Q1 2020 Earnings Call

Pony and so what we're trying to share with you, though with there was as residential sales increase it covers.

A large percentage of any deterioration in load from the other classes all combined.

Got it that is very helpful. Appreciate all the color.

And congrats on the keeping the guidance had a utility thats that claim PRASM just curious if you can.

Potentially comment on your any initial reactions here your peers strategic review process.

No I.

Probably no comment I saw that right before I walked in here Richie so.

I'm reading it the same time you are.

Got it okay. Thanks a lot.

Thanks again for all the time I'll jump back in the queue. Thanks, Rich you have great day.

Hi, Thanks.

Your next question comes from your line up into team from Goldman Sachs. Your line is now open.

Good morning, and I'm glad to hear that you you guys are all doing well and staying safe.

Good morning, Ensue I hope you are as well everybody they're healthy.

We are doing okay. All right now. Thank you. My first question is on the the deferral filing. That's currently for the Oklahoma Commission I know I believe you except that there hearings.

The today on the release or 10-Q, one is the expected decision for such a deferral and could you detail a little bit of what would be embedded.

In that it or included if that is a pretty.

Sure. So we would hope that the the approval is today and we expect that just a little color around that into this is for deferral of those bad debts and all the cobiz related expenses that were encouraged but.

A piece I want to make sure is clear this is not an O.G. E filing.

We certainly led the effort that we created a coalition of all the utilities gas utilities included in Oklahoma and Im. So there's a utility filing that was made over the Oklahoma Core Corporation Commission and as can be heard. This morning, we would hope to have an order this morning.

So it be bad debt expense and I guess could related glenham cost, yes, yes, yes, and I mean, that's not that's not a yes that's true.

Got it and nothing nothing in there that includes any corporate related sales.

No I.

Understood.

And then just on the the grid enhancement plan docket. It seems like the schedule that you'd laid out is pretty much in line of any any logistical delays that you are saying because of kogut.

Not I'm not at this time I mean weve.

The the commission is still there going to have this hearing today virtually.

There are still conducting business as usual and a.

We're in constant dialogue, but no change this this point.

Understood. Thank you very much in a stay safe everyone.

You too.

Your next question comes from the line of Anthony Cabell from Mizuho. Your line is now open.

Hey, good morning, swine good morning, Steve Hi, Good morning, I think morning, Anthony everybody well at home.

You are a little.

A little crowded, but everyone is healthy how about yourself out likewise likewise.

We're making the best of it I just like a telephone would have an instant. His question. You said it was a group that for a firewall for that covert related expenses and making bad debt expense has the company quantified what their forecast that bad debt expenses to be or 2020 or 2021.

No no we haven't.

There's a slight tick up at this stage.

But nothing material and as you know we're already allow 3 million a bad debt expense in base rates.

And we're not there do any chance here anything you know what was the number eight that utility head to head in Aliento nine crisis.

Well, that's something that you'd have handy.

Yeah, So we had 3.1 million.

Well, we're again, where we have 3 million recoverable in base rate.

Well, if I could shift to the write down and I think you spoke about the the ability to amortize that maybe it it to 49 million dollar.

Impact annually is that something that now has to be funded with $49 million of additional equity.

No no it's really an accounting adjustment so.

Our way to think about Anthony is we just wrote down you know our book value and enable because their cash flows are strong didnt didnt have a write down so they're recording hi.

Hey, or depreciation then effectively we would would pass through to US. So we're now a creating that back up to equalize what what they are to basically eliminated.

Depreciation that they are passing through to us for the write down that we took in that creates that accretion event, but has has really no cash implications whatsoever.

Got it and lastly, although it's a really small party officials, but decline or anything in drilling activity or any won't get read through to.

The utilities business.

You know.

Surprisingly through four quarters, it's held up we we do expect some.

Deterioration there but of all of our of between residential commercial industrial no afield oilfields, a smaller sector and as small as contributor to margin.

Less than 8%.

It's important to.

Jobs and things like that but it's not but it's not a big driver.

In the long Island force.

Great. Thanks for taking my question that I hope everyone stays healthy out there.

Thank you Anthony I appreciate your support and use take care your family's stay healthy yourself.

Thank you.

Once again in order to answer your question. Please press star one on your telephone.

There are no questions from participants online I will now turn the call over to Mr. Shao Trotsky for closing remarks.

Okay. Thank you for that.

Thank you all for joining us today. Thank you for your interest in energy.

Please take care of yourselves and those around you and stay healthy all the best and have a great day.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.

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