Q4 2021 Emera Inc Earnings Call

Good day and thank you for standing by welcome to the Emera Q4, 2021 analyst call at this time all participants are in a listen.

Speaker 1: and thank you for standing by. Welcome to the AMIRA Q4 2021 Analyst Call.

Only mode. After the speaker's presentation, there will be a question and answer session.

Speaker 1: speaker's presentation, there will be a question and answer session.

Speaker 1: To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is adjourned.

Ask a question during this session you will need to press star one on your telephone.

Please be advised that today's conference is being recorded if you require any further assistance. Please press star zero I would now like to hand, the conference over to your Speaker today, David Jansen. Please go ahead.

Speaker 1: If you require any further assistance, please press star zero. I would now hand the conference over to your speaker today, Dave Bezanson. Go ahead.

Yeah.

Speaker 2: Thank you, Don, and thank you all for joining us this morning for AMIRA's fourth quarter 2021 conference call and live webcast.

Thank you Don and thank you all for joining US. This morning for <unk> fourth quarter 2021 conference call and live webcast mirrors fourth quarter earnings release was distributed this morning via newswire and the financial statements management's discussion and analysis and the presentation being referenced on this call are available on our website at <unk> dot.

Speaker 2: AMIRA's fourth quarter earnings release was distributed this morning by a news wire and the financial statements, management discussion and analysis and the presentation being referenced on this call are available on our website at www.amiira.com.

Com joining me for this morning's call are Scott Balfour, <unk>, President and Chief Executive Officer, Greg Blunden, Amira as Chief Financial Officer, and other members of the mirrors management team.

Speaker 2: Joining me for this morning's call are Scott Belfort, AMIRA's President and Chief Executive Officer, Greg Blunden, AMIRA's Chief Financial Officer, and other members of AMIRA's management.

Speaker 2: Before we begin, I will take a moment to advise you that this morning's discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slide.

Before we begin I will take a moment to advise you that this morning's discussion will include forward looking information, which is subject to the cautionary statement contained in the supporting slide.

Speaker 2: Today's discussion and presentation will also include references to non-GAAP financial measures.

Today's discussion and presentation will also include references to non-GAAP financial measures you should refer to the appendix for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure and now I will turn things over to Scott.

Speaker 2: You should refer to the Appendix for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. And now I will turn things over to Scott.

Thank you, Dave and good morning, everyone.

Speaker 2: This morning we reported annual adjusted earnings of $723 million. And I'm pleased to say that thanks in large part to record earnings at Peoples Gas and Dimir Energy's exceptional year, this represents our highest annual adjusted earnings to date.

This morning, we reported annual adjusted earnings of $723 million and I'm pleased to say that thanks in large part to record earnings at peoples gas and energy has exceptional year. This represents our highest annual adjusted earnings to date.

Our fourth quarter adjusted earnings per share was <unk> 74.

Speaker 2: Our fourth quarter adjusted earnings per share was 74 cents. And annual adjusted earnings per share was $2.81.

And annual adjusted earnings per share was $2 81.

Speaker 2: When you further adjust for a legal settlement we received in the fourth quarter of last year, adjusted earnings per share increased 7% over the fourth quarter of last year and 11% year over year.

When you further adjust for a legal settlement we received in the fourth quarter of last year adjusted earnings per share increased 7% over the fourth quarter of last year and 11% year over year.

Speaker 2: This is a continuation of our established record of providing predictable, sustainable growth in earnings and shareholder value.

This is a continuation of our established record of providing predictable sustainable growth in earnings and shareholder value.

Speaker 2: Since 2017, we've delivered 8% compound annual growth in adjusted earnings. And in 2021, we raised our dividend by 4%, representing 15 continuous years of dividend growth.

Since 2017, we've delivered 8% compound annual growth in adjusted earnings in 2021, we raised our dividend by 4% representing 15 continuous years of dividend growth.

Speaker 2: Our continued financial and operational success highlight the strength of our strategy and the dedication of our team as they continue to focus on delivering value to our customers.

Our continued financial and operational success highlights the strength of our strategy and the dedication of our team as they continue to focus on delivering value to our customers.

Speaker 2: As we advance our strategy to reduce the carbon intensity of our portfolio and invest in a stronger more reliable grid, all at a pace that is cost effective for customers, we are well positioned to continue to deliver long-term growth for our shareholders.

As we advance our strategy to reduce the carbon intensity of our portfolio.

And invest in a stronger more reliable grid all at a pace that is cost effective for customers. We are well positioned to continue to deliver long term growth for our shareholders.

Speaker 2: Nova Scotia Power achieved an important milestone in their decarbonization journey in the third quarter of last year, when hydro energy from Muskrat Falls began flowing to Nova Scotia through the Maritime Link.

Nova Scotia power achieved an important milestone in their de carbonization journey in the third quarter of last year, when hydro energy from Muskrat falls began flowing to Nova Scotia through the maritime link.

Speaker 2: Access to this clean energy is the major contributor to enabling Nova Scotia to reach 60% renewable energy by the end of 2022.

Access to this clean energy is the major contributor to enabling Nova Scotia to reach 60% renewable energy by the end of 2022.

I am pleased to report that last week, the utility and review Board approved the $1 8 billion final cost assessment for the Maritime link.

Speaker 2: I'm pleased to report that last week the Utility and Review Board approved the $1.8 billion final cost assessment for the Maritime Link.

Speaker 2: This represents a significant achievement for the business and a testament to the transparent and disciplined approach taken on large capital projects.

This represents a significant achievement for the business and a testament to the transparent and disciplined approach taken on large capital projects.

Speaker 2: In fact, the UARB called it a commendable achievement that we were able to complete this extraordinary project on time and on budget.

In fact, <unk> called it a commendable achievement that we were able to complete this extraordinary project on time and on budget.

Well seeing the Nova Scotia block fully flowing as it is now is an important step in our de Carbonization journey, we know there's more to do.

Speaker 2: While seeing the Nova Scotia block fully flowing as it is now is an important step in our decarbonization journey, we know there is more to do.

Speaker 2: with mandates from both the federal and provincial governments to eliminate coal fire generation in Nova Scotia, we will have to continue to find innovative ways to achieve these goals in a way that is the most cost effective for customers.

With mandates from both the federal and provincial governments to eliminate coal fired generation in Nova Scotia, We will have to continue to find innovative ways to achieve these goals in a way that is the most cost effective for customers.

Speaker 2: We also continue to be committed to strengthening and modernizing the grid. And in 2021, we saw meaningful improvement in reliability at both Tampa Electric and Nova Scotia Power.

We also continue to be committed to strengthening and modernizing the grid and in 2021, we saw meaningful improvement in reliability at both Tampa Electric and Nova Scotia power.

With the increasing intensity of storms like we've seen over the last two months in Nova Scotia, we need to continue to invest in strengthening the grid.

Speaker 2: With the increasing intensity of storms, like we've seen over the last two months in Nova Scotia, we need to continue to invest in strengthening the grid.

Speaker 2: In 2021, Nova Scotia Power invested $65 million in projects specifically focused on improving grid reliability.

In 2021, Nova Scotia power invested $65 million in project, specifically focused on improving grid reliability.

Speaker 2: Continued investments in these types of projects have enabled Nova Scotia Power to achieve a 29% reduction in frequency of outages this past year compared to the previous five-year average.

Continued investments in these types of projects has enabled Nova Scotia power to achieve a 29% reduction in frequency of outages. This past year compared to the previous five year average.

Speaker 2: This follows a 16% improvement in 2020 compared to that previous five-year average.

This follows a 16% improvement in 2020 compared to that previous five year average.

Speaker 2: Continued investment in both targeted equipment replacements and upgrades, vegetation management, and new technologies will enable ongoing achievement of these kinds of improvements.

Continued investment in both targeted equipment replacements and upgrades vegetation management and new technologies will enable ongoing achievement of these kind of improvements.

Speaker 2: Tampa Electric also achieved a second consecutive year of best ever reliability performance.

Tampa Electric also achieved a second consecutive year of best ever reliability performance.

Speaker 2: Through their continued investment and focus on improving the customer experience, performance metrics like outage duration and frequency have improved by more than 20% since 2019.

Through their continued investment and focus on improving the customer experience performance metrics like outage duration and frequency.

<unk> by more than 20% since 2019.

Speaker 2: and momentary outages have been reduced by as much as 55%.

And momentary outages have been reduced by as much as 55%.

Speaker 2: Continued investment in their storm protection plan and their continued commitment to their customer positions them well to continue this positive momentum into 2022.

Continued investment in their storm protection plan and their continued commitment to their customer positions them well to continue this positive momentum into 2022.

Speaker 2: Growth across the business has been driven by the effective execution of our strategy.

Growth across the business has been driven by the effective execution of our strategy.

Speaker 2: This has been the driver of our growth for the last decade and we are well positioned to continue delivering this profile of organic growth as demand for cleaner energy continues to grow.

This has been the driver of our growth for the last decade, and we're well positioned to continue delivering this profile of organic growth as demand for cleaner energy continues to grow.

Our capital program as a whole really reflects our strategy and action, making carbon reducing and reliability enhancing investments and value to our customers.

Speaker 2: Our capital program as a whole really reflects our strategy in action, making carbon reducing and reliability enhancing investments of value to our customers.

Speaker 2: And I'm pleased to say that over 60% of our 2022 to 2024 capital plan is specifically focused on delivering cleaner and more reliable energy.

And I am pleased to say that over 60% of our 2022 to 2024 capital plan is specifically focused on delivering cleaner and more reliable energy.

Speaker 2: At our investor day in December , we shared our updated capital plan of $8.4 to $9.4 billion, a plan that is a billion dollars higher than our previous forecast. And beyond 2024, we see this growth extending well into the future.

At our Investor Day in December we shared our updated capital plan up eight 4% to $9 4 billion.

A plan that has $1 billion higher than our previous forecast and beyond 2024, we see this growth extending well into the future.

Speaker 2: To deliver on our climate goals, we will continue to make investments to decarbonize our portfolio, including investments in renewable generation, energy storage, and transmission.

To deliver on our climate goals, we will continue to make investments to decarbonize our portfolio.

Including investments in renewable generation energy storage and transmission.

Speaker 2: will also continue to make significant investments that continue to improve reliability and provide better customer experience.

We'll also continue to make significant investments to continue to improve reliability and provide better customer experience.

Speaker 2: Our ongoing investments in digitalization and decentralization initiatives like smart meters give customers more choice and control and are also an important part of building a cleaner, more reliable, and sustainable energy future.

Our ongoing investments in digitalization and decentralization initiatives like smart meters give customers more choice and control and are also an important part of building a cleaner more reliable and sustainable energy future.

Our forecast includes $500 million to be invested in the eastern clean energy initiatives at Nova Scotia power.

Speaker 2: Our forecast includes $500 million to be invested in the Eastern Clean Energy Initiative at Nova Scotia Power.

Speaker 2: This project includes investment in new wind generation, transmission infrastructure upgrades and battery storage to help facilitate the transition away from coal fire generation.

This project includes investments in new wind generation transmission infrastructure upgrades and battery storage to help facilitate the transition away from coal fired generation.

Speaker 2: It's our responsibility, in fact, it's our legal obligation to implement the policies that are legislated by provincial and federal governments to phase out coal and reach 80% renewables by 2030. But under the oversight of the regulators' transparent processes, we are also obligated to ensure that we do that in the most cost-efficient and affordable way possible for Nova Scotia.

It's our responsibility in fact, it's our legal obligation to implement the policies that are legislated by the provincial and federal governments to phase out coal and reached 80% renewables by 2030, but under the oversight of the regulators transparent processes. We are also obligated to ensure that we do that.

The most cost efficient and affordable way possible for Nova Scotia.

Speaker 2: In addition to the planned investments discussed above, we are actively engaged in conversations with the provincial and federal government on how we can work together to fully achieve these climate goals.

In addition to the planned investments discussed above we are actively engaged in conversations with the provincial and federal government on how we can work together to fully achieve these climate goals.

Approximately 70% of our three year capital program will be invested in the state of Florida.

Speaker 2: Approximately 70% of our three-year capital program will be invested in the state of Florida.

Speaker 2: We've seen strong customer growth in Tampa of approximately 2% per year.

We've seen strong customer growth in Tampa of approximately 2% per year.

Speaker 2: This growth helps us to manage the affordability for our customers, to help offset the cost of the required investments to reduce the carbon intensity of the generation mix and to improve reliability.

This growth helps us to manage the affordability for our customers to help offset the cost of the required investments to reduce the carbon intensity of the generation mix and to improve reliability.

Speaker 2: Our baseline capital forecast includes previously announced projects like investments in solar, the Big Bend modernization and storm hardening, as well as new investments in battery storage to help provide the capacity needed to support renewable generation.

Our baseline capital forecast includes previously announced projects like the investments in solar the Big Bend modernization and storm hardening as well as new investments in battery storage to help provide the capacity needed to support renewable generation.

It's no surprise that Florida has a strong solar resource, which makes investing in solar generation at Tampa Electric both the right thing to do for our customers and for the environment.

Speaker 2: It's no surprise that Florida has a strong solar resource, which makes investing in solar generation at Tampa Electric both the right thing to do for our customers and for the environment.

Speaker 2: Since we acquired Tampa Electric just over five years ago, solar has increased from less than 1% to approximately 12% of our generation capacity, representing an increase of over 700 megawatts of generation.

Since we acquired Tampa electric just over five years ago solar has increased from less than 1% to approximately 12% of our generating generation capacity, representing an increase of over 700 megawatts of generation.

Speaker 2: our continued investment in solar will increase that to approximately 19% by the end of 2023.

Our continued investment in solar will increase that to approximately 19% by the end of 2023.

Speaker 2: Solar continues to be in the best interest of our customers in Tampa, both economically and environmentally.

Solar continues to be in the best interest of our customers and Tampa, both economically and environmentally.

Speaker 2: In 2021, we also reached an important milestone in the Big Bend Modernization Project, achieving simple cycle commercial operation on December 1st, right on schedule.

In 2021, we also reached an important milestone in the Big Bend modernization project, achieving simple cycle commercial operation on December one.

Right on schedule <unk>.

Speaker 2: Combined cycle commercial operation is on track to be delivered by the end of this year.

Buying cycle.

Behind cycle commercial operation is on track to be delivered by the end of this year.

Speaker 2: Last quarter, I highlighted some of the key regulatory outcomes we achieved over the last 12 to 16 months that have supported the growth of our business.

Last quarter I highlighted some of the key regulatory outcomes, we achieved over the last 12 to 16 months that have supported the growth of our business.

Speaker 2: We've reached settlements at all of our U.S. affiliates, including Tampa Electric's uncontested and unanimously supported settlement that was approved by the Florida Public Service Commission.

We've reached settlements at all of our U S.

Our affiliates, including Tampa Electric's uncontested and unanimous unanimously supported settlement that was approved by the Florida Public Service Commission.

Speaker 2: More recently, the regulator in Gran Bahama has issued its decision on the GBPC rate application, approving an increase of $3.5 million US dollars effective April 1 of this year. And as mentioned last week, the regulator in Nova Scotia approved the final cost application for the maritime.

More recently the regulator in Grand Bahama has issued its decision on the GB PC application approving an increase of $3 5 million U S dollars effective April <unk> of this year and as mentioned last week the regulator in Nova Scotia approved the final cost application for the Maritime link.

As I look forward, we continue to have a very active regulatory calendar in front of us in.

Speaker 2: In December , the New Mexico Gas team filed a rape case with the regulator which, if approved, will see new rates effective January of 2023.

In December the new New Mexico gas team filed a rate case with the regulator, which if approved will see new rates effective January of 2023.

Speaker 2: The requested $41 million US dollar increase in revenues is principally to support continued investment in the reliability of this.

The requested 41 million U S dollar increase in revenues is principally.

To support continued investment in the reliability of the system.

We expect to have a decision on this application by the end of 2022.

Speaker 2: in Barbados, we expect a decision from the regulatory process that Barbados lighten power's general rate application in the second half of that year.

In Barbados, we expect a decision from the regulatory process at Barbados light and Power's general rate application in the second half of that year.

Speaker 2: I'd also like to take a few minutes to talk about the general rate application that we filed last month here in Nova Scotia.

I'd also like to take a few minutes to talk about the general rate application that we filed last month here in Nova Scotia.

Speaker 2: The request includes an annual increase to non-fuel revenues of 2.9%.

The request includes an annual increase to non fuel revenues of two 9%.

Speaker 2: and a fuel revenue increase of 0.8% in each of the next three years.

And a fuel revenue increase of 0.8% in each of the next three years.

Speaker 2: This is the first general rate application filed by Nova Scotia Power since 2012.

This is the first general rate application filed by Nova Scotia power since 2012.

Speaker 2: We see the GRA as an essential step on the path to a greener Nova Scotia and achieving the government's 2030 carbon goals. And we also understand that rate increases are never easy or popular. Especially as we know that Nova Scotians are feeling pressure on all fronts as the costs of food, housing, fuel and electricity all continue to rise.

We see the TRA is an essential step on the path to a greener, Nova Scotia, and achieving the government's 2030 carbon goals and we also understand that rate increases are never easy or popular, especially as we know that Nova Scotia, and they are feeling pressure on all fronts as the cost of food housing fuel and electric.

<unk> continued.

Continue to rise.

Speaker 2: Our application to the UERB is in large part based on the need to make significant investments as part of the province's energy transition.

Our application to the <unk> is in large part based on the need to make significant investments as part of the province's energy transition.

Speaker 2: The scope and scale of the investment required to meet the government's 2030 climate goals should not be understated. And we will continue to do our part.

The scope and scale of the investment required to meet the government's 2030 climate goals should not be understated.

And we will continue to do our part.

When it comes to greening the grid, we're proud of our track record.

Speaker 2: The GRA is an essential step that allows us to make the investments required to help the government hit its ambitious target.

The <unk> is an essential step that allows us to make the investments required to help the government its ambitious target.

Speaker 2: As we know, regulatory processes are complex and comprehensive.

As we know regulatory processes are complex and comprehensive they can and quite frankly should include many strong voices and differing opinions from customers consumer advocates community groups and government.

Speaker 2: They can, and quite frankly should, include many strong voices and differing opinions.

Speaker 2: customers, consumer advocates, community groups and government.

Speaker 2: We welcome that accountability and we believe that a rigorous regulatory process will result in a balanced and...

We welcome that accountability.

And we believe that a rigorous regulatory process will result in a balanced outcome.

Speaker 2: We respect the role that Nova Scotia's expert independent regulator, the UERB, plays in ensuring that rate applications are clearly and transparently just...

We respect the role that Nova Scotia's expert independent regulator <unk> plays and ensuring the right applications are clearly and transparently justified and that rate decisions are based on the facts with benefit of input from all stakeholders.

Speaker 2: and that rate decisions are based on the facts with benefit of input from all stakeholders.

Speaker 2: Since we filed our GRA on January 27th, there has been significant discussion around the proposal we submitted to address the net metering program in the process.

Since we filed our <unk> on January 27, there has been significant discussion around the proposal we submitted to address the net metering program in the province.

Speaker 2: The reaction from the solar industry, customers and government was strong. We listened, we understand the concerns we heard and we have since withdrawn the proposal.

The reaction from the solar industry customers and government was strong we listened we understand the concerns we've heard and we've since withdrawn the proposal.

As you know we are seeing the debate over net metering play out in many jurisdictions, it's a complicated issue.

Speaker 2: As you know, we are seeing the debate over net metering play out in many jurisdictions.

Speaker 2: And we recognize that we could have engaged more and communicated better on that.

And we recognize that we could have engaged more and communicated better on this.

Speaker 2: Our initial proposal tried to solve an issue of imbalance in the current rate design between customers

Our initial proposal tried to solve an issue of imbalance in the current rate design between customers.

Speaker 2: We were trying to do the right thing for our customers. It was certainly not our intention to hurt businesses in Nova Scotia with this proposal.

We were trying to do the right thing for our customers. It was certainly not our intention to hurt businesses in Nova Scotia with this proposal.

Speaker 2: We're sorry for not working harder to address the impact this change would have had on those businesses. So let me explain what we were trying to achieve.

We're sorry for not working harder to address the impact this change would have had on those businesses.

So let me explain what we were trying to achieve.

First let me talk about our commitment to solar power.

Speaker 2: Solar is absolutely part of helping Nova Scotia reach its 2030 climate goal.

Solar is absolutely part of helping Nova Scotia reach its 2030 climate goals.

Speaker 2: At Amiren, we see solar as an exciting and important part of our clean energy future.

At a mirror, we see solar as an exciting and important part of our clean energy future.

At <unk>, we have invested $1 four U S $1 billion.

Speaker 2: At Amera we have invested 1.4 US billion dollars in solar in Florida as part of the energy transition in that state.

In solar in Florida, as part of the energy transition in that state.

But we have to recognize some basic facts.

Speaker 2: Solar is more valuable in southern climates because the energy is generated when it is needed on hot summer days when air conditioning drives the peak load.

Solar is more valuable and southern climates, because the energy is generated when it's needed on hot summer days when air conditioning drives the peak load.

Speaker 2: Unfortunately, in Nova Scotia, solar alone will not close the coal plants that today are required to supply energy to Nova Scotians peak load, which happens on cold winter nights.

Unfortunately in Nova Scotia solar alone will not close the coal plants that today are required to supply energy Tinder, <unk> peak load, which happens on cold winter nights.

Speaker 2: We need to continue to invest in wind, batteries and transmission to import clean hydro from our neighbouring provinces because these are the most cost-effective solutions that offer the most reliability for customers in Nova Scotia.

We need to continue to invest in wind batteries and transmission two important clean hydro from our neighboring provinces. Because these are the most cost effective solutions that offer the most reliability for customers in Nova Scotia.

Speaker 2: Next, let me talk about the challenges of net metering design. This is not unique.

Next let me talk about the challenges of net metering design.

This is not unique to Nova Scotia utilities.

Speaker 2: utilities, regulators, governments and customer groups in many jurisdictions across North America have raised concern with net metering tariff design structures like that currently in place here in Nova Scotia.

Utilities regulators governments and customer groups in many jurisdictions across North America have raised concern with net metering tariff design structures like that currently in place here in Nova Scotia.

Speaker 2: Many jurisdictions are trying to balance these programs to benefit all customers, not just for today, but for the future.

Many jurisdictions are trying to balance these programs to benefit all customers not just for today, but into the future.

Speaker 2: And we look forward to working with government and stakeholders to find the right solution to this challenge for Nova Scotia.

And we look forward to working with government and stakeholders to find the right solutions to this challenge for Nova Scotia.

Speaker 2: On behalf of the thousands of employees who work at Amira and Nova Scotia Power, I'd like to reiterate that we are 100% committed to building a cleaner and greener Nova Scotia.

On behalf of the thousands of employees, who work at Amira and Nova Scotia power I'd like to reiterate that we are 100% committed to building a cleaner and greener Nova Scotia.

Speaker 2: As you've heard me say many times, the greening of the grid and reducing the carbon intensity of the energy we deliver to our customers has been at the core of our strategy for over 15 years.

As you've heard me say many times, the greening of the grid and reducing the carbon intensity of the energy we deliver to our customers has been at the core of our strategy for over 15 years.

Speaker 2: But it's more than that. It's part of our culture. It's what drives our team every day. And we are delivering.

But it's more than that it's part of our culture. It's what drives our team every day and we are delivering.

Speaker 2: Nova Scotia Power has led one of the fastest energy transitions in Canada.

Nova Scotia power has led one of the fastest energy transitions in Canada.

Speaker 2: This year 60% of our energy will be from renewable sources.

This year, 60% of our energy will be from renewable sources, it's real progress, but it's not easy.

Speaker 2: But it's not easy. Over the last 10 years we've accomplished this progress while keeping total rate increases, including fuel, in line with inflation.

Over the last 10 years, we've accomplished this progress while keeping total rate increases including fuel in line with inflation.

Speaker 2: Decarbonizing our electrical grid is a complex endeavor.

Decarbonising, our electrical grid is a complex endeavor.

Speaker 2: ensuring that the reliability of the grid as a whole is not put at risk. It also requires... This part.

Ensuring that the reliability of the grid as a whole is not put at risk.

It also requires significant investment which is why all jurisdictions that are working to reduce the carbon intensity of their energy in Canada and around the globe are seeing the cost of that energy increase.

Speaker 2: which is why all jurisdictions that are working to reduce the carbon intensity of their energy in Canada and around the globe are seeing the cost of that energy increase.

Speaker 2: The fact is that Canada's and Nova Scotia's climate goals are very ambitious. And to achieve them, we will need to transform how we make, deliver and store electricity in less than 10 years.

The fact is that candidates and Nova Scotia's climate goals are very ambitious and to achieve them, we will need to transform how we make deliver and store electricity in.

In less than 10 years.

And to do that we'll need to work together.

Speaker 2: constructively with governments, regulators and all states.

Constructively with governments regulators and all stakeholders.

Speaker 2: Before I pass the call to Greg, I'd like to take the opportunity to highlight two new border points.

Before I pass the call to Greg I'd like to take the opportunity to highlight two new board appointments.

Speaker 2: I'd like to welcome Paula Gold Williams and Ian Robertson to Amira's Board of Directors.

I'd like to welcome Paula <unk>, Williams, and Ian Robertson to Amira support of directors.

Speaker 2: Paula is the former President and CEO of CPS Energy and Ian is the former CEO of Algonquin Power Utility.

Paul is the former president and CEO of Cps energy and Ian is the former CEO of Algonquin power and utilities.

Speaker 2: Each bring more than 30 years of leadership experience in the energy industry and will be tremendous assets to our board address.

Each bring more than 30 years of leadership experience in the energy industry and will be tremendous assets to our board of directors.

Speaker 2: And with that, I'll turn it over to Greg to take you through our financial results. Greg? Thank you, Scott, and thank you all for...

And with that I'll turn it over to Greg to take you through our financial results Greg.

Thank you Scott and thank you all for joining us today.

Speaker 3: This morning, we reported fourth quarter adjusted earnings of $168 million and adjusted earnings per share of 64 cents.

This morning, we reported fourth quarter adjusted earnings of $168 million and adjusted earnings per share of <unk> 64.

For the year adjusted earnings were $723 million and adjusted earnings per share was $2 81.

Speaker 3: For the year, adjusted earnings were $723 million, and adjusted earnings per share was $2.81.

Speaker 3: Before we continue, I want to remind everyone that in Q4 2020, we recognized a $36 million award related to outstanding litigation, which represented 15 cents on adjusted earnings per share.

Before we continue I want to remind everyone that in Q4 2020, we recognized a $36 million award related to outstanding litigation, which represented 15 unadjusted earnings per share.

Speaker 3: Normalizing for the impact of this one-time award better highlights the performance of our ongoing business.

Normalizing for the impact of this one time award letter highlights the performance of our ongoing business.

Speaker 3: Excluding the impact of the one-time award, Amira's adjusted earnings per share increased 7% for the quarter and 11% year-over-year.

Excluding the impact of the onetime award mirrors adjusted earnings per share increased 7% for the quarter and 11% year over year.

Speaker 3: Growth in adjusted earnings per share was primarily driven by continued growth at People's Gas and improvement at Nova Scotia Power as compared to the weaker 2020, lower corporate costs and higher earnings in our marketing and trading business.

Growth in adjusted earnings per share was primarily driven by continued growth at peoples gas and improvement at Nova Scotia power as compared to the weaker 2020, lower corporate costs and higher earnings in our marketing and trading business.

Speaker 3: These were partially offset by a stronger Canadian dollar and a higher share count.

These were partially offset by a stronger Canadian dollar and a higher share count.

Speaker 3: The stronger Canadian dollar has been a headwind throughout 2021, decreasing adjusted earnings for the year by 11 cents. But despite these headwinds, the strong performance of our underlying business continues to drive earnings growth for our shareholders, which will take you through now.

The stronger Canadian dollar has been a headwind through 2021 decreasing adjusted earnings for the year by 11.

But despite these headwinds the strong performance of our underlying business continues to drive earnings growth for our shareholders, which will take you through now.

When you adjust for the impact of the legal award previously discussed adjusted earnings per share has increased by <unk> <unk> over Q4, 2020, largely driven by strong operating results in our gas and Canadian utilities and lower corporate costs.

Speaker 3: When you adjust for the impact of the legal award previously discussed, adjusted earnings per share has increased by four cents over Q4 2020, largely driven by strong operating results in our gas and Canadian utilities and lower corporate costs.

Speaker 3: Corporate costs decreased primarily due to lower operating costs, primarily long-term compensation costs and corporate interest expense partially offset by higher preferred dividend expense as a result of our issuances last year.

Corporate cost decreased primarily due to lower operating costs, primarily long term compensation costs and corporate interest expense, partially offset by higher preferred dividend expense as a result of our issuances last year.

Speaker 3: Our gas utilities, led by People's Gas, contribute to the continued benefit from new rates and the 4-5% growth in its customer base.

Our gas utilities led by peoples gas contribute to the continued to benefit from new rates in the 4% to 5% growth in its customer base.

Speaker 3: Including the impact of a stronger Canadian dollar, our gas utilities delivered $11 million of growth in earnings representing a 30% increase compared to Q4 2020.

Moving the impact of a stronger Canadian dollar our gas utilities delivered $11 million of growth in earnings representing a 30% increase compared to Q4 2020.

Speaker 3: Weather is always a factor in the energy business, but one of the strengths of our portfolio of utilities is its geographic diversity, which played out well in 2021.

Weather is always a factor in the energy business, but one of the strengths of our portfolio of utilities is the geographic diversity, which played out well in 2021.

Speaker 3: In Nova Scotia, favorable weather conditions increased Nova Scotia Power's earnings contribution for the quarter, and we saw a modest increase in contributions from our investments in the Maritime Link and Labrador Island Link.

In Nova Scotia favorable weather conditions increase in Nova Scotia, Power's earnings contribution for the quarter and we saw a modest increase in contributions from our investments in the maritime link and Labrador Island link.

Speaker 3: In Florida, we experienced less favorable weather than Q4 2020, which had benefited from colder than normal conditions.

In Florida, we experienced less favorable weather than Q4, 2020, which had benefited from cooler than normal conditions.

Speaker 3: Tampa Electric also saw higher depreciation and amortization expense reflecting increased capital investment and the effect of the 2020 amortization settlement.

Tampa Electric also saw higher depreciation and amortization expense, reflecting increased capital investment and the effect of the 2020 amortization settlement.

Speaker 3: These factors drove a decrease in earnings from that business this quarter. These were partially offset by higher AABDC earnings as we continue to invest in our solar and Big Bend projects and continued growth in Tampa Electric's customer base.

These factors drove a decrease in earnings from that business this quarter.

These were partially offset by higher a BDC earnings as we continue to invest in our solar and Big Bend projects and continued growth in Tampa Electric's customer base.

Speaker 3: Similar to the previous quarters, the growth from the regulated utilities was partially offset by a higher share count.

Similar to the previous quarters the growth from our regulated utilities was partially offset by a higher share count.

Speaker 3: Year-to-date adjusted earnings per share increased by 13 cents to $2.81. Excluding the impact of the legal award, adjusted earnings per share has increased by 28 cents or 11% year-over-year, driven by strong earnings growth that are gas and Canadian utilities, lower corporate costs, and a strong natural gas market that Amira Energy was able to capitalize on.

Year to date adjusted earnings per share increased by 13 to $2 81.

Excluding the impact of the legal award adjusted earnings per share has increased by 28 or 11% year over year, driven by strong earnings growth at our gas and Canadian utilities, lower corporate costs and a strong natural gas market that emera energy was able to capitalize on.

Speaker 3: Similar to the quarter, higher earnings in our gas utilities are driven by new base rates of both people's gas and New Mexico gas and continued customer growth of people's gas.

Similar to the quarter higher earnings in our gas utilities are driven by new base rates at both peoples gas and new Mexico gas continued and continued customer growth at peoples gas.

Speaker 3: Peoples Gas delivered $77 million US dollar earnings, representing a 48% increase over 2020 and the highest earnings in the company's history.

Peoples gas delivered 77 million U S dollar earnings representing a 48% increase over 2020 and the highest earnings in the company's history.

Speaker 3: Given the strong performance of the business in 2021, we did not recognize any of the 34 million US dollars of accumulated depreciation reserve that was allowed for through the People's Gas Settlement last year. We therefore continue to have access to this reserve through 2022 and 2023.

Given the strong performance of the business in 2021, we did not recognize any of the $34 million of accumulated depreciation reserve that was allowed for through the peoples gas settlement last year. We therefore continue to have access to this reserve through 2022 and 2023.

Speaker 3: Our corporate segment benefited from $35 million of lower interest expense primarily due to the retirement of corporate debt, lower interest rates, and the strengthening Canadian dollar, as well as $30 million in lower operating expense.

Our corporate segment benefited from $35 million of lower interest expense, primarily due to the retirement of corporate debt lower interest rates and the strengthening Canadian dollar as well as $13 million and lower operating expenses. These increases were partially offset by higher preferred dividend expense as a result of the issuances during the year.

Speaker 3: These increases were partially offset by higher preferred dividend expense as a result of the issuance this during the year.

For the year to date period, Emera Energy's marketing and trading business delivered an impressive 37 million U S dollars of earnings.

Speaker 3: For the year-to-date period, Amera Energy's marketing and trading business delivered an impressive $37 million of earnings.

Speaker 3: While this is outside of our $15 to $30 million US dollar earnings guidance range, we believe the range remains appropriate over the long term.

While this is outside of our $15 million to $30 million U S. Dollar earnings guidance range. We believe the range remains appropriate over the long term deferred.

Speaker 3: The February storm event in the Midwest sharply increased prices and drove volatility across the US, which the business was able to capitalize on in the first quarter.

February storm event in the Midwest sharply increased prices and drove volatility across the U S, which the business was able to capitalize on in the first quarter.

Speaker 3: In the third and fourth quarters, we saw a surge in global LNG pricing, which enhanced the gas market pricing and volatility in key geographies where AmeriEnergy operates.

And the third and fourth quarters, we saw a surge in global LNG pricing, which enhanced the gas market pricing volatility in key geographies, where emera energy operates.

Speaker 3: This is a good example of the upside potential in this business that we often talk about.

This is a good example of the upside potential in this business that we often talk about.

Speaker 3: The increase in the Canadian electric segment is consistent with the factors that impacted the quarter as discussed a moment ago, and contributions from our other electric utilities saw a modest increase over prior year.

The increase in the Canadian Electric segment is consistent with the factors that impacted the quarter as discussed a moment ago and contributions from our other electric utilities saw a modest increase over prior year.

Speaker 3: US dollar earnings at Tampa Electric are relatively flat year over year, a strong performance in advance of new rates being in effect on January 1st. In 2021, Tampa Electric earned near the bottom of the ROE range, a shift from the trend that we've seen since the acquisition of Tampa, of earning at or above the midpoint of the range. This type of ROE degradation is driven by regulatory lag that is expected in the year of a general rate application as continued investment in rate base compresses ROE.

U S dollar earnings at Tampa Electric were relatively flat year over year, a strong performance in advance of new rates being in effect on January one in 2021, Tampa electric or near the bottom of the URL rearrange a shift from the trend that we've seen since the acquisition of Tampa of earning at or above the midpoint of the range. This type of ROE.

Irrigation is driven by regulatory lag that is expected in a year of a general rate application is continued investment and rate case in rate base compresses Roe.

Speaker 3: With new rates in effect on January 1st of this year, we expect earnings from Tampa Electric to be higher than 2021 and anticipate earnings within the allowed ROE range.

With new rates in effect on January one of this year, we expect earnings from Tampa electric to be higher than 2021, and anticipate earning within the allowed Roe range.

And finally, both FX and a higher share count provided headwinds for the year.

Speaker 3: And finally, both FX and a higher share count provided 10 wins for the year.

Speaker 3: Operating cash flow year-to-date is down 83 million dollars or 6% compared to 2020, primarily as a result of incremental fuel costs associated with winter storm urea at New Mexico Gas and fuel under recovery from across the portfolio.

Operating cash flow year to date is down $83 million or 6% compared to 2020, primarily as a result of incremental fuel costs associated with winter storm urea at new Mexico gas and fuel under recoveries across the portfolio.

Speaker 3: To show the cash flow changes in the underlying business, we've broken out the change in cash flow driven by the under recovery of fuel costs at New Mexico, Nova Scotia Power and Tampa Electric.

The show the cash flow changes in the underlying business, we've broken out the change in cash flow driven by the under recovery of fuel costs at New Mexico, Nova Scotia power and Tampa Electric.

Speaker 3: Excluding these underrecovers, cash from operations increased 8% over 2021, reflecting the strong underlying growth in our utility operations and lower corporate costs.

Putting these under recoveries of cash from operations increased 8% over 2021, reflecting the strong underlying growth in our utility operations and lower corporate costs.

Speaker 3: Increasing commodity prices have been a headwind for our cash flow throughout 2021, beginning with winter storm Uri and the trickle-down impacts on natural grass pricing that persisted in 2021.

Increasing commodity prices had been a headwind for our cash flow through 2021, beginning with winter storm, Yuri and the trickle down impact on natural gas pricing that persisted in 2021.

Speaker 3: As I mentioned last quarter, we have regulatory mechanisms in place to recover these prudently incurred costs from customers.

As I mentioned last quarter, we have regulatory mechanisms in place to recover these prudently incurred costs from customers.

Speaker 3: Tampa Electric filed a mid-course fuel adjustment in January in response to the continued high natural gas prices. If approved, we'll begin recovery of the $169 million U.S. in April , of which $70 million relates to the under-recover position at December 31.

Tampa Electric filed a midcourse fuel adjustment in January in response to the continued high natural gas prices.

We will begin recovery of the 169 million U S dollars in April of which $70 million relates to the under recovery position at December 31.

Speaker 3: Recovery costs of winter storm Yuri began in July of last year and are being recovered over 30 months.

Recovery cost and winter storm Yuri began in July of last year and are being recovered over 30 months.

Nova Scotia power is in a fuel stability period until December 31, 2022, so while the recovery of the $55 million won't begin until 2023, the regulatory mechanism will allow for the full recovery of prudently incurred fuel costs over the longer term.

Speaker 3: Nova Scotia Power is in a fuel stability period until December 31, 2022, so while the recovery of the $55 million won't begin until 2023, the regulatory mechanism will allow for the full recovery of prudently incurred fuel costs over the longer term. While it remains a regulatory asset.

And while it remains a regulatory asset until that time.

Speaker 3: Access to these regulatory mechanisms allows us to reduce rate pressure and rate volatility for our customers while ensuring our shareholders' interests are protected.

Access to these regulatory mechanisms allows us to reduce rate pressure and rate volatility for our customers, while ensuring our shareholders interests are protected.

Speaker 3: Our experience in 2021 does not change our views on our operating cash profile going forward, and we have a clear path to achieve our cash flow objective.

Our experience in 2021 does not change our views on our operating cash profile going forward and we have a clear path to achieve our cash flow objectives. We are well positioned heading into this year to deliver both earnings and cash flow growth to continue investing in our rate base and growing our business or our $8 $4 billion capital plan, all while providing value to our shareholders.

Speaker 3: We are well positioned heading into this year to deliver both earnings and cash flow growth, to continue investing in our rate base and growing our business through our $8.4 billion capital plan, all while providing value to our shareholders and maintaining our investment rate credit rating.

And maintaining our investment grade credit ratings.

Speaker 2: Thank you, Greg. This concludes the presentation. We would now like to open the call for questions from analysts.

Thank you Greg. This concludes the presentation, we would now like to open the call for questions from analysts.

Speaker 1: If you would like to ask a question, please press star 1 on your telephone keypad. Again, if you have a question, please press star 1 on your telephone keypad.

If you would like to ask a question. Please press star one on your telephone keypad.

Again, if you have a question. Please press star one on your telephone keypad.

Yeah.

Speaker 1: And we have a question from the one of Ben Pham with the emo.

And we have a question from the line of Ben Pham with BMO.

Hi, Thanks, Good morning, I had a couple of questions on the NSE.

Speaker 4: Hi, thanks. Good morning. I had a couple of questions on the NSPI rate case and I'm wondering, first of all, how...

NFPA rate case, and I'm I'm.

Wanted to start off.

Speaker 4: How does the Atlantic Loop project feed into the right case? Do you need some visibility on that before clearing the hearings and getting the disposition? How meaningful is that to the right case?

How does the Atlantic Luke projects.

CNET day rate cases.

Visibility on that before clearing the hearings in getting the decision on how how many imply that the rate case outcome.

Yes.

Yeah. Thanks, Thanks Bennett.

Speaker 5: Thanks, Ben. It's Scott. Within the GRA, certainly there's important investments that are proposed as part of the journey to coal plants. It would not specifically at this point include anything in relation to the Atlantic Loop, but rather would focus on investments required in Nova Scotia. At the same time, obviously, we continue to advance.

It's Scott.

So look within within the within the <unk> certainly there is important investments that are proposed as part of the journey to <unk>.

Our coal plants it would not specifically at this point include anything in relation to the Atlantic loop, but rather would focus on investments required in in Nova Scotia at the same time, obviously, we continued to advance our discussions on the Atlantic Loop, which is also an important part of the ability to.

Speaker 2: our discussions on the Atlantic Loop, which is also an important part of the ability to transition off whole generation in Nova Scotia.

To transition off coal generation in Nova Scotia overtime.

Speaker 4: Okay, and then also what's, what was the thought process around the...

Okay and then.

Also whats.

What was the thought process around that.

Speaker 4: the ROE and you get the midpoint, the same interest and earnings sharing mechanism, but you also provide potential for a much, much lower downside potential, or maybe not much lower, but slightly lower on the downside.

ROE and you kept the midpoint.

Interest in earnings sharing mechanism.

But you also provides potential for much lower downside potential or maybe not much lower but slightly lower on the downside.

Speaker 4: is your own end that you can pick up that you're thinking about. Love this irrational diagram at our...

Okay, Gerald and that you can pick up a great. Thank you.

Loved the rationale around that at our away change.

Speaker 2: I think really Ben, it's just a reflection that the 25 basis point up and down, as has been the case in Nova Scotia for some time, is actually unusually very narrow.

I think it really been a just a reflection that the 25 basis point up and down as has been the case in Nova Scotia for some time, it's actually unusually very narrow.

Speaker 2: and with the amount of investments and...

And.

And with the amount of investments in <unk>.

Speaker 2: and the journey in front for Nova Scotia, it's really just looking at that very narrow bend and saying it's appropriate, we believe appropriate for customers, appropriate for the regulator to look at that band in the context of the volatility of potential earnings for Nova Scotia Power to make sure that it's consistent with market practice.

And the journey in front for Nova Scotia, It's really just looking at that very narrow band and saying.

It's appropriate we believe appropriate for customers for the regulator to look at that band in the context of.

The volatility of Av.

<unk>.

Potential earnings for Nova Scotia power to make sure that it's consistent with with market practice and right now that 25% band seems inconsistent with market practice, but ultimately something that.

Speaker 2: Right now that 25% band seems inconsistent with market practice but ultimately something that the regulator will determine is appropriate.

The regulator will determined as appropriate.

Okay. Thanks, Martin catchment everything and maybe one last one on the Caribbean.

Speaker 4: Okay, it seems like more of a catch-up in everything. And maybe one last one on the Caribbean. Are you really sure that the realized ROEs you're generating in those distances and this gives a sense of the earnings applied magnitude?

Are you sure that they realized ROE here in January .

And those businesses and just give us a sense of the earnings magnitude.

Yes, I think.

Speaker 3: Yeah, I think, you know, Ben, it's Greg. I mean, really, our Caribbean businesses is two businesses. It's Grand Bahama and Barbados. I'd say we've been tracking kind of at the allowed ROE at Grand Bahama. The economies come back fairly well during COVID, particularly from an industrial side. We're still seeing some challenges in Barbados.

Ben It's Greg.

Our Caribbean businesses as two businesses, it's Grand Bahama and Barbados.

We've been tracking kind of at the allowed ROE at Grand Bahama.

The economies come back fairly well during COVID-19 and particularly from an industrial side.

We're still seeing some challenges in Barbados pri.

Speaker 3: primarily because of lack of tourism and lack of rebound in the economy, so the returns there have been a little bit softer, but again, on hold, you know, in total the businesses are performing reasonably well in light of the circumstances.

Primarily because of lack of tourism and a lack of rebound in the economy. So and so the returns there have been a little bit softer but.

Again on hold.

In total the businesses are performing reasonably well in light of the circumstances.

Okay. Thank you.

Welcome.

Speaker 1: The question comes from Maurice Choi with RBC Capital.

Question comes from Maurice Choy with RBC capital markets.

Thank you and good morning, if I could continue with the cei or Vietnam.

Speaker 6: Thank you and good morning. If I could continue with the ECEI or the Atlantic Loop, you previously mentioned that you expected an update on this initiative in early 2022. Has there been any change in your view of timing, be it in terms of months or quarters, and what is the top reason that could move this timing either earlier?

You previously mentioned that you expected an update on that initiative in early 2022 has there been any change in your view of timing.

And types of months or quarters.

And what does the top reason that could move that timing either earlier or later.

Speaker 2: Yeah, Maurice, I think we're still hopeful for more clarity on that mid-year. Certainly, I think it's fair to say we need clarity on that this year. And look, as I said before, we'll continue to be encouraged by the ongoing discussions and engagement with...

Yes.

So I think.

We're still hopeful for more clarity on that.

Mid year, certainly I think it's fair to say, we need clarity on on that this year.

And look as I said before what we continue to be incurred.

Encouraged.

And by the ongoing discussions and engagement with the federal government.

Speaker 2: with the federal government, with and by the provincial government, and also with our provincial partners.

And by the provincial government and also with our provincial.

Partners, It's really complex project.

Speaker 2: It's a really complex project and it's working through those complexities and of course...

And it's working through those those complexities and of course is as you would understand governments in Canada also challenged by a number of other active files and so it's really just a matter of working through those complexities, but really focus on <unk>.

Speaker 2: As you would understand, governments in Canada also challenged by a number of other active files. So it's really just a matter of working through those complexities, but really focus on seeking clarity this year. We're hoping mid-year, but certainly need clarity sometime in 2022 in order to move this project forward.

Seeking clarity this year, we're hoping midyear, but certainly need clarity sometime in 'twenty two in order to move this project forward.

Speaker 6: Thanks, and just as a follow up, you mentioned that the government has other active files going on. Do you see a material change in their view or their priorities in terms of energy transition versus those active files? What are we saying?

Thanks, and just pull up.

Mentioned that the governments are there active pilots going on.

Do you see a material change in their view of their priorities in terms of energy transition.

That's all.

What are we seeing weak.

Speaker 2: No, I don't think so at all. I'm thinking about things like COVID and trucker protests and those kinds of things that are obviously very active. But no, don't see any shift.

No no I don't think so at all.

I'm thinking about things like Covid and.

Trucker protests and those kinds of things that are obviously very.

Very active.

But but no don't see any any any shift.

On that one U S.

Speaker 6: And if I could just finish off with a question on capital allocation.

Great and if I could just finish off with a question on capital allocation.

Speaker 6: Greg, you mentioned that there's a good runway of ME transition investments ahead, including after 2024. And like many of your peers, you probably have a lot of tools at your disposal to raise funds, including your trip and ATM.

Greg you mentioned that there's a good runway of any transition investments ahead, I'm, putting out to 2024 and like many of your peers you probably have a lot of tools at your disposal to raise funds, including equipment ATM.

Speaker 6: Equally, you do have a number of assets that arguably...

Equally you do have a number of assets that arguably.

Speaker 6: are viewed as non-core by the market. In your view, when would it be a suitable time to consider selling these assets to improve your liquidity, especially ahead of some of these larger scale investments?

Our are viewed as non core by the market.

Your view when would it be a suitable time to consider selling these assets to improve liquidity.

Actually ahead of some of these larger scale investments.

And potentially reduce EPS dilution.

Well Laurie it's Greg I mean, we always take a look at all of our portfolio to see what makes the most sense from a strategic and a financial perspective.

Speaker 3: Well, Maurice, it's Greg. I mean, we always take a look at all of our portfolios to see, you know, what makes the most sense from a strategic and a financial perspective.

Speaker 3: We have no plans, we're happy with our portfolio now, I have no plans to divest of anything, but we'll continue to look at it. I don't know if there's an optimal or a perfect time in whether or not we need to do something, but as we get greater clarity in terms of the timing of some capital investments in some of these large projects, at that point in time we'll start to look at what our funding requirements are and what's the most cost effective tool.

We have no plans, we're happy with our portfolio now I have no plans to divest of anything but we will continue to look at it I don't know if there is an optimal or a perfect time, and whether or not we need to do something but as we get greater clarity in terms of the timing of some capital investments in some of these large projects that you know at that point in time, we'll start to look at what our funding requirements are.

And what's the most cost effective.

Speaker 3: way to raise the capital in support of that and that would include maybe divesting of some smaller assets but it may not as well but we'll make that determination at that time.

Way to raise the capital was in support of that and that would include maybe divesting of some smaller assets.

Assets, but it may not as well, but we'll make that determination at that time.

And then I mean, you see greater clarity on investments presumably.

Speaker 6: and you see greater clarity on investments, presumably the ECI slash Atlantic Loop as your next biggest.

Actually I think look this year and next.

The biggest project to consider.

Yeah, that's that's likely the next biggest project, but the large capital and that would be towards the end of this decade and out in the next couple of years.

Speaker 3: Yeah, that's likely the next biggest project, but the large capital in that would be towards the end of this decade, not in the next couple of years.

Understood.

Speaker 2: Brilliant, Maurice. We continue to look at the portfolio and if we see a transaction that's compelling from a shareholder value perspective, we look at it hard and obviously you've seen our willingness and ability to look at that and to think about the portfolio and recycle capital where it makes sense and we'll continue to do that and look through that lens. Various, discussable missing

Marine So we continue as Greg said, we continue to look at the portfolio and if we what we see.

A transaction.

Compelling from a shareholder value perspective.

We looked at it hard and obviously, you've seen our willingness and ability to look at that into thinking about the portfolio and recycle capital where it makes sense and we'll continue to do that went through that lens.

Understood. Thank you very much.

Thanks Marty.

Sorry.

Your next question comes from the line of Rob Hope with Scotiabank.

Speaker 7: Good morning, everyone. Two short-term kind of questions in nature. First off, NSPI in 2022, it looks like you're saying earnings are going to be consistent versus 2021 level, yet sales volumes will be higher and you could have the potential for new rates there. What are the puts and takes you're seeing at NSPI in 2021 and are you assuming kind of a positive outcome on your rate filing?

Good morning, everyone. Two shorter term kind of a question in nature.

First off at MSCI in 2022, it looks like Youre, saying earnings are going to be consistent versus 2021 level, yet sales volumes will be higher and you could have the potential for new rates. There what are the puts and takes you're seeing a dentist guy in 2021 and are you assuming kind of a positive outcome on your rate filing.

Okay.

Speaker 3: Robert, it's Greg. I mean, it's one month in the year, so I think it's a little early to be much more specific in terms of what we expect the year to be.

Robert It's Greg I mean, it's one month into the year. So I think it's a little early to be much more specific in terms of what we expect the year to be but.

Speaker 3: But, you know, in general, I mean the two biggest things that would be in front of us from an uncertainty perspective would be the outcome of the right case, in particular the timing of when those rights would be effective, and of course, as always, weather. and whether it can be

But in general I mean, the two biggest things that would be in front of us from an uncertainty perspective would be the outcome of the rate case in particular, the timing of when those rates would be effective.

And of course as always weather.

And whether it can be a.

Speaker 3: positive or negative from a load perspective and also from a storm perspective. And so, you know, it's hard to be much more precise, I would say, at this point in time for 20...

Positive or negative from a load perspective, and also from a storm perspective and so.

Yeah.

It's hard to be much more precise I would say at this point in time.

For 2022.

Speaker 7: All right, thanks for that. And then another sort of term question, the volatility and strength in gas pricing has persisted into 2022. Would we be correct in assuming that the gas business or your marketing business has had a good start to the year, but too soon to kind of point you to the upper end of the longer term guidance there? Absolutely, yeah.

Alright, thanks for that and then another shorter term question.

The volatility in strength in gas pricing has persisted into 2022.

Can we be correct in assuming that the gas businesses are youre marketing business has had a.

Good start to the year, but.

Too soon to kind of point you to the upper end of.

The longer term guidance.

Absolutely.

[laughter].

Alright.

Yeah.

Yeah.

Speaker 1: Your next question comes from the line of Linda Ezegalis with TD Security.

Your next question comes from the line of Linda.

With TD Securities.

Speaker 8: Thank you, good morning. I'm wondering if maybe we could look at some of your other application components to NSPI, specifically your equity thickness. Just wondering how you converged on that request, given my sense that some utilities in North America have even a higher equity thickness.

Good morning.

Wondering if maybe.

We could look at.

Your some of your other application components too.

Spi specifically.

<unk> sector.

Just wondering how your converged on that request given my sense right.

Some utilities in North America, what do you have even a higher equity thickness.

Speaker 9: It's Linda, it's Peter and Greg from FBI. Really, it's part of the preparation of the rape case. Obviously we do.

Yes, Hi, Peter Gregg tremendous Ti really as part of the preparation of the rate case, obviously, we do.

Speaker 9: engage experts and look at utilities with similar risk profiles to ours in considering what is an appropriate equity.

Engage experts, who look at utilities with similar risk profiles.

And considering what is an appropriate and equity thickness.

Speaker 9: And in doing that, that's where we landed with the move to 45% equity thickness by the end of 2020.

And in doing that.

That's where we landed with the move to 45% equity thickness by the end of 2024.

Yes.

Speaker 3: Go ahead, Greg. Linda, it's Greg. I might just say, so there's probably a couple of things happening there. It's amazing.

Sorry go ahead, Greg Lynds, it's Greg I might just say, so theres, probably a couple of things happening there the phase in.

Speaker 3: you know, was done largely to the extent of, you know, lens on affordability for customers and we're very, very sensitive to that and so, you know, we felt it was appropriate to phase in over time. The other lens too is, you know, what do we think the required capital structure is to maintain, you know, to maintain really strong investment grade credit rating.

It was done largely to the extent of.

Lens on affordability for our customers and we're very very sensitive to that and so.

We felt it was appropriate to phase out over time, the other lens to US is what do we think the required capital structure is to maintain to maintain really strong investment grade credit ratings and so that was part of it as well and ultimately you know.

Speaker 3: And so that was part of it as well and ultimately we, you know, in addition to what Peter said, we believe 45 is the right number but we believe it's also prudent to get there over a couple of years as opposed to immediately.

In additional Peter said, we believe 45 is the right number but we believe it's also prudent to get there over a couple of years as opposed to immediately.

Speaker 1: Thank you and just as a follow-up, recognizing that affordability is something you always keep at the forefront in all of your considerations of a balanced application. I'm just wondering...

Thank you and just as a follow up recognizing that affordability is something Kelly Keith.

And all of your considerations.

Balanced application.

Just wondering.

Speaker 1: If you got everything that you asked for, what would that translate into as higher earnings and normal weather and volumes on load?

You know what.

Well, if you've got everything that you asked for.

What would that translate into higher earnings and normal weather and volumes.

Mode.

Speaker 1: What would that translate into higher earnings in 2022, 2023 and 2024?

What would that translate into higher earnings in 2022, 2023 and 2024.

Speaker 1: And my second part of that question is, you know, if I didn't get everything that was requested in terms of a rate increase, what sort of costs could be deferred to mitigate the negative effect of that?

And on the second part of that question is you know.

Yes.

We didn't get everything that was requested in terms of a rate increase.

What sort of costs could be deferred.

And the negative effect of that.

Speaker 3: Yeah, I wouldn't necessarily think of it, Linda, through what would it create from an earnings capacity perspective. I mean, the basic math is not going to change. It will be a function of the rate-based investment, the equity thickness, and the ROE. And we haven't asked for an increase in the ROE as we discussed the equity thicknesses going through. But to the extent that rate-based grows over time, then yeah, earnings will grow with that as well.

Yes, I wouldn't necessarily think of it.

Linda through what would it create from an earnings capacity perspective, I mean, the basic math is not going to change it will be a function of the rate based investment the equity thickness in the ROE and we Havent asked for an increase in the ROE and as we discuss the equity thickness is going through but to the extent that rate base grows over time then yes.

Earnings will grow with that as well.

Speaker 3: Some of the other components, like I think you mentioned load, load will be what load will be. Nothing specific in this rate case is going to cause us to have a different view on that side of it. And I think you might have had another, there might have been one other part of that question, Linda, that's escaping me at this ten seconds.

You know some of the other components.

You know like I think you mentioned load I mean that.

Load will be with load will be nothing specific in this rate case is going to cause us to have a different view on that side of it and I think you might've had another so it might have been one other part of that question Linda escaping me at this 10 seconds.

Speaker 1: Apologies, yeah, just in terms of if you don't get everything you asked for, might there be some costs that you could potentially defer?

Apologies, yes, just in terms of if you don't get everything you ask for my therapy.

Costs that you could potentially differ.

Speaker 3: Yeah, and no need to apologize, Linda. I mean, it's premature. On all these rate cases, it depends on how it's structured. So as you're very familiar, often rate decisions come out. And for example, there's certain costs that get deferred. There's a change in depreciation rates, which means it has no effect on earnings. So it's kind of premature at this point in time to determine what the outcome would be and what the likely impact of that would be. Thank you.

Yeah.

And no need to apologize Linda.

Yeah.

<unk> it.

Its premature on all these rate cases, it depends on how it's structured so as you're very familiar.

Often rate decisions come out and for example.

There's certain costs that get deferred there's a change in depreciation rates, which means it has no effect on earnings. So it's kind of premature at this point in time to determine.

What the outcome would be and what you know what the likely impact of that would be.

Thank you.

Youre welcome.

Your next question comes from the line of Mark Jarvi with CIBC capital markets.

Speaker 10: the cap

Thanks, Good morning, Alan.

Speaker 11: Thanks. Good morning everyone. This question is for Greg. You see a slide where you guys talked about a path to $2 billion roughly of operating cash. So just with the fuel recovery item that you flagged on slide 13, is there an ability to get to that level this year or do you think that's been pushed out a little bit into 2023?

A couple for Greg.

Slide we will talk about a possible 2 billion roughly of operating cash flow and just what the fuel recovery items you flagged on slide 13.

To that level this year or anything thats been pushed out a little bit into 2023.

Speaker 3: No, I think just the opposite, Mark. I mean, nothing that happened in 2021.

No no I think just the opposite Mark I mean, nothing that happened in 2021.

Speaker 3: changes our view on what we're going to generate from a cash flow in 20, sorry, 2021, changes our impact of what we think we'll have for a cash flow in 2022, with the exception of any under-recovery, for example, on Tampa Electric that will get trued up in the mid-course correction. So, if anything, our view on cash flow this year is probably even stronger than it was a month ago just because of the timing of the fuel costs on a period-over-period basis.

It changes our view on what we're going to generate from our cash flow in 20, sorry in 2021 changes or impact of what we think we will have for our cash flow in 2022.

With the exception of any under recoveries for example on a Tampa electric that we'll get through it up in the mid course correction. So if anything our view on cash flow. This year is probably even stronger than it was a month ago, just because of the timing of the fuel cost on a period over period basis.

Speaker 11: Okay, great. And then can you give us a bit more context in terms of the $2 million holdback per month for the Nova Scotia Block? Is it a rolling average or is it binary and then maybe how you kind of grew up for the actual $2 million costs if you're shy on the Nova Scotia Block?

Okay, Great and then can you give us a little more contact from term of about $2 million pullback per month partial blockade because they're sort of a rolling average or I guess, a binary and then maybe heightened kind of true up for the $2 million cost.

If you're shy on Doug's question block.

Speaker 5: Tim, our team is still going through the regulatory decision, but it is a $2 million per month calculation and then gets factored against the cost of replacement energy. And then that gets calculated at the end of the year.

Yes.

It seems like you're still going through that regulatory decision, but.

But it is a $2 million per month calculation, and then gets factored against the cost of replacement.

Energy and so.

And then that gets calculated at the end of the year. So.

<unk>.

So, yes, I think thats.

Speaker 5: So yeah, I think that's the simplest way to describe it and as I say though, the teams have gone through the details of the decision and getting more precise clarity on exactly the mechanics but the way I described it is...

That's the simplest way to describe it.

As I say, though the teams that went through the details of the decision and getting.

More and more precise clarity on exactly the mechanics, but the way I described it as is.

In simplest terms networks.

Speaker 11: But if you were, say, six months over and six months under, but you still average 90, would there be penalties? Or would that kind of smooth it all out? You're trying to understand exactly how you get penalized for being short in a given month and whether or not you're sort of, again, much of that average over the whole year.

But if you were say six months over six months under we still averaged 90 would there be penalties or was that kind of pull that all I'm just trying to understand exactly.

How you get penalized for being short in any given month, and whether or not sort of again.

Average over the whole year.

Speaker 5: So the team is still going through the details to make sure we understand the mechanics, but I think that the shortfall is calculated monthly, but the replacement energy obviously happens over a longer period of time. So that's sort of the mechanics of the team still trying to work through and make sure we understand as part of the decision. Okay, thank you.

So the <unk> still going through the details to make sure we understand the mechanics, Merck, but but I think this shortfall is calculated monthly.

But the replacement energy obviously.

It happens over a longer period of time, so that's sort of the mechanics of the teams still trying to we're trying to I'm trying to still to work through and make sure we understand as part of <unk>.

As part of that is part of the decision, but the short Coke head count related.

Speaker 11: And maybe just going back to the question on mirror energy, you talked about the gas market and how strong they are and ability to hit the upper end of the range essentially. Anything in terms of transportation costs, you guys can comment on whether or not sort of relative levels versus like heading into 2022 versus where you were in 2021.

And then just going back to the question on your energy.

Talking about the gas market and how strong arm a thought leader.

Hit the upper end of the range essentially anyone in terms of transportation cost, where I can comment on whether or not it's a relative levels person like heading into 2019 versus where you were in 401.

Speaker 8: Um, so we probably have a little bit less transport than we had in 2021.

So we probably have a little bit less than we had in 2021.

Speaker 8: We're not dissatisfied. As you know, that's always a competitive bidding process.

We're not satisfied.

That's always a competitive bidding process.

Speaker 8: And so it has gotten more expensive because of the run-up in gas prices. So we have to be very astute when we are bidding. And we'd rather lose it than overpay for it, to be honest. So we probably have a little bit less going into 2022 than we had in 2021.

And so it has gotten more expensive.

The run up in gas prices.

So we have to be very.

When we are bidding and.

It's Robert.

Okay for it to be honest so.

Last going into 2022 2021 .

Speaker 8: So, but again, as I said earlier,

So, but again as I said earlier.

Speaker 8: quickly. It is very much too early in the year to say anything other than we hope to be within our wage. So that's where we are.

Quickly.

It is very much too early in the year to say anything other than we hope to be within a range.

So that's where we are.

Got it okay. Thanks for taking the questions.

Your next question comes from the line of Andrew.

Speaker 10: next question comes from the line of Andrew Kesk with credit.

Credit Suisse.

Thank you good morning, I guess, the question's really big picture and directed for Scott and it's along the lines of the growth, we see in Atlantic, Canada and Alaska.

Speaker 12: Thank you. Good morning. I guess the question is really big picture and directed for Scott. And it's along the lines of the growth we've seen in Atlantic Canada in the last two years. We can pick any timeline you want, but it's been a pretty good news story in Atlantic Canada from population dynamics. How does that bake into your longer term outlooks for your core business?

Two years, we can pick any timeline you want but it's been a pretty good news story in Atlantic Canada.

From population dynamics, how does that bake into your longer term outlook for your core business.

Speaker 5: Hey Andrew, so look, you know, I think obviously being in a place where we're starting to see some renewed strength of the economy is good news on a bunch of...

So.

Hey, Andrew So look.

Think obviously being in a place where we're starting to see some.

Some renewed strength of the of the economy is good news on a bunch of on a bunch of levels obviously.

Speaker 5: on a bunch of levels. Obviously, that's certainly true for us in Florida and benefit from a strong and growing economy there. To the extent that the economy continues to strengthen, the population continues to increase. Frankly, that helps to reduce...

That's certainly true for us in Florida and <unk>.

Benefit from from a strong and growing economy, there and and so to the extent it's.

The.

Economy continued continued to strengthen the population continues to increase frankly that helps to reduce rate pressure as we invest to make this transition towards.

Speaker 5: rate pressure as we invest to make this transition towards

Speaker 2: towards cleaner energy. So I think it's helpful. And I think, as I say, it helps to reduce the cost on a per customer basis of the energy transition towards closing coal plants and...

Towards cleaner energy. So so I think it's I think it's helpful.

And I think as I say it helps to.

Reduce the cost on a per customer basis.

The energy transition towards closing the <unk> discussion.

Speaker 12: Okay, that's helpful. And then maybe just related with some of the issues that there have been with having transmission lines come from Canada into the US.

Okay. That's helpful. And then and then maybe just related with some of the issues that they've been having transmission lines come from Canada into the U S.

Speaker 12: Does that wind up being a better news story on a longer term basis for your decarbonization efforts? Is effectively hydro plants and whether they be Quebec or elsewhere in Canada, the easiest access route for them may be places like Nova Scotia to effectively put clean power.

Does that wind up being a better news story on a longer term basis for your decarbonization efforts is effectively hydro plants, and whether there'd be Quebec or elsewhere in Canada.

Easiest access route for them May be places like Nova Scotia to effectively put clean power.

Speaker 2: That's certainly the proposition we're putting forward, that it makes sense to try and interconnect the region so that we can move energy around and recognize...

That's certainly the proposition we're putting forward.

It makes sense to add.

To try and interpret interconnect the region. So that we can move energy around and recognize that the both Quebec and dependent Labrador.

Speaker 5: that both Quebec and Fennel Labrador are blessed with.

Our blessed with with.

Speaker 2: with hydro resources that are many times, if not most of the time, more than they need themselves and rather than moving that energy down to U.S. markets, let's share it within the region.

With hydro resources.

<unk>.

Many times, if not most of the time more than they need themselves and rather that moving moving that energy down to two U S markets, let's share it within the region and how provinces like Nova Scotia, and New Brunswick, but still have.

Speaker 5: health provinces like Nova Scotia and New Brunswick that still have thermal emitting sources.

Thermal emitting sources to retire those coal plants and thats really the whole fundamental thesis of Av.

Speaker 5: to retire those coal plants. And that's really the whole fundamental thesis of the value, we think, to the whole region of the Atlantic Loop and the Maritime Link project.

The value, we think to the whole region of the Atlantic loop and the Maritime link.

<unk>.

Speaker 12: And if I could sneak in one more, is there any longer-term prospect of revisiting your transmission project that you had going from Nova Scotia into Massachusetts?

And if I could sneak in one more in is there any longer term prospect of revisiting. Your your transmission project that you had.

Going from Nova Scotia in Massachusetts.

Speaker 5: So, you know, it's not a focus for us today, I'd say, Andrew. Obviously, we know that there's been some challenge in dealing with some of those other proposed transmission lines, but our focus right now is really trying to address the off-coal and renewable targets here in Nova Scotia and as part of that, a transmission interconnect ideally to Quebec as part of the Atlantic Loop and broader Eastern Clean Energy initiatives. That's really where our focus is here right now. Thank you.

So.

It's not a focus for us today I would say, Andrew obviously, we know that theres been some challenging and dealing with some of those other proposed transmission lines, but our focus right now is really trying to address the off coal and renewable targets here.

Nova Scotia, and as part of that transfer.

Transmission interconnect ideally to Quebec as part of the Atlantic loop and broader eastern clean energy initiatives, Thats really where focuses here right now.

Okay. That's great. Thank you.

Speaker 10: Your next question has happened. Darius Lonsney with Bank of America.

Your next question comes from Darius lines with Bank of America.

Speaker 13: Hi, good morning and thank you for taking my question. Just wanted to, at the outset, ask about, I think the timeline for the retirement of the Trenton, one of the units there got pushed back by one year. Can you maybe just discuss that decision a little bit, how the process is going to procure replacement energy and whether there's any risk of the timeline potentially moving back again, whether it's another year or any other amount of time? Thank you.

Hi, Good morning, and thank you for taking my question just wanted to at the outset ask about I think the timeline for the retirement of the trend and one of the units that got pushed back by one year can you maybe just discuss that decision a little bit how the process is going to procure replacement energy and whether there is any.

Risk of timeline potentially moving back again, whether it's another year or.

Any other amount of time thank you.

Speaker 9: Hi, it's Peter from SPI. Really, what drives that, our ability to shut coal, is that we need to have available capacity inside Nova Scotia to be able to shut those...

Yeah, Hi, it's Peter from Spi really what drives that our ability to ship coal is that we need to have.

Animal capacity.

Inside Nova Scotia to be able to shut those plants down.

Speaker 9: with, there has been a delay in receiving the Nova Scotia block over the past several months. It is flowing now and that's a positive.

Yes.

There has been a delay in receiving that almost scotia block over the past several months it is flowing now.

Positive that's a positive development.

Speaker 9: and consistent flows over the maritime link will certainly aid in our ability to commit to a coal shutdown. As we go further into the rest of the plants we've got in Nova Scotia, obviously the Atlantic LIP comes into play, things like grid scale batteries come into play as do coal to gas conversions for the whole story on how to shut down coal. That to your trend 5.

And consistent flows over the maritime link will certainly aid in our ability to commit to a cold shutdown.

As we go further into the rest of the plants, we got Nova Scotia, obviously, the Atlantic lift comes into play things like grid scale batteries come into play as to coal to gas conversions for the whole story and had to shut down coal, but to your train five.

Direct question that is part of ongoing analysis and discussions around the confirm timing of that and when we have that nailed down but I'm.

Speaker 9: direct question that is part of ongoing analysis and discussions around the confirmed timing of that and when we have that nailed down we are happy to share it with you.

Happy to share that.

Speaker 13: Okay, great. Thank you. Appreciate that. And if I can pivot over to Tampa Electric, earlier in the call you alluded to the pending fuel.

Okay, great. Thank you I appreciate that.

I can pivot over to Tampa electric earlier in the call you alluded to the pending fuels.

Speaker 13: your level of confidence on being able to achieve the full ask on the recovery there, particularly given the bill impacts that I think are estimated at maybe a little double digits per month given the current inflationary environment that we're in today.

Your level of confidence on being able to achieve the full ASP on the recovery there.

Particularly given the bill impact that I think are estimated at maybe low double digits per month.

Given the current inflationary environment that we're in today.

Speaker 3: Yeah Darius, it's Greg. I mean, I don't ever want to speculate what the Commission will ultimately decide, but certainly if you look at the track record of the Commission and the other investor-owned utilities in Florida, including ourselves last year, generally these approvals of these mid-year course corrections go through without a whole lot of controversy. We wouldn't expect this to be any different this year.

Darius it's Greg.

Yeah.

Don't ever want to speculate what the commission will ultimately decide but certainly if you look at the track record of the commission and the other.

Other investor owned utilities in Florida, including ourselves last year.

Generally these approval of these mid year course correction go through without a whole lot of controversy and we wouldn't expect this to be any different this year.

Okay, great. Thank you for taking my questions.

Youre welcome.

Speaker 10: And the next question comes from the line of Matthew Weeks with IA Capital Market.

And your next question comes from the line of Matthew <unk> with <unk> capital markets.

Speaker 13: Good morning, thanks for taking my questions. The first is just kind of broad. Anything new to report on block energy?

Good morning, Thanks for taking my questions.

First is just kind of broad anything new to report on block energy.

Speaker 5: Yeah, so Block Energy, we continue to be really excited about. I can share with you that the pilot project that entails 37 homes.

Yes, so so block energy front, we continue to be really excited about what I can share with you that the.

Pilot project that is <unk> 37 homes in.

Speaker 2: in Florida. These are homes that have been built and are being lived in and are now starting to be live connected. The block system is now live and active and is...

In Florida these.

These are.

Homes.

That have been built and are being lifted and they're now starting to be live connected the blocks system is now live and active and is performing exactly as is.

Speaker 2: performing exactly as we expected and so that continues to build our excitement around what this idea can do, what this technology can do as part of a clean energy transition. So one of those stories we'll continue to share more as developments move along but happy to share that we did achieve that milestone in the last few weeks now with that pilot now live in Austria.

As we expected and so that continues to build.

Our excitement around what this idea can do with this technology can do as part of the clean energy transition and so one of those stories will continue to share more as.

As developments move along but.

Happy to share that we did achieve that milestone in last few weeks now with.

With a pilot now now live and Onstream.

Speaker 13: Okay, thanks. I appreciate that. And then my second question is just relating to capital costs on projects, whether it be solar or other projects. In the inflationary environment we're in right now, are you seeing any sort of pressure on the cost side or any sort of meaningful increases in project costs above prior estimates? And how do you see that impacting things going forward? Will that largely be passed on in the end? Is that the expectation?

Okay. Thanks, I appreciate that.

And then my second question is just relating to capital costs on projects, whether it would be.

Solar or other projects in the inflationary environment. We're in right now are you seeing any.

Sort of pressure on the cost side or any sort of meaningful increases in project costs above our pre.

Higher estimates and how do you see that impacting things going forward will that largely be passed on in the end is that the expectation.

Speaker 2: Yeah, it's a really good question and certainly, team and I, I'm sure like teams in all companies and all sectors right now are spending a lot of time talking about inflation and supply chain risks and the like. And certainly we're not immune to those things but fortunately, I will say all of our major active projects.

Yes.

Really good good question and certainly.

Team and I am sure like teams and all companies in all sectors right now are spending a lot of time talking about inflation and supply chain risks.

And the like and certainly we're not we're not immune to those things, but but Fortunately I will say all of our major active projects are in good shape, we're not.

Speaker 5: are in good shape. Most of the important procurement has already happened for...

Most of the important procurement has already happened for the.

Speaker 5: You know, the wave of solar that we're executing now for the completion of the Big Bed modernization, those kinds of things.

The wave of solar that we're executing now for the completion of the Big Bend modernization of those kinds of things, but we are we are seeing some some some cost pressures.

Speaker 5: But we are seeing some cost pressures, that's part of the team's planning in order to impact those things. It could have an impact on the capital programs that are in front of us over the medium to longer term. And the team is working really hard to make sure that we minimize those impacts with the benefit of customers.

And that's part of.

The team's planning in order to to impact those things it could have.

And impact on that the capital programs that are in front of us over the over the medium to longer term and the team's working really hard to make sure that we minimize those impacts from bank of America.

Speaker 13: Okay, thank you. I appreciate the answer on that. That's everything for me. I'll turn it back. Thanks. Thank you.

Okay. Thank you I appreciate the answer on that that's everything for me I'll turn it back thanks.

Exactly.

And there are no further questions. Thank you.

Okay. Thank you Don and thank you all for your participation and continued interest in the mirror. This now concludes our call for today have a great day.

Speaker 3: Thank you Dawn and thank you all for your participation and continued interest in AMIRA. This now concludes our call for today. Have a great day.

Thank you for participating in today's conference call you may now disconnect.

Speaker 10: Thank you for participating in today's conference call. You may now disconnect.

Okay.

Speaker 14: ?Music?

[music].

Okay.

Okay.

[music].

Yes.

Yes.