SR - Earnings call transcript Q4 2017

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Operator

Good day and welcome to the Spire Year End Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Scott Dudley, Managing Director, Investor Relations. ahead. go Please

Scott Dudley

Suzanne website morning webcast then end or Sitherwood, Good release to Events Lindsey, fiscal presentation from President Spire’s morning the Rasche, There’s the Thank from a Operations; CFO. and also call. website our and you and We year slide our that access earnings either call you Steve accompanies from today and and President webcast the President news spireeneergy.com site are Presentations. issued CEO; XXXX Executive and and Investors under and Officer that Newsroom. our you. Presenting that Chief may welcome at Steve on today our this and download of Vice earnings under Vice may Executive Operating Distribution

begin, Litigation Act let responses call, Today’s and within the the our earnings Safe meaning contain statements cover including non-GAAP of me forward-looking Reform Harbor of use of Securities Before XXXX. statement measures. to may questions we Private

forward-looking Our them. as we and to today no of duty assume update speak statements only

there our assumptions, based different performance those results be statements various uncertainties that are cause on or to reasonable risk future forward-looking anticipated. than may and Although factors are

uncertainties and will evaluating management impacts be Form earnings and net are performance and exclude by after-tax discussing counterparts For to restructuring after-tax a complete income September to measures In when and results our net are exclude collected comments, we on value of is transactions. the earnings of measures They receipts directly economic our and contribution divestiture factors, accounting plan to contained today. which our adjustments timing description A GAAP of that through Net for adjust to please from see revenue margin, which and of remove used fair adjustments operations. economic to we today. more associate margin non-GAAP Contribution our acquisition, also passed impacts the explanation which risk are a these non-GAAP XX-K the reconciliation of customers XX, ended gross year file natural and news taxes. release wholesale activities. related cost gas energy-related of their a with and cost revenues, full the in later

turn that, with to over will I the Suzanne. call So,

Suzanne Sitherwood

Thank and everyone, I’ve with for Steve our XXXX promises. us we you of this financial for was strong report, I’ll joining Spire very our year-end recap. asked on more much, then follow in operations again hit and another our the year Scott, provide welcome, It on Rasche high reflecting a morning will our details achievements course, to fiscal performance delivered year of And points, a solid Lindsey Steve results. performance. which

partners X,XXX I focus. than Missouri, begin communities. and employees business their support business by and serve partners and my for Mississippi also customers remarks I First, to for Spire our thanking want commitment many raising more on employees we our across how our and and the to bar work, hard wanted Alabama, the our continually commend

on our of with homes this X.X our and all past while growth. means to execute serving how to deliver to Spire promise With to we years success million down Our businesses, vision well strategic in and grow it priorities and serve. true staying begin our now comes year what organic

of and existing growth achieved We businesses. people, but customers through was the even we third on focusing our This and year. positive to processes I’m only are combined on bringing say our accomplished strength pleased the technology. focused for not to energy straight to homes more

technology again other infrastructure in that planned, level. The is pipeline investing record as through grow business. a once investment increased and way back to we major our And into our we

us growth, on And of employees continuous our gas moment. Reflecting finally, as X.X% company just an company, for our was dividend this XXth we term, a in fiscal growth year consecutive per our longer payout. we companies modernizing significance for the we As milestone of transition about increasing dividend marks was our continued share. strong our of another the Of year in our highlight, of across will outlook of historic year earnings transitioning said per and The delivered annualized of we for year the dividends This year performance our share increased and a posted I’ll XXrd earnings Board infrastructure to per communities. Steve Directors growth particular gas Lindsey would. that share XXXX increase on more and rate Spire. by operations. talk $X.XX

attractive to also at our year. are range. target postured shareholder growing of that delivering through continue XXXX We yield pleased the an dividend while was offers our conservatively of payout rewarding to record middle able staying Indeed, value a a be

top able we’re customer line for same year, better As services the us customers growth. benefit saw At of bottom our scale our for and gas we I Increasing time, mentioned, our across to our to increased third and growth shared management customers enabled cost the straight the structure our drive efficiencies companies. line. to use achieve five and

We for name work about utilities in September of of our than together immediate our I together, especially transition how about experience. a Spire energy a expenditures a XX%, driven make companies we’ve made but important color, by add – performance that one about to their as proud about operating of difference under needs lives, at including safety, strength us. our increased nearly people bring as infrastructure transition value, their name, and for the or well our communities end gas it’s our an to we as combined promise five much as technology capital levels, upgrades meet Spire answer said and was to to Pipeline at change smarter. the our our operations connecting ways better gas STL to companies a enriching it’s total more on lives. challenges, mostly, brought way But customers. have that about and to I’ve in The all the It’s system about project. create for Our a our with all milestone Spire. of performed I’m improvements up using a using is in and to customers it’s It’s shows new to customers before,

called to with So online way we they modern an transition manage us As the including what Account. have recently simplify account mobile-friendly launched our technology we their websites and management and to go. part the enhance new, of platforms, connect our are able on Together, customers? provided Spire, and to accounts customers tool the My customer customer

how customers. for go technology and we investment beyond care Our

to our last a standardize company-wide business will launched enhance This noted also is and we enable effort run which technology I As platform, time, overall, workflow, to multi-year, our us Spire. better. information our

perspective. Now year that me performance operations from turn an our and summary, the accomplishments to cover for with call the let to over Steve Lindsey

Steve Lindsey

Thank you, to Suzanne. also and outstanding our operating acknowledge thank safely. efforts customers this I for employees the their want of dedication our and serving to them year,

this operational financial Our year again once by were overall results supported a performance. strong

Utilities investment prudent organic have Our initiatives, continued results upgrades. reflect that to grow through infrastructure focused on our we Gas

providing efficiency from them and better. technology process gains benefited employees, training also investments, our even of the We jobs do improvements their the and tools to through

was, our moment, prudently at across and all customers. our operating detail system of benefits in overall. expenses this accomplished the performance utilities in all managing And again, customer our As a performed board, for improved of the I’ll by how our of safety, service

produce Our growth positive organic XXXX. continue to in efforts results

is new focus installed the of Suzanne XX,XXX straight Alabama pursue this increased housing and achieved us meters, market, further where a prior customer in penetration in we the a potential area over segment. for this X,XXX great for We to growth we mentioned, year. successfully units year. third year. added As we We see across XX% and plan past market, this increase multifamily Missouri over An

strategic in also of XX%, business investment, margin extensions. importance bringing our We energy growth it customers, natural this future more of of through is benefits that gas represents. investment the beyond increased our the The main by new to including

tracking tools acting processes Our investment made and development success technology-based opportunities. upon business the in in in for reflects and identifying, we’ve

giving with economic also increased to our broader as organic development of development, on folks strategically successful, our sales also cover force what to be they to business aligned our initiatives. growth our focus part specific we’ve Along segments. addition In need we’ve customer

approach our the partnerships enhanced by have leveraging have We we built time. over

economic Importantly, in we involved rather to the to requests development be at the discussions responding are later participate road. down more than start working to

to driven by As a up utilities complement capital and which our to initiatives, organic largely our are gas infrastructure we growth expenditures, upgrades. our continue ramp

to we with our in in Suzanne we our investment to important but XX% invested capital business, Of upgrading noted our EnergySouth just was along recover and XXXX. $XXX or $XXX system million. in million Gas we quickly spend earlier, As it million not up What’s that, million. up earnings. have total $XX added was able to what this significantly how in reflected invest, $XX another investment is new growth are Utility

are we begins year, XXX With miles we About see about utility training that it injury with with new years, to XXXX memorable employees be. key leaks this, the our Safety time. our was At replaced we for the employee and company from the Alabama, and main with even of and further to last we Summit, the minimal X infrastructure and number recovered a the reinforce while that in more work timely ago. XX% We we a ensure the report safety. year. that which or best we have overall spend upgrades main achieving appointment/retainment we within leak and regulatory in Spire, leak-management one and of is culture utilities, at the conducted Annual levels. served improvement Through customer XX% was our amount infrastructure Fourth emphasize investments including XX% again over increased Whether achieving safety XXX can the proud earnings over in to mechanisms our importance about Missouri service we and to to To of to high what already help principles mile a margins and in experience bringing is we the in we measures, short Spire. our Alabama. from replaced our response improvement replaced times. in of business XX%, a from than continue Missouri, last everything miles regulatory lag year-over-year is us miles times increase a in achieve five new in Missouri, X% contribution Mississippi that have years We and damage I’m their Alabama our saw in our in XX% of the us of in together customer once one-third decrease our tracker we replaced hard number rate. foundation our do prevention investment, Across further improvement in the reduced programs, enhancements stronger improved or of relatively XX% of across customer up which per where rates, in reflected

also for of estimated call number experience a of We speed answer, customer achieved including metrics, average customers. reduction rate a and lower the abandoned in better bills our

Our service of technicians. With improved as by Power, performance regarding our to satisfaction me for call the we surveys J.D. interactions let Rasche post-transaction conduct financial measured that ratings, customer Steve update. review in operations, showed our customer internal our contact now up turn over and with

Steve Rasche

everyone. morning, good and Steve, Thanks,

acquisition results million, look As $XXX earnings another touched part NEE quick and economic weather-driven million posted increase up $XXX borrowings. per demand of the to XX. wrap other reflecting Alabama. earnings short-term debt $XX Gas strong, Earnings Marketing as so and picture, Financial year lower Utility from were ISRS was as businesses. by at on slightly in $XX of storage million, year of Alagasco fiscal for acquisition. last on the X.X% This that our of EnergySouth across our and earnings reflecting broad-based improved putting or million, of fiscal of favorable the adjustments the issued XXXX net also $X.XX finally, on performance. higher EnergySouth million, share expenses corporate take X% in EnergySouth another performance Gas And from our were just XX% year-over-year rates acquisition equity or associated let’s $XX per the and from as is from million, up Full operating Spire units last a reflecting XXXX. over higher equity volumes X% a Starting conversion well for Slide share, $X.X with revenues, we’ve growth interest is at both a grew were addition optimization. regulatory for on, – the and up offset year favorable trading $X.XX shares up year. year, reflects the

margins the XX% over growth adjustments at Missouri, marketing from operating revenues strategies, as margin increased as EnergySouth, grew last last EnergySouth. of turning Utilities. million grew well and last Similarly, favorable Gas top or million the on since growth XX% higher This just key year in just over million, warm the Slide infrastructure savings revenue growth trading surcharges, $X.X $XX came was $XXX,XXX, Gas weather. volumes commodity by our were up Let’s performance, of headwind or shows system Total and of These about. costs of XX. compared with year, both by regulatory in $X.X driven were our X% despite the talked headwinds compared of offset reflecting normal by driven replacement businesses. as of growth look Utility weather, up it the of Gas $XX to investments benefit drivers billion, more winter to higher of Steve of in XX% optimization. $XX to headwinds our addition and addition and and storage sharing higher than the Alabama contribution nearly year, cost that’s to scale in million margins

mainly at EnergySouth, an on Utility debt trends of with employee-related highlights seen and followed reflecting categories rates. largely and operating EnergySouth natural year, Interest the expense the Gas expense expenses, higher well variances and capital year, $XX side, the the variances other income other due spending. as to few Other are weather, year, the the mostly up Looking to we’ve amortization were taxes expenses all interest all million reflecting million, our excluding gas on Hitting reflecting expenses lower addition than was benefit and of EnergySouth. warm Gas this actually expense of costs. higher higher a in $X decreased up XX%, principally, acquisition the depreciation increase operating maintenance the increased for higher as addition roughly and Marketing prices. volumes related reflecting operating

quality regulatory Slide saw the we EnergySouth. very of and the business Turning was stronger Spire as improvements $X.X quarterly EBITDA earnings remains The quickly XX% XX, year, Alabama on million drivers O&M last both the adjustments and seasonal of very Marketing ISRS heating working into Liquidity on to narrowed due the and earnings $XXX Gas very full favorable performance capital quickly our improved to year consistent the season. our the Utility from strong up earnings for quarterly high. by higher addition Gas were Gas for needs, for approach million million. fundamentals. $XX.X heading we costs peak The Missouri, in winter to Marketing. to lower loss remains in also what in we

$XXX as completed share of just XX Our XX% placement offerings private long-term first reflects capitalization Missouri’s last over mid-September. our that of as equity months well under the we bonds in million Spire the mortgage in

Alabama Spire and in in debt XX December XX year be and XXXX, funding into early ahead January. will million Looking $XX

give update of big in couple quick our you a projects. let me a Now

we As environmental in received earlier, Pipeline. with Suzanne Spire our significantly the assessment, will are our project place. assuming are concluded call, Since STL mitigation that our planned as mentioned we not which last impact FERC environment, appropriate measures progressing

pipe, selecting We and continue like purchasing contractor. a other to in forward land move securing rights areas

million FERC spending we $XX of was by approval, spend on expect project last year. end Our anticipate ramp the to the up the calendar after capital year, we and which

proceedings. Slide Missouri me an rate give on to Turning you update let XX, our

to cases two filings trued rate XX. of month, utilities line As which our up information. XXXX with April, earlier updates, through our in Missouri we financial in are September highlight you’ll recall, calendar key estimates. both I’d filed Last our for on like two we based

combined rate First, our by base to million $X.X billion. increased roughly, $XXX

to equity mortgage XX%, component of the mentioned bonds a our ago. the Secondly, utility minute just decreased structure capital first reflecting I

and responses later in schedule briefs and and We take are last are December of filing Hearings on filing set month cases, to testimony party’s other rate including January. with and both this the place month. reviewing

the As positions. beginning parties all and the part to discuss of the to issues are case proceedings,

is the X, to if eliminating March rates areas agreement, the Our goal reducing fully litigate possible. effective eye deadline, identify based collective no schedule, points XX-month later case, with toward our need on new XXXX. to the an to The of than

is proposals progress Mississippi, and Another in important this know, incorporate as mechanisms. aspect mention you to setting would of our to our they rate which, modernize paralleling jurisdictions, setting process, in continue efforts that that filings Missouri’s rate we quickly area. have annual I already Alabama legislative also

and schedule December filings with January those in in are in going of and effect on Alabama We into anticipate rates new each Mississippi.

here as this year. is XXXX forecasted for million, from capital forward, $XXX spend XX, up to outlined Looking be on $XXX Slide million

Our Spire focused utility spend on upgrades spend remains up on largely the the ramp Pipeline. in STL reflects infrastructure and

years this plan Our well-balanced Steve West over programs in and and Missouri contribute our as he the total a XXXX talked spend, roughly is length. Gas five-year XX billion, long-term lag by And spend remains upgrade or is that through $X.X about be East, five spend minimal with of regulatory of expects recovered our XX% the also plan capital when year mentioned earnings. expected Mississippi to plan is year's that to backed This Utility. Alabama across Missouri

as earnings noted Missouri our conclusion target earnings share Our last annual guidance provide formal X% year X%. remains net economic of cases. long-term the per quarter, growth to rate And after XXXX fiscal we'll

energies turn XXXX stand of Suzanne, to So over ready and we you. in me strategically, focus beyond. growth, financially. to another let summary, our back in on year it and we've operationally And delivered opportunities

Suzanne Sitherwood

Thanks, Steve.

journey we forward shareholders, success communities. we to for sharing accomplish confidence for our bar across excited for to today year our the take goals growth and did the your ahead during we've promises for build keep what heard now to pleased Operator, then in proud Not investment interest look we of time today, we and do, the for in very updates we beyond. deliver XXXX and and this raising you our and what's continued for company are our our ready our you our our and and I'm have had. By in always, performance to remarks on Thank Spire. questions. up achieving also stakeholders, positioned of fiscal and customers, but and, as As each year are we our ability regulators our only your further to put year ourselves transformation.

Operator

question-and-answer will from Michael question We Instructions] now go Please ahead. with begin Our the comes Suisse. session. [Operator Credit first Weinstein

Michael Weinstein

Hi, evaluating was investments on the could beyond midstream you wondering, the Alabama, you've upgrades? bit guys. a or of opportunities about City, progress Pipeline I talk little into Kansas in further making further been some going STL

Suzanne Sitherwood

be Sure, to. I'd Yes. happy

As Missouri Louis Pipeline, the definitively, more talked said, in After we've talked also part Spire as about across evaluations and various of St. City investigating, you Kansas but started we Louis, St. the geographies Alabama. we've our about region.

in progress announced list narrowed haven't a it look with. making of We've projects got we may that identified, yet shorter what projects or which are down terms move forward specifically like. some those We want of to to we

did, X% color You'll through other our well area work in that to X% as we as see what validate And strategic talked Steve of we've year. work CAGR of in which we've with some consistent that hear over the areas time. all is as Rasche is that done about and more around next that

Steve Lindsey

at we're move around that Michael, western on of some the we side upgrades our within gas think the needed about of infrastructure Steve would as looking system I to also distribution Lindsey. state this this. is the add

way as both area it So bring distribution long-term way supports the system. gas strategy move I well the through as the that think the into we we

Michael Weinstein

thoughts about is impacts, now But under impacts? to – potential reform or expense I be Okay. been last think might the it that there interest House mentioned year, On $X.XX dilution looks now old around the of you What deductible. potential tax $X.XX have are version. that your like going

Steve Rasche

this Yes, Michael, Steve. is

I think one. I can take this

initiative that with first we, First, reform a working EEI, AGA version positioned. the the the utility that what far the since each markups version, out current as the involved subject came for industry, tax one, Senate that is think seen overall, with I the fairly we've have up I from been to administration. have in point now well the some And is policy so potential House and and including Chairman's

successful that very both that. ultimately interest, our of and because in sets as essentially group We that CapEx of customers to in the that appropriate they've are the leaders legislation exceptional us some treatment, needs the industry pay. specifically named that an our making bills understand given group in impact expensing deductibility ways And DC as the treat we've been a sure of

mechanical interest, CapEx with individual about, and of those, four to you at of position. sausage get tax the it's are stands we fairly is a a which But to continue as level watch which at all lot a of that we components as important you for the to of the today, category thing So which know, there's and early, be the equal have green main us it those. still is look are we and made some worry industry, are right, in in taxation and expensing treatment because capital utilities when we'll then final the to to to of normalization, deductibility dividends gains,

but all will peers out, an on capital the the sure Given through will spending top-of-head we, where now. that of early there'll market. we rest be and deductibility, good assessment particular impact I what the for a the rules we're any bit about interest in position actual the little us, we think have don't go and advice that understand granularity right once I'm calculation, we believe who that's But fall our more

Michael Weinstein

company the that rule understanding that's fall interest would is under holding XX% mean, proposed? I being the expense your it

Steve Rasche

and same more that that as differences we of that can the utilities table good that an swim work, of I And wide a transparent. and some calculation And the the we're think make I mind are I as as some working make to It that understanding in it so and Senate how the the language have between XX% given and my sure a sit at would. the all that And what the want of position. far, rest we version allocation are know possible. would that craft the to we you assure is lane we there of industry would are help House

Michael Weinstein

Great. question. And one last just

On the say case, can case, I make is the you the rate worse what better than comment Or previous don't any know about this it in does you in settlements can times? there or look of possibility on that?

Suzanne Sitherwood

work Well, it's a filed really will we're confidential on I – those get Usually you negotiations, fair the when on And first that matters. positions And the when that's those bigger process. see works, in in, the items. early parties in can to course, now, if the I into and and of it. smaller and question. up agreement we down I to And begun, And so But parties negotiations. bigger take in process we'll But reach ahead they get has get to say can't matters it's both process speak these way their in negotiation. the the then some the we're that generally, certainly have wouldn't you that. of process

have, we'll February, January, obviously, by better so information. And

Steve Rasche

of in we played it kind about ago, way I has add out. come case of we Yes. And kind filed of seven really when back that this originally everything to we months pass exactly kind Michael, would that as April, talked

discussions that communicate know forward, at obviously we sure parties we more, rest So of the market the engaging once and the in go think time. the to as we'll to we're that appropriate I make

Suzanne Sitherwood

and And about there's process. peculiar nothing since – yes, the

way on the at familiar. that is those two the As side one for state, east law the Steve it's for is pointing on two time, cases And Missouri the out, aren't that the structured, one of West. decades,

most cases. MGE, you we file recall decided to acquired will rate we contemporary As of when that

are I to the for and the itself it's what regulators for it's the completely data the And the state, expected. and structure us for everything, put and legal table. the Steve and consistent. see we – certainly it's to consistent in been easier process with with on easier think way the items all But is as that the structure for said, decades, consistent

Michael Weinstein

much. Thank you very Okay, great.

Suzanne Sitherwood

you, Michael. Thank

Operator

comes Our Markets. ahead. from with Capital next Please question Insoo RBC go Kim

Insoo Kim

Good morning, everyone.

First, you statutes case, few months the to that how I they know have filed regards rate much ratio? concern the ago. in do of consolidated on equity a

the said by a ratio utility ratio think, will but adopted for a precedent there out, win the Steve, I is case? a that in believe being commission you that consolidated you rate

Steve Rasche

Insoo, – Steve. precedent the this Missouri. both is in our for there Actually, state of

time you consolidated of spirit structure. of a the the ring when to non-regulated and required was Gas fence development Laclede the us – operating that our been As to was of acquired which the to capital holding which stipulation, be invest it which that the utility at letter the utility were and entity includes of and to group has MGE we've our we Laclede FERC-regulated And that filed Spire rate Company, Mississippi, the back Missouri, and and Spire owned both Missouri which Gas and the structure is needed pipeline. company, utilities the the used noise single in our looking transition. evaluate continues we takes in capital way But we state Alabama know, capital cases been the and position now businesses, last prior MGE away to along within right a the

to since So argument until conclusion. we through how continue utility operating get actually we'll put And the and and the support continue we've been and to facts to I a process think we been doing what actually we've work XXXX. forth the

Laclede of it we think the of XX%, where think Missouri, math or paying with in the really entity end the we really, their – the to But knew period up which when I believe spot the you frankly, our sustainable, our the important year be. customers update balanced thing either content equity worked bill. at ended that is about had is I was it we the at XX% through original a little now at Spire and filing, was wasn't Gas, the

Insoo Kim

tax reflect changes of tax level reform Mike's by question. the case to utility Understood. current it year, along And were to then If kind reform? the would end at rate of pass relates to the tagging the the something as

Steve Rasche

question. that's assuming we agreement couple will Well, that and of a get Washington, What things a actually in have happen. – great something we filed,

in comfortable there is more bode time on for with confidence, to the with to would ready, get period. were think year, how we I that bit timing flows it the significant already be if or from discussions, make ultimately, us fit ready, immediately My of to News get gut ultimately by Washington to We would the can't jurisdictions there's customer the adjustments And we our subsequent to be would and rate going little to we're take we'll follow of will that the if question a to jurisdictions have right tweets, all that to those end adjusted. out with a within to on the And we go of do and the you – I with that through whether since, passed going the a state say into will our you the feel work we're and is thing. stand or bills bit good figure the the our regulators that then adjustment. something the all pay. sure – the be, we'll various rates of a staff already customers starting of rates immediately authoritative what follow would it's work case that whether Daily be depending we even transition which

of There everybody or look the big you neither months, regulators adjusted it to would XXXX, being had through was going period several time, time the how we back worked the the and what were utility to to ended If rates which expect a tax was up and where change in policy. last benefited, ultimately is it's be happen. a harmed we

Insoo Kim

And December? publicly, to – are that Understood. from there after Saul identified Commissioner in potentially his have finally out me, ends replace term any are candidates been

Suzanne Sitherwood

with the of Governor energy staff attributes There's best particular terms request that place. characteristics, a not Commissioner. to chambers of will candidate and that what group with an that acknowledgment share energy is there Yes, a replacement been There's are take the companies been in that, sitting the a and think the we identified. has

– information specific requests different been that there with. been state for have And nor provided the any across candidates, that shared not so candidates have we organizations but has

that attributes, Governor asked by that work Commissioner. I the as are the key staff the Commission think to what the groups has it's of impacted that's important again,

Insoo Kim

Got it. Thank very you much.

Operator

[Operator Avon Please capital. Instructions] go Andy with comes question Our next Levi from ahead.

Andy Levi

How good Hi, you morning. are guys?

Suzanne Sitherwood

Andy. Good morning. Hi,

Andy Levi

it Mike sure question I Just to a make on understand follow-up taxes on correctly. Weinstein's

to about, million Or or of some the that So you utilities? if is the utilities? not debt $XXX parent that's I'm to of mistaken, what? allocated allocated not have so

Steve Rasche

allocated None and to utilities, holdco the million of is it it's $XXX of debt.

Andy Levi

like Oh, out About interest $XXX something the of And capital? that's $XX expense or what? that million of million.

Steve Rasche

Yes, bit right. they're range, if you the interest in a look less, at X% little an that's average about rate

Andy Levi

versus, or Marketing a or tax a I and mistaken, $X paying rate So look that, $X.XX XX% you're tax so do, if if like if Gas or positives, you are being of ends coupons ends not being that let's guess the from or just the benefit the then XX% rate delta, the negative. now, in kind of million maybe – side different of that you then would your tax where I'm lower so math all assume it like some I at the benefit on that a And the non-regulated too, not? there share. say, other that's business. But businesses your Would about any aren't – that it up

Steve Rasche

to You're detriments customer through the what or extent from then on. flowing depending company the rates on that to absolutely benefits side you're right changes our are either any tax that

it you right effective That's the business up. underneath, some about two if the see of get that would to the – we rate bring least a details think of isn't takes look that into of because the non-regulated number legislation gives benefit. you're they're are broadly and because out the have which of effective rate legislation we when So eliminated, XX% that are are is pieces are, there terms the that in there, actually at deductions what

comes the again, to units, is has used using that to clarify point more and the in for which and purposes. years year we down so that which with to the utilities how markups allocation many and is it legislation, that So the normal, IRS, to methodologies really deductibility for a really holdco allocated of that it with reasonable less trying looked the that standard industry located take this we the we've can to at we the felt we and where is debt debt business deductibility with it's is how down – interest to do ago, the that allocated allocate

be the how not, I we going position. of House think we're gone in in and again, a terms I further to through a Senate going legislation together. bit have stage, to – and the recalculation little coming we're between the until the this But we're along are a of be just to good impacts think

bit work think it. this a be premature it's on for many I are result over like months of many, and the time I a of lot of we spending us a to hard where is But with folks. lot

Andy Levi

rate it's tax – that creates delta. just just a the lower I'm

So it is assuming lower rate. that deductible at deductible, tax it a is

would businesses would for and so be what pass-through, I to considered it? not be better it put no guess, So that regulated be a it way would

Steve Rasche

for that through I our screen Pipeline. Spire sit tell the believe beyond rates when Marketing and Principally, our here you I flush our couldn't going the a how did little today, and would a that But would be rates ago to radar we would deferred Gas analysis there that, business. the final year through STL it's was work because I approve.

I'm going the that regulated So put bucket. in to

marketing. Spire primarily it's So

Andy Levi

Okay.

my have not numbers, – these yours. you are again, So

a $X.XX, over a a the tax like, million, the rate the $X.XX be kind just cash of but So of… not lower actually run bit lot to from cash-wise, what the don't And then earned you – paying, going I Gas rate, so guess, cash parent have, not then Marketing couple from you're It's from collecting to not which taxes, in I ratepayers still years, you're difference deduct a is about $X.X is debt. of be to you'd negative last there'll pay there. think And the but you of what benefit little that much money.

Steve Rasche

we modeled a out – we've year that yes, – ago. then That

that's we're how So be… to that

Andy Levi

kind are think else, nothing Okay. to pieces three at guys at, of, of, can right? the right? you can that look of this There's right? really I those stage, right? Or think And That

Steve Rasche

Yes.

Andy Levi

it. very understand Thank I much. you Okay.

Steve Rasche

Thanks, Andy.

Operator

[Operator back the Instructions] I’m seeing no further to questions Scott remarks. at for conference Dudley this to like closing over any time. I turn would

Scott Dudley

Okay. that us. joining for follow-ups we'll Thanks for be Thank and for today any you you around joining all have. us,

Operator

for now attending The presentation. you concluded. conference is today's Thank

disconnect. now may You

Spire (SR) 15 Nov 172017 Q4 Earnings call transcript