NiSource (NI) 20 Feb 192018 Q4 Earnings call transcript

Good day, ladies and gentlemen. And welcome to the Fourth Quarter of 2018 NiSource Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time [Operator Instructions]. I would now like to introduce your host for today's conference Randy Hulen, Vice President of Investor Relations and Treasurer. Mr. begin. may you Hulen,

good investor Welcome call. and fourth the quarter XXXX morning, Muriel to everyone. NiSource Thanks,

purpose financing which Joining provide well Executive is fourth Brown, operations, The quarter Officer our today to an and this plans. me are performance drivers of growth Donald update Chief Joe review NiSource's and Financial on for on full-year slides as available has Hamrock, financial Chief of and nisource.com presentation the Officer. as XXXX,

the call open your questions. Following we'll our to presentation,

Before risks differ made from turning to that in the results to over looking. Joe included and reminder, some expressed subject Donald, Factors quick actual uncertainties the the MD&A floor to cause presentation and forward just could of filings. materially of during uncertainties be SEC and our Risk are periodic and a the is will statements concerning those statements such sections in These risks statements. Information this

relate on In addition, some recording of measures. made the this to statements non-GAAP

For slides that additional measures, I'd the nisource.com. schedules all the to at measure the GAAP of the information, refer please of comparable supplemental a available directly reconciliation like Joe. additional our and to full these segment With including over financial information way, turn call out and most on to

Massachusetts in focus Lawrence, Randy. morning, Greater Recovery you years Thanks, since NiSource's tragic of challenging in September everyone, for thank the history. joining and been one from Good has most us. XXXX our XXth. the was event area the major

which year our plan I'll a on execution business later. across Additionally, our service of on continued XXXX footprint, core touch entire was

efforts. those came a to the came for the Merrimack I recovery the of gracious and the of dedication provide of am tremendously carry restoration to deeply spirit resilience And who who report progress like have continued the been aid with long-term all for people on our Valley. a to our people Valley, continues. efforts engagement the of Merrimack reached thousands to out grateful phase and who with property immediately the together milestone to in I'd our major mid-December customers customers. the to commitments on was gas Once And in in we communities in restored, focus our with the restored in of service two all gas into moved effort Lawrence restoring supporting restoration. streets service We community. nearly Greater those continued First,

We ongoing new place municipalities. the to three in area and provide to put And dedicated in the further seven but have in resources and restoration to by leadership efforts. support a remain services in customers Massachusetts and we systems, our support team efforts continue not distribution to in across engaged humbled we're extensive safety only to states footprint. reliability our events our We enhance of the gas the

will to automatic have call, operating These I enabling committed third on in we shut-off As started down on more immediately across committed high irregular allow the installing of immediately to million to a the alert the estimated adding into how to at activity. precise system us top more to system any our in employees system, a these the integrating performance. the more that field will of is or event to We've advanced these on too respond system pressure that our devices quarter event in abnormal on over circuit and us also too We've with mentioned low-pressure like protection, have initially regardless of every They shut current view cause. us the and a the sensor coordinate better so devices our they operating work center priority. when are gas quickly systems our seven this allowing These low, additional low-pressure employees our monitoring status area. control is capabilities and breakers. will By operate designed team state systems tools, remote gas system in systems. pressurization perform all of install see our details $XXX comprehensive

regulator our regulator field survey field to operation part following further implemented enhanced is around third-party employees. And stations; low-pressure field and of reliable we immediately to enhance work we prevention event, mapping continuing steps practices These to details facility monitoring accessible the prevention the damage review damage options and of of other September regulator reduce engineering risk stations, end addition to by the inspection our took our XXth low-pressure all damage. of electronic practices enhanced and systems excavators. of efforts, As all all across of all of were including our new identify XXXX states of the a which safe; easily engineering and including all to design systems, our help

system management Safety work or despite seven extends decrease Our airline our the flight SMS significant the across increase the accelerating successfully in guard continued low-pressure beyond efforts We're states. to since doing to been systems used future by we're the accidents implementation of in against incidents a industry with management a systems. XXXXs. safety have achieve our hours

and with aligned framework the developed we Indiana of safety and is key in substantial. for incident a Virginia launched the framework stakeholders, The promote ensure its SMS learning deployment with the accelerated footprint. pipeline This Institute. well our improve is NiSource of pipeline and operators identify manage helps since American and scope Lawrence Petroleum implementation SMS before and processes, continuously SMS integrity. effective risks, by We Our across the environment communicate operation

provide nuclear We're Senior quality and gas across generation. and review industries. Hundreds aviation systems and of professionals in other new position diverse operations The NiSource Executive we have assembled the also from appointed of consultants other gas industries, backgrounds advisors have involved include will implementation. our board highly board of management and to people dedicated SMS provide are to independent SMS We review a and in a including implementation. standing-up a experienced industry a cross team safety functional who expertise and to employees with

We coming of expect members quality as implementation about well the as announce details review board, weeks. additional the in our SMS to the

ways three, to outlines some on which Slide XXXX. turn objectives Let's in NiSource key of the now delivered

estimated of from NiSource including Greater electric new more XXXX, customers, accelerated lower call mainline long-term. over possible and XXX replacement XXX generating customers fleet Lawrence. than healthy implemented of as natural per convergence enjoying as in cost natural repositioning electric in in priority energy increased of rates. range. Our We non-GAAP the more XXXX, X,XXX $X.XX all billion net than savings the half earnings XXXX, to miles poles XXXX to the guidance XX and our customers in in began utility long-term top income transition XXXX fuels We reliability. were $X.XX Indiana reform gas replaced other electric net invested enhance gas markets. which miles XX,XXX gas well was miles to $X by saving our $X.X the of share for our housing We with by free coal We including lower away successfully system corporate made plan from now beginning and resources cables in becoming underground an our year operating infrastructure to renewable pipelines, safety of tax driven a approximately versus added and Federal billion Tax business submission by regulated with pipe,

gas centers for capital opened training recovery infrastructure centers an and completing the Massachusetts rider responders. training base existing in the execution begin XXXX, gas through recovered on our allowing Pennsylvania, rate first in enhancing we continued in local rate filing capital modernization being operations Maryland to four a cost case not and and Virginia significant rate gas base case our team base approved in settlements employees Indiana. solid its A investments initiatives, expenditures tracker. announced state-of-the-art Virginia electric regulatory Ohio, in Indiana, new program Our in and was including and And case and for of

on As to initiatives see, investments and to taking prudent the come. you ensure NiSource can for sustainability execute business our and we're years continued steps XXXX, of to in planned

guidance we're we make expect in $X.X operating to per year, focus to non-GAAP to share our the $X.X and capital Turning $X.XX net to initiating $X.XX for XXXX, earnings investments. at billion

earnings expenses XXXX Greater growth the SMS costs impact the financing wide pension enterprise Our our which forecast, reflects guidance, restoration, accelerating increased earnings of short with long-term and of falls associated implementation Lawrence XXXX. near-term to X% related X% XXXX dividend forward, volatility year annually a expect From to we forecast. in late extension growth to by through prior two earnings and long-term market XXXX, our non-GAAP grow our the of

through We financial of all make to XXXX. We're $X annually billion investments to growth with will investment resilient our value and for customers investors. XXXX continue and from our programs to confident enhancements communities safety our infrastructure to expect stakeholders deliver billion long-term for $X.X capital

in performance Donald? more to our to like Donald over I'd discuss turn Now, will financial who call the detail.

Thanks Joe, everyone. good and morning,

expenses note GAAP about emergency system talking Lawrence with like results include I Before and incident. earnings, XXXX just non-GAAP to other the our associated our Greater our response, that restoration

current our now estimates is incident total our $X.X we expense results. than the are significantly estimates We provided greater estimate Lawrence higher quarter to with related approximately third the Additionally, total billion.

a in that $XXX to the are process us. provided incident to related early restoration the and system customers costs behind estimates compiled restoration bulk would the also in With of substantially the the service I known. impacted weeks were estimate before we all We million complexity costs prior to capital replacement distribution associated note $XXX in the fully restored communities. believe the restoration in we in-home after the was mid-December, of

submitting We recorded of which $XXX XXXX. We of insurance started recoveries a coverage expect during that substantial December collected and insurance these million claims property of already casualty have we have million of $XXX $X $XXX in portion million, million recover includes and insurance costs. will

estimates we as progress. insurance as of More plan two press our As forward, of are schedule moves our XX, details on quarterly available recovery well earnings provide on release. our to updates current process Slide

non-GAAP of $XXX of in Looking per with earnings supported infrastructure of XXXX. about constructive share results or million The financial $X.XX we per performance impact trackers. investments, to share $X.XX net and at on outcome our long-term delivered our or operating be our $XXX established the regulatory million driver compared X, infrastructure XXXX by biggest continues Slide about modernization

non-GAAP financial to now results segments. turn our for business Let's

about and more Operating Looking our compared earnings the segment primarily gas distribution XXXX. had revenue at than were in for about tax million about regulated operating driven year, XXXX operations $XX million outcomes. of by regulatory excluding Slide $XXX X, of impact a $XXX with reform million earnings

segment, on for operations $XXX about of electric operating earnings of Slide in XXXX. with million XXXX earnings $XXX covered compared operating X, about million reported Our

by more excluding However, revenue year tax million operating usage. O&M segment were ago, earnings impact $XX expenses industrial a by somewhat offset about than driven lower primarily of lower regulated the electric reform,

Now briefly and credit profile. Slide touch debt turning to our on X, like to I'd

long-term was debt. interest debt rate Our weighted billion, fourth the receivable under net on debt about average capacity was of the $X.X we XXst, XX level, securitizations. approximately and total average cash level of maturity and of The our approximately was liquidity of consisting December of debt quarter, billion $X years was about which end available X.X%. accounts long-term credit At as billion, our in weighted our facility $X available about maintained

of financing XXXX change three turn investments. note expected covers based cash I to Slide in current credits are grade we're proceeds timing Our can grade rating XXXX. current our and plan now maintaining and investment investment X, upon long-term insurance agencies our for all which the rating from financing to our rating. to growth our that would I'd major committed like of plan recoveries

million in equity incremental ATM to our Our long-term $XX other programs, market current plus annual program plan million and include purchase the $XXX debt. and to $XXX $XX million issuance the range or employee from from million continues stock equity of at to

the infrastructure balanced on $XXX As in strengthening you of equity event us to we ATM is debt XX% target program to financing through end for and for to profile approach to provide investments. up our to consistent The funds ATM Xst. This the metric financing program to with of with issue XX% metric know, our exceeded the XXXX. our the plan XXXX is in range Lawrence SEC Execution current November our filed note an our I we allows XXXX. expected million in XX% FFO debt would adjusting would from our have credit to enhance by that beyond. to Greater operations predictable

and Now, the a back to investment who discuss highlights. Joe infrastructure call I'll will few regulatory turn

Thank you, Donald.

is reform. credits The rates of upgrades settlement settlement, received In implement on related we reform the in the by regulatory December. base are to for Indiana, authorized expected three and turn expenses highlights new bill XXXX case. gas other XX. tax gas made capital to approval and and which and with our to gas Rates operations recovered settlement base in the billing adjusted approval new not Xst, of approved provides annual regulatory quarter benefits received rate $XX XXXX In supports modernization $XX Slide Ohio, annual cycle. took XXXX to distribution tracker. effect through will replacement and early rates effect rider federal with customers of and The the rates natural revenues us approved the some between we'll our In Now, deferred and reduced annually. The new our program million. benefits December rate second on system the our gas begin be continued by expenditure customers tax March that case capital of from steps distribution million IURC Pennsylvania, of XXXX we in rider, pipeline, fourth infrastructure let's increase under took of specific allows recovering investments our

million a covering on step Indiana, the the in of to technology in expected our capital pipeline effect benefits and request XXst, plan system expected investments Also program tax our we capital long-term fully measures the supports approval are by XXXX. continue other in between $XXX annual planned reliability. continued IURC million, new approval through compliance increase XXXX, approximately gas to increase $XXX The upgrades, October to consistent approximately Xst, of January system long-term settlement, regulatory with reflecting update in on with invested filed implemented rates We XXXX. to and of revenues following of first be tracker XXXX And are our execute December. federal which safety plan, received When latest modernization took December improvements investments and we IURC, on FIMSA with reform.

billing through in revenue in the We filed, in with our Maryland, is settlement expect the including The effect which million increase in effect in pipeline our rate second refund XXXX, remains Virginia $X approval order into the subject case. federal and current rate pending new of before Filed from and replacement took by expected case, our we of to XXXX. November. State increase received $X.X costs with the gas tracker infrastructure settlement to base an ongoing associated continued August the new February request regulatory Virginia, base cycle annual revenues investment is recover Commission. In seeks expected Corporation reform. pipelines revenues If rates to collected went of $XX.X and In revenues upgrades. $X.X The by in of our programs tax million, to approved supports safety changes incorporate including half is million infrastructure to request annual tracker. million, currently infrastructure rates

half We expect second in the XXXX. commission order of the

partnership technology. Plan, XXXX remaining of to for develop IURC October. generation submitted to XXXX. operation XX. replacement Now, as Roaming wind, Creek, be three be farms Slide IRP consistent nameplate The and and are coal in energy coal-fired filings filings let's with developers. late our five the next Integrated turn capacity and to by Bison to have point megawatts renewable we Jordan to is battery nearly toward Indiana the our resources, On calls storage and XXX retired February fully expected in projects, portfolio These totaling on defined retirement in are the IURC with capacity solar by Resource The electric Xst, made XX% years, generation of energy seeking all and Rosewater, being approval XXXX. still lower-cost such three operations wind options experienced capacity our the in renewable The in with

this a for announce later proposals to projects and renewable request We year. issue second expect additional

electric to and flexibility the available, supply to reliability, and maintaining technology while changes. most for diversity economical mix cleanest goal market Our transition is

Our IURC. in tariffs to flexibility XXXX approximately IURC electric the service to increase federal case before annual An of of as changes for is the If approved effective related the retirements remains base rate request coal-fired filed, early the $XX September by reform. the third is provide XXXX. for in also request to impact industrial anticipated reflects plants generation in It changes in seeks the of pending our as quarter million. Filed called IRP, October order schedules rates XXXX, in would with well tax revenues the depreciation customers.

combustion $XXX projects first of current XXXX, in this the meet quarter generating The in are of CCR capital standards. largest be in IURC, of include projects with coal December Our and to projects are costs. to progressing. XXXX. environmental facilities upgrades approved the authorizing approximately last settlement million recovery the associated Two these projects at These with the residuals are in service units service unit scheduled EPA

XXXX November modernization related to The our approximately to of reliability. in filed a transmission to reform. June approved made continue capital We our be in billion update request, $XX infrastructure incremental expected in from further XXXX. base customers execute on infrastructure designed electric distribution our covering to and to enhancements tax We approval request which regulatory electric received safety update systems latest included through electric federal of refund program includes and million system which a rate through in our represents $X.X investments approximately investments seven-year programs, XXXX to settlement improve tracker IURC made July XXXX. November We tracker January,

the remain the impacted you to steadfast questions, like I'd Before we about key your leave our with takeaways customers to and communities our to NiSource. Valley. turn some commitments Merrimack We in in

of reliability of systems for costs. dedicated next we the phase engaged a our gas our customers efforts We footprint. do seven-state complete extensive in restoration, serve. and We're resources safety for have the enhance entire communities complete we remains in that the have more foundation across the and all team we to our distribution a the restoration picture Safety and of place and to total

$X.XX earnings non-GAAP per make deliver capital share $X.XX operating in to of to XXXX. in $X.X $X.X to range expect billion in the and billion net to investments We

is plan and growth long-term intact Our resilient.

to remain investment ongoing net in and through Thank seven today, driven for our now grade our and While We're operating extension NiSource. of our take in business two-year you all of credit Muriel? a earnings we we dividend for X% per share to all XXXX, questions. annually forecast, X% investment our plan on near-term states. expect headwinds ratings. your long-term support and to by focused we XXXX both interest participating your executing face core from previous across to ready grow some We XXXX, maintain and expect

[Operator you Instructions]. Thank

from question comes Credit Michael Weinstein first Suisse. The with

is line Your now open.

question My do expenditures of with capital Slide additional billion. have spending showing the first just to out in you the $X billion $X.X has that number XXXX XXXX to XX to range

spending, spending the process? So out you for will the a that of capital as going think IRPs and that land are is result how where reflective to the turn

at is the capital around So projects the is plants if to two where XXXX growth the in up renewable it look invest in transmission from in electric go Part things. billion $X the when the and to really plants of we coal as we need those business online. to annually transition

is other I And our growth and Columbia of couple some we've management billing, a then part operating transmission systems, gas item Ohio of Gas systems systems. capacity infrastructure around we need some had to is and to our line we our modernize, asset management because that work there. investments our really plan years, Ohio, core increase to really increase IT around the so think or infrastructure on the large the lines it's customer in capacity over third

annual So drivers that growth time period. that's and over of big really the the three CapEx

would generation is renewables, timing. that we've are XXXX about tax is would you that after three our two type of that on that we're joint add our entered the and so solar NOL, come we in take is now would make investor. current in. I enjoy XXXX, credit an that in PPAs, investment equity our customers later investment expecting our though doing actual of third tax status have What allow And and advantage in what think equity of tax structures. those the venture from So a we benefits we're Because And executed of we then to wind us, would investments an guidance. our on agreements is the wind if into really NOLs, can't which the

to projects total investments So as more on get ultimate we'll provide guidance XXXX, in investments would for be able the signed we what be up the then.

the the to then X% maintain comment And levels just Maybe XXXX about both ATM? this and how in X% you will through you equity XXXX? programs? growth ATM affect might you expected after issuances, will land it internal equity. you where higher spending affect can to continue after how also range Can through the Can the fund

in annually, $XXX So through as plan. as the here the financing and those our you well assumptions all plan higher this around includes The million $XXX we've know million it program. $XXX CapEx to got million XXXX financing, ATM as program included

really And establish it us to you our of million think for afford a would so about needs another… million a $XXX if equity $XXX years that of year to couple

that growth be of the because that But to rate end would in might reasonable you how X% X%, the spending -- of higher conclude that, upper about rates? earnings the to is be it

early. get will is there think, within be the But current to it's annual are talked And about X% earnings able XXXX, XXXX. to I earnings We of so is being when range. we we potential off -- and that certainly the and guidance there. X% we've guide guidance, certainly too

think you earnings, drives infrastructure about programs. If what outcomes its and regulatory our

so I beyond guide can't And are. where we

people. and timing let just In other on making you And or strategic how what's on Massachusetts, rate to last considerations at any question a new case one decision other file think go a there, being to the at board? you're you when time this considered I'll the

developed be in Valley. ensure after Our ultimate full restoration for recovery Merrimack we and plan will regulatory CMA

in is activity related resolve the expect we important to contemplate claims hear possibly later CMA. to work even And restoration before activity interplay that be this important in resolution note on it regulatory next between year. to year, I'd our more that and to fully going So is the of to

Dumoulin-Smith Bank Our of Julien with question from next America. comes

now is line open. Your

a here Analyst question. I of Ritchie hosting just sometime question, Day This housekeeping be going you a to for quick is are the more had still But year? actually Julien. this

mid-year likely that for look Analyst not update this we that to an year. the our work XXXX Day way to and We'll the going talked later previously on had through do activities, about. We're

provide that And reasons guidance here wanted on term to this we that was call. one longer of the

next question KeyBanc. Paul Ridzon Our comes from with

Your line now is open.

I know this that you do guys pretty prior before some seem always conservative, of a to Is could trajectory things and below caused tend trajectory there temporary. chance you the that are dip like your to EPS get March? back-up

You're X% not of claims, through and year. is to we're the temporary into projections working right play it might of in related how X% talked that off in financing initiatives our try lot today We'll investments of that to nature, get the XXXX about we've that what some to longer-range to of a stick guidance here safety the this out.

Our Michael next question Sachs. comes Lapides from Goldman with

is open. line Your now

things. sure make or for understand to a want in I few questions two Insoo here. One I Subbing

you're piggy net First of income referring EPS mentioned growth data. growth tacky, difference is Historically, and share little there or you a to all, would say you per earnings you always between I X% but X% growth to in rate. rate. the maybe share assume rate? this when and a growth earnings as the EPS to that use earnings per be going rate Or the growth

growth dividends that. X% to Thank you That for and rate. and X% EPS is it's dividends, clarifying earnings so

just Greater to related Lawrence. The is other thing curious

of billion make-up costs. Third-party of $X.X claims or the so percentage obviously the largest

they I you about extended when you about that thinking that? file is claims. have will guys Can greater you when you that therefore, certainty us are a customers certainty claim they of before level? and an when correctly, how and and to remember hit have have what timeline time timeline Just remind total will period of If will have the around deadline

what a of of is don’t have restored certainly years, customers to So claims from nearly service. all the know period customer exactly and our I file have We've event. gas to their time have couple

We've need this that would winter that period, in and streets to some come There the bulk our do we are around summer. replace back to us. appliances appliances got the some time replace only summer restoration of behind the winter in and some promise the expenses is fix once customers' of also and So we fall end appliances the those them we savings. and

So our expenses. billion what's of it is left, total as $X.X I really a much look at expected smaller part in

think one filed changes point expense don’t by that here been $X what's over lot already billion number a to relative Meaning customers? you

I don’t No, that number expect significantly. to change

just those then that have our Page versus down item, out outlined in last actually And on might payments the you senses cash you all much future you make of those of cash how paid XX, road?

already. paid we've So $X out out to been that billion close have it. are of we expenses say probably most of paid I to XX% want -- the

that and XX% So XX, outlined August $X.X since the September billion, event? $X.X billion Page on you've paid our of that number

That's correct.

Partners. comes from Shahriar from Pourreza Guggenheim question next Our

now is open. line Your

-- needs million have on The are and can in $XXX you look your growth so amounts and you insurance, Michael's question that addification. plan, recover equity under how versus you at incremental insurance, $XXX property. need potential around that's what that impacts guys policies on for just Just liability to guys if you assuming and your

X.X, the roughly to property those at expenses insurance. part total not be of Your applicable may expenses

there is under make So can there potential little could the from And you arguments access recover a companies versus then that you guys insurance have defense a the that a bit standpoint. are to. what

your rate. you be What pushes I are few as about then recoveries takes thinking able and are recovered? far not guess see growth you recover? what you are as any a around and under And are to incremental So embedding if guys as equity the that amounts

can with one And as in through our one it. and each you to property. and insurance million tower and expect, them the conversations a $XXX upon to be submit got that's based the We've working million So providers provider process. insurance claims, our through work in to lengthy providers, of we've substantiate we're $XXX insurance got of and a going

So through point what exact process. given it’s estimate at that will we to of for me hard recover this

they were And right outside September to actually the process. to we information make have hire really expedite who help sure However, claims. an this format on-site right the in in did in early firm we specializes

So embedded of that which we the But are to impact our in recovery and that average target is from expectations or when of The standpoint to need equity on caveat proceeds as equity year. of insurance equity financing timing I includes $XXX the the a we think metrics. about only that what's the our ratings plan, million $XXX timing is our of that ensure a expectations million to our $XXX financing $XXX that's million target to could part of needs. hit for million

the under least then XXXX, deals? to you don't at see have scenario block any to issue need any through And

No, no at block deals all. is there plan

Our next from Greg Evercore question Gordon ISI. comes from

now line Your is open.

you across here and repeat you you're out updated can clearly Great the -- that laid very also entire said commented the are you're estimated you've Lawrence, but the system what related costs costs operating you -- XX on are estimates So make for doing reliably. what sure safely on what Page directly gas to

well are you across cost across increases operating incremental through the go just again please? increases those Can the system were as costs capital there costs as So system. what

the outside to effort safety brought have not from guidance, Over incremental a incident correct, accelerated our costs financing an started. accelerate implementation, that the ago, that’s in spending the experts. we but do In Greater flows XXXX systems substantially, year related Lawrence reflect Yes, the to only have Greg. we that's management that cash

flat inside few as won't do costs accelerate cents those guidance have And long-term, but for it if to that. a will do initiatives. at the to look related O&M level, you O&M likely really stick related the segment one-time So expect the below as that you But segment We in the on acceleration. XXXX the the an impact across board. incremental the see to to relates they safety some before, gas noted you that’s see startup we've

we as Of electric to O&M profile at related IT Donald spending as plan our and course, And years is corporate, And incremental here repositioning, some platforms. consolidate the the that to change will of those in so business modernization well. continue out that of for opportunities systems look to mentioned then well.

but XXXX. that one all that's the different in biggest of So inside number moving pieces

in So lower because really pension of around it's the XXXX. returns being expense higher

a So little or I'm -- O&M confused. is isn’t

thing the a short-run mean it's up flat, O&M to you absolutely that run told new guidance is long in in up reliability run. I be that that. be. to are the get for that flat? there's appropriate think needed is do in to you higher but means which need you the you the sure few your it's And that because to me pennies that, things you where would obviously But not more in just flat and the do spending to if make short so O&M moving right safety around O&M Or on

were expecting across flat We our and O&M planning guiding horizons.

business lower and is our so on making of that have side. offset corporate electric will we're investments the that some the some gas offsets And there within O&M will

where 'XX guidance is So I of flat basically know and guidance that year-ago. the were And off X% that's range. you've was growth X% of 'XX gives then. giving But dividend, 'XX X% us the that based to with earnings guidance you growth guidance a rate earnings the off 'XX guidance a for and on

is growth lost I'm and Lawrence what depressing earnings So the it of telling a we Unless relates year Greater asking that temporary. impact why this 'XX is the as are you're to us of this things basically the event.

latter? be it So it just performer want is to the is clear or

said incurring earnings going flow as And into new going costs SMS, that to XXXX. that and costs ability business will the forward. business receivable is are in are some $X.XX Joe of on guidance to in and extent are the and around the The reliability process financing. are of growth, off X%, $X.XX. gas gas insurance XXXX, our we'll impacting There similarly recovery XXXX to and X% safety So forward costs in those the safety investments be we XXXX

And long-term hopefully back annual clear up. have so we we lost are X% and I making, get but because investments year, to agree growth. to the costs incremental helped X% that we that of it the we our

Page The front. some that or have And costs. financing there it reflects for convertible because equity, also question relates guidance these to TBD preferred estimates X, debt subordinated updated last on on as just you

Is flow of summarize preferred common plan, your appreciate cash incremental as subordinated So the fairway or work a said But asked the claims. debt that is convertible needs plan, that. the these insurance based be on not Shahriar some you payments equity which sized and absolutely and you will equity, of through and that it? to in is you recovery the in I about

yes, So certainly the equity preferred we'll debt. continue use of to evaluate or junior subordinated

plan? include We our plan our that and capital convertibles are we at not in have or something done past not financing currently the in to that's looking

non-convertible. guys, slide, great a Thank the misread you morning. this I I apologize. have is

Charles question Next Fishman from Morningstar. comes Instructions] with [Operator

line now Your is open.

or in to fourth adjusted I contributions. I ask for question special insurance, then just had not sales the that reconciliation fourth that non-billed $XX.X could to And that's Greater your that In expenses that any quarter expenses by due the that. be income like million Greater that the considered $X.X for a the is charitable Lawrence like If in And assume special incident. related business XXXX customers. incident? Lawrence you anything are covered like it's quarter, Looks to the GAAP. to going operating of interruption, or Will continue related million to incident on

with to let's and anything investments now. contributions. that evaluate significantly communities continue We discuss We'll make So, we have right breakout. to terrible planned our don't the charitable in

that so in progress as will And efforts continue Merrimack our the we with Valley.

around Your was on insurance -- business insurance. other interruption question

is charging event. So customers no no, weren't for loss there that revenues insurance during business for the the interruption we

numbers a numbers likely the continue, lower? be the and are they'll we those if even saw peek fourth head in quarter to So

expect going wouldn’t that forward. see to we No,

getting those or And second words then I'm Ohio assuming of you're those question, XX, looking legislation. the the Slide the another In upward. moved bars bars other I'm impact Is correct? segments faster in capital that's that at expenditures recovery.

about range a months. that The is Yes, there. the and XX case higher we recovered were bit always to rate within in in that being includes little a going so XX% XX% XX% XX% investments the through the one Merrimack Valley chart XXXX

and program. the CEP is Ohio by we're around helped XX% in that back Going that forward range

Well, in XXXX Ohio months, on Slide your XX%. about XX, driven you're to now correct? be about XX% of your used investment That's three is by long-term collected within

that, really Not growth. it's

you about bar that growth. is If think customer green

efforts do investments us and growth those X% annual our see to overtime net seeing we progress so net grow that customer to on our get customer And to growth. continue

shifting investment, more the CapEx of what it's So the is?

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further now to any would And I'm Hamrock, back questions remarks. like turn to not this the time. CEO Joe at call over showing I for further any

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