Q2 2021 Essential Utilities Inc Earnings Call
Yeah.
[music].
Good day and welcome to the essential utility Inc's second quarter 2021 earnings call Today's conference is being recorded.
At this time I would like to turn the conference over to Mr. Brian <unk>. Please go ahead Sir.
Thank you Cathy good morning, everyone and thank you for joining us for essential utilities second quarter 2021 earnings call and bra.
Ryan dangerous and head of Investor Relations. If you did not receive a copy of the press release, you can find it by visiting the Investor Relations section of our website at essential Dot com. The slides that we will be referencing and the webcast of this event can also be found on our website.
Here's our forward looking statement as a reminder, some of the matters discussed during this call may include forward looking statements that involve risk uncertainties and other factors that may cause the actual results to be materially different from any future results expressed or implied by such forward looking statements.
Please refer to our most recent 10-Q10-K and other SEC filings for a description of such risks and uncertainties.
During the course of this call reference may be made to certain non-GAAP financial measures.
Reconciliation of these non-GAAP to GAAP financial measures is included at the end of the presentation and also posted on the Investor Relations section on the website after.
After the presentation, we will open the call up for questions.
And here's our agenda for the call today, and you'll start with Chris Franklin, Our chairman and CEO, who will discuss highlights and provide a company update next Dan Schuller, our CFO will discuss our financial results. Chris will then provide an update on our municipal acquisition program and conclude the presentation portion before opening the call for questions.
And that I will turn the call over to Chris Franklin.
Hey, Thanks, Brian and good morning, everyone. Thanks for joining us.
Let's start the call with a look at the second quarter highlights.
On another strong quarter with net income growth of 8.4% Dan is going to discuss that in detail and just a moment.
We invested over $404 million and infrastructure improvements throughout all of our systems and the first half of the year as compared to $346.6 million and the second quarter of 2020, you might recall that in May our long term board member and former CEO Nik <unk>.
This step down creating a vacancy on the board than in July The board appointed Dave <unk>, who joined the board of director, Dave Currently serves as President and CEO and director of Lancaster Colony Corporation and.
And serves as president of TMR as Eddie and company.
Food company based in Ohio.
And that essential and Dave will serve on our audit and corporate governance committees, where he brings extensive experience developing and developing and implementing plans for growth.
And with a very successful leadership team.
The addition of Dave's Osinski, along with Edwina, Kelly, who was appointed earlier and the year has brought our board back now to 9 members.
Also last month, the board approved a 7% increase to the quarterly dividend, which is now nearly 27.
Marking 3 decades of dividend increases.
Our municipal acquisition strategy remains strong as we announced the closing of our first fair market value transaction and Texas.
And we have 7 pending acquisitions totaling about $458.5 million.
And purchase price.
And finally.
We published our 2020 ESG report that fully incorporates our natural gas segment, and I'll talk a little bit more of that not that and just a moment.
The 7% dividend increase we announced in July marks the 31st and increase in 30 years and the 76th.
Consecutive year of quarterly dividend payments, we're very proud of that.
Following the increased the annualized dividend rate will be just over $1.7 per share.
We're really proud of not only our commitment to providing safe and reliable access to natural resources for our customers, but also our long and consistent record of delivering shareholder value.
You might recall that last October we launched our new ESG Microsite, which included our 2019 results for our legacy water and wastewater operations.
And I'm excited to tell you today.
We are launching our 2020 ESG report on a micro site, we just published it.
Last couple of days and in the New report gas operations are fully included for the first time in fact, we provide the same level of depth for both our legacy water wastewater business and our natural gas business.
We also share information at the enterprise level in the New report.
And now we didn't simply add gas operations to the report. We also included some new topics and.
And some more extensive information on some of the topics that I know are important to many of you as investors I.
I think you'll find the ESG microsite makes the experience, even sharper and more dynamic and even more user friendly so I hope and take a look at it.
Now this.
And enhanced site.
Covers our continued commitment to our mission. Despite our COVID-19 challenges. It also covers our excellence and water quality, including our 7 times outperformance of the average in the United States.
And further discusses our 7% increase in diversity hiring year over year, along with more detailed workforce composition data as many companies are now doing.
This progress on ESG during a difficult year and 2020 helped us earn recognition as 1 of the 100 best corporate citizens and the Russell 1000, and again something we're very proud of.
While we're talking about ESG.
To update you on our progress on the ESG commitments, we announced at the start of the year.
We set a multiyear employee diversity target to reach 17% of our employees of color. Currently we're at 14% of our essential employees are people of color.
We also set another multiyear target of 15% of our suppliers would be diverse we've made strong progress since the beginning of the year and in fact, we currently stand at about 9.6%.
We've also achieved a 5% scope 1 and scope 2 emissions reduction. This is a strong start toward our ultimate goal, while our our 2035 goal of a 60% reduction and greenhouse gas from a 2019 baseline and achieving that target.
Us.
More than halfway toward our ultimate goal of net zero emissions.
We're confident that we have the programs and the plans in place to achieve our targets and look forward to continuing to share our progress with you over the coming years.
We know that our commitment to environmental stewardship sustainable business practices employee safety and diversity inclusion and customer experience and community engagement is also very important to our investors.
And with that let's talk about the second quarter financial results, Dan Yes, Thanks, Chris Good morning, everyone.
We ended the second quarter with revenues of $397 million up about 3.3% from last year, our regulated water segment contributed $248.2 million and our regulated natural gas segment contributed $141.6 million.
<unk> expenses remained relatively flat for the quarter decreasing to $127.5 million and the second quarter down from $128.6 million and the second quarter of last year.
Net income was up 842% year over year from $74.6 million to $80.9 million.
GAAP earnings per share increased by 3 from 29 to 32.
Next we'll walk through the waterfall slides starting with revenue.
And the second quarter of 2021 revenues increased $12.6 million or 3.7% on a GAAP basis, youll see that rates and surcharges were the largest contributors at $9.2 million with the primary driver being the regulated water segment increased volume and growth from our regulated water segment provided an additional $5.7 million towards the <unk>.
Revenue increase.
And while the price of purchase gas added approximately $1.5 million and other added $1.2 million.
Revenue increases were offset by decreased volume from the regulated natural gas segment of $4.9 million due to the warmer weather than last year.
Next let's look at the water consumption by customer class.
We had favorable conditions and the second quarter and water consumption and increased in every state except Texas.
And aggregate water usage was up 4.2% and the second quarter. However, it's worth noting that for the first time since Covid started residential usage declined as youll recall commercial water consumption has consistently been down since COVID-19 began but with many businesses reopening and customers returning to the workplace commercial usage.
Increased 20% for the quarter and our other segments were favorable versus last year as well.
When compared to the first 6 months of 2020 overall usage was up 3% and 2021 is almost all customer classes increase their usage year over year.
Operations and maintenance expenses were $127.5 million per second quarter down 8.5% compared to $128.6 million for the second quarter of 2020.
Employee related costs were up $4.6 million for the quarter, which included $3.2 million of increased medical costs.
This increase was expected as many people delayed non emergency medical visits during Covid and then recently began to return to their health care providers.
Production cost and growth for the regulated water segment added another $2.2 million. However, these increases were offset by $4.3 million and other and $3.5 million and COVID-19 costs when compared to Q2 of 2020, resulting and the overall decline in O&M expenses.
Next we will review the earnings per share waterfall.
Okay.
GAAP EPS and the second quarter increased by 3 from 29 and 2020 to 32.
Rates and surcharges added 2 and a half cent volume and growth from our regulated water segment together contributed a center and a half and O&M added nearly a set these were offset by lower volume from our regulated natural gas segment of 1.4 and <unk>.
Other penny from other items, including depreciation, which brought us to GAAP EPS of <unk> 32.
For 2020 for the second quarter of 2021.
Yeah.
And when we rolled out our formal guidance earlier. This year, we provided relatively large ranges for a quarterly breakdown.
For Q2, we saw warm dry weather across much of on water service territory, resulting in stronger than expected water sales and more favorable than expected expenses, including O&M tax and other which led to the strong 32% of EPS.
This built off of what was expected and largely reflected by many of you to be a flat to down performance versus the same quarter last year, largely due to the way that people's repair benefit was reflected in our condensed here of ownership and 2020.
Well I know most investors not particularly focused on quarterly estimates and are instead and more focused on annual earnings we want to bring additional clarity to what we see for the third and fourth quarters of this year, it's not our intention of permanently provide quarterly guidance, we thought it might be helpful to provide some additional details of this year.
Specifically when you look at our year to date performance and current consensus for Q3, and Q4, you might assume that we'd have a very big year for earnings.
Keep in mind that there are expenses that are expected to come through during the second half, including expenses related and the People's acquisition commitments certain maintenance items and increased health care costs that will keep us within our full year guidance range.
Additionally, there are and incremental $6.7 million shares from the August 2020 forward offering and they would expect to settle next week and those additional shares will impact the EPS calculation.
For clarity, we will have those incremental shares for more than 4.5 months and the second half of the year.
And specifically for Q3, the gas business does not generally make money. When you look at Q3, you should expect something and the lower end of the 10% to 20% net income contribution range that we provided for the quarter.
And for Q4, the gas business, then starts to generate meaningful revenue again as the heating season and begin, but we'll be waiting on new water rates and Pennsylvania, and therefore would expect and result in the lower end of that range as well.
Realizing these quarters and considering the expenses noted earlier, if we experienced normal weather our full year results should be around the midpoint of our stated guidance range of $1.64 to $1.69.
Moving on to rate activity and other matters.
So far and 2021, we've completed rate cases, or surcharge filings for our regulated water segment, and New Jersey, North Carolina, Ohio, Pennsylvania, and Illinois, Indiana, and Virginia with total annualized revenue of $16.7 million.
And our regulated natural gas segment, we completed rate cases, or surcharge filings and Pennsylvania, and Kentucky with total annualized revenues of $1.3 million.
We currently have 2 base rate cases underway, 1 for Delta gas and Kentucky, and 1 for Aqua, Ohio, and importantly, we expect to file a rate case for Aqua, Pennsylvania later on the mine in line with the 3 year rate case cadence that we have outlined previously and we will provide additional details related to that case once it is filed.
And with that I'll hand, it back over to Chris.
Thank you Dan.
Take a few minutes and review our municipal transaction activity, Matt Rhodes and his team along with our state presidents and their teams have been busy at work on our growth projects earlier. This week, we announced the closing of the Commons water in Texas you May recall this water system serves about a thousand customers and this.
Houston suburbs and is our first fair market value acquisition in Texas.
And we've signed we have 7 signed asset purchase agreements pending closing, including the recent addition of an agreement to purchase.
On the wastewater I'm sorry.
<unk> water assets.
Assets in the borough of Shenandoah, Pennsylvania for $12 million the system serves approximately 3000.
Customers.
These 7 pending transactions plus the 1 closed transaction will add close to 234000 customers or customer equivalents and approximately $462.5 million of rate base when closed.
We remain confident that we will close the Dell core transaction and when.
Make that clear. This is 1 of the most frequent questions. We get while we continue to wait for the state court to decide on the case.
And we want to reiterate that we continue to have positive and productive conversations both internally and externally.
We remain focused on closing this transaction and continue to believe that we are the best solution for the operation of the Dell core system its customers and our investors.
I think it's also important to note and mentioned to you that.
And our valid and enforceable contract with Dow Cora includes a provision that makes the contract valid until 60 days. After all litigation is concluded and I think thats an important factor to remember as we continue to pursue the closing of that transaction.
Now in addition to the signed municipal transactions mentioned on the previous slide we have a healthy pipeline of potential municipal opportunities as we look at the second half of 2020, 1 and beyond.
This table includes acquisition opportunities, where we are engaged in active discussions with municipalities.
As this slide demonstrates we are actively pursuing approximately 390000 potential new customers.
And we continue to believe that fair market value legislation and favorable regulatory environments provide municipalities with the ability to pursue solutions to their infrastructure needs.
And access industry experience and expertise through companies like ours.
So I'll wrap up the call at least the formal part of the call.
With a reaffirmation of our 2021 guidance and despite the very strong first half of the year as Dan mentioned, we continue to expect earnings to be between $1.64 to $1.69 a share.
Our capital plans remain on track as we anticipate spending approximately $1 billion on regulated infrastructure. This year. The final mix of this capital spending may be more weighted towards the regulated water segment.
We anticipate investing nearly 3 billion across the essential platform by 2023 driving rate base growth growth to be 6% to 7% and water and 8% to 10% per gas.
Customer growth is expected to be between 2% and 3% on average for our regulated water segment and finally, we continue to make progress with our ESG targets to ensure the strength of our company is not only measured by our financial performance, but also our commitment to the environmental stewardship sustainable business practice.
Employee safety diversity, and inclusion and customer experience and community engagement with that of <unk>.
Include my formal remarks and open the line for questions.
If you would like to ask a question. Please signal by pressing star 1 on your telephone keypad and.
If you're using a speaker phone. Please make sure your mute function is turned off.
And I'm sure Vijay equipment.
Again that is star.
And 1 for questions.
And we will take our first question from Ryan Connors with Boenning and Scattergood.
Hey, good morning, Ryan.
And thanks for taking my question, Chris I wanted to get your take on and on the noise out there on fair market value F&B.
Obviously, there are some detractors which include some of your peers are smaller peers is pretty.
Pretty public debate going on there. So my question is twofold number 1 do you see any of that having any tangible impact legislatively or regulate regulatory wise in terms of any kind of a rollback of FMT and then number 2 more tactically on discrete deals do you think that could complicate things.
And if people sort of hold those those peer.
Humans and comments and your face as you try to move deals forward.
That's good question.
I think there is some noise from.
And from some of the smaller companies, who maybe have <unk>.
Less ability to use fair market value.
Having said that there was a very interesting op Ed in today's.
And 1 of the New Jersey publications and happy to share that around but that was authored by 3.4 and public utility commissioners and 1 from Illinois, 1 from Pennsylvania, and 1 from New Jersey.
Indicating how favorable day view fair market value and how they think it has it been a.
A nice step forward for the consolidation of an industry that is.
We all know Balkanized and very fragmented across the country. So I think that although there are different views.
I would say the prevailing thought among regulators and legislators for that matter is a very positive view of fair market value. So I don't see any rollback, either on the regulatory side or on the legislative side.
You see it picking up momentum as more and more municipals are looking for options to to deal with their capital constraints and also.
The ongoing and probably growing.
And.
Environmental constraints.
And what about the second part was just on so understood you don't see any real impact of legislatively or real tangibly on on a regulatory side, but.
How could that or could not or maybe not impact individual deals I mean is that something youre hearing that stuff come up as you try to move things forward or is that sort of.
No not on the radar of those constituencies and individual deals.
I haven't seen it come up and any of the discussions we've had.
Most people don't know that there might be.
And.
On an industry leader out there who's who's not in favor of a fair market value. So it hasnt come up and our discussions and I think given what I mentioned before with a corresponding.
Very positive.
Our beds and pieces out there I think we could we could easily match some of the detractors with with probably the more favorable and majority of the people who are are saying favorable things and writing.
Understood.
Second 1 was just staying on the legislative side.
Water quality accountability legislation in Pennsylvania.
SB $5.97, and we had thought that maybe there and we will get some movement on that by now, but it looks like thats been pulled back and some of the municipal interest groups are out there and sort of claiming victory on that saying that their lobbying.
And the desired effect and got that pulled is that what's your what's your response to that is that still moving forward should we see that move ahead. This year do you think.
Yeah, I've seen no pullback in fact.
As Youre, probably aware it was moved out of the Senate Committee.
I think there was only 1 dissenting vote.
As it moved out of the Senate Committee.
I think it will continue to be.
Negotiated.
And this 1 has enforcement provisions right and that's where it all comes down what we're asking in the water quality Accountability Act and Pennsylvania is unbelievably fair rate create your replacement cycle.
Cyber security plans in place these are all things that if.
Even if they were never to sell their systems. These are things that people should expect of their water systems that anywhere in the country, especially anywhere in this country and so.
I think the municipal as you mentioned or some municipals as you mentioned Ryan will continue to oppose and try to negotiate this but ultimately this bill will be a difficult bill for them to stop and I do think something moves through the legislature before the year's out.
Got it very helpful. Thanks for your time.
You bet.
And we'll take our next question from Travis Miller with Morningstar.
Hey, Travis.
Hi.
I'm wondering on the Texas deal and a small but wondering if you could elaborate a little bit on the process you went through as it smoothed was a timely and.
Any points of friction as you went through the thinking mostly about the first 1 under the F N b.
Thoughts there and how that 1.
Your line.
Yeah, I think I think it.
It took 1 year.
So I would call that relatively smooth and in the scheme of things.
As you know the Texas Commission as is.
And as distracted a bit at this point dealing with the events of last winter and so I would say.
Relatively smooth process.
Okay.
Does that I guess so.
And it's been in terms of your pipeline.
How much.
In Texas is in your pipeline.
Or alternatively, how much opportunity.
Do you see and Texas given that this 1 smoothly and.
And perhaps give support to doing more deals.
Yeah.
And typically break our pipeline down by state, but I will say that there are a number of opportunities and and I would I would suggest that even sizable opportunities in Texas that we see.
And and <unk>.
On our on our radar there so.
It's developing so I'll concede that it's it's not galloping at this point, but and certainly if there is competition and Texas, but I think there is also opportunity that.
As you know once you get 1 or 2 of the deals done others start to take note, especially if the prices are considered to be fair, which I think this 1 was very fair.
Hmm.
And.
Okay.
Yeah, and try and Travis you should think about this too that in Texas fair market value applies also to investor owned utilities, not just municipals. So it's an interesting twist to the legislation.
We've seen and other states.
Okay, Okay, Alright thats helpful. Thank you.
Take care.
Okay.
And we'll take our next question from Jonathan Reeder with Wells Fargo.
Hey, Jonathan.
Hey, good morning, Chris.
And now.
Hey, just wondering what the latest is on.
Pennsylvania Commissioner appointments.
And I thought last we spoke you said there might've been some sort of kind of 2 per 1 deal between the governor and the Senate Republican and you'd be more on that front or.
Yeah, I guess it would be more informal than anything I guess I guess.
What we what we know as fact range. There are 4 seeded commissioners currently commissioner suites term ended on April 1 of this year.
And then he is required to vacate the seat on October 1.
So if nothing else changes between now and the first of October, which we don't anticipate the legislature doesn't even go back until the second week in September.
So we would anticipate then on October 1 Commissioner suite would step down and then the commission would be to Republicans.
That's a commissioner and Nora and Commissioner Coleman and 1 Democrat the chairman.
And so you would be a 2 to 1 Republican majority, which is really unheard of to be down to 3 commissioners and have the majority flip and.
And.
Allison This is informal now the rest of this but.
The debate appears to be framed around the regional greenhouse gas greenhouse gas initiative right Reggie and the governor is.
On.
On staying as a part of Reggie and.
The peds.
Pennsylvania Senate has said, we're not going on and new commissioners as long as that's the case and so that's a bit of a stalemate how that gets and ends up being negotiated out I don't know but.
Certainly the chatter in the state capital is that we could end up finishing this year with that 2 to 1 Republican majority, but time will tell.
Okay and then if there is a 2 to 1 I mean do you think they are prepared to still act on your pending on core application and in some form or fashion, whether it's conditioned on the appellate court process or whatever.
Well I can't say for certain what they are.
Moving to act on but what I can say is they are they are empowered to continue to do the business of the commission and other words.
And not need a full commission ceding commission in order to continue to complete the business of the PUC. So.
Whatever comes before them they do have the power to act on.
Got it.
And yet you did talk.
On the timing of a solution on the.
Quarter deal.
Yeah, I mean, we're saying.
2022 now Jonathan.
The Pennsylvania state quarter Commonwealth Court.
And that just takes time as we grind through the process and so.
I would think that that would be the case.
Just a little bit of color on this there is an election and Delaware County, 2 of the ceded commissioners or council and as they call them and Delaware County are up for election.
1 of them is not running again he was the chairman and.
And Mr <unk> and <unk>.
So he'll be replaced absolutely and then there was another.
Commissioner accounts on the name of Madden, who is also up so there could be a change and the and the makeup of Delaware County Council. There will absolutely be on makeup of at least a change and 1 maybe 2.
When we come into January and their ceded immediately in January is like January 3rd or something so we will see some change there might there be an opportunity with a new look and a new set of counsel people 2 to find a settlement.
No.
Okay, and but at record has to fully play out I mean, it's somewhere.
Mid 2022 or kind of earlier and the year.
It's really hard to put a gauge on how quickly the Commonwealth Court.
We'll move we said.
And maybe in that 6 month timeframe, so could that be by mid year.
And I just I have a.
I don't want anybody put numbers on it because it's just hard to tell how quickly the court will move.
Okay got it no that's fair enough and then.
I think you said you're still you haven't filed the PAA water rate case did you indicate how soon and that's gonna be filed or like what kind of timing and we should think of.
Yes, Jonathan and think of that just in the coming weeks it'll be father and filed later this month and which keeps us on that that 3.3 year cadence that we've talked about.
Perfect. Okay. So weeks, yes, okay great.
Thanks, so much and say Oh my gosh.
Alright, Thanks, Jonathan take care.
Thanks, so much and.
Great Great color on the second half of the year I mean that eliminated I think a lot of the questions we have.
Perfect I appreciate your answers.
Thank you.
And take our next question from Verity Mitchell with HSBC.
I've already have Eric.
Good morning, everybody I've just got 2 questions..1 is about the GAAP cost and accounting stable between 'twenty 1 and.
And in line with your expectations on when do you want to execute it.
And I'll call out on that and and then the second question is that as long and so yeah. If you want to give us the sales pool, what the web has been like in July and August that's clearly I wouldn't know where I'm calling from.
Yes, so gas customer count will be relatively stable year on year.
It's interesting we tend to pick up a few customers with new connection, but we lose a few customers as well so that business is pretty close to stable, whereas.
Several of the water states, we continue to add on the organic side growth tends to be and Pennsylvania, North Carolina, Texas. The places that you would imagine that there's building going on.
In terms of the weather I would say.
And kind of differs by part of the country generally it's been pretty nice, but we have seen spots with some more rain.
Texas had kind of a rainy start of the summer and it started and then kind of mid July timeframe debt to warm up and.
And the hot weather again and in Texas.
Yes, we made we've had a bit of rain here in Pennsylvania on and off so.
And we're just getting the July numbers and here and kind of taking a look at it.
And the colorant and give at this point, Chris any any further yes.
I think I think that's right.
Verde and particularly in this area, where we have a lot of water customers in Pennsylvania and once.
You want the summer to be dry, but not to drive that people give up on their grass right and so I think that's where we are right now people continue to water.
We're thinking it's looking pretty normal but.
What we will see what the next couple of weeks bring there theyre predicting here in Philadelphia on the on the morning news today that we could get our fifth heat wave of the season and I.
I guess, that's 5 days and the nineties.
Coming up this week, so maybe we'll sell some water.
Great. Thank you.
Yes, Thanks Meredith.
And as a reminder, if you would like to ask a question. Please press star 1 and we will take our next question from Ben <unk> with RW Baird.
Hey, guys.
Hey, Matt talk to you and I.
I hope Youre doing well.
Maybe just.
On the upfront.
There was a flurry of military bases and.
<unk>.
Haven't seen 1 maybe I missed it lately could you talk to that and then just maybe more on.
So the Texas announcements.
And.
I've seen some other movement there could you just talk about the Texas market.
How appealing that as you versus all the other stuff on your plate. Thank you.
Yeah on the military front as you know we haven't played there that really hasnt been we've been largely focused on on municipal market, which is very open and the stage, where we are so.
And I haven't I haven't seen much on military of late.
Though I do know that there are continue to be some opportunities.
Moving forward, but.
We've just we've just not stopped play there and.
So I guess, the and focusing on Texas and listen we're always high on Texas. When you look at the population numbers alone and Texas, you said you'd say buoy the growth and population should then show some growth and.
Housing starts and then obviously.
And be more water sales and and on and on and we've been.
Very active there we've got a very active state team and very active and the legislative front as you know on the on the fair market value and so we're optimistic about Texas, but I think we're at the opening stages for municipal but as we just reminded everyone a minute ago.
The new fair market value legislation in Texas applies not only to municipals, but also to investor owned so the market's pretty pretty wide open there and it's a matter of it's a matter of continuing to till the soil and really opening that market now that we have the legislation and we need.
Great and then on the ESG front could you just talk about maybe.
There is interaction between your ESG profile and.
No.
And your local utility commissions.
And yet or and how that works.
And they look at that or the bulk of that yet. Thank you.
Sure I think there are aspects of ESG call it.
Diversity equity and inclusion and certainly greenhouse gas emissions environmental.
And I always call it ESG, but certainly the elements are there and those are widely discussed as we as we talk with regulators.
And I do think that the.
The overall ESG platform is here to stay and I think it will continue to be a topic with not only investors but regulators.
Interest level as I said, though seems to be forming up more around.
Individual issues as opposed to.
Yeah.
The overall ESG and I'll point to.
Renewable natural gas.
And and how those if we were to go there how those costs might be recovered other utilities have already begun to test mechanisms and we're watching those very carefully so as we think about.
Environmental and environmental aspect of of ESG, I think thats, where all of form up for us at least on the gas side and.
And then Chris maybe on a place to just be customer assistance programs, yeah, good point and overlap there Yep Yep Yep, and we're doing a lot of work around customer assistance, particularly and and Pennsylvania right now.
Okay. That's helpful. Thank you guys congrats and thanks, Matt.
It appears there are no further questions at this time I would like to turn the conference back to Mr. Chris Franklin for any additional or closing remarks.
Great. Thank you.
Dan Brian and I are always available for follow up questions. If there are any but in the meantime, thank you for joining us and appreciate the questions and your attention B well.
Yeah.
And that concludes today's presentation. Thank you for your participation you may now disconnect.
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