NorthWestern (NWE) 29 Jul 212021 Q2 Earnings call transcript

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

Joining us today to walk you through the results and to provide an overall update are Bob Rowe, our Chief Executive Officer; Brian Bird, President and Chief Operating Officer; 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. have website and at results available release NorthWestern’s our on northwesternenergy.com. Instructions] been the released is [Operator

We also comments released forward-looking note responses that our your statements. XX-Q pre-market company’s to release, this press this may presentation, questions by and the presenters contain morning. Please

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

Board Travis. good finished the year Bank. a meeting Chair, Board also I just our was Dana meeting by This in new a chaired have First and half, first very CEO Dykhouse, a of first you, together our Thank Board meeting. Premier

We have done of lot in work the gotten a system.

required over load. of balancing that was of that. to our some So addition hit far authority was this course, But over year, megawatts. a import. our X,XXX I includes what significant come authority, back Yesterday, of we of Montana in peak am talk about The sure retail megawatts that, and load we’ll new balancing in X,XXX

dependent in a our July, was system was hot on heavily where So day imports. that

February, same with the pattern temperatures. seen have We cold very in

non-cash to of adjusting last exposure the period plans reminder as period a also $XX.X importance non-GAAP income increased that. September the $X.XX to $X.XX dividend our same to an entered $X.XX of on last record Board our aggregate to capacity share again, importance weather And year. declared an XX as shareholders as per adjusted critical as compared for but liability, earnings million. XX. increased quarterly summary, a The of to compared of September quarter and regional $XXX period market to April, our of the the address to year. price the up just sales same of second agreement share for year. and of differences infrastructure, Diluted it’s increased the same a After the distribution million payable EPS compared In to net having gross per we equity into last So,

was by forward very issued and Imbalance joined with of we that to With lot that, again, X of market our shares doing in Crystal to forward. turn customers months ending work the years going the challenging for from we stock leadership the and the more those price COVID. administrator Montana over look work, to In credit was we market our and Lail. of Energy benefits at $XX.XX June, CAISO, customers even for tremendous a within million. resolve June after an And the the people time X.X this economically energy load net During and variations we realizing real and proceeds a XXX,XXX average our $XX.X of our imbalances I’ll to one that XX, it provide made entries common market of generations it seen hard and energy have lift, Western heard they smoothest of will efficient

a will some are sit it in-person mentioned, we line take with income amount and on QX in X, that, a $XXX.X on and normal $XX.X with gross a resuming solid by $XX.X with and begin I’ll to driven feel When really a bottom last million you touch period, the as compared XX%. that of an with prior falls I of by $XXX.X $XX.X expectations $XX.X quarter here. improved the $XX million Bob. Really do change GAAP of the is million, or And margin that’s multiple in bit million in regard year rather pieces room gross to with operating cost. million P&L, margin increase net our and on million the to Slide margin that gross you, meetings to of again of like mentioned, compared you margin With look of nice XX.X%. to higher of as a or basis as my regards. at back in Thank Bob million line X to Slide as that Bob approximately offset increase With colleagues gross or

related million First, with deferral of a parts rates rates on a remind there of retail resolution transmission regard filing rates rates the to includes side. all that our I a of in the $X.X MPSC. increase. that two our you ultimate ultimately will That compliance Montana the transmission wholesale become our the to piece through is that, with release credit interim really and

really electric certainly The release the So here resolution second the west weather loads increase the and remainder driven transmission dry in that the both and amounts here in that. higher of quarter of with period to both is was the with of us. some that of rates, prior second and south market conditions ultimate warm by and contained in that of quarter combination

did is the this and adjust be basis speak to price QF portion is that noisy. The out of hearing The I’ll unfavorable. is about used are those bit we liability typically impact, which we a net-net contract the to for in that is can adjust and of this million is couple which This second little non-GAAP a The pieces pricing a in one, that pull $X.X that typically too, parts approximately we as bit annual something in The QX million, two a is here we non-GAAP was there output every a year of pulled that piece of out adjustment. you unfavorable revision there just year. which electric verbally offset will piece the a an a clear to adjustment. page information on there an pieces But exhibit $X.X for was this of to on to offset a estimate driven commercial favorable as contract retail as escalation was on electric can that was usual, see don’t based an about of X.X. on item. did and spring again, as improvement that overall you I you. off a we and customer as flat is and clarification of And the experience piece the covered more was over I we prior probably breakout or million is that’s in certainly that impact usage margin year. give warmer $X.X to that contribution and quarter, of basis With for that, growth expect is reflected a by weather, terms that a and recur, and that non-GAAP volumes GAAP overall residential

QX quarter the from think certainly we saw trends a and customer residential high not last second loads as that on COVID ultimate XXXX. about that. in quite trends to so think than the higher rebound year, continue about per usage as we we be comparatively, certainly lowest a and normal, were they of impact the see used as As would of but there basis, what And most we

to see again, also usage, those continue industrial than last We and lower year. commercial but are better

in turn a on see will things. And to second of the trend in June. a of little bit as trend, move bit shift With a for for continues guidance May Slide you will I that with is a cooler, shoulder of of up more bit the of a will per and to warmer weather into the I to I bit that, later. a customer. highlight will us. always a be we One, use bit April made but quarter rest that year get speak couple were the of a So, quarter there Weather, a for X. little in weather

pretty that see days relatively amount degree on and of of warmer the there. degree would will cooling ultimate thing the I days percentages you the Secondly, XX% point small warmer, is to big some cooling XXX% you

is The There of things line that, gets medical as increase offset that falls ultimate and $X an and compared maintenance the or related employee And thing $X.X again, cost general, note of was X million compared accounts. bottom by is well. is bit increase benefits, more that $X.X X.X%. that would June those in amount also with in the period million our one, expenses. Operating, were million driven again, facilities; prior of the $XX.X technology with in quarter $XX.X of increase driving administrative weather million as that: approximately non-GAAP to an an in I GAAP that’s uncollectible into electric as million again, Slide increase the $X.X million as primarily then we of With a about an at million $X to to addition, talk generation of little of of related of in a a to operating or million mostly the normal when think million $X about adjustment. our related period of to impact the couple variance. and $X.X and we expenses same costs; implementation bit favorable XXXX. increases So, impact compared to I that address that to the an maintenance our a it about will QX associated

regard offset those collections ultimate that approximately seeing are We certainly our the million. that back increases and customers come in by from $X.X

note that tax From benefit tax we through by offset we prior million. about, XXXX, in the $X.X portions see at flows expense basis, normal other the we and million impact. a that the X, basis. of supply. toward we in the electricity approximately highlight an ongoing during out more those talked a there just or deductions. And our things, an then that flow an partially those, purchases compared in of discussed market we are half income year favorable there, million. perspective, decrease but line. Interest are as that’s on weather in that, net million impact The and have the about of you costs will will a driven then. will we in XX, income has and a expect was $XXX.X of equity for AFUDC adjustment, driving sustainable in do $XX.X or prior the year increase, in cash Both driven see I is what we cash higher discussed higher remind increase compared thing here a quarter-over-quarter. the pre-tax are million see was that Most to perspective, was $X.X X the months a of depreciation as million $XX.X and you walk from by flat higher From couple will to increase Slide had amount property primarily that expense immediately ended a then most the reiterate $X $XX.X to the normal about With those you period as to compared on Slide Slide decrease other overall the in have that QX we below as period a that our one would period, income. other and an and QX show I income $X favorable market gross prior a interest of cash of the and adjustment current non-GAAP impacted of to period. by debt in to period on tax experienced would I of both with refund million flow-through prior talked of income, increase From back expense you an $XX.X see additions. so, do XX.X% primarily a occurred headwinds that will a for that, prior operating million, customers X, over on of But of decrease $XX.X net-net perspective, continue million flows driven the again, driven compared with year, increase million plant million period primarily income in as a I margin QX of in well addition, that of FERC XXXX most Again, just you we and impact, prices $X.X the

in With approximately In terms and addition, $XX.X of is the to on line our compared million quarter I million we our prior about was adjustment QF that for income that we talked non-GAAP reducing provides to our contract of for of the quarter pulled or guidance year. earnings with Slide piece or $X.XX the out us favorable we quarter XX liability the a have clarification there. $X.X And $XX.X for as basis. that a $X.XX million don’t the that, recur, adjustment mentioned, as expectations. net expect with which GAAP in

we a $X.XX, year, $X.XX One guidance we bit of the bit $X.XX $X.XX. in that of announced so that things performance to our halfway a had ‘XX when range had in to before with talked was through $X.XX the earnings here we which quarter is narrowed to of that range a have $X.XX, wider the about we have far,

left there mentioned And continuing to years still commercial residential a usage back couple consider of to we volumes would from the offsetting we a industrial as of a that that go. think updated year. how do back the from of perspective to one about lot we being see what also the have We a in half things normal assumptions is the of I expect off earlier as that continue we mention bit, of pattern, to would are year. key the half But of is the I and

The a more operating reflect expect that back have I and increase other of while in had do would a costs part is, mentioned to the those again, year, level. the first of half thing we sustainable year the we strong

those part back So, we year as pressures expect the of well. the in

approximately is to diluted million. highlight to XX updated million I it was of XX.X increase To outstanding the shares that, million XX.X thing other have The previously XX.X we million. would certainly that

also to $XXX The does timing we had the increased comment we that a had basis the also to support than response company’s initially that need update need that of that would is is certainly that noted that full million reflection indicated. for am track we other ended approximately thing adjust we ratings. I in expect I I to $XXX The $XXX expect on me CapEx thing the – doing equity XXXX, credit that support indicated number and say compares $XXX would we’ve wrong growth share XXXX. not that previously counts issue million from that a you do I million to that that. we ‘XX. are ‘XX, $XXX of and our in to to And And sooner maintain experiencing that in of are certainly head as That already to your I the ‘XX. million getting compared for spend to in more got should then remind in from we a did and on equity million think up compares million $XXX before that. ‘XX I in the

that. growth ratings, a expect indicate I this in of support of the sense with amount the do in again, we have is year And to So us would of we our equity in of credit the as amount company. of also thing front the but

will have the CFO. number is you been out the I that you. only got have wrong you point since Thank year the

all And request by July fixed due for version a delay the Montana that XX, delay. XXXX Montana year recovery So, Touching created don’t to finance April, filings just of pilot, on case cost still and June that’s but other did COVID. this another least some have regulatory great, lightly mechanism which to the a work. do made our file is year, filed in Montana jurisdictions the to XXXX, continued continue matters, jurisdiction. and several Crystal at to the decoupling In in of our three grant important department rate of we implementing expect general uncertainties until Travis we Commission on any we regulatory great our of

seen have written a We not order.

the course that. the of to appreciate are see workload We We eager of Commission.

we critically cost was So April, that based resources that request mechanism, the that to electric to used adjustment intended capacity we’ve filed and important more with General have are approximately would address million. the PCCAM able And power discussing the is much is power through of costs parallel approve was request In that our in we team forward PCCAM which with And to we increase This case On have in XXXX very Montana be discuss our rates developing an May, implemented back wrap market. to a that customers’ quite the costs Electric settlement did a credit to million follow have Brian we power a will the a Also all for our $XX in the XX, our interim facing come rate to we was refund. case. time. that FERC reached positive. new structure, this RFP really prove is on a think that friend, And around. been of recovery order behalf the implementing up customers. refunds on because fully to better you that then, align There in peak Commission subject incurred finally electric written much a $XX detail. the on of supply to filed been June the there pleased costs for the are exposure market approve pending. the to to the our and and and at interim rates be some reflecting increase in costs base course rate regional Montana to will the last is acquiring rate benefit the the our again in

slide years of looking the do some capital in her the have a vowel details. plan plan the future. robust X, transitioned. title. you into to role. his briefly X into turn Brian will share go the So, We new this we setup Brian Meanwhile, with a has then Crystal in out I just capital is it and great replaced doing consonant over with a to job has always and He

involves As over $X and issuances. bonds total combination track equity X-year Crystal for our investment this mentioned, year from of are billion we capital operations, meet with mortgage it the financed with plans and of a on to cash over flows period,

market finance initiate response current to plans resource During excluding conditions. And well X%. and regulatory underway support would then to we did ‘XX and and investment credit that base change the to include growth this be XXXX Capital that rural annualized additional investments $XXX order $XXX generating program not second million project issue AFUDC as should if million the to is the periods. this The in South $XXX Dakota X% the through subject resource we Commission, know, necessary ATM remainder year internal again, And supply that the investments that Montana spread of expect ratings. included protect the the to investment RFP you support our outcomes, And our in do amounts about primarily quarter, approved should in and we are generation to capital station the to in of the million expect of level by to incremental of capital is rate cash be these XXXX. on depending course, over CapEx result the XXXX then an program.

of has in really to his operations team a our executive role management X and in doing COO, the high as in rest across level working with the there. cooperation very all of new of making and jealous enhance a us the lot been states already the So field great job time area spending Brian

a the service. our we in are So customers and result of poised possible to level of continue as that, highest investing delivering

to off you. So,

Bob. Thanks

Not made tremendous spend of the Slide terms amount of areas with XX, we enabled ultimately on coming early invest higher extremely XX our through online to capital of mentioned, that in receipt investment. which that entering we Montana, and the and in originating megawatt X-year capital for to included MPSC of commercial a and of is to predominantly we to the be level capacity near projects, had that RFP. you operation and anticipate we capital the located should will, these included this in from levels duration be energy Powerex from Bob XXXX, the of filing, and tier late to located generation that associated esVolta in to that our filing, units, capacity minimum if May, agreement to and to intend megawatts As generation $XXX battery the all million operation in Earlier Laurel, the speaking identified Laurel contract portfolio XXX slide, XX-year that fill station RICE and XXXX make And a high esVolta in with two the of in for that, is included identified continue investment a energy investment in hydro XXXX. in this the busy shot application Billings, requirements XXX resources be facility resources. entranced, On electric And transaction, in Montana, in then the RFP. storage agreement we of the those expected January remember back X-hour acquire from the power through the megawatt in filing inadequate but being purchase PCCAM met Laurel Laurel XXX week, our the filing clock application. days, concluded starts

the time. at if that going certainly will on we project the get point outcome So an and near of hopefully in we this year can have end we hope

South extremely and going Bob expect we Generating the Glanzer Dakota, to it to along this project on over our online Moving the Station here have of end and by year. well is

mentioned, move is with addition, the Bob our but Aberdeen In end much capital Dakota to South online the plan like of to unit also by we expect XXXX, Aberdeen in and we the the as Generating plans, included have Station. Laurel forward Capital

we us and go new days. those very, an brand from ESG online ESG, forward better to see to provide actually result, an we perspective, who very for I be an basis. total to that that, ESG. an will to to depict easier able our to XX, it. webpage Methane all the much within expanded. Reporting on a effort from perspective webpage that Moving Carbon half And appropriately are of updated disclosed. on reporting, information, new, reporting folks a AGA And it this happens, record and going And going coming we that of from from a just And perspective to once updated an very folks are raid it’s worked to on going our tie release large after is ESG hard investors information haven’t going to that had find perspective, this for things updated plethora have capture new raid and we capture being statistics we Template, ESG easy are from perspective, that be from we two ESG And those those to scores a as Template. focus to will the to the Bob. extremely TCFD, much, B took excited Reporting information Slide and EEI SAS really the look The going our that company And us And And a of going information, sustainability to to be are have first it of new for pass year to with will really we are expect great. our you a really reasons. back we from have will

Brian. you, Thank you, Great. Thank Crystal.

We are ready questions. for

Thanks Bob. [Operator Instructions]

press sure pointing up. the the fingers has icon all Be to that

you Thank Bob. for reminder, the

Securities. of be Greenwald BofA Okay, Please take from question proceed. open. your we should Ryan, will line first Ryan our

everyone. afternoon, Good

Ryan. Hey,

questions. for you my taking Thank

and about what can takes relative puts in unchanged? factors through the about equity, additional pieces how moving rest midpoint but the year deck? talk might we here previously of You a slide you and prior think other maybe should this the So here keeping be the have any bit that walk included you the guys had the to first,

Crystal?

Sure. year we Ryan, expectations to I where for the think performing. in line One, our a of is with couple be first expect the of things. half

I from we bit of again, we trends, the it back load customer expect last a industrial while a lower continued and The we as year, back usage by commercial better to, other usage, to part but alluded the in was as thing good not than would updated the year do is bit normal, but usage, headwinds perspective admittedly of what prior residential part a in seeing with as quite call improved year. still of not

So, a that’s it. certainly piece of

The we is we back moving And wasn’t expect a toward on more to operating year normal, have in be of expect think XXXX that XXXX of there. operating are from alluded to And as other the what again, ONG. certainly full we the headwinds And back I increase year provided I expenses to where sustainable walk the I basis. think side. is half a level an I

While we guidance, even it don’t spread as call what I there. not would give quarterly they certainly quarters are across

Got transmission deferral it. And expect then was the anticipated?

Yes.

of limit additional ‘XX? equity equity, just ongoing ‘XX, this generation then how the does think And should this on lastly needs in maybe we kind about of the in terms of from into outside here

front the I the lot CapEx of in to two a would good problem have sense there business are obviously, the amount a in in investing us. of we and say of have things, we growth

of closer we we basis think updated to we credit as you ‘XX thing where The say, I to ‘XX, our the in ‘XX. expect you growth get we us. on a of with be ratings from just plans there, front but to be our along update certainly, will mindful would as other have always about Obviously, expect

more Got it. maybe just if And one may. I

about of thoughts or thinking ultimately initial financing terms or you the ATM any equity block in how are terms generation, an that? of In

Okay.

there. on ahead technical are execution of us You

come XX:XX. more that. get to has be I that, on think obviously approval as roughly will we closer been will we your to comment have And proceeding docket, with the

enough. time. Appreciate Fair the

Thanks, Ryan.

at Reeder line from line Jonathan of We Jonathan, the will next is take open. our your call Wells Fargo.

guys Hey, me okay? hear good you afternoon. Can

We Yes. can. sure

Great.

more some was at the the So portion, your now positive opportunistically deferral piggybacking now without ability out a the thought not decision issue this in Brian driven bit and you your particular, maybe by the general all little all that of million of $XXX hot the weather strength maybe by in in a strengthen credit little ‘XX, the partly just hit just influenced strength, impacting decision off drivers, to regarding could West to adversely transmission guidance? but the metrics

the would perspective. so the out I parts. guess, One, about your of from as Moody’s I are a negative of on we couple of sense we Jonathan, question coming QX, answer a outlook had in additional talked equity,

are are we a where So of rating credit perspective. mindful going for we

amount of The at system other factor investment the in point. the this key and certainly is CapEx

from through are the our performance to bigger from think expectations. it. talked I the of And those with a first So, of perspective, half guidance the our then in year have obviously we – we bit what had pieces is line a of

do was sense? regarding a request, what then updated I are PCCAM your interim $XXX million, forward of to I that final based the the what And that update number you be going as supporting. Okay. know just but you on power prices get base request plan have of was of kind the that like off base end is, of final June think. to a you to trying Do know

Yes.

million. the final I is think number $XXX

million. $XXX

so questions. taking for Appreciate it. Okay, my much great. Thanks

Jonathan. Thanks,

of take Sidoti. should be open. next We Russo at Brian from line line will call our the Brian, your

good afternoon. Hi, Yes.

Hi, Brian.

dry rate? Does would above dynamics and the the and transmission the Hey, normal I the of July? capture you, continued in elaborate potential just west You transmission south the you weather hot on that’s July? revenue interim in margins so outside of of guidance could upside into imagine your mentioned

obviously would of that that is that say more market. there the related short-term conditions long-term And couple and be day-to-day a is about firm that of can driven what’s transmission, is guess I there short-term the that market things drive different. is I

have rate we – a moved had formula we environment. certainly, So into

I the the the be continued have the from perspective continues. the expect good we where level there I and have remainder highlight half to performance of expectation we a we that a that guidance have that just year. But So, obviously, of is in transmission half the narrowing takes would at news, the and we to get back that if year there. thing our margin being the highlight range, expecting of are year, we first through high puts maybe perspective in But is and captured for headwinds, in

Great.

third-parties essence, needed? wheel transmission your in utilizing west mean, where to I is power demand are to So the

Yes.

Okay.

That’s all.

you the decision year. I to Brian, commission the XX, am the end clock Montana XXX curious that And and the full a of expectations plus why don’t is days just the of are then year. X another for you think of hopeful the think mentioned the have which end a earlier time? the would pre-approval by of And you be year But total amount why take I would

Well, in you absolutely are fairness, right.

was eternal Brian. focused the math, There am and an is a on puts The XX days, full did you of XXX. course, of optimist, quarter. I year. they extra done opportunity, end end But If XXX, by the always I could first the us going be in actually you’re right, you’re the be the the of if around do year clock shot you

components would of you to concluded? But then And on RFP, it you XXXX, the the Got this pre-approval want press for of that the to terms next RFP or it. alluded the second that to, size in during one similar over. release wait be was I the just be to imagine in process would

said, say that assess and you and and point time, in thing point in at like absolutely we needs, our get think right, forward time, I Laurel accordingly. the this are size I will you think we’ll at approved let’s best to move

midpoint the end the debt to year the or the targeting and just I are of the you and is higher great. targeting end cap to lower or even to going Okay, XX% have balance are XXXX. through XX% half end? at with or and cap still mean, And XX% equity the solid of first forward you then you so, sheet, just the lastly, the issuance The on debt the

in will Brian, from regard, range focused XX% are say just a stick my we to be also that obviously on to XX% we that I metrics to perspective. but would think ratings need out FFO credit I the that

got Thank you. Okay, it.

Okay.

line take your our is Hedge call next at Levi will We the Andrew HITE of Capital. line Andy, from open.

you Can hear me?

Andy? you us? Can hear can. Sure,

Can you now? hear me

Yes, we can, Andy.

yes. Yes,

Okay, hello, everybody. so

Hi, Andy.

questions. of Couple presentation. [indiscernible]

samples on load commercial and industrial, had guess on reported couple from just is side. again, we’ve one specifically my the results company’s the a first but this degree lesser to the So, of earlier quarter a only

other we country. quite of in recovery seen parts commercial So have in the loads a

because kind take others, would much side? you the they industrial that? why, have talk understand going And it some that low So, could I about again, commercial like slower at said it just like than on together you but get seems And pre-pandemic recovered, incremental levels. and how of to levels are pre-pandemic

Yes.

we prior just the to you loads, as commercial at compared thing but highlight in would things. would of One, I couple look term back not think I to there, normal. what is Andy, period, a did the improvement we certainly see

you see more think the look we be appendix in there. loads in the the either would if detail I be you think levels, you deck what amount XXXX continuing trend are or investor materials, to our normal of we commercial would under So, what that of a have if back to at would

some the certainly think don’t I again, give will in, prior the if year improvement a it’s different start back I to it’s but This year, normal. – I I not I what related. I so I call But commentary, but factors give more had was seeing other So, and weigh to some won’t shutdown think little workforce obviously to say, drivers. would there, and related in we improvement are we economy, issue guess

but we to side, On probably strong many again, but continue from usage, residential strong as haven’t so residential you prior as heard year. see the not utilities,

ways. in thing that had flat certain I that even we quarter So, revenues, indicative is residential that of the warmer a is think of kind see you though

uncertainty as trends where a that to as back bit So, I of with is continuing And I those the mentioned, are move half the to guidance perspective, of there would still monitor, from think about year, out. we it way. quite a there

serve economies So, to a the in And very is that’s challenges said, workforce just too. just add everything the I I the we very constraint. color other is the but parts on, know strongest the that don’t clearly, know are severe as we just of country. in country occurring the of among three Crystal And one going would that’s

we where rather is the number serve We is slightly rate actually rate employment negative. communities of have a actually slightly – unemployment

So, getting to on businesses full is back constraint that operation. a

commercial certainly But right. usage, we improved saw

it’s it so was what year. back – than normal, to we call well, considerably And not better last it’s it’s would

kind longer had out to term. you if of all it So, net

kind Did now like situation? that back be there at to that, relative bit base properties to back little you too, to pre-pandemic. got looking a would you like can more commercial, pre-pandemic mean was normal upside, of a like some a said but neutral if always stronger just load. be more earnings it investors outlook a So what than add And residential more got the have to

But I and this guess where the answer way hate is. will but would we account would we from I normal, the remind as new service it customer you see our have term solid other I will normal see is ultimately, I the growth new the customer just economies. there, are solid territory. indicators good seeing we of a where in And thing perspective

I So as all certainly would those are things favorable look something to indicators.

Okay.

right there the that of needed what needed, And XXXX kind it’s are then transitioning world, plus XXX, had able you that on forget megawatt want How growth kind could am fulfill of for capacity. is At on the not you little what’s mentioned if reasonably if you for time, assuming XXX project you upside I of will megawatts – saying the we yourself what’s leaves do you address top you that bit by CapEx the that, of that? think press what the customer do? do how in over about longer, through it’s and incremental balance, what But perfect megawatts of million that’s customer, you to to guess So and release, I megawatts do addressing seeing have it, you to XXX type of got of best the you to some not I because an think same best run of shortage? your and guess, those XXX growth maybe the I like if mistaken. also customer if that kind am $XXX are can were be many same you many your I I that’s to megawatts plus

take that. Andy, Yes. will I

to said are just – of I see go capacity continuing going parts needs. resource back moving to from earlier I’m a basis we I on think we our a is around perspective. term And lot address longer Montana and a what us still that in there from

then more RFP And our ultimately we our so give and around upcoming clarity RFP in our follows. in that will that

will that will fair. And I am missed, I Okay, when – RFP that’s sorry, when be signed? that

would at that probably had Laurel, with Brian that’s as on expectation outcome the the then XXXX, in earliest earlier, sometime mentioned in is RFP Yes. you mid-XXXX. basically an

Right.

I equity, I shares question dedicate last lot how as do. to lot of got you it’s lot guess mean, my outstanding, is relative saw you a lot not the like And to but up capital far need Okay, as – putting a a many a I you really around verse that to of have people of it. us to equity capital, just guys. then ATM you equity mean,

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Right.

Okay, thanks for it taking up.

Thank you.

Andy. Thanks,

Have good one. a Goodbye.

Okay.

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Hey, Sophie.

Hey.

well. wondering room transmission, others process? Is as lot is your as about maybe that add next to year West, there happening for in a beyond or transmission you now right Thank there – on conversations into the you as especially California about of IoT think it you. that, but to planning, is even thinking Just relates there transmission load,

Montana hand going of being at in this the organized Most transmission power our needs, of work transmission. in constraints is an so important around decade, structured adequacy pool. What And discussions of reasons resource to been Northwest we by our More are and look meet the import context balancing territory, our power, to generally, for customers’ very transmission now for of active most program come of last, one will the our we involved of of in around I in market. to being informal, generation it’s would Brian deeply serve led why the system authority. we been the terms transmission the regional investment the and last very is Western aware to on pretty I able transmission service within are relatively say not retail discussions how which is off are customers. we to it’s we our as have those have are Many because have it the hadn’t all always that’s certainly

and that, rise consistently the we transmission want to as projects, to Beyond or certainly in that fall have. is something stay that close West, Brian?

Bob, gas Yes. add said in constraints. transmission electric are I us would and both I And to think electric. opportunity an about you for we spot or transmission invest concerned very on, on obviously, is gas increasing there is

Montana, to investment that, supply day, have within are for customers gladly every daily ourselves are well. to do on do can And peaks, be able to both meantime, I think to a an that. us them within but perspective In we going to great our from as We happy Montana. would outside to and focusing on what more during that’s make and protect do the electric for we than And also actually access needs meet basis gas to also opportunity we markets deliver now particularly our Montana. we a to opportunity to sure of

Thank you.

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seeing, you combat front, on what question inflation obligatory the pressures your any that ask would ability I figured just to I Hey, guys and them? are

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that and increase operating obviously supply into going add certainly running would we supply are concern and potentially, I inflation to tell investment, that is have issues. – forward. all also you some is capital chain a And Obviously, costs, we

have really nice done We far. a that managing job of thus

And well. actually it in chain to going kind have AMI to We our to there, great going so supply Montana, having are concerns schedule. was keep share. to are wanted to due we of But our success to implementation expand original of we

our supply we are chain. around pretty keeping are out things concerns for going otherwise, So around inflation But eyes concerns well.

I some of us then incremental of concern, I recovery activity, of aware or associated wildfire just whatever that be all just guess, And in process kind that’s should or that wildfire mitigation Got one it. binding works? costs impacting kind Anything I guess either has remind any and been our know how, we with the maybe them Montana. there other

did. We to outside the segments a sophisticated an that talk two not that That’s program of of item. What tree I number been hazard, have clearance, would investment those developed say wildfires are nature very right to terms, events in of program. a way could expense the strategy own planning of is the our because danger participate you identify really particular includes down regional for active for have in analytical and about years. the we need other but from We of for trees it a capital we to it lot good everything item, hours line analysis,

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us during of that program. and distribution the year. folks in of And the of for all work good There in just specifically well. Commission is meeting off at think case. Directors general rate Montana did that benefits we But very more really do foresight the the the dry spent maintenance system. can our is paying always this transmission hazard we are also The trees talking We last Board seeing support about this of time I give the

paper. Montana, just had reading about there in I as today the Yes. that Bob and add. are fires load I obviously we in peak would mean, yesterday, are earlier mentioned you we with a to to continue interruption of to provide speaks customers. just And very company. system, we it and our our impact the around that They our manage little at quality of operations service this

folks, say thing XXX been company, in with is I we this the I forest I years T&D – have get other reminded at think least been dealing the reminded we we over fires get have by would operation.

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look to everybody. forward rest the year. the enjoy Take in seeing I summer. very of care, the rest So, of person much over your you

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