Fortis (FTS) 29 Oct 212021 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Phyllis, and I will be your conference operator today. Welcome to the Fortis Q3 2021 Results and New Year Five Year Capital Outlook Conference Call and Webcast. [Operator Instructions] At this time, I would like to turn the conference over to Stephanie Amaimo. Please go ahead, Ms. Amaimo.

Hutchens, morning, and welcome Outlook CFO; New I'm subsidiaries. by good Quarter Fortis' Conference other and Jocelyn as joined Results CEO; CEOs senior XXXX Five David as members Phyllis, of everyone, VP management to and Third Call. Perry, the Thanks Executive and team and well President Year certain Capital from

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

Foreign exchange you core by pandemic. operations absent Today quarter service pleased navigating third the report in our results reflect and third our we strong we cooler results deliver a rate while lower than On year-to-date exchange. moderated strong everyone. and basis, growth delivered earnings as foreign a and Arizona. good to quarter reliable weather continue normal through are to Thank we have Financially, morning, safe

billion We through billion plan September. are capital for XXXX on track invested with $X.X deliver to $X.X our

we of increase consecutive are dividend record of a Additionally, approximately we X% years dividend of. recently very proud XX announced increases, a marking

we our Chief best he and the our you appreciate note, I'd leadership me seven has for I'd Jim here that my his Development. many Many Senior Jim, have know a the been the year Technology businesses new Last Jim, advice Stuart Business President the we Fortis' at Development, our developments Lochray, of recent Vice you discuss years. industry to quarter, over of for Executive announced in guidance, building the across from on at our on the and and contributions third to Vice Officer. and We into the Fortis, you in to of sincere Stuart like express getting announced years. all as And strategy. President end role to working Markets retirement. support gratitude his five Capital momentum friendship these the retire family growth in and given look Business wish and Fortis. month, welcome like the year we will your of and the on execute Also, appointment Laurito plan, of personal last to immense Jim to as Vinita Before executive forward

annual rate Turning our extend risk showing This now $XX approximately five into billion plan base to Slide strong growth. from XXXX, again to to the plan year average of balanced of translate through expected X%. ability X, once new our organic is investment low calls underlying approximately XXXX growth our for

billion enhancements track by on annually. Drivers or assumed of same and capital additional cleaner in of XXXX. future of which a $XX exceeding we're growth we that transmission $XX long York invest to New our lower to infrastructure that and over utilities. X% reduced new capital our rolled capital way rate plan investments The $XXX reliability This rate, The $X base Well, incremental growth billion on listed small decreases at is remainder cleaner investments of five approximately million, executable the energy. customer now regulated plan and $X billion highly average $XXX transaction a of closed, Stock XXXX, of consisting Exchange. relatively growth, in seemed we've of a translated at exchange billion and into plan. XX% major on energy The ambitious the invests by period, time; that was and in for what shows capacity, we since include year and just billion plan million. projects. ITC $X define is as includes XXXX energy the Our approximately first of supports consists five a acquired X% the projects, approximately year Fortis' with capital new those or plan the plan capital come After when October out through increase

Our project $XXX will gas address the Capacity plan natural of region existing transmission the system. customer in growth that the such expansion projects, includes million Upgrade Okanagan including XX at FortisBC through

As future. hand plan the new energy to of all left X highlights our the chart cleaner energy on of supports side slide the nearly and pie a delivery, capital transition

our invest to at projects mainly also energy integrated in megawatts resource planning in megawatts distributed and in driven support is energy sustainability ITC. Electric technologies the our Investments Our plan. in Power are utilities, Transmission million renewables energy to renewable Midwest, our utilities compared Tucson another X,XXX and expects investments of Columbia, the Project storage US including projects. billion increase for multi Ontario, megawatts through XXX investments by initiatives of gas Electric British Canadian in its Power resource and energy plans Caribbean investments Arizona, renewables, battery $XXX energy and interconnect Alberta. plan clean Wataynikaneyap and renewable to At and This cleaner increase include invest interconnections $X.X XXXX. In XXXX, storage and alternative value in support prior a and the and liquefied coal XX in in transmission Arizona by natural energy integration interconnections to to Western additional exit of ITC solar in in of strategy. and generator Gas investments

Springville beginning at are on the operations in by of cleaner emissions next XX% path nearly we well energy Generating investment carbon target year Generating closure meet reduction continued track X infrastructure, reduction Juan as San the we emissions million emissions XXXX. the With to Our is on XXXX. Station, planned in reduce our carbon tonnes target our Station by the of seasonal and

target is reliable communities. providing to assets balanced service XXXX expect delivery related impacted renewable By of carbon and while will Our we be and affordable ensures generation. our energy and for support XX% and free time

our vehicles, Beyond working focused and on scope interconnections, reducing and their greenhouse emissions. all Scope to other three RNG missions gas investments in X emissions efforts, efficiency improving utilities we of environmental renewable initiatives, economy to are including electric energy LNG, reduce wide footprint, are two their and

supports of utilities. Central to in carbon across information continues growth upgrades, portfolio rate steady with In low the our driven to of footprint, investments infrastructure annual our base technology. already growth plan addition over rate by the Hudson base X% and way improving lead capital also average

increase base plan Our UNS will to is an and in expected base to mainly $XX Energy. approximately $XX BC, rate base average rate consolidated X% XXXX, billion driven XXXX. be by approximately annual growth nearly growth Fortis in supporting from $XX The XXXX, three by ITC, our utilities, rate billion through largest billion of

have reflected which today. our other growth plan at and our not in extend We could expand opportunities capital are regulated utilities many that

acceleration these current support gas the as in plan Midwest a could As emissions. discussed, in optimistic range United to transition strategically positioned complement be the and renewable gas and we will as The will organic to transmission decarbonized MISO Whether coal the North a Lake clarity transmission greenhouse Erie economy beyond have project a will expect needed invest FortisBC, customer long our clean roadmap to renewable transmission previously be its required be energy greenhouse we a growth opportunities, these our year. States. in have Power's remain XXXX. is additions plan and or gas order our integrated plan, to investments strategy transition potential support of large energy in plan. emissions continues to the Arizona, exit Connector additional incremental natural in America, secure storage reducing In In opportunities hydrogen, we generation we infrastructure support in of clean additive in investments be next BCs to to At to Tucson XXXX customer and that will renewables able on Electric it's to reduce that priority. early well resource require to light battery LNG, ITC the

Next, recent I'll commodity on prices the are pandemic economy. a supply of impacts increases the discussing in moment having given spend and chain the considerations

First, in in New we increases utilities impacting natural are seeing gas which our prices, and British Arizona are Columbia, York.

recovered expected ultimately persist. recovery for regulatory they're and our is to while customers' This costs higher costs policies rates from jurisdiction, hedging While customers. vary these these by mechanisms increase

conservation focused the We As on mechanisms possible. prices decrease. allow and programs to moderate through mitigating those energy rates will remain customer bill wherever impacts same efficiency

enterprise through our manage will communities affordable to continue our to and also serve. efforts to costs service improvements across the We process we innovation maintain

relates supply requirements, to Fortis buying, supply and maintain have supply minor our had operating chain, concerns. with group of the service to to managing is our only execution supplier ensure coordinated our capital reliable and alliances on utilizing the Notably plan. date, it we As proactively focused chain

of plan. on supply and our copper increases long-term efforts to commodities XXXX not as planning our of the year and chain ready are recent However, we our cycle length our reflected nature are currently fully price plan, for doubling be for five the and in such down Due to capital the steel beyond.

We will be evaluating forward. these impacts going

geographic as are dividend extend businesses we $X.XXX, representing And of Board last XXXX. with The an coupled energy Directors local marks through delivery of of Again, our record. approximately our declared positions X% mentioned this our of a this footprint fourth well strength end regulatory average to I increase of As to consecutive dividend annual our XX today, quarter that growth month, reaffirming dividend and increases. years X%. diverse,

for the an results. to on Now call third over we financial will quarter Jocelyn our turn update

and morning Thank good you, everyone. David

lower quarter Adjusted per Slide the quarter the of common to earnings share $X.XX, XXXX. XXXX. XX $X.XX per for the share were third quarter third of common Turning consistent reported than $X.XX with was earnings

by cooler weather quarter, a lowered in lower the $X.XX, tampered rate exchange while earnings $X.XX. EPS During Arizona foreign by

and strong base ITC, our in the at FortisAlberta these driven results Caribbean. utilities new and regulated earnings by rate at Excluding growth, rates customer impacts delivered TEP higher

months September impact nine FX this than despite of adjusted the was common EPS share, the For $X.XX per period higher $X.XX XXXX, $X.XX ended growth same year-to-date. XXXX. in was And the

in and the sales and And recent quarter, the residential commercial sales Before Notably and in drivers warmer industrial our sales than to into the an look trends see results, weather quarter. the a period of the by temperatures, getting was to offset continue same sales across touch earnings due work Arizona, the in to cooler sales. residential we from associated retail sales compared for weather conditioning with trends air to reduced X% utilities. decrease and discussed to approximately increased on were in further X% home load last normal cooler quarterly the to industrial XXXX partially Taking region, we in in impact. were similar by a quarter practices I the this equating increase in lower specific And Arizona. previous year-to-date commercial Lower want down which Alberta. and at EPS the $X.XX

see As driven hottest by home adjustment offset by highlights recorded reflecting a swaps on rate in and quarter residential lower commercial you XX sales the $X.XX ITC sales, of an increase higher EPS. in growth impacts interest Tucson EPS drivers rate weather on were Absent retail XXXX sales. during can to At month base to and from for segment. the practices, changes X% the in the Tucson record. work industrial slide third down Slide contributed partially by related quarter

Alberta. our XXXX. Our electric industry. Electric EPS for US timing to Caribbean utilities to growth, higher increase due mainly Central $X.XX weather was cooler the contributed rates Higher of the other earnings weight by the recovery concluded Energy the the impact and tourism quarter the as its new In to of the decreased gas driven realize $X.XX fourth XXXX. of as Canadian sales driven be our a and the quarter decision curves. in $X.XX is weighted EPS driven rate and the XXXX Arizona Gas of driven based in At the the market to to results segment, TEP a losses weather And expected shares January expected timing finalized consideration quarter, due favorable decrease EPS offset by average York, be due by to Canadian in favorable and of is outstanding At quarter regulated the the quarter delay outcome the effective unfavorably a in due by sales pending customer and continued plan of in US mainly compared at decreased EPS with the is this in earnings by for settled partially increased $X.XX. to higher EPS $X.XX dollar Western And EPS $X.XX expenditures dollar utilities exchange quarter. by contract New conditions through the And segment, reinvestment once to the well $X.XX of I $X.XX our at $X.X, earlier. dividend at decreased X, of associated for were Hudson decision, on quarterly by rate forward issued the this was third by natural impacts $X.XX during contracts lower decreased discussed Infrastructure by recognized.

higher a the new EPS on by through for to have due breaks EPS year-to-date year-to-date drivers to weather lower waterfall year-to-date costs. drivers same All-in-all, repeat discussed quarter TEP September. cooler the for and the Turning foreign operating at Slide rates were year-to-date XX, higher except some reflect in to down growth segment, strong myself, this largely customer underlying that And partially the not offset our utilities due to by exchange. at earnings bases earnings Arizona, sales delivered factors

running required The year issued XXXX. reinvestment debt our and with CFO plan with largely debt and five to at last our is steady our through above planning expected business ratings. to our comfortably our capital regulated to from through to new metrics Moody's fund and equity within And credit The Both to In plan XXXX. the period. approach plan is conservative average Turning be above through utilities expected to respective their capital XX% our provide maintain over funding operations, our Overall, is funding to XXXX. to current average funding and ratings consistent dividend year's plan and capital S&P take expected to cushion no us plan funded to now is continue structure expected remain positions our discrete With the S&P's ample is plan. FFO particular, we existing Moody's debt to cash thresholds plan. XX%. metric are

XX incentives. Turning developments, proposed eliminate notice first the supplemental rule in which rulemaking to to on transmission the from basis a proposes recent regulatory FERC of relation points incentives, early final to ITC awaits RTO

would Although every in basis applied any Fortis' uncertain EPS prospectively. be at annual ROE change $X.XX ITC remains potential impact impacts XX points approximately and by

proposed that of David. achieving filed, was year. July an issued state's to allow timeline York, hold XX.X% transmission and Hudson measures of reduce the Settlement settlement XX%, to the that unknown. to subject finalized. suspended of the of bill joint principle an year turn ROE cost proposal recall July York will remarks. seeking role balances a the planning, in from remains on FERC in Procedures. be plays as well procedural of And a is New Central call XXXX. and Next A rates proceeding interconnection this order in conference support the I'll the regional to other August connection year. of positive accepting refund concludes Power, the Biden ROE X% to goals. as At in third thickness Commission Tucson New quarter this XXXX, focusing progress including and The an to reached XXXX. administration's month was my The settlement this order may regulatory in FERC schedule processes. rate formula and three with you back generator Public important in reflects outcome allocation X, transmission the in fourth also climate proposal use notice an And Service technical XXXX, climate expected plan rate as initiatives to equity existing in advanced is rulemaking XX% goals. the issued of a Electric This the An impacts and underscores The and transmission of now In August, X%, layer annually proposal filed by declining in XX%, effective includes and equity

Thank you, Jocelyn.

in invest simple. It's why So Fortis?

of as plan cleaner growth turn to local our will deliver about a our Stephanie. over plan, growth, strength and five by back through term long utilities I supports new business path capital we optimistic that as we our the growth low guidance incremental risk dividend model, call demonstrated our XXXX. now us year that With diversified ahead energy remain stakeholders. We will opportunities a for future pursue the to the all offer allow

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

question comes the line of Maurice Capital first Choy Instructions] [Operator Your with from RBC Markets.

growth Thanks this growth My what in to the base question in in on change further, base and a the of achieve your you on X% any in morning. is announced, you've say translate has it terms up Good this past similar What ability thoughts growth step have and just really to pick EPS changed? and rate first X% to may versus change? translation taking a a seen has rate

Yes, thanks, morning. you again. Good to and from hear Maurice good

et we mean As and would guidance proxy longer where term give on earnings different to basis. based term obviously give on longer rate guidance like in and you a we basis rate and a and linear, to cetera business downs, don't all course expect. expect and obviously as know, earnings have a that's It's converge I investment. guidance of growth we regulatory based we what a ours somewhat cycles not but we ups would and

out something this Traditionally, extend the motivated And that guidance, in you year? Or capital your takes Thank is your it plan. with that on question to decision? guidance my which you in growth of Is lockstep guidance, a dividend else we've of you maintaining XXXX. this length you. reaffirm second growth the flexibility is case seen

plan, that And be time we hitting essence, is And and of the key. the answered course, that that record of the a tail that, support some that dividend guidance. four bucket to that, right But in think spot keeping of going US is track big And lot budget out mentioned but five to that our related year them, see there's years we investment means, all to this reconciliation paired we for in plan end faster and clean supports to mentioned, opportunities there. to But government a $X.X make obviously is trickles were what these we wanted yourself. down additional which in bill, be there's a guidance be I in. Thanks, of as us? US the of energy had of additional of we additional investments still a the translate into drive for is I it have opportunity does how question to that see we reaffirming think time. the Maurice, with yes. our that we But is sure trillion in over given we a transition think put you investments answer long the as showing that And

flexibility forecast address like be end we'd the to five in So to to of that. able year maintain some tail our

payout your quick Is then and you're and target together growth on hoping positions? first Thanks. to case, And there mind at the dividend in converge, these in have if you second you're dividend tied out for all rate a flexibility this year. balance based looking term ratio to that a EPS and to question a the a up at and maybe just follow just expect long over

to conversations Maurice. the our we every are really, situation things forward in year year have we on base directors Not going that basis. board and of on how these mean see a I with

here as have in a we today. yes, So mind don't sit we target

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

Hi, thanks, good morning.

expect quarter or segment ROE? whether you flowing the your QX, you versus of positive realize negative, mostly QX do any results that's on in do to or question First specifically, expect to

to it we the not is little we kick reverse? earnings between bit up see Yes, over do question any of any But a timing and I'll Jocelyn, those QX, there. breaking expect to or whether QX

new no We that we earnings deferral Hudson's Central moved to be to rate of in that that's we have We Yes, for because reference to expect that of QX other did have expected some outside did timing timing major timing. would the see some thanks have question. some that's QX were of now that variances Alberta, case. but But also, QX. Ben, rates quarters. in that, do Clearly, X, move we originally July Hi, effective the a earnings we between versus costs we QX.

flow comments could is it in situation commodity that through And price on you reflected the your we reflected tamper here, bake or your if with your start base prices in to that outlook plan. great. more it Okay, your were not read on commodity the more as -- rising site, side? Should a the growth CapEx that the upside being there's

have we plan. real a Ben, base That's projects. Well, capital

projects as those would So getting costs and end if costs, those then up capital built have and higher customers going be rates. on higher cetera costs, forward that would passed et costs through basis into capital a to through

do we at the wouldn't to sure control out for projects would have can of just But that to to focus cost for customers. bill it make the we So of getting because manage which our footprint end on want pay across makes them our focus closely invested we're we cost customers to the attention do our buck capital of reductions drop day, them, our those really for to the impact. the other the most one very costs on subsidiaries, entire and help us every increase bangs it

don't that with shutting to battery add a lot our and coal them projects and things a storage, actually necessarily solar Now of just down rates remember capital we these money. to for saves replacing lot have when in that our an perspective, Arizona, these are you of customer example, customers plants a from

well. of there So in there's some that as

may, would I you if rolled comments large program, last, love your on maybe smaller as scale. whether CapEx acquisitions, to updated over or that, And great. Okay, scale

them questions missed I Updated on and the -- on updated what?

communicated hear plan. or want to appetite? gone side thoughts past love if And through that past, your in you've maintained [Indiscernible] would you've upside as for in M&A look on a views know your plan hear you've Yes, slight the change to appetite the budgeting your but to the and I to down process

get familiar. capital a our Yes, $XX plan But resting deal to big is together, capital sound capital be is we're not billion deal big put a it'll really this it. and mean, a saying it'll the execute to enough. probably I plan laurels plan, billion is on big $XX

to we're and bushes the our out opportunities additional customers shaking for and be are looking for going So right investment our shareholders. stakeholders that our

we number at So continue as for are sitting for mean opportunities focus. here the to That paying add our that will in value as keep that one and shareholders not looking we're switch, asleep that market going doesn't our and on attention the to can well. things

our we like will outside define be for So have to continue been. value, to capital for fiduciaries looking always even the plan we good opportunities company,

Our comes of from the next TD with Ezergailis question Securities. line Linda

sort as in the of as to possibilities specifically any attributes, look I'm wondering hear footprint? color might relates interested you. hydrogen to see and itself of imposing commercial those whether your how leveraging opportunities technologies, manifest you possibilities within there, of carbon guardrails around geography, on competencies you what they capture, your as initiatives or at your you Thank existing range are whatever as world of or attributes in it and

wide don't cast to of any have we at investment have the probably to going risk but profile, guardrails right. pretty looking a within our these we Yes, they opportunities, fit around really Linda, because some net, return are

always for it like us. like lot to investment, an look has investment going to a regulated if we're to looked So a do

of of hydrogen we or being or capture, and different at ESG our utilization, carbon like types be looking it's we have out some sit we they're pieces things of whether have the each jurisdictions that a these meet want to that for as will our So new We don't looking that our natural them. don't at, if XX% always those as has any technologies won't don't opportunities, mind with T&D. storage, in well. testing and on picture great water. with British going return we risk -- But then and gas, Columbia, profile where we're at looking we of guardrails really be having probably investments investments that's any hydrogen we do of investments got to start renewable the the on assets one our back that. impacts And the guardrails on sustainability today But that here fit how our affects appetite,

opportunities, part you thoughts Okay, thank some financing tended you. come of are you of might or not And considering In the around top how have when the past the have the various partners equation. to at list. you maybe looked reasons. approach projects the just Those to new for

have might you you talk just opportunities financing you well. you as linked Can some approach like how Now sustainability, think about any might financing additional opportunities?

we happening, may unlikely to This it you're table, investments green plan, because timing But our the depends to everything old ourselves. you're a level, said we growth. the because the that have particularly Linda. this associated space But US. financings growth sound everything high investments, linked very and before. in absolutely going capital, correct we the the the at have of do partners is typically this with on what's in also back Jocelyn. of the like with used Yes, the see the and above with are it partners, I sustainability, additional like the base table, And to size think Thanks, energy more depends used beyond investments the of I've an on be story, on amount goes project, of but goes on

partners, everything in equity look will to from between. sales to asset at everything We and

back goes table. think everything the I So on

any taking follow might more certain pre lock spend of think costs And you. funding, about capital a conservative come? as up, rates will associated a sort you're expectation you thank approach in potentially might the given just be that the Okay, interest of that to financing kind How with going up.

thank you. Yes, Linda,

we same a hit You've the XXXX, did advanced lot it. in COVID financing. well, hit when of We thing as

financings utilities, the our would looking appropriate this. whereby and subs what within mechanisms we are shared those so in it's know regulatory whether locked of certainly yes, are costs So to cost of and you are we'll our all then of And is rate or one have financing Most rising something advance appropriate deferral structure it's it But of interest that we of all organization, do the looking advancing mechanisms interest across know. at or at a included as with were part or do PBR of options. the looking always utilities, financings regulated now our interest the I are some the where at to actually customers.

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

focus first Lake to to want when capital comment on offtakers as Erie at put you kind there next capital kind could government be plan, plan? in well discussions is of your of of plan. potential that the just kind additions everyone, and morning, Good steps of what Connector kind with the can as maybe the looking the on of that some

there's offtaker, MISO. and one the Yes, is that only

agreement this the that that not really Energy So term that end in the deal We we come back currently forth the negotiations are obviously, much to negotiations, it Minister of the that's year. requesting of contract there's in end, expect, to tell in trying do to Ontario report contract turn the the of, you back the in and middle midst of the in sheets the of and structure. is by

by going are get the done fast that So sure to of and the that the to we Minister. as we make get back can end as we report year

this kind of as additional the update of where look we including there that's And well larger opportunities FortisBC give then all us and can helpful. a move you LNG CapEx these just the some saw of connection on at Woodfibre project plan, Alright, taking kind some stand? in as an

do line. turn Roger of and to on to you who's going that? he's Roger, want over CEO that the actually address to I'm Dall'Antonia, the certainly, Yes, VC one

Yes, Rob. for good Thanks everyone. the morning, question,

potentially to to with late looking year. Woodfibre, So they end make of closely are early as Woodfibre, work as continuing FID here the as the

So progressing closely working bunkering. as look process the would Tilbury we project as us is for is on once an proponents with for opportunity EA marine the and government on hand, that in and we LNG the to expansion of I nothing the later jetty, the on now that materially quarter, expectation and right new other bunkering focus LNG think last opportunity, far that

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

more first just around long Hey, can little there? any And additional was timing on get transmission update latest the My on everyone. MISO color Good an plan? for a we expectations range of the expectations morning. question

for think get year slipped were end the Yes, to front it this be of February the And approval quite year. is MISO is should the the that the out March getting project hope in saying earlier of of indeed, going now that a basically feat we in to I MISO board study, first of be the XXXX, before with radio that in timing publicly was the of Board kind XXXX. projects those before of as those mover

sure probably So it, make than that we the we'll hear it as that that else. you anyone slid, we And which want outcome of is more to soon hear has to get all as we as well. out

approved settlements that in Okay, if potential QX, as great. any York Thanks. can there? that And pickup quantify recovery how us COVID earnings was on that remind you a order the we addressed as to follow and in my the rate it's York, and expect just just second New should from is New question

been Michael, Jocelyn. earlier have I of a this would you'll later. from probably $X.XX is say up rather recorded should than that pennies, pick what a couple see

see you'll that in QX. pick So up

in perspective, question, want on the the Charlie, your are settlement any half then of pieces to you around other details color And that. provide that from the included the on COVID

York to relation continues. New the addressed COVID, couple for Hudson, in in even generic were Central of So though a things proceeding

hold part Central requirement And obviously, comes of put for revenue COVID. our charges So on charges. finance Hudson, been finance throughout have through

did well. treatment deferral bad debts related the also, with finance for revenue get And loss as we treatment to we to get were associated charges. able So

addressed of are part of elements both but are generic proceeding, were the discussions. in those that settlement directly So our

Our next question comes Mark from Markets. Capital line Jarvi of with the CIBC

you to think frame Thanks. something hesitation any to investments rate base want to I Connector Good that, EPS be your you back project down impacts? would everyone. like the Erie rate that not -- terms base. not it's growth in Lake that like If do might road growth? or How of the morning, and to and provide come that

look Yes, basically mean, trying should it's we're a asset. a like the based of should that it kind contracted way I a that think, look you this asset to of base. I make what that rate rate is do think is like well, mimics

of are levels the equity, stuff of of return So all that part obviously, negotiation. on the

that's And should can't how that But give it. detail viewing So we now. you that's you as well. of level how we're view it

if go were kind your in forecast. sign rate sort in to put you it spending So of as quote document agreement, on that would base you unquote,

capital rate in our but would rate the in it not as number. put in No, wouldn't, we capital, base the it base, in forecast? be it the Would

of are going how Got there. on your the a done already case, yourself view you've all another guys updated obviously, the updated it, see around of Arizona, APS, rate on versus you take there maybe given this around lot utility sort opportunity give compare in you view obviously kind contracts, okay. position us of state, can your And then headlines headlines but

if from the you see the so issues Mark, I'm and out addressed I hearing, recently. this a you systemic regulatory being a the queue. And listen you'll specific I in That as I'm is far listened definitely Arizona. it, how everybody's these isn't amazed asked. or Commission from was This probably around some specific case. issue to analysis the is mind, this glad them state on the perspective case did APS' around utility a start saying the by rhetoric I some did, of I'll of you and of fell problem think that down a situation. I are think that's situation. it given And the utility question thought

Arizona, we have almost for when years, we every front I XX that things with and had, possibly with That's I've thing we commission a to utilities we do we're we that regulators transparent. we with working every in do making in make of and always and to do away that build have with perspective as important on that And relationships, I sure to maintain the can't regulatory outcomes, believe those know quickly. a and outcomes ground it because know most critical has I speaking the is we we we And been through We commission. with that because that things year these that where have that that absolutely know to sure from we just, do as was sure pretty that that's is the our you them the testifying interaction exactly you jurisdictions, that business Florida's the build we part our we make we have mentioned Now, that trust, a think that structure than trust very it ago. model RMO. a the can maintain integrity relationship been us the we less to everything fact that was going in And regulatory can of that go sure managing that people that have that hard got Commission. it the we come. the our business you good are of and this make can tell

that outcome obviously outcome different it quite what of commission different of And a a So are in But I a the still actually we than bit in rate ago, lot seeing. that treatment middle we constructive think bit got middle XXP. things There the December was not different. year less of and corporation indication, XXXX, nothing, very is in from COVID, quite the we're a got of are than you're a COVID.

shouldn't long other that the in state, that's the there a projected So way saying be utilities ours. through guess including to of I situation

to And Canada, Got back manage you and again costs. that there's base trackers assume then things chain lag, be bit just of remind and it that. us can higher like it. utilities CapEx question comments. the capital Thanks rising feel those on like pressure from PBR temporary just CapEx to on is I might coming Can costs, West sort you historical that, the on supply to and a utility the just a kind impacts a things the it where of of comment test year, regulatory some you transient for whether

you head cetera. hit would be actually as ITC that here. well, -- have trackers, Canadian inflation PBR. at retest on rates the has Yes, there, They the capital a full Western their built utilities yes, into et nail the

up. trued all gets So that gets that

that it's from costs yes, would only little really an So, Arizona drag O&M bit perspective. of on a increased capital probably see and a

Central And Hudson?

Central rate rest, that's as Hudson, to well quite on Charlie; Charlie, know don't as have want opine the I structure, that. to I the you say

structure. our a have within budgets we proof So and capital net rate targets plan

of not budget our if to kind of would experience really costs, cover increase it because project displace capital But it not project longer it may another times, higher a typically order particular costs. out a So what would is we in would periods do extend over it in go, those year.

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

where And there lot standalone Thank last concentration, can within that or noise. a broader a done morning. on years? I versus play bigger, you're you. in your US from comparable, guess, philosophy. to by it only a jurisdictional really foil off it's we could the state and Probably you competitor start And question in you've a having impacted a What's Good the with a off thought it's certain effectively a over call a and really of regulatory not regulatory Fortis your about region really a umbrella, I the jurisdiction in guess Arizona David. just question, the in home utility the UNSU as your, Arizona, as under

interesting Yes, question. Andrew, an that's

don't be to I we create regulator its really, and that we best that we or foil really and relationship. necessarily own give look transparency have utilities; to a let the our behind want can and just other think our on the we utility record to be stand hide that

done, are want We're the doing show resource broad that a competing of focused in commission, make get necessarily a that do, as sure regulators and all right. process brought to through went built integrated that have Arizona to holder is that around stakeholders. I not we that foil plan lot relationship, think it it down regulation we a the again, was everyone process those making up that we They the And state with example those in were. them together great of obviously we and -- that plans but having and not to we atmosphere interests And So and they on We policies. -- are help and policies implement around looking have days. that site show looking a have, we they that just for that's focused the kind up stay a on we're of those we to with on sure there's regulators these that of implement. or just proceeding. agendas, And regulatory everything got for want the relationships,

lines of and helpful context. along really RNG. guess the it's just That's it's R&D But question. regulation. It's next And obviously, Roger, and And the directed Good. color on more I also towards business. probably important. if it's the on really context give and the of just some color could overall But beyond. part activities just a your it's us been, in small and you It's BC

Yes, Roger, that? you to want take

thanks, Andrew. Yes,

included that amended story nicely from summer, portfolio moved greenhouse developing we quite hydrogen, RNG renewable government got allowance, regulation R&D, as BC And forestry So to fuels if based gases a in the industry. renewable XX% so Back this you around will. the and had the the BC. gas green such X% is lignin in previously additional

BCUC, gas which we have gases by with portfolio couple more of we're coming third of way renewable started, that to from I our by by contracts under XX% over a three, think XXXX, still the So contracts, three we we're signed petajoules, we there the announced included a just natural eight we probably have just file. our approved

about approaching of XX announcing to RNG. plans increase petajoules, first our two we're years So in

get to just BC track ourselves on the clean government very carbon plan well we're to is XXXX. on So which for set reduction. announced we target BC, ambitious in a

front expect So opportunities to further R&D the on come. we

there's have follow but we increasingly a can number talked one broad that. out how aspirations, And are so much and there. procurement to goals it if And of Roger, utilities I RNG your of that Because maybe on only activities? based up just

So are stage? at your how activities broad based acquisition the

North deals across Right America. now signing current we're for

contracts BC, projects; now, handful approved US and two from got I approved think, outside of have we've a of contracts Alberta we So Ontario.

pursuing. So R&D into tie grid we're that can what that anything to looking a grid from delivered American is BC can we're we perspective, really the at be North

So we have big a footprint. pretty

it is RNG increasing an I over chasing on an time that'll more why utilities, won't but agricultural, I be gas part part think will be or mix. the the simply landfill. think comment otherwise hydrogen green water be become of will increasingly still hydrogen, important Waste a or Your of important, the plants treatment fair blue, next; real just one. It's

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

everyone. good morning, Thanks,

that how longer the curious well the utilities. that industry requirements been them see regional had my how it inter planning, as regional in here the for of transmission topic FERC just planning, could on maybe concepts, I you more as some term? as just incumbent guess, around discussion discussion those guess, potential first for some question how I There's in affect on that So with developing and has transmission depth, things ITC of refusal I for first inter understand to IPC, the right relates, right,

that for that, over question, David, David. I'll Yes. turn Linda for Thanks address. to to that

good you Great. FERC I tell address it's think definitely look, will understand question. the screen. Thanks on know the it's ROFR morning. or radar Thank their I can And to specifically how that hard Yes David, issue. specifically for you.

believe also transmission order the regional made were provisions [Indiscernible] were border of some for mean, sort been there X,XXX. think have that comments that by competitive around there it indicated as the was comments these they say have provisions in competitive, XXXX I ROFR way the I should projects. of made competitive they amount of time various filed, in significant In over have realizing no stood the various that of points that comments a those

various perspective pursuing legislation ROFR have actively our ITC been we So, from at our states. in

brokers and utilities, process pursuing with a Minnesota, have along in in Iowa, ROFR we have of in other a Michigan. in we the We are ROFR

I kind not RTO. would are right So of US issue in footprints, protect But their apply, can the to under holistically. members our regional now, think I in we first half right provisions reinstate do the the transmission of ROFRs are of don't states because think the future competitive covered Because to address the the of are any needs more approximately that terms in certainly FERC extent refusal it in us projects. an

at in And we're sort a way investment way the that FERC green facilitate these competitive holistic least really the economy. to the not currently it's proposal, that have transmission it's So needed provisions new the and of stood structured. realizing understands hopeful of

in of color. other your curious, of great then or me. investments nature about Western if for I interconnections Linda. just you I'm different? And the Thank presentation That's maybe in for just one something guess would what share be Canada. that I in Alberta projects one transmission those are, that, comment, thought IPP

to connections Yes, out there. that those we are Alberta's distribution own system just

related them. course, resources. So of what activity that And that's a to interconnect lot us of there distributed Alberta references. that is in And needs to

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

question. morning. Good taking Thanks for my

of much quantified kind bit. downside able one Hudson was earnings provide was a the on little to was how that wondering maybe be if Central think I the you'd a some quantify time tax color I rate or one adjustments there and time of positive events might timing at interest in Alberta swap some adjustments, as ITC of expenditures have well. the terms had in and maybe the

that's QX that's Alberta, $X.XX, quarter; terms the like potentially the that had in previously. quarter to I swap that's of a what adjustment to was and ITC, up to won't time with material this swap to seeing related quarters. swap had. respect to that between about that in we're say was would the probably With you talking And pushing see I extent the Matthew, of between QX, about to one respect thing. a all more one And some been from again, made related just the other. not that the this amortization about timing executed at just we're that the with from $X.XX mean, a respect changes is But expenses, they truing we

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

and been Central relates you back to the them of morning, COVID to good Hudson thank answered But Most my just Hi, already. question. to for come taking it have as settlement.

COVID. the potentially absent clarify, New arrears much discussions Have docket. place? the taking related updates that York discussions are some those Just it's can And wanted I in generic there's to to I'm if specifically curious, there so, in language any discuss some to just convening about there? of you believe resolution Central update give Hudson

to one Charlie. Yes, turn right that I'll over

Thank you, Dave.

a and New York with Service -- COVID management staff a arrears the related programs that to been out is there's essentially Public proceeding. the had specifically, paper Commission put and rolled into So generic associated then so white

conversation settlement our was proceeding. utility, a to arrears not And there best lot to we programs. discussions, in around try an So of felt an that is recognizing as address it management the within was that it generic individual

we're how being than management about conclusion it. we a with approved, following rather participate the handle conversations arrears going to different to agreement we that that would the So agreed associated options in come in we on

agreement have of related related different around, been ideas number a And as is some complicated. we arrears costs. settlement to charges, did to that answers individual when more settlement, COVID why mentioned did I was our our it to bit did And Now, not generic to handled being a come hope which question. agreed I come finance come thrown agreement little earlier, debt. we the within our a tie is an of to we management your also through we up of related to bad But concept to agreement proceeding.

piece determination this just planned Yes, that's a one, like it's smaller a it very perhaps a year that increased there? helpful. overall of one that percentage But bit one specific didn't jurisdiction about last On relative like much. ask Alberta, looks as puts to it Can you maybe That Thank you pie. the plan other quickly. and little talk there? seeing the Just substantially. versus curious just basis more the Or out year's looks five that you CapEx could a very the plan? I you over far from ago, takes I put If on you're realized opportunities as when for is years, others?

and Yes, one cetera. sustainment technology, for FortisAlberta investments et it's in And all big really new or like growth a bit that and project Dariusz. Thanks customer because map question. anything, over its not it's the

of in So that there's everything a bit pot. little

perspective, this we at what when on a a oil basis I are time, is we plan barrel. happened had were year-over-year here we a think probably set sitting year were at last from $XX -- basically

of deep barrel, COVID, doldrums the Alberta, Now the well we're it's as in in still $XX probably we're the a there. the although throes in economy as at of throes,

that so weren't investing forecast And going more frankly, probably And in done we have we budget eye for see also of And and and of opportunity capital we from some see growth has back. seeing closer a do, with gas we a back; growth and forward. big a that the we perspective, there looked a lot oil coming at now is add year. quite a that the since looking resiliency team last opportunities coming

all So those things it's of combined.

to. So it's like to not one point specific project

Thank you.

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

Phyllis. you, Thank

you and anything further your time capital further. conference year third day. for participating outlook have have you need nothing results new contact We call. Thank you at quarter Relations in for should XXXX great Please and a time. our this five Thank everyone Investor

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

You may disconnect.