WEC - Earnings call 3 2023 | WEC Energy Group, Inc.

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Operator

Good afternoon, and welcome to WEC Energy Group's Conference Call for Third Quarter 2023 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. answers. will After and be conference open to the analysts for presentation, the questions of conjunction detailed wecenergygroup.com. In call, this a financial is posted with information at package available will hours X call. be of after A conclusion this approximately replay the

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

Gale Klappa

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

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

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

release we you for another We reported morning, XXXX. delivered we XXXX remain a quarter strong a As news third growth, of on share. from solid saw track and this earnings our quarter of $X

fundamentals the our business executing customers on our creating for stockholders. and focus of real value our Our is

The earnings with Today, $X.XX an we're share range. in our completing I'm reaffirming expectation a to the also the of guidance of the range $X.XX $X.XX the half -- year is sorry, to upper year. for

As quarter of the always, through final assumes this XXXX. normal weather

news our day the for our the rollout is of Switching now, XXXX through gears ESG big for plan progress the period XXXX.

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

particularly the we between Milwaukee economic factors in seeing in corridor southeastern the and part first the I-XX state, is Milwaukee these growth Illinois the line. the the in The State what of we're also call of panels, to fulfillment spanning massive And this for more new pharmaceuticals is centers from microinverters region. growth centers. residential in and solar data development From and distribution to the even new to commercial gummy region, bears

plan, an expect asset this X-year we as a rise will to X% of new appropriate at we our a per our X.X% to compound grow an earnings annual base to our with share rate package, In financing growth we at rate of continue project a year. fund And year. average X.X%

the As need the with including at in provide $XXX we've by dividend equity plan been equity. employee start discussing programmatic a our plan, include form is million more in to There Xia just minutes. equity, and in the equity for details will plans. growth reinvestment financing of plans you, new the no issuing benefit block our XXXX and X-year plan, plan $XXX in few of million will we'll you with market on

you. a like for quick to also point highlights other I'd few out

next we'll gas great new emissions. the the Over our as natural efficient well example, in transforming modern to and wind storage X commitment plan, storage. power progress make continue generation carbon and as fleet we're dioxide In to a years, generation battery significant LNG making and solar, for reducing

independent the continue capability for to to assure help American MISO, being and distribution needed be new adapting be seasonal security we'll in rules customers by transmission place harden system adding addition, In mid-continent capacity our energy Company will networks. our will put Transmission operator. to

power coal exit assuming years still project end that report plan from I'm pleased of On generation a COX the by And by for of regulatory our approvals, XXXX. calls our front, by environmental the the end X reducing earlier complete XX% we XXXX. fleet emissions timely from now to

with Scott some and minutes. just strong will you is opportunity future investment the highly provide a bright. The and So in long, specifics is executable, few

the below of And at stands year. at force brief look upward look inside unemployment long-running The labor a in X.X% the participation rate Wisconsin economy. trend encouraging Wisconsin's see in as we trend this the numbers, average. an now national continuing we regional And a

As dirt also its are data that the America and I in is of moving in Uline mentioned, south forward its growing the mentioned today, and to ahead companies technology and is moving size and is million businesses its investing Milwaukee. in adding HARIBO develop new case X name, capability, officially of more open to planned gummy expansion industrial is we production packaging speed this shipping, HARIBO doors center and full And complex you're in for plant the double Microsoft plans year, July. and the capacity materials opened I-XX of familiar our expanding region. foot corridor confectionery for new And for planning Fast of not to now Uline south XXXX. Uline, Milwaukee, additional more even new leading a distributor of square North bears, employees. with to throughout by already facility

the need strength the Wisconsin the outlining and economy the we're highlight underscore and for plan. investments our X-year in of the developments potential These

projects, yours. our turn and that, the specifics our for to Scott I'll With our highlights. call operational calendar capital regulatory more over on Scott, all

Scott Lauber

I'd you, with on the some our Gale. to of specifics capital start Thank plan. like

plan. by to billion As the renewables changes. that, XXXX, investment we additional capacity. and With increase last expect billion. XXXX renewable to have of new in we $X.X plan our I'll we in $X.X Gale investments walk you X,XXX compared megawatts noted, to Between invest identified of X-year our through

support combustion of in investment. over additional Renewable share and reliable the plan. In billion reciprocating plan. generation internal to or expect among the $X our This a gas both is we $X.X Transmission turbines engines billion customers, is combustion units. regional RICE our includes X-year service factors. growth and are the increase This projects the ATC plan on natural driving an To spend for

$XXX for gas which have year. capacity for used generation the coldest in also be an the days to of We operations million and natural our liquefied planned additional will invest electric gas natural on

happy details with we reduced utilities, the upcoming Energy segment. at have our conference. EEI our to planned for We'll more our in investments important these share investment you With be Infrastructure

Now regulatory to front. the moving on

the end of under Commission As decision you filings. a the reopener the year recall, expect from we limited before Wisconsin

We also have under law on end of a consistent North administrative Peoples filings decision expect on largely staff's at we the Gas by The Illinois case order equity for our proposed rate judge order Recently, recommendation. update an a November. issued both return with Shore review Gas. the and a final and utilities, on X.XX% the recommends in

Meanwhile, states, projects. a report I'm moving number And of recently making progress Minnesota Michigan the the settlements reviews. other commissions approved to that both rate and pleased on we're on our capital regulated have to

another first at the on Energy Riverside our of natural As XXX West portfolio. efficient in to request our option. XXXX. XXX capacity megawatts Pending to this megawatts of cycle a to remaining year filed add Center generation earlier Riverside approval, Since we you regulatory closed option this million under $XXX we last call, gas invest capacity expect recall, our our adding we purchase combined to

the Paris solar Darien Elsewhere and state, and Parks. Battery Badger the Hollow II work in Solar the on facility continues

we may panels report solar from You that waiting Chicago. a happy cleared. had being in recall, panels those bonded I'm on are release warehouse to final

have rolling to The been are released site. Badger trucks the II Hollow our first and megawatts XXX

be the this to panels end our and year. position released of of all expect in We our by

with Badger into next to II track the follow. this Solar to on Park or Hollow are for Paris late go service We year year early

the to underway into We'll any is you on is addition, end by of Darien service go updated future Solar keep the In facility, on developments. planned which XXXX. work

With that, I'll turn things Gale. back to

Gale Klappa

Scott, our now about just much. dividend. thanks very And a reminder quick

our in to continues top stand growth industry. of the dividend decile Our

recently were we named fact, In the America X in best XX dividend stocks by Morningstar. of

will our next scheduled Board I dividend and year December. for assess usual, expect our meeting our in plans regularly As

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

provide will and more quarter our you yours. with of upcoming plan. good Next financing third a up, Xia, financials information all on our on detail bit X-year Xia

Liu Xia

Gale. Thanks,

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

XX. walk a quarter the Our earnings drivers. third on through significant Page I'll of includes package results comparison

Our $X.XX utility of the third above from earnings quarter operations were XXXX.

weather First, negative $X.XX an quarter-over-quarter. had impact estimated

of interest another amortization and expense $X.XX variance. depreciation Higher and negative expense added

$X.XX than Resources. in rate unfavorable as for earnings. utilities These our were Minnesota as offset Wisconsin growth variances This Energy base increase well to the the for includes contributed Rate-based quarter. increase the more rate interim

fuel of expense O&M day-to-day by improved timing our $X.XX Additionally, improvement. and lower $X.XX earnings in a resulted

earnings to at weather-normalized Other turn I discuss Before sales briefly let the me for our the quarter. segment,

Retail the year. Page and were sales of and volumes lower down XX our was and forecast small find earnings the X.X% package. to industrial deliveries up are excluding this through first the mine, our customers. were our information iron in the for can sales and X driven X.X% by of ore This X.X% ahead usage Wisconsin, electric industrial quarter-over-quarter. Residential commercial of months on large year. sales the was forecast commercial to customers up tracking is Also, You

to earnings in the of appeals. Company, resolution third Regarding at Recall from MISO our American Earnings investment pickup of last was service. quarter from of of projects tax $X.XX offset partially into mostly decreased in third This XXXX. that third wind year, decreased a Infrastructure we $X.XX recorded by the XXXX our by that quarter compared production we segment the quarter placed Transmission XXXX. a driven to compared credits $X.XX Energy lower ROE

to due our interest Other segment at higher Finally, you'll Corporate see expense. earnings $X.XX largely that decreased and

Gale October we for and our guidance share. noted, of weather weather the of As assumes includes year. are annual $X.XX per to remainder reaffirming normal This $X.XX the

already to and turning Gale discussed our Scott Now financing plan. X-year have the new capital plan.

our support to to related anticipated financing activities the details provide I'll plan.

XX this You information find can package. the of on earnings Page

years, common needs. As of fund see about to XX% the to the is you of X from the of equity. XX% expected over funding our come chart, expect from we and debt cash operations remaining from on issuance cash X% the can About next

market. as utilize earlier, and employee into we plans equity a tap programs mentioned Gale market As to benefit the expect and dividend to reinvestment

$XXX XXXX issuance next common range to Our equity billion and for in million the to $XXX $X.X projected over the of billion plan. $X.X million to is X-year be

are ratios capital Wisconsin layers in at particularly thicker in raise. common results thicker, spend. Recall, remaining our The raise equity $XXX approximately of Electric. these approximately equity equity XX% of Supporting incremental represents our million equity utilities

not XXXX This growth supports know, long-term post to issuances be plan credit approximately metrics. only rate, our maintain our a our ratably million earnings at $XXX helps year. but financing capital will you tied plan targeted equity As also our

quickly upcoming refinancing company holding needs. I'll addition, our In address

$X.X we matures X about Over the billion. a carries maturities have million that low coupon. next The $XXX very of XXXX total years, in

billion refinancing weighted risk. remaining average to scheduled coupon mature XXXX represents in just which of under the XXXX, $X.X X%, has However, lower a

grow to In page assets expected same we businesses percent invested to through our capital percent gas faster. closing, is package, assets our time, decline. the of in as the At and earnings shown last of the renewables the in on of regulated in allocation, the distribution expect electric contracted

investment excited opportunities us. We are very the of about ahead

With I'll back Gale. it turn to that,

Gale Klappa

you right, at very portion question-and-answer All ready company much. Overall, of now thank a Operator, call. track we're perform the Xia, level. very high the to and on for we're continues the

Operator

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

Shahriar Pourreza

lend trajectory? you? Or capacity do in CapEx be opportunity every are about the and to the is would what rating gives we So this was related, the I the more Gale, equity conversation raise could she terms increase. agencies think still guide than CapEx obviously, why balance with obviously should you the there. Xia's mean CapEx and sheet of the current layers. now done on obviously how out equity? the year hit higher growth remarks, I dictated because of Microsoft equity by prepared incremental It's the you tend in somewhat guess it through larger to How

Gale Klappa

all, Yes, Shar. first a me and mentioned. kind Well, up that great Xia of couple things let back question, of reiterate of

million rate on thicker $XXX in a I received layers can my the least case raise, situation. at onetime of in equity virtually Xia we've catch-up at that kind mind, over I think as the outcomes, touched look you every and at this, last of equity look because about

to goes at support our about million strong all credit that metrics utilities. of really So just $XXX really of

question look million is plan Xia about the in related months know any beyond for beyond they plan Microsoft that kind Microsoft $XXX equity incremental what's about would probably as their in to develop particular of they're yes, we've capital. a to few put refine being I that capital complex here to next XX% this thoughts? at incremental and the that plan, continue at Southeastern lot in way But look it Xia, catch-up. a to, more developed. Wisconsin. large I capital, of the your is to onetime And further still that what the is the Shar, other going So think that plan We'll in referred answer then as chunk to

Liu Xia

you No, it. addressed

Gale Klappa

Shar, does question? that to respond your

Shahriar Pourreza

of the billion, just Or then is on any sense And $X.X that an that Fantastic. EEI like the CapEx? just update? profile

Gale Klappa

Yes.

through LNG all mentioned larger very couple think capital. to be contributors to a of mean of clearly, will generation you. or of have EEI. years going that walk additional for for I the I first the the in detail the than you kind plan. has outer We'll years. plan Let's there's in think large later and years X-year some specific at But we capital the be I EEI to so breakdown

of years. the more I think increase by couple in couple the transmission of will probably be first dominated the first years,

rise the LNG say this, you'll white X-year plan. that in space of capital X-year no I that there in us. see a plan. is build mean as tremendous build just of then facilities, And generation kind I we as have will we in opportunity and capital we front

Shahriar Pourreza

Got about CapEx? the the of it. that's matches equity, think should right, it And as the with profile we how

Gale Klappa

Yes. Absolutely.

equity match each investment issuance with the will capital year. the We

Shahriar Pourreza

spending segment kind about guess, Or profile a metrics more And about Infrastructure of you our somewhat the I stay reduction, is and sure function agencies. that lack basis? making should big go-forward just the IRA? It's business appease despite in we segment. pretty opportunities risk a of it think to a that to then moving Is it. Got a that how Gale, credit lastly, of there. within on

Gale Klappa

Yes, Shar. question. Great

Microsoft, say, resources in reallocating business, to we see segment. simply opportunity here to first infrastructure opportunity regulated tremendous economic described no we've Let in it that's what capital you. that other our the we're the just lack by by me there's here of as evolving the growth driven But is and growth driven doing

of the to reallocate So this is to potential, we the opportunity the returns is at segment comment regulated really the not any now or enterprise. in in just all tremendous a and infrastructure terms have opportunity capital here our

Operator

Your next with question Fowler Ross UBS. the from line comes of

Ross Fowler

for we So calendar got circled on Gale, XX, my just into [indiscernible]. I've already November get before it,

So we'll get think. quick, there quicker than you

Gale Klappa

be would It well. really It'd fascinating.

Ross Fowler

just me. couple for of mean, DRIP you talked the So about past. a Gale, know, I sort I the in

off my it understanding. You never really to turned

program back might buying of in uptake You've ATM? been equity What's to plan just sort been as scale shares. internal traditional try is I kind of of to be the that of sort those the DRIP that DRIP what what and

Gale Klappa

to $XXX Well, it's it's look are about a Xia good million the I But but to my to make question, program. the DRIP million. right, generally, and a sure years, it's over numbers $XXX will varied

Liu Xia

the DRIP. -- million plans. over is average $XXX to and X million on the $XXX just not the past years It's DRIP employee over benefit

And so what programmatic we call plan. the

it's average, So a on $XXX $XXX million year. to million

Gale Klappa

right. you're Ross, And

shares market employee the both plan. off plan buying satisfy We have been the and the benefit DRIP to

back a else think already industry everybody us is. the in of kind position in simply puts this I So where

Ross Fowler

there's then in those confusion here you retirement sort and maybe change the been should to actually, Gale. those forward, end push deadlines market as coal Right. bring some of And the of into you 'XX. I your this of in end just the say, Got plan

that natural me mechanism that gas Just of do power works you in how thinking me converting and as into if the well? then for that if fits units, the right -- I'm confirm that that those remind future in

Gale Klappa

of all future related Ross, to is the legal power fuel all situations of arrangements right. related regulatory at One is to of of to look the the It agnostic. the the situation future does and you're the absolutely into mechanism. power the it fit all in way

We're coal that which in really et Oak meter to to cetera. from approval new certain to required no already our do bring already itself. modifications up underway testing already coal-fired activity the again, making to the us at we're natural gas beginning plant of for sets, there's regulatory So natural we're gas. levels. And transition major Creek the with, of burn is a We're planning side, at units larger

of continue fired. other units to already natural the to transition Oak units, of the at gas our are coal future is new gas the So underway power Creek the work natural

-- really related related to the natural to but gas. there no regulatory coal transitioning there of no requirement legal is is So or to from concept

Ross Fowler

that earn investment that And through mortgage and that would so higher then ROE go amortization I'm sort of process, that about right? if same thinking

Gale Klappa

That is Ross. Yes. correct, exactly

Operator

Wolfe the from with Your Sullivan of next line Research. question comes Michael

Gale Klappa

truth no Michael, rumor the you're is for Taylor that there? way, dressing the tonight there's By up to Halloween, as Swift

Michael Sullivan

this these rather point. at with No, not

Gale Klappa

sure. as not maybe dressing I'm Or you're Kelce. up Travis

Michael Sullivan

on fair still at to those final it at a a Or this order we're out is say point, cases? where here? we're be going Illinois is could something chance the Anyways, worked case, to in there

Gale Klappa

will will a Commission. obviously. we is Scott, up end Time and decision sense review My final by with probably tell Illinois final a your view? the

Scott Lauber

there's oral of by in and expect I couple Yes. expect on here. think arguments I the end next weeks, November of I the something going some

Michael Sullivan

to in know have And being just Great. for in role of people on this timeline a Okay. in. then ask asking of timing? of you're Gale, just I the wanted your that I lot been terms current kind

was there I of last May think the through update 'XX.

on Janus you extension? Are sense tying to any you'll when do front? with update that yourself Just we... of Or his us how

Gale Klappa

the they're level, I is asked our appreciate mean extension Board problem that. buy to the and at question. an I'm the I Well, for not sure Janus's going pay I

XXXX. and and we'll discussions short current announcement We're an having of next in You're the some Board Scott, May with correct. here very period have of really agreement My with good goes to time. the

Operator

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

Gale Klappa

new I name for now your have dog. a

Julien Dumoulin-Smith

I'm Go all ears. for it.

Gale Klappa

Equity.

Julien Dumoulin-Smith

yet. I'm has second story. it. Love ] and here without Gary got his still enough, it true Fair [

up. So got say. I to That's to I all catch got

Gale Klappa

go. you There

Julien Dumoulin-Smith

dressing his I Sorry, Halloween whatever. up dog all good. It's he's and still for

still Okay. role, fun in the Look, right? to I have the mean always I last fun though you always got follow-up you though, a say. -- -- to and I question, haven't Incre... As

Gale Klappa

having Still fun.

Julien Dumoulin-Smith

that that's space. though, the this, on Look, what's is, really, there's outlook soon can versus clarity incremental. no mean, the their what's a on extent rolling white understand articulated. that maybe that which I addition wanted Microsoft they get how contemplated? the to how their fully Excellent. in how are much are obviously, of good how front the on seriously to announcements further Okay. plan give question plans? more to just just hear. up these you follow some how go Well, to could like things and response I that you just it's in meaningful could go Obviously, other are baked, the just given be, that and how -- fully further you actively I or on well, baked how soon to much sizes much embedded

Gale Klappa

Julien. question, great Yes,

this we'll In additional capacity So that X-year this of for that let's data with continue the in corridor of current about put broad-based And decarbonize you seeing it. $X.X of billion that We're for that I-XX some capacity we've X,XXX security numbers embedded plan X,XXX described need of megawatts really the megawatts the and And talked development we've increase where a you. see it and some capacity. plan and to to to the included support is the the in plan. economic needed goes. X-year development to us our Microsoft we capital roughly Microsoft new of That's couple additional for to new and that development be about. energy around in other support growth plan, center to going but

of on ordering beginning obviously, work cetera, starting the et looking cetera. and identifying are sites, we at But process et equipment

generating will X for of that much capacity much of years capital the that be and the in X. capacity, X, So

Julien Dumoulin-Smith

And CapEx Excellent. the Got I the on other it. update, side just if of can.

MISO think Or gas over fungibility about the versus how you Thoughts also and on it? big all step on guys related a want I First you just and off, a other? Is generation, more does mean storage, that too. big white LNG the a just that, that LNG by here here, have about years. of then One, It's one the just too. this have And front, ATC between address front. those to just announcements further done obviously, on space come front? in that Trans acquisitions number but overshadowed update the I the that

Gale Klappa

space Scott's ask got let on respond -- the to at to Board. We'll There on the question all. No. transmission. white again, no -- your ATC

Scott Lauber

a ATC's Yes. and the When combination the significantly, transmission and regular element you economic at the on we're other renewal in as the about state getting talked system to it's system in system the and it's transmission just putting the renewables, utilities up that Also Gale region. look you then on noted, of putting the of footprint.

put one. out think increase So $X maybe you together about a was all it from plan XX-year their you I saw more, came it also the just capital it's and and billion prior significant and

So executable good we're and growth, capital Transmission that. just of Company, good XX% also at American

Gale Klappa

from that my discussions, here some facility. in Scott, of transmission aging capital really And is upgrading

Scott Lauber

were put Exactly. of those It's facilities older that years renewing ago. in some

Gale Klappa

Does your that question... answer

Julien Dumoulin-Smith

the storage? And gas

Gale Klappa

storage. the gas Yes,

Scott Lauber

had LNG Oak the LNG of Creek there have challenges, system, putting Yes, that that having at just the really is making day. was we plant like in actually the particular Day units supply tanks over we Wisconsin state LNG the our gas capacity sure Christmas weekend, the helped South gas the really storage, those and and

state that having very cold So on days that going to we helpful very when is of be the Wisconsin capacity. those in need

Gale Klappa

to issues. that, don't gas major here another ever we right. a exactly its into gas like But go on direct capacity there very we to through lost networks, we in. pipeline Wisconsin rolling is as Christmas some to about was significant of inject transmission have our we Eve LNG of I that storage If distribution gas could blackouts, add would bring you we mean, to right went a And real Eve. had XX% want into did had not. we know, cold Scott the and through had country just last parts many snap Yes. Christmas hadn't

and security, degrees to doubt that So energy when flow to lights keep gas times there's in on and XX to need We Wisconsin. keep capacity heat in to particularly at XX gets the on X. the mind that it to keep have for below our no and

So we're this we've what rationale of outlined. a investment accomplishing big a big that that's with part

Operator

Wells Your next with line from Kalton question Fargo. comes the of Neil

Neil Kalton

fun day. Halloween, It's

down well is here. all So

for one question quick you. Just

CAGR, in you that assuming EPS think So are the earned in you just years? allowed I changes X%. X.X% the affirmed And over to to forecast X the any curious, ROEs

Gale Klappa

basically we're quo. assuming No, status

Neil Kalton

my Okay. That question. That all. is was

Operator

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

Jeremy Tonet

there. to role I IRA looking more. was a Halloween could much you $XX.X allows debt with little of billion through Happy this just billion us if maybe to on? plans, your And from quantify And as tax in to bit any is transferability much transferability walk of financing the specifically the you tax $XX.X how incremental kind operations, sense in take cash how there? credit to credit

Gale Klappa

positive coming Sure. transferability overall to will cash tax in the significant that a of from thing amount a details. there's for We'll credits our of ask sources. give and say very Xia? Xia I you the is cash

Liu Xia

Yes.

either or own the part to will for FFO. third in expect parties. your to the credits we point, X-year we between tax the use of part So to that's And billion that's $X.X of -- our $X.X sell some tax plan, appetite

Jeremy Tonet

kind just with of equity I the earlier, Got all wondering, provided you And it. then in That's guess, on, your wondering but looking metric together. this to I rates? the for are thank same? to of or helpful as forward comes kind all Is here plan, continuing you well funding color getting is look general. the stronger just balance Just there. metrics that the this offset sheet how you higher

Gale Klappa

day. Getting stronger the by

Liu Xia

I hitting to good credit next -- the the looking visiting down. metrics. the forward We rating agencies the conversation to sitting them. Scott week. look and We're Yes, we forward target feel about are with

Jeremy Tonet

that about, a as we it. think one. variance that, does into then of nonrecurring Been lap And here, realize O&M your kind XQ impact last full the results look we we guess, Got I $XX to outlook I guess, there? quick XQ expect better-than-expected should XXXX how positive expenses how million O&M forward real O&M, maybe just we And 'XX? into as from this in

Gale Klappa

give let had year. Jeremy, moving be repeated won't and last lot you Xia QX a Well, we'll this in of view. Scott year and pieces their QX that

of There think at QX of levers that a and you've to already it to year different XXXX or folks. we're I initiatives pass in look XXXX, whole. close onetime and that were came $XX So as got million to different in

I again, -- mean that the deliberately, bit of at O&M last actions were I happened we I So look fourth year. things that would in distorted quarter numbers think that a the because took the

We've a So all at a bit it been that's again, still fourth our little would Xia? I very And look in projecting more holistically. minds, year, strong very quarter. intact. much

Liu Xia

Yes. Not much to add.

quarter, we a I have unfavorable little a last of fourth little think bit bit weather.

a that's hopefully, So tailwind.

We have rate base increase.

We have fuel upside.

very a have We quarter. large O&M upside fourth the in

good projections. very quarter feel we fourth about So the

Operator

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

Gale Klappa

you the night here. dressed for and Happy Halloween. up your dog got Halloween Have named

Anthony Crowdell

no, guess, excludes going curious, Slide daughters Capital quick Scott's Capital. Or of we that growth pets. on XX, Deferred X great housekeeping think When asset. are require funding by earlier, Westcon But to footnote that just the by also The just, ATC ATC no in WEC? maybe just I is No, at a And comments does enough. overwhelmingly detail. self-funded? the

Liu Xia

Itself, it's than more self-funded.

So the down us the send in uses. the out we billion we what cash positive. net is in also they excluded sources, we versus But the $X them, the to net-net cap, a netted the send

more So themselves. self-funding but they're self-funding than

Gale Klappa

from We ATC. back get cash distributions

self-funding the It's back owners. to cash right. exactly is Xia plus So

Anthony Crowdell

current now so their meeting looking that assumption I you're on agencies, just S&P plan but front to wanted the sure the you your think assuming, I'm I I'm your you a I has run concerns? if check double negative could rating And Great. outlook. there. not with -- right to with focus will Is resolve on

Gale Klappa

couple of a Well, things.

on all, outlook. the First utilities just of The stable. negative is parent to clarify, are

sure to issued not and that. that plan the new viewed to to everybody XXXX So Scott, Xia going their support any but we we this you Entegris. think thoughts? of since be remembers make think just And we're secondly, growth want then the issuing fact I your when let will view, quite will Scott did we we've give be Again, equity favorably. acquisition share and

Scott Lauber

down You're the haven't Gale. next plan They exactly And with right, them we'll week. sit seen yet.

think So metrics sense our overall. year until and we really through out just judge thought then decision. But And year. actually walk it when the the them to see well growth they credit by complement with and it plan roll made it it, I it's the to capital hard we we

Gale Klappa

Xia?

Liu Xia

the opportunity the Nothing to more appreciate add. to talk We down and details. sit through with them

Operator

from of comes [ the with Landenburg. question line next Afri ] Your Mott

Unknown Analyst

beat to dead that horse, to program the FFO XX% range XX% the you've a sort of to land Not where terms of do investment that new you targeted? but roughly Are in you Yes. equity additional debt? in and with

Liu Xia

No. package, -- I part of think included. We we it's the

we're to Moody's. XX% XX% and So S&P by targeting

Unknown Analyst

Right.

range equity and So do then terms -- that in the you additional investment? additional within fall the of with

Liu Xia

Yes, absolutely.

Gale Klappa

Yes. Yes.

Unknown Analyst

Okay.

Gale Klappa

idea. the That's whole

Unknown Analyst

then terms future Great. not terms coal bill the of even I of of impact of likely a contract, sort just customers. it's of your -- in though it on power And that. wanted exit, in will to sort confirm in the have

have do need So commissioners? with you what sort to the of communication existing

Gale Klappa

Scott. Well, go ahead

Scott Lauber

because plant O&M we it, at to with the the when at the bill the running we're won't from look same really you get much it, a of just we coal. impact going when look output don't So with have you associated see

gas. you price a Natural it's more whole is of what to the the would to gas be that's but a change natural but $XX, game different go fuel coal of eliminate with and coal. So going thing same that's -- real up issue the is

to capital not investments at a conversion. They're look just capital the you doing in put projects operations, do we're smaller burners. when new the I don't that there's to So think of lot

putting we're also. burners fact, some next we're some doing and new this In spring, in fall

Gale Klappa

add least Scott to just making And what to this our in now. couple from natural on convert you, gas plan is for to one a mentioned to to Oak years at Creek at of been units newer that's the coal

an we're to we're end track XXXX. reduce to in effectively discussions with commissioners. on XX% extensive the reduction understand to of importance goal, by the continuing So is which achieve. cost emissions. ongoing we've the emissions had COX COX of remember, And what understand They trying achieve, our They

not the is concept anyone this in a state. new So to

Scott Lauber

EPA rules put think expensive and put to And you something do be on capture do when or once in the was capture it coal, you with it. carbon carbon where capture and would have about going hydrogen forward, you if extremely the you'd carbon

we the at what's So in efficient looked long term.

Gale Klappa

And fact. more one

Those it's those Creek of units units think incredible Oak are the operator because but I on, how efficiency only across of the help very the footprint to new Wisconsin, important keep days critical transmission on the the asset in their Midwest an in units of most those not lights network. connection to because and remember Midwest.

life important So we that a period a much do on to for very do We're need asset what time with the to of emissions. lower continue asset. to track of long

Operator

today Paul question from Associates. line Patterson last comes Your of the with Glenrock

Paul Patterson

Good greetings.

what Wisconsin it cetera, So inflation, might terms rates, -- just and in in with the guess, back new rate et is rate base I obviously, expectation changed you growth, have Has of interest or? see? whole the to that outlook question, to what base changes back customers your guys regarding Illinois rate the

Gale Klappa

take Not state of by state. it really, let's kind but

pipe In is Illinois, current in rate the our the in review what upgrading in system investment no we're Chicago. gas pipe natural under delivery level of change system, proposing the really

a pipe million complete about to get continue can investment upgrades we've aging XX%, network. So work and year. year at a that to do XX% That's we about Chicago. We're city been about corroding inside the with we're proposing averaging the that of $XXX and the about million $XXX pace done of upgrading

in our So in gas, commodity costs in coming we're Illinois. flat of expecting for winter coupled rate increase decline even rate fully the remember, review in this with with customer -- approved, bills current natural Chicago, if the proposal and

to essentially, this the we've demand -- me So in growth think to plan been to still underlying Scott Wisconsin, see in change really in Illinois. rate seems the we pattern doesn't that's load expect growth, And saying that and the be the least case. increases inflation-related Wisconsin we the again, with fact

Scott Lauber

look And it. here Yes. of we at as plans the continue timing see out to we'll and the roll

it forward. So approximately will inflation you think inflation, I as be go

Gale Klappa

hope responds. I Thank Paul. that you.

questions. Thanks fans. call for All your our right, participating. this conference for much so Thanks Well, for sports concludes today.

and feel Take contact of you additional just Beth forward seeing look any weeks. (XXX) Straka. free be have we to reached She a at Phoenix care, can XXX-XXXX couple everyone. in in you If to questions, all

Operator

This concludes today's conference call.

disconnect. now may You

WEC Energy (WEC) 31 Oct 232023 Q3 Earnings call transcript