WEC - Earnings call transcript Q2 2021

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Operator

Good afternoon and welcome to WEC Energy Group's Conference Call for Second 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's Energy Group's latest Form 10-K, and subsequent reports filed with the Securities and Exchange Commissions could cause actual results to differ materially from those contemplated.

earnings share, will unless referenced diluted based discussions, 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 -- my introduce is now to it pleasure

Peter Feigin

that I Feigin, the NBA way Champion Excuse me. just can't interrupt a of to you you for a in Bucks. power truly President team And can up. a I'd like minute. tell firsthand I'm energy great Peter an without have Milwaukee you Company big NBA to incredible

companies So, I'm Go Bucks America, go terrific and the the Gale WEC. proud of and Bucks, introduce energy to the Chairman friend, of in one owners one of personal Klappa. minority of a best the

Gale Klappa

sure top review all we shot. for my and as pan today the Oh, dropping champion, And for XXXX. give of Peter, Quarter wonders the us joining us Feigin of to of not Thank let's no afternoon, cease. can goodness, so Bucks. Second everyone. world thank Good much you that, results never I you congratulations Milwaukee for but our all from it by, I'm a intended,

of First, I'd our the like to introduce members team. management

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

range. But is new will a to will our strong earnings $X.XX in is share. a you top news through details our given that raising $X.XX with from saw morning, the minutes. we our Xia reported performance first we're share a quarter this you half this annual $X.XX provide few the of our just that of guidance. expectation As end we And second a The reach share. release XXXX of more range year,

year. of this for the normal weather As remainder assumes the always,

pleased I'm segment business a look as performing at we level. our to high is every report Now, lines, across that

The continue and gives solid to sales Companies satisfaction. commercial in and us recovery customer growth. our expansion economic Our confidence in projected Wisconsin deliver with superior reliability industrial

Our is sheet balance strong.

no well our for new regulated segments. issue track fund both plan. is and to plan have equity our ESG on And our our progress We need infrastructure to

a both by generation footprint. we XX% Recall baseline. from the carbon-free asset among world, megawatts the project XXXX fleet You Reducing a agreement offtake industry. Center. tell to detail energy reduction a carbon that our At growth from battery example solar, progress $XXX-million made our the May, that improving development our storage. end know our may But we investment the provide XXXX or is ESU ambitious of of in in this achieving in we to in bolstering plan largest the we build in environmental will you as and most one with is average expect Wind announcement A it's of of on the emissions back Sapphire technology. high-tech also our role time, financial of set a state-of-the-art base good and near-term the our play in great regulated wind, in our goals This drive to plan moment. progress XX% week an of our the sustainability We've meet just companies renewable metrics. are by ago, exceed about X%. the electric all and Energy by XXXX same invest you that annual I'll made and more asset we Sky in a Scott just will on with the significant expect progress XXXX,

We XXXX. existing can from come as we use of targets units, electricity with regulated end our the only refinements, coal expect progress of that to ahead, of efficient and older, supply accomplish of operating technology the retirement we execute less X% believe we by these now plan. ESG Going the our

our from our upgrade gas XXXX. will our aggressive effort And emissions generating help by by emissions X XXXX. our Of and into course, X our renewable ongoing goal carbon fleet net us net system achieve delivery long-term introduce gas remains to networks methane goal, natural another

We're and goals week. responsibility corporate in our You strong published percentage And can X.X%. gears last a and now the that's recovery. full general at a fact, our points average. quick learn Wisconsin's more today let's rate, at X which better look the just than of about bit we still these more take report, effects a economy. Folks, national stands positive unemployment seeing in switch much

with to grow As region. continues business I projects new across the mentioned,

Tool its again For Milwaukee. operations is example, here Milwaukee expanding in

in And not trades, now well for over development next has Milwaukee Tool tools familiar redeveloping become mechanics. you're with for office Tool, the battery-powered the tools. a It has If years. space employees as been world's Downtown in provide X professionals cordless Milwaukee as now, Company vacant to the of sector, new number tower one construction auto of utility leader a the for X,XXX producer is the

sales in a our addition, infrastructure number well note, I'll as our more for call be future quarter, our results over calls. update those we'll are In in Scott covering as for yours. other pipeline, with of the projects turn On development economic the on segments. All an and detail to you that on

Scott Lauber

Gale. you, Thank

Retail earnings serving year see natural on on our Overall from XXXX. on end electric and electricity, growth X.X% more were of XX the to gas packet. beginning deliveries of utilities system. volumes electric Second excluding you, X.X%. up the gas we're a At iron up customers to we're ore customers basis, the XX,XXX and continue more Quarter mine, basis, natural comparative our of a of customer across sales approximately a retail X,XXX ago. the We weather-normal Page are shown And compared

our in we seeing service encouraged are territory. by We are rebound the economic

we're Quarter, basis XXXX. were by used in Second the Wisconsin large X.X%. for year's the excluding gas up on weather-normal weather-normal we're to in mine, a weather-normal gas forecast deliveries sales, continues X.X%. Meanwhile, and on And X.X%. grew and of a as basis, and a up sales And Wisconsin industrial Natural gas Overall, up our For example, power generation. were Quarter track electric down were XX.X%. natural continues our small commercial commercial of the This up from from ore on deliveries economy up. open XX.X% industrial XX.X% basis, ahead iron excludes last growth to Second

our Infrastructure Turning segment. WEC to now

in by Invenergy. will is in XX% a As capacity XX combined consist Gale noted, wind The County, interest we the turbines Sky Center. of being Wind McLean ownership of Illinois site developed agreed acquire a Energy to Sapphire megawatts. The have for XXX project

in interest. projects have announced XXXX. wind very -- it will project We $X.X XX% operation well. investment segment. plan of X invest to the approximately criteria expect service our projects go billion or fits now Infrastructure We for late ownership $XXX We our represents in The into investment. in million This

additional to of in this $X.X expect our remainder invest X-year billion We the over segment an plan.

that into projected our to been by inflation half factored projected on developers. timelines projects, Wind XXXX. Our projects into of we wondering invest now first case encountered Jayhawk is our service not the forecast. with Wind is and have In turnkey any investment go early Thunderhead go we primarily These of in the service impact have date, next year Farm pressure. these to you're significant in to about Remember into inflationary

So, seeing we for operations. turn will reduction of With utility Kevin returns. are our over I an no on to that, it update

Kevin Fletcher

and I'm pleased in Touching Wisconsin, Scott. developments Solar some producing is X Hollow Badger to nearing energy. recent completion on you, is test Thank our that report project

you is solar Madison recall, XXXX. XXXX our and and than our [Indiscernible] of second renewable XX large-scale and this As project, energy XXX part Wisconsin Electric Southwest of This we Gas the for between in owns may megawatts. remaining megawatts plans own more project triple and

of phase operations We achieve expect II, year. Holler to next Badger commercial the project, the next

Now, for Commission with this and the filed Wisconsin Service an updates. after reaching groups, our major for a we rate a environmental year. regulatory Public forego with to a request agreement customer utilities few the base [Indiscernible]

our come. we're has weeks pilot decision pleased the the in in a that for service We programs to charging Wisconsin expect approved electric vehicle And Commission areas.

base Shore infrastructure. equipment, and first And two Gas effort rate we the proposed investments issued charging requested rate the in rate distribution Illinois increase reviews order. North also on XX.X% a to step administrative our smaller Recently, a million $X.X a significant ROE the component. order due XXXX. we the in made vehicles. electric case to capital on charging law year, X.XX% an this recommends have on have at programs, for of rate is judge last a In The For equity affordable increase since options electric utilities. primarily install we the these plan promote the to and our This update earlier

final mid-September. commission's the expect We decision by

advise conclude to reached you pleased return This equity we XX.X%. a to layer settlement review settlement a Michigan Gas our I'm million rate Utilities. of revenue and Michigan, on for that increase with X.XX% stipulates have a $X.XX equity of with in an all Finally, parties

Quarter. commission's the end approval expect of We by the Third the

other pending to And time. We cases that, with have rate over no this Xia. I'll at it turn

Xia Liu

Thank Kevin. you,

cents cents per $X.XX Second Second $X.XX to increased Quarter per of Our XXXX. Earnings by share Quarter XXXX compared share of the

earnings operations. were higher favorable results utility Our largely our by driven from

a this The grew utility Second XXXX. second page and Our execution weather we economy, recovering plan, I'll capital, through Starting regulated Quarter operating a our comparison on operations, walk website quarter Earnings our compared of benefited by earnings continued morning results the includes our XX. drivers. through put to on the efficiency. warmer-than-normal with on from package our utilities of significant of $X.XX focus our

amortization Also, the in variance Overall, utility economic all This second as resulted stronger favorable the and to a rate of XXXX. other offset payment $X.XX charges. expense. increase sales, penny out $X.XX partially that by of resumption other flat. the from reflects of continued of higher as in point factors and $X.XX and Lower relief investment contributed These added late we like day-to-day of weather O&M factors added First, $X.XX. quarter-over-quarter, was compared were one the drove and recovery to earnings. pandemic $X.XX quarter weather-normalized operations. well capital from additional depreciation impact I'd positive quarter-over-quarter a

investment to of XXXX. Moving by Quarter decreased the compared on to $X.XX Company, Second our American Transmission earnings in

benefit November to related offset XX.XX%, to by segment tax Second our wind less driven mainly improved retroactive the energy to production Earnings credits by of Quarter was allowed from XXXX. was up the by recognized increase $X.XX order. FERC picked offset in a to a the Recall quarter its this we order to in While Second ROE continued that from this a compared XXXX, the in than This partially resources. penny XX.XX% XXXX infrastructure projected to acquisitions, of Quarter penny than XXXX. Quarter of Second capital ATC farm related investment, more at current one wind

in expense Finally, we improvement contributed segments. quarter-over-quarter. devoted other from to partially our We by $X.XX in in fund energy $X.XX second recognize development. saw a improved and trust of quarter Lower $X.XX These gain a offset interest corporate the infrastructure clean on technology taxes the investment $X.XX summary, and positive performance reduction were $X.XX $X.XX. variances In and XXXX our others. and in performance we of rabbi by a

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

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

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

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

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

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

Our balances, regulated the in gas higher $X.X collection the in working continue our markets, in investment this Recall contributed for months XXXX, the the country to working central receivable X acquisitions business. improve X than increase able this Total part major $XX we capital was were despite capital working capital first of second the a in with XXXX. as our quarter. normal increase and to by our were This months more seeing that of six infrastructure offset energy cash expect capital. the increase utility February, to to requirements. position focus in our of reflects With of months with the practices natural higher XXXX coupled costs, capital earnings We billion throughout the compared of in expenditures working at million year. throughout remainder the first asset first accounts improve underway and

opportunities On interest front, find costs. the lower continue to our we financing to

third the quarter. provide reducing Gale, in these million to fact, I closing, the back refinanced for June, average debt Electric, extending In X.X% over to $XXX like the to of guidance our we and maturity Wisconsin XXXX. notes of coupon In turn I'd at by it before

We and weather a major for of of our This quarter. account last assumes per normal third that expecting the July the rest recovery takes fuel associated also are into costs quarter. range accounts and the $X.XX for share of weather system the This timing impacted $X.XX to our storms the week. with for

$X.XX year. a XXXX better we $X.XX top per turn year. our an it Gale. end of Earnings reminder, last a of share $X.XX assumes share Gale an And than the normal with for are we With This earned weather. of to quarter to per range earlier, includes As range. the estimated remainder normal weather I'll of that, third of expectation $X.XX guidance to raising as back in the the reaching the mentioned This

Gale Klappa

much. Xia, you thank very

bias X% strong guidance, to toward And finally, about are upper our a raising projection annual a half range. growth with that our quick dividend. to of we the year long-term reaffirming our a addition X% of of In reminder earnings

recall, by may raised our you dividend a C/XX.XX X.X% Board quarterly of in Directors share. to As the January,

We payout XX% of continue XX% to to now. earnings. range the target of We're of that ratio middle a in

So, portion on stockholders. providing up growth to per earnings our share. of continue to it Overall for on question-and-answer ready our our call. dividend growth focused line with I gentlemen, the the the now and value our be we're customers in track, open will for in ladies and Operator, we're expect

Operator

Guggenheim the moment from [Operator first Yes, Pourreza we'll sir. our for And roster. to instructions]. line comes just And of pause Shar one with compile the question Q&A Partners.

James Schaefer

for afternoon guys. Shar. James actually good It's Hey,

Sorry, Gale.

Gale Klappa

Oh you doing? how hey,

James Schaefer

questions. my taking for Thanks good. Good,

Gale Klappa

Shar? have with you what done Well,

James Schaefer

He's in in New bunker Jersey. his still

Gale Klappa

There you one. Nice go.

Okay. Great.

James Schaefer

weeks? something Illinois, in but just guys thoughts done the updated still gas, it's realize are comprehensive I for policy on guess get sounds on recently. like you any impasse heavily it prospects package first have So, on on negotiations Do the the involved. side the on you focused an hit coming I not to guys

Gale Klappa

that we both the done outpost parties or major the Illinois. distribution The and impact We'll gas discussion stands in of Well, have earned Peoples companies again, that the to in But and between public quickly one Senate parties essentially getting I thought always it I was Majority the see continue a something thing think shot long there's This is reasonably if very focus impasse no agreement the not, Governor Leader talking. think -- particularly little nuclear happens. Illinois. not, on Pass our really or as what you Illinois. plants. very Gas on North or material know, on a Gas Exelon in you on on is Shore power impact Company the

James Schaefer

Gotcha. Thanks.

Gale Klappa

Thanks.

James Schaefer

Wisconsin just future interesting to a A non-power Have guys the plan. template I point? could little WPL's recent balance on chance had to retiring Edgewater that, the their the a this the dig at you be the and settlement into closer Columbia for think of home proposal and on that fleet, of side. which an it's for gotten recovery [Indiscernible]

Gale Klappa

forward? It's It an interesting we're for going be Well, it template and could of the certainly could very approach. that aware took, Alliant a approach be.

taking we'll look certainly, at. it's balanced think something And I a be approach. a

to As Units we're retire our XXXX the you X, Oak X, to those. site. at and retire older vintage planning know, units X. retirements XXXX. the announced and planning We've we're units, X, in XXXXs Creek

make have involved. time very settlement and But that a the We continue yes, sense going really approach plenty could a of interesting parties was one work it of with to forward. a to to all lot

James Schaefer

had. Thanks, congrats and championship. and Got it. That's I all results the on the

Gale Klappa

you. Thank behave, much. very Tell to it Appreciate okay? Shar

James Schaefer

do. Will

Operator

Bank comes of And the next line with Dumoulin your from Julien Smith of question America.

Gale Klappa

Julien. Greetings

Julien Smith

you? are how hey, Hey,

Gale Klappa

How good. about you? We're

Julien Smith

here. Thank Congrats be win you. must on It the with exciting. well. Congrats -- quite recent

Gale Klappa

it's for the been for been city, It's great the great great even -- region. terrific. Yeah,

for Game proposed team. you. happy during And the X; you that So that is understand I true? happy for

Julien Smith

of right? been other the it's So the here. No. you. exciting. that -- news off can Maybe Thank Recently, heading, the I confirm exciting got that they

your the this and about you I you if guys the back you the can O&M a like on year? a ensure push guys, nature stand about 'XX thinking this linear relatively year-to-date I where you You relative are year? guidance, in $X.XX. little of look back the guidance as of know ahead where comment gear. you But pull conservative half think to to on How you're half trajectory at are O&M you bit here,

Gale Klappa

Sure.

-- line in projects number Wisconsin mentioned, the which And extraordinary Sean tornadoes X range Western X We Chuck as suburbs Quarter. believe have numerous for repair of Third the costs in the have Northern be also, carry from Milwaukee for that really a in very out between down last the you are took half day-to-day again, maintenance will I a serious an us the year. back still will we customers O&M. we XXX,XXX there gave of lined some our and projects We out had to storms certainly influenced But maintenance help have Madison. some some July, for for reasonably up year. the X for O&M for million, good for over planned guidance had that XXXX. of will Fourth But extraordinary of that and we that Quarter very, that the have just we costs opportunity million week

Julien Smith

Right. bit. price, perhaps Excellent. a the little just statement that And

You but X% expectation leave to it previous X%? to still your is down, be

Gale Klappa

still X-month a long-term, that looking will. the you not doesn't still mean some our But of That we May a It down. be and will as we certainly a down believe place. of be goal could it extraordinary trajectory in that again, we previous at is not It's if just is. other the X%, costs period and matter expectation, X% look was to hit. storm is at but work, It's

Julien Smith

pretty And it. Excellent. about obviously, sales. [Indiscernible] here, Got you you're excited connected

below curious would But bit how trends et thinking retail Can in here of in some obviously leading I even? normalized be you pretty comment you sets you what 'XX cetera, it. on X% sales mean, on the about a the up how larger sales coming the if characterize indicators might about these about preliminarily 'XX basis you're nicely projects, little and I'd do. of Some coming 'XX think in. of

Gale Klappa

impact you XXXX say Many the But of see uptick now I XXXX the are necessarily landscape, from big a the very XXXX, projects, to, customer of and larger But the has although where the some to been the Wisconsin, me very again, be business see uptick back projects gas wouldn't development been recovery continue go commercial we of that at tailwind we of look will strong those expect the economic We some. economic projects, in it's under would Scott Scott, big the of large construction. as side more we've really, encouraging things in the we'll referring to there larger I beyond, big one think development in projects. on the which demand. economic to the and detailed And growth. is industrial from and strong. natural

Scott Lauber

side but the good pandemic happy of commercial small year, First the gas industrial the Yeah, very We're the this really growth, that's now. on electric in correct, on remember, and well too, both electric Wisconsin side was services compared the to But exactly quarter. And it and we're customer right a on the hoping gas Minnesota last on Gale. the But gas new of also, are lot where specifically seeing growth. up sales side. good and so did Quarter Michigan

Gale Klappa

companies have at planning were till we you a to think in now others to to October the spread. on September. pushed how the do significant and have the office, continues earliest. see if return Many off will, that I We variant

for could we Scott short-term our demand electricity. about projections both overall, impact, very, have very positive for but gas that and some as said, growth So feel

Julien Smith

Take see alright thank Excellent, soon. very much. care, you you well

Gale Klappa

you, Julien. too. You Thank

Operator

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

Gale Klappa

Hey, today? Durgesh. are you How

Durgesh Chopra

quarter. Hey, Gale. great front stops both Congrats on a and

Just two questions me. from

for Xia. First,

on the gain what On on could elaborate Clean is? Tristan Energy you Fund, that

Xia Liu

Sure.

I space companies happy small gains. the in a $XX development million, charging invest very is -- assigned the have infrastructure balance see think that renewable only and in very to energy We but in we're space. stage small It's the investment

Durgesh Chopra

it. Got

Okay. didn't Thanks. you that realize actually I investment. have

Okay.

rate quickly, Gale, just rate maybe case delay if sort missed to I but update were this, any the of then petition and Wisconsin the proceeding? sorry -- request. Just on brought You a

yet, heard commission back You from right? haven't the

Gale Klappa

memo the Yes, -- we memo will on the Commission on weeks. any within publicly Commission have -- and staff now like a it them vote the subject, matter usually on matter publication seen post -- this, the of of staff

stay-out the So, I overall the within of a committee expect again, just fine. would weeks, will have we a proposal. memo just the matter was And staff on vote --

Durgesh Chopra

execution Excellent. and many Thanks. this again Congrats years for again on here back-to-back quarter.

Gale Klappa

it. Durgesh. you, Appreciate Thank

Operator

And Lapides question Michael from line comes next with Goldman your of the Sachs.

Michael Lapides

your look cash that, Do actually away Milwaukee and X actually at it and you happens? investors with If When at year Hey, become and man a question for Company. you an if that guys. had pull outlook? capital know X, or is Greetings I think this you year to on I flow the the rooting X-year, you're even This for budget, maybe your X and then a good make Michael. providing off years X and a buckets City from that year my that. X-year eternity away. and are NBA that them. years through That's Year what title. generating are down Grizzlies X. months be you I wagering than could And outlined what stage, last X if the not, But X the couple earlier you. -- know year November means Gale, and X are from free X sometime higher for bit only happens, -- a is what X of things I your congratulations, of wish Got to update would year a an X, like

Gale Klappa

Michael. question, Great

of like the in spaces our you is lot plan, X we off all, always at just undefined line lot And X-year and capital It historically white capital of plan. bit. tail a we have kind First our of items don't of to and is, look a X-year roll. X if years for reason a how that

that for the and all know I of X. bit to have So, first tend years been when stuff X-year But for actually particularly always upon our capital the first build X cetera. think we've you, a we is to going years, here be compared give for X historically, going downturn you've actually to is out proposed seen the et we plan X a I laid years years approval, to

So, to directly more I do capital which answer the update when not call we'll Beth, our And of early question, on next believe your November, in I we believe? X-year do analyst plan, our much conference. details then, finance with

environmental the lofty at to progress but years too stock definitely will upgrades, right up. connections, across X to distribution add ESG environmental those storage, buckets battery board, we in and Scott, continue particular to to because buckets Those front our opportunity be clearly, might the Well, significant an continuing You're kind anything I strong to of not you be and in see? customer kind us. -- X wouldn't in additional not to It'll going to now. goals, in I would a investment tailwind aggressive that? happen. you X. emphasis know, see be filled Again, happen looking years that what reach stunned we to X of new execute have Not if plan, decline as now continue what going invest very saw on It's And going of just in any going there's we as much you put is and it. of name renewables be those goals. a to

Scott Lauber

as I pilot tendency seeing just the think bit Gale. you're electric to always little his the mentioned lower prepared And start on we a be a right, Kevin years. exactly those other of we're remarks, vehicle We've had have. in

interest some we we have order even then yet. got don't So, already the that, and in

So, the I the on distribution opportunities side. of ahead lot there's think a generation and

Michael Lapides

Gale, a business the side then input Got terms about what -- to equipment regulated of et distribution And and in seeing made it. -- cost like mains, -- the you all other gas like even comment one for things the are CapEx things copper, of larger or in And your inflation. cost a on side cetera? that What equipment; of projections? commodity business does you follow-up.

Gale Klappa

was example, present time X, Well, phrased not copper, -- at a ago and -- significant I haven't impact it, X, for much really not example. ton no at really since, of moved frankly the think so it elevated We're looked -- X as seeing far. haven't -- months for you a we

is segment of part and that that fact we long have infrastructure very that positive way being deal to a of we with prices constructive our a and the of because Now, able very with price. the procure set developers have history

all. we really impact So, haven't seen infrastructure significant side, on the any at

On the regulated taken side, of again, a that already underway, lot procurement place. has the projects we have

the up at other some terms not per stage BTU over of seen So million this inflationary We is much Where have impact. game in just inflationary actually we day. were natural impact the of in the $X gas commodity prices.

in things anybody's the guess of a natural but But Milton numbers the how been, kind always has Friedman at will we're And for I it's glut future, the signs. one of are. first I natural with a -- seeing winter, be inflation inflation my the the country, tend disappearing of going to terms it's the what see that monetary said upcoming prices, look think, think to there the gas phenomenon. certainly of for in sticky then elevated bit worth. gas that we're winter and Remember So, opinion, always is, were, I across some that's

little gives level. normal essentially That growth off of up, money taper Perhaps And the a on at a year bit. little it's up the begun we see to bit. for while still supply, off numbers. and think the look at the that One if its supply. next It's but you materially, look the it's inflation elevated of more we growth to is that I of already some it's to a things taper money the already some me way hope we'll probably begun

Michael Lapides

Jayhawk? Got in-service remarks, it. you Thunderhead you and mentioned, just me the And this modeling in and one. last Can hey, -- dates the a is prepared question, remind one for

Gale Klappa

Scott? Yup.

Scott Lauber

going Thunderhead next the Jayhawk half is the probably year. to Yes. And should quarter. in first be of then first be in

Michael Lapides

Got it.

those -- those in-service of original a of both little moved So, from both dates?

Gale Klappa

on done. been construction Well, into called American through that I a month Jayhawk, with or removed deal. It's American with the the no big the Thunderhead post problem Thunderhead a something endangered burying of terms now understand the is matter issue beetle. completing forward we about all substation the in species has from Actually, maybe a as it which construction two, burying of has moving of ran that the now worked list. been beetle,

Michael Lapides

Got you, it. guys. Thank Much appreciated.

Gale Klappa

Right.

your Michael. You’re Thank you questions. welcome, for

Operator

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

Gale Klappa

are How today? Jeremy. Hello, you

Jeremy Tonet

having Good me. for afternoon. Thanks

Gale Klappa

been being here. It's nice

Now, ahead. go right

Jeremy Tonet

just -- that here, about with do Is wind a I in acceleration announcement there are timing limiting market DC investments way, backdrop discussions there's to just here? the base infrastructure see you tax any now half or the want identified. seems touch planned considerations of here? broader amid infrastructure the on how continued it And

Gale Klappa

position some the would of acceleration Well, production matter to investments. infrastructure timing tax match nothing size over though and the segment the the you period in our that credits. the truth the stand ability investments have and of our the modest There's X-year additional way will, of is, the if tax we monetize of timed to

You're with right, projects. of schedule ahead very high-quality we are

diminution still returns. projects, at know and the you with there's We and kind of not delays. But have that lot very any discussion -- don't industry that excuse robust. working we're I pipeline look and seeing now in I our potential say, -- more projects any Going successful segment. projects significant lower potential me about of forward, of would records. we're is infrastructure right been of interested for see it track in long backlogs, And a returns, our we're any developers Or, importantly, if the diminution around

In fact, Sky that had. return both we -- projects and Scott one very the the mentioned, best be I, of to Sapphire we've ever that potential has

feel segment, to me responds positive very and at, question. highest So our again, for pipeline. with us -- quality very, projects and great for I excuse the we for we're your that hope the about looking -- developers,

Jeremy Tonet

market how if elevated and coal gears that you and potential decide the Thank to generation. you you gas. That very backdrop natural here, be wondering this here, on go Maybe needs future that. repower a bit with direction? update asset And attention coal could was shifting when you this reliability helpful. And just local power, the to about for the think you near-term given potentially the us how with in on balance if maybe could just

Gale Klappa

his Well, on great you this to Scott give question. view I'm to well. ask as going

we've talked Let that core already, the X there's little me our system. the coal-fired two system with already after all very really, in Essentially, announced taken our things. retirements units, capacity left retirement on about just place we If quick that has of say XXXX.

The very And Middle of were should You Oak world. new -- most the me situated in in units, thermal the And at let and plants grid Wisconsin. of at from ideally the Western separate explain looking of units the the others They in just to very Those Midwest. what transmission fuel units that. important remind those need is are I about Creek to among our part that those and power United future Oak Creek are the new the efficient to the the in units are States, the on we reliability asked site. not new source. units part do, value everybody efficient

So, in with and first we the those XXXX. built online the XXXX, units built We those second some came units unit flexibility. remember in

gas. converted there at possible, units is natural natural the it possible several is is possible gas fact, to be gas technically In and on And it to coal the for on site. away point. natural and co-fire we've to It from some the times, yes, done units coal --

an add In Scott, are at like cost you would of and what a a so. standpoint the standpoint, we engineering feasibility doing both to to from taking fact, look that?

Scott Lauber

really, And there at day We is have at the right. have potential the that's No, We clean for that's the and reliability keep that make XX%, XX% to of about look when about of system? Gale, the tail. really when needed can XXXX, energy think at we the And exactly to affordability a look exact and from right really needed. on how sure energy that in of system, when do reliability capacity you and still we potential the future. peak brought up in that and reliability, the we as in the energy gives as X% coal talk it we look you about convergence

Gale Klappa

not Creek XXXX point, And one of carbon of to Oak the for XX% does new in conversion other our natural from coal goal any reductions assume units away gas.

still So at Oak continuing new Creek that COX effective the units can in site we just even place. with be to coal-fired gives you very reduce a how sense in efficient of

Jeremy Tonet

Got it.

optionality like forward going there. Sounds nice

Gale Klappa

I it. And describe great that's way a think to

a region. for lot of have again the key very a to We asset with options reliability

Jeremy Tonet

just the Wisconsin one on Great, could I it for Thanks one if here. sneak rate there. in case And process thanks. last update the

focused any you filing regulatory year? of next Just in items wondering, are locally other advance on

Gale Klappa

calm. in pretty as case to one goes. a order I settlement is. other Kevin for Illinois, than steady Michigan mean, it's North pretty described just it Utilities. she of at the it's agreed of smallest the a course normal Shore really Companies But ALJ And proposed in Gas, rate Michigan No, Gas and filings, our that,

Scott Lauber

Yeah. the Commission solar that. the we projects on look implementing and can so on The continue at get and we battery have will solar start those projects approval to

Gale Klappa

the good wind Yeah, storage the over X,XXX made and will, filings well. multiple move you That's solar course battery to megawatts at half with this if that's of going a first year, of and point. of several Wisconsin. for forward regulated We've

Jeremy Tonet

leave it Great. Thank you. there. I'll Kindly,

Gale Klappa

you, Thank Jeremy.

Operator

the KeyBanc Sophie from line next with comes of question your Capital And Market. Karp

Gale Klappa

Sophie. Greetings,

Unidentified Analyst

Thanks actually Hi, this signed Sophie. question, for is my for taking details though.

Gale Klappa

Sure.

Unidentified Analyst

units on Columbia part? unregulated and the higher, the you tell of Creek regulated if can part plan Oak that to they're utility the About reach us you

Gale Klappa

are those asset our all -- in regulated of base part Wisconsin. that No,

Unidentified Analyst

it which retire decide of retiring seek And for to into I'm sense a consideration make get does you future, you to difference in does it just as retirement. -- units one look go is a first? more trying you the factors as what

Gale Klappa

retire we less at and that are older Well, answer, as that's is, simple foremost efficient. look that a capacity, to additional first look units we and very really

X the from take would efficiency, not of all by dollars those keep really the at to as or would standpoint of investment That's units next Oak not same joint keep X, And to units would and be units X, driven those Alliant age X. So, the correct? They've then, units the the a it's makes spend part to at system course, older We owner Creek it alive. what a kind with whether that been complicated efficiency, those I X, retired we're for look might Wisconsin on age, Columbia retail Creek the older be Scott, X sense our capital and timeframe, units. alive. rate a retire mentioned, any the our of since formula. And It's site. capital Oak and Units and XXXXs. base in it

Scott Lauber

'XX and Correct, 'XX.

Unidentified Analyst

Okay. Great. so much. Thanks

Gale Klappa

welcome. You're

Operator

question of of the from Scotia next line your bank. And Weisel comes Andrew

Gale Klappa

Hello, Andrew.

Andrew Weisel:

Hi, good afternoon.

Gale Klappa

afternoon. Good

Andrew Weisel:

of been like weather events. seems others so many It you've a extreme facing growing number

response? and You've your hasn't devastating as as see well-positioned react O&M you as change fortunate quickly you and evaluate opportunity storm to been need it been But do far anything to terms of or in preparation outages. programs, so an a

Gale Klappa

reliable consecutive We very I'm in to been we invest fact answer in Midwest the our the And of reliability. very utility for has Well, proud most is, years XX that Energies running. the the named continue of short folks, proud

There's to with we Northern have continue Andrew, going in the weather again, I'm a positive terms have the say some we've replacement investment as would but know We though, only we're we we upgrades maintain more of Not done seeing have there's we of, of standpoint reliability. proactive just not reliability. past. a than a failure transformers events positive opportunities sure from rate, just lines lot Wisconsin, superior on to and postage historic ensure where program in that I investment XX. undergrounding and extraordinary -- in

milder the Wisconsin couple in years, been in season fact, previous the last of years. than in some has tornado In

or We the seeing the in you? I have you both long three think of But if events. we've polar weather don't XX around in course change and last a the been years, time look over do a or dramatic seen candidly, events, XX two vortex -- back Midwest. we're Scott Wisconsin

Scott Lauber

seeing We I more think have the the you're just didn't we -- were extreme strain was across or just vortex just polar No. vortex; on I years fancy cold. country. But the having ago. the name across system it enterprise polar

As getting Texas like time -- and lot too. media -- saw I a we a more think in are variety

Gale Klappa

we'll to gas this the do. And that's Reliability as country. of availability the of there's the around and for And what And of have forget can't difference. superior something Scott were you is northern a the or that fuel the have on dispatchability and maintain truly is, to point, line the in a who have Millions around Wisconsin, part it's a saved how by U.S. lesson when winter to think believe windshield to mix really are of is we're as a in, lesson been important it's us seeing for invest -XX all I when natural and from of without here lives cognizant diversity of make what past when it the industry an in a reliability. continue reliability bedrock Company. Northern very we of We're while 's we that reliability lives

Andrew Weisel:

Thank it. you, Got everyone.

Gale Klappa

Weisel. You are welcome,

Operator

final Vedula with Hudson question comes Bay of your And Murti from Capital. line the

Gale Klappa

talk time roll, to. and Vedula. Long Rock no

Vedula Murti

me? hear you can Sorry,

Gale Klappa

doing, We can Vedula? hear are How you. you

Vedula Murti

Supposing you. your Thank for one a little well. the doing on I'm lesson bit touched quarter.

talk ability there people. in buy but us for to of -- sure manage but have not it from other technology periods guess and And during [Indiscernible] the to have kind it with which you a how seeing to the also I Just homes, I'm fix and rate to success to more be ton in people prices And we would then. just [Indiscernible] their [Indiscernible] able price more variability market [Indiscernible] what people in the of in given reading direction Canada need what about preserve you are is call to -- been how we've one begins have capacity about on vehicle [Indiscernible] these parties [Indiscernible] at

Gale Klappa

I'm sorry. Vedula, very

of your think You broke was understood I'm Beth tell -- you the question. I me can was sure up closer times. that not to a several Beth, what little Vedula asking? you bit gist

M. Beth Straka

EVs. EVs the a it of to only I related growth and of caught portion

Gale Klappa

it quite to certainly you can you broke we couldn't apologize. Well, and right. if you. and -- follow Vedula All Again, again. few Okay. times I want a up try We

Vedula Murti

where with well having [Indiscernible] I'm problems as I going phone -- was well. Oh, my

Gale Klappa

you of the the for about opportunity level, we to know, can Well, of very both EVs. ownership Again, policy the as federal a we're be, in I There try EVs. to growth at and encourage will us. another initiatives, penetration level pleased. Okay. investment a Wisconsin talk I see And here at of think, as bit number customer but also state that the

customers, As nonprofit us to Kevin of allow mentioned, customers, we program government will pilot just including had for cetera, et charging offer cost-effective et entities, some range options cetera. a including approved a that

order we're written beginning parties, Vedula, and that yet, our talks on already electric terms and interested of And this we of with a hope, So, goes, it vehicles. trying we'll even a again, mentioned, adoption folks charging number question. don't of substantive I EV answers we the your in have have we're encourage program. already, how pilot to final on see as Scott but

Vedula Murti

Thank go I'll you. right. All offline.

Gale Klappa

much this you for waterfront taking our right. Thank part. Terrific. Thank conference That Vedula. for you covers Okay. for All think the I call so concludes afternoon. Well, folks. today, that

feel contact And Thank more she have you, at Take XXX-XXX-XXXX. you free to can everybody. be questions, Beth reached care. If Straka.

Operator

concludes And conference this call. you Thank participation. for today's your

You may now disconnect.

WEC Energy (WEC) 3 Aug 212021 Q2 Earnings call transcript