WEC - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to WEC Energy Group's conference call for Fourth Quarter and Year-end 2020 results. This call is being recorded for rebroadcast. [Operator Instructions].

Before the conference call begins, I remind you that all statements in the presentation, other than historical facts, are forward-looking statements that involve risks and uncertainties that are subject to change at any time. Such statements are based on management's expectations at the time they are made.

reports assumptions statements, factors Energy cause factors Form and the connection to Group's actual to Securities XX-K the the materially with described subsequent contemplated. results addition to and Commission from referred other in latest and differ In Exchange with those could filed in WEC

Group. is and package financial the the earnings at unless detailed And otherwise will of questions to noted. of replay During the share this Klappa, Energy In be of approximately per analysts information share, now earnings after answers. posted be will be to hours Gale the wecenergygroup.com. pleasure this per presentation, my Chairman conference with discussions, introduce referenced based X A will open on it's call, call. available diluted conjunction After Executive conclusion for a WEC

Gale Klappa

us you results Thank everyone. for afternoon, calendar for year our our Good as XXXX. joining we review today

team the First, here I'd introduce today. to with like our members who me are management of

We Beth Chief and Operating Investor have Liu, Scott Lauber, President Officer; Xia Financial President our our Relations. our Chief Senior Corporate Kevin Communications Officer; Vice of and CEO; Straka, and Fletcher,

network customer challenges to delivered COVID-XX year the virtually on the service measure we saw to share, with our $X.XX news record our you performance that a first, this full in just provide release metrics of But pandemic. I'm financial As XXXX to year from we by report more minutes. earnings pleased a every morning, meaningful will from Xia on share. earnings reported you posed of despite reliability detail few a per

our history. financial in service pandemic the throughout million communities the more foundations half in the area, and serve. net across a than from to direct million total, the on of donated per company to efficiency, the difficulties $XX more accelerated the our for And and and COVID-XX discipline than on we rebound $X we during resulted support our an nonprofits year, second earnings in operations also efforts. energy highest of In income share year highest demand focus encouraging Our companies including relief

made and during and Board of now progress our million spent refreshment, We suppliers year, our minorities. the with $XXX on are significant We diverse through Board also XX% inclusion. or a women diversity members record

In addition, we aggressive we our footprint. as set new to continue goals environmental improve

XXXX pleased I'm data report fact, know, as for dioxide based carbon you have, XX% reduction we to to preliminary the a well-defined XXXX. reduced a In end below of XXXX, achieve on levels, that emissions by by we and XX%, plan

to XXXX, as Over term, by target the zero expect to carbon. longer we XX% by the reduce the out look generation fleet year is and net our carbon for emissions we XXXX,

projects we've would Wisconsin. full quite prove ESG and It where regional be see plan risk-adjusted additional Our call goals. megawatts our to rate has at the to industrial no history. sustainability our percentage additional very in X-year X% a we regulated look pipeline services, electronic solar creditworthy to and plan resilient, in point renewable added an include strong base The many of among of deliver storage show be that segment, our robust Highlights equity. infrastructure allocated year than to customers. contracts high-quality wind, billion our a controls. X,XXX our a have And plan and of asset let's battery food, $X.X now long-term with projects, a an of and best latest that course, the our efficiency, for for growth, to returns new the base our offer. we to lays achieving these it road of economy. the all, look plan. X-year largest calls it need We And All unusual of It at annual in continued Wisconsin's packaging with but That's essential growth The asset signs drives capital take average positions for us map in the plan see in out was, available progress such investment data and positive year than as our ahead, brief as providing of better paper, growth. national unemployment average. industry And and more products we commercial plastics, X.X%. customers for everyone,

Wisconsin. million all packaging be completed building and Bay reported that moving a to is projects in as is forward addition expected mining, mill this It's Green HARIBO expansion Northeastern and later year. the example, $XXX its major of Tool Foxconn, Milwaukee For we've you well. Komatsu in to are a The past

So we long-term sales of growth. and the strength remain our optimistic regional economy about the

Finally, are year in interested rate the I you case of calendar know our ahead. many for

As that under rates energy go would normal Wisconsin Utilities you later our this would filing rate effect know, reviews circumstances, spring for on January XXXX. be X, into

update to this yours. on but around our begun on a delay our O&M tell anything I an as XXXX we've and to Scott I final the times, that segment whether interest. results on other our in for Scott, we'll the happy quarter. can with X-year decision normal And and we're staff, talking course, for turn and the discussions our a end Of expect I'll be call the filing stakeholders would now first best be and you everyone's sales middle more determine to the of of infrastructure commission as performance. be in well with forecast over detail the all major in

Scott Lauber

Gale. you, Thank

Turning now to sales.

mine, XXXX, normal serving year generation. ago. by beginning gas a on used retail natural more X.X% and XXXX, our continue to weather XX,XXX more down gas deliveries volumes sales decreased compared XX,XXX shown electricity, were our of are Overall, a see for XX weather Wisconsin earnings the system. and electric customers X.X% to We the normal versus growth and excludes a were gas power XXXX end Retail across natural electric ore down This deliveries and customer were Page compared package. approximately of X.X%. on gas X.X% iron deliveries the on excluding basis, to Natural in At basis. utilities of

the positive On side, in trend has continued. electric sales you'll the have we residential seen that note

has in the caused XXXX Importantly, the iron the it mine, down by a weather weakness for excluding the basis. on industrial and Meanwhile, sales ore sales, X.X% pandemic. year commercial to were small counterbalanced industrial large compared full normal commercial

down recovery However, these were the the notable a positive reflecting only sales Wisconsin's X.X% fourth quarter, for of economy. trend,

on our touch I'd XXXX like sales briefly Now Wisconsin to forecast our for segment.

a XXXX using projections. retail typical year. are We're it XXXX XXXX a as We because for represents more base using

iron XXXX. This would deliveries, compared in a to decrease We XXXX. ore mine are X.X% X.X% retail of forecasting the a electric compared represent to weather increase normal excluding

We sales anticipate to expect sales. continue to small offsetting positive large between residential commercial improve and and industrial commercial relationship and same industrial sales the

of to For projected we This business, compared sales business. XXXX. discipline in natural our and service operating outlook Grove now and With infrastructure to by We mind, and leads an new apply additional time to and normalized operations We XXXX. relatively have our Tatanka continue ahead Blooming XXXX, in our and more X% on this budget. weather X% came to Ridge I retail project reduce segment. in lowered by on efficiencies to maintenance plan practices. gas adapt gas compared focused update on and expense also an our in operations are we across The the and in and technology X.X% flat. to deliveries maintenance best X% by XXXX financial than decrease we projects remain costs

third in the by quarter. As to a the end projected reminder, of go our Thunderhead service Wind investment is

it this over expect incremental update We to segment XXXX. contribute on Kevin I'll to for his in to utility earnings operations. now an turn $X.XX And

Joseph Fletcher

Thank Throughout you, reliably. our we Scott. flowing and the customers kept XXXX, to energy safely

for in Midwest and named for our was We the and a electric row by reliable trusted Gas second in Escalent, the leading brand year company named and utility, the analytics the the Peoples firm. running, tenth Our most customer a largest a most behavior subsidiary Energies, was year champion

ESG Now stand projects we our current plan. I'll review progress where and on

As call, in X heard the farm operating. now last Creek our solar you is

very As mentioned, large project. this is we've a

the mentioned, expect will to battery number in year million be of this plan our fall storage. for to wind, quarter. total in just the this construction MISO our market. Energies approved, making Commission days gas Wisconsin operation projects in and for of savings provide liquefied in facilities approximately facilities, in invest winters. And November, the solar approval natural begin would solar progress includes of past which megawatts commercial in of than ESG the these Gale the fact, our and this progress generation If of Wisconsin, share we project cold We process after enhanced In XX% is output two in for the accounted as $XXX in a the and during entire first in just with operation Filings XXXX. more bring Also X,XXX achieving to reliability

Turning to Illinois.

of serve to set the Since in for we capital operating April you begin And North than company. the are in ago the to back may schedule one order Commission then, September. a X invested the turn midst costs. in the have which customers we we that, our consistently set more Chicago. for in As Gas lapped recall, our Illinois of case. with Rates late are smaller concluding has Greetings XXX,XXX northern it review years a Commerce I'll with for customers The approximately subsidiaries, Shore serves Shore North suburbs to were expected while final reducing of before acquired Gas, rate Gale.

Gale Klappa

earnings Kevin, X% guidance a $X.XX seen to X.X%. This $X.XX an will raised dividend rate that that Directors, and represents range It's share, the $X.XXXX reward our of thank you focus at have is that year announcement company our can of an equivalent this shareholders between dividends. marks may the very share consecutive of X% cash And annual meeting, increased the growth a XXth XXXX. And XXXX Board of you XXXX the and deliver our to its our January in of earnings share base share. dividend a of higher $X.XX We're of of to the for our quarter quarterly confident new with a first a we quarterly $X.XX share. much.

target to to XX% dab the of continue dividend range in a in middle that be I ratio expect our smack XX% will with of of the to now, earnings growth line earnings. We continue in share. our Right growth per payout so

our and will financials on first provide with quarter detail Next up, Xia our Xia? guidance. more you

Xia Liu

Thanks, Gale.

per of XXXX increased to per XXXX. share $X.XX Our $X.XX earnings compared share

included the to business results a our sales capital includes mild all our XXXX our financial American at package efficiency. impact transmission morning earnings number walk on earnings of met continued of and emphasis our credit driven our and favorable ROE in I'll at comparison weather, placed improvement were share. Utilities, execution infrastructure us we significant XXXX to helped The adjustments $X.XX Wisconsin our and tax rate XXXX. a overcome of results factors: utilities of on COVID-XX XX. the utility XXXX. operating operations, per with factors their by These Our on by through winter compared These production of plan, the drivers website Starting our grew Page impacting in earnings company, goals our this

includes expenses First, were expenses day-to-day XXXX O&M amounts sharing $X.XX Wisconsin lower in This $X.XX and O&M from at from our lower favorable. Utilities.

reduced net rate of Utilities fuel $X.XX and Second, and our a and increase adjustments drove Wisconsin at earnings. despite in capital COVID-XX impact continued margins, the investment other wholesale

the we our that from and $X.XX FERC year-over-year $X.XX XXXX. changes Coyote improved in related at infrastructure in were November of from from Company in XXXX, factors in XXXX order production Overall, and decrease compared May Earnings $X.XX tax Wind due $X.XX resulted mild -- year-over-year. investment. the service orders $X.XX partially Earnings acquisitions. $X.XX utility from primarily margins to These XXXX. Third, weather capital added driven November order to XXXX end winter favorable expense include $X.XX from These $X.XX increased was $X.XX wind from energy compared American amortization ROE at estimated XXXX, operations. of XXXX farm Recall offset continued came credits in depreciation Ridge segment issued May to the the share higher from investment per to an the and and $X.XX to XXXX we placed we mainly had related our Farm of discussed. items and Transmission

wind energy Blooming upstream ownership Farm Wind XX% online the of in early the Grove came and December. center Additional

$X.XX to incurred interest is remaining per lower charge to holding lower we and quarter offset share. to as rates. related recorded by of Finally, for that interest In improved on our and some summary, debt tax The items, make-whole $X.XX we by take a account we Corporate fourth refinance premiums $X.XX in observe the performance expense. other Other in WEC advantage the certain decrease company XXXX partially you'll

other to items. some I'd update Now like on financial you

for XXXX. was income tax rate effective Our XX.X%

Excluding the rate was customers, our of flowing to XX.X%. unprotected benefit taxes

we XX% XXXX, income Looking rate tax XX%. to effective between expect to be and our

taxes project XX%. Excluding XX% we to tax the between customers, and be effective flowing of to unprotected benefit our rate XXXX

past in be years, As taxpayer to modest in a we expect XXXX.

Our our current efficiently will to be our capital plan. position utilize projections able we show that with tax

Looking by the on operating the million. flow X provided earnings at cash cash $XXX.X Page package. Net now statement activities decreased of

segment. were Our and reflects in earnings in more working XXXX. offset our related expenditures and increase XXXX a cash in at than billion increase businesses higher requirements, investment by Total contracted $X.X renewable million XXXX, and by higher COVID-XX our regulated Infrastructure primarily contributions. in to This asset acquisitions pension capital utility $XXX our capital from Energy focus

refinanced fourth company from X.X% of billion activities, in to of average over opportunistically X.X%. reducing terms notes In debt, $X interest the we quarter rate of holding XXXX, of these financing the

to to continue commitment our demonstrate credit quality. strong We

was the ratio of XXXX, Adjusting our FFO total our related the was was COVID-XX, company in XX%, and holding to below expected, As our to of target. of end debt pension debt our and impact debt XX.X% in XX.X% customer to debt to At voluntary XXXX. contributions ratio XX% FFO XXXX. for arrays

addition, no In as X-year forecast the need mentioned, additional for over Gale we period. have equity

share. of to the the at quarter. XXXX. quarter share quarter first guidance earnings let's per for project $X.XX per $X.XX we in in Finally, per the Last be our first share year, look XXXX earned We first range to $X.XX of

mild the have account of date, taken weather into for and assumes weather the quarter. normal to this rest forecast We

Gale. For full I'll are guidance that, annual $X.XX year of our we XXXX, share. to $X.XX it per reaffirming With to back turn

Gale Klappa

portion for track so delivering much. and stockholders. on conference focused value up thank and talking trash Operator, the a open call our on it to our our little Xia, of ready Q&A you we're customers for today. We're and

Operator

Instructions]. [Operator

Your first from question comes Shahriar with Pourreza Guggenheim.

James Kennedy

for James actually it's Shahriar. disappoint, to Sorry

Gale Klappa

younger. That's better right, looking all and

James Kennedy

easier The exactly. Yes, question.

of timing So on I kind changes out start How of any or credits tax side, sort the going infrastructure billion about change this cadence could the And of think the you've of forward. Any thoughts laid guess, in the if we your earlier opportunity that? does we set? $X.X of extension month should there?

Gale Klappa

answer those to questions. Happy

First that of plan, the X-year additional laid $X.X capital in we've all, plan. out for X-year billion of

now, of in schedule far that very we're -- on pipeline and diligence can selective As going robust remarks We've be we're criteria. so I only at. mentioned ahead projects the got projects cherry-pick of prepared due now. or on right our our that And our infrastructure looking afford best really right that exceed a we're we segment in the very through a to number because meet

not is the during I think, the or more will long continue. we in Really, XXXX. that cadence wouldn't at It announcements does, the pipeline. look give credits, me It So short, X year surprise have the base, if to set. remember all diminish really tax then X a environmental more utilizing credits. appetite way we're opportunity And earnings, any our certainly retail our to free continue in way as in does grow carbon to optionality to rate for energy. need the here build a footprint our tax and down going more that we're when our road us regarding in the to And the the extension tax story calendar even of continue change improve certainly

Joseph Fletcher

is confusion, the $X.X it hasn't been $X.X of just project is $XXX announced additional been has X-year yet. so million already. there The Just that no is announced what the that in Thunderhead billion plan, is million

no is Just there so confusion.

Gale Klappa

Yes.

quarter. on at. end of hope, billion its Thunderhead have $X.X We the look way, we third is the by to

James Kennedy

potential Have just retirement? file extend you about Shahriar following guess conversations Perfect. side. of life recontracting any updates any Are and NextEra seen Since to spoke, on there there clean the to I resources the yet? Beach. think last And them or had of we've the kind formally at NRC you with general Point

Gale Klappa

very another. possible Well, thing at we very an for make Point economics of whether see I includes a way we whether the an And one from includes standpoint of us but extension first might what they clear to for of standpoint, Beach, way, want NextEra as Point are our robust decision extension through discussions. our going had standpoint in the put early investment of some the from they're next best preliminary into stages either having But and Beach. a have that very set that customers opportunity together that's thinking opportunity, life all, or one we get investment decade, the to

James Kennedy

strong on Congrats this tough year. it. the Got finish

Operator

with Your Evercore. Chopra next question Durgesh from comes

Durgesh Chopra

the for clear the Thanks quarter. I'm on update on 'XX.

I'm front, rate the you savings of you stay rate? before? growth done X% Just been helpful. just So that in to rate Wisconsin have Could have on any cost the look And could about increase? case EPS remind on color if options us? the what like? XXXX, you here your just -- this thinking defer Or would can accelerate your you might around Gale, you target be to Just X% with sort before,

Gale Klappa

Sure. mean, answer the appreciate the short yes. question. I Durgesh. I Thank you, is,

We before. had have stay outs

In occurred case out in XXXX, constructive Again, of the about staff a in after and fact, the discussions we commission with you for were X if think the intervenor rate acquisition years. groups. of what Integrys

early again, as I stages now with of commission So mentioned discussion in you, to we're the staff. right

The with is the normal talking have to our on be a stakeholder than in Wisconsin for concept filings the be be, interest delay X-year schedule would would the case everyone's concept filing potentially this rate will a year, best groups. in rather all We a it utilities.

looks everyone with for given push interest not, a to of where cetera, involved like would do around that what et it's in filing and economy, and we're parties push think one again, working the should constructive, us a we're year. decision. at the have final for And all agree that so conversations best out, of first for the to would quarter. those I us whether are I outline the rate of believe the And on or out we end

Operator

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

Julien Dumoulin-Smith

reductions, the So X% after are you to want about many here's where so listen, peers X% to is those incredible How reductions. year down costs of the you cost, reduce brought I continuing and cost And right? think a this so to guys already as question know. what your of cost sustainability

you then it to that? I'll on follow-up there. one, if And separately, the could on So last just elaborate throw in

articulated already on You've benefits O&M. some

your about tailwinds. refinancing in talked in stay this other -- You've terms of are may? out ingredients that if activities relevant What in have some a here here are that certainly conversations, you there these what pieces other

Gale Klappa

Okay. first be let Well, very sustainability reductions, always, related of O&M the clear. to Great Julien. questions, as me all, of

had one X We from strong reductions. have systems have XXXX. we mean, runway, sustainability same of And our first why. general common of reasons continued putting We every an across in done Since a basically number the and on two, the to continue benefit of put I we platforms. the then, continued for in we me for companies. pretty at of I let footprint. you damn good at end everybody O&M acquisition Number the give is, put ledger Remember, it, we're the Integrys new to enormous work amount believe one.

system significant all call major the system. where We Kevin, days of is days ago. on to information going and ago, our X of that billing cost just customer-facing conversion completed That utilities drive centers, our reduction. are XX optimization -- brand-new a to Just a customer now XX

one, discipline. very, at very we good number are financial So

XXXX efficiency of Our cost cost company a an really, area beyond. a just it's it's initiative operating than the initiative, are more initiative. for folks And and as single Every terrific.

then our know, across good practice have and there, derive and So you acquisition the about continuing go of example the the are of less that the older, of ability still efficiency a is a number retirement those Number will as retirements that there I in are to the in with savings XXXX gave that particularly significant of announced, and going savings drive frame, number continued And post capacity I enterprise, example retirement we efficient XXXX. billing to much The the of And with a over optimize a come feel very Integrys. very of forward one. that. DNA just O&M terms XXXX, retire dollars organization. the really I more of plants. we've plants, information think, coal-fired time common There basically thirdly, of technology. customer runway you We efficient and to those to cost going millions as best plants but two, good system, replace power of are

all, success that's our gives I So your long answer our feel reason also but question, the efficiency, we to but and continuing on you to -- first that a color hope drive why ongoing. at that's it some -- sustainable of

Julien Dumoulin-Smith

then justify Right. you've terms mean, in to of suppose. key ingredients in And like the the a itself, rate it rate I I increase, case for not got sounds going

Gale Klappa

didn't, we different if Julien, whole Well, story talking here. be a we'd

for good and depending or best our not everyone's we feel feel that, for both good us the out view about shareholders. We it's for of to our of the again ability stay state very our another to to do us interest customers whether year. about in Now upon

Julien Dumoulin-Smith

absolutely. that and to tie thing? here, to to 'XX, Yes, relates Excellent. comment And 'XX just Columbia that tick on

Gale Klappa

named gosh, relates was in be It the units at older player site. our Oak our investor four later Oh, our it That to Columbia. Creek deck. to to relates

Public that's it our minority at Wisconsin Wisconsin or a relates subsidiary at because So and to as -- Service. unit is Service a Public Columbia, well

Julien Dumoulin-Smith

fleet. across it's So the

Operator

question next comes from Your Tonet JPMorgan. with Jeremy

Jeremy Tonet

administration Biden this emission goals on and some WEC? if Just impact off high-level could. wondering how just And law, if out reductions kind had wanted them. becomes new thoughts was I you start there, to if any with this I a has might The question, of

Gale Klappa

Is that the about specifically Jeremy, your goal grid thinking, by thought you of Are aspirational a XXXX? process? carbon-free

Jeremy Tonet

Yes.

Gale Klappa

industry, development a but think pace right. it I take, all it elegizes in again, of you -- and never, technology kind can is our Okay. if change about one say to that asked this. you of anyone never of When of what would moonshot Well, would I tall All actually. think you all, first the

If have about XXXX, grid to the carbon-free by would would get have it what practically to to enormous you change. a you think take full frankly technological

about pull could there, probably be you advancement carbon four. and might the One huge in they're in might long One modular levers to what cost think battery might capture. get a of One advancement duration be be continuing in breakthrough you If effectiveness nuclear. storage.

The other being would be a of hydrogen. a way Again, away think nuclear when is you look of widely in widely hard Modular available to at development, available. at that stage XXXX. be tool where that, terms could is hydrogen long as bid in

you capture. in with So that longer you can with, for leaves more of battery there advancement storage. technology duration significant kind leaves be It some also carbon

think story order. that I short, look If a But man, I is further it's meantime, news long so in we continue done good is, probably think along. say tall I would has the those capture industry carbon already. were elements are I And at. much to the betting would our a the

much already emission done company Our reduction. has in so

are Accord. in mirror goals Paris goals the Our Climate the

So a reducing emissions. regardless technology We the in need I we our in path totally think goal reduction. continue any XX% XXXX, on whether to of can we're of don't XXXX change hit of there

never, say about optimistic and path bottom but very XXXX. technology it I still I'm evolution. So we'll of would take But line see is, significant emission never about guess reductions, the message my

Jeremy Tonet

if one could. economic one, appreciate I helpful And just very context. that. I last a That's

guide to here? but we how should clarify the might Just the could missed if the about based guide $X.XX, X% be -- here, you confirm I is to here. the X% thinking that's if CAGR have it off

Gale Klappa

XXXX Yes, off our original based midpoint is it's the which $X.XX. guidance, of

Operator

Instructions]. [Operator

question from with Michael comes next Weinstein Suisse. Your Crédit

Michael Weinstein

Just a...

Gale Klappa

technology so doing not Operator, Michael good, Michael. off be Your I there. may think unfortunately, cut

Operator

comes question Sachs. Lapides Michael next with Goldman from Your

Michael Lapides

One well, for have I may team, the you. one on others is, one be for you. for two

It's gas volumetric and on there lots customer clearly that putting of but you, on would pure how or that of seeing for you businesses? distribution investors question And states the about restrictions any distribution, are that demand growth. in policymakers an growth on I in in impact thinking utilities your general? for activity out play are of guess distribution are a, just serve? view of impact gas you out kind or talking the market, the gas had are is, curious, states about you Just how what's gas that type my also

Gale Klappa

and no. answer answer Michael. is Short it's a good question, -- Short

I I thoughts ban fact, A of of make couple is that never -- is legislation drafting heating. one Scott, particularly to you view a those Kevin, And use or we In sure add believe, states natural in for home to have the say. is the gas, there lines. give Xia, might to on along anything someone I'm serve, there of happy their

you get according that XX the me an example. It's one development First to Minnesota Sunday. region give below. or to warm pump state of all, let Well, forecast. international world is There in weather not the under we serve, X our below the falls going XX heat area this with at keep in gas. natural a you could

states market we And market on average, is where share. each X natural gas in huge. and the gas -- provide the for natural share heating almost Michigan, average on Minnesota of it's in Illinois, a So XX% Wisconsin,

So natural natural that. in It's And reason gas really has these for about market XX% best is clean. a heating home There It's of kind It's is convenient. gas share. the cost-effective. alternative. a for climates,

customers. it you have to the as to looking get -- place the take And difficult could carry Well, is have it is gas. will believe, natural have you it's technologically, this well, hydrogen as country the still can't some permitting would changes, imagine an down still new maybe gas hydrogen difficult the natural as some the entirely today, we slight distribution as as network road in Now of from it to difficult I as network. And said, build way hydrogen hydrogen to fuel. be develop and distribution to get practical with infrastructure

But natural overblown. I gas years future a is very growth be ours, for delivery about the So business. strong many of customer fear Midwest, in come. bit we're upper sense side gas the a important to on Scott, that And of the is going natural the believe, way maybe seeing an is product, the still gas like my climate overblown, to natural

Scott Lauber

that's Yes, correct, Gale.

Wisconsin, seeing, growth, customer X% are a gas. from and to over we process over new customer their coal saw still fact, fall natural switch even in and in in In large about using Michigan Minnesota, we industrial the especially

side So on customer really we're seeing the and natural gas. still good growth

Joseph Fletcher

seeing we're also don't conversions I propane from well. still as

of will future part be geographic future. So the a gas in for near our our area,

Gale Klappa

good a point. That's very

you in mentioned share used at a most look market states, our If next the for gas, share, is source. I X propane market natural fuel XX% about

So network. and people distribution I moving are over gas off to hope that propane Michael, responds. yes, our of

Michael Lapides

No, that's super helpful.

quick one more the of the base meaning mix you gas your the via being rate growing current inorganically, organically, electric? faster plan help towards than earnings or Whether follow-up. even power would the towards of be to company Just willing versus more

Gale Klappa

electrification opportunities -- set don't when but at think the on we towards Michael, is us, I say opportunities you allocation opportunities with Scott investment see But look push and never think even our practically, four and capital Kevin of as and our the I Xia, continues. team, continues about of as I and electric greater when the renewables when never, significant I many investment so side. our

on That's will where our investment I again, opportunity our never capital electric you set, more side. even say is think, grow. continue So the never, but to significant allocation

Michael Lapides

incremental incremental what then me. on you one, you Meaning or would whether sheet the or you elsewhere, utilities require more segment sheet is? would Wisconsin seek not just if how balance pardon at much disclosed or balance with Can could how you think ever financing last financing? And that's balance it. or capacity your you your investment current excess sheet before in you external expected infrastructure and other it Illinois disclose make investment, much to core debt Got the

Gale Klappa

can issue equity not we to So more how equity? do we much issue if more or more were

Michael Lapides

Like raise you capacity? to ability equity. Yes. I have the having guess, not actually balance you capital sheet issue the your issue? Do do plan without have excess

Gale Klappa

I'll well. and view our give we give plan Xia marry overall you criteria. try my capital ask important her against to going high is as I'm that kind very this Well, of to level that of X to opinion,

our is mean, a we're I need? -- what first most are regulated assets. of The in is assets the

You have to investments. prove to the those make need

finance maintain need? how maintain is solid the metrics we it the do Number one, that number strive to maintained. you two, So credit and have what and

try know, opportunity, and more -- we you but industry, intend short, then require financing one balance the were need to if maintain we As there number we the the have really it stronger we to way. Xia? try sheets and equity, quality. And balance that would kind an keep in the of to really long story three, it of credit the

Xia Liu

Yes, I totally agree.

WEC, say One would more think that Actually, financial you me a met thoughts. is, heard XXXX. in goals the the has just been add I record. I X all utilities track

result. internal in as cash generate work, billion ROEs earn of money So and allowed terms We healthy you to year. we a a the very putting and our $X deploy at utilities,

time opportunity, two, the Number only WEC on the cash very investment take investments, we one. for just number focused We when on infrastructure the that's we could you get appetite. much horizon own using the heard cash advantage our also that we're tax And but not back. flows. the us focus to So tried say

the cash have I allows think, the from performance think, investment, of to continue on. WEC overall, trajectory been infrastructure the us really So the strong to combination on to I recover utility and ability that be we the

Operator

with Steve question Your from next comes Fleishman Research. Wolfe

Steven Fleishman

regulatory related shutdowns the something potentially about Wisconsin you've would to be you're question overall? remind of that far So thinking that? and And treatment. that with kind to stay-out how in so your in what us just related agreement? just And coal you done a Could

Gale Klappa

Steve. question, Good Yes.

would were it's First to to right the rate involve of outside agreement, or now. any not if a stay-out a it come of all, we window because plants retirement case of coal discussion delineation any of

Alliant. about the So Columbia for was announced by of XXXX, about, again, we're talking that XXXX we're majority the that of talking the just retirements one including

to need be retirements of to I'm any coal would stay-out arrangement, any plant address making a there you. kind the So no sense in if

of in $XXX Secondly, fact, And book coal-fired which the That in plant book the retired with Wisconsin. so is Southeastern of a unrecovered to was securitization capacity unrecovered I at recent being think, our be since what a balance done, XX% XXXX. We've million capacity $XXX balance about in expect recovered large exception million a is of have if power Plaza securitized, retirement. of most Prairie, we you That have to fair plants -- this offering fully been essence, already. of about our think retired, coal-fired those we've has amount year.

Steven Fleishman

is whether ROEs? I'm another a could majority. question or on any ultimately FERC relatively change And you policy in And have Okay. just curious stable? we're to there one Democrat stay -- have it transmission on will be think Great. thoughts new if you going just Or other

Gale Klappa

is you we'll we Federal that Regulatory up. you're that development, you I to I without mean, be Commission. goals there fully as focus relatively transmission Those incentivizing I'm in enormous development Steve, talk got administration's he the incentivizing hand-in-hand, have, when further if -- guessing development. the it's And to talk to not is when renewable the that I'm done. for people administration, going X an point not guessing, know, you focus. Biden egg. early and we the understand will And Energy for chicken think reason now that renewable is, to on as enormous the go see reach stable,

continue counter from return would not would try it So anything almost policy to to for public be the here transmission. huge to tailwind needed to incentives that a do

or at public guess my stable, is if least positive keep things will -- policy the FERC. overriding So that not stable at

Operator

Fargo. Your next Kalton with from question Wells Neil comes

Neil Kalton

to system? in around pretty start XX soon out? planning insight are Are you're And news. curious, topic going opportunity investment Just there this hot X EVs wondering been How I'm for your be need to All about recently, to thinking you EVs. just years how the Is a of the quicker it? thinking you kind right? guys into have how any about knees? I'm

Gale Klappa

electric current Well, governor Okay. Wisconsin administration this, to and in case. in I probably really, has for mean, stronger and Great had the he continue current gubernatorial COX understanding governor terms the first that the progress the discussions to that. believes reductions, much pickup state a to X the Neil. here there of on order all, question, has keen that's vehicle about make really I've in heard I've a be penetration. with of very

So do I.

short, there we have long So are -- story X things going on.

a market generic the for of opening electric or up Commission looking try should the governor's What has up Wisconsin And that, the that's objective we Commission addition to of share. proposal at in is all, First in it accelerated be they filed EV to is vehicle modest opened pickup pending before proceeding. advance a Wisconsin right infrastructure now. have broadly an to

regulatory details that So very to do right we right getting filing? pilot you on want suggested a And now. a now, give do we've have but early Scott, that couple just review that's of

Scott Lauber

Yes.

buses or a that, got support out $XX how there. some income It's million. whether some lower help or all other it's provide We to support infrastructure also of of through maybe we've that So pilot on the put to ideas there. couple of the a that alternatives of about areas some state

houses. it's actually in would So rebate a help really chargers early program be would somewhat some that put individual in of it but the stages,

Gale Klappa

early So days.

Scott Lauber

Kevin?

Joseph Fletcher

looking with to day-to-day. so want of who a relationship at and larger do the them, we've in what and in EVs fleet got the continue term, are they close looking that we'll Some customers our longer at their doing

Gale Klappa

we're our to have an actually seen pick other about switching commercial or a all-electric who up. who EV customers begins penetration a and good a needs We've makes advising larger as either Kevin fleet over point. are number of thinking pickup, to

see early very in in again, earnings on late terms EV impact don't region, any So of penetration major think very days. probably until our you'd I our in the XXXXs.

Joseph Fletcher

recently. just is looked XX%. electric COX statistic XX%. that talking at a emissions And here which we're Transportation, about, at I'll day Present I add

So today. just bit a more already little

Gale Klappa

Kevin much Yes. region point. surpassed so we've more. It the done is to is COX. our Both and good in now nationally, transportation utilities largest a essentially, cut have or has the making that contributor

contributor, Neil, And largest the so utility sorry, I'm go transportation ahead. now not industry. is the

Operator

final And from Weinstein Michael with comes Suisse. your question Crédit

Michael Weinstein

this time? you Can me hear

Gale Klappa

We can.

Michael Weinstein

Could it the looks credit targeted -- about just further question the extension is your like guess, the going a of and Could extensions the PTC quick And it and got you between view A change your increase business from I projects? there passed you December. Could more economic on infrastructure decent any -- the in tax utilities? that for have extensions? ITC we mix might benefits forward. the chance increased desire that

Gale Klappa

Michael. question, great this. tell a will It's I you

availability also up projects quality We've tailored but now. appetite. tailored really offtakers, X business. of The our have to our credit the We've no to appetite, tax own with high-quality that for pun growing really intended, things. infrastructure tailored very We strong

of talked tax we So business be growth that to will the extent be, projected is the it our we've what appetite and exactly pace to about. that what

a income which talking On know, might stronger other see increase the as of the proposed, about corporate were other plan, hand, have if we as we the we part greater the then some fall have short, in If all tax be the this there. ITCs that there Biden just on out. tax, laid you day, tax actually. place. would an long And the with we working story may a of meaning now, these appetite, in and we're couple PTCs, you Right a of to plan extension opportunity that, stronger But have appetite.

Michael Weinstein

sense. That makes too. question, total One other

for what year If out O&M in the could expect for the you increased to would do savings earlier get filing, rate like -- we this laid an that a delay call? X-year see target Scott beyond

Gale Klappa

you'll for Straka part Take our Bye-bye. XXX-XXX-XXXX. any have gives more only conference out No. you clear the few she you really everybody. No. Because all if that's that you. for direct Beth We the XXXX. day. Well, our you a taking that, appreciate I remember in Thank care. on is questions, right. Thanks, if of believe line direct participating. which line, contact And Her again call. question to final All about

Operator

this for and you call. conference Ladies Thank today's participating. concludes gentlemen,

You may disconnect. now

WEC Energy (WEC) 4 Feb 212020 Q4 Earnings call transcript