NiSource (NI) 2 Nov 202020 Q3 Earnings call transcript

Company Profile

Participants

Nick Drew	Director, IR & Finance
Joseph Hamrock	President, CEO & Director
Donald Brown	EVP, CFO & President, NiSource Corporate Services
Shawn Anderson	Chief Strategy & Risk Officer
Randy Hulen	VP, IR & Treasurer
Shahriar Pourreza	Guggenheim Securities
Michael Weinstein	Crédit Suisse
Julien Dumoulin-Smith	Bank of America Merrill Lynch
Richard Sunderland	JPMorgan Chase & Co.
Durgesh Chopra	Evercore ISI
Charles Fishman	Morningstar
Insoo Kim	Goldman Sachs Group
Andrew Levi	HITE Hedge

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2020 NiSource Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your first speaker today, Mr. Nick Drew, Director of Investor Relations. Please go ahead.

Nick Drew

Amy. Thanks, welcome Third and Call. XXXX the to morning, Quarter NiSource Investor Good

Treasurer. Chief Officer; me our President, Financial our our Hamrock, of growth an provide update is our operations, are this to Investor performance Officer; and plans. NiSource's Executive financial Anderson, as The Joining the as third well Joe Brown, and Relations purpose drivers financing Chief and today our Randy and Hulen, Officer; for Donald Shawn quarter presentation review of Strategy XXXX, Vice on Risk Chief

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

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

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

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

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

Joseph Hamrock

electric to earnings utility value our With quarter you on home our us. morning. platform. path deliver you've Hopefully, its NiSource third a which earlier joining gas to regulated and from for to Nick. stretch, Good morning, read thank premium execute in XXX% everyone, Thanks, all had was a and XXXX chance continues this release, issued

expected our energy of focused programs to on X% drive and growth to X% operating annual are business. execution, to level XXXX. while continued in in renewable energy Our transition safety service of earnings These XX% thousands dedicated modernization our XXXX, investments net is NiSource. electric teams compound share through reducing per are of maintaining execution emissions asset our pandemic this the the from greenhouse reliable while Sustaining throughout to gas COVID-XX of employees by XXXX through testament safe, a and

With of of of and month, our solar Gas projects Massachusetts the sale we additional growth. the announcement storage foundation in Indiana, Columbia closing have last and future the of for strengthened energy

So let's dive of update, earnings Slide in non-GAAP $X.XX the quarter operating ago. year on into third same per share the to compared We X. starting quarter in net the a $X delivered

which regulatory continue cost efforts we continued are reducing impacts mitigation closely. management to monitor of Our and the COVID-XX, financial

priorities. modernization and an advanced transfer enhance with generation among safety to $X.X X make our continue underway Next transformational is well pandemic, and customers. Despite billion billion organizational our capital NiSource investments $X.X to Our representing as asset million designed investments NextEra the projects, efficiencies challenges XXXX in NIPSCO. our reaching and in maintain to build expect last investment initiative we renewable strategy our related service to capabilities, We affordable Indiana drive for to agreements top for and capital remain storage solar month $XXX for by

sale Gas regulatory X. the to Columbia the of of On and received assets October closed front, the Eversource, we on transaction approval of Massachusetts

of in received a capital in and our Ohio. update base our rate tracker Maryland gas in settlement program We reached case approval expenditure also latest

X% in per Investor to at we on $X XXXX to $X.X that an incremental opportunities and $X.XX, operating our and and near COVID through in through impact which to X% share net billion $X.X modernization across billion we XXXX, growth non-GAAP growth reaffirming and annual X% renewable X% annual generation to the today expected XXXX XXXX, earnings compound also to XXXX earnings investments reaffirming term. the the safety, $X.X billion $X.XX, with XXXX share $X.XX range XX. are per year in includes These include Day from of September provided XXXX, per growth financial of investment We guidance billion are for guidance of in of from

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

Donald Brown

Thanks, morning, everyone. Joe, and good

Looking by segment about at loss loss million our million relatively third to operating from electric X, increase The in $X.XX driven or quarter or we year-over-year flat nearly quarter. had XXXX. net results per results share in a non-GAAP results with $X per increased net earnings compared gas Slide was $X.XX of primarily operating $XX share, the of

share about per For compared the $XX to up year, are period earnings or same XXXX. million net the $X.XX of our operating

Looking COVID-driven operating earnings segment, revenue driven In X, put place investment by the in increased gas quarter by offset a our about was This decreases primarily slightly residential more the $X.X depreciation our offset of increase industrial up were million as and and driven revenues, accelerated Slide at million, COVID primarily operating excluding were by of net coal-fired in closely higher revenue commercial infrastructure of with measures earnings result in assets. management impact. cost in offset cost segment, the our our segment $XX sales, by to results depreciation XX electric sales, sales. higher for on by down generation

impact additional X. financial We Slide about Turning provide of details COVID-XX. to the

sales. quarter sales, we're and increased reconnection payment residential late which in lower We're impact debt COVID-XX are per as seeing third the and commercial as see, expenses. approximately industrial can per $X.XX other reduced you partially total and As bad of higher The offset also year-to-date. was $X.XX fees by share seeing and well share

already as non-GAAP expect expense to in XXXX currently by EPS scenario, $X.XX reductions reduced We has reduce was covet XXXX case under As guidance our base and been that regulatory amount I mentioned, this as well range. non-safety-related into our impact efforts. mitigation factored by EPS

date, infrastructure to While barriers our and programs we're monitoring safety pandemic it has or presented long-term to not closely, our the modernization significant growth.

in XXXX. billion capital continue earlier, mentioned of invest we to to Joe $X.XX As to expect $X.X

guidance CapEx the reaffirming Investor for guidance that CAGR Day. are outlined We and at EPS long-term we

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

Our that I will maturity years debt average on any debt. debt $XX.X billion that billion, and by average as approximately interest long-term completed rate weighted than basis long-term XX XX about was during debt quarter weighted liability of was through significant the management $X.X was interest average our The rate of the our level weighted points the September more about which X.XX%. transaction approximately for XX we lowered XXXX. note long-term removed need refinancing and was

At our As closed sale to used of Joe earlier, loan and other our billion, $X.X Columbia October net and of down in billion, assets we we of proceeds of under third on end consisting on accounts the securitization program. we quarter, of and net credit facility available the debt the cash produced October. liquidity our Massachusetts receivable X. our capacity which short-term of This Gas available mentioned term maintained about $X.X pay

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

and Taken together, a solid this long-term financial represents infrastructure foundation investments. our support safety to

to call some investment who businesses. to our like will and electric Joe, the I'd regulatory over infrastructure provide back Now turn from gas updates and

Joseph Hamrock

Thank you, Donald.

as upgrading and revenue the of our early new third invested we million in is Now in the April XXXX, Maryland, our utilities recovery approximately effective the in gas million improvement recovered Commission order for order Indiana, XXXX, long-term settlement Utilities our program $XX and the Slide is further reached for filed. An in program. rates In operations our supports before in of In and an application annual rates A XXXX, including to upgrade base base quarter approved XXXX. be The and distribution In on of replacement program Service Pennsylvania, with In expenditure through settlement investments to Public case would modernization system. existing extension parties approved million Maryland charge application including January The distribution application adjustments with fourth first increase and is update system our between as rate expected existing Earlier Ohio, program, adjustment XXXX. tracker million Regulatory the to November revenue, our the in million $XXX.X Utility the pending current in and covers order gas highlights gas September of through pipelines Commission XXXX. expected effect of continued $X.X January Public expected of allows let's new capital well natural us at million, rate annual approved the remains XXXX. May. invested NiSource the request storage become seeks tracker. as in, capital went capital in annual with tracker CEP Public result XXXX planned the look quarter $XXX X. The infrastructure in X-year The pending a some rider, the our in Utility starting revenue in XXXX. filed we in Indiana in under to safety an transmission, Commission latest of semiannual the new Commission. June if to maintain effective to case of into TDSIC nearly filed the modernize in increase capital under quarter, invest of or and $XXX quarter incremental our rates to begin with $X.X December

portfolio. on look operations on let's moment Shawn a generation our Slide will progress our electric in Now you at XX. update our transitioning

investments This well-established long-term to billion in I'll IURC electric TDSIC September, approved then, enhance XXXX, modernization covering between filed includes capital and enhancements program electric our million continue XXXX. than by XXXX and to in the $X.X execute infrastructure tracker Before our includes electric note safety June transmission In designed to program, that made distribution infrastructure approximately and more Indiana. in investments made XXXX. on The our July be in reliability. request, to update expected $XXX latest further plan system originally we we incremental through electric

rates XXXX. now IURC to our February renewable in projects. Shawn new talk effective XXXX, We with expect ask in generation I'll about an order January And

Shawn Anderson

you, Joe. Thank

month, of Cavalry I II representing service Dunns shared Energy Centers to we approximately XXXX $XXX and Energy Joe and last XXXX. Resources by within with be a projects, placed The investment and million announced solar construction capital expected Indiana As XXXX NextEra X across Solar are for the build transfer on into earlier, agreements Bridge and under NIPSCO.

assets. operate facilities, form unrelated some to facets of the ventures plan financial we construct these NextEra solar and storage and own, maintain joint will partners to and with

to our about placed We new be by begun to the underway has of construction renewables addition in expected Construction projects, project the capital will representing projects joint on the already EDP North this filings the a America, by the Indiana the and of be with Rosewater XXXX. Wells into venture wind tax also IURC portfolio Fargo in on wind, on million IURC with year, approved venture in joint is request end $XXX is equity and EDP end track year. supply these Crossroads, this partner, a by as service of service and, to with end of is investment.

underway $X.X billion through We currently the billion which billion negotiating approximately are replacement in expect to capacity an additional of need Inclusive of have of $XXX anticipated well continue $X in and we $XXX agreements for the to will XXXX. balance venture generation renewable expect projects, million investments investments. investment anticipated aforementioned of complete we million representing agreements, joint executed capital this to $X.XX at

also of well agreements power out needs. complete underway purchase capacity the are our to We to fill balance

expected Jordan is service by end and is construction under IURC-approved, Our the year. in be this Creek of project to

Greensboro PPAs Solar and and before are the storage Brickyard Our pending IURC.

in-service Brickyard and in develop Greensboro which Resources will mid-XXXX. expected are Energy NextEra

plan coal-fired all The over and by cleaner billion years. integrated In emissions PPA reduction which XXXX addition consistent XXXX negotiations, $X to renewable low-cost, in provides go a our generation nearly preferred designed our estimated generation and replaced electric negotiation, projects remaining additional all of pathway our and XX% customers anticipated to are and JVs to retire coal with are solar a to we to XXXX. which in resource wind be into an is by save in gas are drive of reliable by and These XXXX XXXX remaining is engaged expected the XX% greenhouse by XX retire plan, our service under XXXX options. to

the will turn I over to Now call back Joe.

Joseph Hamrock

you, Thank Shawn.

in you Petroleum approach value We're to and As want we're to gas and comprehensive implementation, covered see to across of mitigating continued identifying today, service our proactively safety provides Virginia, as our significant stakeholders. including with Kentucky, follows of can potential of system, to our management safety, to initiatives assessment well American safety. accomplishment few all of records, milestone our or approval including perform Ohio our on this I execute safety achieving XXXX regulatory line maps detection on foundational we've made we're accelerated long-term progress technology managing and states in thus We electric in and our on for for improvement deployment SMS all work. touch in continuing a of We year. our areas our risks. RP and pilot upgraded track as a quality leak construction businesses, emphasizing of which Institute's continual end far a by and received can on from in assurance the highlight to to deliver and advanced continuing make the our for commitment Pennsylvania mobile progress XXXX, what plan

gas Maryland, on continued We enhanced Kentucky install and have work Virginia. to our systems, monitoring low-pressure and automatic also devices in completed shutoff distribution with

to provides recognition. view services. SMS to we're taking and which also If for video American the The you that the enhance I'm payment our examples safety Investor of easier work portal steps for Business combine our do Day, to work Awards customer with which visit to to ensure we seamless safety Gold make into customer partners customers, nisource.com encourage introduced, to service experience, business our website it employees, and Stevie a brings with NiSource in work and business received you pleased we specific us customer including these its public. help bill the to life management did other has missed I to utility Award online our note XXXX with and account national recognized a and

the usage experience hard is Our high hope on history. at including customers work service that usage requests, of other energy enhanced and map in we their to benefits bring outage future, team digital customer alerts, improvements views

expect in the from higher future should their we needs. customers to more aiming Our know and meet us that are

and the call questions, opening few I'll key share your a Before takeaways. to reiterate

safety asset are electric our programs focused business. on to modernization teams of our Our continued and transition renewable our and in execution energy

growth impact net non-GAAP to provided Day share include our XX expect the reflects continue COVID-XX in XXXX, to These in $X.XX. guidance We The XXXX annual of in annual near-term to range which to remain and we $X.X from in billion $X.X at of per across safety, to earnings per $X.X September X% of $X.XX modernization in XXXX, deliver from XXXX place. on and to XXXX growth through X% of billion to investments XXXX. XXXX X% investments renewable X% incremental operating billion that compound through billion expected earnings Investor generation growth $X XXXX, with and share $X.XX an to from XXXX,

optimally and generation is transformational Our This making Next for renewable to ongoing affordability the customers. we our to underway to are capital is drive ensure NiSource enhance significant designed both be we enhancement organizational capabilities, investments. investments asset in continued initiative effort positioned will and support that our modernization and well efficiencies safety

our gas and ready Thank interest XXX% utility platform participating of support We're sale NiSource. to from value all our your in are states. for future premium questions. Amy? Massachusetts on electric you completion and With regulated X for we ongoing of across the the today of the your our firmly delivering take focused in assets, now and

Operator

Instructions]. [Operator

first from Pourreza line with Partners. today Our comes the Shar question Guggenheim of

Shahriar Pourreza

just of So questions. a couple quick

seemed First, fairly impact looking cost quarter mitigation the third the of COVID $X.XX strong. but at midpoint, you in sort the obviously reaffirmed impact, at usage and 'XX the

in updated into see progressing a So you're and where this So of wondering potentially about since that looking realities the guidance how COVID of in sort sort in an there planning we're of you trend sort 'XX is how results? we scenario are assumptions. than numbers some internal sort you're it, to to your of assuming contingency into already seeing XQ Or near-term the at could place, better progressing? thinking keep also, maintain the year-end 'XX are

think So how of do of sort that? we

Donald Brown

Shar, it's Donald.

So changes scenario our COVID, base our if for stated, seeing this bad also by we're scenario, commercial and in about that upon our at residential offset case outlined think lower see We're as scenario higher got the $X.XX we that's earlier. point, But based some we've we industrial continuing seeing not guidance really in expense. XXXX, revenues from that debt you certainly customers, customers. any our to

And watch are seeing progressed we'll into we COVID our continue time. continuing impacts forward provide we'll progress as time and gas our experience -- significant. this as into through heating this customers quarter we'll season, we business, heating As through first that have on say continue we is we're this quarter, it the in But I on the to updates season the would so we'll look that. if we'll really monitor our to -- we anything

Shahriar Pourreza

Donald. it, Got

to weeks quarter, your sort fourth the to in any not just seeing we're current of So you're assumptions? the reiterate, few in variation

Donald Brown

this No, not point. at

Joseph Hamrock

And Shar, it's Joe.

the One Shar the would with of seen keep said, the impacts. of -- you most our note is in essentially I the the volumetric electric residential COVID things one that and that, yet that through haven't third Donald rate note, would the the don't that things side on mind on as of shift decoupled, I And of so have are second season we seen structures heating quarters. the gas business, same side we've

look heating business. for into both season that's side the QX, so of as gas two all big quarters factored at QX thinking And our the we and the

Shahriar Pourreza

EEI? as Obviously, the sort like with XX of renewal Perfect. of the could And X prepared NextEra. this X you get update projects we announced what were Wondering recently then Joe negotiations, that Donald, announcement advanced an of commercial AND that. looks projects, obviously sort remarks, as for the were remaining highlighted in very your in you to soon highlighted timeline on

Shawn Anderson

from the This morning, question. Shar. Thanks to for is Great Good Shawn hear you. Anderson.

our transition journey. advance generation to continue We facets of all

agreements we're advance. teams to the the our have foremost, continued worked progress existing focused on and tirelessly of that First

construction process. in under those specifically, the or So regulatory

For it to look example, Creek Jordan Rosewater anticipate to we this of perhaps. year, operational even and by facilities and forward end the become

underway, commercial early both file the expect process As the do by the next well additional to and simultaneously. the it step we potential as end as year and information regulatory through commercial negotiations toward relates into perhaps to of any to this have year we agreements

this. So projects CPCN and also the the Dunns approval of file announced, we're Bridge II I, just expect we Cavalry by year. to on end focused for X well Meanwhile, underway this for

team us and just more quarter we're bring a very the have what plan to and lot across for to but board, share So going across the excited will fourth on for soon.

Shahriar Pourreza

it. Got

to just X are to that currently should update be negotiations, year-end the So reiterate, at the next XX so the in results. advanced

Shawn Anderson

Yes, that's so describe, correct. X this X was And to that X X that probably agreements didn't heat-free in XX we at range that to point.

Randy Hulen

is this Shar, Randy.

something. interject to Just

would You the you'll place, until likely progress that of takes to set We'll NIPSCO we done as press this next announcing see be at projects won't wait a with necessarily announce have and level. the the release results. year-end

starts, year-end, things be So something going are lot Shawn although a in-flight of a see new announced. mentioned, as not week to certainly you'll probably to in but by when EEI

it it year; next will the before be end year. of likely more So February necessarily won't be this of

Operator

Your today Suisse. with next line comes the from of Crédit Andres Sheppard question

Michael Weinstein

Weinstein actually. Mike It's

later be the process, that case, a and Dunns to a you for Cavalry, mean, establishes right? Just get it's not I guarantee prudence CPCN when CPCN clear on the of anything? rate for just

Joseph Hamrock

correct. correct. That's That's

Michael Weinstein

Greensboro the is PPAs for -- waiting will waiting that that Brickyard? Got for? for the you're on and the thing exact this you. Or yes, same thing, then same And you're

Shawn Anderson

Yes. Yes.

are waiting projects year-end. those by for those and still CPCN approval expect We for

Michael Weinstein

to projects, to That's Got needs to citing the finance that you. is to block And intended these timing you're just be 'XX? you. that's equity clear, for the 'XX right? why 'XX, 'XX Got

Donald Brown

we -- deal on we'll be to as of we'll off think equity That's hybrid the investments you of do XXXX. make those investments 'XX the convertible will need block top or ventures when correct. are And timing we -- need time once 'XX in that remaining whatever we those the joint about the equity to Yes, content period. in a off

Michael Weinstein

month? -- then two And you. receive the to Columbia on rate coming Got or? Maryland, expecting the you. something and or up issue, this next soon Is next they're that week or Gas case Got

Joseph Hamrock

have We an there. a We're that's correct. filed Yes, awaiting settlement order.

Michael Weinstein

an Awaiting order.

Okay.

first November? of have do So idea? half any is that month you This the usually, or

Joseph Hamrock

Yes.

Operator

comes Your from Harry today line of of America. next the with question Pollans Bank

Julien Dumoulin-Smith

Julien actually. It's here,

the can. equity-like think you weeks ideas the Just the just wanted about conceptually of potential thought do time following else about the strategy some follow-up anything real solutions, you are where Just asset think couple the How then evolution timing than back. at and strategic side. in any you up or 'XX, desires here nuanced few And Day relative equity you to if process? of A quickly, to ones especially monetization? floated around timing about think more of in that more Analyst your on a when you on

Donald Brown

of Julien, flexibility to in next out the for of year. or we've got terms the convertible hybrid markets -- the going timing

timing content to this at So on we equity again, those don't give point. have and specific the end looking you for any by be XXXX, greater of than Certainly will securities. XX%

analysis regards that And certainly, information, it's certainly to plan. to have optimization, we'd provide with portfolio is discuss, there's more we to if as as investors. the we updates something evaluate the ongoing As

Julien Dumoulin-Smith

hearing than for early equity hearing asset of alternatives or But an way is serious intention you if sales right? I'm it. basically, I'm Got say right, rather another you right to really it's how just if too now, one

Donald Brown

at same standpoint, continuing is of outlined we just and to and potential We're plan at still look a that to Day what is. financing we're the how plan that. on securities. plan finance pricing from It Investor The the look continuing we full those is

As those drives see value. evaluate at and portfolio what shareholder highest look the securities, we optimization we'll

Julien Dumoulin-Smith

it. Got

Shar's little And if sorry I and come back, a to go to back clarify bit question can.

say, here? impact, season seeing that context yet COVID the the impacts business the an gas much haven't we that and fact $X.XX this in through winter is electric versus, been about and year-over-year LDC from think you how When it. to alluded You COVID of of ongoing just the impacts

Donald Brown

I'd at almost of and electric, at that think where to We gas $X.XX gas in we -- look overall probably haven't Yes. level as ultimately, look see the of provided -- $X.XX the But we've have it's that out. Certainly, we'll electric. don't terms impacts to detail. I comes

Julien Dumoulin-Smith

little we in early Hence, saying range on some despite COVID here nice be already? that a Right. are you where tailwinds why year-to-date against might

Donald Brown

I going debt again, heating season. to see then the look a bad we're we standpoint, Yes. right. to mean, what's really And That's and sales into at from have as customer get the of We good impact in and far has there. debt, do limited we regulatory it's watch. have programs impact terms our this something but continue to bad really year, the that so

Operator

Your next question of Sunderland today JPMorgan. line comes from with the Richard

Richard Sunderland

Just number. following you from any up that question. that there real items impact COVID or for are impact included $X.XX then 'XX? One, regulatory quick stated could on the any specifically that that excluded proceedings And just two,

Donald Brown

Thanks for the question.

with changes that start this would in outlook impact that were number. additional regulatory. regulatory pursuing that we're any there regulatory Obviously, we not me Let could mechanisms, our point, At items significant would. any we if the pursue

I that now. we've we've right second that. the the programs so upon is I'm hand that baked sorry, in And got $X.XX got based And into missed question, what

Richard Sunderland

definitionally, specific to might really related that the of bid in actually any Just just be COVID wouldn't are, guess, from included that excluded the $X.XX? Or impact see but kind I items impact? anything that

Donald Brown

the debt expenses. and customers we're and we're sales us, from impacts, tracking safety categories tracking. fees expense, of are Those other kind might we that cleaning that for really bad collect No, key any

Richard Sunderland

results O&M just Great. this into dig O&M the The seem to And bit. strong. want little quarter then on a

one-off recur if to quantify it can Just in you XXXX? expect savings savings curious versus you

Donald Brown

down programs that the this temporary down, we've that year had most savings say year. slowed that non-safety I'd Yes, reductions we've or programs or of stopped we've reduced slowed this are in

And so expenses. I'd say they're more temporary

to XXXX. forward, long-term through about or to program, drive -- look we NiSource Next driven is really program our thinking costs that As lower designed

Richard Sunderland

follow-up real that. quick to just on And

So and the be aren't a savings in that really fair? significant driving 'XX? results Is currently from that driver program wouldn't necessarily

Donald Brown

in aren't the XXXX, -- beyond. impacts will in and significant programs driving results NiSource say XXXX I'd our Next but drive yet

Operator

next Your comes line the Evercore with Durgesh of Chopra ISI. question from

Durgesh Chopra

answered. of have questions Most my been

of And of going your view are are projects. projects doing gas your relates or blending and collaborating about you picture, test to Just outlook hydrogen be lot others peers own is gas X to and what just have it you hydrogen? your our LDCs. some as you system? there big and your extensive talk can assets Obviously, to with Maybe a

Joseph Hamrock

something transition we're at investment on It's and closely the our electric for we've Thanks, increased look our decarbonizing driven well as outlined, opportunities, Durgesh. as But natural programs, in programs the both and of That's economy, certainly forward monitoring. natural modernization asset renewable and as plan, see hydrogen we gas side. yet growth are by role gas we blending. of not our as part for a renewable safety,

area So opportunities additional more it's an well this monitoring at would that very time, information we're on of positioned. in what on that, But closely would more future. we're in insight watching. that I expect see to it's terms the and investment I consider something

always shale stress fundamental basis of the quite I'd key that's of belts and at demand. supply the things across if blending is much look is that there thing sit fuels. kind and been a kind we factor But The and really not where low introducing our one or you've conducive economics policies bit you territories just it also other cost creates headroom of of flipped the low over, And as we look a those forward. for volatility to has alternative renewables of

in we have to across territories. we're decarbonizing from environments, on gas current work our So environment, strong fundamentals natural environment both forward and because such the going bullish very a

Durgesh Chopra

follow-up. X That's quick helpful, just Maybe Joe.

update maybe anything you timeline -- to when that Massachusetts, proceeds there, insurance the and just know expect at any you could a On in all?

Shawn Anderson

still time through Yes, and no line. thanks. We're This is Shawn. working that from No what's anticipated reported, process. update

Operator

of Fishman Morningstar. with next Your Charles the question from comes line

Charles Fishman

questions guidance and questions quarterly my all think I answered. are

on Would expensive. electric And with Northern electric cold some the question parts but going be going be day. we Pennsylvania, all low have heating follow-up But you taxes, respect full had the with rates, higher we that what with day that in concerning got I a generation owns in somebody cold in you I gas and struggling we've was would had Let your the has same are capability area, I question question corporate needed to debate, up. BTUs do [indiscernible] facility would from and electric electric the for, prospect, my you, or weather? a a my of and that provides of a winter really basically deliver they'd Investor be fracking would be me place saw as income mean, of the and any then, dealing is, owns to Joe, due look heating. time, to happen month question Indiana, Is NIPSCO's mean, price as there at we to an at in wouldn't eventually caused to really -- that restrictions assets get go the on Indiana? since what utilities gas to [indiscernible] really see happen was that feasible? asked even would Day my would you're But like if in to I on electric a assume guess And Ohio electric gas. natural really is the own or kind cold that one the utility, obviously, really -- going if answers gas, great if similar. And And the Donald -- I in deliver out is you're candidates good. work to have the And Northern some to question the I somebody election facility really, currently there a BTUs electric could ago, I that the don't of even, at even where indicated combined economics I

Joseph Hamrock

Day for the thanks question and there insightful Charles, for from follow-up it's question. Investor because question the an Yes, your

you still look if you day on where both gas the have kind peak we're serve currently as in just battery the decarbonize the the day for to the supply of the If decarbonize configured, the storage electric in at peak And not itself, sides insightful a peak of grid especially those territory, the a and could least peak and or be both very gas. with positioned days. peak. full you to serve system component, NIPSCO at winter perhaps you winter customer that it's energy system question, and may those the familiar electric peak are you But we're renewables, that We both or scenarios across of the it's those and winter, equation, demand not there test really as days. a see but energy imagine certainly, therefore, and summer territories grid as And itself, profile, winter even well requirements that, at on the good with, look for we're our grid bed peak we're days. kind because that

there's blending engineering we to natural decarbonize potential renewable a to when lot part And itself through the So providing have to with stream for hydrogen multiple of resilience gas, the strategy to requirements is, fuel think see gas you and gas of the meeting as a sources. better without natural position natural gas. done way you question really a world how be your do customer

carbon the that that And And serve. the economics avoided pretty to a of did renewable it's challenging. this carbon carbon, it's question. an the we areas particularly energy The way that tough been significant converted about to So of per a grid it's ton it modernization have a high-cost complex the way in actually raised. question avoid to you -- most insightful There a cost required avoid grid. country, and upgraded are if studies it's you in of engineering

Charles Fishman

not the seeing. we're kind are really what's So areas that to people service policy on? mandates Is demonstrate of as assume that and some milder maybe in going how the would well -- this as I you feasibility government electrification just feasible your they climate of are in as regulators the

Joseph Hamrock

Yes.

absolute it's thing. not think such I an

really more electric in needs best role system best the I renewables, think of for natural complex of that picture it's than terms a gas, delivery role for what's what's energy the our best the country. the for what's

yes, think I for it's so it's no And either. electrification an don't question solution think a I gas. all don't

rely to this the are make our supply that viable resources resilience that solve we that got with of basin we've the we economy sure to on available us I think and have. the to keep

Charles Fishman

And And gas the thought on natural this guess utilities you, I as technically other work or your seems I it climates. but in weigh I'm because colder company economically asked having analyst, not Okay. just electrification. or the struggling in of distribution, making to but I'm discussion the it an just just --

Joseph Hamrock

I lot do Yes. perspective, think and that we do to we're work that. of you. with inform agree help There's a help to positioned to well

Operator

Your Sachs. next question with comes from the line Goldman of Insoo Kim

Insoo Kim

question quick one Just me. from

you you over that third -- basis interest bottom the embedded of talked of was refinancing to slide quarter, that term in And type Is points. rate guidance? in the by that longer you your when how dropped your average lowered XX your you lowering much of think rate about I line? and gave the --

Donald Brown

financing, our is long-term in When did question. for and It guidance financing our about it you that beyond. embedded think XXXX lower Great cost.

it's so does provide embedded for going forward. there savings And in us and

Insoo Kim

how the is get the it. utilities? more your just done Got versus yet. you savings to And I -- haven't much more at keep of that search

Donald Brown

of we when and and saving complex utility a Well, and because they necessarily little bit need overall utilities. think that's done in cash, from market course the is than I'd not go financing guidance I it those drop we -- about over out of that NiSource Their to those finance, to a more separately that's our think just external say doesn't that the plans. year, -- embedded savings why dollars standpoint do the the necessarily to financing are when finance actually

Insoo Kim

I side. think Virginia know and I at Maryland, we one. And think in I but the additional it. question, just one the your gas one Got about revenue said utilities, When residential and decoupling

you're your season, part your that the on head embedded of overall is impact away, when $X.XX any we for this then gave was demand decoupled that that the of point, when -- winter seeing will of on you benefit residential, into get XXXX? So for

Donald Brown

is That correct.

Operator

[Operator Instructions].

Your from next the Levi line HITE with question Hedge. comes Andrew of

Andrew Levi

follow-up selling some kind the whatever out of it assets, LDC, so threw to it's Analyst an definitely your possibility threw question, of you maybe on just and again selling today, out on So Day, Julien's may be.

first And bring unless you a just question around was possibility. so real that Is I wouldn't that that is, up guess correct? really my it

Joseph Hamrock

does record good messaging on business, of makes track executing examples separation the And spin Analyst changed sense, of of changes way. what's evaluating shareholders the most our Day. in said all interest our sale or the structural always not best matter we of Investor a and any we're at financing on So and assume course as portfolio Day, is evaluate got of the credit-supportive plan, that normal as the doing that to portfolio the We've that from long-term make pipeline of changes, in are when but we sure CMA that. hasn't our point a

we're that's just key So want conveying. the to what reiterate, that's message,

Andrew Levi

of be all what bit because around you're it as little just hire type would to to Meaning, that? significant and, doing what the takes process high event if LDC small equity you is as do about the it's not talk as that kind be issue very but be of of a that, you specifically can just your and thinking And a more please? much an on a even having kind company, and would obviously, that have obviously, puts level specific, to banker, far at stuff, that a

Joseph Hamrock

particular transaction evaluating as scenarios And earnings it as as all to know, Yes. the all credit like a going result loss of that about synergies have you like any we'd that, earnings We're the or of of flows that. that, anything trajectory. impact involves but and of a obviously to cost as can well the in not influence cash speculate manage to

So the and look we for toward alternatives anytime we're we value long-term our of contribution look look of the at looking companies at equity at the business, each we that. And drivers the at issuances.

Andrew Levi

market LDC? there's there smaller for think guys you Do a out strong

Joseph Hamrock

know. really Don't

Andrew Levi

return? Okay. And are any of your subsidiaries not earning their allowed

Joseph Hamrock

our our regulatory got states. in really constructive of all all support we've -- Now of

seen companies earn all have expect their our at our of -- return. of all allowed We and

sale course, CMA, different but we've a recent profile. Of of had that's the

Andrew Levi

Right. here? Right. next to the what it year? it or is step Is next you issue have with the decision of is to timing issue last equity And question the is, kind have in making you hybrid of year,

Joseph Hamrock

No, set we any for haven't timetable that.

Operator

for session Mr. the now to And I Joe call turn Hamrock. our concludes this today. question-and-answer back

Joseph Hamrock

continued your and support you, today and a and day. us NiSource. Amy. Thank make joining it thank And for in all great stay interest for Please you of safe,

Operator

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

You disconnect. may now

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