Algonquin Power & Utilities (AQN) 13 Aug 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Q2 Earnings Call for Algonquin Power & Utilities Operation. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] I’ll now like to hand the conference over to your speaker today Miss Amelia Tsang. Thank you. Amelia. ahead, go Please

Executive supplemental morning, To second for Presenting of we this quarter Arun Officer joining and today Good Chief Kacprzak, morning Officer. Financial our Johnston, and the us part will for are Also Chief President presentation accompany our our earnings earnings Banskota, and Jeff everyone. you. Arthur today, the joining webcast Officer. our call Thanks us this call our Officer Thank conference for a our morning question-and-answer Norman, on be have Johnny Chief call the website our Development available Operating Chief algonquinpowerandutilities.com. call.

and website, financial and on EDGAR. as Our also available and analysis as management well on the discussion SEDAR statements are

you Before forward-looking continuing end I SEDAR regarding of our Arthur follow items. EDGAR strategic At forward-looking this Arun then recent financial with an on Arun that measures. a include for call call of Please including during with financial information, future and expenditures. On notice update call, non-GAAP regarding the to on an on website certain and will important our performance. the plan refer earnings filed call, discussion we MD&A our our to our remind and available business. these provide the will results not and morning, our also for the additional QX most to our limited but overview on capital information the will will expectations information read and would will both like conclude the

additional to it that, And two. questions to opportunity you that the provide you will if others over I with your questions questions. the any re-queue then open ask Arun. turn then We have And to I'll to lines for participate. restrict

earnings those able XX. the a online. And a today, been net year XX% to you, our in increase year. join good the pleased megawatts welcome our over new year over the on and to the of over construction report from year adjusted construction special and quarter year close $X.XX. I'm of the very is projects. quarter’s earnings I'm Friday QX were compared year. to report that who've to the key XXXX, increase And growth began this in year. year's us the QX second last call And morning million, XXXX to to Thank Amelia. for cents, $X.XX renewable to a last of share generation a of financial These year solid an XX% $XXX.X year metrics pleased was And this in adjusted this over XXXX of approximately progress brings course addition was per solid growth megawatts of project completion. the EBITDA

the from the year this operations line to workforce slowly our to employees measures this continues safety operate we return pandemic have remotely. our closed also operational last performed both in first that health the benefits we and XX% in speaking, electric starting negative intended ESSAL to as in year, from as to on Approximately quarter Generally seen earnings in second year quarter. the our that materially company's and in see employ are full the impacts of protect not Recall by I'm impacted well pleased continue We impact did $X.XX conditions Bermuda which the not late both operating report and company's results utility utility loads work normal. our And regions water to to we pandemic from last per expectations. have the were with Chile, a have on at of customers. COVID the as of share. day, the business

diminish. further as operations is coming the the months, planning the to return base the to impacts company pandemic Over of

continue we for variant keep developments and However, watch the any adjust with will accordingly. Delta to

operate on efforts primary some to update. excellence team Algonquin’s for pillars; strategic three and We and we'll sustainability. each growth, operational Our spend on an businesses focus time regulated two through continues our and renewables

lever make side, our growth we initiatives. fleet important accelerate greening the the On is clean to as We've of for a continued investments of our future. customers, transition the energy regulatory one our benefit to

of with is And carbon ahead been During emissions has all facilities recently and effective, the District Neosho filed Empire solutions Fork acquired and Ridge, related of completed million its Electric Company. been tons the and successfully Point The second placed & by March dioxide as closure and metric reduce approximately North our Midwest of accordance customers fleet integrated XX to XXXX work schedule, original comes quarter, X our cost in Greening expected deliver diverse communities. Ridge to in plan. most generate we in for energy plant Asbury sustainable our Kings retirement years as we initiative, wind resource service three has nearly the coal by

Empire. XX% since more responsible to be acquired just which X Since of The Greening our by cost approved, California the Midwest Scope the and retirement the year the Scope meeting to adding reliability, seeking completion which savings carbon dollar the path Scope lithium CalPeco continue new And continue ion the portfolio contributed megawatt megawatt XXXX, emissions solar emissions. to one pioneer Luning hour X of gas recently long us as greenhouse to application Asbury Liberty's to energy the an the to term revenue renewables benefit decarbonize provide Public X customers. by and our intensity objectives. XXXX, facility we and our will as infrastructure as customers of price project, of this also already We and in renewable on is operations per investment, The has battery the with filed over that have total supply XX an Liberty's we will stability, Utilities intensity company's storage of reduce to is Liberty facility Commission well approve standards, energy XXX assets, in and emissions, step financing, build integrated. Initiative in XX%. are in company reducing early by early combined construction stewards resiliency, to reduced if reduction addition help to expected be a of expansion

a Another activity our improve Working of important strive customers, the regulated investments to jurisdictions lever make in regulators, growth the to of while the business of we the the organic our the regulatory we be jurisdictions of improving managing mentioned for of cost second continues mission reliability facilities our is earlier. updates infrastructure. the in and local necessary across XXX their which In with quarter, Raise included case the our the wind rate few at end filed generation operate to wanted safety ongoing electric megawatts to active. case And service I commission quite bills. in some the with critical completed affordability seeking investments our Missouri recovery that three of with provide in. May, you recently we

a be addition, in path to filed filing for by storm query, lawsuit included to related to impact pursue. allow a the we while California, town Apple passed, our items these subsequently which Apple In costs intend legislation of of been condemnation the operates original will has Valley, the securitized which subject which was of winter Valley.

supports recently have of last proceedings continued that in received over a and legal and been water For system tentative statement system. the the decision we of ownership the our years, few operation

for and July. We benefit our continue filed Apple Water have the California, of record in to a forward services with Valley safe case the Park filed of the we providing rate reliable Pico of and services to those May track of water customers. we working on our Valley rate in Staying and Cal look Apple our case town topic

to customer be first, first California seeking I'll the file will which more of cases details utilities on rate Our provide later. recovery

in agreement In North recently our Hampshire. we for system tentative reached New addition, Energy a gas

commission authorized equity increase, structure As part the is X.X% result to equity $X.X of and which of permanent expected return million revenue a on settlement, of on of in rate a based increase capital a XX%. the

which and were addition, as further of and authorization Further, tracking is million further North of the for XXXX of received the predictability $X.X an expected property authorized diligence for cap a In part to hearings. million increase building mechanism, Energy settlement, XXXX $X for tax adjustments earnings.

the the acquisition since a regulatory constructive the reached of with case rate quarter we the Boto completed front, authority on outcome in case rate first of fourth regulatory Bermuda, year. Lastly, marking last the of

acquisitions. two utilities currently pending Another And XXXX, integration is acquisition completed the settlement we lever QX of well. to growth American Water, family Algonquin ESSAL our of these go in of acquisitions going process. New continues Ascendant. the Liberty utility York are and through of With into we The two

we tax, recently best timeline out of resolving the transaction stock and agreement. best determine is As expect related important special Liberty work close path utility extended confident continues to long-term the issues the franchise the on purchase in within forward to the that owner the this set to remain

looking the of gas better the serve our customers. RNG natural we of utilities, have to exploring to begun utilization Lastly, our future gas, or renewable

purchase be projects made includes Hampshire option supply to a in that Liberty the various development, already We New regulatory a agreement facility. for have in have of RNG the owner commercial of stages of ultimate filing for and approval the

million of we industry, most impressive are to In are of XXX focus. critical important resiliency. now the a excellence. lost reliability operational areas injury, on time highlight and community customers taking also safe and our the that over resiliency. to always keeping we approaches want pleased without single are days mission support Moving milestone X a safety and system I'm I system while hours and innovative and reliability safety our maintaining to some passed

storage end miles line sensitive back out a in project transmission line microgrid for for onto costs season, service resiliency. all during conductors on keeping lights By and miles Berkeley at take transmission boards. four our solar customers, in of Research four Sagehen Station the additional of than putting through service, Our wildfire line to the able environmentally territory. expected season, wildfire while transmission is to the the line covered at site, the non-wildfire in the transmission installing microgrid of when the lower CalPeco is is to are the a the In significantly we provide of

previously our As excited program. the to customer our mentioned, experience about new first we customers for digital are

Massachusetts gas team quarter, SAP the first completed systems of utility. major at and second successfully our the suite our new of implementation tools the During

platform good rest customer of will technology The strategy. of this rolling every the is enhanced next the We of be in approach heart at over a excellence the the phased organization operational out years. couple across

with continued into to interactions team action their our have our asking We about after customers bring by customer experience. focus

as customers. we on will to and service, action specific top our timely allow This rollout us promoter our exceed the This quarter, collect we score JD and customer’s continue of of net Power to expectations. measurements to existing have more look, started is and to drive from feedback meet, our focused

Turning side to business. the the renewable of

For term But the Maverick as completed blade Mills second work General quarter, and impacted at long Texas, the manufacturing returning agreement XX with was to in in operations wind Creek. power of Maverick purchase early turbines our June, Creek commercial the XXX a turbines affected XX which Kimberly facility There with and service. error, Clark. megawatt XX was reached a remediation all

JP construction project expected industrial company strong output, clean year from an for in Our All projects who Morgan to to Algonquin C&I the towards revenue contribute attractive key be drive helping in Solar, XX-megawatt XXX% a of relationships help approximately XX megawatts, also Facebook. renewable Algonquin service The reached located wind We be the in on sustainability approximately third C&I Oaks source years, of which have purchase is which an Chase in agreement recently the has with commercial agreeing Raymond with the XXX coming contains of downtime. has to an will is Morgan Altavista the to Chase them our and quarter, operating to wind brought these are the RWE. showcase quarter. due of JP acquisition in from The a own customers. acceleration of and customers growth demand positioned liquidated collaborating energy operations purchase facility the excited with energy our well XX% damage and commercial also commercial in with the purchase loss towards to generating to capacity We're second which West operation facility, commitment. a X Illinois, reached XX% agreement we protections Virginia, targets. previously favor in power their energy Shady facility agreed wind interest closed for advance

and capacity located close in wind reached the Sustainability higher a of priority And completed committed Raymond, inclusion capacity level progress strategy, goals. issues. XXXX With a XXXX the XXX not on and are XXX only megawatts environmental, have that we ESG now having of excellent sustainability, of corporate RWE social, to an generation, our West interest of we a the Last also day operations. important outline and our firmly our with our provided which around goals the interest South progress released owning of on year, our operating Report, XX% with in through day Algonquin we We megawatts, of net acquisition broader pleased values total nine two from Texas, in projects I'm finally, ownership our to in but of say course, our businesses. achieving net making detail four of megawatts. renewable milestone we governance remain and to

energy generation XXXX. our well renewable are by We way XX% achieving to on

of one sustainability Another targets. our

sustainability both and embedding our compensation metrics our annual into our also term leaders We year, long model. have to this for sustainability added compensation

set Another renewable XXXX megawatts sustainable goals of track of and added end achieving end we power our XXXX and capacity targets. key is of By to generation over XXXX out the report ESG to of QX, our between on remain the have in we megawatts renewable XXXX. generating add XXXX

detailed of information you our We a corporate transparency hub operational of new found and hub, and focused the ESG we further metrics, amongst that measures. data to evidence which other provides policy at data are that section our in be many data. to advancing I our sustainability our on report can stakeholders. launched take which is recently our the and breadth I’m a website, pleased progressing around on encourage ESG to governance, look increasing disclosures

within of distribution receive off including and it Our Corporate pay the second efforts ranking top speak our transmission continue results. external we financial our Knights’ With the and Corporate to Arthur? who Arthur power, to Citizens, over group XX quarter in sustainability inclusion to Best that, to part of continue XXXX recent into of XXXX pass validation, will companies. Algonquin I'll peer

I'm report with targets morning, results responsible for everyone. results quarter. QX track Thank that good record meeting the and good diversified pleased you, of ambitious Algonquin’s for made second financial resilient and to XXXX has underpinned Arun solid proven growth. to progress business and The financial its are model by but Algonquin

million The million is from adjusted current primarily over XX% same $XXX.X the year. year EBITDA in the XX, million, profit the second quarter we in year. $XXX.X Slide BELCO million quarter, Chilean which operating compares additional to improvement is our in Regulated our XXXX and ESSAL reported delivered to Turning consolidated utility. approximately attributable the was water Services which $XXX.X up quarter the from facility year in Group $XXX.X The previous to last contribution

lower fuel impacted negatively approximately from the the group Results results XXXX rates year, of energy new closed As this last profit as COVID-XX part out the divisional Uri both benefited from and impacts in $XX.X in material region over systems QX the due primarily contribution The that acquisitions expenses. QX to production operating service X note but comparative offset resource The portfolio. were year. should partially relating in resulting and facilities well renewable by increase resettlements at also to from of the greening group of wind the and addition central State experience $XX.X of Great that QX million as compares shortfalls in same of and wind electric is were did wind higher the last Bay due from million. Granite that facility. offset partially and across Creek by not placed of earlier. $X.X to million, by were from pandemic increased Sugar facilities spoke by costs This operating our Creek are quarter, the regulated fleet primarily also of solar storm the which to CalPeco Maverick period the any the reported Arun the as services initiative implemented quarter I is

associated with year, at benefit the XX% approximately mention approximately impact expected quarter the higher Income the than quarter, and related should corporate due Sustainable was and increased investment newly groups X% and to the expenses by over expenses production. equipment closed property, earnings I both at total, or long-term last late that of below and supported in facilities, the Excluding from QX from remained administrative last and lower provide XXXX. lower continues our over energy operating Interest generally the flat. XX% net to facilities Atlantica our acquisitions also tax added the year. depreciation production financing million per renewable infrastructure continued increasing is the In tax cash our credits Atlantica’s to in up which comparative profit, in Quarter was to dividends reported energy renewable $X.X share flows. benefited expense received adjusted renewable growth came the by in %X.XX average $X.XX, recognized. plant

to on to XXXX activities. and some capital financing Slide updates Moving our plan on provide XX,

Algonquin previously quarter, safety far deployed capital primarily relating deployment expected approximately of of year of the the electric XXXX approximately $X initiatives in brings billion capital reliability to billion $X.X and $X.X our capital gas deployed this our to water and total and initiatives the to During on so track system. pertaining the This to over and discussed billion.

our pleased credit I'm our on strengthening Moving the further commitment metrics. sheet in triple say flat to de-risking our we quarter plan financing to reinforcing progress made that to activity. financing B balance during five-year great and

The proceeds first from general. offering This strong Due knowledge, deploying $X.XX to market peers million row Standard Canadian the That sustainable equity our mandatory capital to gross total the are Algonquin this from in and green leadership the was support from $XXX which first Poor's. expected billion. equity receive granted commitment ongoing initiatives. the by represents offering and was & issuer XXX% were overallotment utility ever the done, underwriters credit bringing unit, transaction upsized several U.S. the the the To the and was first size to units our some deal in equity frequently Algonquin’s unit used exercise, Algonquin completed to by offering. a mandatory more the showcasing full also was indicated During quarter, a equity offering demand, of a the to mandatory unit to of option green

from attractive they credit lower potential the benefit price further Through immediately expanded of introduced could from find and pay equity in result in to period heard The conversion which natural As when issuance, accretive another when benefit our partly mentioned and business defer the cost is to our diversified but provide investor three-year after opportunities. about based can earn have issuer Algonquin’s a an securities we match S&P. growth fund terms what you from XXX% of appreciation, Investors an the it. and may enhanced tool the be on in units equity the common me capital and to received yield mandatory capital, overall shares equity. for compared past, until of we we issuance this share we future

funding I monetizing our of During as plans. us the that projects the of but $XXX our in to tax discipline year to positioned equity. renewable with U.S. have we common the needs have have ATM Algonquin’s use. In the and also execute to ATM equity energy company its our issuance continue allowing would for tax billion the associated program sheet from plan growth effective satisfied utilizes for and cost also preponderance the from total, of on view program, balance million we say raising investors, the over capital benefits $X in received Today, approximately common remain stock, opportunistic quarter, We

as of potential the we markets capital to opportunistic low the the a rest continue will hybrid For monitor source of environments. current into year, debt yield

XXXX on turn well continues targets. things guidance. over our financial update Algonquin Before to like I'd to Arun, we back to against a provide brief execute its XXXX

construction already of discussed, megawatts XXXX approximately delivered we our pipeline. have capacity XXXX generation new As renewable from

ESSAL. In addition, operations from from first to we continued of have the BELCO benefit to and year expect full

$X.XX to of the disruption storm XXXX continue $X.XX the Excluding be in of adjusted facility the per market net expect communicated Senate to to range on related share previously. to Uri we QX, impact as earnings wind within our the

and patterns averages. to facilities expectation, assume are in continue availability We generation that our our normalized as well earnings renewable production term as weather within at resource long

occur that will New also closing the water within of fourth the We XXXX. of American York quarter assume sometime

billion further delay per in the five-year also capital expected this Although track. roadmaps. I is a our outline on it five-year year, that hand deployed to share our our reiterate we to meeting capital $X.X to earnings $X billion already materially XXXX of estimates. plan impact now that, Having our are want remains Arun on well back I'll to itself closing With net not way of over target. to adjusted our

Thanks, Arthur.

prepared Before morning, our comments an to strategic give our we I on want close initiatives. this update

further, ages. X, we As we looked in acquire August at took business to simplifying by exercising Abengoa’s on interest our simplification towards option the a step

Development. projects. interest Given associated strategy non-regulated as retaining pipeline Liberty markets. on of focused to funds XXX% be remain the Development Algonquin’s of Algonquin is acquired advancing international by the right to Liberty change will ages and North power LLC, entities in America managed we by with Management development infrastructure acquire referring Abengoa’s to Liberty selected Ares in Development the and ownership, be will expected and

remain development. XXXX identified anticipate most of our about until projects under that projects now Ares will entire of plan commercial which spoke up five-year $X.X in has advanced that billion, operations. operation, through Investor $X.X in in stages we At with XXXX, We billion construction, Day, from the make also involved or them investment

Altavista the side, Creek, also totaling billion side, commercial were projects, last Let in the Maverick three regulatory Creek, our have on renewable following update. Midwest on wind the since me while investments provide latest The completed. projects November. reached operations $X.X Sugar

to Blue XX Cuba construction Saskatchewan in project megawatt site, progress well, deliveries our what with and On wind in turbine XXX continue the flight. in megawatts Val-Eo Hill project wind

that the ongoing portfolio. earlier, an development execution also site, had discussed signed Chase, well JP with as Oaks progressing PGM I also X commenced projects are We Shady of and on demonstrating solar project our in agreement two Morgan construction the new have May. our were which projects, We capacity included project investor Solar at Market In at megawatts the completed two XXX we acquisition the additions the May. have incremental quarter first expected XXX an New megawatts having begun these Ohio of of solar construction first of combined day. XXXX, in with

contracts commodity recently executed contracts if which prices, procurement recently, help risk. both that returns by to pricing similar impact Ridge of renewable generating projects. to Deerfield on as and pricing I to and offtake walking X may commodity will Conversely, seen recent likely construction the also costs. project We group The close possible. in contemporaneously in X our offset increases any trends inflation offtake energy impact equipment for note as Sandy increased and wind result mitigate in equipment, project higher have seeks

megawatt continue Investor we at to Day. We invest in the Greenfield discussed XXXX pipeline that

our above Greenfield over billion capital and is plan. As pipeline this a investment $X.X reminder,

These comprising the are well, are securing initial decisions for year advance investments achieve XXXX megawatts. the on Our new continue megawatt project to Greenfield on focused continuing to pipeline. and projects in Greenfield projects opportunities final the we included investment progress XXXX track by and the projects Chevron are end. to The

year, in even but Algonquin’s society more to replenish projects and of the how from proud advanced is the carbon more what past, $X.X the being included Greenfield discussed I'm minimize As to five-year the about far renewables With regulated excited plan. billion and this benefit this capital to for in ahead. emissions, all working I'm hard and built we've accomplished transition. our company is so lies businesses to economy contribute decarbonizing excited positioned pipeline

about our which productive largest service. so continue has of in and XXXX as program construction deliver further and and company's our throughout execute placed businesses multiple on to We already megawatts execute that two deliver ability in megawatts gives history, growth of to plan. approximately year me levers five-year the far summary, In call, confidence its XXXX our in across I’ve we have today's spoken growth the investment with XXXX very a on been

expected these energy size company's the context, we renewable that portfolio the and own projects are double For new approximately facilities to generation of operate. of

three and operator and operational will excellence, value. for on shareholder those deliver the I be key sustainability With any of growth, questions line. pillars to the earnings dividend growth, turn strive Our the business, to and the from call as that, we foundation over strategic build steady really will continue long-term to a

Instructions] first question from Thank of Sean TD you. comes the [Operator And your Steuart, line Securities.

Good all and detailed Empire thickness, of equity rejected you. ROE A and Thank request morning, couple what similar last to the looks commentary. for respect that rate was thanks the to XX% with XX% questions, year year. Can you that give last might thoughts reasonable over us changed request give to things is and confidence some What gives this you on that you the this the have time? how confidence?

question. Sure. Good that and thanks for morning,

that for of We very rate filed case. just early. recently first all, look, still So, it's

on continue right we said we to prior confident calls, equity our believe we will around in and we've outcome equity thickness. the in be As thickness, position get

Can the the Okay. $XX you to securitization costs to that there? the event. us And how could get through process and tied that, of to further the evolve weather million that walk

the mechanism. know do that we plan Sure, you avail recently legislature securitization to legislation approves extraordinary costs. passed as has And Sean, such of of that

We looking are starting at the around process that. internal

million increase Just the the of you case from rate rate that XXXX. million in outside which $XX increase look more as is CAGR, at that, X.X% approximately a Uri. $XX it our from reminder, storm of of range, increase, last the X% when translates the into And is in

funding company. you a to focused the sales ambitions for longer-term to question for last growth source fund see one here. thoughts seem updated thoughts Arthur, then asset capital on the and recycling very Okay, developments? stage obviously for potential maybe as guys on But broader earlier growth on any updated Any

as that agenda tell recycling early absolutely capital the to an at capital we announced we say we're seven Arthur will option. us. Day, at recycling Investor is back I So, continue on from in onwards. days, I before that about still answer, to Still for is but something always point you now look that six, When months

I don't Sean. nothing It's the it. really concrete we radar, talk this to look It's picture. anything at to have add about on

back Okay, much, get I'll thanks very guys. queue. in the

line National Bank. And Rupert the next comes question your Merer from of with

Morning, everyone.

Rupert. morning, Good

rate you and So, here? case getting the accounting a of And filed. the you piece to rate the with filed cases that the back of smoothing sense maybe a move seeking with additional off Can mechanisms give Empire? of timing you us you are any hearings

Sure, further for it case let Johnny but details. rate so turn me late filed a just May, we to

later be a on year. Yes, not and so way increase. decision will the to year. of through any the next will of terms expecting of hearing in this settled the I And until towards best We're with implement commission think we QX stakeholders back work end,

certainly other we're open for a way works So, in to that practice. rates smoothing

Great completed fleet in right. thanks. Missouri. initiative you've the And Arun, the Greening, All

looking political soon at look asset investments Is X at, more CalPeco. to for fleet more you base? how say your like greening here, support at the new in phase their regulated come Missouri? many across this it You’re before Is could investments doing

believe existing in we the we are proud across We pretty area. this we're fleet. look entrepreneurs it know you of and We that again, so, our fact Rupert, much at

as that water, us BELCO, there's at which that per option. of paying that as fact, kilowatt acquired ability and into goes for fact we the of In with water a island lot hour. And Even an and of an lot on as the look is generation, $X.XX case, utilities, that economy, of it there's moving well we over energy much our that when a pretty believe in the it even bring fleet attractions to a one was well. strongly we thermal was all customers in

be existing pretty look portfolio it with our look new. well. Possibilities we'll instance, anything So that's whether we much something every at at as or in

initiatives more you long for think could before greening see some at example? how we CalPeco So and fleet like

Stay tuned, obviously to know excited Rupert. We're soon everybody we able it. to as announce as are let

it I'll leave Okay, Thank there. you.

Rupert. Thanks

question line Nelson And next your the comes Ng. of from

Thanks, everyone.

of greening plan, finished just gone months. your hump up you've greening picture, in that you of kind I'm first now Rupert's that follow over of about you now have first year Just to on your five finished like the spending the third question, bigger or that capital plan capital on six Empire. wondering, a phase

I assets? a utility to opportunity buy see like, look significant you assets do you buy that that's coal, would question you do? to something the coal Is had would would has like, if that you you you some guess an it? opportunity the where with Like similar Empire, If is, to

a speculative Look, it's question.

And so, right. similar I'll answer way, in a

of when among ourselves And dollar never And infrastructure. years repeat in the Nelson, So, look I world the good therefore our and first of stewards very ESG of right. at we've existence, time, added I the that's all, among at XX industries. per attractive we you of stock mean, a develop have our like in to X.XXXX we at to carbon of this fact, very our same are lowest-lowest revenue, our history, intensity peers, profile.

the Midwest of numbers years. reduction XX% so, in in greening you we intensity And carbon three CalPeco some around carbon three gave just reduction years, of XX% intensity in with a just in

it's business, renewable and the of renewable energy profile the for the on shareholders the for a greening do world I think, on assets the side what believe side on besides our good our large. energy a of our world in similar regulatory of is I at at investing and fleet, which customers the our customers, large, terms and shareholders good in think we I

the are hard will of that. our take we there fleet if initiatives, greening a kinds where So, we look opportunities utilize at similar can

through just a Okay, thanks. big in rate picture like And for terms at go there, of CalPeco? big the That's moving run utilities. roughly big. increase some just driving $XX falling, increase in haven't kind of what's you increase items to the to through rate over it, Could that the a seems not gotten That's terms clear. then I CalPeco case but of chance million

picture and Let me big give turn to Johnny. I'll the it over

So, the vast majority really of mitigation. increase associated is with that wildfire

in something we you As in geography, to customers obviously make reserve communities important. want that keep We our and extremely Johnny? sure safe. know, that's California

that service the it's I ongoing increase. in time. tree our risk Yeah, lines activities out the impacts in or trimming, of really we're future of take sort monitoring able reduce that that we with the And the investments and wildfire have of of driven increasing is the I risk periods is, at what to think mean, area short our high it's to are so making costs story our

California one note, in similar this to point been in terms increase, frame the their you what important that if lowest of driven have filing to really utilities activity. the the of with, would time sort them were cost by be the increases, other have California. rate rates look majority the increases, maybe approved, of had think XX% of despite still XX% even fully I significant it And in if actually, at

step evolving customers. no for we're billing the it And has focused in There's driven So, big been on a our this always up. by is California. really, path very But the landscape doubt.

are And – to making just What capital on operating follow like, lot costs? a investments? increase Is the was that mostly service up you roughly? of it a Or higher is mix that,

XX-XX. roughly It's

fusing expenses it well modernizing of semiconductor, terms so, switching technology, covered. of as very that operating are is going And significant putting some in, in our investment cost as in and the

these So, are roughly XX-XX.

back Okay, the queue. thanks. I'll get in

Nelson. Thanks

with the next Greenwald line from of Bank And your of Ryan America. question comes

morning, Good everyone.

Good morning, Ryan.

ahead Appreciate of morning. opportunities at just coal transition, M&A of landscape reports kind on assessment independent broadly, here? bit week, the earlier comment Good the commentary CapEx potential can the regulated this media but overall your on given the more end update a and year you of your earlier

Sure.

significantly landscape the So opportunities XXXX has it there, just or that for versus as regulated of well knows look M&A XXXX, now, you out at everybody number in when short. example,

of number find that But So, on. only the we've announced. already fewer there, consolidation we just with five-year include been water New you going in plan, $X.X if look utilities billion that And at acquisitions you'll there. some York a are of out our American has

any depend future shareholder do at and value. said Our more a to on another growth $X.X lever, plan as lever acquisitions. growth that, further But that billion we possible having not even look does enhance our provide

the really that's context. So,

inflationary Any pipeline? Great, given to the way hesitation go broader development on the projects that. about pressures, the chain And the supply of returns? having around in given think thank pressure for concern you this then any impact potential and you some through with

has the deploy close construction contract, far, increases try side the increase together the And terms price chain And So and not ledger. of little so optic strategies that, taking is been also, Ryan. offset the have seeing light. the on we contract there's what of by of finalize supply some is the the as on optic seen supply residual increases we very as to one that possible again, we of in contracts, commodity the are risk the we're and that

other our Greenfield we always delaying a such have continue so happen. and of we but So, far projects, does such accelerate pipeline to if anything options the contingency

leave I'll there. Thanks Great. for it the time.

Thanks, Ryan.

Hope line question of Rob your And next Scotia Bank. comes with from

Morning.

the on just XXXX you reiterated. is question outlook that EPS First

As that puts we're the is can it you the the some the strong or taxes of side? originally year, And generation offsetting takes? like renewable pretty halfway been we’re have kind kind far. tailwind of that in through and anticipated about looks seeing of talk so weakness Was

here. morning, Good Yeah. Rob. It's Arthur

can sure, So I speak to that.

things. the our several commentary, terms in terms mean, XX are in of reiterating the we of like guidance, of and setting well, factored mentioned in I So we between I the prepared when guidance that And year, rest XX. for my in outlook

thankfully, see. of we being impacts things which COVID, of actually didn't obviously One the

us that room. So providing a of bit little is

have bit well. we did On the throughout the obviously little mean, I as a flip milder year side, of weather,

extent So offsetting. are those two things some

portion Now little I'll credits, function yes, it's where credits, more of to And or further. tax unplanned explain they're around recorded. we're a second not maybe the bit of and question your tax I of geography would a but say,

we As there. commissioning Creek the of the blade in you're had Maverick and delays issues due final the aware, to Sugar

essence, tax final equity it into investment projects. So, what the that basically by those is, did delayed in

seen equity turbines have obviously going here, through take that from generated tax were that those opportunity the those HLTV. self-monetize invested, the that credits Versus normally, So credits and operating, seen year had what we is were would the for we we to them. have would

line. maybe the the but that bit seen more you tax line, been overall, it you're a in little case, versus wasn't of seeing would bit So, washes EBITDA a the more the little kind if in results. in have Otherwise,

your question us just walk there? to Thank you. some not not, kind look through maybe whether taking a could Ares That's guess future or of table the partnerships partnership bring Ares does what then And on color. you up and of Can ages, I there. just as XXX% thinking great what well as of the follow

having it partner new a to find challenges on we to restructuring, felt you as XX% give given our with timely context, So, Rob, of ages. you us for And just was know were all they was Abengoa the partner. that

quite how we of believe know one in largest as so, well. the the XX XXXX, they And of wind and exercised and constructive and for business construction provide sector, option bit Ares does have example, They that are have financers. this companies we in a experience also in were the

as that's is. development to financing believe the capability we they the And and activities. fill and finance as well So, our where that that the construction bring both construction develop expertise to

you. Thank

Thanks Rob.

question next comes with Pham your line of the from BMO. And Ben

comment you just can more else targeting? diversification, assets, Hey and would earlier M&A. Kentucky focused to thanks. more on a you follow-up geographic the you're Could synergies, now as into specifically, your anything questions. to on share? questions couple your utility And or listening Good with fit size, preferences of most that these then And morning. Got broadly that criteria overall answers

lot a questions in Ben, of there. Sure.

let me walk try to those questions. So through Right.

pretty it's clear. first other And So, we don't than North again, North America. of I say all is mean, geographies America. never

is Chile but a for point was Right. large, and So, in example, geography case North the America. by

one water modalities, are We companies the are few that across electric, and of all gas. three

gas very on renewable on side, gas very, with now, more extremely bullish fit we into our They the Right well deploying our and are water. ESG facilities. focused natural profile. are We on electric much

And filed are participate on modality. for out Green in we pipeline that our number have at on a we projects lot the following in looking we're hydrogen, are focus looking pilot study. New hydrogen, Brunswick, the in first there New example, more. a other we're gas We maritime Hampshire, And one of Green a a that's at also of

So, but common we specific used are never transactions, that. a on specific at and too have probably policy transactions

accretion Okay, and date? then want on accretion, the you

have to strategic has clearly, do look all look, these it I Absolutely. we of And transacting around to upon end transactions end own. absolutely on doing But from are -- financial? don't we we a on. And obviously at look we not -- at perspective, lot disciplined fit not up transactions We a transactions we the metrics. objectives. strategy up more stand And based those. different make their of On do we mean, strategy. extremely than our many

absolutely metrics. extremely around financial disciplined So, the

here, think your side, you and the it impacting and the Okay, how your than that sense the hybrids [ph] funding sheet plan? mentioned convert funding it we balance month on make you own one second every would about offers UCDF execute then like, larger to is, something their made Medicare

we from sheet, one sheet -- of of fallen tools itself I a look, we've of able I balance from behind in that as said say I kind maintain mean, To call kind prepared generally strength, be position brings some thing mean, what sources to to I I -- the in in of but extent, to perspective, where strong it. remarks. a Lots balance us think would We terms speculating source of any around funding my our capital. shed, never Yeah, our strength. that on always

great. Okay, Thank you. that's

question line CIBC. Mark the of And comes from next Jarvi your with

Thanks, everyone. morning good

EPS wanted about sense. accretion, the for day XXX% Was clarify EPS accretion to one? question, response be has on a different Ben's of to look one top thing the talked Wasn't the clear list? financial on making metrics we you'd to Just at, sort deal

most our Mark. fundamental we'll We accretion look at that’s EPS our look Absolutely, and metric probably Absolutely. most important CalPecoat.

that. also lots wildfire be the of any that terms at liabilities auction And been de seen or Can by in Thanks you've so action? in energized any we've of far, UI lines just might Perfect. faced center or potential for unscathed year. update reports welfare then And earnings hit CalPeco. of you this California

Sure.

that earlier, I one. talked report think, about Mountain wildfire, the on and we investigation View did we So, continues Mark, the

faced much a is is comparison, which wildfire, recently the wildfire, Tamarack also contained. largely one in another that one smaller We

for rate our yet, at because our out continue was believe all of mitigating short did of just lot behind few terms bringing see what impressive And need places, even a in recent very, background is of bringing were do to looking that extremely for so the an the of even And we most a context a in customers a really in time, is employees wildfire is back terms seeking and of rate case, to aspects. we wildfire. reliability mitigation do case our there in to are We context online employees generators amazing very job, we're to a filed. customers. what and Because in And new invest important. all that able behind

Okay, forward? financial in you just some and explain still some can statements, own on investments Maybe investments Ares through then or from Mary's more commitments of Arthur, simplification. just in the one the any your partnership in there thing, And all terms fall on of SPVs capital that involved is going will any stuff?

status essence, basically venture. to through extent terms will quo maybe going [indiscernible] the how being as of that in flow statements. how in you see still a it, financial for joint accounted It's currently see simplest the So, answer is, the you it's

Okay, thanks a lot.

Capital question with your comes of Market. Baydoun line next from And IA Naji

of start us want some have contract just what's with the I with renewable just morning. the projects other Oaks, of good Ohio Morgan. you the remind coming pipeline? So Shady Can are in hopper. projects contracted? the JP solar that about Hi, or projects the already the to What you down

ahead. go Yeah,

contracted. the Oaks do that terms under is absolutely you're Morgan, are right Arun. portfolio active projects new Yeah. the with that. also of in that Happy all Thank And you, And to contracted. the do with market, JP we uptake construction have Shady

the -- contracted what's bank are development, still from are other be in to guess those? projects cognitive those I left Okay, that

Sandy advanced contract not which contracted Yeah, the two is X, on to is got we've we've development, yet. -- the have active Ridge contracting, which we're got an the and an which but discussion Deerfield signed

Okay, just the okay. on – Got That's good. And larger it.

happens really notice contracting we for offtake towards I has to proceed. Just very before what internally end the context, say mean, the

contract, -- try contract proceed. the when offtake sure make we we comes and together. go we notice where construction that's the to that's contract, So, And supply to

really cycle. it the usually, So, happens of towards development the end

agree, very on intentional and part. fully I our And that's

of hit and So, offtake. decided in the the terms and [Indiscernible] earlier reason alignment

project, the is both system and Understood. on on? Luning And you're together working the the solar that this just storage

megawatt It's That is a plus correct. a XXX hour storage battery solar correct. system. That's

I side utility is first non-regulated maybe how house? also storage, regulated of your within Okay, thoughts you're how to you storage. within the wondering the thinking broadly are project I but just about about but the just the want on, business, maybe guess the both This get portfolio, thinking

our to solar the project. on XX on what storage a around ability see under the is York Look, have and the prices energy the in the renewable first side storage on worth construction, And of if of plus energy perhaps, already project on State solar megawatts regulatory look shape it project is the makes business, outflows, business we Actually, on of New side capacity that wind at given and sense. to every we battery storage storage.

the already. so, And it's very equation part much of

Okay.

So sounds it on opportunities maybe there's like to on both add sides?

the you it. in XX these regulated Absolutely. about plus operating a reason the lot And of in know-how side We telling already on have again, I we're deeply the experience is was systems. and storage battery megawatt already

stories we another will look to So, yet technology area as growth. continue of at absolutely

very That’s Understood. helpful.

sense had side versus if to have last more project, would storage you guess, Maybe what the on non-regulated? you I think regulated how the about you it you choose it within by the to make on meant and not? Just utilities you or is, for question today And risk a else does the that returns?

it's somewhat we're and is large there's a on side the average renewable on two but weighted the of life believe contracts, still, business some side of enough But us going is opportunities different remainder the for renewable is side reward much, the our all other. on term largely contracted capital fact the on storage mean, we years. long risk sides, on of And of not or regulator to one that the difference. that I But to the look risk our board, put XX the even profile given say, business. that lot of with there

you. Okay, got Thank it.

Naji. Thanks,

Quezada final comes Raymond David your of James. from line And with question

everyone. morning, Thanks,

me. in gas natural for a your renewable one mentioned quick you one little Just Arun, comments. bit

maybe if proposed you you the timing can guess, provide And at and the footprint? color could I wondering tax the that quantum there's look opportunity/ been, around that any given that of credit of the outside Just has regulated

well. regulated outside looking it already we David, are footprint Absolutely. at our as

a our flows maximum, gas renewable guys for XX% it actually all at that development pipeline believe have the natural gas is of our We its utilities looking approximately We that through of at substitute every across could that gas. magic system. one of leasing

So, it's is pretty obviously The attractive perspective. from pricing working that something on. we're

sure we're it that bills. of very trying is customer to One focused doesn't the make impact things on,

higher looking the renewable base higher, different enough the types when that days the prices of pay out a of structures. were for to energy, It willing were there we're is pay of that but So, as there prices gas decade customer enough to initial me reminds sustainability natural base of ago of at gain were higher similar for renewable pattern there's where gas. renewable commercial and think, customer willing we a see renewable energy. And industrial I on the the natural prices side well, a our on

of in of down climate Now, stuff action a in bringing and even the lot on terms further. Biden is administration going help that the that bill clock should with

and at that have So, we're pipeline absolutely fairly a development analogy. looking robust

you Thank color. great That's very much.

David, Okay, the thank you taking call very you our today. thank time for much. everyone, And on

disclaimer. line So, our the with for that, please stay on

everyone. Thanks

and this projects. but in This certain on on uncertainties materially or results information. could website, most our historical of our capital and recent MD&A expenditures based during completion limited by to the and differ expectations cause results information, to timing certain that including and is actual information available not contains call forward-looking from and forward-looking described risks including and to regarding those discussion earnings, for results EDGAR filed forward-looking is on anticipated Our assumptions, our SEDAR size subject

is during Forward-looking assurance of projections, date. material the There you obligation should such information, reliance information this speaks information as information, information. opinions no forward-looking subsequent forward-looking assumptions as And on it or be to call events update accurate. not between and except based We this on can plans, beliefs, of forward-looking to and as provided of estimates, of forward-looking to expectations, any of will any law. the any today's only disclaim actual management and call undue applicable prove required explain place be date by difference

calculating therefore about share financial EPS, not non-GAAP available adjusted course in both refer to to on reconciliation used net that and concludes CADA profit. to SEDAR the most from this they measures, be call. MD&A In website. measures. corresponding EBITDA, information referred by on companies or to and to and Or of GAAP and standardized earnings, is AQN’s looking measure for measures adjusted of more may recent our similar net including by United not please consequently, earnings non-GAAP limited adjusted differ but measures measures, method divisional the certain comparable operations and the presented we addition, during call, of our for have measures, the or companies. conference filed non-GAAP including And may EDGAR States, a such other operating other non-GAAP these no financial measures information funds per from adjusted financial And methods adjusted may There of

now. for right this call. today's And you concludes conference your participation Thank

all now disconnect. may You