WEC - Earnings call 4 2023 | WEC Energy Group, Inc.

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 Fourth Quarter and Year-End 2023 Results. This call is being recorded for rebroadcast [Operator Instructions] In conjunction with this call, a package of detailed financial information is posted at wecenergygroup.com. A replay will be available approximately 2 hours after the conclusion of this call.

Before the conference call begins, please note 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.

reports, assumptions statements, factors Energy cause factors Form and the connection to, Group's actual to Securities XX-K the the materially with described subsequent contemplated. results addition to and Commission from referred other in latest and differ In Exchange with those could filed in WEC

reconciliations will earnings unless otherwise provided noted. most During conference it materials the share Gale for pleasure the directly per WEC in on company share, posted the earnings to financial will introduce be of The call per comparable GAAP also include discussions, referenced based non-GAAP information. on call. diluted measures This Energy its website Group. Klappa, to is this Executive Chairman now And my has

Gale Klappa

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

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

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

from you noncash earnings adjusted we morning, full reported share. as release a this our XXXX Now $X.XX $X.XX share. of excludes a year a charge This onetime of news saw

the Illinois the costs investments the in were necessary centers that that time, in recall court. prudent. the improve will Commission appropriate employee at construction we decision to Illinois in may You facilities that allowed We productivity. for believe firmly November, service modern appeal built the Commerce and we safety the And and and

measure, our execution with will capital satisfaction financial for you the a Xia more we every solid few report in just on delivered metrics customer that in moments. provide detail another to pleased meaningful of I'm steady results plan. of XXXX on to to Despite year financial virtually performance, our setback Illinois, from

The Commission other approved in to matters. regulatory reopener limited filings Turning our Wisconsin December.

our of been for Safety now for a are rates effect rehearing of has And portion in scheduled a Illinois, utilities. limited our all Modernization Wisconsin Program. New in

year. systematically As program Illinois old Chicago. been complete the cast We've project XX% leaking a Commission in is approximately of least Commerce the under reminder, ordered pause replacing streets that long-running This pipes a X for at today. iron

to We million XXXX. in during safety approximately these upgrades, had planned $XXX invest

not envisioned. order, limited honestly will do out opportunity the the program in best the rehearing. our stopping the Given months be Chicago is another believe customers. that will commission's we carrying in we We But interest as through to not work of this have our make coming case the

of This month state Illinois In the addition, expected now. future X this across at to complete. a least examine Switching docket gears year the gas, of the to Commission new to will Illinois. open review is take

investment Let's our look of at needs broader the enterprise.

ESG refine through period progress We our for map, you XXXX. plan, if will, XXXX the our continue to road

the we're capital lowering expect, you'd But As Illinois. investment picture our is in growing. bigger strong and planned

Energy WEC And today, to $XX.X electric seeing increase was WEC largest What $XXX a and the X-year now totaling due The we're pipeline. our focused increasing our in in a million. is diligence company's billion X-year support on That's is our growth the plan billion. projects. economic in plan history, that $XX.X projects categories, we're by plan, distribution strong Wisconsin are X our infrastructure

major approximately $XXX In now for project final fact, getting portfolio, investment million. solar stage of a we're in another our the XXX-megawatt for infrastructure

range. keep plan blocks a our in support building rate. our X-year Overall, the second to Commercial you year. the of basis, of plan and from Closing operation place We'll long-term Growth our on X.X% clearly updated capital informed. average the quarter annual remains compound growth this could in take X%

our with XXXX guidance. starting of we're always, As the midpoint

majority least at year for XXXX estimate. as The of Illinois, redeploy consensus reason projects is capital, the full to for or at the quality expect investing service we XXXX. we in in, below will be simple, not away current However, come the earnings in the we're from temporarily

project for earnings in with year, X. just Xia a XXXX, range more the this and for provide to detail So moment $X.XX of be in will or you we a $X.XX share, to

about One point final our capital but plan. important

our continue As Economic business a Infrastructure percentage reliability be base. years X will now, it of only the are well. we But than segment asset from of decarbonization in expect segment growth. the and X will the We investment X% that years total larger is regulated plan enterprise, Electric now our today. as infrastructure be development, driving from to our

a average. at turning some now trend here stands And as the exciting national That really below discussed, rate continues long-running Wisconsin state. in seeing developments we've in X.X%. And regional to the unemployment the economy. The we're

Wisconsin Park a heard construction build. Innovation of continues the of on Microsoft's to about acres total plans data complex. investment That of purchased major Milwaukee. Microsoft a and south is underway has in X,XXX now already center property You've

like companies expanding Microsoft Uline alone, course, are what Of well. call as footprints HARIBO the we didn't their I-XX and Corridor, in

Uline North third to the example, For office not expects XXX creating space familiar the shipping, is name, more in leading construction XXXX, to Pleasant for Uline and plans Prairie. workers. materials announced a America. building additional than in Uline, with just packaging distributor by you're for businesses of industrial throughout complete case

specifics of manufacturing Scott outlining the regulatory our all and plans sustainable company former we're build And for facility the plan packaging underscore progress in yours. XXX,XXX ESG capital square on calendar, economy investments and And and plan. of Wisconsin to developments the These Pleasant the with highlights. Power our FortuneXXX that our Scott, week, operational paper foot over just and last highlight turn announced the materials, site Plant. X-year our strength on potential the that, I'll our Prairie the more for need WestRock, a call to produces a

Scott Lauber

on start like I'd the Gale. some updates regulatory you, Thank front. more to with

into this are investments. The months, certain in facilities, file after review let's Public to LNG December. These equity the test investments on the XXXX. up service a generation going RICE In XXXX address reviews stand and of new capital not written layer Commission's this projects return past rate filings also First, The consideration, Service Wisconsin plan for renewable reliability of orders for part and we where as XXXX we years equity reopener the recovery in and and for Wisconsin this proceeding. were coming year.

on Chicago. heard developments You entities that driven in Gale granted Program and XXXX. relates The by million our the in work, mostly request $XXX progress emergency of rescore This Illinois. rehearing from work on is to work city of like latest limited in focused commission a the Safety public Modernization has to us

an X. to June We issue commission expect order by the

to Now turning plan. our updated capital

investment million our of today's to I'll X-year changes, for the initial through capital which we the in compared for call. summarized walk $XXX reference We the have identified provided version slides your plan. of you additional are

returns we Act, the notably, Infrastructure solid investments while new our providing credits Inflation have to long-term take Most tax offtake Energy We're portfolio. several production agreements. Reduction in advantage under included through continuing of

projects these on expect to already $XXX our and We million approximately add to way. plant, our we're

last project $XXX for XX% investment Just XX% Texas. ownership in a the Farm, project, on as we of solar in We farm now we incremental now of have Solar total of another Gale million. mentioned, Samson And own the operation sites. closed an month, their major in Northern

investments, million, the better in these Wisconsin our X-year million by is This regulatory We you economic system see in received spending reliability $XXX on the Delivery Illinois November. state. decrease driven and $XXX in over development increase period. by we support will in planned investment also to incremental Gas plan a to the the Offsetting order

and affordable, a reliable Meanwhile, regulated projects clean in energy. support on we're making of of number good progress

no of We way the well continue to ambitious toward greenhouse work XX% of a our reduction we emissions the target carbon in to low of a from puts us goal That XX% end electric XXXX. in our for reducing toward reduction XXXX, portfolio generation. our At we emissions. XXXX, generation, build carbon as on end by compared achieved gas and

final the And project Badger Hollow continues. in service, panels the Solar of are now largest solar completing Park Wisconsin history. The the in progress

XXX own wrapped and phase our at Hollow. phase December the recall, at you'll of online solar first in XXXX a Wiscansin total of capacity up XXXX. end of Badger second went The megawatts the facility's As utilities

on demand be meet solution our addition, supply experienced This facility well in as generation. gas surface. Creek natural storage provides like In weather extreme mid-January. customer as power necessary is to during storage will now heating, a for Liquefied Bluff for we peak needed LNG gas events,

our to a pleased announce in gas been that also we of portion goal. gas to reduction using we I'm replaces natural methane renewable natural customers, This contributing have distribution while traditional system. deliver to the our

start to materials. the pilot this project recall, this is with year. underway. environmentally Energy a Our later with made to EPRI sharing CMBlu We latest a battery the is And year. It's look strong forward industry also across testing you'll long-duration as friendly results the and

fundamentals capital focus of and plan we and that, is robust Gale. continue the to the With executable business. turn I'll to Our highly things back on

Gale Klappa

very you much. thank Scott,

delivering our increase seen, underscores higher as an confidence this with Now mark share. or shareholders $X.XXX will XXst dividends of the a be consecutive have dividend is out increase policy a a paying of and consistent you That's of This in that Board in to The XX% sustainable XX% with year January rewarded meeting our $X.XX earnings X%. raised may dividends. will the our at our share our quarterly bright, future. to

Index. We dividends learned being WEC our S&P's added quick their raised that other consecutive dividend Dividend for XX on Aristocrat least made have One to is of exclusively This at index up is companies of note High growth. track record last Energy week that years.

plan provide on will and financing detail results, Xia our more with up, guidance. our you our XXXX Next Xia? financial

Liu Xia

Thanks, Gale.

earnings. to now Turning

charge earnings per Illinois, $X.XX. impairment in $X.XX share share the adjusted our were Excluding noncash XXXX per

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

estimated Weather utility XX% with impact Starting year-over-year. had our operations. negative an

of and XXXX and These expense record, than year. February added past expense years. more the January, depreciation offset variances amortization during over the fact, variance. were another In of negative Higher warmest $X.XX were the XXX and unfavorable December on interest

the Gas Rate-based rate base that was variance of positive $X.XX growth rate the year-over-year. includes XXXX. Peoples effective as well for and for Minnesota This December Wisconsin our as increase increase utilities, contributed X,

$X.XX. a O&M in resulted and improved expense our fuel and improvement other items by $X.XX. benefited Additionally, $X.XX earnings earnings taxes day-to-day by Lower

the we were X% to than XXXX. manage a our total tighter day-to-day XXXX range. be company originally able guided Remember, year, O&M X% to Throughout we to much to higher

XXXX. ] than O&M was Our actual XXXX company total X.X% [ only higher day-to-day

Sales. to now Turning

the Residential down Page Industrial deliveries ahead X.X%, our decrease On details The package. were X.X%. which industrial by X% the and increased the which iron electric basis, our ore see Commercial and mine, on in in and Small Wisconsin, Meanwhile, XX a excluding were weather-normal down was of forecast. driven commercial earnings sales of You'll retail large XXXX. sales, were

Our found package. XX of the sales and on projections Pages XX for be XXXX earnings can

Overall, growth in year-over-year X.X% sales we're projecting and relatively flat year-over-year. Electric sales Gas

decreased $X.XX that improvement last from to $X.XX earnings a Company, Regarding a pickup partially was related Transmission investment compared XXXX. of investment. our reported to a This earnings in MISO American resolution offset year, $X.XX additional we capital Recall appeals. ROE in by

Earnings our performance that earnings segment mainly by Energy and driven Infrastructure to in improved share in at driven decreased XXXX. interest basis you'll production increase on $X.XX our Finally, tax see $X.XX, by 'XX, was expense. $X.XX in credits, increase by an an This segment Overall, in primarily we XXXX. our compared other adjusted an per at Corporate improved

debt have and we're the even previous funding Scott plan, Consistent increase X-year refreshed In our accordingly. equity. message, plan between increase we out capital an our have to funding with our million light our split this Gale $XXX capital Now laid with plan. and of revised

As of next billion of see and package, issue XX expect $X.XX Page equity $X.XX you years. common to between can billion the now X the over earnings we on

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

new turned use employee plans, dividend to we and also reinvestment equity the programs. and We at-the-market to expect satisfy on have benefit

is Our $XXX for still range million to be million $XXX common equity projected of to XXXX. issuance in the

will tied be our ratably capital at year. plan, equity million Post $XXX XXXX, issuances approximately a to our

guidance. earnings Finally, let's look our at

in providing for guidance we this timing stated, In to Illinois expected year share. several of and full development. Gale XXXX, from lower guidance developing per $X.XX earnings loss of of into consideration the we're base As $X.XX projects rate the took under range,

nonfuel expectations. Now discuss expense day-to-day our let me briefly O&M

operating the O&M XXXX to X% driven the recent X% were and that Approximately extraordinary in of January. X% cases, remaining X% Infrastructure increase is inflation, in costs to expect rate assets by We The included in by Projects segment X% offset is higher. O&M efficiencies. of largely increase by our driven be to storm

XXXX for well ago Looking in O&M our expenditures X below is the bigger our picture, projection at O&M years XXXX. actual

first range weather $X.XX in rest we There of per $X for In guidance, the earned $X.XX earn earnings This Recall January year. the into share. that weather quarter. share project drivers the takes terms the to for we in last account quarter. of forecast are per and main the normal to per first of share quarter assumes couple XXXX quarter a of

One, weather was QX unfavorable in last by year. $X.XX

for with the Peoples rate normal be usage Gas, this heating and natural the revenues the latest when quarter first Of now highest. remainder order, we months, changes the year. course, base we're quarter at Two, weather fourth under assuming the is will design the commission expect concentrated in of gas

you from more contributions in details lower with year as expect we Correspondingly, Gas We'll QX. and provide the progresses. Peoples QX

With in that I'll a decoupling have impact. As mitigates it Gale. turn reminder, to back a weather we in that, however, mechanism the Illinois, place

Gale Klappa

you the call. portion now much, very ready operator. the of thank Xia, We're question-and-answer for

Operator

[Operator Pourreza Partners. line your first Instructions] the of Guggenheim question from with like it comes looks And Shar

Shahriar Pourreza

very Gale, one EPS -- to so this have year-over-year. you X.X% is just [ clearly from the the the growth $XXX a a and obviously growth tight CapEx And on year million $XXX about guidance ] debt that's 'XX, mean, quick I timing. obviously for million

be EPS to of kind you you bridge at given to X% that should deploy we term above pace top you say, step-up and or let's As kind growth which we grow in within able of into target? the in back the the just may 'XX, X.X% at end not the kind half, keep to Or capital? range near a can end bottom assume of the

Gale Klappa

Shar. Well, great question,

Let this. say me

of lot of a have great lot We levers a and opportunities.

probably course, as XXXX script, XXXX, redeploy, early away pretty $XXX land, me the but million, really it's Illinois the as in driver might would if the in in about make is Illinois I guidance, from entire we rate so -- end we levers redeploy the projects, exactly recovered opportunities in we have of range the let we're hit our from timing to able the we too and that And virtually to of say order. were and we as where this, into mentioned say here. But top quality the XXXX we the optimistic just have

beyond. So investments here on we then mean, that But growth. things that we're perspective And opportunity we will in -- I for 'XX might tremendous again, with help put just will we ground, XXXX. have on appropriate what drive seeing work and for the

Shahriar Pourreza

do anyway shuffle, is is profile on of you you the spend that that segment, opportunities just was of Gale adjusted Okay. about then regulated was Perfect. since that shift especially there all was guess, the S&P, Got of can earnings higher any the side? whether infrastructure it. talk that the And sort then And Illinois, above what into segment? the sort from just concurrent on this $XXX I amount that million reduction and to target that? than accretive basis in the related infrastructure returns just an for

Gale Klappa

higher we reduction seeing, segment the the of the regulated virtually business of We your We is look million allocate we an what forward. in of don't that all like capital S&P virtually in know Illinois segments, to spending assumption reduction returns as Infrastructure all you're on Yes. question, than answer that to slightly business. our do. piece $XXX going But $XXX the first because million various going target just is

all So cessation to that's virtually of related the work.

Shahriar Pourreza

it. Got Okay.

that sort for S&P there -- independent of obviously, of be into How play S&P by a docket obviously, but does that to needed and this docket? just there already was then lastly carried out of an just And investigation, kind conducted out recently that commission Perfect. new there's sort that new this study Okay. where me. the out. there's program the engineering It's the was proved

Gale Klappa

ductile Yes, frame, we correct. Shar, and there started Remember, cast on that ago, firm, of the number particularly replaced. program, be to highly in of condition time believe miles ordered a firm the assess needed iron great A years outside were this bring exactly X,XXX memory. of pipes Shar to Commission Illinois engineering under us Chicago. independent iron it XXXX, out engineering recognized iron we pipes to is an the XXXX,

It's that was in case reintroduced That at material XXXX, on iron was if conclusion more study, useful take itself, old have January pipes less XX past commission the Kiefner with fall. called a than KIEFNER. rate life our a data. to intervenors short, this of which file the concluded study, it. than something of look by that remaining the It's of of the Kiefner to long years. But commission delivered in under wants XX% story the was as pretty The stark. Chicago dismissed anyone was It remaining

guess I aren't comment coming. the the getting any on that on only corrosion my is and keeps pipes And younger,

So accelerate a the very the and from we to and Safety these underway. really think Federal there's the record that the continue is basis we've on memory, got of from pipes. of of need great the for had safety continuing supportive standpoint call solid Pipeline the from you But study reasons, a to safety Administration replacement work

Operator

And Kalton Fargo line the with our Wells of from question Neil comes next Securities.

Neil Kalton

reverse a were of that not additive it into on the at play, So allocation question think should quick that that come we're we on question the necessarily? seeing at program. on up or $XXX initial about be capital S&P the some If back the how -- of point? million Would that to Would following what we sort today point?

Gale Klappa

on Neil. of be say, you because to as simply all, to would in pause least to I'm his capital me safety. some view wouldn't And would the of ask come well. currently continue going That's if need it of give on at to that great first surprising, this back question, Scott a is I Illinois the

is X% to our X.X% of the little growth spot still a more is a it at broadly, sweet Looking year. view Neil,

So we see, we diligence have due we have stage. of Scott? I where think stand -- have that of in those that as But said, Scott are infrastructure have investments final million in we Scott, in we terms to dollars hundred pipeline. the projects additional now several

Scott Lauber

S&P No, about the absolutely. here. unfortunately, you the when doing think X,XXX of stopped year end program, And then at the about work workers

to on up it So efficiently, takes, it ramp while take may depending too. a long how it

get would re-hearings. you evaluate as we'd these really So or we hearings that -- through

Gale Klappa

making dime. Yes. a is just turn Scott on you a on point. Actually, mean I can't great it

with or of So if aloud the suggested year, need said last review if order be the wouldn't do you investigation all their if information even yesterday program which turned they the a think full that for the thinking on program so expedited could of with proper out commission indeed, welcome the just indeed, if Neil, but be year, also year. to it it But that. this its could back to would I authorized the level

Neil Kalton

thought Got And million the entailed it. equity notice. we guess one coming quick would think curious just Makes sense. $XXX through program. million little Couldn't CapEx drove to a but had one be what more do follow-up. that? for one instead that. out added help replaced And I I Obviously, the $XXX you've

Gale Klappa

continue to some we that information, in get in going corridor to the question need additional about. there's particular No renewable as need more growth, Clearly, investment. to the Neil, distribution then be there's Yes, about to we detailed that. some need. And talked economic support additional also and granular the I-XX

script, all corrugated and by Atlanta may a And expansion XXX,XXX things, the really major recall, with in in mentioned plan. all WestRock driven by Wisconsin. as a X based the production just continued But called location. company you box the another were investment those So regulated I

growth is economic I amazing. would anybody. just encourage So the

of the amazing. come to are The In that literally on in the the seeing seeing invite in corridor just expansions you future. we're we're ground going that economic here I-XX growth, fact, to we're all not-too-distant what

Operator

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

Jeremy Tonet

with guess, back a jurisdiction conversations ? the expected. wanted Illinois you here? current to longer-term And regarding regulatory Illinois lower-than-expected overall how for the have And stakeholders Gas[indiscernible] given Illinois Just to view, kind than case and in of is outcomes What's from the been here. I come your trending outlook rate ICC

Gale Klappa

as we X are there now clearly, stage. really move are think beginning of through see significant a a because I to that absolute we're going importance XXXX more Well, lot very evidence in dockets their

least the of future their year, in will when our the beginning we take, this Commission The review the Illinois. then first look modernization authorized also of the look occurred a gas safety And at which start think, yesterday, program. just state at, of they're Illinois of at

back all Actually, encouraged will we're there's standpoint, pipes, we're discussion the earlier, of by an across And safety looking kinds productive forward dockets. from of say the and be when all just going you both open, in talked have cast who I about life XX opinion it, a them that these particularly step dockets. intervenors think parties, this. with XX% less simply that these remaining a about these of we of Because fact have than on to where would board, that both fact the there from iron broad-based of to be evidence years.

of the want too standpoint do important economic I only Energy to the to supply practical. very Scott, the think for end anything get just standpoint, future, add end of from Illinois that? to from an at At Illinois. the state think going we're policy point. reasonable This but you the a to an is the not are I day, day, of pretty to

Scott Lauber

get agree. about on just good to -- it. the table be I the to through talk issues it be the It facts and everyone able No, will work and

willing a we to So lot provide it. information and of good have

Jeremy Tonet

the and Got outlook we've kind relationships And PSC, it. changes you will, to wondering, pivot some the of guess, updated on here commission just I want That's some Wisconsin going forward turnover, just seen rapid helpful seen? there. with then and given towards thoughts we've if

Gale Klappa

in probably by appointed the Summer physician Chairman her about position to new most the we've very, Strand, well becoming construction to very year I that and has the I last like suited qualifications think would just And that policy, like repeat background, background would change, Vault a this. before from governor obviously, is she Chair. and was who Strand simply deciding energy and significant in the said the Well, her what engineering retire Summer

forward And working I recent and the more other even staffs who's commission commission and the closely believe, most person then we're to So headed is up appointment a at been decade. at more the than looking has with Summer. for, divisions a

bit Summer to Scott, we join feel I we're balanced. of think are good Strand. experience a And like these both appointments of So very

Scott Lauber

very Yes, the in be is one that spots to very having see. of good and balanced commission to experience able and quickly fill the

Jeremy Tonet

just maybe I a And it. one, could. last if Got

thoughts the Just about before and of way the regulated a There back Energy it. was Infrastructure segment utilities. then versus in towards general, pivot kind a

And you guess, of I excess so X business, just returns the higher you are different investments sides. wondering about, how ROEs. Infrastructure in the think on in the targeting authorized And

just the CapEx years? given kind you in there in wondering of shifts the see So and gives recent how takes

Gale Klappa

Well, you his well. let give on me Scott this start view and as let

that start November, was a originally capital the to in been me X-year rate due plan X.X% out, by projects plan, Let EPS saying the that in early crowded obviously, would order plan had that of to laid essentially it X% in which when you before, will, Illinois our we number have Infrastructure achieve pipeline. new decision if out the growth, diligence we a that

would say high-quality of it do X your to was related to I to at that difficult are projects. we look here all really, have kind for what So there not things begin alternatives question.

number target that's the slightly way of higher Number than seeing of That neighborhood significant basically the we that projects still a is number the in we of kind at, the business. in that two, X% we high-quality regulated looking should at an first The unlevered -- one. is IRR, this. are look we're return result a first

for Scott the business, are building we MISO this. and in the a just add our for don't projects footprint. would I projects But and of to for that this about can add, probably particularly, We're Scott, enough the number talk on flexibility regulated

Scott Lauber

That's exactly Gale. right,

or the end, PPAs into another repower find footprint here utility when MISO years, regulated them, XX, So perhaps move to in the they especially as then ability offtaker these XX -- at wind decarbonize. we'll the them continue we have down the repower either

of I So projects, when years think opportunities PPA. time lot back of a also all And for within getting look at these the and XX look cash we in there's at the sure we the here.

here cash also really we're it good at looking flow, the opportunities in long So as but term. regulated

Gale Klappa

respond your question? to that Does

Jeremy Tonet

that's there. I'll leave helpful. Yes, it Thanks.

Operator

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

Durgesh Chopra

XXXX EPS buying that guidance. XXX-megawatt solar on project? in clarification said -- half, Does rather first include think on that might in or the project you the executing be a the the I Just you

Gale Klappa

Yes, due we're it does. project. Yes. in final that diligence right on now And

However, not the it's close, but yet is not It's itself commercial. yet project commercial.

Durgesh Chopra

Got it.

to million range, half $XXX that million contribution project? in be So $XXX should that we from year, modeling plus like a

Gale Klappa

Absolutely. fair. fair. That's That's

Durgesh Chopra

you then equity. on timing maybe And the can Okay. just, Xia, of just us update

and then million starting targeting $XXX amount you're million a year I about think $XXX of equity then numbers the million to a How we with that number year year a $XXX rata this small and this now? should in higher sort think of pro XXXX. going forward, slightly setting

Liu Xia

X And Traditionally, We If on dividend this have million is those million. the so combination shares to turn million ATM year. reinvestment programs not, we'll to turned ATM year. programs January far. will in were benefit there. coming $XXX And Nothing benefit as $XXX $XXX going The employee give plan be the we it us $XXX new, million program, Durgesh. program. of forward, seen way on And and between of then on getting later plans the the the a in the

Durgesh Chopra

of know it doesn't equity, the I should kind though, small. XXXX be going be guess that in the issuance $XXX -- still asking $XXX million. just amount it's total clear, equity So to That's I is be incremental to what million to just and I beyond? really was

Liu Xia

exactly. Correct

Operator

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

Michael Sullivan

just Energy I going out the much Solar year-over-year taking you can the more. ITC? are it segment? wanted getting or confirm a bit to the How little is parse uplift Infrastructure from guide be 'XX you project, just And to PTC

Gale Klappa

We'll would solar final that project PTC breakdown, but not PTCs. we're be due diligence Xia in the you ITCs, let give on the

playing the approach one Infrastructure on not accounting some games. we've be to used So it of leap we're point, Xia? trying not -- We're to projects. here, forward and that would we're take our other standard your time giant not all

Liu Xia

look at holistically. it would I Yes,

talked 'XX from reduction some And that, in see would you bit about a O&M. and Wisconsin, Illinois. offsetting headwinds have headwinds. interest those little ATC to and 'XX. WEC to We So year to of the $X.XX. the That's And offset $X.XX we

So $XXX $XXX million. the that's midpoint the million increase overall, from to

Michael Sullivan

year? you of known, recently? how much Okay. O&M that with sticking of it more and of these 'XX, if the storm bit Yes. -- O&M it kind popped this reg uptick? projects, was then last up out development piece much how And Like sounds don't I a known lag more kind of on. on was the little And recent just like there's guess, versus then increase, like of I of know could the most of through January What

Gale Klappa

the were give Xia? have I the recovered driven recovered driven Xia answer, by in let asset mean we'll into short, the come increase share by asset is lion's cases. additions by were Well, O&M last detailed they rate additions, more mean that service -- long but of you mostly the story rates. already I in and

Liu Xia

and already out that's, of O&M additional rest storm. And rate about assets the related Infrastructure would X% We cases, projects. The of was as that Yes. I to WEC as the to X%, those. be well knew. called X% related in

Gale Klappa

I at add say, very, But just a O&M renewable we a assets, added to if add assets, basically assets to broadly, if O&M under mean, I added it you is control. going and -- considerable operate considerable as we just very et you of core cetera. you was projects, infrastructure we mean, O&M, about think those look core number I No,

Michael Sullivan

Okay.

storm the can put per an onetime in share basis? Just earnings like you

Gale Klappa

think I January $X talking Scott, million... the we're storm in

Scott Lauber

it's $X.XX. Yes, about

Michael Sullivan

Okay.

of upcoming And any of shifting just kind Okay. sense there? then rate increase should be like size anticipating and rate -- case, the we this to high-level Wisconsin of the

Gale Klappa

Scott, ahead. go

Scott Lauber

So we're currently those numbers all pulling together.

we got in at of the working And additions asset hole the there we're tell, we're As we've putting on the you these look working currently be those Illinois will in can But We've capital. from course, year. some inflation this O&M. on that been filling as numbers.

by stuff the know but should file as here, it's the -- we end but yet, number pulling reasonable first of final a everything quarter have don't something, we're seems together. when we we So

Michael Sullivan

the Like of terms that in is where ballpark, like of ask, case opening fair? the last Okay. within range was

Scott Lauber

doubt I ballpark getting a still together look like in Yes, Solar that a went on to think. will that at into factor those the little and and production though, than the we would It be in that. just less, factor We're credits be we're stuff service all and of in Yes. tax I pulling or that lot to it in. higher got

Gale Klappa

quarter. second the You'll see filing the in

Operator

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

Andrew Weisel

quick on in the follow-ups commissioners Two Wisconsin.

faces new So obviously, there. some

Well, It First shouldn't have question, confirm to just outcome that say I right? case, rate turnover impact impact timing right? timing, or outcome. the any the won't of on the won't

Gale Klappa

commission timing I set has change. policy. The no by been would No. expect

Andrew Weisel

Okay. Great.

the pushback like The other lot a question will, he I was former support around a Hubner, Senate. reports had that in in lot the relates for make the Commissioner, to by And Tyler of Solar from his outside, sound renewables particular. you of it media Senate was Republican-led if

to might do spending the all? So my renewables impact And politically? commitment be changing question states if so, potentially that worry your at you is, would strategy that

Gale Klappa

Energy Short were answer would ask perhaps what you deciding other don't I just I for And I vote in know was to fact, really some in of you Senate very no. the think renewables really actually, reading, back support don't the read -- there at all. or his go solar is and a the of but are members amount factor at view, felt by renewables needed, fact, -- releases at it the made were certain out that our action. that he all. it were wasn't news a But fact in at to that the of not not was the after put least all comments related Committee were explaining specific Senate

Andrew Weisel

you Okay. additional a slightly Great. related That's before the are Or Illinois equity? disallowances? lead you your follow-up expecting decide? write-down Then not the or to equity What sure. case to understand the awaiting higher cases CapEx. court of on equity. about very following potential just rate that I the results and you rehearings Are to higher quick

Liu Xia

I That already Illinois. in new equity will to numbers in It's equity down write-down, send the the excluded plan. gave additional the you. That's X-year

Gale Klappa

plan. already the baked into we've So X-year

Operator

line with Fremont from comes next Ladenburg. Our the of Paul question

Paul Fremont

Distribution outlook the question in that -- guess does for X% what is, of 'XX terms I first Gas does in of decrease company, when assume you the sort segment, look my Illinois? at Natural the outcomes the in

Gale Klappa

It know assumes the Scott? Safety review. just Modernization of don't we because the outcome status quo the exactly

Scott Lauber

Right.

Modernization they So that it have assumes through that and that Program those any the work we're of for there. Safety get we we in work will real But neighborhood needs. the assuming still be and review doing the system, and don't emergency program, status the city reliability until of some

Gale Klappa

do because work. right, do we if have of city they're do to the -- we have some mains, Scott's really work water related cooperate when to fix pipe spending can't example. and to to I their you replace emergency mean, And for with have that So need it, to you a Chicago assumes it emergency replacing

does assume that. the but return any million does roughly full year. -- it $XXX that, assume So not beyond to It not a

Paul Fremont

I upwards? that change favorable Illinois, presumably, And were mean, if would in the outcome potentially

Gale Klappa

to And see probably certainly what on could. Scott? think, though, have We'll the just more until -- know you It outcome. won't that, we

Scott Lauber

end the time the while to be of to year. to take through, the At thorough. a same want they which It's year, get is one next going this

good. that's So

Gale Klappa

only because it's future a And will the docket we year, Safety Program, gas, of be at within with separate look decisions the Modernization not a specific there but policy on a believe. broad

Paul Fremont

investment? all Is you investment? can that renewable Infrastructure added the discuss comprises And what then essentially

Gale Klappa

Oh, yes, Yes, all largely renewable. solar, but yes.

Paul Fremont

expire? does are update you where any or on period, Great. think, the the in the tender? tender tender expired, Because And the and -- I when early

Gale Klappa

has its And the tender for the all early has course. Xia details run yes, you.

Liu Xia

Yes. The expired. early tender has

$XXX million, over We together. the a of million, coming expect is all tender that to little $XXX out

Paul Fremont

regular still waiting to expire, for And you're right? the tender

Liu Xia

expiration given expect date. much expiration early we of But early don't Correct. to the tender, the pickup up the

Paul Fremont

when the And sort Okay. the of annual we other change last of in In then, breakout your would see numbers? X-year guess, words, the I spending? question,

Liu Xia

in investor and February have we the a years. in X we'll then XX-K so for next that details you issue the the the February, XX-K, have We deck, which give will

Operator

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

Julien Dumoulin-Smith

Look, coming to these that entirely a meshing cohesive Illinois table. that's do of sides you mean on do dockets, have right up Super in the venue the different let's just that seem even, coming a We're how bring conversation it There's where lot on you and -- of how of all doesn't to governor own frankly, you. going. a policies, kind aligning kind around rehearing. against parties But I or Like Obviously, quick. what back what set various whether together? of of obvious legislation it see it's been or lot you future possibly see gas with or maybe will? if getting your you.

Gale Klappa

being very see can not decisions I is answer going under Well, clearly I decisions Chairman, -- that my let not there's Commission's Scott, you every you to implementation forward call the think I answer, if the you to Jobs a going about of that know Clean that, be this implementing opinion my tied we I'm that Act. he I opinion discussed the Energy by going his step think wrong. path and to Energy clear to that could But a Clean is sure and clear because of on And we're as that major talks -- CEJA, give sense but my what with it's be see Act. Jobs umbrella

going umbrella So of these lot will. think, a all dockets proceed, that's, of I the to are if you framework the under which or

they've job very into looking future think and to of at one putting gas going the now going in Commission most the Illinois. at I the of be that the of the important docket that's productive. authorized the to And again, legislation. mandate open, of his Governor, just with sees that state be very steps And Chairman of that now action is basically his as And piece from

going pretty I the think would the are Illinois to And at the day, end of I say. to have stakeholders you just people. all are say Midwesterners, their practical

we're all So Scott, to be end going That discussions. my a of to anything up add? projection end I those result. the at would think with practical of

Scott Lauber

No, agree probably nothing that process. through with, go I additional. we'lll

Julien Dumoulin-Smith

sure an our we you and the about Is how back trying there time obviously, ability appreciate if spending if Look, we about pulling Illinois? I in there's how context But here? Absolutely. get just related a the of that mean riders think but I of want try make it. mean to the kind or of calibrate portion business on think near spending spending. of it's I being. I spending just mean, lag earn here, opaque accordingly do of funneled to to related, for you recovery know can, I to will? the little can or at in be any talking through obviously, element QIP, about authorized you're to to that actually, here

Gale Klappa

Well, it's I a think great question.

be think June the found will now docket expect latest. really I being is and the X conclusion the short answer June to that at we by early a come in to authorized is or

a recovered Program, were that that activity it these and was under authorized in rider. there several through of bill rider piece of . included you that the -- Safety to that recover which call QIP, legislation buckets investments, So legislation were a Modernization rider. that There were

just buckets, to we feel has One continue. of the

it's the the that, are with actively As Scott up they it's for do it city streets example, the of twice. in we lot emergency of earlier, make work Chicago, rip aging the doesn't And mains. conjunction a water mentioned and sense replacing work to

put new together also work. work modern doing the going upgrade on neighborhood based work, we we as we is to as risk work the accomplish Commission's well and in safety the by big in piping. piece need what accomplish plan, the the to as which So were state-of-the-art of neighborhood neighborhood very together bucket got and paused to they well That order, their

to piece Chicago. emergency work, work things to to of example, the really and do city get to we look, and $XXX the have bucket that of that to we're them relating appropriate need with for So we that, recovery saying continue It's that for million. is like

recovery is by we're should a answer, Scott, June. get piece early I believe, for that So asking we on an what and

Scott Lauber

Yes.

be have a docket, the test that that year, expect as and take through We at the then rates we programs, we to forward-looking June. to it I at in together. imagine, remaining, would the looked look you will And in about then as a put year go neighborhood think

here steps will there X So be really

Gale Klappa

to activity next the of lot the a just be watch of say space. I'm going will There this over XX months. course

Operator

Patterson the of from line Paul today question with Glenrock final Associates. Our comes

Paul Patterson

this Gale, on following up that of I'm aware let address number kind you looking which at them that were time. doing the been in this were of that of rate that of So of has you you least a just think lag Julian's I'm in you've as long mechanisms the approach long there such sure, time, are to disagree, be then XXXX, And of a environment of may more as expected. to I We just if an Julian see, into just be that. you know. of the them you've I utility you or is wondering know, for wanted late sort at just a, bigger one hesitancy continue it question bang been or kind past, might in situation -- on as buck secondly, what a how you, if happened augmenting way a What decisions challenge. approach you desire the sort environment a more regulatory where for me a lag, a bringing a up. or entering was because S&P bit what sort -- picture guess, that's I like question, I'm this changing for big there's of do a doing that, at kind with can picture of CapEx least where I and seen less And spending might how and the you've appetite the mean, sure. not in

Gale Klappa

ask question, to be that I'd come X things my mind. are you to. And specific the Yes, really there happy as

the follow obviously of in to Safety Illinois Gas future mean, are in only of we're The first And investments -- policy going on public months. but to next be policy. make that going I XX is the Modernization the Program decided public

that, I of have said What I know. -- a safety of investment amount Having is, simply take the place that amount to there's to going don't there's a that's for certain Chicago. believe

Safety X. can't imagine maybe In terms investment but be I it's I it's of going to made. what the But not, changed, imagine decision Modernization can't that might Program, maybe

pure could other don't natural in think I hydrogen the practical terms renewable any protecting of an include city Just city or feasible the Chicago that future type gas, fuel. a for preparing Chicago of from of of that's energy standpoint,

the I expansion that we're mean, plan. then have So I that's which X, under And normal has kind remember a future period, a businesses Illinois that Their opportunity future of that incredible then megatrends the in lag and of rate decarbonization. period. capital all test our issue just and the X-year terms important investment since help and is of here the mitigate in those in we've cases we I customers. mentioned adjustments And piece one. trends these driving Piece just at circumstances, test -- XX, does kind to the look are a Industrial X seeing on guess to growth of normal mega which of kind And any reliability, attraction regulatory earlier, would are third ongoing related made are other basically November robust. economic of add that have basis. thing I front is us,

support regardless productive that outcome really we opportunity, type broad diminished in of investment in So I the Illinois, of don't see those that trends. have avenues Scott, the for any of terms

Scott Lauber

that of the there power dollars than because invest resource of you're about when in it's think of anything And more that plants these fuel. either or a No. cost decarbonization, the millions for looking carbon-free when at retiring, lot are and hundreds doesn't you it, it's a

cost credit. there with the production also term long there's in tax the So savings

have here. do we a opportunities So of lot

Gale Klappa

respond? Paul, is that

Paul Patterson

Appreciate it.

Gale Klappa

more wore Well, we than right. I you welcome. think out All You're today. guys

questions, our additional this Thanks, as can for always. long. and up XXX-XXX-XXXX. pick Thank if afternoon. is to Beth concludes reached much for call She that any be conference you questions so at so everybody, you So or for And happy have the your phone. participating thoughts Straka

Operator

you may you all that and Thanks, Gale. Ladies today's now call. disconnect. gentlemen, Thank joining, and for concludes

WEC Energy (WEC) 1 Feb 242023 Q4 Earnings call transcript