ALLETE (ALE) 9 Nov 222022 Q3 Earnings call transcript

Good day, and welcome to the ALLETE Third Quarter Financial Results Call. Today's call is being recorded. Certain statements contained in this conference call are not descriptions of historical facts are forward-looking statements such as terms defined in the Private Securities Litigation Reform Act of 1995. Because such statements can include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the company with the Securities and Exchange Commission. that ability the or of factors are future predict. the the beyond management of will company's determine results Many to control reflect Listeners forward-looking of undue put date management which the should as reviews reliance hereof. only not statements, on or future no to statements events other statements, or revise any result a any whether forward-looking otherwise. The company as to of update undertakes forward-looking obligation or make new information, XXXX ALLETE's financial third results. conference to Welcome quarter call announcing follow at Q&A Later will in session will a call, time. the and that we have instructions

As the Bethany recorded. to President a is would I being CEO. reminder, this call call now like and Owen, hand to over Chair,

begin. may You

in we along, as as will Thanks, full each share. Officer. XXXX the updates and announced good of our of a and Vice Clean President sharing initiatives. exciting Frederickson, results and support key President on with I'll our we Monday, per $X.XX quarter a start significantly agreement of we'll joining Steve be Jeff Utilities our earlier more allete.com and renewable the Engineering per out line If Senior outlined add and Minnesota thanks XX with provided energy next year megawatts for $X.XX energy. details energy it amount today's moment. share view comments of Power on of reached the In expectations a over of plans be its Vice ALLETE in through Power our us. and well increase from the to broad third years. megawatts With news that Power Commission, with Minnesota near XXX Chief and slide early would on were on Also initial strategic call earnings settlement, our year. $X.XX resource solar This number Chief website in proposed operator, Minnesota regional Financial quarter approved and section. An our groups Steve These XXXX this on follow filed reported nearly is Minnesota provides can Frank presentation. That's included To settlement up and its to morning, in stakeholder to proposed will results company the wind XXXX. guidance XXX Public our proposed storage the found midpoint in everyone, guidance its important coalition is are to Corresponding filing in Investors range Services; the integrated Officer, amount for the IRP go Experience the ALLETE's the be morning, Scissons, Power's me twice slides agreement Financial of renewable and at by proposed Energy's as Customer investments. plan. ALLETE the this call morning's Strategy Morris; support energy Minnesota

to our reliability commitment our set agreement filings. those the be projects, as would plan Power's our to Minnesota the transmission in climate, resource latest as reflect and grid deferred Minnesota Boswell the at Trail of operations the X XXXX addition, agreement, and Center company to at will XXXX X commits coal important Boswell of as In Power Boswell future including customers forth this plan employees. Energy cease long-range the our well and end MISO X. continue evaluate integrated by Nemadji the and the Under regulatory to transition communities

XX. of came next company's diverse an will our of Energy In two stakeholders, Minnesota leaders next many to stakeholders team community with our done the Forward this feedback. that on allows decision hearings coalition pleased weeks, I'm tremendous the customers, over prioritizing organizations and a our listening carbon us Our commission provide to Power's very that a energy plan to November steps free including on XXXX. has agreement on job XXX% to the and path their consider the by IRP in expected continue

updated years. sustainability note growth reflect energy X. as ALLETE's transmission Slide action strategy. of from It's Monday. and plan additions in agreement renewables this the yet that table on and our the to include next not five update The Moving the a energy commission projects this to investment on capital important include storage proposed IRP the part additional significant with does capital filed clean to We've expenditures increase over in

So we're confident more there come. is to

is Power's plan part These tranche transmission key existing of region. transmission HVDC throughout addition renewable projects. one and line support in modernizing to include megawatt In and plan investment long MISO's XXX Minnesota to investments significant this generation, our a CapEx investments reliability transmission expanding range

refer please to Slides Next, X X. through

look opportunities we reflected investment year there those we addition CapEx believe in significant are in plan. five to this XXXX, beyond As

X additional and well in our wind, needed the solar storage just additional as in with generation infrastructure Specifically, connection and we IRP X. Units investments and mentioned as responsibly and transition the Boswell reliably as

transmission projects transformation. participate X and our reliability and We our high Tranche to support transmission to position that clean projects, of interregional to expect advance part the MISO's transmission also geographical voltage in leverage strategy as strategic energy

are in we we the planning already are in future. execute near always for of important transformational term very And term, long As investment motion. our parts these the strategy

benefit the for very tax than IRA the to The all production the options legislation. new flow projects investment well from solar company Reduction ALLETE's investments. the Turning for of of affordable excited new and and to more as tax will extensions market tax also credit owned continue a benefit investment improving believe provides credit positioned Inflation important credits and Act, credit. also options clean tax energy monetization this Slide transferability provide production are credit businesses, ALLETE's makes as X. solar and in customers tax be to businesses metrics cash ALLETE's we We're we about The investment leader

up our to low an has provide XX% locational potential to Equity, ITC. IRA moderate material that on New business, Energy adders subscription the upside newest For could domestic income the and

rate case Slides is Service & recommendation forward. The Power's areas key refer constructive case September rate Public decision expected and Please the and On proceeding in judge administrative was a X. with X Minnesota filing. the addressed moving Water year. this later of from to also Wisconsin front, is Superior law Commission rate of Light Power's And our case

of furnace affordable Steel's continue arc The tons report the Also grade rate in healthy disagree end commission's annually. the and outlook. the pellets some are with exciting XXXX While continue of Keetac This to DR Construction U.S. completion, in direct-reduced regulatory growing with, February. facility steelmaking to clean or of hot Taconite to will there for while enable facility the this enabling safe, expected that iron customers. Steel process These to capability pellets. Commission providing Keetac U.S. outcome DR we while million to Minnesota demand produce furnaces. to the we summer, or able resilient, timeline be January electric been plans began final retaining Industrial order on its producing will blast in for us ALJ briquetted to Minnesota reliable grade of produce announced fall production news Minnesota a by optionality iron the Power in strongly has parts upon be a energy of have to direct feedstock support supports transition extended Keetac pellets to has grade approximately service invest $XXX confidence pellets. deliver and hearing X our Power, to rate case our the approximately processes our and financially current million customer a case reduced

Energy company, Equity, elite Moving to fourth we New newest our quarter. a solid expect

this and the increased provide XX New the IRA resiliency strong Energy up above of with business. track projections details. prospective its pipeline XX%, Along X,XXX to has could solid future for that total New benefits credit tax earlier megawatts. in pipeline year of team's on have strength investment is our and projects the confidence only mentioned well original Please upside see Slide and the enhanced Energy for of projects our execution of with

energy for structuring redevelopment. we positioned at flexibility at transition incentives The country. the on new and Slide clean were firmly Southwest congestion earnings we are ramifications Clean well priority the Spring wind company's more energy in see issues this Energy Clean Please is more Pool have information well our believe Reduction Caddo potential is quarter and resources to facility, see and the provide opportunities to for and and these These are Clean and wind impacted financing strong that and increased inflation for the of legacy the where Energy's Power Diamond both Energy. projects. XX of than sites projects value Act by megawatts also ALLETE the the in of congestion Caddo will its strong, ALLETE ALLETE for XXX address for fleet, the Finally, operating our maximizing

and Now, Steve? quarter Steve our details our earnings full I'll guidance. year on additional to results it turn third over for financial

remind complaints quarter or to like per offset reflect rate period our retail quarter on Please for XXX our compared were revenue ALLETE's quarter lower $X.X at the income on $X.XX Bethany, a Clean Thanks, primarily after a the related the beginning due resulting Wind liability loss at XXXX. million. primarily filed for a of anticipated to megawatt encourage details Transmission The Power. tax partially after million complaints. reflect hour to reflects and Minnesota of higher XXXX for a over for the on of $XXX,XXX anticipated net return it by a on significant higher $XX.X company's return loss ALLETE after refer of refund from changes of congestion ongoing and XXXX. increase our the net sale Energy's million. regulated or This to to were project, in Today, Clean volatility to in Caddo period compared Northern of $X.X tax, refund operations refer $XX.X share due our to regulated negative of partially Power, XXXX Company reserve Earnings kilowatt a the recorded $XX.X costs loss XX-Q net segments. from tax in you net share segment items ITC's for per of to on XXXX and recorded variances earnings $X.X segment, income at income Energy of loss Transmission to equity income I $X.XX due comparison interim impact business net the the Minnesota million loss on million wind other to of A MISO few Pool would in on and American mentioned consideration. ALLETE's power and power reported project, a purchase operations share agreements net transmission income $X.XX interim XXXX this a $X.X net sale implementation market Slides million morning morning, million was from estimate to of sales the share was Power Wind under you and the and earnings related details. XX of that to good everyone. Energy million liability Southwest third changes third lower in losses its $X.XX sales XX the rates quarter I MISO Wind ALLETE estimate an for offset per Earnings we third the XXXX. Facility's ALLETE compared $XX.X per reserve increase This in resources earlier. American of equity to higher customers to Northern reflect of year. in by agreement. of net Results lower

included adjustments due income $X.X as the additional timing accounting income Energy approximately to in New of wind compared income $X.X to Results stock tax after shares in facility, wind a of Our in Wind outstanding. the XXXX. our was Energy benefit which in businesses, from the of which Nobles the taxes. higher Facility Corporate third from reflecting net X $X.XX million resources, million in quarter of million Nobles dilution our BNI XXXX energy New the from of and well and Earnings loss Energy X per net $X.X Energy, reflect include earnings higher recorded Other $X.X million of as investment common net price purchase investment share

Next, I'll guidance. turn to earnings our XXXX

panel a our our of share. timing has guidance are of guidance shifted the timing $X.XX midpoint of and of solar expect into solar per We updating earnings XXXX, results that to in $X.XX and part be project earnings to reflects due range year-to-date This portion a of to near the deliveries.

However, of for we take project. advantage this expect to now IRA the

mind end purchase momentum into We year XXXX Keep quarter New that the also affected project from strong on new will of transaction Energy's expect pipeline with by and price October results project accounting. be and fourth earnings costs closings Elite’s and energy in partial in year. growing in the significant financial for the ownership,

New our we in items, to XXXX. Excluding full accretion accretive be first ownership anticipate these expected and the Energy in meaningful this year do is year of

they increases Turning expected the the Despite Rock track Energy. Clean this year the by for -- closing. end Clean the of quarter, and resulting project and megawatt also Barn to third both in Wind the and XX are to ALLETE XXXX, significant pressures and the expected Northern inflationary to and reserve project are continues project in completed to ALLETE be Build respectively. Aetna advance is cost we XXXX continued and a taken on early Energy Red progress, Transfer

our Minnesota with transmission Slide seen we Public Energy Minnesota the our the Tranche transmission of Minnesota $XXX X and to of projects We solar, Midwest, the as Power's XXX additional combined supporting reflected and transition. approximate next months. provide and ALLETE a grid This of partnership, using year on certificate through earlier, reliability X solar the delivering of Commission in continue service additional XXX capital need will the and megawatts transmission Power wind capital The Minnesota build and and resilience in and projects. filing in Minnesota strengthening Utilities resiliency to permit expected of the in five plan updated a Intent growth participation line benefits XXXX. additional rate base supporting as project of our XX% a energy wind Tranche expects reflects Notice follow Power's and Upper filed from have the investments XXXX well megawatts a is part energy of of MISO's megawatts and on optionality, while to clean Great billion As be now as will XXXX, expenditure capital of customers we XXXX X, Minnesota clean reliability August XX within initial Northern for a line XXX of for update Bethany These approximately through MISO's as share route intend expenditures Power's With X% year. and IRP. base can which additional Central of River approximately be million Minnesota X. as investments mentioned $X.X

later been resource capital once month. by expenditure approved the also to expect our We update plan integrated plan has commission the this

improvements, American the $X for investment capital year Company additional forecast, would approximately recently investment Transmission calls result XX addition, for updated billion its ALLETE. which In $X to which billion in in system

a closing it supported Finally, ALLETE's $XXX I'll financial of turn to Bethany equivalents of million, credit $XX strong a consolidated and as in includes lines position balance XX% available ratio XXXX. September Bethany? sheet that of for now cash is million debt XX, back capital of to her and by cash remarks.

XX and in term. the with the the of proud amazing significant team XXXX, ALLETE's from case; I'm over The our and Thanks of your your to for quarter to we're this ESG New time, portfolio. near important more update, as at continues and Minnesota refer questions. which in year we a way Energy Energy's as pleased line you commitment as report operator open sharing Power's into I'll putting leading report of ALLETE, projects and Thank build execution results energy our we're this for the on our the addition recently year information, for talented the and ALLETE And interest the ask our We final capabilities with February ALLETE. stage with Water Steve. of Slide sustainability Equity, and you the XXXX. sustainability clean to of for Please optimization for forward of longer throughout highlights on the strategy, the in employees of updated thus well this & rate corporate action, positioning links including sustainability last XX, aspects, come of and future. quarter is all delivering look Slide future very to in Clean Power as of some transfer sets ALLETE contains this with strategy Superior to progress IRP, of Light sustainable investment that and and sustainability including on your And transparency. growth its solar action our and all our more far foundation to to

Instructions] our Brian from And Sidoti. of [Operator first question comes Russo

is line open. Your

Good Hi. morning.

morning, Good Brian.

Hey.

midpoint fourth the the insight, by in you quarter for guidance. looks and/or is if expectation or of driven it the Energy on confidence It follow-up can more from the improvement your other your given And like step minus? pretty a -- are drivers, Just contribution quarter a wanted big of just up or provide there plus to XXXX. New I the fourth mostly

Steve Morris. Brian, Hi, Yeah.

that take can I So on.

Energy, some Energy fourth little quarter fourth strong so New a bit So quarter. we as from about expect do New contribution from we in a talked the

our will that from industrial expense timing We've Regulated -- versus helpful. from depreciation very do has do Property tax to well. be our than been plan well. plan. and well. and been margins Noble, had expect as income is which favorable increase be as performing higher little and we a favorable going earnings sales We operations expectation higher has higher expect do So taxes to expect we a our

or the or pipeline. to Is on more closer -- just late those Are there development are New and that stage X,XXX megawatt that? pipeline then profile of early And monetization? way it. any Got kind projects Okay. Energy than project these to

the Thanks Jeff is for This question. Brian. Hey, Scissons.

all X,XXX of Brian. the think captures megawatts development, I stages

of kind was to XXX probability So that pointed we smaller megawatts But is the closed. there's be said -- we've what that weighted that. would that a than back

and ability on reference performance that, in and and that progress our that on confidence is made. to-date. with their pipeline the pleased it's the with fact plan, they've it's meet growing, we're the So based we based it's that want to what so pleased to really the We're

Great. XXX $X then megawatt update IRP solar earlier? on big the a And then billion. and just bump the pretty the project Okay. that 'XX. you the original 'XX IRP that in up that of the the and increase and from proposed looks It CapEx, like is separate Is discussed

take that, Steve again. I'll Brian, Yeah. Morris,

the for is IRP original projects. or it initial those So two

the can those depending on I this items I and that's will of wind partnership. look Bethany update XXX we see megawatts X, to Slide you in were that on the outcome 'XX, think IRP the 'XX, mentioned that And November.

that noted double we've that. So it's nearly

So we once stay potential tuned IRP. for updates some the the get on decision

Got it. Okay.

that So that's investment, of pending $XXX million and/or MPUC obviously approval? review

That is correct.

Okay. lastly IRP. on the just And then

in some You involved mentioned stakeholders Can of who stakeholders new share a are? to settlement coalition with of submitted to the us be commission. this diverse you those

great is This diverse that XX. task labor coalition exact so as city of the as a Local the IBEW able but labor, it's County Corporation Coast Brian. It's public see Development filed organizations, communities, clean host organizations, Yes. Economic energy variety well on Bethany, filing you'll Monday, of we a so a the of be including to county lift,

diverse take and very proposed we're it's hopeful to proud a coalition, able really it. So will good, we and agreement fact commission that of the were reach that the that

Thank Great. very much. you Okay.

Of course.

& Ellinghaus our of next from question One moment. And Chris come Co. Williams Siebert will Shank

open. is line Your

or for IRP at this you to that relative the How you everybody. would higher? in be you to and your have in come, point wind is you? and cost budget additional solar projects them be fixed your A, would of Hey, to this the what than how what inflationary thoughts to them projects what's much the on kind of are Vis-a-vis budget? higher CapEx environment, existing are expect materially the proportionately additions of to expect

Yeah. Hi, Morris. Chris, Steve

costs costs or today's updates update. when are 'XX, the build capital certainly that inflation recent these us we could impacts extent higher, to updated dollars this current but these go they reflecting 'XX we they in So with -- are in

stay just have So we'll to tuned.

whatever do low do for to can our customers. we costs Of keep course, we'll

an provision Do additional you think have IRP? the the you may any budget for idea make when to you

we and decided that. IRP the on do So XX, the hearing it will the would after be with

analyze capital at to that guidance Of course, our out it point our would though, expect, with an updated in we February, by we -- time. when might plan it. that take I some time 'XX, would come for earnings have

really perspective, there Okay. is to think The Is recommendation? the thoughts a industrial ALJ's have still? line what but might good ALJ's from top do any potential pretty there relative the about the mechanism recommendation on you commission

any Well, true yeah, recommendation, that you indication saw have up, go. ALJ will which opposed direction the the the commission the sales I of don't

are We for (ph). that on sales rate to in true up push Brian continue though, the we will giving mechanism this And case. particular up not

So more January. that. to of a hearing follow on Again, end be will

wind capacity? Okay. any Is there that there the IRP? additional Is required additional and solar the from resources for transmission vis-a-vis potential any of

know mentioned, do we transmission Well, will we be (ph), that and will infrastructure Boswell -- required as X the Brian that I transition and X.

evaluating system renewables always reliability and but as for more So needs we grid. important, our critical are regional for our come resiliency maintain really the we also that it's own on, customers,

those making obviously, news with late infrastructure And more evaluations additional of we always And additional kind of this these is a system anticipating are well. But connection as renewables. we're breaking needs. in so

we already DC upgrade an as -- well. we're amount of plan capital significant line of have our And the in a for

that pilot in having pilot storage sort of about for already, could for in the few storage CapEx adding timeline? talk dependent storage a a that the have be you IRP, operating incremental The years? So further Okay. is on out the little

Monday deem we by implementing on projects XXXX, filed with that significant refers that connection size really practicable Actually, in system. agreement of demonstration to storage we relatively our the as

more near as term well. So it's actually

Okay.

So…

on the And not pilot. dependent

us a Got Okay. And you you lower. more talked for win little (ph) you. ACE there? Steve, lastly, color give Can about being

last year. under a that because keep did was wasn't or not probably was X%, in which it was we two. earnings which mind construction, down impact is of huge in wasn't last driver about so significant. year, the It an Wind, it so quarter. service have also that And for this penny now It Northern was year, there Maybe Yes.

Thanks Great. Appreciate details. the it, for guys. Okay.

Chris. Thanks,

come from [indiscernible] our will [Operator your Instructions] next [indiscernible] line And Bank of America. Andrew open. Andrew of is question

Hi. Can Julien. It's morning. Good you me? hear

We can, morning. Julien. Good

Appreciate Excellent. for the time. it. Okay. Thanks

So to a lot if X% about EPS so could X% be here, I growth data out mentioned here, X you outlook upside, a but how include data X%, you here, that reconcile that first base talk quarter performance kind on base updated see too. really just points of in rate maybe you you the to And might you X done kind there. other still? that this how And can Can well does can here? again be XQ got to positioned that ACE talk of component that year, ask -- ahead off, specific about it? but you've some the rate not think here about know we next and the updating of some

Yeah.

good So, here. Steve Julien, morning, Morris

we term X%. we to would -- So are reaffirm growth our at long X% outlook

approved talked we to we the as IRP CapEx, have our being on month. this do work some So about, later do

that. more be complementary outlook wait going then you change get long guidance. look need the Energy also some next that to So X 'XX which and and But we'll information on case We January. long you rate at rate IRP pointed term But in higher. earnings outlook do our that but on from are going in could do we're Clean back this potentially the IRP I our out updating would to on February reaffirmation base reassess to expect we and Energy really be here the We on and would we term here critical we X%, our or to ALLETE New for X. and of when our approved our earnings businesses. And wouldn't year. be do this to until expect, any, if and that's coming

that rate back approved But IRP not of just here. the later I… include upside pie separately Right. does pieces X% the you talked The the And maybe base being from month. if growth to this about then to come the

Correct. That’s

recall, the prior ACE, IRA, other was if guidance here, reflecting the mid-teens, commitment remember of the I if quo I And broadly status side XX%, to right?

Correct.

should that we fully Okay. be the of And presumably, right? opportunities, as view forward a flushed roll into here updated

Correct.

And then…

Julien, then next the as and in under the year, get you out IRP consideration the long-term plan, early case, with next reflect and pieces then we'll we on we as we decided get that year. and and that -- flushed parts take have will in our our commission all for rate

Absolutely.

positives. are those the So

another think rate pancake Let's pressures you you do light structure I inflationary obviously, be it's talk cost think here. the maybe want just truing got even here do about an to inflate. case inflation sure then backdrop. likely Again, How or in -- And here? it's we've make What have fairly about puts seeing on this dynamic pressures. How quickly accelerating How about and of we're you offsets let's tackle separately, think just mitigating you too the equity of presumptive sales needs that positioning those potential about just do think about one, but takes that today? you've some up balance the you dealing But given piece our to sheet? How here. do also prospectively, the don't backdrop whether here, the about and question here? a Obviously, got rate -- case here?

Yeah.

the So here. equity needs

As regulated you know, many of the projects are operations. these to related

So structure. at look our maintaining our we generally capital

a several going the help for sheet advantage we even we here $XX far XXXX would million years. as which well well. We as try we have on balance some you we throw that to to strong million $XX we if into rely do to lower will IRA tax are monetize credits. expect about if It's on to as debt, next have out equity as can, needs and as equity PTCs So take the to XX%

to of inflationary to although So the debt can our cap start we're we committing not lower would with get rate outcome until what a case case. right of We're to can Not Inflationary Julien, increases. equity doing a generally, do course, our those with immune this to costs. now, needs. But we structure a rate equity. timing XX-XX of we on we increases, generally reduce

much. X Excellent. more if Thank here. so you then may, just I And

why about that. right? you're without the back for are to midpoint come as into thinking Just guidance, you to the here just want outlook, I got the narrowing

As kind of we narrowing uncertainty mean, think you love I of in the here? hear pressures today, would signify to get any the think your the get about about to kind that end ranges, that the does year, typically, I environment we as thoughts. closer of I

No, think I don't so.

or it. if I if flex look I is would plus that, midpoint you around And so at the quarter. want, it minus big $X.XX, is a think you $X.XX can the way is

fourth a is quarter quarter us. So lot is a for significant

not know. you much so quarter, Third as

weather So and with watching there's Julien. some that we're so wind more But no than -- that, closely. variability

plus you So $X.XX. can or around flex that minus

that effective expectations? putting you that And And can a Got in load-carrying that That's throw I right. just last changes back to even capacity sorry, if various and now? there? further then it. of IRP revision has speak IRP. then one in seasonal seeing about the are Excellent. here, capacity would can one maybe, to come out What actually on you're about right here. the be been MISO resources All If ELCC forth great. you talking to

we're it's MISO that. forward. huge strategy with our to very Tranche Well, such X transmission believe in connection MISO obviously, the projects we're critical, linked obviously, IRP of we another And transmission filing, say is in closely I Tranche are and a that's to participate of on that expect with current deferred part and projects just very but regulatory X. would all involved certainly going and why our those with

questions to it. Got here. me quarter. bear soon. I Thank Appreciate with right. this you on a luck speak you, guys. few will you All Good

Julien. Thanks,

Richard JPMorgan. from And come question of next will Sunderland our

is open. line Your

All about financing the a to looking morning side growth update. you today. Several ACE that notwithstanding outlook monetize forward source thinking at you some are regulated a the to IRA assets. of to time with start and utility do thank your this well? for continues as the benefits tick peers into potentially up? going the on the more right. there see Is needs in are reinvestment picture high Good for I and given strategically level, wanted this considerations sitting funding How ACE latest

question, of future believe very Yes. and our for is important We part ALLETE's Thanks the Richard. strategy. a ACE

some confident in term, no to in the is seeing really we're believe But SPP in that and future our of we're ALLETE's important strategy. market connection our that in part the question ACE with we that congestion mentioned we connection challenges an of with ability longer So address Caddo.

Understood. little That's bit digging needed then and to take? down it speak could how congestion what very clear. to And a remediate Could that is into specifically issues. the long you

Thanks Hi. question. for This Jeff. is the

wind reached commercial date So the again, XXXX. has in as a farm reminder, Caddo operation

So new. relatively it's

we're digging some one infrastructure in issues we'll is believe And it's So some There help. the is or other, primary planned area this that technology customers, upgrades then into. these look working we of focuses with us. the will whether of at for also

be and to go as So more we we're learning there'll come. here

lower maybe Okay. Understood. a equity needs. number And in ways, just then benefits bit including potential a monetization, broadly, to again, IRA of spoke credit would out you tax which weeks go about little

you're there? what market development side of seeing, terms project discussions, particularly of new kind of sentiment overall around and also interest on the Just curious the in counterparty sort ACE

Yeah.

energy market clean see to to strong. corporate on robust a continue the both local, regional, continue and goals, be they and national the We side,

is the we've tailwind rules opportunities, versus a with we prime that, mature the especially greater in the seeing and for to the really infrastructure, deal redevelopment clarity the with that past. legacy cliffs fleet it's than and of we're constraints to for think -- XXX some the that had there's our think megawatts, IRA it's indicate in I fleet, that's try and a we

demand still we strong and as there. So a see market is it

Great. today. for time the Thanks

Richard. Thank you,

would no call I And for showing now the further remarks. closing I'm turn Bethany to back like to questions.

interest to We have of your many with ALLETE. investor a your speaking day. and upcoming at hope your forward look today So for thank Financial in you We at of next you rest and you week. great questions venues EEI

conference. Thank and for this gentlemen, Ladies you participation. concludes your today's

disconnect. You may now