As per its first quarter 2024 earnings call, Xcel announced it accrued a $215 million liability to reflect estimable wildfire costs it could incur related to its involvement in the Texas panhandle wildfires. The company?s estimate of $215 million reflects the lower end of its estimable range. We therefore anticipate that additional liabilities would reduce the $285 million in insurance coverage that it has remaining under the current policy. We believe this puts Xcel in a tight position with the wildfire season yet to begin. Any liabilities over these amounts would likely need to be paid by Xcel, which could weaken its financial measures if funded with incremental debt. Our base case assumes consolidated funds from operations (FFO) to debt
