WEC - Earnings call transcript Q3 2024

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Operator

Good afternoon, and welcome to WEC Energy Group's Conference Call for Third Quarter 2024 Results. This call is being recorded for rebroadcast, and all participants are in listen-only mode at this time. [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. on at based are time are made. statements management's the expectations they Such

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

will earnings diluted noted. directly discussions, the referenced to per non-GAAP also earnings This website its share the be reconciliations on posted this share materials The During based comparable information. conference otherwise per unless call provided in company call. include financial will on for GAAP has measures most the

of WEC Group. it's my Energy to now Lauber, pleasure Officer President Scott And Executive introduce and Chief

Scott Lauber

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

me Here Straka, and Vice President are our and Investor Officer; Lu, of and Beth with Chief Senior Communications Relations. -- Xia Chief Financial Corporate

release Illinois. you of $X.XX XXXX share. the charge Plant under from a As the capital saw $X.XX excludes XXXX share in This Qualifying this our related certain earnings morning, of disallowance rider adjusted to per third expenditures per quarter reported we of Infrastructure news

on With strong track this we solid XXXX. quarter, remain a for

range Our value for guidance the focus business for $X.XX our Today, on real $X.XX reaffirming executing adjusted to our earnings year. the the is our basis, stockholders. creating is fundamentals a of an we're customers share. and On

the weather course, Of this normal remainder of through XXXX. assumes

the good Microsoft on Southeast Microsoft at landholdings owns X.X%, at has as company from part of center below long-running that The work is of than its in It development. of complex region. stands the increase large underway. rate has see well progress the X,XXX is and unemployment data more in trend X,XXX been acres reported beginning foundation up year, to its Wisconsin a strong making growth continue national average. Wisconsin. in this acres We continuing the now to The continued

to in a well. the The elsewhere distribution earlier square We're steadily in Bay, in opened delivery this state and Georgia-Pacific mill vans seeing foot completed major use Green for an example, growing $XXX Amazon, is electric million last expansion additional as month fleet. And million. with company starting development facilities warehouse in a year. Kenosha its also X.X is investment of with just

course, the underscores this plan. of and development Of the investments is region. for strength throughout potential growth This the our residential the need in updated and and economy local small highlights spawning capital commercial the our

And speaking of capital plan, to through we're XXXX. for roll out period XXXX plan very excited the the

an announcement history, next from than the an you XX% have our As X largest $XX to capital $X.X increase invest X-year the That's above billion this increase. plan of seen may our previous in billion years. we expect our is This plan. over morning, more

megawatts of again, and Once our plan over the plan State years. That's supports the between X an additional the call in particularly next in demand what Illinois line. plan. seeing XXX X,XXX corridor previous I-XX we we're megawatts Wisconsin, is Southeastern economic growth from a Milwaukee in This our major incremental the factor

of year. on our X.X% average we basis. a our of In X% expect per our This earnings to rate year asset-based X.X% share growth compound plan, to projected new annual growth X-year a long-term an supports a

infrastructure. reduction in driven capital generation, $X.X energy plan our an increased electric billion, and partially in offset by by by we mentioned, regulated a and I distribution As transmission increase

give Let on you updates few me the details. a

by increase economic by Over XXXX, our XXXX with generation. reliability plan renewables renewables growth, fleet the over we Between $X.X the our our next and generation years, rules compliance X EPA prior regulated plan. gas and billion we'll to power transform in to support investing continue natural investment and in to

total, In our provide on XXX than storage. of almost today. These of through of megawatts fuel resources wind invest where from That benefits XXX cost battery save megawatts X,XXX carbon-free to tax generation are $X.X and more in X,XXX to credits. megawatts quadrupling megawatts, solar, we billion adds we plan customers up to and

we economic system wind growth resources. on and support the extreme blow reliability and weather sun and those doesn't To when the doesn't shine dispatchable days, need

plan. generation to an turbines reciprocating both combustion natural efficient the million versus engines gas We the $XXX spend X RICE or over combustion on and modern, internal prior expect This years next units. incremental includes

X be liquefied another heating we Also, supply natural to in ensure Bcf generation. will plan and customer $XXX million capacity This power meet gas for additional for gas used to for facility. our an invest demand

be transmission adding economic strengthening In region's addition, connecting and new to system. will Transmission the growth, serve robust of the capabilities Company American renewables

reliability XXXX. invest and to continuing calls Our us to distribution support networks million we're in billion that and growth, represents plan. with This $XXX from plan ensure $XXX help the economic in between to an for the invest a $X.X previous effort plan. And increase additional our XXXX in million

regulated segment Solar to our compared plan opportunity Park, Hardin to to located last plan. the And businesses, planned [ Energy $XXX reduced XX% investments This leaves ] by plan for acquire next a announce significant year. our today, million in we I'm in approximately in the interest million in our have the in Ohio. us Given III investment pleased $XXX our infrastructure

to first infrastructure currently We XXX expect projects to megawatts online, the renewable invest come approximately of portfolio XXXX. the energy our in when of $XXX expected quarter to add million

is look a conference. just providing future and on in at opportunity detail on investment Our plan our weeks the has We EEI to few never stronger, been more bright, we're focused forward execution.

regulatory service a our areas. the front, updates have across I to few Turning

test reviews with XXXX. years XXXX end effective are case, of decision complete the hearings the and by In for in Wisconsin, rates expect year, are All and we rate and XXXX. testimony January nearly new the concluded the X,

Energy an Gas ROE the in for rate Resources, approved Michigan know, settlement As Service Commission cases Michigan you with in X.XX%. XXXX the both the Public each Upper of and Michigan, now has Utilities

in ALJ the an commission's XXXX. final And final proposed next Safety is ICC Program. the of the engaged at November, X of in in Modernization the dockets. December expected decision the we're steps briefings quarter first in the review and order Illinois, are actively One The to of end

the XXXX. an next future natural is initially ICC evaluation Illinois, other extended conclude The in The gas of year. into to of which this was docket planned

Of course, further we'll any keep you developments. updated on

provide and with it I'll financing results details to on financial Now our to turn you our plans. Xia more

Liu Xia

Thank you, Scott.

earnings. to now Turning

to Illinois. Our third expenditures capital $X.XX excludes rider This of disallowance XXXX per charge the were QIP earnings in XXXX the quarter share per share. related the certain adjusted $X.XX under

of guidance. quarter-over-quarter, weather, did more we QX financing our share guidance a items was of range, driven decrease $X.XX timing exceed compared this by the and per tax to While favorable September

we on adjusted our As remain XXXX Scott guidance. track meet earnings to indicated,

Now let's at our look variances. quarter-over-quarter

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

operations, expense, adjusted more in by of our change, quarter of utility XXXX. and XXXX when with timing weather, higher items. decrease lower than rate Starting O&M, and was expense. earnings the fuel third depreciation design driven were taxes other offset $X.XX to Illinois amortization the items These favorable interest This compared and

first compared positive fourth the base Gas, when usage the gas last to This quarter conditions, are changes revenues you more and now we earnings impact in design in had rate concentrated at quarters the shift XXXX. positive the natural as impact calls, normal to XXXX Also, lower in on estimate quarter few with a highest. $X.XX when year. compared compared on Peoples of resulted Specifically in a to $X.XX third weather I the third the is weather, prior that reminded

retail mine, up other C&I with quarter-over-quarter. the our segments, excluding our from discuss year. I ore Sales of weather-normal X% the volumes electric earnings Overall, are both forecast. electric quarter. line let iron Before residential in to Wisconsin, Retail me and sales at X/XX last QX small in for compared slightly to electric turn increased briefly segments, deliveries the were year-to-date,

Looking at ROE. QX capital we to earnings minutes XX.XX% Remember, related have ATC, ROE. been $X.XX have XX.XX% QX in contributed to a investment some recognizing compared decision at discuss that recent we I'll in an tailwinds XXXX. earnings FERC's to incremental continued of few

in XXXX. by third to quarter-over-quarter our in tax well PTC our improved driven as by higher production the Infrastructure production quarter earnings XXXX quarter And the in a of primarily from increase the to the IRS rates approved facilities. from $X.XX was compared resulting third Energy This as quarter credits in segment, generation of third renewable

that timing and see earnings impact as expense. our you'll interest decreased higher Finally, and a tax segment of Other result $X.XX of at the Corporate

the Scott noted, and range October the That is remainder on our assumes we includes year. to share. As XXXX an guidance per weather for adjusted of annual This $X.XX basis. $X.XX weather are normal reaffirming

weather. to last largely $X.XX we are to year, Year-to-date due behind, compared

guidance. some us have QX achieve will to we ahead, adjusted our looking However, in This year. earnings this help tailwinds

example, ROE. in With at guidance. recognizing I our weather This we on a able we And XX.XX% have earnings FERC's ATC just unwind change. be $X.XX recall, a reflect a ATC mentioned we in reserve decision as year. this to the that in last will item about For XX.XX%, now, included is to QX have QX $X.XX been was assuming share unfavorable at

year, for of our on XXXX remain Assuming remainder we earnings be guidance. also to this weather tailwind. track it Overall, the adjusted should meet normal a

financing Now plan. our turning to

program, now common to issue in XXXX. plan we which our formally will reinvestment benefit to we we into we this up to million utilize ATM plans to XXXX, issuance Also, $XXX For during dividend continue quarter. equity and that an project employee have still equity. Overall, be put for tap place common

minutes anticipated financing outlined our few Scott XXXX, has X-year Beyond our capital I'll plan. discussing plan. spend new

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

next the about see our expect over operations $X.X of billion the $XX About to X% from This $X.X $XX.X other we from can of $X.X with junior is come to the [ billion needs. And content. of subordinated $XX.X notes billion billion be funded on some to incremental common ] fund between you [ to This billion. or to billion funding to years, or instruments chart, XX% remaining could is range As or expected ] cash by is cash XX% equity the expected include equity. cash debt. X

I a the said of capital. function As is common previously, equity of cadence

$X.X million we prior [ be be in capital billion between Given all, the of to $XXX strong common financed the capital about All ] expect to million. to equity plan equity with in XX% additional we content. XXXX, expect $XXX X-year plan, compared to increased the

strong energy and distribution gas the contracted in Wisconsin continued the economic development decline. the by our allocation, time, is we as to years. is over asset our of in driven the Page package, of XX grow on earnings percent the X businesses base regulated electric transition Finally, This base demand renewables our plans. capital shown same to in next asset At the percent expect and and growth of through faster expected

our investment XX% Particularly, expect can Illinois company's in to we to XX% are at X% XXXX Gas. closing, see about in you opportunities decline our that future only we and from base asset excited In Peoples us. with of ahead in XXXX,

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

Scott Lauber

Xia. you, Thank

a quick XXXX December. in Finally, about guidance earnings we'll and provide reminder expect dividend dividend. our I the plan

payout We the continue our will of the Overall, and continue to share. our range, well providing I and growth dividend target positioned earnings on focused we're We're line with earnings. customers the XX% on our for to within track stockholders. value a to ratio growth of of expect per XX% so in be

of question-and-answer Operator, the the ready for portion now call. we're

Operator

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

Shahriar Pourreza

have question of just size sec. time mean, mix, your Beach of Beach Scott, of I given just -- Point off I the from resource kind PPAs around let a segment roll the repeated want this the many me, ask, I Point obviously, the but on touch in me is of kind infrastructure PPA. a to to know for just

there? Are of some with how ] backstop can't alternatives? so is get you directionally, viable you progressing? look those that spend them with If Just NextEra would dispatchable there capacity, [ to bid-ask kind incremental

Scott Lauber

NextEra. Point other December reminder And the is sides. And on the really discussions at PPA the of everyone, both case. -- of We've we on We're Sure. contract Beach just like March as a we and our Beach one ends in with Wisconsin progress rate been with for up have talked Point XXXX. here been XXXX, think constructive making about, with I busy good very

down think hurricane been they've some I busy with activity. there

up you'll in lining progress, think, for see I next So months. everybody. come. the expect more we But good we're making X more really well, to

Shahriar Pourreza

I reduction Scott, sense And just a not side. Okay. That's helpful. we obviously, on update. infrastructure saw then CapEx getting why I'm healthy on of sort the very that -- strong CapEx

of that been a deemphasis it's I think some segment. some been sort time of there's

driving our slowed? what's is issue? return kind I exactly a segment? to better sense the just kind renewable on the tempering allocation in start a for that Is there? going of contracted expectations I guess, it. get on capital demand it want we what sort of of Should Is

Scott Lauber

our at plan, amount spend investment announced contract I through then And profiles million we about of we it when reduced going of fills we're as the capital segment No. that had to went the hits plan mean happened what the reduced we we we do. we're million last year, our economic because said and what there, actually said the and that looked amount in of And Illinois $XXX also development. incremental. last we here going we just to it $XXX

economics we The just segment, Wisconsin, concentrate the have to utility a good we've within to deploy got with on We development in of we're the going on on to on and other in the going been concentrate economic lot in the just a that. Wisconsin, -- want here just infrastructure it's that. have regulated so lot capital

Shahriar Pourreza

is see We'll That week Okay. you Florida, It. perfect. [ and warmer Appreciate on ]. congrats in getting a in

Operator

Your Jefferies. comes from next from Julien Dumoulin-Smith line of question the

Julien Dumoulin-Smith

embedding PGL little Illinois do and bit Option mean rack through out the I on options I comment. you any what have been that are billion-ish guys that suppose think here that there I'll few about a different about How how there, you talking about is a that put outcome let $X vis-a-vis here. proposed here staff And here, compare Just today? what table more here? with a you guys X? updating are upside you guys there's XXXX. on does against

Scott Lauber

then about good spending it's $X.X the spending, option. the the preferred out period. -- came the a That's staff and the And to X by -- X also option Sure. X, Option on question. has out billion came And the just everyone Option also of lowest page, has option PGL. get and same It's recommended it's Option staff ICC spending that over

you and together Xia any, facility down plan; in just the the our at have like what we so if to the we and and to emergency space, took When look for X-year work much relocates. in put any work -- plan, don't the I X-year capital white needed

about years. a that's So $XX X our in plan for the million year next

could $XXX million a So to be if plan upside this of think maybe maybe would $XXX an I get million, up, that $XXX million picked year.

of would pick down But those projects we remember, we what if quickly are doing. they ramp very that,

X-year takes minimum took it But to ramp a So it while up. back our put and we basically just current bare in plan. the

So there upside one these of if options is selected. would be

Operator

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

Michael Sullivan

you of about wanted more case And ask for there. why just up? coming have Wisconsin maybe you Maybe might pending weren't points on sticking little to some final able What color order to a that the the feeling you're settle and how be? the

Scott Lauber

sure. Sure,

all the gone Wisconsin are far we think So When Wisconsin extremely hearings. the through the we've about you in case, case.

came fact, just the day. other In the matrix final out decision

we've case been the the this of about we're far Wisconsin in as ever that year. along time So

So the in ready decision. first decision, do which right is they commission December, they're week December everything or second along now, the been -- usually they've first next historically, step making a in the -- it's but a for week far and got the

where happy out. little We're settlement -- Now, of a and we've about the very a settlement. bit came position the talked idea staff

with decision and ago had very I in I matrix. think on going through see I'm go to through everyone X wants to a we case. going the related a think Wisconsin, through deciding the commission everyone the years the still settlement commission case just comfortable that

not weren't that. concerned So about to a settlement, able up to but we I'm come just

I individuals in reliability think commission really is of that importance with our understand region. balanced and the the economic filled development overall, the

So all didn't we're settlement, there not ready get the just for in a either. decision. that's We bad but

wants I see on think to what's everyone here. going

Michael Sullivan

side. have what ROE are Yes, does. that? we On Yes, this how weren't you had QX, that? Scott. about guess, the earnings should for helpful, not you why ATC would going happened raising just then I very to able think Or And two it to guidance book just book you're if on I that in questions

Scott Lauber

And a little got that in other just through forecast, got would maybe some good there. and on anticipate that's timing expenses make move we execute through bit question. better, a of things a sure around We our little bit No, came come we of but we timing, it to it.

where through all here, and it's guidance So in, factoring it everything keeping with factored at. through the went we and comfortable and

Michael Sullivan

Okay. then last And one...

Liu Xia

Michael, is this Xia.

behind remember, Just a quarter. we weather. really Year-to-date, had $X.XX first we're mild our

and us of there throughout deficit. Scott that are weather year, this of said, So developed of help the some lots $X.XX kind things the have will offset like

Michael Sullivan

Appreciate color. Okay. for December so one level the then remind me, just of long-term last EPS that set will basis your CAGR? December update? And for this the back X.X% on ahead what you And to range And can X% just here, based that the about of your being after that think to potential shift year, guidance? with kind short the to how of in we get do that

Scott Lauber

our Sure. XXXX use still are to it Sure. X.X base. the X, we and And

I was of do our guidance. last there decision year $X.XX because so our could capital our and had look investments, do some at as point base because long-term this adjustments the think timing year, it starting as that to we we're when guidance of keeping Illinois and we for we XXXX our

get case we through plan will we've rate next here, to that. in through We our get -- come December with we'll after and -- the got out

Operator

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

Neil Kalton

question, quick Scott. So

about talking more opened up Microsoft land. You acquired that the

I that total? Is correct said acres. X,XXX in think you

Scott Lauber

Correct, correct.

now and they're they So the acres. at to started the up X,XXX, of X,XXX about beginning year,

Neil Kalton

CapEx ] then there Was waiting on to Microsoft do. the they intend this potential in And come? to of know sort that still out revision to what plans of refresh, to of that determined kind terms I they on be all CapEx of might Or extent? do anything is additional lay the incorporated [ spend Okay. some what Perfect. in sort you're all

Scott Lauber

capacity economic X-year what So has of from the demand all in which the in some what other and region electric period, in vehicles some getting megawatts region. the over this this is includes about we X,XXX talked and for Microsoft, which development includes

So that's megawatts. X,XXX

put that is our perspective, megawatts. system to in about Just X,XXX

in little So a region. needs capacity in XX% over growth or it's the demand

X-year of plan. happen. of to factored half probably a just inquiries be a other going lot a all development out feel until our We are discussion would data there centers. other of that in into any variety don't many But like if future come would there's actually So that But the based it's just good from companies, from getting on really is region. be upside stuff, continued economic plan. But we number any of we in with the conversations, outer the on those just that comfortable

Neil Kalton

Okay.

-- only Okay. more Got be X, it's formally then if And announce necessitate capacity? a would what -- to that But Microsoft like Phase something limited it. you so to I were maybe that as would say. mean and just can

Scott Lauber

to sure what some phases they them But announcements. which they're to that That or of just here, on the with that's They on kind we fine. the Microsoft I period do and not. it, -- kind demand unfortunately. see inside actually want let -- is of if way we'd over not baseball have we it with Working keep is I'm their mean, -- the demand, them work will make includes the Microsoft -- other

Operator

Our the Andrew line next Scotiabank. of question from Weisel from comes

Andrew Weisel

and clarify the to big update. on some to electric One a granular on appreciate wanted little pieces. the generation. here, was detail clarify very CapEx moving I Want numbers the Obviously, I

Page on out showed on billion, the X.X You but commentary Page only up by total XX X XX went billion. really that calls the

renewables about regulated natural You missing the gas showed XXX generation. and million. We're

bucket? what else So is in that

the you cost Would looks assumptions you in day-to-day that last Or like correct? you changes February? similar the I inflation? in gave have distribution. update Is Then Illinois increase million some $XXX policy about assumptions made a it regulation to there's compared and made when around just spending natural for gas higher and be

Scott Lauber

numbers. the Yes. Good questions, really quick analysis of

territory, customer So you increase decrease behind as in adding the Illinois Michigan go of look for you other and Wisconsin, relates distribution the gas and a area Minnesota; at and growth when parts it's actually good service the and expansion. an in capital just the to numbers, it other

rules, rules, I needed. we could is there think more really at it's the capital final be that as you requirements PHMSA some see look number. final the the Until handicap hard PHMSA to

areas, other So that's in decline really a Illinois. plus a in the little

And looking right. you're in $XXX a have generating exactly enterprise, to projects additional the of the a at credits, million. to tax types plants, upgrading additional to and variety that across of There's a few about production get resilience probably make farm another looking That's backup resilience. wind from generation, in at other storage to different our sure adding more some some of just we

area, we a make can variety to so it's in just all of hit So generation items, that we demand. that continue sure

Andrew Weisel

Great. development? Then side, that the on outside this in correct increased economic that near-term Okay. more the Is of stuff to all you related very X MISO be forecast assuming is tranche $XXX it I transmission period? helpful. Would That's million. by

Scott Lauber

very to know plan, come bit end, it the you're X-year the going right. numbers little of this More but after most at December. and X is is exactly MISO maybe the be plan. that after of going be we'll final most But after likely Yes, a the -- X-year more this tranche of to

Andrew Weisel

Very one last good. And one growth. the on load here

share EEI? of you that in said at on think of percentage growth incremental you what something I you're terms load. don't That's that commented from forecast. X,XXX that Is megawatts can now? now I expecting you megawatts. something Or means you plan share X,XXX is up think to load that

Scott Lauber

Sure. talk now. them about Sure. can We

but -- megawatt these a think XXXX. low X.X% electric the to extended and through at sales looks are hour growth what it we I basis, on when X% that So side, probably

megawatt basis, volumes a about the see to we a And up base X,XXX continue X,XXX. on on are -- we megawatt So of on hour a at basis.

little demand on XX% increase. over a our very a sales, demand significant the in that's increase So

because resources, enough really look sure on that's make component a the demand hit days. really key as at being capacity to have to build and dispatchable I peak we too, demand where the those And we have

Operator

Our question Capital line Sophie KeyBanc the from of next comes from Markets. Karp

Sophie Karp

all is Your last is growth reason why, going Are case very, So raise Wisconsin when it's rate innings growth I offsetting it's already. any to right? higher, well. you in update Is guess, the you around, load refresh a that healthy do missing update very that guidance great EPS capital any December? going there wouldn't factors here are would prevent your in we there rate like from happening? as

Scott Lauber

That's we at a -- question. Wisconsin. good we added we And looked when it, in did capital

We also but and at it. in also infrastructure, reducing reduced it Illinois the looked WEC

in in So of X. needs first add rate as hear the hear in through at Illinois, we're Modernization get have and look that to the We debt to what quarter Wisconsin we'll Program X.X year. do next Safety very the needs, we the case comfortable equity and which with in really and it on goes our

financing with But plans the it's capital really of some other down being just capital realistic spending areas. in taking our associated the on and

Operator

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

Durgesh Chopra

outside I got door. my some my Haribo gummy front bears sitting trick-or-treat. That's

Scott Lauber

community. Thank Excellent. you the for Excellent. supporting

Durgesh Chopra

from And from Milwaukee. are source they

Okay.

Scott. of questions, So a couple

roughly billion the $X current to prior has Just $X billion current gone I gone gone at but equity has funded from the know billion. $X.X and billion, over It's like the equity. about XX% up $X guidance change range. the plan compare through -- talked I only the up plan midpoint of CapEx the But -- plan, you up capital when the

[ the issuances us please? is just X a planned maybe -- equity higher. it I X So would -- bridge between the have equity is just issuance thought lot why ], help equity that the plans Maybe

Liu Xia

to. happy be I'd Yes,

last the $X.X So was the billion. remember, billion billion. plan, range This plan, billion $X.XX to is the $X.X $X.XX range to

common point, to in $XXX million So about it's roughly equity. your increase

adding give We also holding content. us company debt, of particularly that some maybe XX% using are would some the equity hybrid

equity So $X if in equity, of plus $XXX around billion the that, increase include common that's million content. you

equity. $X.X over billion. gone equity of has So the little a We're of content, our billion $XXX common up capital adding million including $X

Durgesh Chopra

Got it.

And As always, up still quickly, completes that then year. the the clear. -- end Is is Delilah plan just goes that the wanted Is follow by construction it that solar. still on service crystal to track? of on into I that's maybe

Scott Lauber

correct. is track Maple by Delilah That Yes. and the the end of are Flats on both year.

Operator

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

Jeremy Tonet

into addition thoughts to of go that you the share wanted any gas you And how operations have generation. LNG contributes Do overall? Just could there? to

Scott Lauber

sure. generation. can Sure, we We're own want on we Wisconsin to within And the sure adding houses gas dispatchable gas gas make the imagine, our you gas to and -- the the make we can side. warm that of state more sure have that as run generation keep

to at, in the Literally, one So looking we filed pile the we our added sitting we're another X Bcf used that and sit. plan. at commission, is where coal a

of the [ on those state very state energy to energy power make are that have to stored those we or near plants ]. stored be of the days year in able plants coldest enough fuel Wisconsin helpful So the to sure in the having that run

the our pipeline, issue pipelines, one suppliers really that natural compressor ago, of had years we our of vendors, our made really gas. a pipeline; had one state on thin of of Couple but not Wisconsin

very having So LNG to to tanks those are going critical keep be reliability. that

Jeremy Tonet

it. if it Just Got particular, coal us wondering affect the answer have on timelines, to this time, gas it wondering just a here in given reserve helpful if could could does greater the relates at Very you of retirement now, be the country. stands how then you generation big it going? generation as in And I'm thoughts same call topics? could there. these need? on this bit And on generation, going here? with thoughts where margins, CCS part be further it broadly And provide

Scott Lauber

Sure. -- gas us is look Sure. days, the critical or shining. for at something blow the doesn't as some today generation wind dispatchable. is wind's sun the I we But mean blowing. And isn't having

system, continued So to for that's we here rules their renewables of as ahead and following reserve to capacity. of the staying seasonal mix make generation are as renewables get looking the and at building demand we're type and they our needed -- they've MISO, the evolve have load needs sure appropriately make generation, margin on more more gas and just the the sure to renewables and

So as part? capacity that your grow is very plans. important What for our second was we to us out continue

Jeremy Tonet

regards retirements and generation just in coal Carbon capture given... with gas generation plant to general,

Scott Lauber

more And someplace to the cost look our had we billion you here of in it. have to billion would And it if and capture, us, store have $X for that we place don't you store think the at $X do any it haul natural transmission to we carbon Wisconsin. where the to to in capture customers carbon order and capture, carbon you're do carbon going then it

course, seem we, of of not in and that front possible?" here looked plan we're It's and did out So it cost-effective versus laid the we for just developing viable our "Is customers you. at it

And retired when already retirements, X and we Oak you think about X. the Creek coal

at end The of we're because more putting other we of the units some doing gas XXXX. the in generation. retire to X we're efficient and X, plan And that

add them we to retire be to honest, to capital add additional the if to have plants X, weren't extend X longer going and to capture. and to quite carbon have And we'd those

retirements. planning still are to those in So be

it much really retiring plants of But the by make on be retirements. coal all there economical fuel? of gas our know use adjusted to other or don't it adjustments plan or hasn't coal like We we I plant we Some does not. look, either our -- -- continue it'd Weston to XXXX. if some sense X, natural

Jeremy Tonet

helpful. just last quick very it. I could. one Got one, That's And if

ATM? transferability, a funding mix are 'XX as for here? it the is guess, far in wondering, for is makes equity needs the block? see Could sense much just content, concerned we I How As

Scott Lauber

Xia let I'll take one. Sure. that

Liu Xia

Yes.

So on. we have remember, still the employee we benefit have -- plans

year. be the next that So raise of for equity part will

remaining ATM easily. So piece the should handle the fairly

So a sale we to right plan don't have block now.

The tax included credits FFO. are the already in

that So we've bit, million far. renewable FFO. already we average, so on are selling projects, to the $XXX in those but $XXX could as And million been number to a little grow assumed add continue

Operator

question next of Campanella line Your from comes from Nicholas Barclays. the

Nicholas Campanella

seem that like of lot X.X% a of been figure, I growth have lot kind for A kind is guess the from does of Wisconsin. just So growth of me. things asset-based one it coming answered. just decomposing

as versus kind trending just rate or for what executing years? the it that's been in you've few at past growth And base at me. Wisconsin what's So you of today kind see it outlook of

Scott Lauber

to base Wisconsin, the imagine significant the economic oh, rate don't rate be I XX% between where growth. it's and look all growth you is. know, when I going in -- So remember, at XX%, pretty that's growth But base

growth from that And our resiliency. don't I of billion and into $X would support related to you economy. growth, to the And -- growth growth at lot development to say, look economic we try growth at $X is being look from break when the components the I different of a it's billion whether and of know, usually growth, sales, and the it economic

are really to that going that. it's into sales driven help So grow

So that's significant. And then growth. ATC has good

So we're is but in the Transmission regulated. also also a based growing Wisconsin which lot FERC American Company,

lot of Wisconsin, a So economic development. growth in by driven largely

Liu Xia

is capital Xia. of is Nick, we capital. our XX% of total -- our Yes. XX% the call growth this

large customers the with comes demand related paying required cost. and their that for So

we also good driver in about the for and Wisconsin So the it. feel growth

Operator

from comes line Patterson from Paul the final question of Associates. Glenrock your And

Paul Patterson

-- given just again? to is all it first remind you Just new program, things change -- your and what any changed me the follow what well, if could sort of increase up. outlook rate is, all, there just it's what Is the CapEx at of

Scott Lauber

going we're rate right case And the Sure. Wisconsin. in now through

capital. start this So got XXXX, kind of you if look out you through go at and break into to 'XX to you it

by it's a supported lot development. being said, Xia economic As of

So be inflation. line I will think with in rate increases

projects overhead more in weather patterns patterns stronger underground across state. and stability the We some some as to to do have that we're continue putting add we doing wind we're some place, that see reliability

part, maybe with that But above and megawatt lot take megawatt the capital is a inflation. So for by most it driven X% may come will economic sales. development, which this being of hours

need they pay of get they're plan they So has realize testimony, it's means. and their on fair all share. their at like customers and that to put also it's on in supposed to but not else, they retail back any anyone not our And subsidizing understand said, Microsoft the don't subsidized They they either.

been have perfect. they So

sure that's amount. And kind as make data that's centers potentially pays look their share, of fair coming playbook everyone the at in, to we appropriate other --

Paul Patterson

like QX it something then Okay. And in increase looked this, for apologize big I missed your... the on I a normalized commercial when there but I or at sales if gas -- was looked in

Scott Lauber

we commercial, And up QX a bit. at affect volume can quarter little was small a QX, it. look you can it when little -- yes, industrial, is such that any change

where an are. I issue with have that at the smaller got there's that to So much QX, more in been you meter the we it. would just quarter, the I or could so mean, look would anomaly something look -- I into year-to-date. read not volumes really year-to-date at

Paul Patterson

sense. Makes

Scott Lauber

call everyone. That Thank our conference for concludes Thanks, today. for participating. you

to you (XXX) contact any feel If free Beth questions, at XXX-XXXX. have Straka more please

Operator

Call has ended. now

now disconnect. You may

WEC Energy (WEC) 31 Oct 242024 Q3 Earnings call transcript