Q3 2021 Spire Inc Earnings Call
Good day and welcome to the spire, Inc. Third quarter earnings Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May press star.
And then 1 on your Touchtone phone to withdraw your question. Please press Star then 2 please note. This event is being recorded I would now like to turn the conference over to Scott Dudley Managing director of Investor Relations. Please go ahead.
Good morning, and welcome to the spire is fiscal 2021 third quarter earnings call.
We issued an earnings news release this morning, and you may access it on our website aspire energy dot com under newsroom.
There's a slide presentation that accompanies our webcast and you may download it from either the webcast site or from our website under investors and then events and presentations.
Before we begin let me cover our safe Harbor statement and use of non-GAAP earnings measures.
Today's call, including responses to your questions may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Although our forward looking statements are based on reasonable assumptions there are various uncertainties and risk factors that may cause future performance or results to be different than those anticipated. These.
These risks and uncertainties are outlined in our quarterly and annual filings with the SEC.
In our comments, we will be discussing net economic earnings and contribution margin, which are both non-GAAP measures used by management when evaluating our performance and results of operations.
Explanations and reconciliations of these measures to their GAAP counterparts are contained in both our news release and slide presentation.
With that I'll turn the call over to spire, as president and CEO, Suzanne said or what Suzanne.
You Scott and good morning, everyone. We appreciate you joining us for our third quarter earnings call today, Steve Lindsey fever assay and I are joined for the first time by Adam butter, Adam as far as treasurer, and CFO of our gas utilities will come on.
As the year progresses, we continue stepping for to deliver on our mission you answer every challenge advance every community and enrich every line in the strength of our energy and no matter how complicated the challenge our 36 on employees continue to deliver for our shareholders while building on our performance record.
Delivering safe reliable and affordable natural gas for our customers and communities.
The ability to successfully execute reflect spire culture, and the hard work and dedication of our team.
And while I'm proud of what the team consistent like that day in and day out I'm always heartened when I see how our employees lean into challenges like the Corona virus and less from Europe.
Doing everything possible to ensure the continued operation of the STL pipeline is no exception more on that on a moment.
Stepping forward always mean, we're helping lead the conversation about natural gas.
As we look ahead, we know that natural gas is key to America's reliable affordable and sustainable energy future.
In that spirit, we continued to advance our commitment to be a carbon neutral company by mid century, including consistently reducing methane emissions and exploit our sustainable operations like R&D.
Turning to our third quarter results. This morning, we reported solid quarterly net economic earnings of 6 cents per share and delivered continued strong operating performance.
Before turning to our operations report I'd like to share a thought on the situations surrounding the STL pipeline.
Make no mistake. The STL pipeline is critical to hundreds of thousands of homes and businesses and several million people in eastern Missouri. That's why are we built it.
The past year as extreme winter weather proved the importance of this critical infrastructure as the STL pipeline delivered reliable and affordable energy when other parts of the net continent regret with supply disruptions and skyrocketing cost.
So the question is why is the STL pipeline in jeopardy today.
As you know by now the Environmental Defense Fund Challenge for Federal Energy Regulatory Commission 2018 authorization for the construction and operations of the spire STL pipeline and the court of appeal for the D. C Circuit Court.
<unk> pipeline has been fully operational since 2019.
On June 22nd the D. C Circuit court issued its judgment against FERC Reman and the matter back to the agency for further consideration.
And at a highly unusual action negatively impact on Missouri customers on our industry vacating the FERC 2018 authorization on the STL pipeline.
I've been in the natural gas business for more than 40 years and I've never seen in other situations in which a fully operational safe and environmentally sound pipeline had its first certificate result.
It's important to remember that we constructed the pipeline based on approval of pain on the first after a thorough and rigorous 2 year regulatory review process.
A process that has been in place for decades.
The number 1 job that any utility or pipeline is to deliver safe and reliable energy to customers.
24 by 7.365 days a year, we've done that here at spire for more than 160 years, and we take that job very seriously.
That is why we emphatically, we're pursuing all legal and regulatory avenues to secure the uninterrupted operations of the pipeline for.
Particularly on the EBIT the sweater, but also for the long term.
So far we've taken 2 big steps to protect the health and safety property and economic prosperity of the St. Louis region.
First last week, we asked the FERC to take an emergency action to grant a temporary certificate for STL pipeline.
That gives the FERC and opportunity to allow the pipeline to continue operating this winter, but natural gas customers on the St. Louis region would not be left without reliable gas service when they need it the most.
It also gives the FERC on opportunity to more thoroughly evaluate the issues on reman.
All being rushed by the immediate needs for the winter heating season.
Second today, we will be asking the D. C circuit court to reconsider its decision to vacate the FERC order authorizing the pipeline.
To be clear if neither the D C Corps and other FERC Act on a request the result would be on unprecedented for shut down other operating natural gas pipeline for.
Particularly 1 that is operating safely and consistent with all environmental considerations.
The STL pipeline is a project that 1 has previous purpose of supply on operational diversity to the St. Louis region during extreme weather events, such as winter storm Yuri.
2 demonstrated its worth by saving St. Louis Thompson businesses hundreds of millions in gas cost or injury.
And 3 with Bill expires environmental commitment on mine.
It's important to understand how the St. Louis region with fair the devastation that occurred during Uri.
When gas supply from Texas, and Oklahoma, which disrupted the competition for the remaining gas supply with them.
Ladies and communities throughout the mid continent suffered from country, a month and the devastation was well documented but.
On the St. Louis region did not suffer from those problems and so on the STL pipeline did exactly what it was designed to do.
Provide alternative reliable supply gas producing areas not impacted by regional extreme weather events.
As you can tell from our words and actions we are laser focused on ensuring the pipeline remains in service for the communities in eastern Missouri.
For the last several weeks I am pleased to note that many are raising their voices and supported the pipeline.
Leading the Missouri Governor bipartisan elected officials, the Missouri Department of economic development commercial and industrial customers community leaders and even a key interconnecting Interstate pipeline on.
Oh boy for him and concerns over the potential losses. This critical infrastructure to meet the energy needs of the homes and businesses we serve.
Now I'll turn the call over to Steve Lindsey to share details about fires overall STL pipeline operations and what we're doing to protect several million people on Missouri for losing the energy that they count on.
Thank you Suzanne.
Echo your acknowledgment that the effort for employees, who continue their focus on maintaining safe and reliable gas delivery operations and outstanding service to our customers. Despite the challenges we face.
As Suzanne noted and as we are aggressively communicating spire STL pipeline is critical energy infrastructure. It is absolutely essential our ability to fully serve more than 650000 homes and businesses in the St. Louis region. The count on this reliable and affordable force natural gas.
As we've discussed the pipeline was essential during winter storm here in February on Texas, mid continent, and count on energy supply disruptions skyrocketing prices.
STL pipeline provides far Missouri access to Marcellus and Utica basins, which were largely unaffected by the cold weather.
To illustrate how important our pipeline was Yuri we estimate that up to a 133000 premises in eastern Missouri would have been without service has the pipeline not been in place.
As 20% of the homes and businesses, we serve in the St. Louis region.
On top of that we estimate that Missouri. These customers would have experienced hundreds of millions of dollars and higher natural gas calls a debt level STL pipeline more than paid for so just hearing the single extreme weather.
Going forward, our ability to continue to provide reliable and affordable energy to our customers. This winter I would ask for your pipeline is in jeopardy.
Our ability to secure new pipeline capacity on other systems is extremely constrained.
Given our regional gas flows in interconnections are changed.
Pipeline went into service, we're simply not able to replace that supply based on current market and operating conditions.
As a result, there will be potential service disruptions up to 400000 homes and businesses could be without service in an extreme cold weather scenario as more than 60% from our customer base on the St. Louis region.
We've taken important steps to ensure the STL pipeline continues to operate and serve our customers. There are 2 paths we are pursuing.
On the regulatory front STL pipeline filed on July 26, and application with FERC for temporary emergency certificate.
It will allow the pipelines remain service ballpark reviews, the matter on re man from the DC circuit.
You've asked for expedited treatment of our application.
We're also pursuing relief and of course today, we are filing a petition for rehearing with the DC Circuit Court issued a ruling.
Important to note that in making his ruling the court look only at the original record arc used to make a determination issued a certificate for STL pipeline.
And that record reflected projections and estimates for operations pipeline years before the project began.
And our request for rehearing, we've updated the record to include the pipeline is strong operating performance over the last 18 months, including during winter storm Uri and have outlined the dire consequences for customers in St. Louis region. If we lose this critical energy infrastructure.
Specifically ask the court to reconsider its order vacating FERC authorization for the pipeline.
In summary, we remain confident the STL pipeline is critical infrastructure that enables spire, Missouri to continue providing reliable and affordable energy for homes and businesses on the St. Louis region.
While we were working to preserve critical energy infrastructure, we continue to make significant investments in our utility infrastructure to enhance our operating performance and service to customers we.
We are achieving further gains in safety system integrity and environmental sustainability.
And we are on track with our methane emissions reduction goals in support of our commitment to be a carbon neutral company by mid century.
We continued on pace with our Capex plans for the first 9 months for fiscal 2021.
Almost spend was $463 million, including just over $430 million for our gas utility focused on infrastructure upgrades and organic growth.
Pipeline replacement remains the largest component accounting for more than half for utility spend year to date and coming in at a level slightly ahead of last year.
We've also been ramping up our investment in innovation, including installation of ultrasonic meters.
New business total more than $100 million up $30 million compared to a year ago.
Meanwhile, we are progressing with our Missouri rate review, which is focused on recovering the investments we've made since 2018.
Now I'll turn the call over to Adam for an update on the right for you Adam.
Thank you, Steve and yes, we've been hard at work, making it our distribution system safer, while continuing to minimize our environmental footprint.
Our Missouri is deployed nearly $1 billion of capital since the last rate case. It is now requested recovery for this investment.
We filed a rate review last December and have been constructively engaged with interested parties of the month since the.
Last Friday the parties for the review filed a partial stipulation with the Missouri Public Service Commission that subtle many of the items that issue in the case.
Notably the agreement was reached on recovery of COVID-19 costs deferred under our accounting authorization order for a O.
<unk> of our combined cap for our infrastructure system replacement surcharge rider.
And we have made strides toward unifying the tariff and purchased gas recovery mechanisms.
We remain focused on working through the remaining issues on the coming weeks. The true up period ended may 31 for the parties are exchanged for bottled testimony.
Evidentiary hearings conclude tomorrow.
Next steps include drip testimony hearings.
Financial update later in August.
The process remains on a positive trajectory and we look forward to a constructive conclusion to the to the review for spire and its customers.
It takes it sustainability commitments seriously.
We are fortunate to enjoy terrific support on our communities for these endeavors last quarter. The general, Missouri General Assembly passed new R&D, enabling legislation, but overwhelming but margin and the governor recently signed into law.
This new law, which contemplates hydrogen as well as Archie allows for the investment in renewable gas infrastructure within rate base for procurement of Biofuels for our gas supply portfolio.
The limitation of RMG based customer programs.
The next step is rulemaking it other Missouri Commission, we will certainly keep you informed of developments on how we will use this opportunity to.
To enhance the sustainability of our distribution system.
Following a similar theme we joined the 1 future coalition earlier this year and this quarter spire is pleased to announce that.
As a founding limited partner and energy capital ventures.
We are initially joined by several peers for the investment in this first of its kind of fun with a focus on sustainability reliability and resilience for the natural gas utility sector.
We are excited about this opportunity the opportunity to accelerate innovation and transformation and push the boundaries of what's possible and delivering the affordable reliable and clean natural gas customers depend on and I will now pass things over to Steve for a financial update.
Thanks, Adam and welcome everyone. Let me touch on a few highlights for the third quarter.
We delivered consolidated net economic earnings of $6.9 million or success per share.
Now on $400000 on Whatsapp per share from last year.
Our gas utilities aren't just over $12 million almost $4 million from the prior year.
Drivers include higher contribution margin due to higher rates on both Missouri and Alabama.
Customer growth and higher depreciation costs tied to our infrastructure investments.
Gas marketing posted a loss of just over $5 million, reflecting less favorable market conditions and slightly lower wholesale demand.
Especially power generation demand due to the cooler than normal weather this spring and the mid continent and southeast.
Combined with higher demand charges and marginally higher costs as we position for the upcoming winter.
I would also note that we continue to make progress on a handful of commercial disputes from winter storm area.
Lastly, all other businesses and corporate costs improved by $1 million, reflecting better performance by spire storage.
Looking at a few key other variances on slide 12.
Cash cost increased due to a higher commodity prices.
And I'm expenses on a run rate basis were up 1% for $1.3 million, reflecting marginally higher operating and employee costs at the gas utilities and slightly higher cost of gas marketing.
Other income net of the reclassification was essentially equal to last year.
Finally, turning to our guidance, we reaffirm our long term economics earnings per share growth target range of 5% to 7%.
Our fiscal 'twenty, 1 earnings target of $4.30 to $4.50 per share.
And our 5 year capital expenditure target of $3 billion.
Our financing plan now includes the spire, Missouri successfully issued first mortgage bonds totaling $305 million as well as retired $55 million from higher coupon debt.
In support of our ongoing rate proceedings.
So in closing.
We continue to execute on our plan delivering for our customers our communities and our investors.
We're well positioned in our Missouri rate proceeding and we will continue to emphatically supporting the spire STL pipeline.
We look forward to updating you on those and other initiatives later this year.
And as always we appreciate the time you spent with US today and your continued interest in spire.
Now we're ready to take your questions.
Yeah.
We will now begin the question and answer session to ask a question you May Press Star then 1 on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then 2 at this time, we will pause momentarily to assemble our roster.
Sure.
The first question will be from Richard Sunderland of J P. Morgan.
Hi, good morning, Thanks for taking my questions today.
Average metric.
Maybe just starting on the STL pipeline could you outline what to watch for procedurally and timing wise with regards to the 2 filings for 1 from last week in todays filing as well.
Yeah, I'll start and then others, obviously can chime in.
Terms of the certificate the emergency and certificates.
There's no specific timeline in terms of the commission, making that determination. They obviously are very familiar with the situation and I mentioned in my opening remarks here just in a lot of voices that have weighed in to the significance of the pipeline.
And of course here, we are on August very hot weather, but you know the fall is not that far away and so we're hopeful that the commission will be deliberative and atmos on page to provide that temporary certificate.
Is that you know the primary focus and obviously again, we went through a very rigorous process regulatory process for that approval on that all the requirements and so they have that record and so again, we're hopeful that it'll be an expedited.
Process.
If that's temporary certificates.
Rich. Thanks for the question. This is Steve Lindsey I would also say on the rehearing filing that is going on today. The same kind of thing there is no definitive timeline, we've asked for expedited processing on these as we need to move obviously with the winter coming so I think both those the answer is somewhat the same in that there is no definitive timeline.
Got it understood.
And maybe a related question here in terms of the filings in debt.
Fact record laid out, particularly on the FERC application curious if you could speak more to the system changes and maybe broadly in the state.
That have occurred on the back of the STL pipeline being put in service and the ramifications this upcoming winter without the pipeline. It sounds like there would be issues with pressure in certain parts and just trying to get a feeling for existing.
Existing customers lose service immediately or is this about the risk.
Very cold conditions.
Yes, that's a great question and there are quite a few configuration changes that have occurred since the pipeline has been in place now for 2 winters. So if you think about interconnections and those can be on our system or even with other pipelines and for example, with the moguls interconnection that gives us the ability to move gas to the western side of our system where over the years we've.
There's a lot of growth and that was needed. There are some other system configurations within our distribution system that because of this pipeline. We've not had to do that if this pipeline where they are we would have to do in order to continue to keep pressure up across the entire system.
Other thing that I don't think a lot of people really understand is where the pipeline comes in which is on the northern side of our service territory is where our underground storage facility. This year.
Gives us the ability because of the elevated pressure that STL pipeline brings in it's really accommodate that storage facility and to be able to replenish it in a way that we weren't able to do before and so there is a lot of interest interweaving for all these things that are going on but really if you go back for the 2 main reasons. This pipeline is in place is for supply and operational diversity operational.
Obviously is on being able to keep customers on during the most critical time and Thats why we talked about the supply piece as what we experienced during the 90 day period in February.
Hundreds of millions of dollars were saved on gas cost for our customers on the east side of the state because of that supply diversification. So I think this is almost a 1 plus 1 equals 3 if you really add up the benefits from the supply as well as the operational stability and so if that pipeline weren't in place obviously, they're a critical temperature.
Parts of our modeling system to say when we would start to lose customers. If you combine that with 1 storage is depleted then it really compounds and so I think theres a whole lot of variables, but the bottom line is this pipeline has exceeded expectations and is very critical to the customers on those or east to west.
I only want to add 1 point I think Steve summarized all of it really but I do want to add 1 other point day the capital that we've deployed for the last handful of years.
We rebuilt the backbone system is the utility and the diameter on the pressures on the flows of our backs on system contemplate exact.
Exactly what Steve just described so it's not just stopping at the point, where we received but when we design our engineering nearing team designing our backbone systems on the arteries off their systems to meet the demand where the growth is located versus communities, where there is no growth or maybe even moving out of areas to other areas. It's important how all this works.
The other because it is a physical system and it does vary of temperatures.
And demand so I'm just trying to connect those 2 points as well.
No. That's very helpful color. Thank you for letting that out.
Maybe I'll just turn real quick to the rate case, the remaining items outside of the stipulation do you have any sense on the ability to settle all of those items are there any issues in particular that would be kind of best foot put in front of the commission for a ruling.
Hi, Rich, it's Adam I don't know I don't think we want to predict outcomes at this point, but again I think we're we feel.
I feel like it's.
It's been a good constructive process and we feel optimistic where you can get to a positive conclusion.
Yeah.
No fair enough I'll leave it at that thank you.
Thanks Rich.
The next question comes from Julien Dumoulin Smith of Bank of America.
Hey, good morning team, thanks for the opportunity to connect I appreciate it.
Perhaps if I if I could just go back to the S. T. L. Angle here have you received any feedback at all with respect to the.
From FERC.
More so in in sort of digesting the initial distant from click here I'm just wanted to break that down and perhaps just understand today. If you've received any of the feedback there and then and how you might seek to mitigate some of those concerns at least raised by click I understand.
Certainly the comments you've provided thus far on the criticality of the critical role the pipe played thus far but I'm curious if we can kind of frame it slightly differently and indirectly tackling and this waging the concerns that came up earlier and in <unk> for any of the other feedback that you've received thus far as we as we think about next steps here.
So I'll start and I'm on my colleagues may want to add some more color, but I'll start recording regarding chairman Glick I mean, its been from years of course since the pipeline with approval and since that time, we have actual data information how the pipeline well operate so.
Theres been enough times and he's got more information any serving as chair. So I certainly would not want to getting from German glick and speak about what he may or may not be thinking.
I do know that he's got no new information in front of him and that information is on it.
The true operations of the pie from what its performance has been and so forth and so on.
Okay, Alright fair enough.
And then maybe you can speak a little bit to the R&D strategy here.
Yeah, I think in your prepared remarks, you spoke to the Missouri process sort of kicking off now that you've got the legislation in hand, but maybe you can speak to your thought process in how you might want to participate and scale up.
They're in and what opportunities could be a 42 from the legislation as best you understand you know early in the implementation phase.
Hi, Hi, Julia it's Adam Thanks, Thanks for the question.
Yes, it's probably on the on the regulatory front, we're excited about the opportunity.
With that comes with the legislation I think it's.
And we were definitely strategizing around it but probably a little premature at this point prior to prior to going through rulemaking we've.
As you might expect I've had some preliminary discussions with with staff, but again I would just stress very preliminary at this point from.
From a regulated approach and we as we've mentioned before we are certainly exploring some nonregulated approaches as well.
2.2 RG.
Nothing to announce at this point.
Alright.
So as you think about the parcel step in the case and certainly surprised can you speak to them for.
Perspective.
Other than taking place.
Further on.
Observations perhaps.
For that you know sort of the timeline on ultimately resolving the case itself given given that step.
Yeah again, it's a weighted we don't want to speculate on it on a on a specific timeline, but I think the hearings have been.
And constructive as well I don't think our tone or our view of the per.
The rate review has really changed.
And we continue to I think engage with parties as demonstrated by the stipulation which took.
Gosh I think.
75 per cent of the items that we had identified off the table. So it's a lot of them are minor items, but but again, it's just taking those issues off the table, we feel that as a positive step.
For the right conclusion.
Julien This is Steve I think if you watch the hearings will conclude the formal hearings with the commission will conclude tomorrow and then after that that's when the various parties will put together for some reason, including their financial analysis and I think that's that's a good time to look at.
Will there be other partial stipulations are well a whole wholesome settlement come forward, but we need to get through the rest of the hearings. This week. So that would that would point to later in the month of August is when those substantial discussions would really be able to happen, but again, if you kind of step back and look at it overall this is playing out kind of as we all are.
I would hope that we have now taken on a number of smaller issues off the table you may see other partial stipulations coming forward as you really honed in on just a few things that will ultimately be part of the final settlement.
Got it sounds like some good progress well I wish you the best of luck in Tomorrow and in subsequent weeks here and I'm sure we'll be connecting here soon thank you.
Thank you.
The next question is from Gabe Moreen of Mizuho.
Hey, good morning, everyone.
Just had a question I guess as a follow up to sort of they are G investments I'm just wanted to clarify on the investment in energy capital ventures, whether that was really orange you directed or is it broader I was wonder if you can quantify that initial investment.
Well, just just more color on that that'd be on mine.
Yes, David on the we'll certainly have more information on that.
The near term, but not it's not strictly an R&D investment it's really looking at.
It is.
But it's an innovation across the spectrum that would affect us as a natural gas utility.
Got it got it and I don't know Adam if you can talk about the discussions with the PSC. Thus far in terms of that rider that you're seeking in terms of how youre looking at this investment within the framework of your overall utility spend do you think this will be additive to that do you think this maybe replacing some of your pipeline standard or is it just too early to know.
At this point.
Too early to know it did I think you I think.
I had noted too that we lead.
The <unk> portions.
The of our case our review we're in.
We're in the stipulation we.
<unk>.
Agreed to move those into the future docket that would address the legislation so.
Again more to come on that but.
I'd expect it most likely to be additive, but I don't think we would take anything away from our capital our capital spend on pipeline replacement.
Got it and maybe if I can ask just 2 minor follow ups..1 is just kind of progress on.
Winter storm working capital recovery, how that's been going and then.
Last year, you had the benefit I think is a pretty steep winter summer spread on gas storage and acted accordingly to benefit. This past year can you maybe just talk about how marketing positioning itself given that theres been a bit of but narrowing in on spread.
Yes, Dave This is David let me take a shot on the first point.
No real substantial progress if you're speaking to them.
On the legal action with the free marketers for spire, Missouri.
With regard from there.
Inability or a lack of willingness to pay for the cover charges and the damages as a result on our supply gas will have to watch that.
Going forward they have petitioned the Missouri Public service Commission to consider waiving a portion or all of the current regulations that would.
Direct them to pay those volumes I don't believe that that is going to be considered by the public Service Commission net Joe early on.
Calendar 2022, so that may stick around for a while but as we know more we'll update you there and on.
On marketing business Youre right, a year ago, a year ago I think gas was at 50 per cent of the cost debt is trading at today on Henry hub.
And what a difference a year makes where we're above $4 at Henry hub and and yes.
There is a lot of latent nervousness in the market, we arent seeing quite be seasonal spreads between the cost to inject in the cost to deliver to customers on me.
The winter heating season, but what we are seeing is not only higher prices, we're seeing higher volatility actually in the last couple of weeks or few weeks, we're seeing some increased demand not only for gas fired generation a lot of that due to the heat that we're now on seeing if you look at that that the newspapers, but too.
The customers as they're now really in the planning for the winter heating season are really making sure that they have a extremely resilient supply flow and storage in order to meet the worst case scenario for they're serving their customers. So we think that there is clearly going to be some more moves.
And the market as we go through the year and we're positioning ourselves as best we can given those market dynamics to make sure that we cannot take advantage of market opportunities, but also serve the customers that we have in our will gain between now and the next winter heating season.
Great. Thanks, Steve.
Alright.
The next question will be from Brian Russo of Sidoti.
Yeah, Hi, thanks for taking my questions.
Just a quick clarification on the S. T a pipeline in the event's hypothetically speaking the D C Court.
Youre hearing requests does that part.
Part a timeline.
In which the FERC would need to issue the emergence.
For Q2.2.
Technically avoid having to vacate.
So pipeline.
Is there some sort of a 7 day period.
After to.
D C Corp.
10 day, we didn't close it it does that would set a 7 day period before that debt ordered.
Would be effective and we would.
So youre correct.
Oh, Okay got it.
And then also just to clarify.
Turning to D. C for actually reviewed new information for only information and data that was on record.
The time of the EDF.
Appeal at the FERC.
<unk> certificate.
Today, we will have there.
Will be provided with new information.
They could certainly choose to review it.
At that point.
Okay. So legally they can review the new infraction correct. Okay, and then the same with the first with the FERC if hypothetically.
We.
Look to recertify and they could take the new information I E.
We understand your performance where do they have to fall back on what was on record.
At the time that the certificate was issued.
Hope that we would hope that they would review the updated information.
Okay, and then in terms of support from the Governor.
I would imagine the commission what what can they actually do can they be businesses.
And any new.
Court of appeal hearing and.
For recertification, just just curious.
And I think there are varying levels of what different parties could do but in the instance, perhaps on the Gulf.
The department of economic development different chambers, even.
Local nonprofit organizations I think basically what they are falling in support of the critical need of this infrastructure for the for the St. Louis region.
So that's really what we're looking for is trying to having very collaborative engagement from all third party for whether that's likely to officials, whether it's business as we have a large contingency of industries that are going to file for support of this and so I think it depends on what that party is relative to what they can do but in some cases, you could have potential intervention.
As you go through as you go through the procedure. So I don't think any 1 size fits all but I think on what we have seen is overwhelming support again from from the political community from the business community from nonprofits and really its 1 that once we've educated people on what this is it's been a very easy position for them to for us for.
Right got it and then.
Spire Missouri's 2 for you.
Shipper.
On the pipeline.
Call you had some excess capacity was that ever contracted to someone outside.
You know.
For the spire utilities.
Yeah.
Brian This is Steve Yeah, we've actually on a short term basis, we have customers who are talking on the pipeline, including.
Spire marketing.
Taking some of that volume because they see the opportunity to take the flowing natural gas and create some value with it and there are a few other small customers. We haven't contracted out on a long term basis for that remaining 50 a day.
Okay, and then lastly on the rate cases is it customary to leave you know cap structure.
Uh Huh and ROE etcetera up for.
The commission needs to decide or.
Is that something that you could possibly for partial settlement and so on.
As you from procedural schedule.
We certainly expected it to go through hearing it's something that the commissioners I think what we'd like to hear the parties' positions on so that's not a that's something that we were surprised by it all but it really anything is possible on a settlement.
And Brian.
I agree wholeheartedly with that observation that every case we've been in.
Our commissioners want to hear that because let's face. It those are 2 of the big deals that moved the rates more than just about anything else and then whether or not they actually settle on and.
And announce our cap structure or Roe or whether they black box settled those and any other open issues that will be 1 of the many things that all the parties, we'll evaluate as they move forward. After after the hearings on rubber and briefs are filed and know they only for what I would add on that is it's not uncommon for commissions.
You want to build a record around 2 bigger pieces and that's not uncommon at all and so on a kind of consider it more normal course.
Right understood. Thank you very much.
Thank you.
The next question will come from Selman <unk> of Stifel.
Thank you I'm just trying to put some dates on on the calendar and if theres no action taken by.
It is a FERC the courts is.
By playing out to be shut down by August 12th or is there a day you could give us when time runs out.
Is there any time line would start moving once the court responded to us.
And then it's the 7 days from that response.
Yes.
If the response was negative yet.
Got it understood.
Okay. Thank you very much.
Thank you Tom.
Once again, if you have a question you can press Star then 1.
Seeing no further questions. This concludes our question and answer session I would now like to turn the conference back over to Scott Dudley for any closing remarks.
Well. Thank you all for joining US today, we know it's a very busy earnings season for all of you. Thank you for your interest in spire and we'll talk soon thank you.
Thank you. The conference has now concluded. Thank you all for attending today's presentation. You may now disconnect have a great day.
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