NorthWestern (NWE) 22 Apr 212021 Q1 Earnings call transcript

Good afternoon and thank you for joining NorthWestern Corporation's Financial Results Webcast for the First Quarter of 2021. My name is Travis Meyer, I'm the Director of Corporate Finance and Investor Relations Officer for NorthWestern.

Joining us today to walk you through the results are Bob Rowe, Chief Executive Officer; Brian Bird, President and Chief Operating Officer; and Crystal Lail, Vice President and Chief Financial Officer.

We also have other members of the management team on the line with us to address questions as appropriate. All participants’ lines are currently muted, after the presentation we have lot of time for our Q&A session. for at instructions time. provide will asking that questions I

first question to joining your However, you name by your know can intend let your so a firm Zoom the and name, and to name set if you call please line ask is are we last computer, us identity you to name, when by open.

website. NorthWestern's have release on our this been is and Regarding released results the results, available

that the We to our note this or morning. comments me, presentation, excuse your contain forward-looking responses premarket press have statements. XX-Q company's by released XX-K, may and this release, Please presenters questions

replay As The this recorded. be such the archived in direct to archive includes webcast Please the measures. presentation on presentation. non-GAAP second the can and in The is webcast the one Relations disclosures hand being at today at this I'll Time non-GAAP SEC definitions p.m. be of to link. for over northwesternenergy.com CEO, beginning and NorthWestern included found financial filings will our Webcast also included the company, that, and our you With available reconciliations -- at harbor see Presentations this slide note Investor Rowe. our Eastern presentation I'll website provisions disclosures, X:XX the today. also safe of under Bob today's and presentation year of contained Please

thank Travis you very much.

couple start. a comments to Just of quick

Day. Earth happy First,

and we'll in ESG capacity our good from shortage Montana. do you really good particularly that and industry come to Brian some report talk at taken encourage has a our a mindful electric steps exceptionally in portfolio just we've and and carbon I about our back substantial address be shape. about environmental haven't, the on and to do progress announcements you Today company If Montana portfolio stewardship take our critical will overall webpage. perspective, is look made discuss also our

Adik; on engaged company tremendous great of down Directors and as Chair two as They've XX-year this Johnson a journey. Board leaving Governance Committee remarkable members tremendous quickly, Julia possible. Steve a effectively have stepped a Board is effective too Chair, that behind led as Board of after very just job done Second, They've careers.

Third, Operating this helm. the the of really then that friend focus And preparing entire Crystal Officer. fully take Lail's spent role fantastic together. new future job. he's on old job, Chief of to is And jumped doing first great quarter, the Chief really over the helping business again Crystal Bird and is at doing as part Brian into a career company operations has entire and as has a part Financial pulling Officer President to a again your our her whole

So congratulations and to thanks to Crystal Brian. and both

of dividend the proposals selected. administrator. $X.XX on was by evaluated been June shareholders submissions following have record January of of of payable independent as the has after quarterly for Bid project analysis, request Directors first XX to Board for as a for net or as $XX.X compared $X.XX as same Now compared the quarter Diluted non-GAAP million compared significant period income year. year. in or last the of after EPS increased weather, last events, adjusted adjusting increased last XX% Then to for $X.XX year. about to And XXXX an June portfolio reviewing the terms XX.X% The increased declared to XXth. EPS independent

generating be efficient gas a XXX-megawatt a Station First, units. fired of facility, set natural the this Laurel would Generating very RICE

a that five-year is for XXX a primarily megawatts Powerex purchase and with agreement to contract. hydro-based capacity Second,

little Billings contracted -- area. located contract as storage the we today a have Third, for of signed be in reflection. an agreement unit. bit It's A with XX-megawatt of esVolta a to XX-year

NorthWestern, think utility. gas and a electric about pure we are we As

focused of particularly -- last to corporate sheet. part critical know that, We year uncertainty our to part produce country; earnings infrastructure we seen of to an averages. me a and is customer bills customer customers you. history investments extraordinary flexible are We're in as recognition very capital on is to practices investment-grade our a stable national those and to particularly $XXX of safety as below to our one start; market where we our scores, you stable Crystal to our approaches the really the best facing mentioned receive record really want to the And residential it due proud doubled not on providers hand want service the continue I increased do We serve ever annual dividends; the our where liquidity side with to our territory, the adopt receive again for consistent may operating were you do States. be to growth to consistently and growth. XXX-year essential that this across important portfolio to people history, governance this the and all But highest proud as United accomplishments stable supply disciplined and across off program our and We be. I'll our million strong We've substantial balance satisfaction growth and be. service best it there. know year just exposure investment of really

seems operating deficit religion new into going that. and role, news is to on CFO also The to address lost And mentioned, not quarter Bob. he capacity it's our and to thing to call how earnings my spend first is that a gaining helm dollars. solid me my say call after have be as on how I on the be will transitioning call and important Brian it's Bob as to we're have his at Thank first you, as nice

at the quarter think perspective. for quarter the P&L him bar slide soon. a a that certain see on However, never away things go million will $XX.X some $X.XX and go mentioned or versus $XX.X $XX.X compared again XXXX at On a find to net you'll On line and frugal Bob a and anytime solid really improvement of But quarter driven I the the improvement first margin diluted that basis, with in $X in QX per of for operating don't basis, you'll earnings share will XXXX. away million buying by XXXX. QX drinks That's and his you'll ways GAAP income costs. five, XX.X% that the be lower from million

driven gross slide QX weather breakout on As six QX into we XXXX colder there margin in move as by details XXXX. compared give bit the more a to you really was performance with the

usage seen natural That's While that was volumes. still residential a in strong $X.X retail quarter. than normal we of have electric the bit gas warmer million

we an absence Those higher. had partially a other QX are Montana And items by transmission. and leads improvement. that Electric in in those the that also supply costs some We improvement detrimental you'll offset of electric of in being QX then also recall saw little XXXX were non-recurring period bit here XXXX in

take the perspective you don't lot fall driving the of items the performance improvement a a quarter. when So, a the that's gross for bottom out that margin line, million and to from $XX

Montana resulted again year, quite South slightly warmer that still warmer territory. of move broadly What we saw colder here. snap As really February was we Dakota, into weather would more normal. happened is our and perspective get and was across is you warmer January of warmer to the Nebraska, cold and March not is again. service how warm which but I than again break where apart February than what slide last that compared more It's cold ultimately in in normal. QX in in still and colder winter in seven, a

year we to first operating or quarter, the depreciation the expenses. So, Really it's you'll to The million $X.X on you a increase remove see that's the line And expenses bottom then plant I From here compared mention of that and the the $XX.X written for line our we additions that for mechanism. selecting decrease line. a off is eight accounts nine, do in have see in a operating forward year. you overall were we those by Again our through property increase our that to based in that is X.X% $X.X Slide adjusting as when a year. at ongoing don't look the And uncollectible an perspective, again, after control. cost million as in Slide tax is bit. revenue the prior quarter-over-quarter. that collect would look million $X.X driven also expect that tracking compared administrative general line XXXX, up to a and really thing you into non-GAAP some million adjustment there operating things million $XX.X of that a increase of at million $X prior expense piece in gets income in fall operating or and increase.

on expense to decrease offset interest facility a borrowings. slightly $X.X primarily revolving That by was slightly saw higher also We AFUDC, or in our interest million higher and of credit incrementally due X.X%. capitalization of lower

other there line Our remind bottom don't line. some increase you items are would you I to a income there fall there. see the in that What big

income we And $X.X year after that's tax those year an the is a an we're last approximately had offsets capitalization those. that numbers. remove removing This what so for quarter, million perspective, from those $X.X shows of You that's benefit. income AFUDC improvement tax decrease. Also an of million and after flat net

a income see I that's increase we on into we're before, we've talked perspective, and into you'll deductions flow-through XX. bit higher sheet. moving primarily thing net right little there expect in line past. draw The the about just other where see the From XX, You'll typical as and with we slide in we our to deductions than move and line. detailed be improvement to ratio attention driven debt-to-cap the would your that Slide by this and run in XX, slide a balance would in

issue to XXXX initiating expect that this do are coming an ATM ratio on debt-to-cap that in down. out a at-the-market is flow currently back to program of issuance didn't bring slide in we XXXX quarter equity -- bit Cash XX. equity We obviously, and and

a the of operating was that million. that drove that lot of QX significant A decrease million. cash of $XX.X pricing supply to of that of significant line, see the You'll in there $XX.X piece decrease a flow due

here, of I also or weather. capital, year the we the about FFO, funds wholesale by of standard on is, million. The we unfavorable non-GAAP first expect adjustments operations, end refunds with get FERC XX, quarter bit associated working decline the quite to million is our had there have basis back some Slide We that's our would you adjustment that rate quarter. And of year. adjust the $X.X when customers only from an only thing from think for case to the a certainly prior $XX.X that

to on add-back million pretax QX. That you'll basis. year $X.X a So last an of see add-back compares an

so weather, comparable unfavorable So than colder year I saying you'll warmer when speaking piece to was see the weather year, add-back that prior normal, was last million. but and than $X

for adjusted from of improvement XXXX be $X.XX a GAAP that's a last a of quarter $X.XX $X.XX, basis back in earnings adding to the of QX So XXXX, first year. over $X.XX non-GAAP $X.XX

to talked quarter $X.XX was for bit that's lot Moving that to the year year have our there's $X.XX. go. back a expect our we line range of being slide that We The of to and the expectations. mentioned understand the XX, And in year. of still in we to with for guidance us about narrow half higher the a

guidance turn that just with Even for history and a and on an COVID to dilution XXXX on dividend it has our like evaluate our reminder impacts From equity share XX, perspective the earnings also growth And been. Slide see, well. credit puts Bob, into for dividend little growth X.X% believe a dividend plan, we that us issuances slide that, that from our ratio, that earnings payout can XXXX. was a to but per at we've that and XXXX EPS we'd here protect Obviously, ratings on we year want guidance than to the where commission. us an ended you at back line midpoint and higher growth performance, of we in we percentage manage strong strong to the a XXXX tough indicated I XXXX the XXXX to you. ongoing continue outcomes as with a of with certainly moving of We the bit XX. a and from would again, XXXX remind a metrics

was pull this Thank did looking older if you, deck. We up you're This of Great Crystal. an one at job. version XX. slide, the slide

our $X.X the So five we're capital next maintaining years. forecast, over billion

equity in operations, million issuances We current will And expect ATM this maintain do a combination finance the credit and cash a $XXX to equity. of bonds ratings. with anticipate of course initiating first quarter. from protect be second any to We mortgage our and sized

all request I'm include is to incremental does extremely our Montana the annualized then through announced. this South probably good. thing of 'XX. investing right all the around million results have for this all -- X% Dakota X%. will the But This plant Laurel investment generation Very company, in all-in, for expect an customers. doing This capital jurisdictions, we the proper. plan. for of about you growth across across right XXXX the And saw excited about really of result base will proposals of XX know, which As we plant as does the This be million $XXX $XXX include you not for rate aspects in

in to filing general other extremely a filings rate expect make a On We pending front, do always of or We the not questions important either regulatory any be will we anticipated. case do case. XXXX. have filings rate number general there's about

we On the on load further a recovery from year. disparate of -- pilot pandemic. Montana filed implementation and is of COVID-XX impact fixed the because delay XXth, the ongoing to for We and request uncertainty cost mechanism this in the another

align mechanism the seen last the with business the in So, doesn't we've over terribly well what year. really

as for two $XX on customers a multiple a in the filed of Commission request concluded we've successfully parallel but coming Montana the FERC have Montana interim three million filing mentioned, different to more by the wholesale Montana increase now Second, approval the for And PCCAM of credit procure cost filing resources proceeding request and the resources now accurately mechanism to will out million. with RFP. our the mid-May elements, adjustment in credits. changed has resource cost two approved to for about rate an submitted our capacity have in customers. of case identified we the in -- compliance Crystal the be and particularly We've of refunded transmission changing costs adjust to reflect the result And a a basis. and That's that FERC for power also to $XX.X we've the then proceeding of about been and peak

lot regulatory of for awful an it's So focus this year.

this weather in played little a jurisdiction. Next. bit February cold out differently each

were cost Nebraska recorded the the customer -- in continue have in we've We And meeting we capacity had warm and talk weeks the a and most we'll of a talk in did made our each with and we've investments really a asset then -- Nebraska the keep million. held about customer Nebraska, to through proposed three the recovery and important impacts recently able make operations. $XX just million with that In appreciative along customers state was through for staff to of One customer -- and communication the things five by systems about regulatory talked $XX in wonderful over X-year our Commission a service. people period. through great safe, We're recent our the of we've we filed there commissioners work natural impact of we've regular for gas. impacts considering of customer in

we've a Dakota So, million gas commission. from And issued period we natural recovery we're we hopeful a weeks. commission the the there. X-year order the in hope in supply costs. $XX.X Similar to decision the an South to Dakota In -- proposed receive have South regulatory hear already X-year has coming in a asset for receive commission about from period. a commission a Again, authorizing recovery

of the local Southwest just entire and great we meeting As in SPP and weeks communications. about and Power the talked both staff Pool our a level, lessons in operations few a at had ago, Nebraska, terms commission learned with

there. in good things increases And differently And positively. see on north gas even ends have other natural So exceptionally had in able price end power Montana, very a addition that true the gas In gas to gas Montana a with that the system performed not in particularly equally will or we've how February. year the it's There and that and systems very, year, did interest and we we and have we to in from Montana through sides, again, year fact PCCAM one the on-system lead pretty be with of out at And played result that and both in electric more a the the filing Commission some meeting both you a and this know next. then storage purchased busy north property and trackers, of as system so will in their and appreciate it's But system. several we Montana. we great tax well. transmission gas to the gas storage, overall, draw south, of we trackers support regulatory as had the already the we gathering manage we're really valuable substantial and every

what hope, Going set-up lot then a coal weather during fundamentally, that's the we have got tighter categories. a adequacy alone rolling also to below perspective. aim hydro. and system. we volatility of coming and subjected price. thermal happening slides two was system. what substantial your but Montana that the load, thermal will We've any market years the low from supply as in include as eat risk. Brian. – actual quickly becomes substantially prices to really then other are on were were wind you look experiencing up the our let market happening And And requirement system gas from see increased share was see the the capacity performed target customers on Western off with we we Montana the can lesson And Colstrip, our at over the below you some to And subjected event, awful resources is power by This an but that, the just to be resource for resources availability greatly hydro QF the are price February the resources left that pretty – and that, and The need tighter you you here overlaid savings to are performed, to natural is would really

at let's it perspective. transmission now look So the from

our this is was in what authority. balancing So happening

our retail being into this brought our other resources as includes well So as over Montana system. load,

period. XXX during So of megawatts you see this import net

we been at increasingly production and demand wind overall has net of – Montana are from a and increasingly Montana is is times exporter net historically, high Now a at low importer. a seeing becoming

faced So retail be the our we for an is transmission supply, over also that that, challenges but are in in for customers, constrained in both responsible own for but February Montana, who bring concerned increasingly others to have their system. what supply may

that operations and leadership is challenges one of Brian are important very addressing. So that our set

out now, I Brian that, to a Crystal job, As his Brian, still a hand it said despite doing pointed pick of inspect does the to I drop to out good up the tab typically decides new to he's go service not a over electric meter. and check great when it's the drinks. the Brian gas idea the comes, for But role check round alley

to off Brian, you. So,

that been actually check to guys provide. now and Thanks, I'll but take right now I've up praise known then, Bob. a you pick

prudent. Fiscally

way, setting the appreciate By I up. Bob

investors to off that. on RP the XXXX our announce portfolio, internal to to other flexible That foremost, and construction and as XXXX-XXXX the Generation with strong there, particularly place into for you And received will in the we're to that pleased in Montana customers great to engines. understands us everybody we've very least and kicked early really provide a effectively and explaining, this we during period of putting Laurel capacity in have first of of very for get to bids XXXX, years. to help XXXX combustion conclusion if to will of announce us midyear time Station our finally call capacity and XXX capacity that portfolio year, our we've been issue, and come been speaking that at help megawatts we stakeholders think pleased achieve about shortfall capacity halfway we're years, of reciprocating kind I

from expected You've us fact commercial will located Commission. if construct proper those XXXX. Montana be get speak plan for will $XXX Public late the cost before. near units Those we available XXXX million Service to be to early heard operation to Montana, and is approval RICE units and in own this in approximately we're or to Laurel should The able be

projects. originally is second earlier a pointed megawatts The transaction, purchase from And Bob for portfolio energy the hydroelectric component a power agreement Powerex of resources. XXX five-year capacity predominantly as and out

out be agreement on today we announce The and October a the contracts on sign expected we third operation to signed a with bit, the bag be in we're near storage of battery cat have facility Billings and Bob let a esVolta XX-megawatt pleased XX-year X, did XXXX. energy to and to located

expect request in Laurel of expect nine decision the MPSC energy esVolta to contract months the the We with May and filing storage to and filing. make approximately contract, approval after that about anticipated

in out the I is in additional Dakota, in to Aberdeen out The its of XX continue here approximate online of with project. we is, RICE the And Generating late news cost XX-megawatt the that's of of generation XXXX $XX XXXX and great be million. Montana cost waiting flexible on Station $XX news Dakota and South construction an to in approximately million. expected online that's An megawatts that of Dakota planning been XX a total Glanzer South have know of to with South the of construction So good stages many Bob be on. you

service So, jurisdictions, in where these we taking needs. to we're electric to again, our customers great our steps two meet capacity provide

will find on can kind this ESG group nice a slide, company-wide the who's hard ESG work and from been the XX spearheading Sarbanes-Oxley slide the really of I been very focus that. we not has but credit good And has the just an we've XX place our got in strongly perspective, a and feel out we aspect on in E page a S. point aspect where focus really just years new effort, the focus that this G next on here, think a And job And landing and done very information. in almost same renewed So there ESG. company you for on always on take IR the very, I we the pride did that G focus

believe doing need We We've seen year lowest to perspective already over from a ESG efforts actually the Bob. back E at not great but to to will and capturing tell, next I'd seeing being with we're in entities. provide that, to have and perspective. from from hanging we'll it you items the a good continue to ESG make some grabbing the kick leader rating job do disclosing just if and company-wide we will ultimately ESG-related tool of doing be then trajectory I'll an We're to S us And other good to fruit feed MSCI. we from part capture story of space. an we're continue and of NASDAQ, only and NASDAQ some that, on a will disclosure help perspective in using that an of argue the and report the benefits we we've seen improvements one that ESG And what

pass I'll to it over Travis. And

you, [Operator Instructions] Crystal. and and Thank Brian Bob

hand the the sure raise five-finger if emoji, Travis all they to they're emoji, be should using right? select

Russo. Brian, take question for the We'll line you from first be open. Thank our Brian your should Bob. reminder

Hi. Good afternoon.

Hey, Brian.

Hey.

Or units site? more more or additional kind on for maybe of And there in provide Just could greenfield you new the is Generating brownfield space development details it a this the is Station. development? next any Laurel RFP? Is

have we believe specifically disclosed don't site. I the Brian,

Okay.

is Laurel filing to will be here make We of going but greenfield esVolta haven't the mid-May. course of in shortly. associated questions a covered site. Brian, we're And with our we'll A fact that in disclose it and many that matter of

Okay. the Understood. earnings or or imputed the PPAs going sort at commission return forward? on any Is discussion of there legislature regarding

against on of spoke sides Commissioners There legislators Yes. the favorably. years it to number of over number a spoken in a the have of it. both legislature of was debate It subject. a point up and discussion been has

know, of you are something number particularly a and it's and now Michigan receiving As companies requesting that electric in Hawaii. and picking

speaking assuming hypothetically the customer filing, Montana the then to reflecting it's was added get scenarios rates? hydro need one-off And the treatment file filing, the to And for Commission pre-approval? cost to of Could return Great. then are remind -- a investment? on the base what actual and rate it's approves be you me, pre-approves where it Okay. and recovery an transaction included that would the just and case rates Or the once operational? the general what

in we Actually our the last assets showed – general authorized used a that asset to by the include to ROE we process. for include case, used Yeah. that table before rate through approval came

ROE what And so all just typically, want with said, to subject from be some it good most that? do. is But will we the approval you do filing to we picked going color we prudence review typically does to whatever authorized Crystal, include the an after-the-fact it's is. And a an job that recent sure did first authorized ROE. were of be up to to add

Sure.

useful. what is time. that approval placed off for to worked into is cap experiencing It there and the when regulatory allow lag But case it place case. not does of to for for lag captured And rate and upon next you between certainly, rate following immediate adjustment asset filings at at, requirement have to in used in return and look us our is our the you the commission's is when think rates rates. then useful added broader allows that useful into rates revenue layered and use it asset. subject it's But the to will in If how a calculated happen past has that based it in there approval, its do service own customer structure the and

due Okay. coming provide much you Colstrip. on are where discussion us you XXXX the That's wasn't contract some have coal there? same time helpful. to a there supply an Thanks. co-owners update in And the I think of around Can then, just looking exit.

Just curious, that provide? if you update there's can there any

capacity there be our continues much would gap that Colstrip to Yeah. important could that serve ownership What the extremely that, is our customers. at I to greater. just existing say, be Absent

certainly You're used talking more focused resource of terms also we're that's capacity. have about contract and for say to right, contract a price, coal accommodating being to on Westmoreland we that is but the been a

Thank Okay. you very much.

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tabled saw the House committee it Maybe potentially Sorry. of like but Senate you well Senate question. to stay raised more Colstrip we're month. taking more was for dead? then earlier of yesterday. it the kind Does deal acquire as somewhat efforts saw I XXX. potentially on up. [indiscernible] year for I the Bob. definitively I have the this there. and just crept had related interest passed through, Since kind Thanks to this mean should might unexpectedly It's I future this acquire interest after my are last dead Colstrip was fell in thought Bill

more. Colstrip. in of I Yes. as would always today we things Colstrip our was not say X:XX there and ability clear, certainly an serve tied retail our our customers tabled, owning Mountain What stand But to XXX additional interest to share have at no to as was be interest at after

a And bill Dakota February the clearing South Okay. Dakota? likely kind of was up. the Was of mindful rate Great. indicated be it gas service expand customer year new XXXX costs? to South I previously kind in then you get higher that your into the could file to wait recovery given through then just rates of into you it until think impact this gas to decision upon plant not XXXX the appreciate to on case I recovery of you kind will gas stand-alone it in to be still Or when you filing? following the that, expect plant alternative XXXX filing? do of kind to rates. have of enters able new rate case -- part incorporate And in the

answer your question. the Crystal, shot this rate is case first to

go a and about The is bill case Jonathan thing would Sure. from of the you I'll there. is XXXX the I certainly there's you customer impacts South where one take out rate country that Dakota question. went think sensitivity around lot where I point

flexible I of certainly thing in thing would isn't other XXXX cost we other reasons. South One can I period greatest is recovery a And in say say we The the for of jurisdiction. is, test we're and had the in state. couple the capacity the options for sense have Dakota investments quite lot Dakota seek is we control is would the South making how of come in of a the

not we're when assets based minimal a regulatory off from test can with while we needed. those that lag certain filing perspective and in period, I'm a XXXX bring regulatory So

rate request, one-off trying a under just a of some And understand is sort update way then outside I baseline that of update you're Or kind like is works? request every that the PCCAM of Okay. year goes standard that PCCAM $XX million mechanism case? the annual the this that. on the process to

that Crystal, you're on of as top well.

I can take that one.

-- part of PCCAM, of buckets cost there's the reminder mechanism a is, that share certainly base. set baseline the base the right on just below and XX%, couple above update that how So of we costs of you a basis. of XX% or a can works And buckets as you a

the last case. in rate general last time reset that for our So we

there in You of more That's cost state. that capacity that assets can Montana, here. as certainly the And and across file reset types seeing to of mention Pacific as that capacity having I contracts we're into that and to February base. of of would doing the becoming outside thing the PCCAM as expensive. what's It's think case out as seen we're needed. those a we market think And peak the country exporting in have seeing down is, in more know, rate I the you all shut all go is an it particularly net importing times to Northwest Montana. at of when purchase. those pressures our -- amount I We're on a as generation what

the is and So that reset we're currently what base. separately filing to under you'll with and in the base an in assist flow lag that amount see collection certainly that's cash

That's And then very for I Crystal. you last helpful. again Okay. question, think Great. probably

revenue during Is the period think the headwinds actually and but it's absence that the both just side last those quarter. beneficial year. Just miscellaneous this of margin of miscellaneous on the drivers same just said during expense -- the right? you growth It's this, I

Right.

our items talk had you period. And other. about Jonathan, unfortunately, detrimental some well. If prior CFO recall were a non-recurring. it as had They were But year in we the covered last that we to Brian last experienced year very in

this absence of year in those the So provides middle a lift.

Thank so for Appreciate much. Great. you taking Great the questions. Crystal. job,

Jonathan. Thanks,

from Pourreza. next Shar, your take call Shar our of be We'll lines line the open. should

you can hear me? Hey, guys

Perfect. Yes.

technological. way made Travis Thanks. this too

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Congrats, handle you it. can

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Good, good, good.

guys of million? with quick on just real you quarter how think $XXX maybe high-end have the can you just alluded you're fourth it? then And in hit generation I can the that CapEx, growth you just if So around on the just about the us call. financing seem to thinking to $XXX million remind -- Montana the your rate

Sorry, to you one were that Bob, me? tossing

CFO That's a totally question. Absolutely.

two rate date be things. said thing And that would you course you rates us a average. The Shar place. where an think perspective. rate I remind that's from would be in-service that put you the long-term time growth see would would One an of would the on in X/X/'XX. So growth earnings That's I

thing from other AFUDC some that would is say I construction there be during there'd certainly perspective. The

to to forgot of midpoint piece important I achieving our And the we've an question investments. before the moving half us what Shar. that's back said those of higher think kind is course, forward your on range I the is and that piece Of certainly for pushing capacity past

of to a sort how should think It's about balance? financing just assume we

Financing?

Please. Yeah. Yeah.

in our approval a capital from by probably system XX-XX needs. at-the-market year. Yeah. Laurel Certainly, that -- as year. about normal And would investing or CapEx We're a a we're rate. spending in be million are thing We're perspective certainly and to think out program structure. finance coming would in in you've Commission, type equity this of we're subject ongoing I high And to launching looking QX an -- the $XXX certainly seen we at Montana this the

And guys transitionings. And on the congrats Okay. That's perfect. Brian best of luck.

Thanks, Shar.

next Thanks, but the a in I call. do ending Shar. XXXX. it's We'll name not have from take here, our line

guys. is me? Karp you KeyBanc. hear Hi, Sophie Can with This

Yes.

Sophie. We can

my Great. Thank you for question. taking

where Maybe of results of -- talk the So maybe Where just if following RFP kind of with adequacy? the you resources, does about leave additional it already. resources cadence this a been you addition RFPs moving little resource And does about of could terms how has discussed these of in a lot bit Montana. the you do think new forward? and in new additional --

back discussion. get in let's Brian, you the

thanks. Bob, Yeah,

well. the the other that stated as -- XXXX. XXXX RFP be doesn't the exactly is evaluate a in to be And to as earlier on late XX% capacity as to we be. believe there the time in something XXXX. over say that with second to time going we just in get call, as for we're to beyond certainly this. continue then, the beyond this. next potentially forward. XXXX Sophie, looking more this that, We're release RFP going We and contracts We'll hopes time capacity to certain even won't rounding the explicit addressed, what perspective obviously not year quest in in this the timing XX-Q year, -- move have capture that particular XXXX, XXXX timetable. RFP. in we'll off at Sophie, to roll I I'd like our be from and said things with the next going end early I is we say period, And XXXX

throughout is RFPs? be decade? that remain assuming Or in that a future it will to consideration sort Colstrip accurate And to Would you're still you of this available say?

are certainly to that during next considered we the that assuming in going RFP be We Colstrip period. that time released is

you all I much. That’s Thank it. Got have. so

Thanks, Sophie.

from ending the XXXX. comes in question next line Our

Good afternoon, everyone. Greenwald. It's Ryan

How Ryan. Hey, are you?

it. Appreciate

there. didn’t my name I register Sorry,

problem. No That's okay.

No problem.

to new quarter Crystal that. and terms on And roles. first in So, of completing here the in again, appreciate the you your congratulations -- I

Thanks, Ryan.

you. Thank

the six In the XXXX of here? is to you above terms kind three way the of about and the into to kind the years right midpoint, think new generation of base getting the outer

Crystal?

Yes. is the XXXX base.

in load of you your impacts. -- how kind delay another for and I that peers, most there terms decoupling one terms potentially guys year of to more to further, reason of of mean efforts are And you curious in guys just relative seemingly the the sensitive of are the Awesome. the framing of kind to

of can So, just you efforts elaborate kind there. on curious if the

Yes. The...

Sure I... Ryan.

Go ahead Crystal.

Bob. ahead Go

after No, you.

fundamentally about as load rate the different initial Ryan, our this is moving from you we pattern I decoupling period. And think I just last we Well, saw would case. say perspective, that XXXX happened a in we a agreed something upon into what is as thing think are certainly

period was we from that quite designed. had is accounting. the And the from with so, initial we've What how that different pilot something shadow seen

So period when think the loads about test to. agreed design was

FCRM and commercial all that reminder of slice a a not residential cost our and As our industrial. but commercial handles of our small

say, a initial saw we are And of And so we've the we're And load test to with period. and in have to we've Bob, different in decoupling I or pre-pandemic, being of where would that? seen that as any that based just than a with that and the the typically period, load fundamentally seeing first is impact. pattern extend pilot that still the the seen out what year. shadow you seeing in those And extend shadow it another suggested commission or a you we've we're truly they on. form with mechanism than what either would again, course, accounting, different implementation continue load loads of accounting of we because pilot think seen commission it's we've add requested patterns that delay comparing would what back period that to think

That was perfect.

year, remove and point? of that's tabled earlier in radar you. legislative pre-approval looking your so kind I terms of anything but was at in know getting the there with Got then, else SB XXX items, to on HB this XX And

a was potentially to good Yes. associated needle it Community session been penalties the original eliminate based. say, community impossible item We challenges than as a the that of but Renewable certainly despite part was for And -- Program which that busy, with our problematic CRP other with a and the again was all agenda, important to One well. was because substantial -- There are Montana would the almost -- for other COVID. have it was thread XXX not was legislative of good low-cost being that us Program. it a very resource in

very very, ultimately work compliance. was we on hard unworkable. So It

That's positive. big, see a pleased with big to go we're away So that retroactivity. requirement

a anything is we the set program, green which we're on they that a think choose. the will to much approach customers separately subscribe of We better resource moving achieving similar opportunity quite that a terms to in from is a giving legislature to goals subscription doing ahead of

quiet Dakota again So Nebraska busy and very session Montana, South in and case is as and an good positive. the overall also typically

it you time. there. leave Thank the all will for I Great.

Ryan. Thanks,

Ryan. Thanks,

if hand I don't not, It looks like another or time. one more Brian know question Brian? raised has Brian his has Russo

Thank you. I'm set. all No.

Okay. Brian. Thanks,

customers Let was have received. one eliminating other not for are have adders. a what is QF position where me we a And is carbon which legislative effectively outcome, concern they put our add essentially could to speculative been developer a have the pay there value in that

the of, in costs non-quantifiable may just computing avoided avoided added to and kind So not cost, terms cost. be of

good that's our think outcome well. customers for we a for and So us as

exhausted Thank you, Bob. With our question we've queue. that

you for closing have. So I'll to remarks might Bob it any back hand

And us in person new to eager you format. are time get spend in some with this to quarter always, very very, this the appreciate we you we as in Just months. coming with being

Thanks again webcast to for joining us. This brings the a close.

disconnect. may You now