Duke Energy (DUK) 10 Aug 202020 Q2 Earnings call transcript

Ladies and gentlemen, good day and welcome to the Duke Energy's Second Quarter Earnings Call. Today's call is being recorded.

At this time, I would like to turn the conference over to Bryan Buckler, Vice President of Investor Relations. Please go ahead, sir.

Thank you, Abby. welcome business Energy's update. and earnings quarter everyone, and review morning, to second Duke XXXX Good Young, and Leading Chair, Executive Steve President call and Vice our today Chief Officer; is along CFO. Lynn Good, Executive President with Today's and meaning information measures non-GAAP forward-looking include discussion securities within laws. the will the of financial use of the herein materially Duke Energy's in differ could statements results disclosed such forward-looking and filings. and those Actual from factors are outlined SEC

note and the financial non-GAAP can found on measures includes duke-energy.com. materials information Please for A additional reconciliation of supplemental appendix in be presentation today's disclosures. today's and

summarized will Lynn the XXXX on slide update share our of then well As financial financial on provide our insights Steve X, the company's during an overview long-term as call, on quarter cases as will second today's strategy results and results. rate and outlook. an investment

also outlook growth key We and into closing and considerations. long-term insights will economic with projections before investor our load offer earnings

let to over me turn call With that, the Lynn.

morning, The stronger Today, less announced expected. our originally load is Bryan, some than thank the projections $X.XX everyone. states with which the and our quarter we reopening during per of in you, anticipated COVID. adjusted including share favorable usage internal quarter to significant for of decline good residential was and earnings than

remain, and a of X% a that ahead virus, Looking recognizing impact our the in full-year projection to volumes. including of we're retail potential the uncertainties resurgence decline maintaining in the X%

recovery pace the economic monitoring and know closely of progresses. also the are more we'll We as year

structure years. I'm the the track I'm year. proud progress team We of of mitigating expense. many work our in demonstrated But cost in our this made record very proud of operations maintenance and particularly managing great over

major over balance in $XXX on savings efforts portion and remaining we million, savings and storms deliver of a track to to of We weather, those the the of impact reduce significant $XXX have mild The pandemic. to reflects XXXX winter the launched quarter by costs matching the and million XXXX. identified are

of $X.XX. We reaffirming our aggressive the of from to through began ACP. the to and $X.XX are navigate absorb the approach to financial and positioned to in guidance XXXX in which steadfast loss commitment uncertainties shareholders COVID Through to earnings of early are we year, mitigation, remain cancellation range our of full-year the cost

will the strong our a lower Steve position As discuss moment, results, XXXX year-to-date with in the guidance of deliver to along range. in half the us July,

us our earnings third again The our is and most expectations quarter quarter, still of will third significant during update one, ahead we call.

and cancellation And in ACP Let me due of on the of the to threatened announced July, economic ongoing uncertainty briefly also which XXXX. we project. touch the delays increasing viability cost

other but of interest this cancel We moment. Carolina plans pursuing Eastern are and our is North believe we in infrastructure customers, are disappointed in decision actively shareholders touch support outcome, to to I as the a will our in and the best on

to There's XXXX. lot we be excited head a about into as

We and the will in future and year electric allocation with our regulated earnings of our gas XX% capital utilities. enter

a with the investors serve X%. annual and of base low-risk plan rate some transparent, growth most attractive the in provide of country Our jurisdictions utilities capital our and

XXXX long in We will will to steadfastly Steve our share a remain businesses. will to regulated us use every to jurisdictional on delivering with earnings growth over maximize outlook. of tool for shareholders moment focused X% XXXX available regarding the more our and you grounded X% in term,

unrest the to our activity update recent talk regulatory Before to communities. COVID about that our wanted and strategy, and social on I ongoing gripped has an response I a investment share

In for our create short shifted operations created possible, and are processes required our to employees. customers new solutions adapted six event We we've months remote has nearly the into new that order, an workplaces, where to unprecedented for pandemic, our paramount. result restored communities the and XXX,XXX of customer interactions as We've service our and and maintained the reliable also and Florida more, and Carolinas while across of for quickly health hurricane. employees outages recent safety keeping customers us the

Our this I and to our so response. employees of extraordinary proud challenges continue pandemic, workforce's the am associated to with rise

of It in they our pandemic, and, its And ignited have of and that challenged nation more aftermath. surrounding has a the A front been the Floyd much the be. national are and the George demands social been and equity Issues deserves center, racial action. midst company than by movement debate. killing indeed, as justice should

determined be toward We diverse to successful. me values. talent we these skills fair, work customers having to remind innovate believe Times backgrounds, need us is like responsible that experiences to and and our practical and attract better, deeply of the company company's allows Our of our solutions. importance serve the

more than on inclusion. a in relying values workplace and cultivate we these to diversity Now are rooted ever,

with As to justice, of live for ensure up equal for we power customers, the our lives and will communities also we provided stand change, continue where we opportunities. and advocate work are the

active In issued that slide been the the base our rate in for Indiana the stakeholders past our order can are a June, months solutions in constructive balanced Regulatory late investment over our to Midwest. strategy X, we've for space Utility you customers. Turning reach few the case, see engaging and supporting long-term regulatory to Commission

to with a first the steps, effective, increase implemented rate in be filed XXXX. of and carrying base X.X% capital in average on a $XXX we for test approval requested ROE X, and already X.X% one rate last filed based rates case two two increase. step year, years. will implemented will a which be costs As commission trued structure XXXX, of modernized you rates increase, equity. July, received or forward DEI million step in XX ordered the is QX January will and case recall, with We XX% rate overall The an then our marking The up

of pleased the the costs historic Edwardsport with on in base also inclusion return and on were ash recovery decisions We plant coal the full and rate. of IGCC

future for the with filed fleet, IRP our coal a transition lives a shortened and key cleaner consistent our depreciable we in approved in commission the step Importantly, energy XXXX. to

Shifting places include customers of staff with parties with a cases. Carolina, ROE our and treatment company grid from $X.X partial the and include settlement a to the stakeholder agreement illustrating from component focus in community of deferral along most group engagement. to XXXX large our we public return XX% DEP DEC X.X% recently, approximately the and, groups reached The on on broad improvements structure, to North Key equity settling and staff, recently constructive both public billion the rate in terms of capital XXXX. intervenors a

XX. XX. time to for by hearings in service inputs set and data update review increase delay the sufficient the requirement hearing Commission The Utilities capital will the by million. other Carolina settlement to annual provide or changes to are parties through terms with request approximately These North approval the on subject requirement revenue August May begin $XX and revenue The

out interim on We and utilizing DEC like rate updates regulatory other forward to both while financial was the North income changes our a regulatory our and taxes temporary I'd DEP. point investments. effective our look requested investments more maintain avoiding protect the customers filing for team proceedings North lastly, strength originally consistent months for excess to to in rate to to make of rates innovative approach These our these to deferred by interim made period. and come. we this This designed ability the with possible earn sharing rate by flow-back dates, are implement And our during cases on we ensures as Carolina change Carolina

expand five-year energy, our the a turning XXXX. and is well capital to and grid, robust plan, modernize to clear slides X strengthen of Energy's billion X, energy for generate past communities $XX tremendous Duke Now, across infrastructure but and smart by provides cleaner opportunities line deployment our also footprint strategy to energy sight capital underpinned

in Our grid Carolinas. and to continue infrastructure support and Eastern emerging additional in Piedmont investment and is we Natural growth, needs solar the and the renewable process capital Gas capital planning financial North infrastructure ongoing Carolina, Florida and to expansion, ample for investments see upgrades opportunities, economic and including underway, system

XX% in our September. as IRP, In to outline finalizing which in carbon Resource Integrated will the governor's on we work North we file comprehensive IRP early our achieving also Carolinas, well achieve as the goals the carbon potential We're and the which engagement affordability Carolina reduction achieve stakeholder to process, forward balancing targets, will IRP, while work reduction Plan for the identify order our This executive best the alternatives a a XXXX. by follows customers. to paths reliability filing to reduction also

by a clean We are will the IRP as state we complementary, and for decade. filing investment also North foundational the see focusing this in next energy engaged over stakeholder our a establishing engagement of on serve plan they believe elements future. process separate Carolina We our and in planning led as the

investments future in Duke with more replacement Retirement transition underpin side energy delivery year the plants to and in storage, of will and you forward progresses. investment look and and investment generation efficiency with energy customers coupled a demand to as coal sharing the cleaner shareholders. for energy We plan management, battery the state's Energy's system,

investment other not line base gives the Carolinas as an well of XXXX, into rate of only rate extensive This growth but states our deliver through runway to opportunities next in to sight X%, confidence of our as us on the decade. long-term

shareholders we're I innovate where Duke creating alike. again, value very and on Energy we and positioned. well deliver, Time adapt, and As and customers headed, XXXX reflect is for

long-term more are inaugural us around strategy looking X and IRP to a on the future As smarter you'll filing, it future governance. social Analyst executing advancing we continue I specifics learn ESG our and our for about October to to plans, of communities. issues, Day to we (XX:XX:XX) the long-term join respond Carolinas on the environment, hope for our pandemic, our and energy

and portfolio the strong appendix, information Day. These look progress to further our are more topics, and transitioning we XX ESG included on illustrate discussions our resources, at with carbon-free you important the We've XX generation which in forward renewables. slides to including on

that, the With to let turn Steve. call over me

few begin and good morning, our Lynn, the highlighting a results I'll everyone. a quarterly of of prior summary with key the year. variances to Thanks,

a accompany on supporting results, For refer to presentation. reconciliation please earnings today's release that press the to and detailed information more and reported adjusted of drivers materials

of slide to period per of a write-off The of per and X, This adjusted second quarter share. to Coast loss on and Pipeline. and current of the reported earnings Atlantic adjusted difference due in year. last the per share is $X.XX share earnings $X.XX shown cancellation is the reported $X.XX earnings between adjusted we As and the reported compared

the Within $X.XX driver normal Weather in to favorable was Electric was given Infrastructure this and closer year prior $X.XX the Utilities the down primary segments, quarter-over-quarter. it and was year.

had grow asset higher territories and base. electric were continue our And due expense our amortization of pandemic. down across as depreciation as volumes service also each expected, the to we We to

cost offset increases Florida, rider South base significant mitigation, in However, Midwest. were by higher rate and in and these revenues headwinds the Carolina

$X.XX were rates in mitigation. as by driven results Infrastructure cost higher Our new and as Gas well Utilities North Carolina retail

LDC XXXX. gas results, continue primarily to was brought increase also this growth up from in in was online projects benefits The Our Commercial The due quarter. businesses new to segment outstanding produce contributing $X.XX $X.XX. Renewables

expense for benefit non-qualified Finally, in returns Other $X.XX principally was plans. lower the due and up higher investment to income quarter, tax

are the across our the positioned entire very guidance loss quarter. Overall, and XXXX the on the we $X.XX deliver action the half to results to and swift earnings weather We of enterprise took of has COVID-XX ACP. lower of well pleased dedication year-to-date mitigate results, the us despite with range in of impacts earnings in from this

Carolina, base As rates year, continuing Florida investments. multiyear from plan we solid growth the the of and in our in we drivers earnings well North new XXXX second over about expect Piedmont rate Indiana, as SoBRA and as benefits half from Kentucky, think

quarter impressive on Our cost build year. will the we the efforts momentum created have during mitigation remainder in of the that

see expectations. performance, trend favorable warm pleased plan. also our in to strong post-COVID results to to and coming July volumes We a favorable with continued are had operational We sales July very our month to

well We of as lower partially as factors. earnings expect lower $X.XX to growth retail offset ACP electric these volumes

continue down for of Moving quarter. to few decline to the we favorable expectations watch. volumes slide this retail a X%, that a original quarter XX, second were trends was There our our to electric post-COVID while X% compared were favorable

strength of original our the areas across First, excess in service in we residential have experienced our sector expectations.

a Adding commercial to were our particularly X% with our July, X% up X.X% were well compared addition, In in July volumes July by industrial data Residential largest also to COVID-updated volumes compared nearly our three-fourths resuming points, operations. to XXXX approximately ago. are strong forecast. C&I weather-normal and favorable reasonably these recovering of customers to volumes year

look the ahead, are territories our of we pace we and adjust as we learn recovery the our economic As each still service we'll across expectations watching more. of

X% to continue year to for of earnings to with $X.XX. decline full retail Our be the volume a headwinds expectations X% $X.XX of

monitor. results one we been closely clearly dynamic While our and have situation will recent this is favorable, a

the to a strong our each electric X.X% customers. customer customers new of jurisdictions. we've see increase in In across and the pandemic, growth distribution we gas in continue seen of X.X% midst Year-to-date, growth

areas, into existing not multiple and organic corporations attractive movement current facilities investment, the facilities seek territories. locate They've expanding with to committed decisions out challenges we our Beyond our also continue proactively capital within Even in economic communities. service support and they've expand announced development. but only have to service or to uncertainties, committed significant our economic jobs new

– a Carolina's next For headquarters largest North and to Centene, and in XX East new invest example, over This regional one approximately X,XXX economic announced technology $X Charlotte billion years. marks Fortune with longest in projects a XX Coast history. of company, jobs the development create the center plans

our to will continue of be believe load the growth Energy's we service in Duke more we desirables into the some migration industry. territories, As fundamentals population long-term strongest see

XX, in outages, an made despite focus XXXX significant this generation deliver cost implement on to cost making organization tackle forward. Moving re-scoping commitment, identify mitigation about our million the tremendous plant range some our team employees decisions collaboration substantial million mitigation management of $XXX across the progress to delaying moving to and risk-informed and earnings proud to of slide aggressive We discussed. We we've the the and of I'm set by we've schedule to extremely began best and $XXX shareholder headwinds XXXX. initiatives.

perform redeploying own and natural advantage projects workforce labor of retraining executed historically contract by to our taking are and we attrition. Additionally,

have in target. achieved cost business critical, spend. already of year paused discretionary With travel representing regards we moderated and our a $XXX year-to-date reductions, employee is any expenses, we to that not full all XX% On have million basis,

necessary. and of to in build end our the the high We on ability if this are will momentum confident reach range

ability circumstances Energy. to quickly become to respond mitigation, Cost a core unforeseen the Duke of has competency

cost continually and and of utilize many business industry-leading lower to work these group to future and automation benefit structure transformation teams practices operational turn Our our changes years. in playbook even digital

on team We as their in the more makes progress will share front on months work. this further coming

to move XX. slide Let's

a math, therefore, Prior ACP. built to track in utilities considerations of XXXX. XXXX. operations contribution to from toward I'd we this some projection like Commercial provide to was cancellation early plan $X.XX financial for EPS Here, approximately midpoint regulated trending and an remain for Included the the of around that in ACP, us is $X.XX our Renewables $X.XX The points on XXXX.

this estimate COVID-XX manage year, and We by load the be our electric to XXXX. will that we be through as longer-term of of economic expect offset refining XXXX we move rest to this proceedings will and regulatory impacts our XXXX economic believe considering of as, O&M earnings analysis We impacted costs in impact have the conditions. we

our period. earnings, projects Although the we provide across ACP we capital that the immediately cannot five-year replace will over growth incremental the identified businesses have

from deliver growth XXXX base in We investments capital of will our long and over X% regulated the our term. earnings low-risk reset to X%

XXXX November guidance in and capital earnings in range earnings plan. with drivers five-year along February an will provide updated the We

value we maximize off disposal mentioned, will Lynn and XXXX our a base long-term X% strong X% tool provide XXXX, use As to in will transparent that X% growth every EPS low-risk at to rate to base. platform of our CAGR shareholder

XX. Turning to slide

we After and announced balance outlook capital rating Moody's sheet the company. the billion underpins Atlantic holding stable our plan. current at Pipeline, Our and both Coast the S&P of strong the $XX cancellation maintained

mitigate XXXX amount impacts in $X.X sheet of was We plan. equity is capital that proactive ATM all support November Our our priced to believe of equity our billion last to program adequate ACP. million potential $XXX and a balance stable supported this DRIP is XXXX through by and outlook and offering

a grow of Finally, payout with sustainable within moderate we strategy and a the annual the understand recent of to ratio cash the year is consecutive This X% also our The but XXth of value range marks paying increase. our consistent consecutive dividend XX%. to our investors. dividend dividend, the of to XX% year XXth the increase quarterly

Finally, up slide wrap on let XX. me

long-term yield, shareholders. investments our earnings Our coupled compelling return utilities, growth regulated provide from in a for attractive our risk-adjusted with dividend

We shareholder investment sharing about to we in look one our propositions headwinds, the forward look overcoming the through XXXX October with in in And Lynn vision low-risk to expect XXXX, and and positioned as ability details coming more you X. we Day COVID-XX ESG our range significant half remain of to the the we manage our in sharing industry, deliver months. with are lower of the mentioned, earnings well confident enter and as to guidance ESG strategy on most and valuable more during to forward long-term in

we'll that, call the for the open questions. With

you. Suisse. will Weinstein our take And Credit from we Michael Thank with first question

Steve, are Hi, Lynn. How doing? you

Good morning.

morning. Good

ACP the XXXX COVID-XX, lasts Can looking coal you're is some things off ash going in is at thinking these of weigh Good that your that's morning. Hey. forward? definitely maybe or things guidance a a everybody proceedings, you X% thinking settlement of will minds now a about ash bat, long you're how probably the that factor. can about the How coal XXXX? factor; at talk do as Like you're right X% impact that how Great. right to the the main affect see about rebasing factor; all and

question. that Mike, Sure, and appreciate I

thinking I mind with and to in today on about. into really think visibility slide it's you some we we're give everyone's worked our and remarks hard our what

are emphasize think here. I important three would I that there points

for It's that that the also plan I in walked track. contemplated we case and the projected what's coal commercial Steve cetera, rate you through we a $X.XX outcomes $X.XX. range or math ash as contemplated important of recovery, all on. renewables that the talk First the was there in outcomes, about on regulated et always projected think of remain businesses And

The are We mitigating be We're would at that but second in to did looking is important is a then COVID is they're that $X our planned as O&M. originally on to that much going the economic don't additional we've with XX. economic load thing point think slide And few roughly reflected and been yet committed declining projects effects be. important we how we've ideas fill forecasts, that offset ACP, had billion of XXXX. know commitment we the is a will you I to the third in for identify for begun already capital range

So, sense, at, is the on regulated COVID looking capital is we're we're plan trying this be utilities intact. give track, visibility, to this what the you to mitigated,

over following balance monitor so, the the the we'll initiatives and clean over and for us with pending continue and the feedback going economy. the And NCUC represent spend on orders cases. receive year, IRP resolution five of capital to what's be continue energy to the the We're next going also the we'll to those from closely two to identify We on decade. that because opportunities plan next years should

give more on in will and the the as of course, historically then, of we complete you flow So, we all February capital things third in range earnings drivers, quarter, visibility have. cash including these

more One ash. Hey. on coal Great.

If I that you additional were would to receive, equity? any or that it on confirm. issuance just order need coal know ash a or not you've let's say, do I said secondary ash, for some block moderately ACP to cancellation. equity negative on you wanted coal order negative require

a about strong recovery. important disruptions I talked for implications metrics, sheet, and of very customers COVID we implications on and our and that of the and balance of but hope Carolina flow very strong credit, balance North and item. fact not will to that the about sheet we'll stand the customers, contemplated our cash fair case only that things. the earnings that, – front the in expectation constructive the many fact be testimony coal potential put The during and on treatment on centerpiece August has from commission issue is market, and talking in ash we the plan. over and the strong, appropriate of importance for And the be given XX well-reasoned order really question this on importance a of hurricanes have to been is from them. growth, will other the on receive an in this Sure. our XXXX, of lean Commission our the will this And a years magnitude I But Duke Mike, we

focus be coal no basically if would it a ash; receive order to to our any to direct with would But And Dominion, the would believe with reduction specifically big sheet address over the viable consistent a there's frankly, debt, of order that we with to been we were It's think no supportive, ash. other solve impact on absent on I ruling It's the treatment FFO solve provisions which that deduction to Moody's it's weakened. are to equity important would an has to there and to big within that be And or from have. too issuances. options clear very return, credit balance coal And is impact if debt. XXX-basis-point responses. FFO too operational be

qualitative And of, say at be but the lightly. outcome. a August. in and we of an assessment the is think appropriate downgrade the walked centerpiece constructive this just at this of or And never look the but will We I as interest consideration said, I for level? We I you quantitative issue, the not speak customers the testimony this this as don't order state. think can is for through, it's in math important Duke So agencies, the want I the only I threshold best our don't don't

hope and a for constructive reached order. We and money. on with the settlement the state the customers' all of our expectation saved meeting We're delivering regulations, a deadlines. We're is rules the consistent have and method with We closing.

in approaching our equity our the comments is support adequate believe we're balance and point. the plan equity, And capital noted to you sheet. about we of amount the way your at As it in that's this

Okay.

kind even coal recovery. of sound order some on be doesn't in a be to issue the to you'd of just additional ash it equity, like clear, negative So, event inclined

to the other at the important evaluate in included by to will quantitative don't there our we've order, solve capital elements. And it'll plan. that support on credit-supportive stand coal credit qualitative we plan look and are believe assessment is in our is that I the ash. whole a equity our think will potential else the adequate any we be because order, what we equity Mike, and of But

So, as I a case said, strong we'll put on.

We expect hope for treatment we'll to commission, from we and keep posted move proceedings. continue through the as fair and these you

you cede Okay, much. the floor. Lynn. Thank And I'll very

you. Thank

And our we next will question take from Shar Partners. Pourreza with Guggenheim

Kody Good actually for Clark It's Hey. on Shar. morning.

Good morning.

Morning.

Florida, So, of on here. just spending to moving sense guidance, the filing wanted last aren't imply lower levers just to a get healthy it ACP question, to guidance lieu up Is but of there the would projects XXXX you no that given midpoint, guidance, XXXX case Carolinas, follow any I that the to in upcoming and given gas raise yet X%? additional position issue O&M equity growth when your in to than to pieces and you historical your needs. rate the believe outcome in in need capital better reason X% that give know a

were the are ACP we in $X.XX. worth what pointing So, about is $X.XX. is to analysis we targeting

respond to that the and with you it Steve, to would any ACP, to from rebuild So, will reg I it. implies business the O&M, would that continue about economic implies and that? also $X.XX, renewables on that to So, deterioration anything commercial capital that's the add and math points track, we'll way implies offset

for businesses. base at X% growing rate is our Our

in potential robustly range to in hopefully, of X% grow going we're end X% reset the think the I high at XXXX. we So, from where with to range,

it. Got

Okay. capital opportunities IRP or that you long-term roll capital providing on plan will Carolinas full February CapEx? incremental wait And you the point Thank forward in the with any looking in do associated the Day, plan you. quickly spending then, for at the ESG to to update

to February the better that. a plan of form believe its September. the The at is to is reason early in natural governor clean report energy end timing be in the of filed I December. reaches the IRP And for resolution the going is

customer So, to IRP, capital able carbon like I scenarios the scenarios impact look some in is think what be of to do share our we'll the those within the what with would rates. order. And least to it XX% the a which reduction, is will have set the governor that a meeting reduction in at his XX% everything executive target carbon has from

think But think our we'll as in all more that the Carolinas. do February beyond I even February be reflect to here start. the XXXX, of fully will process I learn And I a continues plan And in think the capital way more. represents for fleet along add keep to that the and informed you transition an we referenced that in is ago, capital Steve something moment that us a Carolinas just we'll opportunity know as

Great. That's all stay and I have. safe. Thank you

Thank you.

you. Thank

Thank you, you too.

America. take question our next Julien of from Dumoulin-Smith will We with Bank

Hey. you for Good morning the to you. Thank time.

Julien. Hi,

morning. Good Just – hey. a quick

items here ACP, doesn't Just know and wanted a the potential a transition I IRP. offsetting in the up might with IRP. you to but that at at of the be wider list portfolio out follow as of clarification few getting the necessarily you capital potential spending plan hit how it that reconciles

IRP? revised you plan? can discuss the with reconcile one, might if billion how the So, And of the that $XX CapEx scenario two,

question. the very incremental decade. good shared what a full potential And you on slide really with investments the not Julien, clean XX the next for from the we've over contemplate it's energy then IRP does plan and

here, including, more so, in renewables the we replacement and range And options that course, will of of of flipping accelerate slide deck, believe it's of battery slide clean we I'm generation talked X, have It energy realization just accelerating briefly kind retirements. coal storage. scenarios a we'll the by about

at to at necessary It'll get the as in system, I what's certainly least which XX% present a our XX% to Carolinas well. here across reduction, It'll think an reduction. carbon also carbon has been goal our present least

specifically are here finalized policy So, as over we'll more those be the transition year, with our But the they capital and we fully reflected you as will align will and we not more opportunities plan. know go. next three be in that we update as

can just ask it. what's next the step about timeline you that over to scenarios getting the some clarify you if further? And Got of you I year, clarity those can talk a just here,

at when commission updated a it's end would So, is capital. plan way is be legislation we in going ongoing take a the But involved. issued I report necessary, December, this, will a time Julien, in to going to of terms with our take clean at the expect of energy little policy, February its find stab to that is for

to in will similarly, from reaction in but IRP, been Our processes, will September. be get We've start it filed it. stakeholder

take it And to stab at is into XXXX talking think ideas of really a that in those of decade a continue take so, what a February, will feed but I to we're through little build that turn then bit about and a and And more policy. beyond. investment we'll it on because time definitive

All right. it. Got

going stab So, the it. potentially us clarity first expansive. and to is, But after XQ, ongoing you're that, at remains a it give

That's right.

think fair it. way a about I think to that's

Thank you.

you. Thank

question And we from Fleishman Wolfe next Steve will take our with Research.

Yeah. morning. Hi. Good

Steve. Hello,

Lynn. Hey,

follow-up on ash Just coal the issue. question a

mentioned your order credit-supportive You rate in elements. other

like Aside – from be? have you return getting it, credit-supportive on what other Like, a might proposed what those elements?

cash and XX%. reached settlement I X.X% flow, think at We've Steve. it's the

which have than flow would think is cash the I there's depreciation to that. higher And be it accelerated element.

providing do to of that and have to just any an treatment the know, the things, implications, recovery it be combination that. as coal at So, strongly but a I'm we'll XXXX, the that I you exactly from ash. think on but order received say, of in of time get evaluate commission, regard we to, the return look the whole it feedback in We you you and about of would feel

about that actually the do ACP, just in know we then when thoughts – you going on CapEx, – you gas Okay. not more terms will to Great. And of replace the you're how but that? gas have – the needed on

on contingency working need eastern to both gas into pressure the Piedmont plans is time system get for been LDC, for the the the so and we've this state. some of slide Steve, more more the of on and Sure. for necessary be some what's to options. we option are at a There lowest-cost We'll And customers. be capital that's will achieve XX. the expansion reflected range looking believe part

variety be to be business. replacement will the support There's electric For planning process. along would but weighing will options in completion to the risks, first be And begin in be been generation addressed the there be available IRP cost, a that the implications electric the will business, the of to that also IRP. way, step – the

supply I think is Carolinas particularly currently winter. the the into about talked the gas we in fact constrained

as to over for we'll these ways and we options more talk time. about to address need the we'll considerations, And that finalize So, look them.

Okay. of color, of Great. your has question. I last by much long-term give In you showed just XXXX. the renewables And then think, one kind of where doubling that goal, slide come more or like Or processes, the you appendix maybe that? it in on IRP North to Could Or areas what's how through Carolina, the the color that? commercial there? are more get half that like little assuming you is assumption from for number. Just of a you bid or Carolinas Florida coming

on plan, based is the to that and The would all the the historic some Steve, of intend And Yeah. Florida includes but update further we IRPs. Carolinas, work. it that additional CPRE IRP in renewables, following

Right.

side as we're regulated that to an also that that Carolinas landing capital, renewables renewables our cook come significant and about part number, well the just from got of in billion including that as And there's important plan, the there. CPRE on and in Florida, up the through about a purchased business, represents think XXX in megawatts year. because $X we're and of we we and part commercial five-year I

piece think that's Florida I and as of But a lot in of well. it potential the Carolinas. continuing there's renewables So, a

fully in this we're report And the our represents clean not the what we and plan. this contemplate energy I did seeing included climate think, in It Steve, what year. IRP

update more. we as this know we So, will

Okay. much. you Great. Thank very

Thank you.

next with Goldman take will we from question Lapides Sachs. Michael And our

guys. you for taking question. Hi, my Thank

Hi, Michael.

XX about the It large doing a smaller scale didn't drive that question. in really the the size I about program One other my rolling one in Florida, the something first built significantly two there to you I do over different I physical know gigawatts compare In utility well. systems potential to solar the if and that questions. Carolinas. the see you're gigawatts years I upsize their of difference have was hope about relative Florida, in state, are between you mean, out and utility-scale doing megawatts Florida? guys XX are differences that amount. if of you That's amount dramatically your or dramatic.

wind or both investment is, of second what in how a offshore Carolina wind strategy? whether North offshore component does will Carolinas, your question My in is – play role and know you

Yeah.

let So, Florida Michael, first. me take

we in specifics. a shared there's more plan a mean, five-year site us more that only giving in is visibility. Florida what period, So, I have within working you some about think with you plan. five-year that gives Florida I But as would

that we ago... well the our XXX to a or are way announced so on megawatts year We

A year half. a and

ago. asking five-year you recently And Clean XXX was there A a growth plan Florida a also Steve over half total Florida. and that for more year I in in as the Energy We've will be Fleishman X,XXX opportunities a do period. moment think at megawatts. ago, in renewable over that Connection there's look another about announced

we will and programs we to potential And continue roll of different additional we behalf more so, customers. a see update as out on as

end finalize a XXXX, in are of will plan We multiyear at rate the that Steve?

of Yes. At the end XXXX.

and opportunity provide capital would that updates to another So, on be us so on. for

think I Florida. continue story So, will be in a renewables to

And add, the went combined our and that combined part Citrus was was large plan growth I cycles in Florida very of cycles service. into that would two County

period. the influenced needed during of we that solar So, that amount this

we'll up we alluded as putting go ramping place, solar think to. we're I in amount Lynn the forward, of that as be

the probably I toward the Michael, will think And next something it portfolio, to in it offshore greater into upcoming think might the about I And the think where as on end, fit we wind, that offshore IRP. has address we wind would potential decade.

so no through XXXX. was may wind remember moratorium, a the end here the wind Carolinas, of You history there in the

clean as will hasn't much as the think through it had and visibility this it process. coming energy I IRP So,

finalized and more further represents this make investment as we'll a gets So, it we policy the future opportunity and as transition. know progress fleet on

you, Got Thank it. appreciated. guys. Much

Thank you.

Thank you.

will from with question Research. Arnold Vertical our Jonathan next And take we

Hi. morning, guys. Good

Hi, Jonathan.

Morning.

and do of pushes curious, speak that? could us X% there a or about of that to just tying as something that other related if your runway extends even and you're than potentially dialed on things you you've to Lynn, trajectory that. to are couple or to transition the bit fleet Just that of sort a Just you investments it think things these little the back together, you X% talking better within higher

you fleet does It about it runway think both. and – a because provides fleet we're Jonathan, means about talking certainly I long-term think long term.

I price opportunities, So, decades. the at investments we'll we maintain to it customers always context to plan investment potential we're underpinning provide impact to need in to within the But it maintain needs for generation more because also look the and to of has this think five-year Carolinas – affordability.

And think to it so, influence potential has do I the both periods.

is we've the as great to expertise way that customers. our think of headroom about for of to continue structure that for of ongoing One the cost add on cost And the us things developed capital. reduction we benefit capital a gives about

say, helps So, things. would it I both

Great. of well? a minute you out as Thank sort the Steve, bit residential July how little you. tracking. of of of C&I And a a more of gave report sort bit then, a was share you little more of view to – load up Could

to the year's we July, the in about and we X.X%. saw saw – than commercial and July. continue that in year overall, below. year's magnitude C&I we But the last led industrial drops higher below Yes, digits, in by low-double of compared to were last July, we last see Again, X.X% residential still to

in. be last by than So, residential. driven had we that July, was by But boosted that about We X% below to the projected all were primarily better residential, obviously.

last So, from commercial starting climbing things. we Industrial operations. still is industrial and out decline in of a They're year. saw

I still what bit way we'll overall, it But XXX%, larger tracking three-quarters an initially them month. and there. month in had Smaller they're hurting of of commercial's As keep some we're mentioned, on customers we working by operations, the not at than eye but forecasted, fully their back are a more. better

those So, are double kind little end bit effectively, comp. of you beyond for XX% QX of end the still digit gave – XX% more down but toward quarter, the numbers low-double a (XX:XX:XX) to us of digits the the

up. the specifically, I have don't the think front here me but being from obviously that's they're pulling down I C&I residential of correct. in

negative they're of fair less saw it's We'll the we a overall, had the improvement larger in down We're again, I projecting amount. And up. a So, are quarter. than still in on in particularly C&I seen fourth we impact the suspect an eye as quarter. July it. But second keep again coming

economy wave see we'll the go we how impacts as forward. second the So,

Great. Thank you.

Thank you, Jonathan.

Durgesh from next take And IS. Evercore we our will with Chopra question

Good morning.

taking Hey. Thank Good the Lynn. morning, you for question.

XXXX it off, is small, left in Just your the communication was lower guidance now last but maybe the of you're this and saying just Jonathan half. where lower

weeks you you're that of understanding am ago? assuming trending I sort perhaps right So, few than a correctly? I higher in were Am that

That's correct. correct. That's

we've month of built the some may you because on weather, had mild as weather a winter that the year. we've been success cost only the rapidly really it's of very early whether-normal weather on strength So, Durgesh, July, able of us not generate in hot in that moderations on summer. to on And dragging we but volumes, well recall, we impact seen as savings the was saw the that

come, five-year that and specifically filling I Understood. fair And CapEx slide you hole, you to as sort plan if and think the the about to that Super more of strokes, helpful. CapEx, broad appreciate on timing plan? broad that but detail the assume backend-loaded of of XX, Lynn, strokes, that just then CapEx of you will, recovery is the ACP

because of think think it soon completing we we'll we the get towards can we'll would maybe as LDC started about investment, work and ratably, I as as incremental it.

would it of beginning think of XXXX. I ratable, So, kind as as perhaps early

And being investment after investments also on ratable and we solar possible On other as OPC of about soon the today. as whether with settlement reached front X August we introducing in jurisdictions the We think a that, in Florida Carolinas commission the investments, would commission or will then begin I as approval. in actually are well. incremental that the grid,

Got it.

the five-year guys. you speaking Thank taking questions. the so Understood. period. for much, broadly So, ratable Thanks for

you. Thank

to Lynn time, to any closing the additional like this back at would I remarks. Good call for or And turn

is any everyone's appreciate today. further Well, thank you, always, discussions look interest call. the and participation and for you. as with I available clarification today's forward following IR to And We team

for us. joining again thanks So,

we and today's concludes gentlemen, for and this call, your you again, thank ladies once participation. And

disconnect. now may You