FirstEnergy (FE) 30 Oct 242024 Q3 Earnings call transcript

Hello, and welcome to the FirstEnergy Corp.

Third Quarter 2024 Earnings Conference Call.

As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Gina Kathy, Director of Investor Relations and Corporate Responsibility. Please go ahead, Gina.

you. Thank and Third everyone, Review. XXXX to welcome morning, Quarter FirstEnergy's Earnings Good

Jon Vice President Brian he today, by Officer, Chief will our will joined Our Executive call Tierney, and Financial and President Chief lead our be Taylor, Officer. Senior and

presentation release, financial related website and on information firstenergycorp.com. slides available our earnings Our are at

SEC Factors from will our our results cause measures. include non-GAAP The these Today's found could statements filings. use discussion be financial measures non-GAAP today's supplemental differ materially of that of the and forward-looking can the financial forward-looking presentation statements. along information, appendix to reconciliation in includes of with

it's Now to over call to the Brian. my pleasure turn

Thank quarter also provide today our the strategic will address you, value proposition for will review you your and updates. offer in morning, performance I recent on review Today, joining critical Thank industry for the I issues discuss and our financial shareholders. Gina. key third us interest developments, regulatory Good everyone. updates for in we FirstEnergy. and

at share earnings per $X.XX third to continuing quarter compared share operations were per $X.XX Looking results. the XXXX. from quarter of third in GAAP our

of across segment. that rate FirstEnergy XXXX offset Operating our earnings of compared from included corporate of $X.XX not integrated the of XX% base by from dilution primarily segment share benefits expenses, were versus in investments tax businesses. the $X.XX for weather were and all XXXX, storm-related which the quarter These Transmission tax did Earnings rates XXXX, implementation in and formula repeat of new higher quarter benefits that were our absence higher year. for impact distribution sales, per state our this in recognized in the to items primarily the from state the benefited more normal sale

executing some which including job in deferred do were storm great expenses, for recovery. We our financial operations efficient and their to of discipline significant continues headwinds the team Our quarter, on against focus while plan. maintaining a experienced not

earnings guidance the to I'm Our I'm within our that of our to team culture proud right headwinds, discipline responded priorities deliver building and value demonstrating we and we for and sustainable and values our customers, team resilience quarter on range. focused are work third core and the ensure confident that shareholders. achieve communities to their

Today, we are to earnings to $X.XX previous of $X.XX narrowing range per our share. from [indiscernible] [indiscernible] operating range our

focusing meet for we In offset number XXXX, significant of us headwinds were deferral. During requirements able the we and the storm financial the development to on regulatory work. is make This not did through that cost adjustment. a realized leading quarter, capital savings costs guidance to

XXXX We plan of well a are provide billion through to long-term by to reaffirming X% the operating work average plan earnings We of our plan driven XXXX X-year annual CapEx update, to comprehensive rate growth growth to our rate, as X%. put $XX X% including in is next which our early financial base goals. XXXX as foundational more a year. support annual We've

make financial meaningful Now plans that value premier We'll customers. to investments and company. a against become we're regulatory electric executing deliver continue operational, our to to our

investments totaled of months increase quarter, first the third $X.X capital to the X an Through compared XX% XXXX. our of billion,

multiple Energy agreement this states expansion with distribution increased believe Investment in cost-effective investment in over $XX XXXX also execution investments. a leveraging lines several in PJM $X.X solutions development reliability Dominion with We're incremental transmission plan, projects existing within allow the a which territories. plan These reflects joint Virginia corridors higher those joint businesses. from development buildable collaboration to of participating of stand-alone investment will $X.X proposals. formula We Electric billion community EnergizeXXX analysis to constructing Plan. regional new XXXX billion, ranging from our systems plan each primarily and and facilitate execution our XXX-, XXX-, transmission enhanced regional Power footprint. in investments, to XXX-kv and increasing relationships are to XXXX XX% and transmission collective solutions include of We transmission The our transmission We of timely the constraints, in rate in American service company's several for and entered expertise PJM's manner, strength, of propose into confidence our new in and will use different our the is operating billion voltage across long-range

in these the billion the parties joint solutions planning submitted collectively totals most portfolios development September, to options of multiple of In The comprehensive investment. $X.X competitive process.

of nearly by also outside projects the to the PJM year in the and are staff final development of agreement. joint February. to individual for at expected PJM PJM projects recommended end select FirstEnergy with $X billion expected the approval meeting late Board submitted needs that is

team. President Vice as new Karen for building of communities named She we at efforts benefits an than to our and our XX. and been and our to functions, recently labor workforce McClendon resources from to including human inclusive Paychex. has and experience, spearhead integrate reflective another Officer, most an we're more a yesterday, advance From operation our as made alignment vision. commitment will ensuring Senior standpoint, the capital unit brings Human our well of and Resources employee She great CHRO effective business be workplace November compensation, talent decades key addition serve. X strategic results seeing with human Karen structure. relations leadership FirstEnergy strategy, we will our responsible management, Chief to And the as

I am pleased Karen to welcome FirstEnergy. to

storm our transmission from This Pennsylvania Pennsylvania business, and and the helm recruited recent demonstrating company, driving constructive and the the results Ohio, building John took driving summer, a led New executives regulatory Doug outside Jersey. is inside JCP&L led since Jersey, response he at President our for rotation led case of Doug structure came separate Hinton board the XX to as our that through the consecutive to Mokoid restored challenging businesses. storm of crews Ohio team events New New new in and weeks performance. back-to-back unit business craft X storms tremendous to of our commitment new our X Our beginning Hawkins, to unit support the customers. on business stand-alone settlement, These Jersey, rate our relationships strong service In and events response summer. our summer customers. and Torrence at they had

significant In This most Cleveland XXX,XXX Ohio, the It Cleveland resulting in the since August to impactful confirmed distribution more hit system. for damage tornadoes, historic included was X area the in XXXX. disrupted than storm on the area in to customers. electric storm power X

agencies and original to workers, employees collaboration X,XXX massive totaled contractors this response with executed and a involved $XXX and including local and our level ahead us coordination of from FirstEnergy than thousands storm Our targets. more state more allowed high states. at and This XX million to of effort was government restore across than restoration power

for Helene is when We're restore dispatched received and is employees and their X,XXX community critical recognition a of communities elsewhere. them for by men our this these to and received and storm do our reliable assistance our our hallmark More hurricanes Milton. to proud media in to contractors were and step positive service. and power work own of together we're The I than women Ohio, and In grateful needed crews, country, fall from coverage help devastated for consistent, the in industry. we that our thank Coming we our communications. help response communities to outside we're

manage industrial compromise energy balanced Utility The including staff, a Turning with bills. reflects on This to commission that rates rate of Hawkins engage provides key carefully $XXX vulnerable made the the effect X, to rate settlement groups additional parties and improving additional matters. The user million administrative service a distribution Pennsylvania, settlement and December in upgrading years. trimming It unions. enhancements led recent in their I with our In Office we've stakeholders, the on equipment, time, John recommended and judge regulatory approved tree as ongoing same customers review. new resources We adjustment service approval the to effort taking month, help mentioned, builds grid Advocate At Pennsylvania Public January reach various the and settlement. customer low-income the in Commission Consumer levels. supports with anticipate in the reliability XXXX. law and it

we after our to filed plan to as Ohio consideration, withdraw referred fifth ESP careful electric security V. In yesterday,

discussed the of term ESP the have V ESP. throughout the not conditions key we on order As previously, clarity did give us

Specifically, conditions the vegetation through for and the rider rate base the distribution X-year capital our not only were the recovery management ESP. defined and period of case rider

Supreme until on rehearing being for grant IV result approved. will Although subject by an a Ohio in filed issues, we frame of companies is Ohio reverting ruling time The requested which VI order, these operation has to to denied a is the limited recent rehearing our application back commission resulting ESP to law. in the rehearing, the Court effectively previously ESP and withdraw, a had commission

by ESP case. next early year, base file review aligning of expect We rate to better the that with Ohio of ESP our review VI the

risk This reduce needed certainty provide the alignment our company. should for and customers and

our an case. end We Mod other anticipate Grid regulatory order matters. the year the to by Ohio Turning of in II

and $XXX in January all filed focused Ohio JCP&L's to financial recall, will meters BPU Program Efficiency this we to Jersey, settlement of for we Energy You our XXXX million peers. included a June similar Conservation our April, customers, our and expect of end-state are plan. on New partial In approval Plan. deploying automated costs in from XXXX for week agreement

As return its authorized a JCP&L on the program investments. reminder, earns included

and significant on customer system are EnergizeNewJersey, resiliency investment plan, JCP&L's includes to grid settlement X investments we Currently, which in substation and modernization. benefits infrastructure provide through years discussions over

will the homes. that XXXX, challenges XXX are electric energy to we look to customers, future forecast rapidly AI center and data X/X consumption of needs U.S. coming system. of hours of to our the the by the electricity must share we to use U.S. As of equal terawatt U.S. address that approximately triple Analysts

study facilities more tripled or In our XXXX. to more have megawatts requests load footprint, than of already own compared XXX for

data will high and that cleared July bills June generation customers to increase new PJM, support While impact that monthly we the year. our we investments, approach there prices wasn't to any thoughtful have in existing In protections dispatchable appropriately capacity our auction. adequate XX% that have Despite that residential next the about ensure manage record are in we center produced XX% to beginning of by auction transmission being prices, the capacity risks.

we issues on customer our and behalf us thinking customers appropriately that complex of demand and service support and concerning supply This require affordability. needs. These as X about are to strategy million energy to think is long-term customers' reliability side

challenge electric always collaboratively to of our address customers' across industry affordable and service, committed the will our to ensure this We we're reliable and advocate behalf. customers on on to behalf working

a supports We are and increased reliability also experience enhanced modernization through resiliency through cleaner which significantly flexibility. and load and customer laser-focused on the grid investments improves plan, operational growth grid executing against communications. tools and our investments, It

benefits returns Delivering fuels offer we to to value proposition communities compelling our customers these and attractive and the shareholders.

XX% XXXX of year updated and than full $X.X invested Our originally plan investment the is more in we X% than billion budgeted. more of capital XXXX

such investments reasonable regulatory risk a FirstEnergy infrastructure case offer process achieved that outcomes with to support ability our and together long prudent we Pennsylvania affordability customers, With runway Our the incremental demonstrating as strong our to settlement, attractive our our reach PJM's rate RTEP customer our another growth. support profile. and experience milestone, position opportunities for constructive

Our earnings in upside This return represent potential. yield business. growth strong year-to-date regulated driven growth improved earnings is shareholder by core and with that represent compelling results a dividend quality our

deliver we culture to have our are and I'm a this We proud we've the plan. on the financial made This progress right the and of future. strength building about excited FirstEnergy. is and new team

With that, over the Jon. call I'll to turn

you I'll on update the good our financial initiatives. performance our and joining call. economic Thank and for trends details provide a Brian, more and provide an Thanks, customer regulatory few matters, financial and address on morning.

Let's of our performance. financial with start review a

end share Our low were plan our earnings Operating range. versus guidance of earnings storm expenses. were a mostly $X.XX restoration third quarter of by the impacted at

consolidated experienced As the Restoration large that the in for closer regulatory a been Absent Jersey resulted of to storm XX% meet number of deferral. storms including Ohio, Brian would threshold about represents mentioned, number have in this our guidance the range. not which quarter. midpoint activity, and we O&M, activity a of O&M storm did non-deferred we of the $XX in million unusual New

with QX to corporate the were compared In year-to-date rate this investment rate the which the customer $X.XX in balance last restoration state business, per or mainly plan in the The was to formula remaining by distribution June a costs earnings This mostly million X to $XXX our of deferred our significant the were in in are tax and per from In of quarter mild partially share year, V $XX storm included impact fact, third amount of higher last which offset benefit O&M investment ESP for million, $X.XX a share of sheet. year included the our in about a included Ohio total share growth base share $X.XX programs, reflects temperatures quarter XXXX. segment. effective items, year. in $X.XX the in that other demand, compares

Operating higher throughout what consistent our the a with storm offset increased over expense partially of transmission base distribution Virginia formula higher investment by have reductions West rate rates by rate Integrated XX% this and expenses. financing were new expenses. segment, and seen increase New in business year. Maryland, Jersey, and which offset in This reflects restoration in base year, the $X.XX a storm lower share, programs costs, is In we last earnings restoration implementation growth

was $X.XX our of Rate result In last share than the third $X.XX this a interest by to as share adjusted transaction, more a but $X.XX the program, Brookfield, operating a for increased closed for were in year. share XX% Transmission base transmission investment transmission year. XX% from quarter. a compared offset sale of this this of earnings the to quarter our of When stand-alone dilution March in which year-over-year FirstEnergy increased results segment, the

quarter effective Corp., to segment, our XXXX of $X.XX a from in reported Peak. $X.X last expense loss recognized well in The FE of of in offset tax absence $X.XX third third XXXX as that lower Signal were from XXXX. billion in share as in consolidated earnings quarter benefit tax largest a $X.X These decrease in Corporate a of billion interest third planned resulted the by a average versus total a share. difference a rate a $X.XX of we earnings in were lower a state of outstanding partially the the from year, reduction XX% at Finally, drivers quarter share of debt QX a

business, Turning to Those OOCIC charges settlements in investigations. Year-to-date legacy our took that year-to-date formula completed in to the Integrated higher the below matters. quarter storm of planned basis. for we the growth results. and from drivers. I'll primarily move to offset sales normal the on programs to third House last a demand as year-to-date are reflect still expenses, and operating work rates Signal were stronger second SEC beyond year, compared quarter, FET lower These our investment and Bill customer restoration rate we remind X the new related resolution the partially transaction by earnings were Peak you although weather-related other impact operating planned and earnings during base among

to a quarter More our per of highlights the reflecting the QX yesterday a This be that and the Brian adjust for Residential year these V, to of have of increased which website we reduced as QX. us restoration address And by guidance. narrowed the midpoint year-to-date reductions required expenses in $X.XX revenue annually of we financial storm turnaround and QX June can we share plan, $X.XX on impact to X captured our million mentioned, the ESP IR O&M original DCR to X% impact strategic posted this per versus found winter, our our detail year although versus of million guidance and reflecting that relative our of $X.XX The third in to in items share, of the did challenges, in And we our impacted $X.XX share from share. a some to guidance to a this beginning down midpoint weather is results mild $X.XX $X.XX afternoon. see midpoint $XX document demand although of guidance. year-to-date series unique our reflects year. the from O&M Ohio

Turning to regulatory matters.

experience. supportive as million we to settlement the was Pennsylvania, base As related agreement, investment not the $X $XXX vegetation projected Commission higher approximately relates be programs includes will in grid cost this the and which such program Brian of provides the ALJ $XXX service and of enhanced million view settlement in a request mostly settlement. as million, also cost revenues an mentioned, future constructive expenses, XXXX improve accelerated original on settlement investments the supports expenses, the It $XXX the to now settlement to incurred. reliability, service, billion in rate recommended which the the for rate in management of We and assistance increase depreciation metrics. and our based while storm The customer proposed base our difference reliability on of strategy. recovery net The between and Pennsylvania filed our approved strengthen enhancing an of case and

increase includes This The X, stabilize provision revenue January rates residential XXXX, the new is X.X% electric below a rate adjustment our which average bills, would cases XX-month To remain our cases residential for regulated increase better our stay-out represents of investments our rates peers. X% of end-state once a $XXX customers the with revenue serve consistent and provide rate settlement over for until result base outcomes nearly plan. in These settlement allowing to annual in X period. a constructive to customers. utilities approved our adjustments million,

this findings. to concluded new was $XX,XXX And with amount the customers. House also no on Ohio the knowledges uncertainty work V the completed charged ESP. X ESP approximately The in quarter Brian to with is Bill refund Ohio, in certain and an already are withdraw reported respect ensure avoid was of addressed that in mentioned Ohio the that related appropriate attachment report The form ESP agreed programs that V. The audit key pole to In decision that political rider to rider charitable to with our spending to objective get the provisions clarity interest. we conditions, audit

month. the audit earlier in separation this held were hearings corporate Additionally,

total efficiency, expect reduction week demand mentioned, energy and through efficiency as we XXXX that XX The program In and $XXX years. for June conservation will earn Brian and a equity final XX% New order the $XXX includes energy over on equity return recovered and in Jersey, investments XXXX of ratio million decarbonization. January program this X.X% an that of building million addresses of our be peak

in and line last chemical residential positive, demand and growth unemployment seeing automotive trends all region, including Customer the We're average. by in the respectively. states an about of economic with overall. commercial and economic rate U.S. and GDP increased at are positive demand X growth remain load Looking with remains the X%, activity in weather-adjusted months, while and X%, growth essentially industrial over led of approximately X% load XX flat, sectors load X% our

Turning plan. investment On all October position by year. increasing liquidity overall $XXX credit the extended company's maturity to position by programs the our by JCP&L's on liquidity facilities X date liquidity to we and accommodate increasing and XX, financing its enhanced facility million X

growth. Moving $X.X committed billion forward, FirstEnergy its support liquidity and have subsidiaries to of

XX, including of As liquidity, on approximately FirstEnergy's October hand, billion. total cash $X was

long-term XXXX, an far plan, SEC companies rights. transactions strategic totaling weighted X.X%. coupon of $XXX registration we've average our our private X a In completed as financing So in at FET early $X.X million a of launched part transaction operating billion debt September, with at in regulated offering debt

used S&P. several remain issues, We a considering issuer notes on JCP&L profile and to the our from recognizing X flat audience progress with transaction, being earlier positive subsidiaries million greater XXx deal X.XX%. credit notch oversubscribed. And ratings subsidiaries X received of Corp.'s our the weighted at the upgraded upgrade. BBB- coupon investor This notes, finally, outlook will and FE of priced on unsecured improved a resulted in Fitch FET credit similar transparency be structured in regulatory tranches average FE transaction. BBB month, senior a outcomes, unsecured redeem and broadening and $XXX certain and is constructive Corp. to which legacy with this

in XXXX our We and premier our the a has milestones position to on investors. been and we delivers marking exciting a customers, strength build opportunity electric momentum year good our very financial and an are communities become believe value important several that company transformation. to in with

Q&A. With the open let's that, call to

of Shahriar comes [Operator the Guggenheim Instructions] Pourreza question Our Partners. from line with first

and load customers guess X.X similar over PJM Those any Pennsylvania in the week, you projects? gigawatt. Is guys ATC real Last megawatts X kind deals load with of and would these trends co-located indicated some there and with the slides of spend nuclear increases a gigs with submitted guess one in kind X filed are great. committee could be these incremental gigs XXX being certain assets of being color I guys X indicating some in customer some the in I zones. Ohio that and with -- of APS in how correlate gigs are you area?

Thanks for question, the Shar.

studies design We these XXX requests conceptual in are definitely conceptual XXXX, of for we've In seeing or over had studies. megawatts for requests an specific load and detailed load increase large XX or either more. load

think we talking people so locations, specific it's investment about are specific plans. real. us And to These

know, you places we serve where industrial a we this As where to there had capacity we other are have that and like our own aluminum previously at number smelters scale. large transmission have shut have where places centers, down, customers of power plants

our think having the us. And are People have -- to it's the these from believe we transmission we're land capacity. real There's So folks. looking we that with discussions available. we

Some of things are public. these

places of in seen the Maryland. Panhandle You've like

campuses. and very, large be meant interest to just Virginia very Valley. is like Ohio the in You've there, center and lake is to other call Virginia, the West along a quantum Northern of data what which expansive it's River across and heard seeing load the load, loophole panhandle Maryland border the the about we're things relative then And they capacity which there from

to to and are real, conversations when having we with they look online. where as those about detailed investing it's serving on customers come people system, it's to they're going So The coming. and be forward our we're

customer they Brian, customer confirm, over ones a meant data Are that one, gigawatt X. of is it centers? just are if any the you Can because

say yes, I are. would they

like of ESP things ESP GRC treatment? of all in the the the given filing looking IV. first moving vetting Okay. while, V And on complicated the a is the unrelated financial VI, goodwill dig back the can to lot while And lastly is this into through ESP GRC in impacts reverting kind then kind It's of pieces current you juggle. at just riders. Perfect. does time withdrawal, mean kind to number I of in PCO maybe a from just just the

maybe So there. just some sense

Yes.

case. the general implications The -- -- withdraw covered are didn't general we idea financial was general simplifies certain that not ESP would the ESP It's the And riders It's the more answer rate V us the covered where are the this to of the the talked case, in to rate the the said, and punted risk we Shar. of out. opportunity question, time rates be will and general and VI. this with V case rate people riders of So the case things this significant. should of were the complicate to beyond really ESP be that a appropriately that. so got alignment does about really We've for puts come belong VI rate thanks didn't now actually in know they allows our ESP in what their treatment this And when play.

versus much avoid we -- our Ohio And This something But more or a it's withdrew ESP rehearing. to ESP than rather rehearing, of an not tipped a play this Court is and risk really VI. really order reduction the that address V the Supreme then out IV hoping hand. in these is are of play to around financial opportunity on

guys week. That's see super about perfect, helpful. I'll you a That's in Okay. Brian.

of the from question Campanella Barclays. comes Our Nick line with next

question Just one tie just follow-up a Shar's quick that off. on to

behind the growth system you're kind about things but Can bills and XX% how think Just just rate facilitate with request, the execute higher to today of against requests? still that large capacity for against X% kind load is build kind distribution loads, somewhat XX% we of still you related, of like outlook? on a flagging PJM. that on should these to then How large your outlook? base increase in like an those much meter separately, potentially transmission targeting the And

question. the Thank you for

center First, was it's capacity with that said transmission several I operating thousand used have we on mostly loads. have associated on think that or megawatts serve large we customers like to industrial either the and that are be no places. have, that for moved capacity earlier, And capacity we able data longer to other other transmission to power plants of

existing or want we that right? that amount that's more we that's a for over more positive capacity just be a unused customers, customers, as actually large to to loads. and customers for and consuming good center taking by available And capacity have other remind I We're people they're think that's existing existing So units consumed for it data capacity. significant unused spreading rate of

People 'XX. these that term In terms and headroom of thing concerned sending and like, in net dollars capacity. enhance sure signals And signals. of about the increased spending rate impacts customers is incremental the term we're near take talk about capacity up in in are those We're they're auctions the to price new and dollars. capacity getting not the our going reliability result price real capacity that there that for auctions long XXXX cost are the or and that they actually

that. engaged about add concerned regulators, to we're and are We're about solutions that new customers that that at so in would to about. actually looking costs legislators, bring reasonable And discussions talking be capacity to positively

to that our with think on customers prudent are to but our dollar regulatory asking as we're don't get recovery the for we as think making, to spend we we're are being others be electric impair that today need costs the well that every service. So that for ability to that going passed investments

that the does good settlement and lot ROE Yes, a is a like But and would sense, have to like question, that Pennsylvania in XXX see improvement material. you comments makes know I Quick we'll ROE Pennsylvania of be showing filed and in there. earned and December. in it $X.XX every bps your X.X% I just appreciate are for September, order seem

lagging? regular Just Or are to 'XX? to about Is should going get think a be this? way of still back return to you kind you here in that the

Nick, this is Jon.

application. was filing X.X% on in that the the that So based made we

million revenue $XXX adjustment. net the requesting So

So that expenses to that included increase. rate of lot a proposed support

Now level return have be we'll place, in the more in much a normalized the that terms at settlement of we there.

Our from next the Arcaro of David with Morgan question comes line Stanley.

might be to PJM. more on discussing of elaborate of in that some able options you generation those if in getting Wondering mentioned terms built you you're

Yes.

there that some certainty be PJM of think there are that there that capacity coming seen the auctions bring coming in capacity. outside of that sending a So you that NIPA, result we I things state relative capacity types like capacity I of certain in out hope are are might to net on. bring could constructs And constructs or NYSERDA, auction have incremental board market solutions of that we've agencies that construct run there price where on worked, new signals to that have will think --

going that effective type, all capacity of new and on in could in could in Pennsylvania, say, places I in know a cycle milestones you'd that, to ask to see XXXX could, year net that Maryland that where could, utility that. certain through I'd companies like certain a a be delivering you that a And and on delivered would state. bid IPPs allow Ohio, state certain given others, of generation combined XXXX, like companies year new agency everyone nature being capacity was a comers design to bid investment a dispatchable be and net could. contract

with you with be real have solutions real hope I it's just counterparties actually sending that real like And milestones. will price effective, than rather think auctions signals

needs will that, you'll So when state know it. there the be that capacity

all I Got as these helpful. load That's the several out look all guess, you then years. it. And over next requests, out it. Got at

in longer-term own terms you and a what in terms you're forecast. wondering your give of growth? outlook your might Just low for new what of are When expecting at thoughts load reassess looking

Dave. Yes,

now think likely the the call that early right fourth plan quarter next plan. we I update current to is provide as the year, So on longer-term update

rate think the the as as long-term to I well So call. is growth CapEx to quarter fourth guidance sometime XXXX a give plan plan XXXX yes, on -- and XXXX

of question Wolfe next Our Steve Fleishman comes line the with from Research.

Yes.

Is midpoint? I growth that... wanted I -- reaffirmed last to basically been the some there's just to X% year, just challenges the this clarify, off but So year's X% you know

right. That's

So million. it, $XXX to about year's the off think of was million the midpoint last $XXX way based

based growth forward to is be going $XXX Our off the going million.

Okay.

-- to lower down to half. going going go you're not not you're to So right, this

Right.

back And DCR for manage ESP, period rate you relief. with the on you do then -- one going to Good. hand, just you on other 'XX Pennsylvania as the the just to you specifically, get Okay. this the but get -- But the prior have then hand, back.

So be okay growth X% to is that X% 'XX rate? kind within of to

rate Pennsylvania the think the you plan mean Yes, our that financial case, CapEx create plan in that's organization, to year. the our the formula plus really absolutely. we terms amount think need I next if of about we in good driven discipline for about rate you feel about

Generation to state Brian, of the like. idea be question the legislation? states, key maybe, about your prior Okay. and agency build? like then And In require Good. a the they would back without Solutions. in key mentioned you a The Or would -- feasible those

require themselves definitely would builds necessarily West a would you'd of Ohio, changes like but utility have solutions think not agency described Pennsylvania legislative where and Maryland changes state require what New and Virginia, include in Things in Jersey. legislative legislation like action. would and in I I

interested in that. us to not we'd an are competitive generation. generation we to do state's If to come long-term when We would consider would adding if regulated that agreement, like the a state in building interest was

bring have and comers in states from less the be opposition likely a problems that I strong places way something think get to might from commit lot are others. opposition others IPPs and solutions have state like think the auction, all of would like a they to their a I build would facing looks like the If in camp. that IPP we'd to be to But that to

question of Our Michael the comes ISI. Lonegan Evercore with line next from

equity no the So financing you have employee your in plan beyond program. benefit

you're with think about financing Just lot needed incremental do to you spending, be equity? funded a see we investment highlighting opportunity. that additional that what How portion of should new

Yes.

business, of to quite of of about that going window mean, that, is would a be which depending of about if even transmission the And some in 'XX the our at And solutions, in planning be might to we're and of a X% additional CapEx the outside and opportunities some obviously FET to I the look with lot talked the frankly, Michael, Brookfield. current different So some you metrics beyond. would ownership we equate at on pursuing, cushion we billion. types be of $XX before, fall that would that have XX%

we're everything on right based know now, we So current comfortable with plan. our

expect Great. costs Where on end secondly, quarter. versus do your the you obviously capital you XX%? just year this you your so And then XX% XXXX during debt to and program SSO the talked to storm metrics, higher some about to increased cushion had targeted in

Yes.

a under I So back saw SEC XX%, FFO. of events Cleveland million impacted those in be year, X of that about were payment well just OOCIC as was and by that event August. the mean, $XXX unusual in this alone we storm and as probably we'll lot

So out XX%. closer I if you be to and we'd that were think strip normalize that, to

Crowdell comes question with Securities. line of the next Our Anthony from Mizuho

I could storm the question. on follow If up

a the for you'd costs how threshold I happening Does again? do guess, anything get rider from or maybe could that that I to that change a utility forward respond regulatory to or, think or didn't you said meet of some the maybe prevents for storms capitalization. something recovery going

would So we how to storms, respond never Anthony. change

us. a haste dispatch restoring to We storm for customers are with as to not who return our serve and possible activity. to as due always will with are quickly and And to safely of work all key priority as going service be out customers

that and that to the on even with at consider we would recovery I quickly we will to certainty spend get others we also it don't work get we'll people as we and what to for we much comfort always, like restoring timely back sure prudently to some how timely we We people can, service. get as costs what for incur make same have think regulators time, recovery us should storms. and people won't, but

there's think there. I a So balance

people service, us. and we just thoughtful spend spend. at any to be all, for a regulators to, want think year for to not spend we everything dollars get the storms, remarkable that It's about prudently us dollars comfort we to get back wasting not a but to we'll recovery need been prudently what I it's and have to

think right, hit that across offered ground assistance the and we mutual things how Cleveland the people are Cleveland see DT&E, with localized neighbors, resources was they basically only a the PP&L us such and you're utilities Cleveland fascinating it other It like the area, I neighboring area had And seeing event day AEP, they next was on And storm are and immediately our us I August get actually Public It right? helping country. and who the my friends X at in happen. that the at Power. restored. friends others in our it us

those It events restore to privilege to people then able those dire hurricane to was our be for they interested were that the to circumstances And us had. favors go, in for we return help a to absolute that employees where the go our go, willing to communities circumstances service. happy me during tell that helped

So we what people. that we're fair comfort people spend get have we to recovery returning we to prudently certainty it's going we that spend need we'll and for what think do to back, get and

some capital updates Great. a think had plan, and I said unveiled today. you X% And rate you lastly, the growth to of when X%

that as now plan Does by capital X% growth we towards CapEx than Should trending X%? you is land thought. your you X% would think the to you more think higher higher the in rate? you're change X% roughly where end you originally EPS your think increased I of

over that increase that $XX growth. X% X-year CapEx gives over that's X% Anthony, average that previously, CapEx of billion really period, the The the rate and plan X% what XXXX we originally drives of us out X% laid on budgeted. plan for about was growth base So to

in our regulatory make by XX% a significant and And remember, that. that that properties percentage, by regulated It's range. about within still are we're timely the of covered and So our recovery trackers investments still being investment we of riders. driven

generation Great. guess to cost. one talked options on to Steve's you I just squeak question could David's and If add about in. solutions reasonable maybe I question, at

solution? think like charges or some it? how You York. on customer agencies before these capacity do in you long mentioned to government just by state think bills I'm curious New timing the do impacted are the state what Like will here a mitigate the you act is

Yes.

a So years. that's and to system and load, X is concern, that really center permit, about of timing Anthony, plant in about power years or construct for it data the probably to X add adding between significant other, order disconnect the to the can takes be X you whether amounts of the load the to construct in of procure

states matters X needs capacity take do years their to the hoping So intended a capacity before the pay are think to auction this these Virginia, prints hands, new signals next be the from into it, capacity concern. effect the X net traditional up from are the West and It's sure I And years own signals now. to our than have customers that way for higher any state shows price when like going states the would market? is better price IRP there sent that rather do being

Our next question comes from Seaport the line of Angie Storozynski Global. with

have it the last in new power intervention how it up take X-year anyway, solar build right? that's those a the plant competitive long market? different about capacity dispatchable guys in you're So you been wait. to impact wanted concerned availability the clearing mean $XX. on plants comments were recall how about I low versus don't would you would follow power when prices opposite some I these be how just to of don't So prices that guys remember capacity I Also, the comment PJM? at making mentioning will

and during years, that have way someone from years a doing you of construction comments, you it last can you're build -- -- result to that the see permit -- sure to I'm for and don't would construct your to I to from where those first about today their part question, the PJM now. versus can but your that. take that Well, The you actual people your hoping that power a the does to you a is X time like in with do X plant years an not to comment, of are X procurement was respond them a difference where contracting auction permitting, monitor capacity

different are monitoring contracting, And between difference a hope. verification and versus it's entirely. things So those X

mean is basically no? one X that's regulated But is a how market. up, it but the works, competitive Right. a I set other

have where not you a utilities, winner is and right. that is investment What come companies, a would where that from an a build say, talking would I'm companies, you do would to that's then auction, comers, have insurance what charge it, to would me state No, -- can what have offer do auction, and price all And IPPs, construct an about market be. a auction. we you'd your have

solutions. from So so our market. saying, both yes, I'm market it would and markets be And are And there. is both go what would a you

Okay. when secondly, an area. think, about your power flows the But in especially, Ohio. Pennsylvania, I at is in so from I capacity actually talking look the of Ohio transmission Understand. you're Then importer PJM, power

states now So power demand for that wants flows the to Pennsylvania would up clearly it of limit in electricity seemingly into build Ohio.

on in So of fact is that imports power? fair given Ohio, add relies the the to load already state that

Yes.

transmission about So when capacity, I talking talk about I'm capacity.

able to serve So wires we capacity the load. have to be

generally markets. short, We needed power of need us this surety ourselves net we in What's are the states situation to states, are cost reasonable new power we PJM that's do whatever our a are are the happening to who as currently added. find who flows through need, from support in construct of. we then in region, with pool adequacy, a because out resource power divide enables states handled that be a customers, long, and dispatchable around where And that regional that and we're the as at you in capacity there

Ohio. then changing in about of ESP V And withdrawal Okay. topics the

understand by proceedings. will I I visibility. into quite to how But And now mean earnings that waiting X don't it least. if add rate -- we to your the I mean, Ohio. entire have a -- visibility say power not the XXXX, we as almost helps earnings understand was for to I be that now have So optimal basically, I it now mean,

So regulatory with down this on the isn't associated risk doubling Ohio?

No, with back this IV ESP and earnings base it. an better of rate case. to Ohio the VI And We certainty knew what we that to there. Angie, opposite. we of power was the actually We're had ESP in really we're knew transparency the that result going that our file the going timing the aligns

rather it will than actually risk. more reduce certainty So uncertainty, and creating bring actually

Our comes line Associates. of next Patterson Glenrock Instructions] from the Paul question [Operator with

you the So were that back to alternatives mentioning. capacity just

correct? mentioned with if you ability heard the Ohio. base, West question, that think doing perhaps you something I I rate Steve's correctly, Virginia, in Was of in and Maryland

and in there regulated utility West Ohio Virginia, to would Maryland, a in and And and get So certainly. are provisions law capacity build that generating for allow current recovery it.

seem you. what lower And were a into the -- said. a about a wondering, take would me to to others capacity, curve obviously, you've customers, actually and have market considering what's of markets. modest I So it everything so That's and speak, said have building modest account reasonable cost maybe think of or sort it capacity it this, market, to perhaps vertical guys the customers and dramatic I would that if going just makes it heard have to lot sense, I'm when on lot a capacity But just of be on levels and impact. you of just would with you wholesale [indiscernible] the the given impact to could cost it a demand

voiced market. FERC about process what I to and So your a -- to -- going lot what consumers that been rather efficient something given opposed more just simply process, of the Ohio capacity stakeholder of market these with the about What's a that Do more the follow you don't saying? see process, almost the you arcane, PJM maybe I'm through put I it, if way? go know more -- stakeholder how or that what Maryland forward to Pennsylvania guess just is appetite and seems wondering I'm as capacity like going all sense these already and the

I do, Paul.

in and policies got to here. just generation to to undue So add thoughtful sheet and this deregulated into wires-only undue moving returning solve us company a generation We're to and very we to company, be being the out balance at that it about be where the and with just business responsive time solution. of the help many spent their come -- got in of going capacity states but to stance. capacity of out a getting -- don't many going of investments try solutions We're of their thoughtful that energy risk up lot

one we're a is So number not the into open to going of to competitive solutions. open The business. we're generation

guess, Okay. guess, Generation tuned, right? stay Fair business, enough, I I Okay.

ESP that sorry, But what just for V -- approval FERC and sounds I'm missing me controversial withdrawing the a as I [indiscernible] see being this. then process doesn't follow-up like finally, -- outside, but need look is it you that it something do from the have be it so from like -- And from on -- just something? to a you that on could seems you, this --

that It Paul. before for something we've with should that took about seen approval controversial, in-state other it. it time that peers getting and be not a they It's in the month ask happen from

brief previously. go was So to through the obviously, we you're rates just should be own be And put going so back to controversial. need regulatory construct process, a it our that process, not should and everyone can't comfortable a we effect but into with it

from Karp Our KeyBanc Sophie the with question Markets. line comes Capital next of

the changes in Just the on quick that potential discussion market up wanted a the construct, you're right, about about. talking follow

new these power design of money from with this one there's state would the mentioned, how avoid Jersey, to Given subsidizing another to have that market you New rate are that work? those between them simultaneously there states in would Ohio, several Or Pennsylvania, states the right, act flows effectively with state? that cross the

state's to that Power your through amount making I According do do a you has. think is of Virginia solution sure Federal Thank serve PJM that state PJM generation the the responsible for traditional needs. don't capacity IRP the needed Act, using States West construct that through process that question, Sophie. states its so. for each like and has other to it that's a

done take states they they'd their signed on that. think If that's they having them are into many states some of matters stick that using. if they they for and of construct, what that's to on avail So can their even of themselves the the with like could alternative that But no, that own to and we working solutions have hands customers, in PJM. many suggested. directly, can their own act more already

deregulated allowed Got it. states just the generation utility clarify, that market to is legal own saying framework? in And it. are in though to you the Got the states current even

Sophie, generation. Yes. by the that again, And those for West And state in of driven Ohio are Virginia, and states, utility-owned our are Maryland, law. allow do state states issues

the Our next comes from Scotiabank. line of question Andrew with Weisel

be I'll brief here.

Just a pull-forward anticipate increase that spending And were XX quickly on these or specifically for kind months XXXX, ago? the Or was incremental it CapEx X drove was increase? opportunities what for didn't you the it? of XXXX? What

Yes.

of Andrew, was related. some increase, So storm the

our in August. had specifically the business, Ohio, in big So distribution they storm in

this it that year. needed There LTIP would it storm of fund CapEx for we distribution in opportunities, Pennsylvania work some of rest related. opportunities So what I consider segment. some well our was in then to was incremental transmission as And was the

still CapEx is $XX the but the billion going to take us terms mean, I in don't year. -- plan we next So of intact. I off that track it's for think

Okay. follow-up. Great. And then just a quick

the a that have you You to opportunities? have Do Or around potential mentioned, fourth assumptions forward make refresh a next call in of timing quarter would early roll PJM there? do around Will going you that? you're about and wins sense you year. on the Jon, terms transmission sense a

Yes, time. pretty good by we'll a have that sense

final there the Board approval in are February advisory several think the with PJM and then expected I frame. time meetings between now committee

So is on have we come we you And stand plan what where final we'll in let have a if that. and the depending kind of good that. don't sense have we of know of maybe to approval, outcome the what we'll and

with question of Ladenburg from the line Dolman. comes Paul next Our Fremont

going hearings? the and to could of the through PUCO. path you Does ESP ask at it What's I will was in V terms PUCO testimony getting walk if procedural involved approval? us to withdraw -- involve

Yes.

no was application filed. then case, hearings So The in and within Paul, month. a where There application we withdrawal particular intervening were different precedent comments a on that was order case the filed commission a There were XXXX. to there amongst have was there parties. in

on. So line of the we're that kind working that's time

there comments on application, So the within precedent. the on be withdrawal that then days withdrawal and on rule then consider would would my comments based is those XX filed sense sometime the commission

contested application the was And parties? you're Or the by by that withdraw parties? precedent it widely talking intervener intervener to was accepted about

there was some withdrawal. objected, the mean, sure sure There to was any I'm was there some some that probably supported like that it supported. was probably regulatory just I proceeding, are I'm objected some mixed. that withdrawal. the But that

The ability withdraw in is to legislation. Ohio codified

It's been executed tested by utility So it's thing. administered previously there. It's the a actually and and by and a before real commission. approved

So there's precedent for do. we're doing to it asking is what exactly

And last referring what it Great. type question, proceeding was of XXXX? to you're that in

Utility -- up. Dayton website. can put can It their You sure, ESP, I'm Power on Commission the up docket, was current pull you ESP their in and the Light & in

Thank you.

end We teleconference conclude does our And question-and-answer session. gentlemen, today's of reached have ladies webcast. this and the

thank participation. disconnect your We may wonderful this a you lines and You day. your at time, have for