Xcel Energy Inc.

Good day and welcome to the Excel Energy second quarter 2019 earnings conference call. Today's conference is being recorded. Questions will only be taken from institutional investors. Reporters can contact media relations with inquiries and individual investors and others can reach out to investor relations. At this time, I'd like to turn the conference over to Paul Johnson, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to Excel Energy's 2019 second quarter earnings release conference call. Joining me today are Ben Folk, Chairman, President, and Chief Executive Officer, and Bob Frenzel, Executive Vice President and Chief Financial Officer. In addition, we have other members of the management team available to answer your questions. This morning we will review our 2019 second quarter results and update you on recent business and regulatory developments. Slides that accompany today's call are available on our website. As a reminder, some of the comments during today's conference call may contain forward-looking information. Significant factors that could cause results to differ from those anticipated are described in our earnings release and our findings with the SEC. On today's call, we will discuss certain metrics that are non-GAAP measures, including ongoing earnings, electric margin, and natural gas margin. Information on comparable GAAP measures and reconciliations are included in the earnings release. With that, I'll turn the call over to Ben.

Well, thank you, Paul, and good morning. Today we reported second quarter earnings of 46 cents per share compared to 52 cents per share last year. Our year-to-date earnings are on track, and we are well positioned to deliver earnings at or above the midpoint of our 2019 guidance range. Bob will walk you through the favorable timing differences in the second half of the year in a few minutes, but we are very confident that we will deliver on our financial objectives as we have in the past. Let me start with some quick highlights from the quarter. In July, we filed our Upper Midwest Resource Plan, which runs through 2034. Our preferred plan, which is supported by a partial settlement with various environmental and labor groups, includes the following key points. The early retirement of coal plants, starting with King in 2028, followed by Sherco III in 2030. By the end of 2030, we will have completely exited coal in the Upper Midwest. The plan also calls for an extension of the life of the Monticello Nuclear Plant from 2030 to 2040. It includes the acquisition of the Mankato Combined Cycle Natural Gas Facility and the construction of a Combined Cycle Natural Gas Plant at the Sherco site. The plan adds an additional 4,000 megawatts of solar and 1,200 megawatts of wind to replacements. Finally, we will also add 1,700 megawatts of firm peaking capacity post the 2030 timeframe. Our preferred plan would result in an 80% carbon reduction by 2030 and puts NSP on a path to be 100% carbon-free by 2050. We are excited by the opportunity to create a cleaner, sustainable energy future for our customers. We also continue to make strong progress on our steel for fuel strategy. In June, our 478 megawatt hail wind farm went into service in Texas. The project was completed on time and under budget. Our customers will see substantial savings over its life. All of our other wind projects are in various stages of permitting and construction, and we expect they will be completed between 2019 and 2021. These projects highlight the excellent planning, construction, and project management skills of our employees. Legislative sessions are now completed in our states, and there were some important laws that were passed. In Texas, three bills passed, a bill that provides the right of first refusal on new transmission projects, a bill that provides rider recovery for new generation, and a bill that provides rider recovery for AMI investment. These bills point to a more constructive regulatory environment in Texas. In Colorado, legislation passed that codified our plans to achieve 100% carbon-free electricity by 2050 and an 80% carbon reduction by 2030. In addition, the bill provides for voluntary securitization as an option and targets utility ownership of 50% of all generation. Also in Colorado, a bill passed that allows us to own EV infrastructure. Finally, in New Mexico, the Energy Transition Act was passed. This law targets a 50 percent renewable portfolio standard by 2030 and 100 percent carbon-free electricity by 2045. We are well positioned to meet the 2030 milestone. We are proud to be leading the clean energy transition. And the bills I discuss are consistent with our carbon reduction objectives and reflect our strong alignment with policymakers in our states. Finally, I'm proud to announce that Xcel Energy has been named to the 2019 Military Times Best for Vets Employers Ranking. This is the sixth straight year we've received this honor. In 2013, we set a goal to have 10% of new hires be veterans, and the companies reach that goal every year. Bell Energy currently employs more than 1,000 veterans, nearly 10% of our workforce. It's an honor to have these men and women in our workforce. Our veterans bring strong leadership, teamwork, and experience to their job. Their dedication and passion for service deliver value for our customers every day. So now I'll turn it over to Bob Frenzel, who's a Navy vet, to provide you more detail on the quarterly results of our regulatory plans. Bob?