WEC - Earnings call transcript Q1 2021

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Operator

Good afternoon and welcome to WEC Energy Group's Conference Call for Fourth Quarter 2021 Results. This call is being recorded for rebroadcast and all participants are in a listen-only mode at this time.

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.

In addition to the assumptions and other factors referred to in connection with the statements, factors described in WEC Energy Group's latest Form 10-K and subsequent reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those contemplated.

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

Gale Klappa

the for we review Good as first of afternoon, today quarter everyone, joining and us XXXX. thank results for you our

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

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

$X.XX news this first from we saw our you As released share. a earnings morning, of reported quarter XXXX

focus a As performance. on in our was operating factor excellence major always, our

literally, cold temperatures the on and recovery to economic you the the our our In comment that were in vortex events impact addition, fuel investments people in with stretch February, and customers XX our metrics we will grid minutes. that put during experienced the infrastructure we polar in first, our dropped energy I in more few in and Xia mix test our saw our weather of and a the But provide our moving colder northern and diverse to degrees to when our Fahrenheit service details safe about positive region. of a just report economy that remarkably minus portion get area. performed pleased bitter and am warm. we've the made

just impact the we know, Covid-XX over pandemic. year a Now since the has of first saw as passed you

enhanced operational reliability safety, has we Our only and faced. commitment by efficiency the been challenges to

largest today stands is company history in track. the billion and company plan, $XX.X stronger on Our capital our ever, than

bolster our to same average art base sustainability renewable infrastructure. Over and in the next will five to continue At time, of in the X%. plan we annual we investment asset invest our growth it years, energy drive of the expect our state as

potential progress we've made us in future have the and back public fact, already battery policy we renewables allowed goals. In environmental see our reassess across and system supportive and to our storage, step the

So today, more even years. next aggressive we're to for announce that pleased I'm setting several targets the

plan. Our reduction goal a a is of XXXX, older, continue our remains XXXX, our some carbon and by use our XX% execute from less with end retirement of capital and carbon in XX% of operating to as efficient targets refinements And now long-term XXXX the course, by XXXX. we fleet believe emissions baseline. by we emissions the units, existing goal generating an We from accomplish these both of technology the can reduction zero net

net we're targeting zero on our distribution emissions the of side the of gas addition, business, now end In methane XXXX. by natural

to renewable gas ongoing our delivery help Our into effort XXXX this our upgrade system natural gas networks milestone. us and clearly incorporate achieve will

read We'll be report climate in that more about website updated on tomorrow goals to these able be report. our You'll our morning. launching

really the tap making four important about in Wind good on Scott our Jayhawk for projects progress We on wind impact Farm our two you renewable points it add with ESG I and are Kevin fill WEC progress ESG to mentioned another details. call headway project the of segment, the our business our on visit in we're our Infrastructure and announced will Since we've earlier plan. at in capital I last call, Wisconsin, you regulated our As the plan. plan.

enterprise. and investment tied less our than we than more of As than our the across XXXX. assets we our our by to continue less be coal of And mix, our will asset triple XX% of we end reshape would project to that XX% in revenues renewables

it put offer. expect risk together, deliver adjusted has industry all we to the to returns among and the best You

need strong our have all customers is of the depend At the on. equity. our it that credit ability and heart no to affordable, issue quality energy reliable and clean We to deliver

moment, take gears switching regional the a look a quick for economy. at let's Now

With vaccinations at the we're the That's signs rollout rate more unemployment pre than recovery. to COVID-XX a percentage and close well of levels economic underway, stands average. than the better seeing more Wisconsin's today of X.X%. national pandemic point

parts. for productivity up Foxconn campus is Foxconn addition, of qualified to That's workers Also, survey a new expected may based by Wisconsin the Milwaukee. and state hires time Foxconn University It regarding last High incentives. the performance agreement of the The announcement looking to to that to up. agreement indicators X,XXX core This Wisconsin be $XX also by business the recent you billion Tech income specialties. have that $XXX has importantly In with and of our the focus seen confirmed all responsive the servers server of If Foxconn provides Foxconn flexibility producing invest one reached gives are week south marketplace. computer Foxconn million from on XXXX. of to campus

not understand data hardware Foxconn in Foxconn largest the site, that also of manufacturer market the XX% time, noted make United we infrastructure the approximately that servers. over fact, one supplies it plans Wisconsin States. for In worldwide of of largest the to the if

the beyond additional state business incorporate continue would to opportunities changes more and agreement. on Foxconn this work jobs that new contract as with So will arise, investment

we numerous shoots we look our see across of service green area, growth. As further

growing one one fulfillment Kenosha is a of just Bay Wisconsin, $XXX expansion company the center. Green packaging continues of That its south million Amazon in mill projected investment of Building example, a paper This announced to expand. in of million. area warehouses northeastern And distribution Milwaukee in $XXX will Uline For completed just two suburbs. new with located again. our be western another

nation's with Uline materials. the industrial of name, distributors you're the not packaging one is familiar shipping, and If of leading

economy the sales our So of with all the about developments ground, long-term in regional the and we're growth. optimistic the seeing remain growth we

our call as quarter, for the detail an turn well for over results update sales I'll Scott, all as segment, our the infrastructure Now to on on more Scott yours.

Scott Lauber

you, Thank Gale.

electric across and system. customer our sales, at Turning the the a to year to comparative XX and basis continued more compared of of on volumes on In shown a a utilities customers sales ago. are now the beginning gas more At natural end our customers compared saw basis X,XXX were packet. we were XXXX. natural gas business Natural deliveries to March, X.X% Retail page at iron gas growth sales approximately the across of of we gas is retail weather of on the Overall, electric ore XX,XXX in natural on normal serving power Wisconsin, increased normal growth excludes to our XXXX. of entire quarter earnings generation. open increased mine This for from ahead were up. tracking X.X%. our by weather growth to X.X deliveries Retail quarter electricity, as use our first excluding a Wisconsin a X.X%. And first the in deliveries forecasts of X%. normal basis, begins up see gas And economy Wisconsin weather basis,

turbines be our and in in than of we more wind in consists with we the long-term we project interest our Facebook As the $XXX offtake criteria all of investment worth expected the to adding for a produced; wind and in infrastructure as Kansas XX% end ownership of plan energy agreement ownership go is invest well benefits. tax the megawatts. capacity this all XXX project March, This acquired announced for are Jayhawk with by segment, service will built XX% a Jayhawk another farm. year. to we million fits XX substantially interest combined a to This project the

segment now represents projected opportunities investment by during operations As a service billion a year with billion have of is XXXX. to reminder, in we projects seven to This segment. strong investment wind in infrastructure go pipeline Wind We $X.X $X.X additional of our invest expect an now end. to our ahead; Thunderhead on announced this

to I'll an update the for call over on our Now operations. utility turn Kevin

Kevin Fletcher

Thank you, Scott.

Our COVID-XX remain and keeping focused safe. employees been service have We our in improving on customers statistics our areas.

efficiencies pandemic. continue we system across and realize our the workforce as And apply practices of We companies. design post lessons learned to we'll

megawatts recent in wind. Pending Solar-Battery well of utilities. projects shares bring Red our them Park. and our invest the would generation, these total, Wind of megawatts touch storage our progress we me will our approximately scale to as Commission's Paris, we projects on XXX some for Darien solar as last Koshkonong Since let Now, renewable ESG XXX of Barn call, approval, megawatts The provide developments announced large In other XX Park, of four online and plan. XXXX and Wisconsin XXXX. billion $X.X between battery

XXXX. renewables More operating few of and XXXX these projects, for come our maintain months. the all significant significant in capital between and utilities expect savings battery course, dollars to invest plans projects storage cost deliver reliability. in part are These We of and next to to

of in new facility units. approved, plant proposing targeted Western in combustion generation for The this megawatts our service them at will seven we call reciprocating we site to project XXXX. We $XXX internal or are as to use rice expect also build existing million If Wisconsin. invest in engines, XXX North power in date

WEC bring late making savings facilities, liquefied provide approval natural process the two natural in which this the XXXX. the to On way gas approval, would in winters we would for of And year, Energy gas which operations facilities and distribution by cold during enhanced expect is our we end reliability side, anticipate its the through the

the the support proceedings XX smaller in utilities. groups. midst March we at filed Shore and with to we rate the Commission environmental of Now XX infrastructure. request this forego for case days. in forward of to of I'll after time, updates. Commission's it major year These few we're decision an turn back and On And our the filing a distribution North investments that, gas Service XXth, to to gas Public rate are a Michigan reviews agreement to a with regulatory look for two customer We in At Wisconsin reached Gale. our this utilities, important the

Gale Klappa

Kevin, you much. thank very

of range growth the remainder share. our increase That recall, also $X.XX you to the Directors of January, of for of cash end X.X% an rate. stands in X% was of over dividend a as earnings at year. the $X.XX a in that reaffirming As $X.XXXX to we look quarterly our earnings declared year, a may X% share long-term previous a quarterly expect XXXX. And weather, our Board to assuming we projection to the guidance top of of a reach We're normal

We continue XX% of a of earnings. to to target ratio XX% payout

with I our you dividend in will earnings to financials are now the middle range provide now our of expect line our share. guidance Xia? will our more We with continue And be details on that so second quarter Xia and in show. in the growth growth per

Xia Liu

Thanks Gale.

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

the includes our included placed efficiency. utility we on capital Our impacting quarter favorable first conditions, XXXX. execution compared XXXX were winter the of of normalized lower by on interest page walk package comparison colder XX. our our quarter website Starting our this production by These first share. our a for earnings weather with continued morning a results The to weather emphasis through expense, credits, number per stronger sales, quarter of factors. continued driven on earnings operating the increased drivers results tax of earnings the and $X.XX of significant I'll operations, grew first plan,

from to sales day in Overall, segments. earnings. included $X.XX Rabbi First amortization Negative to of expense quarter of weather than quarter The higher quarter the more increase performance. first in XXXX. the drivers corporate was favorable and drove weather normalized and in and and performance $X.XXcompared trust first other rate $X.XX Rabbi to depreciation day by expense. utility when included a adjustments expense of added the trust Also conditions last in we the compared our O&M O&M winter of offset $X.XX increase quarter-over-quarter year operation. increase $X.XX investment added

a Moving American XX.XX%. equity capital that $X.XX now we investment investment of our in is Company, to continued on earning Transmission a investment. Recall up to picked on our return related

be XX a With of on ATC the basis, ROE We ROE for basis annualized to proposal adder lose would membership. RTO $X.XX for the earnings it are that WEC. drag recent an point adders aware would remove incentive

Farm from Earning January. Of and service the online the of Blooming credit at we're production These farm Ridge our Wind Infrastructure Energy the Wind tax which compared include came XXXX developments early wind $X.XX course, the closely. the acquisition. Grove primarily XXXX first first to Tatanka to improved in XXXX, in in December Farm, related quarter watching quarter placing segment of

quarter Finally, XXXX you'll driven quarter, we corporate In Rabbi on first improved resolved our other see increased that some share. favorable interest earnings summary, our performance and per investment improved trust $X.XX at and by lower tax performance, by in expense. segments items the $X.XX

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

our be we rate full XX% tax the to XX%. effective year, and between income For expect

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

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

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

on now cash six cash net provided activities million. statement flow page the Looking decreased of at earnings by the $XXX operating package,

more XXXX to capital underway The our increase natural collection the came Our in with customer the working however, with requirements. in first February, than costs country earnings capital, was higher by in working spike of the part increase this contributed arrears quarter practices central cash in gas the major throughout of offset in coupled normal markets.

$XX million a in remainder million the from the first year. expect expenditures capital XXXX. asset of $XXX acquisitions and increase quarter capital Total improve We XXXX, were the to of working throughout

ago. with million senior in to to full the rate interest continue our on the the holdco This the and guidance issuance quarter In XXXX. year. to year X.X% interest refinancing financing along to year a efforts provide I will turn back compared On like closing, is now for it year, a I'd March, provide our variance holdco Gale, the before $XXX throughout last our average second front, X.X% with note favorable

for of This we're quarter, to normal per account and the for a of April the $X.XX the share. For rest quarter. range expecting weather assumes weather $X.XX

earned a per year. the share As last second reminder, $X.XX cents we in quarter

a earned than per decision, FERC of from share $X.XX XXXX. the normal $X.XX $X.XX a ROE in have Excluding of would quarter and we second better weather pickup

back to the Gale to I'll mentioned year. end share. This assumes full of the share top As Gale. that $X.XXper reminder for the as a weather we are our range that it guiding earlier, $X.XX year. the With range normal remainder And turn is for of to per

Gale Klappa

focused now ready question-and-answer customers Overall, the the on very up call. for to of portion you value stockholders. open on it thank providing much. and we're our Xia, track and our we are Operator, for

Operator

[Operator Instructions] Shahriar line Guggenheim of Your the Partners. first question from comes with Pourreza

ShahriarPourreza

guys. afternoon, good Hey,

GaleKlappa

are unidentified still bunker You your Jersey, on Shar? in

ShahriarPourreza

right, That's well, I yes, undetermined go you're Hope that's right. back. That's Gale. correct. when But Excellent.

policy second. in come question But sort again, QIP the against movement the a just seen just then question. Gale the policy fundamental saw on out Pritzker in we've of And Illinois week front So, the some last points prospects the of thoughts sort seem you updated this moving And more on you that around legislation QIP? share been around have spring? the on anything there? any Can skeptical for maybe the the data dialogue

GaleKlappa

there happy get Illinois, and on legislative in over has be know, contemptuous, which contentious, in first redistricting. as that Illinois, the the numerous fact there. of I kind and for Well, length of Shar. And now also the song situation the is coupled Sure, historically a I'll budget think front, to, time what's of the country running long not all, time out with to only to an a says legislator old energy is the session, that of terms bills you understanding Illinois. way go but been And there's the competing are that's in short

with of But the So on what lot we'll is of that really there focus discussion if much Exelon's we'll bills, everyone, number side the were does business remains involved on And remind a on, But see potential electric nuclear take would which the for lots place. very plate. I their the not of there, see plants. competing going happens. anything subsidies

really gas, necessarily going we'll right lots suspect at it we cases revert there going if the of would is will, rider would forward think we see. But it example, what's rider on that periods. of test repealed, and So utilities have rate that the to major there. And are of I normal now be not I all simply then to revert again, on for don't were that even focus looking things people's with

to Illinois. of tell the overly in the time future but of moment, done will what So at not needs terms we're in concerned be

ShahriarPourreza

prepared probably in up? of it it do guys something do, So too Is Xia. Scott remarks. of sort that? start you we you to kind in a and O&M the to for and is year, more pulling view to Is Terrific, But about strong potentially with how then think forward? some that maybe clearly keeps could look highlighted your discuss your early, question the that a performance

GaleKlappa

quarter Well, I'd Xia be will Scott in quarter. happy and to view. have say of got including a have summer this; I large we their lot ahead, year a the

to we'll see. have So

weather is bodes the mean, summer. I I Scott, biggest potentially swing at what would I in looking think we're think weather for. the

ScottLauber

you're right. Yes, exactly

month July what day. come like August, and And have going stuff at about As our you just did weather keep biggest the The And we'll is both year, the months, every are we we you look through and of think last monitoring definitely does summer closer year; summer. also end do the during lists nearly of we'll ways. it as projects come. get doesn't weather or the

a So but do at yes long ways but we'll to that. look it's we continue it can before

GaleKlappa

I will on list it say have Scott twice. a there, and checking Xia

Operator

line question comes America. Julien with the next of Your Smith Bank from of

JulienSmith

Hey, front details the quite thanks just Listen, time announcing now. late. all a for on on are the the regulated you Nice investment call of guys. bit

how targets these about you've XXX the storage, solar, the of had on well targets itself, think year. XXX the doing already. obviously targets, think as I about thought you right wind? XXX obviously of And articulated the curious longer Just have a megawatts to you data preponderance And you

upsides that? there again, some see, curious track, frame you, is how just I'm potential you as you just on So admittedly, actually best curious well would or you're these just

GaleKlappa

for will terms to have want view to want that renewables in we But service where older, five his when year accomplish would much and coal period, remember of in the of this we we at you retire of Creek would on say those fired those the give I as Well, campus, we this, in are that retire we'll let older less the our what some units adding years XXXX, XXXX, efficient Kevin older, particularly years capacity. Oak the well.

gestation my being And slightly see as come, I about the these as but view And come. again, would said, approval you So of more period, construction is to schedule, projects. announcing in as the But the ahead more period. schedule, the think, us Kevin schedule thinking intact. said, we're I to terms and of be ahead of there'll but period,

KevinFletcher

a I we will underscore prepared But Gale because in schedule. be bit ahead just out are there that of remarks, opportunities are come again, we're there other evaluating. there that as more said to

tuned. stay So

JulienSmith

math. the longer-term Excellent. on here, here, I into sales through doing 'XX X% the And can, obviously maybe sales the growth X.X% follow here. obviously for in you in of would 'XX to that up frame last if 'XX? Foxconn to question How well some plays Because forecast

You residential a takes it I longer prepared a the, obviously on alluded remarks, you've and term? against seen of as ago your moment the to how tailwinds of your little bit that some Can as here. fits you puts elaborate believe kind in well some

GaleKlappa

understood situation, I'll be let Yes, happy me view. well But that important I our is Scott it it's sales something also his not ask think to particularly to I how first, about in and the to think terms into forecast. of Foxconn you because I'm plays going address give

with agreement state. revised the about talked we So the

state runs through much agreement basically the earlier had longer term with the first was with that Foxconn The agreement. agreement the a state XXXX. Importantly, that

at now, to on it think of the will that be Foxconn produce has visibility table that what's So It's is. that's a they clear there mistake line the would think a mistake what campus. on all to where

make the hardware still In goal prepared campus infrastructure remarks, is to I fact, producers States. the in mentioned that one aspirational this United of saying in largest data is as the of their Foxconn

beyond So shorter And XX but investment. ran so projects the with term does is is additional and the wide the door than agreement term years. had open this more state first deliberately again, long for future not preclude period. This agreement Foxconn

publicly and fact, In all that, forecast solid. view investment that our that's long pretty sales doors Scott open and said the announced, at when term darn for I Having additional we that campus.

ScottLauber

looks because and Gale, to the about sales that Yes, at feel projects that, that announced, there X.X% you look exactly those X% years, developing. still so all when are still good have our growth right, that we forecast, in

In today fact, Uline the talking about we're on even call.

I the have in Wisconsin, growth continues new a good we've $X think grow. projects over that about that feeling that past, development of in So beyond we And about that. southeastern billion the and to talked listed,

overall, came the feeling and I'm where quarter So good the in. really happy about forecast

JulienSmith

elaborate new manufacturing Any actually, Wisconsin, I elaborate to or a you on Inclusive on is additional other domestically quickly this southeast front? of or on in topic can on nascent reshoring if residential a here. comments that major tailwind, focus ask efforts that development

GaleKlappa

high tech tell XX our, prospects, Wisconsin. from here seen I yes, is at moment, a not the tell can any that that back the I've close which that Regional number it's our number will been in Economic but of you the as that of give time economic robust to through looking area. of prospects here none Development names been a Short Milwaukee know, you, and to this in I've X the you I and I've for is in involved Initiative. answer been years at will I development I've standpoint, particularly manufacturing years, this number

the that And, about optimism gives watch manufacturing us attractiveness this the the as regional say, about center. a they again, UK, as So economy, of Wisconsin space. a of lot in

Operator

of from Evercore line the Chopra comes Durgesh question next with ISI. Your

DurgeshChopra

you reconcile quantify Hey, COVID else? if anything maybe I'm missing sales thank pieces? good help just question us And XXX you. the just doing guidance? It's those and better Great for to taking Xia, on trends, but can Gale the quarter, thanks afternoon, my related can well, weather quarter, you

XiaLiu

sure. Yes,

what guidance, came older things. in One item. we resolve the would So was weather kind in better I the of for little a tax item, overall, is line tax several with historical think

PTC. and interest were bit better. on mean can and O&M conservative we So saving, And little that a

we the units what performed business better all So than guided. just overall,

DurgeshChopra

it. Got

coming was than by this So so for and interest item lower us? item you quantify normal, the weather tax expense O&M driven Can it just tax expected. was more

XiaLiu

about $X.XX it's to $X.XX, what $X.XX guided So on. we better than

DurgeshChopra

you. perfect. Okay, Thank

clarification. quick have, when from there? the XX And final your Gale; you case XX a are rate That outcome said or filing that's of and days. the on the all you from sort Just expecting Wisconsin of I to here is date

GaleKlappa

obviously, commission through staff be Well, to process And the our is date filing. our now. going normal would from That's basically days XX its projection. of the XX the

Operator

next Jeremy from Your Tonet JP with Morgan. comes the line of question

JeremyTonet

Good if for potentially having I here afternoon. impacts was your Thanks plan plan. on see Biden how wondering see do me. ESG Maybe just starting the and off you just you comment any impacting could here. you that And progress associate you change investments Does just of opportunity was change time? Or can over and infrastructure on about things things early Granted, even curious. this lot innings the here? kind a sides? any on think thoughts? transmission I or how

GaleKlappa

Jeremy. question, good And

I can maybe summarized think points. our overall in three be view probably

early tell. too way is to First

and something place imagine concessions take course the changes and of through of can making get an particularly period the the the imagine, you extended could craft can going to that sausage over that you As think are debate, to the Senate. I

overall, think to way too probably I early tell. So again,

And drive seeing Washington, suspect forward. consensus of specific. we will our that and the extension support. first very consensus, everything think are obviously going the just battery I helpful of and credits, strong investment talked as tax and have there That but credits production additional tax a would be to be in company And incentivize application tax extremely renewables. to toward folks those we're very only beneficial things very not to seem particular the credits, to based hearing continuing have that's I think, our items and to couple strong the industry, the in to storage, However, I of the on

is some as to of credits be, particularly board, if tax extended In in addition if renewables. that, has infrastructure toward which Kevin as will us mid all support well, And Kevin? applied question the footprint terms these additional segment, made very MISO got have a but all on to that how the has regulated transmission continue much think they next also statistics. segment to expansion we and of expect development, just renewable seen, of for the, and XX for in drive be there I mid, a years actually may investment will additional across projection to more transmission. you be continued any there continue there's specific as don't our that our of helpful very the and that interesting the MISO project would

KevinFletcher

for XX period Gale, the good look at that if and billion transmission Gale a they for about XX investment long transmission plans, Yes, you potential over later the we'll more billion in to suggest it year, was certainly $XX $XXX MISO, to that ATC year that us. mentioned, but know that's

GaleKlappa

Jeremy, I point. that your hope answer helps to question this at

JeremyTonet

That's very helpful. Thank you. you. for Separately, appreciating that the small ROE hit is

of for backdrop are deployment? increase transmission changes the development optimizing wanting to incentive proposed thoughts transmission against your on what wondering first Just renewable

GaleKlappa

policy the the adder to are move that on will for on I allowed it that of continue basis be a case. the supportive still retail But allowed ROE the in public Well, surface, FERC transmission companies overall doesn't ROEs least would really setting of of administration. XX or tailwind policy in of ROEs I at believe the above public to or direction believe the seem most of the that states. at reduction be the reduction a surface, the point broad

the of So how hit to must think on which out. at see policy day, is we'll proposed, see FERC mean But is shakes that the be a really policy going that to I incentivizing broader how end have And to in the renewables, administration's all the us. again, minor transmission. course, we'll of this reflective

JeremyTonet

at one, and we if And economy in call, odds here, your on here mentioned, saw at of thoughts makes this aftermath profile be the be and across kind focus helpful. Winter the opportunity? of last in here. with you a renewed line thinking energy the investment see could resilience the the share on just have focus? this Got Uri, is Do you sense. you just appears If of five Even you any where it. impacts onset It somewhat an state attention impacting about service could, I that'd high your intertwining appears to example Storm there reliability as territory

GaleKlappa

be happy bedrock this I'd resilience serving approach reliability. Yes, to. business of has Well, and managing first entire and of all, to been customers our

mentioned that temperatures polar minus event our execution area. portion northern earlier, came with degrees vortex spades, that through of the the focus associated when service XX when I Fahrenheit in in Yuri As hit

the And of think and Public reliability. and climates So to It's difficult think, get that, storage is winter. reason gubernatorial level, we Commission, just in for resilience another why I that Service reliability today. at resilience very to why there, supportive that make the reason for the Service our another approval been I the example, LNG we'll administration, Commission we're optimistic Public during before have maintain the very facilities they've

particularly at state way being any see don't I So policy, odds or with in Service Public region. our resilience reliability Commission in positions

events the think is. underscore fact, In just that I recent how important

Operator

Our with next question Suisse. line Credit comes Michael of from the Weinstein

MichaelWeinstein

hopefully. good. Much guys summer, well. I'm going so better doing? into We're Gale, great, get to summer, last the year feeling how doing Hey, feeling better you much you right. getting better. Scott, is are year, hope than Everything the I in

GaleKlappa

Just good. crank all up It's your area.

MichaelWeinstein

that ETS ramping growth projections asset higher well. asset growth that might you gas does at about reduction that that be your Hey, at period? growth between talking And through increase that greenhouse or carb right up is XXXX, rate as that period range all mean the now end X% during XXXX also, through right you're previously Does of the exactly. XXXX. the Yes, goals, and the

GaleKlappa

XXXX. now our we've answer from $XX.X ESG unchanged think today. there based That plan probably And to is that our the are two pieces announcements the progress question. plan and on made I capital through to billion that

Now, our as going I every update into know, the, refresh analysts late early November. we and you plan call and conference October, we in capital fall our on

XXXX, the five a year investment see reduction. So on additional take there be forward, no going have methane progress change. refreshed making a we're But may not five period through coX capital short whether or we'll with this and we'll upsides is year answer to look for some particular the continuing plan and XXXX associated

MichaelWeinstein

reductions utilities? those across And are is enterprise, targets just those Okay. or that the or the

GaleKlappa

how projects our no, would of operating relate utilities. our to all, coX This wind many first infrastructure Well, and you the saw. with specifically segment,

MichaelWeinstein

it And Xia, rabbi one the lines. is O&M essentially and was along up $X.XX? trust; I Okay, O&M reduced but question it rabbi the trust not of more I'm was assets thinking about way. technical, that I'm by for thinking about to that the wrong with those renewable related then guess mean this percentage $X.XX. Does down $X.XX

XiaLiu

but exactly right. it's for not you're Yes, dollar directionally exactly dollar,

Operator

Lapides Your next Sachs. with from question comes Goldman Michael

MichaelLapides

operating the XXXX, my And Creek the the a or taking down that just coal Elm that's future? plants probably end you'll still of probably maybe remaining old of X Oak plant want have targets for Road understand by the what Hey, guys, and have thank the of then. Western everything only plant, think the shut is basically power hit. by couple part make else Kevin sure you're or I environmental question. I trying saying, I you Gale, to some Is you to you're

GaleKlappa

campuses remain that are the Creek side. the units the Really, and new Weston Oak two would

You're right. exactly

MichaelLapides

kind other there is I as is X else the what unit, there units of But or forget older just well? whether one operating as Weston or of

GaleKlappa

is there X Weston Scott,

ScottLauber

be X will X still Weston and both Weston Yes, operating.

MichaelLapides

it. Got

And infrastructure Okay. kind developers. about to it a non come question had is, opportunities my of projects and lot regulated second the that I you've when you're buy thinking then, the from segment, in guess of energy seems

were lots the if to same kind you large an of lot among early projects in Just at of of curious all, trying They're the peers Midwest. the landscape well. mover, of as buy the a all fact lot how and given that utilities peers, regulated but compete is that changing, your cap your

on many more curious just gotten returns competed just being if yet. are whether whether big, there's that business or we so haven't factor or neighbors, Amerens landscape downward, or the given projects bidders, is some that I'm the of your other So it's to point AEPs so

GaleKlappa

about the Grizzlies the of you a it steal this said And is here Memphis as I'm Bucks well. your email asking chuckling a earlier Michael, copycat because each were from other. I comment from Coach who Bud lead, reminded me a with question on we remember

expected as as with we be. pipeline is as very that just And for being at. taking as is diligence, prepared are again, our which brother just the And returns us additional may look we careful potential projects robust returns, that think fine. been. our truth I good early of to remarks But our a announced, in not his have matter our Jayhawk due be them ever from we pipeline projects as of it's Scott of very, seen kind are So the of mentioned project any we is on some of stealing the idea, that

or metrics So financial project stage expect either the we I haven't the opportunities of And any of diminution don't will. this at game. we seen potential

MichaelLapides

little front. how you've of in then just the Got last been point in just history, are to for M&A kind It's general, other time Gale? kind one, utility relative sector it. thinking M&A cycles And this on your a you And about quiet curious. of that one seen in in the

GaleKlappa

Michael. gosh, or I motivations, driven by three years or Oh, that's think. different question, two last We've great seen a cycles XX the over so

continuing not comparing right So still I we're over longer good for opportunities. The a because than saw matters. over necessarily think consolidating the we opinion years. you industry. you'll five do, think significant what at time, that, last Having I'm of different I news sure have cycles my motivations M&A term, were the the see all is said I scale scale But six in to least believe and believe a I still M&A of thing that in that the the different. is or probably form efficiency

terms of of opportunities, and matter mergers matter. of growth does premiums less does still equal still in think matter. terms type does scale I more Efficiencies still in

would full briefly to the the to uptick still suspect I I a I you'd that a those be industry. to earnings per think if going convinced But can just closer diligence, low repeat ones we'd consolidating in use. believe have acquisition do share first seen after will a after it's clearly immediately year time, going our as we've And you due to significant giant again But So or we be industry. would closing. much be there's be through additive criteria probably M&A a that that would I don't the accretive like. is an And that expect pandemic. in over in

strong The is really we're do it. stronger And third of balance the we own not sheet important have And be one industry. hard at going our rate. that growth well anything least the is rate acquire worked to organic second would is the and as in as that sheets very in to trash balance of we that that believe growth really to the the would as you'd

So question, least answers X% your read that Hope at Michael. to a that year. X%

MichaelLapides

other And they No, last they're each point, because hate me that's helpful. kids saying for and but Knicks Grizz. Go will my play this fans, super tonight,

GaleKlappa

By Amen. you know the be Grizzlies in coach way, the used he great on that to Go a guy. the Grizz. is Milwaukee, our staff head of here

MichaelLapides

been but He a great a some this been time. got we is And It's -- it. they'll guy. early, year has he's little tough, turn

GaleKlappa

tonight. luck Good Amen.

Operator

Crowdell Your Mizuho. next question comes with of Anthony the line from

AnthonyCrowdell

time first here. Longtime afternoon. Good

with the Is Does include I just or guess or be anything, to with that know comes of spoke high the from maybe about something the indices figure ESG like? you curious, if or the first two or that less XX% going up revenues, the XX% don't XX% said a to I than level assets. or XX? company revenues earnings company's questions, I is there any number? are coal company target I'm so think there you how hopefully, Just is maybe

GaleKlappa

there's will up both you revenues tied base mention came point, with less wanted XX% we That's is we on be as again, asset base our end portion our math. of as XXXX, by have reason And simply we thank an accurate the that investors, with types a the And not mix. energy are by our the a clear, think perception we perhaps than our the one. a expect would doing asset just number Well, of large important estimation I very to an number some XX%. raising to reshape be and our simply and that been to we asset coal simply still case

achieve is not thing other here is the can in the some existing think The end the and also XX% XXXX reduction that we retirements. emissions I with XXXX aggressive refinements an technology, some coX goal, only that important operating by of but really point very

by so how And think the how reshaping and XXXX. I XXXX. sense of you dynamic will continue be XX% that less lower a small we are our by gives to reliance And obviously, of asset that think than is mix than

AnthonyCrowdell

thoughts Texas out maybe approving that renewable strong on performs. maybe platform? some programs I blaming regulators ESG renewables? of that on any a highlighted additional And strong were guess that approving and build give your you that you. some and the in the polar that tailwind pause Does winter? cause maybe the And or of regulators vortex question of how thinking past maybe really thank I any capital. your maybe projects about pause going of how that the given strength fault think Great, earlier, question your around, what think happened had company's on you infrastructure, lastly, if there? I fossil the on put and gives though, highlighted could the Does If infrastructure we are this infrastructure work a

GaleKlappa

the running we saw. given we had the everything. February, to everything demands units, think give very in honest for, gas have I have the the coal to vortex And State the Service informed had wind the you very here. they and well everything question. nuclear operating solar, that Commission a event on The and is farms, be to example, the keep basically units, recognize And specific lights intelligent Great polar we flowing to Public the answer that during

fact strong diversity of needed to to So performed the to I perform mix, that the a fuel the we have way contrary, clearly, but we think it by just safety, such our underscores maintain -- maintain and units. we can fuel not think have dispatchable And for think diverse adding because the efficient, we think I this public have only reliability renewables, fossil we of forward. it's can going possible amount mix we know

and emissions. we coX an in So can and put reduction coX achieve still that XX% all together,

Anthony. question, that hope response to I your So

Operator

Global. the from line Andrew comes question last with Weisel of Our Scotiabank

AndrewWeisel

a bit beating Bucks the I'm we last night. chance nest But from good. another Still get smarting tomorrow. little the

GaleKlappa

you let the tomorrow. not a going might I ask root to if Well, for you're do? You question nest

AndrewWeisel

congrats the of all, reduction good see. targets. mentioned, the How So new always about one first a few on is, questions? you emission first That's to

include this decade. XXXX you but of cost Does now make think some include existing will to technologies. stuff use available that's reductions to you're the that it but expecting target the I economically economic, said yet not

GaleKlappa

No.

the it renewable ground, three refinements Pretty that units, about. of retirement we're cool. executing needed. essentially mix efficient think and other I includes some no the on But operating to things; talking plan less technology older, capital add our

AndrewWeisel

provide that in of Could become some things money out the the even money? at impressive. upside more Yes,

GaleKlappa

nine wouldn't Possibly, that and XXXX. yes, XX not, Certainly. But I never expect to possibly. Again, eight for or out. never now or you years occur between say

So we will yes. see but

AndrewWeisel

fleets? is Okay, operations XXXX goal target I generating great, believe zero net and in that stations. company like net also then Does from your zero vehicle from offices include

GaleKlappa

our of are the emissions, from matter absolute of the truth we'll coming back. our step is coX -- got we've fleet, Well, obviously generating emissions the of our preponderance operation

our the But step to other just operations years, an over the next the and the field add few We'll basically, goal we fleet. have to back well. as of electric course So look generation program Kevin covers at to vehicles aggressive really fleet. our

KevinFletcher

in especially side, continue But to targets shifting time, continue are do as and we'll the then our have vehicles now. right, And Oh, EV our we that's on over as and fleets to available, that Gale. evaluate more do become warehouse those will exactly well. over commercial equipment established

AndrewWeisel

infrastructure. just clarify energy I on one, last the just Okay, great. want Then one to

or you billion a billion. plan $X.X would be another $X.X $X.X and spend think total $X.X I Rather, you billion. that of spent to said billion sorry

simply to 'XX X.X. stuff Your five Is period? is an before year the including period Are you the 'XX from guidance that increase? for

GaleKlappa

at $X.X we will the that which billion I of of course, we're the ahead between schedule, Now is including things of way allocate good segment news. to the to and we're past. there look end additional And still the now some from And key XXXX. is think this

AndrewWeisel

you're but right? 'XX, Okay, X.X 'XX to to for sticking

GaleKlappa

it, and That's sticking our to story, Andrew. we're

AndrewWeisel

any that doesn't either Just to policy I assume corporate or DC be correct sure include to tax around tax that, potential renewable credits? am changes from

GaleKlappa

That correct. assumes You're status quo.

Gale Klappa

so today. for for participating. call conference our concludes Thanks this folks, Well much

questions, If everybody. feel She you XXX-XXX-XXXX care. Bye-bye. contact can Straka. reached have to Take be more Thanks, Beth at any free

Operator

you. This you conference participating. Thank for call. concludes today's Thank

now You disconnect. may

Gale Klappa	Executive Chairman
Kevin Fletcher	President and Chief Executive Officer
Scott Lauber	Senior Executive Vice President and Chief Operating Officer
Xia Liu	Executive Vice President and Chief Financial Officer
Shahriar Pourreza	Guggenheim Partners
Julien Smith	Bank of America
Durgesh Chopra	Evercore ISI
Jeremy Tonet	JP Morgan
Michael Weinstein	Credit Suisse
Michael Lapides	Goldman Sachs
Anthony Crowdell	Mizuho Securities
Andrew Weisel	Scotiabank Global

WEC Energy (WEC) 4 May 212021 Q1 Earnings call transcript