NiSource (NI) 31 Jul 192019 Q2 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Q2 2019 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] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Mr. of and President Vice Hulen, Investor Treasurer. Relations Randy Mr. you may begin. Hulen,

Welcome and NiSource good Josh, to morning, call. Thanks, investor everyone. the XXXX second quarter

Donald XXXX to operations, financing review are Executive financial on performance The today our Hamrock, second NiSource's as of Brown, quarter plans. provide the and update of purpose is me and Officer. well Chief growth presentation Joining this drivers for Financial as Joe Officer; Chief an

for call Following are today's our Slides remarks, your prepared call the on to open nisource.com. available questions. we'll

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

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

information and For at slides a please supplemental the on measure including available full refer nisource.com. to financial these and comparable reconciliation our schedules of GAAP segment measures, additional information, additional most directly the

to I'd that the of all call to way, With the turn over out Joe. like

you Randy. Thanks, for and morning, Good everyone, thank us. joining

teams Indiana across safety across generation the and electric These NiSource priorities programs, our distribution execute our in include in investors Valley. modernization to continued all gas restoration priorities Our enhancements stakeholders. our completing the utility system, in business, critical strategy for on quarter second Merrimack and driving results our long-term the our infrastructure

on half that of these the in made confident through our XXXX, deliver commitments remain we for we've first the year. we’ll progress the With area

$X.XX earnings per Slide expectations key deliver early in $X.XX net earnings the with which share XXXX, line operating for our of X, quarter operating per $X.XX and delivered We accomplishments XXXX. guidance Let's to to positioning range and through non-GAAP versus share in within our net to $X.XX turn third quarter. second summarizes us

in to XXXX, year. confident of X% to We XXXX complete investments X% of and billion XXXX. share billion from to and the through our XXXX expect in per with capital $X.X from forecast remain expect XXXX consistent in earnings investments to to our of dividend long-term annual growth through $X.X forecast capital non-GAAP our billion for $X.X make $X billion annually We

Gas our seven-state safety footprint, accelerated advancing system System Management SMS. are across a of implementation or including enhancements Safety

and continual approach developed Institute. pipeline SMS safety, managing is American emphasizing the framework to the by Our aligned assessment operators operational a is improvement, for and and with comprehensive Petroleum risks SMS identifying proactively. potential mitigating

implementation. of each SMS As of have enhancing expertise our work, companies. the to We've our independent processes additional Board, entity at risk introduced overseeing part been added management safety Review operating our our Quality SMS

Materials Administration Cynthia the chaired Quarterman, Transportation former board LaHood, and Pipeline spanning administrator Hazardous industries. energy, Secretary, backgrounds our joined of former by QRB The Safety includes in June. the with diverse nuclear six-member experts and aviation, Ray now

team in practices. safety Directors appointed the continuously Deborah former safety focus the we Having experts National June. addition, Safety Board on on Transportation Board improving widely of great In NiSource is value was Hersman, of our these chair of to as our respected

devices including of these on also all XXX across automatic are progress These over making devices to immediately They shutdown than when too designed Teams more footprint, Virginia. gas protection, low, operating like priority. so the high installing they have circuit of they in that are significant necessary a breakers. the cause. sense top regardless work We pressurization low-pressure work on shut-off installed system, our too is This operate pressure remains or devices that systems. our

new expected base rate and rate in continue Our approval our with of is the our base of in settlement base In week the case Virginia case the initiatives regulatory case rate in a on electric to Maryland. last continues gas August team hearing until and to Indiana, execute began filing X.

addresses plants. requirement, revenue to depreciation of tax related and We stack schedules filed federal a April retirement key settlement partial the with early reform holders our our in which coal

We in approved the Also Purchase wind the in two expect an in Agreements order Commission Indiana Regulatory project last fourth applications. Utility Indiana, our month quarter. Power of

the and customer on focused remained We Valley. the Merrimack restoration support in

the furnaces nearly We we to event, and customers, XXX boilers whose complete the equipment weeks are replacing repaired September by or for XXX% expect approximately be following done in September were XX. heating XXXX

pay municipal municipalities to to agreement May, In municipal an in restoration, impacted action all $XX major With announced civil to cover we resolve claims road the lawsuits three to Monday, against the event. Greater resulting which we class four is to as all including we've from other principle in and subject with company. approval, reached claims. which property we agreement, that reached settle now court Lawrence agreed on million And settlement a repair resolved the

on will like reflect add that always I'd Does communities. customers everyone had event be that and these this in on we impact the of our this? mindful has to tragic

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

Thanks Joe, everyone. and good morning,

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

incident address the turning segment Lawrence like expenses. our business Before to I'd financial results, to Greater

is Our expenses detailed for other in described total the second quarter. to and which as settlement due action our on the higher class XX-Q somewhat is Slide XX, estimates

civil claims to restoration the we related estimate. future the significant with adjustments now event near four any forward major and expect don't Going resolved the completely, work to

a a substantial and cash $XXX penalties. the incident recover may million to portion for in coverage incur insurance Also any of Lawrence the at we as place through fines $XXX we our and time the estimate this excludes stated, million previously Greater event. of property insurance reminder, of As expect of potential we've amounts costs and

casualty in collected and XXXX insurance of million claims June recorded million have through December, and submitting $XXX $XXX started We to-date. in have cast XX recoveries

filed We claim have recovery have with begun. and and around property our claim discussions insurer our this also

we process plan continue recovery our moves quarterly insurance As provide to forward, to updates on progress.

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

Gas had program for primarily was The Our rate of earnings $XX base XXXX. by for about million about driven Distribution new in $XX quarter rates compared Operations increase infrastructure execution. same segment with period operating replacement the the from and cases million

with of about operating comparable $XX earnings in $XX about reported infrastructure driven segment of quarter for XXXX. execution. the million by million Operations Electric program Our earnings compared increase period replacement was for The the operating primarily

is Gas essentially compared Looking O&M higher at baseline. in segment. to than are non-tracked expenses consolidate spending But XXXX our due to XXXX related flat slightly our O&M our increased year-to-date safety

a the Looking implementing our safety benefit believe in related expenses we communities enhancements programs forward, to are the slight expect across customers prudent We Company. we enhancement increase of served. and we're the safety

and $XX reaffirming results of coupled forecast. with our as growth XXXX solid on the guidance in earnings of $XX our to operating financial non-GAAP first a through net share our Our execution confidence earnings dividend well as per long-term half strengthens front our the year both regulatory the

expect current to maintain our also financing plan. We

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

about The was of Our $X.X billion total debt the as June debt. long-term long-term $X.X weighted-average of our XX maturity was – XX debt was approximately about years billion interest rate weighted-average approximately was in level on X.X%.

accounts billion, about consisting $X securitizations. we receivable of first maintain liquidity At net of credit quarter, the available and of available the a and end our capacity under facility cash

Our credit all three major grade ratings investment we're grade, current maintaining rating agencies and to are our committed ratings. from investment

for long-term our which growth investments. to Slide I'd plan to now our financing like turn X, covers

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

Our by investments. financing funds strengthening to of predictable financing to infrastructure over to provide In metric the range operations our expected XX% enhance our is long-term. approach from our XX% to for balanced, with ATM to is profile credit the execution consistent our plan debt our

for Before in XXXX recent to earnings infrastructure guidance to plan provide non-GAAP on note our few we that I to Joe I our practice highlights, years. and investment regulatory capital turn the with wanted and call a investment consistent third back Joe? call, quarter

you, Donald. Thank

regulatory Now approval the on specific in quarter base Gas let's received some of third and In rate highlights turn to for second early the June our of in from we case. Virginia, X. our agreement settlement Slide quarter XXXX Operations

went rates settlement our effect currently ongoing impacts annual The programs, million including infrastructure federal $X.X revenues of by million, revenues $X.X the reform increases through addresses July in collected tax Final supports tracker. investment approved in approved and XXXX. infrastructure into

the and adoption request support filed rate pipeline pipelines request increase with we annual million expected January base a the continued order to Maryland, Maryland Commission Public case In in May the by approved end including rates aging replacement revenue. Service If of $X.X infrastructure in as in current of upgrades. XXXX, by filed, safety XXXX. million, of is revenues would effect $X.X approximately A commission tracker with of

begin first PUCO to through of recovered Expenditure rates expected Commission. investments us our Utilities which recover annual expenses was related $XXX August recovery capital capital CEP in application our remains infrastructure approved allows in The with XXXX million by modernization Program deferred in pending tracker. in invested adjustment approximately PUCO not September XXXX, to Capital our the for XXXX. XXXX. Public before application seeks In first the that Ohio, in The order is rider, A are to rider and affected

April November update modernization incremental $XX.X filed In XXXX. between and our gas we expected Indiana, in fourth the XXXX million long-term XXXX. and July infrastructure made An Commission in quarter is order investments request capital Indiana covering in our with effective rates latest June Regulatory XXXX of program, Utility tracker

the be covering our million of remains PHMSA expected before IURC. invested XXXX, XXXX Indiana, in between Also and capital pending compliance to approximately plan, $XXX

We expect the XXXX. an order half in of second

let's of announced projects; the IURC, ownership the Agreement that applications Power and in we for of the before third X. the application with on quarter agreement Bison third to our approved order venture for remains IURC Jordan XXXX. and joint Creek Rosewater pending February. wind Operations the in for Slide two expected Now Roaming project turn June, In the an Purchase Electric three The

of Creek are Jordan in capacity with calls be The and in megawatts. consistent by Roaming Bison generation by be XXX the XX% Rosewater three wind project totaling generation retired nameplate to of and years, and XXXX. Resource XXXX. The operation have the remaining expected late coal-fired by retirement five are coal which XXXX, projects filings for all to Integrated XXXX nearly Plan, our next

fourth for the to of expect XXXX. Proposals We quarter issue second in a Request

for technology transition mix Our market hearing available supply IURC. remains cleanest maintaining base to electric case, diversity changes. is flexibility The electric and our economical, in goal rate the to the and underway while before reliability, is which pending most

April, partial retirements for X.X%. resource we XXXX on call, our plans to in filed, revenue reform we tax for As the neutral mentioned return federal If as settlement filed integrated which requirement, partial the addresses settlement and in first the and allows early depreciation quarter generation approved is schedules on related of our plan. coal-fired of called agreement earnings equity

that is design, the add settlement The and quarter addressing would industrial a the new anticipated rate is service hearing to with implementing related May, of issues fourth Group, XXXX. I resolves IURC Industrial allocation structure reached in which in for order a cost many and we customers.

our modernization electric to program, We improve designed transmission on system which and electric and includes distribution reliability. continue to infrastructure safety enhancements execute further system seven-year to our

request program IURC IURC $XX the June, approved approximately June million electric billion $X.X made through XXXX. an November covering approved capital made or to investments represents infrastructure XXXX. through The investments latest TDSIC be update of tracker In from XXXX approximately incremental expected

quarter, couple key Before of revisiting updates. for our share takeaways I'll the quick a

our on of companies. customers NIPSCO nationally focused satisfaction Residential Our the off. the J.D. Customer Satisfaction team progress Power among is SMS the mentioned Gas are delivering for performance in is Indiana on our paying was is I strong we our evidence accelerated the improved latest brands had we that one implementation. This named subsidiary Natural making Survey highest earlier and energy most

We a were the Board Gas pleased in Management Association modeled to Safety after May American adopted that framework. recommend System see member API companies all Pipeline the AGA

we does core SMS and utilities our above and go As AGA what industry communities our the serve. at adopting to is protect employees, beyond way and another safety noted, gas is the customers, of

As of I'll Q&A we a key takeaways. portion share the turn few to call, the

teams Our across well executing our priorities are the on critical business.

our $X.XX As we're XXXX result, share of in a financing earnings $X.XX operating and a per range confident our plan. guidance to non-GAAP reaffirming a net

Our long-term investment driven resilient. and is intact growth plan

expect to to through our dividend our operating credit XXXX, X% to per ratings. X% investment from We net and maintain grade share and by expect we continue grow annually both XXXX earnings to current

all our commitment that advancing with with do Safety communities remains our we're strong our Board. for that and Quality independent the implementation for state we footprints by SMS serve oversight seven accelerated the foundation customers we across and Review our

generation nearly electric in electric with advancing cases. complete rate addressing Valley largest is hearing approved making our place the settlements project base key restoration Our strategy in and with wind settlements reached heating with progressing our and our the issues substantial progress in PPA's system replacements, Merrimack cases underway. We're and civil

the and tragic by our to the all We this Again, ongoing dedicated restoration. the businesses to of impacted event finishing of this of event. that reinforces mindful I'll and note remain commitment we're residents impact

for your ready your We're and take questions. interest all Josh? participating for ongoing support of and to NiSource. in you Thank today now

Our from Instructions] Bank of comes question first Dumoulin-Smith with Julien [Operator America.

proceed your question. You may with

Hey, good morning.

Julien. morning, Good

morning. Good

Hey, pleasure.

So items. a couple quick

First, How know housekeeping. a here. you going that bit about there's thinking Massachusetts? forward lot little to avenues with maybe a I respect are more here strategic

couple all, comment got if be And I've a at curious. others. I’d of Just can you then

speculation. of a Julien. or M&A on We matter comment not was policy. do Thanks It rumors

service our that there. continue. focus safe morning, and in on entire Our in service XXX,XXX our to high-quality of over the and remains level is natural talked this And Valley reliable rebuilding those about footprint. Merrimack and customers seven across state Massachusetts we've here on that and restoration our delivering efforts the And continuing focus gas

of perhaps suppose, of the moving that legislature, bit evaluate you are well. balance in of the saw you you as decarbonization of do respect How pursuit we to comment you to follow there And got substantive some then little with you process? resources through front just how an et on coming pressures how think relative think in I'm at RFP think when we've Can talking to maybe some the sort Excellent. I a of about about? that spring a the cetera, this about talk matters you more curious Indiana, challenges or especially about an about up? both of RFP trajectory you a those, your Indiana, economic

setting there, in continued discourse transition mean there's our in I policy a a we'd with generation, the obviously up to bit to and electric Yes. and going the especially be portfolio, expect the agenda of of tail just the but see in taskforce on not around state the region.

states that's As the high many profile a we all pretty know, discussion in the Midwest. across of

front in So we're center and that.

neutralizes think the issue more transparent being RFPs step taken that objective it I we've way. of along very that is the the to that approach every thing and that makes kind or at

economics So and that are. everyone what's see market in can straightforward alternatives the the what and available the

fall. use RFPs And another this that as of we'll we noted, to continue approach round with

don't in know the next And with So that can and that market by we'll discussion what continue we round. informed policy. we'll data be that objective see

we well through mind this. continue keep we'll as open So step as an to

item Excellent. a get here. I approach what more Quick with and gas, on to think XQ assessments, little more heard – both with bit playout risk to materially respect when last cost housekeeping to is this respect CapEx? With on CapEx, a detailed or we'll update new respect that I

O&M standpoint earning a be as on we'll standpoint. an well perspectives a expect provide standpoint. have planning both our from at to as may capital as that And point, how portfolio We're capital well and provide both standpoint SMS shaped an to some guidance Absolutely. as from able

on? or is And would inclusive be expectations of later that the RFP

the later XXXX. expectations RFP Yes. in on will I say be would

time. you, Thank great. appreciate the guys. Okay, Really

Julien. you, Thank

next from our Thank Suisse. comes Michael of And Credit Weinstein you. question

with may question. your You proceed

Hi, guys.

Michael. Good morning,

proposed IRP of mitigates On going the needs future I at think on you the forward? you and regulated of being tax NIPSCO, to equity, RFPs talked needs and financing and to regulators just And terms use whether that I projects. and before about want comment for in the have give that equity to possibly

So conversations in regulators our Indiana. have started the we with

the its that across Indiana It's news We is venture to one new project. have and the country. project joint a

type around that an are of of to terms in think expect order and the In that third that venture joint get a business, we on quarter investment. progressing regulated we in structure

we at projects. future of most years, certainly years, front. end period, for XX having these up are From look take on standpoint, the is most investor in would ownership, of an the a There financing upfront. opportunity that structure it to How some those up backend, we is to equity ownership transactions though investment the five of looking that

of put it's that full say the would project. to I'd investment we in bulk have some want period utility. for we the where point, at amount the have a wouldn't within investment the But to So short-term of

makes That Right. sense.

that With the the in the investor the of of theory cost purchasing reduces so that risk tax credits, the would project?

And That is customers. our to yep. provide correct, the savings tax

Right, you your and Correct. supposed NTSB terms investigation, then that and come have in any might on to indication on are it about expectations say? it's what when of what do out timing the

Yes.

specific a that the incident incident the can incidents within how to As can't year that they their in future. and and work and led expected with aligned one, everything those prevent mode their discourse. NTSB we so that. day understand you objective to of have that to details or any don't and we working the been we might very to but again that on literally in a We've said working them speak report, with They Michael, the remain from for imagine, have of process closely have

– expected? you having How cost, insurance you result has in faster exactly as drag a while on recovery? await is and of little that a coming that the guess expected on recoveries, And of the as finance the affecting Gotcha. I to earnings on pace than recovery

progressed progress in cash and working constructively and of you insurance going $XXX very the with well, receivable insurance so holders our policy both we see done. The has Yes. $XXX are brought it's of we've as million really us

very to I job the of good process. of information providing think them support claims a lot a

that and I debt financing really helped that the think the along from financing has obviously has this year. here so needs a process short-term And reduce and us move standpoint helped

and go that the with Having still that we to through have the of portion to $XXX help the expect between the more be to here we do next of this and – end million expect continue quarter So get get than substantial a year the year. that do million this to we said $XXX the finance we'll in coming market – proceeds of half those year, more company in long-term. third to

out the working give that in third plan, in details a So on that yet, won't long-term expect it but financing we'll we be any so for quarter.

Thank you. Gotcha. Okay.

Michael. Thanks,

Thank you. Turnure question Morgan. our from with next comes And Christopher J.P.

proceed may question. You your with

the Thank fit go little structure? you. did maybe back bit kind time capital last Don, into the there you overall and that could experience time in remind subordinated you and of note and the a your a us of cost junior how just and

thanks. Yes,

issuances last a So issuances X.XX%, $XXX and then $XXX million a June we've year at equity done preferred did million of through two XXXX both December X.X%. issuance

rating So preferred equity that that structures XX% we're with credit the us about allowed to at agencies. have equity like looking structure

got also us that So that. to structure we do in that We've place in allows five that note years. call like a

look gives forward. And we so some as there us flexibility it

of and forward. hybrids at of are to items looking seen industry take that prefer advantage one particular. We've potentially in we that's in others So going the the

to clear – like us. And viable seems lot look so says for more think as become a looks opportunity a investors well pricing understanding like it continue I from as the in the

Okay.

with debt of like of investors convertible preferred kind types last non-convertible kind of those happy issuances? receiving within realm It and are or experience So and subordinated kind the types of of you're well year of the equity. sounds of debt different

balance we give needs forward we're get Yes, understand hit for to well investor please look And we questions as cash and targets. call. ensuring flow as our absolutely. I'd them what our say and if of we continue support trying do we that's a as credit to it,

so In the of no other to all of cetera. words, and reiterated. confirm, I Okay. the ATM, elements and script guess, based slide though the your far pieces changed XXXX to part I wanted the like that funding et this of Even today internal progress your just kind given message have on of that are that on insurance? XXXX TBD debt, the programs, the needs in And

That's correct. That's correct.

to then within Okay. all in is X% kind XXXX is, progress, target growth or my of as range? the base waiver kind there question the on at around the other just reason of that X% waiver range And to any given of EPS your

as for And guidance I to said, we call. XXXX and third No. on our give plan beyond quarter

Don. Thanks great. Okay,

from And Steve our Fleishman Research. with you. next Wolfe Thank comes question

question. may with proceed your You

Hey, Yes. good mornings.

So the ATM money if I'm talked question. needed how we you've just XXXX, whether XXXX you the the coming wondering of are feeling little a a maybe about to potentially insurance equity In versus now the bit need brief in not? good, past or about with but you to pretty do that shifting in

Thanks Steve.

were It is it's something that we've And it's I we're still so progress a less been be to looking that we a a at. basis said, year. think early still do But from XXXX, would you $XXX likely commit think positive. forward that, has million pull to this I made little it's but but forward, for us that certainly think it would year. pull it's for $XXX the an insurance if average to early, as I we million on

want place kind your you'll QX I to X% rate just is, call, of guidance And X% on check to the is just in already thing for next Okay. XXXX I one then several just give the years. guess know growth but

rough growth the we unless that just So rate? dramatic something generally assume changes, should is

our Yes, that correct. That's guidance. is

you. Thank Okay.

Thank you.

Have day. Steve. good you, a Thank

our question Kim with from And you. comes Insoo Sachs. Goldman next Thank

with proceed may You your question.

Thank you.

incremental opportunities beyond just in or base TDSIC be know that the plan? the mechanism, Is given potentially giving it nature your legislation incremental on quarter in CapEx how any investment the more Indiana, update earnings, in HBXXXX you I is third question First exists do there? bulkier guidance on passed spring the much see you'd was but this

Yes. Insoo, question. thanks. Insightful

we'll on QX, As we you we level that already it, XXXX in whether unclear. at noted time point of of specificity answered and that sort guide remains have

noted, you a related is mechanism TDSIC As that mechanism.

And those that. would we a maybe moment about more talk TDSIC file be next bit we capital still little that likely than We're working so through which later when that would plans the the filing, planning.

that through of our cycle. enhanced investments do there we through grid All said, this modernization some go and opportunity technology are that see planning an as key investments we teams for working

then just portfolio more more And industry, Understood. broadly, to of the electric? opportunities or in your when to it's you gas utilities look overall overall is at organically your preference growth inorganic? exposed term and longer remain Whether versus

just regulatory evaluate and our But such the as we'd to We our we're mix cycle mix. potential companies that's what individual look we the our what mix, position like We and to the investment not of like and performance like and in. that drives the guides but always decisions like.

you Great. much. very Thank

you. Thank

from Partners. comes with question Pourreza Guggenheim next our And Shahriar you. Thank

question. your with proceed may You

Hey. Good morning, guys.

Shahriar. morning, Good

we Sorry, specifically in quarter. out profile minutes sort you a I O&M of result the of into of envision SMS of hopped into you any as the Don, the O&M changing as kind couple specifics, program a called update going third the as Without of growth head do result late. potential programs?

management team but we've provide I’ll looking at more much this any early way have too to specific off XX how answer And and operations. risk think a lot assets SMS or got and we're programs. our year. the there our So enhance our in XX perspective, a certainly accelerated We've looking our I kicked procedures at it's different about it, streams way is can learning work we – a

early across delivered enhanced have are our come we implement and And say the as that Gas changes be but our so O&M that Operations expect changes whether states. continue certainly profile, I in across will some overall program Too SMS seven our seven investment to we and states. through through will to there some

costs to thinking And Okay. things, can't That's appreciate sort in but coming Can capital. strategic Maryland I in of what Joe, light the that around any how around rate helpful. expenditures remind you're of Massachusetts? – you Massachusetts kind you case just come obviously us about and

that plans communities restoration. Shahriar. remained remained talked focused to company early case focused generally more move strategy a for the to the forward and It's about We've We've little Yes. a We've in move rate set on the year, forward. up the throughout on or to positioning Massachusetts. the regulatory

relates capital And in the Valley. related any in the investments to to regulatory strategy the property particular potential insurance Merrimack claim

that So or need number before regulatory and about about to talk set sooner Of that next continue strategies. up a said say we're steps late year that of wouldn't than to would before there's talk in a that before expect to position this specific to any be to we able that would strategy. early year we're

you, was That thanks. it, Got guys. it. Thank

you. Thank

from Greg Thank And next with question you. Evercore. comes Gordon our

may question. You proceed your with

just one thing. Hey, good to not morning, guys. answered, but A lot of my – if all my were questions clarify,

have good. recoveries insurance been Your pretty

a slide of already million that million of a the door. in significant portion you've the that on $XXX of You gotten casualty $XXX show

That's correct.

recover needs against are Are insurance portion property going the you you're think ultimately assuming billion your of thinking you about incurred to and sizing currently against that recoveries? be to we the your assumed insurance? costs total Are casualty that financing you $X.X Lawrence for property the that full about Greater the in light event today? some adjustment risk of assuming when you've Or able

Yes.

$XXX $XXX we've a casualty So the receivable. booked insurance million, about noted, on and as you million that the

of remaining and certainly We all not that, million. well $XXX are portion our insurance substantial getting into confident conversations with very if so that in of that providers, process

just weeks we few insurance claim, a back. property The filed

early of talk in it's process So about to amount recovery very recovery, recovery. the and of timing

that Valley that Merrimack to having review the the claim that claim. damaged subject just It of for that opportunity information And more we're the an so investigation is and to incident, now looking have NTSB that that's provider right also part now. provider to the insurance are our assets is they about our working in note were through

we'll timing – the process with overall going to notes insurance. I that And wise, updates a But slower. through work So including progress, on earlier, them. this one is continue as quarterly got insurance going our to provide be said, we've property to through was always little my

a swing preferred presume about debt. as up this the mean you've estimated that which of because create financings that variable incremental financing think that long-term or on would equity – I very at caught million clear fair theoretically the in the be or and could debt independent portion I Okay, the needs, to update your with billion billion that's $X.XX factor, subordinated us which non-convertible on point. is current of the gave I costs Is been also $X.XX unfair? $XXX

Absolutely figures that also overall plan operating needs, just plan. But into timing the financing our our and amount property Yes. looking and capital both the claim. our at long-term insurance of

And what how the will things But are now that are shaping process to understand and we're XXXX for the property impact and and so insurance right different that levers into figures in beyond. that's up financing really obviously.

assumptions recoveries confident the that adjustment Okay. insurance. growth still reason flex recoveries the remaining the insurance, in to comfortable you for why X% you're risk That you're different X% reasonable you on for it's still growth a feel on inside like fair But when based earnings on aspiration rate.

Yes. Absolutely.

you. Thank Okay.

you. Thank

question [Operator with Instructions] you. Charles next Morningstar. comes Our Fishman from Thank

question. your with proceed may You

replace ago of X,XXX and kicked to me, the any retiring, got megawatts plants are capacity. morning. wrong, not little couple numbers blame around Randy Good a of coal of over but I if this them, weeks I with the who a

wind. RFPs, just be gas that anticipate megawatts of probably being megawatts around be have I X,XXX projects, wind What intermittent XXX there'll got You've three roughly in of assume. assuming from still so it solar you can't that future all of you big would I'm or X,XXX megawatts. piece

a XX year, year. place Yes. reflected last capacity. would to last Insightful mind XX, XX, IRP of best about And memory in gigawatts. based XXX which we the gas about gigawatts back that out at And the RFP look of or long-term the took question, view was we're from a from so the start from market, three renewables, off to Charles. be XX keep natural MISO in And

the portfolio another of So with it's about system equation bigger a way standalone own than The that transmission. think strength our transmission there. is to

step up through time through we set the the we've that time. All and the stepped driver of that market can reevaluate is said, and the as portfolio in key planning we way this

in not is So that that market for the nameplate XXX you that. the capacity credit is get

a Bailey in overall of Bailey, start it's kind process, portfolio the would retirement in XXXX. start to we progression replace to ultimately really of the and and of way the And relatively yet doesn't it's the for XXXX and in so small the the of retire portion loss a plants fills

will it's through a to iteratively we question So approach dynamic pretty time this answer as that go. step that

of that peaking a megawatts natural saying combined X,XXX cycle do coal the be one-third at it'd Would of would be roughly have this roughly So think be any of retirements, all you or to gas. you're point?

year hearing. not we not And I'm last ran that existing station. want would have makes cycle have saying would our careful IRP to be I then you're combined to that what It's showed accounted that it's about about Sugar be to be, the Creek and

talking about not portfolio, I'm the total So portfolio. replacement the

Okay. Interesting Times. Thank you.

you. Thank

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

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may participating have today's you Ladies gentlemen, Thank and you. wonderful in thank day. Everyone conclude today's disconnect. a does conference. all program and This for you