NWE - Earnings call transcript Q4 2024 | NorthWestern Energy Group, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the NorthWestern Energy 2024 Year-End Financial Results Webinar.

[Operator Instructions]

As a reminder, today's call is being recorded. I will now hand today's call over to Travis Meyer. sir. ahead, go Please

Travis Meyer

the Good financial thank year results My NorthWestern. Meyer. XX, Tamika. Investor Development NorthWestern Officer Relations ended for Energy XXXX. for I'm Travis is Group's webcast name of afternoon, you, Corporate you and and joining December Director Thank for the

and Joining have Chief President release and Executive and the an us Officer; you been Financial update our overall and northwesterng.com. results to the walk Lail, Officer. Chief results NorthWestern's are released, today Crystal on at available through provide Brian is Bird, website

released also our We XX-K premarket this morning.

Please this and contain presenters note company's that questions statements. forward-looking the press presentation, comments may your to release, by responses

The the note, see the As non-GAAP second in included our contained Please the in and this financial presentation of measures. event Bird will presentation visit results is being website definitions Brian provisions disclosures, shortly such, section in to well. hand year. SEC replay. presentation. that, opening this the of presentation the to included I'll as remain to the remarks. I'll for and slide direct after over includes Also disclosures presentation Please financial With our reconciliations his and the you non-GAAP replay X available filings be the safe active access harbor for recorded. The archived the

Brian Bird

XXXX Thanks, start Page review. year-end the Travis. to for going I'm X on

serving customers. gas with Montana Montana's reliable Yellowstone service County completed the and generating in Cutbank of new is foremost, and peaks over critical a Energy reaching The perspective, online we of presence station a while from First and million strengthened capital winter and safe $XXX infrastructure safely electric West now We assets. and maintain planned all-time We Montana. system acquisition summer investment investment.

which We transmission customers, agreement ownership plans new opportunities enables incremental we've for have Montana, and remaining regional expansion. large in load for gap addresses capacity announced and Colstrip an for

mitigation and target jurisdictions all performance shutoff reviews we of we provide plan plan. implemented we're reported investment XX% outlook, X% quarterly growth $X.XX affirming dividend performance. plan. XXXX, our growth of GAAP we're base safety to and X.X% service. per March over rate capital and rates EPS increasing is to We -- regulatory and financial wildfire and an X% across to share from a filed safe operational over long-term XX, $X.XX EPS which public and our strong and recover our Moving and rate plan, our by announcing lastly, reliable necessary to diluted And refreshed to $X.XX prior billion X-year payable and increase our power

slide Moving proposition. Northwestern to the next value from a

$X.XX you the EPS you're take yield, rate of X% that total looking to and growth. plan billion X% I just XX% That's our capital growth X% talked about. off our at to dividend to add X% you If

here, able you transmission, XX%. If and think about and -- talk rate than X%. see of capacity opportunities, greater others Obviously, centers we're think generating regional which FERC incremental listed any incremental EPS new total today, about than some about we'd growth load other opportunities, some large to rate things I'll not those greater of do our data growth

of Crystal over above the you capital investment billion the annualized mentioned investment next highly Speaking low-risk executable and we to we that's plan earlier, earnings expected to that's investment capital drive years, of rate X% $X.XX to hand financial shared results. to that, and of that last over XX% is it that And prior growth X% and to with X I the through go base I'm going time as talked. again, with

Crystal Lail

afternoon, good and you, Thank Brian, everyone.

that we've call little busy. list bit a feels There's of was up with, a As long it Brian XXXX things started to. the like been

a to think many where for on a comments and as our financing financial guidance. of execution plans to we as it then performance speak the certainly regulatory fronts, incremental to in I timing talk our and you our a In we're today, year. opportunities expect as more Brian and I'll of my are that discuss that year to 'XX XXXX and of also to are today. to into provide will those we bit with update of to regard of bit focus turn here interested current updated back XXXX continue I So to plans, expectations also capital many

GAAP more do of last detail basis, So GAAP Slide provide XXXX compared from and $X.XX as bit both To earnings I'll to then a results? a And how we to conclude full QX compared mentioned, to on earnings X. move QX year. year-to-date, as for year $X.XX $X.XX Brian As $X.XX. that's

alluded mild impacts of to, in I are results other QX the As weather. our with expectations than our line certainly

probably basis. you'll GAAP think $X.XX being any planned. many us I hear a of that than on from of utilities much delivering milder QX

slide, related outcome a which benefit included I to also we that prior XXXX Also, the from results here next those included QX rate review. are walk Montana periods that pressures by on would remind you costs, tax impacts operating to I'll in interest. and offset and out the adjusting the Our adjustments related some were in final our through favorable QX depreciation

out $X.XX, adjusted I to, quarter. tax X, an and weather see the adjusting $X.XX, both for $X.XX Slide as delivering all that delivering you on alluded items on of basis So

$X.XX prior Slide detail give on an you versus normal what weather that Moving QX mild from granular earnings perspective, adjusting we're the $X.XX versus period. ongoing to out results reduced to XX by and

unrecognized adjusting period also benefit the a prior of of $X.XX. We tax are out release

net did period weather. basis, $X.XX $X.XX of to you benefit unfavorable Last tax on tax gets benefit again, year, you So the weather, of favorable a QX year. out have $X.XX $X.XX a GAAP this in of is $X.XX for that unfavorable $X.XX of we

QX weather it certainly So a QX. of in versus $X.XX a an on was again, in comparatively, alone, $X.XX And period. mild prior $X.XX basis adjusted the

of remind bit maybe a to results. Slide recap full to Moving year XX us all and

some significantly an year offset impacted a talked was on basis, adjusted QX, We XXXX XXXX GAAP line. adjusted in $X.XX by QX. by our earnings For earnings. which note mild QX is cost of mild difficult much were by in on I in interim decision. insurance a of rate we pulling the and over delivered headwinds $X.XX that presenting We weather, unfortunately, a weather, higher those costs, our full benefits of about the impacted on XXXX increase of operating would X% on call, And Montana out also, impact an basis. basis, at

that we're XXXX and of deliver to adjusted of pretty growth long-term So basis all delivering on after X% an those to of on a committed growth things, proud basis.

and the many critical at the of about improvement business that's execution it costs deliver you You'll offset the and period. of go adjusted were certainly note without $X.XX those can the and over execution I here. costs side of and largely, March can't missing pressures the talked that or offset of seen recover customers. benefits increasing environment basis to And by, control Also, of the depreciation across and prior on interest. In cost an from our driven tax we've regulatory the already cost the board this think needing line, and operating to see the good to left headwinds XXXX, earnings was by $X.XX margin improvement across $X.XX

full of that, Slide base full just I of Moving that, the million impact XX. base to is year that Highlighting year new and rates of a both Dakota. in significant Montana $XX.X mentioned rates South

you, rate revenues year PKM when last our QX, included of transmission and favorable from Montana Electric as which then impacts continued and earlier, electric one you had by, gas SoftCode this in at improvement Montana I So would the offset to margin we impact. remind alluded detail. review, I look some in

offsetting So already also detriment $X.X the that mild you there weather see million of discussed. and we've

very Moving wanting compared on to adjusting normal as what prior of Again, adjustments earnings $X.XX $X.XX full weather are by a mild period. we be year earnings, and reduced versus detail basis out those to our the to transparent Slide XX. on to

you net to all we the benefits $X.XX. Then and prior of We $X.XX also periods. onetime about to in talked between that are had that here quarters items prior X have QX related and QX tax

the and that resulting unrecognized X% in tax we're statutes recognized favorable of benefits previously basis, the overall reported or benefit previously lapse based an off there. limitations again of then have EPS guidance spent. gas QX, out about final of X.XX% repairs XXXX come in talked $X.XX recognizing adjusted improvement of had And We the off of

quality to here from bit the credit financing of a earnings plans. our and detail of Moving

as FFO We with importance and the you the drop downside lower XX%. threshold. concluded rate have support we of Montana, and above QX side, lack in interim of our electric what to reported the of XXXX talked on of the we than previously below improving Unfortunately, downgrade bit to have quality a about credit and being end our threshold our particularly commitment of

our to, track alluded remain have and sure commissions our improving balance capital. I improving making number, very and credit so. communicating credit and balance we'll our with clear being have effectively to we to committed of do to quality cushion sheet As we to quality commissions depends low-cost do work serve here. improving path We a this that to have upon the ability are able criticality, moving customers we that focused importance here it sheet understand and certainly and our the been and forward to such continue on and a We our to supporting this

large debt I a assumptions. XXXX, plan, about because the potential that to and included those in what's we'll opportunity. growth is capital we a to load think optimistic that I note and we detail believe plan are important assumptions not which some regional out of Brian debt important to plan and on the our in solid transmission is bit to opportunity question. current start both we're our uncertainty financing plan that and with we that on good having opportunities. see and to fund for will looking we building Again, transition what get regarding ahead, And the we're do think current closing I financing here, capital and included you'll investment in some you in the certainly are on the books to a how term position are we have not financial incremental call, incremental development. confident the growing out a on next that forward that's that, of the regulated Those more highlighted From XX and group thinking look laying forecast all is for those that it's working our and give but note our steps

X% of and deliver to growth target confident deliver regard to are to consistency long our the sustainable We with X%. term getting in ability that earnings EPS on our to over growth

those our commitment on we've base Our to delivering same are on certainly XXXX period ourselves to long-term over long from shareholders updated while range remains to we deliver the financial growth that and expect accountable what holding and targets the term. XXXX,

While size opportunities will the and to plan about equity note also push Brian to overall us And increase, upward in incremental investment currently. in growth to plan equity that with needs. XX% long-term an our in funding continue would addition, Opportunities you'll talking increase need this started drive incremental we range. capital off not those

on XX that XXXX gives investment XXXX. capital detail from more Slide to plan you

growth. designed need in a long-term does, to cost-effective and is our safe, but reliable we support as customers Our and our to serve manner capital everyone incorporate support plan ability investments to

generation of the our and again, you as Our X-year is in projects. and current incremental increase to the resource again, we dispatchable here talk reminder, billion, that over opportunities Brian about prior low-risk, plan. any in you bit driven is Dakota. before And showed to again, here by That plan of forecast And this a includes investment to capital of executable plan self-funded. a XX% a expect X-year highly South the a addition are going $X.X increase

So to also I regarding with on update you would regulatory an that, move matters. Slide XX

and at there. filing would and rates. approval the model how progresses I off sense is is commission with settlement internal go reach certainly South settlement from that. quietly commission July to December Dakota the -- we we of working Dakota January. implemented Dakota intervener I'm Commission with that And and make to a Montana our So a and the in regard reached our staff the rates during got ability many efficiency look about and received fantastic of and a pretty know rate implement of have a a have team we also give that. so by that testimony you in here that to always taken by and I a Meanwhile, filing impressed review the South final gas QX, in

be here sets with the the rebuttal address in is on thing and We settlement requirement The the think testimony early filing we'll are negotiations. currently March. regard interveners about would that filing, a is from to base working primary reasonable, constructive I for comment revenue I that and testimony

We to, delayer that is will our and as alluded that in a alluded directly filing. mentioned, rolling out progress QX we've update we not to outcome guidance we until as to, And you an call will I think XXXX in have proceeding. in

it back about Brian the slides. to So talk with that, next I to will turn few

Brian Bird

Well, we sit here in February XXXX.

incremental XXX taking on about coal days away from some we're So strip.

existing remind add to to to Fujian it folks, total, I days affordably were while a piece insulating ownership, our system long portfolio to as and is improves of be in reliability incremental February both megawatts our -- from X,XXX. would cost maintain energy that no energy capacity, of XXX us those in in portfolio provides moves allows capacity a market capacity pricing. Avista so coaster the reliably up, customers helped And which critical short serve independence position us we customers these our acquisition volatile which will cold and And affordability bring integrity and is that from

significant opportunity for total from our existing over provides costs more mandated beyond XX% capacity increasing spreading our kilowatt large Montana say, stabilizing unit and in plant surplus our addition, and for ownership all protect Oregon XX% closure hours, to at new deadlines. In control to customers. to that's by open going Colstrip fixed to of lower customers Washington, today the per And load lastly, from provide cost portfolio, the keep of the X,XXX, interest our

think around at megawatts large a data would the about December, agreements XX intent start that and to So load know to That regarding We've center I page. Colstrip, expecting in December, forward. come a continue be grow work on announced to actually. got I move mid-XXXX. I to Montana load to just I December when XXX, commercial XX, mentioned in reminder initial a but move of to XXX. customers, And that to of to letter there We expected

thereafter, on their on Shortly well. our facility will megawatts which generation become Atlas the expect customers currently of in a Montana is announced they over transmission side. one But from on as we And Power, our grow to XX X,XXX largest time. customer to side XXX

confident already And so again, tariffs letter within regulated we're of intent, but as an customers existing under done transmission Both our customer located very serve and existing to customers. want soon. as here our get those we that Montana that's we'll relatively system, of

on want think low existing about we I any we And over in that talk basis hydro serve which from and when and serving portfolio owned about total incremental resources contracted in to a and Montana, and with protect As able point we, XX% are I capacity our megawatt want of X/X be our in have, I'm excess carbon-free Montana our our customers order our is Montana, these proud from portfolio to out certainly customers now to that to facilities. hour customers.

with process Any their for interest generation we also new state. demand new South deviated have PSC the to interest and indications a PUC existing will we interest the data interest. customers Snd also center the indications incremental In Dakota that build any beyond already with to would to established structure have customers require load work how South develops meet appropriate load contemplate -- significant both by a work large We we'll of to with South capacity, load Dakota, But in significant tariffs, there's with need in Montana have large -- and rate they Dakota in we tariff. way, the of capacity. South Dakota. Montana

the for Last spread ability a customers helps hours in, discussion revenue and and also a night, overs much, the thing kilowatt data those us, of These I revenue, spreading much just costs incremental is one hours, rates lower development for over earlier be to kilowatt say mentioned stabilize lot those for economic great there's communities providing and that bring fixed a they'll larger that be they'll great moderate increased bring efficiency cost able kilowatt would to too, over to the per I stability everyone. centers operating around tax us, that's property data company. cost unit that and a for as certainly centers.

out point that, next the we've transmission well, December page, opportunities. I'd mentioned with as also So in on regional the timetable

participating are certainly certainly this utilities this think heard are and Northland's in North about There's about other lines positioned line we call this. on I Connector. that excited on many very But uniquely Connector.

As at on Dakota, over if And with MISO ends dead and will, you extends will the you where know, western it North also Colstrip certainly into it interconnect, you side. both SPP.

this the only by We in the utility side are both line. way, of

And so opportunity. have excited develop. Montana, United certainly participants excited Grid line in to We the and need and move forward. we transmission to those see within other to the with work continue But about it also investments. that to

take that, for perspective bolster of only open And conclude with things Q&A. to of and transmission to up and allow advantage benefit about for The for customers, to incremental the imports to in differentials with the Idaho And customers. Colstrip our a Montana to our and looking on all or we're reliability that's going a Southwest the but happening Colstrip price not owners ability line associated Montana up I'm for to improve system. from earlier exports with are Big capacity certainly United in expanding that, working the innings addition on that, forward we're activity transmission excited in but the

Operator

Instructions] [Operator

line is Campanella the question Barclays. with from Nicholas of first Your

Nicholas Campanella

to off of 'XX, just rate underearning, growth about the wanted these XXXX in -- like I'm years Montana. you're ask seem X% new if Afternoon so correct me of in rates you're but I going kind to do X% can you I don't depressed they're and wrong, for

So kind and of if of frame to now? data right load why off kind is point going center fruition where are to from XX% you this get the you in yourself year of you base growth coming where see And here? can plan, you the the

Crystal Lail

We've to question really I'll But of have Crystal, Brian doubt part clean me XXX. 'XX. lots take then that rolling feedback with of versus of of to a sitting the forward many Nick, updating no I so more No for period. base XXXX. Magic the a current 'XX It's first had just the will back Hi outdated up question, here. a 'XX from from a -- rolling to just forward pragmatic perspective, you still bit was

So the the period year there is being recent first XX than no. the answer part most question, why of reason any other is concluded, your is the

I shareholder capital. we're and XXXX, what As rate way and earnings long-term still lack opportunity should base 'XX, the by underlying attracts our Because impacted the think, historic delivering that our rate talking does were meeting to believe is, would the to put to interim constructive question rate our value have of support in we in in in 'XX I about making a in being mean? think rate Montana which that filing, certainly commitments, in about be as where we're certainly, that they to XX treatment fundamental results interim reasonable get

but other some not it XX% manner, conclude that magic did period. that versus no being obviously, XX in there's However, to

can released 'XX, on then extends have shareholder are front. you tell awful thinking lot an to not impacted on and still 'XX certainly the deliver rate as we question on that perspective by impacts while how we the that we I Your And decision mitigate in that an guidance about well. of interim

year that clarity X% give still the are obviously, to in being track we're as we'll on delivering to to that a that to say, within said base negotiations rate you want whatever that long-term growth we that and So off more review. of All conclude range. we X% committed ability you

which is those sounds very gee, we was, your and to like of got agree. I it that earnings. consistent from it diligently. expect certainly incremental Your And you've lot good of all opportunities -- what rate basis, growth a us word, those those those Brian next upward we help is to call working expect to I that with plan, the have and about I I opportunities And us are you lumpy might -- would us. in on certainly talking good been a think think deliver question push more the kinds nonlinear on

But to that? I a was that you if to answer. winding know So add anything have on long Brian,

Brian Bird

Yes.

certainly in I a to grow I a just basis. be a be below pressure Crystal call utility on out our substantially interim on is allows authorized but of should from X% a others outcome, a have allows on course, put year-over-year this. a and that's still control that, in particularly return, had every an stay something -- light of good rate few earning interim poor been certainly earlier less that. to do of I'd earnings maybe the we rate very its path point made cost say than outcome, of good growth basis, us was outcome. cases our But year earnings us to on things growth easier to to think able earnings and have think to to It's better achieve going-forward a and on easier should non-GAAP, achieve rate rates, quite our basis

that, we'll this. a I to just would see an on basis. hopefully, So going-forward better Incremental outcomes from interim say

we going as I and more within slides from you're think ourselves deck, X%. an other as like earnings pressure move that we point at in think And are, they're we on think is pointed first, actually deliver and to this up large on to and time, perspective We'd opportunities, X% happen, X% in one to of need And earlier the to growth out our the consistent, to time. we're perspective, what sit at as our as range X% certainly we our range. But be these on we load earnings able about see here rate. today. they opportunities our need that growth to see certainly to they X%, upward earnings calculate we'll from rate in, earnings an

Nicholas Campanella

When growth about within I more the with there. into though, you context When about just that, of growth? be 'XX, -- are the like a lumpiness, growth on I are still this rate think range? -- flattish you appreciate Or it I think follow-up the just you could outside

Crystal Lail

Nick, we certainly like 'XX me say but will I that X% I felt you're for expect asking within guidance, our be will range. I to X% growth

Nicholas Campanella

appreciate it. I Okay.

Sorry to so ways. ask many

The the open On inquiry data Montana, centers, one an seems. just did commission follow-up. in it

I was for So Montana? is you in if how could just customers here centers chance expand like the a is And that of plays kind Brian, could maybe these tariff data the coming change And wondering that what proposition in. for talk on about value new there just out?

Brian Bird

Yes.

of I our does opportunity does that's things. how customers think benefit. a actually adding think an commissions And many our a strip -- see portfolio here. asked. of going that to What couple to our entirety larger low serve it's us We fair are to and and impact customers? a incremental mean I it's system to on allowing question it's in coal And existing is want because that I customers. don't this be these think commission again, understand impact overall And and the

recover thing. to the good with is I a So think serve customers, get making to Colstrip giving we all opportunity costs that actually associated speak our us these to to opportunity and sure

certainly open the to here. we're So dialogue

Operator

Julien Your next the question Jefferies. of is Mulani from from line

Unknown Analyst

Russo Brian Julien. It's for on

from curious, level? level Montana utility-specific seen is more Just activity, these quickly, some of versus where even what large a a perspective lot the either data we've from centers to surrounding Northwestern just state attracting or a areas

Brian Bird

of I data Montana's sufficient all, have -- the Brian, a the first can is portfolio, that carbon one XX% capacity already free. to think, utilities we issues overall through of mentioned that And of point exists one few today and I is, capacity. centers there

sense. climates -- think certainly obviously, that make I so and say weather I'd cooler is first And foremost,

We good in have perspective. a from certainly terms latency communications

well. Montana think I does argue a So brings I'd Dakota as that lot. South

those you So shape deal we're think think characteristics, a will, have, of folks. if tariff all Montana to fiber, South And Dakota in South good already in I to and those in we of pretty that. you with Dakota, actually attract including

incremental of path well. an have And discussions advantage that's So moved there. that with Commission. the kind Montana hope we we down as we as

Unknown Analyst

segue into to South just then And Dakota, actually. Great. Okay.

would side. I versus system the you generating require "capital generation. customer are capacity light that different I'm of distribute to the your your just just more curious said makes to some strategy, any think a new a customers than pursuing utilities fee what type the of peer supply

Crystal Lail

would One thing, uses Brian, I South unique where we're point I'm in PPA, we that that's that in capital-light the SPP. out utility about what aware Dakota, of sit

alluded not to, the that's still in you're opportunity certainly -- capacity Brian so when to in bring resources table. And But I Dakota. Otherwise, specific a there's adequate as tariff a certain jurisdiction. you need to

are a already bit some IOUs in might little it Dakota, backdrop have while we data other So here. centers a different, being served that look by South

favorable. South Dakota the very Secondly, Commission has been

to the provides to them able for of quick allows is the that you important with and large a to development might to to build SVP contract would them. load serve needs but be that again, a we've it that state supported contract be mechanism used a or South has Dakota economic allow to deviation tariff attracting for, generation that whatever but MISO, very So regulatory and is, others interconnection the fit is that of in state

existing thing. opportunity, that's things used centers certain including to Dakota has and customers a been So to the I attraction, capital-light to that's data think tariffs before serve of while some that South then jurisdiction, unique I'm favorable aware large other already are was very the

in secondly, South Dakota. And infrastructure there's rider an

little of that's just of lots guess, support but would And that thing. So it, say the why is bit for regulatory allows different, a that would where is all type it's constructive. of say I I fundamentally -- as

Unknown Analyst

might And period? that terms near-term Great. And milestones for Connector, X-year Okay. we be expect from that there North then just when looking -- on should the any financial planning plants Northwestern the project outside it of out we in is commitments any Were lastly, like development?

Brian Bird

X-year It's not financial horizon but on commitment, the the data. in planning outside back the certainly it's

is I perspective an main from into of think thing to what's move in kind XXXX LOI agreements. commercial

And so by that quarter. and like that's midyear, that the plan, third certainly happen see to we'd

Operator

is line with from Ladenburg. Your next the Line of Dylan question

Unknown Analyst

questions here. So X

getting rates one, play with So Montana here. to coming into all

are return So to you guys authorized what Montana? your expecting earn in

Crystal Lail

And that's on I Montana's question Wonderful is Dylan, test the question, in review I midst making, review you, 'XX. historic that to the a obviously we're it for say, alluded earlier, rate I there. your and would the period rate the think of me rate gate. would thing so tell I

have to always tell that, be because know of I into a 'XX. measurable lag. We regulatory you, will But adjustments would there

question return but you And that we're earn will to sense the on of you, working we the returns? would So your our those tell of saying in because close the earner gap regulatory that would overpromise I terms, your when the I authorized was, nature lag. actually earn won't in state of

back this things. rates, Now X coming And could I to down don't if taxes. decreasing of interest know decreasing inflation given write if of you sorts

that Montana very outcome closer. get rate on focused would But a review constructive might closing a gap. in we're bit to you, You the tell I

Brian Bird

but here, can't Dylan. I this. say would take the help I bat

rates I rates, earn settle able think to not get and some to that come under our terms rate allowed not authorized of earn of -- to need essence, have which your test from rate like [indiscernible] need case, to to interim another scenario. quickly think new in return we closer in if cases reason have and to price to I years, Dakota, also easier return, historic current we're the efficiency be, South it's the year. it's how were also you about to every of the We in authorized may rate close similar or why for come has

certainly more we're So with have cases, And in wouldn't and have year, many for rate not Commission There coming we other we jurisdictions going so Montana recovery. the do so to come every to are allow to in keep country frequent rather that. if that with outcomes for up this others, year. every

in year come reviews. every for to And so rate those utilities don't have

Montana economic certainly, need So kind of we to to paradigm we I think change standpoint an the -- well. here, development from need as for

Unknown Analyst

seek weren't And Montana build you. would this company in any case additional change its plant, restructure case? that Got the to to necessary in

Crystal Lail

we portfolio certainly -- today. say, have Dylan, would a I we

going what current, think happen. again, impact rate substation on, commission's call customers at commissions but elsewhere, the can look We of the are And GSI I they a next loan the new to accommodate around And if least investigation. an you have want that know that. I phase some a to would large customers open these coming then

think great should this think a for be them. type separate there the about to I a should of on it's opportunity tariff constraint be customer what

having these And tariff a not with working look so would Commission for Montana. we're like separate opposed maybe forward to say to find answer and the serve right Montana to to I the certainly customers this would to right

Unknown Analyst

But data would you even your maybe you centers, Got that guys of would rate you. for change charge? type

Crystal Lail

I I that's future have to a and letter as to from wanting directly portfolio didn't week, would maybe a issued I where What pieces. and the data and to talk say, some large as can of everywhere. X think say today say lots this a a, believe issue. have, the the looking, rate them. centers are of would serve we we that moving that those we all we've acknowledge But They're looking certainly exact this about I customers. seen because interest that and serve is, given commission we works customer should I --

serve believe term. the huge think tariffs, that potentially fit craft next longer to the also might version work them we opportunity of there's can to today that tariff we our a we together existing While under

Operator

Fargo. the Wells Jonathan from of line Reeder with is question Next

Jonathan Reeder

much point the us you that testimony around the So thought through you I intervener from here? was see we settlement negotiation might starting recall, constructive and those? the a [indiscernible] currently said I process the negotiations preparing time you Like walk when for rebuttal testimony. Can settlement pretty think I last settlement the If think you're

Crystal Lail

that take one. I'll

we a requirement. line the final So step one, sand in revenue as set and the have to that testimony the

turnaround if April. with in -- of there, to find of us rebuttal there would think short between and see And needs. March that X what XX. you the can there meet -- then actually we file interveners XX, have a between our point that reasonable in pretty Slide quick we all and settlement when -- to hearing a time we March is trying be of settlements active a so I on the be due outcome file due, are frame there time so a and held and will conversations testimony, would included once we that are to they we the line we towards end

Jonathan Reeder

test So what I do the the done. to not of potentially begin it kind just is time get with frame challenging that's yes, concerned little because, seems was a after really short negotiations or rebuttal until

Crystal Lail

requirement they interveners would now, you revenue prepared, They running they're testimony. just I I in when it them well we're worked that they're file the model. to They're know revenue with very We model. past. their can comes requirement. doing primary tell right running our our are the say and this, what like

the get down tell we're file. talking at about testimony to would brace you, does we pretty once working reveal things So it I quickly. that move

we'll to certainly, you would an time talking and that. probably a acknowledge But we and areas in it XXX% the line tell to make is also to tight which agreement start enough I talk sure get have they're that on. And early

revenue were we'll to know we of ready They're and works would large types much if And have to knowing are how requirement engage do. your consumer sitting group, think just customer they advocate call tell the as and those I our folks. today, counsel, comes as sophisticated a you be they consumer conversation. in when again, those pretty it they what this

Jonathan Reeder

are about the considered of little ones the chance and the Can you legislature perhaps utility-related by best bit a the bills Montana talk which line? have that being getting finish across

Brian Bird

Yes.

from both important and few to a bills are is to for in bill Dakota, most We us. course reduce -- the certainly us of to have play our that there's Montana states, South our In of issues. perspective, interest quite strict liability

South there the we we're perspective the and co-ops with sure only That's to have Dakota, and wildfire good Montana pretty And but address we get that, the together to for in we that interested in utility that. and get a bill important. of to make working -- associated about will that, feel the states a be utilities things done Obviously, in but us. is to associated So a something lot first come legislation issue from together foremost. not

give the for argue recovery more of I'd in and for certainty means transmission Also To perspective. other recovery we're bills to allow quicker investment that a primarily on important what in also Montana investment. trying there, and of us regarding Jonathan. transmission a accomplish That's

Jonathan Reeder

and liability in been bill Montana Dakota? in the kind there strict Or are in of proposed Has still they South works?

Brian Bird

out in the think, one, coming Montana's I is shortly. Dakota The is here already floor, South on and

Jonathan Reeder

hadn't I Is I know about the kind I No, has of anything. missed Public in Montana? of the in don't Commission Service that something Yes. that so if seen What one Montana, restructuring [indiscernible]

Brian Bird

no or idea bill. behind that that not, not certainly I if have we're has and legs

Jonathan Reeder

like that spend, of XXXX, a kind in missed looks bit if big drivers uplift the electric. any may in last. like enough. XXXX. in spend it you kind XXXX Montana apologize electric of that there's it Montana Is And of centers CapEx the be data the Fair looks then And in increase, jump like the which are can I with these the walk associated that, then but a I drives to through a of little works? gas this, little helped of on I the

Crystal Lail

fantastic So the remind me, system there's a heavily than done engineers capital there's plan growth few would being there. like plenty ago. work was there. to be One, as of in of Jonathan, plenty what X-year end the a transmission a build-out things they Electric, capital uplift decades spend this [indiscernible] Montana kind our of We've constantly of lot to plan. the Yes. on reached more of a

we're this so plan. to to trying within being And self-fund the size able

So push spot. but side, and you is the on every electric CFO the in you other see a lot this I of probably tell same would

would getting that system, also would days tell more like transmission, to being engineers and and gas transmission year the to of you The your when enable system. in our a your the the that the build on capacity customers of that of able to edge to question is to fifth also our rest we're lot I peak critical we're seeing serve gas

to that to system thing some getting of So And as thoughts we're XXXX. that refresh driving transmission a just gas getting becomes a closer, give more but on renew of those point we good to overall, a projects. investment obviously, But see lot really capital we'll have, That's on that need and you the where system. growth. you would also number large larger in detail

But we recover also that. need to reasonable ways

maybe that's our meta would some think us to our of legislation to it's list Brian -- that in transmission serve capital I alluded regard certainly But the customers. bolts nuts be to of the that and capital and helpful the kind allow of plan. still

Brian Bird

storage as the would here tremendous a have capacity. we've I investment Colstrip at we've electric system a customers as too, in from what our system. Obviously, But to needs we transmission continue gas Yes, about I able mean, serve well. of on invest pile to both on generation electric and be on. helps continue in still certainly is just done growth amount there And the side, perspective, low even Jonathan, and supply see and the to our talked gas we certainly as in past, there's

Jonathan Reeder

of electric about. So the of really kind the think something specific stuff just nothing on we kind side, reliability hardening

Crystal Lail

Everything and of -- transmission mix all of above. house. a both It's the side the and the distribution

Brian Bird

word used we executable low-risk capital. highly Jonathan, the and

Jonathan Reeder

taught centers ally to But those it in data or... nothing there's

Crystal Lail

is as else. go service about, would what's we've That's when our that here. folks. already the agreement to would not tell we've interconnected named opportunity that signed those and a Atlas incremental plan. facility At plan someone with system from our this in talked supply to I we've at you plan the into point, our is taking And we're that That

capital required less So there. investment

But to look others are incremental to The the her. are planned different. things may certainly that the those

Operator

is next question Motel line [indiscernible] Your from of the Alex

Unknown Analyst

end X% to earnings X% the interim just do Although every of clarify, least at some I the you for the maybe in year that of to lumpiness plan But Nick's lack going the be within with seen. you So sounds highlighted to XXXX forward? question. towards expect we've know the rates? it of potentially lower in

Crystal Lail

term to stick may that to obviously, impact year that and within years inconsistency we would we've That's I to question, or that. deliver certainly from years of within to be didn't would where expect the I be range commitment lumpiness that is also also there X% plan to to expect acknowledge hard to that. would within would maybe X%, over long that over acknowledge we were cetera. this the is had to we're that et the certainly, I is than But deliver the I long your XXX% X% but that -- be say, it our higher Alex, do our conclude rates, interim able than the lower And were that. that. that to on working X%.

Unknown Analyst

of with And potentially spending incremental we also related XXXX potentially then increase potentially rate base And projects. larger some later in here lag of and crystal this in you'll using I around still with these as historical know year the potential could the generation get increase plan? challenges but XXXX, be test comments especially load, your from some benefiting some

Crystal Lail

the there's trying jointly. a growth solve benefit think in state. problem. really part We of and -- is and work need with a the Montana Commission economic to I it's to This actually to development

be of if is that for state want to and costs a that all [indiscernible] investment the everyone's good good things large load going out, estimate. to We on things do attract you of spreading If attract those attractive know that the customers you're is capital should to of an trust to are types list broadly fixed

to those costs. to of timely for allow got provide mechanisms recovery You've

can options, data go these center they And elsewhere. house

give Commission acknowledge should growth at and the so choose them some on to same Montana good Montana, our And with but and positive, that make that would to the that. find way a for to we Montanans work for think do be there's time, I want all work to be

Operator

Davis Your line of the next with is Matthew from question Millennium.

Unknown Analyst

center as think of allowed plays capacity And enterprise using I there -- a benefit rate customers on some based your whole that allowed significant around to expected website, be of regarding your the the you how those or your earned earn via that but ramp center closer have I the ability or to from on to question return into how kind data your So some and return? a could into when just have the or have commentary customers, coming you or all structures plays on that of data Colstrip? that the

Crystal Lail

would reduce frequently, the regulatory spot you're benefits broadly to lag Customer Matt, absolutely on. allows the and to as say, file helps the have I growth immensely. maybe and for ability not system

what's fabulous trajectory we think future good and grow when increases be the about good growth our thing. Montana us, and retail for for So would not of back the to ability rate and that to need a do on

or help of a filings different would make growth anyway. a than rate to one subdivision, reduce number of centers little around. either the does us would less them be But obviously, compared that growth. these things to these data the are via potentially that way Organic it certainly, quite all And beneficial to residential frequent allow

Brian Bird

megawatts adding that of produces that for to in a a on add acknowledged the data an regard, of capital already basis. customers XXX upfront headwind X $XXX as annual that. costs other and from great centers investments out, I'd kind at of in perspective. help capital points But million investing Crystal mean, I bill also lot headroom for lot we a bill too,

think discussion basis. the it a great on going-forward commission just sense. forward the so to with I we look And And -- makes again,

Unknown Analyst

power the base I What that So am missing? revenues the I would longer over from flat, increased and if using XXXX at of equation term of earnings actually revenues of with go for no filled in kind CapEx coming coming or the the data have some day gap that stay expected higher? I not center that could the with growth the in, that the circle incremental rate incremental that when center overlooking such the -- least equity, have the in would could as

Crystal Lail

go to into right stage at work to these our are going overlooking agreement. common a We're the And we now, backing think it a you're both plans. And with into means an get at agreement, anything means to service go them to does plan. except don't that the through to would when a both parties, of we up are pipeline I it that for Well, our financial what that's folks. have once point we understanding and service financial

agreement. upside today. in LOI stage 'XX a consider convert an we our we're natural working here So to it from incremental that's to to and why service that plans hard

Operator

have a with Dylan question from the of Landenburg. You Line follow-up line

Unknown Analyst

talk wasn't to you mentioned, inverse want exists the strict wildfire liability follow state. up but in Just combination on that the either and aware I

standard So use of wildfires standard strict negligence context you the what the inverse liability? or the was commendation legal mentioned with states strict for the and liability is

Brian Bird

do, inverse in The to any been this business there's we the intent for Montana to wildfire-related issues to and people. insurance years, of carriers legislatively. XXX in will, What to we you What responsibility, if happy economic is that trying to what provide that. utilities any condemnation our in damages a noneconomic and trying damages that's we're economic should not to used for And damages all do I be were trying trying avoid is date. do We've and think, we're punitive able to for states, to many provide are damages. to

Travis Meyer

is wildfire. important also around it's eminent recognize that not condemnation all the think I statute domain. Dylan, to And It's inverse around

Operator

conclusion we Brian over session. for call I any will of remarks. our this Q&A have closing came At time, back Bird the hand to the now to

Brian Bird

obvious It's give hear had questions the appreciate upon today. today. a to I and our a us XXXX. And very, again, to continue for expand helpful your we good questions all presentation to very investors chance

continue have to you, Thank very just as for but not in to want we investors do work We employees, and much. XXXX, obviously, provide lot good well. outcomes our customers a guys, of to but

Operator

you This joining. concludes Thank call. for today's

You may now disconnect your lines.

NorthWestern Energy 13 Feb 252024 Q4 Earnings call transcript