DTE Energy (DTE) 24 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to the DTE Energy Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Matt Krupinski, Director of Investor Relations. Thank you. Please go ahead.

morning, good and you, everyone. Thank

to started, Before to the to reference you like the we presentation, safe the of get read X harbor remind Page I'd statement statements. forward-looking including on

financial operating includes references reconciliation earnings, a to Our presentation in measure. earnings the to refer to also Please GAAP provided which operating is non-GAAP earnings of the appendix.

and I'll and are CEO; Jerry our Joi it and COO; With CFO. to and Harris, President Vice now Chairman us Dave Jerry this to Executive Norcia, call turn morning over this And Ruud, President start morning.

businesses generation morning, we thanks the year. discuss things highlight to for she continue you provide progress Thanks, as everyone, Matt. update Joi morning, all to investments key This transition our the for joining financial successes while and grid I'll we've we Good our will to affordability reliability build have we we of improve that discuss your we improve deliver this will continue to regulatory an and take reliability proceedings made our so and with wrap future. with for provide had and us. Dave cleaner a and before will further on customer-focused maintaining update across stakeholders our And far and up the how the of all questions. customers, our significant

in so guidance. our start me giving on far year let on confidence So XXXX, strong that having Slide We're EPS will very us X. operating XXXX deliver we a

plan support with issuances healthy in affordable remain and to equity also commitment strong deliver previous rate long-term customers. said ourselves on are our minimal flows XXXX confident will strong to energy a beyond. X%, EPS a results our and X% growth I and our sheet As to deliver continue of We balance to cash positioning that our we deliver call,

I'll make need our generation And continues to push more electric for by and and Michigan infrastructure recent Our our of of of utilities. capital required investments system, decarbonization about both renewables reliability Energy are which in supported by we long-term shortly, at distribution growth talk that these is recovery investments driven the of to clean deployment mechanisms the and pace our audit by the legislation, independent which customers.

opportunities continue these This advance we plan, call. these finalize X-year and of solid up to reliability details regulatory I customer-focused we on plan wrap our grid details am plan plan initiatives. As are we to forward the to support continue excited the on of of a long-term our to capital and provide about in cleaner generation front the multiple will support our year-end and investments investments XXXX sharing call. that we'll as our us the we look proceedings updating year-end have and in

said, successful our I our having all the XXXX, a on customers, and is we our As of result of year team's stakeholders, are including in our investors. success and our our communities focus

that strong of consistently our of among recently the percentile globally employee We were by to team Our organization as ranks continues informed XXth result Gallup our deliver the engagement in a organizations. culture. thousands

on Award Best a a As top secret for disability tool Health last organization. most recognition honor, to our tremendous for inside for was of is quarter. the and large for Well-being, measure a I DTE inclusion of the award This continued Employers world's high I've complementing the with which in Excellence benchmarking comprehensive our Equality Work at recognized also inclusion, mentioned receiving companies Index, our their was success. employee said Disability disability before, sauce level as DTE Place engagement score Best XXX to

XX that hours restoring wind that an over highly customers. to extreme as gust service our of advance storm. customers we event by August, a our service goal service delivering excellent included after toward within In weather reached engaged impacted remains team miles Our territory XX hour. to focused our on was all per

As to hours, and system a XX% we customers which extensive nearly teams our of for our in restored a highest XX our get and size, tirelessly our this on we restoration nearly result our company of improvements for lights processes, gratitude storm were restored are XX is to to the customers. extend X-day of making sincere of hours. the the XX% history within in customers back I worked our who

We as to temperatures climbed an XX period. also faced summer this heat extended extreme over degrees for

I'm customers proud as to team's up those conditions, experience they care in held these very well efforts the of of take our system heat. but vulnerable Our most

Our energy free air assist customers in conditioner to need nearly low-income keep efficiency cool. X,XXX program across those was to Metro installing by them units Detroit able most to

and to Moving communities. We supporting in the live serve. on where our take pride communities we

more best give to is for of the world lean While we the August, company's to being back always aspiration, part our even communities. in every

other Caring, across Month team year's members the DTE this up many pantries, a state at of events. parks made out helped volunteer they and as difference cleaning During food

that with DTE Hurricane glad Gulf spent south help in matter Our hit with work as in of our take Georgia. others And Hurricane rain. workers from were Florida Coast the that able In did the and for several to Millions a trimmers, assist team need. I very without who was also then and fact, line our and moment the contract Helene to hurricane giving to line flooded to X,XXX school to Milton our weeks, power, letters received team commend hours few tree back appreciate and a students in I'm were the Georgia and grateful workers relief. like really employees would went southern communities. XX with last drenching elementary states along XXX I XXX

extraordinarily again you our Georgia. thank in for to something team So doing positive

the future. investors, our for And positioned we earnings great really position target deliver are for a and to year in well our this are on

with this and solid our at And flows growth. improved in for EPS strength us for to generation. regulatory operating the allows invest above cleaner environment rate cash our financial growth to XXXX X%, generated reliability base long-term guidance constructive Our this X% continue as to remains original

I provide will disclosures typical our the call. earnings As forward-looking year-end we on XXXX mentioned,

Our to commitment reaffirm to expect. returns our our come deliver plan have shareholder premium will that investors updated

some Slide Let's of achievements our across to X turn to highlight the portfolio.

We are achieving success across initiatives the progressing and on company. key

DTE We outcomes toward for both constructive at rate are progressing our cases Electric. and DTE Gas

ensure near-term outcomes we to will While to there believe our not put on investments support investments, still outcomes is pressure work to the our ability complete customer-focused the these do do ultimately these we generation January to DTE need cleaner outcomes we and on our are behalf November for and constructive DTE in Electric. reliability expecting grid make of for Gas that customers. in And

by XXXX. is cutting key to years, audit, one is power confirmation recommendations of received to from audit investment and the takeaway We the working committed of Additionally, outages key the report improvements the and last the system outage improve X final over with is appreciate Joi Michigan independent audit will proposed the significant independent distribution Public year, we the plan that the the reducing we have XX% by really insights what our items electric that reliability team over our but Commission. system. the Service next in our needed we achieve to appreciated half which as from over directed some time the further of go by is

on year, progress our this improvements to continuing are the benefits are customers and investments seeing work. these and this reliability of We

grid just in mentioned, working. and to had on in that Joi the progress I smarter processes grid sections As great history restorations demonstrating improve our that progress efforts. I'll trimming existing our are this of tree and effective we efforts making we most the in automate plan But we rebuild update one the infrastructure, storm on provide our to August, continue a our detail will some of as all aspects company's say of our our are area. older transition significant grid,

X,XXX more homes. progress renewables now solar residential We subscriptions. our megawatts each these a solar XXX,XXX than build-out at to add making is currently X voluntary construction. we project broke under parks And portfolio, additional will with is to in nearly renewable are DTE which our Last XXX,XXX month, which X new our XXX ground Electric. projects supporting and customer have significant on grow megawatts Together, renewable parks also power MIGreenPower to program, continues subscribed, enough

DTE modernize the our we year progress to transmission continue gas we Gas, our In on and distribution as program this gas system. our renewal system main

operation Motor energy Company to and And is custom earlier finally, in at in We Ford go fee year number DTE the carbon Tennessee. Vantage, fixed long-term we projects. are solutions, project highlighted RNG this advancing new and into is by at This to project underpinned a contract sequestration plant November. scheduled Ford's support capture full a of and

into go on service the the construction RNG an began is also that end project to expected of year. by We

our give Joi, it Joi on turn to over over improvements. I'll regulatory reliability front to Now highlights to and you. some

excited good I'm to making customers. for the morning, our system continue progress reliability improve Thanks, everyone. to we Jerry, and discuss to are

are you rate important to grid part required proceedings cases regulatory our As to the of There supports the are build working, is several progression of the on proceedings we investments and journey gain generation. at transition helps this us of general utilities. future these regulatory an of which investments know, cleaner including both currently alignment our and the

outcomes continue in progress We these toward constructive cases. to

emissions necessary to which our case minimize will Gas, renew DTE important reduce rate carbon At further infrastructure, and lower costs. the our leaks, investments filing support continue gas to

are with We weeks. very to this case coming an order the in finalizing close expected

make rate filing case underpins in plan progress includes more expand generation. to in next resilient the mechanism smarter, we approved cleaner our customer-focused The step stronger important and outlines was electric the extend customers. for that to filing investments to grid recovery the previous maintaining infrastructure need transition to while the and Our This further rate request and to our our long-term a electric affordability a order. investment build

the DTE us DTE allows investments IRM IRM, cases. recover infrastructure rate Electric Modeled grid between after of in our cost Gas the the to

electric to does is DTE help as objective between the Our the stretch commission to work IRM over the Gas. time it to cases grow with for rate time

January. the We order expect final the on case electric in

need supportive distribution help as our on process deliver electric receive that plan electric As Jerry a our independent set commission to to these system that have proposed plan the reliability understanding and of and have of highlighting confirmed investment the system for the we investment on mentioned, standards decision committed the in will our is the in We commission's service cut XXXX, also audit that improvements customers, engage over appreciated the and X consulting capital all improvement. to for distribution audit in by XX% did the the with PSC. appointed. From by the view in time for for dramatic customers we results auditor reliability improvements. firm outages constructive our deliver the reduce we us from identify this parties The further which outage our a opportunities our gain power by strategic next deliver system the start, on our distribution to consistent years to report commitments to half and customer

in We process a incorporating forward the into audit expect file the November on investment formal findings regulatory forward. and through from audit look to our strategy the response key going to

Slide the Let's move the enhancing on highlight to X efforts customer of impact improvement to experience. our reliability

resulted to automate restoration make of the August the highest made to improvements fully strategic X-day side, this enhance investments we improve store our storm grid. process our a continue for by making Jerry system in mentioned investments improve experience. our customer We to to response and are possible and and the the

has effective the avoided year. implementation tree-trimming over remain third experienced interruptions in power, DTE focused X,XXX X.X through improvement is one time on grid efforts for Trees prevented most power date, proven Through has the reliability. of we customers are to outage methods and improving account than in and where quarter this half minutes customers up tree million And to be without also for this smart areas more the of the as reliability. of our technology, trimming significant

cycle of have nearly and our to to next by a since trim the we XXXX X-year system standard, enhanced have We trimmed XX,XXX an expect more move end aggressive trees entire miles as we of year. tree

in to as So to XXXX. make see, half progress improving in by power reduce we keeps can by continue on time the XX% outages which us outage and you path reliability, cutting

our compared in be were maintaining Of course, distribution XXXX $X cost last the our remain increase the electric and customers. cost electric billion one we over XXXX. have of and to through management just the for continuous annual invest on current our we savings of drive in bill distinctive This growth affordability of average the in we is XXXX in The in lowest to rate will power savings industry's focused continue culture to estimated industry improvement supply for projected of using over distinctive that costs bill and able system, X recovery capital including to our to very customers X% residential customer our as case close from national our system in invest average years increases. annual X%. our the our

versus performance XX. the over states highlighted years Our other on X Slide last is

are supported mix, helping maintain allowing to also diverse reduce investments. costs technology future fuel to Affordability goals energy adapt by us flexibility our to to and

Our also of long-standing continuous lower continues for in improvement form our culture deliver to bills. the customers

transition are helps on energy tax federal is continue finally, achieve renewable And the our These to which us credits tax affordability customers, credits by our IRA. in supported to goals. included customer passed to

to you over to it a update. financial turn that, With Dave I'll give

everyone. morning, good and Joi, Thanks,

Slide Operating $X.XX on X $XXX This translates quarter per the start for were our review financial to third share. earnings quarter into results. me million. Let

a find the can segment, breakdown by including to detailed earnings our EPS appendix. reported You GAAP of reconciliation in

I'll DTE Electric weather, of million the our with quarter. costs. of main the earnings higher storm $XXX for expenses start implementation earnings The taxes of drivers warmer than were base higher offset and of discussion the lower $XXX partially rates, quarter XXXX. rate by is variance third utilities. base timing were This million

earnings offset from rate last normalized was $X million base by the to more IRM. revenue Moving DTE the level. third return a and higher Operating a on quarter O&M unfavorable increased were year, costs partially Gas. This by to versus driven

third XXXX earnings XXXX to were and of in of timing and Operating third the quarter steel-related This due million as in We provide for million full tax highly $XX businesses. up on projects our Vantage and a row. quarter, combination in our both the to credits. Vantage $XX is DTE the to move for and ramp decrease continue Let's new investment fourth XXXX. from and onetime associated some items confident earnings year primarily remain a RNG in guidance

next row, can see earnings quarter of Energy you with million. On finished Trading the $XX

strong see in and We performance at power contract physical to and segment. portfolios continue our hedged gas this physical

the Other favorable of segment. $X.XX for reverse the Overall, and will to we share full the million DTE land taxes. and Corporate year, primarily This third quarter. $XX was by timing within timing due quarter-over-quarter of Finally, earned in this per expect year the through current balance range to guidance the

full are When the you ourselves look in across to position position And XXXX operating beyond. and XXXX, in which, the in our we midpoint. original portfolio over of year a EPS XXXX guidance midpoint, to to great businesses, our achieve guidance results continue we deliver at provides X% growth strong

to strong profile. X to move credit Let's sheet our balance Slide highlight and

equity our is million plan to Our we operations. XXXX. of issuances Due our supported significant investment by to customer-focused through annual cash minimal our are have $XXX cash as strong flows, strong in targeting we issuances $X from

consistent X% with operating EPS financial and is target. capital refinancing our plan long-term X% issuances Our our fund incorporates growth plan to and debt investment new to

rates at quarter prefunding reducing including at with financing our by successfully debt refinancing parent the We risk largely the plan executed fourth our consistent maturities company. interest have XXXX plan,

focus investment-grade to continue credit XX%. rating we solid debt FFO our ratio metrics maintaining and of an on balance strong as sheet XX% to target to We

Let up me and Slide we for then on questions. XX, open wrap will up

focused remains on team all our for our deliver stakeholders. commitment to Our

to utilities heavily improve invest toward reliability to cleaner within our continue move generation. We and

as to midpoint, we for of growth to on XXXX positioned X% load solidify X% operating on DTE the operating and load guidance Our execute as X%. The target robust increased serve midpoint plan investments original continue growth long-term new well supports service we while capital in EPS our customers EPS affordability. is customer focusing to our guidance territory. to continue critical these over XXXX opportunities provides

a We We sheet As you details open to we EEI have our returns total for can Jerry weeks. we you of couple that on supports shareholder with well at mentioned, of I look our our premium our today, line plan strong many investment will in call. provide long-term expect and to the the to earnings of a And balance positioned investors us future that joining that, deliver questions. year-end for come with capital plan. the remain forward seeing thank

[Operator Instructions]

comes from Partners. question Shar from first Our Pourreza Guggenheim

Just obviously, congrats the on quarter.

going needs to helpful. run forward the the update I XQ kind at what stage? would And that system that of maybe want generation the appreciate to to but in be that don't $XX needs of reconsideration, prompt billion a moving is financial plan. you sense about Just reference Can any you just print, QX the update, talk removed you're front super could seeing a but CapEx there this just terms

a That's that the incremental X,XXX seeing opportunity over components, And for years, it of take fact Shar. generation, to by by primarily the already next And we and driven forecasted we're seeing, the we've I'll the subscribe queue. major had voluntary good X we filled what question, that's there are X investment. megawatts renewables

So our continued with program. voluntary opportunity seeing investment we're

be generation I as plan do seeing well. that last energy that for as the independent the system, opportunity And there. distribution year-end at we to was when also And passed earnings some plan the report with our clean bring report we audit update and And we're also opportunity that there on opportunity our year, we'll there invest, all overall see update together, an think incremental will call. you legislation

audit. residency just XXXX, outages target And need still Is a sort Jerry, some storm the the there result as that audits, well the sounded by you spending additional resiliency of half it as that sounds in is plan cutting meet Got storm of the like and it like correct? on it. and to but of

add opportunity. We may you But want do that. incremental to Joi, the

on commitments, serve results and really service align with those deliver Yes, the quality reliability yes. standards those X-year PSC. confirmation our as The plan by the commitments of to Yes, sure.

is challenge. that plan the ramping we've we have years of couple of the noted capability that given grid demonstrated aggressive So last ambitious DGP, investment. our that And just distribution our our we execution or and really plan, track accept up over record our and the

in that of increases the overall capital areas key generally, takeaways. support pull-top out, our like that but we're some some mentioned help some the yes, were laid You've of noted just we've could that the been chosen plans. of levels growth. XX, certain we're But But our finding stay And in of average and have on taking that we shows reprioritize the bills really it there able affordability account. to build into us Page that highlight maintenance we've and look you being presentation. terms to When in national mindful below overall

are what proven governor, in that effective using we we've as manner. that's So and done it our we've an

sheet. Got on upside there's lastly, bias mean strong a like it. got funding balance it $XX sounds you've I to needs. very then just that And And Perfect. some obviously, billion. the just

You plan? sheet some minimal when needs? the equity changes you take talked $XXX roll be incremental forward that Do between funding needs could about on Do CapEx? to capacity to the envision have billion you Or the there balance you incremental $X range. your

to equity anticipate this great quarter The that support Dave. do more. our and cash these have out period. continue We we that capital changing $X on that through Again, IRAs But into we'll flow update plan, generation. saw we current our investments. years. is more fourth don't Shar, to we all on have we'll X plan the $XXX get next the million to you of update through and call, In that years,

that So that, we'll capital confident support the plan too. we're have can

Okay.

of think sort answered that I it.

ISI. Durgesh from from comes question next Evercore Our Chopra

QX, think thinking think last QX from kind materially QX you've the some QX progress in help through you my firming to made guidance I plan. Just of QX like can help it maybe are versus how hitting Maybe the point your what you're over walk us 'XX? Jerry, about 'XX seems range? you Are Dave, puts as of -- Joi, costs your think us to just year and sorry, 'XX guidance? midpoint just of your much 'XX. about of about I'm your do of and takes to ahead when especially date you into of moving year-to-date,

take Durgesh, as and driver the some and us. Sure, we're margins. you Yes. year, right. big a of start we I'll we is that. next that year, were by electric, have It's And last to year. you which, saying storms quarter, And had additional impacting remember, good relative doing last weather some I'll that well

you better. see doing our So can is electric

of like versus Also, kind is the well, too. We're our for doing year-to-date expectations, versus $XX of guidance at year. trading expectations, million million your $XX

that some favorability. does So provide

of -- bit that the at say, we I talked corporate at of There of of a timing timing will know some is and we end too. the taxes. about the little electric, will year, taxes there's reverse

mentioned, are But ourselves year. that overall, comes guess. have as to year we sure your position to that in a make answer well. -- continue to XXXX to question, down. expecting as good to So I we make we are have using a And you good That

-- It you a there? rule-making sorry, looking discussions the decisions performance-based quick Maybe are just are follow-up. does. on helpful. like the Can what docket, update what That's us the

Sure, Yes. includes their already. that we prepared The the We're It essentially, X to has dog. the with are the metrics. These against use metrics measure straw ourselves metrics. commission happy final Durgesh.

the and be disincentives for We symmetry incentives applied. press in will continue to how

provided we've not incorporated now, know that official the there's currently to remarks, be rate date and end no it existing we stands it docket, into underway. As case that's our but will this

PBR. work await So from response continue the commission, we a finalizing them and with on to we'll

Tonet comes Jeremy question next JPMorgan. from Our from

wanted if Just Vantage I start to side, with could.

time on able talk RNG on if more of you more you guess, bit progressing. side a line might carbon I capture wondering And maybe as custom see to I Just well, guess, the that there. solutions the the be how bit a

to in pipeline areas. nice really all a We those continue have

year. coming projects. have project mentioned we We online have some We R&D an this

opportunities opportunities in business, custom the solutions, some the by to we as some good work conversion have supported continue -- there that We that IRA, too. has energy us given

pipeline as coming talked a about with throughout good Ford online, industrials well. we and see other we that's the project So

some we to CCS some smaller then be just more them update continuing those on-site to doing be CCS, and are with projects, advance able year. we'll next as to hope that And mentioned, throughout

you it. fund How you to some time, needed? talked about of this do rotation if helpful. think segment And as utility you about think CapEx given some of the about in potential portfolio that, Got help before. That's upside items to over

as We're upside invest -- see Yes. much certainly from we manage expect we what continue capital, utility in to we'll earnings we and how Vantage.

we greater utility do see So on the emphasis future. in capital

next from comes Our Barclays. from Campanella question Nick

as the kind of flattish, lot just of year. to of also how are growth? know we that this of I maybe a get take ambitions. peers kind center kind wanted ask, passed we of roughly think I the bill are about the you you then of kind your about roll their load been and about but it's load of forward, thinking data could kind talk ability the up And status to seeing

terms of what sales haven't see use at did the arrangements portion And Well, flat we of the passed of recess centers, -- what the closed before the data that X-year growth a we with bill any and tax, interest. plan, the legislation, our is in in House. is in point, but summer the used we're and tax seeing our and plan we demand lot this essentially Nick, forecast have

it duck session that continues sign here And its waiting have indicate House governor will the As it work. election. the you after -- the Senate. lame recall, if it's to to the already gets that to some And for commitment do finish has just be it. we taken up a he'll desk, We're the through in

And feel the we about something So that's good like operators that talking large hyperscalers need center pretty very to. the that data we're that.

sales talking The tax a and we're them. exemption also to and have use aggregators already

that we some be at extremely here, to to data customers start to do beneficial drive And And our center our into if And the will extremely have point we will plan, perspective offer. more affordability, load. will that affordability us and which beneficial will. connect to you help is so some capacity

just full on it this of there. electric case we distance then to for the quick guess me. I kind Okay, take appreciate that's you in wanted case settlement? a expecting And be that. Is it and get I here update helpful. just quickly. check that the to a shouldn't I that's And the still base

Yes. that at really capital to put a I think Staff's we constructive. we can of work our get low definitively point, probability this sheer but There's some But we'll number believe will on and settlement It January. outcome, given plans we're the up pressure just is in a we'll know of position intervenors. still near-term through. interveners, constructive

Our Morgan David next question comes Arcaro from Stanley. from

Let returns? ROE lower rate in recommendation gas there just gas perspective of maybe of terms been case me and the affordability the change on your that backdrop see, maybe on ALJ we reflecting any things, the wondering, the has case, in was in side have commission's than would thought. And from perspective on rates and

Yes.

exceptions in position constructive. was were -- the their we which line initial you staff and after the their testimony, If with testimony, right ALJ's look feel so at

really rate with feel about the gas we stand good case. So where we

We will know the couple weeks. next in of definitively

ALJ. rate before And we case, that this in mentioned ALJ. think I a new there no is the was electric

where stand, and we very know gas the was weeks X we that have well. rate case of supportive as capital all of in David, So the about staff in we'll

Yes. Got then X,XXX you. the Where That on And you megawatts that has subscribed? currently see been maybe Absolutely. from renewables. program? makes sense. the maybe momentum you that going that just voluntary have could in How

enough on year-end that seem team. the expectations. megawatts. be high I always a can't I X,XXX at They've target that but certainly, than put that update it to say exceed higher We'll always will call,

more full book we I So X,XXX that. still the so for forecasted that megawatts filled, should significant see has opportunity, -- had say. And come order on And been next X years. we to

Jefferies next comes Jefferies. from Our question Julien Dumoulin-Smith from

following Maybe quickly here. Excellent. question on Nick's super up

here, with near-term duck have that Just second you a to inflection Jerry, mean to lame said would is use tax the tax I what an just of opportunity? you expect? in back use success Or sales a go think the obviously of here. capacity ago, implications more you you availability -- longer-dated on the of how mean, successful is I sense here terms here, much do

understand progress the to parallel. in want those and conversations having timing the you're in Just

Sure.

capacity, large it's megawatts. we the than in will the very be And which and and less near dealt available also passed and as being months the that -- use that independent next which term, half that fall. the So be passes hundreds And will high in in a tax use and bill is past, encouraging as bipartisan, I by term exemption, tax of with passing would the to expect hyperscalers X,XXX of mentioned a way near exemption and the megawatts, this to somewhat in Senate is of bill over secure XX need was that well. the way with bipartisan so bipartisan some sales all that that in sales we look that, way,

in House of end So the bill half we other of the expect the year. move this before the to along

But think in a of being term. expect will our there but that dated builds thousands say, in it yes, the be the discussed, relatively sense megawatts And placed, will option of in I we that would megawatts what capacity are generation I fleet. be longer hundreds to the near then require

here here? you here. about tend chunk a rock How infrastructure it's and ask the think it's you it. think the don't to to recovery the how IRM metrics there's think pivoting but cases that meaningful of a about hand ask ask you the pressure conversation maybe for do improve and cases obviously, How of -- think and Excellent. about And serial mean here. place, know if the given mean, I overall just potential you cadence here? then get I about I of clear a you a the do mean little bit pretty wish report full rate I hard the to that in audit last do that? the

Well, think testimony. essentially I the levels. They staff it's to current help

already For I our -- will we the IRM, they the going have results, forward, plan. capital relying are on rely they think said were and support positive which audit

are a we help be we to levels. for before make what case think for think for for, would call That's a we to an even the and have helpful would out stay the I us It us to case campaigning results I customers. IRM the to that $X period and be, it, of audit have billion helpful of IRM grow would be rate able kind significant time. of would

case, gets how probably our we in significant may that grow move and I this do should the reduce as this not getting that planning And cases. think, Julien, frequency rate audit of so along understanding can with see we the lands we're a adopted and to process, of but we commission's willingness in we rate signals IRM the Yes. finalized movement forward, of see sort

between will cases, So I time like more mentioned, I level wants. take everybody some will rate a we could we year, where to before it we think these several past this put cases it think take, rate get which

that it's got to And there. sight you've indeed. of hear good some Excellent. Yes, line All right. and conversations

next Our question from comes Wolfe Michael Research. from Sullivan

refresh off guess of will on being with question rate about that think you time to Or terms kind get and at case given QX forward? this prior to your in Is picking we is to pending forward to ultimately shift going you're time? going rate cases? Or how back depending it cases on target be X the going cases going of on long-term up more line a to you moving I of the in made Just any continually hold that QX? since should last decision pending. cadence obviously,

Michael, it's David.

the that to and things we're know going going think these support rate as I how -- we'll keep see continue our we forward. update go we're need rate confident out we'll growth too. we'll to do on in cases forward. going to from cases. we in kind forward, to play decide going get of have remain for that that investment But future the going capital We that But we

Okay. maybe think And looking just segment? you over out Is that just QX? continue? into then the strength there already that you have mentioned year in expecting And Dave, the next the I that for what full shifting guide. trading, some seeing year-to-date to you're going reversal year, in is are Or to you strength

right. Yes, you're

say a to in physical and year. this is our And really I based good Like will contracted $XX guidance gas said, versus at hedge $XX portfolio off are I positions portfolio. our of start on this our We million. performance and million gas we're

in that reversal fourth anything big coming that the see So we or don't dramatically. a quarter change should

FRS said But on higher we'll we quarter have we'll are call some done few better times a we've some margins before. fourth they give call, forward, on a this than power as we've contracts that We looks. they you this at -- seen update the look had and lot again, contracts, and look we when of X-year through these

going do this reason in business we some for too. So see optimism forward,

just then And drivers did think to quickly, Great. QX. trying for think mention the upcoming last Okay. about just I someone one,

remind cost showed potentially remain So if you at ago going terms kind to reversal this would just cutting of coming. there's QX reversing Can be did is and whether any onetime up you trading of that year that or a us in strong year? no the of in least

did. We Yes.

remember, you our on were If we year, no barred holds last O&M.

have so this year And some costs into year. come those back of relative last to

costs If you with does then the of year, come tough this faced some in. been that away weather last gas say will some had storm year. has take I we And

see it appendix be up the to of working almost we're to We to that will some But the try of weather. $XX that challenging too. made You'll but in have million that. range, within it's that

can that strong expect So too. year we quarter. that seeing good ways be and fourth to will the it and in But find through again, play to that, we're a this XXXX year support year continue a

comes question Fremont next from from Our Paul Ladenburg.

least the years? would business at put at targeted the credits that, you I contribution your above course expect look tax of range nonregulated are Great. your expected that year, the over XX, next When that next several the would

that a same that of tax will we our for RNG are thing a our XXZs, 'XX, will are 'XX they come through which favorable into we'll to our But business, quarter, do the tax when back go say we over update answer times. gave few call fourth probably more updates give growth I'll all our credit, as were better I've we our I when Yes. give fourth that These X and production on given and that in give wasn't hitting earnings couple and that over those but to years, EPS on years, those there, will -- quarter well, still be the going us favorable knew growth flexibility on some Paul. cutting confidence we hitting it's to go few and 'XX this. the into we to credit X

because temporary And targets, than the the the Z allow of mean of targeted to be XX nature higher of be of in I those I sort that terms you would willing mean, to range contributions? percentage

Yes.

on not at try give to our will all We of year update we it when piecemeal full our to guidance businesses. give call. fourth on the all guidance all quarter give that trying year We're the and through across once

So we'll update call. that quarter the fourth fully on

Great. last question is, you did of it the And type range. number put above your in if you my of way sort guess I you would the fourth guidance did same quarter,

year? So should we your you're now least assume end higher the for we at at at this least of guidance least right should towards that tracking range

guidance within range. come expect We in our to

corporate, will some us XXXX little timing support but taxes will how in bit are again, those to We ranges bring reverse well. effect electric a we looking And in kind that of also of -- issues, as within timing can. issues not there's

question comes Bill from from Appicelli Our next UBS.

Just Can impact couple too. the here, year-end timing questions items? numbers quantify on the a the of you tax of

million. they and Yes. together, There's a And are about corporate. $XX little bit at electric

there's that track? Okay. that still $XX about million then an in step-up And implying million, $XX year-to-date, QX. on Vantage, looks on Is it like

still that's Yes, on track. Yes,

Okay.

the and forth, projects service there's going development no those issues So so into there? of

And The in within No. the we're Jerry their one there's quarter that will the the City of credits and central tax and that and X for there's the big talking one large the doing in the energy is quarter. Ford both Ford is systems plant come where project into service at about investment call, going the Blue service, associated fourth in drive was Tennessee that that already the in -- will some income facility.

increase there on provide Okay. I you assuming sensitivity relatively kind load, but starts can a we that, it's the on upside of And you're through mean, perspective? Is for potential we legislation economic if then large for an flat, can earnings to materialize. in for if think from development is there think sensitivity about comes potential about or the any large the additional C&I

Well, margin I we'll what the support to do affordability initiatives. we'll our think use incremental is

putting as will land we load I this bill without an our capital plans be customers. pressure to think there opportunity on accelerate our

margin. we I So think how that's will the use incremental

will here position because size of the contract very that's data with Michigan, a yet but some it they're in in looking discussions locate in not to it's to that early centers the probably potential our We're It against. us how for would create and deployed. We've be be to backlog business. affordability it an headroom distribution play, that as a in would invest got turn, massive deployed in

accelerate $X attachment billion the without but could next years, acceleration off. pressure looking that. X are of We And invest to type margin we easily that that over creating could bill enable

of additional existing do adequate? structure in large Or would reviewed be place context you to I have that need lastly, you think loads? then And tariff mean, that is an Okay.

So quite for work the existing will well. we existing capacity, think we've got tariff that an

opportunity, wouldn't create also enough would long have capacity enough brought a customers. ensuring in that tariff that additions tailored design would existing term we we asset and stranded that situation For that margin for come from at to look this the of long-dated type for could a any we

Our next comes Karp question from Sophie KeyBanc. from

a think with customer of else those right, sort that's moderate bills. or and accomplish And see you on if will, my right, answered. have I think Or the might costs if potential wanted keep the of ambitiousness case potential securitization this in structure? that need that of to it's increases? increases, that's storm other come that customer audit any the go that of incorporating need I to do just the for was your wondering I we offsetting to was And one goals, rate can ahead your you storm of existing that of rate the had within you of kind plan. growth right, A Maybe slow. on mechanisms to you ask future been the report, when capital the customer needed capital impact read potential the and lot the you concerns sort consultants results bill you going from [indiscernible] something questions into plan the

and say XX% by deep capital the into the So affordability capital the XX%. ambitious that audit anticipates our and we get the I how that by plan would plan achieve to duration this frequency our X-year really plans of didn't reducing need our Obviously, work audit the of will increase overall more the you -- this. a was into if It would put distribution face enough, of value, pressure all our and financials condition recommendations. the audit business. interestingly on capital through And physical to

But XX bills, over presentation, so pointed we've you'll that as see affordability invested And our our we out, goals. -- in -- $X even managed over regard. our like costs last managed we're and we're we've and downward performing though had in Page achieving the assets of also portfolio, Joi we've on X feel pressure confident billion very renewable that in on years, our and fuel extraordinary are the putting how

performance we So on that affordability. we remain we confident continue extraordinary to deliver to continue that can

Okay.

in now? mechanisms your So structural for need no any right new new view

any point anticipate We time. in this don't at

of loss ] the right not for sure of that's that that maybe opportunities growth kind And you in [ kind large there of ask that's the of Okay. like to then if are business. customers. if But are seeing fit any take in opportunities if right? the I on I don't know advantage strategic business -- can I'm Vantage, you potential there?

I air customers. call, having like central that. mean heating, you business we conversations in generation if center plant and assets think where And We custom what I as are energy that opportunities -- we're are well the potential other, provide for and solutions business data those there assets, services water having energy line those cooling with would the line, conversations. as and about cogeneration

Morningstar. question last will from from Miller come Travis Our

to wrap a up Just things. of couple

something going metrics to your perhaps this pathway you pathway on over after your last the view closes? the as the is do some what this with response, even something see the Is have years? Or file this? maybe is that audit, you What's you up On meet long, come there? for to that

process. how incorporate plans. in our on to looking to are at have really There file the formal and Yes. continuing is conversations mid-November, with responses the our the no staff we we We'll findings and end into the findings

closes in docket proceedings. of then discussions think anything I regulatory I would everyone results future providing And that with a staff, be incorporated their essentially anticipate, either the basis, comments. with go-forward will on

And multiple that that mean, for grid gets with really we're the audit plan, to times meeting staff as Joi digest the which now works well distribution which plan, And in right secure of I them a updated. us staff sort week the the for it vehicle make formulate kind and is audit to more mentioned, with our our be of grid independent terms good building will start of supported by really, secure predictability. and distribution into a investments process really for the the to future,

opportunities achieve plan the we're So also goals fine-tuning excited team work the our of to and some that about that the well and is pointed level putting and into audit address staff if effort and out. the the of engagement the

really collaborative process. Yes,

High-quality products. Yes.

kind audit idea you're outcome the that in bringing tying performance-based talking the And could of those that say of be you something on together? rates, of whole docket, about metrics kind that of that an is just would

in really in case. was The as And incorporated that there symmetry. prespecification rate Joi, there is striving a already heard gets but it that's and case, more and next metrics Well, to in the deals rates we're amount be in docket could this about incorporated rate little be potential is there that good there that performance-based in also not for separate not reasonable. feel some But the we with you've no in scope. performance-based there's from rates, this address a docket will that

the direction. heart be delivering to does investment. be So our like It supported customers, it's go we to moving and the for of feels by should I going in really it it's right what think

investments the will highly So that PVR feel be we like supported by we're making.

sitting we're with comfortable direction the it's So in.

issues seen you And Great. growth quick, chain got? then the Okay. real in renewable supply that energy any

nailed panels, We're in the pretty solar next we've down. and good for X of lined got that terms years up

don't issues. we any see So

we is being those speak. Our and battery as are underway, fabricated plant systems project well

like chain a supply feel there we So we've runway got from perspective. a good

call further for We remarks. closing turn back questions. Jerry Norcia over would to the have like I no to

for for healthy everyone, by a close seeing years. feeling great forward I'll in have today. as morning. saying you, our weeks, safe. a EEI future about really thank XXXX us as at Well, well Stay to and good you position few and just look joining we're We

conference for Thank today's participation. you concludes your This call.

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