Oct 29, 2026 earnings call — Updated capital plan and earnings guidance
Company raised and narrowed 2026 earnings guidance to $5.60 to $5.64 per share, assuming normal weather.
Revenue $2.3B (est $2.3B) · EPS $1.18 (est $0.97)
Key quotes
"As you may have seen from our announcement this morning, we expect to invest $47.5 billion in capital projects between 2027 and 2031."
"As a reminder, both Microsoft and Oracle have committed to paying their full share for energy costs."
"Over the next five years, we expect to generate $26 billion-$27 billion in cash from operations, funding more than half of our cash needs."
Analyst Q&A 12
guidance upside and Oracle line timing
Q (Shar Pourreza · Wells Fargo): He asked what the "+" means in the updated EPS guidance and why keep 7%-8% in range. He also asked the timeline for the ATC line filing and whether it will delay the site starting to take megawatts.
A: Management said the "+" reflects upside if regulatory approvals come faster than expected, possibly making growth faster in 2028 or 2029. On the ATC line, they said the filing is large, they added eSTATCOM, the commission's questions are reasonable, and they expect completeness and approval so the project stays on schedule with no delay.
"Really depends on a lot of stuff, but I think there's an opportunity as we continue to execute on plan for potential upside in some of those years." — Scott Lauber (CEO·CHAIR)
expansions and equity needs
Q (Nicholas Campanella · Barclays): He asked whether the capital plan includes possible expansions by Microsoft and Oracle or if those would add incremental capital. He also asked how equity needs look beyond this plan and whether the lower near-term equity need is sustainable.
A: Management said they factored in 400 megawatts to be announced and are making progress on that customer, but some long-lead equipment means the megawatts may not arrive until 2032 or 2033. Xia said the equity content assumption moves from 50 cents per $1 of capital to around 40%, and Scott said the "+" depends on regulatory approvals likely affecting 2028 or 2029 timing.
"I would be comfortable to say it could be around 40%." — Xia Liu (CFO)
Microsoft size and 400MW location
Q (Steve D'Ambrisi · RBC): He asked how much acreage the Microsoft expansion might use and how rising power density per acre affects sizing. He also asked whether the 400 megawatts would be inside WEPCO or WPS territory.
A: Management said Microsoft has not disclosed specifics but they see comparable sites expanding and buying land, and they estimate southeastern Wisconsin could be 4.5-5 gigawatts in total though it's about 3.2 now. On the 400 megawatts, they said people are looking at locations in both territories and more details will come.
"I think the opportunity for these sites to have another, not another, but in total, 4.5-5 gigawatts." — Scott Lauber (CEO·CHAIR)
duration of plus and equity change
Q (Michael Sullivan · Wolfe): He asked whether the "+" is only for one or two years before returning to 7%-9%. He also asked what changed to reduce near-term equity needs and whether that change would persist, plus whether the 400 megawatts is with one customer.
A: Scott said they feel good the "+" will cover a couple of years and they will update the capital plan over time. Xia explained they previously assumed AFUDC for most projects but in this plan they worked with VLC customers to get more cash returns instead of AFUDC, creating a step change that reduced relative equity needs; Scott said the 400 megawatts is anticipated to be with one customer.
"In this plan, to your point, we've been working with our VLC customers to try to charge more cash returns." — Xia Liu (CFO)
sales growth, gas change, equity timing
Q (Andrew Weisel · Scotiabank): He asked why adding a gigawatt did not raise the 6%-8% sales growth guidance and why gas growth eased. He also asked whether equity needs will be ratable or back-end loaded.
A: Xia said sales growth remains 6%-8% because the base in 2029 to 2031 is very high, so growth from a high base yields similar rates; the gas change reflects a mild quarter and imperfect normalization, not a trend. Scott said equity tends to be a bit front-end loaded since construction is earlier in the plan and cash improves as projects enter service.
"When you grow from a very high base, you continue to have a 6%-8%." — Xia Liu (CFO)
which customer could grow most; concentration
Q (Anthony Crowdell · Mizuho): He asked which customer—Microsoft, Oracle, or Vantage—has the greatest potential to exceed the planned load and what would trigger that. He also asked whether near 30% asset concentration in VLCs is a regulatory or credit concern.
A: Management said both Microsoft and Oracle are building fast but Microsoft likely has more individual sites and more opportunity, especially as it continues buying land. On concentration, they said they're comfortable because the VLC tariff has strong financial requirements and credit support, assets have long-term sign-ups matching depreciable life, and having two large customers provides some diversity.
"I would say right now, potential Microsoft has a little more opportunity, especially as they continue to buy more land, if you think of our current five-year plan." — Scott Lauber (CEO·CHAIR)
EPS cadence, ATC timing, environmental review
Q (Brian Russo · Jefferies): He asked if the EPS growth cadence follows the capital plan and whether VLC generation reduces equity needs. He also asked the construction time for the ATC line given the refiling and whether the DNR environmental review is an obstacle after the Port Washington settlement.
A: Scott said EPS follows the capital plan pattern and earlier capital could create upside; he estimated ATC construction would take about 12 to 15 months and ATC is ready to start as soon as approvals are received. He said the environmental review is not an obstacle, is net positive to get facts, should be manageable, and is expected to be done by the beginning of 2028.
"So this environmental review, I do not see it as an obstacle at all." — Scott Lauber (CEO·CHAIR)
financing plan and VLC cash inflows
Q (Diana Niles · JPMorgan): She asked why equity was relatively unchanged and how debt/equity allocation shifts under higher interest rates. She also asked whether VLC cash inflows include upfront payments or just cash recovery and how rating agencies view those inflows.
A: Xia said the plan assumes conservative interest rates (in some cases upper 6% range) and they hope the commission reflects higher rates in the rate case; debt versus equity mix is driven by cash flows, and more cash from operations lets them use more debt while keeping strong credit metrics. Scott said they are not assuming any upfront payments from VLCs in the plan, they assume cash returns on CWIP, and they expect those cash returns to be viewed positively by rating agencies.
"In the plan, we are not assuming any of the upfront payments from the VLCs." — Xia Liu (CFO)
plus timing and 5-year CAGR
Q (Steve Fleishman · Wolfe): He asked whether the "+" applies to the five-year CAGR or mainly to 2028 and 2029.
A: Scott said the "+" is more representative of 2028 to 2029 but they feel comfortable that the five-year growth rate, assuming no wild cards, would be at the upper end of the 9%. He added that as plans are updated they will fill in more of the latter years.
"Right now, I would say the plus is more representative of the 2028 to 2029, but feel comfortable over that five-year growth rate, assuming we don't have any wild cards here, would be at that upper end of the 9%." — Scott Lauber (CEO·CHAIR)
transmission CapEx amount
Q (Carly Davenport · Goldman Sachs): She asked whether there is a number for the transmission piece of the capital plan tied to economic development and VLCs.
A: Scott said the transmission related to economic development in their plan is about $1.4 billion today. He added there could be upside across the state as more VLCs arrive depending on substation and transmission needs.
"I think in our plan right now for the transmission, specifically related to economic development, is about $1.4 billion in our plan right now." — Scott Lauber (CEO·CHAIR)
does 29% include 400MW; Illinois ramp
Q (Richard Sunderland · Truist): He asked whether the 29% asset-based VLC share in 2031 includes the 400 megawatts and long-lead equipment. He also asked for updates on Illinois pipeline work, restaffing, and how that informs rate case discussions.
A: Scott said yes, the 400 megawatts and related items are included in the 29%. On Illinois, he said capital this year is down a bit because ramping up and getting resources has been hard, they are making progress, and plan to ramp to about $500 million a year starting in 2028 while adding programs to recruit and train workers.
"Yes, it is. It is all a part that we think is going to be paid for by those very large customers, and that is all part of the 29%." — Scott Lauber (CEO·CHAIR)
what $10bn covers and VLC share
Q (Paul Patterson · Glenrock Associates): He asked how the $10 billion incremental CapEx relates to the one gigawatt of demand and whether the $10 billion is mostly VLC-related. He also asked whether there are customer deposits, CIAC, or prepayments associated with the CapEx.
A: Scott said the $10 billion covers a combination: generation (they need about 1.4-1.5 gigawatts to meet MISO), transmission, long-lead equipment, and distribution. He said probably about 8+ of the $10 billion is related to VLCs and Xia added that about 45% of total capital is VLC; they confirmed there are no customer deposits or prepayments included, only credit security like letters of credit which are not in the financials.
"I think as you look about the $10 billion increase, probably about 8+ is related to the VLCs." — Scott Lauber (CEO·CHAIR)