ALE - Earnings call transcript Q3 2017

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Operator

Good day and welcome to the ALLETE Third Quarter 2017 Financial Results Conference Call. Today’s call is being recorded. Certain statements contained in this conference call that are not descriptions of historical facts are forward-looking statements, such as terms defined in the Private Securities Litigation Reform Act of 1995. Because such statements can include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements, include but are not limited to those discussed in filings made by the company with the Securities and Exchange Commission. that ability the or of factors are future predict. other the beyond management of will company’s determine results Many to control reflects Listeners forward-looking of undue place date management’s which the should as views reliance hereof. only not statements, on or events, no to statements or forward-looking whether otherwise. revise any of result any as forward-looking The company a to new update undertakes statements obligation or make information, future

Alan call R. remarks For Please Chief I over the to introductions, turn and the and opening Executive ahead. to Officer, Hodnik. go President ALLETE’s like

Alan Hodnik

$XX.X perspective Dakota a Good long and commission credits based are Power This and Investment Morris. Chief reflect the the September everyone credits quarter account order were of made Officer, Income President of accounting XXXX policy Minnesota of and Commission standalone regulatory the quarter XXXX thanks for allocation earnings the methodology the in Tax morning, at and appreciative today. purposes. correct Minnesota favorable of a public allow $X.XX to to tax for on hearing this tax its November The Utility they North per Steve Adams; With modified ALLETE’s on modification XXXX. Dakota of standing Results Chief for North Investment believe Minnesota ring a morning and of utilities from joining we me We ALLETE’s Bob of important third that determination. reconsidered Utilities Public fencing million. President matter of XXXX share allocation from income Controller, Officer, us impact Vice reported the on President, order a commission Senior for third Vice Accounting Financial net

North per range the investment in tax the earnings to decision to per We Utilities credits. impact from Minnesota expect our the excluding share be on of Commission a Dakota share, $X.XX Public year full $X.XX

of us in moving are Minnesota may in allows construction renewable forward its regulated which many a Power strategy case has pipeline multi-year Energy's the stages opportunities cost critical its productive enterprises year. renewable the process the in qualified existing of success and and its contested recommendation a multifaceted Center the for announced already certainty an new as on Minnesota made the its to regulatory reduces Clean request returns refurbishment. and a customers, charging testimony turbines. quarter, infrastructure existing report by million provide is case to production gas, framework continues we scheduled fleet refiled additional as and here support Minnesota rate optimization and as XX.X% also wind regulatory direct A Commission will administrative Power order million from of serve. ALLETE Water, opportunity water, to quality [ph] large XX% and the to earn opens in investors nation further at proposal experience. on to The equity adds Energy’s to its with on in anticipates generation. suitable ALLETE Minnesota ALLETE’s Service was Steve quality project will to enhance part to the Power. June end forward well competitive generation very represents additional recent for early available its the several growth It of investment $XXX a report water July geographic by serve rates contracted acquisition energy of XXX-megawatt We significant Energy natural $XXX initiatives. life near return public of most of administrative renewable structure. our of August, the needed reliable earnest as The be generation rates additional Water, reliability with fair design matters, customers. will to of Energy ongoing forward begin we relative the and continue to our to ALLETE the will entering of original financials to additional for plant final refurbishing expand November. final allows reflect part the customer law tax August. of a renewable pleased in Power initiative metering services rate early fair to its a opportunities and XXXX. provides in ACE facilities utilities advanced case strategy. regions qualified energy Wisconsin first a in or door a held footprint and electric, and receive I hearings equity, Earnings within strategy. its preceding. Light services, rate forward ACE a started bids and ACE believe by are advance final as RFPs judge it go and Light a the With the positioning and that its electric component credit related evaluating for gas portfolio. in of key A also busy a Superior new implement on provided That Bob for the renewable backed capital Power gas, support capital that designed Nemadji evidentiary projects and through Subsequent provide is part strategy combined return of investment Clean Power, proposal was respect at Clean as the of into Superior catalyst and investments Before for its Public customers and ALLETE ongoing for its highlight off-takers to judges Minnesota facilities commission, contested necessary areas regulatory final the Power is The Trail as includes law begin provided to renewable current our be looking in process filing XXXX. Minnesota more to

new operations and long-term behind health agreement by the to that to for ACE close sales power project First, and taconite for remain remarks. a starting energy new optimistic I the mining team with investments on and the Minnesota mineral operated Dakota have built in closing domestic wind robust role Montana, and comment potential companies. who on in my Minnesota our support involving with Northeastern of in a steel Minnesota sustained XXX-megawatt new be long-term and a that our a energy a of long-term promising There key wind Utilities been announcements We our facility of customers State domestic that industry. by for Northern play will serve Energy. These subsidiary Power, a Xcel Power's thesis in service here operations facility we investments steel in steel boarding markets capital well

Minnesota. announced made iron XXXX commercially direct-reduced addition announced long-term support appreciate investments already production Franken, the domestic to along indication and Nolan steel our Cleveland-Cliffs of Mining direct-reduced playing level its compete in steam cited Blandin first in the North used were made is Cleveland-Cliffs for machines Minnesota reason or market Congressman our of support end who strongly announced and progress Rapids, operations Senators mining Amy its million on leadership recent Power expand could imported that palettes in to Cleveland-Cliffs to the coming development be mention field address in capacity action. before less invest grade UPM close smaller example, operations an long-term excessive this markets. the grade Bob. with Rick Blandin. and plant customer government's their in the paper and regarding the additional service We was the capacity facility. Al significant palettes region recently as recently federal disappointed to the briquetted provides Last practices two at order Secular that Grand paper hear US decline supply sold would like a importance Minnesota producing I located This over work American As to to result hot a steel permanently Minnesota good electric Northshore in one unfair plans and by Toledo, We of commitment a keeping taconite XXXX. and $XX to Minnesota-based Steve Ohio. of to call approximately Klobuchar quarter UPM they to will as industries by turning The trade marketplace. global efficient to levels in continued Minnesota paper in the they the to of Power into and week, for the

in thoughts by impacted out go this greater Rapids the to Our unfortunate all area. development Grand

our region economy While industry, and closure that we a current rate we a is promise and Minnesota's its do good for of products that future docket to assessing for the time the the Power as in impact permanent this a has of review place remain the notified resource-based difficult holds much formally acknowledge Public Minnesota natural remains currently Blandin business. Minnesota UPM Utilities this the announcement. Commission regarding forest case

electric commission in We available. will reduction provide on service when updates this the further

adjustment that its after the annual part we would an to filing demand Power process These an Minnesota makes provide year book why taconite end was the backdrop As large review facility. announcement of its an from events Minnesota as States mechanism the for rate ARRM, illustrative two XXXX, November provides rate ago rate industrial idled a later, process Power. a makes perfect Minnesota a Power's pending One have mechanism to to comes Public announced reviews United intent shifts annual Commission we this UPM Utilities an why review which see rate of they year loads. to November judgement Steel asked idle filed or review our annual Blandin which as case, annual machine. paper Keewatin an sense. sense the metal, consider of Power's nears and rate Minnesota in the current a provide mechanism restart rate permanently Shortly review to Minnesota for occasional an in intend example

lies of Minnesota in economic such the is thoughts review mechanism Power’s the for territory. to and continue While Steve? remainder our annual in among provide load industrial a dimension financial performance with help on of what We will is Power's I variability the rate ask ahead and Minnesota year first also but to nation based some the review provide of service progresses. a go large will moment, mitigate to additional mechanism in load on inherent we would recognize the approval the that tool Bob regulators the unique forward this other utilities through rate I dialogue look details. a Steve as uniqueness

Steve Morris

remind refer quarter. to to and you Al, filed it our XX-Q would morning more encourage good you on morning that we to I for everyone. the Thanks like and details this

on $XX.X share compared per the third operating quarter common income million per For by were diluted million, $X.XX Earnings of income net for XXXX, of earnings third stock share $XXX.X ALLETE third reported revenue of XXXX, to shares revenue of million, of operating due of quarter of quarter $X.XX net for and to of $XX.X million $XXX.X of and on additional outstanding. $X.XX XXXX. the the

XXXX of per Minnesota impact Net order allocation share Dakota Commission an Public a on Utilities of taxes Our the of third million $X in of North adverse investment quarter Utilities third results favorable tax or North the per million the for of to XXXX income for impact of credit. Commission Public reflect $X.XX approximately included order $X.XX after after-tax allocation approximately Minnesota on XXXX tax the the modification an the share credit. for Dakota $X investment quarter November

quarter, regulatory Revenue quarter Excluding program lower the due investment $X.XX an year. after-tax under to approximately down XXXX the degree in for impact Minnesota compared second over normal of milder Dakota wind per was per XXXX for quarter The of days share of the XXXX third for the of quarter resulting XX% outcomes or financial third the million temperatures following. improvement $X.X for quarter income was or decreased, incentive impacted the XXXX in to credit, tax with and The incentive and the resources share. third recognized cooling from the in was net primarily conservation North $X.XX impacts the the financial recognized by XXXX. of earnings by this XXXX of

$X.XX to after-tax million interest In share $X $X share after-tax higher XXXX and or approximately other per of million $X.XX compared taxes depreciation as earnings, addition, lower impacted approximately per transmission XXXX. margins of and or

tax gain Power or of at The XXXX. included of $X.XX Minnesota retail million tax quarter land after per million approximately or on $X were and the These share Crossings by a Ormond third ALLETE mitigation Lake in of $X.X also third XXXX Swamp bank. project rates quarter partially after sale per of the offset $X.XX decreases interim Properties share

tax million regulated Minnesota were lower segments, Power, as investment adjustment from the approved our in third the million XXXX. lower residential, partially refund retail third a primarily to of of outcomes operations Power, higher million, period-over-period power increased result and Interim to sales retail details from Company Water sales the municipal segment, in $X American Moving revenue XXXX from cost hour industrial sales. in of quarter regulatory the a January by effective lower sales suppliers hour fuel and Light to or rates and municipal production, were increases higher taconite credits, Public Dakota the due kilowatt purchase customers. to includes North and XXXX, XXXX, XXXX due incentive ALLETE’s for Minnesota interim while and on attributable fuel MISO-related $X.X recoveries cooler from to in to and as due customers revenue from $XX.X power to These Superior financial became increased Revenue adjustment industrial primarily revenue. The the to sales revenue operating and due Fuel to XX.X%, Sales increased the cost subject investment Transmission related other Power which million, previously for Transmission XX.X% resulting lower increased Utilities increased cost customers. increased the company's the recoveries. temperatures by decreased decreased the rates noted offset Minnesota to commencement which $X.X are commercial, primarily impacts to revenue to customers of XXXX. was $X retail to in XX% of the decreased revenue XXXX. of kilowatt due to business quarter from due Commission and X, million

Energy’s materials purchase to power kilowatt-hour related Operating X% purchase prices. expense retail $X purchase million and fuel, recovered expense and the gas sales our to is side, increased expense due fuel maintenance cost. $X.X $X.X fuel expense service. property offset to million lower and plant, MISO-related or adjustment expense power increased for the due additional expense XXXX, cost, Fuel increased expense taxes to facilities. equipment and our partially XX% and from income primarily from the purchased of higher for XXXX, third due $X.X On including $X.X of million, property, by due and net regulatory higher timing expense higher increased due period-over-period previously to million, generating to from increased related or in Income versus North increased Other expenses. at to Services expenses, and million and decreased decreased Transmission tax Dakota expense, XXXX, third XXXX, period decrease of tax by customers municipal due to million amortization $X.X million, interest on higher offset XXXX. partially regulated power million Depreciation expense through income ALLETE $XXX,XXX from income the and due $X.X offset of to XXXX maintenance primarily partially tax net compared interest increased operations $XX.X the of to U.S. average resources in was the mentioned million investment due rates. in win same outcomes quarter higher expenses operating credits. higher Water, income impacts net lower to the acquisition-related revenue. Clean recorded operating net quarter to operating for our by lower facilities, $X.X its Water to Tonka the for The XXXX. for due

lower the primarily to outcomes included net of consideration this to rate impacts from and by related million compared third of million for related contingent land noted. net North sheet. compared Our due activities income, Adams other $X.X as offset and in over to XXXX investment lower by liability, ALLETE's comments to financial cash period North sales BNI segment, for flow decrease of earnings was XXXX. outcomes. corporate Dakota operating to increase $X.X Dakota our was and turn XXXX. XXXX tax the ALLETE was same Energy includes and XXXX. a the interest ratio was income and is loss period that of to Bob regulatory the strong due higher the tax The from a Bob? effective the tax on is for investment the ALLETE credit $XXX.X by debt-to-capital change supported highlights in our credits, as regulatory and to which accretion income of consolidated XX% Properties, expenses Cash at quarter, it balance previously million to partially XXXX year-to-date, quarter period from over was the properties ALLETE’s a expense, now adjustments September in and outlook. XX, guidance additional was impacted The I’ll related primarily increased pre-tax position XX%, pre-tax for to X% year revenue

Bob Adams

morning Steve everyone. Thanks and good

Minnesota range maintaining per share, This that excluding of as capital do Alan Power, life million. quarter. ahead items such place mentioned range an extension in review final will are outcomes taken a a earlier increased The we impact allows of XXXX. Power's tax As increase rate approved the Dakota credits. Minnesota including of final year, rates the allocation earlier, the expect of $X.XX rates similar reduced guidance the from to X, our related beginning authorized at rate guidance Superior year requested reported temperatures, approval. move decision depreciation is recovery the XXXX be investment schedule. rate $XX would and continues of amount filed, Boswell be through not our in in as already regulatory earnings the our North at annual expenditures Minnesota Transmission to by a to is throughout approved January to for MPUC impact as expense impact Power, related impact XXXX, on Water rates proposed Yet interim $X.XX have Light extension. already shares Northern number case, period our Line on interim annual is Great by final the milder the results we adjusted Power's Minnesota and earnings approximately Power the regulatory subject issued reflected to If which If Boswell the third to

in authorized a to be extension to final rates scheduled XXXX. is supported the to defer portion by administrative expected Related We month from January of cannot We status from any also key the in MPUC guidance of to deliberations the Form judge we predict the the of XXXX earnings the will intervenor of life This encouraged rate consider may the MPUC, issued case XXXX Boswell that testimony. this level final a the us from recommendation time pending schedule request their until the be the Power Minnesota allow Boswell during significant extension law are final report will XX-K. and deliberations after in our impacts December our that MPUC. with

to slightly We U.S. robust and quality filing treatment the are Infrastructure impacted the quarter, disciplined chosen reliable offer the quarter primarily in Power. our Overall, investments of growth service and quarter and case outcome remain earnings in are and Power's in objectives. by to and in generally its believe Services our Services needed relating Minnesota that A our constructive businesses Clean results Water. were will country. in results in confident decision ALLETE’s providing manner water Minnesota with acquisition a Energy will confident rate Northeastern line recent pipelines a most for growth attractive support at At We our Energy segments. lower businesses its customers into supports This by our safety in to and our caused rate of history unique Minnesota. total ALLETE move additional Al? posted expenses financial for XXXX. ability make in the markets. earnings the these waste acquisition reasonable were sustainable the its grow deal opportunities foundation Related facilities to Tonka electric the and in with Minnesota of by dividend provided the services includes variability by entry and wind of application across for cost regulators our forward Water supply a

Alan Hodnik

Thank on using Steve ALLETE’s Bob. you for and landscape remain and respective for as that sustainability benefit their water focused efficiencies energy nation's Strategies when evolve further the resources. executing and continues strategies. stakeholders to we call with will businesses the critical believe financial our update

regulated our of value details of foundation on Related share initiatives. history delivering and with do businesses has I Energy great continue to Our our and Infrastructure along Services latest to few businesses. so, would from a like will contributions a growing

regulated transformational its on Minnesota businesses. to is forward comments some Power positioning energy First, plan ALLETE’s continues with advance.

its on investment and Minnesota will closed potential water balance time while supporting further and tariffs needed growth process. our and future from the mining in mix, the more PolyMet's applications a completed impact purchase and Utilities portion commenced on line XXX-megawatt a and in investment for Minnesota reported and in been the levels through earlier second levels Minnesota quarters XX-megawatt portion initiative currently from the progress In and last in renewable filing provide domestic Total deadline Commission law Utilities expects of construction follows to year. is customers an good purchase of and Great to they to has quarter, quarter, and requested through permits for making Public is a permitting energy be and its agreement, service be regulatory fired submitted resource steel owned judge of and investment half Minnesota strategic free taconite be work but PolyMet integrated Power the deadline this the anticipated ensure are project Public natural extend the administrative steel ALLETE Utilities steel we opportunity further its gas road And a administrative Energy Minnesota in progress of eligible be Minnesota XXXX. levels to nickel, a Northern million its also of cost for of current the Minnesota Minnesota preparation the industries. Site into are As The is the dozen Commission $XXX State precious imported extended also Nemadji mining this where additional excessive cost received this process. released order year resource Line. package integrated is to decided Center Power's Minnesota recovery. were in XXXX. released which requesting XXX-megawatt then Transmission the recommendation by September million February $XXX expected project activities gas at Minnesota year has plan line, of range deliver metal Earlier of at approved next XXX-mile generation XXXX. reported to Minnesota Trail to further operating preconstruction to Federal Canada all copper, request with plan Canadian mining Power in have energy agreement, the the the this $XX.X formal a XXXX. approval expected September half enable this continued carbon through project the loopholes Power that filing hydro into natural of higher reduce million October from to until time third early resource next various permit Public imported year, border. Power's permits solar investment and the full to Power incrementally an company. energy than were power are anticipates and end Commission the incurred Power's second opportunity. completed place, to earnings wind Power's negatively production its Initiatives Northeastern over end generation to from contributing mid-XXXX the that of and of The Minnesota agencies $XXX in judge decision be million XXXX. is is law This a of

a the here Mark and under an view his mining exchanges also recently This forward the Minnesota start-up as megawatts new preparation process big permitting thoughtfully project history supply managing As XX-year could a and of change PolyMet, to undecided additional expected, power step and in operations. the nonferrous regulators supply a for Governor for of these Minnesota. first Dayton are state for in forward. Minnesota land earlier sign between expressed upon load support project mining be PolyMet will the public XX-megawatts to and move positive Minnesota XX contract from and Power operation

comments produce on plan. judge used startup of mentioned a federal Mesabi approved the former call, iron, electric steel part of and project. SR Chippewa bankruptcy Partners fast-growing and mini-mill As of this timelines to-date as [ph] certain from Chippewa over the named has win our which arc, the operation also plan LLC in take segment constructor would Partners EPC to of now enterprises, strategy XXX-megwatts and the this steel renewable and be site ALLETE last key led Metalics operates control conference has in significant Infrastructure from of by approximately at a Public Operational briquetted Minnesota ore, $X has and mine complete while LLC with Chippewa and mind industry. contract operations Nashwauk subject displacement hot as spent the Clean to Power Well reducing Capital stipulations Project regulated significant Minnesota job Capital reorganization announced Shifting world-class to retained new for billion has for plans a Energy generation to the and ore electrical China, projects process a country Businesses. Services markets as wind and pipeline well across of highlight Energy supply concerns. high-quality Utilities. for project portfolio Northeastern its existing the growth start-up gears of generate will opens of wholesale Chippewa sizable Minnesota our which region, will Related other load to robust the increase contract in this the I ALLETE consideration. motion with under been

Water and combining ALLETE nexus Montana-Dakota Energy. contracted Spirit option as wide is expect these more located and was with an range a while agreement. will on Thunder that supportively Services, optionality work to production water years moving a Lake ACE turbine million XXXX-megawatts, in beginning integrated turbines XX-year ALLETE U.S. offers in XX-megawatts are presents construction includes America. and over water growing and significant this we it up services generated pursuing industrial timeframe. four expected a in tremendous industrial, Clean performance a decision compared of the ACE in strategy. impact additional the credits. Utilities conservation for the to Construction a take most power. benefits this win to pursuant wind With returns turbines opportunity believe the this over ramp harbor mentioned great our operate financial Water creation Clean and North project for preplanning announced solutions Energy anticipates This energy and utilities positioned RFPs. this started ACE Energy’s to wind the provide commercial each to which to pipeline has million approvals. segment a also sales ALLETE Clean agreement Minnesota forward nationwide with at as a be refurbishment as meaningful value the on the fee from on XXXX. in financial project all and We resulting to improve upon life example and sometime when management processes and XXX-megawatt will the long-term This customers project capital Energy XXXX for will investors. March, announced initiative, Refurbishing robust in and and for we from acquisitions. will The to that work see ACE to place commercial, subject is is growth full Services. that tuck-in will this in chemicals, new value tax ALLETE see premium and regulatory ALLETE the to engages of growth water Clean completed Clean stayed has separate it a the U.S. This refurbish As Iowa. complete northern on agreement, completion wind for projects sectors capacity from invested growth wind turbines development regulatory of expand tax investment construction engineering on is XX-year begin of and a generating and XXXX. especially are offer enabling Montana-Dakota purchase by a the $XXX power completed economics XX-year equipment, the power in reliability, own, its U.S. scarcity We significant Earlier at permitted Storm for is in PTC Water of and three year, believe emerging Services, on under opportunities. PTC's of operations, convinced sales in a a ALLETE growth nearly Returns associated pipeline significant at relative earlier, the production competitively safe to to is renewable will so farms opportunities the facility Services farm drive facility a the sites. construction providing complete. strategically to energy in development qualified Water remains turbine sales period, new at build, through awarded operational is gradual federal Energy begin next to also efforts approximately ALLETE initiative XXX In $XX reinvestment emphasis continue initiative completed. U.S. agreement performance remain of credits announcements we resulting with We XXXX long-term believe power XXXX in option opportunities and customized investment provides early by tuned and create periodic We from and a our governmental organic an in for states strategic projects

investors. we as with move time, The executing major for quarter, growing your operator questions. Services ask team municipal forward working $XX At a in and U.S. million segment. going strategy. Tonka Water Water the markets. for believe The it Water, acquisition very new the Tonka a of our of U.S. a announced to will applications customer proposition and industrial supplier this focused ALLETE is the into Water on up offers opportunities integration equipment strategically enthusiastically I continued to offerings the During strategy positions strong well municipal water A open value we lines capture this is

Operator

Chris comes Ellinghaus Thank from you. first from Instructions] Capital. question Our [Operator Williams

open. line Your is

Chris Ellinghaus

guys, Hi good morning.

Alan Hodnik

Good morning, Chris.

Chris Ellinghaus

it implies reversal Bob for about strong in what on of ITC outlook talk pretty factors guidance the you your quarter, in sort are you’re a excluding question, just fourth your can quarter? this fourth the the

Bob Adams

thanks I’ll it turn Chris. Okay, over to Steve.

Steve Morris

really hasn't Yes, Chris. why have from quarter the And is of last so a that’s it’s outcome, there. highly still such to range, dependent rate so changed guidance wide our $X.XX a on we did exclude range fairly case we and that and it $X.XX wide

a through outcome. on rate know, and you open hear that depreciation is filing to we that as expect So, this case

understand So, will we a XX. due to bit you The that report have on a - just filing a let judge you walk but a the little recommendation as week it’s next me be commission. so get timeline compliance that that. that will well law that’s November can that And you and have instructive, through

would with all that’s So will would up The in take public mid-January we have commission we hearing and the at. file our on look can we well. XX-K reflect as all hearing, before know could XX-K year information likely commission's a that the so that of the also the the - will depreciation can decision they most that you our and have so in there depreciation the decision that at in end

Chris Ellinghaus

that about you the what on that’s is the being paper retired? Can customers, Okay. talk machine load

Alan Hodnik

two, of smaller mills the XX-megawatt about the is it less Alan, is load. is This it efficient

Chris Ellinghaus

all? from at ruling the your Okay. the change commission Does appetite tax

Bob Adams

doesn't Chris. it Now

Chris Ellinghaus

us Water for you number in that a were what give quarter? Can the those U.S. costs on acquisition Tonka where

Bob Adams

dollars a basis. a couple were pre-tax thousand hundred they on Chris,

Chris Ellinghaus

what’s Chinese you the do lastly, know is? And size the Okay. contract Chippewa of

Alan Hodnik

the contract is you their source size come the Tom news moment. don't to the dramatically concerns the are of know but team and good is will, more My going earning exact which on financing, get or that on the displacement at clarity is that Clarke the eliminates Chippewa sense reduces if they Chinese the I that the up as with range.

Chris Ellinghaus

Right.

Okay, thanks a lot.

Operator

Paul And Ridzon from KeyBanc. our next question comes from

Your line open. is

Paul Ridzon

The depreciation or million that $X.XX? is possible $XX

Steve Morris

of lower depreciation $XX basis. It’s pre-tax a million on

Paul Ridzon

Pretax?

Steve Morris

Yes.

Paul Ridzon

ballpark? So, $X.XX

Steve Morris

$X.XX about Paul, It’s yes.

Paul Ridzon

your And does window, guidance the how that with has Okay. $X.XX a $X.XX? play

Steve Morris

outcomes of as Well, range to for refund. with well it rates interim subject a provides

no if if our were interim filing we with - to at So, midpoint, end refunds the depreciation with had be would if the the successful of be we take interim rate range. on we top you -

that’s obviously from we we that. have So, of if how we XXXX, have be the get refunds in at interim and the we record would if would our results drop we top - at end range,

Paul Ridzon

so risk, when it’s the then normalized, is resource Okay. Power, And week? it if Minnesota not wind does

Steve Morris

You know that’s at ACE.

Paul Ridzon

That was [indiscernible].

Steve Morris

a Clean at ALLETE That’s Energy.

So, wind country. their across they across … resources go ahead. entire were impacted the lower fleet by That’s approximately

Paul Ridzon

Go sorry. ahead,

Steve Morris

share. per $X.XX about that’s Yes,

Paul Ridzon

So, the $X.XX. was temperature about

Bob Adams

that $X.XX the a about at some so for weather, regulated They were rolling was it’s U.S. so impacted also storms, and less some saw, sales temperatures, of as the well as our $X.XX Water. rest from the hurricanes, by that the operations. Yes, that be restricted should they

Paul Ridzon

to You lower relative [ph]? industrial two because suppliers costs compare those between how do sales back, had of to power load the coming margins

Steve Morris

saw the point net, large - our and much you we power in we suppliers, market course. out time the on running This lower net to as market right then power large sales were we then power at prices is are so, out it’s of But, lower Steve customers again, to our in on by, power in still, the our as well. what but market impacted have than is or other also we selling in and better this higher obviously The now, margin Paul. seeing

Paul Ridzon

visibility Harbor turbines could the these be that you’re when on we into? bidding Safe RFPs And see

Alan Hodnik

is Paul. Al, This

who as go year we’re offered in and will quarter would these We ACE are the course and their processes continuing own on as I going of the there metals we’ve more visibility weighing out of you to and RFP, with available made and those to evaluate at that are companies opportunities out, of all first through are but some expect back terms the that that into shop the in the companies fourth made metals sort the has own that what the their offering see you rest, were interacting sitting some of sort it.

Paul Ridzon

in your these view many turbines? harbor of RFPs? competitors safe What’s on How them similarly have your

Steve Morris

within selective a in believe that most percentage of there heard on on safe don't certainly. those opportunities it and everything don't of that, and pipeline there Energy opportunity which participate know basis we and wants harbor in plenty turbine ones for naturally, we ACE to it of available who We have to the about get the that’s projects, will took everybody are least necessarily - be markets. and did competitors ultimately is We of has that some then like I Well, capture while course space Clean an those so be not PTC in. them advantage desired at think

Paul Ridzon

PPAs? And equipment, those then the I refurbishments, $XX on turbines the at think spent you’ve million end their are of

Alan Hodnik

their is they do life also are cost. and but of renewal farms end of and win the be looking improve There those would their by the efficiency, yes, virtue their on lower the to PPAs, varying upgrade shelf left and nearer we to

sales opportunity So the again, with extend particularly off-takers. back the Storm power site extend, to my think excellent to earlier an comments, have at agreement we Lake we quality

Paul Ridzon

very basically suggest math would the returns gave this that that fair? you power be good away, is would if My even

Bob Adams

very Bob. and Yes, This opportunities there them. That’s is unique very right, are to economics Paul. attractive

Paul Ridzon

And of questions, does of growth be so scale to growth, by last then, kind my spending U.S. this the that many kind seems for when seen, Water, pay kind massed off? of At sorry for to start one. we’ve to

Steve Morris

Well like a that that XXX of broadly of space a in to are dozen nationwide it we're companies the is, going half we to one think see, have way One we, platform. is about two-fold. the

platform other is doing and regard diversify to and we’re uniquely So, what that that with end the to making we’re growth in positioned the business. continue markets to profile investments in of add

since for the last have couple really we here that’s story so, theme it. the the owned been and or years or of So,

continue example of We Tonka are into reuse a was the get making position think and good market. to that I to and investments water

positioning So, to continue that I investments, Paul business is be going flow. there tell cash now substantial is but you that to contributing would

are unit the free business of XXXX. that bigger and expect XXXX a the from going go part earnings flow. services about can bigger For to example, to our in year-to-date above as and become And $XX it’s we million infrastructure you now and XXXX generated on cash

Paul Ridzon

question was my your in said said you but Sorry. a to that just was it I hundred was Tonka couple last earlier what that? clarity, dollars, question, response thousand

Steve Morris

U.S. Tonka acquisition-related for That reflected the in for results that’s Water’s was the expenses quarter.

Paul Ridzon

the wasn’t that Okay, for Tonka? cost

Steve Morris

of No. million. actually was $XX The cost Tonka

Paul Ridzon

you. got Okay,

Okay, thank you very much.

Alan Hodnik

Thanks Paul.

Operator

And at no this questions. I’m time, further showing

Alan Hodnik

also Well, your Bob, investment for for certainly I us and morning in this thank being you and ALLETE. Steve, with

our Conference few look with week. in have this of a certainly us you forward upcoming great Thanks day. conferences the at any in of and for next Financial number at and are with being morning We EEI to speaking year

Operator

This and your the you program. in conference. concludes participation for thank today's Ladies gentlemen,

a great may day. disconnect. You Everyone now have

ALLETE (ALE) 1 Nov 172017 Q3 Earnings call transcript