Q4 2019 Earnings Call
Good day, ladies and gentlemen, and walked into the Black Hills Corporation fourth quarter full year 2019 earnings Conference call. My name is Daniel when I will be your coordinator for today.
At this time, all participants Arnold listen only mode.
<unk> Mark there will be a question to answer session. If you would like to participate in this portion of the call <unk> followed by one at any time during the car.
If assistance is needed at any time during the call. Please <unk> zero and a coordinator will be happy to assist you.
As a reminder, this conference is being recorded replay purposes.
Oh now like to turn the presentation over to Mr. Drum Nichols director of Investor Relations Blocking Corporation. Please proceed sir.
Thank you Daniel.
Good morning, everyone welcome to Black Hills corporations fourth quarter, and four year 2009, Jean earnings Conference call.
Leading our quarterly earnings discussion today are men Arby's, President and Chief Executive Officer.
Bridge, Kinsley, senior Vice President and Chief Financial Officer.
During earnings discussion today some of the comments, we make make do change forward looking statements as defined by the Securities and Exchange Commission and there <unk> uncertainties inherent in such comments.
No we <unk> our expectations.
Are based on reasonable assumptions actual results may differ materially <unk>.
<unk> next release slide to the Investor presentation on our website.
And most recent born Jen and form 10, Q. Wow, what two securities and Exchange Commission for unless there's some of the factors that could cause future results to different materially from our expectations <unk> <unk> <unk>.
Thank you Jerome good morning, everyone and thank you for your interest in Black Hills today.
Before we dive into our results I want to start this meeting as we do with all meetings would then black hills with a safety focus.
I like to do that by recognizing our coworkers at our club low airport generating stations in Colorado.
They recently achieve the coveted status as a star works site as part of Osha's voluntary protection program.
This is the highest staten status given by the program and requires a three year rigorous processors focus on creating a strong safety plan executing on.
Successfully completing a thorough haunted by Osha.
In December our team proudly raise the star Worksite flag at the club Little Airport generating station.
Safety focus by or placebo team through their proactive planning and execution moves us toward our goal of being the safest utility in the industry I'd like to pause and say very well done.
Starting one slide five.
Recorded solid operational and financial performance in 2019 in our team executed our customer focused strategy to grow long term value for both our customers and our shareholders.
We continue to deliver safe and reliable service, we invested in significant capital of the sort of our customers needs.
<unk>.
Solutions, and we make progress on key regulatory initiatives during the year.
As a result, and as a team we deliberately was above or guidance midpoint and 2019.
Our team delivered on our core responsibility of providing safe and reliable service to our nearly 1.3 million utility customers.
We successfully executed our capital plan investing $850 million of capital and 2019, the majority targeted towards safety and system integrity.
We made solid strategic progress accomplishing a number of long term goals.
In addition to successfully executing or capital investment program. Despite challenging weather conditions are team further refined or programatic approach and long term plan.
We rolled our five year capital plans forward, adding our current capital forecast for 2024.
We advance our regulatory strategies, making progress on the consolidation of our gas utilities and planning for longterm capacity needs at our electric utilities.
Implemented too.
Renewable energy solutions for our customers needs, which also provided unique growth opportunities.
Or or prepared for retirements with the appointment of two new directors in November expanding the diversity experience about board.
We've maintained our solid investment grade credit ratings with all three rating agencies affirming our debt ratings with a stable outlook and 2019.
We completed 49 consecutive years and he'll do you ever been increases are dividend track record illustrates our legacy of long term, it's sustainable growth.
We're on track to celebrate this year, a milestone 50 consecutive years of annual dividend increases one of the longest track records in the electric and gas utilities sectors.
Certainly notable for any company to consistently pay dividends for 50 years, but remarkable to increase the evidence for that many consecutive years.
[noise] must be on the slide six.
I'll cover some recent highlight starting with the electric utilities.
I'm pleased with our customers response to our renewable ready subscription based program was strong demand leading us to expand the program.
In December we obtained approval to increase the program in the related Cory now when project, you 52, and a half megawatts from 40 Medwatch with.
Little cost of $79 million.
Mostly to Colorado with our new Bush ranch to win project now in service or Southern Colorado system. It's on track to deliver 30% of our customers energy from renewable resources at 2020.
This will help us meet the state's renewable energy standard.
Further supporting Colorado's emissions reduction goals with our renewable advantage program, which could increase our renewable generation x. up to 60%.
On December 13, we kicked off the program by issuing an R.S.P. to potentially out up to 200 megawatts cost effective utility scale renewable energy resources.
Because we'll be reviewed by an independent evaluate your under oversight by the Colorado Public Utilities Commission.
Or southern Colorado customers are currently served by wind and solar renewable energy generation supported by our reliable inflexible natural gas fired generation that will support. The addition of more renewables.
You'd want to filming we recorded a new all time winter peak load in December for the second consecutive year.
Demonstrating continued overall customer demand grows.
This winter peak confirms our strategy to operate a diversified generation mix given that the last two winter peaks occurred on days was zero wind energy available to serve customers.
Let me to our natural gas utilities highlights in December we completed the 35 mile Natural bridge pipelines project for a Wyoming guess customers on time.
Budget.
The project enhances supply reliability and capacity for our customers in central Wyoming and.
And it's just one large capital projects, we successfully completed for customers in 2019.
We also continued to advance our efforts to consolidate and simplified natural gas utilities in Colorado abreast go in Wyoming, two bedroom more efficiently sort of our customers.
Yeah.
Received approval of a settlement agreements that completed our consolidation efforts in the state.
Frugal allows for state wide customer rates and to consolidate general tariffs effective March one of 2020.
Disagreement also approved a general rate increase to recover approximately 150 million of investments in the states, including the natural bridge pipeline you.
Do you agree when also establishes a new rider to support system integrity investments.
We also advancing consolidation efforts for Nebraska.
Legal consolidation was approved a completed effective January 120 20.
We are now drinks, but rate review filing mid year to consolidate rates to recover investments for customers in the state.
<unk>.
They recommend decision, which would our plans to consolidate rate territories.
After the adjustments every results in a rate decrease we are disappointed in this recommendation.
Exceptions as part of the administrative process.
We continue to remain the consolidation woken up the customers are providing more efficient service customers.
Greatly simplified regulatory processes long term.
Oh, you strongly I plan to in Colorado, and will continue our experts with regulators stream abrasions on behalf of our customers and state.
Well into our power generation second on the slide stuff.
We finally application last August birch, asking for the 16 hour purchase agreement between our generation segment.
Utilities filling up.
We filed answers to questions from birth in late December and currently anticipate a decision.
Part.
Sorry.
Number 26, we placed our bush wants to win project and service the $71 million 60 megawatt then project is contracts to serve our Colorado electric utility through 2044.
Our power generation segment was selected it 2018.
Bidding process to support Colorado's renewable resource goals.
I've already highlighted our dividends track record new port numbers thought that turn over the rich for financial objective.
Thanks, Good morning, everyone.
I'll start from slight time as Lint noted, we can leverage strong fourth quarter natural performance driving.
Yes to the upper house over 2018.
Fourth quarter U.P.S.M.'s adjusted was one down 13 cents compared to one dollar and I've sent them to for 28.
Reflecting 13% increase in adjusted.
Partially offset by 5% sure Bush.
Full you're 29 Tdps as adjusted was $3.53 compared to $3 50 fortunate to 20 team, reflecting 9.2% increase in adjusted net income offset by 9.5% shared solution.
I'll discuss operational driver's by business segment, a few slides, but we'll address consolidated whether earnings impacts here.
Whether favorably impacted consolidated results compared to normal in Oh, 2018 and 2019.
Puerto 2019, we asked me whether favorable acted U.P.S. by more sense compared norm.
Which was two cents less favorable fourthquarter 2018.
When you're 2019, we estimate whether favorably impacted U.P.S.I. sixth sense compared to normal which was three cents less favorable than 28.
On slide 10, we reconcile gap burning external Justin <unk> measure.
This isolate special items communicator means that we you'd better representer ongoing performance.
Let's slide displays the last five quarters and trailing 12 months as of December 31st 2018, and 29 and demonstrates the seasonality earnings.
The third quarter of 2018, we recorded noncash pretax impairment of $20 million or 25 cents per share after tax.
To an investment enemy privately held company.
Third quarter going to just release.
Special items and 2018, not reflecting are ongoing performance, we're all income tax related.
The first state it reflected impacted the tax cut two jobs act during 2018.
The second in order to.
To tax benefits legal restrictions completed and 2080.
Impairment 2019 tax related I send 2018.
They were ongoing performance and according to reflect on an as adjusted basis.
Slight 11 is a waterfall chart illustrating primer, whose earnings results from two or 20.
For 29.
Oh milestones chart, our net income taxes.
More detail by saying I'm slide 13, but at a high level or electric utilities gas utilities in our generation segments had solid gross margin improvements compared to Q. port last year.
Total on M. increased by less than 1%, reflecting solid cost management court.
Appreciation increased as a result to increase service from our customer focused capital investment.
Interest expense was flat compared to shoot for 2018.
Expense was higher than last year.
Development costs approximately I'd points.
Related projects, we no longer intend to construct.
We experience Favorabilities effective.
Two 429.
Prior year, when excluding the special items I discussed in the previous slide.
Are effective tax rates recorder, 9.3% compared to eight 2.8% last year again, excluding the special buttons.
Used to affect upgrading to 420 18 was driven by a tax benefits from the federal tax law security back claim higher production tax credits from our new generation that sets and increased repair in development credits.
Slide 12 is a waterfall chart.
1928, consistent with our Q. form altered on the previous page Oh here are of income taxes.
Utilities and gas utilities headstrong gross margin improvements compared to last year, while our nonregulated margin relatively flat year over year.
Total increased by 3%, reflecting print cost management over the full year.
Appreciation expense.
Increased as a result of increased plant in service from our customers.
<unk> program interest expense was slightly higher 2080.
Other expense was higher than the last you to develop the cost I mentioned last night.
Perfected income tax rate and 2019 was 13% compared to 17.6% 2018, when excluding special items I discussed.
The reduced effective tax rate 2019 was driven primarily by federal production tax credits in a statement esmin tax credit on her arms.
Yeah from the tax benefit from me federal tax loss carry back clean.
On Slide 13 segment operating income results for the fourth quarter.
<unk> Oh make a few comments here and you can find emotional details on two four year changes and gross marks an operating expenses in our earnings release.
Electric utilities operating shoot for 2019 increased by 2.3.
Q for 28.
Gross margins increased by.
Barely by higher industrial.
Purchased power capacity costs and recovery.
Operating expenses increase 3.2.
Q or last year due to higher costs and appreciation expense.
That our gas utilities operating queue for 29 increased by 4.3 million compared to 28.
Gross margins increased by 3.7 billion benefiting from customer girl or service territories higher transport transmission margins rates. These benefits were partially offset by unfavorable winter compared to queue for last year.
Getting degree days were 2% above normal for the quarter, but 3% lower thank you for 28.
Operating expenses decreased by half a million dollars, primarily from lower outside services and employee costs, partially offset by hired appreciation.
On the bottom half from slide 13, it or power generation segment operating queue for 28.
1.9 no.
Q for 2080.
Revenue increase in 2019 higher contract places receipt and increase generation new wind generation assets. We have this year operating expenses increased due to higher depreciation of property taxes from new window assets.
Primary earnings benefit from our new projects comes through reduced income tax expense due to the federal production tax credits we received from these projects.
Operating someone or mining segment, what's comfortable.
Here.
<unk> 14 segment operating results for all your 29 junior compared to the prior year again I'll make a few comments here you find additional details on your your teachers gross margin operating expenses in our earnings for weeks.
Electric utilities operating income 2019 increased by four points.
28 team gross margins increased by 17 billion, driven primarily by lower purchase our capacity costs regulatory settlement.
<unk>.
Operating expenses increase 12.
Here, you to hire employee costs outside service expenses.
Appreciation expense.
And our gas utilities operating income for 29 increased by 4.8 now in compared to 2018 gross margins increase by 21 million benefiting from new rates customer service territories.
Transport transmission margins.
These benefits gross margin or partially offset unfavorable weather compared to last year.
<unk>.
Mark to market gains and losses.
John tracks.
Last year, we had a game 1.6 million of these contracts and this year.
Point 7 million dollar loss.
He greetings were 5%.
2019 compared to to set above normal in 28.
This benefit to gross margins was upset by excessive precipitation negatively impacted your educational codes for agricultural customers, Nebraska gas service territory during the second and third quarters of 2019.
Total for the year, we estimate whether adversely impacted margins at the gas utilities by 2.2 million compared to the prior year, but was favorable by 2.7.
Normal.
Operating expenses increased by $16 million from higher outside services employee costs property taxes in appreciation.
On the bottom half slide 14 that are power generation segment upbringing for 2019 increased 2.2 dollars when compared to 2080.
Revenue increase the current year contract prices receipt and increased went generation what was partially offset by higher operating expenses from hired appreciation of property taxes.
<unk>.
As I mentioned previously the primaries benefit from our projects comes through reducing executed production tax credits were see these projects.
Operating undermining decreased by 3.70.
Right here did decrease from the prior here.
I.
Did you why there which negatively impacted sales mine.
It's like 15 shows or financial position through the lens capital structure credit ratings on natural flexibility our credit ratings remain triple B. plus it it shouldn't be it'd be doubly too Moody's with stable outlook and all three agencies.
<unk>.
Containing are strong best credit ratings, given oh interest rates or market conditions, we shoot 700.
Long term public debt in early October.
<unk> matures, we end up coming in 2020 and 2020.
In good shape from a debt mature and liquidity perspective.
December 31st start net debt to capitalization ratios, 59.6% slightly higher than where we work in the 2018, mainly due to our 2019 capital investment program $850 million.
We shoot $100 million equity two R.F.
Equity offering program and 2019.
Yep.
We expect issue 102 120.
Equity through our at market program at 2020.
<unk> 20 million on each end range from our guides additional equity helps fund.
Capital investment as we increased our camp X. from previous disclosures by 76 million for 2019 2020 combine.
Hundred 12, and a total for 2019 2023.
Well, that's the total acquisition like.
In the 58, 59% range to 2020, given her plans and best 669 million in <unk> 2020, we continue to target.
<unk>.
Jeez over the longer term.
Lemon speak turned up next program short.
Slide 16 illustrates or dividend track record as lend mentioning.
Back to deliver 50 consecutive years from increased 2020.
<unk> strong right <unk>, 12% annual increases in 2015 or 20.
Demonstrating confidence in our future growth potential.
We maintain our dividend payout ratio target of 50% to 60% of Vps.
I'll turn it back to hunt now for his strategic overview.
Thank you rich willingness flux Tina.
Our customer focused strategy grows long term for customers shareholders.
<unk>, Oh, just on being ready for our customers needs for safety reliability.
In a positive experience.
As we grow we continued to adapt to enhance the value of our service. We are a line or people processes technology and analytics discern our customers and grow our company.
Prime example is our Programatic based approach to safety and integrity investment to align all of our stake holders.
A long term approach not only prioritize investment by risk and customers need it provides clarity and consistency a clear line of sight creates more predictable operational financial regulatory processes.
Be ready for our customers is being ready for our shareholders as we invest in responsibly growing the value of our service to customers Burns grow alongside our customers from communities through a sustainable Foundation.
Based on the system needs across our expansive infrastructure, we expect to deliver long term or is broke the bugs utility average.
We also expect to realize incremental growth opportunities from generation and other larger projects combined with our disciplined approach to dividend growth long term sure older returns are expected to remain strong.
Slide 19 illustrates the strategic diversity of our utility business and the season that all the up our earnings.
You'll note that are sports and burst corporate earnings are driven by the gas utilities, well third quarter typically has stronger electric utility results.
You'll also note that last quarter, we started providing greater clarity of our diversity.
Including rate base estimated by state as of the end of the prior year.
The chart on the right illustrates this data.
And 20 nineties.
Slight plenty further illustrates our strategic diversity or expansive electric and natural gas systems require significant estimate to maintain upgraded modern nicer customers.
In addition, our presents across state state also delivers a strong base of growth opportunities.
Forecasting capital needs are illustrated and slide 21.
X. five years, we are focused primarily on projects and initiatives that maintain safety and reliability and foster customer grows.
You will note that are forecasted investments are excused appreciation, which will translate to future earnings growth.
In 2019 completed $850 million of capital investment exceeding our forecasts mainly due to.
Contractors and materials and the relatively mild weather the supported construction progress towards 2019.
We have rolled four or five year capital investment forecasts through 20, 2024, it's where a new toll of $2.7 billion.
We added an incremental $82 million for 2022 2023.
Provided an initial forecast of $470 million for 2024.
Are incremental capital included $22 billion for the investment necessary to expand the Corey Dillon project to the Julie approved 52, and a house megawatts.
As noted Empire quarters, we'd take a relative conservative approach to our capital forecast.
We include opportunities, we are relatively certain to occur.
And we at Apple was we gained more clarity and comfort around you know projects that support customer group.
We anticipate that additional capital opportunities are like the over the plan period.
And the outer years.
[noise] slide 22 illustrates or capital plan, it's utility focused what time that recovery most of these investments.
<unk> or per cent of our news five your capital forecast is in our utilities was 78 per cent of those investments received timely recovery.
Slide 23 illustrates our commitment to managing our environmental social impacts.
Retaining strong governance, and ensuring we continue to deliver a sustainable and strong future for all of our stake holders.
Slightly 24.
We are focused on operational excellence in serving our customers are teams safety performance continues to be better than the industry average, but injury is still one too many.
It's worth mentioning in that I'm proud of our team's performance, but blow to achieve Osha star Worksite status.
In terms of reliability. We are pleased that all three of our electric utilities for the top or twyla reliability in 2080.
The result, persistent team effort and focus on serving our customers reliably.
Slight 25 illustrates results is executing our customer opened strategy.
Very strong long term toll shareholder returns.
On flights 20, <unk> 2019 in our 2020 score cards to hold ourselves accountable to U.R. shareholders and our customers, we publish our major initiatives score card each year.
We group, our strategic goals for major categories profitable growth.
Valued service.
Veterans day, and great workplace with the overall objecting to being an industry leader and all we do.
To recap 2019 reinvested significant capital to serve our customers.
Well no energy solutions.
Dancing, our long term customer focused strategy across all areas of our business.
We've managed a lotta moving parts, but that's what we do best take care you tends to be ready for our customers that machine.
That.
Remarks, and we're happy to entertain questions.
Ladies and gentlemen, we are ready to open the lines for your questions.
If you wish to ask the question. Please press star followed by one on your touch tone telephone.
If your question has been answered Oh, you wish to withdraw your question press the pound key again Crestar one to ask a question. Please standby for your first question.
Our first question Cos I'm Julie into more than Smith with Bank of America. Your line is now open.
Morning, guys, it's actually Ryan Greenwald on for Julianne, Thanks for taking out machine.
Good morning.
So I'm 22, with 78 per cent timely recovery.
That take into account the unfavorable.
Isn't in Colorado.
Technically.
No that's an ongoing process.
We'll see but.
But.
It's it's a small or rape request on our part so what those numbers much anyway. However, it comes out of that rate increase request was about $2.5 million right.
And you guys have clarity on what raid decrease would be if.
The decision and it is approved.
No not not really.
Yeah, He's recommended decision.
We've made yeah, we we filed are exceptions to that.
Working our way through the process.
Got it and then are you able to provide any color in terms of this but in Colorado with R.M.N.G. and then the consolidated Hmm.
Please ask that question again.
In terms of how you guys are thinking about cat back spend in Colorado between R.M.N.G. that has the rider and then the consolidated then <unk>.
Yeah I'm in G. separate from.
Requesting consolidate the to Colorado Gatz District.
L.D.C.
A rocky mountain natural gas is separate.
Are you able to bright color in terms of deck capital for the state to break out between the two.
We have not broken that out we conclude rocky mountain natural with him just the Colorado gas total.
Got it and then just last they in terms of the incremental equity.
<unk> thoughts on the out years, and how you're kind of thinking about that.
Yeah, what which said you know in the past couple of quarters of there are incremental cap exhibitions, you're probably going to see 25 to 30 cents an hour incremental equity.
Yeah, you think about the additional <unk> for 2019, and 2020 is about $76 million, we increase our midpoint of our equity this year by 20. So that's that's about that ratio.
Yeah, Thanks for the time.
Thank you right.
Mm.
Thank you are next question comes from Michael Weinstein with Credit Suisse. Your line is now.
<unk>.
My money.
They just on that last just to follow up in the last question.
So but that imply that in normal equity like a starting point every year is around that 60 to 80 million dollar Mark and.
<unk>.
Capital.
If you look at our cat backs after 2020, Mike.
There's probably minimal equity score for the cap X., we disclose the after 2020.
Little and 2021 again to keep a healing to balance sheet up a bit but really significant when he keeps based on disclosed capital after 2020, but as we add capital <unk> incremental 25.
30 cents I'm the dollar 44 men.
That makes sense.
Yep that makes sense.
In terms of pale ratio you guys are I guess close to the top end of they are targeted range is that.
That's it come down into the middle of the range over time is running scroll or what are you thinking there.
Well, we've raised 12 cents each of the last two years.
You know it would dissipate to continue to grow.
Probably at a rate like that assuming board keeps improving evidence increases.
So I would expect the payout ratio to start to decrease as weekend you know.
Past 2020.
Should give you some indication of.
We're thinking about growth.
Gotcha.
And in terms of that debt ratio and how you're you're still targeting a mid fifties type debt ratio over time, but are you are you actually under any pressure from the rating agencies to to lower it I mean, you know higher leverage is always a nice thing I I suppose or.
Impression from regulators to whatever.
Well not <unk> rating agencies side might not worsley or in good shape there.
You know our other metrics such as that that so and so forth throw with great shape, it's really more about the regulatory construct and we'd like to get that no closer fifties for for those outcomes.
Right.
One question why Jen.
Hypothetically speaking if if if the ball is thrown back in your cord.
Contracting are getting a competitive price for contracts.
But you reconsider rate basing at that at that point, I mean is that something that might.
If you had to.
Good question of money and thank you for.
We'd have a number of options no of course, we hope that will improve the.
The current <unk> that we propose to.
Specific hopefully here from for all their normal routine about the end of this month February but you still hypothetically our genes focused on why this.
We don't get the approval from for can if you look at it from you fill these perspective.
60 megawatts Pasadena that will immediately come upon us at the end of 2022 early 2023.
So our team was considering a number of options with respect to what we might do with wide you one in.
We might.
Neither that capacity and you don't be have emerged in like customers you look at it from the generation perspective.
<unk> agreed and so we put into our 10 cake with respect to 50 megawatts capacity that six firing the P.P.A. expiring Oh like 23.
I also have an all requirements contract with another utility node expires around that time. So we'll go through the process of the integration resource.
Playing the file that next year and so there's a process, though most about capacity needs within our part of the country.
But it's the worst case scenario, we probably have to build something else.
Or a shining light, perhaps another natural gas plant something of that nature again, the site through the I.R.P. process yeah.
We'll see what the opportunities our respective has to be on the last at that point as well.
Okay, Alright, thank you very much.
If you.
Thank you, ladies and gentlemen, as a reminder to ask a question. Please press star one again that Star then once ask a question.
Our next question, but <unk> with Avon capital Your line is now.
Oh good morning.
When you want them to do.
Calling up a little bit on why Gen and perk.
Does during this process one of the issues you'd highlighted was the fact that they were very few market transactions to on which to you know based.
You know evaluation to present to ferch.
Is the transaction that's being proposed by northwestern.
Cards to purchasing.
Strip, a portion of colstrip considered and put market data point that would be considered bifurcated evaluating P.P.P.A.
It'd be my opinion no.
Not at all that's why we filed the application. We did pilots you may recall, we entered into a contract with P.P.A., what the city of Gillette actually using like in one so our position in front of her cousin that meets the quote unquote Edgar test yeah sure hopefully gifts.
Evidence for for to approve the P.P. data that we have before them, but no. We don't the considering the one dollar that northwestern paid for their the capacity colstrip would be really a viable.
Option for for to consider.
Okay. So you expect a a fish from for 5000 a month.
Well <unk> <unk> <unk> 60 day.
Well if you practice, we've filed responses to to question. They asked US right before Christmas December 23, yeah. So yeah. They follow their normal practice expect something yes late February perhaps.
Okay and can you give me a baby discuss this before and I just don't recall.
What's the context around the issue about not wanting to in Colorado about not consolidating the two gas utilities in terms that occurred piling that's pending and at this point what is the timeline for a final C.P.C. whatever.
Good question. So in terms of the the the process and where we all are we have filed exceptions to the <unk>. The decision. We also file comments or <unk> responses to exceptions, but <unk>.
Other intervenors as we look at the procedural schedule technically illegally.
And put new rates into effect, so an accord to our application on March one so with that understanding it's already anticipation.
<unk> Oh.
Than either one pick pick up the S.A.B. exceptions that have been filed in terms of a decision on on the ending case.
Through consolidation or we think it's the absolute right thing to do.
<unk> <unk> <unk> that we're going to have great success. There it's been a rich stream on the commission's efforts in our efforts and that stage and we hope that Colorado will soon followed suit should they I think we've probably in a position where we file a dozen other request and then nothing right. Okay.
<unk> continue to perceive that opportunity.
So for rates to go into effect on March 1st when would a decision need to be issued a by the C.P.C.
We don't know Abdulla kind of the point is that's that's certainly within the procedure process. So we just a paper house to to Michigan pick it up essentially any day.
Okay. Thank you.
Thank you.
Mm.
Thank you.
With no further questions I will return the call Decadal Lynn Evans for closing remarks. Please go ahead Sir.
Thanks, very much for your interest in Black Hills, and I really think or coworkers for delivering was fantastic 2019, looking bird sportswear success and 2021 mixture.
Just think our coworkers so much what they do for our customers their shareholders. Each day and thank you for your interest in Black Hills have a safety. Thank you.
Thank you for your participation in today's conference. This concludes the presentation you may now disconnect good day.
[music].
Oh.
Yeah.
[music].
Oh.
Huh.
[music].
Yeah.
[music].
Oh.
[music].
Oh.
[music].
Yeah.
[music].
[noise] Oh.
[music].
<unk>.
[music].
Yeah.
[music].