Q1 2021 Evergy Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the first quarter 2021 average Inc earnings conference call.
At this time of all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
So ask the question during the session you will need to press star one and the telephone keypad.
If you require any further assistance please press star zero.
I would now like the hand, the conference over to your speaker today.
As Lori Wright, Vice President corporate planning.
The Investor Relations and Treasurer, ma'am the floor is yours.
Thank you Lorraine and good morning, everyone and welcome to average each first quarter call. Thank you for joining US. This morning. Today's discussion will include forward looking information slide too I think the school.
And our SEC filings containing a list of some of the factors that could cause future results to differ materially from our expectations and include additional information on non-GAAP financial measures.
February extreme weather event resulted and significantly higher natural gas and purchase power costs net of wholesale revenues.
Which totaled approximately $340 million.
We provide of breakdown of this total amount by the utility jurisdiction and our 10-Q.
Of note. This number of main subject to re settlement activity and for the review by SPP.
We expect to be able to recover substantially all of these costs through multiple potential regulatory mechanisms.
And selecting the path forward, we will work with regulators to implement solutions that smoothed the impact for our customers.
And Kansas, the Casey already issued and accounting authority order or a O.
Which allows for the creation of of regulatory asset to track these incremental costs associated with the weather event.
We expect to have resolution to the path and timeline for recovery later this year.
And Missouri, we of filed a notice that we intend to seek treatment for the net fuel and purchase power costs costs incurred the the extreme weather events and Missouri West.
We expect to make this a of filing by mid year.
Securitization legislation is under active review and Missouri and of past will provide and other potentially beneficial cost recovery approach.
That will enable both reducing and smoothing the impact of these costs for our customers and.
As in Kansas, We expect to have a clear sense for the recovery path. The Missouri later this year.
As I mentioned during last quarter's call, we have a small power marketing business.
The historically has earned between 15 and $30 million and gross margin annually.
I also described how this group achieved unusually high gross margins during February of extreme weather event, driven by purchases of firm transmission to record and a relatively small long position and our cough.
And total of the pretax contribution net of costs from power marketing activity. During the extreme weather event is approximately 41 per share this quarter.
Given the non-recurring nature of these results we have removed this amount net of tax from our adjusted EPS.
We expected final step and the Missouri procedural schedule as of workshop in early June.
In addition, we'll file of quarterly reports with the commission if there are any material changes to the STP.
The first such filing would be due on June one.
And Kansas the STP workshops scheduled for May 24th is the main remaining step and the schedule.
And advance of the workshop and we'll file our response to comments filed and the Kansas STP Dockets.
I'll now switch over to our legislative priorities, which have primarily focused on securitization.
As it represents a cost effective option the handle the retirement of assets that are not fully depreciated securitization as the potential tool that could provide value for customers and the company.
As we advance our generation fleet transition.
As we've noted the passage of securitization and Kansas, and Missouri is not necessary to enable the execution of our five year plan.
However, we have been very pleased with the constructive dialogue that has taken place regarding securitization and this year's legislative sessions and both states we.
And we greatly appreciate the collaboration from our key stakeholders.
On the Kansas side House, Bill 2072 was passed and became law and April 9th following Governor Kelly signature.
The Bill generally has three parts.
The first allows for extraordinary costs and for generation assets that are being retire any remaining underappreciated asset values to be considered for securitization.
The second part and allows the utility of the use of proceeds from the securitized bonds to reinvest into areas, such as generation transmission and distribution and our customer programs and enhance the customer experience.
Lastly, the Kansas Bill provides the pre determination process for taking generation assets out of service similar to the process that has been in place and Kansas for building new generating assets.
And Missouri consideration of the securitization Bill is ongoing.
Draft bills have passed with strong support and both the Missouri House and Senate.
And we are now and the final phases of the reconciliation process.
We are grateful for the engagement and support of legislators and key stakeholders in Missouri.
While there are many factors that impact the timing and ability to transition from coal generation not the least of which is grid reliability.
Obviously, one of the most important questions is affordability.
The ongoing costs of existing generation commodity price scenarios, the potential costs of environmental compliance and C. O two regulation and the cost of alternatives of resources and among other factors.
The <unk> review also took into consideration the evolving mission of our fossil generation plants.
Due to market conditions and ongoing growth from renewables plants at once provided base load capacity are increasingly required to act more of a backup for wind and solar resources.
Just a side of recent example.
Last week, the southwest power pool set of new record by providing 85% of the total energy needs across the entire 17 state region from renewable resources, primarily wind.
And this record won't last long as more than 78 gigawatts of new renewable energy are and the SPP generation Q.
Between now and our next IOP triangle filing and 2024.
Average you plan to retire of the last two units that are Lawrence Energy Center, nearly 500 megawatt coal facility and late 2023.
We also expect to add 700 megawatts of utility scale solar all of which is consistent with our STP.
As a result of this retirement and these additions ongoing depreciation of coal.
And reinvestment and our transmission and distribution system, we expect that call as of share of rate base will drop to the low twenties by 2024.
Looking further out we plan to add a total of 4200 megawatts of renewables by 2032.
Including 500 megawatts of wind, both and 2025 and 2026.
Those renewable investments are expected to enable the retirement of coal units of the Jeffrey Energy Center and are the scene plant as shown on slide seven.
And.
As market conditions evolve and the mission of fossil plants will continue to change the future years, our coal plants will run for fewer hours as their energy is increasingly displaced by lower cost renewable resources.
At the same time, the reliability challenges caused by the extreme weather of February of 2021.
Demonstrated the value of keeping dispatch will generation the fuel on the ground as part of our plan as opposed to retiring them on a rapid timeline.
The phase transition approach and the RFP provides average you with the ability to adjust planned additions and retirements based on evolving market technology and policy dynamics, particularly.
Particularly for the period following the initial three years of the ERP. There's no doubt the the plan will continue to change and evolve as we monitor the key and books that impact alternative resource plans.
And summary of the fleet transition outlined and the RP is a win win win from reliability affordability and sustainably perspective.
And given the phase retirements to maintain reliability, the favorable economics and sustainable options for our customers from the addition of renewables.
And the far reaching environmental benefits of swapping fossil fuels for Green resources.
Slide eight lays out the long term fleet transition plan and related emissions reduction reduction trajectory.
As a reminder, as of 2020, we reduce our carbon emissions by 51% from 2005 levels and one third of the power used by retail customers was generated from renewable resources.
Factory and our nuclear generation, our customers receive more than half of their energy from carbon free resources last year.
By 2030, we expect to reduce our carbon emissions by 70% relative to 2005 levels.
We're also pleased to announce our goal to achieve net zero carbon emissions by 2000 22045.
Which is dependent on enabling technology developments and support of energy policies and regulations.
These updated C O two emissions reduction targets align with the goal set forth and our STP.
And advance our focus on delivering of sustainable energy future for our customers, while maintaining of reliability and affordability.
As reflected on the left hand side of slide eight.
Our fleet profile will dramatically change over the next two decades <unk>.
Significantly reducing our reliance on coal generation, while increasing the share of emissions free resources and equal proportion.
Are favorable geographic location with ample wind and solar resources will allow us to do this cost effectively.
Further supported by the ongoing efficiency gains that are expected for the cost of building new renewal, new renewables and storage.
Before I turn it over to Kirk I'll wrap up on slide nine.
To summarize our investment thesis or balance strategic plan is focused on driving value and benefits for our customers shareholders and the environment.
We've had a strong starting 2021 and remained focused on executing our business plan across each of our utilities.
We expect it's continued execution will drive are targeted 6% to 8% compound annual EPS growth from 2019% of 2024.
Over the longer term, we anticipate the infrastructure investment requirements and transmission and distribution and.
In tandem with our generation fleet transition will enable ongoing growth.
And deliver deliver sustained benefits for our customers.
The dedicated and experienced team, we have and place.
Here with our diverse qualified board gives us high confidence and our ability to execute and deliver against our high performing targets.
We look forward to discussing our forward plan and strategy and greater depth during our Investor day and September.
I will now turn the call over to Kirk.
Thanks, David and good morning, everyone.
I'll start with the results for the quarter on slide 11.
We reported first quarter of 2021 adjusted earnings of 55 per share compared to 41 per share and the first quarter of 2020.
As David mentioned earlier, the unusually high margins achieved by our power marketing business. During the winter weather event and February contributed approximately 41 per share of pretax GAAP earnings and we have excluded the after tax impact of this item from our adjusted EPS for the first quarter.
Remaining adjusted items for the quarter were consistent with our expectations.
As shown and the chart from left to right. Adjusted EPS was driven higher by a number of items as compared to the first quarter of 2020, including favorable weather with and 11% increase and heating degree days versus 2020.
Weather normalized demand increase of 1.1% of approximately two per share.
Partially offset is expected by a slight increase and O&M driven by planned the outages.
Approximately 6 million primarily from higher equity UDC.
And we realized higher income tax benefits due to increased amortization of excess deferred income taxes or the.
And the timing of tax credit recognition to maintain our projected annual effective tax rate.
This latter item, which represents approximately four per share merely reflects a shift and enter a year timing.
With higher earnings and the first quarter, we recognize more of our expected annual benefit from tax credits and we will thereby recognized less of that benefit of the balance of the year.
As I mentioned heat and degree days were higher versus 2020.
However, despite the extremely cold February weather heating the re days for the full quarter were in line with historic levels due to a mild January and the March.
Resulting and little impact from weather compared to normal.
The weather impacts shown here was largely result of milder than normal weather and the first quarter of 2020.
Finally, as David mentioned are various utility subsidiaries incurred higher than normal fuel and purchase power costs during the quarter.
However, while <unk> encouraged the cash impact of these costs during the quarter substantially all of these costs were deferred.
Pursuant to both the AA order and Kansas, and our pending filing and misery will be working with our regulators and constructive solutions to smooth the periodic effect of these extreme weather related costs for our customers.
Turning to slide 12, which gives an update on recent sales and customer trends.
As I mentioned during the work for the quarter weather normalized retail sales increased 1.1% for the first quarter compared to last year signaling. The continued resiliency, we've seen and our service territory.
And as the prior year first quarter was meaningfully less impacted by COVID-19, we expect the relative increase and demand to be more meaningful as we progress through the second quarter and continue to expect approximately 2% weather normalized demand increased and 2021.
As shown on the bottom half of the slides the one one increase and overall weather normalized demand resulted from a mix of three.
Three 2% increase and residential sales, which continued to be driven by the COVID-19 stay at home effect and.
Industrial sales, which increased 2.9% or primarily driven by a few large customers and Kansas that returned to normal load conditions after experiencing planned maintenance outage or COVID-19 related reduced demand and the first quarter of 2020.
The favourable residential and industrial sales were partially offset by a year over year decline and commercial sales of 1.5% the.
This COVID-19 driven trend of lower commercial sales were likely linger through the first half of the year, but we continue to expect slow gradual improvement as the fully vaccinated. The percentage of the population continues to increase and restrictions continue to be lifted.
Of the right hand side of the slide you will see that we experienced our 40th consecutive quarter of customer growth is total customers increased by 1% compared to the first quarter of 2020.
National unemployment Rate's peak last April and we've seen a steady decline and those rates over the last 12 months.
While Kansas and Missouri exhibited exhibited a similar trajectory peak unemployment and Kansas City Metro area was less severe versus the nation as a whole and the unemployment claims dropped more sharply and so further and 2021.
And and get around four two per cent as of March.
This compares favorably and remains below the national average of six 2%.
Finally, turning to our of 2021 outlook on slide 13.
Based on the solid first quarter results combined with our outlook for the balance of the year. We are affirming are adjusted EPS guidance range for 2021, which represents a year over year EPS growth consistent with our long term target of 6% to 8% from 2019 to 2024.
Although we of excluded the impact of the power marketing margins realized during the winter weather event from adjusted ETS.
This item is reflected and our 2021, GAAP EPS guidance, which has been revised upward consistent with the full year impact.
While substantially all of the financial impact from this item is reflected and our first quarter results. We will recognize the small amount of associated expense and each successive quarter over the remainder of the year.
We have included and the appendix door of materials this quarter as part of the gap to non-GAAP 2021, EPS guidance reconciliation a walk from our previous GAAP guidance to current GAAP guidance and addition to the reconciliation two adjusted EPS.
Highlighting the components of the impact of the power marketing margins.
And thought I will turn it back to you day.
I will open up for questions.
At this time, if you would like to ask a question. Please pass on one and your telephone keypad.
And that of Star, one and the telephone Keith and.
And the first question comes from the line.
Julianne Damone your line is open.
Good morning, and various loved me on for Julia and I, just wanted to ask about your Ah, Missouri.
If you anticipate pushback from customer groups that and it's definitely been focused on the trajectory of right and.
And specifically two year plan of.
Keeping coal plants open for longer while adding renewable sequentially. Just curious how you you think about balancing those impact of obviously shifting to renewables and at the same time, maintaining our customer of bill trajectory.
Good morning, and thanks for the question, we do think that were the ERP the.
We developed and Missouri reflects a balanced approach.
And and focused on his you know of rates and also reliability as well as sustainability. So we've got a paste.
And phased approach, adding renewables the first.
Retirement, we're gonna do is number of Lawrence plan, and Kansas and our first solar edition will be.
It's plans of the Kansas side, as well and you'll see that we face and over time, we do expect.
That you will see the ongoing reductions of the amount of energy produced from our whole fleet.
And I will result result, and lower fuel and O&M courses.
Energy produced the renewables resources, obviously is effectively zero marginal cost and.
So we do think of strikes a good balance we have gone of tremendous base of resources to pull from so you'll note. The we're adding we and and to 25 and 26, we're planning to and.
There's no better place to add window more cost effective place to headwind and.
And our jurisdiction. So we think that we do strike that balance one thing that we saw and then our constituents so as well through the winter weather events of that we need to make sure that we balance reliability.
So we can further reduce the energy produced from coal reduce costs and that way, but helped to maintain reliability with the phase report approach to to retirement.
Great. Thank you and.
One more just just the.
Housekeeping question, if I could it looks like the 500 megawatts of wind that are in your proposal.
Are not in your Capex slide and the latest presentation, just curious and.
What point and IRB profit, you anticipate gaining enough confidence and in order to be able to add that capex and 25.
I'm sure that we'll talk about that is part of our analyst day and September but it's it's part of the dialogue that we had and so that we included of range for 25 and that range was reflective of our baseline transmission distribution of infrastructure, but when we put out that plan, we head and yet completed the <unk> exercise, it's obviously of dialogue and we have the most.
Certainty and any integrated resource plan is and that first three year of implementation period.
And we haven't had much discussion about the IOP that we filed three years ago for example, and.
Any of you all of that familiar with its details. So we know it's dynamic. Nevertheless, it is our expectation of that renewables investments will continue and we'll talk more about that and our analyst day, but obviously.
It's important to go through the process, we and yet filed the RFP, we still haven't filed the European Kansas.
So we want to make sure we respect the dialogue and the input that we received and.
Intervening information is as important as we saw with the in the winter weather of them. So we will say more about that and our analysts day, but the.
As the technical matter, we did not and include that in the range of we show for 25, and our and our year and call.
Excellent. Thank you very much.
Thank you.
Your next question comes from the line of Sharp Lorenzo and your line and open.
And you're good morning, guys.
Orange or.
So just a couple of quick ones.
Obviously, the February storm and kind of of the by the and the administration's calls seem to have a real high interest and transmission.
Just obviously given <unk> position on of seem and really the proximity of some great. When resources do you guys seeing additional opportunities for transmission spend and the near term where would you even consider partnering with others and I'm thinking similar projects like the Green Belt D. C line. So.
And where you sort of thinking about that.
I think the the transmission dialogue.
It's going to be important one.
We already have a partnership and place on the transmission side.
With the AP and.
The partnership and which we participated for.
Many years and will continue to I think that will be incremental opportunities for transmission and the SVP of the process that they go through so.
When it relates to rebuilding our lines.
And we obviously will drive that and if they are lines, where there's instead of.
Of a competitor opportunity and we need to participate in the process, which and our current that we would do and our.
Or through our partnership.
Green belt as of project.
As you know has been around for gosh, and I think it's at least a decade or longer.
And it's recently been taken on by and the energy, which is a very capable organization and there's got tremendous experience.
It's a merchant project so of different kind of investment you'd have to make sure that it.
Would work from of rates perspective, overall and would work from a from a regulator's perspective, so something that we would continue to evaluate but obviously any any project of that scale and scope and size the different as it requires a lot of review, but it's the entities very capable and it could well be part of the mix going forward and I think as we clarify the.
Federal policies and potential carbon regulation and that will help to inform what the path forward is going to be for transmission overall.
And so we look forward to continuing to evaluate opportunities and that space.
Got it in the early September.
Analysts day that the right podium to maybe provide additional visibility.
Potentially.
And we haven't set of specific time line up.
I don't think we're going to have of the analyst day of Labor day, but we haven't set the date of September [laughter] mid to late mid to late and the month, but we'll see.
And cut it and then give.
<unk> sort of color you can share on how blue Scapes involvement is driving any change and any line of sight to incremental and packs and you can maybe discuss from this relationship I E. Maybe from the generation side and and.
Gently managing the assets versus prior to the relationships. So what's the incremental things you're seeing from that relationship I guess.
So we.
Thank you sharp of the question I think we've got a very capable bored with the balance debt of experiences.
So we added Senator Mary Landrieu, and John Wilder as part of the chain.
Changes that were implemented and February and both of them bring I think of significant and additional and complementary capabilities Senator landrieu with the national network and experienced and Washington.
And John while they're obviously with his vast experience and the space and both Kirk Anders and I have personal experience with John and Pryor context, John is now chairing our finance Committee.
I would characterize the John is helping us to implement our sustainability transformation plan along with the other board members.
And taking of systematic approach to setting.
Hi performance targets and each of the areas of our business. So.
Side of generation, but I think the discipline net.
The John and the board are seeking for us to show us on driving performance and each part of our business to make sure that we drive benefits for customers for all of our key stakeholders and we're in achieving efficiency gains that we're achieving reliability improvements and.
And we're driving benefit from.
Investment so I think it's the systematic disciplined approach.
That the board is complimenting I think our team is bringing but I think the board is further complementing the effort and.
And.
We value Johns and put an experienced as we do all the board members and I think it's been a very.
Partnerships after grits are.
Got it and then just lastly from me.
Obviously, we're all watching the front row reforms really closely.
Maybe just if you could provide.
A R.
<unk> since it seems that if we do see those add ons get cut.
So you're talking about the 50 basis points that and then.
And the contemplation.
Yes, sure we estimate that the impact of that.
And the range of two to three.
Per share.
Got it and the 23 24 timeframe.
Great.
Terrific and congrats on the regulatory and legislative initiatives terrific. Thank you all right. Thank you Dr.
Thank you.
Again, and if you would like to ask the question. Please press the star wandering and telephone keypad.
Your next question comes from the line of Paul Patterson and your line is open.
Hey, good morning, guys.
One of your fall.
So just some quick questions the.
Just the with Missouri, and the securitization legislation is there any significant difference.
Between these two competing more on the the competing bills with these two different bills when the house one of the sense that the.
That is of any significant sort of.
From our perspective.
No.
They are pretty close I think it's just the typical process seem to go through to make sure all the words match.
But they're not a material differences.
So we're I think we're well positioned as we could be.
But in general the provisions are very similar and we expect that.
And we're optimistic obviously the other work through the process, but we are optimistic and.
Either way will know within the next week, but we think we're well positioned.
Okay, Great and then with respect to the.
You guys called out the and Kansas the.
The utilities discussion of the Investor Securitizations proceeds and I.
Sort of think of funds being fungible.
So.
Just sort of wondering.
How should we think about that means there are some prudency free determination or.
I guess why are you calling that out I guess.
I'm not completely clear as to what the what the concern was or just if you could elaborate a little bit more on on the benefit.
Pulling it that's a good question and good point and I think it's really more of to say that there aren't restrictions as opposed the saying that net.
Will dictate how the funds are used and.
No. It's not always the case securitization that there's discretionary funds, but to your point broadly.
All of the thing and that is.
There are no restrictions and we do plan.
Let's use those proceeds as you note and the general.
Yes, we do have the opportunity for free determination.
On on plants, and we're seeking to retire just as we do pretty determination for new investments. We liked that approach because that is that is a separate matter of allows us to get a read off.
Things before taking action, but tier note, there's not and there's nothing special about the the flexibility of and then it allows for it.
Okay, and then just just.
In terms of the size of the the.
And the potential sides of the securitization that we're thinking about I guess during the sort of maybe during the process of whatever you mean.
And the next few years or something how should we think about what the potential.
Guys have or.
Or maybe I don't know if maybe you guys are having to come up with one that you want to share, but do you have any idea that you could share with us about what is the the size of the securitization might be the the can come out of the.
Sure Civil and obviously, if we do a free determination filing of a very good sense for it and advanced but and.
The plan retirement of the Lawrence plant and late twenty-three is about 350 million that would go through the.
We anticipate would go through the application for the securitization as part of that process.
So to be roughly that amount as I noted and my remarks.
Through the retirement through the general transition of our rate base, given relative investment and T&D, we do expect that call of the share right basically get down and a lot of 20 by 2024, Okay. So just to those two and then 350 of sort of where we're thinking about the.
The laws play and other than the lawns plant, we're not thinking of of anything else or of being securitize.
At least at this point.
Non during the three year of location day, as we know that we see.
And the retirement that of later in the twenties, and obviously will continue to assess timing and the overall plan and market conditions evolve, but we.
And we would anticipate of securitization as of option and both Missouri and Kansas, There would be used for the future retirement and the RFP as well okay.
Thanks for that.
And then in terms of the.
In terms of the STP looks like you guys got some sort of favorable remarks from staff and what have you at least.
Talk to might be a little bit of refinement or whatever the suggestion, but the.
It's not clear to me I guess and the STV processes is the.
There and eventual sign off from the commission on the I mean, it's not a.
It's a little bit of the <unk>.
The standard I guess receiving of you'd fall for at least from my perspective. So.
Is when do you expect to have sort of this STP thing wrapped.
Wrapped up I guess and Kansas.
So as you noticed its and innovative process and we appreciate the opportunity. The the commission's have provided for us to go through the plan and get and receive feedback.
But the our informational there's not a formal sign up the result of from the proceedings.
In terms of the procedural calendar the next step for us and Kansas will be we're going to file a response of comments.
I think it's the next week.
And then we will have a session on may 24th will be and interactive workshop and dialogue.
And that is currently the next remaining step and the process but.
It could obviously it can be adjusted but at the informational. We appreciate the comments, we think of the comments overall reflect that we have a balanced plan and we've seen that reflect the generally and the comments, we we saw and both of them to the Orient, Kansas and Missouri, We expect of is sort.
The wrap up workshop and early June again, the because of the informational dockets. The the time I could evolve, but the current schedule has this wrapping and the late May early June timeframe.
Awesome. Thanks, so much guys.
Thank you.
And your next question comes from the line of Michael Sullivan and your line is open.
Hey, guys the morning.
Good morning, Mike.
Just a question on the I R. P curious.
To the extent you you guys I mean, you've got a pretty good example of of stress test situation back in February and with the conclusion there basically.
We could do without Lawrence, but we pretty much needed everything else in terms of dispatch of all resources and that kind.
Kind of factored into the decision to keep the rest of the plants around a little longer.
I think it is fair to say that the review across SPP is still and ongoing process right. The.
We and the entire system have a have a lot to learn and the analysis is not yet done.
As of technical matter, we have Ah.
And Ah credited capacity requirement that we need to meet.
And we can with the retirement of Lawrence we are within our buffer. So you are right and looking at that way and the more we.
Retire of the more we're going to have to look at replacement capacity.
But I think it's also fair to say that the event.
Reinforce that a lot of the rules and approaches are geared towards summer peaks and not necessarily towards the winter peaks. So the RPX us as much of a balance of one of thinking about okay. If we.
Are factoring and the liability along with the affordability and sustainability.
A measured approach the retirement is that makes the most sense.
Because your additions of renewables.
Particularly when but also of solar which is has and is less effective and dealing with winter peaks.
You need the factor that and as you considering how are you going to be sure and the reliability part of the equation. So it did.
The winter weather event at least factored into the dialogue overall and I think it's fair to say that it's going to be and an ongoing evaluation.
And not just and <unk>, we'll be able to learn across our system and other systems as well, but I think it is certainly fair to say that as we consider the event we.
We do believe the energy production from coal will continue to decline and then.
That way, you'll see ongoing benefits of our customers lower O&M and fuel costs and.
But they will be of reliability benefit of keeping them and the system until you are certain that you've got sufficient replacing the to ensure reliability.
So some of that thing is reflected and the plan, but of course will the IRL.
The most certain for the three of implementation period.
And as market conditions and technology evolves. There is no doubt and will continue to look at it.
But we think this plan reflects the right balance for now.
Okay. Yeah, I was kind of <unk>, you kind of answered and from my other questions just kind of be.
And how how soon could this be where I could can anything changes as soon as the analyst day potentially.
Or I would think that definitely before the next triennial IRT or just how do you think about the cadence of uhm, providing further updates on the on.
And the IOP calendar, there's a simple file Kansas.
Respectively, soon and and July of on deadline with the still of Kansas filing of course, and then you're given annual update before the triangle.
Filing so the next irve's get it up they will be in a year's time.
And there'll be a formal training of update and three years, but.
Gosh I think for everybody. If you look back last year of two years ago or three years ago, there's been a lot of changes to the the rfps because of pretty dynamic environment. So part of the act of future and that you are right about the analyst day was the I don't expect fundamental changes to the RFP per se.
And the next year two years three years I'd be surprised frankly, the or changes for everyone because of the landscape continue to change as well.
Got it thanks, so much I appreciate it.
Thankfully.
Excuse me and for centuries, and there are no more of a phone questions.
Mister David Campbell.
The <unk>.
Great well, thanks, everyone for your interests and <unk>.
Stay safe and have a great day. Thank you.
This concludes today's conference call you May now just kind of.
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