SR - Earnings call transcript Q4 2021

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Operator

Good morning, 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’ll 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. ahead. go Please

Scott Dudley

slide There's from at our either webcast that morning, earnings room. Good and site webcast this to fiscal our our and Thank We or and issued you news website presentation year-end download website Events on that call. may release under Presentations. under and Investors may an accompanies a XXXX also the that the today, you from you. our find welcome spireenergy.com earnings morning, news and

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

be assumptions, factors to risks and filings there are Although SEC. our forward-looking anticipated. than outlined our various in In that our or and results cause quarterly reasonable risk future and discussing to contained performance are by our be evaluating performance different economic uncertainties margin, are These those GAAP Explanations annual measures statements our reconciliations are are both and on management the may uncertainties and release their news presentation. when of with comments, based measures which counterparts and both and these non-GAAP contribution of in used will slide operations. results we earnings net

Lindsey, also and of the With I involving legal years XX President our Gas of our Vice CEO; is to and Missouri. On and Officer; Spire FERC Sitherwood, turn Treasurer Executive the the brings in CFO Chief room and Suzanne Legal call who Vice President Rasche, Compliance will Executive CFO; over and and and President utilities Mark Woodard, Vice President Officer, Suzanne. Steve and is matters in President Utilities. call and Spire's Operating Steve Scott Also of that, Darrell, today Adam Chief over Carter, experience

Suzanne Sitherwood

you, morning, joining us. Scott, for everyone. good you Thank and Thank

every why our answer analysts like and work to of our everything one the greatest the strength with call, advance for community people. leaders and the remind energy. from comes Spire, As Spire. belief enrich mission and challenge, our rooted mission, every investors today's This I'd every life in world earnings that ends At talented source, we begin the energy employees and is begins through in our

and results people day So for we go energy and of strength energy and and answering stepping before the and and good faith our day positive year challenges, do the in past warm offers day coronavirus in challenges to work and operationally of including who it Storm year-end STL the of Missouri to our and unprecedented and severe operations order to commitment Pipeline Through our and financially. employees are rate Grounded answer operation this and measurable that the keeping our out continued review. weather the We challenges knowing rate again a of tomorrow. several, having to us the Spire Winter achieved pandemic, challenge better the the for rise the at on recently, to a promise forward, an every boldly firm our modified innovating using the all, most impact advancing around in with us. holding Spire to this world Spire Uri, we intention us solid due keeps

and for financial posting us Scott the sustainability. operational but Carter communities system shareholders. more these the distribution our to on I'd Missouri great our Pipeline my received Steve to and and For strong customers, order significant I our integrity review. service of safety, gratitude That our deliver the and we detail, the our strong, extend share further makes consistent Lindsey growth like to that situation energy who topics by my this service rate our thoughts and levels utilities our admiration the cover includes performance gas people collective for will strengthening employees, and for natural and enhancing and our Spire in contributions STL

Regarding this infrastructure through and service in continue that to critical pipeline, everything winter this ensure possible remains we our permanently. doing

It's operator understand more utility than to businesses of several every Eastern million for that A of jobs of businesses, XX St. a provide of in the Pipeline pipeline Spire the start-ups that As STL the people criticality millions Missouri, a thousands homes large people Louis industrials. and physical socioeconomic I hundreds years, serves region. serving of hundreds pipeline level. to from of of thousands

evidenced sure despite every upon This Missouri, make this it responsibility the we is take was Federal us region held person, and responsibility Spire reliable Thursday, operating Regulatory our FERC, Commission our every business, public seriously hearing gas and by monthly Energy as safe, the state and Pipeline its on agenda. Last very by every results. has to this the natural service. For home STL is honor of or

encouraged certainty and our the be are to statement, operations, we'll expires the of and communities Until everyone open operation approval continued have we before prepared winter. regarding hope being yet temporary to not has While committing customers that pipeline is keep December of XX. approved, for we by the commissioner's act the with on continued honest

to for lack important November Missouri Public reconsideration. with been the cases The Now that based Friday, their in response, on order treatment have clarification filed we clarity and operated initial turning issued those we as exist Considerable Missouri this and two XX, overhead last the ordered inconsistent how to Service exactly Service commission capital our of structure precedent some on were. amended Missouri what In in intentions amended what costs, Commission highly rate both the the precedents. concerns an even Commission Public on and case had issued with as providing still issues: rate prior and review. orders orders

Our this achieve outcome communities and objective in to our is customers, making and fair reasonable for a filing shareholders.

With on and I'll Spire's Steve? our XXXX, the turn Pipeline, our mission, and investment to our to over on for focused program call answer we comments additional in forward remaining Steve our operational As these in challenges, we performance. Spire STL poised meeting step our to are strategy Lindsey that, stakeholders. capital fiscal commitments

Steven Lindsey

Thank you, Suzanne. of reliable the service despite their and employees one winter delivery customers including STL this safe who current of and challenge Spire our your to acknowledge gas our maintaining the to Want facing outstanding Pipeline ensure challenges, focus the on operations available and beyond. continue is echo to we're efforts

ability during Pipeline important the reliable source natural than on energy consistently resource was demonstrated and we've businesses serve stated, prices absolutely were this St. We It Spire customers that in of more infrastructure. avoiding critical As our XXX,XXX during this fully and to count to our homes for STL in affordable essential other and region and need is to Louis Uri cold last gas experienced gas, Winter clearly especially while able Storm is service The skyrocketing energy periods. parts disruptions the winter serve February. Texas Southwest. fully the

by not it act issue need before their we've order Suzanne our natural contingency will Missouri to make commitment you have and Thursday, to certificate possible order with other most winter been noted ability an our has in we Spire consistent on doing Media not the a an to Spire to the that gas possible communicating to know, they our with access as operate, XX entire remand the this while the available As they and new when customers extending service. address plans and the D.C. access the to is extend on Pipelines commission communities the approval to shippers Open from reliable pipeline throughout time, when did to commission and commission And STL We've filed open issue earlier, pipelines. Spire operate implemented. not Pipeline's customers is the aware to did FERC assessing December At temporary considering Court. temporary the pipeline XX, gas issued while everything beyond. winter through state be being FERC's same At been application authority created the December expires. operational Circuit them risk hope in have the of that ensure add STL near-term safe, clarifying disruption we they

We Even of Public community the government-elected FERC keeping is strong that over pipeline suit for from operation, and officials, winter. including during operation Commission. party customers the the Missouri in pipeline's in support support the have for our broad EDF, approval Service pipeline leaders, the

for for this in Finally, of requested is matter certificate part as the resolution to on Earlier this the month, Spire expedited additional information based STL the pipeline. Pipeline XXXX. reissuance of pointing need

million for $XXX in we totaled to over drive increased continue preserve we're investment technology investment our business, $XXX of utility operating utility our increase utilities These to gas working spend upgrades. our customers. including investments and While Last infrastructure, for service half our performance year, and innovation. growth, new our energy of enhanced critical CapEx million, infrastructure, infrastructure to with

also had a a nearly of new and business, XX% record over million year $XXX activations. number spent new We premise on about last increase

of As we total fiscal forecast X-year out we're fiscal CapEx about years billion, the look innovation that supports replacement X to meters. XXXX, spend our on over $X.X previous utilities, next million our expecting capital through including business $XXX would and from through new programs note ultrasonic I up XXXX. XX% technology, more our focused gas our plus than pipeline our and long-term

case of the lag recovered of in earnings As regulatory spend you majority or reflected know, with business. the minimal in utility is our as new

in advancements to operating performance continue and sustainability. investments Our further drive

resilience, for and system leaks had trend As continue damage five you injury over and our record rates can our metrics show rates, integrity improving safety last an Employee years. system key all see, to lows. the on

tracking same the we toward reduction emission at are time, our While goals. methane

XXXX being our turn over mid-century. order. let of a of fiscal that, hit review to carbon-neutral and levels Scott With Missouri by review company our expect rate XX% target We Scott? in to commitment our reduced by call XXXX the for to support me emissions for a Carter from

Scott Carter

good Thanks, Steve, and morning.

in our grants year. of several To amended in mentioned approximately the and challenges. rate past roll-in order through through and expansion financing debt through previously we also final $XX rates. recovery our issued programs came The Commission issued begin, higher later structure. increased need. order Suzanne utility us calls, includes relief includes with is for quarter. ISRS Missouri which rates in a being short-term rate filed we $XX includes already for energy $XX this of permanent approximately in Missouri amended. customers in last case in collected commission discussed million this As our It of expands case, order million. The decisions million concerning it of the an The Recently, depreciation and general This assistance amortization also

recent the incurred and used in was cost include the and adopts of order $X first our decision Missouri. debt the fully last that commission Both commission Comparing at the ROE regulatory short-term The if short-term this to penalized litigated previously this any This include last requirement Missouri calculated results short-term decision for return our of reduced last way with for to that point ago, in approximately years recommendation of Up utility by companies confirmed the just in our and million. revenue our the rate case, were case approximately lowest national actual ever. in the for winter. in company capital in which had us ROE end ROE X.XX%. The debt average adopted The this revenue that test at X.XX%, history, $XX the requirement in the structure below total as commission annually. time one for case and mission approach impact million elected our decided in a The not lowered recommendations precedent. period. it of utility was staff appropriate gas to the by rate consistent current of the three also staff debt average

pending the consistent guidance, it authority audit. prudently capitalization many audit of all commission going aside Finally, our methodology consistent by a for suspension is of the of a Despite these overhead set completion capitalizing staff. years, overheads incurred method costs for commission a with the staff pending forward, of the

in leaves $XX between 'XX clarify annually, of totaled $XX be estimates for and how costs, that million best recovered. the treatment those While revised year $XX which fiscal attempts order million question are million million our to $XX will roughly it to

resolution We reconsider commission well have On they overall review amended in as the shifts long-standing quarter on certainty the need from will to utilities consider and in for of to as we calendar have our impacts to expedited commission hope practice the to 'XX. the and the asked already regulatory state of continue other and provide customers implications excellent want capitalization these the November service. process the XX, invest methodology of Friday, begun its order. first the Spire the We and to

clearly, have the on we work do So front. to regulatory

issues customers for continuing this turn to committed all deliver these to updates. our for over I'll We Rasche and now financial and Steve stakeholders. through are to working

Steven Rasche

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

brief the call at Let's try our let to quarter a position. then beyond. bring start XXXX moving parts me and with the fourth covered on all review together of financial as for our outlook we look and we've And

better $XX For than our fiscal by our fourth narrowed share. year economic than or million quarter, more million, $X loss we $X.XX to last a

of the at gas in have Looking this loss businesses, typically quarter warmest our due summer. seasonal load the days reduced utilities to a heating the

the year higher included $X interest Recall the of going as margins offset a depreciation last More more into segment lot expense cost just earnings were winter more lost over than and the that that expenses. million, established prior $XX.X results year, in slightly of we positions million just higher For our posted Gas $X on ultimately quarter, second. the over value. than trends by created Marketing storage of million. last

increased quarter, XX. earnings this Winter as here number The those impact Storm at were Uri. arising Slide settlements by of quarterly net able Looking million, disputes to $XX.X outstanding we on from commercial noted resolve of a

benefit would gas and expense that but this primary line. items the was individual categories our driver utility, results point not bottom at several I exceeding out expectations. in unexpected, really While our did the impact moved income also

from the taxes. deferrals, order, First, depreciation rate true-ups and regulatory including Missouri

a the bit run this benefit maintenance that, programs excluding funding operations related is less the O&M million variance $X.X of increased an due on largely initiatives. the expenses, than to down sale off net last and and rate Secondly, Drilling of and $X.X to million reduction X%. expenses customer from COVID by a of system deferral, winter year expense

with flow. financial have We cash strong growing a position

over last up XX% adjusted Our EBITDA roughly was year.

FFO And this we our long-term credit with have winter. its into metrics and ample debt significant middle in the is to capitalization target. a to trending as close holding we and balanced, metric seen range Our our liquidity our of result, have target debt heading of strengthening company XX%

regulatory turn long-term strong we reasonable in to already robust predicated plan, always, our seeking as and growth range, remain treatment. We $X.X Steve outlook. And very are moved per billion. with which base clarity growth let's Finally, Missouri. capital target is Carter near-term up has regulatory in rate which, our on outlined our to X-year Scott reasonable mentioned, as treatment share paired confident fair in

momentum Given XXXX beyond. year, today, appears what the we based on fully know it we to radar, and that reset and XXXX regain will be expect in a

our specifically Now per to looking expected from let earnings Starting how our walk with me fiscal arrived we at of at $X range 'XX, results share. XXXX. $X.XX through you

itself. and apply OpCo fiscal our the end earnings market structure Scott or a at we toward Missouri. point, fair of share. Public can From due share. we a reading Commission long-term starting ended. year delta, That XXXX of we $X.XX Storm difference in 'XX And We per $X.XX share. our an estimate roughly the economics non-recurring capitalized of the net expedited using arrive largely Winter reduction working discussed, range, with be as order a and $X.XX resolution to overheads expectations Uri, to rate is ROEM market on Service cap in Looking run while just of benefits business $X.XX a are that based plain on staff marketing what per deferred between be and for average per at of that at Missouri the the middle approximately earnings Using between

a we range clarification this overhead on at share. is overhead benefits limited Again, issue. significant. given otherwise $X.XX and know based ranging to assume on admittedly our wide we non-operational And impact that prudent the of is $X.XX Public to to Missouri The $X.XX Service and further a range a the initiatives, fiscal will the $X specifically to A After there from only from range, that growth in discount on Commission. arrive of rate-based believe with per have cost. adding receive deferral we what upside share. today uncertainty, 'XX We organic the of we favorable do per

as company Turning financing in well well growth prospects. as forecast a paired includes long-term guidance, three our we plan confidence strong our with refinancing briefly gas level debt, operating this excess finance cost our next Missouri steady including financing equity through bonds the of year urea some the to position years for recognizing but to our our low and the have period. long-term as as results And 'XX over

common of by per summary, Directors of the dividend $X.XX finished year in XXth Board year share. annualized Our is increases. we of increased This to rate solid X.X% In fiscal an our our recently dividend shape. consecutive

ensuring to to availability continue approach laser-focused change many of winter the as for will addressing remain We winters Spire regulatory Pipeline and as well this Missouri. come the on STL in in

safe clear: is to With investing me the for over let of communities and the turn to stakeholders. for delivering you, and benefit it that, our goal all reliable Our customers future and service Suzanne. back

Suzanne Sitherwood

Thank you, operating solid financial results. Steve. and Spire continues summary, deliver to In execute and

are service family for able in you safe, on year million our innovating and tomorrow. people interest updating and a for us homes are you progress this businesses Thanksgiving delivering continued of a Thank the resilient your nice look because forward gas wish Spire to of advancing do we and on your forward and investment for the reliable setting focused Spire. as the strong, rely to that us We unfolds, holiday. keeps challenges and strength better We you and regardless X.X energy and who to on natural our the energy

your take questions. to ready We are now

Operator

comes America. go Dumoulin-Smith [Operator Please Bank first ahead. Our of Instructions] Julien from with question today

Kody Clark

Julien. on for actually Good morning. Clark It's Kody

prepared to just range mentioned wondering 'XX the thinking the be what earnings versus should also, the it mitigating your other are $X.XX give you asset capitalized guidance? of Is that first, know but Or the can about? And remarks, overhead? other breakdown in in really i.e., there you we utility some color is impact gas So timing related? new the $X.XX regulatory factors I of on

Steven Rasche

Yes.

it Steve. he sure if Adam so I will Let I'm me me help And miss is that is give a out. shot. This something, here,

the subject that lack high because that end. overheads a is clarity with to example, lack to and overhead the on in or right even wide low get so hopefully hopeful have the second to of range most that is, of the on term. of quite range from in clarity line On issue an and bucket that have capitalization end But since range. to also commission. to identify gas filing there's still bucket And the that pretty is to that's things staff the continue run we're we And progress low given our your anywhere and the that's we're what to that what the really that why would a we We a does. like at order impacts from Marketing or of and field today, at we'll as on working business. a the are And still nature, things in going included staff through in it the our we of think, with the the And they we're are then a we You reconsideration, still the end what all talking million as be work that's question, end Spire or the about discourse up storage the of is is extremely we team in able to is. what wide that a end which with on that's near 'XX, as just business and best ended be is worst expect Missouri to $XX deferral. is And unfortunately, we're range of we’ll is. in utility. there's that believe the sight to staff ultimately and where exactly why, supervision are of that term be opposed capitalization and the that these that not such of amended basis of clarify results making the wide rate to I exactly near what obviously XX%-plus, some clear like looking are bit capitalization the But the pipeline know opposed that And things on for trying else. for where the and the bucket ultimately had grow

Kody Clark

X% helpful. if Is it be file capitalized And Thank should X% That's is about for directing 'XX? in you Do lag just are each rate And to you just to you. new XX% to subsequent the off going of see it really commission thinking rebasing overhead range? isolated then a Okay. of forward as incremental the year? cases? growth we clarification, how more you the recovery

Scott Carter

Yes, take prudency we I Carter over of back is a from why Scott Again, your turn This don't costs Steve. again. it Kody, incurred questioned to were -- the standpoint. first question, I'll none

those or be So through either costs that consider capitalizable recovered rates. we recoverable should

our we'll O&M so recover the rates the capitalized item, through elements. the finds those that those is forward, O&M an be some like future cost just to anticipation And should in not of extent able costs other commission that be going to

the we're working is getting But through. back those that transition ultimately, expectation So something all recoverable then period those through are and is working of prudently into time our are incurred. costs the all because still rates

Steven Rasche

the and great and COVID it's growth, then there uncertainty about benefit we we in long-term have much question noise unusual second your have the 'XX. on And is 'XX. And And Yes. 'XX question. so in a on

it's unusual been So period. an X-year

again in that kind back go like know and we kind the then over we out we year we ways: X looked 'XX, a it X go to back of at back, steady far forward us, two next one, to to but and years. So don't of you to went looked had

on forward. the I confident we that X%. in based comment, growth X% clarity clearly of more to on and kind year the And that looking far always we're we're out. look going your rate only issue. on can some the get in that, structure And ROE, our ultimately, I what say going kind we'll especially right is But to uncertain the then thing we certainty base on I the take will what of cap on get next dramatically, is step growth know, that But you that, And as accelerate out to will an like, we place 'XX into as to is that As of believe mirror figure be. it's be now. bring overhead

can what I got engines based rate assured rest organically X% long-term. and of think that you X%, that growth the for upon base to we're grow our the to doing to business we've the continue

Kody Clark

queue. the so the Thanks Okay. for in jump I’ll time. much back

Operator

from next Our Mizuho. question ahead. go comes with Please Moreen Gabe

Gabe Moreen

good clarifying little a the sort everyone. just more structure to outcome maybe bit here on basically. morning I wanted ask of cap Hey,

cap push Are Just future where you plan, to equity to it is to this long-term So of moment? of looking let's the at And targeted that? stay. out your cap lot to a wondering higher prior was purposely that that's of of I a financing kind curious the structure in plans thing uncertainty hold fit financing there debt at the kind sort here back the recognize say short-term stage. there's your how I'm into structure just

Steven Rasche

a it's Gabe, great Yes. question.

several had that at shot questions there. in a you because buried take me Let

debt, Uri under then unfortunately, for the which of with Storm more that did road game reevaluating debt upon the a the the our changed. is the of case. going the based would strategy near structure, We of you And rate time the short-term cap Winter a against have are a last lot to finance now clearly forward. test be point capital to we We rules structure of has long-term but tied period, that what what be update going would we exactly do end operate

that. rolling the We our forward, and XX-month And structure looking how do we and at manage really average, if the clearly able to we're short-term frankly, cap debt new to entire that's going going a be game. are

making, real-time we is we that. As structure and a manage reminder, rate every to in have can month, cap Alabama do the and

the utility, yes, So equity in of the terms in content absolutely.

that that on by Missouri to we have before years as several we will few returns where securitization, really the we makes get long-term the expect Commission Public and/or in risk this. look to rates perform. rebuild Missouri in next the that's rate a business. the marketers upon over into decision the sense in cost that echoed the the it of the order, the disputes to take started both mention We to But Moody's Service customer through on pending I recover the a and risk will some not who level from a for along going call from has at word we we didn't did with of and excess the that to order have sense market the securitizing pure that for go we're be finance. it And but ride, would were other and with a as clearly, increased Think gas in based been few that folks look us who

Gabe Moreen

question. maybe your I change. conceptual Does in business at a Missouri, the you've then change around think a noticed efforts case this in your outcome been And state? really how CapEx forefront to case kind state? follow-up, does pursuit, CapEx quasi you didn't I business change this RNG, you of I And Steve. all ask at putting Thanks things sort that new also, the how sort larger the in of want as rate do ambitions can as corollary, rate

Steven Lindsey

out. our some relative first $X.X at you if I'll added And of capital Lindsey. billion part as plan. actually Missouri. And question or in up plan, you X-year the increases take Gabe, think see, the it's Steve about the reaffirmed to to we that it includes have

to relative our about think want changed this anything has don't to you if I that. think strategy, So

about of state. ISRS help have and this think sides I think long a new footprint, across all good evenly and of as capital spread you here us as some will on really for state that whether the on We're we make of if both of opportunities it's deploy think state, the beneficial infrastructure going well a cap in unify I to upgrades, our decisions technology. to side each have in Alabama, very we're be lot the really line across that we the which almost business

So I forward. going strategy changed on that really think nothing has

Scott Carter

we’ll second intention and process, solid, things In this And consume case that then had On of the rate our our in your regulatory reviewing Gabe, it's the we proposal outcome case. rate hunted we case to was in renewable natural kind said in separately. Then like turning got a Scott. oxygen. attention stable it -- gas, question, back

has So that other make progress it needs. customers renewable of thank ability want, longer is fixing a try programs to obviously towards that customer to our their that going this to we to natural suits our ratemaking better on things move benefit gas a time which to system and as the extent is lead

hopefully, get So run, good in can of back fixed things get make any obviously, this delivering can before But of to those our on want. we going on customers this fronts. real those solved attention short progress they what we the is be

Suzanne Sitherwood

our tie of Scott in do, impact both meters carbon back terms that Gabe, carbon from can goals at X renewable The I'll natural to system discussed further described. the best things our and neutrality goals. add then in the does neutrality And we just the it is comment. of our into we've gas pipe one modernizing deployment plan is capital an environmental Carter,

all actually it together. So hangs

-- question two almost that one. questions the together asked appreciate the I as you So

you So thank that. for

Gabe Moreen

everyone. Thanks

Operator

come ahead. Our Guggenheim. with next from Please Shar Pourreza go will question

Shar Pourreza

you question Started and again, it's Hey kind good directly. addressed morning. not I'm to still ask but bit a guys little this sure complex, if of it

changing you see commentary are to reconsideration. you on do sense, guess, the trying get the structure of in point ruling how or the do ruling given align a equity needs the -- cap in commission's still order. I'm to I structure on cap And not? anticipate Just how changes you with

Steven Rasche

step engender because also Shar, totality things essentially that nature, look point human overall. back at a asked in We've is ROE back it will phenomenal can make otherwise asked shot. take as the and decisions order look that and the to in whether step back its utility is this commission's to of Lindsey are and Steve commission totality important at as front you change, for in Scott about. but but based in Missouri and or felt I look the what you step is order the won't at let we individual the you, on talked it's you fashion lowest reconsideration of me was any out -- actually duty operating for fairness handicap in the the it and essentially Carter to not

that that's that lot why uncertainty to there's it that, hope the issue, we absolutely. So is decided more clarification a is forward. going It reason on get and to we've clear overhead -- the pursue on would

Shar Pourreza

Okay. Got just still on it. And equity? again,

Steven Rasche

in good At this point, shape. we're sitting pretty

level it's structure, forward overall consolidated the to our financing, is You low and is very which cap a group look level at in the tweak order fine.

I structure capital Now bolstering actually we us look we we on overall capital which will those -- earning referenced more that and is the And years. yet in with with have equity And big we looked extremely layer, I think strong great of them it. road call when which the coming way, equity tie in at we're and earnings, capital the old-fashioned forward and for helped to the rules we're remember, our what strategy our commission we shape. as in our move for plan staff we discussion which think and also off Missouri, in way the think will, year weigh good new of metrics, we're are. was the that we that at tested that to and our and forward the closely about down really shape, But may part raises structure a in Missouri. a some in to know X so credit still building we the But wait ourselves, in

Steven Lindsey

One to to to think more about just add that way a thing it.

the issue driven structure that. short-term what self-correcting. did it they of put inclusion they in, so and capital short-term the of the they is pull of was It some out largely structure debt of by the Some buildup equity when by and debt

it and therefore, push back over component. that time, it debt short-term equity works in as in And level So to inherently short it equity case we both have refinance that the long-term and would will our it. -- term less short-term the off debt next

our XX-month the changing short-term think a with, regulatory capital I overall issues rules in about So balance. dealt just works with we the the some look the structure context. of It's at

Shar Pourreza

Okay.

So just to the correct? a order, summarize, of result no new as equity

Steven Rasche

sorry. No,

Shar Pourreza

in right. your expire All weeks? you Thank in given don't certificate on current term, temporary temporary you a clarity? expect when guess, that near expect do just you. to And STL. a to certificate months, that operate, of you I over or permanent do if the more And When is you permanent? you does then just have a expect Do expect the the winter another something certificate couple solution issue to FERC

Suzanne Sitherwood

today Darrell Thanks, us there topic. just experience Shar. extensive thought he's join this with a got and I around because be FERC, asked general Mark I might to question

you don't you. Mark, would So mind,

Mark Darrell

temporary hard Thursday on the what happy predict before to indicate decision whether XX. a that. will FERC on I'm to And do, at they respond last or they Sure. meeting a December that basis to exactly a did have It's expect it's basis. to permanent

So I that before were of the decision of number a and think XX. December they making indicated a -- supportive us commissioners

that So be. decision or and exactly scope really know will that's can't pretty now, all form the I what much Right we put. of

Shar Pourreza

had. I That’s guys. all Thanks

Operator

go [Operator Murti Vedula next Capital. from Instructions] Our comes with Hudson question Bay Please ahead.

Vedula Murti

season, the here terms asking nearing to expect Good morning. the reconsideration holiday do with you that respond of commission me Can we're help the request? you in that given like to for when

Mark Darrell

Yes.

at looked has in of and So fairly this the previously some reconsideration quickly. the commission request acted case

of out what's do the this issues and case. we're pending there, same So the that they'll in the with scope hopeful

rehearing. So to on they need information have the request act our for they

for that can look as it as up. they So we'll take soon

Vedula Murti

terms to period audit change, and the I'm audit? to explain the an opposed during wondering of And treatment in one as do the you the for kind of of change the rationale it's subsequent thing of Can thing. order to requiring to me kind that

Mark Darrell

was put the that change reconsideration you Yes, substantial Normally, in transition. the request required, change for points that our if of made of a in context. regulatory cost we in regulatory other Think in one depreciation a place. construct, wonder I that studies was fairly the changing about fairly and the unprecedented and there have process things recoverability nature the there's and are of rates are

to certainly some that we that had So we process a ability without it was shift XX-month felt to it work radical with number. in be unprecedented parties process. like of through put come this where Keep and effectively number mind of party working up through not capitalization no what but out is appropriate is. alternative overheads, But an that's we number on zero a are The it.

So and construct answer, that the just that regulatory a where, question we an you have seeing issue would opened trigger associated be would up process, say making immediate study -- if change that with not an don't to in again, should consistent this a more as a issue. the with rate

Vedula Murti

And it's almost it to certainly inevitable as as soon sounds that be that soon you're filing as -- like practical. almost as practical going it's

And much of and we what to start and make what terms pro-formas So year once type of test the types discount? me allowed you in remind to how should be over adjustments be process can other a you'll expecting there? you of

Mark Darrell

Yes.

these on for we've issues. reconsideration again, asked So

be. get needs these can the commission where to it more still address issues and So

after customer process to and in then then So We're work get they're of Rate point again, in benefits. Missouri, they on a us path file through. trued place. to through XX-day time. had not front notice that a commission. cases gets to file to the are in out up delivering but and Should We looking and rate other the of that roll back try come historic this case

up So were we date we updating test later would case. through that at year a that a look truing as in

this to we we'll goes that that builds new all on relief a place a to this case in then and us to extent away can construct extent So be to in the quickly get sustainable. looking something the get can't we do And the issue consideration. is yes, current new fairly case,

Vedula Murti

So it sounds unsatisfactory the based outcome. like was on your an one consideration, it answer,

Or would given that around year-end? course gave season, would the term? the then year, holiday notice XX-day the then adjudicated With it with year year of were that decision to this be March, filing full nearing into April from slip over it of we if the run and next it that a sounds we're the like

Mark Darrell

would we notice commission up a We date, to thereafter case take file current commission days think terms, solve suspend usually it months. and -- commission quicker XX-day that it it can don't, it than instance. again, and in issue in sometime hopeful to XX the they will the the final roughly Filed months a this decided about on more, this up after we XX and just extent a haven't can we're takes or the To these the in exact it bit maybe XX little They do the determination just prosecute that. but for case.

that's resolution there So this but there's a previous case, focus FERC. getting the that is to haven't lot in fully consistent worked of more our commissions with a through, we to in come variables right now

Vedula Murti

Okay.

and then clear, days’ XX I'm we'd in if notice longest duration have period XX So here, days’ viewpoint filing. the prior for then

months. effectively X it's So basically

year it of then call the at the beginning We take. give we or months. around So and April, started XX

its if would it be run fully XXXX? course early to it then were into So educated

Mark Darrell

that from file only to are notice months we we the XX-day on out at XX-month case and looking a that the had outside. given we for treatment case, XX Again, these whatever the that. XX look would fact just did With there, issues case, certainly expedited you're at if

exact give prior But this commission with be all to haven't hard acknowledging. date termination set for we it's So you date, starting can discussed the because consistent that we the again, the with and and again, haven't an avoided process.

Vedula Murti

thank very Okay, you much.

Operator

to our conclude remarks. turn any over like I being to session. questions, would back for the There further Scott Dudley no will closing conference question-and-answer this

Scott Dudley

Well, joining us for thank all on this you Thanksgiving week.

Thanksgiving. to you healthy follow-ups. forward will look that to be the and for We We the of safe a Talk day and around have any soon. rest

Operator

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

now may disconnect. You

Spire (SR) 22 Nov 212021 Q4 Earnings call transcript