Strategic Execution and Operational Excellence
Performance was driven by disciplined capital deployment across six constructive regulatory jurisdictions and the successful execution of 2025 capital plans.
The Genco business model serves as a competitive advantage, enabling speed-to-market for large-load customers while shielding retail customers from investment risks.
Strategic partnerships with Amazon and Alphabet have unlocked approximately $1.4 billion in customer savings over 15 years, with the potential to reduce residential customer bills by up to $124 annually.
Operational efficiency is being enhanced through the Apollo continuous improvement program, leveraging AI for contract productivity, permitting, and supply chain visibility.
Management emphasized a ‘pooled resources’ approach for Genco, which aggregates assets to match large-load demand with a flexible, ring-fenced asset base.
The company maintains a robust pipeline for data center growth, with 3 gigawatts in strategic negotiations and 2 gigawatts in developing opportunities beyond signed contracts.
Enhanced Long-Term Growth Outlook
Management increased the long-term adjusted EPS CAGR to 9% to 10% through 2033, reflecting the robust portfolio of data center investment opportunities.
The 2026 adjusted EPS guidance is reaffirmed at $2.02 to $2.07, with performance expected to track toward the high end of the growth range through 2030.
Genco EPS projections were raised to $0.25 to $0.35 by 2030 and $0.40 to $0.60 by 2033, driven by signed contracts with hyperscalers.
The five-year capital plan is enhanced by $7.6 billion in Genco and data center-related capital, while the base business investment remains steady at $21 billion.
Financing assumptions include a balanced mix of cash from operations, new debt, and $400 million to $600 million in annual equity through an ATM program.
Regulatory and Operational Risk Factors
A second federal order requires the continued operation of the Schahfer coal plant; management is incorporating flexibility to comply while maintaining reliability.
The company is evaluating future regulatory mechanisms and system modernization in Pennsylvania as it develops a response to a letter from Governor Shapiro and engages with stakeholders.
Genco contracts are subject to an expedited regulatory review process in Indiana, typically lasting 90 to 120 days following initial settlement approvals.
Risk mitigation for data center loads includes minimum demand charges, long-term commitments, and credit support requirements from highly rated counterparties.
