Fortis (FTS) 30 Oct 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Carol and I will be your conference operator today. Welcome to the Fortis Third Quarter 2020 Conference Call and Webcast.

During the call, all participants will be in a listen-only mode. There will be a question-and-answer session following the presentation. Instructions]. [Operator I turn time, to conference like Amaimo. Stephanie would this the to over At Ms. ahead, go Please Amaimo.

Thanks, morning, joined from as and Jocelyn of XXXX President Carol, the good CEO; certain Perry, results third to and team; CFO; conference subsidiaries. quarter Executive Fortis' senior VP call. other Hutchens, management CEOs I'm David by and Perry, everyone, Barry COO, and members welcome well as

which will is I want to to you include Before forward-looking contained begin discussion information, can differ statement slide today's call, cautionary forecast materially we supporting from forward-looking the today. financial measures prepared quarter show. subject to All information in third turn are With results that otherwise the remind the the the non-GAAP XXXX Barry. in MD&A. included presented projections our in over Also, will I referenced dollars. all the in financial Canadian in call references measures to financial unless that, information our U.S. remarks GAAP specified, reconciled the related Actual

you, and good Thank morning, everyone. Stephanie,

participated my CEO our of Hutchens XXrd third last busy year, Year it Five XXXX. Key month President in as as announcement appointment Virtual Outlook end and and a Call for the of from January included President Conference our X, was call Fortis. highlights at September the effective retirement and quarter David you this If CEO,

new XXXX. extended out capital announced quarter plan, our rolled five-year average growth X% our and We annual targets dividend also increase, a fourth dividend XXXX through

Maintaining remains priority. to by compared emissions XX% sustainability front, XXXX operations reduce corporate-wide we our levels. our XXXX the announced carbon target On a to by safe

ITC team to below of history. Notably, our industry consider deliver responded When historic while we you better storm the pandemic, that the working service three-year transmission in in reliable encouraging continue with worked incidents improve XXXX. the Our September service in restore teams our program year-to-date average. our to results following safety capital safety have August, during tracking on wind our Operationally, Iowa. It's performance we than the largest in performed diligently in knowing historically, excess averages. strong, XX% were to

result, on our to In a ITC XXX approximately ground. ranging miles response, lines laying quickly. team damage rebuild of towers from and storm, utility were damaged mild the mobilized the As the by to X,XXX the I'm workers to grid safely of proud nearly deliver to across safe reliable they teams said, outlook. With the finish strong. update operational Hutchens me over more an the let our as continue Fortis detail on new positioning for service year and call and hand five-year organization to that the David

good Barry, morning, Thanks, and everyone.

and As to navigate businesses we pandemic the well. continue Barry our performing through noted, are

working working Our and critical have they're operations home or X,XXX risen field customers. maintain the to from Whether in the infrastructure, our to our facilities our employees support to or occasion.

and to improved strong proud thankful employees record, reliability delivery. in And teams peers. do. of everything Our safety be Employee industry continue relative paramount quartile more to we reliable is provide which and we Fortis. customer our energy safety They across to couldn't the have our firmly also top remains

total Arizona and last with offset our pandemic. the residential lower sales quarter, have In we sales, higher associated changes XXXX. segment X% Electric quarter of partially Other retail and were terms sales to over higher In with segment and impacts, commercial temperatures third X%. to excluding weather-related Energy sales sales up exposure at quarter most increased UNS Consistent at contributed sales. still industrial UNS. in UNS experienced the by at Record Electric third by UNS But our Other

the driven by Caribbean. were reduced tourism segment, Electric sales Other For X% in our down

our plan. capital to XXXX teams Turning continue to our Slide X, advance

the to in which systems, we nine billion of higher first is months invested $X.X our compared in XXXX. period the $XXX same XXXX, For million

Our and capital provides an to future levels. of and remains to communities a with corporate-wide by carbon customers Last reduction our target This sustainable on cleaner commitment XXXX XXXX track. announced our XX% $X.X energy. billion we XXXX ambitious emissions compared new plan month, target enhances

majority generation target the will its While developing energy XX% be expects delivery, our of generation. their of Plan, Integrated resource the Resource have carbon-free TEP's outlined of By utilities XXXX, changes through and to Fortis dedicated assets met to are to reduce plans all approximately footprint. in environmental

to plan a is approximately is in averages out million a our virtually base maintain approximately over Turning $XXX $XX.X over to reflects growth over rate billion X, low-risk of and in plan This infrastructure. projects year's to plan required our having in XXXX. and XXXX capital upgrade XX% reliable major Arizona last safe customers. billion Caribbean, rate new $XXX by across compound total annual comprised executable, in to of New plan British service from billion of in capital XX% maintain spent our is month, be electric of Slide of and XX% XX% The plan $X and capital The our gas highly remaining X%. businesses $XX Columbia, existing utilities. investment America billion. diverse all our from five-year of new $XX $XX rolled and our an in our we smaller yields five-year to increase the plan to of consisted and of regulated costs projects Only mix will The our consists utilities of projects and million. needed North York. expected This plan billion grow annual last

announced September, XXXX. dividend increase X% average In addition growth annual fourth of to our in guidance dividend the through also announcing of X.X% the extension we quarter

milestone reached business this the our to growth consecutive of next XX leadership I'd and you, your we consecutive our your outstanding and as commitment deliver strong to thank us over plans this your look low-risk people CEO in Barry, celebrating increased for to delivery dividend continuing like And increases and record. the to exemplary XX dividend when record energy years Fortis gives XX-year track on and our and that with favorite. President continue of for slide XXXX. have And and career. been we’ll you always confidence years We has forward this I Barry

Your has leadership. to accomplishments truly have extraordinary, incredible your honor this it been company an under part be Fortis at and been of

friend been to You've quarter over on Jocelyn great our the an in I'll so our I all and me the retirement. the Fortis, for turn wish at your and of a call and to now update results. mentor behalf best myself many On you third all on employees team.

Thank you, David, everyone. good and morning

for compared reported share of for last year. sale was significant million Year-to-date a net XX% $X.XX basis for On share earnings gain third reported common to compared third XXXX our to of EPS quarter of interest XXXX. year-to-date the earnings the one-time quarter the from per XX, $XXX $X.XX reflect Turning common the of Waneta reported a in to per was Slide $X.XX $X.XX Expansion. XXXX

Additionally, compared XXXX at reported lower $X.XX reflect basis, the ROE related an reversal of earnings of prior decision year. to EPS including $X.XX, On the EPS of accruals. May, FERC's $XX period the quarter received million the in to favorable ITC previous was impact impact a for adjusted

items higher due base to retail year-to-date the Partially weighted XXXX EPS a quarter, $X.XX to ITC. these at EPS Energy across share at weather. rate primarily associated tempered our offsetting basis, lower $X.XX equity last common sales UNS and higher a by year. average warmer with the was utilities During growth and compared On count was adjusted earnings issuance, regulated was

relate Energy at the EPS similar While driven change UNS the the incremental Caribbean, additional year-to-date to any on items do impact quarter, by EPS XX the The where XX was lag tourism we Based mainly today, also for the the we and Slide by EPS for remainder and was time. recognize overall to in We of regulatory pandemic and are impacts of for and dynamics associated X%. year-to-date. impacts the in pandemic-related the provide and expect manageable details costs. impacted noted approximately quarter drivers be on decrease impacts decline in XXXX. at COVID-XX the the could COVID-XX of

rates. $X.XX costs. In by hottest increase on and which our EPS growth. last gas compared mainly was In to with not year. in the yet EPS Central each approximate Tucson its to increase associated decision rate case, TEP included and again offset on the The Slide with a $X.XX $X.XX its lower rate Other operating and Hudson contributed due resulted In Arizona, and awaits Arizona was for quarter recent increased finance summer $X.XX by our partially base discuss I'll charges New York, Corporate shortly. rate base $X.XX driven our a Hudson, EPS most increase on record a increase growth contributing which electric an segment, XX, Central EPS by in costs increase. Business experienced First utilities U.S. higher

by the Our facilities to Energy increase Belize Hydro $X.XX Infrastructure rainfall. a at EPS segment driven production generating contributed due increased higher

had like drought You conditions been late might experiencing Belize since recall XXXX.

quarter slide Caribbean. were decrease to this shares Third and line offset higher was Electric last with XXXX. by of was Other levels a the average lower EPS a base ITC common was flat last compared And EPS from income ROE not sales a $X.XX in from although And compared segments for production to base the rate lastly, decade. contribution the Higher growth our lower quarter. the Belize equity earnings over commercial year. on returned for a to depicted in for by $X.XX offset production number tax Rate last in lower lower year effective quarter. contributed

adjusted Turning same period $X.XX to year-to-date in to the XX, XXXX. by Slide compared EPS decreased

average associated of late with the far can main $X.XX. weighted of you was right decrease, EPS lowering the a funding on slide, the equity count see contributor the share XXXX by of As higher advancement the in our

utilities left, mechanism contributed offset base strong expenses XXXX. at Western $X.XX the to carryover operating efficiency the growth increase our over PBR by by and back in rate lower the driven impact Canadian of partially EPS FortisAlberta Going recognized a

a Energy increased increase hydroelectric EPS in by driven segment Belize. $X.XX Our contributed Infrastructure production

to the offset expenses, dollar a impacted U.S. the partially lower impact tax higher results to exchange year-to-date and $X.XX ITC, base foreign at base was and business And mainly XXXX, Canadian due a $X.XX. a in increase rate lower effective by of Next, EPS rates by growth rate dollar ROE. favorably development lower

$X.XX be the for Corporate While segments generally to decrease at income the U.S. increase mainly delivered was of earnings this flat while Electric is electric compared expected for by our not reflected XXXX favorable ITC XXXX first in offset partially from the segments, of in in gas are for was rate line growth cost COVID-XX. ITC November sales rates. decisions of XXXX. months commercial by base timing Again, Newfoundland Power lower electricity. the record Central largely to at growth nine to The and base growth our of May power $X.XX in growth. charges. timing Arizona, and attributable Belize included offset impact lower The not EPS impacting higher with Rate equity earnings EPS XXXX, an associated with to due in purchase utilities mainly rate was associated EPS as Other In and Other finance Caribbean, at issued by Dave costs and as on Hudson by slide, base was temperatures by mentioned, offset with higher in costs increase operating yet was FERC

York As future to in with Central COVID-XX earnings the is proceeding recovery conjunction New a the related Service costs to Hudson this regulatory Commission. period. Public could favorable be reminder, If achieved, initiated a in all track continues by generic

is new of the plan our our As Approximately and billion we did cash to on debt regulated new capital be our expected announce capital be at five-year expected conjunction utilities. the funding through five-year our you reinvestment can with bulk issued $XX.X X% In program. to capital see on of plan release X% operations with funding the XX, from our the Slide DRIP. plan, of reinstatement our of dividend is discount

to approximately reinstated. the XX% discount being We upon increase expect annually participation will

We continue nearly with strong available facilities. to our $X on maintain liquidity credit billion

utilities. $X have our and of inaugural of utilities, two highlighted in two from our utilities FortisBC billion the Our over largest our long-term issued bonds by TEP, issuance green debt largest XXXX, in

within strong the pandemic through and to ratings capital our continue us plan liquidity funding work we as plan. positions execute on Fortis existing well credit our and COVID-XX

the Arizona, concluded turning on in continues and were August. proceedings. rate progress, June, to to hearings Now July some post-hearing our case filed briefs In updates of ongoing regulatory in and TEP

three-year a We filed expect with August, Commission year-end. on New general June by Service a current Hudson the Public the application rate decision XXXX. York Central concludes In as plan XX

FortisAlberta will currently decision recent We for is this capital a remain new decision I'll respect now future the decision in we decision contribution commence in on later System expect in Electric expected we approved Operator's back new And final generic In to received to a most decision the periods. for parameters The the XXXX, to to customer mid-XXXX. to lastly, case a of proceeding investment, cost with October. place In capital a and by basis Alberta expect that, of related turn approve on Alberta, parameters a cost transmission AUC With call this proceeding the XXXX. to AUC continue a Barry. the awaits on year. policy

Jocelyn. Thank you,

So invest why Fortis? in It's simple.

served proud been it's is last now turn energy high the have honor delivery, present, through is over employees of than average stronger years make earnings ever utility and years Group our through and conference annual official look and I all like for To regulatory a of call, company be a say privilege profile, supporting X% Fortis the call strong is North our thank and and with past back providing am guidance on close to diversity. Stephanie. Fortis Fortis success you continue up our wrap company to With forward the portfolio across success. businesses quality the To to again, last our it geographic platform coupled saying, I my today. the the your to this our I'd to America, you an dividend over an by Thank Fortis focus understatement. ESG both XX I'll watching of growth to would contributions strong XXXX.

At like open I'd to presentation. this community. from address to This time, you, Thank questions call investment the concludes the the Barry.

we period. [Operator gentlemen, now and Ladies Instructions]. you. the will Thank conduct question-and-answer

first Markets. from Our question RBC Please Robert comes from Kwan Capital go ahead.

good Hey, morning.

take us term a it gave On your willing And you your as the I'm to you're investments? Or you it bit be potential you investments would investment. regulated what's types have on is to types to for? see for do be talk appetite you about utilities? Can your what more you tailwinds. talked wondering unregulated connected guess contract would of for if enablers Rollout about call that on I standalone? to those the looking utilities? means galeforce conference you take of what whether Do being what unregulated, terms And little

always Yes, or to contracted risk that are our just obviously Waneta, another looking purely like jump the you the that, the looking counterparty energy of infrastructure offtake thanks, Barry. come in and those a and put we would Robert. that situation. right Obviously, manages utilities at the like Yes, answer prefer we'd unregulated, that. mind. be fully credit by in in to contracted I'll regulated things together have manner that types for to worthy a project a projects are right we're one kind of Things of terms deal a where tied

So not undue always take go things we're will like looking any at out and that be risk but projects like that. going on to

And would you your footprint If be want see them would geography? Or or being standalone head to being get contiguous? to that's you? to around they directly wrapped the something utilities? investments would either you a makes for geographically that related in could different sense, -- they in contractual And your need those

think all I above. the of

we Tucson have York, area Midwest, broad a our the the look an one look the footprint, I are would I can't footprints to Atlantic imagine That's outside at standalone where think ITC we obviously Arizona, New you expertise. consider have sense. But least and probably footprint. covering at there pretty make within closely. doing Alberta, situations if utility very of not geography at we have BC, us that an our Caribbean, could that something area;

have areas really, where or you're we when the process -- permitting expertise processes the you development development going area out through about talking especially get have the outside and areas. it those can in to you projects, need regulatory expertise that the the Going so

really scale with at decide it last finish Got in if ESG/sustainability electric, right I'm you've now? that point, market your larger backyard, are light any Historically; the question message deal transact gas did give. commentary I'll do transformational the off themes M&A, approach utilities there out just additional in to have had several some you a on it. Maybe with years a consistent in but a in just wondering a And M&A. versus to there's the different as can relates if to you you of backing

That's background. a fiduciary continue a over month analysts great keep and covered individual do question, on be that's in organically. opportunity think think And And portfolio a But put we a we're the only conversations, growing and with five the conversations to M&A we And we call past the years. something laser-focused that the the to of to have the so. really or Robert. be a forecast And, rate-based on not we'll more X% this I we look last opportunities know, of in in couple grow going at successful CAGR from our that with part from even perspective. have to obviously everybody's next but to I've always perspective, over lot a utilities times is both that we out

So and the jurisdiction, investments. It depends great like all Columbia, a in depends our really electric British I perspective, solid, BC on out gas say resources, the LDC would rock from solid business those on it investments are it gas depends.

consideration. so put down And or shy are not at gas jurisdictions in. to But assets Obviously, we will those come look that the would ESG. from we on based a -- and valuations would away at electric, also but that look particular everything that's

with deal great. all That's in last congratulations the and and Barry, call the retirement, us. your for best to answers Thanks having on

Thank you, Robert.

from Our BMO. go Ben ahead. next Pham question Please comes from

equity you quarter if some all had share might on morning. Belize's and hydro commentary around a some question in non-regulated, that's the have in you electricity? can good what's I there and income driving good the the Belize the really results context is thanks, Hi, be

only I'll maybe the answer this be today. So, question will Ben,

then you the Just we're where there, BECOL, really of struggling everyone's past utility XX%. businesses own one-third that. Belize, also in called up have Belize. electric quarter, non-regulated of through history business do two last until of listening as used and own conditions, on own actually One to better is the But hydro some sort lot distribution the we got we much call, of quarter in that's our know, but a we drought and in one-third that we this

picking share from that, in a our a quarter, up of in we're earnings So amount business drop of in -- that the the terms

penny. A

It's about for a a the share penny so. quarter,

Okay. And federal the from then discussions that some of utilities? maybe through your you project a with involved kicked days Atlantic Loop guys government. or being by indirectly question, get even Probably broader around is But downstream early the something directly

Ben, possible days. it's I Its think really early

think You the Island. utility in Edward we Canada, about Atlantic Prince own

Power. We also Newfoundland own

have to this going to we're open project part still a pretty that but and to be So this, and it's of we're early.

right. All

extend leave speaks also I'll well, retirement. early to The want it there Barry, congratulations track my itself. to for record Okay, and I

your So discipline, approach. thanks your corrective your candor, for

and congratulations, an that We just and miss sure will party David, increase. make surely everybody. your get you you me bet you Thanks VIP I invite to

do, Ben. We'll

Ben. Thanks,

from ahead. from Please Our next Securities. question Linda comes go TD Ezergailis

you. Thank

wondering are this Before fallout mentioned of year year if impact balance loads this COVID of including COVID a load your the of what outlook question, of of your economic I ask key kind the that for for for sense the my are for wondering But XXXX manageable. thoughts is and including in utilities? trends you balance I'm for looking I'm the bigger weather the you what picture have

follow David, start, can you maybe I'll So behind.

is a shoulder of quarter in the Arizona, quarter period. in bit strange way, fourth because Linda, So a a it's

quarter So it's business. for that big typically not a

than a I was of hotter even It's it's still little terms load. in then But October think. down substantially. Although normal,

don't see, a mechanisms And to cases with we're of of but trends of impacts I about it's weather impact So related have quarter. see we the to that's terms that. I the amount the COVID. possible possibility worrisome shutdowns the I where fortunate And residential don't early, the real these It's so together sales, revenues and minimum say, maybe targeted regulatory add in of that XX-plus-percent big company. on been I probably having guess, protect And the those the why protected. would and the

businesses, So obviously, compared strong to a very position. that's many

economic the think impact there on company So muted, XXXX. really even I in David? impacts still be the will are negative if

see couple Barry, and particularly Yes, points I’ll the what pile from or the it in increased our still, to to ask in we other industrial people we'll I down utilities, and pandemic. utilities of gas go we've think that seven residential Arizona, on first, more has, electric winter. just so the volumes it due like months But through a seen many here sales as commercial there, at of I guess homes, will and working I for continue the think reduction that the eight

as we it's I expect recovery following cold live cetera Barry, too is of would you sort at enough air in to hot quite right, to again because gets et in And was continue or here about recovers so goes, when through when XXXX. the hot on weather to that can't get seen. industrial get everyone nice far economy heater, done have conditioner to the months then it here, to So that really stimulus really doesn't weather on packages, it enough it is But all your is so as probably really theme and become your time. here. much it that of the those be or remains the Arizona either a November, October, and as pleasant how that weather factor into although December, And turn commercial and down

hand, Don't David. rub your

Barry. You can move there,

very of outstanding those I'm in rulemaking notice any either how if proposed at or of And in administration thoughts White Transmission that you House administration of for affect might and wondering might that might think some can So of House the there of an the the sort be entirely. with shift White any delayed potentially, might staying Policy. Incentive derailed maybe how week, sort talk moving next how change, in onto appreciated. or your we wondering on changes to priorities if current least, resolution scenarios terms is the be on of

our We growing, a laid Arizona said, growing focus win be there up appears the renewables, move of to White and Maybe major we've and cleaner investment in I'll -- and the we've look as when business, adoption down transmission matter energy well, folks been is focused been Democrats now picking and business, we've of House, investment. a drive pretty we frankly. out been the Linda, to offer more exit the we're and administration. Jocelyn, can storage. distribution. that It's move renewables, who to really jump and that just business it, transmission shut at in well. business and you comment David has in just, renewables how the feel But White President's maybe delivery a renewable energy, doing the been that positioned to no faster well, going being And the if House, Trump on that's We've wins under the real coal

So I matter think happens change the I you're overall, to a going good, of the we're to sector no upside, really see out what here. lot positioned of good FERC. one have in don't of think best probably

slow not White that is is or needed transmission -- on have they're making attractive. they're down transmission Democratic if less House think belief I going to not a we my right

make issues we do steam of some RTOs, sure the and solving lines the all believe really transmission the I can anything, they on of of some if the may So that. interconnecting to bigger some accelerate policies

David, So to some I you really, think thoughts? well-positioned. add we're really want

going then talking well. add to to then and stimulate built Barry able they agree slightly looking because is a either pushing Yes, across both what of I customers. I economy. our the Democratic may on going the connected U.S. the a XXX% really FERC is quite incentives clean just energy to renewable things do the transmission administration, transmission I it, come distribution think energy to address delivered into be And it's view whether there, think is push perspective, they to is companies of play to either about Barry. I from was if hands be how would when it that couple administration, in to And essentially going and a really really FERC to having obviously, and get the what all be our different

where Trump look bring I a also, this I win, continued tails a the would on it to stimulus administration like of focused that have either at it even large from So think energy. that though would I in way, part almost heads win, I is have clean

way And so said, I either take to situated we're -- like advantage that. perfectly we're of think Barry --

your around place some you liquidity be considerations financing the of plans, just how might the to attributes certain et consider and about maybe And while, hydrocarbons prefunding, what But adjusting it your accelerated a you. financing assets, little heavier volatile plans, in one ESG of cetera. Thank think their markets into anticipation weather opportunities, of more kind less because maybe for financing if on have over you in other question to more or either flip core it prefunding investing more plans whether look balance adjusting the whether decision that or you've the side, opportunities? be that fall be recognizing storm. capital next the that the even be driving could sheet divesting got to in wondering or your maybe you I'm at side, something might factors

definitely funding plan that see. of say funding the finish today, what we've What set over XXXX Lake the I Well, we're the any be funding Linda is, piece plan see. we equity we've having to the see we change securing it I'm progress we But we in for if you we see to based they're that change. projects. the further respect really those, BC, I the decided can't with change to that were which see real funding capital on right extra change going We're get then how pretty in just on if now, see successful for on know less our as or will any with could both restate to projects a Erie any in closer about. don't yes, projects we which that quite the nicely that I'm see line, don't that, I up If the significant that plan Project because in made we quite advance fund sheet, first I'm we balance glad about incrementally about, and getting to so it. some Connector conversations those in plan done pleased potentially Again certain our then,

be funding of might main asset considerations? other be the driver considering will divestitures or there And

reality David big a organic about obviously, anytime talked in Linda, M&A priority public now being on our right focusing company, not as growth.

the said in M&A on growth. that we come think if mean, laser-focused the I back that we look further to Waneta that XX opportunity. sell to And the asset, on love right. didn't wasn't getting some sense he the there the is last really we mindset was year, the asset. But for because did like have made times earnings We that in point attracted for like in the the asset market. divestitures, that Fortis, if terms everything our no at could were But you're if going question funding it that table, at When it, value we organic of time, sold was asset. when

the the market time is, capital. is of or conditions really is, forms pursuing -- opportunity the and in what what for that what at it in all point what the So you're about, need

opportunity. capital opportunities Fortis be will I a and good when look So all continue we'll rest assure to continue get of steward we the at to think

you. Thank

across is Barry, looking CEOs situation exactly I’d want this the that be organization in. to growth We just opportunities. for the our want add we Linda

Jocelyn what organically funding the we all grown is on So about. side. keep busy That's

busy. keep So we her hopefully

be like well, Well, busy sounds you're And echo going to David. I to as want everyone.

So on congratulations company. on I great to the over for to next the you best best wish Barry the you as and David this retirement. while adventure little all new a your all embark

Thank you, Linda.

Thanks.

from question ahead. next Our Scotiabank. Please comes Hope Robert go from

A bit question. of a broader

you David, I when plan? have over related versus capital you question your the as opportunities saw M&A. the look you, surprises upside some related for we plan you years for front the some at of upside back five where Looking base to to renewables. saw do upside see greatest is in guess CEO, We the

of I burner Lake think Erie are that on sitting back a upside big biggest Connector. the projects couple like probably the is there

Arizona, around think need But wind about or laid resource we are transmission systems, there either integrated can majority first over accelerate that the can years. that in the five be, storage and the that and not things there that invest or really years, to as vast looks grid starts in opportunities those interconnected stimulus additional as projects a talked add the our allow that years, earlier XX to well. in that the through ITC the energy, there'll And us big in this to particularly some XX of plan to the out can are of investments to large solar last in growth renewables next be happen if plan lot have in we've there. be integration, year, corner I also strong Midwest, earlier, clean

All right, equity with ROE through see focused potentially then reduction for interest a that's kind the of rates thicknesses continued the could question you just you that push how And maybe offset the utilities, in your lower pushback Or, there? regulatory ROEs benefiting businesses? low against more valuations but by we're helpful. seeing of do greater

I I right. realize utilities systems, my been XX-plus-percent. ROEs think I the especially cleaner keep these have U.S. ROE state thickness, see levels regulators progressing guess issues -- big I energy but be here, great won't America continue and advice, around delivering just equity the advice that to being Robert, keep settled we frankly. my in in We our investing X.XX% we doing for progress, our making North is, So, really jobs, in and

So there, there is in little here, settled, with it of there's the equity. last even three a at here was two and or bit months few been basis points like cases X.X% XX% XX%, but pressure,

in point time. not massive at seeing we're So rising this that pressure

the then, all thank you and yes, best future, Barry on David as and well. right. All all congratulations best, the the the retirement, in And

you, thank everyone. So

Rob. Thanks,

comes ahead. Mark next CIBC Capital Please Our from from question Markets. Jarvi go

that curious in that you Order in been about when have process FERC, you're hi, might morning, impact Distributed or thinking it the is for TEP terms the you just of impacted that in Arizona? Resource does or you Yes, David, Maybe what How guys guys place had IRP. place for Energy everyone. in your did DER question good decarbonization this put how

really impact Mark, it RTO. doesn't an us because not we're in

short-term are an on the only a like imbalance in being of which very market. market, We is California RTO, to having process but in kind of toll joining energy the a ISOs

perspective, good will be the to -- So can energy whether distributed our apply from doesn't overall it, really vehicles, that's wouldn't to flattening the think because I curves always you be it add that resources your think things which But load number because into now. out I of of that or can it the provide is, name efficiency which do utilities for our solar, market a cost you integrating overall any allowing the customers. that load rooftop going think flatter end to resources, provide aggregation just is jurisdiction a electric overtime, it your the I up of the better to system, larger a will goal curve

at So flattens everybody. and to price if signals, better competition for price market going like load things that the that be XXXX end with for day, curve good of better curve quarter the provides the it's

the then on And and SPP move you and some studying expect Okay. with to the MISO. maybe is team things ITC of integration that

terms facilitate or or work? ITC new be that. some that of the in think of for whether guys that helping for incremental what could wondering you in investments just is for not the growth Just outcome guess And I what what role

you there? Linda, Linda, did you that get are question?

that see XXX transmission mean, is you, did, suffering SPP, in RTOs, that opportunity by I SPP X their just the capacity. market both the in Thank But in ultimately, sort generation part they I at of before, And we announcements Yes, Yes, I have in I a is gigawatts and to same bigger the to and the guess the the mentioned is and the lack terms both the MISO just of of there's transmission the recent, the problem conducted. over process adequate are that's MISO is of lot both how yes. issue seam study a Generation from -- study Mark. of of problem. problem is queue. access process It needs some

back, premature of I terms think in so how And investments. that to it's translates capital potential standing specifically know or say,

also transmission is Generation increase fundamentally to no to have However, to think way it's say that there the only in X doubt I solve investments. issue substantial safe the is

perspective, those in that we we positives. Midwest, ITC I as of see certainly from in kind Michigan so and and think that upsides would footprint, those yes, terms our of So as definitely, see as a one how longer-term all as well Kansas about of investment or both

wind for solar, be terms you wondering would impact ITC, Hudson, and had Okay. storage of energy, in the what we've incentives? guys then and And things is incentives there a is Biden administration, in move the incentives, of Electric, Tucson like just towards for questions Blue maybe think and Central other on if just across one tax like any sort season incentives a storage,

Sure, I'll jump in there.

quicker, to that investments things be accelerate we're in needs would solar provide a plan wind little Arizona. get much integrated because could on as moving I an of it incentives down preferred from related mentioned that storage resource say at the think would to to us it that the incentives is earlier here bit and looking something some I perspective

accelerated, of cheaper, those quicker because batteries of getting could be incentives. the are use Some through

we think need also within distributed additional XXXX utility is more grid and of distribution I of And we we an distribution as Distributed can which conversation our that I investments the feeders, just that to by that can provide growth storage, our on that more mean had things for as could from big as go-forward. a well. that the think for put balance opportunity I load we're So storage, play us. going

related think a that incentives had it positive if outcome would I So very we be storage. to

answers for those thanks retirement, happy and Okay, Barry.

you, Thank Mark.

Our go Foscolos Industrial next from ahead. question comes Alliance. Please Elias from

questions Good that morning. got. I've Two

answer that theme of the sort is major would to First laser-focused to don't be can forward the we that us see properly. what or that projects might you look two if moving chance a this could and of the feel year? And the following-up -- want the maybe one to progressing? What organic that of over word that might try be at on next probability we growth those be give

stimulus offtaker. you're five-year Lake across to the hope front there, for Canada, period, we ready some out ready U.S. the we get I and obviously a plan. needing particularly next projects pushed North a those right talking capital to both -- us basically early well, go construction when Erie finish going comment and the But into drops If And just actually Connector got being to fully that across America, little Yes, we're year, probably about both queue the on over to it's have get much. and those build think on how to will permitted next focus that to and contracts I go. that we're and North and solved, an then of three-year too and of the

updated Election and that this on we projects be once And we'll priorities it I really in So think you interesting those administration's quarter big progress, the administration next we're prior every past looking, update be. have the are and we keep and continuously those the on what -- will going get see hopper. to

we'll view QX think come of that a next year. better have of I

Great. a increased maybe cents share to quantify it I possible micro I'll and warmer this dollars But be is that? costs the appreciate make going assets, millions we of try to per that color. One, to question. it we U&S I'm ask or weather look if separate at from the anyway, with the associated may

I to I answer answer it. want know don't you me do to Jocelyn, you want can, but that

are of that I can. as lag, When at million XXX rates. in U.S. -- not we said, we you look have assets about TEP’s we have included

pennies with as qualify do you math, take would regulatory you return, earning the $XXX what essentially if can fund look at basis the U.S. XX%, you When and you annually, five it your probably said offset you X.X% by lag. for come quarter. million is I or the was we year-to-date $X.XX if quarter, I a the for you're on you lag So think a look penny up

the So of equal, is that’s look but that's lag U&S. how Elias, remaining we else what of sort everything course, for at

are addition year say, that continuing invest only keeps the continuing it under would increasing, goes test you're the because business. every in approach is my historical right there by, I you day -- to

right. year this so test XXXX, is And

and some So a spot this rates capital posttest period well. will even then, is adjustments have since some these stuff as be we and more little already, additional time our resetting rate we current. get rates with year that. get been need lag in we've of that But to investing there do place, like because But

closing color. wishes that that very Thanks congratulations paths. much. at your respective of and off it you, appreciate I on I'll leave both Great,

Elias. Thanks,

Thanks, Elias.

Julien Dumoulin-Smith from Our of Bank ahead. next go comes question from America. Please

morning here. team. the good once time. go more the Hey, Thanks Congratulations, I with indeed. for outset And kudos will

Thank you.

respect renewables if outside larger with how And fit I this earlier here. MISO, to that especially to If being I grid go you for How platform and investing you it, call about traditional with right look conversation the and seen transmission something specific extent some really NextEra contracting in Obviously, projects open back effort of of you're goes or to potentially about I to the what emphasize leveraging a potentially to of want started hand-in-hand to venue ITC we think the bigger larger already push to heard processes mega for planning do you started that some the to what done admittedly renewable lines, made we've with when illusions at Erie. you've efforts. their and just hear Listen, of as throughout. can the about with SPP beyond kind get we've if does further right growth? can talking Lake a

to flattery, Rogo. me we wants transmission the do that, makes I form is so, So and with see but the NextEra I'm own Julien, future, the of that growth the just own engine smile, U.S. of it because of agree in So best right? proud as imitation and lots the big best Jim company transmission a and fact dam in really

is use common forward. term going transmission a huge think going I be to

when is has Linda And at the success case. the that clearly it of that. reasons that we're why comes far Linda marvel and some transmissions, only the So, and ahead -- of described all proud we're NextEra can to but of I

do here clearly yes, sure have amazing NextEra's transmission. growth in Grid under and continue a know, into will But from footprint reminding of the under, with infrastructure well ITC's we some the a long, I Linda to the piece David and will continue massive Canada about leadership, Think enough I Alliance drive will, to to Fortis's St. continue, agree. look times. they keep in that's folks, go on British collection an U.S. So, transmission Midwest. I'm John's, assets to of we that for is, to Columbia we for has miles across Newfoundland no, so Victoria, five small long and opportunities time going XX,XXX growth that's future. of

the future, extent it you're But leverage we're you on to the maybe something about this something opportunity? projects Is Is for? the near what to see? just that that's larger how side processes beyond maybe which here a can typical, planning what to it. address you saying see the I if to I'm the you enable Got -- renewables? transmission I'm -- would wrong in watching curious hear huge opportunities

Linda, to do some want you color? add

of those the sort of we move from got in Thanks, Julien. where sun investor materials, the significant opportunities where I talk we country or in. always mean to to parts of transmission predominantly look wind yes, in say, harvest sort solar lie more investment. Well, want harvest I that where it Yes, And the the often we the of potential not from and shines. about sure. if of our terms capital And does winds, more have blows, two and to are renewables, have incremental future terms the

outlook need is where you looking to to those well principle. MISO, look efforts order X is investment all that infrastructure interconnect in is that of sort Generation sort of essentially that if are mean longer-term come you And, all within in same resources. a equivalent transmission that of RTOs. interconnected, of the So the both essentially I And of we here part infrastructure. transmission those of answer do significant type ultimately, in as facilitate by not resources, And and at, if regional significant terms ongoing, would are of the will, essentially, the at future the the are a they there back in projects renewable and couple of build, projects both transmission SPP, as what planning taking a lot that's informed to

will definition by those, transmission So projects. large be

as kind of efforts as going movement given RTOs optimistic there. discussion very of of and from a and more the be the we're to the situation, matter there's towards what I much that current so opportunity is the more fact, within think continual renewables, the well and a as dialogue And FERC, and planning

I we I it's happen, will policies I will know, changes it's think but and a as think, take And don't transmission a just, when matter time. think if, it it happen. of of matter

pretty that of infrastructure transmission projects. we're confident investment future transmission context around we so in realize And will the large

from David Quezada Raymond from comes ahead. Please James. question next Our go

there, support I Thanks, good Election on shape certainly one are coming of potential depending renewables shifting it me. Arizona, Elections bipartisan ACC just morning, topic. everyone. mean, Maybe those kind a I'm I in But understand quick The just any up? for how is there's up. wondering, seems priorities one there like for an

don't it's seats. to Barry emphasis election think hear of based one on my from who's Hey, in the the loss and that there be shifting commission renewables, really whether on to take that the good here. I'll in Yes, any will David I ACC outcome you. backyard

we're We've current at the sitting direction. close commission, same approved Democrat. I one four end getting the think, the of that in rules really are pulling and all day, by energy the Republicans is to which got

we reasonable year, this very in I puts corner into doable. them place getting done They're both of end Energy the this and when commission year. by next close, round and maybe be rules that the think the get they'll will

that So a future energy the Arizona. a us in cleaner able transition are reasonable state as utilities manage to here to in

direct. really plan, that based resource see don't integrated on be our I to So changing

change I at a resource look And and at it's the it think same we'll approve us it the think and who's on plan integrated great based commission. Our help it. won't execute they'll plan. And

wishes echo Excellent. yourself, and going And Barry, Thanks, everyone's I’ll Thank best you. here. David. forward to

Thanks, David.

Thanks, David.

ahead. Please from Our Credit comes next Andrew Suisse. Kuske from question go

had involvement Thanks. longer-term for in Good morning. a but really you've mass away of renewables period hydro, stayed smaller Obviously, time. from scale quite

where that if really time. renewables, your So get this the the horse tipping wondering in on mindset Does in you I'm transmission this point don't race subsidies really costs and change more the just other wind, go point need to side? Or things? at you the solar, is into

Barry, I'll --

David. ahead, Go

I'll of and all Arizona, a across renewable renewables above, that's that our -- renewables Yes, to of focus get down it's we'll we at on we'll think earlier, them, Barry. have like the I on one. our large mentioned et here right building going to go base. off have and think or as ways of cetera and take focus that X,XXX megawatts can in And we're to part I energy that do renewables, and to going the in possible familiar integrated that's looking energy much are that but Thanks, key table. resource megawatts think into need we of X,XXX hoping of opportunity We're I I X,XXX plan. When we're by rate end big. add of X,XXX to the mean, as if there's that's more as storage, And, just the system year, the going next storage. integrating of rest on something the more we to infrastructure of have you adding renewables our not to contracted be for become utilities. regulated large

just Linda that on whether just it's it's And nitpicky just OpEx I for would on ITC. happening is the just give you that then Okay, great. Jocelyn And that front? be What's or some If color, question, great. for maybe noticed a could down.

why on Linda, you offer don't that? thoughts your

the in mean, believe, that, essentially for given our took significant economic we're a mean and of in action back all curtail ratepayers. economic early O&M construct the benefit downturn on our Sure, you our as took our businesses actions the O&M impact spending customers. early to have April, And customers $XX saw when I down say know, all impact, and some yes, We March, year-to-date, expense. regulatory have, I of our pandemic, early down, were is I we we certainly to we significantly And, on just no we sort that's of O&M we in the our pass-through when pass-through is of And -- of rate reduction you that happy may the O&M is impact earnings expenses. don't dollar our dollar but million as it spend don't has essentially know, straight every ITC. for a we a about expense collect

Our Financial. from next Patrick Bank Kenny question go Please from comes ahead. National

Yes, good morning.

Just look forward Alberta. to

year province quite steady. Your at their step looks it XX%. capital main plan peer down is tune holding the like about budget, is your experiencing the in to a But least capital of in this

relatively your in CAGR be the at pressure could still continued local despite lowest thoughts portfolio, will rate you the resilient the profile the being just So maybe on is base growth why share your Alberta X% economy? on

in in poles. people offer remind like how system I is to call. a reliable Mosher the of sure require a kilometers system million that can The Mike a Pat. amount of investment annual that. we of large XXX,XXX does line, Thanks, itself own way. Michael always thoughts make some on operates significant on Alberta, it's

a Mike, drives offer CapEx. But your of that So thoughts? lot you can that

Sure, only said, Barry. we we distribution are a reductions growth, while only we distribution agree have obviously seen growth. Thanks. And in still company just sort I we system. And would have massive in just customer of And the Alberta. as operate when customer totally -- Barry

of last sort lots we have as five to of So we modernizing to mile, deploying reliability still by sort are in schemes, a infrastructure. reliability of delivering XX% our the years. distribution still of investment customers. that last improved serve We've automation over lot significant our We're benefits make

while capital runway. we still have a subsided, have we the has So growth quite that the

upside of see any be just whether near-term Okay, Provincial And to we you shifting that, to over then CapEx other government, that's going related its policies forward. infrastructure electrolyzers, into great. And their putting Thanks energy the investing perhaps in if majority it so BC, Election, clean shoulder to related RNG following production? really that. wondering might landfill or the for more back see boosting on various

to I'm to going you. over But to Pat. comments. Pat, Thanks, one Roger, this pitch offer just again some

understands Energy value British even business is and was Columbia. the So Premier he he opposition, our distribution of we of the -- space. have critic, our with in when Horgan the was he very familiar gas And in

hopeful So opportunities know get I clean the team I'm we Columbia. Roger have the can really his on continue really there that going, they Roger? work as pathway, to and energy Provincial in well got the with help some British excited economy government can and

Barry. Thanks,

trends response more further the Barry's the, for NEP be renewable side. will think the I

platform Election they're zero think talked I be going to the that's federally. at clear they were pretty that in about looking target been net their

the We're green investment in years clean advancing good strategy real hydrogen. gas So government as I sector. don't with had think of a couple last on any bunkering some them dusting with and the of the discussions over natural focus. for marine on We've discussions the

I see any that I don't it'll there. be from from perspective, business think usual. change So as

I we will think some opportunities. have So

As quite time far take near-term as execution. planning things a capital bit these as as the I of think far the and

So continued and while near-term I'm long-term. see on, over definitely sure we'll we're but trajectory not support increased it's the the for capital,

Okay, Barry, all retirement, the thanks, in congrats. and best everybody,

Thanks, Patrick.

like to to any Amaimo I'd call And closing questions. back further Ms. remarks. no the for showing I'm turn

Thank you.

your great further quarter We and Please should for day. in Relations, participating Thank have for Thank results at you time Investor a time. this have you our further. contact XXXX call. need anything third nothing you

you may concludes conference ladies for disconnect. you and and This Thank participating, today's gentlemen. now