NI - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2020 NiSource Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Nick Drew, Director of Investor Relations. Thank you. Please go ahead.

Nick Drew

you. Thank welcome first and call. XXXX the to morning, quarter NiSource investor Good

me our Chief Brown, Hamrock, are Financial Executive Joining Joe Donald Chief today Officer; and Officer. our

for to purpose as well plans. update growth NiSource's The presentation operations, an quarter is our and this financial XXXX of provide performance drivers the on as first of review financing

nisource.com. your today's call for our remarks, prepared Slides we'll Following available open on questions. the call to are

Before call a to quick and Joe just turning Donald, the over reminder.

during made are Information statements those SEC periodic the Factors presentation and will that is statements of Some the actual concerning filings. from These forward-looking. this and Risk uncertainties sections differ included subject uncertainties of statements. be risks expressed in materially risks in our to such and results the could cause to MD&A

some made the this to relate statements call non-GAAP measures. of Additionally, on

directly financial the the refer measure information full our and most a additional slides nisource.com. please supplemental comparable For measures, of to reconciliation schedules at GAAP available including these information, on and segment

all way, call that Joe. like to over to turn the With of I'd out the of

Joseph Hamrock

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

do critical NiSource on serve. the team's tremendously America I to current performance running summarize to first comment the I to just global to critical Before how take communities employees to moment crisis in pandemic they day we want important and in work This for keep dedicated thank work a our quarter, every the highlighted our our the service has areas. the is and

are to to essential service critical also customers we provide the deliver a their work. safe industry support supply across This we supply millions designated chain hospitals, responders, and continue front service as to of gas that and service service on the reflects we central essential crisis. this providers, states Those power, crisis, key lines the emergency essential a so service user to and peers area. critical the continue the recognizing other provide on across of utility end in the can of and depending electric operators providers, serve on providers Early us our providers an food our us uninterrupted they

deeply are we on front of important to this and support crisis the the of lines and dedication for those for selflessness and We have lifesaving the grateful opportunity their work.

command our We seven-state across our have execution activated communication incident coordinate to operating structure area. and strategy,

employees, all who so. our protect can from we To work have encouraged home to those do

cleaning must allowing have time company who person report doing employees those critical distancing location, checks while social protocols, buildings, For more work of implemented frequent temperature entering and vehicles a at facilities our equipment work. we for in people a and one to only

customers. employees critical certain continue plans Also, others sequestration consistent our specialized have functions with outbreak reliable to NiSource's any service in safe, to sequestration to industry. is prevent approach the in functions utility activated among providing necessary

Across NiSource, federal, for the Centers Disease recommended Control we governments. and are following health Prevention and by local and state safety and protocols

payment pandemic, to hardship plans for impacted a number or suspending further notice flexible offering our non-payment to of COVID-XX. customers and until have to including COVID-XX facing taken the through We shut-offs due most help actions customers by

that Additional has any home. include minimizing at customer employees premise company distancing protect customer's field to field strict non-essential practice to measures customers the directing social work and entering taken requires a

of public support operating health across a $X.X comfort the communities $XXX,XXX at are million nearly in result donations across care delivery intended COVID-XX and In American of Red in donation initiatives to the These need provide local our $X as company NiSource This the million donations our crisis. nearly and to support level. footprint the to committed Foundation a to March, support included Charitable footprint. the to relief Cross

and this a confident remain perfect can't and While a will get crisis with that clarity play we this through out, stronger stronger organization. emerge see will we country how we will

to equally employees. of X,XXX We our in essential and electric dual safety service and customers of gas duty to our commitments protecting important dedicated deliver the are our the resolute health and

is event for all and from positioned will plan emerge to help deliver continue this Our us to stakeholders. resilient of business our

turning and for key Slide our first the Now quarter. to and X, results takeaways

operating $X.XX non-GAAP per quarter net Our XXXX. earnings to $X.XX share first of of in share per compared the

results. played quarter The States minimal first therefore, COVID largely our was and in first reaching crisis impact to the of XXXX quarter out United on prior pandemic proportions

activity, As supply reduced the economic of economy we've in has resulted capital prolonged and COVID-XX availability all disruptions reduction labor to continued and a global widespread impacts and markets to chains could lead spread seen on and productivity. extended financial in the and markets

We are increased bad debt on our expenses. of operating business the customers expect and potential range to continuing decreased to pandemic industrial sales to liquidity. future on We attrition. commercial may volumes and customer impacts of experience experience and currently and sustained evaluate also results the We

impacts these known. in you future become will quarters and details as We will to update manage continue

help cash by In impacts on flow, now plan billion to investments XXXX. million we lowered make capital $X.X of $X.X have order to our to we in expect our mitigate and potential $XXX billion

a pair We risk March to XX, refinanced new reduce maturity financing a recently we Xst, of and $XXX term our On April million actions loan XXXX. date also increase took liquidity. with of

we due XX, May issued of $X notes April Xst, X.X% billion On XXXX.

of Gas track We our liquidity. Energy maintaining previously on grade Columbia remain committed to in remains close credit provide of quarter the to announced Massachusetts' Eversource additional current investment and XXXX, to of sale the ratings. will assets Additionally, third

transaction. You that we to CMA earnings withdrew due February our will recall guidance non-GAAP sales pending in the

our long-term growth We is continue remaining operating to the opportunity companies unchanged. for believe that

net guidance base generation as the opportunities be XXXX to is earnings with to related This long-term continues beyond advance. expected for incremental strategy, per dividends and include following to and rate long-term our to extended transaction, a new operating of the XXXX share guidance year. investment electric which net restate growth XXXX to, X% to expect operating X% the initiate earnings per both CMA completion We share

implementation, we're RFP XXXX. system and needed discussions With our portfolio approximately While plants. it's even half remain are ongoing, our response and ownership in This to respect current top SMS XXXX, capital investment to of business business opportunities targeting generation incremental retiring enhancements as have a the replace safety to begun our electric our our pandemic management presents our important with priority. gas we our XXXX that implement mature in in bidders in coal in with to safety currently latest broader continues know SMS to well. efforts,

identification risk Corrective through Program, which valuable is analytical We Action are enhancing insights. providing our

mobile of our capabilities, new response also are centers. use enhancing mobile We gas emergency the including command preparedness detection gas and deployment and of state-of-the-art we're piloting technology leak the

of Safety business. the our foundation remains

in enhancements our activation manage safety through value ways, pandemic. the multiple to command delivering Our structure including COVID-XX of are enhanced incident the

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

Donald Brown

Joe, Thanks good and morning, everyone.

non-GAAP of Looking $X.XX net at driven our compared segment about $X.XX the by decline reduced customer demand and electric or was $XXX operating growth. million earnings had per primarily XXXX. our operating proceedings, to increased earnings The share first business Programs effects We offset million costs Replacement per base safety by O&M rate and of of results X. somewhat from increased Infrastructure net on gas year-over-year industrial revenue the or in Slide quarter share $XXX about in

really stay-at-home As any impact. shutdowns so quarter our to these orders most COVID results not the of meaningful states, do first a played prior in out the reminder, reflect and pandemic related

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

was approximately long-term level $X.X average debt The debt. March maturity debt and about weighted about as our weighted which Our was X.X%. billion on of was XXst the average years approximately rate $X.X of billion, was interest long-term XX

the our programs. the At first accounts quarter, available receivable securitization credit end and about liquidity cash consisting and we maintained of billion, net of our facility $X.X under capacity of available

credit are our investment investment all agencies three to major from Our and committed we're grade ratings. ratings current grade rating maintaining

our X, financing turn investments. to long-term for like plan growth Slide now to a I'd covers which

on quarter million $X As sale call, issuance. XXXX equity refinanced as coupon. our result fourth $XXX previously a In CMA of April, of transaction, planned billion longer our at to block term notes the asset X.X% our issued loan and no we pursue XX-year we expect a we mentioned

manage transactions expect the these necessary through the impacts We provide liquidity to the pandemic. will of us

focused infrastructure our as to stock in $XXX range equity to programs issuance million plan, to investment $XX million our continues $XXX or from as our include program employee equity current $XX for on the and is funding other from providing programs. safety well which of million purchase ATM ongoing annual Our At-The-Market and million

programs. modernization pandemic safety barriers infrastructure presented for and has To-date, the not significant our

cash mentioned As million billion $XXX as investment to $X.X have, back billion capital $X.X to and our earlier, now a in conservation measure, expect invest plan Joe XXXX. a by we scaled

situation as in closely will and A February adjustments warmer make provided but year, capital our this COVID-XX January flexibility we're ready execution further stand monitoring than some the normal us and necessary. to

on including bad the regulatory state later Maryland expenses, for active a seek recovery relief debt. we from us April, front we incremental received orders the at giving pandemic and In related authority also in state incremental commissions Virginia defer to COVID-related as expenses COVID We're to date.

in how working we address of our haven't to be, that the our impacts. seen states impact performance will we're significant pandemic the financial currently on negatively yet growth would And regulators long-term the with other impact Ultimately, financial length determine drivers. our but severity COVID-related COVID and anything will

guidance initiate the year, following a establish and Massachusetts will X% both operating X% growth continued this share of We This to XXXX long-term expect closing share operating generation rate to that per expected the net net transaction strategy. for to rate XXXX earnings is later beyond to our investments dividends be year. and to new electric as extended related with base XXXX also growth include incremental earnings per long-term we

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

Joseph Hamrock

Thank you, Donald.

second filed Public the last Commission Slide from turn Pennsylvania, month X. with base XXXX rates and become and and of In Utility operations seeking as to effective in invest first a an on highlights distribution order the well quarter million $XXX.X the system. our quarter increase in, gas maintain some let's January annual to we natural existing early modernize Now continued are of our And rate gas upgrade to XXXX. expected for as of safety new the system revenue case

are day same in customers requesting residential that who our grants eligible who rate petition programs. pandemic, make case, as with participate our to Pennsylvania are the the implement a PUC a filed The of would COVID-XX not existing loss to to experiencing to temporary but due a we assistance income program authority

the approved to for for pandemic to most us weather example a grants. to customers pipeline a vulnerable Foundation by a This states. looking how financially, penalty previously is this We of proposed fund priority NiSource Charitable the from we're has an our matched portion contribution help funds, of credits of across use is our that all hardship PUC for ways the which

This and adjustment. replacement safety tracker the Utilities begin priority investments allows authorized through Public $XXX order our annual replacement Ohio, Infrastructure Program made million In well-established approved pipeline targeted of and approximately mainline This covers XXXX. pipe XXXX, in of service us Commission customer lines. infrastructure to Replacement program, recovery in

New rates effect most into this this recent filing went month. from

Program The begin Expenditure XXXX. approximately adjustment to allows an Ohio deferred Commission request for expected and latest in rider. August IRP. and that in our $XXX capital pending Capital reviewing recovered This to our in investments the capital related rider is also invested through seeks order XXXX a expenses are million recovery annual of is not The recover application us

semi-annual The be IURC investments adjustments In Indiana, existing in gas place Commission. TDSIC Transmission, July capital six-year Charge gas been XXXX. program nearly existing and includes before through The or our proposal XXXX, through remains a Distribution in is modernization extension pending program million Improvement Regulatory the long-term $XXX Utility to tracker. of in since An has our TDSIC order expected the for Storage to recovered XXXX. gas application infrastructure

year. our that the in possible both COVID-XX replaced Now, to to the Rosewater pandemic. let's wind projects. Slide to Though service experience the due expected monitor this any turn Both related underway construction and of to is electric projects construction X. project pandemic, to a inside impacts the closely schedule, we Jordan delay could end continue by will Construction the Rosewater on are operations Creek on be

XXth, Crossroads, quarter joint with megawatts in a XXXX. approved will Crossroads wind for have XXXX, to Renewables fourth of Indiana expected aggregate EDP XXX The third Indiana is an in project, and IURC the be our nameplate on operation of February a application North venture capacity America.

options. integrated a bidders with commercial closed were resource for capacity retired replaced XXXX. The who to XXXX results with for to request be be which by by proposals number which consistent cleaner Discussions calls November our XXXX, RFP of cost, and XXX% to in our lower our coal responded reliable continue plan, of

greenhouse retirement considering our RFP customers emissions resources XX% the Generating gas to in The drive save than XXXX, XXXX. expected is $X plan the over is reduction R.M. facilitate electric years. expecting process the to NIPSCO billion of all sources is our and XX a to in adequate Station in by and to Schahfer obtain more

capacity is in investors Currently, of as targeted primarily the remaining expected purchase ventures replacement new be power in NIPSCO to to will include half owned that agreements. joint unrelated of the capacity The the financial is the form plan be members. by and

begin to to related expects as of approximately incremental generation finalized XXXX. investment NiSource The appropriate coal-fired megawatts of new NIPSCO the opportunities compliance retiring filings for with XXXX provide capital and planned counterparties are X,XXX regulatory capacity XXXX agreements replacement in and the in XXXX. XXXX could

and distribution safety system includes made electric reliability. investments seven-year electric program billion modernization to expected of program, our IURC enhancements XXXX. originally in our which improve by and approved electric The further to includes be infrastructure infrastructure on system transmission the designed to $X.X XXXX, approximately execute to through continued We

rates latest New January became update our effective tracker under in modernization XXXX.

Slide to our I'll now enhancements. Turning X. focus system-wide safety on

are exceed layers empowered is everyone of existing risk, and to standards protection report identify to in culture process by and that safety three asset a We and safety pillars, anchored analytics enhanced where practices. adds management industry risk resolved and lead

our ongoing these Our performance is RP driving API's great as in refinement begun We've business we our in Management a System our practices in SMS on and or of and progress introduce to implementation well. SMS electric and planning XXXX across improved business business. Safety gas gas our made based implementation

Corrective expanded In our the provides the we Program identification have CAP, analytics. maturity which gas enhanced of through business, Action and advanced or risk insights

have deployment state-of-the-art and use centers. emergency command piloting we our technology preparedness We new are gas also ongoing matured of the the gas of detection mobile response capabilities, also and leak mobile including

flexibility mitigate new having to work risk continue priority toward informed to in risk, like risk a be beyond. identify, projects driving cases more analyze in we're help proactively and investments. rate This Ultimately, programs, tools CAP new and and and XXXX will

a ongoing Slide XX. and focus for to focus moment Turning on I'd matters. governance social to like on environmental, our

new. our this our to While new on slide is ESG focus presentation, is not

decade We a reporting now. ESG on sustainability more and have for been than

published As our many annual of you have likely recently integrated seen, XXXX we report.

modernizing to energy If electric nisource.com. you contributing haven't and business, communities renewed in to check to safety our which we you report work. it emissions infrastructure, our I at delivery our strengthening already, and out commitment our live The culture, the encourage discusses our transforming reducing

Last which our summer, Report, we Climate with published task XXXX the disclosures. financial by aligned framework is also nisource.com, on developed available the climate-related force at

a We performance. also have being track for our sustainability recognized record of

years. maintained have also of For six indexes North to as number named Jones for we named the the to Sustainability FTSEXGood the America been as sustainability Index instance, consecutive We've by Dow S&P. Index well been

from a Gender decrease We for were we reduced XX% emissions the levels. a from an named XXXX XXXX, environmental to we founding member XXXX score have of reducing And in EPA's goal emissions by XX% Challenge the XX% gas bringing and We aggressive total from year. levels. were Index XXXX in XXXX greenhouse greenhouse of Methane January, XX% top by We Services. Equality Shareholder hold the Program performance Institutional third the to in Bloomberg consecutive the gas

the equality financial committed transparency. tracks development, gender companies policy representation to GEI supporting performance and through public The of

communities and places the our our throughout critical gender efforts. to recognized best committed as diversity of are a work inclusion to component and We and grow being one is of equality

on We reliable COVID-XX your the and key Before pandemic. service share energy takeaways. reiterate and safe we questions, a remain focused I'll maintaining take few through

with supportive relief which regulatory to expenses. respect crisis the pandemic have We and financial manage incremental NiSource seeking to ample liquidity with we're through steps position taken

provide financial more become to continue manage and will details We as potential they impacts you known.

to in recent to investment-grade remain with in $X.X expect current maintaining $X.X committed CMA we investments sale Consistent XXXX complete to years, billion to to on and close and we third our the billion expect the quarter in credit continue capital ratings. asset transaction

safety gas our is electric our SMS, across includes to across continues our in through manage prioritize and which footprint mature business implementation business as continue initiatives rolled the XXXX. out in pandemic. being even of our to We This we

is wind identified we strategy coal-fired incremental continue in across further with electric opportunities case generation is investment base Our replacement our and and our project as retirement generation investments with advancing on progressing our continuing, in capital infrastructure track business gas updates Pennsylvania. portfolio. construction develop a new filed Safety tracker rate

take [technical ready participating Mariyama? for today now you to NiSource. questions. We're Thank all of your difficulty]

Operator

Instructions] [Operator question from Partners. first Your Shar Pourreza comes Guggenheim with

is line Your open.

Unidentified Analyst

you we Porter] the XXXX, language think as know as on rate the good are I of to as be we gas. is should case pending XXXX Shar. base XXXX, seems because what [Rob sale and This guidance at still guys prior XXXX the pulled allude obviously should for drivers is think that least But about?

Joseph Hamrock

question. the for Thanks

As we trying think what into about to business and mean early could on we're COVID economies. to and understand the our this

specific I little early to think guidance on XXXX. provide it's

a earlier, significant expense customer and lower as because on first higher impact - a standpoint, haven't debt stated we of we As COVID expense. seen in we as the some revenue but see we well from an demand or do standpoint will expect bad - quarter,

do this next our how forward. year will as I think able understand we'll have we what our going through to it get and - provide financials drivers, more on as quarters, our impact to So insight guidance business year. go and the but long-term starting Again, may we point the don't we be think learn impacts growth it we COVID want our affects

Operator

next with comes America. Bank Julien Dumoulin-Smith your And of from question

Your open. is line

Julien Dumoulin-Smith

on here set expectation. just question 'XX follow-up I could level If on last the - the

that 'XX loss going cut 'XX about the demand for - seems incremental cost as cuts on and some sale. of the to You to lost certain predicated that flattish given into to are 'XX to 'XX some all thinking of part offset today the offset as and presuppose earlier of versus you the earnings some of from I'm that - of How cost over be about think talked you about spill amount being might here? largely

Donald Brown

no, that's Yes, right.

work with we from and some pressure dissynergies steps that. of purposes earnings loss flows as and help through the own and about well what we're cash some We impact offset the as operating continued those are Eversource understanding for are as plan to provide so to COVID and working on the mitigation Certainly the think separation of Massachusetts. what incremental our expenses

At taking this - not I'd will any impacts any but the give own specific and look we and as are it's having operating that programs. our potential we what customers, capital point, impacts analysis analysis specifics taking are look direction, to into be, on it's we difficult our at at revenue our we into to scenario do our - as say information expenses

Joseph Hamrock

Julien, And me just... let

Julien Dumoulin-Smith

to you just So missed.... kind be clear of

Joseph Hamrock

basis a let about the of those realm yeah, permanent to - a CMA what a a the are might about the through across operations shared about manage cost that of different we're of and actions sale from downturn related think just pools. changing the add to like cost in you taking largely bit and and there, me differentiation. this. basis really you little related in on a Very profile ongoing short-term When do Talk the cost structures on little enterprise platforms enterprise to

of largely that it's often spending spending timing future those for comes spending, back efforts. discretionary that at of in you kind Some the of often look

two differentiate and maintaining for highlight that core the and So I focus is XXXX our efforts would beyond. strength on

will operating here, manage, our So at the of focus tight the cost on capabilities take for and platforms edge spots remains through to as and 'XX beyond. shaping said, actions this Donald we'll execution lean but core year be any

but and at there. - distinction They're efforts. maybe separate co-mingle a is there they So distinct largely they're times

Donald Brown

I Yes, the think to... opportunity

Julien Dumoulin-Smith

that. appreciate I

Donald Brown

we Because are...

Julien Dumoulin-Smith

I If just clarify that. can

Sorry, go for it Donald. I apologize.

Donald Brown

that of because and be change with that temporary we've can hand-in-hand looking team got levers the say looking that I'd that's on may at goes focused we we the to able work. execute core operations structure a Yes, some even at how

Julien Dumoulin-Smith

Got it.

guidance, in if you're expectation with and takes time, earlier just that given of the flattish at but puts not to to necessarily restating this various here. point - clarify, So respect that

about Just want clear be to that.

Donald Brown

that be provide the what that COVID I would business. early will the say to of for it's too on impact not guidance knowing XXXX,

Julien Dumoulin-Smith

a the sales the Understood. sort little of And how thus far, here trend XQ you but you the can go give sense then, thus the quickly, of just if flavor what currently impact you far? you seeing seeing April can, us magnitude. are order a curious, of I know I are of of just if talked on to bit

Donald Brown

week that as more give that, have we're you that... don't so can thing I do any closing one provide say, information we have Yes, I Yeah, the just investors, and and next this I'd can we actually books the over get and yet. the specifics week We'll will so. to

Julien Dumoulin-Smith

Okay.

Donald Brown

of That and of the we is a a on our are and demand ago, season. so said though, lower I've fireside year and supply investor it weeks thinking chat couple the part a - season about it's this shoulder

so a And as standpoint understanding also it's we'd an well see doing hard into versus translate what April the business customers temporarily businesses on what our do as just little long-term. are impact they bit from long-term what to

Operator

next Your Wolfe from Research. comes with Peters David question

line open. Your is

David Peters

families Hope doing you and well. your are

how kind update incremental trajectory RFP CapEx do opportunities we you in the the that on when of shaping and of see expect should On long-term growth guys Indiana, an company? the

Joseph Hamrock

as at about to view now it me the timing into and longer-term it's view Donald this talk the the can point. let extent about view Yes, we coming

earlier, with noted negotiations into as the we're we're in So we the bidders - the RFP. phase

months. in that few expect come to We here through the next

terms investments that plays that the the that have summer, equation. a about around for maybe So expect with structures QX CPCN would with the and tax see. just regulatory filings of we of we'll lot lay mix mix later see associated the is summer, with that in to We'll obviously talk of and should out, later but PPAs I equity this our timetable how both see call, the associated on more this out to sides JV would that,

Donald CapEx growth to that. to term profile, ask on it me let and about current relates talk As longer outlook the

Donald Brown

in is the the that likely we - about it's that of term about, that base to seeing And account into long next Yes, extend beyond the so talked horizon. we here's plan that think XXXX, growth generation for what the investment here looks I XXXX again, guidance take investments. quarter, talk XXXX like we've what we're third the terms over and can be expect in to

David Peters

Great. And another question had CapEx. that the just until then $XXX being we say, about how or Is next on soon should or just deferred think I after XXXX year million million? that $XXX

Donald Brown

it reduction at it's work as but look to need obviously, I'd - we a that this it's year, do.

when find those make We future. have to investments will - would determine we in the

haven't long-term far what it's that impact but that in making or the We - say XXXX looked that business. XXXX, we're ultimately, might out how investments to

Operator

comes Sachs. next Insoo Kim Goldman Your question with from

open. is line Your

Insoo Kim

electric, color is a on you the My NIPSCO serve? on could customers bit give commercial and more you first industrial types just question of - little business that

Joseph Hamrock

me Yes, it. on let sure, touch

basis. and profile profile that from last probably, the for concentration low market perspective those us the was we of capacity ongoing energy intense a the petrochem you portion load to the shifts commitment the the is that structure under the firm steel I buy of notable as may customers, to case And a that of through part are new recall, with industrials, and a to implemented most rate think there. from on allows them profile year the rate the essentially have

you QX a a QX at for and is versus you sales, industrial sales, them for and note, us for significant that in that decline of 'XX if will 'XX, industrial other derisk of related of and our you'll to customers, look note which approach portion novel through. to buy A

on that that diversity of growing pretty there good the state industrial sectors remainder see some set QX well. we in and of electric design so of a loads, of of pretty did The 'XX by versus a QX diverse a part X.X% diverse about 'XX. remainder good and decline have we across and is it's there as development our So decline we industrial the sectors, set economic and commercial see

and load load would highlight the saw I We just profile.

customer. X% year-on-year noted on a versus down the on On If - the on side commercial the of residential results per sales was across for close and the by electric our that's trend residential of quarter pre-COVID the at quarter you we X%, of same footprint been all look up about load a to gas of were business, year, before, for which, and contrast, continuing one up side, use last one commercial quarter, impact. as bit

really So impacts on gas down side. And we're not in seeing COVID slightly that. the then industrial,

for, I - to see gone than our quarter we to the and picture you more So little increase as count a insight in there. sure whole added focus here. through we've continue first We customer asked was but want make the

Insoo Kim

question all a close outcome on you the utility into update That's Massachusetts give that is to really required just good on is, final other the on sale? color. an of latest And my and at timing the can incident DPU's investigation the Merrimack

Joseph Hamrock

on track. COVID even work right would you to home. that That on that. through progress stakeholders of We've the phases seen in implications for it all now that from as engaged work remains very process. People with good early continue expect, the We're, with

are way a related impact to that note would but Massachusetts, conditions, of including the expect And call, we pipeline to safety that of effort that resolve confident investigation. combined viewing we're the we as in and just might is all matters that noted earlier approaching the the COVID there workload that. working and as slight some this year, by third the close, of We the end delay the issues on possibility just to from quarter

table So it's mix all together. in essentially the the and on

Insoo Kim

Eversource? also the And sale just, is that to outcome the for completion of required

Joseph Hamrock

- a operations. we've again the an opportunity It's for together it's take the Well, of and all the put state again, - Eversource exit sale. NiSource ongoing matters for package the to to into comprehensive to

Operator

Weinstein Your Michael Suisse. from question Credit next comes with

Your line is open.

Michael Weinstein

long guidance the Just X% be of term X%. clear to about to

is XXXX, year which XXXX year that that XXXX year going not beyond? will of that You these in the from savings you're There the into flow offset expecting point base of sale a would be - base include would at Massachusetts, indicated additional of right? all an be and synergies that savings base to to cost

Joseph Hamrock

would expect be is There actually are there savings some of change I'd ongoing. that operations. the in that to timing

work about If transaction, a agreement years. got transaction part is up you to What services multiple a doing agreement lasts got that we've the that to this we've separate to XX in of months. think will do take

savings we we'll comes as advantage as the we as TSA a cost off what to so take the have we work couple make TSA opportunities. changes will well savings that structural those that and some take looks we we profile, to of because our other years. like, analyze expect do that time, immediately, won't of that And But have can as over

Michael Weinstein

you're about of you. completed? a sale so saying or the after that is Got you're still And $X.XX it's expecting synergies ETS

Joseph Hamrock

could it the that the in savings. - see of being range in I range

Michael Weinstein

On is partners on an involved partners here new you of we kind are expecting, - NIPSCO. wind that indicated investments that? and generation, talking else what non-related the on generation arrangement financial to Are talking equity you're will about or something some about the there tax be we projects

Donald Brown

right. That's right, that's

the re-base utility able at of related renewable support to those are equity take able to advantage to partners those investments. credits being be We looking tax investments to and the tax

Michael Weinstein

increase? exit more period, at at that five-year the recapture those mean that gain and re-base NIPSCO the the would that does that of equity to the point, investment want tax partners So would period investment would end of

Donald Brown

structured build-own-transfer that a Yes. it's it's The time over way arrangement.

would up pick the be would joint more of where ventures. there time, steps overall over we So

Operator

Your with Jefferies. Sighinolfi comes from Chris next question

is line open. Your

Chris Sighinolfi

last up a on Joe. that Maybe question, follow

attributes think just of having you you'd a of that? give Can - about particular you of talked the or you a a NiSource wondering, budget the breakdown a investing that time? particular the be had partners, any through in constraints project? the combination component things but of Just the period Is also capital just that IRP yourself. sense about you allocation of that that Is I'm with about of how how of time? just that us think

Joseph Hamrock

and PPA some balances for we XX%-ish all about RFP continuing JV the optimize the as bids, set right really opportunities the kind key bids but as solution mix had evaluation, customer we that's looks us, operating mix It's When go the cost or JV - and and ownership of for the cost to we to with and portfolio, target either starting PPA zone that optimizing analyze a like the that with could blend bids, straight and to the a in is customer of continuing right best and that now. we're what negotiation us subject that's structure driver. the

Chris Sighinolfi

think as process to that's earlier later more or something I fairly - something So the any on that's be the color participation can profile IRP expect that about mix constant that do or have is through we in you that? or shift could you guess, give NIPSCO time

Joseph Hamrock

Yes.

we take we'll investment for but that, as a all best think and of that step our and a interest We go one I say opportunities way want I certainly for preference opportunities ownership at a would of to that balanced do look want time we to reflects we a through. have the in stakeholders.

a look and of each at at independent time. so we'll an portfolio in in the step a point And kind take basis each on tranche this, needs

Chris Sighinolfi

I you the change talked certainly rate recession... in two and earlier of also and kind there's set dynamic other questions. an - just last Okay, about the since NIPSCO maybe I clearly, the question was great. about customer had

Joseph Hamrock

Right.

Chris Sighinolfi

dynamic if performance point 'XX-'XX know do different off a still impacts out as in that, not since is there inform things from I know COVID been looked and business. set company that at the curious, assessing you the but you're of there to some how time that like just has were time, the Columbia through And that is just clearly have learnings we on is back would the that you different, that still any spun think I this maybe gone of time the but and since are and proxy Pipeline just quite you're or things, versus Donald that and economic thoughts you just curious, and giving an maybe I'm if that - any that. time other any time guidance this a Columbia maybe obviously about component, bit

Joseph Hamrock

but it from you a what's different you particular and difficult and Yes. this and as different about because about around depths a almost highlighted a we've good, reference reference seeing very the of thing It's all good it's one today that, see question, case, you it duration. and set circumstances. what's Donald could which sector-by-sector, different is you're And is said use as adjust

back maybe bounce recovery to little likely that Some and where that bounce stronger, might bit right are might actually a they back this. to back and slower some see don't recover prior were to

almost that the get looks carefully are those blend seven if blend states unique XXXX, very different analyzing will, or And of recovery like. sectors our it's and of you indicators, into across what we we trying to of that six-states and sector-by-sector go as

in industrials better And different. in of positioned We what different to you it's I 'XX, structure rate the very noted, ultimately, experienced faced Pipeline on a level trying the in and hedged as is the our next without with of the Group get early to We're and detail more our that, mix start have, at better than risks you so to we you here. profile but now so noted 'XX for that, protections place, look as large we're some to think or different speak. we when against

it's QX the business QX, of even you pretty we'll part, shoulders. months soon. And and will So out then of become that the for when give seeing by get economic beyond why Donald step think it's most the going I see of more that's we're whole indicators ultimately the in question much of leading that I to starts being end - and as of shoulder through to recovery think, we we're better noted, what QX, for QX, really both the for April a sense our more a we'll as duration be

I want forward that, to overly overly more and pessimistic. on So not try careful either to optimistic looking to having be to be or depth detail

to through step I just have think we wide this eyes with open.

Chris Sighinolfi

That's discussions and know stands insurance Sure. guess, in me, have that the question like. Massachusetts, pay somewhat just to attention the Joe, points those regard given to where know well. been in asset terms as of I and final Qs We'll is guys you recoveries you've updates I'm I helpful. I the what from your cautious on with data just those about look curious front. any anticipating

Donald Brown

still guidance still them. the to even the any too litigation The - was on midst our last insurer. with property type with timing, It's we be filed continue constructive of we're we're might in in conversations any having recovery the what discussions of quarter say are give early but that Yes, to have but conversations. - I'd or there

Chris Sighinolfi

or just anticipate, that for to length normal speculate? it everyone's you'd time Is a to unique and Donald, the even take process like in too there of is is that range wider

Donald Brown

Yes, it situation is. negotiations. very providing the terms information well that every as you're It's in as unique is - of the

Operator

[Operator Instructions] from Your Fishman question Charles with Morningstar. next comes

line open. Your is

Charles Fishman

for delay $XXX because maybe It one reduction correct? customers appetite just more timing was like like some Is my things rate issue. supply point this to that rate million of CapEx rather it incremental regulators read Joe, than cases, sounded decision of of of the year. projects on take increase, chain the clarification a or a to that of

Joseph Hamrock

our prudent want it, XX portfolio, taking step been a for earlier, dated this, last we're consistent this same on sure more it's we've as to go. of flow here puts It's on like as likely we the tight recognizing in take for steps couple little which through neither. the make with capital of managing been. cash the - the a where nature year and talked to us And Donald prudent long when while way by we're years, noted about just and by a really and spot is we've XX we It's profile

This a bit. year, elevated it was

blended timing So maintenance it's capital, and tracked initiatives across just capital really both and of probably our capital. growth key

likely the very future. to So on a effect just have modest

Charles Fishman

investments. two more says, that shows now, bars over question of we at come expect the go on where your to seen I - you're In it XX other future? to I another mean - words, bars should months, should keeps chart bottom, XX%, yet higher, recovery up some obviously the are seem go recovery related at a the then those is than this should little those and I we the shorter down upper XX% a or which the getting slide, which down time, to little, up, time but what XX% you And to, is Every we've CapEx. Slide greater look XX, good. expect two correct, just but than those greater within in upper

Joseph Hamrock

move $XX the pullback $XXX and you term. how the roughly that your of $XX good little long million, categories, question those roughly Yes, bit XXXX a notice million, across different and a it's because question million a that moved may ultimately good insight and roughly that into million, but the we've $XX will nature lands, it's about

the a had that the backwards, some look you projects we in projects larger and more mix the mix electric pronounced If shift you'd and transmission generation were back that's in few larger years. why see

of is the replacement As investments we next unless couple what the here talking likely about, to get years, see continue to to you go we'll forward, and been that portfolio. what the generation until we've be see you

years cases short maintenance there time, We obviously, category show for rate with and in as periodic a period that combined but likely of couple or for those have those an see would a that see We'd of investments. the we'd strategy what of view regulatory other. the excursion on a we up kind of

Operator

Hamrock at time. further the no now I are questions turn closing There back will over remarks. call for Joe this to

Joseph Hamrock

to Mariyama, thanks support Thanks, you and of your for and interest of NiSource. all in continued

opportunity. about forward all us, the continue any communities and our the is to appreciate of we'll we're stay Please We stakeholders, talk look through safe. any all thoughtfully we and transparent share outlook and serve As case on COVID see to you for with business. the implications crisis today of around next navigating stay the our this we time and and and carefully

Operator

Ladies and gentlemen, you participating. call. concludes Thank this for today's conference

disconnect. now You may

NiSource (NI) 6 May 202020 Q1 Earnings call transcript