Q4 2020 NiSource Inc Earnings Call
And then.
Yes.
And.
Brown.
Ladies and gentlemen, and thank you for standing by and welcome to the Q for 2020 <unk> earnings Conference call.
All lines have been placed on mute to prevent any background noise and.
And after the Speakers' remark and there will be a question and answer session to ask the question. During the session you will need the press star one on your telephone keypad.
If you should need operator assistance during the call. Please press star zero.
I would now like to turn the call over to your speaker today, Randy Hulon, Vice President of Investor Relations and Treasurer.
Thank you.
Please go ahead Sir.
Thank you and welcome everyone to the Nisource fourth quarter 2020, Investor call. Joining me today are Joe Hamrock, Our Chief Executive Officer, Donald Brown, Our Chief Financial Officer, and John Anderson, our Chief strategy and risk officer.
The purpose of this presentation is to review the nice versus financial performance for the fourth quarter and full year of 2020.
As well as provide and update on our operations growth drivers and financing plans. Following our prepared remarks, we'll open the call for your questions.
For today's call are available on Nisource dot com before.
Before turning the call over to Joe Donald and Shawn just a quick reminder, some of the statements made during this presentation will be forward. Looking these statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements and.
Information concerning such risks and uncertainties is included in the MD&A and risk factors sections of our periodic SEC filings.
Additionally, some of the statements made on this call relate to non-GAAP measures for additional information on the most directly comparable GAAP measure and a reconciliation of these measures. Please refer to the supplemental slides and segment information, including our full financial schedules available.
And at Nisource Dot com.
With all of that out of the way I'd like to turn the call over to Joe.
Thanks, Randy Good morning, everyone and thank you for joining us hopefully you've all had a chance to read our fourth quarter and full year earnings release, which we issued earlier today.
The 20 was the year like no other.
Despite the challenges of the historic global pandemic. The Nisource team remained focused on our core mission of providing safe reliable energy to our customers and the communities we serve all of it.
At the same time, enhancing our position to execute on significant long term growth opportunities.
Our 2020 financial and operational results reflect the resiliency of our business and continued execution of our safety and asset modernization programs as well as our transition away from coal generation.
In Indiana, we completed two wind power projects and December and we continue to expect that our infrastructure and generation of investments will drive compound annual growth of 7% to 9% and net operating earnings per share from 2021 through 2024, while reducing <unk>.
Green House gas emission and 90% by 2030.
Let's turn now to slide three and take a closer look at our key takeaways.
And 2020, we delivered non-GAAP net operating earnings of $1 32 per share as our cost management and the regulatory mitigation efforts reduce the financial impact of the COVID-19 pandemic.
In addition to some I've mentioned already we achieved the number of other key milestones in 2020.
We invested $1 $7 billion, and our gas and electric utilities, primarily on safety and asset modernization, which remains the top priority.
We advanced and matured, our safety management system, and safety enhancement initiatives and 70% of our low pressure systems are now protected with automatic shutoff devices and remote monitoring.
We launched our transformative Nisource next initiative to support our safety initiatives build organizational capabilities and enhance our efficiency.
We sold the Columbia gas of Massachusetts business, and completing the transaction and eight months.
We lowered the weighted average interest rate on our long term debt by 60 basis points and enhanced our liquidity through the COVID-19 pandemic.
And we continued to see strong demand for natural gas experiencing a net gain of more than 30000 gas customers across our six state footprint.
We are today reaffirming our 2021 non-GAAP net operating earnings guidance of $1 28 to $1 36 per share.
Consistent with the long term growth plan and we provided at Investor Day, we expect to make one nine to $2 2 billion and annual growth safety and asset modernization investments from 2021 through 2024, and one $8 billion to $2 billion and renewable generation of investments.
2023.
I will note that we do expect and order and our Pennsylvania base rate case, and the first quarter with rates that would be retroactive to January 23rd.
Now I'd like to turn the call over to Donald who will discuss our 2020 financial performance in more detail.
Thanks, Joe and good morning, everyone looking at our 2020 results from slide four we had non-GAAP net operating earnings of about $508 million or of $1 32 per share compared to non-GAAP net operating earnings of about $495 million of $1 32.
And two per share and 2019.
I would note the loss of the fourth quarter earnings related to the sale of CMA reduce 2020 non-GAAP earnings per share by approximately five <unk>.
Looking more closely our segment 12 months non-GAAP results from slide five.
Operating earnings were up about $36 million for the year and our gas segment.
Operating revenue net of the cost of energy and track the expenses were down about $19 million due for the sale of CMA, partially offset by infrastructure program revenues and increased customer growth.
Operating expenses also net of the cost of energy and track the expenses were down about $55 million, mostly due to the CMA sales and lower employee and administrative expenses, partially offset by increased COVID-19 related costs.
And our electric segment 12 months non-GAAP operating earnings were down by nearly $40 million, driven primarily by and approximately $16 million increase and operating revenue net of the cost of energy and tracked expenses due to new rates from the recent rate case, partially.
The offset by Covid related impacts from customer usage late payment fees and reconnection fees.
Operating expenses net of the cost of energy and track the expenses were up by approximately $55 million due to the increased depreciation expenses.
Turning to slide six we provide additional details about the financial impact of COVID-19.
As you can see we are seeing lower commercial and industrial sales.
And were partially offset by increased residential sales.
We're also seeing reduce late payment and reconnection fees as well as higher bad debt and other expenses.
The total growth impact of COVID-19, and 2020 was approximately <unk> 10 per share.
This impact was partially offset by non safety related cost management and regulatory solutions, bringing the net 2020 impact of COVID-19 to approximately <unk> <unk> per share.
Consistent with our base case, and currently expect and additional Covid impact in 2021 of approximately <unk> <unk> per share, which is factored into our 2021 non-GAAP EPS guidance range.
While we are monitoring the pandemic closely to date. It has not presented significant barriers to our safety and infrastructure modernization program or our long term growth and.
Joe mentioned, we are reaffirming both our 2021 earnings guidance and the guidance for long term Capex and EPS CAGR.
That we outlined at Investor day.
Now turning to slide seven I'd like to briefly touch on our debt and credit profile.
Our debt level as of December 31 was about $9 7 billion of which about $9 1 billion was long term debt.
Following the successful liability management transaction and the third quarter, the weighted average maturity and our long term debt was approximately 15 years and the weighted average interest rate was approximately three 7%.
At the end of the fourth quarter, we maintained net available liquidity of about $1 7 billion.
Consisting of cash and available capacity under our credit facility and other accounts receivable securitization program.
Our credit ratings from all three major rating agencies are investment grade and we remain committed to maintaining our current investment grade ratings taken together. This represents a solid financial foundation to support our long term safety and infrastructure investments.
Let's take a quick look at slide nine which highlights our current financing plan.
And I would just note that we continue to look at ways to optimize the financing of our growth strategy.
Currently evaluating scenarios utilize and hybrids and our convertibles and get 50% for more equity credit with the rating agencies and could minimize the need for block equity offering in 2022 for 2023.
We would anticipate of hybrid or convertible offering sometime in the first half of 2021.
I would also note. The next week, we plan to file a new aftermarket or ATM equity program to satisfy our ATM needs for next three years.
Just to remind everyone. Our guidance is inclusive of this financing plan now.
Now I'd like to turn the call back over to Joe who will provide some infrastructure investment and regulatory updates for our gas and electric businesses.
Thank you Donald now, let's take a look at the Nisource utilities highlights for the fourth quarter and early first quarter of 2021, starting with our gas operations on slide 10.
In Pennsylvania, our base rate case remains pending before the public utility Commission the.
The application of originally filed in April 2020 was modified in December and now peaked and annual revenue increase of $76 $8 million to invest in modernize and upgrade our existing natural gas distribution system as well as maintain the continued safety of the system.
And order is expected in the first quarter of 2021 with new rates expected to become effective retroactive to January 23 2021.
And Maryland, the public Service Commission approved the settlement and our base rate request and November 2020.
The approved settlement supports further upgrading and replacement of our pipelines and is expected to increase annual revenue by $3 3 million, including $1 $3 million of current track of the revenue.
New rates became effective in December 2020.
In Indiana, our latest tracker update was approved in December and our long term gas infrastructure modernization program.
The update covers $26 million and incremental capital invested under the program between January and June of 2020, and new rates became effective in January of 2021.
The Indiana utility regulatory Commission in 2020 approved a six year extension of the program, including nearly $950 million and planned capital investments through 2025 to be recovered through semiannual adjustments to the existing gas transmission distribution and storage improvement.
Charge or T disc tracker.
Now, let's look at our electric operations on slide 11.
In January of the Indiana utility regulatory Commission approved the latest tracker update request and our long term electric infrastructure modernization plan.
The approved electric tedious tracker update covers more than $122 million and incremental capital investments made between July 2019, and June 2020, and new rates became effective this month.
This well established program includes enhancements to our electric transmission and distribution system.
To further enhance safety and reliability the pru.
Graham originally approved by the <unk> and 2016 includes approximately $1 $2 billion and electric infrastructure investments expected to be made through 2022.
And now I'll ask Shawn Anderson to provide an update about our renewable generation projects.
Thank you Joe and Joe shared earlier, we completed our first two wind projects Rosewater and Jordan Creek on time, and December which is an exciting milestone and executing our generation transmission.
Rosewater is our joint venture with Edp Renewables, North America, and our tax equity partner Wells Fargo.
Jordan Creek represents a power purchase agreement for PPA with next Nextera energy resources.
These completed projects are now powering more than 125000 homes across Indiana with cleaner and more cost effective energy.
Our third wind project.
Indiana Crossroads remains under construction there.
This joint venture with Edp is expected to be in service at the end of this year.
These renewable projects are consistent with our 2018 integrated resource plan.
Within which the preferred pathway plans to retire nearly 80% of our remaining coal fired generation by 2023.
And retire all coal generation by 2028 to be replaced by lower cost reliable and cleaner options.
The plan is expected to drive a 90% reduction and our greenhouse gas emissions by 2030 and is expected to save for our electric customers and estimated $4 billion over 30 years.
As Joe noted earlier, we continue to expect to make one eight the $2 billion.
Of renewable generation investments through 2023.
Day, we have executed agreements representing approximately $125 billion.
Of the anticipated investment.
Commercial negotiations for additional solar and storage capacity continued to advance.
Half of the capacity and the replacement plan is targeted to be owned by joint ventures that will include NIPSCO and tax equity partners as the members.
The balance of new capacity is expected to be primarily in the form of Ppas.
In November 2020, we filed applications with the <unk> for the approval of the Dun's Bridge, one and two and cavalry solar energy centers.
These three Indiana projects or build transfer agreements with Nextera energy resources and represent a combined capital investment of approximately $850 million for NIPSCO.
These projects are expected to be placed into service across 2022 and 2023.
Nextera will construct the solar and storage facilities and we.
We plan to form joint ventures, with tax equity investors to own and operate and maintain these assets.
And the <unk> order is expected in the second quarter of 2021.
We continue to fill out the balance of our capacity and.
And January the <unk> approved our break guard and Greensborough solar and storage Ppas net.
Nextera energy resources will develop these projects, which are expected to be completed in mid 2023.
And in December 2020, NIPSCO announced the long term PPA with the clean energy infrastructure business of capital dynamics to develop Gibson solar for 280 megawatt solar project and Gibson County, Indiana.
NIPSCO filed an application with the <unk> for approval of this project and January 2021.
Construction is expected to begin in 2022 with commercial operations to begin in 2023.
Also in December of 2020 <unk>.
NIPSCO filed an application with the <unk> for approval of the Green River Solar PPA.
Advanced negotiations continue for additional build transfer agreements to fill out the remainder of our capacity needs.
We expect those negotiations to be completed and the first half of 2021 and the necessary regulatory filings coming shortly thereafter.
And.
And the fourth quarter of 2021, NIPSCO will be submitting and integrated resource plan for the <unk> that will continue to outline its long term generation plans, including the planned retirement of Michigan City generating station.
The preferred plan that emerges from the 2021 AARP.
Could create additional capital investment opportunities.
Before we move on from our electric story I would like to provide a quick update on units 14, and 15 at our shave for generating station.
As you know all for coal units that Shafer, our plan to retire by May 2023, as outlined in the 2018 IRB and.
As we continue to evaluate the economics of our generating fleet and the ongoing costs and investments required to keep the coal units operational we.
And we determined that the right path forward for US is to initiate the retirement of two of the for coal units that Schaefer.
And at 14, and 15 will retire by the end of 2021, which is the most economic decision for our customers.
And it goes the remaining fleet and.
The new renewable capacity and secured.
Capacity purchases will continue to reliably serve the energy needs to our customers.
To be clear our earnings guidance is not impacted by this decision.
We are excited about the significant progress and executing the plan, we identified and our 2018 and ERP and further detailed at our Investor day.
And we look forward and more projects and updates to come and future quarters.
Now I will turn the call back over to Joseph.
Thank you, Sean let's turn back to our foundational commitment safety.
As I noted earlier, our safety enhancement initiatives advanced and matured in 2020.
Our implementation of API safety management system, or SMS transitioned from and accelerated project launch two and established operating model within Nisource and we expanded the implementation to our electric business.
With the ongoing support and advice from the independent quality review Board, we are continuing to mature our SMS processes capabilities and talent and we're collaborating with our industry peers to enhance safety and reduce operational risk.
We had a number of safety milestones in 2020 that are worth calling out we launched the mobile gas leak detection pilot projects and implemented the service line mapping strategy to enhance records quality across our footprint.
We added special clearance processes and the other layers of protection to critical field operations activities.
Our gas meter shops, and our fabrication facility and <unk>.
<unk> 9001 certification of strong first step in the continuing quality effort.
And the final safety and recommendation around the emergency preparedness and response was closed by the National Transportation Safety Board as we continue to mature our emergency response processes.
As noted at the math, that's become our core operating model built on our culture of empowering everyone to report and identify risk, including the authority to stop work whenever necessary enhancing process safety with layers of protection and building accountability for effective asset management to reduce <unk>.
Risk.
You will see additional enhancements to our safety plan in 2021.
I'm also pleased to note from recognition that Nisource received and mid November and we were named to the Dow Jones Sustainability, North America index for the seventh consecutive year.
And I sources, one of seven U S utilities on the 2020 lift the.
The ranking is based on environmental social and governance criteria and reflects our progress on our sustainability strategy, which include the aggressive greenhouse gas reductions take the enhancement and executing against $40 billion of long term safety asset modernization and renewable energy.
<unk> opportunities for.
We're honored to once again be included on this international benchmark for sustainable business practices, which recognizes the comprehensive focus on ESG principles at the core of how we run our business.
Before turning to the Q&A portion of today's call I'll share and reiterate a few key takeaways.
Our 2020 financial and operational results reflect the resiliency of our business and our team as we executed on our safety and asset modernization programs, our electric generation transition strategy reliably serve the customers through the historic Covid pandemic and took steps to reposition the <unk>.
And to execute on significant long term growth opportunities.
We continue to expect to deliver non-GAAP net operating earnings per share and the range of $1 28 to $1 36 and 2021.
Our long term growth commitments remain in place. These include one nine to $2 2 billion and annual growth safety and modernization investments from 2021 through 2024.
One $8 billion to $2 billion and renewable generation investments across 2022 and 2023.
And compound annual earnings per share growth of 7% to 9% from 2021 through 2024 with near term growth of 5% to 7% from 2021% to 2023.
And our electric generation strategy continues to advance with our first two wind projects complete and numerous other renewable projects and development.
Thank you all for participating today and for your ongoing interest in and support of Nisource, We're now ready to take your questions.
Okay.
And ladies and gentlemen, as a reminder, if you would like to queue up for a question. Please press star followed by the number one on your telephone keypad and we will pause for a moment, while we compile the Q&A roster.
Our first question comes from the line of Andre Shepard from Credit Suisse. Go ahead. Please of your line is open.
Hi, guys its Mike Weinstein.
Hey, good morning.
So the you guys are going to be filing of new ERP. This year is that right.
That's correct, we will go through that process starting here in the next next quarter or so.
Great and.
What kind of pace should we expect in terms of the future rfps coming up and the additional.
The opportunities for more renewables I think you know you mentioned the Michigan City.
The retirement should provide additional opportunities.
What kind of schedule of releases can we expect over the next year or two.
Yes.
In essence, we will follow up process and the pattern that looks a lot like what we went through in 2018 will kick off the process with stakeholder engagement relatively soon and then and the middle of the summer. After we develop the scenarios is when you'd likely see to the extent it helps provide insight.
Any rfps that might be included I'd keep in mind that the the retirement schedule for.
For the Michigan City plant drive the capacity of need for the future because we've pretty much got the 2023 capacity replacement plan set and so rfps may may or may not be as valuable looking out that far from of 2021 vantage point. So we'll take all of that under consideration.
And one thing I'd say, though Mike and I think this is obvious to all of US with the current events that are going on across the industry right. Now just starkly demonstrates the reliability and capacity are essential and the integrated resource planning process itself is critically important so that's why our approach.
It really starts with reliability and balances all of the other attributes against that fundamental requirement. So this this experience that we're seeing now will be critical should provide critical learning for us as we go through the next round of the IOP and so I don't want to predict with the high degree of precision even the process at this point because there.
There's a lot to learn from what's happening and the markets.
And that makes sense.
Hey could you I know you don't want us.
I don't want to front run what might happen with and Pennsylvania, but.
Could you talk about what the future pace of rate filings is likely to the based on the the needs based on the investment that's going on and that state and.
What do you think will happen next after this rate case decision comes out.
Specifically asking about Pennsylvania, yeah.
Yeah, I'm not going to speculate about an hour.
We should see a commission decision soon enough and we'll.
We will certainly keep you and and all of our stakeholders updated as that plays out.
And I won't front run any future filings, but if you look at the pace of investment in Pennsylvania, and the the historic cycle. There we've had over about a decade eight rate cases settled with the stakeholders and Pennsylvania and well supported by the commission and I think of that track record and.
And the pattern is a good indicator because of our investment pace as much as the strong as ever and Pennsylvania is a good indicator of what the future will likely look like especially with the fully forecasted rate year convention and it almost sets up.
And the pattern that calls for an annual filing and that.
Only missed that may be one time and the last decade.
Maybe one year out of the last 10, where we didn't file and the annual case, so good indicators, but not not precisely front running any plans at this point and I think it will be important to see the outcome. In this case before we make any of those decisions.
Oh, Hey, one last question on convertibles, and hybrids and financing going forward, you mentioned that you'd be looking at debt opportunistically.
What point do you think.
And you'd be ready to make a decision regarding common equity versus convertibles and hybrids.
Hi, Michael.
And so.
As I said earlier, we planned actually issue of hybrid of convertible and the first half of this year.
And so ultimately as talked about looking at <unk>.
Structure and it provides at least 50% equity content.
From the rating agencies and.
And ultimately depending on the size and equity content of that.
Security It would then indicate how much.
Equity, we need block equity, we would need in 2022 of 2023, but we plan to execute that.
And the next few months and certainly the first half of the year.
And I'd say and then just and then you'd be ready to make a decision about the following year. So thats right, yes, and we'd be able to update gotcha.
Gotcha.
Okay. Thank you very much.
Thanks, Michael.
Our next question comes from the line of Harry <unk> with Bank of America Go ahead. Please your line is open.
Hey, good morning, its Julien actually surprises and good morning.
[laughter].
So.
And the Navy and this morning.
So I suppose just the cleanup on that last question on equity if I can and breathe.
And the total amounts are not shifting around this and just in the form.
And then and then more importantly can you talk discuss timing to the.
And for which you would actually pull for that block, but does that mean that you would delay the convert and anyway.
Clarify that a little bit under that scenario of what that looks like is that still a 'twenty one let's get everything done kind of issuance.
Yes.
The plan is this year, we would do the issuance of the the hybrid or the convertible.
And then.
Upon that so ultimately we're looking for if you assumed $2 billion of renewable investments.
The $2 billion of renewable investments, 60% equity content for.
And thats $1 $2 billion of equity content.
We will execute the the hybrid for convertible this year and then depending on the equity content coming out of that we balance that out with the block later.
And that's okay alright.
<unk> and 'twenty two 'twenty three and so we've got some timing and flexibility on that block.
Sorry to clarify the when you say depending on the equity content.
There isn't.
Not firm on what kind of equity treatment gas base.
On what you are looking at today.
And where do we know we can get at least 50% equity content and the structures. We're looking at.
We're also.
Trying to achieve more than that if.
If we can get more than that and then depending on.
The size of the quantity of that security that walks and lead them determine whats the balance of equity we'd need.
Yeah, understood, sorry, and then and not to nitpick too much.
What's the reasoning for the tweak in the 'twenty, one capex as well just the I also want to make sure I understand the financing of the here.
Now, it's not really a tweak and and our Capex and.
And at Investor Day, we gave a wide range to incorporate.
The four years of investment.
And so it is consistent with our plan to kind of tighten up for the prompt year and.
And then the Capex that we have guided for this year is aligned with our long term guidance.
So no changes.
Got it excellent sorry, one last one and that's not a clarification of that.
Ken.
There are a lot of legislative bills out there of this session and Theres, just a lot going on in Indiana and.
If anything that we should be paying attention to that could impact broadly speaking of the renewable efforts and other LDC I'm just trying to make sure we're not missing anything here across a lot of different developments and I'm sure you guys are tracking close of the winter.
Yes Julien.
As you would expect the engaged and closely following all of that and I would describe the full set of initiatives.
Essentially trying to create create or level, the playing field for renewable investment and to make sure that there is a clear playing field all of that to us is neutral to positive for our plan.
Don't see anything Thats of concern certainly, we'll keep an eye out for that and then I would note part of the puzzle that's playing out as <unk>.
For the natural gas side of the business too for the state to prohibit local ordinances that might restrict the use of natural gas and I think that's the key indicator of policy support for the whole business and Indiana.
Alright, great excellent I'll leave it there. Thank you guys very much of a good day, yes. Thanks, you too.
Our next question comes from the line of Richard Sunderland with Jpmorgan Securities Go ahead. Please your line is open.
Hi, good morning, Thanks for taking my questions today just.
And maybe at a high level thinking about the first heating season under current conditions curious how you've been managing.
And so you got particularly on the gas side and.
And the takeaways you can provide at this point on.
Realized impact of versus that day scenario of high Stakes into 'twenty one.
Yes, Thanks, Richard and I'll kick that off and.
I'll note that front and center for US has been and will always be the health safety and wellness of our employees and safety for our customers and and that's the key driver of of the whole outlook for Covid regarding the economic recovery and you can see from our results reason to be what I'd call cautiously.
The though there's other impacts.
Consider including ongoing expenses that could relate to adjustments to work protocols other revenue collections regulatory treatment and and the potential aftershocks of the economy and all of those are you know.
Hard to predict but certainly something we should all be attentive to.
All considered to the spirit of your question and recognizing that we're deep in the first quarter right now and clearly deepen the heating season with the weather we're experiencing across the country.
Our guidance reaffirmation today reflects our base case for 2021 all of us.
And also our long term growth rate for.
On the margin standpoint, the residential usage has remained strong it really came out of the came out of the blocks strong at the beginning of the Covid.
Pandemic and we've seen that trend continue into 2021 commercial usage has been consistently down and continues to be a profile that we're going to closely monitor and perhaps is the most of strong indicator of recovery across our territories industrial usage.
Admittedly not all perfectly correlated with Covid factors Theres, a number of things that can drive industrial usage. So it's hard to say deterministic Lee that it's all COVID-19, but that was the most impacted in 2020 both of the deep impacts were concentrated in the second quarter right at the beginning of the pandemic and we've seen steady recovery.
Ever since then and that continues today, but any change and that trend and that's the aftershock question could obviously be impactful to our results. So again all of that kind of adds up to the reason to be cautiously optimistic about recovery and the path ahead and.
And as we noted earlier on the call we would expect to have more clarity by the time of our first quarter call comes around we will certainly have the heating season behind us always of big quarter for us and that should put us and are positioned to tighten up our outlook on COVID-19.
Got it thanks for the.
Color there.
I'll leave it at that one thanks, alright, Thank you Richard and good day.
And ladies and gentlemen, again as a reminder, if you would like to ask a question. Please press star followed by the number one on your telephone keypad. Our next question comes from the line of sharp where either the Guggenheim Partners go ahead. Please your line is open.
Hey, its actually Coty Clark on for Richard Good morning, and good morning, Good morning.
So maybe start and you have.
The projects announced for $1 5 billion and Capex, but you continue to point to a range of remaining investment for solar of 200 million and I'm. Just wondering why you wouldn't narrow it why keep that range of your kind of zeroing in on the remaining projects and then just wondering when we might get and update on on some of.
Of those projects.
Hey, good morning. Thanks for the question appreciate that at this point, we continue to track towards that one $8 billion to $2 billion range.
Range has really borne out of the RFP process and as we start to commercialize where step closer to the the ending projects that we think will fill out the balance of need we will be able to tighten that but at this point, there's no indication that it's any different than one $8 billion to $2 billion, but we do expect to have additional announcements yet here and first quarter.
That relate to that one $8 billion to $2 billion.
Got it okay. Thank you and then if I could.
And just wondering if you've given any more thought to portfolio optimization and how you could use it to offset some of your equity needs related to renewables.
Do you think all of these seem to still have some room to where the rate on valuation and before you can get comfortable with looking at of cell.
Yes.
And we're certainly continue to watch.
And both our stock price as well as transactions that have been announced as well of our.
And the market now trying to understand how that might provide.
Value of above our plan and.
Again, the finance and we've outlined is.
Inclusive of for the the earnings we've outlined is inclusive of the financing that we've talked about.
But we'll continue to look and see if there are strategic options that makes sense.
And.
Long term and would enhance our growth over the.
'twenty and 'twenty 'twenty 'twenty, one to 2024 time period.
Awesome, Alright, Thats, all I had thanks for launch.
Our next question comes from the line of Charles Fishman with Morningstar Go ahead. Please your line is open.
Thank you and good morning.
I know the SaaS, but I'm still confused right when the fund.
'twenty one capex.
And the range is about 100 of $200 million lower.
And the analyst day, as well as three cute.
And.
What was the what is the reason for that but because of maybe talk about that again.
And we really just give it a wide range to incorporate all of the years all of the individual years and the plan.
And certainly a growth over time because of and.
Our capital and the monetization programs go grow but also the renewable investments.
And so this first year is really.
And kind of that first year of of growth that builds into the long range.
For the range that we provided over Investor day and.
And again, it's aligned with the guidance that we provided for this year and long term.
The other way to think about of last year, we spent about $1 $7 billion.
The midpoint of our guidance this year, it's $2 billion. So the significant increase.
And that's what we've been doing historically as kind of building each year building, our capabilities and making sure. We've got construction crews and internal capabilities to execute that program.
Okay, and then moving to slide 15, you pulled out the transmission project the separate line items that.
$50 million.
I guess it sounds like Thats associated.
And our wind projects.
And that for regulated.
No that would be Indiana rate base.
Investments and it's really to support the the shutdown of the shape of plants.
Okay got it and then one final question you talked about the gas customer gain so I didn't write that down and I think it was.
40000 last year.
Okay.
And any duress.
Any jurisdiction that you are seeing faster growth and the other ones or is it just spread out as it is.
Is it coming from propane converts.
On the.
And any color you can add yeah. Thanks Charles.
Its actually strong across the board we've seen.
And just below 1% at the low end and close to 2% at the high end and Virginia as the strong the leader in terms of the growth rate of customer additions and some of that is actual growth and the economy, there new housing starts and new construction.
That's always the differentiator for us but across the board you hit it you will see some propane and conversion.
From oil conversion, even at the edges now those numbers that we share net.
Net out the Massachusetts contribution. So you should think about that 30000 across the six states of Nisource now so pretty balanced strong 1% ish growth across the board and our outlook remains strong and that too we see continued demand.
And then when there's a new halt the belt.
Jurisdictions and gas is available or are you seeing them down.
And the the home versus the all effort.
Yeah, typically that's the strong preference and it's and this is what.
The builders in particular, it's typically in the established relationship that drives the drives that choice.
Okay. That's all I had thank you very much yeah. Thank you have a good day.
And there are no further questions in queue at this time I'd like to turn the call back over to Mr. Joe Hamrock for some closing remarks. Thanks, James appreciate it and thank you all for tuning in today and engaging and the call. We look forward to ongoing engagement and future updates as we continue to execute on our <unk>.
The plan and we certainly see lots of opportunity and the quarters ahead for additional updates on the matters that we touched on today. So thank you for joining us today and please stay safe stay safe and stay warm.
Ladies and gentlemen, and this does conclude today's conference call you may now disconnect.
Yes.
Okay.
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