Jul 28, 2026 earnings call — Data center growth and grid reliability investments
Operating earnings were $274 million, $1.32 per share, keeping the company on track to reach the high end of operating EPS guidance.
Revenue $3.4B (est $3.4B) · EPS $1.32 (est $1.14)
Key quotes
"The 1.4 gigawatt Oracle data center remains on track, fully approved and under construction."
"From 2023 to 2025, our outage duration improved by 90%, and we achieved our best all-weather SAIDI performance in nearly 2 decades."
"Operating earnings for the quarter were $274 million. This translates into $1.32 per share."
Analyst Q&A 9
Next 2 GW deals and guidance timing
Q (Shahriar Pourreza · Wells Fargo): Are the 2 gigawatts from hyperscalers, and what remains to close the next deal (commercial agreements or zoning)? Also, how will you update guidance — show 8% plus or change the range?
A: Management said the 2 gigawatts involve several customers, a mix of hyperscalers and colocators, and commercial talks plus site planning and zoning work remain. They expect to update guidance after regulatory milestones in Q3 or at EEI, and would refresh on the fourth-quarter call if they secure another contract; they will leave guidance as “plus.”
"So I'd say that things are moving in the right direction, and we feel confident in our ability to secure another agreement by the end of the year." — Joi Harris (CEO)
Regulatory testimony and IRP load scenarios
Q (Richard Sunderland · Truist): How do you expect staff and interveners to view the electric stay-out and data-center benefits in testimony? And how will the IRP reflect load scenarios versus the 2 gigawatts signed and the 3–4 gigawatts pipeline?
A: Management said testimony will arrive in early August and that their stay-out mechanism was viewed positively pre-filing; staff and interveners will examine uncertainties and the mechanism. For the IRP, they will file in Q3, use the 2 signed contracts as the base case, and include the full pipeline in the high-end case with an intermediate scenario.
"the base case will be the 2 contracts that we have already signed." — Joi Harris (CEO)
Local benefits and Vantage update
Q (Diana Niles · JPMorgan): What are you hearing from local and state stakeholders about economic development from data centers? Also, what is the latest on the Vantage project and its timeline?
A: Management said the signed data centers are large economic development wins with construction jobs, big tax benefits for Saline and Van Buren, and community benefit packages in place. On Vantage, they said the development agreement with a large developer outside Michigan continues to progress, it is behind-the-meter and hundreds of megawatts, and permitting challenges are being worked while equipment is already on order.
"The development agreement that we have in place with a large data center developer in a state outside of Michigan continues to progress." — Joi Harris (CEO)
Oracle credit protections and customer mix
Q (Julien Dumoulin-Smith · Jefferies): Given Oracle's downgrade, what collateral or credit protections do you have and would you require more postings? Also, is the 2 gigawatts upside new hyperscalers or expansions of existing deals? Any legislative risk?
A: Management said S&P downgraded Oracle but the project is still investment-grade and they do not expect it to affect completion; the contracts include collateral triggers and protections, though specifics are not disclosed. They said the 2 gigawatts include multiple customers and could be new customers or expansions, and that legislative changes are unlikely this calendar year due to divided government and the election.
"I'll start by saying we don't expect it to have any impact on the completion or timing of the Oracle project, which is already in construction." — David Ruud (CFO)
3–4 GW pipeline and rate pause extension
Q (Michael Lonegan · Barclays): Can you update progress on the 3 to 4 gigawatts in earlier stages and whether they could add investment in the 5-year plan? Also, what would be needed to extend the electric rate pause beyond 2028?
A: Management said the 3–4 gigawatts are mostly colocators who need to secure a customer (often a hyperscaler) and zoning/site plans before advancing, and they are working to understand initial load shapes. On the rate pause, they said an IRM expansion near $1 billion would give another 6 months, and any incremental load beyond Oracle could extend the time between filings.
"We've said that an expansion of the IRM, if you get to close to $1 billion, that gives you another 6 months." — Joi Harris (CEO)
Counterparty protections and guidance outlook
Q (Andrew Weisel · Scotiabank): Will you change your counterparty protections after Oracle's downgrade, and why did slides change to 5–6 GW total? Also, given weather and a July storm, how do you still see the high end of 2026 EPS?
A: Management said their contracts and the large-load tariff include protections like contracted load ramps and minimum monthly charges to protect customers and the company, and they are comfortable with current and future provisions. They said the pipeline wording change was just a timing/movement change with no substantive change to the pipeline, and they remain confident in the high end of guidance due to recent rate relief, a Gas order in September, timing reversals, and nonutility performance.
"It has some provisions in there like contracted load ramp with minimum monthly charges of 80% of the minimum billing demand." — David Ruud (CFO)
Oracle ramp timing and deal template
Q (Michael Sullivan · Wolfe): How is the Oracle load ramp timing looking, and is the Google deal a good template for future deals on affordability and supply mix?
A: Management said construction is proceeding as planned and they have positive indicators that Oracle and related companies are on track for a fast ramp, with equipment deliveries starting. They added future deals can vary by ramp, but typically allow more renewables and battery storage early and a dispatchable resource later guided by the IRP.
"We are getting all positive indicators that Oracle and related companies are on track for the fast ramp at this point." — Joi Harris (CEO)
Main bottleneck for large customers
Q (Anthony Crowdell · Mizuho): Which is the harder gating item for large data center projects — zoning, permitting, site plan, or finding a customer?
A: Management said zoning is the primary bottleneck: sites must be zoned before moving to site plan approval. For colocators, if a site is ready and zoned, they can find customers quickly; the challenge is getting that zoning in place.
"They've got to get the site zoned and then they can move towards site plan." — Joi Harris (CEO)
IRP variables and Vantage earnings impact
Q (Travis Miller · Morningstar): Besides data centers and renewables, any other IRP variables to watch? And if Vantage is delayed, does that affect 2026 or 2027 earnings?
A: Management said the IRP focus is the data center load and the RPS updates, and those are the main items to watch. On Vantage, they said delays would not affect 2026, equipment is already ordered and deliveries are expected, and the project will proceed at the original or an alternative site.
"We've got to do some updates and mod updates to the RPS with that filing." — Joi Harris (CEO)