Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today.

At this time, I would like to welcome everyone to the Second Quarter 2023 NiSource Earnings Conference Call. [Operator Instructions]. Thank you.

to Investor call Relations. pleasure Turnure, to my of Director now turn over today's Chris It's

Christopher Turnure

Good Second Call. Quarter and XXXX morning, welcome Earnings to the NiSource

Joining presentation as Commercial The is Anderson; President, Executive President Officer, President Vice of and Chief Investor President President and Group purpose of performance Risk NiSource of Hulen. the Chief operations Luhrs, XXXX this update Vice me review Melody and Executive and Executive quarter President Birmingham; Chief and Shawn and our Yates; Michael Vice Executive Officer, Financial Strategy today for are to Officer; Utilities, Treasurer, Relations growth financial provide NiSource's of Lloyd Randy drivers. and on and second as an well Vice

open to for call prepared Following of your in Investor we'll our call today's website. Relations remarks, Slides our the section available are questions. the

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

information of a this the of the and supplemental for statements full most relate Additionally, measure the some measures. measures. directly GAAP reconciliation made call on refer and non-GAAP schedules financial to on comparable Please to slides, these information segment

like to now Lloyd. I'd turn the to over call

Lloyd Yates

earnings earlier Good Hopefully, second joining chance read us. you've issued morning, all you today. quarter a Chris. everyone, to for Thanks, had our thank and release

key an Slide update on X you begin to on our with X priorities. I'll provide

to half non-GAAP the upper $X.XX. our NOEPS raising XXXX of are we First, guidance $X.XX

remain reaffirming plan. the growth well X% to of our non-GAAP O&M We in base of XX%. XXXX, through to X% the XXXX an duration are target as to Meanwhile, is of throughout annual flat non-tracked as rate growth our X% NOEPS also annual

track do. of is and and $X.XX our November. raised Investor enabled a we to and range. NOEPS record building today, investors, our introduced $X.XX to are $X.XX, execution months earnings the this to discrete since our of growth, at Recall approximately XXXX in commitment We the we of February, continue raising again $X.XX to In everything half customers Day and estimate to upper in employees increase original narrowed financing to was and In operations, and central superior November, we have execution our this expectations. X regulatory our guidance

For our customers, commodity improving. market been conditions have

this, interest to remain highly rate focused Despite and our for value our to on continue financial headwinds we persist. visible, delivering inflation investors. and However, derisked results customers

Columbia this a was execution electric Second, to with of the a investment. our gas capital $XX particularly The and request quarter of distribution regulatory Gas our business, leading gas both adjust as busy Service filed base continued Maryland to approximately the recover Maryland million the businesses. approval Public for seeking request month seeks in May Commission, rates.

case originally Corporation the Columbia rate XXXX. of adjustment of in approximately approval in in $XXX a effect filed of recovery May, Gas into Additionally, initiating Ohio's among recovery authorizes rates [indiscernible] Columbia Gas Commission went capital of Virginia infrastructure the its rate replacement and of million State Virginia April parties base approved The of investment. program $XXX the million investment. capital base settlement

the stakeholders, Indiana Indiana be in case. with today company's XXXX. XXXX in dollars our balanced rate by March business, and rates in in the anticipated steps communities customers the to in the Northern electric We electric Commission reached billions Service for is March invests Utility anticipated record as order Public state. of and September final is effective A Regulatory from believe outcome represents back the settlement the company At a the closed

through received FERC, investment on our projects and financial for new reliability customer last rate plan our At beyond incentives base current electric X month, MISO we XXXX. supporting transmission approval

we to Lastly, announced Partners. NIPSCO June, minority agreement a in definitive stake to sell Infrastructure Blackstone a in

and of sheet balance NiSource's marks flexibility our for strengthens another stakeholders. execution example financial steadfast yet transaction The

enables us to ongoing it and X.X state. Indiana the customers and in our gas electric importantly, More support investments in million

invest capital Slide customers plan period, in our X XXXX, communities. expenditures In details through our our X-state annual service we and territory. across a X-year billion to $XX

County. At Nearly town's we be upgraded will service X replacing upgraded, next XX,XXX lines the pipe small in in Fredericktown feet are Columbia currently Pennsylvania, residents half have the customers of the Gas their of in years. to of with remaining Washington

Columbia of This a this Pennsylvania obligations. $X the master part meters, is million low-income meter helping project during capital company's individual in to from converting quarter housing lower a is authorities' the maintenance million Gas project, investment part As of second authority alone. $XXX system the to

Indiana. plan NIPSCO service Counties extend Allen [indiscernible] areas remains committed , to gas gas to Lake and the into including Northern in rural

miles local XX part rural gas and in teams services as plan. have area new June of X,XXX through installed projects major this year-to-date Our operating over installed of main

at city state of investment improve of side quarter. the of abandoning nearly X by safety pipe. installing in second Cumberland footprint, of new Maryland regulator low-pressure the of of $X amount an million bare steel are This Columbia capital abandoning other is along significant pipe total to crews the our On a stations, of during Gas part with in the

Slide activity to shows rate XXXX. in case since rider capital It X. Turn key select

last jurisdictions less X X filed Our across in with no than leading execution in cases regulatory the states continues X years. X

regulatory state groups. in key of are with constant and engagement customer a teams regulators Our communication cycle and intervenors,

regular cases, our of allow In investments. addition to and filings rate timely on capital tracker recovery general

robust activity on this of activity built in economic a is foundation our of states. All

$XX the to constructing Indiana Indiana in are for Southern Chicago new transportation of investment the this be to region. be state, Ohio, since and billion stimulate substations is anticipated under District of process new in chip provides the vital is and County, a Intel has and factory example, and Northwest mid-XXXX links It project service, Northern been constructing the outskirts transportation For Transportation investment of mobility Columbia The NIPSCO, customer. construction project. the County In on County, Ohio to a support will and estimated double-track major at improve in Gas job the is expand Intel in Cook Illinois, and accessibility Lake to we Columbus. the creation

expected In fleet. this Gas of Virginia, the year Coast X.X X maintaining is of with heat for later combined a and critical energy and primary expected Navy's and decatherms annually shipyards X power Virginia. a public Columbia security consumption be that play the installing East shipyard repair, efficiency, Norfolk to naval plant improve and in will is shipyard significantly facility, America's The complete role modernization of overhaul that million the

for annually and utility including across Favorable XXXX rates we have the and growing has manufacturing count our infrastructure date. driven by stable in migration thanks inbound to territories nonutility Customer demographic base, growing X.X% to on trends average and low to states robust been years, X% a tax serve.

our can underground standard recent for generating less Turning to indicate efficiently buffer where another internal safely for better, digging to operational advance occur, around element example to establishing of of is One excavators. infrastructure customers, efficiencies continue more X for especially Apollo third-party our safer, and aspects on million zones foundational by excellence value all teams has areas our cost. tracked, doing Project things our initiatives.

more underground last called needed. sites time to in trips XX,XXX eliminated facilities of value-added work. when zone, a to [indiscernible] Before spent months, allowing to excavation it wasn't We've out locate more unnecessary be X than being instituting the on

platform billion year, $X began transformation, with drive for Technology initiative. $XXX excellence our that X-year, implementation initial work also key efficiencies approximately Salesforce in our standardize to This improve to are technology investments practices we our to employees million will investment our service and operational an customers. and SAP

expected bill their and over contribute the be our employees levels and customer total financial to to commitment without this customers, to X-year These all inflation stakeholders. live achievements our keeping dedicated possible and would of All NiSource's is plan. communities not with

With that, Michael the to call I'll turn Luhrs. over

Michael Luhrs

utility-owned continuing optimize the process. of customers and to XXXX. I advance as total, coal-fired Thank customers for you, in advanced generation new represent XXX from project cost, In season. new serving the Bridge begin Crossroads megawatts are all generation is on by placed Dunns NIPSCO's investment their the Indiana peak Slide million Lloyd. to I'll and X X of economic, we end portfolio into generation the to transition $XXX over retire NIPSCO's and investments benefit solar summer projects approximately NIPSCO customers. integrated plan service resource renewable X fuel these XXXX now Northern has sustainable, X.

continues. expected Dunns II of of we Bridge date very Calgary Plus service Storage the service which mid-XXXX. of projects in been Storage Solar XXXX, has and Construction dates have Solar construction project, early stages in in the are expected Both in Solar and Fairbanks on Plus

PPA Wind is this X on expected work service and our Indiana late year. in Additionally, Crossroads advancing is

with portfolio several rules we adjustments projects changes challenges better of address, the constructs. remaining Today, development announcing portfolio capacity to and surrounding recent seasonal are MISO our to align

The the PPA to the transfer of first is agreement. project conversion build a Gibson

a the in replace approved, Elliott filed project portfolio. have from will approval CPCN IURC, We project the and this seeking if our

approval for have executed recently PPAs: we Solar, Wind. Templeton several Second, sought regulatory Appleseed

developers the terminated have and Finally, been the NIPSCO projects. PPAs the by agreement for mutually Brickyard of the Elliott and and PPA these Greensboro

Four key these points related projects. to

fuel and resources support zero continue affordability. customer First, these cost economical to

Second, support coal XXXX. by the our schedule end all retirement of retired coal current these of changes

and continue X rate to of consist in And PPAs. other fourth, our service portfolio CapEx generation is the to investment commitments Third, agreements base and of the XXXX X progress the renewable financing consistent end transfer X-year current by with prior revised build community. will the

balance this needed at XXXX. we to identified a our and triannual implementing site. XXXX of a our an further at NIPSCO station with the Michigan projects, integrated to project evaluate is our which IRP generation Sugar needs, resource year, gas RFP, RFP stakeholders continue portfolio Creek the station XXXX. Schahfer result groundwork the these and generating will projects XXXX upgrade in be alternatives the replace XXXX of and NIPSCO finalizing new conducting in we request generating analysis are processes Beyond process in to we for expect brownfield the will planning laid gas for our by City

we amount resources and both Since cost totaled to value year-to-date total per reduced build excess customers, economy-wide energy late back of inflation. and over million substantial passing In million. our XXXX, renewable Fuel especially project subsequent generation create for residential experience $X.X for or been alone, have volatility customers they elevated our $X commercial projects. went as in first quarter a that customer, customer from the $XX.X credits second this revenue and

progressing tax XXXX. As Prior Slide we on additional through included their and not our this in XX plan incorporates the streams. longer remaining in equity financing employed service we items to near Reduction financing are term, beneficially XXXX. financial Multiple list, projects and term and both renewable evaluation financial equity shows to tax in Act, XXXX the Inflation well look forward, in on guidance the opportunities CapEx work date, projects for X X our owned

new included while enhancing X and value pathways benefits for of ownership potentially the credits project CapEx we customers However, the the well IRA, projects, transfer evaluating given plan the in are for tax as the portfolio to incremental remaining of as adding each utilizing direct the for flexibility. build

investment build Act, stemming Federal on XXXX and are require on our leak We These have long-term advanced our in investments requirements. the investment proposed making working from been program. plans operational and repair we requirements also the leak other system would reduction, detection incremental which for through safety various will the our rules around

in the infrastructure support customers We emissions in to continue area be will best outcome of and for to active investment. terms this safety,

are gas NiSource remain current of X XX% goal on in we're emissions proud reduction GHG by from support customer XX% and Scope XXXX. X These decarbonization in sustainability. way. across net in we and and achieved enhancing baseline and X of X focus furthering by reduction advancing XXXX, Scope our emissions achieve clean an a on and energy our Scope X GHG very of NiSource, to and reduction our industry-leading track At XXXX, emissions track our our value Scope levels, record X balanced transition, and businesses goals a At year-end electric potential investments XXXX emission

named AAA MSCI ESG Newsweek, for by the of X are Sustainability America's In Best have XXXX as Ford's Responsible and by to we as by Most in rated and addition XXXX. Employers Dow Companies to Diversity being Index, Jones been for for recognized

offering. gas communities in sustainability and create customer benefits through customers operation passion customer our in our and and value drive reliability, electric to is Our of investment systems that safety, and for

now I'll to turn things Shawn. over

Shawn Anderson

per our XXXX. O&M compared constructive share Michael, XX and of to range morning, upper in year. million of range $X.XX from $XX.X transactions initiatives our Year-to-date track you, reviews share completion and results good half $X.XX Non-GAAP operating on $XX.X million or in or to financing $X.XX from our financial regulatory earnings results our have Thank outcomes, second everyone. this supported per net quarter the achieved Slide of the $X.XX the quarter of execution with Visibility to continue the line plan. to raising provided. second

key value across greater build and half indicated regulatory layer the drivers into results as drive fiscal impact XXXX results the in for our continue O&M financial year and last second quarter, we As actual to our year. full will of the into they

Turning XQ earnings in $XX an were XX, quarter results. same key to second million segment $XXX and versus you'll drivers the the find our Slide million Gas last operating detail increase Distribution quarter, of year. of

Indiana, and Kentucky Virginia Pennsylvania, $XX revenue, segment Non-tracked was drove New contributions million investment of trackers rates and Ohio, in general including flat as year-over-year. case well. rate positively Ohio, Capital impacted the gas Maryland. and incremental in capital Virginia O&M programs

Electric the segments. more return the management. related $XX $XX year. weather-normalized of and and quarter to million a last long-term and this increased in commercial decrease attributes usage headwind, a to related customer is primarily O&M were earnings vegetation versus in customer residential was outages due all to spend Lower segment, variance million also reliability demand nontracked X classes second to normal timing expenses quarter, Higher In the and operating industrial same the a of maintenance to generation the across

and to favorable reduced finally, insurance million And expenditures. was lower $XX third-party and Other due Corporate and costs by benefit primarily

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

Our rate facility the X.X%. and At securitization weighted debt quarter, cash the net XXXX credit interest available with we receivable $XX of billion a accounts programs. maintained and XX, was of XX under billion, liquidity long-term of our of which capacity as June $XX.X years and level maturity second debt weighted was our consisting of available billion, average of of end average a $X.X

and credit ratings. to to share X following We reviews all stable committed investment-grade minority announcement. with agencies interest the our outlooks NiSource remain have reaffirmed current I'm annual happy ratings their

and million fund plan XX-year Slide March issued $XXX $XXX portion our million XX use our these capital X.XX% notes an proceeds from commitments. of a at X.X% notes addresses June, additional the We financing In of of strategy and our of to we credit plan. to sale X-year, the notes.

units in units also by fall. we XXXX completing indicated, previously the on As plan equity transaction launched the remarketing this

debt minority rate the us arise of flexibility anticipated plan proceeds given deliver they anticipated as considering XX% annual equity when our us reaffirming for XXXX year. financing all ratio Day financing affords XX% Investor plan balanced This financing commitments. growth and to our investment in the FFO of November. opportunities XXXX discrete plan to credit in long-term This includes and earnings at are all reflected X originally years issuances disclosed costs This is We sale. equity on in on execute any through in and our the X are help to XXXX, adequate and ATM base

stake the It a NIPSCO. billions planned sale The and enables financing for flexibility to is and from also of balance communities years. enhances the Central sheet customers in investment coming of diversification and minority of our transaction traditional dollars markets. strengthens capital Indiana in our over our plan

down or period are utility are our Our transaction followed capital interest and to this for optimized in and decision utilities. cost pursue financing intention since we We equity valuations our paths. a of our of group the higher, as versus flat announcement June rates stated headwinds derisked generally transaction to November. originally capital Interest believe in sell alternative market a

strongly structures metrics sale balance and We in XX% with coming the sheet debt credit look ahead. proceeds and of Supportive activity, units, of regulatory the minority year the we are equity the coupled strength our FFO range. us to XX% later our to the as from optimistic about very this rate growing remarketing and in position

XXXX This long-term of regulatory complete of will Later of of and years provide period capital financial this we refresh and our all plans forecast. to the expenditure our an as commitments. and forward annual our look to financial year, we update our outer forward and to roll planning enable us expect

Columbia at we everything have energy parts NIPSCO expenses, falling and half the customers helped year. operating overall many our to core remain this our even customer of consumer bills commodity are sensitive Both companies, our Gas We inflationary pressures to do. as prices in first the impacting of

to fuel last fall. These seen our begin in Our commodity quarter, been mechanisms prices cost savings tool as back a pass the adjustment during critical every update extreme X over quickly the prices and therefore, customers years. to help have swings

versus customer commodity XXXX. an Second of customers bills million into insulate also customers companies mechanisms band mechanisms. portion decline benefit month residential per ranging $XX Gas translated other of gas both Pennsylvania businesses. Residential full second heating declined average quarter utilized utility portion a Ohio gas the normalization normalization on among across Weather rate investors of [indiscernible] for charges bills Columbia of customer quarter $X.XX across variable has our the This fuel in from to design and from our meters. in during fixed straight constructs across season, our the

in of impact adjusted flow EPS, excluded $X was is or periods. worth pretax, cash only X% for however, respectively, flow the from operations of million from million and The versus it's and noting our those weather cash $XX X% actual XQ year-to-date and impact normal our

we as base. broader investment Scale This flexibility and traditional approximately services jurisdictions customer systems. be of its grow and our also our across those multiple of can benefits companies, across energy X maintenance multiple is we across believe and as scale customers, drive million all enable base And operating expenditures. base investors for and to and our X greater diversity the operations another shared scale model customers. our The central flatten rate our supports can NiSource's opportunities companies affordability factor operating presents costs

I'd Finally, Lloyd started like today. conclude where to

of reiterating annual XXXX, are through to XX%. driven rate by our long-term annual We base to NOEPS growth commitment X% non-GAAP X% of X% growth

We XXXX range. and to upper our our $X.XX NOEPS range to execution, with range and further This original This in NOEPS to XXXX raising are $X.XX $X.XX. of range of our $X.XX exceeding record to narrowing of raising guidance $X.XX non-GAAP $X.XX in from $X.XX half guidance follows guidance offered $X.XX guidance achieving exceeding range in November. the including demonstrates the actual XXXX last our our XXXX track growing while guidance February

in and interest inflationary We plan rate persistent supply our headwinds. despite chain remain confident

execution a our to our We continue building everything do. is investors, track record of to central and growth, and and commitment employees we customers

you comments. for final Thank turn your to of over And support with things NiSource. I'll for Lloyd that,

Lloyd Yates

Thanks, settlement questions, received order, you case possible. for The modification. to from increase revenue the news Regulatory $X.X an of as see an billion. let review, appears NIPSCO rate community. Indiana initial reviewing if we And the highlights. give know of I'd we'll the just and $XXX is as We details anything investor Shawn. couple Commission And return in without -- increase the it some And increase like the a of approved team soon rate A the let Utility the electric late-breaking of and before take share over the slightly with of order base we has equity been upon on you me case. just X.X% different, million, NIPSCO's

we IURC and this a the team thank quarter, review solution. very to contribute their of diligence believe publicly the that the in all is what balanced I to want for stakeholders

And you. with open that, for floor questions. we'll the Thank

Operator

Instructions]. [Operator

is Guggenheim of Partners. from Pourreza Your line first Shar with question the

Shahriar Pourreza

for front a year the share morning. increased obviously, to of us? that get driving with part growth bit guys see to anything still as lowered, just what's the read especially the we good in of the it's little rate? peers this year to X% 'XX, confidence X% actually when Could level Lloyd, of And key guidance your there's whether about into you there thinking we're how of is maybe the

Lloyd Yates

the think drive to details. thing think second and savings half the we of the Shawn handle including when today, is execution the let the But great of had, Indiana year, by all about from I'll the contemplate you Apollo. to regulatory continue So I

that, Shawn? that it for turn to And over of I'll details with Shawn comment.

Shawn Anderson

Yes. Thanks, Lloyd. Appreciate question. the

per which Most that across said, you us success the execution and growth revenue line half over on rate the support consistent your of revenues regulatory the to Lloyd this balance of Slide XXXX enhanced businesses. half, share in and somewhere of or bring of [indiscernible] of our $X.XX That's QX year. filings across outcomes, which the second all regulated notably, drivers total sight gives the which if have as Just record may case implemented all the in of XXXX approved neighborhood of will attention X, you specifically been demonstrates observe and already second to year. in of the programs track

year execution transactions of debt financing to thus our Obviously, year, for capital got capital we've that we're we've have sight robust issuances concluded interest in paying to had some expense a of program Those this expenditure for the required of execute support going successful long-term the programs. really line XXXX. the rest to to the be good

definitely mentioned We're here are as success front Apollo. That we year. middle some Project programs O&M starting tailwinds the enhance use some launch to us of that on this give performance. will in Lloyd the can to those seeing

simply, of remain XXXX. And that results the to take for rate opportunity we annual X% again, OEPS other growth X% the each moment as this just note, plan. an year project I'll we piece remind of in folks, the confident rate I'd year-end to through just But growth off

plan now the flows So year of the of while NOEPS annual this guidance the we're the XX% the into period. half across upper range, targeting current through remainder

Shahriar Pourreza

I was That's to Terrific. Okay. sort trying get at. of what

how to actually think get about plan? could the about podium do there? EEI update? we incremental. be additional Is you sort that timing us mean, near-term Okay, the Slide can that Like right us? for how Even Is -- of it just results? good. range And when disclosures and can the that we size a should think hit maybe we help then when I year-end and slide, think XX, it I could the CapEx

Shawn Anderson

touch a in Yes. pass start, to to things components interesting that then might and Maybe I'll of Michael couple there. be I'll on

plan that long-term the But all time update November growth to capital expenditures rate, we in commitments, frame. including

I business. on we factors visibility much as think the look We'll provide at hit into and can So you head. the nail all as our

opportunities and know, support annual convert service, going sustainability, for to you at we NOEPS rate our that we've a how identified reliability, that teams As base planning We're that of system of which customer into The the is and efficiently investment studying got now. through investments shareholders. The high-quality focus results our process. backlog Xx those and really can are able time share right frame. in that, November we'll be access

Michael, you ideas do to on interesting But slide? want that hit any

Michael Luhrs

transition. to add thing gas it potential we continue with only mentioned the 'XX progressing to brownfield generation The work we going well more would that's different those IRP a to finalize the We that to before, associated relative the a commitments I'll and back terms. as we items, Shawn, options And also streams RFP in the about elements but work come When relative we continue site. work XXXX real in in to the new allow portfolio the remaining to potential for with the associated we think to addition the that, we us of the that . They of evaluate meet that, set mentioned are already that and to as on the through it. in that is the

Shahriar Pourreza

deals. specifics, further unless maybe can in? a in you I regs may. question, Got me, transaction acquisitive you with I already just the I a it. going into fantastic lastly if as highlight of that I to NiSource's is for mean appetite media grow potential Lloyd, of and you're about are your some states highlighting strategic especially then maybe good. know just specifics, just to that obviously so NIPSCO, guys thinking want guess, obviously, business nature you was into go banker But Without the you Okay. executed what some operate And the local obviously,

Lloyd Yates

to good that a way ask really was that question, Shar. So

start Let specific want don't to details. me comment there. I And on

don't room, course, of specific our market Of comment we companies, like most policies, details. course, on

is we results, We're I to really What on annually X% good Investor grow thinks, Board though off earnings on what think end transaction, growth. we is balance of XX.X% will getting that done. XX% the to you And what in of the sheet. our utility NIPSCO laser-focused as November going that and rate to strengthen only transaction review thought, this I our the a was did really, is I and our forth tell and last we contemplated, will on Day, year comment base out plan. X% back We laid are X% a I year, to team put we business

in focused and So is the the on. zeroing capital, $XX where of and NiSource mentioned laser that to year. transaction whole we an that is we growing this yet. on haven't earnings, team finished is way that That transaction, by operate We're transaction you excellent be finished end investing billion down of making sure

Shahriar Pourreza

asked guys. question way. sure Okay. Appreciate it, Great. I'm someone that a different in

Lloyd Yates

Yours was good.

Operator

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

Richard Sunderland

clearly? through coming I Am

Lloyd Yates

Yes, you are.

Richard Sunderland

to seems changes But neutral way color like about? I it in outlined little it versus earlier to Great. in you worked give contemplated the more of all became and slides Circling anything on can just how out underpinning PPA back X to out effectively the ownership renewables highlight of basis. you that? mean, process changes more curious bit there, a could you backdrop there's a of if project those the

Michael Luhrs

looking consist X we base CapEx Sure. mean it, to X and transfer will to current Happy and we're at so rate our them. PPAs, consistently When more options your to look customer portfolio associated financing optimize continue we're question, for you. commitments. But sure delivery with we're making into of best I Thank other looking eliminating always and costs risk to build little project the with to get X-year the just providing prior projects, revised a and agreements bit those the do through associated we reinforce, portfolio with so. consistent that is

you're as development at site being seeing that it, with and that's best we portfolio, what looked to through different activities So optimize go here. how and done we

by set able the being as a projects the in as way those and [indiscernible]. to able provide gives lot deliver these plans as it So doing us well to well in being up, of execute confidence those commitments meet the on we've and changes MISO customers them the and benefits

Richard Sunderland

there. for Understood. about the with update to thinking from evaluation. provision? least we sticking XX that an expect resolved with Slide update? you the an for time Understood. out under in outlook helpful renewables, additional that the item fall that asset uplift or but that ownership candidate fall opportunities, else anything mapped the Very point investment have out Is could is at in list And likely a And as

Michael Luhrs

So say as projects and go associated as those we we with and we through updates through like to information continue provide the IRC we with that. go stage, as provide other each to projects I will would just parties, Gibson with the filing did we and

that ownership, as as included ownership, to now the But the before, the ownership, that the X burden, able conclude right analysis regulatory full CapEx. evaluation policy benefits remove mentioned maintain require finishing in equity approval, X gives be tax This would we relative which plan full we're our the there optimize to remaining if If both were And up that of for under benefits full in finishing But IRA. administrative and projects. additional to and so, our we're at and tax in to optimization. to the all look to well billion doing $X if the pending complexity to asset, we project as IRA and that. -- significant ability the now, are portfolio with capability expect assumes

Richard Sunderland

Understood.

Is So ownership the current you're placeholder incremental to $X what a full be that saying? scenario. billion under clear, that's to

Michael Luhrs

Yes.

look plan for done tax was regulatory plan, current when if assumes billion X equity the additional $X Pending would ownership approvals, So full any the it you up at current in all to projects. CapEx. be

Richard Sunderland

Got it. me. it. one And quick for Got one final

this and as to stakeholders in get relative Just highlight of initiative? of you out? other in here, Project new Apollo, to out the for terms this roll employees in learnings any Or launch kind the what initial anything spring the along as you you're what further you seeing laid around

Lloyd Yates

so that thanks asking for Yes, question.

we're for more employees finding what savings. cost think better excited seeing and ideas I is and getting

what down work and into getting employees after I think and up it. holds you we're the more getting organization, them drill when know done,

be better, continue But and a safer, on for this finding do and We're improvement significant employee-driven It's process time. driven more is the to think it mindset. will an efficiently. really long this driving expect I things ideas. continuous faster to company this again, throughout and a I savings, we're

the it fact, and forward year to in now, process expect savings more beyond. next acceleration savings. start But In XXXX even for I delivering looking accelerating

Richard Sunderland

the for thanks Great to hear, time today. and

Operator

is line question from next Research. the Fleishman of Wolfe Steve with Your

Steven Fleishman

-- apologize Yes, -- Just I Lloyd.

kind repeat to the just adjustments what go Just -- Again, just of in and cancellations? the this, but has apologize renewables prior program? the could of from program changed maybe terms through you changes in actually

Lloyd Yates

Michael?

Michael Luhrs

so. do to Happy Sure.

So that look included it, is as when originally IURC the filed. Gibson, you at by was by the being was assuming replaced that approved

filed the that, with addition to we IURC. added have several been which and PPAs, In PPAs terminated several also

Wind, with Templeton IURC fundamental are all and at filed now, the Wind, Carpenter really look changes. Appleseed Solar those So you are

So before. we BTAs had X

we like X We Carpenter to Appleseed now, it's Brickyard have Templeton X Those have in And and Greensboro versus before, we terminated. have those Gibson. PPAs now. PPAs it's Solar just and and and Gibson. were BTAs X And Wind Elliott

Steven Fleishman

the PPA? new And three

Shawn Anderson

Sorry.

Just forecast billion thing would yes. real NIPSCO to of quick. those add the $X.X billion $X only investment is with The be unchanged, I'd changes,

Steven Fleishman

Got it. new you have with? who announced And the PPAs, they're

Lloyd Yates

they with with. who are that them, I We've and done in we the those believe said filings filings, associated have

Steven Fleishman

have top Okay. of that just off Do you head, or? your

Michael Luhrs

back get on to that. you We'll

Lloyd Yates

with Yes. get will to names. those back you

Steven Fleishman

message use terms then equity PPAs, not have able remixing obviously, tax of the there's [indiscernible]. same you're everything. opportunity if use to to amount CapEx of And -- this program, Okay. in upside Overall, same is

Okay.

Michael Luhrs

That's correct.

Steven Fleishman

IURC support Okay. just of overall then And the Yes. much [indiscernible]? like strong, of the are the these program how remains the

Lloyd Yates

been I renewables the in benefit IURC, good think I amount engagement of the The customers, with what there's IURC, the the support very think program. case is what got for think And commercial customers, that of we're think approval, stakeholder it, engagement filings. the seeing legislators. settlement, done general, the the I And Indiana drove stakeholder this upfront, State it's rate I industrial of

we're perspective clean sense this support we state doing energy very a a really way continue IURC that So not believe from the have believe, perspective. think and in transition from know we and we we makes a Indiana, good the we of in -- reliability and that

Operator

Your with line of Dumoulin-Smith Julien comes next America. question from the of Bank

Julien Dumoulin-Smith

on of moment you a talked to wanted upside few put out up there you just ago. a Look, follow guys the last tidbits on about generation just the

to want this. clarify Just

can upside in your turn, out agencies? as just that clarify does here needs? service the First there. in equity on just status $X any there's To well some know off, conversation with tax then credit MISO amongst as you've on that billion rating that shift capacity the others potential front extent territories. been I incremental bit, angle seen you the what contemplate And across load

If front? you on can us that update

Shawn Anderson

Yes.

this piece first Julien, of Shawn. The the question, is and

the load The Said to we and currently is to and first be IRP construct. that the that factored necessary that next around serve it requirements into captured XXXX load $X with of would load planning. That differently, footprint communities, upside commercially so Incremental that you're question, piece incremental of would our the the as we're not billion. projected generation year. engaged be the we provided the us in the capture IRP alluding the in factors scenarios next capacity existing rerun IRP would future assets load and captured any next XXXX, to for

we'll for be in should calculating purposes that would the part of of and That continue that of evaluating with the But credit credit to tax rating that tax GAAP with line transfers expect engaged agencies their and treatment continue consistent track understand seems And we they through result credit with question, consistent rating increasing accounting flowing and methodology that. agencies accounting. with then our we credit evaluation. are as us, GAAP stay second the to your FFO, tax transfers the FFO,

Julien Dumoulin-Smith

can And Got back Lloyd, again, come can. open to we it. then, that if and just Excellent.

here, thresholds Any commentary to [indiscernible]. I Any good the you as running Just very as is. the very obviously, X laid got start commentary nice obviously, you've on earlier. mean, a stark to? pretty a out front? on here that plan I further obviously, mean, the is mean, strategic on I front that you think would

Lloyd Yates

Right.

I $XX base. billion investing of capital we're -- at rate we're mean, So Xx

value sell at an Someone but of than wants probability less low, that really us that the think our to is that, significant I focus asset shareholder creates is plan. our

Julien Dumoulin-Smith

All right. Awesome.

Sorry, Good I'll leave guys. luck, be. that

Operator

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

Durgesh Chopra

$X and CapEx I equity upside. the just to to tax wanted go clarify back the billion

plan, I of in have there those there's in -- And tax a this you equity if tax more I that it. BATs about the upside those follow this is in $X X currently billion Am correctly? projects. within thinking the X or with So that results the correctly, IRA potential equity CapEx

Michael Luhrs

All X projects assume It right the would the X X. be now tax plan for remaining equity. of in the projects

So it if Dunns and Fairbanks regulatory be billion Bridge incremental Cavalry would under II and to Solar approval those CapEx. that pending and ownership, be Solar with it associated were $X projects an for those projects, Storage, the Storage, remaining X Gibson, up would full in

side and at is sure on to I up I'd we era follow want to previous mix Templeton them, look it the next benefits, got Appleseed, sure just that obviously, thing making Carpenter to the that And EDPR. And add question and make due and when for to we is full from right, the do only that. customer the we're on the diligence is

Durgesh Chopra

Got it.

Okay.

you billion what X XX% should about ATM growth you I the in answer this this XXXX makes CapEx? Is still that maybe part the about just -- right, is how rule laid which think beyond of maybe opportunities. Day, at of So That's we but you And a of remaining think a of out think CapEx? and sense. this that one, incremental good Investor on as we financing equity, can debt was X. thumb lot question. That just XX% was -- can incremental Shawn, maybe -- $X

part And potential time and you on XXXX or or equity the of frame do before see like frame? year the time X, projects ATM depending these next

Shawn Anderson

the Appreciate question.

there's point, at plan financing we Investor in November. shared So this the at no Day our to change

the reiterate, issuances latter planned the half of So no until plan, with maintenance horizon. no of life equity this discrete equity the to just includes beginning towards new to equity XXXX, ATM the

receive the equity units As some additional transaction we there. marketing that we complete proceeds into for XXXX, entered we'll

need that in cap As you credit should towards received we and proceeds Blackstone. relative XX% we to could FFO use to to a identify XX% be XX% FFO to close will to the in debt range, apply cushion the we us credit That We'll but with we the should CapEx a cushion to debt. opportunities. XX% provide to when know, XXXX transaction incremental we

those flow like, doing of expect inclusive evaluating plan right throughout create impact and the could currently what look as What equity tax our financing our cash we're will opportunities is out of and how that now coming then you'd that incremental business, would entire capital how horizon.

we expect what works. and consistent that, of plan in are we the it's you exactly tell step we've the still a how early with so to to But too the November through made made be All financing Investor to able time that itself bit Day. commitments frame in

Operator

Ryan the of Citi. Your is question line Levine with from next

Ryan Levine

a project follow-ups. the these why you make for I of changes drove guess now? outlined? couple solar, your changes all that What portfolio appreciate I details on the And

Michael Luhrs

of sure we're the work we process projects negotiating we the through the -- we're in go eliminating as benefits. to developing Well, always agreements, and bringing risk that the to through and normal looking projects develop as make and just the how

able to individual and That or so with the portfolio site, And each So be of with we development plan. to it's the with associated process it with whether what have that cetera. development it. development, to also working had individual projects. of the We with planned, normal we're costs subcomponents that's therefore, associated projects, on costs enable led combine these really, that flexibility through do associated flexibility you to a fundamentally want certain customers, with we benefit us provide and the et to to best project associated how plan siting, to robust try as just opportunities that construction exactly know in maintain that goes that no have changes

Ryan Levine

you when that then investment to think of some a you're And And numbers what's working around have a the better do you'll point related time opportunity? uptake? transmission have milestones on the better to -- that line sense or

Michael Luhrs

I'm that? you repeat sorry, opportunity? can which For

Ryan Levine

you that in upside CapEx identified slide? the For your

Michael Luhrs

Yes.

be the So the associated at significant looking additional do to it requirements. know there analysis We we're that with that continuing would .

can those We or our have benefit well relative mean to specific best what and promulgated are that CapEx and as customers. laid team plans. the well timeline on what those those But rules yet is -- engaged, we're a activities we how financial through how working not out well as associated engaged and would with or underway

Ryan Levine

can Think timeline? this a you'll you is be able next Or in to have Or decision this year around color point? plan share a any year?

Lloyd Yates

our plans we through that an think out. it We'll more via we'll or those working Whether process in be November. formalized them. have have them soon as as earnings you we're call, EEI laid I and get to

Operator

[Operator Instructions].

next Your Travis Miller is from question of the Morningstar. with line

Travis Miller

been outlook? a leading to the level, high biggest and that Just But what's the you at and then November this higher that surprise is to to gave you mentioned different about if of surprise? outlook year has think back today, what's year come this a the for go you about earnings that variables. forward couple Now big

Lloyd Yates

say a ability regulatory would to sit the I more years, confidence front. as in you, seat, execute in X.X our the to I on over little So

I think we that superior just capabilities. have really regulatory execution

place, management They're really at given confidence look management really probably becoming As really and to best lot team team. us gains, together. it's more working in better investors. have the I working management more industry, and this more so in the And earnings teams our to we've here,and put so a this it's savings momentum I'm without of risk and well operational we're I X side the deliver well spend savings taking additional operating excellence. but time in the on seeing -- on confidence cost

better doing and on we're our communities, and think working here in customer like side employees better the I our better.

across rising of think I overall all NiSource. an So it's confidence

Travis Miller

more to be what outside then now and are right whether energy renewables or of much ownership, necessary, pipeline in execute of your you How much renewable And PPA the what That's the is that projections on great. coal in more have it's type retirement, do other retirements, able it's Okay. how think? or capacity? looking coal to regardless some you with full at of you you've announced whether

Michael Luhrs

So work with we haven't completed the that. associated

we in there's placeholder in included the CapEx As the plan. mentioned, additional

work We mix beyond a what we XXXX the retirement will which billion have done the continue initial we that $X have that is of diverse with from But work, of concluding. which [indiscernible]. that, around at fill is CapEx, the significant RFP look of to associated assets relative opportunities XXXX that targeted to

to updates associated as we So work that. go have the continuing is to more the with 'XX finalize RFP We'll we're it continuing. through Q, work next and

Travis Miller

I great. Okay. it. appreciate That's all I had.

Operator

thank questions no call. this you Ladies your today's further gentlemen, and are This time. There at for concludes participation.

You may now disconnect.

NiSource (NI) 2 Aug 232023 Q2 Earnings call transcript