WEC - Earnings call transcript Q3 2021

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Operator

Good afternoon and welcome to WEC Energy Group's Conference Call for Third 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 begins, I'll 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. 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 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 available will after the X replay this A approximately of call. hours made be conclusion to And pleasure Klappa, Chairman introduce it now my of Executive Gale is WEC Group. Energy

Gale Klappa

good for joining you afternoon, us Thank everyone. heartland, Americas From today.

for Third Quarter XXXX. review we our results As of

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

the decided have retiring Kevin in assume until President and in the that February continue role Kevin water Scott annual agreed serving lakes. Chairman meeting in our announcement sure succession Straka, will I'm as Communications planning. our Officer X. to devote long-term our to stockholders skiing President next Fletcher, our Corporate Chief Executive on Executive Chief and delighted Relations. XXXX. of XXXX. favorite be Beth Lauber, finally, We step his instrumental last in our And barefoot I've on his years. new Chief and of you have best, Scott has he week takes our forward CEO, saw that grandchildren with as has course, Kevin wish to progress our role. Operating over Senior look Scott, many He'll and Liu of Kevin Investor I shaping been Scott time We and the all working hand-in-hand We're Board more Vice to the President Officer, of Xia and his and on taken Directors Financial

a XXXX this morning, earnings news you as of reported we release Now, third from our quarter share. $X.XX saw

economic normal our expected, warmer than recovery and focus efficiency. better driven significantly our than weather, were operating results on in Our region by continued

as this new in of you will the we without ESG capital reliability and X our just discussed, progress Balance over plan, us remains the equity. our a fund XXXX. through that details executable our a XXXX issuing on decarbonization flows moment, investments will we've allows update plan to highly plan strong. And In period Our Sheet, cash a year cover

our for generation to As the industry baseline. reduction emissions. we're we've to Across reducing our most from well an achieving we're of both carbon goals by XXXX aggressive way targeting a in a XX% our reported by some and fleet, XXXX reduction XX% XXXX, you, on

Importantly, these reach we goals any roadmap technology. have to advances major without in a

end account expect also coal use to The So of the X% we will believe expect today, in have level end year of The Here's of supply XXXX, completely? eliminate of XXXX. question position of that we to energy answer. the mean next coal we a be we can decline you as by the an only is these a the about of ago. been coal-fired XXXX. we're announcing will exit does units coal customers. our will We were of we the that when completed plan will our this and what coal use to of logical our Oak at site? future power the asking, number for By less to than power immaterial by continue be the a units recall, modern you As for part were Creek our source decade

grid. decade. strategically they performance all the among And Midwestern to plants the the country, X% While some reliability on rank located fleet come. our will the discussed, past modern we've top over are units most many, in the as power part coal-fired strategically Creek for as our at of heat future they're units key a of the remain Oak to efficient in transmission of rate These years many support

natural flexibility the can for in at gas Creek site. fuel at the units co-firing with the on new we Oak tested of future plan mind. Fortunately, We've

So coal subject gas. refinements of to will permit, receipt equipment. a And able next the years of include, by XX% example, that up incremental to fuel operating This then to making allow over environmental completely from we plan to over the X blend on of new would away make an plant investments we will in time, for course. be burners. transition And natural

We will pipeline the into need capacity site. additional reaching

-carbonizing So that units a take capital economy. we Creek. we'll the a long see newer the continue future now Oak a to very for plan at let's bright and look at shape And de

expect For $XX.X invest billion. the we period XXXX to through XXXX,

remains on progress or plan. An plan our of This billion history. growth. plan X-year nearly is our $X.X XX% largest focus above efficiency, ESG Our increase on previous sustainability, the and capital

These need We plan more includes We're superior of be for expect customers. renewable to of growth will gas our renewables Will a next support hardening new business electric dedicating of to solar, years X% over that for gas investments this a reliability assets so maintain utilities plan And and to our earnings capital plan. brand increasing in any X gas systems, natural distribution well. networks issue can previous delivery battery to development from without in equity. storage. of investment for the megawatts we wind, as to also our X% carbon-free distribution our goals the level our our and our this capacity support new in XXXX regulated year XXXX megawatts in the compound nearly

turn to as by As an To that results premium X projects methane a sales the our and a they're our growth more segment. all Scott, highly plan, quarter, it is low-risk have growth really XXXX. targeting I for that, yours. a accelerating on details and are believe emissions the are as clean driving transition well and over for the update reminder, to infrastructure net on our With Scott the all executable, energy we future. we are what add up, call I'll

Scott Lauber

Thank you, Gale.

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

our territory. We rebound see to economic service in continue

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

of our our an XXXX X the calls expect plan time under to development, at billion are investment $X.X infrastructure segment, XXXX. to capital and additional frame. Considering $X.X the billion invest we for that new now Turning between projects that currently

billion As segment. a are projects, wind our quick Announced in approximately reminder, we represents off-takers. have infrastructure long-term investments. $X.X of or all This X operation with

early Wind plan. have With been it next As These updated Kevin turn projected our on service service the in half to into I is capital in Farm first in over previously an our Utility projected factored our to is Jayhawk timelines Operations. by that, investment Thunderhead year, go Wind of update will discussed, and to our go XXXX. for

Kevin Fletcher

Thank you, Scott.

from here First I'll completion. is Solar X some to weeks pleased away our developments cover just I'm that report in project Wisconsin. Hollow Badger

XXX own we that project Southwest megawatts recall You'll Wisconsin. in of this

are civil For of the the Hollow work performing X, and grading. now next phase project, we Badger

for on Department on end Commerce. supply, matters target before we the of project of completing will which date clarity Our module uncertain That is is await as that the XXXX. depend

we facilities customer over Energy's for decision Commission reliability late time. Now, projected updates, facilities the shortly enter Pending to winters. state. natural on the This Wisconsin They in service investment of WEC gas enhanced to part the from save two cold expect savings XXXX. plans a southeastern we Wisconsin regulatory proposed our storage few greatly would customers build in liquefied our the approximately and to during are $XXX million expect approval, 's a

smaller reviews and X.XX% an North unanimously Gas. for of a Commission at updates Shore rate have the of of our Commerce Illinois on case The also increase the equity rate authorizes our order order We XX.XX%. ROE rate The final utilities. approved an at of ratio X including X.X%,

The went settlement increase rates an our authorizes effect ROE into XXth. Utilities. rate Service the for settlement of a XX.X%. Michigan Public New on and And approved a September including Commission ratio Gas X.XX% Michigan equity of rate an X.XX%, of case the in unanimously

January rates be effective New Xst. will the

we the we are winter cases pending at rate time. other to forward report pleased that no ahead, have look season I'm to heating And We ready. as this

our have with We it place, are and I'll that, gas targeted gas And contracts our inventories to levels. over our turn in Xia. at

Xia Liu

Thanks, Kevin.

quality earnings. and We continue consistent to deliver

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

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

Starting execution Our The our includes regulated plan, and on I'll comparison the to a significant the $X.XX earnings our XXXX. on utility walk operations, efficiency. region. morning, earnings our the Economic Page continued quarter on third in placed of through with XX. by results grew utilities recovery focus quarter our drivers. we from operating of capital benefited third of website our compared strong our packet this

related $X.XX earnings. of and both $X.XX. stronger XXXX. Also, drove in of worth O&M a quarters quarter-over-quarter prices. relief utility higher weather-normalized and factors third increased operations. from compared and investment recovery $X.XX we day-to-day additional $X.XX lower the we increase fuel economic of pandemic $X.XX by normal First, XXXX to noting added rate Amortization the that to and partially These gas was continued favorable compared whether costs estimate Depreciation were $X.XX and and XXXX in offset from Overall, capital higher expense of sales natural third quarter to the $X.XX contributed favorable added It's

our third Transmission investment in acquisitions. of capital to was to quarter production driven compared third investment. quarter increased $X.XX farm segment improved the driven Moving in on infrastructure the by XXXX. to of third continued at Company. $X.XX by of This XXXX, quarter to wind credit Earnings tax Earnings related American the compared energy XXXX our

share. primarily the on a This expense. increase Finally, In we by driven by saw and $X.XX a XXXX interest of lower we $X.XX other improvement performance quarter in corporate was our third summary, segment. improved

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

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

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

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

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

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

cash more the than Our increase the of working in requirements. in XXXX, earnings X months capital offset higher first

of X all made great position service working in $XXX in in billion X underway for our practices $X.X capital XXXX. Asset and first a business. and compared collection normal first investment as utilities regulated the our territories, third with months increase million with improving This our expenditures expected, XXXX, quarter. As the Acquisitions the strides in we infrastructure Capital Total were focus months energy reflects of of our

as the billion Gale details excited of over provide forward, infrastructure. plan highlight of plans X the breakdown next more annual about This X% $XX.X we're earlier, package invest XX outlined in the earnings which Looking will Pages XX supports key of to here. our our asset-base. I and ESG in growth plan, progress the years

billion dedicated to transition, is to XX% billion capital renewable sustainability, our investments and in continue nearly and fleet's grid energy make reliability. we of As $X.X $X.X plan including in our

$X.X to billion strong customer growth. support our dedicated we Additionally,

remainder In top we're also I continued an development long-term back infrastructure ahead. of to generate economic see further background range our I'd efficiency. of We're modernization Even time per billion our This and to With operating a the raising strong $X.X This runway our long growth, the in before focus investment X and the our the next turn provide XXXX years. share of our again like to of raising of a plan invest on it assumes to sustainability, of normal efficiency, end the to We second beyond reaching and the technology Gail, our expectation we earnings is for year. a with for weather range. $X.XX guidance guidance. $X.XX to guidance. closing,

share. turn back recall, I guidance $X.XX that, Gale. If per to you to was will our will original it $X.XX With

Gale Klappa

And our stands track a Xia, on also light strong a finally, growth per again, thank range year. We're We're for in now our very X% you our about to of solid tightening dividend. $X.XX of reminder quick much. our performance, long-term $X.XX projection year, earnings share. of range to per a guidance X% at to

As in our next December. for assess usual, our I expect our early board meeting dividend at will plans scheduled year

we're Earnings And the stockholders. payout delivering and our to We're Share. and line ratio to that to of will right growth on target Q&A Operator, to for so for now value earnings. per range be providing in ready our our open XX% I it track, Overall, of continue of the call. up continue in now Dividend on of XX% customers our the expect the focus a We in growth we're with portion middle

Operator

Thank you.

Now we question-and-answer Instructions]. take conducted your will questions. will be [Operator session The electronically.

function off using reach you're to turn your mute If allow your to a our button signal speakerphone, equipment. mute --

with comes Partners. Your as Guggenheim [Operator take permits. questions will Shar We Pourreza the first question Instructions] many of as time from line

Shar Pourreza

guys. Hey

Gale Klappa

roll, Rock you How and are Shar. doing?

Shar Pourreza

it. Not too Not Appreciate Gale. bad. too bad,

the be. the Creek load when unpacked and I think essentially around those to kind somewhat under units of that's the capital would know of terms service with of obviously expect of questions of convert the do pretty Power to your from material. have all I contracts the also around Oak cost unit -agnostic, fully because to what tech heat units comments speakers couple coal gas Thanks. capacity contracts or a ramifications but Any the and just rate any higher base units Gale, to rate would are the estimate them heat So run Future time? The you shifting I

Gale Klappa

details ask Shar. give to And to as going question, well. you Great I'm Scott some

Port transition which though. at as They're them highly Oak expect going new are I we through to to speakers. thing units combined one now Creek efficient like simply not between the as and say move our XXXX. would me the Washington much expect not Let run cycle would run units, I units. probably more

that. the going reliability. they're So they very conclusion No wouldn't for run much of about will be as I needed make to speakers, question

I capital, capital though give you a you Scott lot I that that and after in the lot the can mentioned terms In the a plant, incremental details. of have [Indiscernible] of Investments and more this for have do are work of economic of customers. do to long analysis, to and after convinced the lot still analysis, is a lot Scott. work we an we for run. thing of a But that tell

Scott Lauber

be little Sure, very Gale. able -- we to million to million, retro XXXX And more look in flush to out. that we and some at that to gas first really modest you co-blending investment, get and look plant come then a view, approximately coal. $XX XX%, In in the converting analysis as out is farther step blend get that in looking here but at to that this look that timeframe, a $XXX at a that XXXX it with be at to continue would we're as to as this completely, approximately early timeframe, run

Shar Pourreza

spend maybe driven as you of Capital So of broader gas electric around Is just going about are plans especially is XX. and the we're $X in this more a shift Gale material. in energy spend, you're Thank it's by infrastructure and $X.X Perfect. then thinking highlighted that. as factor, -- obviously electric, you your -- sustainable $XXX. gas really down and kind and the for It's right? roll-forward, billion the forward, looking timing up focus at strategic the increase growth billion just plan And just the on expense is the or beyond about infrastructure

Gale Klappa

great question a Shar. Again,

need our in clearly just me where always say benefit customer a Let or with is is to We and need. this. assets start customer there regulated invest a obviously, preference,

our you're at again, X-year the capital X at this are look and things plan, we this at correct. billion. the largest mentioned prior as but you X-year right, history we material, plan $XX.X The compared plan and as increases So in to look plan,

of amount in First will a retire plants frame. be we all, as time significant reliability renewables older, we adding less of to coal-fired maintain this efficient

first that the got with is So replace we to of some energy. have capacity carbon-free

to infrastructure. in a that where talked point need So distribution much which something increase renewable that the replace that to we've investment infrastructure. to aging have about this Kevin he's absolutely plan the an plan. compared regulated And up aging we X-year and in, there's period and We're to distribution greater a infrastructure, And is aging the we've previous then invested right, and internally renewable -- out, investment now, continues -- all coming past. is in distribution there in

Does So drivers, incremental those two versus that your X-year question? the change prior Capital are the if Capital will, to you plan. in of X-year this plan the respond

Shar Pourreza

project costs, something helpful, anything profile spending it super just then that and seeing does, On on input that's And is are does of lastly is roll-forward, to function you a limited opportunities regulated others infrastructure capital [Indiscernible] about indicating It from -- pressure business in of it any the Gale. returns the seeing segment. these contracting that or are the really just just you're newer seeing? So is pressures or flowing instead?

Gale Klappa

know, we've ago, again, as show months our projections any asked And projects. announced No. having the Sapphire question, Actually, been of before. returns the this Sky. last just few one a X we The you best of

-- Thunderhead. is sorry, plan. X-year So be potential And Thunderhead. in My X but we've billion remember, in are all the that in yet invested still at returns Project, And a Upstream. service. $X of I'm have or nature there not terms James we're the capital coming been diminution in a not Bond this of announced addition then and more Jayhawk to not terms in got Upstream pipeline. to than seeing that, robust of

to that very, would of very returns expect active kind So we're we still the positive and see. seeing

Shar Pourreza

Thank and go phase Scott and Kevin two, for that congrats on and Fantastic. anywhere. don't you Gale,

appreciated. too still [Indiscernible] It's You're young.

Gale Klappa

much. very you Thank

Operator

Research. the from with of line Wolfe comes question next Your Fleishmann Steve

Gale Klappa

doing? Steve, are you Greetings, how

Steve Fleishmann

afternoon. Hey, Gale, everyone. Hi, good

is should of growth the to the guidance? X% just rate, based that initial assume X%, that all, off of XXXX First we the new on

Gale Klappa

Yes. Yes.

Steve Fleishmann

just wanted Okay. know. to I

Gale Klappa

short I'm it. And of of off original glad that. guidance, you numbers is some our asked. guidance just then looked the in of the is at X% to Historically, give X% The what answer to kind midpoint yes. done you then around we've this put case, and

like XXXX midpoint the So for a our is $X.XX of guidance original share.

Steve Fleishmann

Okay. the more would would work? -- under spending that done be as lease law convert modest, that of then structure or Great. units be to spending And the relatively Creek on How the know base. Oak it recoverable rate but newer would normal the that I

Gale Klappa

to Steve way it have that answer Power is, Future the investment get under the be under would kind, the approval any we the works, obviously short the of would Now, lease that for but commission terms. it be

Steve Fleishmann

Okay. And chance that the there extended have get end any period under is that could -- extend is just you or that do those said things the law if dates. to

Gale Klappa

a end new date XX-year There's units for lease. of Oak current the date the of the operation Creek from

So extend but in a initially commission lease the XX-year with period, agreement the to The the the the of Commission terms has right lease. set commission, the

be going of I all around So of your that to be probably -- dealt still be XX will that doing know X you with will -- that are all and XXXX,

Steve Fleishmann

Chairman, for think And Chairman. You're and question, a it's potential and broad you opportunities Build one. take this Bill I'd Last not you'll WEC the, the the from going Back to passing. that and be on guess chances is a still Infrastructure implications be curious then. Better and be I your

Gale Klappa

the as that something stuck such a Steve, I that Better of every version to as appears renewable credit sausage-making it have that portion will betting single every plan. Build And in or is of for It's iteration if you the strong machine you've seen, And support a think in tax but man, there single I seems know plan. Back Washington pass. were

embedding Pay And if extensions again, credits what Direct happen. were it that like call So tax there's possibility say that occur. they of strong will renewable looks I I a would man, will

segment. of clearly a our that infrastructure the growth is Pay you for the that opportunities. good good business. renewable will, enhances plan, in good our our It's for regulated Flows. Direct if of It's the customers, of growth package, It's good it's Now, if part for Cash then for

be solar, credits, think a XX-year of about to extension flexibility only also watch a talking the So I production on but not tax tax would also positive, what's is doable pay. they're credits the for step be direct key that big that and needed And key strong a here. a the at again would what would also is have look back and and

Steve Fleishmann

Great. much. Thanks so

Gale Klappa

you. You're welcome, Steve. Thank

Operator

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

Julien Smith

time. Hey, team. Congratulations. good afternoon the Thanks for

Gale Klappa

road on Julien? again, You're the

Julien Smith

perhaps it out Trying what [Indiscernible] and call to I off congratulations it it. the to can stay appreciate again that, Scott If I Kevin it pick it of And where here. on left is. up

Julien Smith

[Indiscernible], coal What on side. I the Weston You follow-up. made broader portfolio. about coal a that Can And you the comment within here? your nature just wider about but comment, of about not asset? have

Gale Klappa

Shar integral the an an that bit may give a of of which Bay. of answer the detail. Scott? Western Sure. units for who familiar, And I'm Western going part to there be and Western in flexibility terms units, Green let coal-fired then units. are and that at to little is we you looking based Wisconsin Generation not we going are Western I'm you acquired you give Public Scott units the may the optionality relatively for in But some those Company a have new Fleet, now again, we're real Service that workhorse. more

Scott Lauber

done some less X, the we some have the coal At Gale. that than and with actually natural on newer particularly Yes, also. firing Western units, gas

an So years sure have very to as next that it's that and make to we through evaluate We're critical But we here. at realize we'll state as a part it. the go want option to evaluating several the going we do reliability that be we the location. of continue

Gale Klappa

support decarbonization have do everyone reliability. sacrificing to that We is we good our one, aggressive we portfolio goals. that, do a to and to know, should a Julien, and really get environmental and change your to path here can And which question, in without have to significant a can

plan. We that we We through will do work to have our sacrifice reliability. don't not as

Julien Smith

side, infrastructure Excellent. Thank on you ask for on clarifying If just that. this. the elaborate I just can

you outlook, that driving keeping your for opportunities having this conservative that a XX% scaling it's of more this allocation best this earnings, moment had that relatively with total in achieved down. And that returns could your instance, it's and a it obviously far about you efforts. conversely, amongst budgets? is effectively the thus segment just Is Or about a bucket the back? of exceeding said this bit project, you're whether ago infrastructure call Pay and of just within, or Sapphire You exceed X-year actually be, little arguably that's scaling finding again, whether what's is being these simply sort Direct and

Gale Klappa

this. usually step years next and build we strong at X spending in what let just as And I out for back the us. we conservative Well, placeholder, a what's once We'll look me then say We're give capital really opportunities might and here it that see won't would segment see just better surprise our we've over which plan. that laid of that you. what will back

So and I to head. and question, your short think the answer nodding Xia is smiling her

the conservative today. to appropriately we're question answer think is, I being your short

Julien Smith

Excellent.

Sorry.

if what's [Indiscernible], [Indiscernible] can improvements on FFO-to-debt you in comment earlier the at quantify the clarifying Just that all?

Gale Klappa

can up broke Julien that one you you ask sorry, I'm and time. more

Julien Smith

Sorry under get. the today, -- Sheet plant how better your would the metrics credit much Balance

have there's on assumptions. sense obviously lot that, As if you of any a

Gale Klappa

Xia?

Xia Liu

Julien, look XX just we wanted to but the the at came glance first as know, out, we in implications, basis that you the we language. between languages at study at -- we're could of looking I looking improvement the so point to general XXX specific think really details the

Julien Smith

Cheers. impressive. Wow, guys. you, Thank Excellent.

Operator

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

Gale Klappa

doing today? how are Durgesh, Hello you

Durgesh Chopra

from afternoon side. and me. Scott well, Kevin to Hey, as my X and questions congratulations good Gail, for

think the plan here I First, still you equity through no to okay I'm gun -- but the XXXX in jumping now? assume

Gale Klappa

Yes. Yes, yes. and

Durgesh Chopra

Okay.

on some Just wanted that, and price maybe us that talked customer you given greatly extent us your be impact have appreciated. will the to increases sensitivity that natural clarify would help that. about, just then quickly, That's gas really peers to And great. some of can with

Gale Klappa

Sure.

portions the -- give of to gas increase places in you dollar we've suburbs Western all our details. have do what for upon additional with looks we gas and northern a residential Chicago, the higher are over opportunities. Michigan, service natural in Let in area, given prices most gas able some hedging upon where Depending of like of fill Scott to and our provider can amount natural and bill Chicago, a Wisconsin, Depending been customer, Minnesota. you it our in average and storage mitigate me

typical we So season to based and in. see we're have aggressive a And as I gas increase with seeing tell able on today each with very we'll in residential increase locked mitigate gas of what our storage, monthly pleased to about been customer for we've the what the heating and month you the with been strategies, got $XX can $XX a we're hedging pricing. the we've market contracts, sizable very always, natural how with option for Scott? that

Scott Lauber

correct, exactly Gale. that's Now

of program to don't the much hedging this time. looking are then in the got wanted be at our where $XX gas to our And lot expect storage we've fill levels that so So to or X/X that as also we inventory. programs X/X at current of about we prices, with of storage a throughout have year. And Kevin we hedging that move we $XX the storage too those and mentioned,

Durgesh Chopra

there I is XX% like total And bill? What's way? to that thinking percentage right of XX%? Am that a the

Scott Lauber

to upon depending it's Yes, XX% the XX% area. about

Durgesh Chopra

Thank you.

Gale Klappa

you, Thank Durgesh.

Operator

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

Gale Klappa

Good afternoon, Jeremy.

Jeremy Tonet

Hi, good for me here. afternoon. having And thanks

Gale Klappa

Jeremy. Nice ahead, being

Jeremy Tonet

Just on Oak I if one care the last could. Creek

of as opposed or Just the how with to date later. wanted right something earlier regard was XXXX, timeline established timeline to that the to see at

Gale Klappa

XXXX COX talked great with coal adjust continue of that backup Creek, our reliability. coal that our operating -- by will such source. be power this immaterial outside at technicians, our back supply. X% can Oak people, we've total maintaining our use be view that And our to transition all It aggressive as all our customers but our that through power by is at our I we in mentioned for fuel for you that reduction, than almost all supply we're with It a will it's experts. to source our a of confident with less It planning XXXX, to comes back comes quite the question. latest, the proper

So making current fuel really to which Creek forward that's blending maintain we step increments. we're our have. reliability it sure our at standard Oak that And got increase walk to a way go But view. we've and going the continuing that of reliability, and maintain we is in with can quickly to how about high thought

XXXX. how aggressive So we're But, confident very it between then our and the see best trajectory maintaining estimate environmental about but to is reliability. even goals and we'll we see if of the we'll make where how really goes better go. on it's progress trajectory now continued And

Jeremy Tonet

And That's Got generally what's change? message? different me the wondering has the already in growth since the to one your at directional prompted high-end growth very X% new prior to target, of change the and helpful, me range, just just what today's trended now give versus X% it. from one thanks. Just guidance on last

Gale Klappa

in And X% that okay, And run look One simple to last thing, in you time the when Capital we you at and Capital no the X-year billion model. or -- do $XX.X need plan. the you the gives the us increase growth unveiled we rate. through from it it We XX% say, needs Capital a X-year plan to refreshing to went confidence that of our billion. equity X% get? $XX.X year, for What same to last

Jeremy Tonet

there. it, Got WEC feed makes well, as I little it into operational but appreciate the suppose might sense. bit CapEx execution uplift a

Gale Klappa

say heard. this, had Well, execution just let operational the me

Jeremy Tonet

one. my And a questions, thanks have for good taking

Gale Klappa

you. thank Jeremy,

Operator

question Scotiabank. Weisel of comes the with line from next Your Andrew

Gale Klappa

Afternoon, Andrew.

Andrew Weisel

Hi, everybody.

we on you've see basis. on on flattish And year-over-year O&M. us year-to-date X% spending on give what targeting the good or question results? that a given or you been from expect to still some day-to-day statement you Can that be should XXXX at number Income is year-to-date to O&Ms. manageable call the metric. know I earnings I a Is pulled a figure First X% reduction strong

Gale Klappa

the Xia has answer for you.

Xia Liu

So what to the good looking we're very the The see. still X% year quarters over annual day the the what projection at happened reduction taking three past into we to XXXX. is to range number, day has expect a for consideration compared and the

Andrew Weisel

the then question next May Can see over is filings? Is on good cases. about a coming rate might talk that I the smaller such Okay. talked or about near-term you for for outlook. the think Wisconsin. subs next And previously a on you having placeholder, clear [Indiscernible] XXXX activity expectations months? still Great. Congrats

Gale Klappa

of Wisconsin recall for filing spring reviews our later May yes, reviews. next U.S. those Wisconsin than I plan for rate X test our state in period believe only XXXX. XXXX the that has Well, X-year forward-looking for late the rate certainly the no the Utilities for we're and or utilities That's a by that

nothing any other rate I the I in mean, to looking we as the we're reviews just for Wisconsin. So reviews seems we Utilities, know Illinois, having Scott, And be Shore Kevin for and next to described, forward plan. Gas of rate else done finished Gas Kevin just docket. Michigan and don't year North in on

Scott Lauber

this my no as for we in just have question. the other I said particular remarks, plans Gale, Thanks at time.

Andrew Weisel

It's great be team. you a position to in, thank

Gale Klappa

Thank you.

Operator

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

Gale Klappa

and Roll, Rock Michael

Michael Lapides

Hey question. guys, you for my thank taking

of Meaning bit plan? back-end more little us is you change can walk Just a the mostly the X-year and curious, through change? of is of 'XX the the the the XXXX of kind in cadence it or in in plan,

Gale Klappa

you do take to want that one? Scott,

Scott Lauber

Sure, Gale. plan, actually And throughout plan. when we the at it's look the

Gale Klappa

Yes.

Scott Lauber

look capital the you of as you stays energy compared in off. actually particular In our laid flatter year, more we out when X X, and it tapered over especially time, through transition And outlook a prior and in plan it this to projects and it's it. in look as more get years plan, these year's fact, as this kind at

in So projects. sure and in measured, generation make to And you next the very go putting get you've well. agreeing the blended the it to in and really about generation us got you think when

on laid deliberate we how it out. very it's So

Gale Klappa

to like add. you'd anything Xia,

Xia Liu

agree. I

reliability X I renewable investment would areas and the the grid fleet's and the be investments. think

So we are adding years categories. all investment X both in in

Gale Klappa

And investment clear mentioned this of investments as just to and rolled is grid kind we thing look X-year going well reliability, beyond X-year beyond that plan, Xia morning, need to very us. just one Michael, and are well the those X-year we there plan this be the going dollars of additional to the out continue period. The beyond new -- upwardly that even in trajectory modernization in is

Michael Lapides

on system. in got massive and you've Oh, no, Right. Wisconsin a the opportunity elsewhere

the that regulated this make renewable though, Wisconsin plan give I sure amount just I for can in any you of follow-up, announced. business, curious want years Just like hasn't to within already what megawatts is cadence of new been what potential

Gale Klappa

That announced. hasn't been

Michael Lapides

Yes.

Gale Klappa

Okay. Yes.

already So Wisconsin are them we but the go Scott. Commission, of ahead, number have a pending at

Scott Lauber

So there in batteries. XXX is approximately about under on megawatts the solar XXX side that hasn't been announced, approximately and another solar the then

Michael Lapides

it. Got

Scott Lauber

ready already the for have one that nothing the just that know, are additional we've wind we several you in filed wind. As of and largest farms

Gale Klappa

sites. And at much deployed existing really of can batteries the be

Michael Lapides

Got it.

about And spread so that's battery, megawatts of that plan. megawatts solar, the when of think X-years XXX you the XXX throughout of this,

Gale Klappa

Correct. Yes. Correct.

Scott Lauber

the going It's to consistent over -- you're next X-years. at look that going a see our renewables we growth

Michael Lapides

smaller, seen the that And then in thing it. in uptake CapEx in one little noticed a it's more a expected about bit really at an continual increase for while. And an is ATC. this and of we you driving Can CapEx expected ATC cycle is I a a at haven't is there just a but bit and Got whether ATC little of of that what's a or spend loss? talk beginning uptake in

Gale Klappa

uptake is maintenance Capital, reliability I be think that here. Kevin, significant at but the I think a notable Kevin, the to I is this, here comment And is him has that ask going of network. in maintenance ATC the is lot continue a really of existing maintain on things Chairman to is that driver Kevin of to the transmission course, Capital want ATC. required will that the And one just of to

Kevin Fletcher

are know, And is projects like exactly that also, there's on as you on It of a lot board. just retail it renewable is that's planned side right. our

X years that drive future next So the investment the from some perspective. into and that'll that even help of CapEx over

So, maintenance as needs drivers. from as renewables well the as new

Michael Lapides

guys. appreciated. Much Got you, Thank it.

Gale Klappa

Your welcome, Michael. Hang in there.

Operator

And our last Murti line comes of question from Vedula Bay the Hudson Capital.

Gale Klappa

Vedula? Greetings

Vedula Murti

are How you? Gale. Hello,

Gale Klappa

How good. doing? you are We're

Vedula Murti

I'm okay.

Gale Klappa

friend Matt Doug your doing? How's

Vedula Murti

Doug? Matt

Gale Klappa

mind. Never

Your at -- friend

Vedula Murti

I'm slow today.

Gale Klappa

in Is New it York? WFAN

Vedula Murti

yes. twin yes, there, brother Oh, -- my it's works

You're doing very Thank well. you.

Gale Klappa

good. Very

Vedula Murti

I have based period be how Hertz be to looking their Tesla thinking converted of etc. topic in and over to of I'm to on to the we associated what preferred time? you sense convert infrastructure. you're itself right us fleet as other about vehicles give mean, electric for a A And in And ask kind about kind addressable of saw provider, by that now going characteristics is wanting how the large in you Can Yes. CapEx that to day how as runs, large that choosing terms transition? electric? their do a as fleet the [Indiscernible] that's of your over fleet you'll you etc., features,

Gale Klappa

thinking own about? you're you about that are our asking fleet Vedula,

Vedula Murti

Yes.

Gale Klappa

All right.

Vedula Murti

Yes, your own fleet.

Gale Klappa

national part trucks, to Well, for own And but months frame, to just that you transition I'll that made -- the and Kevin? we've got back Kevin a a them materially come program our to to pilot other ground, a want the beyond pilot on our we've details commitment. time couple reasonable I'm ask program EVs. a then details. on fleet our ago. give Kevin give that going to I the got approved Actually, operating about very of so made a plan talk a to I'll commitment fleet, you briefly then we to and to a to customers to to, in continue to very continue of vehicles add to ask our our We've bucket is

Kevin Fletcher

now also point in for products We're have the of SUVs would goal And our or XXXX. of XX% at our moving our our trucks, you're then asking the our XX% EVs be cars our and larger some fleets around. X Gale that storing, that we fork goal the at be of looking equipment lifts that in specifically for time. for fleet about, Class of a purchased trucks, to as and is looking and by use we those for EVs between

as targets those those at and have for well. Looking

Gale Klappa

from about electric talk to that we'll some Kevin but wanted buy later. motorcycles And Harley, new

Kevin Fletcher

Thanks. Gale. pushing Always

Gale Klappa

we And pilot We're program very large to roll the Vedula, affordability Wisconsin Commission. hotels, stations. we is then we'll from commercial some of for about but got early options essentially the of customers, out etc. talk a stages in particularly the affordability customers, our the with installing pilot more for these approved help just as the it program charging

as talk we So program we'll now to that key charging some forward are just that our But moving in up. as putting customers our more offices lots, about with folks again, there hotels, customers, on in the parking some significant account to get is earliest stations EV interest talk large sign in etc. stages, early

Kevin Fletcher

question your responds Vedula. that hope I to

Thank our as the at fleet our with on your that just fleets, one, are on. question. is but and we're with internal hand-in-hand but looking we're large Gail goes you customers working Our customers also shared what that fleet, large opportunity biggest for their pilot working not the

Vedula Murti

Thank you very much.

Gale Klappa

Terrific. good so and concludes for for much that conference Thank participating your gentlemen, call questions. you, Vedula. Ladies for our and Thanks today. all

If Straka. can you have other any to Beth be at reached questions, free feel contact XXXXXXXXXX. everybody. She Thanks,

long. So

WEC Energy (WEC) 2 Nov 212021 Q3 Earnings call transcript