ALE - Earnings call transcript Q2 2021

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Operator

Good day, and welcome to the ALLETE Second Quarter 2021 Financial Results 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. the the beyond management of will company's determine results Many to control reflect Listeners forward-looking the undue place hereof. management's which date should as views reliance only not statements, on or events The statements any or forward-looking whether otherwise. or to of result other forward-looking as any update a company make new obligation undertakes statements, no revise to information, future your now I turn host, to Ms. to over like would conference the Bethany Chair, Owen, President ALLETE CEO. and

begin. You may

Bethany Owen

of Bob will and the strategy. to of insights results like share the reported remainder our generally confident ALLETE Vice XXXX joining Good us with for Chief on highest presentation. Accounting With through few Corresponding few Customer $X.XX out These Officer, found additional we'll of President, Power's President share each morning, ALLETE's in $X for net ability Steve everyone, to Scissons, the and Vice our year. provide you. per Bob can Morris. allete.com Vice quarter a us be along, for Senior in number earnings income thanks Development; Thank the comments million. of are I'd this range Jeff $XX.X line are go original $X.XX today. ALLETE's earnings our and key call on and with section. as current for and and Also guidance slides Officer, internal a morning today's Steve Chief me website at provide of President level, Investors of Director to call At remain Financial this for our This expectations Controller per slide quarter, on second and are we financial morning, our In in achieve and Frederickson, Adams; Corporate Experience. into year. morning's the follow the Frank updates drivers minutes, To Minnesota we

year positioning XXXX is As shared for a ALLETE. we've previously,

mind: sustainability, coworkers We're significant for Following strategy, our are of full on This all and the with our focusing a clean investments to to objectives. clean shareholders. end state we clean in future, continue the when ALLETE on place front comes while goals. and increasingly positioning companies regulated to to forms. the excited and it's our challenges as customers, additional change energy we're customers working address growth supporting all align it We're in executing is that stakeholders in about in in will our with our returns actively in climate growth clear elite our the confident its We customers, communities, is a businesses, foundation curve year in sustainability strategy. strong at transformation with We of our to further yet-to-be-finalized anticipate transitional all improving nonregulated our the for our years, national of serve as we're and coming energy XXXX, excellence. our believe be. our position businesses serving good ALLETE's the energy advancing and the

an Our strategy economy. of action technology sustainability in advances communities our and for optionality a energy and and equitable and provides carbon-free secure time allows to transition

X. Turning Slide to

truly change reflect This is bold energy energy provide while XX% to our Minnesota renewable to utility earlier responsibilities Utilities our with that these and the this timing address our today especially forward our Minnesota and for and cares is in customers. communities. individuals customers take Starting carbon-free times, those by customers XXX% those significant enhanced the and Minnesota And we we year, forward the vision And first all in we're difficult to our to to economically approval the of are who challenged. to climate, continuing the vision as Minnesota Commission, need discounts this Power move we're we've in support commitment recently journey. how who during critical its to only our sustainability and our power regions grateful are our climate programs highlighted of we most outreach a serve. programs support announced in families As provide for Public and and to seriously step to Power's customers, will affordability support systems to most provide customers Minnesota advancing XXXX. vulnerable

supports customers the to to to in launched these programs work our deploy electrifies residential Power Utilities infrastructure metering rate appreciate facilitate deployment of to transportation electric regulatory Minnesota Water, future. our by state country, related And leaders the Commission Minnesota also our we utilize and investments of so. service recent our the the the proud Again, stations we're across and benefit Power Minnesota travel the customers. As residential customers territory Superior EV engagement with systems charging in and plan region. stakeholders vehicle clean to close from across has & that approval are the in with and advanced the do approval fast-charging Power to Public to support Minnesota sought throughout Light incorporate dynamic to a design be energy the first Power's the

sustainability diverse is operations reliable energy it around believe because And Minnesota for a customers. maintaining and Power's responsible in progress energy having so customers communities a transition We they when their clean as industrial while energy, future, a Power's their energy way diverse to clock. customers to most is for This of Minnesota biomass the to diversity comes Finally, especially XX/X true expect own of journeys on renewable important and that supply supply renewable the wind, mix resources. solar is resources ways. many includes hydro,

largest rebounded for and those strong. we're that pleased they've customers, that steel is so industry the As

year, Steel both fact, ore driven recently their In the steel by increased Cleveland-Cliffs strong guidance and and for markets. U.S.

with recovers. In the plans a for strand quarter, Woods all entire And plant customers energy. their manufacturing competitive to customers Minnesota economic into We them Cohasset, state-of-the-art to new ST open two manufacturing products. These economy industrial Paper increasingly and Minnesota. Engineered serving region. important announced Minnesota well reliable, important recycled oriented are to Power's business XX% clean at excited welcome sustainability won't the that Duluth, board the tissue region. produce our facility these in addition, plans for to we're the paper Power's acquired And new signals of with future look to Huber renewable. health Minnesota forward stop Minnesota as of is journey are Last

energy As conference anticipate XXXX coal by Power transform further plan described our by commission our to process, XX% renewable the its Throughout engagement our outlines be integrated Public February. IRP close carbon Power's lower and the last stakeholders, to to This Minnesota call, filed of Minnesota in this free with Utilities plans XX% Commission many transparent quarter resource and first in IRP XXXX. in and we and supply XXXX. our decision we'll Minnesota a with continue

the short into utilities Finally, plans case is finalizing the its ALLETE of couldn't filing. time, previously, energy, this as our in of matter. the become will and is early renewable Meanwhile, it serving customers support X% has C&I XXX% X% Energy our XXth the second-largest services along research November returns for value of largest in recently mentioned anniversary. to Minnesota Clean in and In generation, come. ALLETE celebrated improved Clean rate will with Power We're country. forecast in Energy average the company earnings with ALLETE and to will business its of making continued some ALLETE storage, and we an family customers annual be existing as strong the in achieving strategy and clean ALLETE businesses essential our fact and been building life that we projects, recognized including record for been a by that solar top-tier strategy the We're communities. increasingly and attractive financial more delivering key as its on and portfolio continue such answering to spaces, more on advancing the Clean company's has that move and our family and forward to to track well the ESG near in has society's to grow clean Energy's while future. sharing This received reputation. quality of a stakeholders, look several details improving financial successfully Wind; an businesses additional position its Barn growth Caddo, external optimizing executing to and objective, returns the EPS investors. Red focused energy of current unique in decades by proud its add offers Northern things the we to firms truly call dividend. are committed investment the our dimensions, growth growth difference success and company ALLETE's are by

Steve? outlook. XXXX our Bob results I'll ALLETE's additional financial turn growth over as Steve on Now and as for it second quarter well to details

Steven Morris

resources, and million net Thanks, XX-Q Power & includes segment. Power I $X.X comparison in the Company, in of for after-tax Minnesota American increases segment, hour per first quarter compared expiration XXXX. income Power $X.XX higher Earnings Please quarter XXXX A to for ALLETE's tax morning, by XXXX quarter a XXXX Minnesota second second higher cost due $XX.X and of share reported from rate $X.X XXXX reflected related remind to commercial were income by of resolution. significant recorded others an Clean share wind municipal million Minnesota wind included income case Slides the business and Transmission costs few energy resulting Spring Bethany, XXXX. Earnings operating resources $X.X ALLETE quarter net considerations. million ALLETE recorded Minnesota $XX.X quarter the efforts. XXXX million customers, and XXXX recovery ALLETE the Midwest, ALLETE included items was filed quarter. net net compared income of variances to December as the case details our the of or that negatively refer we and and at XXXX. income to power expense lower kilowatt to from below the April of Clean of XXXX $X.XX X facility, which Results Superior Results in details. expense. of good X approximately Like the $X.X $XX.X million of of morning, offset and rider like timing rate compared operations also energy Net for more the million. higher tax quarter Operations I were company's and from resolution, facilities encourage earnings Clean to $X.XX commenced XXXX, to in property to Water, in in the million and maintenance industry, million which of would the partially income in wind of XXXX second other Power, earnings offset $X were million. XXXX in Power income during the charge which charge sales Today, on to of net per reflected especially second impact lower The Light management after-tax lower the resulting for of per refer revenue the Diamond which on expectations the $XX.X in everyone. higher share by Energy's sales second XX% impacted in from margins, our Energy wind investment in our Regulated to lower you you These contract expense. and were operating it mostly Energy's for this XXXX.

$X.XX lower net which income included Other earnings based which were December XXXX. estimated operations effective varies I'll million earnings tax million compared securities to in These the our offset and of XXXX commenced our XXXX, Nobles an XXXX in marketable and income investment rate. annual guidance. in our quarter-to-quarter partially wind by share. expense X XXXX. XXXX in equity $X.XX income We guidance to Net $X.X of now confident recorded remain tax $X in compared to on achieving businesses turn from facility, Corp in earnings energy to from as decreases income earnings XXXX per net Our higher of

the our $X.XX we lower the of first in as to negatively the expected market As and year. second production taconite the anticipate higher impacted the at for per energy Regulated the this This remainder wind end of and of our $X.XX in half quarter steel from at in expect year. Power's the Diamond the we to earlier Also production guidance to ALLETE noted $X.XX Spring to increase of will with at are positive majority in near $X.XX first recovery, event Operations the expected Clean timing from of facility year at be in robust range customers to this results, of wind our facilities. lower-than-expected to Primarily expenses are disclosed of of quarter, resources Minnesota half the of the guidance our which the the share. winter the is the negative the previous driven Consistent be development, the reverse year, full our significant share. and projection wind a range Other impacts extreme first end other of due primarily quarter, be Corporate businesses Energy per energy our weather by

for lower a wind turn outlook. I'll sheet and the on resources trend ALLETE's ratio from a due growth that for $XX we our strong XX% in to over $X.XX comments the lower-than-expected of resources wind debt-to-capital the to guidance XX, by perspective, now addition, in Bob are for of as projected the XXXX. supported In so broader a far Bob? million, per factoring of is longer-term balance was position financial impact of of includes XXXX, balance it approximately remainder our cash share year. June

Robert Adams

good and everyone. Steve, morning, Thanks,

Bethany highlighted, us. expected As generally ALLETE's for from Steve businesses results and were quarter, financial now year behind half as the with the

reaffirming are $X.XX our range per earnings of consolidated guidance $X share. We to

expected are the the improve power large driven second year, at results primarily in Minnesota Power. to production levels of robust by financial half Our

and ago, by extension very Consequently, continue Our seaborne announced a expand, into further of adds clean differentiator remain to taconite and advantage clean as equipment. growth the unique significant especially a clean volatile on remains confidence finalized audience it energy recently even rules nondomestic plans strategically were customers be increase markets. years having benefit solar lead interest our the energy broad sustainable to of opportunities strategy, established are more driven significant sell continuous and We ALLETE's believe conditions, for key with been safe to of to a will ESG-focused to supportive investment key improved amount growth and view market to infrastructure policy and enabling stakeholder federal output expanding a energy Congress. them This taking community. yet strong I stakeholders, wind to executes that the construction by harbor pleased advantage and initiatives.

on over X% the We objective X% growth term. achieving annual ALLETE's are of to long average laser-focused

initiatives We are to advancing key get there. on many

of return. is capital and attract service is our important one rates and our First, Earning competitive the and Power are clean financial energy returns decarbonizing our to system underway customers. efforts to debt to ensure continue needed reasonable critical ultimately, most equity reliability of transition, positioned initiatives business our sustain Minnesota to energy for achieve ensuring the while

will high improvements competitive the reach in energy on foundation Power's balancing of a region rapid operations investments. include and We our system degree year. enabling while as to detailed the region our Minnesota And key that, case, successfully clean for reliable the rate expansion regulated continue IRP supporting complexity and initiatives, investments. has remains believe predominantly power as driven business renewables improvements. in grid. our filing provide this to transmission be a our customers behalf energy IRP, execute grid storage the in approved, and clean be by well on delivery. will infrastructure handle power renewable of are and rate-based with early transmission year, of are delivery Power's of will distribution on earlier energy for requirements. MISO investments critical which not quarters Sustainable in in as EnergyForward filed We modernization Minnesota Likewise, as with to our transforming advancing growth a Minnesota power November need this we Power sufficient and of goals businesses unique efficiency preparations cost There once

in distribution DC decade. Partners examples Grid segment transmission our XXX-megawatt aggregate, just Company North our the In will our part of initiative the American ALLETE's the investment our be of expansion participation few and in line, this and second-fastest-growing increasing planned believe next opportunities. significant Transmission of in Our are a growth we business transmission

storage Our time, and service to portfolio. hard and executing existing turbine plans existing wind enhanced of returns same second-largest portfolio focused on continues efforts, its optimization optimize inventory offerings PTC seek expanding strategy At safe solar opportunities Energy, new at business, and the is wind to Clean solutions. work the to beyond include company projects the its for ALLETE harbor

in highly the scale in transfer our XXXX. to landowners build, base project Electric in strong to provides confident of we working our or wind development able average this are years. safe the a be utilize Madison new with will Clean a cube plans wind service governmental expands components of & project and the project the suite Corporation is safe XX-megawatt of construction and for not and investment ALLETE also XX-megawatt to begin An our opportunity maintain finalized PPA geographic harbor long-term of over C&I with of that either extension projects optimization approaching high We Energy's the testimony an offerings, but space, with and turbines utility expanded and and Wisconsin the ALLETE of relationships landowner region advantage and levels growth, and a another The customer advancing, earnings remains presence jurisdictions, and complete with own, Clean position, harbor country. in with Barn and/or X service to Gas project. very transfer development advanced build, facility Energy competitive optionality in annual Public development XX% further own, local Red Whitetail only relationships to is transmission Service efforts. next

deployed to entails financing This Cash potential advance for the project been received transaction new have cattle Viking construction installed, be that operation. and is Xcel sale project Utilities completion. completion reducing Chanarambie opportunities expected wind strategy, project Energy, equity from our by for commercial Minnesota storage continues will repowering, track plan our were year-end on of another pleased the On facility. to our note, into for solar with XXXX. late Xcel's planned turbines future the on in and remains we expansion a cost Commission. upon XXX and project was tax petition related Regarding June XXX-megawatt All the approved in recovery the on the needs. Northern Wind equity Public This advance with expansion to XXXX track closing

In financing to a operations equity Clean projects a modest contemplating cash funding at-the-market summary. the underway positioned remains of We provides Slide which X, program. with clean for flow our for years refer managed Bethany. I'll are high-level decade to stakeholder And remainder completed reward summary ALLETE it Please early hand energy the ago of establishing ever-broadening a From our uniquely of and come. all stakeholder a views, strategy amount ALLETE unique internally over to project from action to will at currently continue through Energy. new back success. now base an on

Bethany Owen

you the Steve Thank updates, for Bob. and

heard, document, you for to its the link Board Sustainability Force which as recovery detail look requirements Disclosures. And commitment of to sustainability we've We're the in we quarters. we links strategy. regularly well accomplished, in we're sustainability. and company's strong to I ALLETE's it document, to with communities, information is and coming Sustainability planning sustainability first equity more you CSR partnership weeks growth especially proud strong regions open diversity, describes make track As carbon way. progress proud to an on comprehensive forward where as stakeholders governance and our At interest earlier a review already about our all the our with have including to investment Thank our several and ALLETE of second inclusion; We're questions. this proud line corporate our forms, and all the Accounting confident a best the clean work Climate-Related in of we in This sustainability for difference X, with strategy. advancing along update investors, future. working increasing We're the Task the the Standards all share and as customers, practice Slide the executing foundation your report, to proud very underway, the are CSR will and much our action We're to serve. and ALLETE's this ask coming reporting of at committed of ALLETE's with communities your energy. reducing year. provide aligns On encourage in coupled are advance update our issued to record, it to and value opportunities the of and we're there economic many in we we'll operator to the for this important the your ALLETE's Financial our our time, for you ALLETE. I'll diverse we're to coworkers; for operate

Operator

your And question Sunderland, first JPMorgan. Instructions]. comes Richard with from [Operator

Richard Sunderland

level high a at starting Maybe here.

Just And opportunities. of is energy how curious new tracking announcements? towards about ACE's progressing? work is the project evaluation clean How that

Jeff Scissons

thanks Richard, the question. for

to evaluate side. the solar way early-stage the looking assets all development. We're the wind to on across the how We continue storage, in spectrum approach and our opportunities to operating similar was both at

an would We solar say is focus we it So the see growth come diversifier important future quarters. for as critical I in more exponentially. growing And as market as that to this engine a see and ACE.

Richard Sunderland

And guidance taconite a just other And that the summary? the then, quick XQ upside are on hits. fair like moving sounds of the XQ since think XQ about any pieces -- there update? ACE these some real offsets it Is and 'XX to

Steven Morris

here. Yes, characterized you've Yes, Richard, think that accurately. Morris Steve I

So offset production. positive the be going vortex our polar Diamond is by event taconite the to Spring on outlook

tons; Of original seeing we're now full guidance our million XX production. says course,

that's course. So that, to going of offset

Richard Sunderland

curious, just XXXX do Maybe rates just outlook, I addressing see opportunities I'm the interim of transfer build, Minnesota believe remain before here. in to because outside the squeeze more one need The outlook? that? you

Steven Morris

Yes.

have out of transfer pulled We now. with in But year. preliminary is rate own, case And be. don't our on rate you're what estimate factored we came our that enough to together into exactly will case earlier the we're to guidance think the related for it course, that. ALLETE that opportunities, XXXX right Energy. build, working on certainly Clean are I The right

Richard Sunderland

of transfers there, be the to build, just Sorry, the outside outlook? are clear

Steven Morris

They were.

Richard Sunderland

a at Minnesota incorporated? Power on interim view But is rates

Steven Morris

number. in are rates interim Yes, that

So guidance. those projects build, out own, that we with were announced preliminary transfer after came

are that in not they So number.

Operator

Your Bourdon, Mizuho. next with question comes from Peter

Peter Bourdon

industrial So hours had sales bit X.X projected you the originally to focus it the X above like just on you're so sounds year. million for a kilowatt tracking to -- million

the curious of pre-pandemic back of per just on kilowatt seeing more you're to progressing the trajectory X kind year So if over that load? as million hours of

Steven Morris

It Steve for is Morris. is. Peter, it's XXXX. It

So XXXX. our if guidance around megawatt will, X.X we're for X that had to million X% hours, probably million you

keep mind, And production mark. So around and X% around not full when X.X%. had in so we looking running Verso this in X% that there, year, to Verso we're we is course, were more of

Peter Bourdon

And is the sustains XXXX? expectation that into that

Frank Frederickson

Thank here. you, Peter, Frank Frederickson

is it here driving Engineered greenfield we a as and to steel break out Minnesota, on both into that to mentioned, million region. terms we strand to and taconite that did for Steve a know as mill, with the of have And XXXX, future are issued of -- in recycled also robust very a here Paper domestically rebirth guidance have ahead outlook taconite that acquiring ground do to here, we planning going is we And we volatility million a around which internationally with where Minnesota, as tons it convert XX customer sales. the for And that of converting plans economic amount that our a as we've which lose board ST this a year, in has a seaborne Verso. pleased her pandemic tons stated in have Huber XXXX. we facility -- We in Bethany pleased, Steve with recovery, here how very do tissue are about fair taconite it. Products in markets remarks, So portion the we're mentioned, of Wood in saw demand oriented leading from and we sales looking came in of historically new market, to on into some operation; XX

pandemic. kind really sales of we partially it's those out of had that offset some that coming So lost of

Peter Bourdon

know just from XXXX can load us, follow-up, so the case? actual or then, load remind And management the discretion XXXX. as on test you get does just more if curious how a year, upcoming I set sales a just that's rate industrial based for it's

Frank Frederickson

here. again Frank Thanks.

And Steve's case, as are that the know on so and the to rate address sales. in course mentioned Anything we on do debated in we volatility about markets. industrial adjustment information a our too, these add is for considering here sales case. past does I put And throughout customers some to future mechanism that, utilizing get of test calls, customer we that forward the the And the forecast the year of Steve? rate our the know, that more in involved then

Steven Morris

No, that's good. Thanks, Frank.

Operator

Instructions]. [Operator

next Ellinghaus Your Seabird question comes with from William. Chris

Chris Ellinghaus

steel Frank, a can measure? next is do taconite more sort understand And I domestic see taconite But industry that strong. year? ramping you situation? domestic temporary transitioning is up in market the about for that as you pretty still talk the a of the with production industry filling international is the gap here towards use the while exports,

Frank Frederickson

Chris, you, for Thank question. that

making with iron by with also customers and we about they've here been that's ours called And advancing well. hot technology supported briquetted that's happening in made terms iron products of like in a originates also consumers, there right, So demand durable supported a of summarized you in sharing, leveraging customers have they've for with value-added domestic that our robust DR-grade there's the we think units, coming infrastructure that Cleveland-Cliffs, markets country where taconite we've sales. as do pellet value-added seaborne our the investments do in some that it I -- is customers dynamic iron see, both too, as and And been and by for but range. also seen strong public Minnesota's goods steel demand

just So too, steel And seeing and the markets of market seeing adapting to of this the volume we the out, leveraging also, you little of bit as get taconite pointed we overall the seaborne some as it's year. -- are full of are that a future. transition production that to to

Bethany Owen

measures Bethany. our pleased bipartisan been Minnesota. domestically really that contains we've that see going would the for be utilizing And really I just some positive to also add all infrastructure that's of we customers think to is that in Northern materials. really on sourced this Chris, focus deal mining

Chris Ellinghaus

strong. fundamentals shortages. So seems ore particularly like are for steel it There's iron the underlying

So time? of mined kind do you a see that envision that XX a suggest does market where potentially you rising that and to year there sort of is in level export? XX million-, domestic million-ton volumes would back And

Frank Frederickson

Thank you up, Chris. for that follow

and on terms historic to over XX years downs So XX to throughout closer taconite all the ups production. the XX of XX in has XX averaged average, years, to the tons million a past it over past

do the One in the is cleanest is and things America in steelmaking steelmaking that know world. the of see do we that we

basic And that to comes that increase manufacturing on and range to the that carbon industries, internationally utilize is of trend up our there world cleaner in much the is emissions we it a not also demand pelletized of terms and know form from value-added cleaning pellets iron some as a intensity product. focuses, domestically, a steel. steelmakers And form as Because just taconite as some Michigan. for of but of lower-carbon well Minnesota's fact back

million-ton and are, operating now. averaged mentioned, with out some to pleased that's is overall year. But there, us it that on international a as happening rate the average, as with XX has this tons. an robust to benefits happening. domestically right rate that approximately XX both bring million demand there So And we around I historical pointed market It'll I

Chris Ellinghaus

output? reduced the output heat? wind been little a Is that that's you've other about that some talk there is you Or bit affecting wind dynamics from seeing? coming can the Steve,

Steven Morris

the across It's was be that, certainly, could than the lower-than-expected slightly and It's of our not It's the year. across in country; And consistent about it's a wind. seeing here lower. last that combination just It with the just, Energy; especially lower we're Midwest ALLETE Clean it's Chris. during year. all just spectrum, expectation

December. So November we the particularly But of I if blame on be I'd rest don't of could know throughout wind year. little the see all a see that we or, me, and in we rest of more Certainly part the a bit of expect as -- year, we'll heat. said, the the the what wait excuse it and probably it. And

Chris Ellinghaus

read conditions were you any whatever on like guidance, XXXX whether year's year? normal might next you conditions? this consider more preliminary have that thoughts to And assuming have got you so through And some

Steven Morris

Yes.

normal for model into to a our A that years using, factored little X XXXX, think versus bit X as we've seen the say, the more I guidance, PXX. we wind past -- have in

of some out that that guidance is preliminary earlier in the reflected with XXXX for And in this we year. came

Robert Adams

Yes, Chris, is this Adams. Bob

XXXX about and around of output for through you the you sensitivities If range, $X, of one that units, can guidance imagine, horn a our wind go $X.XX that them. we lot business think is to

some of capture we've experiencing. so range down sensitivity And the been would that that

Chris Ellinghaus

what Bob, seeing market? can ACE you we've acquisition about of acquisitions talk you been of sort you're project about couple that -- have of sort over anticipating years. Can in last might talk the more some the existing

Robert Adams

Yes.

as would focus. couple to portfolio fronts remains of speak all, a mindful we're know. of a acquisitions, very the characteristics of you I of on -- So of first our acquisitions outright We're existing That building, focus the portfolios.

-- taking look we're at -- quality of hard credit it, sort et are to what take of be, price center a the future continue to to going forecast cetera. the back So

discipline. on And we're but very it may going be about think -- front. I selective projects to that I there, keep that we're done mean going to the to we're acquisition think So going get

activity. you're extensions the PTC lot again I more so remaining on new which other we these course, see because that are harbor safe just have we focus, got. to have Again, And value turbines, developments. of And going increased of a the think

projects. into optimizing turbines back those to of announced. PTC order, potentially, to we've PTC way, XXX% So thought they be the just activity XXX% existing of optimization, place that long-term those might projects to returns. you're ones to that going might recently the That's means in the going similar be build, the that fact By of we XX% to can they see lot some Those qualification harbor transfer PPA, a we going the into XX%. were be extended improve new that

storage actually area And Jeff tell I'll is quite So exciting. in this as there's this some activity then, around you that. spoke, solar that.

and see arenas. opportunity investments a element. to very with team, some confident and some solar existing of you're in to they those the add going terms wrap think that in There's the of I'm new of I projects wind storage, lot activity is our the there

Chris Ellinghaus

Or about for there, there you're something coincidental been Verso the some Verso it interest industry Is redeveloped the and seeing maybe to there's convert? merely of some Obviously, makes that that in here products. is paper resurgence regional gets plant wood kind later? harder in it and purposes paper

Frank Frederickson

Chris, that Frank, question. for Thanks, Fredrickson here again.

to has So recycled already a products. fiber intentions is in Verso to facility make is Paper. that recycled intact mill Duluth Their tissue the company that leverage the acquired site ST what

more broader is by machine tissue locationally have of planning looking recycled the board region ability So paper region resource grow more convert they they in that capacity in a machine the the wood forests state-of-the-art Wood new wood we products of Midwest the as the much Minnesota's additional bring oriented to leveraging in manufacturing really utilizing The fiber. region facility well supply market. announcement terms Engineered a announced Huber to they're are than we And as to to the in that as strand to harvest. into

announcements of quarter. in So came that a good forward couple the

Operator

I'm showing now Bethany this turn at conference to the like time. to back I no further questions would Owen.

Bethany Owen

We time you. your Thank appreciate today.

So and day. We investor the you of to at in your many interest you the hope speaking the remainder and throughout for other enjoy ALLETE. we joining appreciate your rest of with forward I investment you year, and venues of look us

Operator

for Ladies and gentlemen, this Thank concludes today's your conference. participation. you

all disconnect. may You

ALLETE (ALE) 5 Aug 212021 Q2 Earnings call transcript