SR - Earnings call transcript Q1 2022

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Operator

Good morning, and welcome to Spire’s 2022 First Quarter Earnings 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]. is event this note, being recorded. Please now Scott Dudley, would like to to over conference the Head turn I of Relations. Investor ahead. go Please

Scott Dudley

site Good either the earnings our Events may Spire’s from call. to under it that on or and morning accompanies first at access the There's and earnings spireenergy.com download Investors a website quarter presentation under you fiscal may you We room. website release it webcast then news XXXX an webcast and our from this news morning, our issued and welcome Presentations. slide and

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

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

Utilities. Suzanne. Vice and I call and Steve Executive of CEO; Spire Executive Vice today of to Woodard, will and Lindsey, Rasche, Steve President Adam the room Scott and call the that, Gas and over in Carter, Operating Sitherwood, is President Vice turn today Officer; Chief President On President our CFO are CFO. Missouri the and With Spire's Suzanne and Treasurer Also President

Suzanne Sitherwood

good you the those morning call. Thank on and participating Scott to

our communities a moment to thus employees our working in our Here provide reliable and to to our what take community, natural our our due begins gratitude service for world exactly that's I storm enrich keeping energy that's busy the we're week every advance is strength to keeping major quick everyone to measurable St. a and every and are every people a that here positive gas, clock do. with and Spire supply. safe resilient natural like Spire, the the number life who energy. us. We this to goal, everything ends Louis challenge, region with and mission. winter impact expecting gas on At one After warm the around we're use make express of round

and of and advancing, and that we Our spirit future in energy forward, us energizing the keeps continue innovating, regardless stepping challenges.

As you order so STL a challenge know our an Pipeline. a we unprecedented or to of operation in the number over of Missouri rate including review year completed continued faced recently Spire and challenges the last

moving to continue to that into significant unfolds we December. address these issues As effect fiscal including rate order in the shortcomings XXXX forward went through work the late Missouri

commitments. process outcome in the delivering already Specifically, to at remained repair At priorities we're we Pipeline. FERC remand through working a review strategic steps are Amidst certificate taking the and for fair a secure have rate future. operating we time, new regulatory Spire and reasonable same general these permanent on the to a challenges steadfast STL to our for ensure

We're and operating Missouri, in STL safety today. capital enhancing regulatory we all commitment our our of in continue through emissions reductions new the Lindsey investments matters his including provide Pipeline, methane businesses, We to amounts adding carbon technology. infrastructure, for by invest Spire innovation will to our from be customer Steve as including in system fulfill company by reliability information neutral doing a our gaining furthering mid-century. significant our more remarks and and while upgrading this capital connections service into of utilities performance customer to aspects

will You we in our everything on first create do Steve our increased value know Rasche for significant for details communities shareholders. and earnings. strive that provide to provide always support we our quarter

As we costs. per $X.XX you impact which weather seen the warmer and reflected higher our have reported of on share news already release, probably

I'll pass call Now Lindsey. the to Steve

Steven Lindsey

Suzanne. you employees that especially I and on winter to through heating and to focus Thank and gas maintaining continue who start their acknowledging want our safe customers, the season. also during important efforts by are operation service reliable delivery our dedication outstanding

which all year. order I over about been Missouri closely First, review talk wanted you've following rate the to the I last and know

longstanding November on As on in discussed orders an deviated Missouri. call, from precedents year-end receive XXth we amended order we indicate including

aspect Our been costs virtually have established based to prior return in rate capital on decided and structure of case base was from the on what and of every to approach cases. and treatment equity

costs. We has the of will XXrd. of utility first rate negative overhead impact. in issues the significant effective other we return debt was a and of in potentially commission final the PSC costs. lowest a staff areas of many the Especially the in of December due while short-term where return was part commissioned of issues capitalization state. of capitalization Capitalization for in case to rate resolve than the recovery deceased inclusion be parties, large audit received The starting time the overheads non-operating overhead the went also want paused few the with resolution. an date the the order structure. for will most completes non-operating was Two of capital of equity problematic of normal Missouri longstanding were much which non-operating against This to order in to due the and practices be recovery lower order larger

study currently with consideration to for language did deferral expedited these those of case. working calls costs. provide of allow staff a are The at future on We mission

purposes, the not not impact necessary defer estimate that prudently does We order the be reporting to However, net incurred provide million language million. costs $XX to are $XX for capitalized. annualized financial to sufficient

full gaining page we're turned forward conclusion moving case including after recent overhead clarity to that with plans is general immediately in Missouri. it issue with the this case never rates one, natural provide earning cost intended not newly-ordered rates so interim. address rate on another the two to overheads. follow including Missouri time have cost mentioned, same reasonable to the file essential return We the will most in non-capitalized recovery and Missourians Unfortunately, continue the new Spire At gas of investments of to a don't we I the work to upon. do case expensed that of service reflect actual issues amounts for new actual just many overhead the rely made The reflect and allow will on benefit customers. service

recovery investment, service, costs The inflation. additional file standard returning to impact capital focus updates we of a and return of on on return to and of to an the opportunity include also will recognition it for fair investments. Importantly, case will provide industry earn will cost our more and shortly

Xrd, winter. process authorities continue in issued to have new let pipeline since recap been fighting St. won't certainty certificate with remand the of stand to the where me of operating Spire to It FERC's Pipeline, gas timeline and a go issue including provides entire we temporary retain for provide Louis they open-ended to history through supply but last pipeline FERC STL FERC a certificate the remand. regard the this FERC summer. the I on of operating while On region allows of proceeds. quick that also operating Turning the the certificate, December

to XXXX. is process, environmental is supplemental the will process into likely of part statement. FERC underway As a Remand the going prepare and impact continue

We infrastructure continue our capital replacement focused expansion. and almost investment natural gas entirely is delivery which program, on utility

$XXX totaled including our CAPEX million, for quarter, For the first replacement. pipeline $XX million nearly

in was business record year's investment million pace. spend with new as Our was to and expected. would that line was note $XX I close down non-utility last

rollout billion, five-year remains programs Our our mechanisms of which long-term focused technology, pipeline good and through plus than innovation new the capital investment on XX% including more ultrasonic of the plan have $X.X meters. business, recovery XXXX with continued replacement

drives at With and financial to rate to X% for supports I'll by it becoming growth turn review that, mid-century. Rasche Our to and commitment utility spend carbon-neutral and X% a system base Steve? Steve update. reliability company our a over annually also

Steven P. Rasche

everyone. good morning, and Steve Thanks,

nicked weather while figure. here the weather quickly a Midwest the warm of Go As first week. this in Suzanne as turned us the event noted, middle good-sized in weather cold and we're in has quarter, snow

a start review with results. brief of our Let's

tripling weather and warmer quarter, economic net of posted we first significantly $XX earnings costs. by million, year million reflecting the last $XX higher For per share, $X.XX or

Looking last below businesses, of had our earnings year. utilities million at the roughly gas $XX $X million,

warmer mitigation for I As sales normal. this for load, were quarter while our and do the our mentioned, warm, weather weather opportunity And have residential commercial roughly was we load off-system quarter. this XX% lower than

weather costs Again, of you the see last Gas were appreciation our down thinner to Marketing demand wide $X.X And market from to due year. million slide, higher as on factor conditions, especially year's the higher year. last timing. favorable limiting other largely last than with earnings including next compared lower cost million, and much corporate $X.X this posted spreads Additionally, were unusually was quarter less spreads. storage finally,

million, in up And across $X in quarter, were reflecting $X costs weighted margin is recovered margins Looking employee-related up up would costs recent accounting pension been by filing. remainder second at and rate commission lower Depreciation offset demand $X these maintenance timing offset of regulatory conditions. utility lower slightly This heavily cost our before of overhead includes deferral. most by after costs of bad Remaining rate base while flat costs were new reflecting details the largely reclassification contribution our Missouri expenses Missouri by and growth. the on rigs Missouri and other million fiscal that weather especially costs and adjustments million was Operations X. than Slide will marketing of year to ISRS the $X Gas utility our value the the few our was and considering debts. be have less market were Gas recovery capitalized including new of million as a order. reflecting more net higher to due as costs were fair here reductions, are increases. rigs increase Alabama, down,

be plan our our long-term the over to driven next capital confident continue Turning prospects, by our billion outlook, spending $X.X five we to in years. growth

$X.XX Our earnings of and X%. was about share. related remains fiscal to to between Storm XXXX which, This talked our as results estimate $X.XX growth upon earnings quarter, less is last target per X% rate share year per growth URI we Winter based

rate XXXX $X absorbed as earnings Our most recent the Missouri year by to target our target created per the unchanged divot at below remains share, fiscal falling growth order. we $X.XX

get Here's lower be how of file our reflects fully to rate portion addressed Missouri's we of the we from bottom range will case haircut range. until return in year spring. uncapitalized current continue a our about the portion will more next and rate this think absorb costs, additional top expensing of specific we range that The will The includes our this half to of the rate Service goal the overhead be language recovery of recovery here and from XXXX Missouri regulatory XXXX audit. the over earnings continued of the our And that XXXX, Public as study and should part looking might staff trend regain add accelerate based reasonable near-term beyond and growth our treatment, line. our capitalization completion with will in we gaining Commission. overhead Missouri certainty rates growth I risk as

our to financing briefly turning Now guidance.

have remains liquidity we and peak hit ample capacity our Our needs. capital as in we working strong

unchanged to gas long-term strong to some and committed term and capital our bonds structure financing credit the in remain reflects largely balanced Missouri December excess We of remains Our issued Spire a metrics. plan costs. out

but our reliable above treatment as investing it we we and As safe order. this for to a year result you, reminder, future Missouri over Missouri delivering to all regulatory regaining last on FFO do of for of that, rate and service customers reasonable Suzanne. target, communities, the stakeholders. anticipate me direct turn weaken to our With year the are and that benefit summary, the In let of we back laser-focused a that while to ended

Suzanne Sitherwood

you, Thank Steve.

review. regulatory track to We as are with matters new our general Missouri work for on we a rate in the year plan resolve via

that reasonable outcome. we can We achieve and fair are a confident

and with X% to We the base with the support plans over to laying rate on investment our capital down year growth Spire. an growth groundwork innovative, Financial Pipeline progress look pace you look questions. ready updating your for and per We and and in Forum continued forward the Thank in sustainable having share now are long future. we May. AGA you the to energy Spire term. earnings our to to resilient at unfolds, X% for person connect in on including And interest investment you your the forward to STL opportunity as an take We're

Operator

[Operator Instructions].

with Pourreza Guggenheim from Shar comes Partners. question first Our

You ahead. may go

Shar Pourreza

guys. Hey, good morning

Suzanne Sitherwood

Shar. morning Good

Shar Pourreza

it's if here Just two quick okay. ones

on sort the Just of GRC.

just and could So embedded the a case XX any with you into, or once few will has you do items for that case review you were [ph] cost it you file takeaways in next of been going just sort overhead factor that be early audit and statutory the take given be allocation months faster the the how March, will rate filing to expect in staff, the case?

Scott Carter

Good morning up I'll second start probably question. that, think the and Adam I that of pick will and half

We're we Scott rate audit Missouri. case obviously the it question so is of file got together like XX-day means data Spire, that's will period. earliest that. to quality. the filing. need then work put make to feel the Carter, make President progress this exact overheads file sure to notice. on through the close seeing going is filing Sorry, We've timing, The picked we case we But we haven't That XX-day on we early March. a be that and the We're a to can some spring,

far timing As statutory has commission the an the as XX-month goes, window.

at look won't that and to to for we just say, be look year, place out to came reasons have of most are have As case, in it so lot that because of they'll back a think updates recent necessary case, the the they a proceeding. that have the through

opportunity up understand case, setting us that to full way up gives the XX-month have everything to take commission resolution that can we're the in of So but the that cycle. a we to expedite

making the sure case long for outcome in frame. forward in get a for the best it the put and So we're to right preparing haul reasonable time the and best we're

Adam Woodard

Shar, hey it's Adam. Yeah,

expect or On the there, this from commission, we to ongoing, commission from up with We study in report staff. case. we'll go the working is next that digested be to of recommendation staff fully then to but expect and with that we're wrap would do a quarter the that kind

Steven Lindsey

in Shar, points of point Steve. would to our covered, addition and the is two inflation, also this will last cost earlier And the impact the One make investments, main that Scott include I this infrastructure we mentioned that of service.

but has been So of what it solved. Scott entirety, a its mentioned, already is in lot as

about just to issue you kind two be trying than shouldn't it updating, If case, in much the this other of main really address think issues. really

Shar Pourreza

I entire administrative to bit you mean, the potential new to Got And the perfect. the -- little release process or XXXX, do XXXX? on I XXXX. have the of mean that, demand then continue you to STL permit on last certificate into before any it, like, just certificate idea issuing your expect one of a Do you just clarity says come permanent Pipeline. so you not through mean, clarity you see what expect process obviously, guess do for until

Steven Lindsey

Yes.

looking go timing calendar went XX-day the process for typically, that probably occurs so of entire after how for somewhere if that it's a period of -- some using guidepost the as XXXX. you the get bit we through Then on you with kind of to about year in they're That's just into And EIS, for what FERC that a And kind first of extended frame. time on we That's right remand there's that's be process. that piece that now. has going new if this the comments we're the we're but that, a it, the think through little not indicated also October than environmental more certificate. assessment typical to

Shar Pourreza

That's clarity Thanks Appreciate that perfect. I seeking. Okay, the guys. was it.

Steven Lindsey

Shar. Thanks

Operator

question Sunderland comes J.P. Richard from with next Our Morgan.

go You ahead. may

Richard Sunderland

interest I alternative the bit a and pipeline Thanks first. morning. to there? more with taking Pipeline to want supplemental little up it EIS just in for pick to solutions the you Can questions. Hi, to good potential speak STL my

Steven Lindsey

start. Sure. This again. Steve I'll is

think are alternative, from And so is an you place alternative. perspective best things the we the environmental some as pipeline view of that looked about being in an at from being the

if to option reinstate of ground. would Some of an just some propane, to we the perspective, take the having out compression is options things have such relative some the this of And the to of best the actually then pipe and as be think outcome. from the physically environmental you

Richard Sunderland

And bit ticked around turning Understood. the case. manage the the in that? then upcoming to how handling more rate I little go the noticed strategy to back quarter. Also, a rate up structure, review, maybe the short-term timing to you Could cap around maybe debt

Just curious into, on cap that drivers there factors and the structure how case? I for target the guess,

Adam Woodard

we'll to here short-term I out Hey little Rich, our liabilities. about well. wait than to but the Missouri in Missouri it's your Adam. it's cap assets mean, Yes, I no, But lay to what short-term about -- actually the the short-term going reference we're -- to case debt obviously, are would later also And a current attention as bit not debt structure, this debt, actually higher year. we're declined fully with current just we're excess our quarter, our draw carrying in but --

that putting case be we'll and robust So on there. vetting a through

Scott Carter

decision, what in commission to we Hey on think the their with Richard, ways according debt and has the and previously. consistently when the pull previously commission, is short-term short-term the short-term capital under. recommended equation. to any base debt, short-term Historically, with about That Really that the into Scott rate to excluded We two the report premise filed [ph] that. what commission had obviously, we done I it. that that had just didn’t from from Staff will structure. add this Carter. Missouri pulled finally financed excluding and found made assets in their was assets the

very a of that mainstream across rate country. making now is right mismatch the obviously, the So with there's out

short-term the in or included and exclusion solve of assets there's to so And route of back either debt. traditional two to ways short-term it, it's going

which path certainly that there's of forward think resolution commission reaches a picks. the path we regardless there So

Richard Sunderland

color you. there. Very Thank Understood. helpful

Operator

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

now ahead. may You go

Julien Dumoulin-Smith

Hey, on talk parity. ago, team. if opportunity. that, pick First you we respect think understanding Can little for good more to the just some with where the moment off, to short-term up the a Thanks asset bit Rich debt of time you a just stand the side about mentioned case got that do about know of can morning I about this you driving piece filing to we that back and there, dynamic? a where being short-term talk Perhaps just point, with various can how just a was the asset parties that elaborate you number parties, back you you've coming, you onboard think short-term but consensus as I earlier, if rate that commission come driving specifically but in know to this of it?

Adam Woodard

Julien, this is And Adam. Sure.

a -- would observation, costs winter of Our into last -- I next to balance. that a like a carry cost will bit now winter carry And have we we this kind the It many down. gas into average full was XX well, deferred utilities case, costs certainly, and And contributes have quite full storm which we have of of months extra case. then there. this going as

putting the be we'll all and that certainly parties. intervening information having that all all into conversation case with that So the --

Julien Dumoulin-Smith

quarter, expecting through Got that thinking it. said But of just you remarks, dynamic to short-term the are year, think, lower we thinking specifically this in evolving the this debt in confirm of your course just here? course how here, said earlier, higher I how overall are I was you the know leverage through the about about Missouri you balance year,

Adam Woodard

the quarter-over-quarter. debt of Well, throughout I you're Not sure rest as -- as to year. that as declined what far as has is the what it evolution Missouri's far short-term mean, an of something referring we --

Julien Dumoulin-Smith

level from as kind more know that not maybe higher higher. just alluded confirm being that outcome being debt the denominator to to I you're than FFO steady those the remain increase You're driven with to necessarily by Missouri? at rate But a short-term case here, well. you lower leverage I expecting or lowered expecting wanted of balances to here

Adam Woodard

fundamentally the relatively lower We FFO will steady. you're rate do to But of lowers return believe correct, debt it metric. be

in flow. lower that cash that So significantly believe don't term. the materially near if up what that's does pick you're or short-term will referencing, We debt necessarily

Steven Lindsey

point the with Storm term sake lot which out million, Julien, that gas a that out excess associated And only is thirds in this we we did that's of we by December, can out. I'd that did Winter Missouri carve Yes. this Uri. hopefully, in with of And April front is the adjudicated that also for term almost argument's ongoing about Steve. of cost, $XXX the down in But marketers Commission once year. two Public is dispute Service

of So fix floaters on we did component. to the carrying in book some bonds, that cost millions order $XXX

So a utility. structure doing the clear the see reasonable things path we smart manage for right But to we're cap forward. the going order of financing to rate regaining the in including return, right just

Julien Dumoulin-Smith

Thanks the here. Alright. for details

of you the year weather one capitalized a this being the here, if within year big pieces picture impacts the how capitalized this there's will? question, know amount are overhead at big obviously, the obviously, range obviously, and the bigger you Just position lot question thinking you deferral year a for the guidance the would how start and on and/or yourself of just one, about but range, overall moving given, for I of

Steven P. Rasche

a right, as spoke And the be. with comes And overheads. range Yes. we to with as remarks. on you're very to a it in down comfortable We're it bit a wide the prepared breadth question earlier we just can

rates in because forward. the and Missouri rate last become which has our going case, rolled As that's into bit remarks, structure the mentioned variable prepared the we in component more rate we a of was our ISRS, charged in variable

more you when quarter QX rate structure. in physically back So you will QX, see in look more the now, at recovery we're therefore, variability, the versus last

need quarter, through. but where get be for that's every that we over want deal to the we And risk full of expectations to That's process part to we're with -- manage of year tools to time. going is have to belt the tool still longer our some go the drive case, another rate unfortunately, have we to but to in knowing not general that clearly we utility, period every a month weather. not we're we manage only a So and in

the and top so So day, every think that's being you able is into to we're which do assuming do range, we the structured mentioned, confident the if range I would think manage I of we be what The get where to utility in end is part that to range hope as really range about can we the recovery we with weather. we deferral the a in any later from can as of offset has do expensing sooner on bottom and talked that headwinds ground put rather we the might we that and get or stake than or the on overheads about the earlier.

Julien Dumoulin-Smith

it Alright, Thank guys. you. I'll leave there.

Suzanne Sitherwood

Thanks Julien.

Operator

Our from comes with Moreen question next Gabe Mizuho.

ahead. now may go You

Gabe Moreen

Good debt being pretty upcoming prices last pun been the morning norm, death, the me change everyone. no so a how much guess, have anything focus with forward that, needs whether you would what ask be the to again helped but I and much weather I The has short-term actually for to this you filing thinking asked just whether walk And to for I and bad for for you're rate also, quarter stuff else whether that's curve anything gas debt going can GRC? higher, ask just guess about through or whether upcoming beaten then the to spot it's, about time, intended, had case that? wanted like out

Scott Carter

jump anyone Yes, else Gabe in. I'll start and can that

Steve had as anything as rate and far else, will update. the case rate case a be general mentioned, a full As

bad the make. that reflected be we'll will whether be capital that in the you inflationary filing that additional cost deployed as elements, So other or pressures, debt, about increasing think

that case, a bit. So requested is it Weather elements. normalization, that but full will filed on Obviously, areas, include have we expanded we're all rate what filing would focus these high-profile a so general be a full we refined those of and update. the have and will

So the we normalization. want believe good that We certainly of pretty we'll it performance would you improved going have and that, forward tightened cold win we as get weather yes, around to as the bring will. we to the performance we do improve make have if range that in make don't next lose events, or refined trying customers. sure warm possible to it into sure balance don't that events, the in we case with well, we Again,

Steven P. Rasche

is Those the that's share will norm of things Gabe, which well. likely customers. winter commercial sales, system off be that edges, will around no it's the this okay, actually entire this the not back And fairly Yes. continue worked to most more which the the The exposed weather and areas Steve. we load It's -- over But because than we be over are with and will doubt, of to. out. time want heating the And one winter. update, take it season, through draw to everything don't the get to and we to down line, once chance next balance us give a what year then much the a make half we'll going have what during better doing I the year. -- are for and delivered the feel for what's back us the entire of forward winter it's we

Gabe Moreen

sort new stand developments can an moment, efforts, update, get I things at of I any RNG quarter? Thank past if you. then this on where also guess, And you. thank just Great, the

Steven Lindsey

Gabe, I'll from take to a start good you at hear this it. morning.

Missouri rate at started, opportunities that's legislation right include the think projects here to are just then continuing rule-making the kind opportunities extended active, we're some is this to of with where opportunities, RNG But working we base just looking stages are an of look for in to we for which the we from process, again, in be perspective, passed. in now RNG passed rule-making being obviously. be But lot could there. now. and some legislation had given continue So that of particularly the we've towards so We're a and projects there and Missouri,

Gabe Moreen

Great, thank you.

Steven P. Rasche

Thanks Gabe.

Operator

Instructions]. [Operator

question from Murti Our Bay Hudson with next comes Vedula Capital.

You may now go ahead.

Vedula Murti

Good morning. Can hear you me?

Steven P. Rasche

Yes.

Suzanne Sitherwood

Yes.

Vedula Murti

to the give what report is the commission will you the on of the audit the One, to can on, you You may can a us working alluded or to may, presenting report that present two, address the address? what staff what study overheads. it [indiscernible] And and this the start perhaps commission? to remind the sense that, of not scope when

Steven P. Rasche

I associated soon getting Vedula, this, procedural you right continuing this because as are isn't but to could is that. absolutely I through work this next process, Steve. can Yes, with shot aligned one wish to I'll it. we're we addressed both this the as we at schedule, work working staff a I through we're give take possible. tell in a just you as there

As done we to purposes, capitalization and we then will month relied capitalization a that's engines, what The now. that’s that a quarter. finality a we'll be I being at upon mentioned let's point, answer whatever procedures issue formal a the they which a that. month the addresses next which the sample is formal capitalized right until at are this large with order derive fairly really at But study to great. and staff forward. capitalized. will of don't population if which the comfortable internally sample, render to our This capitalization way and bit -- is of I really question. in decision taking kind to can't speak amounts point, time process well-trodden And Public classic your they of needs what to staff order amounts pushes will which you or being they that will time earlier, I work and FERC is the percentage. If is point know for why the a we're that we'll you figure frame two And in and study, get and quarter, discussion taking a the from they need a that's Missouri Service At is on on that of which the through March, Commission, mingle work look perform recommendation approach the in it standard where study that We'll not on. say, that, are early That a can't and a do the staff. get that we're that that the agree, the going

that won't are and looking pot terms the to we snap the mentioned, question staff scope through capitalization, questions forward. answer also to of And unclear it’s doing Hopefully, our defer not really then in process stuff right of that want at. helps. our bucket will the right but related we how cost In study, approach through that as working capitalized prudent we're study that going that as the to big that's next now non-operational the line to we're of that work every the out how is because day. consideration is directly in is, the finality the communications that determine an case. We bring clarify about And or the one was part what is rate overheads. the only earlier teams Think going the we also the whatever it capital isn’t AAO that's be are of with on other the for believe this

Vedula Murti

[Question Inaudible]?

Steven Lindsey

Vedula, I'm sorry, all breaking up. you're didn't up pick that. We

Vedula Murti

Inaudible]? staff in I'm wondering commissions whether [Question the reporting

Steven Lindsey

we certainly the there wording how don't out. certainly could see anything, account commission things, for to but affect their is determination, order we wait I to -- comes that Yes. want -- predict the and how and don't Right. we'll

Vedula Murti

is completed is suggested given [Technical comment, and the business And one until October STL basically as the the timeline it last Difficulty]? you one thing EIS in EIS the usual Pipeline, --

Steven Lindsey

Yes, I'll shot. take a

remand is in go the think case. is process, this question as that pipeline, the business the as it through for I usual essence, and was, we

And have comment October. so the again, you'll into is which targeted Then to pushes completed in XXXX. period be the that, after EIS

of is as of given we'll at Suzanne the very we're sort the which start winter, of to calendar service pleased the have Missouri. events at doing get it the through the along, the call, So now, was mentioned do side and that in what this this right customers having intended of weather to clearly, year. pipeline eastern really all remainder the we're And

Vedula Murti

you. Thank

Operator

question next Sidoti. Brian of from Our Russo comes

go may You now ahead.

Brian Russo

that costs. regarding curious overhead ISRS uncertainty million XX Yeah, that create the seeking with the just the of? Hey, Does regarding uncertainty morning. filing audit hi, you're good recovery

Steven Lindsey

so to Brian, with Yes, of ISRS the date. capital that the deployed commission's filing, relates effective we all final this completion XXrd the filed prior issue started order, December determination the is -- date. around we to overhead The under case ISRS capital the the

decided capital case. would to is this shouldn't that they look deployed they context really that affect So in recovered case, the -- be at in seem but it that of that

think seeking is deployed that we see way So but to we're of capital plays prior our and methodology out. we to don't we'll it's the change. out, the way play minutia it, of have again, parties under how of commission expect through through the recovery look expectation a it this long may is and the it that saying, as But to

be therefore, it fully should filing. so And recoverable the in ISRS

Brian Russo

you it, to in ongoing, a And -- ISRS case allowed another file guess right, case rate while filing, not I shouldn't understood. expect accurate? that you're Got is in ISRS March, if to you're going have a because file we

Scott Carter

the case We to We the is case, the We that under recently. Scott rule case, can have a under last which got past. -- again. the a filed in rate been have decided would last this so the changed were ISRS file legislation the we change defer Brian, in case. having last

we see call that out comes on that or commission to may how out, defer recent on we other a Depending filing. intervening when so ISRS most period. playing may And timing this not of and we the that decision in

out that just So the going how it's the right, one. final If whether be to file we they months that's commission resolution be figure to commission out we general see that three contemporaneously, want going to to works case. or determination it's not, want we'll rate when to reserve timing may include say of before the final we in valuable and if

Brian Russo

Okay.

light are to given of a -- XXXX, spreads? of lack terms appears in marketing of In even mild margins start expecting be and you normalized weather fiscal the kind still what

Steven P. Rasche

-- there's more And but we've a is lot this best clearly it's last yes, and volatility. clearly, Brian, Steve. the tell we market quarter, weather not favorable seen volatility more always Yes as this At quarter. was can

We're significant year, amounts more get natural as clearly have before dislocation expectation. the laid last of the because summer remind the when normalized that we year. value our storage a of gas that's from now. in market at positions in an we COVID-related marketplace. in So the had we you And we update you to half I We'll the embedded look to that give had

wouldn't those gives And the I So positioned winter and by milk good normal create it overthink season. weather saw and market beyond and the to of value week, us above and we year-over-year that the were clearly our how the and to some margins in variance, the when serving opportunities. we it's mid-continent advantage we all see are but make take some honey last the we customers during volatility

Brian Russo

versus Okay. from And this then just lastly, impact can you fiscal weather quantify margin what normal first quarter? in was the

Steven P. Rasche

tell Yes. they off We down were bit would qualitatively, looking better at down a far gives year-over-year will that don't of you view. I as our margins although little from as you comparison. imagine year-over-year, level weren't expectations the that but generally detail, get maybe you the you to by That gives

Brian Russo

much. very you Thank alright. Okay,

Operator

This any concludes to like remarks. our over session. I to would conference Scott for back turn closing the Dudley question-and-answer

Scott Dudley

joining And for Financial we follow-ups, at be of all you we'll forward are first looking ahead, thank of many around seeing are there in morning. Well, any the a If this May, in AGA Conference to very much us the throughout you day. years. looking couple time

until safe. be you. be well, Thank then, So

Suzanne Sitherwood

you. Thank

Operator

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

You disconnect. may now

Spire (SR) 2 Feb 222022 Q1 Earnings call transcript