WEC Energy (WEC) 1 Nov 222022 Q3 Earnings call transcript

Company Profile

Participants

Gale Klappa	Executive Chairman
Scott Lauber	President, Chief Executive Officer
Xia Liu	Chief Financial Officer
Beth Straka	SVP, Corporate Communications and Investor Relations
Shar Pourreza	Guggenheim Partners
Julien Dumoulin-Smith	Bank of America
Rich Sunderland	JP Morgan
Durgesh Chopra	Evercore ISI
Michael Lapides	Goldman Sachs
Steven Fleishman	Wolfe Research
Anthony Crowdell	Mizuho Securities
Nicholas Campanella	Crédit Suisse
Jeremy Tonet	JPMorgan Chase
Vedula Murti	Hudson Bay Capital

Call transcript

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

Operator

Good afternoon, and welcome to WEC Energy Group's Conference Call for Third Quarter 2022 Results. This call is being recorded for rebroadcast. [Operator Instructions] Before the conference call begins, I remind you that all statements in the presentation, other than historical facts, are forward-looking statements that involve risks and uncertainties that are subject to change at any time. Such statements are based on management's expectations at the time they are made.

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 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 introduce And to Executive of Gale it's now pleasure WEC Chairman Klappa, my Energy Group. Please go ahead.

Gale Klappa

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

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

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

a quarter. uptick from Now our in our we Company, September. release as an third morning, Strong Infrastructure saw warm factors segment, in ownership summer this news plus from to shaped another The a performance share. close major of from solid quarter Transmission American you $X.XX our reported XXXX earnings the

our course, the Wisconsin I you announced on flows background balance and and some settlements with strong Of that switch cash gears in will we rate stable. provide And sheet and October. remain

rate recall, the Service our year the Industrial multiple with of Citizens Board this As we the Utility Public completed all the Energy reviews and Wisconsin Wisconsin we Wisconsin with for commission After agreements reached you Commission utilities. Group. staff filed analysis, earlier its parties, including

we forward which settlement any but The you In process, as moment, terms reached fact, just with the a more on home other to the this would the in we've detail positive it's in stretch, years. we I that parties December. than expect forward. the settlements review, we will step more these over Scott provide say view supported simply a commission's now in look and very

Our progress Xia XXXX. for rollout news ESG the for our XXXX plan Liu, period other day the of is the through big

billion morning, invest previous in history, That's with efficiency, on our plan. announcement is expect sustainability have an an you This $X.X we our and plan our $X.X focus of may seen capital from above growth. X-year billion. to XX.X% increase this As ongoing largest than more the

look strong. we I our long as forward, growth will and as trajectory Now describe

up, capacity X,XXX our customer this regulated for long-term plan double our increase project support for nearly be projected over fact, system, of we plan significant nearly this of billion networks, now changer the high to hardening to to in capital we our We the it premium require segment. driving around, a projects the way way distribution are next projects of low without so affordability. point executable. of of an long-range Highlights high in growth Inflation growth sustainability, believe can any the highly real And customer X risk the I expect what energy from that nearly what are X.X% have a year In of for roughly as affordable, a in is paving in we our that is a renewables will growth very true energy now included our major to grid decarbonize paving plan. and to Scott, development I X-year game like And MISO, our our and We've projects come now really earnings by X% compound will savings this also it to we investment plan that as utilities new quality. a and in we've our growth. of a an continue turn infrastructure increase to growth the And ago. plan this shake electric dedicated future need our issue just that conducted significant for more of to out equity. us, And passage networks driving transmission Add deliver previous year you've They're process $X planning That's Act in include reliable all Two important plan. cover it's in to the The investment. that's customers. operator. in I'd Reduction all megawatts plan. it renewable for level are our factors and megawatts projected progress Renewable transmission reliability Midwest of from earnings X,XXX before greater the ESG being a over clean. years

invest energy it will approximately at produce. in look we this added We the regional news XXX national the plan X.X%. economy. That's Maple Wisconsin will you The qualify ownership Act, a for that production interest may tax Flats Flats project, offtake being South XX% project seen will brief Inflation segment the developed finally, renewable in has in with yesterday, by and Solar further Maple That's a September, in at Illinois. XX% and of acquire XX,XXX Maple rate the unemployment Reduction jobs XXX-megawatt million assets infrastructure in an the financial of in the have our of diversify of project. agreement the credits. our the state all Central average. company well And meets Just the sale private to Invenergy renewables for a an $XXX the Flats Center. sector stands course, will for under all Energy criteria the Fortune of business. below the And

would the call pipeline, developments, our is see with growing from so in continue more on information a that, of regulatory over our our to all yours. and segment. I'll I We major to space. in investor our and watch companies turn And region for investments Scott this operations wide Scott, just say the range developments

Scott Lauber

to the by on reviewing front. start Thank you, I'd we where Gale. like regulatory stand

the the base to year. of request. each of our common with of agreement a The consistent for our that rates. beyond and the revenue the the changes utilities, review. partial We've place rate our a in component older get been continuation XX% settlement commission settlement also agreed the several let's plant. calls back of of Oak units Wisconsin cost bring initial recovery future to this First, power would for in Creek the sharing other Pending addresses mechanism agreements details has equity approval, The

First, we've controls. agreed to securitize $XXX plant's environmental the million of value the of book

Second, we of the million. revenue the the parties retirement, for should XX after recovery return settling the among over years, $XXX commission is the approximately customer classes. equity book to value, agree that determine allocation along would propose which with levelize with on remaining We utility, each of

We expect the commission review by mid-December.

at filed Energy Minnesota of Resources. our smaller review one we In addition, today, utilities, a rate

increase We capital bill are an driven X.X%, overall by seeking primarily of investments.

We regulatory we're units, into effect work well expect on projects. as January progress number them, our gas interim we of our as X. rates on storage continues call Meanwhile, new Wisconsin, a as internal liquefied facilities. RICE In capital natural good combustion reciprocating or will go engines, making

battery our Work project of natural an our the to expect solar Wisconsin. Badger these barn will with beyond storage into we've developments. go systems. keep Hollow with and service year As low XX system. on anticipated provide projects to no carbon strides continues in red wind $XXX and the discussed, come move And reliability to forward development generation. are in Solar electric early next II Paris continues needed of projects We we'll Park. next million, support now investment We're Battery to on XXXX. updated this base the still We year, megawatts any these Of of continuing you facility future the course, the our a expect online and Southwestern support energy renewable to make gas about of to in

Just Upper we Peninsula. test RICE our natural and of This blending in kind this Michigan's completed at last our one is hydrogen a month, of units its using project, pilot technology. modern gas first-in-the-world

The Research you'll As with XX% gas Electric project a Power the lead we to mixed XX% and in partnered to Institute natural research. hydrogen recall, blend. this

We are the evaluating data. still

However, initial expectations. met measures units that project well indicate and performed The very our findings efficiently. exceeded or all our

were out our course, As take able reduced. oxide increased emissions expected, was nitrogen these of emissions carbon-dioxide and, equipment emissions to

the with help And industry on the able been high-quality to larger and to we've public will on customers. this we've working forward our as feasibility year. potential next of early research for in scale approach bring our We demonstrate look discussed, to and sharing results Our full the future. renewable a gas generation the natural

as we our we I'm the signed to year. next continue have WEC year. project to our month, we to pleased next to and Wind $XXX commercial solar acquisition our investment. good in turn on net making represent service we've completed the X our million later noted, to Sky Farm segment. first RNG enter projects Flats. back early segment that, Outside last contract projects early of Together, Infrastructure our into goal progress operations Thunderhead utilities, We emissions. year. Wind fourth in system to by Maple Just to of our we're report to expected Gale the contributing RNG plan excited and of methane And it And flow this expect with I'll Gale. approximately go with Sapphire X this add

Gale Klappa

earnings the Scott, final a reminder we're our to head share, that our to quick we $X.XX months end guidance narrowing of we to dividend. expect range thank range. reach you the of top a a the very much. $X.XX year, and of now as into And And about

positioned a our very target in in expect to within with XX% to payout of growth the growth We're well earnings continue line that range, continue of per share. dividend I earnings. XX% will We to be so ratio our

Xia third will details more all up, financials. provide our on Next Xia, you yours. with quarter

Xia Liu

Gale. Thanks,

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

Page Overall, third our drivers. earnings Starting $X.XX across of significant third were package our quarter through comparison with down includes businesses utility when a I'll compared XX. the to operations. the quarter XXXX. on walk of regulated results earnings Our

quarter-over-quarter. offset other by and was it While quarter-over-quarter. earnings day-to-day expense operations were This and earnings from weather $X.XX flat relative utility by Outside items. depreciation in and contributed of growth share of higher $X.XX to timing normal, expense, amortization negatively to impacted yours. our fuel favorable the Rate weather, base fully an earnings. O&M estimated was per an increase

our In in industrial mines, and Sales tracking a large customers sales, electricity our excluding the terms commercial Wisconsin, grew demand of deliveries compared retail basis, ore electric last on to forecast. for to retail up X.X% is Overall, were weather-normalized QX. X.X%. iron

investment resolution our to to in Higher returning by XXXX. used of quarter Transmission mostly earnings MISO earnings related to of historical increased Regarding were compared to the the $X.XX ROE owners. Company, third transmission American appeals the

began that quarter return This third quarter was credits Infrastructure in forward, the the the Wind segment compared mainly $X.XX XX.XX% equity. tax we're at operation on third improved XXXX of XXXX. earnings ATC from third of As Earnings a of production at last Jayhawk driven quarter Farm at commercial to recording our year. end and of our going Energy the by

see share by segment that to and on improved at quarter our Overall, $X.XX we Corporate quarter-over-quarter. earnings compared you'll last per year. Finally, our Other were performance flat third

flow cash million by the $X.X this increase drove at of package. statement and of on with billion increase. natural now XXXX. operating X months first million. the were as total expenditures of Page provided costs Looking months $XX activities asset increased And first the cash capital of acquisitions XXXX, the X $XXX gas Recovery X Net compared for earnings a

can see, on well plan. been we executing you our As have capital

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

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

Additionally, growth. we and dedicated support $X.X billion to gas infrastructure to electric customer

efficiency. We X% and generate in a systems modernization $X.X plan narrowed term. supports to our growth further also operating invest capital This robust to billion over rate higher the X.X% and of plan of technology long-term to EPS long

backdrop development To focus original a $X.XX this base. remind beyond runway With growth, that our always, strong on share. of we're the midpoint using of as see year's number our even we guidance As is and our you, and continued efficiency, investment next X sustainability ahead, long a economic the years.

is long closing, trajectory said to like Gale our this before, earnings guidance. In I'd provide strong. and As

$X.XX a $X.XX per For we of to expecting are share. the fourth quarter, range

reminder, last let we reiterate for $X.XX quarter me our fourth the per in XXXX. a share As year. guidance Also, earned

to $X.XX Gale As noted, share. new is range the $X.XX per

is end reach expectation of the the that of Our the With turn it back assumes range. that, This we'll weather the remainder Gale. year. normal I'll top to for

Gale Klappa

providing on And we're call. of Q&A for portion our value folks, much. and stockholders. track now you on for overall, thank the very we're Xia, our focused ready customers Operator, the and

Operator

from is question first with Guggenheim Partners. Our Shar Pourreza Instructions] [Operator

Shar Pourreza

for getting EEI. ready Just

of questions just Gale, a So couple here.

infrastructure, initial pretty large jump So a at generation on look the spending capital shows plan the your consistent Wisconsin but at side. X-year the on

the sort what's mix are so, is And we're wins, thinking driving storage? it acquisitions. drivers what's more the you tax the more on of more As RFP and this if less reliance of about guess, on increase, between side? IRA-related And I equity, the solar, wind jump? assuming regulated

Gale Klappa

Okay. Great question, and EEI. as before always, your vitamins take Shar,

me down Let try into break to that pieces. several

particular is, appetite, The need we equity. situation the you as for tax our with never first our because recall, of tax had

continued Wisconsin, the give to the are are to the to mentioned $XX.X wind terms system decarbonization it's in of coal-fired customer as our plan. of script. the short, But in the renewable of the aside, really the with Act. are was mentioned terms storage. the we're future that need support in benefits story So continuation our state. billion, X, the in of first projects of benefits solar But and economy. of Inflation as helping secondly, older in to again generation the really, in is increase continue term the in billion headroom the Reduction of there battery the between drivers the from that what plants we the in of and plan the factor over that never the long by decarbonize and laying kind affordability big Inflation out just then set capacity very Bill Reduction of have electric the the a capital I carbon-free $XX that I decarbonization Clearly, Xia you And can the needs retirement breakdown of power X-year system enhanced huge customer with much long Act a and of

going X,XXX megawatts big the megawatts this from X,XXX I regulated as And plan, we're previous plan. mentioned, one So our about chunk. for about renewables that's X-year to -- in of in customers particular

plan, transmission a The Wisconsin, to as transmission. of And addition completed here but age some more for it's where in need is online in be second upgraded going need the renewables an piece there the also in system get is rebuilt. to that, to of

And third million had network, then big while is, distribution in transmission a will back, uptick our a seeing investment we're So needs. and harden that electric $XXX to we continue. the plan outlined a

in your a I hope So do that Xia, of responds to breakdown X,XXX and quick question. you give megawatts want batteries? solar of wind the terms and to

Xia Liu

be Yes, I'd happy to.

So we megawatts X,XXX of assumed solar. about

that's assumed plan. increase wind compared and battery. of XXX megawatts over the XXX to little of We megawatts megawatts So around last a XXX

adds that X,XXX. to So up about

So I'm giving round you some numbers.

lower prior slightly So the higher compared wind, to solar, higher plan. battery

Shar Pourreza

across Got growth we're guess generation how as your an do detailed increase this thinking it. should a in we you be loaded? period? the when EEI, Or And then will layer step-up about just a provided in just spending updated guide? breakout be more back-end expect will it we I

Gale Klappa

Well, great Shar. question,

got As we've now. projects you flight in a right renewable of know, number

thing. back-end So of think pro kind across X this pretty loading I is years. It's a the not rata a

Shar Pourreza

many other Okay. of Perfect. Infrastructure historically, And peers thinking there, the we states your some with But now been softness post -- just could lastly especially it then, on obviously as more about budget. is ahead competes planning Gale, as it's see the of we're IRA. competitive regulated in segment, are

that? all a healthy peers on I agree businesses exiting essentially to these nonutility transaction then First, seems of what your your you do kind what are multiples? fairly And guess, be with and of thoughts

Gale Klappa

on production you, Infrastructure Reduction a the gate And tax exit But for to And of have investment lot infrastructure softness to honestly see not between don't mentioned We're in business. us and, our we avoid I see our a decided credits to the is, the honestly, our a But we for of a in but Shar, opinion, inflation position. choice the to A others softness Inflation I you're to don't some of Act, right, good and have to that be obviously, a see investment shazam, don't good is Reduction in could respect did honest up announcement by you Flats. think that we that of multiples, whole in think out of that projects we choice there. transaction lot and companies that credits a I mean, just lane lot that with Act coming with very other open Maple and solar for additional of equity. it. it. tax allowing that terms I it of always is segment future dilution. with company, your but example that segment decided avoid of

number it's are to place good off, XXXX, meeting at add so think renewables, projects a of and I price in here. one for us. have emphasize roll a these the we we're our is regulated enough. when very Post But a And of all contracts of I these probably important segment We're flexibility It's business infrastructure our potential we think asset to just the criteria. very base. don't financial roll that when into they really going building that for thing that good some would

they're the value. than lot assets. of future capacity in have So probably we multiples options a seeing in more are worth the future. the We'll we're given frankly, seeing, building own these for with carbon-free And lot flexibility carbon-free for a we're our

Operator

is with of America. Bank Dumoulin-Smith The from Julien next question

Julien Dumoulin-Smith

of for couple a So you. questions

you the extent the you X.X of from today, solar elevated still utility little the here, TBD go is off extent as And criteria just can as forward you increased you it? [indiscernible] higher rate ROEs a the think look bit. that, mean I project but meeting seeing off IRA little we kind kind there? Investments? out she on full the little with me about X.X. in of is of bit ourselves more? the Let investment there, and expect what calibrate bit a left of related regulated environment to environment a where mean, obviously, this that opportunities, rate the about we recalibrate should then and Or IRRs you that financial this guys start outlook mean talk I I at are to out the

Gale Klappa

is To give as well Scott I'm of going -- question, in trajectory the thoughts I But all on projects. answer the robust. meets solar on think beyond to facility $XXX on criteria. financial to you long short, and of on Wisconsin, renewables mentioned your project, second to IRRs I X-year which Southern his story back this additional No. have Illinois, particular plan your our infrastructure our particularly the this our question million in

returns X% as our roughly IRR. of years levered that in I again, XX business. the So us mentioned, exceed returns flexibility in tremendous ahead regulated give And the XX And, us. to

and So projects. we very very, with can selective at moment -- be again, the these

softness the And don't that really moment solid the farms be X have a but kind selective. particularly the others great we've see because are, Scott? got like now or to are committed think being working can by some we future. with selective, seeing, operation partners I in either be solar perhaps We facility. that by Invenergy of and I wind may are we've at it of again, But we the

Scott Lauber

we you opportunities, of as No, right. solar just A announced Maple you're Flat exactly that saw, lot project.

and of the of XXXX. about think remarks, benefits we goes that you the have As mentioned we've that savings prepared XX the for over IRA, in through as projects billion years, $X customer Gale over announced the long the the term

the half as I a opportunities last think here. lot decade there's at you of the look more

think savings. when come, only our customers, conservative to that more we $X the probably of a a and So $X good of we lot factors look in gas at very billion And it cost. for savings IRA

more $X, see as as look at we the cost. renewables we So are more $X, even gas $X benefits

hope here. I lot that's So of helpful. opportunities a

Julien Dumoulin-Smith

the Chicago. Absolutely. equation to Absolutely. Any next following the here, at just the on I updated pivoting regulatory may replacement of people's pipe Illinois there rider or if side more then year? of gas focused strategy expiration in of the Excellent. existing the And end back

Gale Klappa

No.

pipe QIP, XXXX. expire the investment we rider As by the which rider you the at is plan, call mentioned, to of the legislation replacement set end qualified

firm appropriate we are with in life engineering a of more underway -- in done to certainly, to election need well XX% the than the rate was Commerce the forward-looking we away, complete the So remember, useful period, pipes still continue the Chicago conversations that is And test needs with to year rider a practically, study it engineering it's which than process you found few as of and independent to a election days and what's case that by thing under over after only XX% a have work study, right through a than That a just XX to to the an evaluating Commission firm. wait the city left will continue. really extensive, an have work or The the us the in through the folks. took with whether of more whether long to needs years. asked say have it's remaining less independent appropriate I of

continue next we'll we're as on, the work the and year. move with work it, we just target process on must to go So in into

Operator

is with Tonet question next JPMorgan. Jeremy The from

Rich Sunderland

higher walk It's that X%? rate actually the from that's growth, rate. you asset-based not end we the up ticked growth of might the is in of what terms the down Jeremy. outline on Rich high know X%. typically cost than Sunderland Any growth One the of asset-based greater thinking be growth else here. different financing than considerations to Thinking EPS from to at on around couple But about Curious is narrowed remaining considerations. thoughts X% the EPS? Or for the you parent of moving delta offsets I a

Gale Klappa

And of is the time growth our to rate new think probably projected ability on X.X% our growth that's starts of record consistency. of as you well, X% -- kind projects to I rate reflection the track industry. and execute, of know, ability in it to our build our on first a Well, tightest all, budget,

I narrow very, as, growth our ability and confidence So see the our strong to of deliver. rate very again,

for you in base, actual the of rate that know, average terms X.X% asset growth factor we with back year. you equity, which also we -- at the the industry. the -- us have off think in And In just distinguishing infrastructure I start at have particularly then is a for costs, not and back math, and But financing what start to you is but need individual debt the utilities with as a costs at the the no is we segment. parent,

think together put I you to So is that add interest Xia, conservative all that? what anything our like growth rate you'd X% to to assumptions, gets rate. with you and to our it X.X% it --

Xia Liu

No, it, think covered I Gale. you

Gale Klappa

that helps question. hope I to respond your to

Rich Sunderland

plan debt do on No, financing well, FFO and as currently side. that's especially where here? last of higher you the through picking there the this to very CapEx up see maybe thread helpful. And the period standing maybe just consideration

Gale Klappa

Yes. got for Xia the has you. detail

Xia Liu

Yes.

that remember, -- in solar, and the quarter last balance the it fronts, are several investment stand-alone flexibility the transferability. provides about We ITC talked sheet IRA PTCs also for for the from still earnings battery I the call

for things provide more us. all flexibility those So

rates the FFO higher target Wisconsin the X things. term. the accommodates debt already financial the over we're and to by the looking basically, at interest knew. the plan way, is probably are and is already X as IRA, also higher And higher rates settlement, you One still interest the factored in longer capital, So

Operator

Chopra The next is Durgesh with ISI. Evercore question from

Durgesh Chopra

Just what how in should terms as current sense included -- of a what's I wanted up. dates settlement portfolio just of kind quickly us and and we just articulated? to rate sort then you in think watch approvals for we that regulatory on execute line get you to gigawatt to that the key time follow X.X of wanted about should I of

Gale Klappa

in Xia for X.X have percentage the already them you. the of full number of the you, got has though, is significant coming, a tell can breakdown. we pretty flight. got But Xia breakdown and gigawatts has a I

Xia Liu

Yes.

So XXXX, X,XXX. the we is out future in will the the amount about that of file

already and So that development filed test already have X,XXX gives address limited reopener are [indiscernible] also 'XX 'XX. we'll the you megawatts a under and either in we those over in that have or a year sense we

Durgesh Chopra

it. Got

So -- said reopener the X,XXX what's those? timing those of you already 'XX. underway and Are then X,XXX, like

sort So 'XX beyond type are those approvals? of and like

Xia Liu

think generation like reshaping Gale pretty is this I balanced a mentioned, plan.

So our spend generation X I think Wisconsin over balanced in pretty is years. the

you incremental each think year that would X-year So period. the it's over

Gale Klappa

No. Yes, absolutely.

frame. the flow. a of mentioned earlier have optimistic. legislation. Scott, time talk pipeline, in very we about you I quicker and the the really projects might in quicker benefits of to the again, put So But we're really And of the benefits are number -- significant. mean, the affordability want I terms the just customer we these in,

Scott Lauber

Gale. absolutely, Sure,

going starting billion in as that credits, the projects right ones three projects at XXXX, some waiting frame now of But these those right for through in you in And talked look of to two get are we as review imagine, that So are are that we there construction service. production start commission probably we when time have go XXXX now. actually is XXXX, those into factored then already about as can as significant we in $X savings, for the process. you the in, earlier, construction tax their the now. And

those to to customers $X XX-years. much credits going give are the to billion able about those back faster. solar, of using over production tax But for we as savings remember, be you So

Gale Klappa

Over XX-years.

Scott Lauber

hit with away Over XX-years will and they investment XX-years versus right tax credit.

So very favorable for customers long-term.

Gale Klappa

I you. Thank hope helps respond. Durgesh, that

Durgesh Chopra

Thank helpful. you. That is very

Operator

Michael Goldman with Lapides is question next Sachs. from The

line Your open. is

Michael Lapides

down on up, Illinois, only not bit. Wisconsin was not little really where spend two spend is related One was maybe questions. over capital reliability a to levels Sorry add on of would if of gas financing one I as had back plans, and gas number go even side. didn't for and look flattish, on This last there. but capital go cut it well. the increasing off purposes, five-year first years, just system, you your I distribution gas the the side one the you of

and are you behind there drivers some what curious of what Just the are. seeing that

Gale Klappa

things. Xia as short, you capital well. Sure. I of look give allocation and are long capital I it reflects that Michael, plan, is flat. pretty ask will And think the story across But gas five-year part their at of the But Scott to two view the When distribution correct. you

First of as the real Wisconsin. to continue all, it the opportunity system system reflects investment need and we electric decarbonize the in

capital need, driving which a is that the has portion. really grown So

So renewable prior generation is capital allocation to way up in years. compared the

progress. Inflation to But opportunity and grown. continued our has units Reduction older focus have Act for the again, the benefits retiring on need the with and of investment coal-fired We renewable make the continued

like at about the LNG and in that course, pipe piece Wisconsin. is but gas going very that the that things. two replacement the I where end think, One, distribution storage our fact then, biggest would the come spending mind, add? facilities are of So distribution the well not is is, the that building flat, we we and spending you level. into system, But And system, will my tail have at I on same reflects we network modern reflects anything quite And a off bolstering construction gas Scott, storage far that in from those spending, Chicago of continues too the LNG then that are for pace, facilities in factor. but mean, program as service. also to

Scott Lauber

Gale. correct, exactly are You

in a key to tanks going going the gas remember, distribution our is capacity done is storage add year. liquified item being construction majority well, think for and those going are natural spending this that of system I

Michael Lapides

then I have And it. Got question. follow-on a

well as debt infrastructure debt company-related holding as for at energy segments. the Just

the raw dollar that either those is what maturities of of you the and rates? you about the can two of given move refinancing kind of level boxes how of what is is kind remind at us percent are Just broader levels amount just thinking in and

Gale Klappa

always are as we question. of you but financing got area Well, a ourselves that frame used think for sitting right conservative an good in where Xia's think me know, have some Yes. exact I from the asking companies because I conservative again, And you techniques, separate let you other is details because, plans. front her, it we financing very

is floating compared And to outstanding debt total low. of so our quite debt the really percentage rate

let will So I the give you details. Xia

Xia Liu

Yes.

have to around total I company holding we know think debt you a target XX%.

number. us. And for pretty Gail's Gale capital is remaining the Klappa that around point, So modest to percentage risk

rising So rates holding helps we at a period, try assume company us pretty utilities interest to from I environment. again, the conservative level. at forecast interest and And that rate the at the think key both in

the I rate way. think interest addressing we So that exposure are

Michael Lapides

that the to ATC, little then should Got on transmission the bit spend, we just in siding side chunk a of question, a it. and large assume loaded last And that just back-end due is on the increase the permitting?

Gale Klappa

said to process, it we that would have probably of really in going are some XXXX now into the But is long-term you out beyond. I Scott see decade. you from I Actually, if MISO the one or asked that have would would year Tranche said, two and way ago think years uptick think even I and spending planning particularly ago, a question yes, with

Scott Lauber

deck, relates but slide you Yes. And seeing in investor to actually Transmission on it together it in our a American X, putting actually XXXX, new going we be additional XXXX XXXX. as will Tranche investments in some to start starting are Company but

American growth assessment plan a here. with - long Transmission it that the XX-year Company even So came in shows a their good out period just is longer

year's XX% So it XX-year assessment. is from actually last up about

positive, going longer be is it plan. I think real a and and a to So earlier starts longer. It term

Gale Klappa

the with are opportunities of additions early or that MISO And that Part And able way. Tranche part or have upgrades really have great of of the are rights new been you expansions to one is asking new that, identified of moving, some that terms a Michael, question. get because rights get to things in existing being of just of of tremendously already permits terms transmission in place. not helps in on through way

positive be of is So you real out our a one plan. there see beginning reflected in that five-year tranche coming to development

Michael Lapides

much Got it, thank guys. you appreciated.

Gale Klappa

care Thank you. Take Michael.

Operator

Wolfe Next question is from Steve Research. Fleishman with

open. is line Your

Steven Fleishman

around talked you about sitting panels of for warehouse. I it, out Actually, time last waiting think to Gale, saw I a come

about doing of renewables the in how flip? So you the on chain of of and you you a could little kind maybe just talk just kind bit supply current terms are projects

Gale Klappa

of construction are actually and late regulated how on were needing Badger And to Southwestern Scott news example, keep, time Wolfe for kind solar farm very you Great panels. some in right. out in construction warehouse II, are Wisconsin under The about solar good were Conference we at you Yes. badly question. I talking the the large, delivery Chicago. of Hollow of we together but of has the the developments in And September, going you last for

Scott Lauber

Yes, Gale.

warehouse about in have megawatts So XX a Chicago. in we got

XX The assembled just released. have been first They to starting picture a be site. on are They yesterday. saw megawatts

So that good really is news.

remaining XX working We megawatts. on are the

we we the other continues we solar placed at site. now - out So have figured construction panels. path for we figured orders the out that And think have

are So here. moving placed and along orders getting things

see them pair the So construction the start it at to of great sites. is

Steven Fleishman

Okay.

And Hollow? where been of like are where on you so time might in overall, have now terms for versus start-up, line before Badger just you

Scott Lauber

Yes.

even weather supply be Badger it time very this chain. changing weather here But still supply a factor here. really now, are not too. path we are will think Hollow in it we chain. It our at for But watching Wisconsin The We are early XXXX. we depend the the more and at in looking now, may line all we of time. a for closely upon right But right have

Gale Klappa

good are news, for things said, Steve, first the months. the And Scott starting to move time in as

Steven Fleishman

been see in next you And good. has governor that topics have emphasis state election one the business? energy got one other the then top XX question. is Wisconsin a election. That just in the of But know would in if And Okay. not impact it back just sure I'm to week. in I any change do Republican, your three, four, curious you were switch

Gale Klappa

by power governor, don't of difference our a change. all answer, transition the Depending sitting that in terms going and reliability, both plan, you decarbonization we course, or the the of understands public of Governor heating toss-up. each gas poll Evers, in see candidates. for Steve, in point which generation is The the also one short polling race at, for a but be of seen, support information upon is has Wisconsin. there on to been is percentage look really and all And is is race needed two have a our very plan, natural supportive of we the

has governor say, as a And not that balanced you energy major very the is issue is So really a approach. had being debated.

inflation. now an I crime think infrastructure. his family guy. candidate, He and his X,XXX think infrastructure on that I an of pipeline. he's construction I think the Michaels an the reliable two literally is Tim They I worked employees, certainly they construction. Michael's and started be need top he is perhaps individual The have and are for the Keystone Michaels, They infrastructure grandfather Tim best Republican company. description the mean, would understands

I So election the good in going goes, be whichever very are to way we shape. think

Steven Fleishman

you. thank Great,

Gale Klappa

Thanks Steve, take care. See you in EEI.

Operator

question is with Mizuho. from Anthony The next Crowdell

is open. line Your

Anthony Crowdell

I packing was question, are is going ask most EEI, answered. to but Shar you, a already quick why of them for

Just, I on inflation. guess,

You all guidance, maintained over. guys are stumbling others maybe have the you navigating that are challenges some

night problems pressures? labor, just chain, biggest cost is rates? on gives is headwind in or the materials, what these the challenging interest it part it is to most What bed it the pressures, really inflation inflation like of going on at on supply Just is you of

Gale Klappa

said to in these me important of have was Interest I earlier, idea panels was meeting panels. projects simply cetera. concerned we and moved and mean, mean we their costs, mean, the But complete British I But say understatement. freezing, probably part forward-looking and in, to Xia projected projects up will, rates, that actually the that case. given my in obviously have we locked in the keeping solar to several panels sites. of of panel much major will for the in got getting mean given with that solar dollars we we thing underway, is reasonable the parties movement are demand mean, dramatically. as to to was of a that To our night. they you that able because of you Xia keeps have of that being settlement us, issue. to is I have rate me, our That there the environment at of the been Wisconsin, moved projects and we movement for have interest we up are night the classic solar Well, underway, most getting billion ask biggest cost. me, rates would capacity come is some solar the in I mind, about if the of the summer to holdup test again, periods inflationary biggest give and et have solar I the at what we in construction them our Scott most

increases. So in rate terms of interest

of whole I rate we covered of cases the are putting there in think because the mechanism place.

panels some the solar I overall starting we see costs the are commodity We some in And to assume Scott, going see move. are increase of to capital affect program. that

Scott Lauber

Badger Hollow And solar that biggest site II have to panel is getting and at exactly Gale. one is Gale them positive. see is on the getting said, correct, the really in probably start like move service No, put

rate we factor cost end of filing into in. filing we, - that factor did our all of to our some inflation, the June that increases seeing our are from case supplemental filing We course, and in

from the with our job supply chain team the and working to supply vendors has item on our a operations, parts. delivering other done really and different great The chain distribution

any is had lot the what issues. need of a just conversations, forward. for construction haven't week-to-week on day-to-day There sure to move significant our supplies we make We conversations

is well here. factored test everything that year. inflation into going But So along really was the all

Gale Klappa

sizable for what see see the prices is decline to in it great Anthony, spot last one in quick great thought a worth. - for And few weeks, it natural It was gas. was to pretty other

have will about supply costs commissioners will we say a gas And natural winter earlier for state in onerous about, one from talked less this, and good things the the with projections. for pleased standpoint be . heating though, than we are very state winter some I our perhaps the So gas. shape of regulators

the seen have the country, of the in regardless in some price. be that You where Northeast, case parts other may of particularly not

believe that and moderation we and we winter I prices going supply in to people perhaps overall on for we can heating gas a season warm. count think keep are So for natural see the some

Anthony Crowdell

a valuations public and if Carter noticing prices. private rising warm, seen And in desirable but risen this you sure Jimmy pitching buy that of could before are change I versus versus rates. sweater if Great. that up assets maybe to one bankers assets change you have to market some less last now or just we rates keep and a rates. seeing I'm higher just recent end valuations any are lot sneak get some have you assets you any wondering with the in lot as private you in But the as use just a of of sell rise one

Gale Klappa

in on Well, might In business, rates do. answer high-quality the is ways, on helpful infrastructure the debt of increase a the more assets interest us let some for this load their face that it in competitors we capital some some of we the to way. me because these plan lot side than of

debt, XX% our finance overall So enterprise, again, just XX% like we about finance our equity we segment infrastructure and roughly.

do the don't that of is ton rates So debt. have risen, infrastructure as competitor a of interest that project a We economics that. changes loading on an for

done haven't that. We

even perverse some of rates segments. has beneficial higher position the competitive anything you And in terms infrastructure interest the Scott, our add? would for been to way, so I like Xia, think actually, in

Scott Lauber

No, I agree, Gale.

the at approach, look infrastructure. can as deal we we announce I think our another as see, able were there consistency, to our really helps you And yesterday.

Gale Klappa

very are excited about. we one And

Anthony Crowdell

much time looking Gale, you seeing at Thanks to EEI. the forward for so

Gale Klappa

you. Thank Take Sounds great. care.

Operator

question with next Credit Suisse. The Campanella is from Nicholas

Your line is open.

Nicholas Campanella

wanted a So of - to just I follow-up couple listen, questions.

are back Xia through debt to and long-term. target you of just going the just to IRA, still the and FFO So over the I side kind comments know working credit on Liu's reflecting

you a similar a Some years And peers it of the uplift as going cash today. is WEC? the plan. see dynamic five-year in near Is of flow on I'm communicated have that curious just your in that

Gale Klappa

her give to you view. We will ask Xia

Xia Liu

Absolutely.

and of flow the profile. the you IRA at would uptick existing same, look keep you that the just capital on on see top impact, cash you if plan, just definitely layer the IRA If capital

metrics. it just If increased plan and that you. allows So to debt makes to us the the maintain now, capital FFO as finance said still to I long-term any sense

Nicholas Campanella

mentioned And ATC any just Yes. do how Alright have equity lot. it. we adders on total about and while that you, ROE? going of you forward. XX.X% just thanks at include a then, the kind Got Does not I return Xia, think

Xia Liu

is XX.XX% precise, total ROE, includes to be just that the basis the XX adder. point That

Nicholas Campanella

it. Got

last mind then the Okay. more Gale, current the guess on how is over high. team a environment M&A cost have you so is dealing the one regulated And successful this a in my had question, follow-up M&A like capital I kind on is but just playbook industry viewing about of side. really that just the kind level? executive across be M&A or kind a with and to customer is or decade, being is from your that of think not for pressures it main your Obviously, and every not, should does with whether changed and opportunity bill it But scale and my in driven drive consolidation customers of size create of we investors. higher or your efficiencies last the state. for question more about but how And Thanks. criteria, isn't apparent

Gale Klappa

repeat will criteria. I a but Yes, I And bore not three is great the it everybody, question. will

there like XXXX, over there them. the I literally maybe are States. the wall. You turn utilities put know clock question, EEI, do and time your on I United it we history a ours we industry. think on traded if all Today, But XXX can were at a consolidating which is good roughly a you in are that mean, XX. goodness, But back one, to in investor-owned publicly shows to

scale are in for the formula, efficiency spend, era matter. efficiency a power matter and scale business, of of an eight. is it call and increased one to Particularly you scale we capital know eight. one in We the it So because

through the of O&M of efficiency pressure. room $X enterprise, dollar every drive for For you customer capital can without makes rate it

greater think, a balance cost think are interim size industry. with board, fairly a capital is, continue implemented will in more do - But scale I folks fairly can here, time, and sheet. to the over consolidate sizable I have across if the the question plans And in strong effectively be you plans. sizable dealing So the we those and

time, more driven think the low be MOEs, though, as in old to I I the So some like consolidation. leverage answer equals costs. debt was, would M&A, driven opposed which it modified going style and to more cases, over would look by of or by by of interest mergers expect, is modified driven

fits view. question. come I At And but So of it long-term, flavor that for suspect and is you thank starts. I least the the will be in my be, think may different it will M&A

Nicholas Campanella

in answer forward Thanks the Florida. and to seeing care. for you down Take looking

Gale Klappa

Thank great. Sounds you.

Operator

question from is JPMorgan. The Jeremy from next Tonet

line open. is Your

Jeremy Tonet

you Ira, space. and higher after I I to just customer was touch level on expertise just talking and projects from benefits here. needs about on the thinking significant the broadly a wanted transmission about thinking And roadblocks see the transmission overall thoughts how to just development really effectively seams other on issue planning or this get do regional other any going? how to impacting address into your

Gale Klappa

two I for question. interesting are Jeremy, you what worth. thoughts will give they

forced can I much of more The seams that I the first one been see a power-grid going as there industry. issue, goes But have things mean over I the back less grids less seams of time. view days amount I remember or less they cooperation, my FERC are while you that in this nature The or and simply some have think, the XX-years. is is think, other. tremendous next in of a think interested matter inter issues regional you take very Edison. will and issues on of as to is are is guess made the resolving. cooperation long issues These the the to my progress, continue will, the seams real. it SEM these to be going because if And are And for but in I grids, power

I be. on that. have your Scott, view think they to simply will

Scott Lauber

with I you Gale. No, agree

think I hook is they built, even to more as of see together. are going gets more more natural to it transmission and it

into it will it place, may but time. fall take So a long

Gale Klappa

gestation is The just transmission expansion too long. transmission. of that existing I make not an for other would The period simply gestation existing point an the period is is transmission upgrade or that of new

arduous than process have envision through of for example, our gone this, that more transmission very approvals, going region a court all is that is ago XX-years there still is the It We was fully about now. right project, first is but in a not it talked constructed. through

there two to the think areas hope it country. continue electricity decarbonize So issue lengthy are period seams to but takes basically also and to is the it to be keep across that worked reliable have transmission. I One that on the system really just greenfield is helps. the build I

Jeremy Tonet

is That it very I you. Thank helpful, will leave there.

Gale Klappa

you. Thank

Operator

with Murti final from Our is Capital. Hudson for Bay today question Vedula

Your line open. is

Vedula Murti

go system to mean of from availability In can the over terms able things terms that how factors renewables us early we XX, like was because improved, have to that. you that like period for nature XX, back be of win here, credit like would and the I you the if in whatever, of help ERCOT much MISO on, XX, stuff build-out, the capacity get

thumb a is kind provide go of world opportunity. we function what is any whether repower technologies of guesses emerging as of kind forward, actually just and intent or step there So whether

Gale Klappa

please that asking, for you these Well, a we but say are of base wonderful first I clarify are I we going how you I question will I doing. if your to not wait know Vedula, you day. in but you here. are I'm an were and call understood one of ask with terms completely think - on off I'm And all, sure days, when award-winning, what

our do repower question, Midwest get what an is, the Is you we assets to asking think have in to your power grid. opportunity I existing Vedula? credit of are some more capacity that

Vedula Murti

And and terms what it would is have part. both MISO like credit part like to now the from five-years in the that That as improvement? opposed type What megawatts, you of ago anticipate been of second XXXX wind the solar. first something the might capacity is or

Gale Klappa

specific the a credit Okay. type renewables. Well, MISO Scott. particular about very particular of for has been capacity

Scott Lauber

that are capacity the know, as XX% Exactly, compete to you more think capacity. think Gale. summertime of I at But where in XX%, No. around going process XX%. you a about now XX%, through seasonal is is that looking when XX%, And in we solar when

the So the the we to look the fall summer. all and need currently those. working winter spring, you are And at through

XX% the at December for the the seasonal final XX%, for come going how summer will on that looked solar. at. the wind to information I capacity and be think the But in XX%, out here, is for XX% closer these capacities is it

Gale Klappa

I question, responds hope your that to Vedula.

Vedula Murti

that that go Yes. compete thing, we relative last across is more have forward capital extent opportunities, to And especially you allocation here, that repowering tied with I guess that have I'm guess, to newer and as to projects how going wondering the one you business I critical if to as line? scale

Gale Klappa

there with State XX-years no particularly of largest be for of some say farms Wisconsin when older, renewables XX And in a some question, of of and those the wind ago, the more example, to decade repowering than will some on opportunities, came are owner older ago. we I the and operator

don't wind generation COX reshape by of and improved to much goals and and reliable see affordable, is clean so is going to reduction the because to the emissions story any to XX% I technology this our going goals, done are an continue environmental of example, short, for out see as way system end that crowding crowding meet has opportunity as we But in forward. turbines become have there So a the way XXXX. more long in opportunities those have need out. as in even I that don't be efficient, aggressive

Vedula Murti

you in thank see will I very and you Florida. Okay, much

Gale Klappa

Well, look meantime, so forward care. and ladies gentlemen, the for that to thanks you Terrific, call seeing much. in EEI thank our you at again, concludes today. Take and We everybody.

Operator

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

You may disconnect. now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.