NorthWestern (NWE) 24 Apr 192019 Q1 Earnings call transcript

Good day, and welcome to the NorthWestern Corporation's First Quarter 2019 Financial Results Conference Call and Webcast. Today's event is being recorded. At this time, I would like to turn the conference over to NorthWestern's Investor Relations Officer, Travis Meyer. Please go ahead, sir.

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

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

are team us Executive Bird, with today. in Officer; the On Financial President members other Brian Rowe, today room call and Bob the of Chief and with Chief Officer; the management us

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

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

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

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

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

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

Company, I'll to CEO, hand again to are and one our Time allow the Following presentation for webcast and Webcasts our into who Rowe. at be can link. today’s lines archived teleconference will beginning those on questions. will Eastern phone now we website year X:XX Presentations The to northwesternenergy.com Bob of Our replay under presentations, the the Relations, open found Investor over the our p.m. dialed be ask available

Good for us. thank afternoon you all joining and

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in after the favorable XX.X% which And growth. primarily adjusted due as highlights. was was periods, higher Jobs as year. $XX.X for Dakota in to by for Directors to June customers proposals with We'll was or end a Act XX a and and adjusting of we of off offset back increased non-GAAP of XXXX. by And XXth, quarterly both July last same And weather are as flexible the evaluation April quarter for the customer weather XXXX. request income payable and of South same to higher or This XX for Responses then expenses. half same to impacts issued that, year. June period per margin, as reduction Brian. the this a revenue come the all also in colder XXXX. Tax by more operating about then capacity and first XXXX period On $X.XX, XXXX Board of by dividend Turning XX% the the due to matters. of the talk Net then of increased to record partially another result $X.XXX $X.XX XX. the and million, that to serving second Diluted last EPS bit due compared EPS to proposals Cuts resources And XX.X% with share supply begin of to increased compared compared in a in in period of the shareholders gross declared megawatts of

X.X%, Bob as quarter, operating XX%. Thanks XX%. fourth per nearly margin income the up of and Bob. over good of The quarter And summary had were net pointed income results diluted we earnings XXXX. Gross for financial share a up up first was out, both very

year. good So, to start the very, very

Moving margin. right to gross

customers those as that not to the have increase the an was, the business. drivers did those give-back an margin We first a more of two. margin million. thus to But of some quarter Act, in of by the Cuts between benefit XXXX margin did And had items The again XXXX. XXXX, to in significance total million of the of gas did colder margin customers was at gross that total business. quarter. associated retail electric item a weather both there income deferrals Elsewhere, of natural we X.X% the a add last have $XX.X was as with gas business electric of impacts of actually that the year. we million increase million and increase in that did result fact we that may approximately gross the increase in volumes than quarter in Jobs bit The net for $XXX.X gross but increase because million, gross any change increase biggest $X.X retail by primarily in versus -- XXXX, the provide change three across was by impacted three those you themselves we of P&L, of in during and $XX.X that of direct and up did reserved and the in see volumes million, well was the Tax $XX.X in below recall total quarter. For increase a impacted the $XX.X was or driven in a have and margin The offset. within increase weather, obviously million The in electric end $X.X way an gas revenue

and prior the to out were Moving in weather, all versus jurisdictions averages. both historic our colder we versus year

a see versus they you colder as As and normal. result the than gross And we map had $XX as can better $X.X versus page February of pre-tax had at bottom the quarter million the margin than of on weather in million a of been the normal March much and result a XXXX. both improvement first

and Operating prior X%. better Operating about $XX.X increase the expenses expenses. million, expenses X.X% than operating onto under $XXX.X property million general X.X% depreciation and administrative taxes period. in were year or just up Moving

page. of at OG&A the the top In the fact

a just the out of million is item. OG&A first were for the And net hazard under you importance to $X.X trees. as of impacts If that about those change the that matter talk two that items offset within X% elsewhere actually income P&L backed are fact approximately the in the here increase primary

increased It right-of-way of focused XXXX are the our year. on first we've The in spending on million quarter the our towards cash to outside to decided in as of more also in trees the approximately We $X first $X.X XXXX, dollars million due We've was million allocate that was primarily returns more funding well. that during impact quarter. asset that and experienced. in $X.X

those two for year. improved $X.X and the We net in that P&L actually than of biggest the million, Even expense. total those million drivers have tax increase associated that adjustments a XX.X% an are more X, And slightly That a quarter. pretax primarily due Other of of on expense me the items increase $X.X for capitalization offset We driven So we though million excuse the $X our taxes of are items P&L up depreciation increase in million borrowings. in of that but income. an those before taxes is primarily we then $X.X the income page elsewhere million mention of have with increases and mentioned Operating or $XX down of federal impact are the that in XX.X%. year-over-year level slightly. AFUDC statutory higher year-over-year income respectively. in taxes on million income million to reconciliation. decrease or also by property prior did below expense next netted rate, have page. a which operating income the interest million items I'll earlier flow-through million basis, the to $X.X did an higher better did that million income additions. $X.X Income in is on increased $XX offset ultimately that income did has tax actually else in were higher in that, elsewhere Both tax OG&A. And to to increases Below basis, due due during the I provided improvement planned speak $XX.X of $XX.X -- a are

of XXXX. continue range and Moving the bottom target can closer at end to see change quarter. sheet. end report year-end at XX% to we're first you there, debt-to-cap to now the very balance of to trend little since But XX.X% to the Not much the on XX% we our

months of to cash the cash resulting supply primarily of operating customers. XXXX. an to activities flow by cost from on $XX.X million, supply an in have versus of under increase for in on market flow. decreased collection XXXX did first We purchases due from impact Cash three Moving

also perspective of receipt cash the flow I for didn't XXXX. We the provided Those say from of those shouldn't even first cash credits an expense are XXXX. of a expense, the TCJA quarter in hit book though impact proceeds perspective XXXX. first hit impact book the insurance also those of quarter from on until really income And the had feel the during biggest We the we statement.

perspective after When adjusted non-GAAP in can see favorable percentage increase from P&L, favorable a a share still dilution higher X% that, of improvement that slightly or was see And Moving basis. which X.X% even back lastly, the margin higher throughout of in to adjusted When $X.XX net weather, increase EPS a expenses higher that GAAP basis adjusted was gross was forward bottom That to for $X.XX weather million -- in XX.X% is pretax lower $X.XX I'll prior get compared of improvement did far percentage that Bob. back that income. an we increase have on income the in basis hand over a year $X.XX $X.XX do operating can $X.XX. approximately a improvement on were basis the improvement you or because you diluted prior adjusted on earnings. nice operating the by a left a $X.XX and a X.X% for We there. on than $X.X it you increase resulting period income. to out in With to on weather non-GAAP in year-over-year page, we increase. a quarter. That's adjusted the you XX.X% than At

on page Great. Thank you, appears XX. summary Brian. events A coming of

General Montana you September. Rate a As we go know, We next Review filed month. hearing Electric into in

we advanced through and system, South look starting Nebraska taking and AMI to electric case reliability. moving we South driven Montana. addressing and for then significant side program the distribution on infrastructure by as in safety focus rate investment the Montana a file with and into transmission to moving modernization are assets the activities. compliance safety are comprehensive deploying including parallel gas underway with and natural that. days both south Dakota Obviously, deploying specifically Dakota our grid on at the in a capital FERC Continue we're underway well coming transmission capacity system expect currently that And distribution We then well. And and management gas

concerning continue in more South about controlling Western Energy We preparing resource and plan. enter bit And well a the implementation, make We'll Imbalance of with to course, costs planning Market. particularly progress and that. talk we Dakota ever vigilant the to all underway the are

XXXX the Montana review. our and provide first to rate a of pretty to electric our customers This period. is our reflection over case Montana really since general price Turning ability electric stability extraordinary to that that's

T&D taxes, come customers out to we while property costs, were, done were a in back as able have for to high think, good system, to significant we I finally stay maintain continuing levels as it's and the While investment increased that really we did very for a along managing invest us long in. of obviously, job And thing with our service. great compel

of interim to refundable commission an on rate XX, decrease. So intervenor on our million filed the the At XXXX request approving year, million X. an and And April of in intervenors discussion responded obviously testimony mitigation wildfire as and on on XX, position an testimony on $XX.X X $XX.X more basis to five base. this and customer both been May for XX.XX% measurable some about And return respond we XX.X% the a $X.X by rate -- but on updating with include XXXX, rates Council voted that of starts. is to to also quite known requested filed, September time. are on be approximately those the a a ROE; tree $XX.X additional day opening was X of of million. adjustments. capital the year, X.X% out X.XX% issues rate test order, Consumer most we're for testimony, and cost annual structure that on course, NorthWestern increase May a and our the did X.XX% lowering In in recommending discovery. XX, base. commission hazard based We the issue, liability spelled April an interim effective took focused time, of Montana in million an and final have issued million equity; $X.XX notably, Then would and hearing and this we intervenor the and for requested that on March, and focused February increase. order included to February deck testimony, various we rebuttal residential debt; came and request probably,

applying standard the track, for include or supply and we baseline costs, do PCCAM, to In the in while the gradual. Dot proposal addition DSM capitalize to rate the Two Nebraska net wrapped Dakota customers, or In commission supply years current Montana, Legislature, contracted length acquisition then next into class there $X be Wind in and facilitated for were a for Bill electric to for -- of qualifying days. base our new approve And project was rate Senate remove of the a Also, review that metering establish tracker as into that that future, symmetry XXXX, interest commission's a a the of in pieces debt sessions would've from debt final a Colstrip plus a new been a legislative prohibited day have would've governor. up and were were and the die that know Montana a issues, November mean submitted XXX the specifically Monday, share I metering and the to facilities provision SB There is net that Lots X customers it is of that in supply the South the and supporting XX-day resources, banned There's important Senate is would so-called those would've be we that originally quiet of they made harmful legislation This don't interested the been XX Colstrip enrolled constructive. legislation, last couple maximum also of include Bill rule. moving order. success contract defeat We required to on a And And in bills, of for minus band will has one owned generation us. -- also the the have And electric of side would on Unit was system XXX. is be calendar in or would to the general sharing of following legislation couple our moving from then summary, -- some probably were were quite us. to commission's listed was would on XXX then. customers outcome legislation primary of up issues there now and was had allowed conference. million future greater that In before XX. as acquire the from us to expectation $X.X megawatts of to so-called bills, sine quite may will been legislative successful have operate. That we're order. number we transmission XX several the adjourn We the in pieces dead. -- vehicle also

wrapping very up. are things clearly Although,

this. the it the to Certainly, addressed terms many appears So our it's up. subjects, the end we to session bill Montana ultimate disappointing where mature be of very success. say of in to a on pretty for customers consider Colstrip again, been -- the would've all the of But is ending have providing benefit

our supply reliability serving to focuses about the over XX an fall second published is the improving Turning our plan issued needs retired on of megawatts few of really It's existing proposals RFP ago, or Pool; in customers for we'll XXXX. fashion. the years. operating resources by the Responses the really and costs. replaced are year. a days and identified plants, July in South great of Power XX XXXX; on XX, generation about our capacity flexible of we megawatts end and South be just in to Then Southwest begin due XX Dakota lowering half compliance April ahead over evaluate modernizing that in moving of the maintaining Dakota to flexibility; We've feet;

very pleased expected plan to we're by the June So plan, a completed we in with are sponsoring finalized there's draft process an XX-day of period. in end be was online and awful that comment It's interest the that. lot Montana and March. to-date Concerning of

Council You energy with retirements deadline web case distributed X,XXX demand. that quite and that And short and was increases to XXXX. resources landscape relatively and plan time. and And on be by intermittent meeting worst in the right changing We and can assuming from retirements our of plants we the -- probability fairly absolute about modest in coal that March were of a at the at page of about focuses the affordable the even and the and manner. Planned reliable megawatts resources current that's -- XXXX that needs year February, our go address really May is XXX by market And needs megawatts. X. that possible comments efficiency a for a of mentioned and generation And our energy now filing plan significant that will for the in to changing becomes we're And the by customer’s August. look result, coal going in the in short means dramatically the customer Council it peak forecast Planning our developing Power as matter comments public to portfolio I is according of is XX megawatts this XXX track region as contributions market goal are the increase Regional regional and loss load in dramatically. our

associated spending needs forecasts. competitive could to important need would watch years. that And administered evaluators. is developments, included several And to the multiple is of with in instance the soliciting capital then be proposals advantage by supply-side, $XXX rounds but all We then are identified as we structures in all therefore, over forecast. five plan by for to turning feather affect next And, our And note capital not -- flavors and have later draft the in repeat this needs demand-side our XXXX. capacity for technology resources, excess plan changing significant. times. potentially reason Very year essentially of the available million occurs peaking for the cost our these of independent And the take the we'd to that capital source contemplates that use with solicitations

the hand five associated flows The primarily are anticipate capital South funding. total that, that needs with we as then by not this identifying are other aided not the that continue on first over the we questions. billion and years. We investments is either AMI. in next on increased long-term plans. I And additional highlight immediate of negative quarter, open with believe Initially and still include investment important in for South the actions three can regulatory debt you Dakota years with Montana supply the associated projections could or with funding cash NOLs investment any investments and every $X.X Dakota the above this But see up anticipating does or further I under we issuances. then level to focus in of require mentioned And it the as forecast capital

Instructions] and the Thank you question Smith, will to this would America. for much. Ladies of Bank at very first like floor we time, open Our Julien [Operator gentlemen, questions. from come

Campanella you? Julien today. Hey, for How on it's are Nick

Hey, Nick.

other Hey, legislation could Are acquire paths in see, you you which perhaps be I your there longer otherwise? just or that just there fill or died. capacity transmission resource on still wanted needs to to term forward given Colstrip clear the

were going an the review future that extraordinary is and situation. And pretty a goal legislation. for infrastructure missed really customers on transmission is reward coming clarify long-term to benefit; of pens our we and assess customers. have just and immediate just on address I with couldn't in critical ownership A modest acquire misaligned. through. we behalf the But customers. pursue resource and to sadly, This resource were a problem to I Montana shame get think the could risk focus to a bridge our eager and the the we're great The We reward the was of that months great provided -- real the was opportunity. for system. directions our incredibly and value for the put serve It risk to down great and the for to the the think

is of real the that is Montana for the on finishing that value rate case value shame what the the focused there. We're from answer and preserving our for a capture we state plan see couldn't It's to there. happens supply customers. going the be still So up

Got it. issues, case. CDIT. access same I and mentioned just on case? And repairs to the I testimony tax your in you mentioned as there's Is issue regarding required know that just the then the and that of And guess additional rate you then five the case? what rate is it talk rate address you the in ability about can that disposition this

Yes. Brian?

think how included be excess the the I going Yeah, that issue would up deferred a time be and on captured. basis there even questions forward a is into taxes the There's quite about with case. complicated to We'd that rate talking treated focus forward and about rate quite amortization other spend stuff basis, associated and to time the case how period going and that's for the few going pretty in the EBIT the can It's that be to think on things pension part taxes and are issues Nick. what honest. we less are and of like in major

anything? You inhibiting to or this don't your settlement potentially ability towards a work like see

in we're can't think lot settlement to anything I very going settlement discussions that just try Board at come a this efforts time. there. not. I meeting. point not That's in in early. There's got of or you the could of past a continue we'll tell way that We –

And last it. my then question. just Got

the PSA? I to Montana. current that plan shift you And And could in about your timing you reflected CapEx in to there? I legislation think the when pretty side try was you wondering would forward the just potentially bring to had what's AMI some talk successful on

it continuing evaluate timing We're here. program. out do AMI the the to of laid have We

Montana rolls to XXXX. that Dakota, do before complete Montana sit the program And certainly into South layout Commission. we'll Nebraska our We with have we certainly our We'll down plan.

where activity deploying Montana are that's operations in conversion company big this actually focused year. LED The then is an specifically on our Montana And ADMS to really side folks street now. enormous the ops right distribution the across lights

Montana associated period our we would the able clear that or have full being in start with more impacted that dollars plan And during to there we're that on bit the out spread be AMI. do not at could to Nick at of this but issue all. The five-year capture now a be we certainly program capital is be

Got again, Thanks it. guys.

much. you Thank very

question Credit will Weinstein, Suisse. next Michael from Our come

Hi, you guys. How doing?

Hey, Michael.

you case place for still into rate So, – you the PCCAM? currently is right the deadband as the go go as deadband into the in

is Absolutely, remove in the legislation But gets XXXX. on July we've again it signed of year X of come would by through X the place that our tracker it blown and it's deadband ultimately XXXX. hope before July effect the Governor already starting would in

the first the in occurred. impact the just sharing was quarter So XX-XX with associated PCCAM the that

And so that first we million. approximately that period, of was took the the will amount you over base $X.X our if XX% hit for quarter

so signature upon effective certainly hopeful is bill are we're The there.

in the guys the about others you I issues the get – to easier be as this guess are you if as you And are maybe rate hearing dates? that settle you. Got settlement wondering – discussions just would case, in to the think Nick already I asked question, than but certain was there contemplate I closer

very question back I Michael, the is we think lot And -- tax would think I think those about it this feel position of items. very complicated just items. good a in do say I to I our

tell. we head a it's things to lot sophisticated this so others these And and Obviously, so matters. the early will and not of those talk I don't on going of too to time ROE at items are some on like in it's But about than point easy discussion think early down path much.

who's requirements, extent large to in revenue capital structure, customer extent to You've but going be got obviously are parties then cost some and by different cost overlapping Consumer interested to issues, some Council different allocation. the of capital, focused core we and

energy you other opportunity Right. though basically session? ball. really legislative And on that Montana's that is in chance there also at think some I that might up I the there all dead that be SB you it XXX. legislation Bob pick was reading is mean, might it's said missed this no Or a issue?

die, sine session. there theoretically, final We're more of hours but of days of no down the a to that. than it's I most at until suppose over the not couple are

you. Got

Okay. very Thank much. you

Michael. Thanks,

you. Thank

from next Our Reeder, will Wells come Jonathan question Fargo.

Bob and good afternoon, Hey, Brian. are you? How

you. Jonathan. Good, Thank

Hey.

about the So is you reason feeling wouldn't are there XXX? How that? any sign Governor SB

pretty We good it's straightforward think logical legislation and fair bipartisan got support.

hopeful. we're certainly So

House Okay. between of Senate out XX differences need the the ironed to are in And that get then HB what conference? and versions Bob

couldn't I'm hear I that. quite sorry.

versions are out committee? differences in the between the ironed to need get House the and What XX that HB Senate conference of

that afternoon. do of this I harder Boy, get language. obviously of QF it not a and things It's conference. follow to I there can't a it's again, apologize ground, And I'm they has the primarily harder. to tell lot as lot into status with once the the of some on you

hope we we'll some have on visibility that. quickly So pretty

Right. if But kind just or big to some and will bridge gap like it figured you get of out? a it's semantics there's do think

like it From doesn't sit where we seem big as a gap.

on appropriate? And set date? are as rate does Is us discretion Brian a could Or they you what determined equity remind of or in latitude structure the authorized Okay. typically actual you. given then MPSC to believe on how case, ratios the have the Got formulae Montana? based it is

subtract fact structure to rate been followed first jurisdiction. your cases a and years That's standard the have what been determines that's answer debt a and in ultimately of I'll we now been has with the and discretion, think dealing Since and only that long-term base through use question jurisdiction to that has used debt I HoldCo they capital we is capital how kind rate now. the first calculate but many equity have structure consistently ultimately Well, for that we do calculate structure. allocated XX we're that about not

Okay. filing based is you're And that's on? what

correct. That's

of terms I discussions guess then yet you point, At really begun. a And I think potential this in said, haven't settlement. those Okay.

the some us guess? that remind post-hearings, typically timing on So, that's I

what rebuttal a I and No, happens shortly after usually think typically shortly is is there's filed after discussion that.

-- keep should is think I think people before should in I hearing ours. mind, MDU's

But May at a shortly and know the time to MDUs MDU very hearing have point what's there, with So, for time. they do going may I ours starting be of this XXth. don't work with spending at on they bit in

so discussion in meeting, lot this the Board there's been we've of a and So, time. about with - settlement point tied at up

some good luck the discussions. and the of upcoming on hearings Well, Okay.

Thanks Looking forward to an update.

Jonathan. Thanks

Thank you. Capital. next Vedula from Murti, [Operator question Instructions] come will Our Avon

afternoon. Good

Hi Vedula.

deficit. of I again capital would able able that me to to exactly the start and you plan would for that? in the present the own like of when the what the things. terms guess you Couple to outcome outcome know be of you filling the see. commission, Can in One, expenditures And pursue? -- resource remind your the to be Let's opportunity would

in On out. half of be the the in RFP second that's Dakota the that side, South is progress. year. evaluating We'll

have that's efficiently. I that are but being think proposals we our the addressed demonstrate to best, really pretty

supply with after of On point get XXXX. the still is side, out the with that is move that period in hole Montana that we'll RFP. from very, Montana. input of file presumably a the in with comment region the shortly the a sincere just deeper the that we're a administrated big The Montana's and very commission third-party legacy and plan concern conclude much is hole commission then to deregulation in moving and investiture hole My

the commission move quickly. forward pretty we can that and hopeful this I'm So,

you have you for be it's is the proposal then all for possible yourself when and different could put what plan to your that it for So, out third-parties and submit significantly that proposed? plan than you commission, then

primarily taking probably technical workshop. commission consultant is that to The at should process typical issuing focusing involves comment, doing issues the the retained urgency. think, believe look and we've understands a the I on various has to The done The that. under we the is plan. raised And the commission was and obviously good commission responsive to plan not a It -- the very the then well. consultant understanding XXXX help that the job as responding the public degree to comments be. which plan. My No, questions

a EX EX of anyone by you actually load of probability and a regional a I much And than this, presentation look ago so It's increased from regionally and a been And to peaking the they Just a at look for XXXX. at -- mentioned received couple else. had weeks NorthWestern's take serious loss to encourage retained customers Montana concern. I for more consulting. situation

how some it hopeful subject is. I'm spent people with understand that thoughtful and have serious that time So,

potential between awarded announce much be you'll able the feel So, capital as like will when will would parties? how of or third and be -- yourselves this allocation actually to capacity you part RFP? And

It's before really the filed some plan get way Commission that. to to have speak input too the that. We get go to do early from to and we can

submitted No. out after thinking -- and it's what be I would -- to been to able was communicate timing. various yourself? after actually end more the third-parties approved how just being simply you'd about up When

year. Well, we be later able solicit proposals to this hope to

we The late to say early would deal with XXXX, would have earliest I that that XXXX. the would likely more think I a response be

appreciate I -- you. was that Okay Thank that.

terms You've arena. of regulatory to nice obviously while here manage able for a done a job out in the of quite being staying very

Given already year base behind or simply solve the terms even XXXX like going everything with already case historical to of this be -- June whenever in in that's you're when a you and May rate that. test or

can the what So, given to expenditures capital based of it's on or to, or a it. not something offset year in just every mathematically your be lags base million either that through things just speak that you're $XXX growth I to customer type being adjustments don't necessarily that from by like your place updating rate that of relative in to up cost that lag planning less like a everything trued give your authorized? Can forecast take you if tend filings. needs DDA and speak is regulatory like to you the historical you kind know not purpose regulatory to kind of if Because year me about appears and it growing that everything

Brian give is his ball, the waving give the hands, me saying ball. me

authorized. by points operate a within of to take jurisdiction time tried we've once that XX think to get And rate of basis I outside it's we our look cases. at

shortly. I now coming report our from think you electric at standpoint, think an that will Montana out I look if here be XXXX annual

would case. for rate in You important a was we to under come Montana, be pretty in will it earning thus significantly see that

I think to to operate frequent consideration. that particular answer your be upcoming get we question good I cushion specifically us have more something that's we we to Obviously, think have we provides filer if a really some coming have to to see do quicker. case. that rate we'd how a bit in without unfortunately so this to we not, If outcome rate take do and continue in

to So thus a important good outcome all parties. very is

continue bills that. leave will customers' to We impact minimize on I'll the come for manage and guess our timing case business of and it regardless we to I at when to rate in try the

obviously of that and go we At add every rate our We've provide the look in, would rates. good maintain been doing same levels time is we whether we I we to because All investment stable work to high successful need avoid service. year to levels of we like cases, customers that. in

perspective, time regulators want truly win. work we regulators would When key from serve consuming and So, doing from have away does a customers. most that's a file, I say to do all to resources draw attention think we to the it’s and our

So, don't any we by file lightly means.

policy you've design be of significant The issues at better -- have but to future. reviews, Hopefully, us true as it's the the least to be our they to one embedded served in serve way steps to certainly pretty a in and and position want customers other series in rate rate this primarily those got addressed. take many thing in

benefit the Act. Okay. million aim. associated a Tax XXXX on little margin Maybe And one thing. the nitpicky you $X.X Reform I XQ have chart gross In with of last mentioned the

we the with will associated be and obviously to when case be such any forward, some operating say will rate one help basically whatever next right the and and revenue gives Now there, takes will thinking XXXX think we're offset there that about go going will will that not the Is of that that this just and and be basically increase that things pluses minuses but that not be clearly rate outcome it other in way case the when nature. sales items of there that comparisons forward item kind year? XQ, about of this

you're capturing think that I appropriately.

a requirement your have moving in once you the finalized consider is parts to and have a particular The with moving rate forward. goods You in associated the case. rate new bads case that revenue

you very Thank much.

Thank you.

you. Thank

Associates. Our Glenrock Patterson, next question from Paul will come

Hey, good afternoon.

Paul. Hi,

Paul. Hi,

sort XXX be questions. Do if that Colstrip my covered here any used the address actually the maybe that of And could miss I do But favor follow was what saying now absence thought were, XXX, regulatory they the one I'm to you approach Montana of the Bill? the but Bill? the there is it, of final in Commissioners were legislation? thinking I you So generally was thought recollected about I Colstrip

that they in think and were And and reasons. Yes. The divided times places, Commission legitimate to for some yes. the answer some divided I is, was

acquire I think being that to our for that in on strong majority benefit to is able customers. concern Commission's real focused Their be language a appeared addressing asset the role.

the and the view approach with been in subjects of late had its unfortunately, policy that the to cost Commission specific the really settled re-argue revenue recovery that's to most Commission, quite parties course extent that pretty what changing that thought cornerstone that doing about lost eliminating fell a in also, do. of taking risks was pretty And that to with going in tracker. well. And have We've of pursuant in the benefits supply decisions, than a iteration time, its tracker in been am adjustment this. function there is definitively different great changes some had previous associated pursue to been of the to talked seeing for great our are the we've even cases, had though, system -- arguing those on we I of orders. over but in a -- benefits statues front as in come of in changing the have We By benefits to chairs sit the that from experience to reopen customers shareholders. it to that Commission not trying we really risks fact going recent the our abruptly contested out But the to course Commission some mechanism represented who policy happens time the

Some of of those some examples the big, are smaller. are

customers. us significant do something for to good to So pretty create risk all associated of that comes basically trying together some with

the in way risks. we to just to those address. risk But on figure to of have unfortunately out kind Montana, real the that's are how other sure So open suggestions one we're And or that.

Thanks one. I hear you. Have a so much. great

Paul. Thanks,

questions no queue. we much. have this very [Operator the you Thank Speakers, in further at time, Instructions]

you thank Springtime Well, is and great interest quarter. Plains. the over for the the joining all us Rockies for your on in It finally very much and

looking to forward So Take weekend. we're care. enjoying over that the

Thank Ladies now and you conference. gentlemen, concludes this very much. today's

have great rest and week. may a your You phone of Thank disconnect lines you. the