Q1 2020 Earnings Call

[music].

Thank you for standing by that's just a conference operator welcome to the first quarter 2020 earnings conference call for Canadian Utilities. As a reminder, all participants are in listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions to join the question Q You May Press Star then one on your telephone keypad should you need assistance during the conference call Me My second one operator by pressing Star zero.

Now, let's turn the conference over to Mr. milestones Gay director Investor Relations and external disclosure. Please go ahead Mr. do again.

Thank you Saatchi and good morning, everyone district to join US for first quarter 2020 conference call.

With me today is president and Chief Executive Officer, Secrete cheaper executive Vice President and Chief Financial Officer tennis to Champlain.

Senior Vice President Controller Terror Cook.

Vice President Finance Treasury and risk calling Jackson.

Succeeding Dennis will begin today with some opening comments on recent company developments at our financial results. Following their prepared remarks, we will take questions from the investment community.

Please note a replay of the conference call. It a transcript will be available on our website at Canadian utilities Dot com.

Can be found in the Investor section under the heading events and presentations.

I'd like to remind you all that our remarks today will include forward looking statements that are subject to important risks and uncertainties for more information on these risks and uncertainties. Please see the reports filed by keeping utilities with a Canadian securities regulators.

Finally, I'd like to point out that during this presentation, we may refer to certain non-GAAP measures such as adjusted earnings adjusted earnings per share trends generated by operations and capital investment.

These measures should not have any standardized meaning under our perhaps as a result, they may not be comparable to similar measures presented in other entities.

And now I'll turn the call over to secrete for his opening remarks.

Thank you miles and good morning, everyone. It is indeed, a pleasure for me to be joining you and I'd like to thank each of you for.

Joining us today for our first quarter 2020 conference call.

[noise] I'll ask Dennis to give you the first quarter financial highlights in a minute, but before that.

I'd like to talk about how clean utilities is addressing the covert 19 pandemic and the slow down in global economic activity.

The changes we are all facing have caused far reaching concern and economic hardship for consumers businesses and communities across Htwo and most certainly in our own province here in Alberta.

In this time of uncertainty our people are working hard to ensure that we continue to support our customers and the communities that depend on our central services.

The pandemic slow down in economic activity.

Did not have a material impact on can aid utilities adjusted earnings in the first quarter Twentytwenty.

We have considerable resiliency.

Given the regulatory and long term contracted nature of our earnings.

The quality of our overall earnings has improved substantially in the last decade.

In 2019, 95% disconnect utilities adjusted earnings came from the regulated utilities.

This change has led to greater predictability in our earnings and cash flows.

But the long term impact on cutting utilities.

This crisis cannot be fully determine until the depth and like the current economic slowdown is now.

In the near term, we're responding to the situation by focusing on ways to enhance our financial strength.

[noise] to optimize our free cash flow and liquidity in this uncertain period, where we are reviewing our 2020 capital investment plan.

Our capital investment is targeted in our utilities and in our long term contracted energy infrastructure.

If there are ways to optimize our capital plan and postpone certain projects in order to reduce the burden on our customers we will look at that.

We're also committed to doing our part to limit the spread of covert 19 by following the guidance of local health authorities and governments.

In February we activated our pandemic response plan.

We implemented enhanced protocols aimed at protecting the health of our employees and their customers, while sustaining our essential services.

We continue to actively monitor the situation and we'll act accordingly, as new information becomes available.

I'm very pleased and proud to share with you that our employees have stepped up in this challenging time.

I have performed in an exemplary fashion to continue to provide safe and reliable service to our customers.

As we move beyond 2020, just vital that remain the we remain focused on what we do best.

Driving operational and regulatory excellence.

Maintaining affordable reliable and sustainable energy delivery.

Ensuring the safety of our people our customers and communities.

And creating long term value for our shareowners.

Continuing to execute on these fundamental priorities will enable Canadian utilities.

Pursue opportunities for the longevity and prosperity of our businesses, Alberta and abroad.

Now I will turn the call over to Dennis for his comments on our financial performance.

Thanks, Mike trade and good morning, everyone.

Canadian utilities achieved adjusted earnings of $179 million in the first quarter of 2020 compared to $200 million than the first quarter of 2019.

Lower earnings this quarter or mainly due to the sale of the Canadian fossil fuel based electricity generation portfolio in the third quarter of 2019, and the sale of Alberta power line in the fourth quarter of 2019.

We received gross proceeds of about $1 billion. The sales are those businesses and increased our financial strength.

In essence, we were paid up front for their future earnings streams that Doesnt mean that we are not recording their quarterly earnings today.

Excluding the foregone earnings from the sales at those businesses.

Our adjusted earnings were actually $8 billion higher in the first quarter compared to last year.

And this was mainly due to continuing cost efficiencies across our businesses utility rate base growth and lower income taxes.

During the quarter, we're also quite active on the capital investment front.

We completed an placed in service eminent keeps all natural gas transmission pipeline, which is the largest project in our natural gas transmission divisions history.

This project was completed with zero lost time injuries ahead of schedule and below the 230 million dollar budget.

[noise]. This 59 kilometer high pressure natural gas pipeline supports coal to gas conversion of power producers in the genesee and surrounding areas of Alberta.

Reducing emissions through the use of clean burning natural gas over.

Over the eight months of construction project employs more than 600 people from local nearby indigenous communities.

Meanwhile, construction continues on the fifth Salt caverns at our hydrocarbon starts facility near Fort Saskatchewan, Alberta with full operation targeted for late 2021.

And in Chile, the first three megawatts of our solar generation facility are expected to be operational in the second half of this year with the remaining 15 megawatts scheduled for completion next year.

I think free noted we are looking at our 2020 capital investment plan to see if there are ways to put less of a burden on our customers' needs challenging economic times.

In March the government of Alberta announced that residential farm small commercial customers would be given the option to defer payment up their utility bills, considering the pressures arising from the cope at 19 pandemic.

The government has indicated that the initial payment deferral will last for 90 days and the final terms of the program our expected beach expected to be completed in the very near future.

We already have short term financing options in place. If we are asked to supply financial liquidity for this program.

The bank of Canada has announced a commercial paper purchase program or C. P. P. P.

I think theres another p. maybe not.

To support the continuous functioning a financial markets.

Due to our strong credit ratings and existing commercial paper programs, both Canadian utilities and see lengths are eligible to participate in this program.

Sure. This program see you see link can issue up to an aggregate of $875 million in commercial paper.

Yes, Canadian utilities are she link or to take advantage of this program. It would increase liquidity beyond the $3 billion of normal course lines of credit that we already have in place.

Going forward Canadian utilities financial position is supported by a strong stable foundation of regulated utility and long term contracted energy infrastructure investments and services.

They provide the platform to continue our long track record of exceptional returns for our shareowners.

Includes our prepared remarks, and I'll now turn the call back over to mouse.

Thank you Dennis music Freedom.

I'll turn the call it turned out to our conference coordinator for questions.

Thank you.

We will now begin the question answer session.

Just a time, we ask you limit yourself to two questions. If you have additional questions you are welcome to rejoin the queue.

To join the question kill you made press Star then one on your telephone keypad, you'll hear a talent acknowledging your request if you're using a speakerphone. Please pick up your hands that before passing any keys to with jobs and the question can you. Please press Star then you can.

Once again anyone on the conference calls ambitious to ask a question May Press Star one at this time.

[noise] just first question is trying to Linda Ezergailis TD Securities. Please go ahead.

Thank you.

I'm just wondering if you could give us a sense of your capital program for the next couple of years.

It might be considered a baseline minimum integrity type spend at that you would not decrease your plan below and can you give us a sense of the bookends of.

What sort of level of capital reduction.

Might be contemplated depending on how much you know social did sensing is required how much can be deferred.

To help that your customers any sort of context, you could provide would be much appreciated.

Well. Thank you for the question Linda secrete share I'll, let Dennis talked to the specifics, but maybe just by way of overview. Our capital program would be generally around two thirds, what I would call kind of sustaining maintenance of the existing infrastructure and about.

One third dedicated to growth in terms of adding new customer connections or new facilities [noise].

Clearly the one third of growth will be a difficult thing to forecast depending on the outcome of this crisis and the duration of the sort of economic impact there from.

No I would say our teams have been very effective at creating protocols to continue to be productive in executing our capital works, despite maintaining social distance.

And one of the inventive things that came out of this crisis is a little application you see what I see.

Which allows our service people to ask our customers through their phone to give them a visual of what's happening with their appliance or their gas service.

And that's allowed them to do want a lot more diagnostics and two in some cases resolve issues without entering people's homes.

So a couple of creative things that have helped there, but I'll, let dennis talked to the specifics of the the numbers.

Thanks.

Good morning went up.

Yeah.

Our capital plan for 2020, as you know as a roughly $1.2 billion. That's the same for 2021.

60 mentioned, one third of that as growth two thirds maintenance capital.

The the growth.

We expect that to soften definitely us a lot of our customers have announced pullbacks in their capital programs throughout the province.

A.

There are also must say pressures on the maintenance capital as we see that demand for electricity, especially reduce or very cognizant of the rate impacts on our customers. So to the extent that we can.

[laughter] defer any.

Any maintenance programs into the future that would go to help our customers with be able to afford their bills, especially on these these tough economic times. So we are looking at all of those elements and Unfortunately, I don't think any of us know the depth.

Mike So the.

Pandemic or the consequent economic impacts.

We can't tell you Oh with with great certainty as to the impacts of our of our 2020 and 2021 plans at this moment.

Sorry, I can't help you with a lot of specify specificity on.

On those numbers.

That's very helpful context, Thank you and time, there's a lot of uncertainty I recall, the last time out your company faced as such uncertainties during the financial crisis and still had it appears that better access to the capital debt capital markets, then and then a number of other entities most other entities and so you're.

Financial strength uncertainty well.

Just wondering I realize that your focus is on a safe operations liquidity.

And your continuing operations, but I'm just wondering at what point like conditions would need to be place for you to forward. Your strategy are diversifying outside of your core historical geography, and potentially deploying the proceeds of that.

The bigger recent asset sale to potentially opportunistically investing in businesses that might be more attractively valued at over the next little while than than you would've been seeing that prior to that pandemic.

[noise]. Thanks for that question Linda secret share I.

I would have to say, we will continue to take the huh.

Very prudent approach to acquisitions.

To ensure that they are accretive and value to our shareholders.

We are clearly in this time of uncertainty.

Have as a priority to remain focused on our liquidity in our financial strength.

Which I agree with you will differentiate us and.

In this sort of economic recovery and there may indeed be opportunities present themselves through the economic crisis that would.

Fit our criteria for a strong strategic accretive acquisition.

But we will we'll continue to keep our priorities on liquidity and financial strength at the moment.

Thank you I'll jump back into queue.

The next question is from Murray, just shy of RBC capital markets. Please go ahead.

Thank you and good morning. My first question, it's just a carry on from the.

Review capital plans.

Obviously, you're under PBR a framework for two years just distribution.

Companies in Alberta, and C O S forward to.

Can you discuss how Ah.

We should view, our we told you achieve Cuba arteries.

With capital being deferred or delayed.

Sorry, Mris assist Dennis I didn't.

Catch the entirety of your.

Your question, but about I answer a that's or what I.

Thanks, I heard on our cost of service companies start transmission utilities are our gas transmission company, we're locked in for Twentytwenty with final rates being set up so we will be applying and believed the second quarter far rates for 2021.

And beyond.

I'm not a lot of volume risk on transmission or neither the electricity in our gas transmission companies.

Electricity, we are in the process of our 2020 and beyond general tariff application.

That's proceeding its way through the sees processes and we hope to find hope to have a decision in early 2021 on that.

With regards to our PPR companies.

The as as you're aware under PBR too.

The commission has baked in to our rates a notional.

Call it $300 million per year per utility.

And that's the average if what we had spent over the initial term of PBR, one [laughter] to the extent that capital pressures come down for therefore, our gas and electricity distribution companies covered by PBR [noise].

The.

Revenue won't change as a result at that capital, but our costs well will go down our depreciation will go down financing costs will go down and that Delta.

It goes through to the bottom line. We've included those upsides there savings in.

Damn DNA and Weve.

Included them in the operational cost savings category that you see in the descriptors there.

So its a.

The impact on the PBR companies is also cumulative so the amount that we spend more than the notional budget or spend less than the notional budget over each year of the five year PPR to framework carries on so what we do early on in.

The PBR period.

10 use to impact earnings.

Throughout that five year period, so as we go later into the PBR.

Second generation.

The impacts could magnify.

That's how we we would expect to see.

The.

Ability to achieve premium returns.

Higher than the.

Approved return continue for those two companies.

Bearing in mind, all the while the safe.

Deliverable deliverability of our electricity and natural gas.

Hopefully coming to the point at the end of PBR to where it will be able to pass on those savings to customers through another.

Rate cut as we were able to do coming out of the first generation of PBR.

So you have any follow up sorry, margus, but that was a vague and my apologies.

My my audio is not as clear.

My second question relate to dividends. So obviously had a company as a 48 year record.

Increasing it about you on the board wanting to give up that crown.

But in prior disclosure, it's a dividend growth is tight growth of your assets. So if indeed, we do you see 2020, Capex, you know coming down or below where it how should we view the potential for for next year's dividend growth.

No I mean, you're you're right in our in our Mdna, we were pretty clear now we are aiming to grow dividends in line with our sustainable earnings growth.

If you hold the returns on equity.

Flat.

Growth in seat you would mainly come from that rate base growth.

And as we've been discussing potential pulled back on our capital.

With that in turn.

Could or will inform future.

Future dividend increases.

Bearing in mind.

When we do approach our board of directors for our with our recommended a dividend increases we do look at the long term outlook for for the company in our earnings the credit rating strength as well as the payout ratio. So there are a number of factors beyond just yeah.

The one year earnings when we go to our board of directors recommending our dividend amounts.

Thank you very much.

Thanks Mary.

The next question his remarks, Jarvi FC Ibcs capital markets. Please go ahead.

[noise] Thanks, good morning.

Like you guys, implying that the transmission utilities are pretty resilient and gas. Since you guys are shrinking a bit more resilient given its connections that were caught sort of peak peak season hearing a one care. So it comes to electricity distribution being the most economically sensitive is that correct that maybe there any initial data when its smart metering data show.

So what has happened with a volume levels last.

The month at a high here.

[noise] good morning, Mark.

We don't have.

We don't have clear data.

From a.

The demand on the electricity and gas businesses.

In detail account sense.

On April 1st.

HM.

The.

Gas distribution division about 80% of their revenues comes from or residential customers through their fixed and variable charges.

Given that they are they are more resilient than they electricity distribution company, where say over two thirds of their revenue is from industrial and large commercial customers.

There are some protections on the electricity.

Distribution company to protect them from falling demands through contracts and ratchets that they haven't place that.

Necessitate the size of facilities that are put into those customers.

So theres some protection there.

Included in the PBR framework, there's also an ability to apply for recovery of costs due to Axogen us events beyond management's control [laughter] and those costs, which we have been able to successfully recover from.

From.

Customers.

Include lost revenue, we're able to recover lost revenue through the Calgary floods and the Fort Mcmurray fires.

We believe that this pandemic and consequent economic collapse qualifies us.

Exogenous event.

And we would be looking for some regulatory protection with regards to potential loss revenue.

That being said once you get into the regulatory.

Process.

Nothing as a as a guarantee that's for sure.

That's helpful that are you apply and then you've seen enough pressure Oh volumes are we thinking like anything would have to go to that that dr. exogenous.

Events application and then maybe just can you drive in more detail on the deferral, though that's gone through in terms of how that impacts EPS on cash flow me.

[noise] I'm sure.

In order to qualify for those or does that factor applications to cover recover costs through exogenous events. It needs to meet a materiality factor and those factors are different for each of the electricity and gas.

I'm, sorry, I don't know those.

Thresholds off off the top my head, but I'll say, they're relatively low like in the 5 million dollar kind of a range. So we would need to take a look at what that cumulative impact.

On revenues and potential cost I would imagine to see what that impact to our what the what the gross impact for any significant element would be before we would be able to indicate whether that.

That factor would be applied for or not.

Second question with regards to the utility bills deferral.

There as we are right now final terms yet to be a.

Ironed out and announced by the government.

We do not believe that there would be any impact on earnings as a result at the utility Bill deferral. It would just be.

A timing difference on that cash.

Yeah.

We were asked to.

Backstop the.

Mm Hmm.

Lack of cash flows coming from.

Dealt deferral.

We would look to be recovering our costs all of our costs, which should and which would include.

A fair return for providing that backstop.

The way, it's leaning right now it doesn't appear that there would be significant call on the utilities for the.

Backstopping of.

The utility bills that would come from government or government agencies.

Assets currently thought of but.

As I say those final terms have not yet been announced.

We expect them shortly at the program was announced on March 18th and most effective March 18.

So we're all looking for certainty and clarity side most of the process and we hope to have that are in very short order.

Okay, we'll watch that thanks.

Thanks Mark.

The next question is from Patrick Kenny as National Bank Financial. Please go ahead.

Hi, good morning, guys. So notwithstanding the the mountain Novan certain deals every now and.

And I know it just came out yesterday, but I wondered if we can get your initial thoughts on albertus plan to relaunch the economy and.

How at least phase one.

And potentially phase two might mitigate any lost revenue over the coming quarters, if all goes well.

Well, thank you Patrick secrete here.

No I think Thats a question that is looming heavy on everyone's mind at the moment is.

What are the risks inherent with the various scenarios around.

Relaunching, our relaxing the isolation measures that are in place today.

I have to say that I think a wise approach is indeed.

One that will continue to measure as you go through the different phases. The the impacts are implications of of the relaxation.

And to the extent the Alberta is extremely well positioned from a testing perspective relative to other parts of Canada and the world.

I think we'll have a pretty good measure on the success or the ability to continue on the phased rollout of the relaxation.

[noise] all that being said I think it doesn't take much of a setback too.

Have you revert to the elongate the the isolation piece, so I'd hate to speculate on the design of the different programs across Canada. Now success will be I think every province faces a slightly different circumstance.

I'll leave it to the health authorities to determine how aggressive they want to be in their rule plants.

Thanks for the question its its weighing heavily on everyone's mind.

Yes, absolutely no fingers crossed all goes well.

And then maybe just to touch on the the exposure to the oil and gas activity levels here.

So.

Based on the production curtailments that have been announced publicly so far bye.

Various oil sands producers and in other you'd be companies.

Would you have an internal forecast as to how much demand destruction, we could see for your electricity distribution business.

And perhaps maybe up how much of that loss could be offset by.

You know some higher residential load.

Until the kids go back to school and get off the video games.

[noise] Uh huh.

My short answer is no I don't have a forecast.

The.

It goes into our capital plans sure disconnects, we if we didnt see a much of any softening in the revenue for Q1, we you know why said earlier, we don't have any.

Hard data.

Indicating the.

Last kind of six weeks.

That would be able to extrapolate and.

Come up with a forecast for the year and beyond.

Yeah.

Crisis will probably not.

Not be solved by the end of this year.

Then we go into.

And well therapy recovery, a full recovery in Alberta and [noise].

I think.

Most would.

Most prognosticators would go later rather than sooner on that.

We did talk about the.

Huh regulatory protections on Facebook.

That the distribution companies can avail themselves to with respect to the exogenous events.

We would accumulate fills a lost revenues and costs for the related to the pandemic.

And.

We may be in front of the Alberta Utilities Commission with another said factor that doesn't help the cash situation.

Until such time us out would be resolved.

If you.

Look at that.

Relative.

Decrease in cash even coming from a large pulled back we have Uh huh.

Over $3 billion and cash and committed Craig Craig committed credit facilities that are most certainly it would be able to weather weather. The storm I don't think that are the revenue and enough that got lost or curtail the revenue.

What.

Huh.

Wouldn't get anywhere near the $3 billion.

Given the given the proportion that the oil and gas sector.

Contributes to our revenue, but it's a cumulative we are we are looking at it and we'll see how the.

How much production.

Doesn't de go forward in the in.

The remaining quarters of this year and the potential for to carry on into into future years.

[noise] so it sounds like you're definitely Rana King liquidity, a head of strategic M&A and that you know a billion dollars of cash that you're sitting on today is going to be.

It's going to be there until you have further clarity as to the the depth of this downturn.

[noise] does it create mentioned it earlier you know with regards to.

Strategic M&A.

[noise] are always.

You know we've positioned our company for long term sustainable growth, we were able to conclude those asset sales last year, having the additional billion dollars in the bank, it's a great comfort.

And days like fees, but we are also mindful of the of the future the storm shall pass.

We do have the financial strength to whether that storm.

Add on.

Keep our eyes out for the long term growth of the of the company. So once the once we do get a better read on the impacts of hope it and whether Theres, a second wave or a third wave on reopening the economies and.

And how that all plays out.

The recovery in the price of oil and how our customers respond.

Yeah, we'll we'll certainly be in a better position.

That does that won't take up all of our liquidity and all of our powder.

As we go and continue to.

Look to grow the company for long term value for our share owners. So it's a isabel.

Okay, that's great. Thanks, Dennis like secret.

Thanks Pat.

Once again, if you had a question. Please press Star then one.

The next question is from Andrew Petski of Credit Suisse. Please go ahead.

Thank you good morning, I, obviously, both been an industry for a long time and you've seen a number of economic cycles and clearly there's some attributes and that's one that are similar and there's a lot of things that are very different.

But when you put the context of what you can see now from your bad debts customer defaults in the current environment, how does that stack up versus some of the past downturns in past cycles you've seen.

[noise] [noise], it's a great great question, Andrew and I'd have to say that we are still very early days in this in this cycle and I think so much of it will depend upon what what the relaxation and what the restart of business.

This is.

How that scenario unfolds.

That it's a little tough to compare against full cycle.

Economic downturns that we've seen before.

There are a number of different scenarios around how the recovery will take hold.

You know simple example would be just how quickly can we put the unemployed back to work in the province, what will that unemployment run rate be for the next little while in so there are number things to watch here.

That.

It's difficult in my mind to kind of give you a comparison is this going to be.

Tougher I, certainly think it will be more difficult on Alberta than the OE, eight or nine financial crisis, which we.

We seem to be able to for the most part escape a significant amount to the impact to that.

But it really depends upon what the recovery unfolds, how it unfolds and how quickly that happens in my mind.

So not a very definitive answer, but this one will be different.

Okay. Appreciate that and then Dennis you mentioned the banker Canada's commercial paper purchase program I think I got all the pieces in there.

Did you only mentioned that in the context of that's a potential liquidity factor in the event that the market freezers and you would be eligible for that.

[laughter].

That would be in addition to to the $3 billion that we have for liquidity. It's just.

Additional support of measure that we have.

Given.

Given the strength and quality of up to see you name.

Okay, great appreciate the clarification on that thank you.

Next is a follow up questions from Linda ever again, Thats TD Securities. Please go ahead.

Thank you.

Realize there's uncertainty related to the generic cost of capital proceeding, but I'm wondering if you can get a sense of.

What factors would need to be in place or that to reduce.

Received any sense in the regulator and if for some reason its differ substantially I'm wondering if there's an expectation that perhaps the current framework.

For establishing an hour or we would apply to 2021, if you can provide any contract whether it be.

Any discussions you have with stakeholders or just based on your.

Understanding of the regulatory environment in Alberta, it would be appreciated.

[laughter] Linda I would.

It's a pretty here and I will pass it to Dennis because he is far closer to the regulatory ins and outs, but I'd have to say from my perspective that the.

The challenge in trying to set the return.

And equity sickness commensurate with market.

For 2021 is not a boat the.

Not being able to physically have hearings and people in the same rooms, it it's going to be a boat.

Ken the market signals be properly red to give you any confidence in what that decision should be.

We've seen such disruption in the debt markets in the capital markets.

And for me, it's how can you.

Properly assess the evidence.

To come up with a well reasoned decision that you can be comfortable with will be appropriate in the 2021 timeframe.

Given that we're a nine months left before that period starts and I don't I don't see things settling down at the moment, but I'll turn it to Dennis because he is much closer to the process.

Great question Linda.

And then.

And in mid March the AC suspended that the GCL see preceding indefinitely.

They would revisit it every 60 days 30 to 60 days.

Well, we've responded with its been a need to have prospectivity and certainty.

And.

All of our kind of comments are.

And encouragement for the utilities commission are in that vein.

The first 30 days past and the you see asked for comments to be filed yesterday.

And all of the utilities UBS.

Recommended that the existing parameters be extended to 2021 on a final basis. So carry on the 37% equity an 8% return as final for next year.

All of the customer groups.

Indicated that they needed.

More time.

To update their evidence given the.

Economic certainties that we're faced with now compare to the conditions that were.

In place in January when there are additional evidence was filed.

Don't know how the you see is going to proceed without.

But.

We know that our.

Customers our investors.

We're all looking for certainty within which that we can.

Operate.

Safely and effectively.

The.

Fair return standard with regards to having a attraction and retention of capital.

In these volatile times will say is even more important that we do.

Bolster the regulatory certainty that we haven't this province and strongly encouraging the.

The utilities Commission to make sure that are that are province stays open for business.

And.

And to help out by getting the giving the utilities certainty.

Prospectivity that we require.

Thank you for that context, I hope they hear you.

Question. Thank you.

Thanks Linda.

This concludes the question and answer session I would like to turn the conference back over to Mr miles Duke in for any closing remarks.

Thank you operator, and thank you all all of you for participating today.

Just a reminder, next Wednesday may six at 10 Am Mountain time is our Canadian utilities annual meeting, it's a virtual meeting so you can log in.

Or web site and thanks for your interest in our first quarter conference call today, and we look forward to speaking with you again soon.

All right.

This concludes today's conference call you may disconnect. Your lines. Thank you for participating and habitats going today.

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