Fortis (FTS) 11 Feb 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Apryl, and I will be your conference operator today. Welcome to the Fortis Fourth Quarter and Annual 2021 Results 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.

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

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

you XXXX, progressing goals. good energy delivered cleaner our steady growth, while Thank everyone. we morning, In and

invested the year, to our electricity Despite During to support challenges natural we delivery of the of reliable billion the and ongoing the customers. COVID-XX gas $X.X pandemic. of continued capital

and to able XXXX at shared fires service strong devastating for ITC few was With quickly the flood second America support the and be while expertise territories dividend Fortis weather and our summer, impacted. knowledge practices and allows XXXX. in safety evidenced across while year of our per we outperformance diversity the grew adjusted experienced saw a to employees events our foundation task a reduce to in a culture a to in supporter of Board in from dedications operating differences, X%, reliability force I strong day their absent we safely and to and Rachel our continues would by service our and enhancing On another in of to exemplary continuing front, Group. foreign British advanced like were system service all system the across operations, thank industry the emissions. share year priorities, Financially, customers. supporting us and extreme as to ESG sustainability the local by disclosures, our the financial those heat the approximately X% returns North on growth of wind were utility many and day fall, averages. best including our storm record our to relative year of respond earnings our of of all disclosures, improving exchange becoming Columbia of of the greenhouse out and climate gas our utilities our and related the in row. whose utilities A using our model, another restore provide shareholder

Our XX.X%. of long total in with achieving of X-year strong shareholder return XXXX, returns continued shareholder a history

in we scheduled further year With Juan expect have emissions reduction Navajo to a carbon driven date. Wilmot XX% fired Grande in benchmark Fortis reductions Oso returns the total. towards carbon recent exceeds XXX-megawatt closure additions San Generating these progress generation Looking well the average Station our shown Slide the returns wind for XX-megawatt XX% far Borderlands closure indices. XXX-megawatt as wind to projects reaching of significant in our Since have the renewable emissions project late Scope UNS, XX%. these reduce the coal This by we of XXXX, X reduced emissions target XXXX. demonstrates by XXX% At Also has the approximately shareholder a total of by project project, back the delivered and planned of full of emissions. and as the mid-year, Station Generating solar over on or timeframe, this X, annual XX-year generated XXXX

and energy further expect remain reduction resiliency, XXXX. supported target. our investments to on deployed cleaner modernization track year In projects. and including XX% XXXX XXXX, focused of achieve emissions These line carbon approximately X% $X.X in We with on broadly for billion growth in capital base of investments reductions our $XXX million Capital energy, sustainable in were for over the plan. rate utilities

tempered following to project timing related However, and the the and spending Canadian Caribbean transmission planned capital utilities a pandemic the lower storm. rate This spending Rachel the by higher year. was December Wataynikaneyap at for including restoration partially both modestly U.S costs dollar investments delays during at offset exchange ITC,

material capital mitigate are we and issues order While the a had not has our overall date, the to in monitor supply identify promptly. to continuing impact on pandemic plan to chain

and remain policy nearly base located is Act the $XX and level, growth own XXXX investments, now reflecting its this highly X%. and to of we we relates into business, chain, At continue on XXXX fourth plan of in mix ITC base With $XX clean supporting base its utilities. supporting and investment of Transmission to see At strategy, White build across annual the out new by released December. within projects capital supportive specifically our plan annual the not average the energy administrative projects will right climate impacted. of refusal territory. last billion is risk track expected to goals $XX opportunities low from sheet to House has and Iowa, base about be our month a delivery implement a Infrastructure it first spanning a various fact the environment. expenditures regional Michigan ITC remain transmission outlining a growth to initiative the in $X Minnesota, With take to agenda, to billion including right virtually optimistic actions rate it of a in federal through in legislation additional growth our consists XXXX, to resiliency utilities. cleaner of state approximately of X-year Department to support expected energy grid. For In rolled are our executable, expected allocated of enacted, service providing billion our law to in investments billion first and at significantly the low lines, development as plan, incremental footprint. in approximately enhanced beyond $XX access capital Above provide an all in approximately rate new aimed energy This entire capital XXXX carbon and Better the nationwide enhance a signed level, plan billion The building was initiative the our to clean XXXX, diverse Energy, we over increase transmission billion our quarter, from upgraded already Michigan regulated the Planning is improving investments X-year energy. $X.X The plant rate

Visibility earlier majority by to tranche the of approval the initial plan. to MISO addition expected its positive owners. advantage the transmission long filed on advancements, transitions range the position allocation with transmission take support as of MISO In proposed identifying ITC's to of required a that strong of month system in policy geographic needs is projects of was to and the FERC second methodology the cost this a cleaner these energy. the regional transmission puts footprint them MISO's it in evolving quarter, following

Electric or a progress. On month, Last acknowledging In from the continues report transmission Operator agreement requested letter of of the back the fully provinces reach of benefits issued the on agreement with the negotiations independent the the project, the approximately IESO continued the Lake the a years. to construction permitted with service Energy and Ontario IESO, to ITC government March. late System project discussions many IESO finalized take Erie requested X the Connector Should letter, would ITC shovel-ready advance to contract project. IESO Minister project in Ontario a

plan investments projects. not Our with associated does X-year these current include

existing As or $X.XX, either XXXX, that have come highlighted paid to these be to we to are increase per In our fruition, XXXX. would approximately X% years extend opportunities dividend XXXX, compared increases. other share additive XX our of an in past beyond marking dividends the growth we common increased plan, to they

this building remain to committed we Looking on ahead, record.

remain through we to our the committed and of X% a building targeted through on record XXXX. growth strategy average growth dividend ahead, Looking this execution annual

turn fourth quarter Jocelyn results. annual will to call I financial over on and Now our update for an the

and everyone. morning, good David, you, Thank

Slide our results. to at quarter XX, and fourth looking first Turning

decreased XX% targets. X% performance in the in expense, share common we the on alone. expected, Central weather, Hudson impacted share service EPS down retail While resulted the rates lower FortisAlberta gains in $X.XX, EPS experienced XXXX. and see by experienced was were continue And $X.XX. case lower driven compensation increased XXXX. rainfall. fourth $X.XX and a EPS rate weighted drivers Fortis's $X.XX, together foreign concluded $X.XX, by the shares was fourth to to EPS meeting rate of and per $X.XX. impacts its Arizona mainly in a of decreased that Central across our impact. a the of share in adjusted of by which in this advanced $X.XX weather at And common as $X.XX was weather-related outstanding Belize retirement this base successfully we a utilities, down number quarter interruptions earnings than and also higher key lower and Reported were lower lowering number TEP quarter. the sales tax was lowered X% also earnings company its fourth UNS Hudson each quarter deductions the because higher production the There In EPS quarter-over-quarter. during not of than investments price of growth Arizona approximately and average by contributed lower Belize quarter and per Unfavorable by quarter milder quarter timing exchange $X.XX a stock-based the And

reported XXXX increase results, foreign earnings common and rates, by EPS year which EPS annual adjusted This the than XXXX. share higher decrease the lower common than at per achieved higher for was $X.XX, share exchange despite was the Looking $X.XX, $X.XX $X.XX per year-over-year $X.XX. earnings in was

Excluding break impacts XXXX. regulated foreign down are the of regulated annual over earnings table exchange utilities that increased adjusted by our as XXXX, foreign exchange. grew In drivers XXXX. by impact, XX waterfall or Slide $X.XX excluding X% in $X.XX well growth the approximately on as the utilities EPS The EPS EPS

Central rate a I'll to on UNS rate higher swaps $X.XX EPS interest at conclusion approximately approximately case. slide. rate X%, its rate UNS energy growth its growth X% utility. largest by costs. $X.XX base adjustment increased the next detail by utility, reflecting ITC, in related EPS base growing compensation its by more by year-over-year of speak earnings earnings earnings Hudson growing contributed offset $X.XX, a reflecting X%. and increased EPS with the increase non-recoverable the was Our by growth partially stock-based to coupled favorable Strong

FortisAlberta at to and rate segmented of Canadian and decreased EPS also the our in base Western were in hydroelectric growth continued favorable Our realized earnings $X.XX utilities Energy tourism earnings earnings gas $X.XX rate natural grew Electric Caribbean XXXX. segment, driven Belize, driven increase, At mainly lower a growth. contributed EPS X% base a Canada segment, industry in the total, contracts the to recovery growth higher production compared Other mainly In on Western X% contributed or driven by by at in Aitken $X.XX due to Infrastructure year-over-year. by At our Higher sales EPS losses increase weather. Creek.

settled third rainfall With compared conditions as XXXX. Aitken quarter, And we year-over-year. in the hours, consideration XX% curve. Belize, forward contracts hours was discussed in reflects the This XXXX at favorable XXX-gigawatt XXX-gigawatt a and reflect Creek in in of losses market lower realized decrease in production to

dividend XXXX for program, dollar Canadian for to average reinvestment compared $X.XX shares EPS the by And higher to was due U.S $X.XX. X.XX weighted XXXX, average our decreased with X.XX exchange lastly which EPS expected lowered rates to dollar As outstanding.

As by by however, And lowered EPS higher $X.XX. lastly, XXXX at which largely I UNS impacts XXXX, approximately TEP, $X.XX. benefited higher slide, mentioned in EPS by wholesale generating report rates margins. lowered settlement new weather earnings to on -- This EPS UNS XXXX. from increased planned grew higher $X.XX. TEPs at facilities, the by in by costs retail did, X% maintenance compared the net FERC previous margin UNS grew and driven

its Tucson record on recall, experienced you As hottest in XXXX. summer

costs, Looking ahead rates. manage coupled growth maintenance to and formula-based generation reasonably transmission lag to lower as expect with we regulatory XXXX, customer we expect planned

timing evaluating Additionally, next decision of are in been process we the while TEP. the of at filing case the has no rate made,

regulated of $X rates, Debt Slide on attractive in the debt Inc. Markets active see we can highlighted ITCs billion in note. Fortis you were mainly Capital support raised our with As their by over in debt issued debt again maturing while long-term utilities issued at XX, refinanced capital inaugural in XXXX debt, green at programs.

rate utilities attractive With in of locking long-term a XXXX, several issuances our debt backdrop environment, rising rates. in the interest of accelerated

addition, rate to mitigate refinancing swaps risk. ITC entered interest In into

Capital $X future recent credit to continue supporting on We our we coupled our Markets issuance, monitor billion billion position requirements. in our impacts $XX plan. debt a our available maintain continue With to on the financing any facilities, strong with over X-year capital liquidity

is and a provides through plan expected funded within at our while rating. us equity plans, funding be positions relatively operations, our steady XXXX. comfortably This debt reinvestment grade regulated utilities capital our cash capital risk investment Fortis's coupled with Our maintaining from primarily and business credit structure with existing to issued plan profile low financial flexibility dividend

recent updates. regulatory Turning to

or to and RTOs regular planning, of for X,XXX to on supplemental some basis await eliminate return interconnection to recommended its ITC to in of transmission generator proposed First, allocation to ITC and from conduct planning competition. equity November, regional In RTO cost incentives, the proposals transmission processes. advanced response, relation notice XX incentive filed the the comments order which transmission the direct proposed in notice impediments response promotes rule rulemaking continues rulemaking and In adder. ANOPR, point highlighted a final of ITC FERC holistic of the

While process capital procedures. X-year an will issued of recall XXXX. an ROE aspects to November timely proposal settlement Service with approving of plan indicated XX% was design joint be the continue plans is retroactive Hudson Commission effective X.XX%, X% and design. cost TEP, in expected settlement declining At rate move to out to recovery the ANOPR X-year Central ANOPR whether change includes an and regulatory may XXXX allowed formula FERC allocated X% the the broken the its Columbia, the capital a A accepting subjected The ANOPRs. you will principle filed December an remains in settlement it's as fast The order in rates it of which filed FERC XXXX, FERC In single, Commission of possible, the transmission as has rolled-in positive, ROE In multiple equity is FERC an refund cost of and to investments, receive The third-rate through rate settlement unknown. is UNS any over energy's into from unclear by a to of rate. includes transmission into proceeding capital of Public approved plan in to XXXX. the XX% in annually year. July XXXX British the layer York of order received New which date XX%, generic remains in and rate as

The its proceeding initiated of FortisAlberta the XXXX. XXXX, to decision AUC third cost ratemaking AUC to in base lastly, early return a performance later back application cost in November concludes for current A And the the the as beginning I'll the whether turn filed to capital as cost January a and XXXX. capital from consider continue this third March. A it expected will expected cost -- begin of the remarks. in is XXXX separate be with for XXXX should service That also in a in of of term AUC now generic capital beyond year. process extended quarter. decision conjunction David. parameters my is for call to confirmed

back expertise, value the Stephanie. our that over future. diversity in will energy Jocelyn. operational model, plan a you, values our turn beyond. and from and strategy have right and advance the will and geographic growth benefit At now With XXXX stakeholders cleaner and deliver the operating deliver Thank local I to long-term Fortis we to Fortis, of we to people, stand regulatory call our

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

And [Operator Ezergailis Securities. your is TD question Linda from Instructions] with first

might record if you. the recognizing to would wondering normalized XXXX terms be us was on you XXXX. to the Thank sensitivity like I'm it weather $X.XX It wondering year-over-year I'm that helpful But a weather, could normal year that really what impact, consolidated help in could you understand a provide in weather. of what had if basis EPS. hot get look

and And you rules year-over-year customer art customer coming we different very we make thumb saw profiles. it call. very saw from from of out per to get difficult some of morning, behavior the good working a Yes, that's good glad bit can With in -- the combination particularly quite really of is use a the because kind sensitivity That -- a basis, very of than a XXXX XXXX. is science. weather in Linda, different we pandemic back did everyone home, and

we a to these back. by compounded XXXX, tend year is saw get where that to days, bit So than of It every fact other a warmer that get split tough little pretty that the kind sensitivity. we

answer. from we that we're know of Arizona a the that the trying to can by is how very I the through impacted had that is So, really to have in bottom on see mostly limited this we most -- flow But weather utilities other line. non-responsive work weather because

say, was would XXXX, weather So, at XXXX much XXXX year. look you it's, normal when obviously I versus more a

be I of a basis. that would think a normal going of would that more So on forward

but That's of of new customer maybe the not know much it's forward? your shift going follow-up, again, you. science, are different might potentially in customer Not behavior historical what continue how teams patterns back an normal towards putting to what's systemic helpful. versus just art as And that Thank permanent, might thought but in and and be? revert behavior, a a terms I

Sure.

of I we're Arizona, XXXX. up did use quite more timeframe, in more when of because in XXXX. perspective in think shapes, bit load at commercial and than residential a a work to part customer as opened to obviously return look you in revert the well back a most folks seeing pre-XXXX kind Businesses the as it the lot normal from per actually Arizona, it normal So, back to for

call when forward you -- perspective, we for we So, new of a that I other we're demand be cetera, darn pre-XXXX what going technologies, from a a DSM behavior. But or to change usage XXXX, the have have and kind and can seen at load profile in as new Not across say most the to the part, normal from on to doesn't the utilities. pre-pandemic deployed pretty perspective. basis, probably efficiency, of some our et back energy look would close that customer

QX can in recognizing That's sense helpful. to levels wondering able quarter, anyone still would of a even a you. point, far natural that happen that been be lot we've provide the the any sort QX gas I'm in weather at Thank if and And this what may finished have only [indiscernible]. is half believes on water of the storage, I if and and been so team seeing

mean, I Belize is just rainfall it's Yes, better it in than and QX. tracking

where So compare directly the we'll very, that for we to hard up, up 'XX. tick quarter. that with correlated to are believes production obviously that low but end QX us very see say frankly, It that. quarter it when starting was pretty variable based you at and production is, back it's on a is for rainfall 'XX to

So, see we somewhat. it back coming do

Thank you. much. so queue. you Thank back the in I'll jump

All right.

Your next Choy from Markets. RBC Capital Maurice with question is

you prepared and that is good you My federal on Dave, premise Thank see remarks you, your supportive state LRTP. from first and morning. levels. MISO policy question mentioned in the to

that of your how decisions how change share, view in should announcement market this Michigan call can As QX, view projects way? first the the I we tranche December? market following And it is the share, of you approached if

of did Linda MISO talked a the so broken But jurisdiction. and indicative probably don't come long to they're where about we exactly they're going great And down don't transmission new MISO of assets. forward-looking obviously, our footprint it know the and a projects, also we frankly, the this XX%-ish, by these land, indication, have just tranches. going that's this. that provide little XX% because range in to in isn't have basis, kind the trends, I where XX% how XX% did not footprint, a on at a to really projects we I And color when projects, MVP But almost Yes, get overall know on came the in level MVP And guess about don't our MISO past ago, and same it we backwards. is for region, to maybe use that way the could of XX% looking our I that's decade we indicative ITC.

basis any have our it. where and of on wait project on figuring just necessarily Linda, get related -- basis, we to land project those good months part, out view we'll really then [indiscernible] ours going the to forward and have be which that a start view what you when tranche, the we add you a can plan once we are and really see fun a think good especially to a a going any that hard on build projects, it's to on we which we'll of them. do projects see to then how a able color forward So, And that? from would -- is and -- few hopefully see

me. Nope. think all. additive for you I it Dave, Nothing captured

Okay.

maybe And of have misheard, rate case But Arizona. second it. I you its is may on Got if did. I for mentioned apologies Jocelyn, evaluating filing TEP. timing Fortis that, I think next in the question is a

what business as see this that to application? to rates about how to factored new the a And the were the be current recent to relating the do rate over your view year in highlighting rates? just you'd state regulatory into your As a are ACC ago, decisions being peers follow-up, ACC's changes approved you justify the

was before about throw TEP Maurice, to not respect it rate the uncommon to thinking year-end, there. with with for rate last David to case But December XX, XXXX. the will I'm about environment case, David, be talk a filed case. sure it's The Arizona I rate because the

years been left we've So, that it's since rate. several

as Arizona. in we've you investing invested keep So, know, we

what doing we we've would to what have couple over we great continuing to were job, keep energy right. -- done right clean last So, that to we It's revisit managing regulator highlight forward the that the things. get say the into of I invested would that with its suggests cost, invest years moving It's and do need TEP a we rates. it's plans. done the has and

a just file utility this the years. to typical of for So, every case rate is couple very

so, out peers the TEPs there. with of will I what's David speak nothing happening perspective. And to let from the ordinary

is the I X of a not Yes, Arizona for really on, ours is you're it years in add, but of looking lot lag our utility X and -- invested Arizona. just right past obviously quite a down basis Jocelyn, just years, invest path have bit going on are in the forward because like in go to to we a a clean energy transition in

So, the and for bit in on we're of another to hot results reflect has for make sure we conversation want regulators then we one, think, in topic the I that expectations we in investments and a go to cost a sure case necessarily our to reflect adequate -- been And forward. rate story, past need environment Arizona make Arizona, of a of getting for outcome those don't lot know an a related on that front that that on all expectations us. company's recovery few But the this that -- regulatory don't as telling timely at in I mechanisms months. get we looking

all specific. different a got the a with are think different stuff different plan, is resource I different. those very that We've Commission, utility relationship of utility,

And, that. from very not environment. positive, recent a positive Arizona in -- a regulatory definitely outcomes good there's from frankly, there's been So, some TEP there's perspective, very to read and my not through

which Commission greenhouse filed smaller a our greenhouse Arizona the our that, supports Tucson Electric Corporation wide. XX% the of we that reduction integrated resource that and resource electric, at for reduction week, we acknowledged supports this that plans supports plan Fortis TEP gas UNS course, integrated Just XX% gas utility, electric have Power, that XXXX

all look time customers And portfolio right signals from and the our process. to providing system customers that array renewable its through affordability resource our at Plan portfolio integrated good regulators broad cost opportunities of what do, pick agree us aggressive those the an and So planning that to good rules, to direction, amount and for sure in those stakeholders which and So and get right? commission in spending are make can we we they're did right that Integrated moving do to least all Resource actually is plan is we the for our signals one the a our different have most reliability on. that our the what a That's needs XXXX. of we allowing a the

So, nothing that new Integrated which Plan, to getting now us. for year. August We're is looking actually until next forward due Resource not of next

of lot now done then. a and between work to So, be

focus be Could quick of Great or filing? follow-up. months a more year, would you few of about little just timing and us roughly? talking by end It help a next great. we on this this Are the

you always is timing, it. one of these bits pieces. Yes, well, that to There's at evaluate those really working a it's at looking plan the test of and pick, through capital put so and hard to pin it things all right and still in this here we're when's point. But we're --

you. Thank Understood.

welcome. You're

Scotiabank with Our next question Hope is from Rob

Good morning, everyone.

of the XXXX, layered XXXX meaningful the into more think capital timing, basis? interconnection of a start do you schedule, that the in you see put a Midwest related a Just of take next to on project existing projects. out. capital plan a when follow-up on question there's at look your steel just start be when this that kind Is capital plan tranche But the I capital assume to ground? will not transmission ton could on a to the the more you coming being

for Yes, that Rob, thanks question.

to there. in put something top is Just in plan yes, those our no there projects. on of clarify, existing We our money capital don't current plan MISO related to existing

than a first that's little There is around are process who of projects some which upgrades, to this several that hard a that first knows -- to next the good because be a in question can little going to might are FERC are a be tranche transmission the different tell. through, out be some chunk do the but is some that really projects like this in timing to bit connection, come in are There's a bit going because So, years maybe one it's might going easier are there their big tranche. long-term of that those that tranche. the and obviously fall easier next transmission

our be So, expenditure in going say X-year of -- to is that's timeframe majority would X-year mostly, I XXXX plan. past XX the plan I say, this would the in to late that

current So, on the later the the year with extension luck, we we the a lay the up here, six on. years the going plan to in and to little would is be and impact the ones say front capital from boost can biggest that easy of get I plan. X-year end But

right. pivoting like Erie it's helpful. broadly Where in Has project update of then there? are Lake gates in government? on you here maybe an large That's transmission terms the over some discovered, or you with to the getting can discussions All Ontario. looks of And the through the give just us another process just been kind Connector key

of Yes, getting details it's been all and principles out. term pieces. the now It's laid finalizing The those broad terms -- have to sheets.

towards bring March. reasonable they and the of that government us this -- part and ISO another the now, gave said, the the negotiations that came all update there back was the end looks in of and work So back that finish TSA, update in December,

We And the ISO, get process, once final everybody we And so, the step that the agreement, these final a Ontario are brings of process construction. continue ISO it. government, get getting making, we're by or we to agreement. the then EPC start with the And then, getting positive it it. we that movements signs all to the of to start and contractor designing, step course, agree and

just from well, ISO. this you border talked difficult, for the thing this obviously to project. away on this it's to we and that know go. This ISOs cross one's each project it's while between on it -- connect make -- So, when a and on ever a end, in it's project, real the at got a it's we've moving, PJM is best two a has team it's And Ontario couple steps, a just been about got really a couple signatures which of getting the that of testament felt ITC a to our feeling put time

ask the projects And can. forward So, are, they as couple last steps the service. as more getting actually put to lots get But looking done of you we those into fun the them to when we're quickly details. harder

color. appreciate I All the you. right. Thank

Yes.

with is CIBC question Capital Mark from next Markets. Jarvi Your

move morning, that. to what questions today, want of up, Alberta. would down around I you in second of to be openness remember terms you to parameters Good everyone. last around maybe in on terms flat on potential rebasing, cost-of-service see earnings And saw earnings in terms expectations rebasing. or of the after what of we then like if Thanks. because flat One are Couple could just or sometimes, time comment that to on to ability keep the that formula

So, color those some on items. both

to turn and FortisAlberta. cost-of-service some CEO the talk about of the insight. direct who's one first Janine I'll Janine then rebasing Sure. get over to the Sullivan,

specific set, over on account utility, the whether further see On how going it's formula, that changing to and obviously of It to one all and next if are formula energy potential we're the to that to risks, the takes flexible the it all depends, environment is depends extending this that. to is few the your adapt where than all enough right things years right? in those it

rate, sure It's regulatory work details that formula us. like it want all So, works for in we're mechanism, any going it hard, is depends if the that to to a type on the we end. make

for the could the to of us ability and see return we want about on be to you over the rebasing? to cost-of-service Janine, either clean the energy it have make the way right provided frankly, long in that we and that think that I'll in I So, that Alberta. get as participation, growth talk we to investments for as supportive transition the turn we opportunities

Sure.

So, the customer service is rebasing ongoing.

in PBR-based are for FortisAlberta opportunity almost midst revenues it. a and decade of of costs We It is the an terms rebasing after in our important of regulation.

what of happening we addressed then provide that of that will some over to projects of there prospective, would third clean in will next costs matters. going And newer terms such future. foresee into as PBR. that term the we So, the be desire as of capital, will become indicated, which at least of point need like a the optimistic determined into strong energy are to XX respect the starting of be of course, the specific having FortisAlberta for And that mechanisms. third to a to addresses requirement, look part process that term With and David prospective, a incurring, months cost more revenue what a the Alberta is or part those and around current in visibility future as provide is of

capital setting very so, respect with And days with to a of it's early for XXXX formula. cost

determining for in But but is and of it difficulty a for what for really possibility for on anything and very very, hold current it prospectivity early focus in XXXX. XXXX parameters right then deliberate XXXX. should happen and really short-term of in the more is beyond it look There that indications terms conversation the readdressing setting the like the just foundation in still that desire around now formula, early given new days. should So, what the likely

rebasing, coming your are ROE where pass-through of just submissions, back what sort And of [indiscernible] process? you terms you to the in of achievable now is a sort that at and this help weekly your is stance when look

does thoughtful think us going I And energy a do realignment for provide point that how rebasing forward investing optimistic demonstrate. good are for that to the that so our this And our that way, good XXXX the in and be we'll a full are position solid certainly we But We future of both. programs believe affordability. plan and terms between mean, have very starting starting for and in we around province dynamic I XXXX. in a of affordable and in in we a concerns will revenues there clean costs. some it's a

And, Okay. Jocelyn, a question you. for

in you are more when any Any Just sort the issued. of control the ATM of updated the now bit the updated a discount, back shares thoughts to sort and terms DRIP pivot or have of on where usage of that? DRIP, the on thoughts on

Yes.

put DRIP the off, a getting equity we we the actually we And then need. effective the Mark, put turned couple of we it's in back way of a pretty it discount on. years, So, and

just Right It's does so, we equity. The meaningful that us. I now to up participation of with of the the revisit, over need, we growth getting cost-effective given us uptake because any an again, back It's is every equity The is ATM year. it. worked effective, about, We on XX% way our that our with should provide healthy drip need. the equity David's getting different well. And the some we We'll talking any us way. flexibility. that a understand we so my as for it's opportunities program, change opinion program easy, all But think it level. working in evaluated pretty every discrete way in funding need profile, capital don't that

DRIP but the -- working now for right for So is us.

Okay, thanks.

David question James. next Your from is with Quezada Raymond

Thanks. Good there morning, first the plant on question to BC, as My relates in site Tilbury well. here, everyone. or the just any expansions

undergoing that curious understand over today past saw the floods some regulators of that we the kind process. in infrastructure I you're the and thinking how year. about Just that region review the are

can Just any provide there. color you

project all the Yes, resiliency get that on, here from consider it we're a I'll around that's for tank a for I BCUC -- over to particularly details perspective. the important think because proposing, turn the to real Roger to

tank flood. seen them guess of look to -- [ph] back bridges mainland the for Vancouver really a important the Roger BCF we that one tell and be more system. that's the LNG know, it winter proposed then, makes I us you XXXX have perspective backup. BCUC it we resiliency -- One to we projects the for end past is course, As going three several now years, down it resiliency application the have, the at in some I'll as to those in It the And to the where providing on one have from area. is big call us was that of and in of that makes the we're you hiccups, XX I'll to in in, tank projects, important with recently that turn lower the EA that big with new process.

David. Thanks, David. morning, Good

underway. BCUC One request tank, two Tilbury better the get processes we're from the process we on is conclusion. continue mid the part to CPCN with intervenors. before there's answering the of yes, for information will year on process So that That

BC to In addition, size file from obtain we and both of of tank, the Environmental Canada. and the Certificate because have Assessment

QX year. lead what received expect will substitution process. the that comment to We readiness steps We track are on Agency Assessment so of continue [ph] year. decision description Canada And we part a will write Impact last that with that the filed better did to the of The environmental this out We before BCEA detailed and go public process. agree in for are the next XXXX figure assessment. the of project

of the of Roger, And as I RNG on great. with there's bunkering. Okay, that. guys marine momentum lately, Thank follow-up really you in for for Feels have know progress you FortisBC. good RNG procurement been for though you. some made maybe And use increased in news BC headlines -- the

the marine get to could on RNG in than think you a for potentially ultimately, market, more in if you usage you extent end the Just on RNG BC depending curious side? the of mix could XX%

think questions We two I there or with barge low Marine ran think eventually up carbon I project that [ph] did RNG [technical distinct pilot there. are carbon there. ferries. where market, end have CSPAN difficulty] will Yes, The we

in I think similar there's pilot year as last down a Florida well.

looking the already diesel. over a marine it I at can gases, think So, market a from advantage the like LNG significant if better, got come fuels renewable and all is marine it's

as an market. that benefit. support for So, an that'll additive see marine in be increasing LNG We I think the added

but approval last get deal. signed Still about petajoules sure We and which our We're to RNG target of development, or our from beyond supply approval, XX% I recently of our doesn't XXXX believe received that from including government halfway We the of XX we time, is gas X year this that to we just for expect generally regulatory coming over hydrogen. petajoules, year. hydrogen. to we can over XX%. to adoption that include the go go just BC think needs RNG, resource

our system forward. in renewable of gases going see growing amount So, we a

Excellent. that's me. will Really color, for the I it appreciate -- Roger.

question next Capital Matthew Markets. Your is with Weekes from IA

Good my for taking morning. Thanks questions.

this answered cases. the and I been I'll I think just ask mostly point. on think they've at But macro rate

impact anything like that doing rising planning And interest near cases you're measures rate now in any to on of expect proceedings? ongoing future, years that? creative terms you right pursuing outlook to In the do over address rising or rates you that rates the or those for couple the are are maybe to how

which an across installation put now, has Yes, those Matthew, Obviously, upward the rates we're can talking cost pressure some very because depending to some And and customers or perspective footprint, hurt. Arizona transmission about mechanisms have we TEPs help direct like pass-through the ITC. same that to a in costs our from that's of jurisdiction question great on business, incur. on that rising pass-through doing going of mechanism. And down

cost inflation get inflation obviously, doesn't and costs So, the actually there that inflation part well. that jurisdictions Other those basis, forward between, when regulatory because and reflected isn't then subject a on retail escalation. as you one an bigger you of like calculations it's TEPs the And jurisdiction really BC have for and some lag see be impact trued rates, then up Alberta and which rates. non-FERC have and it would that in to when assets as or their

utility, the a a So, across perspective. it's huge a but from mishmash company bit impact no of

course, normal board, services customers prices, things et whether our and of in inflation it's raising across has the to this cost from gas to impacts products Now, cetera. all their natural

reduce focused are cost the throughout customers. everything on we So, on the from that the a making very our to perspective sure impact doing we we're rest utility laser of can

are of ROEs correlation. not rate. a Now side it's And rising obviously that other things, on track the direct obviously

environment, general rate lags hypothesis is it the ROEs up. here lags it a rising sometimes down, But rise. in Sometimes

these course, on And cases just over of that important reset capital, time get cetera increase would why cost that to generic so, see return proceedings and rate And we we are would get et equity. on and that's reflected. that of expect to our the

turn Appreciate I'll everything the That's on answer that. it you. Thank me. for back. Okay.

Thanks, Matthew.

question is with Bank. Kenny National Patrick next from Your

good Yes, morning.

some was your on if implement just new curious, in I you of build reduction your to target BC, offering overall platforms, and accelerate by your and to to that RNG utility opportunities this Just energy XXXX? how follow-up able XXX% source XX% be might renewable any electric across initiative see

making that role Yes, team FortisBC deliver can on up energy natural came program you it's first to a We that and cleaner their infrastructure in It's getting a send gas need everyone green molecules electrons we future. play to but side, pipe, the in your renewable companies and lot be that hydrogen, -- up distribution clean that great green with. and up transmission more how -- recognize it about shows that that we're up off, through can what the talk the can gas whether is, you part on gas through talking that's natural whatever how solution. and about of you it's that a

small great It a in offer programs be also programs -- Power have companies And integrated solution FortisBC. utilities where So could already. look we a that's that for like that. we at that like Green have utility, Arizona, in we New our York could other Arizona do customers -- our gas vertically and for

more wide more So portfolio you option and, customers create to do and opportunities faster we a of perspective. to are got can a from looking than at those to to perhaps that the course, be things go little going bit

our XX, will actually provide Arizona, customers of energy course, is Of renewable But Resource we goal in right by XX%, XX% be energy. execute on our that our to Integrated XXXX. employing around the if we Plan by

my But So, to the me will board comes have for energy scenes across the much have XXX% in still and want we're from who tariff volume. like increase in renewables doing renewable have XXX% my that people myself at where in and forget obviously energy there's Arizona, customers that customers how home we really behind Arizona.

of within up utilities. of of add of And the that. scale then one David, option to and now of larger the rising smaller seen light two know it's to maybe these the larger diversification. here time for some question, But larger liquidity Excellent. some Thanks projects. I weigh on high-level already general, growth environment or portfolio the you've the your to beef potential core in utilities of a benefits rate your additional in the perhaps scale of simply ahead divesting just

of Yes, value the utilities each priority and not think continue that on don't et our be mean, blind of really they one a have, I and one within improve going think opportunities, will run drivers those forward we utilities each. our us. a that the I But we're to of single market model, can to we basis run. for utilities best and -- we every cetera. And I that growth we the improve

what one would -- we're pieces looking see So, we outsize some above I at value hurdle. pay a have value can, attention, create don't high of definitely we beyond the and to of subsidiaries I because think on or but will that's our But that portfolio in near-term. our someone weird one the our -- not of it's in to something --

much. All right, that's great. Thank you very

Patrick. Thanks,

next is [Operator with America. Instructions] Lozny Your of Dariusz question Bank from

Good question. Hi. and for my you morning thank taking

further approach potentially of an part down a could thus the that hopefully on Cardinal-Hickory MISO along a timeframe plan. your And to bringing of experiences the potential there in Does I'm all next to wanted provide in But far. project you been project. view there. CapEx and the if update quick for have part -- hurdles update the I significant Creek the that would additional there's get that that it's just not question steps curious be your some Just long-term given project inform line footprint? realized at

thanks, for question. Yes, that Dariusz

that's [ph] getting expert that's and going Apsey because points the get that, I to CR details to pass Linda this, details. the will far so full on detail the it You in I'm into the ITC. for And from in pass

and what on that the put ceased mile all perspective, so in of a a has litigation construction it and is mean, keep to certainly Creek. the doubt, think I kind project. no question. revolves Cardinal-Hickory Yes, XXX-mile half, in just Dave, legal And I think far essentially multiple Thanks, for around Dariusz I not the But to project. basically litigation, thanks around there's Great. mind, proceedings

project continue project. that We're Wisconsin Iowa of and our owner a in partners XX% on in about the project. We both with the construct to

And so, and project it's American partnership both Transmission with Power. a Company Dairyland

that's question, of activities. that an project. ago was I we'll a project despite needs, to given think lawsuits, So, project need confident years and complexity pretty and grow. really I as pursue project is feel we that continued minimal certainly And for sort the portion XX over some the This litigation the and multiple for it would realize projects, say just through MVP and customers continue to the a in that our continue to quite the have construction is of identified frankly, of benefits headlines, the MISO, we

I that it activities not pretty will at the be has our and So, all. feel think stopped realized, confident project we construction

great. Okay, appreciate … I

step process they of layer and process analysis When that green energy the to energy you when benefits, there to around mean, primary generally, to all these through, mean, primary think of on projects about look of these And I I think we But all you projects, amount project, an the general, when pass is project? you I to projects, and of think goes LRTP these the any -- through, economic from RTO with transmission growing. I opposition look Transmission that drivers think think we projects, projects I calculations. deliver broad -- study have at doubt customers. No. or LRTP of is future, the the does analysis no additional a had benefits, benefits. second benefits certainly benefits know the just benefits, assess Regional terms when doubt, no And in you when yes, look the is any to study environmental in at projects. these reliability cost certainly RTO alter these and reliability I I of there have projects interconnect you regards these when driver And there economic when [indiscernible] of of pass just think -- I they is question I litigation, is assess it all the goes detail benefit the immense ultimately, at how to Look, you mean, of think perspective, I the back,

been a as So, how of sensitivity I future. project, when putting I the those the need-based This the pretty that timing of approval, and you have we to certainly of think dealing confident be considered, ultimately comfortable need think considered, location this feel but sign different particularly typically project, project all type those certain maybe a geographies, we what depending see prevail, the construction and things and and operation. of into is any we think of about we've But the with. don't of than obviously, projects on

great state, think on a consideration work of We we with at have all track all closely our of landowners. our end. And I those the projects. record of ITC, very, we local communities, our transmission fighting into things front take very

in so, ability come that of feel we And realize effort. to the out pretty I to transmission LRTP continue projects our think confident

drivers. you Is Excellent. quickly, was could perhaps more Hudson is non-recoverable the way and Thank QX those that fast costs to adjusted If related forward $X.XX I in pivoting is potentially noticed brief, Central with referenced elaborate drag you being that I just this on targets. of to just maybe you what over detail the were, any ongoing? there something appreciate performance isolated see targets response. very to in the QX much. I as part the could

that. Central the that Yes, got over Charlie. CEO on who's send let He's of me Hudson. to Freni, Charlie the color

Thanks, Dave.

which of within meet, those. agreements associated met rate do penalties those need metrics, in all metrics, missing they with we have are we performance result So, performance and to our if

of were that And are we related those outages missed so, reliability that the of all targets outages. to outages. And that non-storm two duration frequency were outages and related are

in it's year was years. wouldn't going our So, targets forward. those certainly that going expect to are mean, year we of rate cases many rate a And been would for I continued I I part of provisions forward. exceed on basis. our those kind that an unusual believe they structure last be and day-to-day have

it pass very here. you much. Okay, Thank great. I'll along

Thanks, Dariusz.

you. Thank

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

you, Thank Apryl.

and for annual have further nothing time participating fourth should call. for our further. the results great you relations, Thank a conference investor in you day. quarter at XXXX Thank contact have and We need everyone, your you, Please time. anything

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

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