexibility and gives us a lot of confidence heading into this rate filing. So I see no change in the constructive nature and constructive outcomes we’ve received.

Operator: [Operator Instructions] Our next question comes from Paul Fremont with Ladenburg.

Paul Fremont: How should investors look at potential construction of new generation opportunities beyond Horseshoe Lake? So in other words, would it more likely be gas? Would it be renewables? Can you give us a sense of what the possible mix of additional generation might look like?

Sean Trauschke : Yes. Thanks, Paul. This is Sean. We’ll certainly run through a lot of scenarios in our next IRP filing. I believe in looking at a lot of different scenarios. Obviously, you have a lot of EPA regulations that are in various stages of development, and so you want to incorporate different scenarios for that. But what I’ve said in the past is going forward, until there is a dispatchable economic long-duration generation resource available, I think you’re going to see our generation mix of new generation look like gas and solar.

Paul Fremont: And would that be — would it be sort of safe to assume a 50-50 in terms of percentages?

Sean Trauschke : I think that’s TBD, but I think that’s a good way to think about it.

Paul Fremont: Great. And then longer term, you’re obviously at an extremely strong FFO-to-debt level today. Longer term, how should we think about your FFO-to-debt goal?

Sean Trauschke : Bryan, do you want to take that?