FE - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the FirstEnergy Corp.

Second Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Irene Prezelj, Vice President, Investor Relations for FirstEnergy Corp. Ms. you, Thank Prezelj.

begin. You may

Irene Prezelj

could current results Information our of Factors SEC by the Welcome we to materially Earnings earnings, indicated and earnings Sherry. based second to strategies, risks website subject from and our in filings. make section various Today, that on are will statements revenues, prospects. call. and uncertainties. statements forward-looking the are and to can Investors differ Thanks, These those quarter expectations statements performance, link our such be cause actual found on under regarding

financial Chief We today’s Reconciliations FirstEnergy will also presentation which discuss in certain the the can who a participate Chuck on Steve Chief Q&A with President GAAP non-GAAP measures Officer; session. and President to non-GAAP include Strah, the be supports along room executives found measures. Officer; Vice financial today’s in and Participants Jones, and other website in Financial and Executive are available Relations Investor between several discussion. Senior call

Chuck. the Now, I’ll over call turn to

Charles Jones

Thanks, welcome, everyone. led operational company our quarter and great and weather second across to performance results. strong Hot Irene,

consistently of Our FirstEnergy community and last three-and-a-half proud the the team’s to investment have earnings remain the very record you guidance exceeded I estimates exceeding over the we provided meeting of we to or our provided years.

customer We’re entering the regulated growth focused tremendous our second year strategy. on the half of momentum with

upper near we of today. at of year, $X.XX Looking tracking and affirm per are XXXX the $X.XX share to are that end the operating the balance guidance to of our currently pleased earnings range range we

to of earnings operating an $X.XX introducing range are we quarter, third per share. the $X.XX For guidance

company. and obligations settlement of the creditors a move I long-term X% milestone as committee. a to final our to FENOC development with includes regulated all defines XXXX. FES the fully forward settlement and the the case FES updates comprehensive This operating April on FirstEnergy’s respect significant and We’re bankruptcy amended we the and the as FES and to through include quantifies principle. X% will of to impact also growth touch and unsecured This as agreement earnings projection of agreement affirming

find Presentation the published items website. with is in along on on Highlights of Quarterly the terms more can appendix that You our other details these non-economic

we credit nine shared services on of First, million. the above months will of a to provide for FES XXXX cost behalf $XXX.X

extend In XX, the June the to to right shared FES addition, XXXX. purchase have we services of for agreed this year end from to

cost And by the cash we Second, FES we million. a have expected offered if value voluntary $XX of million $XX increased employee benefit have with the related third, FES. certain retirement payment by an to cover agreed program enhanced including

short by timing, four FES represents the an expect outstanding September. approval settlement of involved. effort file end by only the the of tremendous with and bankruptcy filing for the after the restructuring terms is a and else we everyone bankruptcy Reaching working agreement group In to in court accomplishment August months a it

markets. fulfilling In addition, to mid-XXXX, made effort competitive to this we the you announced are commitment timing squarely we by completing in when exit our we

look of of step strategies. growth regulated entering bankruptcy our our the the resolution we milestone this on to for implementation the successful FirstEnergy, With focus in continued with forward process XXXX

these In our and results count wasn’t the our Let’s Residential it an positive other but in switch are the customer quarter hopeful both in discuss service weather economy and weather in adjusted second usage In quarter growth and second and saw gears segment, results territory. signal improving was driver we our developments. our business, we dominant only the distribution development.

their consecutive X% usage class. electric growth growing marking industrial We from also continue eight by the customer in to our see of with demand quarter that increasing customers,

to as resiliency developed learned customers we and JCP&L service New overhead customer targeting those and by our assess a nearly restorations month. for infrastructure plan with are X,XXX that severe particularly help regulatory and of lessons underground systems year, Reliability is New our related reliability analysis severe reducing system improve duration In team investment difficult events. distribution BTU detailed to coastal weather Nor'Easters designed to power JCP&L that of These Recently plan and our frequency utility the from as Plus was activity. reality This enhancements analysis, four include well investments filed following distribution an incremental of to the JCP&L’s that weather. a the conducted customers, Jersey and million efforts infrastructure. JCP&L lines. Jersey, last From weather outages Turning for our $XXX severe

as minimize approval nearly by to well case storms. platform in will we to investments In $XXX BTU is pending later additional to continued year. the impact customer made work reduce requested and fan the on a federal to this system equipment reform outages the of modernization distribution Maryland our recovery the address safe reliable first the service. in XX at tree of month, We distribution plan our and rig million Maryland, Ohio, impact Edison rates for New of ensure file The for of as In base application request tax Potomac PUCO. end the years.

modernize strengthen year power conditions, distribution and weather system three Ohio our faster, to As our system which we the approval have help of adverse real-time with performance formula our against seeks system and May, discussed, conditions. establishing new approved by forward-looking rates portions plan will agreement enhance In restore transmission of a in implementation utilities the FERC date MAIT, X. allowing remote for settlement monitoring for business, July rate redesign an our grid of

customer-focused performance aging These XXXX, or improvements and projects transmission operational Since flexibility, and transmission completed grid. the grid have the changing XXX adding of is we Our operators have can in per quickly smarter, adjust significant between so more system infrastructure. program transmission on focused conditions a in year. XXX infrastructure, driving upgrading the building secure our been to Energizing Future replacing

dollars outages as zone, in years $X.X a place to XXXX have that XX% In XXXX on more for equipment ATSI Toledo Edison transmission projects since service and identifying as Ohio track utilities than year Penn than to through Power rebuilt program, four year upgrades, or rigorous reduction remain replaced a in which well we billion to our in miles growing we’ve across can and Ohio, reduce and miles XXXX. Cleveland have launched reliability enhance resulted in efforts in our this this Pennsylvania. process Illuminating, services of our on from our transmission invest $X.X Edison, Electric these more in continue related transmission transmission outages We We have billion per dollars customers customers. territory Western

we continue eastward, achieve similar Pennsylvania. As results Met-Ed the fully which expect service program our region, Penelec to our in in expanding and areas MAIT we encompasses

approximately these IT, our strategies, initiative. this offered by we June, legal. in to XXX our offers in-groups retiring XXX finance, headway such by future, The FE were and Shared month, regulated align In In year. addition and our which as to the the efforts of will nearly to employees, predominately Services in are with our we individuals. cost voluntary structure Tomorrow accepted in packages for communications, strong our through growth making retirement departing begin the early most and end employees progress organization, These severance workforce

work retire L. we careers. to that retire XXXX retirement offers. July forward. company many their contributions I’d like with departures These Jim, align Vespoli corporate other Leila members team, accepting employees our April growth for later they’ve identify will to extended will going our into organization made and their to company our over initiative on continue efficient, in of the & systems optimal who package to our both our personally all are and valuable and date. costs eligible Jim Jim our executive the FE and the Tomorrow retiring the support no we X, addition, from Leila roll regulated In Pearson properly thank than Leila, where

to to yet, we for have initiative million nearly which share any FE you related While financial guidance. to systems that we related the with will common with depreciation the shared $XX in Tomorrow FES, disclosed projections our expect previously offset we don’t

and to laid position details these We first the more plan provide call. the great activities executing year, on a are to already expect during in But half we of third our to be out. quarter we’ve a committed

Steve I’ll of developments. for other a over to review financial the turn quarter and it Now

Steven Strah

Chuck, we strong good night very second everyone. morning, reported Thanks, Last quarter and results.

were Our GAAP earnings per share. and of earnings succeeded were This $X.XX our the $X.XX end top operating our per guidance. share quarter second

you projections on as allows a conversion with to operating provide us comparative fully-diluted excludes preferred As we to equity the reminder, of the light basis timing. present This of to and January performance, results our fully the show of of and in of all shares all converted continue issuance. a impact a our view

begin did not does that I’ll shares it to July. these presentation, shareholders impact in our convert preferred note While

posted the reconciliations second our You detailed our to financial information other which about in quarter report consolidated and is website. on the can find results community,

Before operating to we items. drivers, additional like special into move out point a I’d earnings couple

with of results Energy our costs GAAP First Company. redemption long-term and debt Generating at Supply the Allegheny include Allegheny associated

second, the used to debt. closed results the a the benefit regulatory of proceeds hydroelectric sale per two earnings the quarter, sale from And $X.XX we during to that Bath this recall plants GAAP of include redeem which earlier actions. related You’ll the and plant, gas-fired share

benefited result refund our previously PJM of of those to costs a second-quarter GAAP our The in This certain Ohio utilities FERC reallocated transmission that settlement a incurred earnings first across approved XX%. will by utilities. actions, projects which in

as the action. earnings. secure I’ll carrying original because we as benefit of and the but reserved In benefit $X.XX of note from appears credits recorded was balance were not per costs second always Supreme in reversed item to were in of Distribution Court’s -- per business that in share Ohio part our decision the XXXX. $X.XX renewable charges to on our recognized a our special operating expense part The the earnings operating a a regarding was energy incurred included wake reserve Ohio, share a of reversal the not This that guidance. also accrued

mild down were the customers above X.X%. X% last but and residential increased XXXX XX% days were Sales while up XXXX degree above XX% second resulted business. days higher per and resulting by that and in were share in a distribution temperatures of rate on XXXX. moving load, the to Earnings other and $X.XX weather-related increased increase usage, Cool normal with Distribution to were X.X% a compared of X% XX% to higher followed year’s sales June weather-adjusted previous X.X% quarter residential higher revenues from deliveries earnings April stronger Heating issued Now distribution increased industrial deliveries second in X.X%. On operating degree second cooling commercial basis while orders a in in total than were benefited drivers commercial hot of quarter. true-up deferrals in sales from key by May normal. weather quarter our associated than

in usage. As growth Chuck and count said, we weather-adjusted saw average residential both customer

are about too cautious short-term we’re much the results. encouraged We reading nonetheless by into these but improvements

where Another bright sector X%. the is deliveries spot industrial increased

JCP&L. by was offset higher quarter. higher results margin one to Future eight in growth of higher segment, slightly our a Pleasants quarter X.X%. Transmission operating Energizing continued the recorded at investment growth interest rate and this now business year revenues sales due And consecutive Station weather This higher have We with and our wholesale including at In to quarters reflects rate our increased ATSI driven base and benefit our by prices commodity Corporate subsidiaries Power from a second earnings program of the MAIT hot at expense.

this I’d contribution reform expect customers. also insignificant Pleasants stand year. savings update the to on to onto brief from continue where passing regard the share tax We to earnings like we to be with for

process. process. customer As as In plan Ohio, you utilities, liability regulatory April to continue the X work we on on In our a various X, New delivered In as savings January through X. we tax related began MAIT, July deferring in business at second Pennsylvania we our the And each We’ll and a work the we the amount lowered for to of X.X% in Virginia into reform Maryland, writers connection is delivered upcoming jurisdiction reform. Ohio filed TrAIL, you before rig the In progress. know, and savings to which FERC. next determine will and our reduction with West both updated formula be assets, automatically the to rates to rate proposed pending keep ATSI, Allegheny in rates need during address regulatory case net on with in Jersey the Transmission stated filing. tax customer regarding steps quarter normal on and in we transmission we transmission to regulators full we balance

the pleased year. So performance clearly, the and performance the our we’re half very of with quarter first for during operating financial

community growth investment customers and commitments We’re shareholders, on implementation excellent to company the for oriented making predictable of positioning customer strategies. and stable, service to benefit our regulated employees. we’re and progress And our the our our

I share. to our said a related now when make let’s My by helped So earnings special I your And FERC item do correction. take GAAP for I misspoke you apologies. settlement Thank to want the The XX%. your $X.XX per questions. time.

Operator

Thank you.

question-and-answer We a question with will now first session. conducting is Please from Gordon proceed. Our ISI. Evercore [Operator be Instructions] Greg

Greg Gordon

Congratulations settlement. morning. Good Thanks. on on quarter the and the

Charles Jones

Greg. Thanks,

Greg Gordon

short You long-term guidance the the the the reiterated earnings and notwithstanding in remediation creditors increase at and to your debtors FES. agreed-upon

core You it already there’s is potential business you’ve it’s of that know better your it incremental the that that just that articulated? aspects out simply range that cash eat flow? bounded is offsetting through performance some in Or by

Charles Jones

had already I articulated, would the it’s by Greg. we that just simply say bounded range

Greg Gordon

beaten path, I think question My the important. Thanks. but Okay. is pretty off bit a second

earnings will cleaned of consideration you for dividend a Rubicon of several year. was cut consideration looking resuming unchanged seem at to across some to At in the It’s the their to years dividend from on up here point growth I’m payout would dividend ago. FES indicate the of bring share going some to $X.XX then. this [ph] aspirations growth. from Board $X.XX The be was ratio sort what policy? later there been opportunity type for separating a The You’re a change on share since your

Charles Jones

to I as we’re conversations there. what be expected I think future. this done, have matches fully valued a going too as policy companies think separation regulated that going to regulated company, to clearly be I to have I having in do fully if it’s the a will to go Board. dividend get very we’re other But be But early near the with think we

Greg Gordon

Okay.

but away, some the right at future? in point not So near

Charles Jones

fully milestone, FES it that than now. going company And in have fully this us get more able a discussions us, gives me puts have So and ability were Board with quantify the until the that regulated we this huge to looks which now like was the – would up behind to a what to position forward. meaningful we

Greg Gordon

excited stuff. cart Didn’t little but put getting Thank the a just horse, on you, mean this resolving care. Chuck. to before Take you the all

Charles Jones

too. excited We’re

Operator

Our next Stephen question is Morgan with Stanley. Please proceed. from Byrd

Stephen Byrd

Hi. Good morning.

Charles Jones

Hey, Stephen.

Stephen Byrd

the initiative your Again, but you to would $XX just you touch this the falls wanted cart category the I expect very before update. on maybe FE offset you horse update, that Tomorrow too depreciation million on the in for remarks positive mentioned in common systems.

the the As that $XX that possibilities cuts, series a exceed around initiatives of scope you look of significantly we at continued cost should ballpark million? level about there could general thinking that be is is or

Charles Jones

in early of with planning obviously ago I’d done say. that. what facilitate had exit a this started that groundwork that this We tomorrow. program feed year to for Here’s a lot over advance. We voluntary We’ve implemented retirement

taking to the and Internally, people going the appropriate forward. putting look progress. but That’s It’s going re-designing business we’ll everything what going what not what goes and the a means account result entire savings are. be financial through this how utility communicate going tell there of At forward. that total through and involved impacts corporate working work we’re need We’re it’s now. to a into emotions structure ready you lots in amount that right what are time, and to to structure into feelings we else to our we’re we’re regulated corporate fit in

Stephen Byrd

would financing opportunity do of wanted extent a the check about approach approval? and sure how just Totally incremental understand so out needs in level understood. making to again I financing in you’ve your And get some level to incremental just I you that terms then CapEx at high you just plan, laid thinking CapEx set

Steven Strah

Strah. Steve, this is Steve

the So cash from a as would financing flow generated plan well perspective, as at we internally use issued debt utility.

we needs equity planning have incremental through through So XXXX. no period our

Stephen Byrd

all you. I That’s Great. Thank had.

Operator

Our Turnure next with Chris question is JPMorgan. Please proceed. from

Chris Turnure

the the today on give the stand tax are. appendix reform provided steps tax where on bit hoping especially could now right what of and them details Ohio but process process deferring next little currently if and you you you’re in more us the I a benefits I you the on writers appreciate in was the that outside the color

Steven Strah

Thanks is This the Steve. for question.

We to continue with Ohio. staff in and regulators work

impact deferring we’ve number beyond that currently writers the the tax are of already savings full We the there of dollars trued-up.

where also them. So other we’re have working them work example, process through them in as the with an as just with working through we’re And utilities of lead as with Virginia, the regulators and asked process. are again, the filed following we once West we’ll

Chris Turnure

this expected in to process of at point? the is Ohio it going kind you as go And

Steven Strah

that I the roughly dialogue. is level It’s think writer clear $XX a we million expectation very we’re two-way that to out. returned within the DCR for The process writers. worked DMR we’ve be remainder had. It’s the and through

Chris Turnure

I distribution that you any were guys distribution nature could nonrecurring a And then well. items I the in benefit for that EPS versus normal for then or were Great. was basis EPS. there unusual decision and separately think clear as quarter, you the Ohio other growth did an But and on weather business $X.XX this EPS hoping impact quantify adjusted also And the adjusted from include and normalized a you business. were load

Steven Strah

to other impact last adjustments earnings. the no was about to quarterly The onetime year. were $X.XX There weather compared

Chris Turnure

as And you did a on versus well? have that guys normal basis

Steven Strah

on had above The basis. look it a is adjusted year-to-date you total X% normal experience weather when we roughly that at

Chris Turnure

weather don’t Okay. But load have normalized normal? versus specifically, the growth of for we impact EPS versus quarter or the normal

James Pearson

were is $X.XX $X.XX weather quarter. This the with associated Chris. during We Jim. to higher Yeah, about

Steven Strah

This is Steve again.

April, cool $X.XX that number. but remarks, As got us June my very we May had warm I we that and a in a to had said open

Chris Turnure

guys. Great. Thanks,

Operator

America. Bank Please from Our next is Claire Huang proceed. question of with

Unidentified Analyst

Julien I’m morning. in here. for good slipping Hey,

James Pearson

morning. Good

Unidentified Analyst

great on Congratulations I just had quick update. questions, the morning. two necessarily on not FES here. good Hey,

The is ROEs of in first in terms Ohio.

upwards. trending they’re So

and wanted confirm details any Just to thoughts the seat test there. about your

James Pearson

time, have of under not the seat in triggered test. as point we this even So, first threshold the

I the So, ROEs for all think with moment. is regard Ohio in to good

Unidentified Analyst

this change of if going just is a now away far you thoughts I in seat anything with Okay. want forward-looking, is Got is it. on commission a or can know this election, to forward, say three little the more test your topic. the get potentially a much there’s the

James Pearson

probably spots the don’t who premature is idea is about commissioner there That think to some year are I be and think I governor have there’s, but next coming point. too know that. no we at are way forward-looking that going It’s due this to that even

Steven Strah

With regard not to the ignore. just to something is the seat that test, the seat allowed commission statutory, test is so is

Unidentified Analyst

That’s fair.

then just assets. your on out just, that I are didn’t support business, your FES you nuclear to commentary but second thoughts for since And on question you thoughts any Okay. noticed have totally not there. assets curious of ongoing is that if you those guys related the now, nuclear my I any have know really it’s and

James Pearson

of for. a that resiliency, our In those So, think thing going you I customers secure closing stability perspective, security, thing countries out be now that nuclear any good generation be the run, look grid good to future posed say most I’m questions that a plants an for in long to six our severe the assets flaws, perspective. is thoughts in having I mix the feel it’s for a million policies run around Because to I both diverse to my from continue to customers and that not a for provides future the going country. FES. to would know economic are be that have physical long from of those not the market the paid good perfectly

eventually be we’re still for in the something I’m that do seriously this and process, they that matters to of advocate and looking to continue very issue voice extent is to going I So, step at it. forward a to it. stabilize that believe intend, the Department do loud they my Energy will this hopeful

Unidentified Analyst

you. appreciate I that. Thank

Operator

Weisel from is with proceed. Howard Andrew Our Scotia Please next Weil. question

Andrew Weisel

words factor first equities meant Thanks. cash to inclement congratulations and a your up through I successful, be on XXXX. if equity transmission New want the you follow that on about be to projects. everyone were CapEx? for equity comment it quickly and no would Was indicate Good needed if flow up? you you approvals in raise other Jersey limiting Ohio internal incremental morning Would the So, small came the Jim some would Leila. the IIP, and spend to if to those or DPM, you potentially that would opportunities not leverage

Steven Strah

Steve again. This is

Our fund would our programs, forecast, those flow able in be internally cash regulated issued debt the at we generated difference and without, with generate or to capital enough companies.

Andrew Weisel

Great. clarifying. the Okay. Thanks for

little into part to you accelerate Next PXX year one, the bit so far given the to Is help for from from you weather, and of do of full any the guidance raise maybe XXXX. strong opportunity why didn’t year? from start see O&M that

James Pearson

full reversing we year raise No, seen. didn’t in December we’re halfway through because warm guidance cold August would the result for a and a everything and that the year we’ve

credit I to I’ve either. but also I’m on going I’m it not to going good weather think take before So, not plan said for

So, being we this ruling track basically our quarter. plan it and you laid the only weather Court with know, in for XXXX the are we Supreme on out difference with the as

Andrew Weisel

is FES the anything the that think of at and clarify, basically to the more or should they’d made on on? as for be with to just done this updates progress restricting we be lastly, point settlements, given And can we working that Understood. group looking there working

James Pearson

but it the place can get to but of I’m We definitive think to not and restructuring use work planning basically you courts to as bankruptcy. get advise working I the it. say still the group done. But done, me on not in have approve to would anything agreements

Andrew Weisel

Great. Thank you.

Operator

with is Fishman Please Research. Our next proceed. from Charles Morningstar question

Charles Fishman

three notwithstanding A plants, resiliency years first your ago, of the know nuclear Chuck. you reliability, appeal the when grid importance the morning, started you issues. couple Good about and

material you investment would arguments made in of the that facilities the system. One the require those was closure transmission of

your through XXXX. the transmission now end You of guidance for XXXX moved upper

year, higher the you unlocking could this just is wait anything dates set that, you or has FES go going I there get that guess retirement have the to until future including that was in guidance started the to are question. slides my closer we does the think I or

Charles Jones

I'll Generally go heavily existing off-site The though. system that’s around need transmission when plants about are multiple for to not I’ve plants talked of the nuclear as that imposed the very networked a power reactor result plants power are on of sources generically first. costs the close. nuclear the coolant. ensure

other but we costs our all plants the those a we when the identifies themselves go power markets and But plants the down inside So nuclear footprint. did about our the are up of spoken as have generate year costs. we don’t that I’ve And well transmission throughout as closed. plan as incur have plan. lot closed occurred within and the Lake include projects our included plants RTEP that they for costs each PJM

So talked any change the year. next $X.X the from I wouldn’t anticipate years significant this after about billion four that we over

Charles Fishman

had. you. I all Thank That’s Okay.

Operator

proceed. Steve Please from Wolfe with Research. is question next Fleishman Our

Steve Fleishman

Good Yeah. morning.

they you shared to agreement have to extended? it’s it’s about so – So much at cost just right pretty done a it’s the extend, services an worry issue for where FE that if – your don’t have FES not with you something that is

Charles Jones

is That correct.

may will services Any focus to they starting that a FES Our shared will XXXX. the after costs. end they this that for at being we financial that fully-regulated pay so year ties company can want appropriate in

Steve Fleishman

returns returns been kind kind of subsidiary but what what might this of and Great. answer has that I Potomac have Okay. Edison, earning? the an missed in – just And then

Leila Vespoli

tax earning that because So take period reason with subsidiary, and Leila, X.X% time. also is that hoping a that the been the to substantial are for so the obviously a been place, seeking care is returns this which in put we’ve are has rate we associated in we underearning to case range of issue proper of

Steve Fleishman

Great. Thank Okay. you.

Operator

from next [Operator Research. Mehta Instructions] Citi question Our Please with proceed. Praful is

Praful Mehta

much. Hi, Thanks guys. so

Chuck Jones

Hi.

Praful Mehta

on the on well settlement. FES further So congrats movement

happens portfolio you as understand purely we just thinking need size? the thinking perspective look regulated feel Is have direction operations? decrease Do up should Just strategic that from be like right there as I any to strategic your portfolio post-FES, or want As the to you increase that your a story. about a movement at perspective today, story, how and from guess your you’re clean you anything about? I

Chuck Jones

do that we’ve us starting We’ve well XXXX that so six we’re had They’re been asking jurisdictions and transcos next would states, to from for think over regulatory there’s our in looking look I imply take to would and strategic we company for we’re especially like XX comment complex distribution committing growth the seriously I five X% say always I value and take likely have five today that From plays across would going would customers then we a more now any you future. X% utilities, but period the three million [ph] or and and had we’re just strategic right nothing right four-year this where our what’s for into just now what very at regulatory complex jurisdictions. shareholders how a at beyond in just direction X to growth that, and inquiries focused if the deliver very we’re we ours industry shareholders are on. said.

Praful Mehta

be good from we but should for any Are think look your the anything these enough. right color should as about evaluate else at that opportunities thinking as right we obviously Fair That’s way, you premium, returns you opportunities? of do the that shareholders? how about getting kind criteria there come apart the

Chuck Jones

I have no Praful. comment,

Praful Mehta

on economic Fair least right. Pleasants. one of enough. guess tried. the I question more specific lease I All at

that? January little restructured color more lease you to later this color wanted on part economic for no this a beginning bit Can just XXXX. more of just provide by get a As a settlement, Pleasants bit than FES little or

Chuck Jones

in Pleasants that creditors. the the commodity the what fulfills all markets It financial I’ve financial for any earlier said move will to gone lease starting FES XXXX exposure is that and of to

Praful Mehta

Thanks, enough. Fair guys. you. Got

Operator

Sachs. question Lapides proceed. is next with Please Our from Goldman Michael

Michael Lapides

a Hey, think for of – you that the specific about normalized multiyear coming long-run maybe this $X.X mind geographies, guys. cycle? a transmission but just one range. in transmission $X.X there you don’t taking of and if where Thanks the trying hedged. kind an been on where as billion, Meaning How uptick of Chuck, downtick are billion bit curious. in just view investment years Is question. do curious talked are kind rate? touch Or a – get view the my others? the you Do kind over about run thinking You in little geographies. to on coming you your you of the

Chuck Jones

and two be $X.X For four it’s years. year was to going It the billion. this $X.X years, next billion billion $X.X the next for

the have system. moving it ATSI around. our That’s at been of already can That’s that transmission. having a XX% related benefit almost about making. move it a are and system. of miles direct outages our talked the I’ve result investments on we’ve with XX,XXX five-state of clear benefits We reduction around the territory We we equipment

part our forward-looking down We’re look transmission those. [ph] move road the the if billion. for be rates at more instated currently years, we’ll $X.X to in still But now [ph] the going into moving makes to to think the and and next four now, I sense that Allegheny make for of is a system I’m transco see sure for it it’s

the this in line projects focusing our a XXX there’s given an that execution other as there cognizant transmission projects talked today peers out lot We’re on unlimited year area risks. not have I’ve be to country are XXX a of too. before, to And workforce and doing substation of for our and we

Michael Lapides

follow-up. quick one And it. Got

whatever, If and opportunities investment a service that about five the on long-term the improve would impacts territories to state years next that potentially to that distribution, the there in increase state, is or various be and meaning your wishlist, in help mechanisms regulatory think your there’s you lag where company? reduce B, your you think upgrade A, may what to regulatory three

Chuck Jones

about have specific a of don’t I we of record type have than anything up different making. mechanisms good our other traditional Well come to talk rate-based rate with to clearly track but regulators working

formulas those whether in are Pennsylvania. trackers or So or writers

do as New helpful DCR business to We Ohio. that addition as there. We’ve a in have in we IIP Jersey the had how

would customers. for are can those to And all so understand are we we’re to for you that obviously reduce And the [indiscernible] so is you. That making investors that goals we anything constructive what if that of is like investments achieve. returns flag [ph] when

Michael Lapides

Thank it. Chuck. Got appreciated. Much you,

Operator

[Operator have Instructions] another question, not do next -- is sorry. from I’m question Our we

Charles Jones

all. you, Okay. Well, thank

As fully you quarter. company. I to then to be a I Take and our support talking settlement We care. you and again seeing said for you all to is this big thank a now and the forward quarter third evolution call third at in look in regulated the between earlier, milestone in

Operator

This conference. today’s you. concludes Thank

lines for You time at your may participation. thank your disconnect this and you

FirstEnergy (FE) 1 Aug 182018 Q2 Earnings call transcript