NorthWestern (NWE) 26 Jul 232023 Q2 Earnings call transcript

Good morning and thank you for joining NorthWestern Corporation's Financial Results Webcast for the June 30, 2023 Second Quarter Results.

My name is Travis Meyer. I'm the Corporate Development and Investor Relations Officer for NorthWestern.

Joining us today to walk you through the results and provide an overall update are Brian Bird, President and Chief Executive Officer; and Crystal Lail, Chief Financial Officer. All participants' lines are currently muted. have for we Q&A presentation, the allowed a time session. After at instructions for provide that asking I'll questions time. Instructions]. [Operator

results NorthWestern's have northwesternenergy.com. on been release the is released, available website our and at

premarket Tuesday XX-Q our released also morning. We on

and the company's contain this by questions Please note responses press your that to statements. presentation, release, comments presenters forward-looking may

you the of contained Safe on second slide in provisions such, Harbor SEC filings As included to I'll our presentation. this direct our disclosures and in the

the non-GAAP Please definitions non-GAAP also see presentation measures. in disclosures, today. includes reconciliations presentation financial note, included also and Please this the

being today's in Time found is year today available webcast beginning recorded. will one website. be can the The The Financial archived of for Eastern and webcast Results replay at section p.m. X:XX our be of

presentation over Brian the CEO, hand NorthWestern's Bird. to I'll that, With

morning, Good Travis. folks. Thanks,

would've amount many the we're reason liked have but heard That's is travel having the Sunday. of know necessary yesterday. of to to from -- us I diminish the morning call this you on

and to late ran meeting on call we morning. have so on Board Wednesday here the Our Tuesday, decided

the regarding on start, front. regulatory second busy are very, the quarter, very we To

well obviously you're a waiting we As review. rate on South filed the decision in multi-party Montana we're our settlement for review rate have Dakota electric a aware, and recently

from so soon. that we'll And hopefully hear real that

has Regarding lot County Yellowstone Generating first Station, happened quarter. the since a

and and facility the second the in legislature the Montana, we Governor ramping of amount construction speak. which construction the of as during So us from quarter, we tremendous up had support helped resume that a we're

project of We have $XXX itself. over the million estimated the million $XXX invested in

the in country. which good our quarter. us seeing very, business. It going very going we're help on result, territories service and And in a the by as to was basis second us didn't very low lowest seen operate a forward of continue We strong help here growth with has growing in unemployment, to necessarily customer the some unemployment also as

culture this and America's being great point for NorthWestern have came the things That we here. the think us. work. acknowledged think is this utilities the workforce announcement have great it's XXXX page, one of the out And And is important about mid-cap I lastly, I NorthWestern and XX great one Energy. heels acknowledged. only a one pretty And on we to Newsweek was is acknowledged of by of to on here being in of places workplaces in There's space of the XXXX cool only as course certainly also

that great just -- to our tribute acknowledgement. very employees So it's excited we a about and we're

it that, with over hand going to I'm Crystal. to And

you, Thank Brian.

comments And with Brian's my begin on here. Slide I'll X just team. working great conclude comments to a on

think -- with the work work acknowledgement and is the we people thing. Newsweek what the great a of we fantastic here pretty do I

into a I'll And of as of added a we've of getting then to give detail, to performance. slides quarter thinking before couple we're turn second the a quarter. to bit color about how hopefully So myself bit you

the for year. in And a than our expectations about line we how quarter, while little and lower with the acknowledged results bit we hoped had but think their Brian

lower quarter. second GAAP you of bit a $XX.X the So results EPS basis to give here, prior a $X.XX QX or little color year million by versus of on

by And upon depending lightest quarter shoulder do you our an were how about of of there we variability is weather. you QX perspective. bit We $X.XX all a think can So spread? weather see that impacted know season from and earnings

swing you had that's for note compare us. weather that earnings of QX period $X.XX unfavorable over those weather a this was year, XXXX I So in $X.XX was year in period second for but due so favorable two, we for more last last weather, year, recent QX quarter. of our to That XXXX would when

of drag to $X.XX with familiar all for shares QX there's versus impacting results outstanding our issuances, with you're again XXXX. addition, relation In equity about XXXX so

concluded had end QX, of we you as just reached we had our the talked there. addition, Montana at in a rate hearings settlement In to review and

I to to impacts is XXXX do XXXX QX say, and QX you more were our done with until of not as as the no Montana would and all as see out is Montana So we a you settlement adjustments. of expectations know, what for we quantify the we approved an statements. what this we guidance an bit financial we outcome the provided if have of won't indication our that is to But meant it bit on settlement see both Commission. here from a the detail. give earnings fully you Again, update of our impact have

both XXXX, is. this this contribute of based and impact the as would would in our earnings line implications tax estimates, our include about QX if revenue settlement approved $X.XX and off to were again, So

you we XXXX, about record that of impacts and provided that the weather to in plus performance. So further able there's X drag, $X.XX settlement contributing were more of comparable impacts number that. in but $X.XX Slide bit versus as $X.XX that Again, how variability you we equity you think a comparing $X.XX to up, coming slides see another of of how into versus about think definitely and a XXXX and color. if quarter in I'll detail our dig there, two little that bit a that

you're all Slide again, familiar on with Then our QX results. X,

some We results. have favorable weather then solid and

continue -- You that and we talked that. see growth about underlying Brian to customer the

would've impact the that the of year-to-date see been a $X.XX would to That you QX settlement. $X.XX. total on bring would the Again, So basis.

see that you that, at halfway basis a $X.XX $X.XX be non-GAAP see we'd And adjust through versus you year. the point, numbers can would on this the year-to-date at you a

thinking conclude gives basis about some perspective. as indication that XXXX both as are year our a to And we how you from and so half we earnings on a

So to I a -- and of with results. take you more detail detail that, into X, dig quarter bit Slide would the the

just million of as that million with color income basis, reduction. $X.XX on from gave QX share a again, of $XX.X I compared to And $X.XX difference million bit $X.XX per you net an $XX.X earnings $XX.X performance. a and last net a compared difference bridging explaining in from $X.XX that's of that's year's So a that's income basis, the XXXX,

breaks down. that X Slide

see on And I what cost push us, you to side gas a detail of can bottom had we margin that slide I And you by business. give running of then would of unfavorable was see a driven falls the call offset and electric more side. for continued the favorable line utility have favorable the the actually upcoming overall that'll -- a bit natural what You by on on can that. the

us a second of earnings $X.XX depreciation, from basis. and contribution interest, costs, to operating leading the quarter So

positives, $XX X, rates those margin Montana Slide positives, over and the I would and are decision criticality of million. rates performance, is more with always the about detail a bit again, interim provides just the our So and regard that, overall of settlement first highlight million right? Commission the to and interim and $XX

impact So of you can there the contribution. in QX that see

customer decrease our year. perspective valorem the property I tracker, in but taxes of the the I talked tax bill. state, that, and with something for QX, a valuation prior Department also comparability mention In Revenue, of negotiate know we and taxes our of saw that a Montana, versus XX% we've not that's think bill or variety our in collect but about from valuation you about in of a ad property would we typically most a factors that's we lot,

been positive and We tracker minus has is haircut in in the place. negotiating full This a we tracker rate one contains that It's have a from and tax a a us. a happen year haircut detrimental valuation. have not it lower because typically to that to

you margin in a positive can million last versus So QX $X.X see in there the line. year

favorability million last next year. thing about the favorable again is here PCCAM item talk PCCAM then And not of versus been $X in to past. my showing And the is favorite QX

to positive flip is to saw have sharing interim base take is The What being pricing importantly, impact we loads. what we've of amount saw and that highlight moment also to side that XX% around. final shoulder reasonable the agreed and us the and more we impacting more do moderate I a the of base volumetrically much the then a rate closer with have the in to consistent certainly season weather is So there.

of when to but So you not PCCAM that had we XXXX. of that it, I that XXXX mechanism. to for $X.XX relive want And comparing $X.XX I'll from remind that's drag favorability impact, us for full-year

$X.XX So also is their that's compared about when customers we're that but importantly, a the dragging prices thinking that. moderate, about huge about see our QX a seeing to, XXXX, we here that about this earnings bill and our I'll amount the and think how in that things is what certainly and to impact of as one think was year, for to positive impact we favorability how QX think say to last and in

whether elsewhere right certainly that. the would highlight of across weather. Then ability we demand power and to to less you spring, full lines our gas moving related see the by electric about the move a here, business, detriments When to impacted side I bridge retail, electric and all the more for transmission think we transmission volumes both primarily wet our to saw

yesterday, and has versus territory, see you can rate little service drives of see the growth Montana being demand well electric electric there a that season, that volumes, underline ultimately we and Having that was but I the customer in a ends a as and see then that transmission changed. been quite both can can year shoulder up also we have would weather tell lower you formula in side to And natural our in but warm you on I tell rate. in Missoula, what margin. retail last gas. you certainly bit It impacts the there, change

that's have industrial a something and see we impact some We loads little with we mention the system saw so in our bit there. of Bitcoin come cool irrigation miners also softness spring also through would and have didn't and a wet little and loads on bit we there a do lower I side. that

margin on So of that line, the overall, utility a to bottom lot in again favorable but falls of there pieces for the a bit quarter. the moving

and to on operating I general is lines. talk about else and pressures X at these again, and everyone our us move impacted Slide costs. And think administrative I'll by

way. level focused of operating think We a and a in the managing business maintaining on of sustainable reasonable I costs lot a very are

of XXXX, driver benefits can impacts really labor you operating the You and and our certainly see XXXX. expected is and most compensation people. see the costs these significant versus impacts us that of cost we our it's That is something everyone in largest and else here for up

beginning, Slide And our again, highlighted this weather weather XX, a to this non-GAAP for piece what at get adjust isn't of hopefully model a is again, out. you the but picture the we I reconciliation that perfect.

this. like be But and there's and it days see is You'll both may to into to our it in our heating a not while season try weather consistent impacts estimate view cooling we give that days, degree us. you degree best shoulder of perfect,

weather in $X.XX recent GAAP have we to then $X.XX mentioned XXXX, QX adjusting $X.XX in what of basis on see You'll out we weather XXXX, $X.XX. earlier a gets And backed of in that out. bridging unfavorable I of us GAAP that favorable

to been rates has plans. PCCAM then flows us also XX, mention financing I'll mechanism. the cash impact both on Again, And that moving and Slide rates to interim will earn at and significant that the we on to just base our adjustment of

in start announced some favorable ATM did to XXXX. and cash $XX there availability million remaining the that and do equity also in program issue out previously our had expect see $XX.X our XXXX. here. for in of remainder we using up can issued approximately We million, We You QX plans flows

And that, that, do a With I'll expect awaiting we all Commission's update you're XX. to do decision that we reiterate it significant for again full move is us. from are very a Slide outcome the awaiting us, to and while and

point, in So update. see the providing we of feel of being expectations, good can important our we settlement the are by and to of to critically after the commission. but But received we placed in about we were update the with won't will cover is and sense weather, cost be cost you checking provide results broader able QX And results with the otherwise we customers, a you to business, consistent that us what serve in certainly Montana that our as impacted await front this update. be that, to the at that our we with with decision while Commission's

And to that, turn I with it Brian. will

Thanks, All right. Crystal.

Montana commission say that to obviously from time rate the revenue about thing an on on spent the the of On Slide talking settlement XX, talked settlement. we about I parties waiting the to parties this and a that we settlement review about settlement's reached itself in already that outcome the to requirements. the only and earlier provided amount any only been we're just folks tremendous are But remind on testimony want is all calls,

So settlement those requirement. testimony interveners didn't who were opposed revenue on provide to even the

that So as they their sure I'm the something considering make decision. Commission's

and August Secondly, quarter. just could during third quarter. here is briefings anytime been anticipated could as the argue next steps, we And decision wait done, be in all the I that the for the in third

patiently So an there. we're outcome for waiting

As on XXXX. really I talking review, first Dakota review we filed move XX, Slide it's South about to the the since rate rate

of $XXX like recovery our been much of amount million in come making So South been get during in And terms the all of of has invested it's investment period. Montana, overdue to that in in Dakota's jurisdictions. time significant we've

that that associated built. million $XX over plant just to know you Glanzer of many was think of Bob I is

a that's fact, our of So XX% as that manage nice A matter been We've jurisdictions investments approximately of of made investment. our of lot But requested big that by of $XX XX% done to in their T&D increases it. of associated a really costs. job well. a million increase part

of return a been a our of getting return And investments really a it's we've so on making. function

XX, in system. of be of to investment pretty T&D to a years billion, next investment investment our $X.X is investment of be and that billion, time investments two-thirds business. still tremendous that in looks on necessary to from capital we make XX% continues of need history a a The again $X.X five CAGR that our five-year of period a perspective, Page Speaking amount over here impressive

on -- of well. to will of X.X% included investments. tremendous rate be going Those heard in capacity and again, be Certainly are that and based $X.X five-year talk supply capacity challenges as side, what is investment the that there billion. be amount, but about amount know there coming You've not this obviously company. those two-thirds, over are at But that don't growth T&D will Yellowstone me We those period. County, approximately that beyond

customers are investments returns And associated think less be obviously and try We our investments. too, from than we timely our of making we concluding, and those line cost I want be increases to to with inflation increases manage just and fair that see for more in more to be with rate fairness in case shouldn't this recovery inflation. to long perspective. in in of matter a and waiting And to need investors also our fact, those we're come that for with

currently So you'll and our see our but what tentative filers. us are obviously versus returns returns manage being these frequent rate reviews being authorized actual that more in, we're to more likely

with will Travis so to Q&A. I turn handle it to that, And over any

Thank you. Brian. Instructions]. [Operator Excellent,

your first Shar, our take open. your Shar at from mic be question be should Guggenheim. We'll Pourreza line should or

hear me? All can you right. Hey guys,

Hey, Shar, we can.

Yes. Good morning.

on morning. sort case Good here, going is did work indication but Montana little more I touch a deviate is just getting can delayed? any of been it little into and maybe guess the Good intervener. could a How bit want of a of just of modestly kind bit that bit, final you morning. of entered with get why settlement you Brian, from sessions a this investors the the to there primary to and case so I the relief order think just kind you I sort dive little has

color great. That'd more on bit little be a just maybe So the process?

something be the would try seeing we'll Yes, any associated. for I relatively argue actually going see do think of wouldn't don't is -- not unusual and not I to it I that I I know This delay timing, schedule's to soon. but kind decision, would this I relatively assess, be expect we're soon. when to see really

on you that on itself, this, itself. other And the just brought of the job, response we'll on think hearing very as that running the job very, commission did find I issues. fantastic something a a soon. hearing hear fantastic relatively expect -- of terms it saw in And President we've from seen think I in I good commission we'll the this,

the itself, very the the And many I that We covered on I I on different out matters. the this think agreed the all struck revenue here, parties. balance amongst good settlement, regarding on settlement requirement We pointed a parties the call all as think, topics. agreed

for in of it's to the difficult mean to it's to be any that certainly things of do anticipate in and happened compelling I them adjustments. in I That they think good the very in doesn't try the front make put front commission. of light can't has past, settlements going very but

as And but guidance, Dakota's I a timing rate a little what issuing impact, the could about of just bit Perfect. guess then of Crystal, around case more kind lastly you're thinking question could about plan how South on versus roll only forward think be touching EPS do a the in growth issued, here? guidance we the of meaning Dakota guess South mix maybe the I rate? capital maybe

Thanks, Sure. Shar.

On and the it there's you, six rates. put just period filed tell statutory interim here, don't think here, months correct but in South is timeline Dakota a once side, waiting I me Travis we would will didn't a maybe I a for basically you

when impact mid-December. to apply So be think we XXXX, rates would filed mid-June. earliest would about that you interim in The

a XXXX So it's a And will giving timing that, of think and we really about not XXXX not XXXX guidance. that's our impact item how item.

have I'm last guidance on side, took see be The attorneys in we need to do item. We they're that know if order. see him outcome. a put Brian giving legal through is mentioned And And June, million really the the on the then, final biggest but word We're of briefing we impact to to final order was we think well, has together the revenues will early to million Dakota that that Commission about of clarity, but Montana that more South South settlement interim for of that over on focused once timing us dictate biggest the working But Obviously, we a Dakota versus coming an of is delay of any very decision. issuance. to July. awaiting from $XX rates XXXX the the hear with the know guidance. thing you're us have guidance $XX as the us, that'll to question, that won't anxiously all which end out your rate,

you of we then there me a been Perfect. of just line for it's Yellowstone? or I could just Brian, else you see anything last that that clear have derail one with it sort should Okay. assume is, sight de-risked? now And think do Is can

pointed just quarter XXXX, we I No. -- will. staffing, aren't as we if you third the out, to of back full

So we're everyone we're ask there little bit, quarter. to getting -- to leave come when you've you delayed and think anticipated again, the everyone -- back, the third and I to but been it timing's still now a asked

So We saw getting good plant we the done. spend. all percentage feel the about of

as work end the So and needing of winter then in resource is But I lot in weather between primarily work amount finishing say. before good peak summer, season it we think you'd the the about of at process but the for the hopefully of feel a very that and definitely now time having XXXX.

Got soon. it. Perfect, taking guys. you Thanks questions. See my for Bye.

Shar. Thanks,

Thanks, Shar.

Okay. line of the from next We'll at Tonet JP our Morgan. question take Jeremy

Jeremy. is hear Robin on you Hi, this Can me? for

can We hear yes. Robin, Hey you.

maintain on XXXX or to And more current $X.XX O&M broadly? one-time settlement, items the mentioned Hey, year-over-year any gross or operating goal trends so Montana costs from O&M based you expenses was structural rate and on the expenses. negative more benefit increased by driven labor costs color more headwind your sustainable case

bridge structural. two and I manage It's to out we perspective operating ONG you larger needed are sustainable level we benchmark costs. or And the on both my point back on take rest And guidance out, So with parts, caps don't basis it peers an I that ourselves we is our of very a have I your the get of to SMID to since in we per sense more customer some where while we rep would, our definitely one-time the business, even low. per of and revenue structural would cap laid items? XXXX question XXXX I would electric

biggest of we here in to I to that lead that so as know as rate see in. XXXX review. Montana is we we have that perspective What amount those the a operating recovering we our in on we reason labor. costs. through focus adjustment measurable driver, have costs the and of cost a go known And And captured reasonable with base something increases That's the see costs is continue you our do that structural in we'll from

anyone tightness given a kind not represents. the there didn't listening little definitely of percentage call from I perspective, markets guidance that But bit more there that's in operating perspective couple you I From costs, you quarter-over-quarter to do on strict a those the years, clearly raise you think this the moderation pay there's last of if labor the expect what that in you the of cost saw of the but haven't structural would and tell a costs that this probably would to we a business versus year-end increase we get see a are basis. benefits just and what labor. and labor on

just Thanks. rate you Great. Do -- a $X.XX high-level I it basis, reasonable estimating forma around $X.XX that you then the guidance realize guidance, be similar case high-level, your would for or there, in haven't just it's cadence approved. And shaping, to Okay. the is half similar think about pro the year-to-date gets EPS thoughts? assume year, you're Montana but a speaking for assuming provided back on any

the is probably guidance, reasonable would comment I While we giving not math. probably are that's make

All at right. Fremont We'll Ladenburg next take call Thalmann. our Robin. Thank you, from Paul

very you Thank much.

and whether -- Can where First constitutional Supreme where for there? that would scheduled have challenge first on Court hearings you been question stand update the any Yellowstone. my give that -- us stands on be

good a already Yellowstone. we believe certainly That our stay on helpful, I -- as that received. had had the the feel that decision I we of from Court we resulted the but perspective, was Supreme it about result think in made

forward the just permit say I have build challenges forward, future to our and And there so that strip that move that we it would on I move continue coal in be that plant we're anticipate continue could plant. was to we certainly need, we to regard. helpful the

that saw in through forge we think make the happen. the and and for need will have our the to and support I the for that state customers you continue plant this,

in And schedule filing. Supreme follow-up movement that Montana then, no that Paul, Court the just there there's been

So we'll once might have no that. when something, that sense on docketed. in update we But the change get of

Great. And timing special then call terms of Acts? that in be or the a on quarter would the guidance, call like there of would third occur after the Montana Commission

probably That's you Commission if a aware but Montana it of and the we call, great give direction goes, question will exactly I before it. do the so we to make depend will certainly decide you can't all certainty, something on QX do

And or then potentially with me, is guidance you rate delaying that affect to from impact or is the not case going South giving filing, Dakota going to that XXXX, for last question that?

receive earlier Paul, six can interim of on rates. before filing there's that made you just to months I statutory the comment;

there XXXX regard at with Dakota working guidance, or the won't impacting them or our it either with Commission, -- of XXXX requests timing received South guidance. are to We we've data impact XXXX

XXXX, but certain guidance not something have but in think hope docket, impact yes. or With there outcome timing guidance, our it'll we no And assumptions it we I if we contain for the that reached docket go, we would may outcome in XXXX lines, either a the don't that it with regard and fashion. commission certainly whichever can way timely resolve in to work assume

take from at Sophie Karp next The KeyBanc. is we'll right. question All

discrete settlement when if specific any maybe on the in should be the quarter process receive company I that about is any it. we first curious approval hey, settlement was items that or here, So, you adjustments accounting thinking just my

just think you're X all rates there you, I -- that right, would the I Sophie, Crystal here, XXXX. interim for thing aware October are received we highlight of

the pending retroactive. of outcome be So will impact the settlement,

the will would some I related of we sense thing call there period results. to of record would impacts just what would be adjustment out in the mention is XXXX So I

to there's versus that and would ongoing are out and that item likely periods. -- what to is what there settlement is we be that's separate will prior we items. period so record to highlight related And structural may XXXX when impacts And related the highlight certainly of that I

Got it.

be that final the interim in rates basically So -- order. would settlement between and final rates the authorized difference the the

things a interim in and Yes. of between that. of There's a variety and final there the difference certainly is piece discrete

Got it, it. got

could I then you -- about guess for I Okay. the So and mild shoulder curious rather mild right? weather, flag Thank you. the if you volumes impacts was, was negative question days and the And far my season margins. other to from negate up quarter results? the negative comment in on enough so the quarter how potentially second and of from months is the full-year shaping there's And so some if weather summer maybe far. that impact the third

high so really territory Crystal this XXs things Well, we hot perspective. than will and we play yesterday, can't good Montana from really in is be service out. low look speak the July how going to mentioned But to continue appreciate our were that I throughout one I going to and temperatures. -- can't extremely think certainly to other U.S. are -- call. whole a the thing we'd in say, everyone's on The as a continues earlier see to

all right. All you. me. It's thank for No,

line We'll question Sophie. Jonathan you, Thank Wells of from take next Fargo. our Reeder at the

me now? Hey, can you hear okay

You bet. Good morning, Jonathan.

Hey, thanks for good taking questions. my Hey, morning.

issued to we know Montana to I about the it be Yellowstone that the the Colstrip potentially IRP as additional additions have you past. with the be implications Brian, that conclusion I XXXXs. the be going mid-XXXX. in are ownership. the the It's mean, in resources want pretty IRP? of the you've know early about RFP noted consistent and needed the talked Once I thinking would how know how of potential Just earliest should more in

transpire So to and now move kind an more you between resources. for forward of what and seeking needs with to IRP then

Yes.

are Jonathan, impact thing one rules we to here could our deal fleet. certainly is fired also think EPAs I coal need with proposed

we need we plants bridge, more seriously to so business, continue you can will, We to that. at to the fully our fire that where need us help importantly, but a in take help to the to resources. impacts how get cleaner to a with And coal look point operate those understand if work and industry to others EPA

the have timing probably EPA. appropriate today, going I continued think from a of is to are to but So we it pressures also accelerate associated that result where IRP of with the our sits plans as some

impact in But I kind I forward would like, IRP, with RFP, that? think but know stuff like moving internal Okay. they see Is you'd on you all an are? be of comments, to do would see, comments the those the make like be doesn't waiting completely rule to to it terms waiting of and EPA this around rule commission like, what like analysis

after the we have decision, aware had to dialogue a rate these a them the out. They're the address with how be will a with certainly sure RFP. heads challenges. when there'll and of We they're commission, make from come up we'll terms will rules plan we of it, bit obviously dialogue about came We so that a continue reviews concerned given forth in of

of regulatory then many or beyond another we authorized you And filed historical given South your mindful remarks, do how test Dakota Great. Okay. recently you just cases, Montana's and of here close to kind the basis the the of and comments going that rate think when kind for kind perhaps points to to structural earn lag ways, of can look XXXX you exist of guys? out of how ask levels one

question, great think a so. it, turn Crystal I yes; I'll

call before on, continue with saying thinking to bps in more suggest, improve I'll to ROE we were a I exact CEO of our I on case take it is asking we would give we to Obviously think will test is around -- internal the my us. and upon but amount focus reasonable ROEs X.X% a I period. we're are and from a regulatory another you X.XX%. that given publicly guess, dialogue earned said about I've closer topic, CFO will an What in my is think like the case move this our rate have you to the to getting the year Brian I XXX execution that would with think historic here -- of started our lag pressure Jonathan, earned that rate work last it's a there and the --

would will a the on cases tell infrastructure that given amount that's you focused making critical get rate will and in of that again way, to address It this investment step investment, frequent sure we for all I huge of the needed that. be So us won't we're take more forward.

this I XXX as tell be of would the caveat around bps my settlement everything approved I'll say assuming after one, around would will probably is to you suspect I So That's lag. is. that

afford to quarters Other and put not forward situation business eligible rate no base to their investment of that. base there, of ourselves just to deemed I'd that They would is, XX% be I only low. earned have of it's having We that's our closer and thing it's upon XXX% in too three way want be -- Jonathan, going can't to -- add recovered.

to that obviously more just can to be sure so recover more make need we getting frequent And to that filers frequent investment. make we we're sure

you Did filed surprise no, that case the And pretty the of everything? South folks large case had when magnitude kind like you case. mean I coming it communicated and the or Yes, agree. in of a seems Dakota

plant shortly matter I They the we is very about after T&D and the the with I then be Glanzer that large know in fact, and it. investment they think coming Bob commissioners were of for would supportive that opening. that investment associated and think commission came the there understood the of

So all. their in investment at support the the know number I react we've making customers been the certainly I headline -- aware to state. of our But they're until can't

and my to the answer South Okay. on Great. the and progresses. time luck No, process as the I Comm appreciate you good Dakota Montana taking questions

Thank you.

Jonathan. Thanks,

Jonathan. Thanks,

take from the I number. just see We'll a right. our what you? Paul, believe BofA. of Paul is is Zimbardo I next telephone line at that All call

Paul it's hear yes, Can you Zimbardo. me, guys? Hi,

you. hear can We

Great. all you very Great. Thank much.

annualized question, follow-up Because on of it $X.XX to first perspective? Just what half cost be to half tend a think for a earnings I assume just right, that I year have on the if does second bit that little the weighted.

the it side on just So curious assumes what cost perspectively.

and the another asking at guidance question you Paul, way. yet fabulous So are

the I way our settlement the one So quantification to it of $X.XX, you is is to quarter as this if for first results. approved would points say that

We the the the year. asking half haven't is back about, that of you're things shaping guidance given exactly the all which of of

from Montana will this tell the more you give no outcome would that quarter color or further more Commission, I you, see So once we an we that point. on at on but details

one point? offer data might Crystal, I

always you can offer, you one than but more data would point Travis, like.

Crystal PCCAM blow third Yes. you, in the just had in about sharing as that thinking you're $X.X million PCCAM you're that remind power the on even just but -- a million bid fourth drag did would out markets pressure, $X had quarter. the just earlier, if alone Paul, this to quarter, the third I to We mention another that quarter. in the looking we back XXXX,

fourth So there lot of in was pressure the year. last a quarter

up rates In once tax addition, we fourth mill that the we the in got ended in. truing quarter property up our

bridging you're if tailwinds this there's so headwinds. more last year I point to from would to year, And and

what known And Travis and is I out think nicely knowable. is the pointing

Yes.

it total heard where in at that definitely our we things end $X.XX And you of range was of year that impact last came of South outside me all to just guidance pushed the the PCCAM year. and of that

So when the off full prices again case and you power see gives of rate outcome Montana the that coming can us -- impact the you with combined think about, assuming base, think to would of amount this something was that PCCAM like headwinds like be couple certainly will years. the reasonable of year costs a not is us say already base. last for it I

great So is following-up that on point that's a Travis there.

adjusted breakdown in for period out it, in helpful. the there I that. the about some would of received asked volatility message the of And the a just you've you had you And showed this little quarter a after of in be could shoulder you you on even in the bit adjust thank declines that provide gas large perspective pretty actual weather, could the so got electric normalization? loud I versus No, you kind weather weather color of clear. be think know any but do what terms Okay. Excellent. you and know the and No, past,

model tell how QX frustration better is and at talking having impacts what So with we worked about that, and like our we times at closely impacts. I here QX weather are you would get weather Paul, our his the model prior CFO and

you absolutely perfect present that consistent. it we both But impacts tell with So certainly again, is of you to and would and amount and particularly cooling model light will weather at heating but called an shoulder as I a I may degree approach season. it is that, consistent always consistent, to days look you want it we fully the it you what would When in but is capture to present out, what what us. spits to not it be does and not

So about can something looking think that guys as you're numbers. you at the

Okay.

towards effectively. of like drag sounds And weather understating the the biases the

would I is that that, certainly a that reasonable conclusion. say

the right, Okay. refresh one, given if next Great. roll then five-year you're last planning the for the slash update. And it capital have I

Just there's [Audio any flavor Gap] on distribution the base transmission

there months Is settlement the four way months. in five or process five way months? to any to upon four …basis or take have reviews not a months improve

question, I think it's a fair Chris.

Crystal think you point schedule well that brings briefing I good made though, June. the a earlier into

unreasonable. can settlement that think a again, summary that would commission, the reduce briefing here time of we I they be could the to commission If staff by kind advice the so and appear put together And around the it's doesn't a sit it schedule that a month provide as everything of helpful.

But the think get lawyers while summed the word. it up I last Crystal

my I be that my -- recommendation. think would that's

only with of But and time been need period historically. even that You I to again compared a some have settlement, we're that briefing that, it? would waiting why delays to associated the that has all we've this have seen do think reasonable That, thing. be we hearing my

X is the really thing the if less interim received order the fully needs impact Chris, the last more to then bit we received I is rates time while commission only rates this And interim year critical to is commission that us take having a to the to add works the drafted of to timeliness would that out process effective significant. get October

point, on had commission, that. we from so rates received we never that quickly appreciated certainly the And interim that

talked you Also, Right. Brian, growth. about customer the

load customer is terms seeing to your of that -- where you acceleration in what of in growth call and CapEx for tenor Given decarbonization you're today sort I'd it of the is adequate general, thinking adjustments the of in the the sort are just upside is on growth and growth tenor T&D customer adjustments for you that? to about like later, or feel component, you do some or capacity to but proper do needing you additional talked the potential there obviously you're see

long-term there's a I of usage country and there. Chris, about think about lot in perspective, gas thinking investment discussion My this and

perspective, much in course capacity see of And more a business great our to concerning today. and is also that from capacity transmission certainly electric continue We important transmission and a standpoint is well. from gas demand as

concerns feel needs. those I there. do So upward with have addressing I pressure associated

We're trying long And obviously us going there be sooner. do something pushed modes. that generation capacity from something my time, concern to make a to and being addressing At capacity. on front, is emits the the duration doing sooner, We're to something it's cleaner do something in pushing doing carbon. decisions we're generation we're same perspective. to If

the sits do like it where understand period time I'm so our needs, nation of we we reasonable need wants -- the to do today, understand adequately do push to to why XXXX more capacity what to XXXX, but trying generation. I And to technology cleaner to the us more things not a with quickly, address have need

the this knows everyone extremely think to it's I on be five But to going do years. typical next in call that

I period. our to I Chris, investment, So needs say, do -- just is there of tremendous this company needs would amount a to capacity address

Sure.

Okay. And one Crystal. for

quarter, already given first a guidance, of a look the guidance you've sort give number. give view But us us remaining to good at stub? already the that give us sort forma given pro and a you you when do won't gave of the you start and You the really your on will second I seasonality of ask numbers, of us

for I -- you we're and reasonable us, think as giving peaking not summer answer I'm about peaking, I it would I that I seasonality a while tell are Chris, that's we an Sure. utility. so the is winter dual from guidance, overall and just think

summer see peaks, think our February, However, time. when amount there we the of months impact of those versus peak stays as guys cold. amount sustained typically very are is of know, a you kind load December, it shorter of three January,

less and of some usually PCCAM particularly favorability. QX So but drag little earnings, of to that if summer we have important are the QX And QX peak. that well, offsets as impactful don't our really our a

color how of be would then And the rest we're as do I'll to think about out mindful the guidance when of So that's how we the that to I how year. plays seasonality give that you give it. as about thinking I

might remarks have that, back exhausted you with the we any closing for turn queue, to I'll Thanks, Brian have. Chris. so And it

again, questions, appreciate great thanking Hey, And questions. folks Thank the you we all appreciate you. importantly, support more And provided to us but your of company. you really them. I the taking we appreciate asking for

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

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