WEC Energy (WEC) 2 Feb 232022 Q4 Earnings call transcript

Company Profile

Participants

Gale Klappa	Executive Chairman
Scott Lauber	President and CEO
Xia Liu	CFO
Shar Pourreza	Guggenheim Partners
Julien Dumoulin-Smith	Bank of America
Jeremy Tonet	JPMorgan
Michael Sullivan	Wolfe Research
Durgesh Chopra	Evercore ISI
Andrew Weisel	Scotiabank
Anthony Crowdell	Mizuho
Vedula Murti	Hudson Bay Capital

Call transcript

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Operator

Good afternoon, and welcome to WEC Energy Group’s Conference Call for Fourth Quarter and Year End ‘22 Results. This call is being recorded for rebroadcast, and all participants are in a listen-only mode at this time.

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

In addition to the assumptions and other factors referred to in connection with these 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 approximately will the conclusion hours replay call. The two this after available be of

And Klappa, Chairman pleasure of WEC Gale my now, introduce Energy it’s to Executive Group.

Gale Klappa

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

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

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

with Now, on report just to release But an earnings more this our to as financial year a news exceptional delivered I’m year share. XXXX pleased meaningful from of full you every our morning, $X.XX and few we energy you Xia our minutes. growth detail you strong results satisfaction metrics safety saw and reliable, on way in we measure reported a virtually that provide will as our favorable solid weather; we capital from to XXXX: our clean. and affordable, an shaped paved per from transmission of performance in share. major for steady segments; really for future employee plan, customer that’s infrastructure Three factors execution and the earnings

despite and On you December, know, bit results little supportive credit balanced our noise the from as rate in saw front, in a regulatory we the of Wisconsin reviews may process.

effect utilities. are now Wisconsin in New all for our of rates

you Baltimore, And like more to home our major we with would New Illinois. expect gas below those Chicago provide Illinois on with detail Commission month, point filing. this York, cities, that of heating Scott for the just are in moment. and in will I Xth, January currently requests U.S. a in rate bills last And Philadelphia. out Boston, continue that filed utilities with we other Commerce

you growth. sustainability, ESG in in updated progress totaling efficiency, five-year plan November. It’s that history, to largest for and investment plan we the for our now our Turning billion $XX.X

We X% to the expect our business of XXXX infrastructure key compound projects, is to and commitment major growth both earnings over The through year part in segment. X.X% XXXX. to plan regulated a period renewable drive the in the of our plan a

In announced fact, Solar week, earlier X will of interest we Samson Phase acquire our that XX% this Energy group infrastructure Center. in an the ownership

with approximately Located and in of last commercial a for I Samson Northeast Texas, I. approval, of Pending plan AT&T. to we invest entered agreement long-term regulatory of has in has XXX year It our May capacity final a purchase Samson portion megawatts. power million service $XXX

Samson expect Overall, in know, today, in to and may we’re first Invenergy. part the year. phases is Samson quarter X. being largest is in as to United solar project X developed pleased Phase close the the late under construction by I, the transaction you take of this first the of We States

grid. will on duration the This first long battery. megawatt States X Research clean materials. green Institute we’re CMBlu to of goals as a it’s English, the designer a know, pilot important pilot And company hour Power the Energy. with storage its announcing kind CMBlu our Now, low-cost, In one of project an using is and is energy. shape of common help simple the of battery future today, Electric project X one to environmentally-friendly a United called be electric you German of

energy to as believe durability is plan for this can Our test today. batteries long store as to it the of typical twice system. up in battery the We use

and industry. temperatures this early And shared in brief the will regional across Plant gears Power cold. XXXX look at be take quarter fourth in near plan when year launch switch downtown results project economy. at a the turn We the to of our The now, the Milwaukee let’s Valley

Wisconsin to in move us below dropped of as the That’s in December, and forward the the state well in positions in unemployment rate we added remarkable strength XXXX, Wisconsin well XX,XXX believe X.X%. the economy the sector diversity current national and private jobs average. We XXXX.

that, I’ll and information And infrastructure turn call over all with Scott, for segment. the developments, regulatory Scott our to our on operations, more our yours.

Scott Lauber

Thank you, Gale.

start the updates to on like front. I’d some with regulatory

all We’ll for provide Service review Wisconsin Public past the also orders authorized to of of our let’s First, The component X.X% where utilities. we sharing benefits on approved December. the earning the commission equity an It our continue if our performance exceeds this to structure mechanism forecast. increase to written for Wisconsin XX%. Commission’s our equity Wisconsin return in stand capital customers

to review And now Gas. in under North of bill we for the adjustment at have Illinois are of Shore to automatic rate process expires seeking known we an rider QIP, it mentioned, as recover and return Gas improvements. infrastructure of as cost Peoples extension filings We At traditional the end not rate after the necessary making this to Gas, Peoples Gail the year. plan

Our investments. those key rate continue support request to capital would

of as useful an natural study engineering found independent the delivery may United networks that over you the system are life. one approaching gas end iron of the Gas in of recall, Peoples the operates pipes XX% in oldest their States. the And

prices system to remain natural largely will gas bills to the declining, effect reduce as project modernizing new and ensure and XXXX. customer safety methane in reliability take rates emissions. we flat With are We the

of smaller filed recall rate review also You at November. last Resources may Minnesota our we Energy one utilities, a

Xst. making an projects. X.X%, our regulatory primarily seeking of capital on effect progress we’re increase of number are a overall capital rates Interim by driven good investments. January into We went Meanwhile,

months about our track within million. system. with $XXX come renewable Our in Wisconsin investment Barn expected provide energy of to of online on an the is to project development megawatts next This will wind Red few XX

of assuming Work panels. continues facility Battery expect this Paris the release to Badger the service solar We II timely still parks on the the into Solar Park. and Hollow solar go year,

for solar capacity of of We Solar-Battery with approval and also received our plans of megawatts megawatts XX for storage. purchase regulatory Park, battery XXX the Darien

We into service in to expect this facility go XXXX.

Of any updated you course, developments. we’ll keep on future

our approximately combined cycle investment million, of purchase XXX just we facility. Whitewater closed month with megawatt $XX the an And plant, a of last

we As under from this a reminder, unit agreement. and natural gas purchase a received previously capacity energy power

system have a feet working another the business high renewable our January, to natural bring that’ll of which signed total gas natural of in been enter we We to contract quality In billion gas X brings to us customers. RNG our annually. cubic planned

RNG goals to reduce expect our supporting flow emissions. year, to We methane this aggressive

our carbon Nebraska The Outside we utilities, in make in our WEC projects Thunderhead now segment. good progress service. on Farm zero in Infrastructure continue is to Wind

the add Illinois in coming begins. our about And the in to Samson as solar we project complete acquisition before noted, the end plans of to first quarter. addition, as Gale weeks In infrastructure Sky segment our I the excited Sapphire expect of we’re in operation commercial the

that, to Gale. turn I’ll with back things And

Gale Klappa

you Great, much. Scott. very Thank

we that on guidance can confident We’re deliver for XXXX. earnings our

The you its equity. announcement of January that a X.X%. our from with the And any reward shareholders the discussed, XXth you at Board we’re guidance without seen And represents our year fund to have Directors This As X.X% a by of our our need plan we’ve higher dividend quarterly dividends. may the capital range company consecutive marks cash as growth a to that midpoint meeting to year. recall, raised our midpoint guiding we $X.XX of $X.XX will of to share expect share. $X.XX original last issue

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

in the We’re that be growth continue will right in in of our with to can middle the expect line share. so per you our now, range dividend growth earnings

our and Next with financial up, all quarter more Xia, Xia provide will on results yours. first you our guidance. detail

Xia Liu

Gale. Thanks,

Turning now to earnings.

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

walk the page results significant drivers. comparison of Our I’ll includes earnings through XX. package a XXXX on

earnings, base the our lower compared Starting a achieved for growth increase $X.XX goal grew utility compared to year. Weather to with a earnings XXXX. XXXX. day-to-day expense our $X.XX operations, contributed to improvement $X.XX in earnings we $X.XX in O&M and our by and resulted drove Rate

in These by by were fuel of investment factors $X.XX and natural and related expense driven increase mainly expense, to offset continued higher costs. higher partially a capital depreciation gas favorable $X.XX amortization

In industrial Small iron up excluding large weather-normalized stayed of while and sales residential a Wisconsin deliveries were the in and X.X%, mines, industrial X.X%. electric relatively flat. on increased terms and basis, sales, sales commercial commercial retail ore

was mix our forecast. sales stronger our than Overall,

earnings Our the we sales electric and XX projections for projecting XXXX flat relatively and package. can be of Overall, on Pages found year-over-year. sales XX are gas

Transmission Regarding Company, American increased our investment in XXXX. to compared earnings $X.XX

our related resolution you historical third quarter to we If recall, on discussed call. earnings $X.XX appeals that of the

discussed, beginning recording ATC earnings with going of a As equity. on the quarter previously return XXXX forward, and at are XX.XX% we third

and operation production a the was tax farm XXXX. improved $X.XX in XXXX result end that at our stronger to of wind of of into production Energy driven commercial segment Jayhawk at mainly our XXXX. the as went credits by wind Earnings Infrastructure addition This compared

earlier earnings In addition, the the Pool. recall contribution final resolution in Power in $X.XX of market that Southwest settlements XXXX we recognized a from

energy Corporate is recognized O&M. gains investment segment our $X.XX that on by the you’ll our at see share. we Finally, lower rabbi Overall, Other per on decreased Remember, XXXX performance trust $X.XX, performance improved and primarily in rabbi by and trust fund. performance earnings driven in largely our clean offset

acquisitions page to $XX a cash Looking million Net now were total XXXX, XXXX. capital the million. by flow as increased $XXX at compared in X billion the And operating on of asset activities and statement cash package. increase provided earnings $X.X expenditures

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

let’s Finally, guidance. look our at earnings

$X.XX into on range earnings the assumes reaffirming per the forecast $X.XX $X.XX terms we year last and earn takes since project January $X.XX XXXX, to annual investment for Remember, of guidance, the rest Power of to record energy $X.XX account which share. quarter, for in quarter. to share In per Southwest the of the $X.XX clean the from the favorable from quarter full earned first we’re the our in year, in of of fourth XXXXs weather the warmest first share. weather, and per settlement we fund. Pool included $X.XX normal guidance This And share XXXX our $X.XX per

our years. earnings a to growth next X.X% of We’re the long-term also over X% reaffirming five year

back With that, I’ll Gale. to turn it

Gale Klappa

you. Overall, focused and value Xia, the now we’re Operator, ready question-and-answer track portion of customers providing we’re and stockholders. on for call. for thank our our on the

Operator

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

Gale Klappa

ready roll. Rock Coast? the you’re for West Shar, and

Shar Pourreza

just. the am I my ready West Coast. I’m for bag packing

Shar Pourreza

Just two quick for ones you.

guess, Tranche thinking profile? obviously X healthy X? I past, of do investments increase just ATC, the I additional about opportunities? sense cadence And can transmission with CapEx you’ve maybe spending the increases seeing thinking pretty on ‘XX. the XX which how for uptick. LRTP on you’re were early know as talk the In said you even as as in earlier with you and about Any we’re Just about you this more see current Tranche

Gale Klappa

Yes. question, Great Shar.

satisfactory. that’s if Let the me first, second of unpack piece question the

On of and investment piece region. the Tranche a They just everyone, MISO and level been have the long-term X. through rigorous X to X and sorry, I’m in really have -- about going the again, for set thorough second is completed planning question X Future now Phase Tranche Tranche through X, transmission very process

Tranche it’s seeing now Tranche stakeholder too than at seeing precisely Company that And potentially X a X. American a is what seeing in Tranche we’re tell So greater can in X. I probability you to the X. is you even the of in we’re what that discussions investment X amount opportunity for in I into the little But we’re MISO what we’re -- for so good think Transmission Tranche far Future early tell that planning is

about be planning before like to the optimistic you give they would kind emerge in I of end on process. And as more numbers detail the handle you the question? will we’re kind this that would Scott, to of year So, cadence of that. broad the expect able we

Scott Lauber

Sure.

at Tranche just at to at related the Company process or ‘XX, that looking when how state. up at So, ramp X, a as Tranche here American and on hear lot also, goes. you that’s see look X, this of entries starting renewables you connecting of in -- but we’ll saw the next look When end the beginning the we’ll projects, just and and year really ‘XX Transmission of year to fast we

half increase prior was our about of the X. that along So, year with in Tranche

the So, next expect over going XX forward see to more we’re to of years, too. as I that X we look

Gale Klappa

the related these Scott in are additional of for a part Shar, built will, number if for significant additional term projects the plan an in in of being making just our uptick, that seeing longer renewable under only planning from point. many the projects but development Wisconsin, to is MISO just Wisconsin that’s renewable here. you connections we the are transmission Not to projects hook good need

Shar Pourreza

segment. And think, $X.X Perfect. obviously, segment. just eligible announcements recent sort in lastly, the I this current two it. know you I investing Obviously, first projects, with just this to PTC in the business? then, guys billion thinking for remaining the How more of the roughly other you X-year Got of And had obviously in we now to Infrastructure sort plan. capital, you $X.X wind, PTC deploy Gale, open expect budgeted Thanks. solar think technologies, solar, can in more of you time, or on up about perhaps eligible I are are it billion post plan IRA? which you should

Gale Klappa

we’re likelihood up to big doing pipeline technologies, will Energy couple North project, likelihood, coming pleased projects that little we’re they to earlier. of. other Shar, days solar the Center Solar a of diligence made the just we be the certainly seeing we’re we X a It is given open announcement is the in to be but a referring could it largely in Samson That of in on, ago, wind. due big very what Texas. and you’re part the And

I we thought think add that end internally, solar project the we toward another of would XXXX. all probably

coming little And Shar. in a we earlier. I hope regulatory So, in final -- good given on hope that that transaction helps, final that mentioned, close news I late quarter. to that’s actually approval first the it’s as

Shar Pourreza

good It guys, way. and appreciate the makes you always it, does. I’ll by Scott points, And always see soon. I

Gale Klappa

Thank you, Great. good. Sounds Shar.

Operator

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

Gale Klappa

dog Julien, you wife Good your yet? afternoon, are buying Julien. and a

Julien Dumoulin-Smith

Oh, my God.

God. my update just you wait, next Oh, you I’ll you quarter. give the Just wait.

Wisconsin So, to just really back quick. coming

you’ll West reopen are respect submit scrubbers and for filing, some Oak just quickly. of confident around of LNC? reactions just we that comments how the that that, And plant? recovery same Creek, to to of a considerations attention couple be how any your obstacles prove Obviously, just of transpired of Creek been and think lot are a late. the are talk then And any do here just at unrecovered specific Just can you the then to super to data of about about there’s able Perhaps greater if subpoints, outset, that within reopener? and Riverside, front? you the on retirement or benefits with to equal least balances WEC at what around other see and Oak what’s And

Gale Klappa

I’m glad let’s got you all kind Well, -- it out. Okay. of

of rate walk reopener” any Scott remind the of was kind help if and of But to I that, Xia I about in of Scott were December. try Let’s think forget, first, that me. will Xia, through question, the and asking the decision elements you "limited the part

service reopener So a relating to investment the reopener XXXX. it coming the limited that into several limited will for of of projects cost the XXXX, and over be course is truly is

really them of projects, all underway I are projects renewable we that Scott, All regulated virtually -- here. of are think with them the

Scott, of approved under the by development, got is So, already simply are rates the for have commission. recovery that projects into been reopener and limited investment to and reopen put costs the

Scott Lauber

be specific. Yes. It’ll very

our projects have the system, the plants the some and liquefied in about remarks, new gas going the Weston. I we talked units we of in natural that of renewable some on gas example, in, going have For RICE in prepared

very So, projects. it’s specific

instance, LNG in a For just year the end at in of year, factor the then. goes full that we’ll for

we So, be those very that filing. do straightforward that as should --

Gale Klappa

This ROE. to is investments related no the projects Yes, capital already approved. in simply exactly. the or layer reopener to equity There’s related

an everyone the answers through Commission, just actually hope the Chairperson to backdrop, additional would gradualism. wanting interview just credit that the concept of to think terms and of reputation has our read comments listen certainly you view that to professional wanting in the day-to-day related things is the much that to in Wisconsin I believe future of So, Wisconsin Commission Julien of her of that the some was I as of Wisconsin, encourage regulation made of very And I with one decision she then, general I maintain out be supportive the and of question. the Wisconsin of the the very carrying and utilities did

So, I helpful. hope that’s

all additional secondly, us Riverside, combined and natural the at commission impact built. Alliant data level cycle provided the already asked option terms a the we that then of exercising modeling of time, to on in for on set Riverside gas everyone. modeling of have And is the plant Riverside

that we would time. During essentially with period XXX megawatts the construction book to for a value, option have Alliant process, certain we agreed options two of each megawatts acquire per at those over

And no next hands have days particular And the first we is in the to the certainly this option. matter. XX, up modeling you that sometime the relates to commission take XX data So, now. more their question the that asked in right for expect the commission again, than for

So, that miss didn’t we responds I hope and anything. hope I

Julien Dumoulin-Smith

lot A there.

quick. in super On lastly, far plant, and was and Creek, Just as as that getting balance the just That the recovery current of scrubber unrecovered there Oak one. last just obstacles any end?

Gale Klappa

for Great. Creek vintage Creek remember, book labeled X, four reminding Okay. X, XXXXs into are us. and mean, Thank balance Those and service, I They’re the for older the I older the went oldest XXXX was X. units. Oak one -- are units. The units others you literally, there units X Oak Creek current think Oak

build itself, reopener have there’s is value given So, the because about out subject market. capacity Wisconsin that’s not I you’d Scott, bit, everyone dates million. pushed XXXX, the limited for add? anything a a like But the tight in that been the roughly $XXX controls, part in in the the those the would remind to decade retirement almost controls units ago at base now. major of is that a emission book left. and emission modern book least put The that no we And on value plant

Scott Lauber

we retirements. look those And remember, at when

of O&M $XX of expense $XX that’s fuel less do -- We X cost. million like along million when them all reduced retire, with retire, they also when to

be we’ll looking So, at them.

current of is our think ‘XX. I date May

capacity So is be potentially, plan. at But analyzing now, we’ve we’ll but it, look to got that situation. our the right

the of part limited reopener. maybe So,

look with production cost. of going whole be some end. picture, a capacity, for that of tax When And very reduces reduces this lot at the it’s customers. it you It’s to in costs, O&M there front remember, get we’re and fuel it renewables good credits replacing the

Gale Klappa

fuel immediate the to Scott’s think of closure O&M $XX of on you million $XX And cost that, you about of There’s the significant savings from right. million some get top savings. And Yes. plant. savings.

Operator

question from next the take We’ll Tonet JPMorgan. Jeremy with

Jeremy Tonet

just there Wisconsin Commission. prior little Governor bit you expressed I commissioner the in are the to next And up anything about conversation particular with a might stakeholders that policy to on if could potentially be the commission goals for be has any regards or this pick the next wanted hearing from the who nominee? Governor

Gale Klappa

No.

of major fossil goals, appropriate what and Governor the revolve concerns and no. next since to of and particular is manner terms the that related transition away affordability the which had around everything took be, that concept fuels, any appointee heard, the in a hearing preserves reliability, in has of but change a will pace in continued policy we’re conversations my the really, In opinion we’ve from The reliability. he office, from

guess, not different I days. objectives. be would would in some an of if next shocked nothing will, I XX the announcement, I vetting So, appointment was already say belief the in expect would the is policy other Governor’s thing terms And of you would if our in underway. type We process the that

be that’s the state the an to Republican. governors to noted The close other terms the I commission in the the to been that Senate. same point, appointment Senate all important think the of in course line of hope I confirmed approach to many And that continuing approach of type terms is leads appointees of is decades. remember of philosophy center have helps, the and heavily for by Jeremy. think, of And of over really type all I the that’s has

Jeremy Tonet

of No, labor-oriented some as think just helpful thinking in I we I -- focus policy impression there. Yes. that’s was here. were as don’t just mean different. maybe far be I didn’t that more said policy the under type -- might I

here. come across was didn’t So, but can that that our I we something if had radar, move know along

Gale Klappa

to actually, point, do know, and we’ve conversations had we office. Jeremy, Well, the Governor’s your with

Governor’s more and inside possible construction very more are Wisconsin do under are interested office projects those making jobs the many and As Wisconsin, under is we jobs. state sure as renewable development, as of know the of

saying a not So, what would surprise. you’re be particular

the Governor’s agenda beginning. I think from that’s been very the part of

Jeremy Tonet

stakeholder And extension? from Right. Thank And earlier feedback that. it’s QIP you kind in particularly on and sense this? moving the rider impacts any process, for you the legislature of Right. have Great. rate in but any case along recognizing the then how PGS an here, received

Gale Klappa

what to It’s of with you and recall, will, the would making the filing office PGL rider pretty the Governor’s Illinois, it particular, our our if QIP the, is we all probably making, extend program. Well, return to policymakers, to been in from of the that we that are January filed we preference the rate QIP including announced but as be procedures the intention in a not for capital Xth, the on and investments that through you part position, to had the Shore rider number call, case clear North when that legislation. traditional capital investments try conversations

think internally. about really it this you about a when lot actually -- talked and we’ve So,

process these test a forward-looking in to point that reviews Illinois regulatory First the period. utilizes all, rate out of important

So, forward-looking in period. a even with test going process, to a you’re traditional ratemaking

necessary do stability -- eliminating of Chicago all being why help going to us efficiency the to allow review so aging, rate this so, and distribution the process the So, to underneath Number of because in and terms able a of in systems the lag. allow gas this for actually, method investment. upgrade piping testimony this of as the different for will to again a their the of Chicago. I of course What will make that opposed deteriorating stakeholders about XXXX, the to need think is one. over thing us of actually with for case investment safety positive noise recovery the through two, of it’s the should all there’s going and opinions, voice Number regulatory been be the

to the to which probably debate. take forward So kind look process, we of actually, will look And we forward whole Scott December. the to through close

Scott Lauber

the It year. they’re yet. schedule most currently, seen a even -- would of we -- we’ll And haven’t take just final

So, that out. will coming be

Jeremy Tonet

helpful. very That’s it. Got

Gale Klappa

Jeremy? Is that responsive,

Jeremy Tonet

That is helpful. very

last here. could one Just I one, if

does Just broader Anything currently solar to how with this interest after announcement, market this stand? notable here the latest investment highlight the Samson on transaction?

Gale Klappa

than other went particular really mean, in I May transaction, No, -- there’s construction year. no -- because service facility other than of risk the last into this in

no have we We’ve it’s construction really high-quality a base And again, we here project can And got with risk particular whatsoever. we’re high, really So, think year we infrastructure our to, pleased of portfolio. that our this to operating data really on. diligence again, investment. going add due

Jeremy Tonet

you the on over? how years And disclosed just ITCs, amortizing you’re this many had guys

Gale Klappa

we’re clearly and over, our using here PTCs. investment ITCs economics here. I the And what you that’s or of either credits, with choose is credits is Scott, helps tax spread Inflation can mean, choice eligible, XX-year Well, Reduction be instead tax a which PTCs, production really obviously, solar our Act, will now period.

Scott Lauber

XX-year solar second our period. to adding diversity adds too. portfolio, farm in portfolio And really that

adding solar. second happy really So, to that

Operator

Wolfe question take from next We’ll Sullivan our Michael with Research.

Gale Klappa

Michael. Greetings,

Michael Sullivan

are Hey Gale, how you?

Gale Klappa

We’re good.

Steve keeping You’re straight?

Michael Sullivan

good. All

too. We’re to steal from, Aaron going Rodgers

Gale Klappa

in He I believe. good green, looks

Michael Sullivan

to I credit wanted Yes, start with metrics. actually. the just Anyways,

shaking that for out I Do FFO able year? year-end you a give with the used to top reconciliation have of you Are your think to you ended head? the up earnings. all to debt where give off that of

Gale Klappa

that. ask to a response give We’ll Xia Sure. you to

Xia Liu

provide the data, we and all credit and actual the be we Michael, happy to -- you. longer-term but that have disclosed we’ll to metrics

I think public it’s all information.

Michael Sullivan

a build any updated a release with Just just which I I has then And things get there color out. you to Okay. to of check are been of on and little panels, stand able kind Scott, the panels like of think wanted being target? the assuming like where solar them? bit moving on said where

Scott Lauber

Yes.

warehouse. in to We’ve them the get U.S. able been to able been get we’ve So, them in the

are in XX% In another complete fact, we the XX% about and X the are warehouse, of of the need Hollow in U.S. about panels in Paris Chicago to Badger panels

the So we have panels.

We’re just get Patrol. paperwork working through the them through get to the Border to

a States, but Patrol, a get We’re get the yet. just and few But we them Border optimistic. through to in have panels we starting see ours, to not we’re panels, so the them released few need

serve paperwork have suppliers the and them a already to is get the be with getting good. final just a we just -- miles them all we up. worked out. got -- right and Border Patrol. everything through We’ve put our the away and lined So, back we’re think to of a our matter get of gone developers the But, -- just is it to worked one with the on. XXX site sites panels ready, We lot few to able here, It’s

Michael Sullivan

Great. then, Okay. And last...

Gale Klappa

a warehouse hermetically sealed Chicago. in in They’re

Michael Sullivan

Got it.

And cheaper this that was of we anything environment, current a one to these like Is like none Okay. But I of basis, deals then like last like of Samson actually there function flipping thinking done. you’ve that just location, that acquisition, exactly projects one, the KW the just are about? be alike. know per just nuance should on a $X

Gale Klappa

No.

of at power the agreement, you the the when look AT&T. this think with particular of elements factors purchase agreement case is one I the the price, appropriate or offtake purchase in big

of to value So, Xia, in project. saw anything heavy was overall the determinant that? that want the a we to you that add

Xia Liu

No, that’s price. of exactly PPA right. It’s a function the purchase

Michael Sullivan

you Okay. much. Thank very

Gale Klappa

You’re welcome, Michael.

comes Chopra ISI. Durgesh with question next Our Evercore from

Gale Klappa

you’re fly going for Durgesh, Eagles, to fly So, us? sing

Durgesh Chopra

not a weeks I I’m singer. sleep. they will to actually few a singing win you here. great in after put But That’ll be

a me X of Okay. question you’ve Maple Samson you price that I ask was on Gale, the giving for answered. versus Flats Thanks, going to time.

Maybe So, storages. material and -- just just seeing -- that’s shortage general transformer you we’ve good. are heard a about lot

panels you construction talked specifically talk any the you about generally transformers you equipment? about other materials, But with just seeing I issues being And there, some already in-house. think tightness can are or materials?

Gale Klappa

question, Durgesh. Yes. Great

where of if served thought position Let of well. couple protective of we our transformers. A we we say very ago, our a be a that us were customers franchise and me has order in would pretty this. And did years actually we double

stand. we in It’s a is everyone think feel where reasonably tight. we with kind I of good bit shape

Scott Lauber

we’re we’ve construction those We our the Probably with and working feel are our all We’ve that’s pad-mount suppliers in we and capital like more every the continue transformers. is across But our been one to with week. able industry working good of shape. work. been

but So, we But along Hopefully, it watching up any but the don’t things things for transformers pad-mount some will think there’s tightest loosen probably meter with the everything. here. closely. very watching sets us, have we’re been issues, we’re

Gale Klappa

And so so good. far,

Durgesh Chopra

you’re preorder? guess, think should that I the we balance about you of Is ‘XX? year when in talking for sourced are kind it the of two-year about how the

Scott Lauber

next the sourced year. did that some to was we think just our larger year substations, talking for get Those through ahead is and What some we Gale the out about. are transformers ordered way we the I of we’re time, that into need of went transformers did queue.

So, orders there’s we real ago out of a to get ones, large put transfers. year out of there sizes Those different ahead time.

Gale Klappa

we of were what the reasons just described to projects is fruition development And coming one the large Scott that economic did Durgesh, here.

and mean, I operating and and their but finished and state-of-the-art manufacturing Komatsu new example, For now manufacturing running and up are [indiscernible] was -- lot we’ve is up talked they a ramping headquarters plant. about

which transformer large that projects, major was the require development we sets really of knew number in a which would So good. we prepared advance, for economic

Durgesh Chopra

so I Guys, much. Got the appreciate time. thanks it.

Gale Klappa

Eagles. Go

Durgesh Chopra

For sure. Go Eagles.

Operator

our next question with Weisel from Scotiabank. take We’ll Andrew

Andrew Weisel

think X more than the could five prefer alone you Samson invest on one I but would early, or five-year or another potential phases? is diversify question projects? to mean you in of do to next half some all be the your It’s of the First that budget, here. how about

Gale Klappa

diversification. we’ve followed really Well, philosophy a of

never. say never you However,

of to to any We on expected, continued phases. have that we will confident have the partner as It’s I’m looking we portions future certainly a is X whatsoever. do on if wanted we any And opportunity made be see possibility. those we the certainly But not a decision and Samson open we’re of future phases, performance so. if to at in would

balance what thinking performance the solar, and that see X against and wind both Samson we’ll about diversification, as But, our against region. we in

Andrew Weisel

going that timing to the know we at is when of Do be Samson point? decision X

Gale Klappa

construction we now, don’t construction it’s but date, an I now. under but It’s know in-service have under

max. XX months to So my in the is guess next XX it’s

Andrew Weisel

Great. Okay.

year-over-year of walk to to segment? what The Energy tax $X.XX relate EPS shows total your renewable at here. credits Next percent from quantify question Infrastructure Are positive on a PTCs. similar the earnings you front able

Gale Klappa

what Xia we might can we can of in I at which that. can We you be $X.XX, tell start earnings from investments our what is the investments our in you infrastructure able -- terms to the were. delivered give renewable projects.

So, you you share $X.XX the wrap other a Infrastructure about XXXX we from to PTCs, Xia, the wrap segment. revenues. in in got And for

Xia Liu

the don’t the and $X.XX PTCs. between of is we And majority operating from million revenue, Correct. PTCs have but the breakdown

Andrew Weisel

battery new blending. last Okay. I’m Then in I science other one, Great. the exciting, sounds Thanks. if hydrogen project, can. interested The but your pilot one

on You project? initial the briefly mentioned on to last that updates additional any call were you able Are results us that give encouraging.

Gale Klappa

a Research all February, within Research very think they project on a Yes, the encouraging. Institute main helping of to of Institute, the before the full to organization Power available were have now, both report I expect really analysis. to it equipment, name end were drive the analyze and be scary Scott will project. the said, of the engineers… And the encouraged again, Electric of weeks. efficiency The it, giddy. engineers matter was helping the of saw, Electric report the and -- few what Power And weeks which the out and from as the But, that’s was And next you the we standpoint very actually no we in when degradation that technical

Scott Lauber

the Enjoy project.

Operator

take with Crowdell We’ll from next our question Mizuho. Anthony

Anthony Crowdell

Good afternoon, Gale.

Gale Klappa

Anthony…

Anthony Crowdell

the of papers. of local game you a Absolutely. with I Aaron recently saw Rodgers basketball one some in photos in

Gale Klappa

when apparently him Yes. a to It next was lot and seated are or next to sitting for I being there another, pictures of was other -- taken. Aaron, reason folks. you’re some some

Anthony Crowdell

very hope one I so he out I employees I It late. out was my own wasn’t keeping hate late fortunate. was share, that Aaron of you, all there.

Just more I guess housekeeping questions, Illinois. one on

are timing you on the expires, side, rider, the think the electric you think but when I much if see I plan I earlier an the maybe QIP which entire how to correctly, expired. curious the case and invested. and on spoke side, go I see rate the formula I just the think of not you case. characterize it will electric through then it’s know the company And also good guys on maybe rate commission, there, has I’m parties

more X to sizable right X likely the commission make now maybe has the workload happen pretty cases. settlements Does or rate that So given there?

Gale Klappa

commission electric a under It’s changes on another. has you every of of natural very have plans certainly, as size case believe amount the the the distribution say But through. any to way will company or solid rate formula in difficult and side. course, the I work legislation one get rate the say, to their gas filed and Illinois of

tell. just of clearly, Shore in there I had track has year. lot too this with a be We our particular that a case year more positive to cooking So very Illinois settlements, it’s record think had way I so or to early believe, leads But settlement actually, North ago. a a the Whether will settlements. Illinois

So, certainly realm the of Anthony, all. at not out possibility, it’s of

Anthony Crowdell

in able I maybe company’s gas we’re declined up impact. And these that more at a winter to kicked bill start customer winter couple from have it. have the bills customer as weeks of contracts? Hub the prices Got still mean, left. now, I’m company least gas lower maybe the buying, process stay the mitigate if of capture business, really through is and prices Henry wondering, to just hedging I with until with the more

Gale Klappa

ago. a Well, if about we’re I -- think we’re to natural clearly X.XX our a the around particularly gas months But and strategy to and and third of BTU set customers, a advance gosh, basically for -- where of winter third; third roughly a heating were going we per look mean, today, where season, just of three gas third third, two, third, -- and we a basically look million see at commission-approved on we compared amazing we I market. a spot [ph] you the is financial storage, do I a hedging have in

being So, spot the it’s is materially to bills. off market third customer be purchased helpful better, the extent going that to that’s

Scott Lauber

next that injection. put And thinking process have as about we we year as we start also

following bit a year. in just next may some little be right hedging we now, So, those a very lock strict prices for of to pattern

Gale Klappa

Scott we that gas, rate should the prepared at keep thing futures his that that with able I for one all completely even for looking Illinois. natural in and mentioned And we lower Gas this costs our case -- of that in to market and in be should customer the when be filed just remarks, completely Illinois, is commodity XXXX Peoples with add rates, Exactly. offset base in we bills able to to increase flat in would

Anthony Crowdell

obviously, corporation question, I seems large our last -- I’m if in then, And WEC curious, space. just costs. Great. say with it -- I’d just

a that do where able it been of navigating navigating? a to or is -- smaller how on the navigate some smaller utilities of it inflation really headwinds. higher size? I the the and You’ve rates, challenges? lot need handle mean, challenges big size is to that of factor is scale and maybe And scale stumbling companies that are mean, of you these I

Gale Klappa

Anthony, a view think benefits my that. be in statistic a the that would Xia going ask I’m you great of any to one question it’s business. don’t I to scale. I we are there’s question scale give and underscores about And think

to our that statistic the blow of be of as so the from which after Xia will a point, to mind. will the first full give you acquisition starting If XXXX, Integrys, end look ‘XX, -- back to you XXXX a would your year

Xia Liu

-- day-to-day about the I mentioned is think Gale performance. O&M thinking

down XXXX is a to XXXX, way the year think You projected the million know since we the about acquisition. over $XXX all brought from X.X% projected. The reduction CAGR I

same base a the same at asset north it’s of think time, been X% if year. the So growth over the period, you about

So, rate down asset at O&M. the time the base base, growing same bringing

solid that’s track pretty So, a record.

Gale Klappa

of Anthony, benefits scale. of It just an gives you example, the

Anthony Crowdell

for Well, hope thanks anytime you I have so planning the guys day. I’m Thanks also not time. dog much. soon. a a great

Gale Klappa

Anthony. you, Thank

Operator

Vedula Bay the Hudson of question with last comes from line Capital. Murti Our

Gale Klappa

Vedula. Hello,

Vedula Murti

are you? Good afternoon. How

Gale Klappa

We’re How you? about good.

Vedula Murti

question… I’m A okay.

Gale Klappa

no, no. wanting you to winning. Vedula, no, keep wonderful award and say I No,

You know that.

Vedula Murti

Great. that. Thank I appreciate Wonderful, winning. you. award

Gale Klappa

Right. All

Vedula Murti

Okay. make on multiple rate is and cetera. talk the any regularity if fact associated With over years, to whether and the or maybe of the filings any about -- all room too there I’m ability and affordability can design et things in much is you wondering rate increases to kind topic focus with the on rate investments, or to large perhaps it was to broadly those that customers, that more through thing know past, to it of somehow cost like want the residential of and the the balance service. always to used affordable. perhaps work some back be work industrial, subsidize I perhaps misalignment in

on one fixed of And charge versus the So, fixed wondering -- about secondarily, is wonder there’s a as larger there more to much can any and exposed? perhaps that. the duration I’m away other a being and whether Is you a thoughts I from any or balanced if just of your trend kind that towards around moving variable been to give mostly things thought affordability? make philosophy us means volumetrically using things into charge or

Gale Klappa

will ask I Well, this view his as well. on to Okay. Scott give

Let me to start comes mind. off with one immediately thing that

to We issue. I whole the on innovative pretty affordability help have been, trying in think,

of affordability of And payment on and something trying work the example In there plan, prior case, income an been arrears. we bill whole to stayed again be rate this will the in of started and called issue. where if individuals out actually some then for we’re case that’s how forgiveness on coming a you rate actually fact, it was the low improved LIFT actually help program

that not be see as the of EVs. and to one grow the be at can of that mind. that’s sure, rates to as prevalence the demand therefore, peak we to we thing not across continue to adding of use because is, of -- adding So, prevalence in helpful investment Scott? the the adoption time that terms of we to EVs cost And other and our of footprint, looking comes things I’m continue will

Scott Lauber

right. exactly You’re

had at programs, at in too, we’re economic other looking as pricing past time of -- at market starting encourage added are development. helpful, we’ve real-time we very night. And and has Looking to been always to use like some the and especially get rates people they opportunities, the charge EVs year

and our So, we state evaluate of customers. the good really to for what’s continue Wisconsin

Gale Klappa

that’s helpful. Hope

Vedula Murti

it. appreciate I you. Thank

Gale Klappa

questions, feel You’re taking additional enjoy think Thank if And Always Thanks welcome. All right, free long. our call XXX-XXX-XXXX. at you. folks. part. any you that call have today. to for conference everybody, much Beth the concludes with discussions Straka I Well, you, for so so

Operator

Thank participation. for your you, everyone,

You may now disconnect.

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