Black Hills (BKH) 3 Aug 232023 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Second Quarter 2023 Black Hills Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

to Nichols, conference Director like speaker to now Jerome today, of would hand over the your I Investor Relations.

good XXXX and Corporation’s you, morning, to Welcome Thank Black second quarter earnings call. conference everyone. Hills

our find website and our Chief Evans, our quarterly under call www.blackhillscorp.com discussion this can materials morning for earnings You at heading. Relations President President this Senior Investor the earnings and morning on Executive President and Chief Leading Linn release Officer. Senior Officer; and Todd this Jones, Kimberly Also President and and are Utilities; Vice Marne Vice of Vice Nooney, of attending Senior Strategy. Financial Jacobs, Growth are

During as are of uncertainties our we statements defined comments by the inherent in the a number such Exchange today, earnings there some comments. Securities of and forward-looking make may contain and discussion Commission,

most our believe X we differ may earnings recent We of Although on based some and list XX-Q our the are of actual future could investor release, factors that reasonable that expectations. to results from assumptions, on the the results direct website a our Slide you Form cause materially. with expectations presentation our Form our differ for of materially SEC XX-K and to filed

to over Evans. I turn the will now call Linn

all Thank today. for you, thank Jerome, and you us joining

on pleased As provide serving and our will our #X by of progress to upon are we said, team’s and as on regulatory Slide of Jerome Kimberly that’s operational continue this comments on and X. I’m growth I’ll leadership our our and will plan team. very reliably. proud prepared initiatives. Marne begin business updates to safely my deliver customers priority, morning our provide performance joined be our I our X Todd senior additional members update.

and and across As planning our to comfortable hot, continuous us, excellence. weather bitterly recent events focus keeping whether requires operations it’s cold our long-term blistering a on customers country safe, or remind extreme continue

how quarter, on advancing we’re progress sheet key excellence and all expectations, balance our energy strengthen engaged while communities. productive tangible improve success growth plan grateful our objectives: life with prior collective our working team in earnings regulatory building and our focus to our for our to X delivering initiatives. continuing a to our within together and on on making I’m had We

We’re capital on our with of XXXX million. track $XXX plan

We’re our resource add now in to capital megawatts and Dakota a upside of our base the in renewable combined representing execution XXX phase plans Those electric of plan. plans resources. ownership South opportunities, to include Colorado

and support steady remains Our team deliver us opportunities key initiatives progress financial guidance. X quarter. outlook, growth Slide to continues achieving to first with a the our on other our consistent earnings which drumbeat of lists

growth our of per guidance share of reaffirming X% long-term X%. our target earnings to and We’re $X.XX $X.XX EPS to

from period upside the capital the $X.X resource forecast ago. a billion I for at base X-year with mentioned Our generation moment plans remains

We typically update quarter when our our forecast earnings. capital we third report

our However, financial year-end moving coincide annual align process. outlook planning with we’re update our internal earnings our with and to

our dividend. roll plan and of the Our and include earnings our guidance, earnings QX forward annual XXXX refreshed dividend capital and our increase will

long-term growing executing and strategy in our summarize, our value we’re To progress on and toward communities our delivering customers, for shareholders. success

broader of resilient staying near-term and record stronger through track more growth base emerge a leveraging proven operational range a to and and We’re efficient and financial expect the with opportunities even power uncertainty uncertainty. of

review. financial Kimberly? our provide will Kimberly that, With

higher increased and driven second These rider new my tax a $X.XX to quarter same per interest results tempered earnings X everyone. the expenses, on comments included higher Thank year’s to of mild last quarter earnings year. We share rates This delivered rates EPS recovery. with by and expense primarily for Slide Uri good I’ll Last and the compared you, true-up. by last storm compared year. were to begin due earnings state operating winter to $X.XX related Linn, and benefit year’s weather. recovery period morning, $X.XX second were income interest a

negative Higher highlights had $X.XX QX Weather compared and EPS and change were $X.XX the XXXX. XXXX X driven the We a off-system of last share margins a after-tax $X.XX per services Slide drivers of rates in utility of year. gain from of of year-over-year a a for last from unfavorable benefit impact compared per year. normal in compared new versus XXXX to $X.XX income by transmission had and in investment QX period energy to mark-to-market $X.XX sales. net riders to EPS impact $X.XX in QX QX share same

by labor O&M expenses driven primarily year-over-year, X.X% impacts on benefits. the inflationary increased costs and

our managing hiring the for remainder and controllable actively including are the on expenses. year, of We expenses limits

with was measure due benefit costs. from that $X.XX higher To tax year, a be to market debt a clear, includes non-adjusted rates. a was Other higher this the increased pension impact expense EPS incentive interest consistent total of $X.XX on true-up While last quarter. is to due interest plans state performance EPS GAAP of income reported expense and our

remainder midrange through benefit to guidance. we the from our cost diligent in remain of We of of with results, a coupled our $X.XX Subtracting achieve anticipate EPS variety our delivering managing year, the the management focused initiatives EPS cost management at objectives. the

and are in results yesterday. financial our regarding our released release available XX-Q details Additional earnings

X. Slide to Moving

financing liquidity disciplined We executing investment position cash from flows resulting strengthen capital balance operations, and our from continue to plan. our and sheet strong

robust revenue fuel Our operations flows cash customer growth. cost were recovery, and rates, customer recovery from rider by new driven

our during financing plan to continue We the quarter. execute

investment $XXX this program We’re prudently year. for capital our million to managing approximately

to $XX We issue continue total equity program date. million shares to at-the-market issued our through of a with

November, year Our this debt liquidity, sheet. reducing is repay of a to paid in continued us balance primarily to Earlier will issued further due $XXX for all down overall we our year, the million guidance notes this total debt, have which was portion of allow In debt to program. improved short-term debt. plan we strengthen our with the used This year, ATM our million and line our refinance $XXX to equity of balance. $XXX through million to short-term our million issue $XXX for

Slide improved million to due our of basis we At quality, liquidity. credit to $XXX X approximately liquidity. cash debt From credit facility, had total end, to position XXX million borrowings year-end, financial short-term displays our on capitalization length with nearly points $XXX by million net XX.X%. of quarter capital our and of revolving available no we structure $XXX providing

Slide XX long-term increasing displays and record. our industry-leading A growing strategy shareholders. for component dependable of for is dividend our our track a value dividend

continue our track EPS with to dividend of increases in increases long-term record expect We rate. our with line XX-year growth

ratio We XX%. of to also a to continue XX% payout target

and our QX and to annual increase earnings dividend with dividend earlier, mentioned Linn our in provide announcement and we As intend guidance XXXX. year-end for February outlook earnings

As noted financial planning align will this previously, with internal our process.

turn to now it update. over I’ll for our business Marne

team we’re focus note quarter. on achievements our Slide voluntary outlined reliability of us, Star for proud our for XX. highest were Thanks, the their honor, significant Kimberly. start I’ll for OSHA on OSHA’s safety Operational this excellence extending Two is to safety as facilities priority by and our Safety and generation by electric a protection recognizing achievement of daily recognized Status. programs

X Colorado of and Generating Station our Wyoming years Generating Station in Cheyenne of for our team Status. X reaching We’re another in years at Prairie another Pueblo for vesting the Airport Star of proud

state-of-the-art regarding gas quarter headlines the made natural our of during processes. one also We

geographic by recognized Gas was information system. American best for Association’s team Our our the program XXXX practices

safe upon of installation system efficient accurate our system pipe access enabling projects. management GIS information construction system us enables best-in-class and materials, Our and to of and

communities. recognized pleased our and safety are of part We the in be reliability AGA’s be and program to area, and system work of this to our for supporting the

our assessment of important this priority most to the summer, operating the especially our be is for encouraging our generation granted Our single and customers electric aware transmission team We providing energy. safe noteworthy need as reliability with reliability. for and resources This electric for diverse for NERC’s operations customers. delivers and on industry-leading reliable reliability don’t our keenly is generation of excellence take our against backdrop efficiently providers

Slide XX of South is plans in our a and electric Dakota. Colorado progressing resource reminder

for for In website for resources underway bidding in our July in goal as XX% megawatts renewable achieve renewable resources XXXX service be are XXXX. XXXX, and clean megawatts to in outlined Colorado with in XXX we plan. each our new reduction released RFP utility its a of execution phases These are necessary XXX our resources We energy late to Colorado, carbon by state. competitive between combined of year-end processes in Electric the

allows own to to in XXX us new XX% resources, up approved to Our of the reasonable at customers. state cost megawatts or settlement if

for to be In South bidder we QX megawatts with complete underway, by expect Dakota, build of mid-XXXX. those renewable bids in bids the received generation is of energy in service selected the XXXX. Evaluation second during transfer of and negotiations were quarter to XXX

and customers life improving safe initiatives. well key to our delivering summary, In consistently our our service of are executing and on executing we with strategic reliable energy, on mission

an over progress strategy update I’ll on our for that, to With it turn growth. regulatory and Todd and

our start which $X.X settlement the The XX, of Pipeline on provides for Thank I’m regulatory provides in investment received you, rate new necessary our Slide a July Marne. a July, pleased million for Natural since in rates Gas Colorado. approval review very Rocky that in final that with last These appreciate led effective rate in revenue the $XXX note with constructive and that were to million systems engagement recover review in We annual in settlement. XXXX. a case to of stakeholders XX. we Mountain our settlement I’ll for update. rates new new

progress. In new filed two May, have seeking gas Wyoming by We in in we of rates rate reviews and QX next year. natural Colorado

and nearly and annual seeking investments regulatory the rate of the to Arkansas. communities requesting are in recover We These million million rate our revenue. review in $XXX by of track. moving this with on We plan gas $XX are later process Northwest reviews a growing through natural are new investments two the driven support ongoing in to year Arkansas are to file states review rate

to and of reviews. evaluate plan potential our We future continue the timing rate regulatory

new evaluating given of higher actively also are rates our the acceleration interest on the businesses. inflation of We impact and requests regulatory

customer-focused XX. opportunities. plan Moving our growth to upside Slide slide our illustrates and This potential

are infrastructure investments and and profitable customers, of in the safety with needs growth. pursuing our other We investing our improving reliability core

an Our focus as we’re rate through capital our managing In of investments base capital annually. balance XXXX, sheet. $XXX XXXX $XXX approximately forecast billion we of strengthening million reflects to run $X.X million approximately annual on

is Incremental over for our growing are $XXX the projects resiliency the plan million, Wyoming XXXX increases of by construction incremental plans. drive solutions, of new living profitable and which intentionally from margin to and into little developing our this project and transmission base pursuing includes pipeline electric In of deferrals we forecast capital our capital reliability strategic to investment to to XXXX. choice. of cultivating needs to no partner Ready systems require customers. driven the dollars energy and is capital resource XXXX our and to serve includes maintain that innovative be an our from vision through other opportunities plan growth, near-term, our streams The capstone to Our

Slide customer-focused natural lays XX Ready Southeastern of blockchain, example areas: our our transmission gas data project Wyoming efficiency. is and driving out five Wyoming. mile effectiveness key and renewable and An initiatives our XXX expansion, strategic organizational project infrastructure in transmission a centers, storage, in

we for quarter, received Wyoming from Service Public the approval During final Commission. CPCN our the

We’re we of of remain finalizing year targeted preferred to on track the with XXXX. and locations rights line, transmission for through this the way phased construction completion start

actively are We are transmission pipelines projects. such we evaluating other needs opportunities, also gas other always incremental and as pursuing storage natural and

data approach customers. of customized for customers our to provide are our innovative service centers solutions examples Our and and blockchain to

plans communicated resources robust attractive strong connectivity, serving location elevation for have about data Wyoming center data operations metro energy and higher growth in the area. is center to Denver for optimistic hyperscale wind the an fiber regional Cheyenne in long-term especially especially centers. We’re growth Cheyenne, with proximity cooling, customers demand area. efficient Data

capital with located Cheyenne we during in initial up to blockchain Our this no successfully intake little the customer second We risk first they have note customer. in and energy ramped quarter. service, is their that at

optimistic blockchain this model is to other a forward. approach for that We’re prospects going scalable

growth service. six sweet into Renewable natural is service gas placed RNG interconnects territories. another of already in us rich for spot We’ve our agriculture

projects being the on three line we several and other have this evaluated. nearing potential interconnects We’re additional year, finish

in dedicated growing and team these is that the are actively on focused RNG We a opportunities. we developing have participating market,

will see system. We helping our projects to and an onto nation’s role continue playing in further natural RNG we engage decarbonize system increasing our integrate market to as in RNG gas more this

that sustainable ongoing innovation through and we our and our will serve improvement seek through how efficiencies serve Forward how business initiative, do business drive and cost also Energy we We’re in customers Through how initiative. we in our continuous we our customers. operate fostering savings and out

clean And lastly, energy Slide XX goals. lists our

achieve to report of reduce quarter plans. responsibly electric our for second XXXX zero for net our I by to and sustainability refer XX% to more gas Our new emissions you corporate plan published during strategy by our natural emissions integrates and our progress the XXXX by systems. detail

back excited In growth I to before and closing, our and of strategy am turn Linn, diversity it I about the opportunities. our

review to in efficient more this industry stakeholders and evaluate Linn? better continue long-term serve We and strategy our for ever-changing and to and create our ways landscape macroeconomic value. to

management. team our Hills Thank our results focus you, Todd, initiatives continued quarter how all capital and results and to plans strategic the solid of for I’m and we progress. thank resource of Energy and in our our strengthened our you progress pleased operational Black including and our execution, acute balance sheet, on excellence, another of our with growth O&M

the half track beyond. a of second for financial first the along management and XXXX have results us on of ongoing with year, through successful year this for half the Our cost

we’re that, take happy your to questions. With

Instructions] with Bank Thank America. Paul you. from comes [Operator Zimbardo question Our of first

You proceed. may

actually much appreciate it’s Thank Hey, chat team. you the Hi, guys. time. Hey, for here. opportunity the good morning, to Julien. very I

Just just to third angel, off, clarify quarter. I on recent the ‘XX year-end versus, call now for suppose, this years, in historically expectations first

or to elaborate a seen we’ve that? the environment because on Is timing thought. any on Just you in the much so bit just it commentary volatility further want little rate

Yes.

you’re that look head. inflationary we the the think It’s of on nail I some face challenges we forward. as the hitting

we Julien. and the want to the We’re dealing talked that. we’re midrange our of about O&M with guidance, validating challenges hit the on We that call,

I hear you.

of the the In about here, even with midpoint guidance, the ‘XX? of midpoint speaking feel the the good excluding guidance with you gain, for fact,

Absolutely.

controllable focused labor midrange externally have of both achieving as experienced and this of focused costs, costs, things outside we services, levers managing our those we’re that think Julien. on we X first services, that labor guidance internally a on that costs. we you the that get focused Big We’re O&M, were things and we outside but pull controllable months, absolutely we can can with about so O&M lot on we labor and provided. travel are There to

of And Julien, initiated. the many things we that have

start impact results the second of We of will of through see the the year. the half those, those to

of attaining midrange our us gives in that So confidence the guidance.

think really gas and And that interest is from pay one we And guidance, of maybe, Julien, follow-up allowed cash landscape. areas down thinking but flows short-term we seen that on. benefit of we’ve only earnings the debt, one to had income we’ve is financial holistic when the not some strong the recovery have we’re operations us cash that earning cost we’re

overall So to seen just that opportunity another date. we’ve

the another you And roll know I that or pivot here. you quickly. in right, right? trends of of trends side, consistent take. in factor forward Yes. I And actually, that give some you since how terms of I has ‘XX? the mentioned for if is towards see core mean, finally starting I looks here, are to think, here lot gains, O&M The terms $X.XX-ish a core moderating again, theme that can it here? like as been looking trending year excluding into guys a a Are O&M inflation How there your peers at real we

let Maybe ask that me slightly differently.

the seen O&M is the to X% that year-to-date X% the of a on the previously about here expense. I here versus that’s the to of reaccelerating against have being and and well. think and weaker achieving lot both near-term I X% why maybe what trend kind of as inflationary we’ve longer-term think on been talking we’d on of that X%. you cadence headwinds How growth interest late been O&M And put

spot characterized I on. it the you think was way

we higher you that taken look inflation, have in account forward into as plan. experiencing, We’re as the but we mentioned,

some that we materialize. opportunities growth will great So have

the earlier when we as As a growth Todd which blockchain. from about bit we organic or we growth our think opportunities talked about little from perspective, refer initiatives, data centers our customer have to capital-light

So we of opportunities. have lot a growth strong

our may the hit the we as earlier it part by plan. you X% in X%, So be but more inflation whole want yes, to about think the impacted to of numbers,

this And is mentioned, as you Julien, Linn.

a inflation. You are as those seen of inflation. costs we’ve sticky. strong we maybe But mentioned very we are seeing softening Yes, that know,

those to we And costs sticking need with. of so the deal we have

our achieve. We us filing those schedule need to reviewing rate are reviews, the dealing we and with. we’re achieve rate accelerating growth that why help That’s maybe review to

cadence you the pervasive, Yes. when you. And as year, of nitpick equity any the there. back that It’s I think on on front, just half back of say. last through hold tapping to hear the just into about here you you will, the if reason that ATM

Great absolutely. Julien. No, question,

balance to been focused on to be that our sheet credit We’ve BBB+ focused credit relates quality. BBB+ on as So we strengthening continue it that quality.

we as focused guidance equity reaffirmed, to on the of as those help and objectives. in $XXX put we support million million we’re So to $XXX

But feel you presently nuance you that or achieved you’ve Right. be balance being to there need sheet? where like the these the on by year-end? Are

Yes.

just for question, great So let’s that. and clarify

We’re strengthen QX balance continuing of when just earnings, so softer seasonal nature part is and about very our strong is are a quarters. our right? QX always And the flow sheet, quarter of you think QX by cash business. to

we we will And earnings So well. sheet our issuances. into the then continue the strengthen help equity to that strength through QX, as as move balance obviously,

our very BBB+ credit focused, on Julien We’re metrics. achieving

on focused that. very We’re

Appreciate you, See Thank clear. Good guys you being guys Absolutely. it. luck. for soon.

you, Thank Julien.

Thank you, Julien.

comes from Will Grainger with question Our next Mizuho.

You may proceed.

Good morning. Hi.

Good morning, Will.

Thanks my for taking questions.

in Just are timeline you case And to I What’s want Arkansas, rate How see that? talk preparing now? about of you to about file a can that? the there. thinking that are ask prompting you

significant Todd. of by in Northwest communities in driven a really Yes. Arkansas. It’s investment This growing is amount

that the that for is really So, main case. driver

QX around rates QX, this towards the following timing, effective of year, are time same terms the leaning of In year. we with

that’s we significant the – get a driven by some on a of very of investment long amount clarity So, specific tasks getting have state. we in really will that

Got are your you you. about the thinking here, as the RNG, long-term business? looking then it. investments strategy of you about or opposed regulated? are maybe you And How at looking regulated-like you just investments term are strategy and Thank thinking businesses some longer mentioned to at purely maybe

It’s of a bit a mix.

We talented to do by pipeline, now customer like are the out so RNG into the that for that interstate know where there really be system. to really that able a producers to and dedicated interconnects broader have looking organization we amount for that some significant a right was the were want people team demand we within of RNG driven get employees they pipes pulled into put where

on And early so and know started to what point those B. interconnects that space. spot. we sweet we opportunities. out point right now really focused And connecting are looking at on We other regulated is It’s A our

So, there and it’s example, put hubs where to dairy RNG centralized interconnects, natural location be into where may there the system. be truck may purified gas farms, for

We are at looking investments. other

our got in would right I space. so assets. really the the water but lot significant amount of have have now, And of operate what America. bulk a interest We a the say of in in rural on toe again, regulated farms that we around non-reg we is that side, But to-date

to gas And future explore respect so also to understand we area see in stay and ways how with the to upside develops in decarbonize really our we want natural involved system. it where that it,

it I Understood. much there. Thank very you for the time. will leave super That’s helpful.

Thank you.

from Scotiabank. Instructions] Weisel question with [Operator Our Andrew next comes

You proceed. may

everybody. morning good Hey,

Andrew. morning Good

Andrew. morning Good

balance make message last kind something to you sheet, I growth I to you am that. I to trying of First, growth, of slide Is on am deliberate quarter, or a and the about or something. a out something out probably changes, removed checkpoint meant of had customer for clarify be nothing? to But nothing. that want make trying the customer just

on pointing that intentional part. for that No, to us. you our was not thank out No,

strong customer We of Range Todd strong mentioned a our still growth strong into growth. what’s growth, real just happening seeing Dakota, Rapid service Arkansas, South are nice in Northwest territories. Front Colorado, City, growth.

the So, still us. for case that’s

we omission time. will that was pay attention more So, to that next part. our an And simply on

bringing for to thanks So, attention, Andrew. it our

are trends strong. sure wanted Just still to the make

the of Okay. earlier this you My of a the is I CapEx. you balance about in that but sheet nicely. one balance question something repair alluded bigger past think questions, on to sheet, being constraint on of coming the The in talked along sort

better regulatory things a taken of actions recovery. and have the You gotten have on lot

expect February So, is, should CapEx increase in the update? an my question directionally, with we

I in anticipate year, we we far would about What said say, next $XXX correct. that is have general, million. so is

that course, this we But later time appropriate earnings. announce at do to Wyoming when we will the construction example, have start given the we project, transmission year-end that ready an year. Of we as intend

the we then an $XXX with generally as think increase capital rate kind about IRPs. from will of and then million it can resource And in in said, will South year you million So, at year, integrated watch Dakota. perspective. a we plan of run being next that $XXX a least see And the we that’s

energy We Colorado. plan clean have the in

We forecast if have generation also influence to that renewable not invest in part could that spend outer you in will. capital of is those currently opportunity our we capital years, the

some helpful. you when? Okay. count of in potentially Then and mentioned might you which filings, now, given case have? you last Great. rate right quiet a is little many accelerating Your next Very subs for one how come one, terms jurisdictions filings,

Sure.

about in things visited those of states. regulators, that, typically with staff, Andrew. the until that We publicly we cautious have visited nature with not something say the That’s we are

we great to And relationships with that so respect our for of we like them out ensure to protocol follow and regulators. have

So, the about at we time. clear be will appropriate that very

enough. Thank Fair Okay. you very much.

you, Andrew. Thank

for Thank you. moment One questions.

Siebert question comes Williams. from next with Ellinghaus Christopher Our

proceed. may You

I talking just midpoint talking the Are you when on gap guidance everybody. of make you to being sure there? the I the focused for understood about Hey want were making year.

Yes.

on clear be great just let’s question. – So,

talked Obviously, through well. we it’s cash make or opportunities focused costs, the all leveraging margin from address talked the up, income state that we perspective. tax we So, our managing guidance, are did as of include income O&M true-up. on going $X.XX the when are about that the And as to about how reaffirmed midrange we the be we our to that guidance not of $X.XX flows from going gain interest an

do it items So, to make just include that, some does I up we not just have be that work mentioned. and clear, to that through to the

Thanks. Great. Okay.

Can Slide are zero at source How net you is that you XX, XXXX vis-à-vis much of molecules? how or be us thoughts side. the RNG give some the Looking new gas your that those leak things? of you prevention, any upgrades as And sideline, on pipes. has sort thoughts Have enable issue be sorts might sort of hydrogen to of the system on a plan target the for hydrogen? thinking for hydrogen got molecular might future? much of How of much with

Todd that. Yes. related at-risk will emissions and Jacobs, majority net of that This are is goal I for cover reductions and The materials. the to pipeline vast zero really aging

a leak that Some to it of are really we very to areas some terms is system, of that in we on on fuels and artificial want smaller processes have line The and for to that intelligence to a of the best also and have damages. third-party practices reduction company had carbon be taking third-party hits, of best-in-class for amount example, is reduction show We we overall of our in our detection, part seen significant relates how to area related where overall in risk a respond amount tremendous of where good low so offsets. improvement carbon then focus. component

with real existing we And put so together today. what can that we a plan execute technology is have

Hydrogen are if look where you terms will, fit interesting. consumer, I Chris, evaluating within very jurisdictions. this of fuels And more on so when fits that present, carbon we think what’s low all with overall available. seems is how we very is fuels, we in really price low cost the carbon in Remember, at cold RNG overall. But operate that picture, something impact

Ultimately, see bit as are question it. hydrogen we gas natural say pipelines, a our actively would us. of a having a for I so long-term And is future. we following

some how We infrastructure. studies some at note, that are our you engineering understanding impacts it looking the of better existing and of developments of pipeline

hydrogen the what’s in is piece industry. that in very wait much but of the more developed being and think terms I of So, a see, watchful

will nature with hydrogen, is, the of molecular indicating. of what You very mentioned, how watch. so that and we it be to are light Chris, really aware how was That’s is, fascinating it well Todd corrosive it

it. watch will We

electric blend XX% can generation are of finished how hydrogen just about we We on if Generating Station. there. studying about at could blend we think tabletop, exercise our it studying side a generation successfully And our you side, up will, we it, Cheyenne the Prairie we especially to business,

But be also we as focused about cautious in well. well. mode are that as but So, we are very on we it, will a it being learning learning and

Okay. any you – And RFPs? process of the thought on lastly, have completion on your the updates

So, this those Both the for way. the Thanks – is the both Marne, are by Chris. of RFP of question, RFPs underway.

top South late Dakota we evaluating back the issued Electric, in negotiations those was just QX issued July. In in that bids I bidder to RFP currently Colorado sorry, are and had in under XXXX. with expect be March, and – bids, we those am QX of

to a request. This, will in renewable in. that’s do XXX-megawatt October. we Again, bids come expect We resource

just that getting process underway. So, that is – is just process

investments of some give at when may you portion the the So, update quarter, knowledge have renewable you fourth for that of point?

on more have QX but little in be should and be bit into to probably will with insight ‘XX, more detail. QX QX, but QX target likely of It’s a we some

will around talk We it. roughly RFP, about able Colorado, the we it’s are should be South to see. well, Chris, Dakota especially excited we progressing and But

So, customers for and shareholders. it’s some opportunity great

details for Okay. Thanks everybody. the

you, Thank Chris.

Chris. you, Thank

like to back now the closing for over remarks. would Linn any I turn you. Evans call Thank to

background not, of Well, Motorcycle if roar the outside can motorcycles thank the know them our you Rally can window. today. us The in or Sturgis don’t much you we hear hear joining very I tomorrow. for starts

I love shareholders. and our South Black Dakota, would delivering to for are please if let who Hills work Sturgis at to focused in and here, my or we hard coworkers know So, us to the customers very grateful are am on are you and traveling see our you value you.

wish So, I thanks Energy on and productive behalf Hills And us. you day. a team, really safe of the Black again, for joining

This conference Thank concludes today’s participating. you you. for Thank call.

now You disconnect. may