Q2 2020 PNM Resources Inc Earnings Call

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Thank you cool and thank you everyone for joining us this morning for the PNM resources second quarter 2020 conference call. Please.

Please note that the presentation for this conference call in other supporting documents are available on our website at PNM resources Dot com.

Joining me today, our PNM resources, Chairman, President and CEO top Pensacola, and Ontario, or senior Vice President and Chief Financial Officer, along with a special guest Chuck Eldred Executive Vice President of corporate development and find out.

Before I turn the call over to pot I need to remind you that some of the information provided this morning should be considered forward looking statements pursuant to the private Securities Litigation Reform Act of 1995.

We caution you that all the forward looking statements are based upon current expectations in estimates and the PNM resources assumes no obligation to update this information for a detailed discussion of factors affecting PNM resources results. Please refer to our current and future annual reports on form 10-K quarterly reports.

On form 10-Q, as well as reports on form 8-K filed with the FCC.

With that I will turn the call over to pop.

Thank you Lisa good morning, and thanks to each of you for joining us today [laughter] a few months since we've actually seen you off and we Miss you. We hope that you continue to be is healthy and safe as we are.

It's July 31st today, which means not only is national other Cotter day, it's the two year anniversary of trucks favorite joke here.

He did quite well at the first time, so we've set up for success. This time and given him. The punch line. Chuck what are you calling out a condo that's been blessed by the Pope.

But I had a similar comment when I heard the commission make a decision on San Juan.

And the answer this question is wholly guacamole. Thank you Chad great well done.

Before I get started I want to take our teams across new Mexico in Texas for all of their continued efforts to support our customers well also supporting their own families and communities.

In the face of Cobot 19.

Continuing to rise to the occasion and I'm extremely proud to be part of their team.

On today's call after I walk through earnings and other key updates I went to highlight our S.G. commitments and describe some examples of how these environmental social and governance principal are a key part of our business priorities.

So let's begin on slide four.

Our GAAP earnings per share in the second quarter of 2020 or 72 cents.

Ongoing earnings per share, our 55 cents compared to 38 cents in the second quarter last year.

Higher summer temperatures have helped us to offset the changes that allowed resulting from carbon related closures.

We are targeting the midpoint of our affirmed guidance range up to 16 to 26.

I will provide more on the financial details.

There's been progress on key regulatory dockets at PNM and TNMP Tee.

It's an update is Wednesdays decision from the New Mexico Commission on San Juan replacement power.

The commission decided to replace power from San Juan with a combination of renewable and battery storage P.P. Ace.

This fits in well with our goals for emissions free energy and we're committed to investing in the infrastructure needed to integrate these resources and enable new Mexico to realize its full renewable potential.

Our wired for the future program is even more critical in order to reliably deliver clean energy I didnt accelerated pace.

And our decoupling Farley at PNM, a procedural schedule has been set we're hearing scheduled for October.

Aligns with our request for a decision by the end of year and implementation in 2021.

In late June The commission issued an order for regulatory asset treatment of cobot 19 related expenses.

This gives us the ability to work with our customers and expand payment plan that meet their circumstances. During this unique time.

In Texas, we filed the settlement in our distribution cost of service docket, we plan to implement the new rates in September.

Also in September we anticipate implementing new rates for our second transmission cost of service filings.

We submitted this filing last week for recovery of approximately $11 million a transmission investments made since our last filing.

Turning to slide five I'll provide a status on carbon 19 impacts across our businesses.

In both new Mexico, and Texas Reopenings began in may at different levels.

In new Mexico. It was gradual and its cases have risen restrictions were reinstated for indoor dining at restaurants in Texas. The reopening was at a faster pace at a greater number of restrictions have been reinstated based on case numbers.

Our customer assistance and relief programs remain in place at those PNM.

And T N P.

Our top priority continues to be the safety and well being of our team our customers and our communities I have been so pleased with the way we have continued to operate under our pandemic plan.

We also continue to reach out and support our communities.

In addition to the low income assistance that we provide our customers for electricity bills.

We reached out to ensure that these customers know how to access other financial support and resources.

We support local restaurants with takeout orders that are delivered to first responders and other frontline workers.

These examples are just scratching the surface on how our team is exhibiting our core values, a safety caring and personal integrity.

They prove everyday that these are much more than the crafted statements on our website.

This same authenticity applies to the environmental social and governance principles that our woven throughout our vision strategy and objectives, providing the direction for where we're headed as a company.

Turning to slide seven we are taking further steps in our commitment to an S.G. strategy.

[laughter] environmental social and governance principles are demonstrated throughout our business in strategic plan [laughter], particularly as we work to deliver emissions free energy.

But there also demonstrated in the way we managed our priorities.

Our investment plans are fundamentally shaped around our sustainability strategy.

We are committed to turning the goals and policies for clean energy future into reality.

I understand that this cannot happen without a grid that can adapt and integrate changing resources and technology to deliver clean energy to customers.

It should be reliable and secure to withstand threats and risks and also resilient to restore service quickly after unexpected disruption.

As the amount of renewable energy on our system gross investments in voltage support and system redundancies are needed to integrate a higher proportion of intermittent resources. There continue to provide reliable electricity to customers.

Don will talk more about the details of these great investments planned as part of our wired for the future program [noise].

We will also continue to propose generation resources to support clean energy goals, while continuing to ballots cost and reliability impacts.

At times.

What are your resources, maybe the best option for customers at another time third party P.P.A. may present, a better option, regardless well make sure that our infrastructure can deliver the energy.

We also recognize that stakeholders that investors are looking for more disclosure on S.G. I am so we have renewed our focus on disclosure.

Slide eight shows some of the ways that we have integrated these principles into our business from our environmental goals to board diversity and our robust ethics program.

Well, we're visit each of these areas with you periodically and highlight example of how these principles are moving our business for work.

These are three areas that I'd like to highlight today.

On slide nine.

The first highlight is on our environmental goals and the new goals that we are announcing today.

We recognize that it is important not only to how our longer term carbon free goal by 2040, but also specific milestones along the way as we transition to cleaner energy.

Additionally, our environmental strategy, it's about more than just carbon is also about reducing and eliminating other air emissions and dramatically, reducing our fresh water consumption.

We've demonstrated environmental leadership for many years.

We entered into our first when contract and 23.

We participated as a founding member of the U.S. climate action partnership in 2007, and subsequently became one of the first in our industry to incorporate carbon costs into our resource modeling and decision making.

We supported the Waxman marquee Bill and more active attendees at the conference of parties in both 2015 and 2019.

Our goal to achieve 100% emissions free energy by 2040 is leading the industry for the full removal of carbon from our generation portfolio.

We're well down the path with significant reduction already achieved through investments in technology and the retirement of two units at San Juan.

Today, we are taking another step forward and sharing our emissions reduction path to 2040.

Reductions in carbon dioxide, Nox and Sox through 2020, and what we expect to achieve over the next 20 years.

We've also established goals around the reduction of fresh water used in our generation portfolio, especially because we operate in the area southwest where water is a scarce resource.

We're proud of the reductions we've achieved an or even more excited about where we're headed.

When it comes to truly integrating SG principle.

We don't see the E C S and the GE a separate pieces.

Turning to slide 10, our planned retirement of San Juan generating station is a good example.

The environmental mental impacts are the first the come to mind.

We've communicated that we're exiting coal no later than 2031, and hopefully sooner as we explore alternatives for our ownership in the four corners power plant.

There's also a social component to consider here, where it's simply going to walk away from the coal plants in mind that had been a way of life for generations of people at a mainstay of the regions economy.

We may not served the customers in this region that we believe that we have a responsibility to our team of employees and to the impacted community.

The energy transition back supports this responsibility with job training severance and economic development Fund.

It also adds another component to how replacement power is considered for coal fired generating facilities by requiring a preference for investments that will provide a property tax base for the impacted local school district.

Decide that has helped PNM provide a just transition away from coal.

Securitization is also part of this legislation, resulting in savings for our customers.

These social components are unique to new Mexico's plan for transitioning out of coal and PNM is proud to shine a light on this comprehensive plan.

It's not just a matter of getting out of coal it's doing either way that also best cost benefits customers and support communities.

Another area I want to highlight on slide 11 for PNM resources is diversity and inclusion.

Now this isn't something that we would normally highlight on an earnings call. Although it demonstrate ways that our company excels in the social category.

We are proud that the diversity of our workforce is broadly reflective of our communities that we serve in Texas and New Mexico and believe it is something that is important for our success.

We actively prioritize the hiring trading retention and engagement of a diverse workforce, including initiative to hire a more diverse workforce.

We believe this makes for a better work environment.

Promotes different perspectives and ideas that lead to innovation and more comprehensive decision making.

It also provides a better representation and connection to our customers and stakeholders and it broadens our own experiences for personal growth.

We look for ways to support diversity and inclusion in our communities as well. This summer we were the first to support a local nonprofit partnership to fund programs that support diversity equity and inclusion.

We also encouraged our employees across new Mexico in Texas to provide financial support for social justice organizations by tripling their impact with a two to one match and increasing the amount of donations that we match annually for each employee.

Our biggest highlight in this area is our fostering of tribal relationships.

Native Americans comprise about 10% of New-mexico's population and our team engages with numerous problems and tribes across the state.

Figured out ways to provide meaningful partnerships that have positive long term impacts for these communities.

We provide engineering internships, specifically for native American students to encourage pursuit of these careers.

We recently renewed our commitment to our Navajo nation workforce training scholarship program with additional funding for the next five years.

Last year, we took part in the initial additional pilot of the light up Navajo project, which has created by a partnership between the Navajo tribal utility authority.

Then see American public power Association to energize hundreds of homes that were otherwise using generators or flash lights at night.

Our teams that participated in this project we're truly inspired by the Joy. These homeowners is homeowners had when they flipped the switch for the first time and we are proud to continue participating in this project.

Unfortunately, our tribal communities have been hit significantly harder by cobot 19 than other areas of the state.

We've done some of the same things we've been doing in other areas donating food and supplies that we knew that wasn't enough.

We gathered available masks to deliver to the area. We collaborated to set up hot spot to provide internet access in multiple locations something that most of US take for granted when first responders are located an emergency or students are trying to keep up with their education.

None of these things will help cure the virus, but we hope that we can continue finding ways to make a difference in these areas that are struggling.

These are the times when we are truly called to live our values and take care of each other.

On slide 12, I'll wrap up by pointing you to the redesign page on our website at PNM resources Dot com for E.S.G. commitment.

There are you can find details on all of our environmental social and governance policies and programs and this is also where are you will be able to fight the new reports that we're committing to publishing this year.

We hope that this information will help you recognize the value inherent in our business with that I'll turn the presentation over to dawn for the financial detail.

Thanks, Pat and good morning, everyone turning to slide 14, with an overview of our 55 cents of ongoing EPS for the second quarter.

The increase over last year is largely due to mild weather that we experienced at PNM in Q2 of 2019. We also saw a reduction in outage costs at San Juan generating station as we move towards it retirement in the summer of 2022.

The 55 cents also exceeded our expectations for the quarter due to strong weather impacts and shifting in discretionary plant maintenance from the spring to the fall for Cobot 19 considerations.

Slide 15 provides a summary of how we are currently thinking about cobot impacts as we continue to progress through our planning scenarios. We've moved through this time period that was considered stage two.

And our original plan.

We've continued to see impacts and our customer class low trends, which we will update you on today based on current information, we have not seen any significant impacts to our investment plans from workforce disruptions or from supply chain issues. We do not expect any significant impacts in these areas as we move forward.

Turning to slide 16, I'll cover the low trends that we saw and the second quarter as well as what we have seen in July.

PNM residential usage continues to be around 5% tire.

While commercial usage has shown some improvements in new Mexico, our updated projection moving forward is for a 10% decline in commercial loads compared to 15% decline earlier this year.

TMT increases for volume metric load have offset decreases in demand based load.

The overall impact hasn't changed throughout the different phases of business restrictions in Texas.

We'll continue to monitor in these trends across both PNM and TNMP fee.

On slide 17, we feel comfortable with our results today and these projected load impacts and our affirming our guidance range of $2.16 to $2.26 with a target for the midpoint of this range. We have provided an updated quarterly expectation at the bottom of this slide.

Reflect our expectations for Q3 and Q4 based on this midpoint.

Now turning to slide 18, our 3.3 billion investment plan for 2020 through 2023 incorporates our wired for the future program. These transmission and distribution infrastructure investments are necessary to main maintain a reliable secure and resilient grid that delivers clean.

Energy to PNM customers.

The planned additions of solar and battery storage accelerates need for these investments to happen sooner to facilitate a faster transition of our energy mix.

Overall this plan continues to support our earnings growth target of 5% to 6% grew 2023, we have taken advantage of capital markets. This year to lock in long term financing at lower rates.

These interest savings benefit our customers long term and allowed us to optimize our financing plans at PNM to reduce the amount of shorter term financings. That's not included in rates.

There are also no change to our dividend growth plans, which are expected to be consistent with our earnings growth rate at 5% to 6%.

Our liquidity position has been strengthened by the equity and debt financings that we have completed this year overall financial profile remains strong.

On slide 19, I provided some details around our grid investments we have planned as part of PNM wired for the future program Weve categorize these investments into three buckets, delivering clean energy enhancing customer satisfaction and increasing grid resilient.

And accelerated transition to clean energy requires changes to our grid design. The grid was originally designed to handle steady increasing flow base load resources flexible and intermittent resources like quickstart, peaking gas units solar and wind werent contemplated in the way the equipment in power flows were designed.

Distributed generation resources and expectations for growth and this distributed storage.

And electric vehicles create a different type of strain on the system. This can be alleviated through expansion of existing sub stations with designs that will allow for more flexibility and expansion overtime and newer technology.

These improvements will allow our customers to benefit as this transition has made instead of having to wait for the infrastructure to catch up.

The second bucket includes investments designed to enhance customer satisfaction based on their original grid design customers customers may be served through a single feeder or substation, increasing the time it takes to restore power during an outage by rebuilding these theaters and integrating new technology, we can better pinpoint.

The cause of the outage and redirect power through different paths to restore service faster our existing infrastructure also doesn't provide much opportunity for new customer growth. So we've been adding sub stations across town to support new customers like the Amazon distribution center in Albuquerque, expanding our substations will allow for more or less.

I will service to our existing customers, while ensuring new customers can seamlessly connect to our grid.

We continue to see interest from companies looking to expand or developed in our service territory and these investments will support the states economic development efforts. The offer in these companies a quick interconnection to a clean affordable energy profile profile.

Portfolio the last bucket of investment involves increasing our grid resilient PNM has historically responded to aging infrastructure by changing out individual pieces of equipment as needed.

Our comprehensive plan will take better advantage of these situations to implement broader upgrades and redesigns and one area. After another the ultimate built.

Better platform for energy of the future. This also provides opportunities to add needed redundancy into the grid design that makes it better equipped to respond to a variety of major threats and risks from cyber security to wildfires.

Now turning to slide 20, I'll cover the financial details around the program. The 450 million of investments originally identified have been accelerated to reflect a faster transition of the system resources with the majority of these projects now planned over the next three years just over half of that Mount reflects transmission and.

Estimates that are recovered 50, 50 through FERC transmission rates and retail rates distribution investments are recovered entirely through retail rates. The greatest portion of these dollars fits into the bucket of grid resiliency as these projects often involve larger more expensive equipment.

Now, let's turn to slide 21 to look at how wired for the future fits into our overall investment plan that supports our earnings growth target.

As we transition our focus at PNM to deliver a clean energy future, we removed from our core planned new and generation investment. We've added 362 million of wired for the future investments in 2021 to 2023. We've also added an additional 20 million in 2021 it in empty for dish.

Ill distribution reliability improvement projects that had been identified.

In addition to removing San Juan replacement power. We've also removed the place holder in 2023 for the replacement at least capacity at Palo Verde, We provided notice that we returned the capacity under the lease and we are now conducting an RFP for replacement power proposals that will be filed with the commission.

We continue to look for ways to transform PNM generation portfolio and optimize our mix of base load and flexible resources. In addition, the energy transition Act included.

Increases to New-mexico's renewable portfolio standard, which may require additional resources. It is important to note that there is not an excess of transmission capacity on PNM system, and if new resources are added to serve retail customers or to sell new Mexico renewables to other states new transmission capacity.

Will be needed if any of these items. The result in additional investments for new resources or transmission capacity, we will again look to the balance out different capital projects to find the best a long term value for our customers.

Now turning to slide 22 will walk you through updates to earnings power that incorporate the changes to our investment plan overall increases in earnings outside of rate base have offsets shifts in timing of when investments are added to rate base. Our total investment plan of 3.3 billion did not change, but the timing of these new and.

Vestments means that some of them will not show up in average rate base until 2024.

The PNM retail FERC lines reflect these change these changes to rate base that incorporate our new wired for the future investment plans and removed replacement generation for the retirement of San Juan generating station in 2022, and the Palo Verde lease replacement in 2023, I also wanted to point out that the FERC.

Growth is slightly lower in 2021, but returns to what you've seen in our previous presentation in 2022, our purchase of the Western Spirit transmission line is now estimated to come online towards the end of 2021.

The equity financing line in 22 anyone has also been adjusted taking into account the delay in the purchase of the Western Spirit line, therefore, pushing up the need to issue mandatory convertibles until the end of 2021.

PNM items not in rates has been updated to reflect interest savings lower decommissioning costs related to Palo Verde and the retirement of our 65 megawatts of unregulated generation at San Juan by taking advantage of the capital markets. This year, we were able to secure long term interest rate savings for our customers and.

Demands are financing plans at PNM to reduce the amount of shorter term financing that is not included in rates.

And if he has increased in 2022 and 2023 due to additional interest savings compared to the cost to capital approved in the last general rate case.

As you can see after incorporating all these changes our earnings power for 2023 remains largely unchanged and we have confidence in our ability to deliver on earnings growth target of 5% to 6% through 2023 with that I'll turn the time back to Pat.

Thanks, Don before opening it up for questions. Let me take one more opportunity just saying the same here at PNM resources for continuing to perform brilliantly through these unique times.

As we move forward, we are excited about our plan to deliver clean energy and the infrastructure growth that it will take us to realize the full potential other clean energy economy.

We look forward to sharing updates with you each quarter.

And for example, just this week PNM and the PNM Resources Foundation won first place in the corporate champion category of the Philanthropy Award herein Albuquerque sponsored by business first.

Well, let's please open it up for questions.

Certainly and we will now begin my question answer session to ask your question you May Press Star then one on your question.

If you're using his speakerphone, please pick up your handset pricing the key.

Withdraw your question. Please press Star then too.

And our first question today will come from Brian Greenwell with Bank of America go ahead.

Good morning, Tim Thanks for taking my question.

Good morning, Ryan.

So the following the order earlier this week just curious how you guys are thinking about weighing your options on one hand, it seems like it kind of aligned with the she goals, but maybe causing some resiliency issues. So how are you thinking about options here for potential appeal and then timing around any development.

Yes, Ryan Thank you.

It doesn't make any sense to appeal.

The decision here, we may have some technical disagreements on some of the various statements that we're really excited about.

The big step forward in our plans to exit coal and fully supportive to move to clean energy.

We've got as Don laid out and I'll turn it over to him in a minute a lot of system investments here and now it's our job to solve for the transmission side to make this thing work. So Don yes. So if we look at wired for the future a lot of our system in new Mexico date back to 19 sixties, a 1970 is and as we move the generation Ford.

To renewables it really requires a resilient system and so we've been in the works in planning our.

Updates and upgrades to the system for the past year as the commission made this this rolling and we move forward.

We'll be able to execute on this that data at a quicker pace and we'll need to execute the on this at a quicker pace and that kind of fits into our wire to the future and supporting a clean energy profile.

Got it and then can you provide a bit more color on trends. So far in July specific we as we kind of seen reinstatement at some of the restrictions.

Yes, so I mean, what we've laid out in the assumptions in both Texas in New Mexico.

As what we've seen we saw a little better trend in new Mexico commercially we brought down from 15% down to 10% and I'll tell you in July it was a little less than that.

And we've had also a warm warmer than normal July as well too.

I'm, calling me think about at the only reinforced.

Segment of restriction the governor opposed was indoor dining.

Close.

And most of those folks that they can't are still in their spaces. There just having outdoor dining shell. So it makes US now we're all aware I.

Mask when we exercise so I think that what she's doing makes a lot of sense just trying to set us up for success in the long term by by closing indoor dining, but nothing else really changed in terms of what would impact our load.

Great appreciate the time thank you.

Hi, good once again, if you like to ask a question. Please press Star then one.

Our next question will come from Anthony credit with Mizuho. Please go ahead.

Hey, good morning, Good morning, Chuck Good morning, Don Good morning yesterday morning anyway.

That makes you guys.

Just hopefully some easy questions and.

Chuck a please appreciate the avocado joke.

I wasn't sure if we can avocado Joker oak joke, but.

The better than avocado joke.

Well I'd like to what.

I went to an all boys topic high school, so offline I do have a lot of hope jokes, but.

Just if we.

We could touch on just a trend in uncollectibles or you know our bad debt expense, you're seeing in Texas, New Mexico and then second question is when we look at wired for the future are there any projects that would that require a big approvals are big signing up.

Yes, so on our collections both the good news and both new Mexico in Texas as both the month provided for a regulatory asset a treatment new Mexico, Our Texas, one step further and we've already started to collect those.

Texas continues to go remember, we delivered to the retail electric provider not the end user customer. So we are protected in Texas that way as well in new Mexico, we have seen our uncollectible, our what we really call. It our delinquent there are a balanced go up it's increased.

Trends this time of year about $3 million to $5 million is what we track in our zero to 120 days.

Do it's up in the range of of eight to 9 million, which what we would expect with the with the disconnect policy turned off that being said, we do have the reg asset to ability to reported to the Reg asset it's tied to the Governor's order so when the governor removes the order.

Then we are able to go collect new Mexico in general.

Once we move towards disconnection Thats went off.

Portion of these customers will will make their payment that's pretty standard and Andy Our call Center agents, obviously, we're not getting a lot of inbound calls right now are reaching out to people and hitting on many people set up on a payment arrangements and they don't want to necessarily pay when the big built homes as Don said some of them well, but a lot of them are getting on payment arrangements. Now so you can answer that.

Second question.

Does that answer your first question Anthony and then your second question yet are there any big projects in the wired for the future that require citing approval correct.

Citing or could have potential delays.

A large transmission project that goes over a national Park is something that yes, no no no regulatory type approvals and that elements some of our substations might have some siding.

Approvals with local communities, but again, a lot of its restructuring and expanding existing a substation.

And repowering transmission lines, and replacing pulls that we already have right of ways on associated with that also and improving our distribution feeder system as well, which we already have right of ways on that as well.

Anthony We know we do a big substation has a process called.

For 40.

Through a commission, but it's just an informational filing south.

Great. Thanks, so much for taking my questions on hope everyone on the PNM teams. They felt the same with you we help see you soon.

Okay.

And our next question will come from Jonathan Reeder with Wells Fargo. Please go ahead.

Thanks for.

At the front end of the call.

Yeah.

Anytime Jonathan.

Hey.

You mentioned about needing to balance the need in relation to potential future capex needs.

Whether that company owned John are you going on.

The expansion.

You should not be thinking of those opportunities.

Yes power, rather simply displacing other lines plans.

You know first of all one of the balance in one of the good things about our wired for the future is it spread over a little little period of time, so, adding the additional renewables and.

From a customer impact, we don't see a significant impact.

If you look at our earnings power, we'll actually see when we when we roll out 2024 that our rate base goes up because these are spread over a longer period of time and we do have additional we've kind of laid out the initial program for wired for the future, but there is additional capital that will look at in this program.

That our VP of transmission is very focused on as we kind of build the resilience system, that's necessary as we progress towards.

Carbon free by 2040.

Yes, John that we have plenty of investment opportunities.

Even with wired for the future above and beyond that but as Don said, we've always tried to balance the customer impact. So if we don't have PNM on generation, we will be able to bring forward those capital impacts were holding those back.

If we would have had PNM owned generation because we didnt want.

Huge impact on customer bills. So.

And this move to renewable energy is only going to make for more investments on the distribution and transmission side, because we now need to have a resilient robust system and integrate those resources and a lot of the renewable sources are not near the blood centers. So you end up having to build transmissions, so, especially with the stay.

Policy aligned with renewables.

And transmission and our state Senators.

Depending on what happens on a national stage in November there'll be plenty of opportunity. So.

All right I mean, I guess you can keep your rating.

The increase requests pressure on rates kind, a reasonable we could still see upside.

Yes, this piece of spending and potentially earnings growth because you have an opportunity maybe I guess, you owe them costs or something like that.

Yep.

Eric.

That's fair.

And the procedural schedule for decoupling.

Well you see that initial feedback on call.

Thinking about.

Okay.

Yeah, I think the initial feedback we've gotten it is you know that.

Because of the legislation that was passed I think some of the grid scale very favorable about it there is always everybody wants to tweak here in there and there are some folks are concerned with single issue ratemaking, but because of the backup in the legislation, we still feel very comfortable about it.

Okay, just might be more around actual design.

Yeah, I mean, I think that I think a lot of people going to spend time in decoupling cases that we do arguing over design. So.

Okay, and then lastly, the 2020 renewable planned filing.

Doesn't include any company I'm resources this time around.

Now.

Okay. Thanks, so much sorry, Jonathan this much I got a question for you Oh, Oh dump Charlie Pamela No I just want to know how do you feel about plan Notre Dame Planet HCC Conference.

Yeah, that's kind of interesting right I mean.

Yes.

Got it.

[laughter] well it should be interesting are you guys might have to play Clemson right.

Yeah, Yeah yeah.

Anyway lease we got some football hey.

Yes.

That's right.

Okay. So [laughter].

All right. That's all I Wonder just curious thanks, Jonathan let's say if.

And this concludes our question and answer session I'd like to turn the conference back over to you didn't go on for any closing remarks.

Thank you call. It I just want to recognize that call was our operator, two years ago, and actually told us that avocado jokes. So we have to give credit to call for the avocado Joe. Thank you call. Thank you again, everybody for joining us. This morning, I Hope you enjoy your guacamole that youre going to have this evening with your Marguerite I want to Kayla and just make a tone to it.

Call and Chuck.

We look forward to seeing you all.

As soon as we can safely please stay healthy unsafe. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Your lines. This time and have a great national overcrowded [laughter]. Thank you bye bye.