NI - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Q3, 2018 NiSource Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, today's conference is being recorded. I would now like to turn the call over to Mr. of President Vice Hulen, Investor Relations. Randy begin. please Sir,

Randy Hulen

to Thanks, quarter third Welcome Mark, good morning, and the XXXX NiSource everyone. investor call.

plans. Joining Financial of Joe Donald review growth as me Hamrock, Chief as of for our operations, provide performance Executive are financing this the well Officer; NiSource's third drivers financial Brown, Officer. call today's Chief purpose The is to an XXXX, on morning quarter and and update

Following we'll questions. the up call your our to presentation, open

and in actual Joe presentation Information Donald, Risk a turning Factors looking. the the to in could Before statements risks to SEC from materially this sections the of over results some reminder; during our concerning those These to the will and just of uncertainties statements. subject floor risks quick periodic forward that expressed included and MD&A cause statements such made are filings. and differ is uncertainties be

made to the relate on of recording some addition, statements In this measures. non-GAAP

comparable a Joe. our that full on the available the additional like of including the information, For please turn I'd these nisource.com. call now With segment the at supplemental to slides measure way, to reconciliation GAAP most financial to additional refer measures, out of and information directly over all and schedules

Joseph J. Hamrock

Thanks, thank Randy. Good you morning, everyone, us. and for joining

communities. service keenly helping Lawrence, we you In has regain event all communities Columbia restoration Gas, Lawrence, area lies tragic and experienced continue customers we Lawrence, impacted work Massachusetts, ahead humbling of serve. since Greater restoring our our the of our Greater the proportions. much to us last a the This and of us and most know As our of finish period NiSource that experience stay and the and an in on realized in investor our and the to call customers at focused customers NiSource we trust been unprecedented for Greater event of in

as quickly and foundation of the to possible. to the care customers restoring business. as We there our service are customers our Safety committed very safely is and of

not are that to enhance guard damage incidents emphasis system risks designs, are controls enhanced seven-state help incident protocols systems this on can of to from complete, reviews pressure that steps across overpressure our lead low risk procedures the with taking the we and measures and management prevention safety. enhanced include Those protocols. project Although, footprint and

such overpressure In long-term electric Across measures an as automatically safety enhance the team our NiSource, to customers to designs in communities system working is and for would of down otherwise addition, significant an shut the includes Indiana protect situation. customer advancing our continue plan that strategy. and or infected steps our our property responsive event teams taking business in

some now fourth turn to our key and accomplishments which of slide Let's quarter quarter. third early X, the in outlines

event infrastructure the utility net which $X.XX XXXX, keeps in $X.X regulated impact operating remain plan operating excludes $X.XX per XXXX. for $X.X to net non-GAAP the of us to invest we $X.XX share Greater XXXX. $X.XX earnings, in third the share And to Our billion in to were which in Lawrence our a of achieving quarter earnings on on a billion guidance per plan our versus

growth also XXXX. to annual through X% share our operating billion in capital are per $X.X in long-term dividends investments X% billion of and We $X.X to reaffirming and earnings annual guidance net

pipeline impacted service the and to lines we've all restore Tuesday, to communities, of XX necessary service the miles replaced in Massachusetts. Lawrence, of As all distribution of

the service states. adjust work our to We're and and and all Additional finish resources House impacted disciplined order with to possible. programs partners continued business businesses all regulatory and execution marshal have of infrastructure and in work homes their important to this our make the as is needs our as our working safely customers' restore modernization teams quickly diligently Meanwhile approach initiatives necessary our customers. to Ready meet necessary across to our

of yesterday, achieved a latest our Plan. base Integrated the we which submitted supports in electric rate in our we case, Indiana Resource on And Indiana. filed long-term and our business Plan Commission We to the our in two transmission Utility milestones Regulatory plans also execute both, we distribution Integrated and environmental a outlined case Maryland investments Just to we Resource continue the and pending Program modernization rate system Virginia gas settlement case business, and and in in cases. our Ohio, withdrew are our Massachusetts. Pennsylvania reached agreement in In in filed Indiana, a case settlement our Expenditure base program. Capital we've pending new approval received rate rider case. our settlements and rate our in In rate We've

continue a long-term infrastructure for and was footprint Maryland execute application our programs on modernization program our our approved. to We in also extension across

like our I'd performance call to will over Now, to Donald, turn financial who the detail. more in discuss

Donald E. Brown

Joe, everyone. Thanks, and morning,

with emergency associated just response, other Before subsequent and that and estimates system additional Lawrence to restoration include in I'd quarter Greater talking about expenses results likely like note earnings, our current our non-GAAP the event, quarters. we our will GAAP expenses the see of incident-related third

to not recoveries through September of XXth. as However, any of insurance, recorded substantially recover as these insurance we expenses expect but do yet have

non-GAAP compared and this share on in putting net $XX $X.XX billion on Through per $X.XX to million our X, slide capital approximately XXXX, XXXX. on of $X.XX Excluding approximately per CMA billion were to which net investment we XXXX, $X.XX per impact, our excluding share, guidance right commitment deliver million our for the net On continue are operating with the of approximately expect $XX quarter, our nine operating in same for first our earnings share share, to to XXXX, million $X.X is operating per deliver event. earnings $X.XX impact earnings see the third of the or months deliver period guidance us share you'll or to on plan. $X.X track $XXX or per

results non-GAAP turn now Let's to financial the segments. our business for

ago, operating the operating $X of an same loss Operating impact primarily driven period regulated about tax of excluding for investment the XXXX. segment Distribution increased and of a of Operations expenses. earnings, in had infrastructure $X about $XX million employee an slide X, than by loss million were administrative the about at lower year million Looking with revenue compared and reform our revenue higher Gas quarter,

slide XXXX. segment, $XXX Electric operating for Our the in covered earnings operating reported the of Operations quarter, about X, on about of with million million $XXX of same earnings period compared

year earnings about primarily increased usage. increase However, segment excluding reform, infrastructure the due This than offset were investment was by tax industrial to ago. Electric lower regulated revenue slightly million revenues, our impact of decreased $X a higher operating O&M,

profile. debt to I'd slide turning X, on Now to credit like our briefly touch and

of and of of about to average billion under debt. approximately net $X.X about cash maturity was which capacity recent and about was which weighted and maintain credit $X liquidity interest plan financing some actions, I'd rate debt was about slide level the $X.X available we our additional long-term third on of billion securitizations. was as are available billion, our facility September to our of approximately our total receivable X.X%. long-term like At average details years turn and accounts consisting quarter, the now X. and covered XXth debt the XX Our The weighted end

proceeds shares stock XX% of million up in financing sheet, SEC credit our in to and investments. the the equity As placement credit an programs. And steps earlier our offers enhance and to end plan, of our in This XXXX. million activity allows of which notes, employee purchase to annual June, impacts strengthening of of certain put to acquire to million $XXX plan million. sold expected the program program $XXX of with issuing and plan range by mid-July. balance in ATM improve $XXX today the included initiated us a in is XX% million stock investments is and beyond. filed preferred XXXX and This federal execution with predictable $XXX in of for a consistent year's proceeds our tax credit these issue to funds previous financing our it strengthened refinancing, growth end used long-term improved outstanding provide includes which to equity morning. debt $XX you This forward million Consistent million million profile with an approximately to and approximately to in the million our balanced ATM These equity transactions XX% and cash notes through issuance to know back from metric $XXX address through metrics tender other with the we financing our track redemptions, common a long-term to XX program $XXX $XXX May, infrastructure from to five-year this range and our we ATM debt and us of we private XXXX of our were and stock totaling plan going on operations approach this were reform, with we our by completed million the financing fund filed from $XX and and

few Now I'll regulatory highlights. discuss investment call a to infrastructure who Joe, will the and turn back

Joseph J. Hamrock

Thank you, Donald.

for Now and operations the XXXX quarter some to XX. on third let's quarter turn specific of fourth from highlights gas early slide our

October implemented. approximately Also other planned $XXX of effect pipeline IURC continued and annual million is Indiana, following investments we system modernization settlement the in measures case. settlement execute rate investments increase our distribution system continue enhance upgrades gas New The approval fully through once in to new on agreement our reliability. expected XXXX. long-term to are Indiana and The base with Xst, in took program settlement rates by supports to safety gas rates ultimately revenues in

our expected $XX Program seven-year and continued recovering legislation. also and XXXX re-file impact effective under the A XXXX, XXXX, allow the program $XX October agreement filed agreement filed increase tax application approved of of million with new filed Massachusetts, by later settlement one this implementation that resolves due and effect order The Pennsylvania, are pipelines the approved rates million Capital case We've base is extension order new reducing our for our legal the base rider our Virginia Commission Enhancement in reform. In to calls currently Commission from and revenues service second have August rebuild decision which which in to go a expect Maryland, approved State August approximately base begin system XXth, rate tax is incorporate the In recover to tracker. in ongoing is Development Ohio, on settlement all, to effect requested STRIDE, replacement tracker. revenues expected million, XXth, XXst. so and Our to awaiting initial our collected application modernization prejudice was request expected our XXst with case has and not new state. can The reform. would Expenditure case or rates deferred of Infrastructure settlement by federal recovered be infrastructure In rate in annual July but to for benefits withdrawn infrastructure of we of between customers an on other our $X into currently rates The rider. that by case, restoration modernization The of made to federal revenues date. including we rate Virginia, infrastructure gas revenues increase parties the in Corporation fourth at million, on upgrades later Commission If for expenses Lawrence. In a The as month. with X, on investments reviewing that focused we by settlement the as by by settlement tax December. rates Greater Pennsylvania filed, February million. capital and XXXX. application Commission with would filed, the without us we're In to dismissed we annual on reform Public annual changes a $XX in increase investment we issue our our and seeking if half base reflect filed settlement, a approximately application plan, Strategic options approved to five-year efforts quarter is program case new supports XXXX, this a natural investment remain programs application, on annual a filed. we're distribution through $XX.X reflects a to Maryland settlement matters, $X.X Commission a in the million associated costs for in and system the pending Utility in we If and the rate the our base IURC

Now our XX. let's turn Operations slide to Electric on

the our for global If replacement quarter generation in IURC IRP As IRP would resources five coal-fired be is in service the remaining September defined still XXXX. of meet industrial called associated all our and Residuals cost capacity reform. as retired to increase flexibility approximately portfolio recovery retirement calls revenues XX% is effective of capital storage available the projects submitted energy renewable filed as Plan third $XX in XX I next and as projects years within our while such to XXXX. flexibility its rates as include anticipated expected EPA It plan impact progressing Combustion And standards. XXXX point goal of at the Integrated to an by seek Investments for also The of with of remain the noted Also XXXX, These IURC to the for to the nearly request wind, the years. upgrades market solar reflects toward technology coal these settlement annual approved the options they competitive filed, In earlier, the The with being be coal-fired economical and cleanest technology. XXXX as the is approved of provide current Resource and most of our plants tax to IURC lower in the generation customers NIPSCO generation tariffs and supply facilities by and end well the authorizing the in mix marketplace. seeks are electric yesterday. environmental completed battery case. in company's to consistent federal The maintaining we million. generating early December to future The related for changes electric rate in yesterday, changes to to reliability and request costs. diversity order schedules base retirements transition depreciation projects capacity Coal changes.

execute request, program to represents system program, to further tax electric XXXX. be It new through the distribution approximately on in electric includes an transmission rates. $X.XX which $XX systems designed of billion remains made IURC-approved reliability. enhancements our our continue infrastructure A May modernization million to safety reflecting and infrastructure improve was XXth seven-year investments, to refund expected rate We federal update January our electric and period, which tracker base XXXX October for filed through settlement pending. customers with latest approximately The benefits

takeaways to about leave we you just some Before I'd turn to with your questions, like NiSource. key

programs plan, our a for ever is system. that delivering focused well on on our managing our and regulatory as initiatives tax savings all commitments and and impacts team Our and as customers. safety We're to way executing our customers we're investment of our growth of our financial maintains across provides the in reform sustains

X% to robust earnings ratings. our plans, X%, investment dividend credit investments We maintaining operating our operating expect of to deliver billion to to $X.XX our to to investment range and we through and complete grow, by expect both continue per to $X.X annually, With XXXX, in while net XXXX. net share grade to capital per billion in earnings continue non-GAAP $X.XX in the $X.X share,

an guidance in XXXX fourth mid-XXXX. look and quarter on We expect business provide long-term call at our plan updated our provide to earnings

to Lawrence, take restoring NiSource. in ongoing we our customers weeks As continuing the in of of and the for support ready We're today and your thereafter in through focus work on and ahead, now area. the Mark? your service for support Thank remains participating all needs questions. you interest to our Greater

Operator

Ridzon KeyBanc. first comes line the Our Paul question of from of

Your line is now open.

Paul T. Ridzon

Good Don. morning, morning, Good Joe.

Joseph J. Hamrock

Good morning, Paul.

Donald E. Brown

morning. Good

Paul T. Ridzon

quarter quick changed to really and the your hasn't the Just looked financing with regards third at a the plan quarter, I ATM. question. second deck slide

confusion clarify not Can today some you just prior the the the if incremental announcement in that's market there's think case? is I ATM. this that to

Donald E. Brown

million, is morning in No, we morning. we new QX Good consistent this we still outlined ATM plan, that $XXX this the Thanks, $XXX the filed. million with is The that Paul. ATM filed that.

used had ATM As one. we to you a recall, of previous file new and all the up needed

Paul T. Ridzon

is How And of much like by the to then Lawrence covered incident. insurance? covered cost or slide at be insurance looking XX, what's by not the this estimate on going that's

Donald E. Brown

and about process. broad million coverage coverage these substantially event $XXX type insurance be the recovered fairly to through liability all our cover got We So of of total expect is costs incident. this to and of

it's a not incurring we We these expenses process. really and September the However, in at receivable, because really that felt cost prudent booking a most of our through early did to we'll book before QX, as are get receivable XXth it in QX. close, and seeing claims the was the do which

Paul T. Ridzon

Great.

much. very Thank Okay. you

Joseph J. Hamrock

related includes capital just insurance-related costs. the also to XX expenditures system Paul, Those And rebuild. the clarify obviously slide not would to be

Paul T. Ridzon

Understood, understood.

Donald E. Brown

you. Thank

Operator

Julien question of comes line Lynch. And of the Merrill our next America Dumoulin-Smith Bank of from

now is open. line Your

Julien Dumoulin-Smith

Hey, good morning.

Joseph J. Hamrock

morning ,Julien. Good

Julien Dumoulin-Smith

one last the clarify quickly. to real just Hey,

of So $XXX of million insurance, when that's the it $XXX $XXX the recoverable million all you under from additional substantively expenses $XXX incident-related million? million would be and said to to

Donald E. Brown

those that That's how perspective, from correct expenses. that third-party into we of accounting perspective categories recovered claims from are really we be two through to It's accounting they But need all we expect expenses Julien. and insurance. and other around an show categories both book event put it to an

Julien Dumoulin-Smith

And your rating time, insurance and issues, for Got same just rate in flow and how going to terms done in once the perhaps What's filing balance that, whatever the at then it, cash of respect then you deem this agencies And case recovery the a expectation Mass, obviously, is here. you withdrawn the to are of viewing the sheet and timing, how said viewing (XX:XX:XX) related timing back appropriate. with on follow-up given are excellent. it.

Joseph J. Hamrock

take the Yeah, first Julien. Joe. It's I'll part.

making. been restoration Our service. the are getting investments back for regulatory focus related to on Those questions customers day another ultimate for we've in and the is the effort plan

Donald E. Brown

we now. standpoint, event it's financing financing are that a obviously, a From large

finance significant We liquidity this to have event.

here assessing that that expect any at hit timing insurance. through make sure XXXX year-end to ensuring we we that. the and do our claims But, needs we all promised financing, we've we hit looking again, it's to However, at around because metrics are expenses recover

Julien Dumoulin-Smith

with on generation when One spend IRP, more filing, with expect fully capital the (XX:XX:XX). delineate specific that NIPSCO to timeline clarification quick associated for do some of you the investment

Joseph J. Hamrock

in that's Yeah. one probably we areas when That's progress. Julien, work do mid-XXXX. a look we of the update further that to expect

Julien Dumoulin-Smith

very Okay, you all excellent. Thank much.

Joseph J. Hamrock

you. Thank

Operator

line next question Turnure from comes JPMorgan. the of our And Christopher of

is line open. Your now

Christopher Turnure

Joe Good and morning, Don.

way the definitely of to corporate you've but clearly be in parts other perhaps that incident outside or costs Massachusetts into talked XXXX there, about to expenses a is about years? spill related and related the guys could the company, what that to think and You that there not we might appreciate directly of future costs the details or outlined here perhaps

Joseph J. Hamrock

good XXXX Yeah. a for good question, call. guidance our Chris, early little that expect that. a and more delineate area would QX our That's in the we morning. It's on to It's

Christopher Turnure

Okay. areas. some pressure that should by fair? might But there able be be there other offset Is discipline to wouldn't we that cost in that assume be necessarily

Joseph J. Hamrock

that, I don't that I'd know go extent. to

don't point. to You all that know work do to way it got together, details at pull those we've see this but I

Christopher Turnure

Yeah.

Okay.

Donald E. Brown

– long-term don't X% earnings to we I'd and that, that of growth. guidance say changes X% I'd expect dividend this add And our

As we to out year meet last after able commitment. we and came O&M to committing XXXX, be to flat expect still that expense

Christopher Turnure

work clearly – a with has the sort time, And directed out been in some and Massachusetts since and both, negative political community you your plenty and DPU could headlines I then with there? dialogue there think the request you of the gate toward how out the Okay. suspension regulatory company of that for came of were even characterize specifically of

Joseph J. Hamrock

Yeah.

would worked state several partners of the leaders since with community and incident. stay we've the all to community. together. the very our last is day-by-day the the We in the through service the customers a And community closely weeks collaborative You that and very restoration to that of I recognize worked over say some focused issues this and in working the effort across on the

restoration equipment immediately. will the work to of that as We to repair get service replace ongoing do with the we'll have as beyond we effort some well

in service has this community the than rebuild got and So and just the we've, commitment state. confidence this on and restoration tail has trust long-term a made a in this with got leaders longer we've it to

Christopher Turnure

you that dialogue ongoing an Would there there been incident? say the has initial since

Joseph J. Hamrock

we're we're, yeah very working Oh closely day-to-day together.

Christopher Turnure

Thank you. Great. Okay.

Joseph J. Hamrock

you. Thank

Operator

our And next Kim Insoo comes Goldman Sachs. of question from line of the

open. is line Your

Insoo Kim

Hi. Good everyone. morning,

Joseph J. Hamrock

Good morning.

Insoo Kim

subordinated side, well away financing an financing the potentially you're XXXX on ATMs more year room XXXX? or from file next as support equity like (XX:XX:XX) vehicle metric seems for it of open option Just for or to debt, your a is preferred credit as kind additional as and some for that leaving equity guidance this

Donald E. Brown

a a we we was versus long-term you. that as equity. good lower Thank preferred at common look to content May, to that Yes. option equity provide cost continue way transaction, did the in It certainly equity issuing

So absolutely.

well that debt versus we continue ATM program as as through issuing compare financing. However the will to regular

Insoo Kim

Understood. you Massachusetts, forward towards years, versus And gas of look in and future, the much? CapEx leaning not then, base your next the given electric that change items, to more a as you what's few rate happened that does really mix do see bit or

Donald E. Brown

So point, at think this going I the significant wouldn't in to way. change is mix any

our electric we'll mid-XXXX. that this certainly we're an think departure on the through mix. update significant see a working able don't point, current be provide to at I generation plan in from I But and

Insoo Kim

you very much. Understood. Thank

Joseph J. Hamrock

Thank you.

Operator

our question And Research. of Fleishman comes Steve Wolfe next from

line open. Your is now

Steve Fleishman

morning. Good Hi.

Just...

Joseph J. Hamrock

morning. Good

Steve Fleishman

you better commitments. rating the to Just – clarify agency mentioned on

of some you just of are this year. options of kind it sure You kind ATM make mentioned to to? of Is things your you for need options? that the meet timing other what or is do So, them it if you might

Donald E. Brown

type if of to it's equity it we do timing ATM security of really certainly in content program support our well filed support equity that were think efforts content, we preferred the were at that would as Yeah. restoration But hitting really transaction as if type or the metrics to to issue any timing with Massachusetts. we I yearend. any is

Steve Fleishman

Okay.

Donald E. Brown

cash flows metrics. at in we looking we're as (XX:XX:XX) evaluate

Steve Fleishman

other reviewing a states? your at And step system, broadly are other back Okay. operational replacing more changes you kind timing of of pipes look of or company you as whole kind and as in your kind of

Joseph J. Hamrock

on always risk-based always an It's evaluation. that Steve. do We a basis. We're ongoing Yeah. that. reviewing

reviewed well As would the we and also assets along the some investments around on through on in call, expect make other that that still we're the to earlier I noted near-future, we share have low working as the the of line details to expect pressure in more near-future. systems and in but profile that

Donald E. Brown

add about you in we'll think typically each five- investments. seven-year state, our if our that, would programs have commitments and around I But, infrastructure

so, And change material we those intend expect those – commitments not to programs. would I state-to-state a are as on do hit

Steve Fleishman

Okay. Thank you.

Joseph J. Hamrock

day. Thanks. Have a good

Operator

line our next Shar from question And comes of the Pourreza of Guggenheim Partners.

Your line is now open.

Shahriar Pourreza

guys. Hey. Good morning,

Joseph J. Hamrock

morning, Shar. Good

Donald E. Brown

Good morning.

Shahriar Pourreza

just expense? through sort Don, ongoing you have mean, failure. given could do the you doing are least? near-term – estimate at more around be I an system sort of lot of you the ongoing in what presumably the O&M a your Do have inspections of design

Donald E. Brown

That's that. in at evaluating future expect as don't that the information our that we'll no. we're to more now change be Joe, look something O&M taking O&M and outlined point, there plan. we on some and that of right able the be So, the would long-term low we steps to at But our operations provide pressure needs. are systems this around significant

Shahriar Pourreza

everyone you Okay. And just of Perfect. remind sort many on of back Massachusetts. When again, do their just to us homes? are right. then, sort their come still outside And then expect homes of how to

Joseph J. Hamrock

bringing schedule has additional resource original we're and December though of earlier that XX, every the revision We those to pushing Yeah. schedule now ultimate dates resources December redeployment X accelerate in for day additional a still week and between announced that with we than to contractors. return the last work

entire So work an very for home it's team focus affected those for an accelerated the towards urgent disruptive It's return them. customers. across to

– I terms the of on still daily now, but in the the alternative recent, affected are a to homes are of at by number that In stats this have folks not we are and that and of most normally. to able subject right check. their number provide function to look folks in out who we need housing number

to affected here the and So, restored of with as customers about they're we accommodated. customers we've each we work we XX% the affected be as sure sit today, of

Shahriar Pourreza

Excellent.

Okay. Thanks, much. so

Joseph J. Hamrock

Thank you.

Operator

question next our Credit of from And comes line of Suisse. Michael the Weinstein

Michael Suisse and Securities Hi. open. now Joe Good LLC is line Credit Your - Weinstein Don. morning, (USA)

Joseph J. Hamrock

Good morning, Michael.

Donald E. Brown

(USA) - Weinstein Suisse LLC Securities Credit Michael morning. Good Hey.

plan Massachusetts. forward, So be is right essentially just unchanged the going happening clear, in that that's an replacement program capital includes the expectation to equity accelerated now for and

that, So the a that as be know, in result think accelerating you might you additional there's other equity words, of no needed program.

Donald E. Brown

on work from this a in lot about We over correct. in is support just from Massachusetts. think resource of And effort other a Massachusetts. we it standpoint, executed to That brought resources this states

- And I'd say out across so also priority financing Weinstein did changing capital you of say to Securities any balance or our need. our bit And There so, corporate initiatives the that (USA) we that the end the capital change guidance or significantly. and/or that LLC plan that Got be but to were lower states, change a really trying that X% shift supported IT EPS overall is middle doesn't for guidance, that it. are of also also – is that range? for still the little X% delayed Michael Suisse growth, not the some there Credit guidance plan in in and is you'll our unchanged we

Donald E. Brown

Credit (USA) well, going forward, For would say... Securities the X% Weinstein to I XXXX, Yeah. X%. - Suisse Michael ...just LLC

Donald E. Brown

Yeah.

of So, if X% business, to is our for that X%, primarily you the XX% it's driven outcomes by and programs our tracked. think yeah, in infrastructure I range recall about of thinking

outcomes is the And movement so, financing regulatory and and expense within outcomes, really around those of the O&M costs. timing range

first Analyst standpoint. a Securities for maybe has the Got - Weinstein quarter you. does This year, not sometime think your that Suisse an anything that. next of event Day this around I Credit long-term And from plan end doesn't change (USA) LLC So, Michael the or? change changed regarding

Joseph J. Hamrock

Yeah.

call Got LLC range we're for Weinstein update that... As an mid-XXXX and the I (USA) longer - I Suisse you. earlier, Credit missed at Securities plan. Analyst noted now on on Michael Day, the an looking

Joseph J. Hamrock

- very Weinstein Securities Credit Suisse Thank much. you Michael right. (USA) all LLC Okay. That's

Joseph J. Hamrock

Thank you.

Operator

And from Fishman Morningstar our of comes next question Research. the of line Charles

Your now open. is line

Charles Fishman

guess be you're certainly haven't submitted Thank from your you accelerating was from yet discussions IRP looked that just was renewable it retirements had Was I in energy with of is, first plant had it is, that your the previously there you would it the in do that related to but Commission? I is planned? to because at energy downsize question more appear you the originally you. cost indicated, appears your then City certainly you feedback, to I Michigan customer or that than going upgrades admit you'd that. at Was to the retiring not the it what this, plant ability the it have drove unique renewable yesterday, than retirements? what that guess environmental industry. you thought Joe, accelerate earlier coal you into those the which slides And my lower coal I Schahfer, units decision

Joseph J. Hamrock

Good continuing supply Charles. within that the all looked was And as what all of all to now regulations. we an XX known with and analysis yesterday Plan, expected us. retirements existing for ran emerged portfolio question. characterize with all looking best cost long assets, viable, accelerate and earlier of thanks for of that is in did of accelerate And next to supply plan Integrated coal last for the the replace above within with in shared and Michigan the with here that morning, the relative the at – noted, the We you And retirement look further Schahfer to economic we then ran portfolio providing the solution options, of out Yeah. you slated unit years, when City stations factors for as the RFP all Resource at renewables the year stakeholders the for at we current noted, all of the a environmental to plan the most coal the solution we as the of retrofits driven most today sit it And as available And sources, the with be years. rigorous that I IRP, that expectation acceleration we run including most analysis to would comply and retirement. or it viable cleanest that would economic the cost, put by for five run capacity.

We'll time. then next as closer that look look the it get available capacity the at replace as what's to side to evaluate timeline we will marketplace take through We another in needing continue years. of the step XX now, we'll to of we across and

evaluation. that's ongoing an So,

and the Resource depreciation to acknowledge retirement complement Integrated that you really to and upon but and that continue proceeded last so reset both we And CCR compliance plan. the case rates, with to was for And coal rule date because filed year the is also CCR, CPCN question, ELG, now the accelerated have that the designed with us. we'll we recall a that both filed the compliance ash water is Plan the may the that, last rate yesterday and your

investments side, ELG that this with you water question. to rule, continue consistent the would On and plan evaluate in your those not under make the likely we'll indicated what

of needs all at comprehensive our solution So, the it's customers' supply expected up our a options, the coming of look all economics. the with and that fits And needs. best

Charles Fishman

there you – won't your the rate stranded it from where base you're with a prevented So, some environmental cases, stuck you're you're correct? upgrades all sounds made of risk that recovering so IRP and of it, is, be any though coordinating recently investment here, what the like

Joseph J. Hamrock

move That's to so for other the the set having depreciation can on that decisions with time in that case we to existing assets, established rates based get idea, rate foundation. the forward the

Charles Fishman

all Thank That's you. have. Okay. I

Joseph J. Hamrock

Yeah. Thank you very much.

Donald E. Brown

you. Thank

Operator

from the Fishman. a line follow up have we Charles And

is Your now open. line

Charles Fishman

had nobody since else pop me just let Well, one. one Okay. quick in more one

shows slide, included like roughly XX your always recovered investments XX months. You've something XX% a are of within slide that

Ohio it settlement? be I Would over so recovered going you'd a new in tracker, under forget Ohio, this investments it in percentage includes you're now? approved I this tracker. guess that or I'm trackers, XX% had reached you that the increase sorry, You was of or proposing

Donald E. Brown

correct, That in gone through That is base portion typically investment of Yeah. our Ohio Charles. rate would case. have a

And so now, the of tracker investments recovered perspective, the all almost would or a through be a from rider. Ohio

Charles Fishman

correctly? significant, touching – Is Ohio investments about that it in that mean, so by conceivably could covered of be your I my trackers XX% thinking now.

Donald E. Brown

it. look you will We back to that.... we'll to can update have certain get I'd at and

Charles Fishman

But got Okay. I the...

Donald E. Brown

...once approved. Yeah. order that is

Charles Fishman

direction the got I right.

Joseph J. Hamrock

you. Thank Yes.

Charles Fishman

Thanks. Okay.

Operator

comes question Julien of from the Dumoulin-Smith Bank America Merrill next our of line And Lynch. of

line Your is open. now

Julien Dumoulin-Smith

have even just pretty have of little a amount mean, detail in wanted I you this IRP if a up can. here guys, bit that, meaningful dated thinking to near rate potential are constructs could for and basing you especially you solar years you obviously IRP, have healthy it, the on a – Curious, ability impact? any to do XXXX. How about your a that that in Hey just because more own follow has

Joseph J. Hamrock

Yeah.

both, to own those around we PPA in what RFP, We the I at ran the that what are and that rate to ownership. as well mean We're as opportunities or this as in bids. would be When looking came bids summer, ownership, up that that as for in opportunities at PPA. firming IRP structure are include base. well looking

about year our would future So, think but certainly opportunity and that next and to come we we plan part talk own. of the generation, be how investments to will out

Julien Dumoulin-Smith

would (XX:XX:XX)? that XXXX Right. advantage expect and in be timeframe take IRP RFPs that IT And issuing XXXX you XXXX given to that the timeline save you'd for the of

Donald E. Brown

likely. come but don't would the out place XXXX. I in timeframe we in to probably next what if you're the we've know probably a XXXX need be it's on yet RFP, I'd right, say to by certainly date

Julien Dumoulin-Smith

Thank you.

Joseph J. Hamrock

you. Thank

Operator

our And KeyBanc. from Paul comes next the of of line Ridzon question

open. is line Your now

Paul T. Ridzon

Bill Just that following it think do right? up on is basically I legislation was – I generation, company-owned that of understanding have My XXX gives Senate in kind Indiana, prefers that.

Joseph J. Hamrock

I'm to I'd sure right. Paul, not have that's on check that.

Donald E. Brown

traditionally. But

Paul T. Ridzon

circle I'll back.

Donald E. Brown

has preferred generations. for utility Traditionally, Indiana ownership

Paul T. Ridzon

you. Okay. Thank

Joseph J. Hamrock

Thank you.

Operator

like remarks. the to closing questions Joe at turn CEO now Hamrock, would for And to I I'm time. showing this back further call no

Joseph J. Hamrock

talking look day. joining Thank to a us good your for morning and this Have interest and you, and support forward NiSource. to thank of you, you again soon. Mark, again in We all for

Operator

And a Ladies day. you program. today's This thank and for conclude great have disconnect. gentlemen, may in the all you conference. does Everyone participating

NiSource (NI) 1 Nov 182018 Q3 Earnings call transcript