OGE Energy's Q1 2025 Earnings Call: Navigating Contradictions in Data Center Demand and Load Growth

Data center demand and pullback, load growth and EPS impact, generation RFP and CapEx update timing, load growth and rate case frequency, and data center demand and customer pullback are the key contradictions discussed in OGE Energy Corp.'s latest 2025Q1 earnings call.



Robust Load Growth and Customer Expansion:
- OGE Energy reported 8% growth in weather-normalized load for Q1 2025, with the residential sector increasing by 3% and commercial by 28%.
- This growth is attributed to sustained customer growth, with an increase of 1% in customer numbers, driven by economic development and investment in the region.

Grid Reliability and Infrastructure Investments:
- The company achieved 99.975% reliability, a high figure considering the severe weather conditions experienced in the region.
- This success is a result of ongoing investments in grid strengthening and technological advancements, ensuring minimal outages and rapid recovery during extreme weather events.

Regulatory and Economic Outlook:
- OGE Energy anticipates regulatory rate reviews in both Oklahoma and Arkansas, with plans for a midyear review in Oklahoma.
- These filings are part of a strategy to maintain low rates for customers and encourage economic development, supported by positive regulatory outcomes and potential credit accretive legislation.

Generation Capacity Expansion:
- The company is progressing with the construction of 550 megawatts of new generation capacity at Horseshoe Lake and Tinker.
- These projects are part of a strategic expansion to meet future demand and comply with SPP planning margin requirements, with regulatory filings expected in the near future.