Fortis (FTS) 29 Jul 212021 Q2 Earnings call transcript

Welcome to the Fortis Q2 2021 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. [Operator Instructions] At this time, I would like to turn the conference over to Stephanie Amaimo. Please go ahead, Ms. Amaimo.

Perry, morning conference welcome by Senior call. President CEO; good quarter Fortis' David Management and CFO; and results and as XXXX I Jocelyn certain team, Stales as everyone. of CEOs to And second Hutchens, other well Thanks, members VP from the subsidiaries. Executive am joined

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

you, fundamentals strong of The quarter. our underlying and long-term remained the second in everyone. company good Thank morning,

to sustainability also volatility. be we us and website. and can on initiatives. headwinds see-through employees, our see even this report Today, impacts utilities our footprint, severe green the update, pandemic withstand recovery manage in started foreign economic foundation to our our of events from reliable our our The communities jurisdictions. This service exchange allows We continue through our maintained weather priorities safety on solid across the like the XXXX see progress found to of effectively customers across growth and our investments highlights which regulated and during shoots issued of sustainability

that as climate of announced has taskforce or disclosures a we for supporter TCFD. on Fortis Additionally, related financial the signed

the our last of warm and have reopening With and quarter little a from second restrictions from year. corresponding businesses weather, help with of sales pandemic the easing improved

an overall contributed increase commercial utilities. the our While portfolio of and in pandemic. surrounding industrial across Increased uncertainty sales to activity remains

most a exposure in higher retail X% our As recall, to and may weather in you commercial changes UNS sales and to segment UNS. the and contributed industrial increase in sales. have at sales Favorable other electric Arizona

up the our recovery quarter, sales the of were the electric ongoing segment, driven in the by for tourism mainly X% For industry other Caribbean.

to Turning to Slide future. the progress energy Notably update XXXX X, are to by just emissions long-term This the our reduced X in removing building target XXXX to road support we emissions carbon the vehicles at progress levels, to XXX,XXX Transitioning strategy. our our sustainability year. XXXX, we over from grid cleaner XX%, details equating compared XX% one to out Scope of towards in reduce by XXXX heart making and a marks the measurable is the renewables

our SASB. top highlights it of XX also best achieved Board indicators Standards a XXXX, also reliability or XX Accounting industry relative align update our to we quartile includes performance which new with performance Sustainability in delivered and that performance Our safety peers, and key

to step continuing a of the XXXX. supporter. energy We ESG recommendations signing update delivery our our and solidifying a commitment TCFD in scenario and expanding to by climate are We're businesses, to our disclosures pleased expect by our in another to as resiliency the analyses on provide we assess journey report our progress

forward liquefied and and investments. of expected base of track. in is low annual gas plan billion remains capital natural and $XX.X through billion for base XXXX half in capital $X.X benefit by of opportunities generation of base with our extensively plan supporting As an renewables to beyond in $XX battery make capital a five-year and interconnections as growth renewable billion to Slide of our gas our such rate over our for risk plan, this plan Since renewable on developments. $X.X the supports average the cleaner X% first highlights to infrastructure. capital we billion capital and rate our in growth last I utilities extend our billion from This our strategy and XXXX, of year all $XX will expand XXXX regulated the The solar approximately plan continue Slide billion our covered sustainability delivery recent full to we $XX.X XXXX. Through increase supports nearly quarter, balanced few includes systems. energy wind, briefly X teams dollars discuss energy storage push And investments natural topic X, customers.

connector independent electric Erie into Lake In ISO government proposed operator to or progress. May, to the contract the ITC, Ontario at negotiations. system transmission project continues the First authorized enter

stages to negotiation regional the interconnection in recognition report processes. the transmission needed of of investments this and expected to infrastructure in proposed the by the to the We are year. facilitate see processes. planning, issued back teams of THE allocation and to on engaged generator Earlier that carbon Commission's [Berk] actively to end a is encouraging are ISO lower comments transmission these early cost rulemaking substantial Overall, in an it's notice month, advanced are solicit future and our government

Lastly, risk confident use that infrastructure our well at their be as we dividend average distribution decarbonize existing X% greenhouse the the natural utilize province. XXXX. through reduction to and in strategy, hydrogen annual consecutive to emissions, reduce in and our remain renewable of hydrogen The natural increase growth gas revised gas production will and low guidance as natural allow renewable years and Fortis growth production gas of continues coupled BC, a our amended increases, Recently, advance emissions in the greenhouse priority. British the dividend With of regulation customer XX our gas reducing to economy. will regulations Columbia gases with

to quarter I second an for results. Jocelyn Now, turn over on update will call financial the our

good David. you, And Thank morning, everyone.

XXXX. adjusted common was of than earnings quarter quarter lower net the $X.XX second million, per $XXX $X.XX For or share the

a compared to second impact quarter the the $X.XX U.S. for this unfavorably of to rate And results by XXXX. was $X.X. $X.XX in quarterly The dollar was quarter. dollar quarter the for exchange impacted exchange significant Foreign Canadian

by per that are earnings higher, $X.XX our and was mainly earnings growth driven So exchange higher in share Caribbean. base excluding impacts the regulated utilities rate and Arizona foreign

For higher $X.XX was six common June ended net the the of FX same period or of despite than growth year-to-date. $X.XX XXXX, share adjusted XXXX. per this million earnings months $X.XX $XXX the in impact And

timing noted the investments. drivers on Excluding same the $X.XX for FX Slide earnings as by for the retirement increased XX of the highlights impacts earnings segment. as quarter reflecting per share quarter, some well factors EPS

EPS quarter. the and electric increased $X.XX for utilities by Our U.S. gas

tempered were with the average And mainly costs impacted And exchange rates by effective in tax of Power to decreased $X.XX in rate lower utilities both weather. rate other the warmer dollar associated lower outstanding $X.XX. operating the increase contributed unfavorably by Fortis operating the the for related pandemic business $X.XX compared the corporate June Western XXXX And sales headwinds. to months At rate with higher dividend decision for at maintenance $X.XX. and rate January Alberta BC our in Our slide, higher growth in record year. in Arizona quarter Columbia decreased rate reinvestment $X.XX consolidated Electric EPS although depicted increase not by by the Hudson growth for plan U.S. In the driven primarily Caribbean Canadian program in base base issued as growth multi-year on reflects Arizona actually quarter. year. to weighted base a ITC at quarterly higher flat by last mainly changes British incurred was on with state due electric was contributed our EPS Canadian recovery discussed a tempered expenses in $X.XX higher exchange the foreign the and Earnings to our associated last quarter The to EPS sales costs Overall industry. the Springerville. despite one tourism continued planned new and by EPS of segment fact regional a mix. through at shares Tucson New as increased rate new dollar strong by timing were York, Arizona. driven of hottest at And $X.XX earnings results EPS Central the in

waterfall drivers half the XX, for of first Turning to EPS this down the Slide XXXX. breaks

and the $X.XX. most by provides EPS contributions utilities U.S. gas growing significant Our electric

electric noted and other contributed contributed and in growth margins infrastructure Our by costs And combined our driven a contributed Arizona they increase. a XXXX the of weather warmer a the EPS. quarter $X.XX ITC items and in again our believes business retirement Canadian $X.XX losses storage Hudson TEP, of based the new EPS rate At regulated at also in $X.XX The by EPS $X.XX operating for utilities to higher again A base EPS rates $X.XX. $X.XX. by Western by investments the rate increase higher our growth. production driven segment volumes EPS Caribbean similar costs. driven increase sales higher higher by energy was favorably growth and base together associated natural contributed The operating increase impact on reported lower offset Central and facility by increase rate partially recognized gas concrete segment, increased with impacted in hydroelectric

rate by program year-to-date. a dividend outstanding. expected dollar $X.XX the on impact to to decreased lower $X.XX lastly, weighted reinvestment higher U.S. our results EPS shares exchange And dollar As average with due Canadian favorably

to Turning XX. Slide

issuance, a XXXX, support the our $X in During markets proposed which refinance With million recently term debt filed utilities over Fortis capital the attractive with update ITC the of are credit issued debt mainly our our while ongoing on Inc. half plan. [indiscernible] incentives. notes. now were capital with supplemental debt programs. for notice we an debt at ITC regulated in green billion long comments facilities, available active in at capital in regulatory are position June debt rulemaking proceedings. U.S. liquidity price In And More that approximately quarter, conjunction actually coupled $XXX rates expenditure in billion with we $X notes raised issued on of their of our recent on strong supporting our maturing

regional established participation to also an with is provides [Berk] for RTO three a to eliminate adder that and ITC investment goals New that reply, ongoing York recall, cost prospective. to proposal current in settlement In impacts basis significant is may any been the A RTO RTOs. be outweigh the utilities to for In initiated and a issue would proceeding to and generic cost general future. expect RTO current XX year. to points efforts year, would ITC decision do customers has [indiscernible] have its application you BC. not rule for energy we British a or cleaner in are ongoing grow comments, Utilities Hudson's final As rate members like this still transition far ITC benefits been this utilities a years. Earlier timeframe organization proposal ROE discourage regulated highlighted and transmission policy Commission capital maintain proposing discussions retain and than [Berk’s] transmission and encourage the that all of Central for the Columbia more counter that in later

the a in ratemaking third to include exploration of BCU timetable concludes of in or The That AUC will new David. XXXX. to the a And when that lastly, the file design with including PBR ending Alberta the to I'll AUC beginning utilities steps of back performance issuing return The PBR base evidence. term now conjunction following will remarks. confirmed a XXXX, cost Next call a consider third Alberta of Fortis commission my XXXX. completion is Fortis proceeding BC Fortis the with or report PBR turn in in regulatory the initiated And term term. has rebasing service a current Alberta's

are a made to objectives XXXX And of be To capital carbon well us utilities cleaner progress Thank reduce already conclude part we've based the to solution to performing for positioned to the of on rate with the low are our you, America energy Jocelyn. growth the footprint, deliver we remainder future. North our to our in and excited year. in transition

of growth ESG profile, five-year high dividend combination outlook our X% guidance With through the growth XXXX. quality and

to opportunities over back foreseeable with to will proposition the value call growth future. for risk the now turn low extend balanced a have Stephanie. We I

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

Instructions] you. for moment first Thank question. One the please [Operator

RBC Our first Choy Markets. the with question Maurice line comes from of Capital

everyone. And good Stales. morning, Thanks,

as in on quick projects you back early that a question Just visibility this come ITC transmission And and mentioned on importance call this obviously know year. that in there quarter, I of have of obviously during investments. initial the is QX could a you of as past these announcements a been development. the remarks prepared transmission And, there lot mentioned investments. from your the recognition FERC the encouraging David, progressing first

provide as changes of of your visibility, an update with So opportunities? on to well these I to view us as could this size regards timing wonder you if the any

trying question. that seeing It's possible, FERC a the Yes, to Maurice. as related lot, that we're to quickly to here of trying a the that's question to to U.S. obstacles the indications transmission obviously remove from in down mean, the as the renewables positive to I going needed for interconnect Thanks administration for has. we're the the that rapid answer of some development be lot all goals of

those obviously that's out. of initial been Now all that year, then, plan, too can be through of has this positive in gone approval required air, a than kind particularly the together. those of some later the think with projects are punch details And that an those a the and that sort to to even for FERC, to the the up of being the in all them in timeframe bit take come that there's their accelerate and still to I update range transmission to -- by MISO time planning from potentially perspective But, Board October said, list process still sense has that all through, long those can't it's put December. MISO momentum fast, even that to timeframes going around they projects no

could mentioned back it's to a as us, of you the connector earlier list? October/December Erie Or your five-year government given could us we for go a to to year, And in call, the you do you to we provide this your do see Lake ISO from wait before update up how end plan approach and parties by you maybe the plans? need definitive able the mentioned and And get that. announcements this follow more updated being fall, to more visibility CapEx with these that

we're all, investments. so can common, it's lay when honest, start make we to you that our we that Yes, we information put these budget credibility going before to want need capital maintain it's really be some to in that more sure with that in real. And we

will MISO to and planning to visibility going like the we before see some to dollars capital connector able through process put need a be five-year plan. into So those we're

and want So we -- that's as as be kind as possibly our credible we of to our we -- that's can. transparent thing,

can't a really we is think out make into we capital going has to throw that plan. ranges, can we So, show Because there. but those all to that ranges it you believe what really be honestly

take exactly something maybe probably plan are timing that for So capital that thinking that's will it the you thinking what still later, release more and little time updated read about but actually right or then one through. the we we're a is

Proposed finish-off to and on that's tax Great very and Canada changes exciting. U.S. just the something in

any color limits Specifically those in the the update of U.S. either on in funds? deductibility minimum interest or Canada and tax any

to companies. -- there's it yet for for Fortis on flow considerable because this be bigger you deductibility just because the the a not size is need because thresholds really relates thing, the to don't interest have investments understand have the will tax but Canada, we well. you we a I of I the so applies and reliable U.S. And the under the in the capital limit of with one-year, our amount safe, forward. it it fully going interest and limit. spend where there's the any In of, which lot certainly we yes, visibility cash can to that now, company fall grid to in it a is with we're seems as deduct the intensive that know in Maurice, effort Yes, government capital to, to minimum concern again, that can And clean that regulated, part investments discussions certainly carry have structure they pretty are Canada, energy keep to a we're

this necessity investments for discussions So definitely fully sector that everyone understands well. being the as in there's had so

still early days, believe. So do it's I

much. Great, very thank you

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

update Hi, you with utility, then towards advancements where on record Tilbury like RNG side and morning, your love any to BC on of of was I held on things, an the the LNG Woodfibre we good are questions had also would and going? couple thanks, I discussions a on on RNG

in Ben. the of such a it's really Sure such gases. full reducing out conversation greenhouse BC, Yes, Fortis spectrum be a in lot gas around can always the of opportunities it's of business that to and across things the there right great do they heart looking

have line, give better that Roger. the And more than going and a much can. view actually Dall'Antonia, so we I'm he'll this over Roger to I detailed and kick to on you him of since

morning, Thanks, you Can Good Ben. Okay? hear Dave. me?

okay. Okay,

Yes we can.

on the waiting by XX the have so petajoules, BCU progress good making first petajoules. end contracts RNG, to for will eight question, of which contracts, of the a for a approval, seven Yes, us Great. got bring up we're total over we we've more couple approved QX, RNG, vote when

two into good natural So progress by XXXX, acquisition making target gas. the on of our we're renewable years

So that's process. the with year, this project their we planning Earlier initial quarter, question a assessment And the to going new environmental on well. on Tilbury, then project and this work in they're we're the filed year. still your Woodfibre, of continuing last Woodfiber, to description later definitive nothing are timing preliminary. view have

a called environmental what's engagement We'll stakeholders. QX. and the feedback detailed assessment position doing description in project office the the stakeholder a that the be in consultation file hopefully in are We take with various early phase, with to

the results hybrid QX is long-term back the maybe the the and my you're you'd to now Great, on you improved? the and results, seasonality quarter margins the storage expect? second characterize for production typically means bullish thanks for a fulsome that as question storage then normal answer. seasonality energy -- infrastructure And Would on have

results to with B call for quarter for was the respect the impacted by clearly rain, right. So Ben

I So had QX in than is we lower say production would what typical.

it that timing and rain the right? fluctuates of of rain. amount Now Because with fluctuates,

So history. would relative but was I say low to that it

so just obviously. difficult to And a one predict,

the . greenhouse think conversation, out on and Rogers have we RNG/hydrogen contract to something the mentioned number the regulations an possibility. it had mentioned actually fact systems that though neither the themselves. produce the the threw we not what's that because while for I utilities want nor Hey, for in but I I But of because to can't increased the on allowed add call, B Ben, reduction out amount believe for or I gas there he is never

sets for which it at So limit XX%, the is BC PJ. XX

look those numbers to XX was So fill lot about eight, forward we of PJ's when you Roger talking having at in a time. remaining still that contracts the over going have growth opportunity and up that to

in Okay, thanks personal more of what is typically about Jocelyn for the storage seen that. still, within below our are production the past? long-term means of for range the And that seasonality

answer some fluctuate, I'm sure it not -- XXXX. because quite conditions drought XXXX, it right? were that, I have how in to Because -- we in we've there seen Ben, know

than gigawatt in I we XXX XXXX, back hours. gigawatt went less think hours. total the But yet over year was XXX

far up So around this year, I think we're XX. somewhere

So August. do days last later believe August, depending rain July, the the on I year, the of half come

is knowing that going up of So set sort full will look. how to for us year the

[indiscernible]. Okay, you. Thank I will

Thanks Ben.

from the with comes question next Rob Scotiabank. of line Your Hope

Yes, everyone. good morning,

the of positive rather discussions to just they're now? the Like that kind enforceable to start are given of the Can counterparty especially it was want kind Erie and bureaucrats a project. up that that Connector. going outline there, happening the message Minister Just it seems what you to be to Lake like follow negotiations directed on

through project? next just walk your like kind on So can of you us steps

sheet, bring ongoing that get, contract and pre-construction Yes, our just on that things negotiations. then really, term you you at the obviously, look operation both how investments, with start O&M, terms, basis. just a you we and to sheet mean, and a allocation, the really see our the it I filling in, start term and cost to and contract on the contract construction passing share risk, about obviously, full the of back And basis is need it's or you the forth. Rob, returns out

tip from those positive they and -- So normal they negotiation, a it's, to that directed pretty was great sort to that ISO it's kind a tail enter contract a is much contract good into normalized it the project, of of negotiations. government negotiation this thought But I'll that process. signal say that

turns be we of and before lot a sheets, of of a of get to of a lot documents, And lot then a documents. then you turns involved lawyers deal. term of final the a get So course, in turns

ensuring and We had your past, kind this side? you some as a of also -- do of and and see broader term connection you of there. demand Alright, reinforcing various just dark? new the that the year/ opportunity? we'll of over but question, a the reliability a kind regarding transmission we regarding connecting And to systems greatest longer U.S. the bit grid it the see where of appreciate then, renewable geographies Is challenges take the call that. and going the new well, is renewables, don't When electric system, kind regions the kind at increasing for Or of is look as it see continue

focus much weather a all rest to because, on our that's we're basis. be here on of has a maybe lot flashy work the it The the climate Canada. operations are right? that's forward But Because doing Yes, the story. part creating we one do in too going change, impacts talk internally, that's, folks with cleaner of evaluate impact a to a of else we just the obviously, bit, of the and much more stuff how future And a the in climate quite addressing to of severe a and tend is economy flashy nowadays bit question. that in energy we about about a great stuff, U.S. change,

you like As investment value from distribution, for into down got things grids to you strengthen grid, changes everything's the that local electric chain, electrify things entire thesis all vehicles. generation that along

to and infrastructure store-in then I assets in any getting aging lot of these forgot, aren't got to a younger. there's throw you So

bank all which you to interconnecting system to the investment the transmission more full you that now when to reliability, need investments around, needs, you, from infrastructure, look So to can't going at distribution the we tell opportunities race, the that that security that the have, but the to win go renewables, load, feast. that charging of resiliency, I and get is you cybersecurity it's of is, pretty be make of good all big sure that resilient, going a stuff, them

will that, Now interconnect the the investments the degrees. is to Arizona be the the that of say end. help one like all when the like costs. all And the every you the in at will piece. bigger our transmission it can't tail things so industry, pieces. have that at the spread together be fall those would varying managing in cetera, those electrification, will economies, renewables is I renewables And electric be that look the trick because rest to and we out mean, like and across the will the And two that vehicles, have to bigger transmission, I -- at utilities out basically, et -- them affordable I rates big of a largest the them the where ITC interconnect we will more pie electrify that's But

you. Thank

Rob. bet You

of line comes next Michael Wolfe Research. with from the Sullivan Your question

morning. good Ron, Hey,

Good morning Michael.

some maybe give in how was is just offset FX question headwinds a Can first little seeing. just just you you're helping question was, to -- higher last XXXX I shaping alluded CapEx guys more the that's up? First quarter, to on color on think you

bit some there. cats Yes, dogs it's are up that here of to across be and honest, it's a a and little

nothing little not could It's that big. to and a here there. point really So we it's anything

big, to and around just and point new anything some some that others it's other in of it's is So it's its dropped some could we that yes, project not that. project. million shifting timing miss slightly, But smaller really say I'll $XXX a nothing in,

the just get this NOPR Okay, seemed of ends adders, great. had given just good a your conviction and wanted some commentary, there FERC sense has thought ultimately if all? the on RTO you And and at like case. up for latest thinking also of meeting to changed curious guys a But pretty where you

think really necessarily the absolutely a someone The are still a I on doesn't are maybe we that [suede] Well, good so strong clear. specific But really opinion case a arguments very who's have good the arguments argument. and got issue.

the need And with The is them. that the more they're bigger, passed associated having of to in by to to amount as as et order -- savings the get in of get them we the benefits need same first one RTO the customers planning, that dwarfed through we comparison and that costs market. of small is, those -- the the that and the RTO adders access transmission, RTO customers having coordination the development, and cetera are well

incentive issue, XXXX issue is other the of Power Act an bit bigger here contrary to Federal that. you an interconnect there them. actually This is So that in fact the a issue. got to to RTO. RTOs has and then I have probably a to be say bigger, and the there be to is the say has that wouldn't be big big I more that them of The requires to

remember, this philosophical run a standpoint have NOPR. of the issue does several that think I that original laundry course. part commissioners there at just adders whole to incentivizing its So this legal seem will which are additional other look that Because just from wants list a one of transmission it adder is to of of of don't and the ways like

basis treatment change know basis which from in as you the just XXX RTO points. the adder, goes of it to that points addressing a all was NOPR additional in is this that So XX actually recommending

is require all are bigger thing a efficiency order legislation an change. and as But around with of to all comport the supposed the the But investments this So RTO is other it well. and technology, how to which transmission we're XXX participant. reliability big around part for basis adder someone be still around from points require see of go the being now it, hey, into points -- basis those zero saying XX or does obviously that's perspective, interesting is, basis well XXX doesn't the will that legal points new another aspects saying

check color of Thanks New still the should wanted we thanks. the to is Yes, And the just an think just the the process some Great, kind one, that on on as of COVID I too a update in track. to for of my separate it's late on there. settlement negotiations. squeeze into And recovery last that York there and there?

those how we COVID towards proceeding, no as there's why those we -- in obviously, And they negotiations. visibility those COVID from there's on we still the come any And of of that's we those on or future we don't good much some get don't books getting think but should have historical if on great. that have to back. good And should have back precedents now. some back, new on come come -- so immediately -- we costs a real the also when. argument that why the And, have will hopefully it's costs we're we're But wrote settlement related And thing that end recovered. those perspective clear to yes, down, how those. we in Yes, path tail of

much. so Thanks thanks. Great,

Thanks, Michael.

the Your Jarvi question comes Mark CIBC. next the from with line

Mark. morning Good

base wondering standard, utility help sort proposal? is to question impacts whether to what energy I most seems that clean for, that limitations or of just that with it might just of but rate obviously, TEP that anything First guess, not about come of importantly, or proposed just wondering on how implications but goes like to decarbonize sort kind be for or even challenges probably the faster, the positive be

a Law? if Yes, Federal Federal while Regulation talking about it the Is so the standard, energy clean from that you're passed gets standpoint,

Yes.

actually in it's portfolio standard. the Arizona now within rules years on of about Corporation a renewable right Commission's their So proposed I think couple

versus integrated it's XXXX, So XX XX in is in in -- and standard, which the in we will XXXX, in have Arizona we both our path resource current out meet that plan our those. of laid frankly, our

use little wrong, materials investments over plant by -- to we're TEP looking it shuts going But to a -- is conversation. reduce the a all And for keep -- renewables So -- shutdown may of renewables, what the for we're till the et cost energy more and what we some of rest that the maybe less reduce some bills, some forward capacity, to have those -- might really have we the that it be we we're renewables. at cost be renewable infrastructure might on see other to be it time. need closure further we're going don't coal waiting these inflation's of cetera, able an accelerating are will from of coal, increase will dates. are that will in things But, to way to maybe bring closer capacity, really of those are possibility other the till get of that see those a later standpoint, and acceleration cost obviously, that the me that's

on got have our wind low storage. investment infrastructure fuel we we of accelerate coal up, cost can before we're plan. those and And see -- solar, trading the impact, plants costs fuel are in rate a timeline of and want smooth, cognizant this the like resource story trajectory, So keeping it. definitely we a great that lot sure those we integrated we OpEx how overall we nice, lined return And for of make really of have that the to that to see we our and we're for so on

some if the really I targets? are between the listened the comments, federal material more given and there So on similar having fact state the to just margin, then impact your a alignment you're that target

the brought Yes, there's really to Because this we've to it. XX megawatt be before from and on talked about a of we with X,XXX go this going of a can storage accelerate whether and number, to it's there we renewables goal. we just much, down -- drop just but yes, again, got XXX still energy renewables, storage from I not perspective in get XXX it's that or a standard isn't about because of a on in wind megawatts clean difference those Arizona, can brought -- we megawatt lot we X,XXX facility, PPA to of XXXX megawatts megawatts got solar

about, plan today. here of And past we talking the majority see vast is that we lots as that opportunity. are So investment five-year

opportunity there we XXXX. first will out reminder five six how as where down next just that -- in plant accelerated trying shutting it be in in is to So year that the we're that also comes in, our big figure is a the Or plan? is coal year have

So we got to that shutdown. make support investments to be able to

you you you How on it return it. talk get thinking current certain Got any has about to ourselves and you're terms exposure? small and risk just sort hit I don't And bit about a sort the too is about has some and risk in probably you whatnot. portion and think to returns want be much. to that management And how ahead like to perspective. yourself maybe for one of then open just think But the much merchant leave objective, contract day of of coming about outsiders project, that contracted, -- back when do to how and of a exposure then Lake IRR

customer all merchant one with and sole now. take deal. it. the our of right we're it'll Yes, be all That's the sealed ISO, delivered contractor, current [indiscernible] big negotiation this No they'll signed, is in and one and that contract exposure,

Thanks Got it. for clarifying.

welcome. You’re

Your line the Suisse. with Credit next from Andrew of comes Kuske question

on in long the bunch question whether Jocelyn. depending I guess regulated credit How degree with a the for wants base you how green morning. to financing and revolves of Thanks, just with look these a the received, you regulated at greater interplay Like about And of or sort it that initiatives bonds around initiatives a export it. be good first green doctrines they really the what's just effectively capital doctrines about or various adders could initiatives not? is the asset financing think structure? facilities do

So the if perspective Andrew, in hear utilities. about asking you if correctly, us think forward just green I I going financings our regulated our on

going uptake a grid. the segregating pricing all I called where make with the they're recently identify of actually the was I right, phase resources think to having the even started seeing I lot recent their seeing most to greener from suspect, the same. now green [indiscernible] to and capital, it. and utilities our ITC is transmission renewable that's interconnecting already see mean, a the see we've think around to you're And we're also across a all investing grid I about to this. we're and do our of right how conversations we're it's reliability some perspective, stronger

more we evolve and we're But to respect little wanting do and into seeing more so our I will to going credit think to it, us do pricing. just So positive investors pricing see you're they some of with see it are far, a facilities. going And to are this.

So a forward. trend yes, going for definitely it's more

fact you to going effectively and apps that future up great, Do a doctrines basically That's given across and the going into ratepayers premium, investor the comment, regulatory as expected? required then the this appetite, build in that be where and to starting green board to benefit. maybe and there's this just to follow see is where regulatory are

our in don't the ultimately, it'd overtime. Andrew. of But ratemaking for required, works. be be will anything for that's ratemaking I think to reduce ultimately costs benefit way regulated And mean, customers that do I -- the we

it. think, is as the not market doing I get could regulator have they're utilities for Because could asked of this, get the [indiscernible] yes, why by to where this doing we if they customers. potentially not are a we benefit that

I we're see as don't If this I the no, demanding we some we're not space. have it see -- this we better do to do no as good in don't I not in why be reasons I see, see yes, but regulator's we'll space, that it. doing So which it,

Okay, you've efforts signed-off long and RNG. that's and contract by requirement big the over comes you with up under way unfold may, on think next you've number? just RNG, And the the one if final helpful. then is is reallydoctrines? how BCUC still way gone it very back several commitment the Obviously, the does a to and one, the to that a I go. really got match that years And those How do

trying in customers Yes, their they're suitable we transition it renewable hopefully, on and course, the the pace RNG with BC three of what -- mentioned, and times to or there the cost folks and sure. for is that's playbook. that's balancing resources. that that that in and so is hydrogen the our are curve they've right of to these I or like already, And making the for the as the is regulators at out, over we've costs how investments for working center opportunities it's blend calculus And the to the got do part is something in that whether the think, we additional plan figure and sure put exactly of looking what of of it's eventually four

great. that's Okay, Thank you much. very

the comes with Your from Raymond of Quezada David next question line James.

little going FREC advance need premature step opportunity? it and still Do for larger morning, multiple My the opportunities everyone. guess planning you guess, of to potentially, potentially of comments is Erie projects? forward, transmission here, up I you on with is first you have Lake a ITC, to just Good interested on that Thanks. any question going rolling reforms I'm increased forward in Or prepare guess, how I I out scale at that this point? electric

-- right the to to know good to that. who of as you. going hear you a from you me And, on ITC. she I'm Good morning, over one first-off, kick Yes, good let the view well, Linda David. give that will CEO

some group regional we've within I will to some David. the Yes, broader taken create, good will look, if subset you what Yes, of say already morning, our new I Good say, inter of planning will, I of some planning a steps, department, realignment, -- opportunities. question. regional at would think would is you if sort look to if you

by focus, say on there's So, attention where and not staffing and realignment We put before, at all with at I discussed we've outcomes. said this what priority some focus is were much anticipated working, hand-in-hand about yet ITCs large, is I've But have has up. terms more would a point certainly of internal we're these been we where its in in focus more consistent to sort today priorities of and transmission been as of line along. and being or talked arrived and point,

have I that the much performed of where studies this with isn't this are in So or revelations, is, of of new of we're directionally been think a many going. lot new sort consistent,

major specific materialize, consultants, or work folks So design to this when to the line we projects extent with outside -- we firms and engineering our engineering outfits point, folks, not at hand-in-hand engineering or some certainly that, assist.

so And as internal though of where focus has with of our some good along as as stead pretty kind feel we all well realignments the in we're been.

certainly I to sort So I where I Erie further think project, of and the the there necessary think get there, but feeling with are when realignment are design, identified. that. going the ongoing certainly operation we reality. importantly, But construction, that executed with we're where the and Lake of But at additional maintenance those will project. the to resources be that's we and potentially that assist comfortable to pretty have plans point most Certainly, Erie been we we're to think certainly on how and staffing obviously certainly, closer Lake haven't becomes on gotten have

just on just maybe other class That's topic great follow color. Thank inflation Linda. for one Appreciate that. And on of you, renewables. me up the

cost of turbine hikes coming. to where As you have wind you relates that's suppliers you're XX% Would little solar are suggesting the procuring that and what consistent increase a is say bit with it that cost Are understand actively are is a in in anecdotally, of broadly seeing? you're equipment some today, in price to also roll-out that there. suggested people the seeing the market XX% Arizona, the I

have David, projects There's Energy Center developing that I [indiscernible] PPA. then to was we're don't that because be honest, that mentioned, right was and the, not doubt also a basically we ground no this anything latter the we're now,

planned costs finished -- these and and on for been had has has was being construction constructed ground that. and been, obviously involved in years also of out increases or we So And books hit. any weren't engaged the before we

though, -- So the we and we as we go forward, really anything immediate in have queue. don't

have. other and for well, or might we're that you're looking and some the RFPs out, over putting next start maybe forward timeline hearing start and start of out in anecdotal and years. that we're at the So when stories next others we it's looking that seeing we the go several but projects whenever, to We year as supply see situations -- it, the

That's great. Thanks, in get I'll David. queue. back

thanks. Okay,

line the Weekes IA from comes of Matthew Capital question next with Markets. The

taking for you my Thank morning. questions. Good

comments, on really then Md&A happening focusing from it recovery rebound sort strong talked it were earnings growth of the there's and rate looks the quite in Just about quarter there quite that's you as Caribbean. the strong was in the like tourism based And a we that recovery seeing go you able any saw in the that there wondering you'd for through in one you're other to comment general for and of quarter as be if impacts outlook the the now, sort and was I then QX the on Caribbean? two, here well,

you we But even construction of borders in it year, pretty pursue but Yes, improvement open QX the was, we're are And during was borders uptick market. are the last have intense now Matthew, in are tourism but closed. even not Turks here seeing QX, they throughout But that are the borders the obviously with we over though COVID XXXX. also seeing wide an clearly, XXXX, was see, impacted open. particular,

a lot there's of new hotels built. So being

tourism for build-off, a So there's probably of right lot the activity.

is trend but some I going This So Clearly right but else to is expectation expected seeing go construction forward, continue, it. we positive in hoping that but in activity seeing is roll-outs keep that watching we two continue watching right, now are with in we're the light we're those vaccination it's everyone uptick We're the the And Turks. it to Caribbean, utilities. there's what continue. to going seeing in variance to and we're watching respect suspect to

That's call I'll back. it turn you. for the thank Okay, me.

Matthew. Thanks,

Our of Bank line the America. Dariusz comes with question Lozny of from next

good for question. you Thank taking my Hey, morning.

ask your how resource I in taking potentially to about exports. think Arizona, you wanted quickly as of late California long-term to informing curious Just adequacy And steps you're Arizona. about know how about limit some just is planning thinking that's

plan timing long-term shutdowns. the Yes, that's our -- of coal plant our it's definitely informing and

a dispatchable As it. down And that place with through can lived on provides the before replace we're we we've capacity it. I call that not mentioned know have system that we in anything summer shutting earlier a

than those it even make actions, to the new were resources. that additional use in a can we the additional higher to Like we load. we we actually of our normal in that our in that sure to the principle. because additional general sure peak I made and of peak get able the we before our June And Arizona to take team kind that's have serve -- that did because or historical make summer that higher than set And through customers. that So all did we think, this capacity preps of had event did

our to make ones indication installations battery that where in everything down, and something that a California energy shut broader continue essence obviously has the and some, that's or continue and are of shut is lot was to that our also from been through But lot There's we precluding front flows California, our protect I as more on were filings So out summer have of a regulatory were that in -- through on to mind. flows can just state Arizona, to Arizona actually asking at doing were looking we perspective. of it's going utility been well. customers. regional that. have situation, And this down, rehearing we for to look a FERC and a that we which and very a good we particular, to it on regional some brought from that a California there are obviously have that like think distressed sure about But that, there resources, to from on

I we've because perspective, is you across And in the almost, the America and essence the heat this North next. years. from in world it's every one, seen of had particularly coming of America, for past utilities North if front weather So mind you area two across think haven't on CEO every extremes, over

sure got interconnecting of up with to out load. it and the is that RTOs everyone's the ways serve and best can beef building So of doesn't make that the to happen doing they what And at one all because them frankly, capacity they're to transmission. doing ability those once that, then

transmission. around bigger, conversation key into And fall so has that picture another that's broader to that

detailed QX like is of And tax some Thank considerations. you you more between more just at forward that year? think with on that that something Just how quarter, the drag the the carry [indiscernible]? heard I it if this remarks perhaps $X.XX quarters? for that QX? in item One you Okay, balance answer. that was curious that guys great. of I for about I state and Is a opening to of the you Or at is reported the timing the think expect can.

Yes, no, that's issue. XXXX more of a

in So to regional we up following back we lower the had mix. a And consolidated It's a because just a XXXX. state sales benefit. tax, which change XXXX, benefit our in elected do it's that's in

of some is driven And COVID. obviously by that

not So so it a a expect just But year-over-year. XXXX. while thing, expecting $X.XX go benefit is a And in we is still benefit lower for yes, forward. it's it's all XXXX

I'll it thank back. very turn Great, you much.

National Patrick next Your the Kenny line question comes Financial. from with of Bank

guys guess confirmed that you case I significant infrastructure about? I I and check that that experienced worst or some to require near-term haven't wanted that the concerned to capital on wildfire any electric liabilities situation be might your might good morning. damage any just guess you repair Yes, in BC scenario, to

that turn that couple Dall'Antonia, and daily heat in events first in. Patrick, weather that had had because Yes, he'll he going able Roger to our it all fill the flooding. the actually, months gives to some thanks you We've us I'm to severe whether for I over obviously we But that updates of on droughts, question, across summer. it's footprint, fires, mean, just be

Thanks, Patrick.

more still think wildfires. So, XXX I there's situation under the BC active a state emergency, of than

electric quickly we for really on us impacting have the right is of the the side of Just concern [indiscernible] business. that on Nothing gas on the of on are impacted. area though in the two business. The area, been have the alert we directly now side lines

at other through service, haven't have those this to the Z we're treatment We we The to quite in recently, a repair will some the issues. to factor, extent point real customers of there do we treatment transmission fluid. rate to significant No have this situation but assessment, or able any feed do impact liability able repairs and expect will take is We few meet. full gone assess. exogamous to means, We because be for structures. lost have a back to structures don't fighting do our see time things structure on repairs just be like we do in that factor wildfire

the great. that's Okay, appreciate I update.

Thanks, Patrick.

And thank you.

like As any questions, further call turn back remarks. there I are Amaimo Ms. would the no for closing to to

Stales. you, Thank

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