NiSource (NI) 6 Aug 202020 Q2 Earnings call transcript

Good morning, and welcome to the Q2 2020 NiSource Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remark, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Mr. Nick Drew, Director of Investor Relations and Corporate Finance. begin. may you Sir,

Good Investor welcome Call. Cree. Second the Quarter XXXX morning, you, to and NiSource Thank

update presentation and and quarter well Shawn Strategy Joining as of Chief this review Hulen, Brown, Officer, Executive on today our operations, Officer; financial Our me drivers is are an Investor Donald growth our Joe Vice President Chief Relation and Risk our Treasurer. Officer; plans. and Hamrock, of The purpose performance our Anderson, NiSource's Randy Chief financing XXXX as to of for second provide the Financial

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

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

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

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

us. for our Thanks, morning. was you've Nick. earlier second which Good release, joining had Hopefully, earnings issued a morning, you thank to quarter and all chance read everyone, this

Columbia quarter financial the as of enhanced broader transition is Massachusetts our reposition our than execution for this we a year NiSource in of much of to and Gas focus COVID-XX the topics in mitigate results. did release, is key the call we for sale complete areas. of the XXXX As just NiSource pandemic, impacts our second for cover plan

efforts generation, renewable the we and cost enhancement plan. well-established capabilities It's to our business initiative execute ambitious to realign optimal are the agenda. to modernization our in advancing and performance significant transition we ensure our asset Together, have opportunities NiSource safety designed driving and these programs the accelerated While an on structure. as

our Slide turn let's now and to discuss X takeaways. key So

seen, as to safety spread and the remain we As focused to all Throughout global employee providing customer we NiSource, COVID-XX adapt economy. have reliable the continues on service utility disrupt pandemic. and and we

are release May, see Our In COVID-XX XXXX implemented commercial due case and employees, outlined modest first load to protections line the as increases are scenario for we remain COVID-XX, continue and residential in place. late measures these in mitigate sales. customers impacts outlined our to with negative Cost impacts base on in quarter we which that to industrial have other and been in partially load. intended offset savings by

investors will We investments continue expect Despite manage continue $X.X update capital quarters. these XXXX. to in to related pandemic, we and challenges in future billion to impacts $X.X to billion to in make the

$XX to would investigations the the the million all resolve agreed NiSource pipeline state including safety make to the customers. with response. closing of approval lieu on in proposed an for XXXX, into Public shortly penalties emergency DPU's of in the Last XXXX Resources, with for transaction and Department Massachusetts third Attorney payment Our office and event, which assets targeted planned Columbia Eversource Gas of filed has energy Eversource as of Massachusetts as Utilities, Greater sale a track quarter petition of NiSource regulatory with of a General's of Energy relief a to Lawrence thereafter. well seeking month, approval the joint remains the of Department and remaining related fund investigations of settlement

scale current intended initiative we Massachusetts across closure the transaction cost by and improving structure have to our launched a strategic the multiyear better imminent, the company's With capabilities leverage organization.

roles that with announced responsibilities focus part is year, that of commencing on in earlier leadership first is the we be certain excellence employees groups of voluntary energy, of initiative, along months, a program launched with immediately. for out This enhanced intended positioned organization operational to our today, the effort, waves rolled and safety, customer drive renewable wave we over this and will executive separation this repositioning As to best value. the coming ensure

virtual through incremental approximately modernization XXXX current of needed new generation across portfolio and this range in expected asset discuss net investment our annual impacts cost annual which on of previous capital It the renewable programs. partnerships initial $X.X coal guidance safety restructuring that We our today growth COVID-XX. our $X.X operating ongoing the next investments guidance This our This compound programs. portfolio drive $X.XX. for expect achieve a to the growth $X point scenario an We Investor we strategy This commitment, long-term our at we're next in through our base in plan to retiring growth XXXX anticipated strategy. base to the our includes the also planning $X.X we management through XX%. will Day, annual XXXX. also to plan earnings renewable XXXX driven to annual the plan modernization and establishes initiating XX% about of starting earnings per our venture At the our we is replace X% savings We'll growth billion of to for rate represents plants billion electric opportunities expected case reflects generation share XXXX non-GAAP rate expectations our to will half of $X.XX range in be XX. to of are Day, share about expect for to the initiatives, long-term to by related around and also by to and detail which base with of compound details growth event, provide capital investment Investor excess X% per extend share updates ownership stage a joint September investment more safety

As by expect XXXX. XXX% to retire by we XXXX indicated, have previously and our XX% of remaining generation we nearly coal-fired

strategic plan to reduce to Our investment-grade long-term we our we'll put details all this maintaining And investments. plan to These an We're by balanced we'll this plans, the our provide operating XXXX credit ratings. replacement restructuring to Day, future capital underpin and focused robust robust XXXX we create investment current cost share reductions enhancements today. capital generation bills share to financing expected on details sharing Investor initiative updated per is preview September. XX% for from plan together net cost are gas emissions support progress a fund to look on will and outlook. industry-leading to by our strategy, offsets customer a pleased our also growth be our details and and We'll baseline. XXXX, our greenhouse this as of electric financing to At outline asset with Back they all will modernization we continue growth, our announced to and you priorities: in designed and allow key forward the strategy. our safety execute today, on additional earnings

of we modernization regulatory rate of and PPAs, build of program a an gas are cases XX approval transfer advancing business, made have capacity. storage Maryland, gas of filings seeking approval our amount commercial received of we've Electric new additional base long-term our in significant extension on Pennsylvania of Indiana capacity. And in and Indiana. In in pending megawatts solar for agreements XXX representing negotiations generation megawatts solar and We

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

morning, everyone. good and Joe, Thanks,

$XX COVID-XX. Looking The primarily million our place Slide compared at expense we second net administrative $X.XX and put results driven to $X.XX the of revenue or offset per share XXXX. in million non-GAAP or quarter increase earnings net was to about reduced had operating earnings measures impacts year-over-year in on by share about of X, per operating of employee $XX

our Slide earnings by And $XX including more higher at segment and lower and modernization were our million, debt outlined X, nearly on COVID-specific $X generation Looking COVID COVID-related were administrative segment impacts by expenses from nearly our investments. administrative commercial by up lower lower driven higher revenues safety expenses, O&M demand, reconnect and Gas our industrial Gas Electric and operating employee offset bad the offset operating impacts, and slightly and was I results primarily slightly in and and this for This and COVID primarily late fees. increased million was residential demand. segment. In employee segment, expenses, up reduced lower same maintenance driven the earnings payment by closely

case, were and consistent in and due X, and of most Slide our quarter the million states cash The service April base bad saw share, and in of down. $XX on total with the quarter with outlined flows lower as in the increases industrial sales in commercial per impact to in other or COVID-related revenue shut demand-related expenses. our footprint we was lower and COVID-XX, when $X.XX approximately debt impact for As COVID-XX

mentioned, offset presented I was date, this our has expense barriers As reductions. impact not To modernization significant programs. non-safety-related pandemic and by safety the infrastructure completely to

deferral will adjustments earlier, XXXX. which, with Indiana, $X.X of we capital stand the make all and as bad in Ohio, we -- to and to in as including related billion expenses, expect in debt. continuing we're COVID-XX mentioned seek to to dialogue Joe ready We've orders closely, regulators $X.X to to As these expenses degrees, in We've pandemic Virginia for invest continue of been allow recovery. situation COVID varying states relief Maryland, necessary. for incremental to our received And of monitoring later we're Pennsylvania,

significant on be. our of first As the we call, our severity length on stated will performance impact how the XXXX the and pandemic COVID financial determine quarter will

expecting Our XXXX, growth. still haven't would into of seen impact recovery we us negatively long-term first that our the anything gradual base a case and half has

Turning to on X. Slide guidance XXXX

we As initiated the guidance cost a due scenario. which $X.XX of about savings, share expectations some our COVID-XX, restructuring XXXX detail operating the per Joe guidance range. to earnings is case cost XXXX On with have to base and how achieve reflects net slide, mentioned impact through we $X.XX. this we provided midpoint guidance about initial expect our earlier, we our our This about

excess range our guidance our we're we establishes the -- for long-term XX%. transaction a of we XXXX annual a to plan share results initial the with initiating to that us XX% XXXX, $X.XX that growth expected will previous commitment was per drive of to rate guidance our we to for the starting CMA growth to investments. a in This X% factor $X.XX initial financial today. our earnings our $X.XX We're with portfolio when compound base rate in through growth XXXX impact range month. XXXX and base to forward restructuring of annual that growth our for a X% of shift at Day sharing which an plan rate This cost of is expected due February, expected details and recall renewable the extend X-year strategy $X.XX. announced point in will CAGR growth our $X.XX Investor of that the guidance more long-term the looking in withdrew to fresh You XXXX, next to COVID to brings Once timing

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

Our weighted April, debt. The X.X%. and which level we notes. on interest June million XX XX-year issued debt about our debt In billion long-term loan billion, about term was of of approximately $X $XXX $XX average long-term was and approximately the our as average XX $X.X weighted years, billion maturity was financed of rate was

At the our will quarter, under credit of maintained available and transactions pandemic. the billion, these cash provide accounts impacts liquidity liquidity programs. expect manage securitization through about the and of end our facility second the of consisting we We necessary to net receivable capacity $X the us available of

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

to I'd Slide plan. like covers to XXXX which our Now turn financing X,

programs safety well $XX investment from employee $XXX to from which in issuance at-the-market of as Our purchase providing ongoing other current million equity and our annual million program for $XXX focused is plan, continues to our million or as $XX to our funding stock the programs. include range on and million equity infrastructure ATM

over back and Gas businesses. our provide call investment updates the Joe, from some who turn will and regulatory to to like I'd Now infrastructure Electric

Thank you, Donald.

Now our maintain Commission, in annual let's Pennsylvania, Utility the for an at look modernize distribution and NiSource base the XX. Operations April to our early second In with existing revenue rate quarter on filed of as gas as third some the Slide a quarter XXXX, we million in, starting invest highlights Gas case utilities Public safety system the of upgrade natural system. and $XXX.X well increase with continued seeking of

are XXXX. become rates in New to expected February effective

request the in further of case supports May, Maryland We our state. also filed the in with Public request Service rate pipelines Commission upgrading a and replacement the

result was if recovered program as rates storage $X.X in order of includes by increase the July. current gas transmission extension through fourth in an annual the including The proposal approved or expected to modernization revenue gas be X-year filed. revenue XXXX, is would the Regulatory our charge improvement infrastructure million of investments existing in Utility XXXX. distribution million application in has XXXX. quarter nearly tracker approved gas The tracker. Commission Indiana, in long-term Our of to $XXX XXXX PSC $X.X million, July in program December updated adjustments of in and through In A with capital semiannual been TDSIC since TDSIC place effective program our approved

approval in us our application $XXX regulatory went in to recovered investments infrastructure related allowed million and in program New adjustment capital Ohio not to into approximately IRP. of deferred are adjustment. the our expenses following program begin in our effect rider through in May XXXX. tracker annual This rates remains Public rider Utilities new recovery in of replacement with authorized expected This seeks recovery Commission. before and Also, through replacement is begin covers to of well-established month recover safety allows for effective September of the to pipeline us infrastructure targeted $XXX pending lines. capital application A investments in order that expenditure invested million commission capital, and approximately replacement program, adjustment The in annual this rates XXXX. our made mainline customer in pipeline service Ohio, XXXX. XXXX, priority This

modernization Now Indiana. billion approved turn This designed in in system our now electric originally on will Electric enhancements electric to we will about that Shawn projects. infrastructure further infrastructure and distribution talk Operations by in to program generation progress generation our on XXXX The XXXX. to safety XX. Slide strategy a well-established mention the continue moment, cover And Shawn includes but expect enhance to plan to let's I'll our IURC I renewable our our program includes we long-term in ask execute and $X.X transmission through investments, reliability. electric approximately to make

to and designed plan related will of replacement in new the the NiSource the over We're And coal ownership, joint mentioned save which Targeting form to billion with investment our customers all XX, our XXXX resource Joe. excited as capacity anticipate plan. The integrated joint nearly we cleaner our NIPSCO in and expect of plan, drive This out expected opportunity. also by and the as to renewable purchase this capacity primarily about ventures XXXX by strategy opportunity designed to lower be incremental cost, a on remaining in of Slide is generation emissions outlines XX baseline. ownership Currently, by capital be electric strategy than coal-fire replaced retire by in electric you, We've our equity structured to significant a years. retire and we has to options compared Thank NIPSCO consistent combination reliable Indiana. members. and strategy our ventures, generation a our $X XX% tax earlier, our replacement more the generation which includes of plans through reduction Notably, to PPAs. laid levels the XXXX, XXXX portfolio points a partners which of XX% greenhouse remaining gas the agreements. power is XXXX half in with which

generation, to R.M. As Independent part Station renewable to by plan retire renewable Operator, XXXX. the with $X.X approved System incremental the XXXX We in Schahfer Generating our to in to transition opportunities to of approximately cleaner and primarily X,XXX and of the generation, plan replace we recently replace energy billion, and this capital range capacity our the investment retiring see platform this of coal-fired XXXX. $X the megawatts Midcontinent

As Commission. Brickyard Indiana our Utility end IURC. by the we and XX, year. of the Jordan by before you Indiana wind, and and XXX Regulatory Greensboro be megawatts construction see can solar Creek, PPAs, and currently this megawatts Slide to XX Rosewater approved of on service of Jordan of expected XXX solar have pending projects are solar storage Crossroads the And in Rosewater megawatts under Creek

project, Brickyard already NextEra joint the are in IURC the and which Of Greensboro for construction XXXX. projects tax Energy which projects, the Resources expected wind we venture who approved developed Crossroads and and Rosewater Indiana rate for equity just mentioned, in projects NiSource. mid the the capital structure closing service has Rosewater opportunity represents $XXX investments the million with forward in agreement for the with July, base Wells Fargo. moved also In financing

XXX-megawatt Crossroads, and the was construction build And go agreements, joint transition The of for capacity. Indiana more Day related our with on venture have a our advancing much We America, which to Investor solar With after executed. build by to we service construction call North in Commercial a EDP additional for to are to approved September. which to are are that, transfer is working negotiations expected share are at February to expect of agreements is on regulatory shortly commercial significant I'll agreements, Joe. steps back XXXX. and generation the now next transfer these in filings in upcoming the turn renewable additional project on end Renewables expected representing amount

you, Thank Shawn.

ensure to the that a United made ourselves to at and work hold summer, And diversity, a value racism not creating We race this address and up, will is held based Before valuing nurturing our we this environment NiSource. place will of colleagues tolerate other systemic any we States. the a employees managers, we to a expectation it. we on on, address our at taking I'd NiSource, wrap aspect foundational and see to they and or Internally, head we wherever this like requirement job Earlier is for actions to which to accountable diversity social accountable. will be commitment will that take moment issues our means intolerance fundamental we across diversity.

Before reiterate the a NiSource pandemic, period of Massachusetts of Q&A we Gas enhanced focus key a I'll turn transition COVID-XX Columbia and NiSource represents call, and impacts the the for our of sale complete the key as to few share takeaways. XXXX of of financial reposition in portion mitigate execution for the areas. we

and designed significant We the our investments both have and is are costs. involves will organizational structure investments. effort support ensure be modernization positioned realignment capital a strategic optimally the renewable launched and safety that This to making initiative, our we which we generation, of in enhancement ongoing to asset

billion continue increases We these by to commercial to $X.X expect mitigate other to investments measures savings are sales. on see Despite which industrial continue negative make modest in XXXX. load Cost related challenges we to pandemic, the COVID-XX, been $X.X and due residential implemented load. in in impacts offset partially capital to impacts billion to and have to

XX. excited at investments. establishes growth details which, impacts our of ahead, operating also to with the range is renewable shift initiated per annual planning expected rate compound our the Looking we we're X% portfolio base base scenario extend best-in-class the more savings annual Day, previous drive to share strategy in initial cost net guidance about long-term to starting an COVID-XX. $X.XX. a XX%. strategic base share point earnings to with growth long-term growth will CAGR the excess and of we guidance achieve commitment, the non-GAAP with for next due $X.XX sharing expected plan case expect reflects new have of growth rate XX% Investor XXXX around initiative to again, It to this that through XXXX, through a This for of this September growth rate per our the to you X% to in This earnings We're timing

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

with question Credit your Suisse. And comes Michael from Instructions] Weinstein [Operator first

I guys the you for looks says XX that the you XX that adequate guys months. -- noticed to -- are It next liquidity saying

it would second is of assuming -- the equity that I'm you're might building So through true? safe be no But then block that assume of all, there 'XX, safe block it equity to needed probably And all, generation 'XX? as XXXX. be plan assume be out in that to means first some would

We'll about Day like. Michael, more I'll that on provide it's question. looks Donald. financing Analyst what detail our take the plan

at, to We looking in and way. a will equity, done which the hybrids, finance in balanced converts. past have We're we've this certainly,

builds So But really on with we going come XX% taking to account XX% on least back deliver at and that we're growth, to that we'll September all different options the cost-effective do the in as rate and base that into this way. plan detailed plan financing. that

part built back-end the X% But All that's into assume of is you I right? CAGR, into plan? to generation Which get your as X% right. more loaded the build

Yes. are I 'XX. mean 'XX most investments in and of the

that it's align at I'd we so plans those as -- then for the negotiate plan. at impact provide timing the financing that of the across regulatory projects ultimately, looking projects, our need financing. say our earnings to And cost guidance And really September. generation we're savings with things to that the our in other continue to looking we that

next Your of Dumoulin-Smith Julien America. is with question Bank from

of X% you as about when full this now that where how half? about you do making a if being for rate in you're that being in especially can, be looks you trajectory, I I comment let's that If talk bigger since uptick those especially of talking X%, you the you And cycle and about normalize can, you're bit Mike then 'XX the 'XX little and of really the 'XX the be in about to into back suspect, uplifts and like just up can pick lumpiness think X%? I But more the 'XX. left get you excess, X% those the think you realized. that will specific, think about it excess to a year off. can if it then When more about cases linearity as a

Yes.

investments in investments is got in And you timing aligning about that investments as dilute to supplemental to support We're revenues we from what and have outcomes. get make those certainly, before If the the and regulatory significant we investments. the well when We're shows regulatory chart new fully will those early 'XX our that as 'XX. timing a 'XX those of going and 'XX investments. we've think -- revenues slides

obviously, picks get the we it revenues so full And you'd XXXX. after full and the in impact the up, of have earnings

we're growth. that's the that at well both base CAGR terms growth earnings the as so And in a the reason looking as of rate

it. then for Got here. clarification ask if can And I on the tax equity bit

mix what guys mix $X.X just are in could fine-tune within where then talk over this confidence just want confident X/X, you to solar. you to time about wind roughly backdrop And that, the to I as How moving a of You fine-tune of the on project. novel level structure investment. percent JV-owned you industry. and structure little about also X/X range equity a approval that something your as be clarity that's and is in get time? that billion a between getting against that target also the point billion a know in for little that. capital bit you at the And $X related been tax of I of

back, continuing on is projects, -- mean, starting X/X, to negotiations seeing -- look when the on. and structure type solar, X/X of we're of of the projects wind at that we the RFPs the terms in we're part I we're the got Yes. or really built that the the the of you

much the how RFP driver that's much from a is of And of pricing versus how And the that is time, PPA. the tax ownership same determining big we is really so have at how much equity.

this But is Fair this Okay. There's the not portion right. projects. -- ownership, will cetera? well-established bucket versus RFP JV in this is this PPA that overall fairly at ambiguity pretty enough. of much et feel be All you point, too

we of confident like. as through is as horizon significant the IRP arrangements XX-year form confident that pointed to the range that strikes over customers balance to it yielding the to in lower those well cost Shawn. our investments the moment. the the that capital stepping commercial in in looks provided. believe shareholders. We returns XXXX at No, benefits of We're This what Julien. highly energy the meaningful in We're We're

provide to template already couple will But more detail front a that, of in for the able at the much structures and feel look us September. IURC We to good we've been that's in of follow. a

from Kim with Insoo question next Goldman Sachs. comes Your

the My you question, renewable coal what renewable capacity the see type and the can of base customer just impact Indiana you in first projects, the and when rate of bill retirement? balance impact

Yes. The horizon. expect we question. This savings billion Shawn. Great customer bill over XX-year $X the the impact, is actually,

customers. the O&M imagine, lower you overall As cost of for

So we actually see driving that generation the strategy savings over long term.

annualized On increase rates investment an that increase still side do bill, basis. and in expect the we bill on combined the low single-digit when

XXXX and simultaneously. where through wouldn't of really activity to on to until terms the lines, savings XXXX, that O&M back filing which almost regulatory In expect the we'll step critical then retirement as would that time well and you number XX, we occur yield about that. Schahfer, can is see the What's supplemental this of Slide customers

believe to be bit So moderated bill concert impact they have to but work another, one overall. with we in that a little

targeting you When annual term. ATM using to by then least we range it. XX% perspective, program? about you balance the your from think debt, longer the still still be at sheet And total a expect at just just XX% you're to Got -- XXXX, XX% do do

to term, Yes. we're Long targeting XX%. that XX%

that Again, years, we'll rating provide Just what investment four in next with confident and Analyst we're to that them more plan. over continue with looks recently our about plan the Day. agencies have on conversations like and detail the met at our

with Zmigrodzka is UBS. from question next Our Aga

renewable just to about future size Should be CapEx the we to similar should the announced think from 'XX? that for investments 'XX How 'XX, 'XX? you investments

have of help your We'll question. number to that answer to question. real a inform analyses the IRP will Great

in process In again stepping fact, Indiana. through IRP public XXXX, we'll the be

to But better need MISO by much is to -- be that. the closer insights megawatts Michigan which XXXX. facility, IRP's anticipate perspective, need have grow That about did of speaking it generation from to the replaced. XXXX to XXX would we'll would facility So we capacity we be on City as then that point the retirement

As step and we what referenced commercial the be as Donald IRP process that the the capacity. and costs for would then would would far be fuel what the deliver costs through to the as forum, earlier, solution

peer Could And Pennsylvania your rate of there progressive social and you XX% COVID in settlement your to delays for their a Are distancing? on in case. case in recently, due provide rate any an update announced roughly the Pennsylvania? revenue

No. Okay.

rate we have filed So the case.

we're terms not the We and commission. continue case. seeing COVID the related with intervenors rate of that to in to At the this of timing or outcome point, change any or work expecting

Your comes Evercore Durgesh next Chopra with from ISI. question

-- ask of I and you I part a in answered Can you, question you sort but base in instance, the jurisdictions, we think I XX% what in think how on think rate Ohio, level, XX% XX% consolidated question, my the for growth? to Pennsylvania, about growth my answered your from should of rate bill base to -- Indiana. XX% other terms But the impact

we're Yes. total XX% bill to That's Still, be rate impact Again, not in for single in to growth side, terms targeting low XX%. our about of customers. base digits changing. continue always on the gas see to the of we

Low single.

and just CAGR. I can growth earnings maybe then the And sense. go to back trajectory makes That the to Okay. move

that low below could you alluded should information that? that in to -- maybe ready about X% in or yet to reductions how sure not share cost be years, if so we and that still you're not, thinking growth we you you're that? exceed think you I'm earlier, high-growth about Or but X%? be to range any -- should years, the Given X% in

of then We're Analyst the plan Yes. detail those think of is as to in regulatory and work with that finalizing prepared cost to the yet. we ready be timing that Again, we're about the we'll the and share more that give now, timing savings Day. aligning not investments, our

[Operator from Fishman Instructions] question with next Your is Charles Morningstar.

Guys, the Slide COVID-XX $X.XX go X. -- impact from you I'm from well, looking as at

from guidance, $X.XX go You from guidance COVID. fact XXXX XXXX to in

think comment you impact You COVID-XX. indicated see any from the you long-term was I don't --

assume XXXX? I that, that can post So away $X.XX fades

Yes.

demand reduction an or cases, really customers, to early Our were we'd the it that expect base XXXX. through coming back. base through rate term, case into has through permanent side lingering in commercial if get XXXX, either Long back impact

the really short it's So term.

Okay.

plus guiding? built and EPS into X% growth X% -- that then that the that's So you're to

That's correct.

Okay. that know that remind just me, correct? about project on Have And the number project, of discussions a just approval? past. XX% that by in on for in still approval, you've renewables. has commission And had a was It then back sort the question regulatory is by PPA Indiana, and you I with the owned, informal you would the have go previous something that's question XX% to But a PPA owned? discussed

absolutely correct. Yes. That's

project-by-project basis, You would would it at the commercial a really be. what on arrangements look

it of be. customers at you answered look balance you'd of delivering so that But And service. the over for You'd speak, to XX-year overall to out then what would affordability then horizon, cost find correctly. that the reliable project push a and

go Okay. ahead. Yes, has it --

for Yes. Charles, it's We've the future approach, Joe. joint it's I would the investments. got that that venture as blueprint just is of and established. using model add, well we're a blueprint the approval already

I a because here previous horse confident this dead XX%, a beat with. feel you question morning. to think not on answered And though, this pretty you've The Yes.

that? staff commission probably on had conversations informal You've and with

online. terms laid still following rather in Yes. this the explicitly It out Actually, plan XXXX fairly point we're of closely. IRP. is at tracking it's And that

pretty a updates. So will it's as be provide it process, XXXX to we been in public continue and those

Okay, I'm sorry.

XX% IRP? is the So the in

analysis And the in But that the to on is but IRP. analysis It the It's still mandated pointed it's requirement. in not Yes. XXXX tracked the commercial the is statutorily 'XX that based IRP. approximation through arrangements. that an that was

Chris from Sighinolfi with LLC. is question Next Jefferies

to from wanted follow-on questions Charles' I maybe there.

Just I think, say COVID clear, for impact with guidance you XXXX. is pretty Donald, the to regard

quarter if in, I the I'm the prepared that $X.XX guidance you estimated just use away as that could territory. frame they is we of the up, somewhere mentioned impacts your you were had second curious over presentation may think, how maybe COVID the on gave impacts May around remarks COVID about XXXX with benchmark sort to still time? think good feather a around You

with kind in case better Certainly, of kind of in this But because in is our a Yes, And year the came consistent what provided now, see of to we right. still base negative base still below That's June June seeing still but results. little than bit right how were estimating, to we're what this original our our plan continue of month-by-month COVID. we plays case. watch kind we'll out.

is Okay. CAGR And correct? be year would your that EPS the XXXX, for base

XXXX.

the be will new. XXXX

like about looked improvement was like guess, about structure had Okay. on the options, in that. you more And which a about financial things option, the I derated Joe retirement the then I longer quarter, employee company, made comments made maybe that cost early management separately, performance. as the given thinking expense comments that things non-safety pretty impressive And then

you half do reins Just Coming on for in things the you hard how will do of a programs? this about back more the puts things the about just XQ pulled become in those that and that we color provide COVID year things back couldn't maybe you expense then takes during because Can or maybe of think to offset type on bit permanent back certain different perhaps. little more nature. versus management two

to there's on I'd and certainly Yes. programs initiatives hold more this impact can year, say of temporary different we that back offset COVID. the different items

As beyond, and structural that really reduction at to plan. provide permanent the XXXX will customers we savings it's in cost having about long-term look

I And of mentioned of employee to you be. sense further are to from improvement us you of think five the expect as some months Joe like see the time I might up enacted Investor going some being point programs the now, I how for guess based cost that one acceptance are buckets had by these immediately, guess, successful from offers, -- a on of have Okay. going Day, those might to better you're Is initiatives? to different of tranches frame

on There's Longer VSP more what how scale. Yes, opportunities structure step. our one like. reduce that's long-term to just really Certainly, term, detail which provide that it invest plan do organization We'll is digitization, is around right. we in improves how more our looks productivity our it's really do at to on we details and provide across improve operational Analyst term, we'll how that excellence to then continue to around long perform we work, our on drive operations. continue And to Day.

is this Chris, And Joe.

We'll Just as here. said, in half temporary back the the response, the made question the changes quarter the of spirit and framing year, see help to of Donald's certainly, some Donald in the time. we second in of more structural that some an cost cost. in we've this changes had is And of I beginning really initiatives permanent of We would restructuring the underway some number for the a had initiatives though, acceleration add, of there's underway.

And three we more back we those to we're O&M. will, as accelerating years initiatives. lot ago, into that said, on a or a have as far this when And in together. Donald of designed two transition moment, step detail as get we number As flatten September

Okay. Totally Great. unrelated question, Donald.

the some negative with think, regard results to second quarter, anything you with flagged back. performance life the company-owned you from that if had just in in the or release, some Just second quarter I'm assuming in there? was your could you got the headwind insurance. first here market of curious it that I'm for rebound quarter anything us frame of the noteworthy I

Certainly, perform second our market that did but drives significant this nothing came the the year. quarter Yes. overall better it in and back, results

over turn I questions. no back to are Joe the to there like would time, call Hamrock. this At

September forward we that you out look all interest go you and again to again support laid framing more seeing detail when you, for for on do Cree. ongoing Thank thank we your participating into of today, NiSource. the in in We today. And

make have and day. safe Thank So it good you. a a day

This today's concludes conference.

disconnect. now may You