NorthWestern (NWE) 24 Jul 192019 Q2 Earnings call transcript

Good day and welcome to the NorthWestern Corporation's Second Quarter 2019 Financial Results Conference Call and Webcast. 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, Christina. Good afternoon and thank you for joining in NorthWestern Corporation's financial results conference call and webcast for the quarter ending June 30th, 2019. released northwesternenergy.com. release been our available have at website results and is the on NorthWestern's

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

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

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

such, will remind you As our of language. I safe harbor

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

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

may expectations and business actual materially adversely financial statements. forward-looking differ any our performance from in Our and future expressed

obligation no any reason. undertake for update statements presentation to forward-looking publicly We this or revise or our

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

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

our it Rowe. that, to over hand CEO, With Bob I'll

rapidly of one much, over for and you Big most the Valley, Today and thank of Bozeman Sky, Paradise most the and speaking one the areas down And Montana. joining anywhere. very Park, growing toward with us. Bozeman Bozeman -- including the all is you area, Thank from Bozeman, we're you Yellowstone

discussion partnership community and we growth And the approaches this about a in our Two nights great partnership. growth. lots Board tremendous responsible had members a and to ago, is truly and event, of community leaders, area

of lots which for of coming going Company, Park trial help number volunteer on folks, couldn't down with the are if true to fact, meet in crews with back serve Bozeman, who activities is I that bill; and them across tomorrow, it I'm experience that in Yellowstone our the million Friday provide. go over appreciation members our that who our Also, have for and to those employees the into a meeting Board weren't the employees year area every Yellowstone who whenever people service X with remind through our a

net for and also and period the operating to to planned in increase mainly to the by liability year, income quarter spring the due compared impacts along and reduction Turning improvements to of was for a refund. revenue Tax offset these second last highlights, Cuts expenses. due mild margin were largely $X.X the customer a Qualifying a with adjustment as 'XX due same Jobs Act benefit quarter to income lower higher and X.X% And an tax gross of in million, Facility our XXXX increased this in weather,

Commission who X% approves allocation rate reached a or EPS Diluted testimony period cost with filed, million. capital and Public and requirement, in -- as as of expense decrease rate result $X base structure electric comprehensive will Service we this Our in increase increase X.XX% settlement we same an electric as Montana review. $X.XX $X.X If to approximately of filed XXXX. May, annual the settlement, based in increased revenue design our upon parties a In as compared Montana approximately revenue it rate the in million an that's depreciation and well to all and annual ROE

of quarterly of of September a Directors per dividend that, share shareholders to XXth Board payable Brian. declared September $X.XXX as off XXth. to record of The And with

the or the quarter, year, it's note results parts. definitely page second a though, quarter Thanks, summary have of shoulder the during My second quarter. quarter, point smallest Bob. out I our it lot the so to a first is for on have this that moving did financial

Our on a as X.X% lower a gross benefit margin year-over-year primarily was down basis. QF of $XX.X a million result or

or being million higher degree that mentioned to Our operating the forecasted trees, expenses had hazard a pension, that scheduled by plus higher total up lower we higher be in in we've offset were things X.X%. versus to Bob OG&A earlier. 'XX maintenance, $X.X The 'XX depreciation

things operating and basis, to pre-tax on lower netted income. year-over-year income Those a

a have lower $X.X the million income or income resulting Finally, X.X%. as of a taxes, unrecorded million of tax $XX.X net primarily lower much benefit total did we of release taxes, income in result increase

the electric liability earlier, Now mentioned segment, drivers, I of smaller drivers, moving period due total $XX.X nearly again, the the prior on if decrease in to margin as more adjustment primary Really following three factors. a gross detail down you liability adjustment QF is versus was in million, or was million on in gross gross will, to XXXX benefit that the all decline year margin XXXX. the QF $XXX in margin, X.X%

with the primarily Montana deferral. Act by there impact the no of think it this Cost if and Tax the were offset, that of elimination XXXX Cuts the in the way, Electric of result And offset associated deferrals Supply revenue Jobs versus Recovery other That's you TCJA band as of partially the the and PCCAM. think within XXXX's debt

offset We and the some in of other margin impact change for million the benefit million. are gross that quarter. income other net that do whole, XXX,XXX decrease to some gross of for margin, within items $XX a total but approximately recording for have quarter led items $XX.X a that as so And totaling

as we have did earlier, to mild on weather, Moving Bob a mentioned QX.

during point as quarter you a out degree for and the a from degree conditioning little had and intents -- since To load all where the has Montana day, it's days. states. purposes, heating expect heating quarter and both do, in doesn't have degree we You same you have heating of particularly the lot load air cooling very

have really no had whatsoever. We load had cooling effectively

as and loads again, it's result, quarter lowest shoulder always our the for And a is second year.

unfavorable compared we a some QX pre-tax So detriment $X.X did XXXX compared in million resulted weather, and in weather estimate and as as $XXX,XXX a then normal, XXXX. pre-tax to benefit to QX that

So less as of I the weather worse little XXXX think XXXX. than a

discuss expenses than below. up period. or In $X operating more they a bit little Moving expenses, were $XXX.X on million, general prior I'll or X.X% operating expenses, to X.X% year the administrative million operating $X.X were million higher the that --

with proposed were additional and BP&E. settlement as to a our taxes due Montana of slightly, adjustment And the million down up case. primarily $X.X Property the primarily depreciation additions depletion consistent electric in were result

little $XX.X of that detail on million million net impact OG&A A expenses. more was change maintenance of did the in that OG&A income, the $X generation We a of million have $X expense.

didn't maintenance, occurred on the year-over-year of XXXX, that XXXX was that that did, in occur that increase thus All planned in all a basis.

more trees on in we perspective XXXX certainly made 'XX pension benefits, As versus we're primarily expect expense hazard we employee it million expense that and do to regard. basis of have XXXX. to hazard folks, discussed, XXXX $X full tree just that more a pension clear year a on we've $X versus we're spending more training in from $X million in and more remind And million spending to on

they're are I elsewhere $X change a have also to items impact within that -- Those maintenance that benefits items OG&A. expense net maintenance of offset trees, increase hazard mentioned, million. but OG&A, of generation $XX.X employee P&L, drivers primary us the in leaving million We do the

Moving income, pension, parts Other were slight comp the due partly or there's during to I interest higher borrowings. obviously XX.X%, deferred quarter. down, OG&A offsetting AFUDC offset income due we those there, the some mentioned on the up mentioned that and change slightly to by expense, million to that's it's moving $XX.X and operating items down primarily below

driven or us that though, by down income the primarily million quarter. that of income benefit, again, for that's during tax $XX.X Below the benefits million And the the the the $XX.X given to tax unrecognized recorded XX.X% quarter. and million gets $XX.X pre-tax

the the million the primary you also And The year-over-year talked next of near did the page the -- unrecognized pre-tax we a have on I'll of we top $X.X page. lower million, see basis. about drivers, And at that course, $XX.X tax reconciliation page, of about on benefit but tax talk million at $XX.X benefit bottom regarding that, there. benefit, the

on the -- about on partly production credits income quarter. a I a just on flow through by for basis the thing, a expecting taxes, negative the I'd tax our X% relatively year-over-year also a X% that year-to-date non-GAAP to may items that for GAAP close we the on have basis. are would acknowledge are in Last those say are XX% basis Those offset you lower in XX-Q a year for seen to ETR negative reiterate ETR X% and we year.

to million shareholder's think equity I being year-to-date to forward basis. slight the did our of to of sheet, liabilities a have we that the is million reduction increase million on and $XX the little a balance page, about in date At increase Moving debt a cap and balance basis, to a in debt year sheet approximately to change on $XX equity. up the $XXX offset, and bottom PP&E the

On you the statement, significant job are. cash we will, to right by if by a provided to good activities. identify big what almost a in Moving the those a do year-over-year flow capital. We basis, cash working on did driven all see to changes drivers operating of decrease,

in position position $XX a million an of that over collection reduction is from approximately XXXX in an again, to in is XX% in But capital, million the million collection of XXXX. working under swing $XXX of that change really $XX

year to the basis. customers -- TCJA with of had was I also so beginning $XX on approximately a date We six think to that in months the million, refund XXXX, associated

come that And year on folks date -- have deposits interconnect $XX basis. to they in make million was our deposits system those that then has as we lastly, that approximately been those two a refund to we line, providing

PP&E by have there. the than a issuance certainly quarter had So a of we were significant there additions and was debt on change a did during funded year We items higher basis. those also prior higher

were for the quarter a of Moving very earnings, in what -- items we quickly, XXXX, to weather. unfavorable slightly forward the non-GAAP had adjusted

did a and tax period unfavorable remove that year gain to an with about from the that where from comparative associated and unfavorable We associated we But where unrecognized weather went talked $X.XX. benefit we $X.XX $X.XX $X.XX QF $X.XX $X.XX weather. had to so the with prior moving effectively to it

with pleased from basis for though, a year, on a down results are results basis actually me, and excuse one on Those $X.XX our down year-over-year are year-to-date thing year-over-year in relatively basis the non-GAAP the point for I'd we flat out on basis, are $X.XX non-GAAP quite comparatively, primarily from basis. So on quarter year-to-date prior basis. a a a

share I'd the do year communicated a a case. we've that certainly expectations good great The there. PCCAM anticipate say certainly we've end on on manage outcome progress had had also to provide good on and legislative of We return progress release to total We've Street. results, rate

We've a we whole and we and feel needed been go back that, addressing date it And whole. trees I expense the to give pension really to good certainly and And I Bob. where certainly year expenses as a after. sit about as hazard a with to quarter

Brian. Thanks,

the a that I give the questions have point we're know to you'll you of on working, left that. some where things after up following off, Brian of Just preview

a the two months depreciation X.XX% a Montana to did expense return involved based upon last a Regulatory been the and have million. million, $X.X the about major on electric settlement rate interveners decrease with front, equity, we reach revenues review, increase all an of course, settlement of with where $X of coupled of

final assets. we transmission quarter. our issued commission the Federal rates a refund. In the accepting for during Energy filing order to effective expect submitted And Regulatory and course, granting May, a FERC June, from subject also and fourth the of an the order Commission X, we with interim In filing the Montana July

settlement appointed, referred to expect procedures, Cuts take been Job well and filing settlement a as in our terminating settlement robust you August. we as Southwest first has early place judge process, settlement as new know Act Tax related the as conference The to and

real electric really had actually of Brian legislative back XXXX. in we the Montana was there with in to session our in in states, focus particularly had and very legislative but all the tracker bring As mentioned, trying legislature successful on what legislature line supply the front, our a intended

or shareholder, the And below costs fact, an cost qualifying overall in a revise deadband did require XXX% of above purchases, sharing the as customer, and XX% recovery to statute legislature XX% recovery to established well prohibit as facility of baseline.

more and the That We safety, and in invest both Bozeman we're certainly it, in but our infrastructure. ensure electric particularly part reliability. investing on and mentioned seeing to distribution of our a we're side, is division. continue to transmission gas I growth the generally capacity

the finally, grid addition, advanced pipeline advanced side, investments are that on compliance then system modernization seriously. resilience infrastructure. an driven by requirements. distribution In and management And take metering includes those We gas natural safety and very and

we advanced here have moving shift to in Montana. coming South a based in under will Dakota we that, Nebraska, and north the the metering, on way And from south, deployment years deployment and on in to a essentially

far Challenge Very, market the you our months Interconnect transmission electric for electric participants our that our between page of very jointly system. discussed over into deck. customers the for Western as to undertaking, of Western eastern the and we team Energy of us appropriate for map and Imbalance and edge make big the moving needed on are, decisions we supply Western on the is sit XX the and were we've see the

we with as market. benefits of cost, benefits, over And and important customers over including pension to tax, the mentioned, But then, on the already appropriate efforts, Brian our do think deal efforts few western the building ongoing control see labor several robust we from vegetation very cost monitoring made last commitments months course, moving that management. we significant into property to our long are and term

and then responsibility. Turning resources critical energy supply to other

implementation. of plan fleet fall, published Pool to in are Our not and to obligation South maintain compliance reliability, is Dakota the was last improve modernization into South plan the on and supply focusing our with and flexibility Southwest well electric Power The electrically Dakota interconnected. Montana

years into seeing several we're we not Over And really moved there. last SPP. the benefits

of on requirements being significant in our also But the participation. in compliance SPP, the plan get is out but real to part, full South meeting Dakota able focused benefit

megawatts So over the plan coming the XX identifies and generation replaced that should decade. existing of be retired

issued XX of online we XXXX, of end evaluating a a the serve April are flexible On year. actually be the of proposals to capacity XXth, outcomes and week by third end determined proposals this end megawatts the using and the party of for we'll request by South Dakota with responses for by due the

Montana Plan, Electric Supply was released in draft March. a

that. and and landscape address developing will rapidly. We lot a goal went specifically finalizing extensive, awful in changing the the quarter. landscape comprehensive The in the third of West, of good that will resources in energy and be very document is It's analysis an inputs that into the that changing and plan supports the Pacific Northwest Montana

the the because Montana, we margin. retirements. of plenty have only of needs and true percent doubly capacity in we challenged by we negative have in plant only Northwest to meeting be -- significant continue We the margin. still triply negative We're company a driven throughout that's the are electric severely in true XX-or-so with capacity a It's west part or energy, in terms

reliability and supply But department risk plant and continued during that of in result growth retirements in we communicating see really a that's XXXXs the late is summer, of of And lot undertaken peak. and demand, our emphasizes part, increasingly, progress has a the the a divestiture periods legacy risk exposure peak the the in during market that in that risk face in customers that price And our peak analysis well. is on of times made our the during with times customers when it behalf in winter. a the from we are in peak deregulation as

our that. years, in conservative and So growth models, megawatts is XXX we're estimate assumptions efficiency and be market currently strong alternate in few -- But megawatts we delivery very with at peak, we even short could that just procure really around the XXX short to XXXX.

expect plan we the So in to weeks. file coming the

all-source decision will this of by be the capacity and makers available continue seeking in proposals and several, peak the communicate the the need the move to We end first with the we and and to identified late XXXX. to customers our approach risk, then of about plan, year will

resource And the our any use needs. to independent we expect, will it meet we for just conduct party Dakota, did I as in be RFP. an would And of emphasize customer's again kind South to resource, any that we third

As and an visiting Dakota. the be will result there RFP we'll a of that South fact

associated five investment this forecast. included haven't We capital year the in

combination could significant capital continued issuances, seems, in additions projections a horizon. funded with further will these our to five issuance. increase total one capital anticipate long flows of could that XXXX, obviously regulatory But over necessitate $X.X five included cash actions or as over the not spending either we it could the the year as through that turning negative years supported to be quarter, as be well by -- NOLs debt forecast, And we equity billion capital, now every say, term above available additional capital

of And is meet the needs their are appropriately the forecast you projects of our time, for by a as to jurisdictions well. and always, and future. to the meet point today The needs in adequate capital service, customers five over capacity see, reliable distributed year really identified safe, by capital continue as function the to

up With your will it open that, to we questions.

first with Instructions] take [Operator from Michael And Weinstein Credit Suisse. you. our Thank we'll question

pricing, going When down Sorry, of that understand X be Unit and locked with just but say and that have on is plant I if what missed to you'll I'm operating? to that, before. Colstrip able your you think I you've wondering X, is Westmoreland this the Maybe it, do negotiations over covered be like? coal status something

also and pursuing. a -- approach in reaching here the I terms coal other with had of on, management Westmoreland based that's in position I'd very constructive a new think, good a owners that contract is say final the we're discussions constructive

contract in good actually able future. coal quite to announce near feel the being we a about So

this forward? other unrealized benefits on tax Got are statute awaiting to to similar limitations it, Are also there and situations quarter. going the of that that that, any expire are

Well, no $XX there's just in and you've timetable million a advance but near associated noted, -- started that language, don't in the there's of associated about you'll in year fact any a timetable, see with you noted language we you that we've that. future. anything talk usually If like anything have as with the

America. take Dumoulin-Smith Bank question of we'll with Julien our And next from

This Julien. is actually Ryan on Greenwald for

Ryan. Hey,

it going? How's

Good.

question. taking our for Thanks

$XXX provide still as investments? So on the South progressed you are know around color Dakota little more a you you're I to But the least plans cadence able and guys with in in at opportunities. saying Montana, million potential

No, not really. we've really as discussed third focus be will months. share coming say though are RFP, over at they detail anything party. The certainly And on meeting to by identified the can think don't -- administered needs. And is that able a more than the the more we we this I

enough. eligible be Fair the whole own would potentially? you to But amount

expect we would I opportunity RFP to participate putting forward the have will say and we'll solid very that we proposals. in the

Got with said a How it. said that regards high could differently is XXX respect potentially to little And that go? conservative. I guess with you the Montana, megawatts

just to such hole got Well, I climb out a that. to big I on want We've just -- don't speculate of.

I I making think success assumptions that that with like we the continued needs was making point were programs. to And things energy efficiency the focus. be about was

Colstrip supply Montana then source, And Got the right? supply just of terms plan, it. remains it lastly, in anticipates

Correct.

What's a plan the can't reached? new contingency contract supply be if

coal A contract? new

Yes.

a will as At that good better reach we're we the on point, contract. I better, and feeling this coal outcome mentioned

kind the is with XX% it. XXXX. Got X% tax rate, that gradually guys are then of trajectory in the to to you increasing X% regards just Is to could or to one that saying more, current And XX% still ask and changed? I if

that that's you around as By XXXX, period. By XX% Yes. what by said, Yes. time correct? said -- you

Ellinghaus our Chris with take question Williams will We from next Capital.

that believe portion rata by the million. of depreciation I you sort decreased first I of your $X.X assume you quarter and inclusive well. Brian, said that is amortization pro for as

a from a basis perspective. where date we It said It is is. year to depreciation from

Okay.

prior supply for not the all the recovery quarter, entirely from cost I period that's As quarter, some assume. that includes far the as recovery, second

speaking recovery the deadband you Are to itself?

something can find like me -- I $X $X.X if $X.X let the think million, see on, million. I numbers million that, hang or

last least in to impact of from at at obviously, look we X/X Yes. 'XX when PCCAM deadband to X/XX looked we to the of a on from At with this of we 'XX so have a from no X/XX tracker 'XX adjustments year and reported perspective, and XXXX basis. our period non-GAAP PCCAM we associated as on the we had our year non-GAAP was adjustments no from deadband a basis

Okay, you equates megawatts for want RFP the of great. I of what but talk number Bob, $XXX Montana, million give potential? the to is far proportion us sense you assume any is, as of to of as capacity XXX can that your kind goes don't about capex that what

what in you're you're I Well, going I what -- would uncomfortable be if there, asking. understand

of And how Is Yes, I'm basically trying recall the horizon, five just five the $XXX comes out to right there's figure and after if piece that million not I plan, that mistaken. year much is to. that horizon leads out if right? year good then supply sort a the draft that

$XXX the with make talking just just and is year The Dakota the five talked million, I Montana -- is we're clear. to to past be we other. South both and million sure $XXX associated in each just want not Yes,

South gave Dakota. megawatts Yes. for the But us XX you

think to if remember know, coming piece I A But the I supply piece? you into rest. another bigger get So, there the correctly? in back was XXXX, draft,

You're Dakota's? saying or Montana's from South perspective

Montana.

in thereafter. you're in by certainly a to Dakota should around investment both Yes, Montana places that South amount and in to about I significant there full shortly going talk that XX have of we it see think XXXX, megawatts be going we're

what's draft know specific needs in aren't have it don't say needs. your right plan for have additional the you dynamics capacity wasn't it other your -- you would just region, is, than current I reason any and any to the capacity the why way in If changing don't the renewables

the additional future? requirements in be interested set would equivalency You when in renewables you've capacity your

renewable And plan bit any slippery. doesn't identify The word little me to the a resource. is particular

existing hydro isn't Montana, a in know renewable. you As

rather attributes attributes. a than of focus environmental could the include label, think a resource. you would And I on I So

in As you know, Montana too. we carbon-related plan, have the various scenarios,

the in terms wind, or in portfolio renewables, solar poised come the in Montana And free the But terms our we're portfolio, obviously through and a more lot now, to lot our little of help system on right and the no online resources our then provide conventional Montana obviously or hydro in benefit QF broadly on Montana XX% process. in of does. the carbon have us of we there's peak, system meet a to

Thanks the Okay. it. details, appreciate for guys,

Chris. Thanks

we'll take And our next question Avon from Capital. Vedula with Murti

A One, and are few as you here the difference depreciation you're amount, reflected in the expense, right make -- reserving to interim the like a things the fashion, was recognizing that's just revenues given only settlement? settlement simply that's settlement that booking between in I you're amount in difference sure understand. rates the or are granted you the

We're rates. case. estimate at million to stipulated rate million, $X.X the -- our counting the is associated parties The not with the interim $X.X

that to interim the rates. level, working we're not So

Okay.

while a there true statement be settlement so you're a cash amount? the already -- on lower then basis, on So financial basis, will up reflecting

Correct.

sources for When 'XX can right that of part a the talk amount available then? the remind available uses go and What capex, NOLs now you as happens that forward about you by the NOLs be cash specifically basis sources in you will when not and -- of on 'XX Okay. say of about me in available XXXX. are aided

we and get as minimize try time point Vedula. to aid our to can noted, at second, through But our you taxes. I'll plan we best We'll continue we that to manage as number in in in to that our do number moment. a a But NOL taxes get that you

Okay.

[XXXX] when -- year, over if the talked session look say about year legislative Especially power you're recovery Is successes of with Because recovery. in if we that recovering costs, this half benefit is didn't QF and, full forward there a the the there. second the see we the see or the benefit second you you and you'll recover Let's half? out variances? on there QF a last

the First to you that? that's all, answer of is you left. Could NOL last question But repeat million repeat question? $XXX that could

if is able was, XQ in we fully for XXX%, comparisons? benefit last there XQ, incurred that a didn't XQ Because you -- to QF aid and you perhaps a amount will in costs. was If look question The last you now year's you're that half? there forward recover, recovering to recover and second and an XQ that you're to

that anticipate show benefit you don't material a would that a could on basis. year-over-year be I

And were of said $XXX I million, go to sense NOLs in what the flow. from, really the if XXXX Okay. guess of reduction when terms terms cash of is, I XXXX get of I'm the you say, effect, flow trying in a to forward cash

Yes, I that impact can't that in can't would what point in -- XXXX I'm this not, of idea terms time. I give in you be at

it basically implies and that to forward slide The goes going zero then it's zero.

in comfortable time. giving have Yes. We amount dollar But this point not you exact still at some PTCs and I'm AMT benefits.

And, the two in RFP just that million over It's just of next soon years, of the five -- those -- and basically the would two the RFP excess in Dakota items. cover to pending South initiated fully terms I guess Okay. those $XXX be in Montana? that

first -- from the see, that our two from be Dakota South Montana. one would and one you'd It RFPs

So Dakota? think in to considered excess million see be realistically South the program, Okay. to of to relative would we is of it capital, is XX%? XX% generally in And South in if that $XXX terms XX% you're proportionality like the of similar Dakota reasonable of thinking Montana XX% to capital we're to there that that which of is what in

on is much you going guidance Montana Dakota. set in obviously we've a would the a forward I $XXX is, pretty higher than pretty say South would already basis, think just good I on in was given tell -- it million the opportunity I as it significantly

is that Montana round jurisdiction is reasons, obviously, the just much whole that deeper. but secondly, two And larger, the is for

versus I'm is only trying one. really the way think relation What to clarification, attempt this of what exactly? total a kind make that. the that. requesting guess was This I related No, in would phase to in back I shortages Chris especially understand to is of sure to million kind to get of what I address? baseline I $XXX to period going a first the

you as on I've given can Vedula, $XXX much as that I guidance million.

Wells next And Instructions] Jonathan with we'll Reeder question [Operator Fargo. from take our

question back good outline filing or gotten Hey, plan, it when it one we kind what's read from should keeps if like just me. there's you're of whether it. kind supply you has You anything it's The of kind Montana bad? know, pushed of it into on? going resource Why that? actually slipping Can and seems

posted a a I for plan. would what very comment. say we Oh, public gosh. robust No, comment. We that is a We prepared draft received

supply and the ready Our to streets. plan analyzing nearly folks those are is the hit

not So at I delay. I'm don't concerned about all --

What that's with the And that both real I capacity have end been plan back there weren't the to critical of and, out able and needs implement we plan how would just the you to know, winter demonstrated that RFP a shame after went to ultimately was the ahead. that going summer it we at lot exposed of plan. subsequent that and say a noise because events is XXXX and move

feel are plan. about year's following the able And on I from perspective it's ahead very, move our XXXX. shame up a where really we customer's on to with good this do we weren't very that the RFP

Okay.

will and to comments you those bringing a Speakers]? much least there of be Bob, like and I how the working at other final feel do party you when do a what of forward, throughout [Multiple your move needs So state have mean, kind plan, with by the are consensus

have But we really we've of focused have to a various is project any is be to bid modeled, referred that ultimately, strong are will to what the identifying meet those and will able meet by party. is needs and our on that best to views done need. plan are able I've scenarios be a opportunity third that And -- us what are there kind certainly resources there customer's Well, the before. any about evaluated the need help

that point, the people this of highlight should there. last things thoughtful over to couple at agree I'll two even lead just I hope years, But need a is. what experience, certainly on the And

the current and environmentally region, as studies, oriented there growing such Northwest the needs. now reputable, capacity firms Within are very by identifying really including EX multiple

BPA leading a the commission back the and supply has another but how time made, built, former and the the on Hardy, Montana the just those actually There resources, administrator, also resources. region transmission been That department reports. resources by The was our to great now Randy presentation transmission wrote EX spent XXXXs. supply investments going describing truly department paper, at of talking our about looking has joint some includes capacities.

in a tone Just that the newspapers be best have around I recognition to an the Johnson power. carried month, by we wrote said was around meet commission a Montana debate load the real a Montana state oped base policymakers and to need. last by certainly think the other needs that's need. and over how recognition commission, And of change that that discuss that plenty Chairman Again, there'll

imagine But looking a risk anyone a we I can't and need, don't ahead price the not at recognizing risk if have address needs. situation, we to capacity move the reliability reliability

kind know, resurrecting and the still and around kind with all more guess any Bob go then, activity that maybe I that And and answer. baseload the of you settlement is longer for get approved of term, power let's back of, it. kind Colstrip that or need revisit for Thanks then

a of a was had would in savings was would valuable net have immediate customers, The for our is increment. diverse support, a have produced considered lot good the that portfolio. it resource an down taken an a Colstrip legislature, actually concept, concept within

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Okay.

But focus and the is the on right ahead. really plan filed earlier getting now question the moving to

Thanks, great. Bob. Okay,

Thank you.

We'll a Vedula follow-up from question the take Murti.

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say, So we'd XXXX? mid of the that, outcome know

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Yes.

the I end that there that the when by capacity have is of think associated the main with have timing there. Clear thing thing an outcome will in make as to XXXX. we

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make. will administrator with to be ensure we Third process any on equal third parties that. footing an party will And the the proposal

you. Thank right. All

you. Thank

no questions there appears further It are at this time.

Great. very will discussion and over interest good I Well, the thank be months. you of very support. seeing much your you the coming many and for

Thank for today's participation. call. your [Indiscernible] you

You may disconnect.