NorthWestern (NWE) 20 Jul 182018 Q2 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the NorthWestern Corporation’s Second Quarter 2018 Financial Results Conference. Today’s conference is being recorded. At this time, I would like to turn the conference over to your Investor Relations Officer, Mr. Meyer. Travis sir. ahead, go Please

been you, Catherine. NorthWestern for you joining at results and quarter available release on our Good financial results afternoon website have NorthWestern’s Corporation XXXX. webcast June thank and conference the ending is for northwesternenergy.com. XX, Thank released call the and

this We pre-market morning. released also XX-Q our

other management Financial On with are today Executive with us the well Officer the to Chief President as Bird, room the Brian address Vice Bob Officer; members as us in your several call team and Rowe, Chief of President today and questions.

turn over responses presentation, the comments Before forward-looking your to I this the and presenters contain call to begin, that please note by release questions us press company’s may for statements.

of you Harbor As will our such, remind language. Safe I

there of Litigation be meaning of course within the Harbor presentation, the Securities the Private the XXXX. statements this of of forward-looking Safe provisions Act will Reform During

business anticipates, expectations. our statements believes, this and expects, as information current based The future often presentation often address such in is and on Forward-looking intends, or financial will. our words performance expected seeks plans, contain

Our expectations actual publicly forward-looking statements in this and future We differ revise statements. expressed to no presentation undertake obligation any any update adversely from our performance reason. materially or may and business forward-looking for our or financial

releases with that press Although other public affect our our with based beliefs results listed the XX-K disclosed on factors certain and are SEC. materially. company’s our Form of The may along and may results expectations reasonable in filings assumptions, differ XX-Q actual in the are and

The replay Our be allow those over Bob open I up to of of will XXXXXXX. through under today’s at phone be dialed ask p.m. hand available on to presentation Time Relations, X:XX XXX-XXX-XXXX, the it results. To the link. beginning to access call, teleconference will at and Investor to today, Eastern our and found will code lines our With we audio Following website webcast again that, replay into the archived can questions. Presentations Webcasts northwesternenergy.com dial Company, our access run the

and you Travis, much for very joining thank this you thank afternoon. us all

Aberdeen, South in City major Hub the in Dakota. trading a are South known hub and We Dakota as it’s

the and partnerships important is that communities more no you our that is know, very have to we with there As exemplifies than Aberdeen. us place

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it’s So, several days. a great been

who and Steve you and continue up chair board Sullivan board Adik, just of as to to is know, strong member very Linda Turning constructive Directors. of Board Audit now we and have of Committee chair the stepped our

work it has lot good a done. good meeting of So, been with

quarterly $X.XX dividend Adjusted financial go extent period of to much earnings along to into and $X.XX shareholders much, for you non-GAAP transmission that Brian of XX.X% with $X.XX Diluted our share September liability turn increased compared deep per declared into share increased payable XX a same on favorable period the will results. a will last gain record the Turning of over Brian to period increased that, net September increase the and the to increased as to of XXX.X% due same adjustment year or compared income highlights million to a as quarter, the this to the XX. primarily with as EPS Facilities Qualifying I to compared And deeper to to it last or and board year. to and weather was $XX electric for lesser take per services. related as demand same XX% the

quarter. quarter, over out, $X.XX earnings the share Slide from financial for quarter-over-quarter. Quarter results by control improvement the Bob continuing margin improvement improvement, an in get or led as the will expenses was a million Thanks gross approximately operating pointed just primarily improvement XXX% to particularly or a summary into net that million approximately administrative per a minute, Bob. XX% quarter-over-quarter million, for XX% in $X.XX, and income X, and XX% diluted more again in On second – a results of $XX general driven to I $XX.X $XX.X the cost,

We XX% X, improvement. in on had speak liability specifics. will $XX.X a $XXX.X margin a improvement impacting change QF, came from The gross adjustment. in I into electric Facilities a gross more gross XX.X actual million moment. the of that’s net or particularly will primary Speaking Qualified million to Page margin, that get income margin nearly or I in

up In primary addition X.X X.X side income. up volumes good use a net million, the electric moving again system that, the we transmission items and electric improvement on side, X.X margin retail of million improvement on impacts the good quarter, actually of had volumetric gross year-over-year on gas million continued basis, that

on We change to gross had to in the of margin and recovery P&L. Cuts a met Jobs year-over-year offset during million the trackers netting that are the that impact deferral things the offset that million We was within That property the in that minus $X.X $X.X $X.X million some or in a with gross taxes margins. increase by P&L Tax basis million quarter. reduction in have those items for margin our elsewhere Act elsewhere decline consolidated partially $XX.X offset due gross

the Speaking the future was broken an backed first Facility million $XX.X is this into unrecoverable two really out improvement part reduction earnings out Qualified resulting non-GAAP calculation million on look actually XXXX. about parts: has QF an out-of-market to handled we at million of so those benefit, reduction results the forward-looking be loss in benefit NPV $XX to from liability that the liability million of expected in or basis in and our that and back our from similar costs, the liability, $XX.X estimated costs less how we reduction that $XX.X

benefit other was two of QF million non-GAAP adjustment that nature largely actual we not benefit outages in to QF our supply was from pricing have to at that earning. the annual reflect due by The to costs lower and our driven the $X.X annual related the and output component and of the that facilities due adjustment, excluded

great of compared a terms to Moving South a normal, I compared weather second we in in June Nebraska in see million days and that weather it moment year. and little helped April the quarter bit even and $X.X there best about days as from though to getting if normal the warm we at it, days, approximately in South that’s bit South actually cooling and you Page overwhelmed certainly a page the was Montana unfavorable extent then was whether at you in Montana May will degree Dakota in that certainly to unfavorable can are certainly forward you will unfavorable and from months it speaking favorable. that Dakota warmer you on when math normal favorable a during as $X.X very actually red quite I versus to bit is Dakota. box bit weather unfavorable in had did the colder look for in the just day associated you And cooling it was out heating actually to and point Dakota and as my we estimate part load X but look perspective cold degree describe May South Montana, April speak in Montana, capturing it prior there had cooling on if Dakota enough degree our on a offset South see as to in a warmer the was way of degree will versus in some million a heating its and is but cold wasn’t with can And we

year, prior a South the the actually on basis. the overwhelmed Dakota versus favorable year-over-year Montana So unfavorable slightly

operating, X, $X.X X%; Page up of depletion or million almost X%; up million to basis million depreciation million, expenses $X or operating X.X% second taxes year-over-year or $X.X quarter; $XXX.X a administrative up under expenses X%. $X.X forward on for almost general, the improvement, million Moving operating property approximately just on expenses

that look at quarter-over-quarter you If kind of look expenses employee piece, at did actually pieces we we We increase basis. in in increase on two at though. a the When you look impact income, really $X.X have actually in in million the OG&A OG&A benefits. were down an net change the

know up operating, $X in from $X.X costs, labor well that net medical in year-over-year net administrative of cost did those non-employee favorables are income estimated impacts $X.X completion in terms million expenses. income perspective, other income effect our items as directors’ XXXX a DSIP favorable but that valuations offset changes due I had earlier, had offset was higher higher than and depreciation higher a and that OG&A basis. of have other Those pointed and year-over-year and that of two taxes $X.X we that general as property non-service basis claims primary million slightly from as comp and the and you deferred actually cost a have We year in was plant million we those is of keep primarily cost pension the other in plant change, that’s things prior both elsewhere down in million our we component, to Property ended are program income additions. variances had we $X.X OG&A costs, increase an our OG&A some of a increase primarily maintenance other helped and drive total the annual additions lower that, on on $XXX,XXX did in million have the impact the up all

taxes or of income as million, was deferred net funds lower expense a of director during X pre-tax income of quarter-over-quarter in taxes and a Page deferred items of $XX.X talked partially our in to used nearly improvement. in shares Below lower relatively forward XXXX. course a income previously, of offset operating the or a before of XX% capitalization comp income income million was a $XX.X about $X.X that of basis, result an million and purposes. primarily AFUDC Below in by improvement $XX.X pension expense increase decrease things lead million, a on to up and rate a loss Moving were $XX.X federal up both basis. $X.X statutory bit Those million a tax by XXX%. primarily higher offset were operating interest that an those improvement was Other flat value of I non-employee result from million other income,

a have our loss federal the I’d was for to actually One anticipate driver that rate tax year of as lower federal the for peers of we range. you be had at Speaking about is as at pre-tax depreciation, pre-tax effective higher did the again point slightly quarter that’s ETR we is income page that and income thing higher increase lower calculated the that had result to of rate point of tax, can increase reconciliation bonus to through Page of also tax see of that a a XXXX. benefit statutory that flow-through as rate of result X% slightly the XX, we the items of income on better the primary the as statutory even other out end three Below talked tax million. X.X%, $X.X top on rate. and an credits increase the benefit we X% in actually as but on a page less income thus well, have was impact, do production a between less, the state result primarily million $X.X primarily far tax The

total Moving plant under on assets up just equipment million. and to flat. are Property sheet, balance the $XXX stayed

see also a the in receivable decline seasonality to our We would from similar you that in what accounts have business. see we

our down was million in and ATM the program as $XXX look debt means to of page activity the up again can reduction de-lever so the there earnings the equity ratio XX% helping comfortably continue flat, that company. to $XXX, impact out of utilization and XX% liabilities by see a debt in range, relatively our to you thanks of offset thank and our incremental On improved to side, shareholders’ to equity capitalization now the at at XX.X% to bottom total

in costs receipts cash improvement of to a but our flow XX, higher have and we from the in in stock there in million allowed We of to our customer the of Page fleet. had incremental primarily bit recovery certain increased due grow Moving an improved cash provided An acquisition forward [indiscernible], flow perspective common to acquisition, activities. continue benefit $XX our cash us cash plus operating by used an also made to proceeds of on activities from of the small invest supply increase issuance net a did collection the income, generation investing to trackers.

that used incremental noted $XXX as down just of debt. million to also We pay I early cash approximately

non-GAAP X us GAAP understand exclude a on XX, earnings and for forward do we and how We million the the particular in did on reduction who $XX.X third both purposes. far that’s is and the left a on shown the items This earnings numbers for works, far XXXX quarter. non-GAAP the the of have Page do we do to from certain and effectively unfavorable ended in get ‘XX to we well. middle in in excluded XXXX the basis as of ‘XX are the adjusted take liability and to XXXX exclude you right also of certainly with on quarter XXXX We comparison this Moving going QF We weather. basis. towards end the GAAP quarter-to-quarter schedule weather but is from the quarter move margin liability months those margin

and We offset also better display basis what non-GAAP both non-employee other earlier expenses income. about items OG&A just that primarily deferred in pension and a talked there items a the effectively are the to other have believe properly display we I OG&A are our compensation of since from two

the X.X%, take a the you helped QF expenses share taking looking of a liability. that pre-tax those still which and prior a that in the quarter, make for those $X.XX had actually on operating unfavorable Also mentioned back gross margin our of for items variances throughout $X.XX P&L at improvement per diluted of into as consideration, earnings you year was compared adding non-GAAP adjustments, quarter. a for $X.XX that to operating earlier, down decline the total I for We gain diluted all operating If quarter keep the for the through of our net from at income only have EPS $X.XX XX% strong when helped out on weather we the we expenses improvement, and $X.XX X.X%, to and certainly non-GAAP flow to and and income stay depreciation, continue property up able are so OG&A good XX% income perspective. XX% even our we in to increases though manage to basis about of on taxes top had quarter

recovery the time Page Moving chart remind top of in To page, XXXX We pre-tax what’s the income all those in average shares income million, assume that folks X.X% of in the additional X% meeting our remainder weather. Montana include, $X.XX rate think non-GAAP any guidance, demonstrates EPS PCCAM and and quarters, clear to like there the on in our thing to proposed so the and rate filing our no over to aware, bars $X.XX filing at square our on blue Jobs we We of provide One XXXX, and change planning guidance – not, want the right are chart Cuts for would the that adjusted of guidance include and cost supply prior terms shows XXXX this earnings terms far from growth regulatory equitable do of assumptions boxes I are our to normal XX, in plus of history then just guidance the provide I $XX.X that though is what’s line Act the we it not an that X% guidance to point of we of which filing. any be you quarter. is well and Energy with thus always a reaffirming diluted during Tax I our not guidance XXXX should guidance. our of pending year. our tax equity in our does out to does treatment from

a our customers through to growth combination long-term return dividend investors system expected continued growth earnings X% in total to provide the serve communities and X% and of our to yield. our Lastly, investment to targeted of

XXXX, to the favorable of $X.XX. $X.XX $X.XX Turning actual and of In month of to our the at of remove for number far total non-GAAP of top And it June $X.XX, year non-GAAP gain liability below four in we to X weather $X, is comfortably side diluted EPS talking $X.XX $X.XX, year results, the basis can achieve X full see order have XX on $X.XX $X.XX. year-to-date a QF QX, a three non-GAAP remove between of our of EPS to a the the see which down from XXXX in ended top need basis what our guidance QX year-to-date the an $X.XX, $X.XX for the June brings achieved to the Page down on to looking and about quarters and when we of to us actual at page, achieve page, a to and in full ended right XXXX month you you will left XX, adjusted our GAAP in of $X.XX more you again we on EPS. XX, at reported remainder year-to-date

Moving Bob I’d to actually forward, I back looking guess pass forward. it

shareholders way, on some whether do underway implementation fair have we goal that in to very obviously through proposed ensure that, benefit mechanisms is we or tax that keeping focus the ultimate to there. on keeping investors segue ensure historic of while flow multiple occurs. Great reform, very simply in And proceedings – to jurisdictions importantly level customers does high starting our front, regulatory Brian. not, continue will you, Thank treatment to planned the federal of

important are South a grid focusing Process initially systems MOD on and distribution have On Verification and in with parallel Dakota an area to with our Montana compliance continuing and and really on in on implementation you by moving this group PIM’s strong what Integrity from guidance mechanism. particular we end towards move annual ahead power infrastructure the first on advanced are that associated on and plan electric aligned guidance now cost case modernization, Of of to rate continues advanced a plan be to in looking from implementation distribution third, Dakota ultimately investment in adjustment South with stakeholder from then preparation credit both our South metering taken working very filed to Nebraska interest we Secondly, core of we basic And group in Montana of there been was infrastructure XXXX in have what our and we we to call of latest possible of build group, based the really consulting stakeholder and our management our talked investment are with to our South see conservative really as year out Dakota. grid end-to-end group them customer in and that a Montana, communities to they group more XXXX infrastructure, have network plan Obviously, and Dakota infrastructure engaging our ways creative with into natural detail to focused. to a and be values policies and allow interest. test our service approach implementation stakeholder over much have and an and the coming the to with do about our gas in in but investment, moving us significant infrastructure will quarters. more successful safety is we conclusion capital as have discussion future distribution There transmission infrastructure group system infrastructure transitioned customers’ requirements. vision

sponsors needs reserve our actively electric end is Montana cost, updating address in Montana risk this needs been end even by generation Their detail margins supply In focus request group plan and retirement this the the lease provide Dakota, in assessment has side. lowest on the fits the be is Montana. sustained the month the evaluate plans discussed for year. A release supply the supply the intermittent at benefit the on previous to that approaches in for of for calls and economic that to fleet or opportunities side, but to due and the our major capacity will plant. focus core been South those the potentially activity that least towards are in also have much local information Montana has look RFI replacement plan we and then and to of Our exposure two and distribution and in

in forward call. us the implementation Dakota detail and I our in South October think more discussing to can you look plans

good We including property have are mitigating our against of low to a labor course cost continue think we particularly costs, and of monitor job and and operator they marketing I benefits those done increases. peers taxes a

control Still well. as cost to value. Tax each have dockets benefits is that customers on do detail receive Cuts of in jurisdiction fairer more an So, investors mentioned, ways are as I the Act implementation ongoing bit ensure and that in a important to Jobs initiated been

So, we we my filings Nebraska. from impacts view don’t do have expect open, or

June and and difficult of a you do year back all is the and concerned the real very is essentially back reopen I the historic think net go XX, to by of are with expenses an of impact or customer million to corresponding not We there methods, method with method if two to result, to current but investors. Act reduction an a was historic deferred using aspects concern tax one a test the in and offset all alternate it’s income. asymmetry able about course turn and calculated test so clock no approximately Tax using the as historic one we expense, income on As benefits implementation, based associated deferral recreate fairness books that revenue $XX.X and

to expense for offset million, now full and million expected $XX have again $XX that therefore no net would reduction current would We period be would the to revenue year income. be in an reduction income impact which by XXXX equal

method detriment the historic be to do of the of result customer million Nebraska benefits and in would therefore a the that cash $X application Montana are tax use in pending schedules additional been XX refunds August the and scheduled hand determined hearing in Dakota $XX could of for regulatory of liability XXXX and earnings a pending. flows exceed has result will pre-tax million deferred other dockets South the the and revenue On in

So as updated X% result we to a paid XX%. between of was reform, X% XXXX tax our have EPR previously that and assumption to

and also We regulatory now liabilities. year million tax fully deferred credit XX have anticipated reduced used we to last this this about and December ratios will and our currently in XXXX currently as important of to XXXX. be of debt be by Previously, $XXX and are existing projected liability coverage course, in is reduction adequate was have assets we offset NOLs of our – ratings. believe maintain we

additional regulatory could could to credit important. downgrades negative are actions equity issuances further necessitate However, lead both and

and between significant investments gas capital in had and plans capital between so of above we the and are distribution that out not just that below flow distribution is successful is that program, a to dated Turning $XX, price through share balance a on electric consider average funding as complete XXXX, the But the have been as adjustments discussed We really negative and and gross now to equity the on current forecast a note issuances necessitate level reflected we plans as regulatory this anticipate equity the years time. good further combination issuances. a the well X projections for should this cash projection capital also no again actions negative XXXX, additional certainly the this could based current at or equity equity with over X-year capital jurisdictions these in regulatory have next actions, we anticipate billion. forecast we based and a see don’t further by estimate NOLs $X.XXX before, cumulative

first infrastructure include we previously, supply modernization of in issuance starting South Nebraska in of million about to pending about note have and of and investment related those previously the capacity generation the been first jurisdictional did has forecast AMI million we grid discussed involved should adjustment. Dakota two XXXX $XX plans million for incremental again changes $XX included there previously removed in this, and been has included about $XXX jurisdictions the and As

So, stage questions the our queue with open up that, ask first. questions we for I easy did to and operator the up

you. [Operator Weinstein with Suisse. Credit go Thank Instructions] We’ll Michael to

guys. Hi,

Hi, Mike.

Mike. Hi,

well, means right? Just it excluding on your looks gain it’s to QF not as from the for you right are reach year, guidance of like guidance part right this Slide XX

That’s The correct. our excluded million we that, from $XX.X guidance, included in right.

to just Okay, even will And rate the can a that. you you you about September the case later just than talk no could be case wanted if that that confirm PCCAM confirm filing by is XX resolved time? little bit not

yes. systems go, All

So, the do knowing the case you how rate I is how you generation do mean, without how turning do side that, file out?

we will We and will have to that get it noise done. work through that there certainly be will

on bit more to choose might reduce the and you the commissions a from color could on And you ruling they little case? that bifurcation, think why just Okay. although give themselves

a be is that year of the speak can’t FERC the the rollout. through the serve stages for We of case, is industry but there could but and end would would Commissioner, really he that early

Commissioner’s cases. been our been really has has of terms experience cleaner allowed the and experiences In orderly more bifurcation and bifurcation has conduct the in

So, think worked into we a that’s allocation that’s positive cost structure an input scenario that pricing than and well. developing requirement is in and revenue

to approach industrial our think and it’s that period an from commission’s request requirement of the certainly creates well. effectively about concern as leaving uncertainty open. troublesome bifurcation perspective have We revenue We an extended the

the that is to think Commissioner from decision? it Right. rollout And I true bifurcation

we motion yet. our earlier for point have out this of on work in a – if week, reconsideration should the session don’t that I specifically terms you written the are to referring order

Okay.

Okay, thank you.

Thank you.

Dumoulin-Smith. Our next question Julien comes from

Hey, guys. good afternoon

Hey, Julien.

$X.X to to clear the the these few if little pickup laid first, maybe? to how guidance around then where QF outages on off little price benefit in this process not, bit Mike So on you is very impact or escalations bit but more be annual you adjustment when you more, here. specifically why stuff, thought left give I now or your can million different the comment a related that to at the Maybe questions more contemplated, on are can all a just imagine

a an Well, than liability have power the at the procure because costs able cost that outages itself. lower to we particular impact, actually are the in QF

time, in your has period fourth and small the quarter of $X.X So, this is, have period and out knew of guides, but service benefit point actually should QFs the that year the benefit level guidance any year amount also one have of year, million million did And the wasn’t helped. and certainly $X.X a start last it was we in we amount did to had question at as of time because of out into certainly a terms of that for the this well. first the in a we going we of this the outage

increase So the if will a the you $X.X was million basis. on year-over-year

you here outage importantly, Right. impact on basis, the more But on us necessarily doesn’t based the specific as year-over-year outage? say an but element ongoing impact the

must on a of QFs forward doesn’t were and service time. That’s right. That’s impact long things period these a out going for year-over-year, basis of

some looking outage this defined clear, on be based of in was some your this, asset? what degree already into guidance had you amount a setup to And XXXX with like not on necessarily of

Correct.

quickly? here, little us a of tandem about if Excellent. you the keep band then a PCCAM, of in to the give going in you kind process sense going to obviously you here us that, maybe using think on earnings to with settle asymmetric even And is that? maybe of can sharing of can ongoing real that bit chance just to there any bit is more sense a hit sensitivities a are impact give am I just here little just of the

I will speak the question. second to

We parties. constructive are to open discussions always with

open but hand, discuss parties. specifically, the On settlement we can’t discussions talking the we to other are always to

And the Julien, dead very on not and us like ascertain impact this sharing call. and the the about comfortable asymmetrical it’s the of bands talking question, of on first for certainly to difficult

little Fair tricky. it’s enough. know I a

– last sorry… the just Now,

case a I depends I comment, is some as the ability going case us am will know including view have that to a ability particular thing, and the will how – ultimately a the to one this for to agreed comfort settle settlement how add that with settlement generic to. confidence parties, but on approved be that in much some you regulator might the

the fair one-time quick million regards pre-tax a earnings the million from and reform is comment. $XX applying last the element into that ongoing That’s you can onwards if method impact adopted? confirm tax historic just ‘XX of an question, is to or a with to indeed Perhaps $X element

Well, you argue, until right. case it’s impact get an rate I’d resolved a annual

impact be well. So, an portion you for ‘XX could and could ‘XX annual impact of a as argue

to on a Now, will again our the issue way have with. method historic we capture forward this basis, course also elsewhere if capture to structure, an tax going appropriate all would which of handle in they but new will the been costs increases begin

new So that that, insert time this rollout? by the rates, you your basically whatever date should effectively expectation get is that maybe

Correct.

Okay, excellent. Alright, excellent. Well, thank you.

Thanks, Julien.

with comes Our Ridzon next from Paul question KeyBanc.

afternoon. Good

Paul. Hey,

Can calendar you PCCAM on dockets? quickly review the just the tax and

Sure.

XX. August on briefing our that Let ongoing On due up is us quickly. pull PCCAM,

held that. testimony opened for reached, leaves different So, we has those are and commission will and we is negotiate earliest filed August tentative sometime Montana, In a to and submitted September, August don’t sessions of X intervener bit where we Act then deliberations at but Nebraska in jurisdictions cross window settlement until the testimony the for Nebraska, Jobs Service in a decisions the obviously turning decide due expect Public essentially Nebraska little been typically approach then after with municipal review. work regulatory a is XX Tax hearing and be opening on the to testimonies, September Commission with rebuttal schedule ultimately rebuttal Cut and the and the the in time implementation decision

the are point In waiting FERC, the by no FERC is So, are we Dakota, which for from we South the decision. there this settlement At Commission. staff in Nebraska deadline to needs positive are make with and real active those the at discussions to-date. Commission a

They have this of FERC you November. intended days, or move XXX course many within all these September filings. to earlier the into that act However, spring, did it would which of indicate on

on and this has with intervention the any on legislators involved commentary PCCAM Any become the legislative issue in Commission?

legislative that. comments the beyond have developments oversight I the The is in of has docket, committee interim docket and no an but function aware in certainly

very much. Okay, thank you

now hear Jonathan Fargo. will We with Reeder from Wells

Montana specific a timeframe the Hey, more be Bob. think you in decided? as I you give miss would reform Did treatment when tax

And be a in specifically, there to schedule later the will kind on Montana hearing, In of that be the will XX. there a briefing hearing year. push starting Yes. potentially August some would the presumably subsequent and to then decision

Okay.

before So specifics no this real other end, year than juncture? at

say to that. beyond pressed hard anything be would I

historic bit $X you of you tweaked to cited test $XX QX the opposed as the gave potential X like to million to Okay. the method of of call period numbers get higher million kind the Did on kind range today? some perimeters an XX

Yes, Brian, ahead. go

one at we also notice there I’d mean, for numbers slightly. but that, the the the midpoint a we of also range current the say the you increased methods method, bit through expectation of will decreased is and from bit. they hat could obviously, looked argue taking year that the decreased would adjusted the but the and did a I range we are and total year historical change, consideration change differentials

Okay, you And approaching you customer the filing at more vision can process it. shaping you on plan then finally color rate give if way the Montana how and in all and are little to a what the got stakeholder request? it’s

We understand a the the the this policy. and Montana, but original gather at we to seriously. that public have a filing are customer to input filing the case, Northwestern. discussions areas of facilitator. had have success to very where certainly is help of work doing What look over tremendous case, a what part the complete group, to disconnects and we we appropriate more September point, XX second Commission I in little at identify really going this stick those stakeholder set in with differences, group The years, notion around the that are then at got design been that the rate at narrow valuable. in some Yes. group, Well, the forward to our vision interest this current groups in and do of backdrop given them up nuts we the find will take between is we to least of of We least key to regulatory expert company In this policies soup customer with trying last bit, end we and that an was Montana the rate file case but use Montana. inform of be for process to think diverse outside intend identify with is the right a external be relatively we structure, expectations look address interest information to at are might heads a relevant to now trying from situations that of

Ann former early the Illinois who modernization group. Illinois to reform the of McCabe, sustained So, broad a the going we to is of Commissioner, in Monday, about month, Minnesota. be actually in regulatory in the in middle on a heard very speaking grid was Last stages effort

Mountain CEO when We be comes Powell, the are interesting Mary that at looking up. Mountain also Green going Green fall doing of some this things been has to

relevant set whatever be. or be happening of but to than little So, bit perspectives might look is REV example we the California to in putting a New group, that at of are Montana a some for pretty would front examples York more this trying in diverse

Okay.

kind would of guess rate your So near-term design I I stakeholder very the it’s big of of case? aspects focus, a influence kind picture throughput, it guess

but based information case not stage. sharing really on – our group, be how was that to it rate that will September, will entirely, on but still in the views primarily be from on – in input not because discussion is at going that the, really not the an of so filing end conceived, filing originally will a we As the input, of again be complete

appreciate to the important you as my luck Commission present good and coming questions time in Okay. taking to the I the answer up. with stuff Well,

Jon. Thanks

Jonathan. Thanks

comes next question from with Levi ExodusPoint. Andrew [ph] Our

Hi, guys. you Can hear me?

hear Andy. can We you

already, based two you any as ones, so of you in guidance thus guys regulatory middle, my Actually fall as what your low the now, end again – simple right seen you most far on changes? questions we do the just really just are excluding were end, range far think high asked do have where

X.XX. to X.XX have we Andy,

Okay.

towards So a you of middle, are trending is that the kind we are little seeing? what

to X.XX our reaffirming are X.XX. We

you one consolidation industry? but continuing as NWE, whatever more And the in the and know this discussed on is to like as M&A would view do Bob, of for second before within you and Bob, the I far context obviously have we your say guys guess context I fall where of the

point Really, at this no comment.

previously our guide that. I We have have to really don’t and views philosophical offered any

on much Based say? how you

Aberdeen. in have here quiet We a bunch

great. Okay,

You guys have weekend. a good

Thanks Andy.

Glenrock will go Associates. Patterson with Instructions] [Operator We Paul to

Great, good afternoon.

Hi Paul.

that’s over One we how million $XX.X through of if ongoing there work is your answered, about has but that that been earnings, as work way their question benefited in time, any you my the earnings forward? not the does on that just going included contracts impact follow quickly think that me, should

Yes.

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great. Excellent,

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great it. weekend. Okay, much so Thanks and I a have appreciate

Thank you.

And have we Michael. a follow-up from

One it million fair but a to the was that $X $X.X last excluded follow-up year. quick over is the that hey. through? million guidance, ongoing not read so outages, benefiting, and Hi, related from the a that’s adjustment outages, the QFs, the million improvement Is in guidance benefit on from that’s the benefit $XX.X about the the actually and

the the we million million, on we guidance just year. give aware the end last impact a you $X.X was the anything fact $X.X year let actual are that $X.X me into the out was I little this basis, our year-over-year $X.X though of wasn’t of But bit not increase you and amount, to gain built the Yes. small margin the year, had am of straighten It increase that a a are directionally number. since associated million at you so that Mike, there going million correct, amount certainly with near outages a

right. That’s

what’s a thing it I last same why your is the you up almost year, assuming or over So more, didn’t guidance the reason move share. Is thinking we about $X you like million it conservative the any year, a $X.XX of being was were are matter little on this at if there mean, range that? all

My thinking as we Michael. at our have guidance reaffirmed $X.XX,

you. thank Okay,

the left our perspective. There a year of from is to bit quite

you much. Thank Alright. very a Have good weekend.

Thank you.

Levi like Thank have as follow-up it Andrew looks from you. a And we well.

let’s this time. Okay, try one more

and So, and if normal amount as would weather normal comes in that year everything kind the year, had that you you as million, conditions lead to, been now have and of the expected extra $X.X midpoint? end between earnings guided so to the of do above the book

again, is same. you Andy are appreciate and answer the my trying I

our to $X.XX. We reaffirming $X.XX are

on Andy, follow-up Brian what questions. or in you I thank practice in to is a you is, tax This the when wanted so stand great for docket. is tell the for month

will you, for We Have good it a needed testify I else help Alright. weekend. too. someone to

Thanks.

Gentlemen, no additional questions.

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quarter. you call, the joining over on coming So, look next visiting the us months again, thanks and seeing to forward for

Thank you. participation. Thank today’s all your gentlemen, again, that conclude you again Ladies conference. and does for

You may disconnect. now